Marathon Oil Hit with Record $241.5M Settlement for Clean Air Act Violations

The U.S. Justice Department and Environmental Protection Agency (EPA) have reached a $241.5 million settlement with Marathon Oil Company over Clean Air Act violations in North Dakota. The agreement, announced on Thursday, July 11, 2024, marks the largest civil penalty ever imposed for Clean Air Act violations at stationary sources.

The settlement stems from violations at Marathon's oil and gas production operations on the Fort Berthold Indian Reservation and across North Dakota. Under the terms of the agreement, Marathon will pay a $64.5 million civil penalty and invest an estimated $177 million in compliance measures.

Attorney General Merrick B. Garland stated, "This historic settlement will ensure cleaner air for the Fort Berthold Indian Reservation and other communities in North Dakota, while holding Marathon accountable for its illegal pollution."

The complaint alleges that violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal emissions, including volatile organic compounds (VOCs) and greenhouse gases. These pollutants contribute to respiratory illnesses and climate change.

Key points of the settlement include:

1. Implementation of extensive compliance measures across over 200 facilities in North Dakota.
2. Expected reduction of over 2.25 million tons of carbon dioxide equivalent emissions over the next five years.
3. Elimination of nearly 110,000 tons of VOC emissions.
4. Requirements for Marathon to obtain proper permits and implement stricter monitoring and inspection processes.

EPA Assistant Administrator David M. Uhlmann emphasized the significance of the settlement in the agency's climate enforcement initiative, stating it will "dramatically cut its emissions, including the release of methane, a climate super-pollutant."

The agreement also addresses environmental justice concerns, as many affected communities have historically been overburdened by pollution. As part of the settlement, Marathon will provide equipment to the Mandan, Hidatsa and Arikara Nation for oil and gas production facility inspections.

This case sets a new precedent in holding oil and gas companies accountable for environmental violations and underscores the increasing focus on ESG (Environmental, Social, and Governance) compliance in the industry. The substantial financial implications serve as a stark reminder of the risks associated with poor environmental management and regulatory non-compliance.

The proposed consent decree is subject to a 30-day public comment period before final approval. This settlement is part of the EPA's broader National Enforcement and Compliance Initiative aimed at mitigating climate change and reducing methane emissions from oil and gas sources.

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