Document 4JypLMRgn1LgQzQy3k4VoOrQV
UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGIONS
1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102
CERTIFIED MAIL #:
May 26, 2023 7016 3010 DODO 4985 1845
Mr. Mark Helmer and Ms. Jean Helmer Helmer Oil Corp. P.O. Box 1325 Pawhuska, OK 74056
Re: Notice of Proposed Administrative Order and Opportunity to Request a Hearing Well Nuinber: SWD 3 EPA Inventory ID: OS3275000 Docket Number: SDWA-06-2023-1116
Dear Mr. Helmer and Ms. Helmer:
Enclosed is a Proposed Administrative Order (Proposed Order) that the United States Environmental
Protection Agency (EPA) intends to issue to Helmer Oil Corp. for violation of the Safe Drinking Water
Act (SOWA). The violation was identified based on our review of files that we maintain on the referenced
injection well. The violation was for failing to successfully demonstrate mechanical integrity and for
maintaining the injection well in a manner that could allow the movement of fluid that contains
contaminants into an Underground Source of Drinking Water. The Proposed Order does not assess a
monetary penalty; however, it does require compliance with SOWA requirements. The Proposed Order
requires the referenced injection well to comply with certain regulations. EPA requests that you
immediately confirm receipt of this e-mail and the attached Order by a response e-mail to Mr. David
Aguinaga at aguinaga.david@epa.gov.
You have the right to request a hearing regarding the violation alleged in the Proposed Order. Whether or not you request a hearing, EPA invites you to informally confer with EPA. If you choose not to request a hearing, EPA will review any comments on the Proposed Order received from you and the public and determine whether the Proposed Order will be issued as a Final Administrative Order. In the event you choose not to request a hearing within thirty (30) days of your receipt of this Proposed Order, and no public comments are received, EPA shall issue a Final Administrative Order regarding the viqlation and requiring compliance with SOWA reguiations
Also enclosed is an " Information Sheet" relating to the Small Business Regulatory Enforcement Fairness Act and a "Notice of Registrant' s Duty to Disclose" relating to the disclosure of environmental legal _ proceedings to the Securities and Exchange Commission. EPA is committed to ensuring compliance with the requirements of the Underground Injection Control program, and my staff will assist you in any way possible.
Re: Helmer Oil Corp.
2
SDWA-06-2023-1116
If you have any questions or wish to discuss the possibility of a settlement of this matter, please contact David Aguinaga, ofmy staff, at (214) 665-6439.
Sincerely,
[)lgrt.~,lg~ b, CH(lrt'L SCAGUI 0.!:2'1JU0S.l609.UJ9 .OS'OO'
Cheryl T. Seager, Director Enforcement and Compliance Assurance Division
Enclosures
ec: Mr. Craig Walker, Osage Nation Dept. of Natural Resources, Environmental Supervisor c m w a l k e r@ o s a g e n a t i o n - n s n . g o v
Julie Anderson, BIA Osage Agency Acting Superintendent j u Iie.anderson@ b ia .gov
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UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
REGION 6 Dallas, Texas 75270
. 23 JUN - I AM JO: 27
In the Matter of Helmer Oil Corp. Respondent.
if'.ECi10 i'l/1l HEARING CLERK
EPA REGION VI
Docket No. SDWA-06-2023-1116 .
PROPOSED ADMINISTRATIVE ORDER
STATUTORY AUTHORITY The following findings are made, and Proposed Administrative Order issued, under the authority vested in the Administrator of the U.S. Environmental Protection Agency (EPA) by Section 1423(c) of the Safe Drinking Water Act (the Act), 42 U.S.C. 300h-2(c). The authority to issue this Proposed Administrative Order has been delegated by the Administrator to the Regional Administrator of EPA Region 6 who further delegated such authority to the Director of the Enforcement and Compliance Assurance Division. The EPA has primary enforcement responsibility for underground injection within the meaning of Section 1422(c) of the Act, 42 U.S.C. 300h- l(c), to ensure that owners or operators of Class II injection wells within Osage County, Oklahoma, comply with the requirements of the Act.
FINDINGS I. Helmer Oil Corp. (Respondent) is a Corporation doing business in the State of Oklahoma and, therefore, is a "person," within the meaning of Section 1401(12) of the Act, 42 U.S.C. 300[(12). 2. At all times relevant to the violations alleged herein, Respondent owned or operated an "injection well" which is a "Class II well" as those terms are defined at 40 C.F.R 147.2902.
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The injection well is located in the Northeast Quarter of Section 16, Township 25 North, Range 08 East, Osage County, Oklahoma, designated as injection Well No. SWD 3 and EPA Inventory Number OS3275000 (the injection well). 3. Respondent is subject to underground injection control (UIC) program requirements set forth at 40 C.F.R. Part 147, Subpart GGG, which are authorized under Section 1421 of the Act, 42 U.S.C. 300h. 4. Regulations at 40 C.F.R. 147.2903(a) require that any underground injection is prohibited except as authorized by rule or authorized by a permit issued under the UIC program. The construction or operation of any injection well required to have a permit is prohibited until the permit has been issued. The term "permit" is defined at 40 C.F.R. 147.2902. 5. Regulations at 40 C.F.R. l 47.2903(b) provide that no owner or operator shall construct, operate, maintain, convert, plug, or abandon any injection well, or conduct any other injection activity, in a manner that allows the movement of fluid containing any contaminant into underground sources of drinking water, if the presence of that contaminant may cause the violation ofany primary drinking water regulation under 40 C.F.R. Part 142 or may otherwise adversely affect the health of persons. 6. Regulations at 40 C.F.R. 147.2909 provide that existing injection wells (wells authorized by the Bureau of Indian Affairs and constructed or completed on or before the effective date of the Osage UIC program) are authorized by rule (ABR). Owners or operators of injection wells _authorized by rule must comply with the provisions of40 C.F.R. 147.2903, 147.2905, 147.2907, and 147.2910 through 147.2915. 7. Regulations at 40 C.F.R. 147.2912(a) require each ABR injection well to have mechanical integrity. An injection well has mechanical integrity if there are no significant leaks in the
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casing, tubing, or packer and there is no significant fluid movement into the "Underground Source of Drinking Water" (USDW) through vertical channels adjacent to the wellbore. The term USDW is defined at 40 C.F.R. 147.2902. 8. The injection well is authorized by rule in accordance with 40 C.F.R. 147.2909. 9. On May 21, 2020, October 28, 2022, and March I6, 2023, the injection well failed mechanical integrity tests. To date, the injection well has not successfully demonstrated mechanical integrity. 10. Therefore, Respondent violated regulations set forth at 40 C.F.R. 147.2903(6), 147.2909, and 147.2912(a) by maintaining the injection well in a manner that could allow the movement of fluid that contains contaminants into an USDW and by failing to successfully demonstrate mechanical integrity.
SECTION 1423(c) PROPOSED ~OMPLIANCE ORDER 11. Based on the foregoing findings, and pursuant to the authority of Section 1423(c) of the Act, 42 U.S.C. 300h-2(c), EPA Region 6 hereby proposes to order Respondent to:
a. Cease use of the injection well for the unauthorized underground injection of fluids, and b. Take one of the following actions:
i. Repair the injection well and successfully demonstrate mechanical integrity according to regulations at 40 C.F.R. 147.2912(a) w ithin ninety (90) days after the effective date of a Final Administrative Order; or
11. Complete proper plugging and abandonment in accordance with 40 C.F.R. 147.2905, within ninety (90) days after the effective date of a Final Administrative Order; or
Helmer Oil Corp. SOWA-06-2023-1116
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111. Convert the injection well to production use within ninety (90) days after the effective date ofa Final Administrative Order.
12. Submit copies of completed plugging reports or completed work reports showing conversion to production and BIA Osage Agency Forms 139 within 120 days after the effective date of a Final Administrative Order to:
David Aguinaga aguinaga.david@epa.gov U.S. Environmental Protection Agency Water Enforcement Branch (ECDWE)
NOTICE OF OPPORTUNITY TO REQUEST A HEARING 13. Respondent may request a hearing to contest the issuance of the Final Administrative Order, pursuant to Section 1423(c)(3)(A) of the Act, 42 U.S.C. 300h-2(c)(3)(A). Such hearing shall not be subject to section 554 or 556 ofTitle 5 but shall provide a reasonable opportunity to be heard and to present evidence. 14. A request for a hearing must be made within thirty (30) days of the date of receipt of this Proposed Administrative Order. If you would like to request a hearing on this Proposed Administrative Order, submit the hearing request to the Regional Hearing Clerk (6ORC); U.S. Environmental Protection Agency, Region 6; 1201 Elm Street, Suite 500; Dallas, Texas 752702102. 15. Should a hearing be requested, members of the public who commented on the issuance of this Proposed Administrative Order during the public comment period would have a right to be heard and present evidence at a hearing under Section 1423(c)(3)(C) of the Act, 42 U.S.C. 300h-2(c)(3)(C).
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GENERAL PROVISIONS 16. Issuance of the Final Administrative Order does not constitute a waiver, suspension, or modification of the requirements of40 C.F.R. Parts 144, 146, and 147, Subpart GGG, which remain in full force and effect. 17. fssuance of the Final Administrative Order is not an election by EPA to forego any civil or criminal action otherwise authorized under the Act. 18. Violation of the terms of the Final Administrative Order after its effective date or date of final judgment as described in Section 1423(c)(6) of the Act, 42 U.S.C. 300h-2(c)(6), may subject Respondent to further enforcement action, including a civil action for enforcement ofthe Final Administrative Order under Section 1423(b) of the Act, 42 U.S.C. 300h-2(b), and civil and criminal penalties for violations of the compliance terms of the Final Administrative Order under Section 1423(b)(I) and (2) of the Act, 42 U.S.C. 300h-2(b)(l) and (2).
TAX IDENTIFICATION 19. For purposes of the identification requirement in Section 162(f)(2)(A)(ii) of the Internal Revenue Code, 26 U.S.C. 162(f)(2)(A)(ii), and 26 C.F.R. l.162-21(b)(2), performance of Paragraphs 11 and 12 is restitution, remediation, or required to come into compliance with the law.
SETTLEMENT 20. EPA encourages all parties against whom an administrative order is proposed to pursue the possibility of settlement through informal meetings with EPA. Regardless of whether a formal hearing is requested, Respondent may confer informally with EPA about the alleged violations. Respondent may wish to appear at any informal conference or formal hearing personally, by counsel or other representative, or both. To request an informal conference on the matters
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described in this Proposed Administrative Order, please contact David Aguinaga (214) 6656439.
21. If this action does not proceed to a formal hearing, EPA shall issue a Final Administrative Order.
EFFECTIVE DATE
22. The Final Administrative Order becomes effective thirty (30) days after issuance unless an appeal is taken pursuant to Section 1423(c)(6) of the Act, 42 U.S.C. 300h-2(c)(6).
May 26, 2023 Date
Digitally signed by CHERYL SEAGER Date: 2023.05.26 09:40:48
-osoo Cheryl T. Seager, Director Enforcement and
Compliance Assurance Division
Docket No.: SDWA-06-2023-1116 Page 1 of 1
CERTIFICATE OF SERVICE
I certify that the foregoing Proposed Administrative Order was sent to the following persons, in the manner specified, on the date below:
Signed Original E-mailed:
Regional Hearing C lerk (R6ORC) U.S. EPA, Region 6 120 I Elm Street, Suite 500 Dallas, TX 75270 vaughn.lorena@epa.gov
File Stamped Copy Transmitted via Certified Mail #: 7016 3010 0000 4985 1845
Mr. Mark and Jean Helmer Helmer Oil Corp. P.O. Box I325 Pawhuska, OK 74056
Electronic Copy:
Kristine Talbot U.S. EPA, Region 6 120 l Elm Street, Suite 500 Dallas, TX 75270 talbot.kristine(@.epa.gov
Richard Winlock, Acting Superintendent Bureau of Indian Affairs, Osage Agency P.O. Box 1539 Pawhuska, OK 74056 Richard .Win lock(a),bia.gov
Craig Walker, Environmental Supervisor Osage Nation Department of Natural Resources I00 W. Main, Suite 304 Pawhuska, OK 74056 crnwalker@osagenation-nsn.gov
Dated: June 1. 2023
Signed David Aguinaga