EPA v. CHESAPEAKE EXPLORATION LLC

Case summary

The consent decree addresses Clean Air Act (CAA) violations by Chesapeake, specifically, the alleged violations include the requirements of the Standards of Performance for Crude Oil and Natural Gas Production, Transmission, and Distribution found at 40 C.F.R. Part 60, Subpart OOOO (?NSPS Subpart OOOO?), the Standards of Performance for Crude Oil and Natural Gas Production, Transmission, and Distribution for Which Construction, Modification, or Reconstruction Commenced After September 18, 2015 found in 40 C.F.R. Part 60, Subpart OOOOa (?Subpart OOOOa?), and the federally-enforceable general permits to install and operate (PTIOs). On December 21, 2016, EPA issued a Finding of Violation (FOV) for violations of NSPS OOOO for 15 well pads. The NSPS Subpart OOOO violations include the following: 1. failure to ensure that the covers on its storage vessels meet certain requirements, including that the covers and all openings shall form a continuous impermeable barrier or the entire surface area of the liquid in the vessel and that each cover opening shall be secured in a closed, sealed position except when certain activities were ongoing 2. failure to design its closed vent systems to route all gases, vapors and fumes emitted from the material in the storage vessels to a control device, and to design and operate closed vent systems with no detectable emissions, as determined using olfactory, visual, and auditory inspections 3. failure to demonstrate initial compliance at its storage vessel affected facilities EPA issued a second Notice and Finding of Violation (NOV/FOV) on December 20, 2018 This NOV/FOV alleged violations of the provisions above at an additional set of well pads, incorporated violations of NSPS Subpart OOOOa for newer well pads, alleged violations of the permit conditions that correspond to the NSPS Subpart OOOO provisions, and allege violations of the leak detection and repair provisions required by Chesapeake?s federally enforceable air permits. These violations occurred at no fewer than 159 well pads over various time frames, according to the individual well pad?s date of construction. The violations resulted in emissions of VOC from the well pads that should have been otherwise captured and controlled per NSPS and permit requirements. In October 2018, Chesapeake sold all its Ohio well pad facilities that are the subject of this matter to Encino Energy (d/b/a EAP Ohio, LLC). In June 28, 2020, Chesapeake filed for bankruptcy under Chapter 11 of Title 11 of the United States Code, ?? 101-1532. As part of the bankruptcy settlement, the consent decree requires Chesapeake to pay a civil penalty of $ 1.2 million.

Defendants (1)

• CHESAPEAKE EXPLORATION LLCNamed in complaintNamed in settlement

Facilities (28)

• CHESAPEAKE EXPLORATION - JEFFERY 2-15-5 PAD

  MARBLE ROAD NE, AUGUSTA, TOWNSHIP OF, OH, 44607

  Registry ID: 110064521879

• CHESAPEAKE EXPORATION LLC LESLIE 9-14-4 PAD

  MELODY ROAD, AUGUSTA, TOWNSHIP OF, OH, 44651

  Registry ID: 110064524572

• CHESAPEAKE EXPLORATION - MILLS 1-15-5 PAD

  MARBLE ROAD NE, AUGUSTA, TOWNSHIP OF, OH, 44607

  Registry ID: 110064522388

• EOG RESOURCES, INC. - PITTS 22-14-4 PAD

  NATURE RD SE (CARROLL RD), SUMMITVILLE, OH, 43962

  Registry ID: 110063892550

• CHESAPEAKE EXPLORATION LLC - D&B KIBLER 29-15-4 PAD

  LINCOLN HWY - US-30W/OH-9S, HANOVERTON, OH, 44423

  Registry ID: 110064507029

• CHESAPEAKE EXPLORATION LLC - WEAVER 23-15-3 PAD

  OHIO 558, LEETONIA, OH, 44431

  Registry ID: 110064507083

• CHESAPEAKE EXPLORATION LLC - G SALTSMAN 28-14-4 PAD

  AURORA RD NE, MECHANICSTOWN, OH, 44651

  Registry ID: 110064507010

• CHESAPEAKE EXPLORATION - MRUGALA 6-14-3 PAD

  COUNTY HIGHWAY 411, LISBON, OH, 44432

  Registry ID: 110064525376

• CHESAPEAKE EXPLORATION LLC - PIDGEON A 22-15-5 PAD

  AURORA ROAD NE, AUGUSTA, TOWNSHIP OF, OH, 44651

  Registry ID: 110064518598

• EXPAND ENERGY CORPORATION / MAIN CAMPUS

  6100 N WESTERN AVE, OKLAHOMA CITY, OK, 73118

  Registry ID: 110042260219

• CHESAPEAKE EXPLORATION LLC - ALTENHOF 10-15-4 PAD

  NEW GARDEN AVE (OH-172), HANOVER, TOWNSHIP OF, OH, 44625

  Registry ID: 110064507074

• CHESAPEAKE EXPLORATION LLC - HALEY 8-14-4 PAD

  TOWNSHIP HIGHWAY 263, AUGUSTA, TOWNSHIP OF, OH, 44625

  Registry ID: 110064506994

• CHESAPEAKE EXPLORATION LLC - ROY D 31-15-3 PAD

  WINONA ROAD (TOWNSHIP HWY 806), BUTLER, TOWNSHIP OF, OH, 44460

  Registry ID: 110064588897

• CHESAPEAKE EXPLORATION LLC - CONIGLIO 7-14-4 PAD

  TWP HIGHWAY 262, AUGUSTA, TOWNSHIP OF, OH, 44607

  Registry ID: 110064507047

• CHESAPEAKE EXPLORATION - JAN PAUL FARMS 17-15-4 PAD

  TOWNSHIP HIGHWAY 837, EAST ROCHESTER, OH, 44625

  Registry ID: 110064527187

• …and 13 more

Statutes cited

• CAA 110 — Implementation Plan for National Primary and Secondary Ambient Air Quality Standards
• CAA 111 — New Source Performance Standards

Enforcement conclusions (1)

• CHESAPEAKE EXPLORATION LLC (R5 LEAD)(NC)entered 2021-03-08

  Primary law: CAA

  Federal penalty: $1,200,000

Timeline (6 milestones)

• 2016-09-21Referred To Dept Of Justice
• 2016-09-23Enforcement Action Data Entered
• 2019-06-18Supplemental Referral-Adding parties, counts
• 2021-01-07Final Order Lodged
• 2021-01-07Complaint Filed With Court
• 2021-03-08Final Order Entered