Document e71LRwn5qRQxmna67O29LxXNp

FILED 18 DEC 25 PM 02:18 REGIONAL HEARING CLERK EPA REGION 6 EXPEDITED SETTLEMENT AGREEMENT (ESA) DOCKET NO: CAA-06-2026-3500 This ESA is issued to: Black Bear Midstream LLC At: 1716 Friendship Road, Frierson, Louisiana 71027 for violating Section 112(r)(7) of the Clean Air Act The United States Environmental Protection Agency (EPA), through its delegated official, the Director of the Enforcement and Compliance Assurance Division, and Black Bear Midstream LLC (Respondent) have agreed to a settlement of this action before filing a complaint, and thus this action is simultaneously commenced and concluded pursuant to Rules 22.13(b) and 22.18(b)(2) of the Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties and the Revocation/Termination or Suspension of Permits (Consolidated Rules), 40 C.F.R. Part 22. This ESA is an administrative action for the assessment of civil penalties instituted pursuant to Section 113(d) of the Clean Air Act (CAA), 42 U.S.C. 7413(d). Pursuant to Section 113(d) of the CAA, 42 U.S.C. 7413(d), the Administrator and the Attorney General jointly determined that cases which meet the criteria set forth in EPA's policies1 are appropriate for administrative penalty action. ALLEGED VIOLATION On October 16, 2023, EPA Risk Management Program Reporting Center sent a letter to Respondent, notifying Respondent of its failure to update the Risk Management Plan on file with EPA for its facility located at 1716 Friendship Road, Frierson, Louisiana 71027 (the "Facility"). Facilities subject to the Risk Management Program (RMP) regulations at 40 C.F.R. Part 68 are required to submit an updated Risk Management Plan at least once every five years. EPA's review indicates that the update for the Facility was not submitted by the required due date of September 28, 2023. EPA has found that Respondent violated the RMP regulation and Section 112(r)(7) of the CAA, 42 U.S.C. 7412(r)(7), as follows: 1) 40 C.F.R. 68.190(b)(1) Updates - The owner or operator shall review and update the RMP as specified in paragraph (b) of this section and submit it in the method and format to the central point specified by EPA as of the date of submission. (b) The owner or operator of a stationary source shall revise and update the RMP submitted under 40 C.F.R. 68.150 as follows (1) At least once every five years from the date of its initial submission or most recent update required by paragraphs (b)(2) through (b)(7) of this section, whichever is later. 1 "Use of Expedited Settlements in Addressing Violations of the Clean Air Act Chemical Accident Prevention Provisions, 40 C.F.R. Part 68" (2004); and "Changes to Restrictions on the Use of Expedited Settlements in Addressing Violations of the Clean Air Act Chemical Accident Prevention Provisions" (2013). 1 of 5 Black Bear Midstream LLC Docket No. CAA-06-2026-3500 SETTLEMENT In consideration of the factors set forth in Section 113(e) of the CAA, 42 U.S.C. 7413(e), the criteria set forth in EPA's policies, and upon consideration of the entire record, EPA and Respondent enter into this ESA to settle the violation, described above, for the total penalty amount of $2,000. This settlement is subject to the following terms and conditions: Respondent, by signing below, waives any objections that it may have regarding jurisdiction, neither admits nor denies the specific factual allegations contained herein, and consents to the assessment of the penalty as stated above. Respondent waives its rights to a hearing afforded by Section 113(d)(2)(A) of the CAA, 42 U.S.C. 7413(d)(2)(A), to appeal this ESA, to any rights or defenses that Respondent has or may have for this matter to be resolved in federal court, including but not limited to any right to a jury trial, and to any right to challenge the lawfulness of the final order accompanying this ESA. Each party to this action shall bear its own costs and fees, if any. Respondent also certifies, subject to civil and criminal penalties for making a false statement to the United States Government, that Respondent has corrected the violation listed above and will pay the full penalty of $2,000. Respondent shall pay the penalty and any interest, fees, and other charges due using any method, or combination of appropriate methods, as provided on the EPA website: https://www.epa.gov/financial/makepayment. For additional instructions see: https://www.epa.gov/financial/additional-instructions-makingpayments-epa. In accordance with the March 25, 2025, Executive Order on Modernizing Payments To and From America's Bank Account, Respondent shall pay using one of the electronic payments and will not pay with a paper check. The Docket Number of this ESA is CAA-06-2026-3500 and must be included on the payment. The signed ESA and a copy of the payment must be sent by email to: spillman.michael@epa.gov. This payment should be made only after the ESA is completed and returned to you with signatures from both sides. Full payment of the ESA penalty shall only resolve Respondent's civil liability for the violation alleged above. The EPA does not waive any other enforcement action by EPA for any other past, present, or future violations under the CAA or any other statute. If the signed ESA is not returned to EPA Region 6 at the above e-mail address in correct form by Respondent within 30 days of the date of the receipt of this ESA, the proposed ESA is withdrawn, without prejudice to EPA's ability to file additional enforcement actions for the violation identified in this ESA. This ESA is binding on EPA and Respondent and is effective upon filing with the Regional Hearing Clerk. 2 of 5 Black Bear Midstream LLC Docket No. CAA-06-2026-3500 EPA and Respondent agree to the use of electronic signatures for this matter. EPA and Respondent further agree to electronic service of this ESA, pursuant to 40 C.F.R. 22.6, by email to the following addresses: To EPA: spillman.michael@epa.gov To Respondent: pespenan@dgoc.com 3 of 5 SIGNATURE BY RESPONDENT: Black Bear Midstream LLC Docket No. CAA-06-2026-3500 Signature: _____________________________________ Name (print): ___P__a_u_l _M__. _E_s_p_e_n_a_n__________________ Title (print) _S_V_P__E_H__S_&_R__________________________ Cost of Corrective Actions: _$_0______________________ Date: __1_2_/_0_5_/_2_0_2_5__ Respondent's Brief Description of Complying Action: ____________________________ _W__e_w_e_r_e__n_o_t _a_w_a_r_e_o_f_t_h_is__m_a_t_te_r_b_e_c_a_u_s_e__a_f_o_r_m_e_r_e_m__p_lo_y_e_e__h_a_d_n_o_t_u_p_d_a_t_e_d__th_e__e_m_a_i_l address _fr_o_m__t_h_e_f_o_rm__e_r_o_w_n_e_r_o__f _th_is__fa_c_i_li_ty_.__T_h_e_r_e_q_u_ir_e_d__re_p_o_r_t_w_a_s__fi_le_d_w__it_h_in__2_4_h_o_u_r_s_o_f_t_h_e_actual _n_o_t_if_ic_a_t_io_n_._______________________________________________________________ _________________________________________________________________________ If you need additional space or would like to provide additional supporting documentation, please attach to this document. SIGNATURE BY EPA: Digitally signed by CHERYL SEAGER Date: 2025.12.17 _____________1_4:_33_:0_9 _-06_'0_0'_______ Cheryl T. Seager Director Enforcement and Compliance Assurance Division U.S. EPA, Region 6 It is so ORDERED. This Order shall become effective upon filing of the fully executed ESA Docket No. CAA-06-2026-3500 with the Regional Hearing Clerk. THOMAS Digitally signed by THOMAS RUCKI _R_U__C_K__I ______1_2_:55_:0_6_-0_5'0_0_' _____________ Date: 2025.12.18 Thomas Rucki Regional Judicial Officer 4 of 5 Black Bear Midstream LLC Docket No. CAA-06-2026-3500 CERTIFICATE OF SERVICE I certify that a true and correct copy of the foregoing Expedited Settlement Agreement was filed with me, the Regional Hearing Clerk, U.S. EPA - Region 6, 1201 Elm Street, Suite 500, Dallas, Texas 752702102, and that I sent a true and correct copy on this day in the following manner to the email addresses: Copy via Email to EPA: spillman.michael@epa.gov Copy via Email to Respondent: pespenan@dgoc.com Cc: jpigman@dgoc.com jsbailey@dgoc.com jstovall@dgoc.com Paul Espenan Senior Vice President EHS&R Diversified Energy 1600 Corporate Drive Birmingham, Alabama 35242 LORENA Digitally signed by LORENA VAUGHN _V_A_U__G_H__N_____1_4:_19_:0_1 _-06_'0_0'__________________ Date: 2025.12.18 Regional Hearing Clerk U.S. EPA, Region 6 5 of 5