Ovintiv USA to Pay $5.5M Penalty and Upgrade Oil and Gas Facilities in Utah to Resolve Clean Air Act Violations

Ovintiv USA to Pay $5.5M Penalty and Upgrade Oil and Gas Facilities in Utah to Resolve Clean Air Act Violations

Compliance measures address violations at 22 facilities in Utah including on Uintah and Ouray Reservation state lands within Uinta Basin

September 30, 2024

WASHINGTON - Today, Sept. 30, the U.S. Environmental Protection Agency and the Department of Justice announced a more than $16 million settlement with Ovintiv USA Inc. resolving Clean Air Act violations at the company's oil and gas production facilities on the Uintah and Ouray Reservation in Utah and Utah state lands. The settlement requires Ovintiv to pay the United States and the state of Utah a civil penalty of $5.5 million. It also requires Ovintiv to implement extensive compliance measures to achieve major reductions in pollutants emitted from 139 of its facilities across the state.

The settlement resolves a civil suit, filed jointly by the United States and the state of Utah, alleging that Ovintiv failed to comply with federal and state requirements to capture and control air emissions and comply with inspection, monitoring, and recordkeeping requirements from 22 of its oil and gas production facilities in the Uinta Basin. These violations resulted in illegal emissions of volatile organic compounds (VOCs), which contribute to asthma and increase susceptibility to respiratory illnesses. Additionally, greenhouse gases, including methane, were released in large quantities, contributing to climate change.

Along with the civil penalty, the settlement requires Ovintiv to take corrective action and mitigation projects estimated to cost over $10 million at 139 of its facilities that will eliminate over 2,000 tons of VOC emissions annually. It will also eliminate methane emissions equivalent to a reduction of over 50,000 tons of carbon dioxide emissions annually, a reduction similar to taking nearly 13,000 gas powered cars off the road each year.

"As climate change accelerates and wreaks havoc in communities across the nation, EPA is doing everything possible to limit the methane emissions that are among the most powerful drivers of climate change," said Assistant Administrator David M. Uhlmann of EPA's Office of Enforcement and Compliance Assurance. "Today's settlement with Ovintiv will significantly reduce emissions across 139 facilities on Tribal and state lands and provides another example of how EPA is delivering on its climate enforcement strategy and holding companies accountable for climate pollution."

"This case is a win for the environment and for consumers," said Todd Kim, Assistant Attorney General of the Justice Department's Environment and Natural Resources Division. "The work required under the consent decree will significantly reduce the amount of gas Ovintiv facilities vent into the atmosphere and return some of that gas to the sales pipeline where it can be sent to productive use."

The settlement requires Ovintiv to invest in extensive compliance measures for the proper design of Ovintiv's oil and gas facilities to capture all VOC emissions and send the emissions to an appropriate control device. Compliance measures also include periodic infrared camera inspections, enhanced maintenance requirements, and installation of storage tank pressure monitors at many facilities.

The settlement is part of EPA's National Enforcement and Compliance Initiative, Mitigating Climate Change. This initiative focuses, in part, on reducing methane emissions from oil and gas and landfill sources. Like all of EPA's national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and other potential environmental justice concerns.

The complaint and proposed consent decree were filed in the U.S. District Court for the District of Utah. The consent decree is subject to a 30-day comment period. A copy of the complaint and the proposed consent decree are available on the Justice Department's Propose Consent Decree webpage.

More information on the settlement agreement is available on the agency's Ovintiv USA Inc. 2024 Clean Air Act Stationary Source Case Summary.