The EPA and the Department of Justice recently announced a settlement with Houston-based Marathon Oil Company, resolving Clean Air Act (CAA) violations at the company’s oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota.
“The settlement requires that Marathon pay a civil penalty of $64.5 million, the largest ever for violations of the [CAA] at stationary sources, which include facilities such as oil and gas tank systems,” according to an EPA news release. “Under the settlement agreement, Marathon will implement extensive compliance measures to achieve major reductions in harmful emissions from over 200 facilities across the state.”
The complaint against Marathon alleged violations at approximately 90 Marathon locations, resulting in thousands of tons of illegal pollution, including volatile organic compounds (VOCs) and carbon monoxide, which contribute to asthma and increase susceptibility to respiratory illnesses. Additionally, greenhouse gases (GHGs), including methane, were released in large quantities, according to the Agency, contributing to climate change.
This case marks the first time the EPA has pursued violations against an oil and gas producer for violations of major source emissions permitting requirements under the CAA’s Prevention of Significant Deterioration (PSD) program.
“Today’s record [CAA] settlement is the most significant to date under EPA’s climate enforcement initiative and makes clear that EPA will hold corporate polluters like Marathon accountable for violations that put communities and our futures at risk,” said David M. Uhlmann, assistant administrator of the EPA’s Office of Enforcement and Compliance Assurance, in the Agency news release. “The $64.5 million [CAA] penalty and the substantial measures Marathon must take to reduce its harmful air emissions demonstrate that EPA will not allow oil and gas companies to put corporate profits ahead of protecting communities and the environment. As a result of today’s settlement, Marathon will dramatically cut its emissions of methane, a climate super-pollutant that is dozens of times more potent in the near term than carbon dioxide.”
“This historic settlement – the largest ever civil penalty for violations of the [CAA] at stationary sources – will ensure cleaner air for the Fort Berthold Indian Reservation and other communities in North Dakota, while holding Marathon accountable for its illegal pollution,” said Attorney General Merrick B. Garland in the EPA’s release. “The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon-dioxide emissions over the next five years and also eliminate nearly 110,000 tons of VOC emissions.”
Based on EPA 2022 data, Marathon is the nation’s 22nd-largest producer of oil and the 7th-largest emitter of GHG emissions.
“A large portion of these emissions come from flaring, an industry practice that releases methane, a climate super-pollutant,” the EPA press release continues. “The work that Marathon will do under this agreement will result in the equivalent of over 2.25 million tons of reduced carbon dioxide emissions over the next five years, similar to the number of reductions achieved by taking 487,000 cars off the road for one year. The settlement will also eliminate nearly 110,000 tons of VOC emissions.”
Where did things go wrong, and how will they be corrected?
The complaint alleges that Marathon failed to obtain required preconstruction permits under the PSD program and operating permits under the Title V program, which, according to the EPA, represents a larger industry practice of permitting avoidance that’s coming under tighter scrutiny.
“The complaint also alleges failure to comply with storage tank design, operation and maintenance requirements at facilities on the Fort Berthold Indian Reservation,” adds the release.
Compliance measures required by Marathon under the agreement are estimated to cost $177 million, and most are required to be implemented by the end of this year. Those measures require Marathon to:
- Obtain permits with federally enforceable emissions limits at production facilities on the Fort Berthold Indian Reservation and future operations in the state of North Dakota.
- Implement flare monitoring.
- Perform periodic infrared camera inspections.
- Implement storage tank design requirements.
These actions will cap VOC emissions at under 100 tons per year.
“The settlement further requires auditor checks on Marathon’s permit applications and ongoing audits of emissions from its facilities. Marathon must temporarily stop production if facility-wide emissions limits are exceeded or if flares are not operating properly,” adds the release. “In addition to three other projects to reduce emissions, Marathon will purchase two infrared cameras for use by the Mandan, Hidatsa and Arikara Nation during oil and natural gas production facility inspections.
“A major part of this case is the reduction of flaring at the facility. Flaring burns harmful natural gas components such as VOCs and methane, but the process is not 100% efficient. These inefficiencies, combined with improper flare operation, result in excess emissions being released to the atmosphere and can have health impacts on the surrounding communities.”
The Marathon case falls under the EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change, which focuses in part on reducing methane emissions from oil and gas and landfill sources. Under this initiative, communities already overburdened by pollution and other potential environmental justice concerns are prioritized.
“Marathon, which did not admit liability as part of the agreement, said it was pleased to resolve the matter without litigation. The company also produces oil and gas in Texas, New Mexico and Oklahoma,” according to The New York Times.
The consent decree was filed with the U.S. District Court, District of North Dakota, Western Division. More information on the settlement agreement is available on the EPA’s Marathon Oil Company 2024 Clean Air Act Stationary Source Settlement web page.