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Pacific Southwest, Region 9

Serving: Arizona, California, Hawaii, Nevada, Pacific Islands, Tribal Nations

Notice of Proposed Settlement of Safe Drinking Water Act Administrative Penalty and Opportunity to Comment in Matter of Dugan Production Corporation

Publish Date:  May 6, 2010
Public Comment Closes:  June 7, 2010

In the Matter of Dugan Production Corporation, Docket No. UIC-9-2010-0003

EPA is authorized under Sections 1423(c) and 1445(a) of the Safe Drinking Water Act (the “Act”), 42 U.S.C. §§ 300h-2(c),300j-4(a), to assess administrative penalties against any person who fails to comply with the requirements of regulations enacted in accordance with Section 1422(c) of the Act, 42 U.S.C. § 300h-1(c). This action under Section 1423(c) is conducted in accordance with the "Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties, Issuance of Compliance or Corrective Action Orders, and the Revocation, Termination or Suspension of Permits" ("Consolidated Rules"), set forth at 40 C.F.R. Part 22.

Dugan Production Corporation (“Respondent”) agrees to the issuance of this Consent Agreement and proposed Final Order (“settlement”). In accordance with Section 1423(c)(3)(B) of the Act, 42 U.S.C. §§ 300h-2(c)(3)(B), EPA is hereby providing public notice of and opportunity to comment on this proposed settlement, recorded in a Consent Agreement and proposed Final Order in the following matter:

In the Matter of: Dugan Production Corporation, Navajo Nation, San Juan County, NM, Docket No. UIC-09-2010-0003

Complainant: Alexis Strauss, Director, Water Division, U.S. EPA, Region 9, 75 Hawthorne St., San Francisco, CA 94105

Respondent: Dugan Production Corporation, Navajo Nation, San Juan County, NM

Description of Business or Activity Conducted by the Respondents:  Oil and Gas production

Alleged Violation: Dugan Production Corporation (“Dugan”) is allowed to engage in underground injection in accordance with the conditions of their Class II UIC Permit No. NN 207000003, pursuant to the Underground Injection Control Regulations of 40 C.F.R. Parts 124, 144, 145, 146, 147 and 148. EPA and Dugan have entered into a Consent Agreement and proposed Final Order (“CA/FO”) that will resolve the above referenced action against Dugan Production Corporation (Dugan) for violating the SDWA’s Underground Injection Control (“UIC”) rules during its construction and operation of a Class II UIC well in the Navajo Nation, New Mexico, and for unauthorized injection of fluids to an Underground Source of Drinking Water (“USDW”).

Proposed Settlement Penalty: $108,500

Date Filed with Regional Hearing Clerk:  May 5, 2010

Name, Mailing Address, Telephone Number, and email of Regional Hearing Clerk:

Steven Armsey
U.S. EPA, Region 9
75 Hawthorne Street ORC-1
San Francisco, CA 94105
(415) 972-3919

Please provide the following information along with your comments and submit them in accordance with Part 22: Your full name, mailing address, telephone number, email, the Docket Number (UIC-09-2010-0003), and a concise statement of the basis for and relevant facts supporting any comment for the case to which you are commenting. Persons wishing to comment on this case, including comments on the amount or basis of the proposed penalty, are invited to submit a statement to the EPA Regional Administrator, attention of the Regional Hearing Clerk (address above), within 30 days of the date of this public notice. All comments received within this 30 day period will be considered in the issuance of the final order. If the 30th day of the comment period falls on a Saturday, Sunday or Federal holiday, the deadline shall be extended to the next business day. See 40 C.F.R. 22.7(a).  In order to provide opportunity for public comment and in accordance with 40 C.F.R. 22.45(b), EPA will not take final action in this proceeding prior to forty (40) days after issuance of this notice.

For More Information

Persons wishing to receive a copy of Part 22, review the documents filed by the parties in this proceeding, comment upon the proposed penalty assessment, or participate in any hearing that may be held, should contact the Regional Hearing Clerk identified above. Unless otherwise noted the public record for the proceeding is located in the EPA Regional Office at 75 Hawthorne Street, San Francisco, California 94105, and the file will be open for public inspection during normal business hours.

Consent Agreement and Final Order (PDF)

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