The Environmental Protection Agency (EPA) and the Department of Justice have reached settlements with two oil and gas operators in Pennsylvania over alleged violations of the Clean Air Act. The agreements involve XTO Energy Inc. (XTO) and Hilcorp Energy Company (Hilcorp), who have agreed to pay civil penalties for their operations in the state.
Under these settlements, XTO will pay a $4 million civil penalty, while Hilcorp will pay $1.275 million. These penalties will be equally divided between the United States and Pennsylvania, which is a co-plaintiff in both cases. Both companies are also required to implement compliance measures to reduce emissions at their facilities located in Butler County, Lawrence County, and Mercer County.
Assistant Administrator David M. Uhlmann from EPA's Office of Enforcement and Compliance Assurance commented on the issue: “Hilcorp and XTO Energy’s violations contributed to smog that reduces air quality, as well as methane releases that are a primary driver of near-term climate change.” He added that these settlements are part of the EPA's ongoing efforts to curb greenhouse gas emissions.
Todd Kim, Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division, emphasized the importance of these actions: “These actions are the result of our continuing efforts to ensure that oil and gas operators comply with the Clean Air Act.”
Eric G. Olshan, U.S. Attorney for the Western District of Pennsylvania, reinforced this message by stating: “Today’s settlements reinforce a simple message: if your company contaminates the air in this district with harmful pollution, you will be held accountable under federal law.”
Jessica Shirley, Acting Secretary for Pennsylvania Department of Environmental Protection (PADEP), highlighted the benefits for local residents: “Pennsylvanians have a right to clean air... These settlements will result in lower emissions and cleaner air for the people of the commonwealth.”
As part of its settlement obligations, XTO must also undertake a project by December 31, 2027, involving collaboration with PADEP to address abandoned wells emitting significant amounts of methane. This initiative is expected to reduce over 1,960 tons of carbon dioxide equivalent emissions annually.
Similarly, Hilcorp has committed to retrofitting pneumatic controllers at several facilities earlier than legally required. This action aims to cut down on volatile organic compound (VOC) emissions significantly.
Both companies were found not compliant with federal and state requirements concerning air emission controls at their respective production facilities. Methane released into the atmosphere contributes significantly to climate change due to its potency as a greenhouse gas.
XTO operates extensively across several regions including western Pennsylvania where it holds interests in numerous oil and natural gas wells. Hilcorp conducts exploration and production activities throughout various states including Pennsylvania.
These legal agreements form part of an EPA initiative focused on reducing methane emissions from industries like oil and gas production as well as landfills.
The consent decrees await approval following a 30-day public comment period after being filed with the United States District Court for the Western District of Pennsylvania.
