EPA v. Lease Management, Inc. (SDWA-05-2019-0004) - CAFO

Case summary

Lease Management, Inc. (Respondent) failed to comply with requirements for its 12 Underground Injection Control (UIC) permits (the Permits) and federal regulations at its Class II disposal injection well facilities in Arenac, Mecosta, Missaukee, Montcalm, Ogemaw, and Osceola counties, Michigan. EPA filed this Consent Agreement and Final Order (CAFO) under Section 1423(c)(2) of the Safe Drinking Water Act (SDWA), 42 U.S.C. ?300-2h. The CAFO requires that Respondent pay a civil penalty of $100,000 and meet compliance requirements to improve the operation, monitoring, and record keeping practices of its injection wells. The CAFO includes stipulated penalties if the Respondent violates the agreed compliance requirements. In determining this penalty amount, EPA considered (i) the seriousness of the violations, (ii) the economic benefit resulting from the violations, (iii) any history of such violations, (iv) any good faith efforts to comply with the applicable requirements, (v) the economic impact of the penalty, and (vi) such other matters as justice may require. Based upon the facts alleged in this CAFO, and the above criteria, EPA determined the appropriate civil penalty to settle this action was $100,000. The Respondent incurred penalties for violating the Permits and the UIC regulations at 40 C.F.R. Part 144 from February 2013 to January 2019 by 1) injecting fluids from unauthorized sources, 2) failing to notify and obtain EPA's approval of injection fluid changes, 3) failing to submit chemical analyses of new injection fluids, 4) failing to maintain required records of monitoring information, 5) failing to submit quarterly reports of annulus liquid loss, 6) failing to use proper or authorized signatories on documents submitted to EPA, 7) failing to comply with operating requirements to maintain positive annulus pressure, 8) failing to submit annual gauge calibration certificates, 9) failing to submit monthly monitoring reports, 10) failing to monitor annulus pressure, and 11) failing to monitor injection volume and flow rate.

Defendants (1)

• Lease Management, inc.Named in complaintNamed in settlement

Facilities (1)

• LEASE MANAGEMENT

  503 INDUSTRIAL AVENUE, MT PLEASANT, MI, 48804

  Registry ID: 110057621471

Statutes cited

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

Enforcement conclusions (1)

• Lease Management, Inc. (SDWA-05-2019-0004)entered 2019-09-30

  Primary law: SDWA

  Federal penalty: $100,000

Timeline (4 milestones)

• 2019-09-30Final Order Issued
• 2019-09-30Complaint Filed/Proposed Order
• 2019-10-10Enforcement Action Data Entered
• 2023-05-23Enforcement Action Closed