Crude Oil Price by oil-price.net

Oil and Gas Energy News Update

Showing posts with label Dept. Show all posts
Showing posts with label Dept. Show all posts

Wednesday, June 29, 2011

Interior Dept Asks Congress to Raise Oil-Drilling Violation Fines

- Interior Dept Asks Congress to Raise Oil-Drilling Violation Fines

Wednesday, June 29, 2011
Dow Jones Newswires
WASHINGTON
by Tennille Tracy

The Interior Department is asking Congress to increase fines for oil and natural gas companies that break offshore drilling laws, with one Interior official saying current fines are more of a "trivial nuisance than an effective deterrent."

The department urged Congress to take this step while announcing a modest increase to existing fines to reflect inflation adjustments, as required by law. The department said it is restricted from raising penalty rates beyond inflation rate increases.

The maximum civil penalty rate for violations of the Outer Continental Shelf Lands Act will increase from $35,000 to $40,000 per day, while violations under the Oil Pollution Act go from $25,000 to $30,000 per day.

Michael Bromwich, director of Interior's Bureau of Ocean Energy Management, Regulation and Enforcement, said in a statement Wednesday that Congress should raise the rates "significantly."

"The inadequacy of our civil authority hampers our ability to effectively regulate offshore activities, and renders such fines a trivial nuisance rather than an effective deterrent" he said.

The bureau has undertaken several measures to tighten offshore drilling standards since the Deepwater Horizon oil spill.

Copyright (c) 2011 Dow Jones & Company, Inc.

Oil & Gas Post

Promote Your Page Too

Tuesday, May 10, 2011

Justice Dept Claims EPA Did Not Violate Range's Due Process Rights

Justice Dept Claims EPA Did Not Violate Range's Due Process Rights

Tuesday, May 10, 2011
Fort Worth Star-Telegram, Texas
by Jack Z. Smith

The Justice Departments contends in court papers filed Monday that the Environmental Protection Agency did not violate Range Resources' constitutional right of due process when it issued a Dec. 7 emergency order against the company related to methane contamination of two residential water wells in Parker County.

Range's due-process argument is "without merit," the department said, arguing that the Fort Worth-based natural gas producer "seeks to curtail the EPA's emergency powers" under the federal Safe Drinking Water Act "in a manner that would seriously harm EPA's ability ... to address risks to underground sources of drinking water and public water systems."

The department filed a 31-page brief in a Dallas federal court where Senior Judge Royal Furgeson is considering a Justice Department complaint, filed Jan. 20, contending that Range failed to comply with three of six provisions in the EPA order. The department is asking Furgeson to deny Range's motion to dismiss the complaint.

Range has also filed an appeal with the 5th U.S. Circuit Court of Appeals in New Orleans.

The department said Range is entitled only to a hearing on whether it complied with the emergency order and "whether any civil penalties should be assessed." Fines could be $16,500 per day per violation.

In its Dec. 7 order, EPA said Range "caused or contributed" to the methane contamination of the water wells, likely from two nearby Range gas wells. Methane is the chief component of natural gas.

Range's wells were drilled more than a mile deep into the Barnett Shale, far below the water wells, which are roughly 200 feet deep.

Range spokesman Matt Pitzarella said late Monday that the company is reviewing the Justice Department's brief and that its "position remains the same": that it did not cause the water wells' contamination.

Range argues that the EPA's findings represent "sheer guesswork" based on "threadbare-thin" reasoning. It noted that EPA enforcement official John Blevins, who signed the emergency order, later backtracked somewhat, saying in a sworn deposition that Range "may" have caused or contributed to the wells' contamination.

Range argues that "there is 5,500 feet of the earth's strata separating the bottom of the private water wells from the subsurface horizontal sections" of its gas wells. The company contends that the EPA "does not even set forth a theory how gas could migrate from Range's wells to the aquifer."

The Texas Railroad Commission found March 29 that the Range gas wells did not cause the contamination. Its members said they agreed with its staff hearing examiners, as well as with Range and its consultants, that the gas in the water wells likely migrated from the shallow Strawn geological formation, into which some gas wells were drilled in the early 1980s.

Copyright (c) 2011, Fort Worth Star-Telegram, Texas. Distributed by McClatchy-Tribune Information Services.

Oil & Gas Post

Promote Your Page Too