Historic $241 Million Deal: Marathon Oil Settles for Clean Air Act Violations

U.S. officials have announced a $241 million settlement with Marathon Oil for alleged air pollution violations in North Dakota. The settlement includes a record penalty and significant environmental upgrades aimed at reducing emissions, aligning with President Biden's climate change and environmental justice goals.

U.S. officials on Thursday announced a $241 million settlement with Marathon Oil over alleged air pollution violations at dozens of the company's oil and gas facilities on a North Dakota Indian reservation, describing it as part of an ongoing crackdown. The settlement includes a record penalty and environmental equipment upgrades.

President Joe Biden's administration has intensified enforcement in the oil and gas sector to combat climate change and reduce pollution, especially in low-income and minority communities. "The Marathon settlement represents a significant advance in our efforts to address climate change through enforcement action," stated Todd Kim, assistant attorney general with the Department of Justice's environment and natural resources division.

The deal pertains to years of alleged excessive volatile organic compound and methane emissions from wells, piping, and storage tanks on the Fort Berthold Indian Reservation, home to the Mandan, Hidatsa, and Arikara Nation. It is the administration's largest action against oil and gas sector emissions to date.

Under the deal, Marathon will pay a $64.5 million penalty, the largest ever for Clean Air Act violations from stationary sources, according to the Environmental Protection Agency and the Department of Justice. This penalty is more than double the combined total of 11 previous oil and gas Clean Air Act settlements by the administration.

Despite the penalty, it is overshadowed by Marathon's earnings of $1.55 billion last year. The company will also invest an estimated $177 million to bring its facilities into compliance with the law, which will reduce 2.25 million tons of carbon dioxide emissions over the next five years, equivalent to removing 487,000 cars from the road for a year.

The settlement is subject to a 30-day public comment period before finalization. The complaint alleged that Marathon failed to obtain required permits for its facilities. Marathon and a representative for the MHA Nation did not immediately respond to requests for comments.