The New York-based oil company ordered to cease activities last
month by the state Department of Environmental Protection has
reached an agreement to allow drilling to continue.
U.S. Energy Development Inc. of Getzville, N.Y., was ordered to
pay a civil penalty of $200,000 to the DEP, and has several
requirements they’ve been ordered to comply with, including
restoring a water supply of a private residence and implementing
environmental protections at every disturbed area.
“The agreement is structured to ensure both immediate and
continuing environmental compliance and allows U.S. Energy the
opportunity to resume operations under a structured format,” said
DEP Regional Director Kelly Burch. “As part of the agreement, U.S.
Energy will operate under an environmental management plan that
will serve as a blueprint for future compliance and
development.”
The agreement documents the settlement of the cease-and-desist
order that DEP issued against U.S. Energy July 10. The July order
cited continued and numerous violations by U.S. Energy of the Oil
and Gas Act, the Clean Streams Law and the Solid Waste Management
Act.
Some of the U.S. Energy well sites that were cited in the order
are on the Allegheny National Forest and property owned by the
Bradford City Water Authority.
The violations included failure to implement measures to prevent
accelerated erosion, unpermitted discharges, failure to restore
well sites, encroachments into streams and wetlands without
obtaining required permits, and failure to plug abandoned wells.
The consent order spells out numerous requirements placed on
U.S. Energy and the timelines in which they must be completed.
Two wells drilled by U.S. Energy are within 1,000 feet of the
water well of a residence at 30 Patterson Lane, and the well became
contaminated with high levels of manganese. Within 10 days of the
date of the agreement, which was Aug. 10, U.S. Energy must submit
to the DEP a plan and schedule of actions to restore or replace the
quantity and quality of water at the residence.
Also within 10 days, erosion and sedimentation controls, and
stabilization measures, must be installed at any area previously
identified as disturbed by U.S. Energy’s drilling. Within 30 days,
the company must apply for permits for any areas where five or more
acres of earth are disturbed, the order reads.
The company must submit a list of the first 25 wells it plans to
frac – which is a method for increasing production in a well. Prior
to the fracking, the DEP will inspect the sites to ensure all legal
requirements are met. Only after an authorization report is
received from the DEP may the company begin fracking the well.
No more than 25 well sites can be fracked at one time, the order
reads.
Until Oct. 10, 2010, all of U.S. Energy’s drilling permits are
subject to conditions set forth by the DEP. One of those
requirements is that before a new well can be drilled or fracked, a
previous well site has to be restored.
The order also notes that should U.S. Energy fail to comply with
requirements, the DEP may order drilling to cease until the
requirements are met.
The DEP also sets forth a list of penalties for future
violations. Those penalties range from $250 per day to $500 per day
for the first offense, and up to $5,000 per day for third and
subsequent offenses.
