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Denver’s Dirty Secret: Noble Energy, Inc. to Pay $60 Million for Clean Air Act Violations
Noble Energy, Inc. has agreed to make system upgrades and fund environmental projects to address alleged Clean Air Act violations stemming from the company’s oil and gas exploration and production activities in the Denver-Julesburg Basin, north of Denver, Colorado.
The settlement resolves claims that Noble failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in emissions of volatile organic compounds (VOCs). VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis.
As part of the settlement, Noble will spend an estimated $60 million on system upgrades, monitoring and inspections to reduce emissions, in addition to $4.5 million to fund environmental mitigation projects, $4 million on supplemental environmental projects and a $4.95 million civil penalty.
The case arose from a joint Environmental Protection Agency (EPA) and Colorado investigation that found significant VOC emissions coming from storage tanks, primarily due to undersized vapor control systems. Noble has agreed to evaluate vapor control system designs, significantly reduce VOC emissions, and provide reports to the public. These reports will give other companies the opportunity to learn and apply this information to emissions estimates and vapor control system designs.
Noble will use an infrared camera to inspect its vapor control systems, both initially to confirm capture and control of VOCs and periodically to verify proper upkeep and operation. These activities will be audited by a third-party and Noble will develop and post reports summarizing its engineering evaluations and modifications online. Additionally, Noble will install monitors at certain storage tanks to detect tank pressure increases that may indicate possible emission releases.
EPA estimates that modifications to the vapor control systems will reduce VOC emissions by at least 2,400 tons per year and that significant additional reductions will be achieved with operational and maintenance improvements. Assistant Attorney General John C. Cruden for the Environment and Natural Resources Division stated, ‘This first-of-its-kind settlement takes a basin-wide, systematic approach to address oil and gas emissions.’ Cynthia Giles, assistant administrator for enforcement and compliance assurance at EPA, added, ‘Today’s settlement shows what can happen when federal and state governments work together to find innovative solutions to today’s complex pollution challenges.’
Key Facts
- State: Colorado
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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