STATE OF INDIANA ) BEFORE THE INDIANA DEPARTMENT OF
COMMISSIONER OF THE DEPARTMENT )
) SS: ENVIRONMENTAL MANAGEMENT
COUNTY OF MARION )
OF ENVIRONMENTAL MANAGEMENT, )
)
Complainant, )
)
v. ) CAUSE NO. B-2161
)
)
GULL OIL, INC., )
)
Respondent. )
The Complainant and the Respondent 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.
1. Complainant is the Commissioner (hereinafter referred to as "Complainant") of
the Indiana Department of Environmental Management ("IDEM"), a department
of the State of Indiana created by IC 13-13-1-1.
Respondent is Gull Oil, Inc., which owns and operates an oil production operation
(hereinafter referred to as the "Site") located on Second Creek Road near
Francisco, Indiana in Gibson County, Indiana.
3. The IDEM has jurisdiction over the parties and subject matter of this action.
4. Pursuant to IC 13-30-3-3, IDEM issued a Notice of Violation via Certified Mail
on August 3, 1998, to:
Mr. Larry D. Gullett, President and Registered Agent
Gull Oil, Inc.
Rural Route 1, Box 2A
Francisco, Indiana 47649
5. Designated representatives of the Indiana Department of Natural Resources
(IDNR) and the Indiana Department of Environmental Management (IDEM)
conducted inspections of Respondent's oil well production operation Site on
May 5, 1997, May 6, 1997, May 9, 1997, May 12, 1997, and May 23, 1997.
Based on the inspections and a record review, IDEM contends that Respondent
has been found in violation of the Indiana Code (IC) and the Indiana
Administrative Code (IAC).
6. 327 IAC 2-6.1-4 contains the following definitions:
(15) "Spill" means any unexpected, unintended, abnormal, or unapproved
dumping, leakage, drainage, seepage, discharge or other loss of petroleum,
hazardous substances, extremely hazardous substances, or objectionable
substances.
(16) "Spill response"for purposes of this rule means the following:
(A) the spill is contained; and
(B) free material is removed
(17) "Spill report" means an oral report that includes .... the location and time
of the spill; the identification of the substance spilled, the quantity of
substance that has been or may further be spilled, the identification of the
person making the spill report, and what measures have been or will be
undertaken to perform a spill response and any other information that may
be significant to the response action.
7. 327 IAC 2-6.1-7, requires, in part, that 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 waters of the state, do the following:
(1) Contain the spill, if possible, to prevent additional spilled material from
entering the waters of the state.
(2) Undertake or cause others to undertake activities needed to accomplish a spill
response.
(3) 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: Area code 1-888-233-7745 for in state calls (toll free).
8. On Sunday, May 4, 1997, the IDEM Office of Environmental Response was
informed by the Indiana Department of Natural Resources (IDNR) that there was
a spill of approximately 20 barrels of crude oil and approximately 4200 gallons of
brine water. Respondent contends that approximately 12 barrels of oil and 4200
gallons of brine water were spilled and that approximately 6 barrels of oil were
recovered from the fire wall area. A portion of the spilled oil and most of the
brine entered a ditch which is a tributary to the Patoka River in Gibson County.
The incident occurred sometime on Friday, May 2, 1997, as the result of high
wind breaking a flow line on a oil collection tank. Gull Oil noticed the release on
Saturday, May 3, 1997. A local citizen had asked IDNR to investigate the source
of oil in a local ditch.
9. IDNR made an on-site visit on Monday, May 5, 1997, and observed that
Respondent placed 5 absorbant booms in the ditch and that straw had been used
on May 3, 1997, to soak up some of the oil. IDEM Environmental Response staff
conducted a field response on Tuesday, May 6, 1997. Photos were taken of oil on
approximately 2 miles of ditch. IDEM contends that Respondent's failure to
report the release, contain, and immediately clean-up the spill constitute violations
of 327 IAC 2-6.1-7.
10. Another inspection at the spill site was conducted on May 9, 1997, by the IDNR.
Absorbant booms had been deployed, oil soaked straw had been picked up, and
log jams on the waterway had been removed. Respondent was to cut oil stained
grass on the ditch banks and bag the clippings.
11. IDEM staff returned to the site on May 12, 1997, to observe clean-up activities.
On May 23, 1997, IDEM staff observed that Respondent was finishing the clean-
up. Therefore, the completion of the clean-up was May 23, 1997. The President
of Gull Oil, Inc. worked with his family and a crew of 6 during the period of
clean-up activities and has spent over $7,000 in efforts to contain the spill and
clean up the site.
12. 327 IAC 2-1-6(a)(1) states, in substance, that 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 attibutable to
municipal, industrial, agricultural, and other land use practices or other
discharges:
a. that will settle to form putrescent or otherwise objectionable deposits;
b. that are in amounts sufficient to be unsightly or deleterious;
c. that produce color, visible oil sheen, odor or other conditions in such
degree as to create a nuisance;
d. which are in amounts sufficient to be acutely toxic to, or to otherwise
severely injure or kill aquatic life, other animals, plants, or humans.
which are in concentrations or combinations that will cause or contribute
to the growth of aquatic plants or algae to such degree as to create a
nuisance, be unsightly, or otherwise impair the designated uses.
13. IC 13-18-4-5 states, in part, that it is unlawful for a 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 section 1 and 3 of this chapter.
14. IC 13-30-2-1 states, in part, that a person may not discharge, emit, cause, allow, or
threaten to discharge, emit, cause, or allow any contaminant ...., either alone or in
combination with contaminants from other sources, into the environment .... in
any form that causes or would cause pollution that violates or would violate rules,
standards, or discharge or emission requirements adopted by the appropriate board
under the environmental management laws.
15. IDEM contends that Respondent's discharge of oil into the ditch/tributary of the
Patoka River constitutes violation of 327 IAC 2-1-6(a)(1), IC 13-18-4-5 and IC
13-30-2-1.
16. Pursuant to IC 13-30-3-3(c), entry into the terms of this Agreed Order does
not constitute an admission of any violation contained herein.
17. In recognition of the settlement reached, Respondent waives any right to
administrative and judicial review of this Agreed Order.
Respondent has developed and submitted to the IDEM, Office of Enforcement, a
spill control and contingency plan for the Site. The plan was approved by IDEM
on October 8, 1998. The plan includes provisions for notification of spills of oil
or brine to the IDEM, Office of Environmental Response and the steps to be taken
for spill prevention, containment, and clean up. IDEM's review of Respondent's
spill control and contingency plan was solely as a requirement of settling this
action and in no way relieves the Respondent of the obligation to comply with all
applicable rules and statutes. Nothing in this provision prevents Complainant
from exercising its full enforcement authority as to all permit requirements, rules
or statutes.
1. This Agreed Order shall be effective ("Effective Date") when it is approved by the
Complainant or his delegate, and has been received by the Respondent. This
Agreed Order shall have no force or effect until the Effective Date.
2. Respondent shall comply with all applicable sections of the Indiana Code and the
Indiana Administrative Code referenced in the Findings of Fact of this Agreed
Order.
3. Respondent is assessed a Civil Penalty of One Thousand Dollars ($1,000). This
amount is substantially less than would otherwise be assessed, based upon
Respondent's documented proof of Inability to Pay the higher amount. Said
penalty amount shall be due and payable to the Environmental Management
Special Fund within thirty (30) days of the Effective Date of this Agreed Order.
4. The civil penalty is payable by check to the Environmental Management Special
Fund. The check shall include the Cause Number (B-2161) of this action and
shall be mailed to:
IDEM Cashier
100 N. Senate Avenue
P.O. Box 7060
Indianapolis, Indiana 46206-7060.
5. In the event that the civil penalty amount required by paragraph 3 is not paid when
due, Respondent shall pay interest at the rate established by IC 24-4.6-1-101.
6. This Agreed Order shall apply to and be binding upon the Respondent, its officers,
directors, principals, agents, successors, subsidiaries, and assigns. Respondent's
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 Respondent shall in any way
alter its status or responsibilities under this Agreed Order.
7. In the event that any terms of this 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.
8. Respondent shall provide a copy of this Agreed Order, if in force, to any
subsequent owners or successors before ownership rights are transferred.
Respondent shall ensure that all contractors, firms, and other persons performing
work under this Agreed Order comply with the terms of this Agreed Order.
9. This Agreed Order shall remain in effect until Respondent has complied with all terms and conditions of this Agreed Order and Complainant has issued a close-out letter to Respondent.
By: _________________________ By: _________________________
Mark W. Stanifer, Chief Larry D. Gullett, President
Water Enforcement Section and Registered Agent
Office of Enforcement Date: _______________
Department of Environmental
Management
Date: _______________
COUNSEL FOR COMPLAINANT COUNSEL FOR RESPONDENT
By: _________________________ By: _________________________
Nancy A. Holloran Charles R. Nixon
Office of Legal Counsel
Department of Environmental
Management
Date: _______________ Date: _______________
APPROVED AND ADOPTED BY THE INDIANA DEPARTMENT OF ENVIRONMENTAL
MANAGEMENT THIS _______ DAY OF _______________________, 1998.
For the Commissioner:
__signed 10/26/98_________________
Felicia Robinson George
Assistant Commissioner of Enforcement
Converted by Andrew Scriven