EPA v. Rio Oil and Gas (Permian) II-Orla, TX-Flyover CAFO-FY2025

Case summary

EPA contracted helicopter flyovers of a portion of the Permian Basin from August 25 through September 12, 2020, to assess emission sources using Optical Gas Imaging (OGI) technology. On August 30th and September 10th, 2020, EPA flew over sites identified as Rio-owned facilities. On December 14, 2020, EPA sent a letter informing Rio of potentially unauthorized emissions from facilities that EPA believed were owned/operated by Rio, along with OGI video captures for the facilities. For each facility, EPA asked Rio to verify ownership, provide current site-specific permit information, and take any necessary corrective action to address unauthorized hydrocarbon emissions. EPA considered information provided by Rio to determine whether violations occurred at the Facilities, and on February 2, 2022, sent a Notice of Violation and Opportunity to Confer (NOVOC) letter to inform Rio of the violations of the Texas State Implementation Plan (SIP), specifically: 30 Tex. Admin. Code106.4(c), 106.6(b) and (c), 106.352(l)(1), 106.512(1), 106.352(1)(5), and 106.110(a).

Defendants (1)

• Rio Oil and Gas (Permian) II, LLCNamed in complaintNamed in settlement

Facilities (7)

• ALEXANDER STATE UNIT 58-2-24 3H & 4H

  SEE LAT/LONG, ORLA, TX, 79770

  Registry ID: 110071084230

• RIO OIL AND GAS - EXPEDITION STATE UNIT 71-67 4H

  SEE LAT/LONG, ORLA, TX, 79772

  Registry ID: 110071084230

• RIO OIL AND GAS - EXPEDITION STATE UNIT 71-67 1H

  SEE LAT/LONG AND COMMENT, PECOS, TX, 79772

  Registry ID: 110070832706

• RIO OIL AND GAS - CONQUISTA 1H

  SEE LAT/LONG, PECOS, TX, 79772

  Registry ID: 110062175934

• RIO OIL AND GAS - ALEXANDER STATE UNIT 2H

  SEE LAT/LONG, ORLA, TX, 79770

  Registry ID: 110071084230

• RIO OIL AND GAS - BERGMAN STATE 38 3H

  SEE LAT/LONG, ORLA, TX, 79770

  Registry ID: 110071084230

• RIO OIL AND GAS - EXPEDITION STATE UNIT 71-67 2H

  SEE LAT/LONG, ORLA, TX, 79770

  Registry ID: 110071084230

Statutes cited

• CAA PARTD — New Source Review Permit Requirements
• CAA 173 — New Source Review Permit Requirements

Enforcement conclusions (1)

• Rio Oil and Gas (Permian) II-Orla, TX-Flyover CAFO-FY2025entered 2024-09-26

  Primary law: CAA

  Federal penalty: $672,000

Timeline (3 milestones)

• 2024-09-26Complaint Filed/Proposed Order
• 2024-09-26Final Order Issued
• 2024-10-07Enforcement Action Data Entered