Enterprise fined $200,000 for 'not following protocol' after Oxy Sand Dunes fire

Government
Enterprise
Last year's fire at the Oxy Sand Dunes North Compressor Station in Eddy County could cost Enterprise Field Services nearly a quarter-million in fines. | Facebook.com/enterpriseproducts

The Oil Conservation Division (OCD) of New Mexico's Energy, Minerals and Natural Resources Department has fined energy producer Enterprise Field Services $204,300 for failing to report a leak at one of its facilities, New Mexico Public Radio (NMPR) reported.

In August 2020, a fire at an Enterprise compressor station in Eddy County caused 250 barrels of condensate liquid to leak, the story said. The OCD defines a major leak as any release of 25 barrels or more of condensate.

The OCD requires formal notification within 24 hours of a major release. Enterprise did not provide notice until Dec. 14, 2020, more than four months after the release, NMPR reported. 

Enterprise was also required to provide written notification within 15 days of the release, but filed it Feb. 4, 2021, more than five months past the deadline, the radio network reported.

“My administration takes environmental protection seriously – we've strengthened New Mexico's environmental oversight and created tough new rules to curb pollution,” Gov. Michelle Lujan Grisham said on Twitter in reaction to last week's announcement of the violations. “Those who endanger public and environmental health by violating state regulations will be held accountable.”

Enterprise Vice President of Communications Rick Rainey acknowledged that the company had been notified of the violations, the Carlsbad Current Argus reported. The company is in the process of reviewing them, Rainey told the newspaper.

“By not following the established protocol, Enterprise undermined the OCD’s ability to ensure proper remediation of the site,” OCD Director Adrienne Sandoval said in a statement, the Current Argus reported. “This is a key part of our regulatory authority and why failure to report is considered a serious violation.”

Enterprise can now discuss informal resolutions with OCD that could prevent further fines from being imposed, the Current Argus reported.

If the two parties cannot resolve the issue in those informal discussions, then OCD will hold a court hearing, according to NMPR.