Document emOV45ekjKmpx8LQz3dJBbJGy

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 June 16, 2022 TRANSMITTED VIA EMAIL Mr. Robert Conklin Conklin Oil Company, LLC P.O. Box 33230 Tulsa, OK 74153 grammarkey@aol.com Re: Final Administrative Order Well Number: 8-5A EPA Inventory ID: OS6022000 Docket Number: SOWA-06-2022-1111 Dear Mr. Conklin: Attached is a Final Administrative Order (Final Order) issued by the United States Environmental Protection Agency (EPA) to Conklin Oil Company, 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 auuinaga.david(@,epa.!!ov. The violation ofthe SOWA was identified through a review of files that EPA maintains on the referenced injection well. The violation 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 of the Final Order is thirty (30) days after issuance unless an appeal is taken pursuant to Section 1423(c)(6) of the SOWA, 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 EPA 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 ensuring compliance with the requirements of the Underground Injection Control program, and my staff will assist you in any way possible. Re: Conklin Oil Company, LLC 2 SDWA-06-2022-1111 If you have any questions regarding this matter, please contact David Aguinaga, at (214) 665-6439. Sincerely, ~ T. For Cheryl g::~ ~ . S . ~LUY ou-en..,;ronmt'fnl ProtKtlon NJ'IC.Y, cneoe.RYAHT SMALLEY. 0.9.2..)42.1920 0 1 0 0. 100.1.1"'680010 0 l 6 S S 5 S 5 Dil11P! 2022.16..l6 15.:S6:SA-()f00' Seager, Director Enforcement and Compliance Assurance Division Enclosures ec: Ms. Jann Hayman, Osage Nation DNR Director ja nnha vma n@ osagenatio n-ns n.gov Ms. Robin Phillips, BIA Osage Agency Superintendent robin .phiIlips(@,bia.gov ~"'::'l .. ' .t.--.J ":'~ . !' t., 'J > f . UNITED STATES ENVIRONMENTAL PROTECTIONAGENGY --='J REGION 6 Dallas, Texas 75270 2"' ' -.J'U',1 2?- p11i ,.:.,,.. 18 In the Matter of Conklin Oil Company, LLC Respondent. ;.__.._:."";. -... - : ...::/\r::,~fG CLERK E?A f-EGiON VI Docket No. SDWA-06-2022-1111 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) ofthe 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 ofthe 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-1 (c), to ensure that owners or operators of Class JI injection wells within Osage County, Oklahoma, comply with the requirements of the Act. FINDINGS I. Conklin Oil Company, LLC (Respondent) is a limited liability company doing business in the State of Oklahoma and, therefore, is a " person," within the meaning of Section 140 I( 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 I[ well" as those terms are defined at 40 C.F.R 147.2902. The injection well is located in the Southwest Quarter of Section 08, Township 22 North, Range 08 East, Osage County, Oklahoma, designated as Well No. 8-SA and EPA Inventory Number OS6022000 (the injection well). SDWA-06-2022- 1111 Page 2 3. Respondent is subject to underground injection control (U IC) 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 perm it 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. 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 contam inant may cause the violation of any 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. 147.2916 require the owner or operator of a new Class II injection well, or any other Class II injection well required to have a 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 November 22, 2004, EPA issued UIC permit number 06S I262P6022 (the permit) for the injection well and the permit became effective. 8. 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). 9. Regulations at 40 C.F.R. 147.2920(b) and Part l.B of the UIC permit requ ire that the injection well have mechanical integrity and demonstrate mechanical integrity every 3 years. SDWA-06-2022-1111 Page 3 I0. On April 20, 2018, the injection well failed a mechanical integrity test. To date, the injection well has not successfully demonstrated mechanical integrity. 11. Therefore, Respondent violated regulations set forth at 40 C.F.R. 147.2903(b), 147.2920(b) and Part 1.8. 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 of drinking water and by fai ling 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 April 6, 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 April 15, 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). 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 l423(c) of the Act, 42 U.S.C. 300h-2(c), EPA Region 6 hereby orders 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. 147.2920 and Part LB. of the permit within ninety (90) days after the effective date ofthis Final Administrative Order; or SOWA-06-2022-1 111 Page 4 11. 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 ninety (90) days after the effective date of this Final Administrative 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 after the effective date of this Final Administrative Order to: David Aguinaga agu inaga.david@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 civi I or criminal action otherwise authorized under the Act. 20. 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 ofthis Final Administrative Order under Section 1423(6) of the Act, 42 U.S.C. 300h-2(6), and civil and criminal penalties for violations ofthe compliance terms of this Final Administrative Order under Section 1423(6)(1) and (2) of the Act, 42 U.S.C. 300h-2(b)(I) and (2). SDWA-06-2022-1111 Page 5 TAX IDENTIFICATION 2 1. For purposes of the identification requirement in Section l 62(f)(2)(A)(ii) of the Internal Revenue Code, 26 U.S.C. 162(f)(2)(A)(ii), and 26 C.F.R. l.1 62-21(b)(2), performance of Paragraphs 15 and 16 is restitution, remediation, or required to come into compliance 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). June 16, 2022 Date ~ for _ _ _ _...._____ Oigito\lryiigned by BRYANT SMAUEY ON: CS-US, o-U.S. Government. ou..nvironmcntal Prote-ct fon Agency, cna-BRYANT SMALLEY. 0.9.2J42,19200300.100.1.1s 6800t0036SS5SS Oat.-:2022.06.t61S:54:55-(IS"OO' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Docket No.: SOWA-06-2022-1111 Page I of I CERTIFICATE OF SERVICE I certify that the foregoing Final Adr:ninistrative 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: Mr. Robert Conklin Conklin Oil Company, LLC P.O. Box 33230 Tulsa, OK 74153 grammarkey@aol.com Electronic Copy: Ms. Kristine Talbot Mr. David Aguinaga U.S. EPA, Region 6 120 I Elm Street, Suite 500 Dallas, TX 75270 talbot.kristine@ epa.gov aguinaga.david@epa.gov Ms. Robin Phillips, Superintendent Bureau of Indian Affairs Osage Agency P.O. Box 1539 Pawhuska, OK 74056 robin.phillips@bia.gov Ms. Jann Hayman, Director Osage Nation Department of Natural Resources I00 W. Main, Suite 304 Pawhuska, OK 74056 jannhayman@osagenation-nsn.gov Dated: June 21. 2022 David Aguinaga