NM Settlement with TX Well Operator

Thursday, June 16, 2016 @ 12:06 PM gHale


New Mexico oilfield regulators reached a settlement agreement with a Texas well operator in response to spills of oily salt water, or brine, at the company’s waste-water injection sites and oil wells.

The New Mexico Oil Conservation Division said Tuesday the agreement with Siana Operating of Midland, Texas, outlines a timeline for cleaning up the spills at two clusters of wells outside Eunice in the southeastern corner of New Mexico.

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Siana also would pay a penalty of $19,000 over the course of a year and could resume operations if all terms end up met.

Separately, the State Land Office continues to pursue a lawsuit seeking compensation from Siana on accusations the company spilled waste at a well site on state trust lands where it had stopped making lease payments years ago.