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New Mexico settles with Texas well operator

SANTA FE, N.M. (AP) — New Mexico oilfield regulators have reached a settlement agreement with a Texas well operator in response to spills of oily salt water at the company’s waste-water injection sites and oil wells.

The New Mexico Oil Conservation Division confirmed Tuesday the agreement with Siana Operating of Midland, Texas, that outlines a timeline for cleaning up the spills at two clusters of wells outside Eunice in the southeastern corner of New Mexico. Siana also would pay a penalty of $19,000 over the course of a year and could resume operations if all terms are met.

Separately, the State Land Office continues to pursue a lawsuit seeking compensation from Siana on accusations the company spilled waste at a well site on state trust lands where it had stopped making lease payments years ago.

Related: Oil price unlikely to rise much further, global agency says.

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