The US government has announced a record $241 million settlement with Marathon Oil for alleged air pollution violations at its oil and gas facilities on the Fort Berthold Indian Reservation in North Dakota. The settlement, which includes a record penalty and significant environmental upgrades, is the latest move by the Biden administration to crack down on oil and gas sector emissions and protect vulnerable communities.
The settlement covers years of excessive volatile organic compound and methane emissions from Marathon’s wells, piping, and storage tanks. The company allegedly failed to obtain required permits for its facilities. The $64.5 million penalty is the largest ever imposed for violations of the Clean Air Act from stationary sources and is more than double the combined total of previous oil and gas Clean Air Act settlements. Marathon will also invest an estimated $177 million to bring its facilities into compliance, which is expected to slash 2.25 million tons of carbon dioxide emissions over the next five years.
This historic settlement highlights the Biden administration’s commitment to addressing climate change through enforcement actions. It sets a precedent for increased environmental scrutiny in the oil and gas sector and demonstrates the government’s dedication to holding companies accountable for environmental violations. The settlement is subject to a 30-day public comment period before it can be finalized.