Ovintiv USA Agrees to $16 Million Settlement Over Clean Air Violations in Utah

Ovintiv USA Inc. has agreed to pay $5.5 million in civil penalties and implement approximately $10 million in facility upgrades to resolve Clean Air Act violations at its oil and gas production facilities in Utah, federal authorities announced today.

The settlement, announced jointly by the U.S. Department of Justice and Environmental Protection Agency (EPA), addresses violations at 22 facilities in the Uintah Basin, including operations on the Uintah and Ouray Reservation and Utah state lands.

The comprehensive agreement requires Ovintiv to undertake extensive improvements across 139 facilities statewide, with projected environmental benefits including the elimination of over 2,000 tons of volatile organic compounds (VOC) annually. The company will also reduce methane emissions equivalent to removing nearly 13,000 gas-powered vehicles from the road each year.

According to the civil complaint filed by federal and state authorities, Ovintiv failed to properly capture and control air emissions and did not comply with required inspection, monitoring, and recordkeeping requirements. These violations led to unauthorized releases of VOCs, which are known to worsen asthma and increase vulnerability to respiratory conditions. The facilities also emitted significant quantities of methane, a potent greenhouse gas.

"This case is a win for the environment and for consumers," said Assistant Attorney General Todd Kim of the Justice Department's Environment and Natural Resources Division. He noted that the required improvements will significantly reduce atmospheric emissions while redirecting captured gas to productive use through sales pipelines.

The settlement mandates several specific compliance measures, including:

• Proper facility design to capture all VOC emissions
• Regular infrared camera inspections
• Enhanced maintenance protocols
• Installation of storage tank pressure monitors at numerous facilities

EPA Assistant Administrator David M. Uhlmann emphasized the settlement's importance in the agency's broader climate strategy, stating, "EPA is doing everything possible to limit the methane emissions that are among the most powerful drivers of climate change."

The agreement is part of EPA's National Enforcement and Compliance Initiative on Mitigating Climate Change, with a particular focus on communities already facing significant environmental challenges. The consent decree is subject to a 30-day public comment period before final approval by the U.S. District Court for the District of Utah.

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