EPA v. GRACE PETROLEUM CORPORATION

Case summary

NATURE OF CASE THIS IS A PROPOSED CIVIL ACTION UNDER SECTION 1423(B)(1) OF THE SAFE DRINKING WATER ACT (SDWA), 42 U.S.C. 300H-2(B) (1), FOR VIOLATIONS OF THE UNDERGROUND INJECTION CONTROL (UIC) PROGRAM REGULATIONS PROMULGATED IN 40 C.F.R. PART 144. THE DEFENDANT IN THIS CASE, THE GRACE PETROLEUM CORPORATION, IS THE OWNER/OPERATOR OF THREE SALT WATER DISPOSAL WELLS IN THE POPLAR FEILD, ROOSEVELT COUNTY, MONTANA. THIS PROPOSED ACTION SEEKS CIVIL PENALTIES FOR THE DEFENDANT'S UNAUTHORIZED USE OF THESE WELLS IN VIOLATION OF EPA REG- ULATIONS. CAUSE OF ACTION UNDER THE UIC PROGRAM REGULATIONS, ALL UNDERGROUND INJECTION OF FLUIDS IS PROHIBITED UNLESS AUTHORIZED BY RULE OR PERMIT. GRACE PETROLEUM IS THE OWNER/OPERATOR OF AT LEAST THREE INJECTION WELLS IN THE POPLAR FIELDS, ROOSEVELT COUNTY, MONTANA. BETWEEN JULY 31, 1984, AND SEPTEMBER 28, 1984, THESE WELLS, WERE ENGAGED IN THE UNDER-GROUND INJECTION OF FLUIDS WITHOUT THE REQUIRED AUTHORIZATION. THIS IS A VIOLATION EPA'S 40 C.F.R. PART 144 REGULATIONS. PROPOSED REMEDY SECTION 1423(B)(2) OF THE SDWA, 42 U.S.C. 300H-2(B)(2), PROVIDES FOR ...(A)... A CIVIL PENALTY OF NOT MORE THAN $5,000 FOR EACH DAY OF SUCH VIOLATION, OR (B) IF SUCH VIOLATION WAS WILLFUL... ?A FINE OF? ... NOT MORE THAN $10,000 FOR EACH DAY OF VIOLATION. WE ARE REQUESTING THE MAXIMUM MONETARY PENALTY FOR THE VIOLATION ALLEGED. BASED ON 59 DAYS OF VIOLATION, THE MAXIMUM PENALTY/FINE WOULD BE IN BETWEEN $885,000 AND $1,770,000. ISSUES OF NATIONAL OR PRECEDENTIAL SIGNIFICANCE THIS PROPOSED ACTION PRESENTS SEVERAL ISSUES OF NATIONAL OR PRECEDENTIAL SIGNIFICANCE. 1. IT IS THE FIRST UIC REFERRAL. SINCE THERE ARE NO PRIOR CASES, THERE IS NO PRIOR INTERPRETATION OF EPA'S 40 C.F.R. PART 144 REGULATIONS. ANY INTERPRETATION BY THE COURT WOULD BE PRECEDENTIAL. 2. THIS CASE COULD ALSO ESTABLISH LEGAL PRECEDENT FOR CONSTRUING THE WILLFUL VIOLATION PROVISION OF SECTION 1423(B)(2) OF THE ACT, TO BE A CRIMINAL PROHIBITION.

Defendants (2)

• GRACE PETROLEUM CORPORATIONNamed in complaintNamed in settlement
• W.R. GRACE AND COMPANYNamed in complaintNamed in settlement

Facilities (3)

• GRACE PETROLEUM CORPORATION

  SE1/4 SEC.10 T28N R51E, POPLAR, MT, 59255

  Registry ID: 110010668660

• GRACE PETROLEUM CORP. - GOINGS

  SW1/4 SEC.11 T29N R50E, POPLAR, MT, 59255

  Registry ID: 110010668679

• MT20009-00009 00009 BUCK ELK 2 P+A

  NW1/4 SEC.7 T29N R51E, POPLAR, MT, 59255

  Registry ID: 110010668688

Statutes cited

• SDWA 1423 — Safe Drinking Water Act

Enforcement conclusions (1)

• GRACE PETROLEUM CORPORATIONentered 1988-03-10

  Primary law: SDWA

  Federal penalty: $55,300

Timeline (8 milestones)

• 1985-03-25Referred To Headquarters
• 1985-04-26Referred To Dept Of Justice
• 1985-12-20Referred TO U.S. Attorney
• 1986-01-02Complaint Filed With Court
• 1988-03-10Final Order Lodged
• 1988-03-10Final Order Entered
• 1988-03-10Concluded
• 1988-03-11Enforcement Action Closed