STATE OF
INDIANA |
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BEFORE THE
INDIANA DEPARTMENT |
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COMMISSIONER
OF THE DEPARTMENT Complainant, v. CITATION OIL
& GAS CORP. d/b/a BOZEMAN–MAIER CENTRAL TANK BATTERY, Respondent. |
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AGREED
ORDER
Complainant
and Respondent desire to settle and compromise this action without hearing or
adjudication of any issue of fact or law, and consent to the entry of the
following Findings of Fact and Order.
Pursuant to IC 13-30-3-3, entry into the terms of this Agreed Order does
not constitute an admission of any violation contained herein. Respondent's entry into this Agreed Order
shall not constitute a waiver of any defense, legal or equitable, which
Respondent may have in any future administrative or judicial proceeding, except
a proceeding to enforce this order.
I. FINDINGS OF FACT
1.
Complainant is the Commissioner (“Complainant”)
of the Indiana Department of Environmental Management (“IDEM”), a department of
the State of Indiana created by Indiana Code (“IC”) 13-13-1-1.
2.
Respondent is Citation Oil & Gas Corp.
(“Respondent”), which owns and operates Bozeman - Maier Central Tank Battery, a
stationary crude oil production facility with Plant ID No. 051-00057, located
at S CR 1875 W in Griffin, Gibson County, Indiana (“Site”).
3.
IDEM has jurisdiction over the parties and the
subject matter of this action.
4.
Pursuant to IC 13-30-3-3, IDEM issued a Notice
of Violation (“NOV”) in conjunction with this Agreed Order via Certified Mail
to:
Curtis F. Harrell, President CT Corporation System, Registered
Agent
Citation Oil & Gas Corp. Citation Oil & Gas Corp.
14077 Cutten Road 150 West Market Street, Suite 800
Houston, TX 77069 Indianapolis, IN 46204
5.
During an investigation conducted by a
representative of IDEM, the following violations were found:
a. Pursuant to 326 IAC 2-5.1-3(a), prior to
commencing construction of any emission unit which has potential emissions of
twenty-five (25) tons or more per year of any of the regulated pollutants
specified in clause (E) of this rule, the source shall apply for and obtain a
construction permit.
Respondent constructed equipment that produces regulated pollutants without
first applying for and obtaining a construction permit, in violation of 326 IAC
2-5.1-3(a).
b. Pursuant to 326 IAC 2-7-2, any major
source is required to obtain a permit prior to the operation of equipment that
produces regulated emissions.
Respondent failed to obtain a permit
prior to its operation of equipment that produces emissions, in violation of
326 IAC 2-7-2.
c.
Pursuant to 326 IAC 8-1-6, new facilities, (as
of January 1, 1980) that have potential emissions of twenty-five (25) tons or
more Volatile Organic Compounds (VOC’s) per year, shall reduce VOC emissions
using Best Available Control Technology (BACT).
Respondent failed to reduce VOC
emissions from the stationary crude oil production plant using BACT, in
violation of 326 IAC 8-1-6.
d.
Pursuant to 40 CFR 60, Subpart OOOO, § 60.5416,
for each closed vent system or cover at the storage vessel, a monthly
inspection must be performed.
Respondent failed to perform monthly
visual inspections for each closed vent system or cover at the affected storage
vessel, in violation of 40 CFR 60, Subpart OOOO, § 60.5416.
e.
Pursuant to 40 CFR 60, Subpart OOOO, §
60.5395(d)(1)(ii), any source with an affected
facility must reduce VOC emissions by 95% by no later than April 15, 2014.
Respondent failed to reduce VOC
emissions by 95% prior to April 15, 2014, in violation of 40 CFR 60, Subpart
OOOO, § 60.5395(d)(1)(ii).
f.
Pursuant to 40 CFR 60, Subpart OOOO, § 60.5395,
any source with storage vessels that produce greater than or equal to six (6)
tons per year of volatile organic compounds (“VOC”) constructed or modified
after August 23, 2011, must comply with initial compliance demonstrations, work
practice standards, recordkeeping, and reporting requirements upon start up for
each affected vessel.
Respondent failed to comply with initial
compliance demonstrations, work practice standards, record keeping, and
reporting requirements by April 15, 2014, in violation of 40 CFR 60, Subpart
OOOO, § 60.5395.
g.
Pursuant to 40 CFR 60, Subpart OOOO, § 60.5420,
a source must submit an initial notification of startup, and annual compliance
reports for each affected facility and maintain those records for no less than
five (5) years.
Respondent failed to submit the initial
notification for each affected storage vessel by January 15, 2015, the annual
reports which were due on January 15, 2016, and failed to maintain the
compliance records, in violation of 40 CFR 60, Subpart OOOO, § 60.5420.
6.
Respondent installed a flare to reduce VOC
emissions in August, 2014.
7.
Respondent submitted all necessary reports to
comply with 40 CFR 60, Subpart OOOO on August 4, 2016 and has implemented a
compliance plan to maintain compliance.
8.
Respondent submitted a permit application on
June 13, 2016 to resolve permitting issues. Federally Enforceable State
Operating Permit (“FESOP”) No. 051-37291-00057 was issued on December 5, 2017.
9.
In recognition of the settlement reached,
Respondent waives any right to administrative and judicial review of this
Agreed Order.
II.
ORDER
1.
This Agreed Order shall be effective
(“Effective Date”) when it is approved by Complainant or Complainant’s
delegate, and has been received by Respondent.
This Agreed Order shall have no force or effect until the Effective
Date.
2.
Respondent shall comply with rules listed in the
findings above at issue.
3.
All submittals required by this Agreed Order,
unless Respondent is notified otherwise in writing by IDEM, shall be sent to:
Jennifer
Bailey, Case Manager |
Compliance
and Enforcement Branch – Mail Code 61-53 |
Indiana
Department of Environmental Management |
100 North
Senate Avenue |
Indianapolis,
IN 46204-2251 |
4.
Respondent is assessed and agrees to pay a
civil penalty of Nine Thousand Dollars ($9,000). Said penalty amount shall be due and payable
to the Environmental Management Special Fund within thirty (30) days of the
Effective Date; the 30th day being the “Due Date”.
5.
Respondent agrees to pay avoided FESOP fees in
the amount of Five Thousand Six Hundred Twenty Five Dollars ($5,625.00). Avoided FESOP fees are assessed for the
period of January, 2015 to November, 2017, during which Respondent was
operating without the required FESOP permit.
Said penalty amount shall be due and payable to the Title V Investments
Fund within thirty (30) days of the Effective Date.
6.
Civil penalties are payable by check to the
“Environmental Management Special Fund.”
Checks shall include the Case Number of this action and shall be mailed
to:
IDEM
Office of Legal Counsel |
IGCN,
Rm N1307 |
100
N Senate Ave |
Indianapolis,
IN 46204 |
7.
FESOP permit fees are payable by check to the
“Title V Investments Fund.” A cover
letter shall accompany the check specifying that the FESOP fees shall be
deposited into the Title V Investments Fund.
The check and cover letter shall include the Case Number of this action
and shall be mailed to:
IDEM Office of Legal Counsel
IGCN, Rm N1307
100 N Senate Ave
Indianapolis, IN 46204
8.
This Agreed Order shall apply to and be binding
upon Respondent and its successors and assigns. Respondent’s signatories to this
Agreed Order certify that they are fully authorized to execute this Agreed
Order and legally bind the party they represent. No change in ownership, corporate, or
partnership status of Respondent shall in any way alter its status or
responsibilities under this Agreed Order.
9.
In the event that the monies due to IDEM
pursuant to this Agreed Order are not paid on or before their Due Date,
Respondent shall pay interest on the unpaid balance at the rate established by
IC 24-4.6-1. The interest shall be
computed as having accrued from the Due Date until the date that Respondent
pays any unpaid balance. Such interest
shall be payable to the Environmental Management Special Fund, and shall be
payable to IDEM in the manner specified in Paragraph’s 6 and 7, above.
10.
In the event that any terms of this Agreed
Order are found to be invalid, the remaining terms shall remain in full force
and effect and shall be construed and enforced as if this Agreed Order did not
contain the invalid terms.
11.
Respondent shall provide a copy of this Agreed
Order, if in force, to any subsequent owners or successors before ownership
rights are transferred. Respondent shall ensure that all
contractors, firms and other persons performing work under this Agreed Order
comply with the terms of this Agreed Order.
12.
This Agreed Order is not and shall not be
interpreted to be a permit or a modification of an existing permit. This Agreed Order, and IDEM’s review or
approval of any submittal made by Respondent pursuant to this Agreed Order,
shall not in any way relieve Respondent of its obligation to comply with the
requirements of its applicable permit or any applicable Federal or State law or
regulation.
13.
Complainant does not, by its approval of this
Agreed Order, warrant or aver in any manner that Respondent’s compliance with
any aspect of this Agreed Order will result in compliance with the provisions
of any permit, order, or any applicable Federal or State law or
regulation. Additionally, IDEM or anyone
acting on its behalf shall not be held liable for any costs or penalties
Respondent may incur as a result of Respondent’s efforts to comply with this
Agreed Order.
14.
Nothing in this Agreed Order shall prevent or
limit IDEM’s rights to obtain penalties or injunctive relief under any
applicable Federal or State law or regulation, except that IDEM may not, and
hereby waives its right to, seek additional civil penalties for the same
violations specified in the NOV.
15.
Nothing in this Agreed Order shall prevent IDEM
or anyone acting on its behalf from communicating with the EPA or any other
agency or entity about any matters relating to this enforcement action. IDEM or anyone acting on its behalf shall not
be held liable for any costs or penalties Respondent may incur as a result of
such communications with the EPA or any other agency or entity.
16.
This Agreed Order shall remain in effect until
IDEM issues a Resolution of Case letter to Respondent.
TECHNICAL
RECOMMENDATION: |
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RESPONDENT: |
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Department
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Citation Oil & Gas Corp. |
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David
P. McIver, Chief |
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Office
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COUNSEL
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APPROVED
AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL |
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MANAGEMENT THIS |
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DAY OF |
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2018. |
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For
the Commissioner |
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Signed
on April 30, 2018 |
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Keith
Baugues, Assistant Commissioner |
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Office
of Air Quality |
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Indiana
Department of Environmental Management |
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