SANTA FE, N.M. (AP) — New Mexico regulators announced a $2.2 million fine Wednesday against a Texas-based oilfield driller and waste disposal company, though it was unclear whether the company could be compelled to pay.
The New Mexico Energy, Minerals and Natural Resources Department announced a state district court order that Midland, Texas-based Siana Operating cease disposal activities and clean up polluted well sites in the southeast of the state.
Agency spokeswomen Beth Wojahn said Siana has not fulfilled provisions of the recent court judgment. An attorney for Siana could not be reached immediately.
State regulators have accused Siana of failing to comply with a 2016 settlement agreement to address spills of oily salt water at well sites in southeastern New Mexico and cap an abandoned well.
Wastewater from oil and natural gas drilling operations is typically delivered by truck to disposal sites like Siana’s, where most oil is skimmed off before water is injected deep underground.
Siana has been a major provider of well-water disposal services in New Mexico, but ran afoul of permit rules overseen by the Oil Conservation Division.
The State Land Office also is engaged in litigation with Siana over accusations the company trespassed and spilled waste on state trust lands where it stopped making lease payments years ago.