EPA announces record $241M settlement with Marathon Oil

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EPA announces record $241M settlement with Marathon Oil

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Michael S. Regan 16th Administrator, United States Environmental Protection Agency | Official Website

The U.S. Environmental Protection Agency (EPA) and the Department of Justice announced a $241.5 million settlement with Marathon Oil Company to address Clean Air Act violations at its oil and gas production operations on the Fort Berthold Indian Reservation in North Dakota. The settlement includes a civil penalty of $64.5 million, the largest ever for such violations at stationary sources like oil and gas tank systems.

Marathon is required to implement extensive compliance measures aimed at reducing harmful emissions from over 200 facilities across North Dakota. This case marks the first enforcement action against an oil and gas producer for major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration (PSD) program.

The complaint alleges that nearly 90 Marathon facilities emitted thousands of tons of illegal pollution, including volatile organic compounds (VOCs) and carbon monoxide, which contribute to respiratory illnesses and climate change through greenhouse gases like methane.

Marathon ranks as the nation’s 22nd largest oil producer but is the 7th largest emitter of greenhouse gases in the industry, primarily due to flaring practices that release methane. The settlement aims to reduce over 2.25 million tons of carbon dioxide emissions over five years, equivalent to removing 487,000 cars from roads for one year, and eliminate nearly 110,000 tons of VOC emissions.

“Today’s record Clean Air Act settlement is the most significant to date under EPA’s climate enforcement initiative,” said David M. Uhlmann, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance. “The $64.5 million penalty and substantial measures Marathon must take demonstrate that EPA will not allow corporate profits ahead of protecting communities and the environment.”

Attorney General Merrick B. Garland emphasized that this historic settlement ensures cleaner air for communities in North Dakota while holding Marathon accountable for its illegal pollution.

KC Becker, EPA Region 8 Administrator, highlighted that this agreement is a significant win for Tribal communities often overburdened by pollution: “These investments will improve air quality and reduce respiratory illnesses across the Fort Berthold Indian Reservation.”

Acting Associate Attorney General Benjamin C. Mizer noted that this benchmark-setting penalty reflects the Department's commitment to enforcing environmental laws: “Those who are historically overburdened by pollution are most at risk from these emissions.”

Assistant Attorney General Todd Kim stated that this landmark settlement would ensure cleaner air throughout North Dakota while substantially reducing pollutants contributing to global warming.

Under the agreement, Marathon will invest an estimated $177 million in compliance measures by the end of 2024. These include obtaining permits with federally enforceable emission limits at production facilities on state land and on the Fort Berthold Indian Reservation, flare monitoring, periodic infrared camera inspections, and storage tank design requirements.

The complaint also alleges Marathon failed to obtain necessary preconstruction permits under PSD programs and operating permits under Title V programs—an industry practice now facing tighter scrutiny.

This settlement aligns with EPA’s National Enforcement and Compliance Initiative focused on mitigating climate change by reducing methane emissions from oil, gas, and landfill sources while prioritizing communities already burdened by pollution.

The consent decree was filed with the United States District Court for North Dakota's Western Division and is subject to a 30-day comment period. More information can be found on both Justice Department's Proposed Consent Decree web pageExit EPA’s website and EPA's Marathon Oil Company 2024 Clean Air Act Stationary Source Settlement web page.

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