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Marathon Oil reaches a $241 million settlement with EPA for environmental violations

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Marathon Oil reaches a 1 million settlement with EPA for environmental violations

Pump jacks extract oil from beneath the ground in North Dakota on May 19, 2021. The federal government announced a $241.5 million settlement with Marathon Oil on Thursday for alleged air quality violations at the company’s oil and gas operations in the Forth Berthold Indian Reservation in North Dakota.

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Matt Brown/AP

The federal government announced a $241.5 million settlement with Marathon Oil on Thursday for alleged air quality violations at the company’s oil and gas operations on the Fort Berthold Indian Reservation in North Dakota.

The Environmental Protection Agency and Department of Justice said the settlement requires Marathon to reduce climate- and health-harming emissions from those facilities and will result in over 2.3 millions tons worth of pollution reduction.

“This historic settlement — the largest ever civil penalty for violations of the Clean Air Act at stationary sources — will ensure cleaner air for the Fort Berthold Indian Reservation and other communities in North Dakota, while holding Marathon accountable for its illegal pollution,” said Attorney General Merrick Garland.

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Marathon officials did not immediately respond to a request for comment. Houston-based Marathon operates 169 well pads in North Dakota, where the company extracts oil and natural gas. A proposed consent decree for implementing the settlement says the company does not admit any liability over the allegations, but that the two sides agree it will avoid litigation and serve the public interest.

A spokesperson for the Mandan, Hidatsa and Arikara Nation based at the Fort Berthold Reservation did not immediately respond to a request for comment either.

While Marathon is the country’s 22nd-largest oil producer based on 2022 data, the federal agencies said, it’s also the seventh-largest emitter of greenhouse gas emissions in the oil and gas industry. Much of its emissions come from flaring, the industry practice of burning waste gases, including methane, which the EPA says is 25 times more potent of a contributor to climate change than carbon dioxide. While flaring burns off methane and other pollutants, it’s not completely efficient, so significant quantities still get released into the atmosphere, which the agencies said can have health impacts on nearby communities.

The settlement is part of an EPA climate change enforcement initiative that focuses in part on reducing methane emissions from oil and gas production and from landfills.

It calls for Marathon to eliminate the equivalent of over 2.25 million tons of carbon-dioxide emissions over the next five years, which the agencies said was tantamount to taking 487,000 cars off the road for one year, and will also eliminate nearly 110,000 tons of volatile organic compound emissions, which contribute to asthma and other respiratory diseases.

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“This settlement is a major win for the health and future of our Tribal communities, including people and families who are often overburdened by pollution,” said KC Becker, the EPA’s regional administrator. “As a result of the agreement, Marathon has and will continue to take comprehensive measures to come into compliance and reduce harmful emissions across hundreds of production sources. These investments will improve air quality and reduce respiratory illnesses across the Fort Berthold Indian Reservation and western North Dakota.”

The agencies said the case is the first of its kind against an oil and gas producer for “violations of major source emissions permitting requirements under the Clean Air Act’s Prevention of Significant Deterioration program.” They also said the $64.5 million civil penalty Marathon must pay is the largest-ever penalty imposed for “stationary source violations,” which include facilities such as oil and gas tank systems.

The Justice Department said it’s the largest of 12 similar efforts by the Biden administration to target emissions from the oil and gas industry, with a penalty that’s more than double the 11 previous settlements combined.

Marathon also agreed to invest $177 million in extensive compliance measures, much of of it by the end of the year, that the agencies said will “significantly reduce” harmful emissions from 169 existing facilities on state land and on the reservation, as well as at new facilities built in North Dakota.

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The settlement is part of a complaint and proposed consent decree officially filed Thursday in federal court in North Dakota. The complaint alleges that Clean Air Act violations at nearly 90 Marathon facilities resulted in thousands of tons of illegal pollution. And it alleges that Marathon submitted artificially low estimates of its emissions to avoid permitting requirements.

The consent decree is subject to a 30-day public comment period.

In May, ConocoPhillips said it was buying Marathon Oil in an all-stock deal valued at about $17.1 billion. The deal, worth $22.5 billion when including $5.4 billion in debt, comes as energy prices have surged and big oil companies have reaped huge profits. The acquisition was expected to close by the end of the year.

In its latest financial report, Marathon said it earned $297 million in the three-month period that ended March 31, posting revenue of $1.55 billion.

Thursday’s settlement did not appear to rattle investors. Marathon’s stock closed up 1.6% Thursday. It has risen about 18% so far this year.

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It Could Take Weeks Before Displaced L.A. Residents Can Go Home

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It Could Take Weeks Before Displaced L.A. Residents Can Go Home

The tens of thousands of people displaced by the devastating wildfires in the Los Angeles area are increasingly anxious to know when they can return home — or to what remains of their properties.

Officials say crews are working to reopen closed areas, snuffing out hot spots and clearing hazardous debris, but no timeline has been announced for lifting the evacuation orders.

Experts have warned that it could take weeks before people can return to the hardest-hit neighborhoods because of the amount of work needed to ensure the safety of residents.

Firefighters are still trying to contain the Palisades and Eaton fires, the biggest ones in the Los Angeles region, a prerequisite to allowing people to return. Both remained largely out of control on Wednesday evening, though their growth had slowed.

Captain Erik Scott of the Los Angeles Fire Department said the timeline for people returning to their neighborhoods can vary. It depends on the extent of the damage, which needs to be mapped and carefully assessed in every impacted community, he added. There is also the threat of hazardous materials, such as asbestos and chemicals.

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“We want people to have realistic expectations,” Mr. Scott said.

It took weeks in the aftermath of some previous destructive blazes for people to return. In 2018, the Camp fire destroyed most of Paradise in Northern California and killed 85 people. The final evacuation orders in that town were lifted more than a month after the fire started.

Similarly, after a devastating fire in Lahaina on the island of Maui killed more than 100 people in 2023, it was nearly two months before the first of the thousands of displaced residents could return to their properties.

The suppression of the fire is only one step in the process, according to fire officials. There are yet more safety and infrastructure issues to tackle. Workers need to clear and replace downed power lines, stabilize partially collapsed buildings and remove toxic ash from the ground.

“That’s why the orders are still in place,” said David Acuna, a battalion chief with Cal Fire. “It’s not just about the fire. There are all these other elements to address.”

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The grim search for human remains has further complicated efforts to clear neighborhoods. Officials are using cadaver dogs to comb through the thousands of structures damaged or destroyed in the fires to locate remains.

“We have people literally looking for the remains of your neighbors,” Sheriff Robert Luna of Los Angeles County said at a news conference on Monday. “Please be patient with us.”

Even for those whose homes survive, the lifting of evacuation orders does not necessarily mean they can return to live in them right away, warned Michael Wara, a climate policy expert at Stanford University.

“There’s going to be smoke damage,” he said. “There’s going to be the fact that you don’t have utilities.”

In Pacific Palisades, the recovery process was underway in its incinerated downtown. The air buzzed with the sound of jackhammers, bulldozers and tree shredders. Workers cleared debris, pulled down charred utility poles and ground up the skeletal limbs of burned eucalyptus trees.

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Ali Sharifi managed to inspect his lower Palisades home on Tuesday. Aside from a burned backyard fence, it was intact. Yet the destruction around it, including charred schools, churches and grocery stores, gave him second thoughts about returning.

“Who wants to live in a ghost town?” Mr. Sharifi said.

Erica Fischer, an associate professor at Oregon State University who studied the aftermath of the Camp fire, said that a fast recovery is not always a good one, especially if it means rebuilding in ways that contributed to the disaster.

Of the ongoing evacuation orders in California, she said, “I know it’s not convenient, and it’s disruptive, but it keeps people out of harm’s way.”

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Joe Biden says ‘oligarchy’ emerging in US in final White House address

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Joe Biden says ‘oligarchy’ emerging in US in final White House address

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US President Joe Biden has warned that an “oligarchy is taking shape in America” that risks damaging democracy, as he blasted an emerging “tech industrial complex” for delivering a dangerous concentration of wealth and power in the country.

Biden’s comments during a farewell address to Americans from the Oval Office on Wednesday night amount to a veiled attack on Donald Trump’s closest allies in corporate America, including tech billionaire Elon Musk, just five days before he transfers power to the Republican.

Biden said he wanted to warn the country of the “dangerous concentration of power in the hands of a very few ultra-wealthy people” and the danger that their “abuse of power is left unchecked”.

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He cited late president Dwight Eisenhower’s warning in his 1961 farewell address of a military-industrial complex and said the interaction between government and technology risked being similarly pernicious.

“I’m equally concerned about the potential rise of a tech-industrial complex that could pose real dangers for our country as well. Americans are being buried under an avalanche of misinformation and disinformation, enabling the abuse of power. The free press is crumbling. Editors are disappearing. Social media is giving up on fact checking,” Biden said.

Biden’s words were a reference to the world’s richest man, Musk, the owner of social media platform X and the founder of electric-vehicle maker Tesla, who gave massive financial backing to Trump’s campaign and has become one of his closest allies during the transition to Trump’s new administration.

Some of Silicon Valley’s top executives, from Jeff Bezos of Amazon to Mark Zuckerberg of Meta, have also embraced Trump since his electoral victory and are expected to have prime spots at the inauguration ceremony in Washington on Monday.

Biden also used his remarks to cast a positive light on his one-term presidency, which ended with the big political failure of him dropping his re-election bid belatedly in late July, passing the torch of the campaign against Trump to vice-president Kamala Harris — an effort that ended in a bitter defeat.

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Biden’s approval ratings have hit new lows as he bows out from the presidency and a political career in Washington that has spanned more than five decades. Just 36.7 per cent of Americans approve of his performance on the job, and 55.8 per cent disapprove, according to the FiveThirtyEight polling average.

Biden said he hoped his accomplishments would be judged more favourably in the future.

“It will take time to feel the full impact of all we’ve done together, but the seeds are planted, and they’ll grow and they’ll bloom for decades to come,” he said.

Biden has not only faced seething criticism from Republicans, but also rebukes from Democrats who blame him for seeking re-election despite his advanced age. He is now 82.

Biden’s presidency was defined by a record-breaking jobs market and a robust recovery from the Covid-19 pandemic, as well as a series of legislative accomplishments on the economy. But the pain of high inflation became a massive political vulnerability for him.

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In foreign affairs, he took credit for western support for Ukraine after Russia’s full-scale invasion of the country in 2022, but his response to conflict in the Middle East, including staunch support for Israel’s war in Gaza, drew a strong backlash from progressive Democrats, undermining the unity of his political coalition.

It was not until Wednesday, with five days to go before he left office, that Biden — with help from Trump aides — was able to broker a ceasefire deal to free hostages held by Hamas. 

“This plan was developed and negotiated by my team and will be largely implemented by the incoming administration. That’s why I told my team to keep the incoming administration fully informed, because that’s how it should be, working together as Americans,” he said at the start of his address.

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Biden touts major wins in farewell address

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Biden touts major wins in farewell address
Biden touts major wins in farewell address – CBS Texas

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In his farewell address, President Biden warned an “oligarch” of “ultrarich” threatens America’s future.

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