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XTO Energy, Inc. to Restore Areas Damaged by Natural Gas Extraction Activities

Release Date: 12/22/2014
Contact Information: Donna Heron heron.donna@epa.gov 215-814-5113

PHILADELPHIA (December 22, 2014) - - The U.S. Environmental Protection Agency and the Department of Justice announced today that XTO Energy, Inc., (XTO) a subsidiary of ExxonMobil, the nation’s largest holder of natural gas reserves, will spend an estimated $3 million to restore eight sites damaged by unauthorized discharges of fill material into streams and wetlands. XTO will also implement a comprehensive plan to comply with federal and state water protection laws at the company’s West Virginia’s oil and gas extraction facilities that use horizontal drilling methods.

Additonally, the company will pay a civil penalty of $2.3 million for violations of Section 404 of the Clean Water Act (CWA), which prohibits the filling of wetlands, rivers, streams, and other waters of the United States without a permit from the U.S. Army Corps of Engineers (Corps). The settlement resolves alleged violations of state law asserted by the West Virginia Department of Environmental Protection (WVDEP). The state of West Virginia is co-plaintiff in the settlement and will receive half of the $2.3 million civil penalty.

“Wetlands and streams serve important roles in the aquatic ecosystem by supporting aquatic life and wildlife. Wetlands also play a valuable role in recharging our groundwater and drinking water supplies, and reducing flood risks,” said EPA Regional Administrator Shawn M. Garvin. “This case sends a clear message that EPA and other federal and state regulatory agencies will do what is necessary to ensure compliance with the Clean Water Act and to protect these valuable resources and the health of our communities.”

“The extraction of domestic energy resources is vitally important, and so it is equally important that companies ensure that all activities are done in accordance with the nation’s environmental laws,” said Sam Hirsch, the acting assistant attorney general for DOJ’s Environment and Natural Resources Division. “This settlement will resolve allegations that XTO damaged wetlands and streams by illegally discharging dredge and fill materials into streams, and restore wherever possible these damaged natural resources.”

The federal government and WVDEP allege that the company impacted streams and discharged sand, dirt, rocks and other fill material into streams and wetlands without a federal permit in order to construct well pads, road crossings, freshwater pits, and other facilities related to natural gas extraction. Today’s settlement resolves the alleged violations that occurred at eight sites located in the West Virginia counties of Harrison, Marion and Upshur. The government alleges that the violations impacted more than 5,300 linear feet of stream, and 3.38 acres of wetlands.

The settlement requires the company to fully restore the wetlands and streams wherever feasible, monitor the restored sites for up to 10 years to assure the restoration occurs successfully, and implement a comprehensive compliance program with the Clean Water Act and applicable West Virginia law.

EPA discovered some of the violations through information provided by the state and through routine joint inspections conducted with the Corps, who actively supported EPA and DOJ in this case. In addition, the company voluntarily disclosed potential violations at five of the sites following an internal audit. Beginning in 2011, EPA issued administrative compliance orders for violations at all eight sites. Since that time, the company has been working with EPA to correct the violations and restore those sites in full compliance with EPA’s orders.

In July 2013, the United States concluded a settlement with XTO to resolve an alleged violation of the Clean Water Act related to the discharge of wastewater from XTO’s Penn Township, Lycoming County, Pa., facility used for the storage of wastewater generated by hydraulic fracturing operations.

Ensuring energy extraction activities comply with environmental laws is one of EPA’s National Enforcement Initiatives. Filling wetlands and streams illegally can result in serious environmental consequences. Streams, rivers, and wetlands benefit the environment by reducing flood risks, filtering pollutants, recharging groundwater and drinking water supplies, and providing food and habitat for aquatic species. Improving compliance with the Corps’ permit requirements and Clean Water Act regulations developed by EPA helps to prevent violations and environmental harm. For more information about the permitting process under Section 404 of the Clean Water Act: Regulatory.Permits@usace.army.mil or http://water.epa.gov/lawsregs/guidance/cwa/dredgdis/.

XTO engages in the exploration and production of natural gas in the Appalachian Basin. The company has Marcellus Shale holdings in Pennsylvania, New York, Ohio and West Virginia.

For more information about the settlement: http://www2.epa.gov/enforcement/xto-energy-inc-settlement-2014