Markwest Energy Partners, a major player in natural gas gathering and processing, has reached a significant settlement with federal and state environmental agencies. This agreement, involving the Department of Justice, the U.S. Environmental Protection Agency (EPA), and the Pennsylvania Department of Environmental Protection, is set to drastically reduce volatile organic compound (VOC) emissions from MarkWest facilities in eastern Ohio and western Pennsylvania. The settlement addresses violations of the Clean Air Act and the Pennsylvania Air Pollution Control Act, focusing on permit and record-keeping failures related to maintenance activities that led to substantial VOC releases. As part of the resolution, MarkWest Energy Partners will implement comprehensive measures to cut VOC emissions by over 700 tons annually, undertake supplemental environmental projects, and pay a civil penalty of $610,000.
Understanding MarkWest Energy Partners and the Settlement Scope
MarkWest Energy Partners, officially MarkWest Liberty Midstream Resources, LLC and Ohio Gathering Company, LLC, is a prominent midstream service provider in the natural gas industry. While headquartered in Denver, Colorado, MarkWest operates as a subsidiary of MPLX LP, which is based in Findlay, Ohio. The company’s operations are crucial to the natural gas supply chain, encompassing gathering, transportation, processing, fractionation, marketing, and storage of natural gas and natural gas liquids. MarkWest Energy Partners has a significant footprint in key natural gas regions across the United States, including the Marcellus and Utica Shale formations, playing a vital role in connecting upstream production with downstream markets.
The legal action leading to this settlement arose from operations at MarkWest compressor stations and stand-alone pigging facilities located in western Pennsylvania and eastern Ohio. These facilities are essential for maintaining the flow and integrity of natural gas pipelines. The core issue revolves around “pigging operations,” routine maintenance procedures conducted to prevent the buildup of natural gas condensates within pipelines. These operations, while necessary, involve venting and depressurizing pipelines before maintenance devices, known as “pigs,” can be inserted or removed for cleaning and inspection.
Clean Air Act Violations Stemming from Pigging Operations
The complaint filed against MarkWest Energy Partners by the United States and the Pennsylvania Department of Environmental Protection (PADEP) detailed violations of both the Clean Air Act and the Pennsylvania Air Pollution Control Act. The crux of these violations lay in MarkWest’s failure to secure and adhere to required permits and record-keeping protocols for natural gas pigging and venting activities. Specifically, MarkWest did not comply with regulations under the Nonattainment New Source Review, Prevention of Significant Deterioration, and Title V programs, as well as the Pennsylvania and Ohio State Implementation Plans.
These regulatory oversights resulted in excess VOC emissions during routine pigging and venting processes. The permits and record-keeping requirements are designed to control and monitor emissions from such operations, ensuring that companies like MarkWest Energy Partners minimize their environmental impact. By failing to comply, MarkWest allowed significant quantities of VOCs to be released into the atmosphere, contributing to air pollution and potentially impacting public health.
Injunctive Relief: Implementing Emission Control Technologies
To rectify these violations and prevent future occurrences, the settlement mandates significant injunctive relief measures for MarkWest Energy Partners. These measures target 26 compressor stations and 19 large stand-alone sources within MarkWest’s natural gas gathering system in Ohio and Pennsylvania. A key element of the injunctive relief is the implementation of advanced emission control technologies and operational changes.
MarkWest has agreed to several critical actions, including: (1) connecting high-pressure pig launchers and receivers to low-pressure gathering lines via jumper lines; (2) utilizing these jumper lines to depressurize launchers and receivers before opening them; (3) installing pig ramps in pig receivers to further manage emissions; (4) employing flares to control VOC emissions when necessary to remain within permitted limits; and (5) obtaining updated state operating permits that are federally enforceable to ensure long-term compliance. Notably, MarkWest will also permanently cease operations at certain launchers and receivers at specific stations, demonstrating a commitment to substantial emission reductions. For smaller stand-alone sites (273 facilities), the agreement requires the installation of pig ramps in all pig receivers. The total value of this injunctive relief is estimated at $2.6 million, representing a significant investment in environmental protection by MarkWest Energy Partners.
Positive Impacts: Pollutant Reduction and Environmental Benefits
The environmental impact of this settlement is substantial. The EPA estimates that upon full implementation of the new controls and requirements, VOC emissions will be reduced by 706 tons per year. This translates to an impressive 91.5% annual emission reduction across MarkWest Energy Partners’ natural gas gathering system. This settlement is particularly noteworthy as the first to specifically address and rectify noncompliant VOC emissions associated with pigging and maintenance operations in wet gas shale plays, such as the Marcellus and Utica formations, highlighting the significance of targeting these often-overlooked sources of pollution.
VOCs are known contributors to smog formation and can cause a range of adverse health effects, including sensory irritation, allergies, asthma, and neurological and liver toxicity. Certain VOCs are also classified as carcinogens. By implementing air pollution controls at over 300 facilities, MarkWest Energy Partners will significantly improve air quality in western Pennsylvania and eastern Ohio, directly benefiting the health and well-being of communities in these regions.
In addition to emission reductions, MarkWest Energy Partners will undertake supplemental environmental projects as part of the settlement. This includes installing and operating ambient air monitoring stations near two compressor stations in Pennsylvania and Ohio. The data collected from these stations, providing valuable insights into VOC emissions from midstream oil and gas operations, will be made publicly available, enhancing transparency and public understanding. Furthermore, MarkWest will offer royalty-free licenses for their proprietary pig ramp technologies and share best practices for controlling emissions from pigging operations with the broader industry. This commitment to technology sharing and knowledge dissemination will contribute to broader environmental improvements across the natural gas sector.
Civil Penalty and Public Comment Period
As part of the settlement, MarkWest Energy Partners is required to pay a civil penalty of $610,000. This financial penalty serves as a further deterrent and underscores the importance of environmental compliance.
The proposed settlement, officially lodged in the U.S. District Court for the Western District of Pennsylvania, is now subject to a 30-day public comment period. This allows members of the public to review the details of the settlement and provide feedback before it is finalized and approved by the court. Information on how to submit comments can be found on the Department of Justice website, providing an opportunity for public engagement and ensuring transparency in the legal process.
This settlement marks a crucial step towards reducing air pollution from midstream natural gas operations and demonstrates the commitment of environmental agencies to enforcing the Clean Air Act. For MarkWest Energy Partners, this agreement signifies a pathway to improved environmental performance and sets a precedent for the industry in addressing VOC emissions from critical maintenance activities.
