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Pennsylvania Oil and Gas Producers Pay Millions to Settle Air Enforcement Cases

2020 Environmental Real Estate Issues

On November 21, 2024, the US Department of Justice (DOJ) announced settlements of two Clean Air Act (CAA) enforcement cases. The Commonwealth of Pennsylvania and DOJ brought both cases and will split the penalties.

Failure to Meet New Source Performance Standards
In one case, the producer will pay a $4 million civil penalty and spend at least $1.4 million to plug or remediate abandoned wells in Pennsylvania. DOJ alleged the producer failed to comply with CAA new source performance standards. These standards require VOC and methane emissions to be controlled from new, modified and reconstructed sources, including storage vessels involved in production and transmission. The producer also failed to obtain approvals from the Pennsylvania Department of Environmental Protection prior to the construction or modification of an air contamination source.

Failure to Comply with Specifications in Permit Applications
In the other case, the producer will pay a $1.275 million penalty and retrofit at least 164 pneumatic controllers with non-emitting process controllers. DOJ alleged the producer failed to comply with the specifications in permit applications and the terms and conditions of its permits. Specifically, the producer did not route all vapors, including volatile organic compounds (VOCs) and methane, to a control device from the storage tanks. The producer also failed to obtain a plan approval and operating permit at one additional facility.

To see DOJ’s press release, which has links to find more details about each settlement and the proposed Consent Decrees https://www.justice.gov/opa/pr/justice-department-epa-and-pennsylvania-announce-settlements-reduce-climate-and-health