SANTA FE NM (3/14/2019) — Today, the New Mexico Environment Department (NMED) issued a Notice of Violation to Hilcorp Energy Company for violations of the state’s Air Quality Control Act. NMED joins the U.S. Environmental
Protection Agency (EPA) in putting Hilcorp on notice for these violations.

In February 2018, Hilcorp Energy Company violated both state and federal air quality laws by improperly
controlling emissions from one of its wells in the San Juan Basin. Under New Mexico’s Air Quality Control Act and federal regulations, natural gas released during hydraulic fracturing must be captured and not wasted.

“NMED is committed to assuring the oil and natural gas industry’s compliance with rules and permits,” said NMED
Secretary James Kenney, “This creates a level playing field among operators while ensuring public health and
environmental protections.”

Failure to comply with these provisions of state and federal air quality laws can lead to uncontrolled emissions of volatile organic compounds (VOCs), which contribute to the formation of ground-level ozone and hazardous air pollutants (HAPs). A collateral benefit of complying with these laws is the reduction of methane emissions. Methane, the key constituent of natural gas, is a potent greenhouse gas with a global warming potential more than 84 times greater than that of carbon dioxide, according to the Intergovernmental Panel on Climate Change. A primary source of methane emissions in New Mexico comes from the production, transmission and distribution of oil and natural gas.

NMED and the EPA are working collaboratively and requiring Hilcorp to submit additional data on each of its oil
and natural gas production facilities in New Mexico to determine its compliance. Hilcorp Energy Company has 10
days to reply to NMED and EPA.

Contact: Maddy Hayden, Communications Director New Mexico Environment Department 505.231.8800 | maddy.hayden@state.nm.us