EPA v. ANDERSON OIL & GAS, INC.

Case summary

1/26/12 - ADMINISTRATIVE ORDER ON CONSENT ISSUED. FINDINGS: ACCORDING TO THE RECORDS OF THE SECRETARY OF THE COMMONWEALTH OF KY, JETT BLACK, INC., THE PREVIOUS OWNER AND/OR OPERATOR OF THE SUBJECT WELLS, IS NO LONGER AN ACTIVE CORPORATION. RESPONDENT SUBMITTED AN APPLICATION TO TRANSFER PERMIT AND THE LEASE ASSIGNMENT DOCUMENT TO THE EPA ON JULY 12, 2010. IN THE APPLICATION, RESPONDENT REQUESTED THAT THE PERMIT BE TRANSFERRED FROM JETT BLACK, INC., TO ANDERSON OIL & GAS, INC.; NO OTHER MODIFICATIONS TO THE PERMIT WERE REQUESTED BY THE NEW PERMITTEE. THE SDWA AND 40 CFR 144.51(a) REQUIRE THE PERMITTEE TO COMPLY WITH ALL CONDITIONS OF THE PERMIT. NONCOMPLIANCE CONSTITUTES A VIOLATION OF THE SDWA AND IS GROUNDS FOR AN ENFORCEMENT ACTION. THE UIC PERMITS STATE THESE PERMITS ARE NOT TRANSFERABLE TO ANY PERSON EXCEPT AFTER NOTICE TO AND APPROVAL BY THE DIRECTOR, IN COMPLIANCE WITH THE REQUIREMENTS OF 40 CFR 144.38. 40 CFR 144.38(b) ALLOWS FOR AN AUTOMATIC TRANSFER TO REFLECT THE CHANGE IN OWNERSHIP OR OPERATIONAL CONTROL THRU A MINOR MODIFICATION PURSUANT TO 40 CFR 144.41(d), PROVIDED THE CURRENT PERMITTEE NOTIFIES EPA 30 DAYS IN ADVANCE OF THE PROPOSED TRANSFER. SUCH NOTICE SHALL INCLUDE THE WRITTEN AGREEMENT BETWEEN THE NEW AND EXISTING PERMITTEES AND SHALL DEMONSTRATE THAT THE FINANCIAL RESPONSIBILITY REQUIREMENTS OF 40 CFR 144.52(a)(7) WILL BE MET BY THE NEW PERMITTEE. EPA DID NOT RECEIVE PROPER NOTICE OF HTE PROPOSED TRANSFER 30 DAYS IN ADVANCE OF THE TIME RESPONDENT ASSUMED OWNERSHIP AND OPERATIONAL CONTROL OF THE SUBJECT WELLS, HOWEVER, 40 CFR 144.39 ALLOWS FOR AN AUTOMATIC TRANSFER EVEN AFTER THE DATE OF AN AUTOMATIC TRANSFER, UPON REQUEST OF THE NEW PERMITTEE. RESPONDENT HAS NOT MET THE REQUIREMENTS OF 40 CFR 144.52(a)(7), THEREFORE RESPONDENT IS IN VIOLATION FOR FAILING TO DEMONSTRATE FINANCIAL RESPONSIBILITY AND RESOURCES TO CLOSE, PLUG AND ABANDON THE SUBJECT WELLS. THE UIC PERMITS REQUIRE THAT AFTER A CESSATION OF INJECTION FOR TWO YEARS THE PERMITTEE SHALL DEMONSTRATE THE MECHANICAL INTEGRITY OR CLOSE, PLUG AND ABANDON THE WELL. BASED ON THE EPA'S RECORDS AND FIELD INSPECTIONS, THE FOLLOWING INACTIVE SUBJECT WELLS WERE NOT PLUGGED AND ARE OVERDUE FOR MECHANICAL INTEGRITY DEMONSTRATION AS SHOWN BELOW: BOLING RICHARDS #W1 - LAST MIT 11/2/89 BOLING RICHARDS #W6 - LAST MIT 12/5/90 BOLING RICHARDS #W7 - NO MIT BOLING RICHARDS #W4 - LAST MIT 11/1/89 RANDOLPH BOLING #W1 - LAST MIT 11/1/89 RANDOLPH BOLING #W4 - LAST MIT 11/1/92 THE UIC PERMITS REQUIRE THE PERMITTEE TO MONTHLY MONITOR THE INJECTION AND ANNULUS PRESSURES AT THE WELLHEAD; AND TO MONTHLY MONITOR THE FLOW RATE AND CUMULATIVE VOLUME OF THE INJECTED FLUID. THE PERMITS CONTAIN THE REUIQREMENTS TO SUBMIT THE RESULTS OF ALL MONITORING BY JANUARY 28 OF THE FOLLOWING YEAR. BASED ON EPA'S RECORDS, RESPONDENT HAS NOT SUBMITTED ANY MONITORING RESULTS FOR THE SUBJECT WELLS. THE PERMITS REQUIRE THE PERMITTEE TO CONDUCT INJECTION FLUID ANALYSIS AT LEAST ONCE EVERY 12 MONTHS AND WHENEVER CHANGES ARE MADE TO THE INJECTION FLUID. ANALYSES SHALL BE MADE BEGINNING WITHIN 12 MONTHS FROM THE EFFECTIVE DATE OF THE PERMIT. THE PERMITS CONTAIN THE REQUIREMENT TO ANNUALLY SUBMIT THE RESULTS OF THESE INJECTION FLUID ANALYSES. BASED ON EPA'S RECORDS, FLUID ANALYSES HAVE NOT BEEN PERFORMED ON THE BOLING RICHARDS #W5 WELL.

Defendants (1)

• ANDERSON OIL & GAS, INC.Named in settlement

Facilities (7)

• KYS0910119 WEST KENTUCKY ENERGY RESOURCES, LLC - BOLING RICHARDS W-1

  LAT/LONG: 37.707778 / -86.719167, LEWISPORT, KY, 42351

  Registry ID: 110045471583

• BOLING RICHARDS UIC WELL #W4

  LAT/LONG: 37.708009 / -86.719143, LEWISPORT, KY, 72351

  Registry ID: 110045471654

• BOLING RICHARDS UIC WELL #W5

  LAT/LONG: 37.70401 / -86.717876, LEWISPORT, KY, 42351

  Registry ID: 110045471627

• KYS0910120 WEST KENTUCKY ENERGY RESOURCES, LLC - LEWIS RICHARDS 9

  LAT/LONG: 37.704202 / -86.716528, LEWISPORT, KY, 42351

  Registry ID: 110045471636

• RANDOLPH BOLING UIC WELL #W4

  LAT/LONG: 37.729379 / -86.721161, LEWISPORT, KY, 42351

  Registry ID: 110045471672

• KYS0910122 WEST KENTUCKY ENERGY RESOURCES, LLC - BOLING RICHARDS W-7

  LAT/LONG: 37.702746 / -86.716062, LEWISPORT, KY, 42351

  Registry ID: 110045471645

• RANDOLPH BOLING UIC WELL #W1

  LAT/LONG: 37.730752 / -86.723615, LEWISPORT, KY, 42351

  Registry ID: 110045471663

Statutes cited

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

Enforcement conclusions (1)

• ANDERSON OIL & GAS, INC.entered 2012-01-26

  Primary law: SDWA

Timeline (2 milestones)

• 2012-01-26Final Order Issued
• 2012-03-26Enforcement Action Data Entered