EPA fines oil company $5.5 million, must upgrade facilities in Utah

SALT LAKE CITY — Ovintiv, a Denver-based oil drilling company, was fined $5.5 million on Monday for violations of the Clean Air Act.

The fine is part of a $16 million settlement announced by the Department of Justice, requiring Ovintiv to “implement extensive compliance measures” at 139 of the companies’ facilities across Utah.

According to the DOJ announcement, a jointly filed civil suit alleged that Ovintiv failed to comply with requirements around controlling emissions and compliance with inspection and monitoring requirements involving 22 of the companies’ facilities in the Uintah Basin.

The announcement states that emissions related to these violations contribute to asthma, respiratory illnesses and greenhouse gases.

Ovintiv has also been required to take corrective action and begin mitigation projects, resulting in 2,000 tons of volatile organic compounds being eliminated annually and methane emissions reductions, similar to taking over 10,000 gas-powered cars off the road every year, according to the announcement.

Ovintiv’s new compliance measures include infrared camera inspections, new maintenance requirements, and storage tank pressure monitors.

According to a press release on the Ovintiv website, the company generated a net earnings statement of $340 million in the second quarter of 2024.

“The work required under the consent decree will significantly reduce the amount of gas Ovintiv facilities vent into the atmosphere,” Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division said.