As part of the settlement, Ovintiv is required to pay a civil penalty of $5.5 million to both the United States and the state of Utah. More importantly, the company must undertake comprehensive compliance measures aimed at drastically reducing pollutants emitted from 139 of its facilities throughout the state.
In a significant move towards environmental accountability, the Justice Department and the Environmental Protection Agency (EPA) have announced a settlement exceeding $16 million with Ovintiv USA Inc. This agreement addresses Clean Air Act violations tied to the company’s oil and gas production operations located on the Uintah and Ouray Reservation in Utah, as well as on state lands.
Ovintiv is a prominent North American company specializing in the exploration and production of oil and natural gas. With a strategic focus on developing oil, natural gas liquids (NGLs), and gas reserves, Ovintiv operates through three main segments: USA Operations, Canadian Operations, and Market Optimization.
A key aspect of Ovintiv’s operations involves its substantial assets in Utah, where it manages 139 well pads dedicated to extracting oil and natural gas. These facilities not only extract resources but also separate liquids from gas using advanced tank systems, preparing products for the market.
As part of the settlement, Ovintiv is required to pay a civil penalty of $5.5 million to both the United States and the state of Utah. More importantly, the company must undertake comprehensive compliance measures aimed at drastically reducing pollutants emitted from 139 of its facilities throughout the state.
This case is a win for the environment and for consumers,” said Assistant Attorney General Todd Kim 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 legal action originated from a civil suit filed jointly by the federal government and Utah, accusing Ovintiv of neglecting crucial federal and state regulations designed to control air emissions. The company was found to have failed in capturing and managing emissions from 22 of its production facilities in the Uintah Basin, resulting in illegal discharges of volatile organic compounds (VOCs). These pollutants are known to exacerbate asthma and heighten the risk of respiratory illnesses. Furthermore, significant quantities of methane—one of the most potent greenhouse gases—were also released, contributing to climate change.
In addition to the civil penalty, Ovintiv is mandated to implement corrective actions and mitigation projects estimated to exceed $10 million. These initiatives are expected to eliminate over 2,000 tons of VOC emissions each year, alongside a reduction of methane emissions equivalent to removing nearly 13,000 gasoline-powered cars from the road annually.
The settlement compels Ovintiv to invest in rigorous compliance measures, which include redesigning facilities to effectively capture all VOC emissions and directing them to appropriate control devices. Enhanced maintenance protocols, periodic infrared inspections, and the installation of pressure monitors for storage tanks are also required under the agreement.
This settlement is part of the EPA's National Enforcement and Compliance Initiative, which aims to mitigate climate change, particularly by addressing methane emissions from oil and gas operations. The initiative prioritizes communities already affected by pollution, reflecting a commitment to environmental justice.
As the environmental landscape continues to evolve, this settlement stands as a reminder of the importance of corporate responsibility in protecting air quality and combating climate change.
“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.”
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