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Marathon To Pay $334.6 Million Settlement for Refinery Pollution

Marathon Petroleum (NYSE: MPC) will pay almost $335 million to settle a dispute over refinery pollution across five US states, in addition to a $326,500 civil penalty, according to the Environmental Protection Agency (EPA) and U.S. Justice Department in statement on Thursday.

Under the agreement, Ohio-based Marathon Petroleum will reduce air pollution from the company’s refineries in five mid-west states.

Part of the agreement is for Marathon to install state-of-art Flare Gas Recovery Systems in its refineries in Illinois, Kentucky, Louisiana, Michigan, and Ohio that are designed to capture and recycle gasses currently sent to combustion devices—a measure that comes with a $319 million price tag.

Marathon also agreed to pay over $15 million on other projects that will reduce air pollution at three facilities, including $6 million to shut down a flare in its Detroit refinery and $9.5 million on various projects to reduce nitrogen oxide emissions at its Canton, Ohio, and Garyville, Louisiana, refineries.

The civil penalty assigned to Marathon of $326,500 pales in comparison to the pollution-reduction efforts outlined above.

Overall, the agreement is expected to reduce organic compounds, sulfur dioxide, and nitrogen oxides by approximately 1,037 tons per year.

“When companies like Marathon install state-of-the-art pollution controls, they reduce air pollution in some of our most vulnerable communities,” said Cynthia Giles, Assistant Administrator for EPA’s Office of Enforcement and Compliance Assurance. “By updating this agreement, we are furthering our commitment to protect communities across the Southeast and the Midwest, especially places like Detroit that are overburdened by pollution.”

Shares of MPC are up 0.52% as of Thursday afternoon.

By Julianne Geiger for Oilprice.com

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