MarkWest agrees to more than $600K fine in settlement with government agencies
Natural gas processor MarkWest Energy has agreed to pay a fine of $610,000 to settle claims over alleged violations of clean-air law permitting requirements at facilities throughout the region, including in Washington County.
The U.S. Department of Justice and Environmental Protection Agency and the state Department of Environmental Protection announced the settlement with MarkWest and Ohio Gathering – the company’s operation in that state – on Tuesday.
Under the terms of the agreement, MarkWest also agreed to implement new emissions controls at its facilities throughout eastern Ohio and Western Pennsylvania, and set up additional ambient-air monitoring measures at each of two compressor stations in Smith Township and in Ohio.
The agencies accused MarkWest of failing to meet permitting requirements for compressor stations and stand-alone “pigging” facilities – which are used to push devices called “pigs” through sections of pipeline to clear out debris and push through condensate liquids. “MarkWest is alleged to have failed to apply for, and comply with, the required permits and/or recordkeeping requirements under the Clean Air Act and the Pennsylvania Air Pollution Control Act for venting activities that released (volatile organic compound) emissions,” the agencies said in a statement.
Federal authorities armed with a search warrant conducted a raid in July 2015 at a pig launcher and receiver in Washington County, MarkWest told shareholders in subsequent filings to the U.S. Securities and Exchange Commission. Federal investigators proceeded to investigate various operations of the company, but the U.S. Attorney’s Office for the District of Western Pennsylvania had declined in September 2016 to pursue criminal charges, according to one such filing.
In addition to the fine, the agencies said Tuesday they expect MarkWest to spend some $2.6 million on additional measures at its facilities to minimize volatile organic compounds, which can cause health problems ranging from ear, nose and throat irritation to kidney damage and contribute to the formation of ground-level ozone.
The consent decree will be subject to a 30-day comment period and can be viewed at the Department of Justice’s website before it goes before a federal judge for final approval.
Marathon Petroleum Corp. – whose spinoff MPLX bought MarkWest in late 2015 – declined comment.
“We don’t have anything to add to the information that was in the release from the DOJ,” said Marathon spokesman Jamal Kheiry in an email.
The company also agreed to install ambient-air monitoring stations upwind and downwind from the Harmon Creek compressor station in Smith and a similar facility in Belmont County, Ohio.
Further, the agencies said MarkWest agreed to a requirement for the “dissemination and demonstration of a proprietary MarkWest technology for reducing VOC emissions” and a “community environmental project for emissions monitoring equipment” in an agreement between the company and Pennsylvania.
“Research, monitoring data, and compliance information help DEP refine and improve the effectiveness of our oversight, craft stronger regulations, and focus on minimizing air contaminants,” said DEP Secretary Patrick McDonnell. “The new methodology to measure emissions from pigging developed through this case will help us work with all operators in Pennsylvania to reduce emissions.”