Air Enforcement: Alabama Department of Environmental Management and Monroe County Production/Extraction Facility Enter into Consent Order

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.

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The Alabama Department of Environmental Management (“ADEM”) and Hilcorp Energy Company, Inc. (“Hilcorp”) entered into an August 31st Consent Order (“CO”) addressing alleged violations of the Alabama Air Regulations.

The CO provides that Hilcorp operates the Lancaster Production Facility and the Lutfkin Production and NGL Extraction Facility (“Facility”) located in Monroe County, Alabama.

Hilcorp is stated to operate pursuant to a Synthetic Minor Operating Permit the following:

  • 465 brake horsepower (“BHP”), four-stroke rich burn
  • Caterpillar 3412 Engine with catalytic converter
  • 400 BHP, 4SRB
  • Caterpillar 3408 TAW Engine with catalytic converter

See No.: 106-0030-X001 (“Permit”).

The Permit states in part that Hilcorp must test at least one of the engines once every three years.

Hilcorp is stated to have conducted a compliance test on the E-1B engine on August 31, 2014. The next test should have been performed by August 31, 2017.

Hilcorp is stated to have conducted a compliance test on the E-1B engine after ADEM inquired as to why a test had not been conducted within three years. This compliance test is stated to have been conducted 23 months after the date required. Therefore, the CO provides that according to the Permit, the next compliance test should have been performed by July 29, 2022.

ADEM conducted an inspection of the Facility on February 24th and is stated to have determined that Hilcorp had not performed a compliance test on the E-1B or E-58 engines since July 2019. Therefore, it had been six months since the compliance test was required to be performed.

Hilcorp submitted test protocols for compliance tests for the E-1B and E-58 engines on March 9th. The company scheduled the tests for April 19th. Such tests were delayed until May 2nd and then subsequently June 2nd.

Hilcorp conducted compliance tests on the referenced engines on May 31st.

Hilcorp neither admits nor denies ADEM’s contentions.

A civil penalty of $30,000 is assessed.

A copy of the CO can be downloaded here.

Written by:

Mitchell, Williams, Selig, Gates & Woodyard, P.L.L.C.
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