4/14/16 - CONSENT AGMT AND FINAL ORDER ISSUED, ASSESSING A PENALTY OF $6525, DUE WITHIN 60 DAYS.
ALLEGATIONS:
ON MAY 28, 2998, EPA ISSUED TO WADE ENERGY THE UIC PERMIT FOR THIS WELL. ON MAY 1, 2014, RESPONDENT ASSUMED OWNERSHIP AND OPERATIONAL CONTROL OF THE SUBJECT WELL AND BEGAN ACTIVELY INJECTING PRODUCED FLUIDS. THE PERMIT AND THE REGS FOUND AT 40 CFR 144.51(k)(3) STATE THAT THIS PERMIT IS NOT TRANSFERABLE TO ANY PERSON W/OUT NOTICE TO EPA. 40 CFR 144.38(b) ALLOWS THAT ANY UIC PERMIT FOR A WELL NOT INJECTING HAZARDOUS WASTE OR INJECTING CARBON DIOXIDE FOR GEOLOGIC SEQUESTRATION MAY BE AUTOMATICALLY TRANSFERRED. 40 CFR 144.38(b)(2) REQUIRES THE NEW PERMITTEE TO DEMONSTRATE THE FINANCIAL RESPONSIBILITY AND RESOURCES TO CLOSE, PLUG, AND ABANDON THE SUBJECT WELL IN AN EPA-APPROVED MANNER.
RESPONDENT, AS THE NEW PERMITTEE, HAS NOT DEMONSTRATED FINANCIAL RESPONSIBILITY AND RESOURCES TO CLOSE, PLUG AND ABANDON THE SUBJECT WELL IN AN EPA-APPROVED MANNER.
THEREFORE, RESPONDENT IS IN VIOLATION OF THE SDWA AND 40 CFR 144.38(b)(2) FOR FAILING TO DEMONSTRATE FINANCIAL RESPONSBILITY AND RESOURCES TO CLOSE, PLUG AND ABANDON THE SUBJECT WELL.
PART II, SECTION G, PARA 3 OF THE UIC PERMIT REQUIRES THAT A DEMONSTRATION OF MECHANICAL INTEGRITY IN ACCORDANCE WITH 40 CFR 146.8 BE MADE NO LATER THAN 5 YEARS FROM THE LAST APPROVED DEMONSTRATION.
A MECHANICAL INTEGRITY TEST (MIT) TO DEMONSTRATE THE MECHANICAL INTEGRITY OF THE FOLLOWING ACTIVE PERMITTED SUBJECT WELL IS