The settlement between ExxonMobil and the Justice Department, the Environmental Protection Agency (EPA) and the state of Louisiana alleges the company violated the Clean Air Act when it failed to properly operate and monitor industrial flares at some of its petrochemical facilities.
In addition to the penalty, ExxonMobil agreed to invest nearly $300 million to install new air pollution monitoring technology. The company denied any wrongdoing in settling the case, and its spokesman Aaron Stryk said ExxonMobil worked closely with the government to resolve the matter.
The PDC settlement with the federal government and the state of Colorado also relates to Clean Air Act violations stemming from emissions of volatile organic compounds from its oil and gas E&P businesses.
Bart Brookman, PDC's president and CEO, said in an Oct. 31 statement: "This agreement is the result of months of cooperative conversations with state and EPA regulators and builds upon our years of proactive work, which includes internal assessment and an ongoing remediation program. We have put a plan in place that will continue to reduce PDC's air emissions in Colorado's D-J [Denver-Julesburg] Basin and reflects our strong commitment to protecting Colorado's environment."
PDC also agreed to spend about $18 million on systems upgrades and another $1.7 million to mitigate the problems.
Pursuant to the agreement, PDC will implement changes to its design, operation and maintenance of certain storage tank systems to enhance its emission management in the D-J Basin. Agreed upon and planned efforts include, but are not limited to, vapor control system modifications and verification, increased inspection and monitoring and installation of tank pressure monitors.
PDC voluntarily included into this agreement about 40 additional facilities associated with its pending acquisition of additional assets in the D-J Basin, according to the company press release.
Certain expenditures for the $18 million investment were incurred in 2016 and 2017, with the remainder expected to be incurred through 2022, the company said.
PDC's mitigation projects will include adding emission control systems for certain stationary engines and adding control systems for the transfer of oil into tank trucks.
A spokesman for PDC, which denied any liability in its settlement, could not be immediately reached.
