Settlements and Verdicts

Air Quality Violations

Carlsbad, NM: (Apr-21-08) The New Mexico Environment Department brought charges against DCP Midstream LP, formerly Duke Energy Field Services, alleging that there were air quality violations at three of the company's natural gas plants, including one in Eddy County. Sources close to the case stated that the two sides have reached a settlement agreement in the case, in which DCP agreed to a $60.8 million payout to resolve allegations. Under the terms of the deal, the company will work towards the reduction of air pollution, including sulfur dioxide and greenhouse gas emissions. DCP will have to pay $1.8 million including $600,000 for supplemental environmental projects to address climate change.

The New Mexico Environment Department said that it will allow DCP to construct emissions reduction environmental projects totaling $59 million. The projects will include Linam Ranch acid gas injection installation to significantly reduce emissions from the plant. A project at Eunice, which will serve to improve electrical reliability and reduce emissions caused by power disruption. Additionally, DCP will also pay stipulated penalties of $400,000 for past flaring events in excess of air quality permit limits. The company has agreed to pay stipulated penalties for certain future flaring events that exceed air quality permit limits and conduct root cause analysis on each event. Sources stated that this is the largest settlement the NMED has negotiated [CURRENT ARGUS: NMED, ENERGY COMPANY REACH AIR QUALITY SETTLEMENT]

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