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Petro Erie, Inc. Says It Lacks The Financial Ability To Comply With DEP’s Order To Clean Up Conventional Oil Well Wastewater That Contaminated The Village Of Reno’s Water Supply; Will Taxpayers Be Stuck With Cleanup Costs Again?

On September 7, Petro Erie, Inc. filed an amendment to its Environmental Hearing Board appeal of DEP’s order to clean up a release of conventional oil well wastewater saying ‘appellant lacks the financial ability to comply with the Order.”

On August 18, Petro Erie, Inc. filed the original appeal of DEP’s July 21, 2023 order requiring the company to clean up the spill. Read more here.

The conventional wastewater release from Petro Erie’s production wastewater tanks was discovered on July 20 and was found to have contaminated the Village of Reno’s water supply in Sugarcreek Borough, Venango County leaving the community of over 200 residents and businesses without clean water for more than six weeks.

The water supply emergency continues with drinking water trucked into the community every week. Read more here.

On August 16, DEP issued a second order to Petro Erie, Inc. to restore the Village of Reno’s water system as well as pay for the added costs of trucking emergency water and other operational expenses caused by Petro Erie’s wastewater release. Read more here.

Petro Erie, Inc. has not yet filed an appeal of this second order.

On August 21, a DEP inspection found two more Petro Erie, Inc. conventional oil well wastewater tanks with a pipe running from the tanks to a discharge area in a ditch with clear indications of wastewater dumping. Read more here.

On August 29, A DEP inspection found Petro Erie, Inc. had begun some cleanup at the site of the original wastewater tank release, but there was no activity at the site the day of the inspection. Read more here.

Sadly, on September 9, Sugarcreek Borough Mayor Charlie McDaniel, who had been a leader in his community responding to the Village of Reno water emergency for the last six weeks, was found deceased in his home. Read more here.

Amended Appeal

Among the specific allegations in the amended appeal filed by Petro Erie, Inc. were--

-- Appellant lacks the financial ability to comply with the Order;

-- Certain of the requirements of the Order are or may be impossible for Appellant to comply with;

-- Appellant disputes all the Department’s determinations, including but not limited to determinations of violations, as incorrect, contrary to evidence, unsupported by evidence, and/or contrary to law;

-- According to the handwritten Description of Violations supporting the Order, “Production fluids were observed running out of the open drain valve at the time of the inspection” Appellant disputes this occurred;

-- The Department improperly administered and enforced the Oil and Gas Act and regulations under the circumstances;

-- The Department otherwise failed to adequately and properly administer and enforce applicable laws, regulations, rules, technical guidance and/or policies;

-- The Department's actions were contrary to the Pennsylvania State Constitution

Click Here for a copy of the amended appeal.

The latest information from DEP’s Northwest Regional Office is available on its Venango Water Company/ Petro Erie Inc. Investigation webpage.

Visit the Aqua Pennsylvania Venango webpage for more information on activities related to the water supply system the company is operator on an emergency basis for the Venango Water Company.

Background

This is yet another example of how conventional oil and gas well operators are not required to have the financial resources needed to cover the environmental cleanup costs of their operations; whether it’s well plugging or environmental damage.

In December, DEP issued the first-ever assessment of how well conventional oil and gas operators comply with state environmental laws. They found continuing to abandon oil and gas wells to be the most frequent violation DEP deals with, saying between 400 and 600 conventional wells continue to be abandoned each year by operators. Read more here.

Conventional oil and gas operators have abandoned an estimated 250,000 or more wells in Pennsylvania, letting taxpayers cover the billions of dollars in costs to plug them.

The December report also said conventional operators had a “culture of non-compliance” that is “an acceptable norm in the conventional oil and gas industry.” Read more here.

A report issued in April by the Environmental Defense Fund said a new study found 55,000 oil and gas wells owned by operators in Pennsylvania are at high risk of becoming abandoned leaving state taxpayers holding the bag for $3.7 billion in well plugging and cleanup costs. Read more here.

The same report said another 51,000 conventional wells were at risk of being transferred to low solvency owners. Read more here.

A hearing in April by the House Environmental Resources and Energy Committee further documented significant noncompliance by conventional oil and gas well owners, including the pervasive practices of well abandonment. Read more here.

In May, the House Environmental Resources and Energy Committee reported out House Bill 962 (Vitali-D-Delaware) that corrects the flaws in Act 96 by a party-line vote-- Republicans opposing. The bill remains on the House Calendar for action. Read more here.

On August 24, PennFuture, the Sierra Club, Clean Air Council, Protect Penn-Trafford, and Earthworks announced they have filed a joint lawsuit in Commonwealth Court against the Commonwealth of Pennsylvania, including the General Assembly and Gov. Shapiro, challenging the constitutionality of a law that prevents the Commonwealth from protecting communities, public health and the environment from the harm caused by abandoned conventional oil and gas wells.

The groups said thousands of abandoned, unplugged conventional wells in Pennsylvania leak methane and other harmful chemicals into the air and water, harming public health and worsening the climate crisis.

They mar communities, reduce property values, and depress the local tax base. They are also at risk of explosion. Read more here.

(Photos: top- Petro Erie, Inc. conventional wastewater tanks that released wastewater contaminating Village of Reno’s water supply; middle-bottom-- 2nd set of Petro Erie, Inc. wastewater tanks with pipe running to a ditch showing clear signs of wastewater releases, courtesy of DEP inspection reports.)

NewsClips - Village Of Reno:

-- The Derrick - Makayla Keating: Residents In Village Of Reno, Venango County Still Reporting Problems With Water Supply Contaminated By Conventional Oil Well Wastewater; Late Mayor Of Sugarcreek Boro Praised [PDF of Article]

-- The Derrick - Makayla Keating: Some Residents Of Village Of Reno, Venango County Didn’t Receive Water Updates Relating To Contamination Of Their Water Supply By Conventional Oil Well Wastewater [PDF of Article]

-- The Derrick - Makayla Keating: The Late Sugarcreek Boro Mayor Charlie McDaniel Praised For Leadership Responding To Village Of Reno Water Supply Emergency Caused By Conventional Oil Well Wastewater Spill [PDF of article]

-- The Derrick: Oil Region National Heritage Area To Hold Oil Heritage Energy Security Conference Oct. 12-13 In Venango County [Some Events Invitation Only] [PDF of article]

Related Articles - Village Of Reno:

-- 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 [8.5.23]

-- Mayor Of Sugarcreek Asks For Donations To Refill Village Of Reno Water Tank After Contamination In Venango County; Emergency Water Distribution Resumes; Contamination From Conventional Oil Wastewater Tanks Suspected [8.9.23]

-- The Derrick: DEP Issues Order To Petro Erie, Inc. To Restore Village Of Reno Water System, Cleanup Contamination Caused By Its Conventional Well Wastewater Release; 1 Month Without Clean Water [8.19.23]

-- 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 [8.21.23]

-- 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 [8.22.23]

-- Do Not Consume Water Advisory Lifted In Village Of Reno; Petro Erie, Inc. Barely Begins Cleanup Of Conventional Oil Wastewater Spill Site That Contaminated The Water Supply In Venango County [9.2.23]