Document ba7zw6Jb9Jkqkg5jRBxoDY77o

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 TRANSMITTED VIA E-MAIL Ms. Nicole Payne CapturePoint LLC 373 Phillips Road Shidler, OK 74652 npayne@capturepointllc.com January 25, 2023 Re: Final Administrative Order Well Number: 74-W2 EPA Inventory ID: OS0466000 Docket Number: SDWA-06-2023-1103 I, Dear Ms. Payne: Attached is a Final Administrative Order (Final Order) issued by the United States Environmental Protection Agency (EPA), to Capture Point 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-mai l and the attached Final Order by a response e-maiI to rudolph.matthew(a),epa.gov. The violation of the SOWA was identified through a review of files that EPA maintains on the referenced inj ection well. The violation was for failing to successfully demonstrate mechanical integrity and maintaining the injection well in a manner that could al low the movement of fluid that contains contaminant~ into an undergrou_nd source of drinking water (USDW). The Final Order does not assess a monetary penalty; however, i_t does require compliance with SDWA 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 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 SDWA 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 Protect.ion Agency and to the United States Attorney General. Re: CapturePoint LLC 2 SDWA-06-2023-1 I03 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 ensuring compliance with the requirements of the Underground Injection Control program, and my staff will assist you in any way possible. If you have any questions regarding this matter, please contact Mr. Matthew Rudolph, of my staff, at (2 14) 665-6434. Sincerely, Digitally sig ned by Seager, Cheryl Date: 2023.01.25 13:9:09-06'00" Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Attachments ec: Mr. Jeff Marcell, CapturePoint LLC jmarcel@capturepointllc.com Mr. Craig Walker, Osage Nation DNR Supervisor cmwalker!@osagenation-nsn.gov Mr. Richard Winlock, BIA Osage Agency Superintendent richard.winlock!@bia.gov D I l. ~-Rf' f"' UNITED STATES ENVIRONMENTAL PROTECTION AGE~Y ~ ~ E REGION6 Dallas, Texas 75270 23 JAN 25 PH 4: 16 In the Matter of CapturePoint LLC Respondent. HE.G!CI " - I .EArmlG CLERK EPA REGION VI Docket No. SDWA-06-2023-1103 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 enforcement responsibility for underground injection w ithin the meaning of Section 1422(c) of the Act, 42 U.S.C. 300h- 1(c), to ensure that owners or operators of Class 11 injection wells within Osage County, Oklahoma, comply with the requirements of the Act FINDINGS 1. CapturePoint LLC (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 a ll 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 NE Quarter of Section 35, Township 27 North, Range 05 SOWA-06-2023-1103 Page 2 East, Osage County, Oklahoma, designated as Well No. 74-W2 and EPA Inventory Number OS0466000 (the injection well). 3. Respondent is subje_ct 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(~) 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 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. 147.2903(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 of any primary drinking water regulation under 40 C.F.R. Part 142 or may otherwise adversely affect the health ofpersons. 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 of 40 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 well to have mechanical integrity. A well has mechanical integrity if there are no significant leaks in the 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. SOWA-06-2023-1103 Page 3 8. The injection well is authorized by rule in accordance with 40 C.F.R. 147.2909. 9. On April 4, 2019, the injection well failed a mechanical integrity test. To date, the injection well has not successfully demonstrated mechanical integrity. I0. On August 27, 2019, EPA mailed a letter to Respondent notifying Respondent that EPA determined that the injection well did 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 regards to this matter. 11. Therefore, Respondent violated regulations set forth at 40 C.F.R. 147.2903(b), 147.2909, and 147.2912(a) by maintaining the injection well in a manner that could allo.w the movement of fluid that contains contaminants into an USDW and by failing to successfully demonstrate mechanical integrity. 12. Pursuant to Section 1423(c)(3)(A) of the Act, 42 U.S.C. 300h-2(c)(3)(A), on November 7, 2022, EPA issued a Proposed Administrative Order to Respondent and provided Respondent an opportunity to request a hearing on the Proposed Administrative Order. 13. On November 7, 2022, EPA provided public notice of its proposal to issue an order for compliance in this matter in accordance with Section I423(c)(3)(8) of the Act, 42 U.S.C. 300h-2(c)(3)(8). 14. Respondent did not request a hearing and EPA did not receive any public comments on the Proposed Administrative Order. SECTION 1423(c) COMPLIANCE ORDER 15. _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: SDWA-06-2023-1103 Page 4 a. Cease use of the injection well for the unauthorized underground injection of fluids, and b. Take one ofthe following actions: i. Repair the injection well and successfully demonstrate mechanical integrity according to regulations at 40 C.F.R. 147.2912(a) within ninety (90) days ofthe effective date of the Final Administrative Order; or 11. Complete proper plugging and abandonment in accordance with 40 C.F.R. 147:2905, within ninety (90) days of the effective date of the Final Order; or 111. Convert the injection well to production use within ninety (90) days of the effective date of the Final Order. 16. Submit copies of completed plugging reports or completed work reports showing conversion to production and BIA Osage Agency Forms 139 within 120 days of the effective date of this Final Order to: Matthew Rudolph rudolph.matthew@epa.gov U.S. Environmental Protection Agency Water Enforcement Branch (ECDWE) GENERAL PROVISIONS 17. 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). 18. 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. 19. 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-06-2023-11 03 Page 5 20. Violation of the terms of this Final Administrative Order after its effective date or date of final j udgment as described in Section 1423(c)(6) of the Act, 42 U.S.C. 300h-2(c)(6), may subj ect Respondent to further enforcement action, including a civil action for enforcement of this Final Administrative Order under Section 1423(6) 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(6)( 1) and (2) of the Act, 42 U.S.C. 300h-2(b)( l) and (2). TAX IDENTIFICATION 2 1. For purposes of the identification requirement in Section I62(f)(2)(A)(ii) of the Internal Revenue Code, 26 U.S.C. 162(f)(2)(A)(ii), and 26 C.F.R. 1.1 62-21(6)(2), performance of Paragraph(s) 15 and 16 is restitution, remediation, or required to come into compl iance with the law. EFFECTIVE DATE 22. 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). January 25, 2023 Date Digitally signed by Seager, Cheryl Date: 2023.01.25 13:47:32 06'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Docket No.: SDWA-06-2023-11 03 Page I of I CERTIFICATE OF SERVICE I certify that the foregoing Final Administrative Order was sent to the fo llowing 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.lorcna(a),epa.gov File Stamped Copy Transmitted via Email: Ms. Nicole Payne CapturePoint LLC 373 Phillips Road Shidler, OK 74652 npayne(a),capturepointl Ic.corn Electronic Copy: Mr. Jeff Marce ll CapturePoint LLC 110 I Central Expressway South, Suite 150 Allen, TX 7501 3 jmarcel(a),capturepointllc.com Ellen Chang U.S. EPA, Region 6 120 I Elm Street, Suite 500 Dallas, TX 75270 Chang.El len(a),epa. gov Richard Winlock, Superintendent Bureau of Indian Affairs, Osage Agency P.O. Box 1539 Pawhuska, OK 74056 richard.win lock(@,bia.gov Craig Walker, Supervisor Osage Nation Department of Natural Resources 100 W. Main, Suite 304 Pawhuska, OK 74056 crnwalker@osagenation-nsn.gov Dated: 1/25/2023 Signed: MATTH Ew MATTHEW RUDOLPH Digitally signed by RUDOLPH oa1e: 2ono1.2s 14:28,21 -06"00"