EPA v. GULFPORT ENERGY

Case summary

Gulfport operates oil and natural gas production wells in eastern Ohio. The wells produce a mixture of natural gas, light crude oil (known as condensate), and naturally-occurring water (known as produced water). Several wells are typically co-located on a well pad, which is a collection of wells and production equipment, including storage vessels for containing condensate and produced water. VOC emissions from storage vessels can be significant and must be controlled by routing the vapors from the storage vessel headspace to a control device such as a flare or combuster. In August 2015, EPA inspected a subset of Gulfport's well pads and observed systemic deficiencies in Gulfport's vapor capture and control systems, including continuously emitting tank thief hatches and pressure relief devices, and unlit flares and combustors. In December 2016, EPA issued to Gulfport a Finding of Violation, alleging violations of NSPS Subpart OOOO (Crude Oil and Natural Gas Production, Transmission, and Distribution) because Gulfport failed to meet certain cover, closed vent system, and control device requirements; failed to design its closed vent systems to route all storage vessel emissions to a control device; failed to demonstrate initial compliance with Subpart OOOO requirements; and failed to operate its combustion control devices with a continuously burning pilot flame. In March 2019, EPA issued to Gulfport a NOV-FOV citing the permit provisions that corresponded to the Subpart OOOO violations cited in the December 2016 FOV. The CD requires injunctive relief which requires Gulfport to conduct analyses at certain higher-producing well pads to ensure that its vapor control systems are adequately designed and sized to control VOC emissions as required by 40 C.F.R. ? 60.6395; to implement a Directed Inspection and Maintenance (DI&M) Program to prevent emissions from components such as thief hatches and pressure relief devices on the storage vessels as required by 40 C.F.R. ?? 60.5411 and 60.5412; and to monitor tank pressure to minimize potential for leaks. For all well pads under the settlement, Gulfport must ensure that equipment is operated in accordance with manufacturer specifications and good air pollution control practices; implement the DI&M Program; and monitor tank pressure. Gulfport has agreed to implement mitigation as a condition of settlement. The mitigation includes replication of the injunctive relief provisions at an additional subset of well pads. Gulfport has agreed to pay a $1.7 million penalty to resolve the violations. Upon implementation of injunctive relief and mitigation at the 17 well pads under this settlement, VOC emissions will be reduced by approximately 313 tons per year (TPY). Gulfport is estimated to spend approximately $1.5 million on injunctive relief and $500,000 on mitigation.

Defendants (1)

• GULFPORT ENERGYNamed in complaintNamed in settlement

Facilities (22)

• GULFPORT ENERGY - FAMILY WELL PAD

  65350 WILSON RD, BARNESVILLE, OH, 43713

  Registry ID: 110064745245

• GULFPORT ENERGY CORPORATION - WESLEY WELL PAD

  36381 ROCK RIVER RD, BARNESVILLE, OH, 43713

  Registry ID: 110064845618

• GULFPORT ENERGY CORPORATION - MCCORT WELL PAD

  65800 MT. OLIVETT ROAD, BARNESVILLE, OH, 43713

  Registry ID: 110064845155

• GULFPORT ENERGY CORPORATION - SANDRA WELL PAD

  MCMILLAN RD, BETHESDA, OH, 43719

  Registry ID: 110070005074

• GULFPORT APPALACHIA, LLC- COUNTY LINE II - GUSTINA-BEAR

  34011 CADIZ-PIEDMONT RD, OHIO, OH, 43977

  Registry ID: 110061069855

• GULFPORT APPALACHIA, LLC - MILLIKEN

  31255 CADIZ-PIEDMONT RD, FREEPORT, OH, 43973

  Registry ID: 110064026511

• GULFPORT APPALACHIA, LLC - BK STEPHENS

  75501 TYSON ROAD, CADIZ, OH, 43907

  Registry ID: 110064024274

• GULFPORT APPALACHIA, LLC - SHUGERT 12 WELL PAD

  65800 MT. OLIVETT ROAD, BARNESVILLE, OH, 43713

  Registry ID: 110064845155

• GULFPORT APPALACHIA, LLC - RYSER #1-25H WELL PAD

  77100 SCOTT HILL ROAD, OHIO, OH, 43977

  Registry ID: 110064025692

• GULFPORT APPALACHIA, LLC - CLAY WELL PAD

  31501 MORRISON ROAD, FREEPORT, OH, 43973

  Registry ID: 110063884202

• GULFPORT APPALACHIA, LLC - CLAY WELL PAD

  31501 MORRISON ROAD, FREEPORT, OH, 43973

  Registry ID: 110063884202

• GULFPORT ENERGY CORPORATION - HAYES WELL PAD

  MT OLIVETT NE RD, BARNESVILLE, OH, 43713

  Registry ID: 110070005073

• GULFPORT APPALACHIA, LLC - BOY SCOUT WELL PAD

  79900 ADAMS RD, TIPPECANOE, OH, 44699

  Registry ID: 110055583462

• GULFPORT APPALACHIA, LLC - MILLIKEN

  31255 CADIZ-PIEDMONT RD, FREEPORT, OH, 43973

  Registry ID: 110064026511

• GULFPORT APPALACHIA, LLC - SLOPE CREEK II - INHERST

  35215 ROCK RIVER RD, SOMERSET, TOWNSHIP OF, OH, 43747

  Registry ID: 110070005072

• …and 7 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)

• GULFPORT ENERGYentered 2020-09-01

  Primary law: CAA

  Federal penalty: $1,700,000

Timeline (6 milestones)

• 2018-06-20Referred To Dept Of Justice
• 2018-06-27Enforcement Action Data Entered
• 2019-04-30Supplemental Referral-Other
• 2020-01-22Complaint Filed With Court
• 2020-01-22Final Order Lodged
• 2020-09-01Final Order Entered