The Department of Justice and the U.S. Environmental Protection Agency on April 20 announced three separate Clean Air Act settlements with natural gas processors WES DJ Gathering LLC (formerly known as Kerr McGee Gathering, LLC), MPLX LP and The Williams Companies, Inc.
According to the announcement, the settlement will require the companies to pay a combined $9.25 million in civil penalties and make improvements at 25 gas processing plants and 91 compressor stations across 12 states and two tribal communities. The Southern Ute Indian Tribe, Alabama, Colorado, Louisiana, North Dakota, West Virginia and Wyoming are also settling claims in these cases, the agencies said.
“Today’s settlements will significantly reduce harmful emissions of ozone forming pollution, and greenhouse gases in Colorado, North Dakota, Wyoming, the Southern Ute Reservation and the Uintah and Ouray Reservation,” said EPA Region 8 Administrator KC Becker in a press release. “EPA will continue to hold companies accountable as we deliver cleaner air for communities across our region.”
Northern Colorado: Settlement with WES DJ Gathering LLC for the Fort Lupton Complex
The settlement with WES DJ Gathering LLC resolves alleged violations of federal and state clean air requirements related to leak detection and repair, or LDAR, regulations. According to the announcement, WDJG will take corrective action at three contiguous gas processing plants known as the Fort Lupton Complex which is roughly 35 miles north of Denver.
The company will also pay a $3.5 million civil penalty the U.S. and the State of Colorado will split evenly. According to EPA, the area where the Fort Lupton Complex is doesn’t meet EPA’s 8-hour National Ambient Air Quality Standard for ground-level ozone and is designated as “severe” nonattainment.
WDJG will implement an aggressive plan to replace older equipment with low-emission valves and connectors, repair leaking equipment and implement an LDAR quality assurance/quality control program, EPA noted. WDJG has also agreed to use optical gas imaging technology to improve visual detection and resolution of leaks.
According to the announcement, WDJG will also complete projects to mitigate harm caused by past emissions from the Fort Lupton Complex, including converting two existing glycol dehydrators at the nearby Frederick Compressor Station to zero-emitting dehydrators. The company will also take two pre-1981 engines at the compressor station out of service.
When fully implemented, the agencies said the settlement will reduce ozone-producing air pollution in northern Colorado by an estimated 162 tons per year and greenhouse gases by 17,433 tons per year of carbon dioxide equivalent, including methane.
The Southern Ute Indian Reservation, Colorado and Wyoming: Settlement with The Williams Companies, Inc.
EPA announced the settlement with Williams and Harvest Four Corners addresses alleged violations of requirements to control volatile organic compound, or VOC, emissions from natural gas processing plants. The settlement requires Williams to pay a $3.75 million civil penalty, strengthen its LDAR practices at 15 natural gas processing plants and perform leak monitoring and repair at 80 natural gas compressor stations across the U.S. The settlement covers natural gas processing plants near Parachute, Rifle and Ignacio, Colorado; Wamsutter and Opal, Wyoming; and ten compressor stations in Wyoming.
According to the announcement, the settlement requires Harvest Four Corners to implement a flare monitoring project at the Ignacio Gas Plant on the Southern Ute Indian Reservation under which it will evaluate its flare equipment and, if necessary, install new monitoring equipment to ensure optimal flare performance and control efficiency.
When fully implemented, EPA said the settlement will reduce ozone-producing air pollution by an estimated 419 tons per year and greenhouse gases by 3,675 tons per year of carbon dioxide equivalent across facilities in Colorado, Wyoming and the Southern Ute Indian Reservation.
The settlement includes paying $2,227,500 in civil penalties to the U.S.; $307,500 to the Southern Ute Indian Tribe; $298,875 to the State of Colorado; and $142,500 to the State of Wyoming.
EPA, the DOJ, the State of North Dakota and the State of Wyoming also announced a third settlement today with MPLX LP addressing noncompliance and strengthening air pollution controls at seven natural gas processing plants and three compressor stations in North Dakota, Wyoming and the Uintah and Ouray Reservation in Utah.
EPA said all three settlements will significantly reduce emissions of nitrogen oxides, VOCs and greenhouse gases. Emissions at the affected facilities also emit greenhouse gases, including methane, according to the agency.
For each settlement, the U.S. will publish a notice of the consent decree’s lodging in U.S. District Court in the Federal Register and will accept public comment for 30 days, according to the announcement.
The consent decrees lodged April 20 are United States, et al. v. The Williams Companies, Inc., et al.; United States, et al. v. MPLX LP; and United States, et al. v. WES DJ Gathering LLC fka Kerr-McGee Gathering LLC.