HOUSTON (dpa-AFX) - Marathon Oil Co., which is in deal to be bought by
ConocoPhillips in $22.5 billion all-stock deal, has agreed to a settlement with
the U.S. Government regulators and to pay $241.5 million in penalties over
climate- and health-harming emissions in North Dakota.

The settlement with the U.S. Environmental Protection Agency or EPA and
Department of Justice includes largest ever civil penalty for violations of the
Clean Air Act at stationary sources. The deal will result in reduction of over
2.3 million tons worth of pollution.

In a statement, the EPA and DoJ said the settlement resolves Clean Air Act
violations at the company's oil and gas production operations on the Fort
Berthold Indian Reservation in North Dakota. As per the deal, Marathon is
required to pay a civil penalty of $64.5 million for the violations of the Clean
Air Act at stationary sources, which include facilities such as oil and gas tank
systems.

Marathon has also agreed to implement extensive compliance measures, estimated
to cost $177 million, to achieve major reductions in harmful emissions from over
200 facilities across the state. Much of the estimated cost is expected to be
implemented by the end of 2024.

The consent decree, which was filed with the United States District Court,
District of North Dakota, Western Division, is subject to a 30-day comment
period.

The complaint, which is deemed to be the first of its kind against an oil and
gas producer for such emissions violations, alleges that nearly 90 Marathon
facilities caused thousands of tons of illegal pollution, including volatile
organic compounds or VOCs and carbon monoxide, which contribute to asthma and
increase susceptibility to respiratory illnesses.

Additionally, greenhouse gases, including methane, were released in large
quantities, contributing to climate change.

Marathon, the nation's 22nd largest producer of oil based on 2022 data, holds
the 7th position as the largest emitter of greenhouse gas emissions in the oil
and gas industry. A large portion of these emissions come from flaring, an
industry practice that releases methane, a climate super-pollutant.

As per the complaint, Marathon failed to obtain required preconstruction permits
under the PSD program and operating permits under the Title V program.

With the settlement agreement, Marathon now needs to obtain permits with
federally enforceable emissions limits at production facilities on the Fort
Berthold Indian Reservation and future operations in the state of North Dakota.

Compliance measures also include flare monitoring, periodic infrared camera
inspections and implementation of storage tank design requirements.

According to the agencies, these actions would significantly reduce harmful
health-related emissions from 169 existing facilities on state land and on the
Fort Berthold Indian Reservation, as well as at new facilities built in North
Dakota.

Marathon's new measures would result in the equivalent of over 2.25 million tons
of reduced carbon dioxide emissions over the next five years. The settlement
would also eliminate nearly 110,000 tons of VOC emissions.

Assistant Administrator David Uhlmann of EPA's Office of Enforcement and
Compliance Assurance, said, 'Today's record Clean Air Act settlement is the most
significant to date under EPA's climate enforcement initiative and makes clear
that EPA will hold corporate polluters like Marathon accountable for violations
that put communities and our futures at risk.... As a result of today's
settlement, Marathon will dramatically cut its emissions of methane, a climate
super-pollutant that is dozens of times more potent in the near term than carbon
dioxide.'



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