Marathon Oil (MRO)

Wyoming Proceedings

The Wyoming Environmental Quality Council (“EQC”), which oversees the State Department of Environmental Quality (“DEQ”), has before it an administrative petition filed by the Powder River Basis Resource Council in 2006 seeking new water quality sulfate and barium standards for coal bed methane produced water and a requirement that all such water be beneficially reused. The petition seeks to expand the authority of the DEQ to regulate the quantity of water discharges. It would narrow the definition of required “beneficial use” discharges and would impose stricter effluent standards for discharged water. The EQC is also considering adoption of a rule which would impose more stringent water quality limits as to produced water discharges that come from any new coal bed methane or conventional oil and gas operations. The DEQ made this proposal citing a statutory directive that all waters that are suitable for agriculture may not be degraded. Marathon contends that its waters as currently regulated are beneficial to crops and livestock, rather than being a potential threat. The EQC would have to decide how stringent a water quality standard it would adopt for new discharges.

In response to the Governor of Wyoming’s veto of a state agency adoption of a rule that would allow the DEQ to regulate the quantity of coal bed methane water discharges, an activist group has sued in state court to overturn the veto. In June 2007, Marathon and another producer filed a motion to intervene. The DEQ has begun issuing renewal water discharge and other permits with stringent limits based on its agricultural use policy rather than upon any regulation. The permits could require more costly water treatment or injection. Marathon is appealing every permit issued in this way. In 2007, the state court dismissed the activist group’s lawsuit, and its time for appeal has expired.

Wyoming Proceedings

In response to the Governor of Wyoming’s veto of a state agency adoption of a rule that would allow the State Department of Environmental Quality (“DEQ”) to regulate the quantity of coal bed methane water discharges, an activist group has sued in State Court to overturn the veto.  In June 2007, Marathon and another producer filed a motion to intervene. The State DEQ has begun issuing renewal water discharge and other permits with stringent limits based on its agricultural use policy rather than upon any regulation.  The permits could require more costly water treatment or injection.  Marathon is appealing every permit issued in this way as unlawful.

In the Environmental Defense Fund (“EDF”) v. Bureau of Land Management (“BLM”) case before the Federal District Court of Wyoming, the EDF alleged that in 2002, the BLM did not sufficiently evaluate the air impacts associated with coal bed natural gas production in the Powder River Basin, as well as other oil and gas operations in Wyoming. Marathon and other producers had intervened.  In June 2007, the Federal District Court for the District of Wyoming dismissed the EDF case (without prejudice as to refiling).

Wyoming Proceedings

In response to the Governor of Wyoming’s veto of a state agency adoption of a rule that would allow the State Department of Environmental Quality (“DEQ”) to regulate the quantity of coal bed methane water discharges, an activist group has sued in State Court to overturn the veto.  In June 2007, Marathon and another producer filed a motion to intervene. The State DEQ has begun issuing renewal water discharge and other permits with stringent limits based on its agricultural use policy rather than upon any regulation.  The permits could require more costly water treatment or injection.  Marathon is appealing every permit issued in this way as unlawful.

Wyoming Proceedings

        The Wyoming Environmental Quality Council ("EQC"), which oversees the State Department of Environmental Quality ("DEQ"), has before it an administrative petition filed by the Powder River Basis Resource Council in 2006 seeking new water quality sulfate and barium standards for coal bed methane produced water and a requirement that all such water be beneficially reused. The petition seeks to expand the authority of DEQ to regulate the quantity of water discharges. It would narrow the definition of required "beneficial use" discharges and would impose stricter effluent standards for discharged water. The EQC is also considering adoption of a rule which would impose more stringent water quality limits as to produced water discharges that come from any new coal bed methane or conventional oil and gas operations. DEQ made this proposal citing a statutory directive that all waters that are suitable for agriculture may not be degraded. Marathon contends that its waters as currently regulated are beneficial to crops and livestock, rather than being a potential threat. The EQC would have to decide how stringent a water quality standard for new discharges it would adopt.