Document ZyDj256mNV2435nk7ZVj3v60

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 January 24, 2023 TRANSMITTED VIA E-MAIL Ms. N icole Payne CapturePoint LLC 373 Phillips Road Shidler, OK 74652 npayne@capturepointllc.com Re: Final Administrative Order Well Number: 49-W32 EPA Inventory ID: OS6067000 Docket Number: SOWA-06-2023- 1105 . Dear Ms. Payne: Attached is a Final Administrative Order (Final Order) issued by the United States Environmental Protection Agency (EPA) to CapturePoint LLC (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 violation was for failing to comply with conditions of the permit. 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 fai lure 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 of the 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. If you 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 of environmental legal proceedings to the Securities and Exchange Commission. The EPA is committed to ensuri ng compliance with the requirements of the Underground Injection Control program, and my staff will assist you in any way possible. Re: CapturePoint LLC 2 SOWA-06-2023-1105 If you have any questions regarding this matter, please contact Matthew Rudolph at (214) 665-6434. Sincerely, Oigitlly signed by Sfager, Cheryl Date: 2023.0 1.24 15:40:15 06'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Attachments ec: Mr. Jeff Marcell, CapturePoint LLC jmarce l@capturepoint ll c . c o m Mr. Craig Walker, Osage Nation, Department ofNatural Resources (DNR), Environmental Supervisor cmwalker@osagenation-nsn.gov Mr. Richard Winlock, BIA Osage Agency Acting Superintendent richard.winlock@ b ia .gov D rr~- i..j ~~ lfi?"' ! ;;, ..i,._... l::,..., UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 Dallas, Texas 75270 23 JAN25 AM 8: 48 In the Matter of CapturePoint LLC Respondent. REl:.l~1:\ : .t.. l.EJ\Rli'J3 CLERK EP/\ REGION YI Docket No. SOWA-06-2023-1105 FINAL ADMINISTRATIVE ORDER STATUTORY AUTHORITY The following findings are made, and 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 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 en'rorcement 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 11 injection wells within Osage County, Oklahoma, comply with the requirements of the Act. FINDINGS I. CapturePoint LLC (Respondent) is a company doing business in the State of Oklahoma and, therefore, is a " person," within the meaning of Section 140 I(I 2) 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 SE Quarter of Section 23 , Township 27 North, Range 05 East, SDWA-06-2023-1105 Page 2 Osage County, Oklahoma, designated as Well No. 49-W32 and EPA Inventory Number OS6067000 (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 well required to have a permit is prohibited until the permit ha.s been issued. The term "permit" is defined at 40 C.F.R. 147.2902. 5. Regulations at 40 C.F.R. 147.2916 require the owner or operator of a new Class II injection well, or any ot~er Class II 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. 6. On March 19, 2006, EPA issued UIC permit number 06S I262P6067 (the permit) for the w e ll. 7. On March 19, 2006, the permit became effective. On May 30, 2006, the injection well was authorized to inject. 8. Regulations at 40 C.F.R. 147.2922(b) and each UIC permit require the operator of an injection well to monitor. injection rate and pressure monthly and to report monitoring results to EPA annually. 9. Regulations at 40 C.F.R. 147.2925(a) require the permittee to comply with all permit cond itions, except as authorized by an emergency permit (described in 40 C.F.R. 147.2906). Noncompliance is grounds for permit modification, permit termination, or enforcement action. SDWA-06-2023- 1105 Page 3 I0. The permit contains the following permit condition: a. Pursuant to permit condition l.B.2, the injection pressure at the wellhead shall not exceed 600 pounds per square inch in gauge (psig). 11. During a review of records for the permit conducted by representatives of EPA on October 4, 2022, the following violations were observed: a. An annual report for the period of April 202 1 to March 2022, was submitted by the Respondent which was s igned and dated on April 21, 2022. On the annual report, the Respondent submitted pressures in excess of 600 psig. The table below summarizes the pressures reported: Month April Mav June July August September October November December January February March Year 202 1 2021 2021 2021 2021 2021 202 1 202 1 2021 2022 2022 2022 Avg Pressure (PSIG) 619 672 704 736 717 7 11 736 669 679 703 685 605 Max Pressure (PSIG) 760 840 850 840 840 760 780 780 780 760 740 780 12. Therefore, Respondent violated regulations at 40 C.F.R. 147.2925(a) by failing to comply with the permit. 13. Pursuant to Section 1423(c)(3)(A) of the Act, 42 U.S.C. 300h- 2(c)(3)(A), on October 3 1, 2022, EPA issued a Proposed Administrative Order to Respondent and provided Respondent an opportunity to request a hearing on the Proposed Administrative Order. SDWA-06-2023-1105 Page 4 14. On October 31 , 2022, EPA provided public notice of its proposal to issue an order for compliance in this matter in accordance with Section 1423(c)(3)(B) of the Act, 42 U.S.C. 300h-2(c)(3)(8). 15. Respondent did not request a hearing and EPA did not receive any public comments on the Proposed Administrative Order. SECTION 1423(c) COMPLIANCE ORDER 16. 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 orders Respondent to perform the following within thirty (30) days ofthe effective date ofa Final Order: a. Limit the injection pressure at the wellhead to a pressure no greater than 600 psig. b. Submit a corrective action plan along with written certification on how condition 1.8.2 of the permit will be complied with. 17. Submit the required information to the EPA at rudolph.matthew@epa.gov within thirty (30) days after the effective date ofthe Final Administrative Order. GENERAL PROVISIONS 18. 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). 19. This 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. 20. Issuance of the Final Administrative Order is not an election by EPA to forego any civil or criminal action otherwise authorized under the Act. SDWA-06-2023-1105 Page 5 21. Violation of the terms of this 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 of this 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 the Final Administrative Order under Section l 423(b)(1) and (2) of the Act, 42 U.S.C. 300h-2(b)( l) and (2). TAX IDENTIFICATION 22. For purposes of the identification requirement in Section I62(t)(2)(A)(ii) of the Internal Revenue Code, 26 U.S.C. 162(t)(2)(A)(ii), and 26 C.F.R. l.162-21 (b)(2), performance of Paragraphs 16, and 17 is restitution, remediation, or required to come into compliance with the law. EFFECTIVE DATE 23. 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). January 24, 2023 Date Digitally signed by Seager, Cheryl Date: 2023.01.24 15:39:19 -06'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Docket No.: SDWA-06-2023-1105 Page I of I CERTIFICATE OF SERVICE I certify that the foregoing Final 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 6 120 I Elm Street, Suite 500 Dallas, TX 75270 vaughn.lorena@.epa.gov File Stamped Copy Transmitted via Email: Ms. Nicole Payne CapturePoint LLC 373 Phillips Road Shidler, OK 74652 npayne@capturepointlle.com Electronic Copy: Mr. JeffMarcell CapturePoint LLC 110 I Central Expressway South, Suite 150 Allen, TX 75013 jmarcel@capturepointllc.com Ellen Chang-Vaughan U.S. EPA, Region 6 120 I Elm Street, Suite 500 Dallas, TX 75270 Chang-Vaughan.Ellen@epa.gov Richard Winlock, Superintendent Bureau of Indian Affairs, Osage Agency P.O. Box 1539 Pawhuska, OK 74056 richard.winlock(ci),bia.gov Mr. Craig Walker, Environmental Supervisor Osage Nation Department ofNatural Resources 100 W. Main, Suite 304 Pawhuska, OK 74056 cmwa lker@osagenation-nsn .gov Dated: I/25/2023 MATTHEW Signed: RUDOLPH Olgitalty signed by MATTHEW RUDOLPH Date: 2023.0 1.2S 07:S6:S1 -06'00'