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Marathon (MRO) to Pay $241M for Environmental Violations
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Marathon Oil Corporation (MRO - Free Report) has reached a settlement with the Environmental Protection Agency ("EPA") and the Department of Justice ("DOJ"). The $241.5 million agreement addresses alleged air quality violations at MRO's oil and gas operations on North Dakota's Fort Berthold Indian Reservation.
Background of the Settlement
Largest Civil Penalty for Clean Air Act Violations: The settlement includes a civil penalty of $64.5 million, marking the largest ever for violations of the Clean Air Act at stationary sources. These sources include facilities such as oil and gas tank systems, where the alleged violations occurred.
Implementation of Extensive Compliance Measures: MRO has also committed to implementing comprehensive compliance measures, estimated to cost $177 million. These measures aim to achieve significant reductions in harmful emissions from more than 200 facilities across North Dakota.
Impact on Air Quality and Public Health: MRO is required to implement measures to eliminate more than 2.25 million tons of carbon dioxide emissions within five years. This reduction is comparable to taking nearly half a million cars off the road for a year. Additionally, the company must eliminate nearly 110,000 tons of volatile organic compounds, which are known to contribute to respiratory illnesses.
Statements From Key Officials
“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 B. Garland.
"This settlement is a major win for the health and future of our Tribal communities," stated KC Becker, the regional administrator of EPA. The agreement mandates comprehensive measures by Marathon to achieve compliance and reduce emissions across its production facilities. These efforts are expected to improve air quality and public health on the Fort Berthold Reservation and its surrounding areas.
Detailed Compliance Measures
Installation of Emission Control Technologies: Marathon will be required to install state-of-the-art emission control technologies across its facilities. These technologies are designed to capture and reduce harmful emissions, thereby improving air quality.
Monitoring and Reporting Requirements: The settlement includes stringent monitoring and reporting requirements to ensure compliance with the Clean Air Act.
Community Involvement and Transparency: To enhance transparency, Marathon will engage with the Fort Berthold Indian Reservation community and other stakeholders. The company will provide regular updates on its compliance efforts and pollution reduction achievements.
Long-term Benefits for North Dakota Communities
Health Improvements: The reduction in emissions is expected to lead to significant health improvements for residents of the Fort Berthold Indian Reservation and its surrounding communities. Decreased levels of volatile organic compounds and other pollutants should result in fewer respiratory illnesses and other health issues.
Environmental Benefits: The implementation of advanced emission control technologies will not only benefit human health but also the environment. Cleaner air will contribute to the overall well-being of North Dakota's natural ecosystems.
Economic Implications: While the settlement requires substantial financial investment from Marathon, it also presents economic opportunities. The implementation of new technologies and compliance measures may create jobs and stimulate local economies.
Conclusion
Marathon's $241.5 million settlement with the EPA and DOJ is a landmark agreement that addresses serious air quality violations. The comprehensive compliance measures and significant reductions in harmful emissions will have a profound impact on the health and environment of North Dakota's communities. This historic settlement sets a precedent for accountability and environmental responsibility in the oil and gas industry.
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Marathon (MRO) to Pay $241M for Environmental Violations
Marathon Oil Corporation (MRO - Free Report) has reached a settlement with the Environmental Protection Agency ("EPA") and the Department of Justice ("DOJ"). The $241.5 million agreement addresses alleged air quality violations at MRO's oil and gas operations on North Dakota's Fort Berthold Indian Reservation.
Background of the Settlement
Largest Civil Penalty for Clean Air Act Violations: The settlement includes a civil penalty of $64.5 million, marking the largest ever for violations of the Clean Air Act at stationary sources. These sources include facilities such as oil and gas tank systems, where the alleged violations occurred.
Implementation of Extensive Compliance Measures: MRO has also committed to implementing comprehensive compliance measures, estimated to cost $177 million. These measures aim to achieve significant reductions in harmful emissions from more than 200 facilities across North Dakota.
Impact on Air Quality and Public Health: MRO is required to implement measures to eliminate more than 2.25 million tons of carbon dioxide emissions within five years. This reduction is comparable to taking nearly half a million cars off the road for a year. Additionally, the company must eliminate nearly 110,000 tons of volatile organic compounds, which are known to contribute to respiratory illnesses.
Statements From Key Officials
“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 B. Garland.
"This settlement is a major win for the health and future of our Tribal communities," stated KC Becker, the regional administrator of EPA. The agreement mandates comprehensive measures by Marathon to achieve compliance and reduce emissions across its production facilities. These efforts are expected to improve air quality and public health on the Fort Berthold Reservation and its surrounding areas.
Detailed Compliance Measures
Installation of Emission Control Technologies: Marathon will be required to install state-of-the-art emission control technologies across its facilities. These technologies are designed to capture and reduce harmful emissions, thereby improving air quality.
Monitoring and Reporting Requirements: The settlement includes stringent monitoring and reporting requirements to ensure compliance with the Clean Air Act.
Community Involvement and Transparency: To enhance transparency, Marathon will engage with the Fort Berthold Indian Reservation community and other stakeholders. The company will provide regular updates on its compliance efforts and pollution reduction achievements.
Long-term Benefits for North Dakota Communities
Health Improvements: The reduction in emissions is expected to lead to significant health improvements for residents of the Fort Berthold Indian Reservation and its surrounding communities. Decreased levels of volatile organic compounds and other pollutants should result in fewer respiratory illnesses and other health issues.
Environmental Benefits: The implementation of advanced emission control technologies will not only benefit human health but also the environment. Cleaner air will contribute to the overall well-being of North Dakota's natural ecosystems.
Economic Implications: While the settlement requires substantial financial investment from Marathon, it also presents economic opportunities. The implementation of new technologies and compliance measures may create jobs and stimulate local economies.
Conclusion
Marathon's $241.5 million settlement with the EPA and DOJ is a landmark agreement that addresses serious air quality violations. The comprehensive compliance measures and significant reductions in harmful emissions will have a profound impact on the health and environment of North Dakota's communities. This historic settlement sets a precedent for accountability and environmental responsibility in the oil and gas industry.
Zacks Rank and Key Picks
Currently, MRO has a Zacks Rank #3 (Hold).
Investors interested in the energy sector might look at some better-ranked stocks like Sunoco LP (SUN - Free Report) , SM Energy Company (SM - Free Report) , both sporting a Zacks Rank #1 (Strong Buy) at present, and Coterra Energy Inc. (CTRA - Free Report) , carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Sunoco is valued at $5.76 billion. It is a major wholesale motor fuel distributor in the United States, distributing over 10 fuel brands through long-term contracts with more than 10,000 convenience stores, ensuring consistent cash flow.
SUN’s extensive distribution network across 40 states provides a robust and reliable source of income and the Brownsville terminal expansion should add to its revenue diversification.
Denver, CO-based SM Energy is valued at $5.17 billion. The company currently pays a dividend of 72 cents per share, or 1.6%, on an annual basis.
SM, an independent energy company, engages in the acquisition, exploration, development and production of oil, gas and natural gas liquids in the state of Texas.
Coterra Energy is valued at $20.17 billion. The company currently pays a dividend of 84 cents per share, or 3.1%, on an annual basis.
CTRA is an independent upstream operator engaged in the exploration, development and production of natural gas, crude oil and natural gas liquids.