EPA v. WESTERN CRUDE/RESERVE ENERGY/TRINITY GROUP

Case summary

ON 9/30/90, REGION IV FORWARDED A DIRECT SDWA CIVIL REFERRAL AGAINST WESTERN CRUDE RESERVES, INC. (WCR) RESERVE ENERGY, LTD. (RE), APPALACHIAN ENERGY COMPANY, INC. (AE), GEORGE AND BARBARA CRAFT AND CARL LUDWIG, D/B/A DOMESTIC ENERGY, INC. (DE), KISH RESOURCES, PLC. (KISH), AND GEMCO OIL DEVELOPMENT, INC. (GEMCO), TO DOJ FOR INITIATION OF A CIVIL ENFORCMENT ACTION. THE REFERRAL ALLEGES THAT WCR, RE, AE, DE, KISH AND GEMCO (DEFENDANTS) HAVE VIOLATED THE SDWA AND THE UIC REGULATIONS BY FAILURE TO CASE AND CEMENT, PROVIDE PLUGGING AND ABANDONMENT PLANS FOR, MAINTAIN FINANCIAL RESPONSIBILITY FOR, CONDUCT MONITORING OF AND PROVIDE ANNUAL REPORTS OF THE INJECTION ACTIVITIES ON THE 133 WELLS OWNED OR OPERATED BY DEFENDANTS. DEFENDANTS HAVE OWNED OR OPERATED, OR CURRENTLY OWN OR OPERATE 113 CLASS II (OIL AND GAS RELATED) ENHANCED RECOVERY INJECTION WELLS ON THE SOUTH FORK, GARRETT AND IRVINE UNITS, OF THE IRVINE-FURNACE FIELD IN ESTILL AND POWELL COUNTIES, KENTUCKY. SPECIFICALLY, WCR AND GEMCO HAVE BEEN OR ARE THE OPERATORS OF CERTAIN OF THESE WELLS SINCE JANUARY 1987; AND RE, AE, THE CRAFTS AND CARL LUDWIG, D/B/A DE, AND KISH HAVE BEEN OR PRESENTLY ARE THE OWNERS OF CERTAIN OF THE LEASES UPON WHICH THE WELLS ARE LOCATED SINCE JULY 1, 1987. SINCE 1988, DEFENDANTS HAVE BEEN IN VIOLATION OF UIC REGULATIONS, INCLUDING FAILURE TO SUBMIT AN ACCEPTABLE PLUGGING AND ABANDONMENT PLAN, IN VIOLATION OF 144.28(C); FAILURE TO MAINTAIN FINANCIAL RESPONSIBILITY, IN VIOLATION OF 144.28(D); FAILURE TO CASE AND CEMENT ALL WELLS, IN VIOLATION OF 144.28(E); FAILURE TO MONITOR THE INJECTION ACTIVITIES, IN VIOLATION OF 144.28(G); AND FAILURE TO SUBMIT ANNUAL REPORTS OF MONITORING OF THE INJECTION ACTIVITIES, IN VIOLATION OF 144.28(H). EPA HAS, ON NUMEROUS OCCESIONS, ATTEMPTED TO REACH AGREEMENT ON AN ADMINISTRATIVE ORDER ON CONSENT TO ADDRESS THESE VIOLATIONS. HOWEVER, AFTER SIX YEARS OF NEGOTIATING, EPA DOES NOT BELIEVE SETTLEMENT WITH ANY DEFENDANT IS LIKELY. EPA PROPOSES TO OBTAIN APPROPRIATE CIVIL PENALTIES, FULL COMPLIANCE WITH THE UIC REGULATIONS, AND AN INJUNCTION TO PROHIBIT ANY INJECTION ACTIVITIES UNTIL JUDGMENT IS OBTAINED. MAXIMUM STATUTORY PENALTIES EXCEED BILLIONS OF DOLLARS. ALL 6 DEFENDANTS ARE SUBJECT TO ALL THE FOLLOWING VIOLATIONS, ALBEIT AT DIFFERENT TIMES.

Defendants (7)

• APPALACHIAN ENERGY COMPANY, INC.Named in complaintNamed in settlement
• DOMESTIC ENERGY INC.Named in complaintNamed in settlement
• GEMCO OIL DEVELOPMENT, INC.Named in complaintNamed in settlement
• KISH RESOURCES, PLCNamed in complaintNamed in settlement
• RESERVE ENERGY, LIMITEDNamed in complaintNamed in settlement
• TRINITY GROUPNamed in complaintNamed in settlement
• WESTERN CRUDE RESERVES, INC.Named in complaintNamed in settlement

Facilities (1)

• TRINITY GROUP, LLC

  409 S MAIN ST, LONDON, KY, 40743

  Registry ID: 110010703523

Statutes cited

• SDWA 1423 — Safe Drinking Water Act

Enforcement conclusions (1)

• WESTERN CRUDE/RESERVE ENERGYentered 1996-10-24

  Primary law: SDWA

Timeline (7 milestones)

• 1988-12-01Enforcement Action Data Entered
• 1993-09-30Referred To Dept Of Justice
• 1995-01-31Complaint Filed With Court
• 1996-10-24Final Order Lodged
• 1996-10-24Final Order Entered
• 1996-10-24Concluded
• 2010-03-01Enforcement Action Closed