2024 XTO Energy Inc. Clean Air Act Stationary Source Settlement

On October 24, 2024, the U.S. Environmental Protection Agency (EPA), Department of Justice, and state of Pennsylvania finalized a settlement with XTO Energy Inc. (“XTO”) for failure to comply with federal and state air regulations to capture and control air emissions from 11 of XTO’s oil and gas production facilities in Butler County, Pennsylvania. The violations were identified through field investigations conducted in 2018 and 2019. 

Under the settlement XTO will pay a $4 million civil penalty and implement projects to ensure 30 of its oil and gas well pads in western Pennsylvania comply with federal and state clean air regulations and offset past illegal emissions. The projects are expected to cost approximately $3 million.  

The settlement agreement, resolving Clean Air Act violations, will reduce approximately 120 tons per year of volatile organic compounds (VOCs) and methane emissions equivalent to more than 1,960 tons per year of carbon dioxide at oil and gas production facilities. This enforcement settlement furthers EPA’s commitment to deliver public health protections against climate-impacting pollution and other pollutants for communities across America. 

• Overview of XTO Energy Inc.
• Overview of Violations
• Health and Environmental Impacts
• Overview of Consent Decree
• Comment Period
• Contact Information

Overview of XTO Energy Inc.

XTO is a natural gas extraction and production company that is a directly held, wholly owned subsidiary of ExxonMobil. Its operations stretch from the Great Plains to Appalachia. It holds interests in more than 50,000 producing oil and natural gas wells. Among these holdings includes operations in 15 counties (including Butler County), covering 534,000 acres in western Pennsylvania. 

Overview of Violations 

XTO’s Clean Air Act violations include the following:  

• Standards of Performance for Crude Oil and Natural Gas Facilities for Which Construction, Modification or Reconstruction Commenced After August 23, 2011, and On or Before September 18, 2015, 40 C.F.R. Part 60, Subpart OOOO (NSPS OOOO) and Standards of Performance for Crude Oil and Natural Gas Facilities for Which Construction, Modification or Reconstruction Commenced After September 18, 2015 and On or Before September 6, 2022, 40 C.F.R. Part 60, Subpart OOOOa (NSPS OOOOa), which require VOC and methane emissions to be controlled from new, modified and reconstructed sources in the oil and natural gas industry, including storage vessels involved in production and transmission;  and,

• Federally enforceable provisions of the Pennsylvania State Implementation Plan, including Title 25, Chapter 127 of the Pennsylvania Code, which require sources to obtain approvals from the Pennsylvania Department of Environmental Protection prior to the construction or modification of an air contamination source. 

Health and Environmental Impacts

Overview of Consent Decree

Under the proposed consent decree, XTO has agreed to spend approximately $3 million to implement compliance assurance measures at 30 western Pennsylvania facilities, including:  

• Field surveys, in which the company is required to identify and address any compromised equipment with a potential for excess VOC emissions;  

• Design analysis of the vapor control systems, followed by a requirement to implement any necessary modifications to ensure the systems are properly designed or sized; 

• Ongoing and robust directed inspection and preventative maintenance program at subject facilities to ensure that problems are identified and resolved promptly; 

• Extensive monitoring program for subject vapor control systems that includes tank pressure monitoring, vapor recovery unit inlet monitoring, and flare pilot monitoring; and, 

• Third-party verification program examining the company’s compliance with all aspects of the consent decree’s requirements.  

As part of this program, should a subject storage vessel pressure monitor record a measurement that exceeds a defined trigger point, XTO will be required to “shut-in” all production operations associated with that storage vessel system until such time as all pressure relief devices are properly seated and sealed and the pressure measurement falls below that trigger point. 

XTO has agreed to pay a $4 million civil penalty, to be split between the United States and the Commonwealth of Pennsylvania. 

XTO will also spend at least $1.4 million to undertake a project to mitigate harm attributable to the Clean Air Act violations. Specifically, by December 31, 2027, XTO will be required to work with the Pennsylvania Department of Environmental Protection to identify orphaned and abandoned gas wells in Butler County, Pennsylvania, and permanently plug and remediate the ones with the highest potential for reduction of VOC and methane emissions. 

XTO’s compliance with the consent decree is expected to result in the reduction of approximately 120 tons per year of VOC emissions and 1,960 tons per year of greenhouse gas emissions, including methane, measured as carbon dioxide equivalents. The settlement will result in significant reductions of greenhouse gas emissions. Greenhouse gases from human activities are a primary cause of climate change and global warming. 

Comment Period

The proposed settlement is lodged in the U.S. District Court for the Western District of Pennsylvania and will be subject to a 30-day public comment period and final court approval. Information on submitting comments is available at the Department of Justice website. 

Contact Information

For more information contact: 

Christopher Williams, Chemical Engineer 
(202) 564-7889
[email protected] 

Daniel Hoyt, Environmental Engineer
(202) 564-7898 
[email protected]

Alex Chen, Attorney
(202) 565-0082
[email protected]

U.S. Environmental Protection Agency 
Air Enforcement Division
Office of Civil Enforcement 
U.S. Environmental Protection Agency 
1200 Pennsylvania Avenue, NW
Washington D.C. 20460