WASHINGTON – Today, July 11, the U.S. Environmental Protection Agency and Department of Justice announced a settlement with Marathon Oil Company resolving Clean Air Act 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 Clean Air Act at stationary sources, which include facilities such as oil and gas tank systems. 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 case is the first of its kind against an oil and gas producer for violations of major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program. The complaint alleges that these and other Clean Air Act violations at nearly 90 Marathon facilities resulted 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, including methane, were released in large quantities, contributing to climate change.
While Marathon is the nation’s 22nd largest producer of oil based on 2022 data, it is the 7th largest emitter of greenhouse gas emissions in the oil and gas industry. A large portion of these emissions come from flaring, an industry practice that releases methane, a climate super-pollutant. 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.
“Today’s record Clean Air Act 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 Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance. “The $64.5 million Clean Air Act 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. EPA is committed to doing everything possible to limit climate change and promote a sustainable future.”
“This historic settlement – the largest ever civil penalty for violations of the Clean Air Act 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. “The complaint alleges that Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal emissions. 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. The Justice Department will continue to vigorously enforce our environmental laws to protect the health of the American people.”
“This settlement is a major win for the health and future of our Tribal communities, including people and families who are often overburdened by pollution,” said KC Becker, EPA Region 8 Administrator. “As a result of the agreement, Marathon has and will continue to take comprehensive measures to come into compliance and reduce harmful emissions across hundreds of production sources. These investments will improve air quality and reduce respiratory illnesses across the Fort Berthold Indian Reservation and western North Dakota.”
“The record civil penalty and extensive compliance measures, including an innovative cap on VOC emissions, set a benchmark for the Department’s enforcement efforts at oil and gas production facilities,” said Acting Associate Attorney General Benjamin C. Mizer. “Those who are historically overburdened by pollution are the most at risk of being harmed by these emissions. The Justice Department is committed to enforcing laws such as the Clean Air Act to protect the health of everyone in the United States, including Tribal Nations and their members.”
“This landmark settlement will ensure cleaner air throughout the State of North Dakota and substantially reduce pollutants that contribute to global warming,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We are committed to taking strong action to ensure that oil and gas production operations across the nation comply with environmental laws designed to protect human health and the environment.”
The agreement requires Marathon to invest in extensive compliance measures estimated to cost $177 million, much of which will be implemented by the end of 2024. The settlement requires 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. Compliance measures also include flare monitoring, periodic infrared camera inspections and implementation of storage tank design requirements.
These actions will significantly reduce harmful health-related emissions from 169 existing facilities on state land and on the Fort Berthold Indian Reservation, as well as at new facilities built in North Dakota.
The complaint alleges that Marathon failed to obtain required preconstruction permits under the PSD program and operating permits under the Title V program, which represents a larger industry practice of permitting avoidance that is coming under tighter scrutiny.
The settlement is part of EPA’s National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources. Like all of EPA’s national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and other potential environmental justice concerns.
The consent decree was filed with the United States District Court, District of North Dakota, Western Division and is subject to a 30-day comment period. The complaint and the proposed consent decree is available on the Justice Department’s Proposed Consent Decree web page.
More information on the settlement agreement is available on the Agency’s Marathon Oil Company 2024 Clean Air Act Stationary Source Settlement web page.
Background
The complaint also alleges failure to comply with storage tank design, operation and maintenance requirements at facilities on the Fort Berthold Indian Reservation. The settlement requires Marathon to obtain permits for its existing facilities on the Reservation and for new facilities it builds in North Dakota. 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.
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.