EPA v. REBELL OIL OF KENTUCKY, LLC / RICKY E. BELL

Case summary

5/23/12 - CEASE INJECTION ORDER ISSUED. RESPONDENT IS THE OWNER AND/OR OPERATOR OF THE SUBJECT CLASS UNDERGROUND INJECTION WELL. THE SUBJECT WELL WAS IN EXISTENCE ON JUNE 25, 1984, THE EFFECTIVE DATE OF THE UIC PROGRAM IN KY AS IMPLEMENTED BY EPA, AND IS AUTHORIZED BY RULE AS THAT TERM IS DEFINED IN 40 CFR 144.21(a) AND IS SUBJECT TO THE REQUIREMENTS OF THE SDWA AND THE UIC REGS. ON OCT 13, 2011, RESPONDENT INFORMED THE EPA BY TELEPHONE THAT THE COMPANY HAD RECENTLY ASSUMED OPERATIONS OF THE OATHA STRADER LEASE. THE EPA ADVISED RESPODNENT PURSUANT TO 40 CFR 144.28(L)(2) THAT TO COMPLETE TRANSFER THE RESPONDENT NEEDED TO DEMONSTRATE FINANCIAL RESPONSIBILITY. RESPONDENT ARRANGED FOR THE EPA-APPROVED INSPECTOR TO WITNESS A MECHANICAL INTEGRITY DEMONSTRATION OF THE SUBJECT WELL. ON OCT 14, 2011, RESPONDENT DEMONSTRATED THE MECHANICAL INTEGRITY OF THE SUBJECT WELL AND BEGAN ACTIVELY INJECTING. A ROUTINE INEPCTION ON MARCH 14, 2012, CONFIRMED THAT RESPONDENT IS INJECTING INTO THE SUBJECT WELL. THE REGULATION AT 40 CFR 144.28(d) REQUIRES OWNERS/OPERATORS OF RULE-AUTHORIZED INJECTION WELLS TO PROVIDE AND MAINTAIN ACCEPTABLE FINANCIAL RESPONSIBILITY AND RESOURCES TO CLOSE, PLUG AND ABANDON ALL SUCH WELLS UNDER THEIR CONTROL. BY REGULATION AT 40 CFR 144.28(L)(3), THE TRANSFERREE IS AUTHORIZED TO INJECT UNLESS HE RECEIVES NOTIFICATION FROM THE DIRECTOR THAT THE TRANSFEREE HAS NOT DEMONSTRATED FINANCIAL RESPONSIBILITY PURSUANT TO 40 CFR 144.28(d). THE EPA HAS NOT RECEIVED ANY FINANCIAL ASSURANCE FROM RESPONDENT FOR THE SUBJECT WELL NOR HAS THE EPA RECEIVED THE TRANSFER APPLICATION OR WRITTEN AGREEMENT. THEREFORE, RESPONDENT IS IN VIOLATION OF THE SDWA AND 40 CFR 144.28(d) FOR FAILUIRE TO PROVIDE FINANCIAL RESPONSIBILITY AND RESOURCES TO CLOSE, PLUG AND ABANDON THE SUBJECT WELL. ORDER REQUIRES: RESPONDENT IS HEREBY ORDERED TO IMMEDIATELY CEASE INJECTION INTO THE SUBJECT WELL AND DISCONNECT THE INJECTION LINE TO COMPLY WITH THE REGULATION AT 40 CFR 144.22(c)(7), WHICH PROHIBITS UNDERGROUND INJECTION THROUGH A RULE-AUTHORIZED WELL UPON RECEIPT OF NOTIFICATION FROM THE DIRECTOR PURSUANT TO 40 CFR 144.28(L)(3) THAT THE TRANSFEREE HAS NOT DEMONSTRATED FINANCIAL RESPONSIBILITY IN ACCORDANCE WITH 144.28(d).

Defendants (2)

• RICKY E. BELLNamed in settlement
• REBELL OIL OF KENTUCKY, LLCNamed in settlement

Facilities (1)

• OATHA STRADER #1 W-1 UIC WELL

  LAT/LONG: 37.20192 / -87.55137, EDMONTON, KY, 42129

  Registry ID: 110046306822

Statutes cited

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

Enforcement conclusions (1)

• REBELL OIL OF KENTUCKY, LLC / RICKY E. BELLentered 2012-05-23

  Primary law: SDWA

Timeline (2 milestones)

• 2012-05-23Final Order Issued
• 2012-06-14Enforcement Action Data Entered