New Mexico Reaches $920K Settlement With Gas Processor

State environment officials have reached a settlement with the operator of a natural gas processing plant in southeastern New Mexico over alleged pollution violations.

The Environment Department says the settlement with Occidental Permian Limited Partnership is worth more than $920,000. Most of the money will go toward installing pollution controls at the company’s plant near Hobbs.

The department alleges the plant in 2010 failed to fully report emissions from flaring events that exceeded permit limits for carbon monoxide, hydrogen sulfide, sulfur dioxide and other pollutants.

Under the settlement, Occidental denies violating any regulations but agreed to pay a $95,000 penalty and will spend at least $825,482 to install the new equipment.

Occidental says the total cost of the equipment could be more than $2 million.