Marathon Oil hit with record $64.5 million penalty for Clean Air Act violations

Marathon Oil has agreed to a historic $64.5 million penalty and a substantial $177 million investment in pollution control measures to settle allegations of Clean Air Act violations at its North Dakota operations.

Marathon Oil has agreed to a record-setting penalty of $64.5 million, alongside a substantial $177 million investment in pollution reduction efforts, to resolve allegations of Clean Air Act violations in a landmark environmental enforcement action.

This historic settlement marks the largest penalty ever imposed for breaches involving stationary sources, such as oil refineries and factories, according to the Environmental Protection Agency (EPA), Caliber.Az reports citing the foreign media.

The settlement, announced jointly by the EPA and the Justice Department, is part of the Biden administration's intensified efforts to enforce environmental regulations following a period of relaxed oversight during the previous administration. The penalties are aimed at addressing significant pollution issues at Marathon Oil’s operations in North Dakota, including those on the Fort Berthold Indian Reservation.

David Uhlmann, Assistant Administrator of the EPA’s Office of Enforcement and Compliance Assurance, emphasized the significance of the settlement, stating, “Today’s record Clean Air Act settlement is the most significant to date under EPA’s climate enforcement initiative and demonstrates EPA’s commitment to holding corporate polluters accountable for violations that jeopardize our communities and our future.”

Attorney General Merrick Garland also praised the settlement, noting it would ensure cleaner air for North Dakota communities while holding Marathon Oil accountable for its pollution practices. The complaint filed by the EPA and the Justice Department alleges that Marathon violated Clean Air Act requirements at nearly 90 facilities, resulting in thousands of tons of illegal emissions. These violations include excessive releases of volatile organic compounds and carbon monoxide, which are harmful to respiratory health, and large quantities of methane, a potent greenhouse gas.

As part of the settlement, Marathon Oil is required to implement measures that will cut over 2.25 million tons of carbon dioxide emissions over the next five years—equivalent to removing approximately 487,000 cars from the road for a year. The agreement will also prevent nearly 110,000 tons of volatile organic compound emissions.

Despite being the 22nd-largest oil producer in the US in 2022, Marathon Oil was also the seventh-largest emitter of greenhouse gases in the oil and gas sector, with a significant portion of emissions stemming from flaring practices. The new settlement underscores a vigorous push by the Biden administration to reinforce environmental standards and reduce the carbon footprint of major industrial operations.