EPA v. GLOBALNET ENERGY CORPORATION (COMPLIANCE ORDER)

Case summary

3/19/04 - COMPLIANCE ORDER ISSUED. RESPONDENT OWNS AND/OR OPERATES 4 RULE-AUTHORIZED CLASS II INJECTION WELLS. THE WELLS ARE: ASHLAND-YUNKER MINERALS #2, RUMSEY FIELD; T.R. KITTINGER #2, RUMSEY FIELD; K.M. WALTERS #1, RUMSEY FIELD; H.E. BRYANT #1, RUMSEY FIELD. VIOLATION 1: ACCORDING TO EPA FIELD INSPECTION RECORDS, THE 4 RULE-AUTHORIZED WELLS HAVE BEEN TEMPORARILY ABANDONED SINCE 1998. FOR THESE WELLS, THERE ARE VIOLATIONS OF 40 CFR 144.28(c)(2)(iv) AND THEREFORE THE SDWA FOR LEAVING THE WELLS TEMPORARILY ABANDONED FOR A PERIOD OF MORE THAN 2 YEARS WITHOUT PLUGGING AND ABANDONING THE WELLS IN ACCORDANCE WITH AN EPA-APPROVED PLAN OR DEMONSTRATING THE MECHANICAL INTEGRITY OF THE WELLS AT LEAST ONCE EVERY 2 YEARS DURING THE PERIOD OF TEMPORARY ABANDONMENT. VIOLATION 2: EPA HAS CONDUCTED A REVIEW OF THE FILES AND DETERMINED THAT RESPONDENT HAS NOT DEMONSTRATED ADEQUATE FINANCIAL RESPONSIBILITY TO CLOSE, PLUG, AND ABANDON THE WELLS. RESPONDENT IS IN VIOLATION OF 40 CFR 144.28(d) FOR FAILIURE TO DEMONSTRATE ADEQUATE FINANCIAL RESPONSIBLIITY TO CLOSE, PLUG AND ABANDON THE INJECTION WELLS. VIOLATION 3: EPA CONDUCTED A REVIEW OF THE COMPLIANCE FILES AND DETERMINED THAT A TRANSFER OF OWNERSHIP OF THE 4 INJECTION WELLS OWNED BY PHILLS AND ASSOCIATES HAD OCCURRED OCTOBER OF 1997 WHEN DAVID JENKINS PURCHASED THE COMPANY. THROUGH FURTHER INVESTIGATION, IT WAS DETERMINED THAT ANOTHER TRANSFER OF OWNERSHIP OCCURRED FROM MR. JACKSON TO PRO GAS IN JULY 1999. THEN, IN 2003, THE WELLS WERE ACQUIRED BY RESPONDENT WITHOUT THE PROPER TRANSFER OF OWNERSHIP NOTIFICATION TO EPA. THEREFORE, THERE EXISTS A VIOLATION OF 40 CFR 144.28(1)(1) FOR FAILURE TO NOTIFY EPA OF THE TRANSFER IN OWNERSHIP. ORDER REQUIRES: WITHIN 30 DAYS OF THE EFFECTIVE DATE OF THIS ORDER, RESPONDENT WILL PROVIDE EPA WITH DOCUMENTATION OF TRANSFER OF OWNERSHIP OF THE SUBJECT WELLS USING EPA FORM 7520-7 (REV. 8-91). WITHIN 15 DAYS OF THE EFFECTIVE DATE OF THIS CAFO, RESPONDENT SHALL CONTACT EPA TO ARRANGE FOR THE SCHEDULING OF A MECHANICAL INTEGRITY TEST. WITHIN 90 DAYS OF THE EFFECTIVE DATE OF THIS CAFO, RESPONDENT SHALL HAVE DEMONSTRATED THE MECHANICAL INTEGRITY OF THE SUBJECT INJECTION WELLS OR PLUGGED AND ABANDONED THE WELLS IN ACCORDANCE WITH AN EPA-APPROVED PLUGGING PLAN. WITHIN 30 DAYS OF THE EFFECTIVE DATE OF THIS CAFO, RESPONDENT SHALL SUBMIT A DEMONSTRATION OF FINANCIAL RESPONSIBILITY IN AN AMOUNT ADEQUATE TO CLOSE, PLUG AND ABANDON THE SUBJECT WELLS IN ACCORDANCE WITH AN EPA-APPROVED PLAN. THIS DEMONSTRATION SHALL BE IN THE FORM OF A FULLY-FUNDED TRUST, A BOND WITH A STAND-BY TRUST, OR A LETTER OF CREDIT WITH STAND-BY TRUST IN LANGUAGE COMPARABLE TO THAT FOUND AT 40 CFR 144.7

Defendants (1)

• GLOBALNET ENERGY CORP.Named in settlement

Facilities (1)

• RUMSEY UIC WELL FIELD (GLOBALNET ENERGY CORP.)

  RUMSEY FIELD, RUMSEY, KY, 42371

  Registry ID: 110017720484

Statutes cited

• SDWA 1422/1423 — UIC Regulations Classes I - V

Enforcement conclusions (1)

• GLOBALNET ENERGY CORPORATIONentered 2004-03-19

  Primary law: SDWA

Timeline (3 milestones)

• 2004-03-19Final Order Issued
• 2004-03-27Enforcement Action Data Entered
• 2004-08-26Enforcement Action Closed