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FISCAL YEAR: 2010
1. PRINCIPAL DEFENDANT: John Morgan
W.D.  Pennsylvania  CR10-17-ERIE
2. DEFENDANT: Michael Evans
W.D.  Pennsylvania  CR10-17-ERIE
Michael Evans, a part owner of Swamp Angel Energy, and John Morgan, site supervisor for Swamp Angel Energy, were sentenced on June 24, 2010, for violating the Safe Drinking Water Act. Evans was sentenced to 3 years probation and a $5,000 fine and Morgan was sentenced to three years probation and a $4,000 fine. Swamp Angel Energy, a Kansas company, was engaged in oil and gas development on the Allegheny National Forest in Pennsylvania. From April 2007 to January 2008 Evans and Morgan violated the Safe Drinking Water Act by dumping material produced in the drilling process.

Evans and Morgan pleaded guilty on February 16, 2010, in federal court in Erie to causing more than 200,000 gallons of brine to be dumped into an oil production well near the Allegheny National Forest. As part of the oil drilling process, brine is produced, with its disposal regulated by environmental laws including the Safe Drinking Water Act. Evans and Morgan dumped brine, which was not permitted or authorized through the Underground Injection Control (UIC) Program. The UIC Program ensures the safety of underground drinking water sources.



February 11, 2010
The defendants were charged in an Information with one count, each, of violating the SDWA {42 U.S.C. 300h-2(b)(2) - willful violation}.

They pled guilty to the charge.


Western District of Pennsylvania
FOR IMMEDIATE RELEASE
February 16, 2010

TWO PLEAD GUILTY TO FELONY VIOLATIONS OF THE SAFE DRINKING WATER ACT

Acting United States Attorney Robert S. Cessar announced today, February 16, 2010, that John Morgan of Sheffield, Pennsylvania, and Michael Evans of La Quinta, California, pleaded guilty in federal court in Erie to a charge of violating the Safe Drinking Water Act. Morgan, age 54, and Evans, age 66, pleaded guilty to one count each before United States District Judge Sean J. McLaughlin.

In connection with the guilty plea, the Court was advised that Evans was a 25 percent owner and Morgan was a site supervisor for Swamp Angel Energy, LLC, a Kansas company engaged in oil and gas development on the Allegheny National Forest. As part of the oil drilling process a brine is produced, and the disposal of this brine is regulated by environmental laws, including the Safe Drinking Water Act. Often, drilling brine is transported to a waste water treatment plant, and a fee is paid for its lawful disposal. Brine can also be injected into non-producing wells, but only if a permit is obtained through the Safe Drinking Water Act's Underground Injection Control (UIC) Program. Acquiring a permit through the UIC program ensures the safety of underground drinking water sources. As part of their plea agreements, Evans and Morgan admitted to wilfully causing more than 200,000 gallons of brine to be dumped into an oil production well, located near the Allegheny National Forest, that was not permitted or authorized by rule for underground injection.

"Safe drinking water is an essential part of our everyday lives, and my office is committed to vigorously enforcing federal laws that seek to protect the public health and the environment," said Mr. Cessar. "We hope this prosecution sends the message that companies that intentionally violate federal environmental laws will be investigated and prosecuted."

"Today's action should assure people that EPA intends to enforce environmental laws to protect the public's health," said Shawn M. Garvin, EPA mid-Atlantic Regional Administrator. "Companies that knowingly put people's health and the environment at risk also do an injustice to those companies that are abiding by the law and doing the right things." The EPA has established a tipline for the public to report potential violations of federal environmental laws. The phone number is 877-919-4372 and the email address is eyesondrilling@epa.gov.

Judge McLaughlin scheduled sentencing for both defendants on June 24, 2010. The law provides for a total sentence of three years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendants.

The United States Forest Service and the United States Environmental Protection Agency Criminal Investigation Division conducted the investigation that led to the prosecution of Morgan and Evans. Assistant United States Attorney Marshall J. Piccinini is prosecuting this case.

CITATION: 42 U.S.C. 300h-2(b)(2)
June 24, 2010
Morgan was sentenced to 36 months probation and was ordered to pay a $4,000 federal fine. Evans was sentenced to 36 months probation and ordered to pay a federal fine in the amount of $5,000.


Western District of Pennsylvania
June 24, 2010

TWO OIL AND GAS DRILLING OPERATORS SENTENCED ON FELONY CONVICTIONS FOR VIOLATING THE SAFE DRINKING WATER ACT

According to information presented to the court by Assistant United States Attorney Marshall J. Piccinini, Evans was a 25 percent owner and Morgan was a site supervisor for Swamp Angel Energy, LLC, a Kansas company engaged in oil and gas development in the Allegheny National Forest. As part of the oil drilling process, a brine is produced, and the disposal of this brine is regulated by environmental laws, including the Safe Drinking Water Act. Often, drilling brine is transported to a waste water treatment plant, and a fee is paid for its lawful disposal. Brine can also be injected into non-producing wells, but only if a permit is obtained through the Safe Drinking Water Act's Underground Injection Control (UIC) Program. Acquiring a permit through the UIC program ensures the safety of underground drinking water sources. Swamp Angel had not obtained a permit authorizing the injection of brine, and from April 2007 to January 2008, 200,000 gallons of brine was unlawfully injected into a well.

Prior to imposing sentence, Judge McLaughlin stated that "Dumping of brine surreptitiously without permits circumvents the regulatory process and poses a significant threat to the environment." Judge McLaughlin stated that the deterrent message to the oil and gas drilling community in Northwest Pennsylvania is clear: "If you fail to comply with the regulatory scheme in the Allegheny National Forest, including the permitting provisions, there will be serious consequences"; "the desire to maximize profits or cut costs never trumps compliance with regulatory requirements across the board"; and "you cannot dump with impunity and essentially thumb your nose at the regulatory system."

According to EPA Special Agent in Charge Dave Dillon, the "EPA will remain vigilant and ensure that companies that knowingly violate environmental laws and profit at the expense of our federal and state parks and natural resources will be prosecuted to the fullest extent of the law."

Mr. Cessar commended the United States Forest Service and the United States Environmental Protection Agency Criminal Investigation Division for the investigation leading to the successful prosecution of Morgan and Evans.

STATUTE:
  • Safe Drinking Water Act (SDWA)

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