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Petro Erie, Inc. Appeals DEP’s July Field Order To Clean Up Conventional Oil Well Wastewater Spill Contaminating Village Of Reno’s Water Supply In Venango County; 2nd Appeal May Be Coming

On August 18, Petro Erie, Inc. filed an appeal with the Environmental Hearing Board of the field order DEP issued on July 21, 2023 ordering the company to cleanup the conventional oil well wastewater spill that contaminated the Village of Reno’s water supply in Venango County near the Lower Leno 6 well. [Docket No. 2023063]

The appeal lacked any specific grounds for appeal except to say “The Department failed to adequately and properly administer and enforce laws, regulations, rules and/or policies; the Department’s action was arbitrary, capricious, unreasonable and/or contrary to law.”

The written appeal went on to say “and such other objections as may be raised by amendment and/or revealed through discovery” [which means they hope to identify specifics that would justify their appeal during discovery].

The appeal also said a “related appeal will be filed in the near future” without giving any specifics [which probably means the company plans to appeal DEP’s follow up order on August 16 to provide the Village of Reno with a replacement water supply]. [Read more here.]

The appeal did not, so far, request the EHB to issue a supercedeas which would have delayed any action Petro Erie, Inc. took to respond to cleanup the wastewater spill and provide replacement water under DEP’s order until the appeal could be resolved.

The Environmental Hearing Board then issued a pre-hearing order laying out the schedule for discovery--

-- Parties must file a joint statement about a possible settlement by October 17, 2023

-- All discovery must be completed by February 14, 2024

-- All dispositive motions must be filed by March 15, 2024

The parties my filed an alternative to this scheduled by October 17, 2023

Click Here for a copy of the appeal. Click Here for DEP’s July Field Order. Click Here for EHB pre-hearing order.

[New Wastewater Spills Found

[On August 21, 2023, DEP did a detailed inspection of conventional oil well wastewater tanks near the Lower Reno 1 well operated by Petro Erie, Inc. in Sugarcreek Borough, Venango County and found a pipe running from wastewater tanks into a ditch with a visible impact area from past discharges. Read more here.]

Visit DEP’s Northwest Regional Office Venango Water Company/ Petro Erie, Inc. Investigation webpage for more information.

Aqua Pennsylvania has set up a dedicated Venango webpage to provide updates to residents about its emergency management of the Venango Water Company.

Background

In response to a complaint on July 20, 2023, the Department of Environmental Protection has been investigating a leak from production wastewater tanks operated by Petro Erie, Inc. at the Lower Reno conventional oil well lease and how it contaminated 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.”

The order remains in effect.

DEP’s July 21, 2023 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. and near the Lower Reno 6 conventional oil well.

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.”

On July 31, 2023, DEP met on site 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.”

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 for the production wastewater tanks.

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 contaminated 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.”

“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.

PUC Order

The Derrick reported on August 16 the Public Utility Commission has issued an emergency order to Aqua Pennsylvania to take over the operation of the Venango Water Company Village of Reno water supply contaminated by release of conventional oil well wastewater in Venango County.

Aqua Pennsylvania has set up a dedicated Venango webpage to provide updates to residents.

Aug. 16 DEP Order

On August 19, The Derrick newspaper reported DEP’s Oil and Gas Program issued an administrative order to Petro Erie, Inc. to provide temporary water and take action to restore or replace the water supply for the Village of Reno contaminated by a release of wastewater from a conventional oil well field the company operates in Venango County.

Click Here for a copy of the order DEP hand-delivered the order to Petro Erie, Inc. on August 16.

The Derrick also reported DEP’s sampling of the water supply found elevated levels of aluminum, barium, magnesium, manganese, chloride, total dissolved solids, sodium and zinc in the water typically found in oil and gas wastewater.

[DEP’s sampling does not routinely include radioactive radium 226 and 228 or PFAS ‘forever chemicals’ which often can be present in oil and gas wastewater.]

Petro Erie, Inc. is also required to reimburse the Venango Water Company, which owns the Reno water system, and Aqua Pennsylvania, which has been providing temporary water and taking steps to restore the system under a Public Utility Commission emergency order, for any temporary and permanent increased operating and maintenance costs resulting from the contamination caused by the spill.

The DEP order also requires Petro Erie, Inc. to submit a plan to DEP for remediation of the area impacted by the release of the wastewater within 30 days.

During DEP’s first inspection of the wastewater tank leak from the conventional oil well field operated by Petro Erie, Inc. on July 21, DEP gave the operator until August 11 to submit a written plan for cleaning up the spill and bringing the wells and tank into compliance.

As of August 19, DEP has not posted any response from Petro Erie, Inc. to that request.

Related Articles - Petro Erie:

-- The Derrick - Makayla Keating: DEP Cites Petro Erie With 5 Additional Violations [For More Leaking Conventional Oil Well Wastewater Tanks In Sugarcreek Boro, Venango County, Near Contaminated Reno Water Supply] [PDF of article]

-- The Derrick: No Word Yet On When Do Not Consume Water Advisory Will Be Lifted For The Village Of Reno Water Supply Contaminated By Conventional Oil Well Wastewater In Venango County [PDF of article]

-- The Derrick: DEP Opens Webpage For Updates On Village Of Reno Water Supply, Venango County; Actions Related To Petro Erie, Inc. Conventional Oil Driller Who Contaminated The Water [PDF of article]

-- The Derrick - Letter To Editor: Disappointed In Lack Of Involvement In Sen. Hutchinson, Rep. James To Resolve Village Of Reno Water Contamination Issue In Venango County [Polluted By Conventional Oil Well Wastewater Spill] [PDF of Article]

DEP Environmental Justice Proposal:

-- New DEP Interim Final Environmental Justice Policy, Definition Of Environmental Justice Areas Effective Sept. 16; Public Comments Accepted Thru Oct. 29 [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - August 19 to 25 - More Abandoned Conventional Wells; Gas Frack-Out; More Leaking Wastewater Tanks; Equitrans Cleanup Continues [PaEN]

-- DEP Finds 2 More Petro Erie, Inc. Conventional Oil Well Wastewater Tanks With A Pipe Leading To A Discharge Area In A Ditch In Sugarcreek Boro, Venango County [PaEN]

-- Petro Erie, Inc. Appeals DEP’s July Field Order To Clean Up Conventional Oil Well Wastewater Spill Contaminating Village Of Reno’s Water Supply In Venango County; 2nd Appeal May Be Coming [PaEN]

-- Equitrans Determined Leak Of Over 1.1 Billion Cubic Feet Of Natural Gas From Cambria County Storage Facility Was Caused By Corrosion In Conventional Gas Well Casing [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - August 26 [PaEN]

-- Susquehanna River Basin Commission To Vote Sept. 14 On Budget, Climate Change Resolution, Water Withdrawal Requests, Including 8 Shale Gas Drilling Operations - 1 In Exceptional Value Loyalsock Creek [PaEN]