The Justice Department and Environmental Protection Agency (EPA) announced a $241.5 million settlement with Marathon Oil Company for Clean Air Act violations at the company's oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota. The settlement mandates that Marathon pay a civil penalty of $64.5 million, the largest ever for such violations at stationary sources like oil and gas tank systems. Marathon is also required to implement extensive compliance measures aimed at significantly reducing harmful emissions from over 200 facilities across the state.
"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 case marks a first against an oil and gas producer for major source emissions permitting violations under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program. According to allegations, these and other Clean Air Act violations at approximately 90 Marathon facilities led to thousands of tons of illegal pollution, including volatile organic compounds (VOCs) and carbon monoxide, which contribute to asthma and respiratory illnesses.
While Marathon ranks as the nation's 22nd largest oil producer based on 2022 data, it stands as the 7th largest emitter of greenhouse gases within its industry. A significant portion of these emissions stem from flaring, an industry practice that combusts but also releases methane, a potent climate super-pollutant.
"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," stated Acting Associate Attorney General Benjamin C. Mizer.
Assistant Attorney General Todd Kim emphasized the broader impact: "This landmark settlement will ensure cleaner air throughout North Dakota and substantially reduce pollutants contributing to global warming."
David M. Uhlmann from EPA's Office of Enforcement highlighted EPA's commitment: "Today’s historic settlement is part of a larger effort to hold oil and gas companies accountable for widespread violations... EPA is committed to doing everything possible to limit climate change."
KC Becker from EPA Region 8 noted community benefits: "This settlement is a major win for our Tribal communities... These investments will improve air quality and reduce respiratory illnesses across Fort Berthold Indian Reservation."
Marathon must invest $177 million into compliance measures by end-2024. The company must obtain permits with federally enforceable emission limits at its production facilities on Fort Berthold Indian Reservation and future operations statewide. Compliance actions include flare monitoring, infrared camera inspections, and storage tank design requirements.
These measures aim to cut health-related emissions from 169 existing facilities on state land and Fort Berthold Indian Reservation while capping VOC emissions below 100 tons per year.
Additionally, auditor checks on permit applications are mandated along with ongoing audits on facility emissions; non-compliance could lead to temporary production halts.
As part of this agreement, Marathon will fund three projects aimed at reducing emissions further. Two infrared cameras will be provided to Mandan, Hidatsa & Arikara Nation for facility inspections during oil/natural gas production.
Flaring reduction remains central; although it burns harmful natural gas components like VOCs/methane efficiently converting them into water/carbon dioxide some methane escapes exacerbated by improper flare operation/unlit flares resulting in excess atmospheric releases impacting surrounding communities' health.