Ovintiv USA Inc. 2024 Clean Air Act Stationary Source Case Summary

On September 30, 2024, the U.S. Environmental Protection Agency (EPA) and Department of Justice (DOJ) announced a settlement agreement with Ovintiv USA Inc. (Ovintiv) to address Clean Air Act violations at 22 of their facilities in Utah. The actions the company will take under the agreement will reduce approximately 2,047 tons per year of volatile organic compounds (VOCs) and methane emissions equivalent to more than 53,180 tons per year of carbon dioxide at oil and gas production facilities on Utah state land and the Uintah and Ouray Reservation within the Uinta Basin. The settlement requires Ovintiv to pay a $5.5 million civil penalty, split evenly between the U.S. and state of Utah. Additionally, Ovintiv is required to invest in extensive compliance and mitigation measures estimated to cost an additional $10.7 million.

The settlement is part of the EPA’s National Enforcement and Compliance Initiative to mitigate climate change and part of the EPA’s larger effort to hold oil and gas companies accountable for widespread violations at oil and gas facilities throughout the country. Like all of the EPA’s national enforcement initiatives, this initiative prioritizes communities already overburdened by pollution and with other potential environmental justice concerns.

• Overview of Ovintiv USA Inc.
• Summary of the Violations
• Summary of Environmental Impacts
• Environmental Benefits
• Summary of Consent Decree
• Comment Period
• Contact Information

Overview of Ovintiv USA Inc.

Ovintiv USA Inc. is a subsidiary of Ovintiv Inc. and is headquartered in Denver, Colorado. Of relevance to this settlement, Ovintiv’s assets include 139 well pads located in Utah that extract oil and natural gas from wells and further separate liquids from gas in tank systems to refine product for sale.

Summary of the Violations 

The United States alleges in its complaint that Ovintiv violated the Clean Air Act and its implementing regulations at 22 oil and natural gas production facilities on Utah state land and on the Uintah and Ouray Reservation.

At the facilities, Ovintiv failed to comply with multiple volatile organic compound emission control requirements under several New Source Performance Standards (NSPS), Utah state implementation plan, and Utah state oil and gas regulations applicable to storage vessels located at oil and natural gas production facilities.

Summary of Environmental Impacts

VOCs are a key component in the formation of 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.

Methane, a climate super pollutant, is a hydrocarbon that is a primary component of natural gas and a potent greenhouse gas, approximately 25-28 times more powerful than carbon dioxide. It is the second most abundant greenhouse gas after carbon dioxide, accounting for about 16% of global emissions. Achieving significant reductions of methane would have a rapid and significant effect on atmospheric warming potential.

Environmental Benefits

When fully implemented, the EPA estimates that the new controls and requirements as well as the mitigation projects will reduce VOC and hazardous air pollutants emissions by 2,047 tons per year of VOCs and methane emissions equivalent to more than 53,180 tons per year of carbon dioxide, which equates to taking 13,000 gas powered cars off the road each year.

Summary of Consent Decree

Under the proposed consent decree, Ovintiv agreed to invest nearly $9 million to address its noncompliance for all well pads and agreed to:

1. Conduct an engineering evaluation to ensure each facility is designed to route all emissions to a control device and many facilities will have automated shut-in to prevent emissions from releasing to atmosphere;
2. Conduct more frequent infrared camera inspections and audio, visual, and olfactory (AVO) inspections;
3. Perform enhanced preventative maintenance; and
4. Install tank pressure monitors.

Also, Ovintiv agreed to mitigate past excess emissions by replacing 899 venting pneumatic devices with zero-emission devices at 27 facilities located in the Uinta Basin.

Comment Period

The proposed consent decree lodged in the U.S. District Court for the District of Utah is subject to a 30-day public comment period and final court approval. Information on submitting comments is available on the DOJ's Proposed Consent webpage.  

Contact Information

For additional information on this settlement, please contact: 

Lauren Hammond
Senior Assistant Regional Counsel
U.S. Environmental Protection Agency
Region 8
Denver, Colorado
[email protected]