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DEP Investigates Conventional Oil Well Wastewater Leak As Possible Source Of Village Of Reno Water Supply Contamination In Venango County; Customers Under Do Not Consume Advisory For 2+ Weeks

In response to a complaint on July 20, 2023, the Department of Environmental Protection has been investigating whether a leak from production wastewater tanks operated by Petro Erie, Inc. at the Lower Reno conventional oil well lease impacted the Village of Reno water supply operated by the Venango Water Company in Sugarcreek Borough, Venango County.

The Venango Water Company notified its water customers on July 21, 2023 not to drink the water and do not boil the water saying--

“On July 20, 2023, a discharge from a brine storage tank uphill of the source for Venango Water Company was identified. Due to the potential for contamination of the source, consumption of the water at Venango Water Company is not advised due to the risk to public health.”

DEP later said the advisory restricts human consumption, but doesn’t prohibit “showering, bathing, doing laundry or cleaning.

The Company also advised customers to reduce water use by 20 to 30 percent to help maintain water supplies to all customers.

The Company serves about 210 residential and non-residential customers in the Village of Reno.

Since the notice, the Reno Neighborhood Association has been working with the Reno Volunteer Fire Department on emergency water distribution to families affected and asking for monetary donations for refilling the water tank for the water system.

Sugarcreek Borough is also working with residents and the Department of Environmental Protection to respond to the emergency.

DEP Investigation

On July 21, 2023, DEP’s inspection report described an “active discharge” of fluid from the production wastewater tank battery on the Lower Reno oil lease operated by Petro Erie, Inc.

DEP noted the Town of Reno is under a “Do Not Consumer Advisory” based on an increase in total dissolved solids in the Bellows Spring Cistern.

The report said the Petro Erie wastewater tank battery consists of two 8,820 gallon steel tanks and four 4,200 gallon poly tanks for a total capacity of 34,440 gallons.

DEP reported “The valve on the drain pipe is open and fluid is flowing to the ground. The area inside the dike appears to have been impacted by produced fluid from the tanks. A pipeline between two of the poly tanks was actively dripping fluid.”

“The discharge from the dike drain flows south across an open area and into a wooded area. There is a visible impact area extending from the dike drain in an irregular pattern approximately 80 yards from the earthen dike and approximately ranging from 6' to 25' in width.

“An oil sheen is visible within the flowing water and dead vegetation is also observed including several large cherry trees within the impacted area. The amount of discharged fluid is unknown and based upon the observations onsite it appears that the discharge has been occurring for some time.

“The dike drain was closed by DEP staff at 8:45 a.m. to stop the continued discharge of fluid outside of the earthen dike.”

“While onsite the Department talked with the operator/owner (Harry Rhoades) via a phone conversation. The discharge and the potential that the discharge may be impacting the public water supply was discussed with Mr. Rhoades.

“Mr. Rhoades insisted that he does not discharge his brine and that he could provide disposal documents. It was stated that the dike drain was left open because of forecasted rain.”

DEP issued notices of violation for the fluid discharges, well construction violations, for failure to submit production and waste generation and well integrity reports and for other violations.

DEP requested the operator to file a written report by August 11, 2023 on how he was going to bring the production tank battery into compliance.

On July 31, 2023, DEP met onsite with Harry Rhoades to review the violations and “made him aware of the fact that there are more than several concerns with his [Lower Reno wells] lease.”

Rhoades told DEP he is the only owner of Petro Erie, Inc., he pumps the wells on the lease himself, he didn’t know what occurred at the site (referring to the discharge of fluid), he hauled three loads of production wastewater from the site-- one to Ohio and two to a fracking job in West Virginia and said the tank battery and the impacted area were present when he purchased the oil wells.

DEP recommended Rhoades hire an environmental consultant to help him through the cleanup process and use the Act 2 Land Recycling Program standards regarding the discharge of produced wastewater and the “potential impact of the Reno public water supply.”

The inspection report reiterated the need to file a written report by August 11, 2023 on how the operator expects to bring the well area into compliance.

On August 3, 2023, DEP did a followup inspection to collect additional water samples around the impacted area and found the drain to the dike remains closed. Approximately 4 to 5 inches of oily water was pooled inside the dike.

Water samples were also collected at the Bellows Spring Cistern for analysis. DEP confirmed there was no other oil and gas activity between the tank battery and the Bellows Spring Cistern for the Village of Reno water supply.

DEP reported a phone call with Rhoades in the same inspection report to discuss the status of the production tank site and the cleanup.

“The Department clearly communicated the importance and urgency of starting the cleanup process at the site including the earthen dike area,” according to the inspection report. “Mr. Rhoades seemed to understand.”

Rhoades reported he is retaining a consultant-- Moody and Associates-- and said a water truck was scheduled at the site next week to empty the dike and production wastewater tanks.

As of August 3, DEP said the Village of Reno was still under a “Do Not Consume” advisory.

“The phone call was concluded with Mr. Rhoades indicating that he is starting the process to clean things up,” according to DEP’s inspection report.

The operator is still under an August 11, 2023 deadline to submit a written report to DEP on how he will bring the production area into compliance.

NewsClips - Reno Water Contamination:

-- The Derrick: Volunteers Signing Up To Help With Emergency Water Distribution In Reno

-- The Derrick: Reno Water Customers Turn Out To Air Concerns About Ongoing Water Issues At Sugarcreek Borough Council Meeting

-- The Derrick: Reno Water Customers Advised Not To Consume Water

-- Click Here for a PDF of these articles.

-- The Derrick - Makayla Keating: Do Not Consume Water Advisory Continues For Reno, Venango County, Aug. 11 Event Set To Raise Money For Water Fund [PDF of article ]

-- The Derrick - Makayla Keating: DEP Inspection Report Outlines Findings In Reno, Venango County Water System Contamination Case [PDF of article]

PA Oil & Gas Industry Public Notice Dashboards:

-- DEP Investigates Conventional Oil Well Wastewater Leak As Possible Source Of Village Of Reno Water Supply Contamination In Venango County; Customers Under Do Not Consume Advisory For 2 Weeks+ [PaEN]