Record Fine and Extensive Obligations for Marathon Oil

Marathon Oil has agreed to a settlement in which the company will spend $241.5 million to address allegations by U.S. federal authorities regarding unlawful emissions of methane and other pollutants from oil and gas operations in North Dakota. As part of the agreement announced on Thursday, the Houston-based energy producer will pay a civil penalty of $64.5 million. According to the authorities, this is the highest penalty ever imposed for alleged violations of the Clean Air Act by stationary infrastructure. Moreover, Marathon is committed to investing $177 million to reduce future emissions in North Dakota, including in the Fort Berthold Indian Reservation. The Environmental Protection Agency (EPA) had accused the company in recent years of violations of permit requirements and other regulations in that area. This settlement is part of a broader EPA initiative to comprehensively reduce greenhouse gas emissions from oil and gas facilities. Methane, the main component of natural gas, can store significantly more heat in the atmosphere in a short period compared to carbon dioxide. Therefore, regulatory authorities are particularly focused on the reduction of methane emissions, which can occur due to leaks from pipes, gas terminals, stoves, and other equipment. "The EPA is determined to do everything within its power to mitigate climate change and ensure a sustainable future," said David M. Uhlmann, a deputy administrator of the agency, in a statement.