The federal government announced a $241.5 million settlement with Marathon Oil on Thursday to resolve alleged air quality violations at its oil and gas operations on the Fort Berthold Indian Reservation in North Dakota and significantly reduce emissions from over 200 facilities statewide.
The agreement mandates Marathon Oil to pay a $64.5 million civil penalty and implement extensive compliance measures, projected to cost $177 million, to curb pollution. The Houston-based company operates 169 well pads in North Dakota.
A proposed decree for implementing the settlement says the company does not admit liability over the allegations, but the two sides agree the settlement will prevent litigation and serve the public interest.
Marathon officials did not immediately respond to a request for comment.
“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 U.S. Attorney General Merrick Garland.
The compliance measures, to be largely completed by the end of 2024, target reducing volatile organic compounds (VOCs), carbon monoxide, and methane emissions.
David Uhlmann, assistant administrator of EPA’s Office of Enforcement and Compliance Assurance, said the settlement shows that the EPA will hold corporate polluters accountable.
“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,” he said.
Marathon Oil, the nation’s 22nd largest oil producer, will reduce its emissions by over 2.25 million tons of carbon dioxide equivalents over the next five years, a reduction comparable to removing 487,000 cars from the road for one year, the EPA said.
According to the agency the company is the seventh largest emitter of greenhouse gases in the oil and gas sector. Much of these emissions come from flaring, a practice that releases methane, which they call a “climate super-pollutant.”
The settlement is the first of its kind against an oil and gas producer for alleged violations of major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program. Allegations include Marathon’s failure to obtain necessary preconstruction and operating permits, resulting in substantial illegal emissions.
KC Becker, EPA Region 8 administrator, noted the benefits for tribal communities overburdened by pollution. “The agreement will lead to significant improvements in air quality and health outcomes on the Fort Berthold Indian Reservation and across western North Dakota,” he said.
The compliance measures include monitoring flaring activities, infrared camera inspections, and enhanced storage tank design requirements, according to the EPA. These steps aim to mitigate emissions from 169 existing facilities and future operations in the state.
