U.S. authorities announced a $241.5 million settlement with Marathon Oil to resolve alleged clean air violations in North Dakota.
In a civil lawsuit, the Department of Justice (DOJ) and the Environmental Protection Agency accused the Texas company of ignoring environmental laws at dozens of sites on the Fort Berthold Indian Reservation, AFP reports.
The company will pay a $64.5 million civil penalty and spend an additional $177 million to upgrade operations to address pollution through flare monitoring, infrared camera inspections and redesigning storage tanks.
The agency added that the civil penalty is the largest ever for Clean Air Act violations at stationary sources.
In May, Marathon announced a $22.5 billion deal in which it would be acquired by ConocoPhillips.
The company has been producing in the shale-rich Bakken field in North Dakota since 2006, according to securities filings by Marathon.
A Justice Department complaint filed in a U.S. court in North Dakota says the oil company failed to comply with requirements for the design, operation and maintenance of about 66 oil and gas extraction facilities, resulting in illegal emissions.
Marathon also failed to obtain permits for the prior construction or operation of about 38 facilities. To avoid permitting requirements, the company submitted "artificially low" emissions estimates based on "erroneous and unsubstantiated assumptions," the complaint said.
This settlement "will ensure cleaner air for the Fort Berthold Reservation and other communities in North Dakota while holding Marathon accountable for its illegal pollution," Attorney General Merrick Garland said in a statement. It would deeply reduce methane emissions, a major contributor to climate change, it said. | BGNES
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