EPA v. WHITNEY OIL & GAS CO., LLC

Case summary

10/23/14 - CONSENT AGMT AND FINAL ORDER ISSUED, ASSESSING A PENALTY OF $2,000 DUE WITHIN 60 DAYS. ALLEGATIONS: ON JAN 4, 2010, A PERMIT APPLICATION WAS SUBMITTED TO EPA FOR THE PLANNED CONVERSION OF THE SUBJECT WELL FROM A PRODUCTION WELL TO AN INJECTION WELL. BY LETTER DATED FEB 8, 2010, EPA INFORMED THE APPLICANT THAT THE PERMIT WOULD BE DEEMED ADMINISTRATIVELY INCOMPLETE UNTIL THE RESOURCES NECESSARY TO CLOSE, PLUG AND ABANDON THE SUBJECT WELL WERE PROVIDED. DURING A ROUTINE INSPECTION BY EPA-AUTHORIZED UIC FIELD INSPECTOR ON OCT 6, 2010, THE SUBJECT WELL WAS FOUND TO BE ACTIVELY INJECTING WITH A TUBING PRESSURE OF 230 POUNDS PER SQUARE INCH (PSIG). DURING A SECOND ROUTINE INSPECTION ON FEB 20, 2012, THE SUBJECT WELL WAS AGAIN ACTIVELY INJECTING, WITH A TUBING PRESSURE OF 120 PSIG. AND THE WELL WAS AGAIN FOUND TO BE ACTIVELY INJECTING DURING A THIRD ROUTINE INSPECTION ON MARCH 13, 2013. WHEN A REVIEW OF EPA'S RECORDS WAS CONDUCTED IT WAS DISCOVERED THAT NO FINANCIAL RESPONSIBILITY COVERAGE WAS EVER PROVIDED TO EPA FOR THE SUBJECT WELL. THE REOCRDS ALSO REVEALED THAT NO FINAL PERMIT WAS ISSUED FOR CONSTRUCTION OF THE SUBJECT WELL, NOR WAS ANY OTHER AUTHORIZATION GIVEN BY EPA FOR THE INJECTION OF FLUIDS INTO THE SUBJECT WELL. 40 CFR 144.11 PROHIBITS ANY UNDERGROUND INJECTION OR CONSTRUCTION OF AN UNDERGROUND INJECTION WELL THAT IS NOT AUTHORIZED BY RULE OR BY AN ISSUED PERMIT. ANY VIOLATION OF A UIC REGULATION ALSO CONSTITUTES A VIOLATION OF THE SDWA AS PROVIDED IN PART C OF THE SDWA. THEREFORE, RESPONDENT IS IN VIOLATION OF PART C OF THE SDWA AND 40 CFR 144.11 FOR UNAUTHORIZED CONSTRUCTION OF AN UNDERGROUND INJECTION WELL AND UNAUTHORIZED UNDERGROUND INJECTION. ON MAY 20, 2014, RESPONDENT PARTICIPATED IN A SHOW CAUSE HEARING WITH REPRESENTATIVES OF EPA TO DISCUSS THE VIOLATION OF THE SDWA AND THE IMPLEMENTING REGS.

Defendants (1)

• WHITNEY OIL & GAS CO., LLC (SB)Named in complaintNamed in settlement

Facilities (1)

• ANNIE SANDEFUR #3 UIC WELL

  LAT/LONG: 37.70843 / -87.31248, OWENSBORO, KY, 42302

  Registry ID: 110058917542

Statutes cited

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

Enforcement conclusions (1)

• WHITNEY OIL & GAS CO., LLCentered 2014-10-23

  Primary law: SDWA

  Federal penalty: $2,000

Timeline (3 milestones)

• 2014-10-23Final Order Issued
• 2014-10-23Complaint Filed/Proposed Order
• 2015-02-12Enforcement Action Data Entered