EPA v. RED JACKET ENERGY, LLC (BROWN FARM UNDERGROUND INJECTION FACILITY)

Case summary

On August 9, the Office of Drinking Water & Source Water Protection issued a Proposed Administrative Order to the Red Jacket Energy Brown Farm underground injection facility, in McKean County, Pennsylvania for violation of the Safe Drinking Water Act. Red Jacket operates a rule authorized Class II enhanced recovery facility. Enhanced recovery wells are used to assist oil and gas production by injecting produced brines into previously depleted production zones to displace oil and/or gas and drive it to a production wellbore. PADEP regulates conventional oil and gas production in Pennsylvania. In January, PADEP notified EPA that production was not taking place at the facility. EPA and PADEP have coordinated efforts to gather information about the Brown Farm facility and conducted a joint inspection in February. It was found that the production wells on-site were not equipped for production and therefore Red Jacket is currently operating unpermitted Class II disposal wells. Also contained in the order are violations in which Red Jacket failed to maintain the mechanical integrity of two injection wells and to properly plug and abandon an injection well. Under SDWA, Red Jacket can request a hearing and submit written comments on the Proposed Order within 30 days from the date of issuance. The public also has an opportunity to comment. On September 12, the Office of Drinking Water & Source Water Protection issued a final Administrative Order to the Red Jacket Energy Brown Farm underground injection facility, in McKean County, Pennsylvania for violation of the Safe Drinking Water Act. Red Jacket and the public was given opportunity to comment when the Proposed Order was issued on August 9. Red Jacket was also given the opportunity to request a hearing for which no request was made. The Administrative Order was issued with no modifications. Red Jacket operates a rule authorized Class II enhanced recovery facility. Oil and/or gas production must take place with the injection of produced fluids for the facility to be considered an Enhanced Recovery operation. PADEP had previously notified EPA that production was not taking place at the facility which would classify the Red Jacket facility as an unpermitted Class II disposal operation. Since the Proposed Order was issued, Red Jacket has placed three production wells back into operation reestablishing the Brown Farm facility as Enhanced Recovery. Red Jacket was also required to demonstrate that a historic plugged production well wasn?t causing fluid migration to an underground source of drinking water. Progress has been taking place to satisfy this requirement starting on September 5. The only tasks outlined in the Order that remain are to establish mechanical integrity on two injection wells and to permanently plug and abandon an injection well that was deemed impractical to operate due to its proximity to a stream.

Defendants (1)

• RED JACKET ENERGY, LLCNamed in settlement

Facilities (1)

• BROWN FARM UNDERGROUND INJECTION FACILITY

  MUNICIPALITIES OF OTTO & KEATING, MCKEAN, PA, 16745

  Registry ID: 110070132333

Statutes cited

• SDWA 1423C — UIC - Violation of 1423(c) AO

Enforcement conclusions (1)

• RED JACKET ENERGY, LLC (BROWN FARM UNDERGROUND INJECTION FACILITY)entered 2017-09-12

  Primary law: SDWA

Timeline (3 milestones)

• 2017-09-12Final Order Issued
• 2017-10-17Enforcement Action Data Entered
• 2018-04-26Enforcement Action Closed