TRGP · 10-Q · 2026Q2 · Full report
Regulatory Risk
Targa Resources Corp. · 2026-08-06 · Importance 37 · Surprise 42 · No source text
Targa and the Partnership face environmental proceedings from the EPA, TCEQ, Oklahoma Department of Environmental Quality, NMED, Louisiana Department of Environmental Quality and North Dakota Department of Environmental Quality concerning alleged air emissions, environmental discharges and reporting violations. The NMED’s proposed Administrative Compliance Order for alleged air permit violations at the Red Hills facility includes an approximately $47.8 million civil penalty and required capital improvements, which were substantially completed by December 31, 2024. Targa filed a Request for Hearing on January 3, 2025 and continues negotiations with NMED; separately, a June 30, 2026 TCEQ proposed order would require a $0.5 million penalty and a $0.5 million Supplemental Environmental Project for alleged violations at the Mont Belvieu, Texas complex.
Key facts
- On December 5, 2024 Targa received a proposed Administrative Compliance Order from the NMED that includes a proposed civil penalty of approximately $47.8 million related to Red Hills. source
- On July 24, 2026 Targa’s motion for reconsideration was granted and the Fifth Circuit certified two questions to the Texas Supreme Court. source
- On December 9, 2025 the Fifth Circuit reversed trial court summary judgment in favor of Targa and remanded to trial court and upheld the $6.9 million jury verdict in favor of MIECO. source
- New Mexico Notice of Violation received on July 24, 2023 relating to alleged air permit violations at the Red Hills gas processing facility. source
- Received a Revised Proposed Agreed Order from TCEQ on June 30, 2026 to resolve alleged violations at Mont Belvieu with an administrative penalty of $0.5 million and agreement to perform a Supplemental Environmental Project for an equal amount. source
- Final judgment in lawsuit relating to February 2021 winter storm issued October 26, 2023 with damages awarded approximately $6.9 million (excluding pre-judgment interest). source
- Targa filed a Request for Hearing with the NMED on January 3, 2025 with respect to the ACO. source
- Operations include facilities that are not wholly owned by the company (note for Central and Badlands operations) source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | contingent | -0.0% | On December 5, 2024 Targa received a proposed Administrative Compliance Order from the NMED that includes a proposed civil penalty of… |
| liability | negative | contingent | 0.0% | On December 9, 2025 the Fifth Circuit reversed trial court summary judgment in favor of Targa and remanded to trial court and upheld the… |
| liability | negative | contingent | — | New Mexico Notice of Violation received on July 24, 2023 relating to alleged air permit violations at the Red Hills gas processing facility. |
| liability | negative | contingent | 0.0% | Received a Revised Proposed Agreed Order from TCEQ on June 30, 2026 to resolve alleged violations at Mont Belvieu with an administrative… |
| liability | negative | contingent | — | Targa filed a Request for Hearing with the NMED on January 3, 2025 with respect to the ACO. |