Oil Pipeline Owes New Mexico Millions For Dumping Natural-Gas Wastewater

An oil-pipeline owner is facing millions of dollars in fines issued by New Mexico regulators after flouting regulations governing the disposal of natural-gas pipeline wastewater.

The Santa Fe New Mexican reported that Houston-based Enterprise Products Operating LLC was issued a $2.26 million compliance order for improperly disposing of wastewater on two occasions. "As much as 630,000 gallons of wastewater were discharged in violation of state permit requirements," the report said, citing the New Mexico Oil Conservation Division.

The money collected from the company "will help pay for remediation,” the Albuquerque Journal reported.

State Energy, Minerals and Natural Resources Department Secretary David Martin explained the importance of the order.

"New Mexicans expect our natural resources to be utilized in a responsible manner and there are serious consequences for those who violate this trust," he said, per Bloomberg "There are thousands of workers in many energy companies who adhere to the rules in our state. However, for those companies who would take advantage of our resources, they should know we will not hesitate to act."

The first incident was reported two years ago, when a resident spotted trucks releasing wastewater along a county road. "Subsequent investigations traced the wastewater back to hydrostatic testing of a new section of natural gas pipeline owned by the company," the Santa Fe New Mexican reported.

The second incident was discovered last year. In violation of a state permit, the company again discharged hydrostatic pipeline testing water. This time, "officials discovered Enterprise personnel had improperly altered paperwork," the news report said.

Here's how Enterprise responded, per the news report: "Rick Rainey, public relations director for Enterprise, said subcontractors had disposed of the wastewater. He said Enterprise has re-evaluated its policies and instituted new controls to help prevent future violations. The company plans to request a hearing before the Water Quality Control Commission to dispute some of the findings."

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