Indiana Department of Environmental Management

We make Indiana a cleaner, healthier place to live.

Frank O'Bannon 100 North Senate Avenue

Governor P.O. Box 6015

Indianapolis, Indiana 46206-6015

Lori F. Kaplan (317) 232-8603

Commissioner (800) 451-6027

www.ai.org/idem

 

 

STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT

) SS: OF ENVIRONMENTAL MANAGEMENT

COUNTY OF MARION )

COMMISSIONER OF THE DEPARTMENT )

OF ENVIRONMENTAL MANAGEMENT, )

)

Complainant, )

)

vs. ) Case Nos. 2001-11091-S

) 2001-11092-S

YOCKEY OIL, INC., AND )

PRIME WEST ENERGY, INC., )

)

Respondents. )

 

AGREED ORDER

The Complainant and the Respondents 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.

 

I. FINDINGS OF FACT

1. Complainant is the Commissioner (AComplainant@) of the Indiana Department of Environmental Management, a department of the State of Indiana created by IC 13-13-1-1.

2. Respondents are Yockey Oil, Inc., the manager and operator crude oil wells and ancillary equipment located at the intersection of Broadway and County Line Road (Sec. 12 NE Twp. 7 S. Range 12 W.), Evansville, Posey County, Indiana ("Site"), and Prime West Energy, Inc., the owner of the crude oil wells and ancillary equipment at the Site.

3. The Indiana Department of Environmental Management (AIDEM@) 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 via Certified Mail to:

Yockey Oil, Inc. CT Corporation System, R.A.

Carolyn S. Leadtka, President Yockey Oil, Inc.

P.O. Drawer 70 36 S. Pennsylvania Street Suite 700

Olney, IL 62450 Indianapolis, IN 46204

Prime West Energy, Inc. Prime West Energy, Inc.

Kent MacIntyre, President John Alden, EHSM

1600 530 8th Avenue Sw 1600 530 8th Avenue Sw

Calgary, AB T2P3S8 Calgary, AB T2P3S8

    1. Investigations, on October 2 and 3, 2001, were conducted at the Site by a representative of IDEM’s Office of Land Quality. The following violations were in existence or observed at the time of these investigations:

A. Pursuant to 327 IAC 2-6.1-7, any person who operates, controls or maintains any mode of transportation or facility from which a spill occurs shall, upon discovery of a reportable spill to the soil or surface waters of the state, contain the spill, if possible, to prevent additional spilled material from entering the waters of the state; undertake or cause others to undertake activities needed to accomplish a spill response; and as soon as possible, but within two (2) hours of discovery, communicate a spill report to the Department of Environmental Management, Office of Environmental Response. During the above noted investigations, IDEM observed that the Respondents allowed the discharge of crude oil from the Site and failed to adequately report, contain, and respond to the spill.
    1. Pursuant to 327 IAC 2-1-6(a)(1), all waters at all times and at all places, including the mixing zone, shall meet the minimum conditions of being free from substances, materials, floating debris, oil, or scum attributable to municipal, industrial, agricultural, and other land use practices, or other discharges that will settle to form putrescent or otherwise objectionable deposits, that are in amounts sufficient to be unsightly or deleterious, that produce color, visible oil sheen, odor, or other conditions in such degree as to create a nuisance, which are in amounts sufficient to be acutely toxic to, or to otherwise severely injure or kill aquatic life, other animals, plants, or humans, and which are in concentrations or combinations that will cause or contribute to the growth of aquatic plants or algae to such a degree as to create a nuisance, be unsightly or otherwise impair the designated uses. During the above noted investigations, IDEM observed that the Respondents allowed the discharge of crude oil from the Site to waters of the state in violation of water quality standards.
    2. Pursuant to 327 IAC 5-2-2, any discharge of pollutants into waters of the state as a point source discharge is prohibited, unless in conformity with a valid NPDES permit obtained prior to the discharge. During the above noted investigations, IDEM observed that the Respondents allowed the discharge of crude oil from the Site to waters of the state without a valid NPDES permit.
    3. Pursuant to IC 13-18-4-5, it is unlawful for any person to throw, run, drain, or otherwise dispose into any of the streams or waters of this state, or to cause, permit, or suffer to be thrown, run, drained, allowed to seep, or otherwise disposed into any waters, any organic or inorganic matter that causes or contributes to a polluted condition of any waters, as determined by a rule of the board adopted under Sections 1 and 3 of this chapter. During the above noted investigations, IDEM observed that the Respondents allowed the disposal of crude oil from the Site to waters of the state in violation of 327 IAC 2-1(1) and 327 IAC 5-2-2, which are adopted by the water pollution control board, and thus violated IC 13-18-4-5.
    4. Pursuant to IC 13-30-2-1(1), no person may discharge, emit, cause, allow, or threaten to discharge, emit, cause, or allow any contaminant or waste, including any noxious odor, either alone or in combination with contaminants from other sources, into the environment or into any publicly owned treatment works in any form which causes or would cause pollution which violates or which would violate rules, standards, or discharge or emission requirements adopted by the appropriate board under the environmental management laws. During the above noted investigations, IDEM observed that the Respondents allowed the discharge of crude oil from the Site to waters of the state in violation of 327 IAC 2-1-6(a) and 327 IAC 5-2-2, which are rules adopted by the water pollution control board, and thus violated IC 13-30-2-1(1).

6. IDEM reserves, and this Agreed Order is without prejudice to, all rights against Respondents with respect to all violations or matters not expressly included within the Findings of Fact. Notwithstanding any other provision of this Agreed Order, the State reserves the right to institute proceedings in a new action seeking recovery of Natural Resource Damages pursuant to the Comprehensive Environmental Response, compensation, and Liability Act, (CERCLA), 42 USC Section9601 et. Seq., the Clean Water Act, 33 USC Section 1251 et seq., or the Oil Pollution Act, Section 2701 et seq. based on the matters addressed herein.

7. In recognition of the settlement reached, Respondent waives any rights 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 the Complainant or her delegate, and has been received by the Respondents. This Agreed Order shall have no force or effect until the Effective Date.
    1. Within thirty (30) days of the Effective Date of this Agreed Order, Respondents shall submit a Spill Response Plan. Attachment A of this Agreed Order outlines the elements that need to be included in a Spill Response Plan.
    2. Respondents shall, within sixty (60) days of the Effective Date of this Agreed Order, submit a Site Investigation Plan (SIP) and schedule that addresses the delineation of the vertical and horizontal extent of contamination of crude oil that was spilled/released at the Site. The SIP and schedule shall be subject to review, modification, approval or denial by IDEM. If IDEM identifies deficiencies in the SIP and/or schedule, the Respondents shall have twenty (20) days to revise and resubmit the SIP and/or schedule to IDEM that addresses the deficiencies. The SIP shall include, but not be limited to:

A. Introduction;

B. Proposed list of contaminants to be sampled for;

C. Proposed sampling and analytical methods to be utilized;

D. Site map with proposed sampling locations marked;

E. Schedule to complete the Site Investigation;

4. Following IDEM approval of the SIP and schedule, the Respondents shall complete the site investigation according to the approved schedule. The approved SIP and schedule shall become an enforceable part of this Agreed Order.

5. The Respondents shall, within thirty (30) days of completion of the site investigation, submit a report detailing the findings of the site investigation. This report shall include, but not be limited to:

A. Introduction;

B. List of constituents sampled for;

C. Sampling and analytical methods utilized;

D. Chain of custody documentation;

    1. Analytical findings;

F. Site map showing sampling locations and extent of contamination; and

G. Conclusions and recommendations;

    1. If IDEM determines (based on the information in the Site Investigation Report noted in Order Condition 5 above) that remediation of crude oil is required, the

Respondents shall submit a Remediation Plan (RP) within thirty (30) days of receiving written notice from IDEM that an RP is due.

    1. The RP shall be subject to review, modification, approval or denial by IDEM. If IDEM determines that there are deficiencies in the RP, the Respondents shall have twenty (20) days to revise and resubmit an RP to IDEM that addresses the deficiencies. Subject to any appeal rights under IC 4-21.5, the Respondents hereby agrees to implement an approved RP within fifteen (15) days of receipt of IDEM's approval of the RP. The Respondents shall complete all of the requirements in the approved RP by the required timeframes in an approved remediation activity schedule. The approved RP, including a remediation activity schedule, shall be incorporated into this Agreed Order and shall be deemed an enforceable part thereof. The RP shall include, but not be limited to:
    1. Introduction;
    2. Proposed remediation activities;
    3. Proposed remediation levels for the contaminant(s) of concern;
    4. Proposed schedule to implement and complete remediation activities;
    5. Proposed confirmation sampling;
    6. Site map delineating area of proposed remediation activities;

8. If necessary upon completion of the RP the Respondent shall conduct activities necessary to reestablish the Site to its pre-spill condition. These activities include but are no limited to: filling excavated areas with native soil suitable to maintain vegetation, grade filled areas to contour, and seed and/or plant native vegetation to prevent erosion.

9. The Respondents shall, within thirty (30) days of completion of remediation activities, submit a report detailing the remediation activities and the findings of the confirmation sampling. This report shall include, but not be limited to:

A. Introduction;

B. Discussion of remediation activities implemented;

C. Sampling and analytical methods utilized for confirmation sampling;

D. Analytical findings of confirmation sampling;

E. Chain of custody documentation;

F. Site map showing areas of remediation activities and confirmation sampling locations;

G. Summary;

10. The Respondents shall permit an agent of IDEM to view and inspect the activities performed pursuant to the SIP and RP (if applicable). In order to facilitate such an inspection, the Respondents shall notify IDEM at least five (5) days prior to any scheduled initiation of field investigation and/or remediation activities.

      1. 11. All submittals required by this Agreed Order, unless notified otherwise in writing, shall be sent to:

         

        Dirk Andres, Enforcement Case Manager

        Office of Enforcement

        Indiana Department of Environmental Management

        100 N. Senate Avenue

        P. O. Box 6015

        Indianapolis, IN 46206-6015

        12. Respondent is assessed a civil penalty of nine thousand one hundred eighty seven dollars and fifty cents ($9,187.50). Said penalty amount shall be due and payable to the Environmental Management Special Fund within 30 days of the Effective Date of this Agreed Order.

      2. In the event the following terms and conditions are violated, the Complainant may assess and the Respondents shall pay a stipulated penalty in the following amounts:

        3. Violation Penalty

        Order Paragraph #2 $500.00 per week spill response plan is late

        Order Paragraph #3 $500.00 per week (SIP) and schedule is late

        Order Paragraph #4 $1,000.00 per week SIP approved work is late

        Order Paragraph #5 $500.00 per week findings of (SIP) are late

        Order Paragraph #6 $500.00 per week RP submittal is late

        Order Paragraph #7 $1,000.00 per week RP approved work is late

        Order Paragraph #8 $500.00 per week remediation report and sampling results are late

        Order Paragraph #9 $500.00 per violation

      3. Stipulated penalties shall be due and payable within thirty (30) days after

Respondents receive written notice that the Complainant has determined a stipulated penalty is due. Assessment and payment of stipulated penalties shall not preclude the Complainant from seeking any additional relief against the Respondents for violation of the Agreed Order. In lieu of assessment of any of the stipulated penalties given above, the Complainant may seek any other remedies or sanctions available by virtue of Respondents’ violation of this Agreed Order, or Indiana Law, including but not limited to civil penalties pursuant to IC 13-30-4.

15. 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:

 

Cashier

IDEM

100 N. Senate Avenue

P. O. Box 7060

Indianapolis, IN 46207-7060

 

16. In the event that the civil penalty required by Order paragraph 11, is not paid within thirty (30) days of the Effective Date of this Agreed Order, Respondent shall pay interest on the unpaid balance at the rate established by IC 24-4.6-1-101. The interest shall continue to accrue until the civil penalty is paid in full.

17. This Agreed Order shall apply to and be binding upon the Respondents, their successors and assigns. The Respondents' signatories to this Agreed Order certify that they are fully authorized to execute this document and legally bind the parties they represent. No change in ownership, corporate, or partnership status of the Respondents shall in any way alter its status or responsibilities under this Agreed Order.

18. In the event that any terms of the 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 the Agreed Order did not contain the invalid terms.

19. The Respondents shall provide a copy of this Agreed Order, if in force, to any subsequent owners or successors before ownership rights are transferred. Respondents shall ensure that all contractors, firms and other persons performing work under this Agreed Order comply with the terms of this Agreed Order.

20. This Agreed Order shall remain in effect until the Respondents have complied with all terms and conditions of this Agreed Order.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TECHNICAL RECOMMENDATION: RESPONDENT:

Department of Environmental Management Yockey Oil, Inc.

By: _________________________ By: _________________________

Paul Higginbotham, Chief,

Solid Waste/UST Section Printed: ______________________

Office of Enforcement

Title: ________________________

Date: ________________________ Date: ________________________

COUNSEL FOR COMPLAINANT: COUNSEL FOR RESPONDENT:

Department of Environmental Management Yockey Oil, Inc.

By: _________________________ By: ________________________

Office of Legal Counsel

Department of Environmental Management Date: ______________________

Date: _______________________ RESPONDENT:

Prime West Energy, Inc.

By:_________________________

Printed:______________________

Title:________________________

Date:________________________

COUNSEL FOR RESPONDENT:

Prime West Energy, Inc.

By:__________________________

Printed:______________________

APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL MANAGEMENT THIS _____ DAY OF ____________________, 2002.

For the Commissioner:

Signed on September 10, 2002

___________________________

Felicia A. Robinson

Deputy Commissioner

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