Document Rj58zZQnEnV96Da5ZjXrwnvaa

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 June 28, 2022 TRANSMITTED VIA E-MAIL Mr. Scott Ducharme Perfonnance Petroleum Co. P.O. Box628 Barnsdall, OK 74002 sducharme@ppcooil.com Re: Final Administrative Order Well Number: 05-1 EPA Inventory ID: OS6161000 Docket Number: SOWA-06-2022-1 I 15 Dear Mr. Ducharme: Attached is a Final Administrative Order (Final Order) issued by the United States Environmental Protection Agency (EPA), to Performance Petroleum Co. (Respondent) for violation of the Safe Drinking Water Act (SOWA). The Final Order requires the Respondent to comply with the regulatory requirements specified in the Final Order. EPA requests that the Respondent immediately confirm receipt of this e-mail and the attached Final Order by a response e-mail to rudolph.matthew(@,epa.gov. The violation of the SOWA was identified through a review of files that EPA maintains on the referenced injection well. The violatjon was for failing to successfully demonstrate mechanical integrity and maintaining the injection well in a manner that could allow the movement of fluid that contains contaminants into an underground source of drinking water (USDW). The Final Order does not assess a monetary penalty; however, it does require compliance with SOWA requirements and specifies deadlines for compliance. The Final Order requires the Respondent to comply with certain SOWA regulatory requirements. Please be aware that failure to comply with the Final Order may subject the Respondent, to additional enforcement action by EPA, including the initiation of legal proceedings to seek monetary penalties. The effective date ofthe Final Order is 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). The SOWA provides that you may file an appeal of the Final Order with the United States District Court for the District of Columbia or the district in which the violations occurred. Such appeal must be filed within 30 days after the Final Order is issued. Ifyou file an appeal, you must simultaneously send a copy of the appeal by certified mail to the Administrator of the Environmental Protection Agency and to the United States Attorney General. 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 ofenvironmental legal proceedings to the Securities and Exchange Commission. The E PA is committed to ensuring compliance Re: Perfonnance Petroleum Co. 2 SDWA-06-2022-11 l 5 with the requirements of the Underground lnjection Control program, and my staff will assist you in any way possible. If you have any questions regarding this matter, please contact Matthew Rudolph at (214) 665-6434. Sincerely, Oig.it.!tySigrwd byBRYANT SMAlllY ON; c--4.JS, oU.S. Govemmrnt. O\l'"'E.f'IYironmmtal Protectfon Agency, cn BRl'AHTS.'ltlAWY, ~9.23 42.19100100.100.1 .1 680(H 0036.5555 ~t~ 20221)6.28 11::S1;01 -OS'OO' For Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Attachments ec: Ms. Jann Hayman, Osage Nation Department ofNatural Resources Director jannhavman@osagenation-nsn .gov Ms. Robin Phillips, Osage Agency BIA Superintendent robin.phillips@bia.gov UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 Dallas, Texas 75270 ..... - -:::."\ : ;I --> c.:,; In the Matter of Performance Petroleum Co. Respondent. ,~,.: ,- ' - ... \ - ' - -- ~ .. ,_. --,l\ l !' \:i CLE EPA ,~cGI I VI Docket No. SDWA-06-2022-1115 FINAL ADMINISTRATIVE ORDER STATUTORY AUTHORITY The following findings are made, and Final 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 Final 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 If injection wells within Osage County, Oklahoma, comply with the requirements of the Act. FINDINGS I. Performance Petroleum Co. (Respondent) is a company 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. 300f(l2). 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. The injection well is located in the SW Quarter of Section 35, Township 26 North, Range 11 East, Osage County, Oklahoma, designated as Well No. 05-1 and EPA Inventory Number OS6 l 6 I000 (the injection well). SOWA-06-2022-1115 Page 2 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 an EPA UIC 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. l47.2903(b) pro.vide 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. 147.29 I6 require the owner or operator of a new Class II injection well, or any other Class IT well required to have an EPA UIC permit in the Osage Mineral Reserve, to comply with the requirements of 40 C.F.R. 147.2903, 147.2907, and 147.2918 through 147.2928. 7. On June 6, 2008, EPA issued UIC Permit 06S1261 P6161 (the permit) for the injection well. 8. On June 6, 2008, the permit became effective. 9. Regulations at 40 C.F.R. 147.2925(a) require the permittee to comply with all permit conditions, except as authorized by an.emergency permit (described at 40 C F.R. 147.2906). 10. Regulations at 40 C.F.R. 147.2920(b) and Part 1.8 of the UIC permit require that the injection well successfully demonstrate mechanical integrity within one year of the date of the effective date of the permit and every five years thereafter. SOWA-06-2022-11 l5 Page 3 11. On June 6, 2013, the injection well was due for its mechanical integrity test (MIT) and Respondent failed to conduct it. To date, the injection well has not successfully demonstrated mechanical integrity. 12. On April 11, 2018, EPA mailed a letter to Respondent notifying Respondent that EPA determined that the injection well does not have mechanical integrity. The letter informed Respondent of the potential violations of the Act and the UIC program and that EPA can pursue enforcement actions in response to these violations. The letter also provided the Respondent an opportunity to confer with the EPA in regard to this matter. 13. Therefore, Respondent violated regulations set forth at 40 C.F.R. 147.2903(b), l 47.2920(b) and Part J.B. of the permit by maintaining the injection well in a manner that could allow the movement of fluid that contains contaminants into an underground source ofdrinking water (USDW) and by failing to successfully demonstrate mechanical integrity. 14. Pursuant to Section 1423(c)(3)(A) of the Act, 42 U.S.C. 300h-2(c)(3)(A), on May 19, 2022, EPA issued a Proposed Administrative Order to Respondent and provided Respondent an opportunity to request a hearing on the Proposed Administrative Order. 15. On May 20, 2022, EPA provided public notice of its proposal to issue an order for compliance in this matter in accordance with Section 1423(c)(3)(8) of the Act, 42 U.S.C. 300h-2(c)(3)(8). 16. Respondent did not request a hearing and EPA did not receive any public comments on the Proposed Administrative Order. SECTION 1423(c) COMPLIANCE ORDER 17. Based on the foregoing findings, EPA Region 6 hereby orders Respondent to: a. Cease use of the injection well for the unauthorized underground injection ?f fluids, and SDWA-06-2022-1115 Page 4 b. Take one of the following actions: 1. Repair the injection well and successfully demonstrate mechanical integrity according to regulations at 40 C.F.R. 147.2920 and Part I.B. of the permit within ninety (90) days after the effective date of this Final Administrative Order; or ii. Complete proper plugging and abandonment in accordance with 40 C.F.R. 147.2905, within ninety (90) days after the effective date of this Final Administrative Order; or 111. Convert the injection well to production use within thirty (30) days after the effective date of this Final Administrative Order. 18. Submit copies of completed plugging reports or completed work reports showing conversion to production and BIA Osage Agency Forms 139 within one-hundred twenty (120) days after the effective date of this Final Administrative Order to: Matthew Rudolph rudolph.matthew@epa.gov U.S. Environmental Protection Agency Water Enforcement Branch (ECDWE) 120 I Elm Street, Suite 500 Dallas, TX 75270-2102 GENERAL PROVISIONS 19. Respondent may appeal this Final Administrative Order to Federal District Court pursuant to Section 1423(c)(6) of the Act, 42 U.S.C. 300h-2(c)(6). 20. This Final Administrative Order does not constitute a waiver, suspension, or modification of the requirements of 40 C.F.R. Parts 144, 146, and 147, Subpart GGG, which remain in full force and effect. 21. Issuance of this Final Administrative Order is not an election by EPA to forego any civil or criminal action otherwise authorized under the Act. . SDWA-06-2022-1115 Page 5 22. Violation of the terms of this 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 of this 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 this 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 23. 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.162-2I(b)(2), performance of Paragraphs 17 and 18 is restitution, remediation, or actions required to come into compliance with the law. EFFECTIVE DATE 24. This 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). June 28, 2022 Date For -~- - - -9- - - - - - - - - - - - "lny,lgn<d byBRYANT SMAU!Y ON: c:1:US, o~u.s. Gowmment. ou-=(n\lirontnfflt.>1ProtN:tiol'\ Agtnty, e:n'Q)RYANT SMAU...EY, o.9..2342., 9200300.1oo.1.1.-6800100J6sssss Datt; 2022JMio.2a 11 :58:54 -05'00" Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Docket No.: SDWA-06-2022-1115 Page 1 of 1 CERTIFICATE OF SERVICE I certify that the foregoing Administrative Order was sent to the following persons, in the manner specified, on the date below: Signed Original E-mailed: Regional Hearing Clerk (R6ORC) U.S. EPA, Region 6 . 1201 Elm Street, Suite 500 Dallas, TX 75270 . vaughn. lorena(a),e p a .gov File Stamped Copy Transmitted via Email: Mr. Scott Ducharme Performance Petroleum Co. P.O. Box 628 Barnsdall, OK 74002 sducharme@ ppcooil .com Electronic Copy: Ellen Chang-Vaughan U.S. EPA, Region 6 1201 Elm Street, Suite 500 Dallas, TX 75270 Chang-Vaughan.Ellen@epa.gov Robin Phillips, Superintendent Bureau of Indian Affairs, Osage Agency P.O. Box 1539 Pawhuska, OK 74056 Robin.phi11ips@ bia.gov Jann Hayman, Director Osage Nation Department ofNatural Resources 100 W. Main, Suite 304 Pawhuska, OK 74056 jannhayman(@osagenation-nsn.gov Dated: 6/28/2022- - - - Signed ---'M'-'=a=tt=he-=-w"'--"-R=u~d=o~lp=h~_