On July 11, 2024, the US Department of Justice announced that an oil and gas producer has agreed to pay a $64.5 million penalty to settle allegations of Clean Air Act (CAA) violations. According to DOJ’s news release, the penalty is “the largest ever for violations of the Clean Air Act at stationary sources…”

Major Source Permitting Requirements
The company allegedly violated the CAA’s “major source emissions permitting requirements” at approximately 90 facilities in North Dakota that “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.”

Climate Enforcement Initiative
DOJ noted that the company is the 22nd largest producer but the 7th largest greenhouse gas emitter in the domestic oil and gas industry, according to 2022 data. The settlement is “the most significant to date under EPA’s climate enforcement initiative,” according to Assistant Administrator David M. Uhlmann of EPA’s Office of Enforcement and Compliance Assurance.

Permits and Compliance Measures
As part of the settlement, the company has agreed to obtain preconstruction and operating permits required by the CAA and implement “extensive compliance measures estimated to cost $177 million, much of which will be expended by the end of 2024.” The compliance measures will address flare monitoring, require periodic infrared camera inspections, and upgrade storage tank design requirements.

To see the news release, which includes a link to access the proposed consent decree https://www.justice.gov/opa/pr/justice-department-and-epa-announce-2415m-settlement-marathon-oil-reduce-climate-and-health