HF Sinclair Navajo Refining LLC has reached a proposed settlement with the Environmental Protection Agency (EPA), the Department of Justice, and the New Mexico Environment Department. The agreement addresses alleged violations of the Clean Air Act and the New Mexico Air Quality Control Act at its oil refinery in Artesia, New Mexico.
The company is required to pay a civil penalty of $35 million, which will be divided equally between the United States and New Mexico. HF Sinclair Navajo must also implement compliance measures estimated to cost $137 million. These measures include capital investments aimed at reducing emissions from its refinery operations.
Projected annual reductions include 180 tons of hazardous air pollutants such as benzene, 2,716 tons of volatile organic compounds (VOCs), 51 tons of nitrogen oxides (NOx), and 31 tons of sulfur dioxide (SO2). These actions are expected to lower carbon dioxide emissions by an equivalent of 97,551 tons per year.
To ensure transparency, HF Sinclair Navajo will operate ten real-time air pollution monitors along the refinery's fence line and additional monitors in Artesia. The data collected will be publicly accessible online.
Acting Assistant Administrator Cecil Rodriguez from EPA’s Office of Enforcement stated that “HF Sinclair Navajo’s failure to monitor and control the release of benzene” posed significant health risks. He emphasized that monitoring would provide crucial data for protecting community health.
Acting Assistant Attorney General Katherine E. Konschnik noted that "the settlement reinforces the United States’ commitment" to addressing illegal emissions. She highlighted investments in pollution controls aimed at improving air quality for Artesia residents.
Dr. Earthea Nance, EPA Regional Administrator, mentioned that "the fenceline community in Artesia has lived with" emissions for years. She stressed that this settlement offers overdue relief from health risks linked to these pollutants.
Secretary James Kenney from NMED remarked on accountability, saying: “Today’s action not only obtains civil penalties — it forces the Artesia Refinery to invest” in projects benefiting state air quality.
The settlement requires HF Sinclair Navajo to rectify regulatory non-compliance related to equipment and operations including flaring and leak detection. The company will implement various projects like installing a flare gas recovery system and upgrading wastewater equipment.
In past years, monitoring revealed high levels of benzene concentrations near the refinery. As part of this agreement, HF Sinclair Navajo will continue operating air pollution monitors costing approximately $1.8 million to ensure compliance with regulations.
Benzene is known for its cancer-causing potential while VOCs contribute significantly to smog formation affecting human health.
HF Sinclair Corp., based in Dallas, Texas, operates this refinery serving southwestern U.S markets with a crude oil capacity reaching 100,000 barrels daily.
The proposed consent decree was filed with the United States District Court in New Mexico and awaits a 30-day public comment period before finalization. Details can be found on the Justice Department’s website.
