Noble Energy Agrees To Make System Upgrades To Reduce Air Pollution In Colorado

(RTTNews) - Noble Energy Inc. (NBL) agreed to make system upgrades and fund projects to reduce air pollution in Colorado.

A settlement with Noble Energy resolving alleged Clean Air Act violations stemming from the company's oil and gas exploration and production activities in the Denver-Julesburg Basin, north of Denver, Colorado. The settlement resolves claims that Noble failed to adequately design, size, operate and maintain vapor control systems on its controlled condensate storage tanks, resulting in emissions of volatile organic compounds (VOCs).

VOCs are a key component in the formation of smog or ground-level ozone, a pollutant that irritates the lungs, exacerbates diseases such as asthma and can increase susceptibility to respiratory illnesses, such as pneumonia and bronchitis, announced the Department of Justice's Environment and Natural Resources Division, the Environmental Protection Agency (EPA) and the state of Colorado.

As part of the settlement, Noble will spend an estimated $60 million on system upgrades, monitoring and inspections to reduce emissions, in addition to $4.5 million to fund environmental mitigation projects, $4 million on supplemental environmental projects and a $4.95 million civil penalty.

The case arose from a joint EPA and Colorado investigation that found significant VOC emissions coming from storage tanks, primarily due to undersized vapor control systems. Noble has agreed to evaluate vapor control system designs, significantly reduce VOC emissions, and provide reports to the public. These reports will give other companies the opportunity to learn and apply this information to emissions estimates and vapor control system designs.

Using advanced monitoring technologies, Noble will be better able to detect air pollution problems in real time and ensure proper operation and maintenance of pollution control equipment.