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Pacific Southwest, Region 9

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

Notice of Proposed Settlement of Clean Water Act Class II Administrative Penalty Matter and Opportunity to Comment in the Matter of AllenCo Energy, Inc.

Publish Date: July 30, 2014
Public Comment Closes: August 29, 2014

In the Matter of AllenCo Energy Inc.

Docket No. SPCC-09-2014-0001

The United States Environmental Protection Agency, Region IX ("EPA"), is authorized under Section 311(b)(6)(B)(ii) of the Clean Water Act (CWA), 33 U.S.C. § 1321(b)(6)(B)(ii), to assess civil penalties after providing the persons subject to the penalty notice of the proposed penalty and an opportunity for a hearing, and after providing interested persons public notice of the proposed penalty and a reasonable opportunity to comment on its issuance. Under Section 311(b)(6), any owner, operator, or person in charge of any vessel, onshore facility, or offshore facility who fails or refuses to comply with any regulation issued under subsection 311(j) to which that owner, operator, or person in charge is subject, may be assessed a civil penalty. Class II proceedings for Section 1321(b)(6)(B)(ii) of the Clean Water Act are conducted in accordance with the "Consolidated Rules of Practice Governing the Administrative Assessment of Civil Penalties, Issuance of Compliance or Corrective Action Orders, Revocation/Termination or Suspension of Permits," ("Part 22") 40 C.F.R. Part 22, 64 Fed. Reg. 40138 (July 23, 1999).

AllenCo Energy Inc. ("Respondent") agrees to the issuance of this Consent Agreement and Proposed Final Order ("settlement"). In accordance with Section 311(b)(6)(B)(ii) of the Act, 33 U.S.C. § 1321(b)(6)(B)(ii), EPA is hereby providing public notice of, and the opportunity to comment on, the CWA portion of this proposed settlement. The settlement also resolves violations pursuant to Section 112r of the Clean Air Act and Section 312 of the Emergency Planning and Community Right-to-Know Act. However, as described below, EPA will only consider public comments on the CWA portions of this settlement.

In the Matter of AllenCo Energy Inc., Docket No. SPCC-09-2014-0001

Complainant (for the CWA count):

Kathleen Johnson
Director, Enforcement Division
U.S. EPA, Region IX
75 Hawthorne Street
San Francisco, CA 94105

Respondent's name and mailing address:

AllenCo Energy, Inc.
2109 Gundry Ave.
Signal Hill, California 90755-3517

Description of Business or Activity Conducted by the Respondent: Oil Production and Storage.

Alleged Violation (for the CWA Count): In the Consent Agreement, EPA alleges that Respondent failed to develop and implement an adequate Spill Prevention Countermeasures and Control (“SPCC”) plan for its Los Angeles facility. 40 C.F.R § 112.3 requires that the owner or operator of an SPCC-regulated facility prepare in writing an SPCC plan in accordance with 40 C.F.R § 112.9. Based on evidence gathered during the inspection EPA found that between 2009 when Respondent became the operator of the Facility and June 19, 2013, Respondent failed to develop and implement an SPCC plan and the first SPCC developed on June 20, 2013 was not adequate. Specifically, this SPCC plan failed to include a proper facility diagram and to include emergency contact information; the portion of the SPCC plan based on the requirements of 40 C.F.R § 112.9 was completed incorrectly because 40 C.F.R § 112.8 was used as the basis of the SPCC Plan instead-a section that does not apply to oil production facilities; and the employee training requirements of 40 C.F.R § 112.7(f) were not carried out.

Proposed Settlement Penalty (for the CWA count): $18,000.

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

Steven Armsey
U.S. Environmental Protection Agency, Region IX
75 Hawthorne Street (ORC-1)
San Francisco, CA 94105
(415) 972-3919
r9hearingclerk@epa.gov

Instructions for Submitting Comments

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 address, the Docket Number (Docket No. SPCC-09-2014-0001), 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 this public notice.

All comments received within this 30-day period will be considered prior to the issuance of the final order. See 40 C.F.R. § 22.45(b). 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. 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 40 C.F.R. Part 22 or review the Consent Agreement and Proposed Final Order (below) may contact the Regional Hearing Clerk identified above. Please note that the federal regulations are available online at the Code of Federal Regulations (CFR) Web site. During the comment period, the public record for the proceeding may also be inspected during business hours at the office of the Regional Hearing Clerk (address above).

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