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Environmental Groups Raise Serious Compliance Issues With Olympus Energy-- Over 600 Violations On 13 DEP Permits-- In Comments On Proposed Shale Gas Drilling Pad In Allegheny County
Olympus Energy is proposing to construct a 500-foot by 340-foot unconventional natural gas drilling well pad with a 3,750-foot long by 24-foot wide access road. The project will disturb a total of 24.2 acres of land, according to DEP’s PA Bulletin notice (page 5696).
DEP said the site will discharge or have the potential to discharge stormwater to a tributary to Fallen Timber Run which is already determined to have impaired water quality as a result of siltation (PA Bulletin, page 5696)
Construction of the well pad will also involve surface mining coal from the site. Olympus is being required by DEP to also obtain a separate Incidental Coal Extraction Permit, according to the groups.
The groups noted on the permit application Olympus Energy checked the box saying-- “Was/Is the facility owner or operator in violation of any DEP regulation, permit, order, or schedule of compliance at this or any other facility or project site within the past 5 years?”
The groups said the company attached a table showing 32 instances of non-compliance for dates ranging from 2/21/2018 to 3/11/2022 for eight unique project names/permits.
However, Oil and Gas Compliance Report for Olympus was obtained by the groups from the Pennsylvania Department of Environmental Protection (DEP) for the same date range, 2/21/2022 to 3/11/2022 which reveals 601 instances of non-compliance (unique Violation IDs) reported for 13 unique DEP permits (unique Site Names) associated with Olympus as the Operator.
Of the 601 non-compliances, 75 are specifically violations of the state Clean Streams Law (CSL).
"A comparison of Olympus’s DEP violations per well drilled revealed that Olympus had 735% more violations per well drilled than the average for the top 20 PA operators (Deep Well Site IDs only, excluding pipeline violations).
“Further, Olympus had 296% more violations per well drilled than the next highest operator.
“It was also revealed that Olympus has 548% higher fines per well drilled than the average for the top 20 PA operators and 163% more fines per well than the next highest operator."
"We, the undersigned, call upon the Department to deny the requested permit due to the applicant’s misrepresentation of its compliance history and their egregious disregard for public health, the waters of the Commonwealth, and environmental protections.
“These protections are guaranteed by the very laws and permits repeatedly violated by Olympus Energy. Operators should not be rewarded with additional permits when they have not met the conditions of existing permits."
Text Of Comments
The following is the full text of the comments submitted by the groups in a cover letter--
Please accept the following comments regarding Olympus Energy, LLC’s (Olympus) application for ESCP Permit #ESP070222001-00 for the Heracles Well Pad located in Elizabeth Township, Allegheny County.
These comments are a collaborative effort of the Environmental Integrity Project (EIP), Food & Water Watch, Mountain Watershed Association (MWA), the Youghiogheny Riverkeeper, and the undersigned citizens.
As part of Olympus’s 3800-PM-BCW0019b application, the applicant checked “Yes” when asked, “Was/Is the facility owner or operator in violation of any DEP regulation, permit, order, or schedule of compliance at this or any other facility or project site within the past 5 years?”
An attachment to the application was included which contained a table showing 32 instances of non-compliance for dates ranging from 2/21/2018 to 3/11/2022 for eight unique project names/permits.
An Oil and Gas Compliance Report for Olympus was obtained from the Pennsylvania Department of Environmental Protection (DEP) for the same date range, 2/21/2022 to 3/11/2022 and is included as Exhibit 1.
This report reveals 601 instances of non-compliance (unique Violation IDs) reported for 13 unique DEP permits (unique Site Names) associated with Olympus as the Operator. Of the 601 non-compliances, 75 are specifically violations of The Clean Streams Law (CSL).
DEP Inspection Record No. 3363279 (IR) is included as Exhibit 2. This IR is from Olympus’s Selene Well Pad for an inspection performed on 5/16/2022.
The inspector found multiple Chapter 102 & CSL violations, among other things. Photos were included in the IR showing BMPs failing to prevent the potential of pollution to waters of the Commonwealth.
Olympus wrote a response to DEP dated June 1, 2022, which has been included as Exhibit 3. Despite clear evidence to the contrary, the response states, “Olympus did plan, design and implement E&S controls and BMPs in accordance with its approved ESCGP.”
Further, despite clear evidence to the contrary, the response goes on to say, “There was no danger of pollution to waters of the Commonwealth and there was no impact to waters of the Commonwealth.”
This response makes clear that Olympus does not take its responsibility to comply with laws protecting public health and the waters of the Commonwealth serious enough to prevent harm.
An analysis of DEP compliance data for the top 20 unconventional well operators in Pennsylvania from 1/1/2018 through 8/18/2021 is included as Exhibit 4.
A comparison of Olympus’s DEP violations per well drilled revealed that Olympus had 735% more violations per well drilled than the average for the top 20 PA operators (Deep Well Site IDs only, excluding pipeline violations).
Further, Olympus had 296% more violations per well drilled than the next highest operator.
It was also revealed that Olympus has 548% higher fines per well drilled than the average for the top 20 PA operators and 163% more fines per well than the next highest operator.
Olympus’s egregious history of significant and persistent violations of environmental laws is a critically important consideration for the DEP.
The Pennsylvania Supreme Court has stated that “evidence relating to past conduct and practices of a facility’s owners, and specific impacts on the community from the functioning of the facility” is “relevant and probative in determining whether, if conditional use authorization were granted, the facility’s operation would pose a threat to the welfare of the community.” EQT Prod. Co. v. Borough of Jefferson Hills, 652 Pa. 508, 535 (2019).
In the Jefferson Hills case, the Supreme Court held that a municipality may receive, consider, and rely upon evidence related to adverse public health, safety, and environmental impacts associated with an applicant’s similar, existing facility when reviewing a conditional use application. Id. at 539–40.
The [PA] Supreme Court noted that the similarity between the existing facility and the proposed facility “need not be precise in every detail” and need only be a “similarity in such circumstances or conditions as might supposably affect the result in question.” Id. at 538–39.
Similarly, a municipality may receive and consider evidence of violations of environmental laws at similar facilities owned by the applicant, including notices of violations (NOVs) and other evidence publicly available on DEP’s website, during its review of the conditional use application for the applicant’s project.
NOVs issued by DEP to the applicant for violations of environmental laws at other similar facilities owned by the applicant and other evidence of noncompliance are relevant and probative in determining whether the proposed project poses a threat to public health, safety, or the environment.
The fact that an agency takes a progressive enforcement approach generally, or that it may or may not ultimately resolve a violation with an administrative order, in no way means that an NOV—the initial documentation and notification of a violation—is not relevant or probative of an operator’s history of compliance with environmental laws.
To the contrary, an NOV is the formal written notification to an operator that the agency charged with regulatory oversight has identified violations of the law at a facility. Id. at 9.1
In fact, DEP’s own regulations governing erosion and sedimentation permits explicitly
provide that “[t]he Department may deny, revoke, suspend or terminate coverage under a general permit for failure to comply with The Clean Streams Law.” 25 Pa. Code § 102.5(l)(6), 102.5(c).
We, the undersigned, call upon the Department to deny the requested permit due to the applicant’s misrepresentation of its compliance history and their egregious disregard for public health, the waters of the Commonwealth, and environmental protections.
These protections are guaranteed by the very laws and permits repeatedly violated by Olympus Energy. Operators should not be rewarded with additional permits when they have not met the conditions of existing permits.
Click Here for a copy of the comments submitted by the groups with attachments. Contact information for these groups is included in the comments submitted.
(Photo: The Midas shale gas drilling pad constructed by Olympus Energy in Plum Borough, Allegheny County.)
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[Posted: October 5, 2022] PA Environment Digest
Registration Now Open For 2022 Watershed Congress In Montgomery County Oct. 22
The Watershed Congress is an annual event that seeks to advance the best available information and techniques for protecting and restoring watersheds.
The focus on networking across disciplines means that the Watershed Congress melds science, policy, and practical applications into one program.
As a result, the annual Watershed Congress is a highly anticipated event for people interested in understanding, protecting, and restoring their local streams.
Join the Congress as environmental leaders in the Southeast region present and in depth look at the promise of the federal Clean Water Act, the effectiveness of its implementation to date, what it has meant for our communities, and the future of ongoing efforts and advocacy to secure truly fishable and swimmable waters.
To register and for more information, visit the 2022 Watershed Congress website.
[Posted: October 5, 2022] PA Environment Digest
DEP Issued NOVs To Conventional Oil & Gas Companies For Abandoning 55 Wells Without Plugging Them During September Alone, A Dramatic Increase In New Well Abandonments
That brings the total number of NOVs issued by DEP for abandoning wells without plugging them in the Third Quarter of 2022 to 163 conventional wells and three unconventional shale gas wells.
That’s more NOVs issued for abandoning conventional wells than in the first six months of 2022-- 163 from July through September versus 159 from January through June. Read more here.
So far in 2022 a total of 322 notices of violation were issued for conventional wells and 32 for unconventional shale gas wells for abandoning without plugging them for a total of 354 wells.
And these were only the wells DEP inspectors caught companies abandoning during their regular inspections.
Every oil and gas well abandoned by the oil and gas industry means taxpayers have to pick up the cost of plugging and cleaning up those sites.
Background
Conventional oil and gas well companies have so far shifted over $5.1 billion in well plugging costs to taxpayers because they are required to put up zero bonds to cover plugging costs for wells they drilled before April 1985-- which is most of them-- and only limited bonding for wells since then that does not begin to cover taxpayers’ plugging costs. Read more here.
The conventional industry also passed legislation in July that Gov. Wolf allowed to become law blocking any attempts to increase the bonding amounts for 10 years. Read more here.
To put the 322 notices of violation for abandoning conventional oil and gas wells so far this year in perspective, that’s many more than the number of wells DEP plans to plug-- 249-- with the initial $25 million from the new, highly touted, federal taxpayer-funded Bipartisan Infrastructure Law conventional oil and gas well plugging program. Read more here.
It’s also important to understand, notices of violation are DEP’s first step in trying to get a driller’s attention that a violation has occurred and they need to take steps to resolve the issue.
DEP’s Oil and Gas Program Compliance Database has incomplete information on how these violations were resolved.
In terms of past enforcement actions, DEP only assessed monetary penalties against 15 of the 256 conventional oil and gas operators who received notices of violation for abandoning wells without plugging them over the last six years, according to DEP’s response to a Right to Know request to the Oil and Gas Management Program for penalty information covering conventional operators from 2016 through 2021. Read more here.
During those same six years, DEP issued over 4,270 notices of violations for abandoning wells. Read more here.
It is clear abandoning wells without paying the cost of plugging them is a pervasive part of the way conventional oil and gas industry’s operate. Read more here.
Counties With Newly Abandoned Wells
In July, August and September, conventional operators were given NOVs for abandoning wells without plugging them in these 12 counties-- Butler (7), Cambria ( 7), Crawford (1), Elk (2), Erie (8), Forest (3), Greene (1), McKean (7), Mercer (3), Venango (103), Warren (4) and Westmoreland (17).
DEP issued NOVs for abandoning three unconventional shale gas wells-- two in Wyoming County and one in Westmoreland County.
Companies Abandoning Wells
In July, August and September, these 41 conventional operators were given NOVs for abandoning wells without plugging them-- All American Energy (1); Allshouse Excav. (9); Allshouse, Terrance L. Jr. (4); Apex Energy (1); Apollo Resources LLC (8); AZCO OPR (1); BV Gas LLC (1); C&D Gas Co. (2); Champion Bolt Corp (2); Cobra Resources (5); Dannic Energy Corp (1); Diversified Prod (2); Dorso LP (1); Energy Exploration & Dev. (1); Equitrans LP (1); Five Star Investment Group (1); FM Sloan Inc. (2); Fyrerols Reservoir Consulting (3); Grace M. Marzalen (1); Hartstown OIl & Gas Explor (1); Horizontal Exploration (6); HypePark Foundry & Mach Co. (1); Lazy Oil Co. LLC (2); Lendrum Energy LLC (40); LT OIl Co LLC (9); Magi Oil (1); Marvin Sanders Oil (1); Michael Harju (1); Mid East Oil (1); Millcreek Twp. School District (1); Nucomer Energy (1); PA Mineral Services (1); Pierce & Peterson (2); Pin Oak Energy Partners (1); Questa Petro Co. (2); Redfoot Daniel A (1); Reel Resources (2); Repasky Christopher S. (27); STK Investments LLC (1); Timberline Energy (9); Titus Energy (1); West Silas (1); and Wilmoth Interests (1).
The number of conventional oil and gas operators give NOVs for newly abandoned wells clearly continues to show well abandonment is pervasive in this industry. Read more here.
Chesapeake Appalachia was issued notices of violation by DEP for abandoning two unconventional shale gas wells without plugging them in Wyoming County and Diversified Prod. LLC for one unconventional shale gas well in Westmoreland County.
DEP Conventional Drilling Compliance Review
On July 30, Gov. Wolf directed the Department of Environmental Protection to conduct an evaluation of how it regulates conventional oil and gas wells to prevent new abandoned wells, tighten review of permit transfers, review compliance with environmental safeguards and make recommendations for changes and actions, including criminal sanctions.
The evaluation was due to the Governor’s Office by September 1, but no information from the report has been released as of this writing. Read more here.
On August 18, Kurt Klapkowski, Acting DEP Deputy Secretary for Oil and Gas Management, told DCED’s PA Grade Crude [Oil] Development Advisory Council the conventional oil and gas driller compliance review will evaluate at least the last five years of compliance.
When asked whether DEP’s evaluation and accompanying recommendations would be in a public document, Klapkowski said, “... don’t know the answer to that question. All I can say is what was published in the Pennsylvania Bulletin, the instructions that we were given in terms of preparing a report for the conventional industry's record of compliance.”
To track oil and gas facility compliance with Pennsylvania’s laws and regulations, visit DEP’s Oil and Gas Program Compliance Database and search by company.
You will be shocked at what you find.
NewsClip:
Related Articles - New Abandoned Wells:
-- Only 15 Out Of 256 Conventional Oil & Gas Operators Who Abandoned Wells Without Plugging Them Were Fined By DEP; Small Penalties No Deterrent To Future Abandonments [PaEN]
-- Bay Journal: New Abandoned Wells - More Concerns Emerge Over Pennsylvania’s Conventional Oil & Gas Wells - By Ad Crable, Chesapeake Bay Journal [8.25.22]
-- New Abandoned Wells: DEP Records Show Abandoning Oil & Gas Wells Without Plugging Them Is Pervasive In Conventional Drilling Industry; Who Is Protecting Taxpayers? [PaEN]
-- 12 Unconventional Shale Gas Drillers Issued DEP Notices Of Violation For Abandoning Wells Without Plugging Them At 35 Well Pads In 17 Counties [PaEN]
-- Quarterly Report: DEP Issued 77 Notices Of Violations To Conventional Drillers, 8 To Shale Gas Drillers For Attempting To Abandon Wells Without Plugging Them [PaEN]
-- DEP Issues 20% More NOVs To Oil & Gas Well Drillers For Abandoning Wells Without Plugging Them In 2nd Quarter [PaEN]
-- Creating New Brownfields: Oil & Gas Well Drillers Notified DEP They Are Cleaning Up Soil & Water Contaminated With Chemicals Harmful To Human Health, Aquatic Life At 272 Locations In PA [PaEN]
-- New Penn State Study Finds Runoff From Conventional Oil & Gas Wastewater Dumped On Unpaved Roads Contains Pollutants That Exceed Human-Health, Environmental Standards [5.27.22]
-- Conventional Oil & Gas Drillers Reported Spreading 977,671 Gallons Of Untreated Drilling Wastewater On PA Roads In 2021 [PaEN]
-- Senate Hearing: Body Of Evidence Is 'Large, Growing,’ ‘Consistent’ And 'Compelling' That Shale Gas Development Is Having A Negative Impact On Public Health; PA Must Act [PaEN]
-- Environmental Health Project: PA’s Natural Gas Boom - What Went Wrong? Why Does It Matter? What Can We Do Better To Protect Public Health? [PaEN]
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Related Articles This Week:
-- DEP Collects $147,250 Penalty From Rice Drilling B LLC For Erosion & Sedimentation Violations In Greene County; DEP Found Rice Had Hundreds Of Other Violations, Including Abandoning Wells Without Plugging Them [PaEN]
-- Fall Visitors To Conventional Oil & Gas Drilling Areas Urged To Report Illegal Road Dumping Of Drilling Wastewater [PaEN]
-- Environmental Groups Raise Serious Compliance Issues With Olympus Energy-- Over 600 Violations On 13 DEP Permits-- In Comments On Proposed Shale Gas Drilling Pad In Allegheny County [PaEN]
-- Washington County Community Meeting Updates Residents On PA Health & Environment Studies, Discusses Health Impacts Of Shale Gas Development [PaEN]
[Posted: October 5, 2022] PA Environment Digest