Windfall Oil & Gas, Inc. (Board decision, June 10, 2014)

Plain-English summary

EPA Region 3 issued Windfall Oil & Gas, Inc. a permit to construct a Class II-D injection well and inject fluids associated with oil and gas production into the Huntersville Chert/Oriskany formation. Fifty-seven petitions sought review of the permit, and the Board consolidated the related appeals. Region 3 asked to remand the permit so it could reconsider public comments, correct factual mistakes in its Response to Comments, and decide whether to reissue, revise, or deny the permit. The Board granted the voluntary remand, dismissed UIC Appeal Nos. 14-04 through 14-62, and required a new final permit decision. A new petition for review had to be filed within 30 days after notice of the revised final permit decision to preserve the option of judicial review.

Decision snapshot

• Cited authorities: 40 C.F.R. §§ 124.6, 124.10, 124.14, and 124.19.
• Outcome: Voluntary remand granted, consolidated appeals dismissed, and Region 3 directed to issue a new final permit decision.
• Key point: An agency may obtain voluntary remand to reconsider permit comments and correct factual or procedural errors before issuing a new final permit decision.

Full text (EPA EAB public release)

                  ENVIRONMENTAL APPEALS BOARD
         UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
                         WASHINGTON, D.C.                                          JUN 1 0
                                         )

In re: )
)
Windfall Oil & Gas, Inc. ) UIC Appeal Nos. 14-04 through 14-62
)
UIC Permit No. PAS2D020BCLE )

           ORDER GRANTING MOTION FOR VOLUNTARY REMAND
            TO ALLOW RECONSIDERATION OF PERMIT DECISION

     On February 14, 2014, the U.S. Environmental Protection Agency Region 3 ("Region")

issued an Underground Injection Control ("UIC") permit, Number PAS2D020BCLE ("Permit"),

to Windfall Oil & Gas, Inc. ("Windfall"): The Permit authorizes Windfall to construct a

Class II-D injection well, the Zelman #1, and inject fluids produced in association with oil and

gas production into the Huntersville Chert/Oriskany formation. The Board received fifty-seven

petitions requesting review of the Permit. See Order Consolidating Petitions for Review at 1 n.1,

3-4 (Mar. 24, 2014) (discussing the Board's treatment of the sixty-one filings received and

ordering two petitioners to designate in writing which of multiple filings should be considered

the petition for review). 1

     On May 15, 2014, the Region filed a motion requesting a voluntary remand of the Permit

"to reconsider the comments submitted during the public hearing and public comment period,

     1
     On April 14, 2014, the Board issued an order granting the Region's request for an

extension of time until May 16, 2014 to respond to the petitions for review and to submit relevant portions of the administrative record. Order Granting Extension of Time to File Response and Requiring Supplemental Motion to Request Specific Word or Page Limit (Apr. 14, 2014); see also Order Granting Motion for Leave to File Response Exceeding Word or Page Limit (May 2, 2014) (granting Region's request to file a response not to exceed seventy-five pages). and to assure that the substantive and procedural requirements of Parts 124, 144, and 146 have

been met." 2 Region III's Motion for Voluntary Remand at 1 (May 15, 2014) ("Motion"). The

Region explained that, upon review of the administrative record, it determined that "certain

public comments were not fully addressed or considered during the permit decision" and that

"there are factual mistakes in the Response to Comments document." Id. at 2. The Region plans

to correct its factual errors and reconsider the public comments and then "decide whether to

reissue the permit, draft a new permit for public comment or deny the permit." Id.

    The Board has broad discretion to grant a remand request, and it has repeatedly held that

"'[a] voluntary remand is generally available where the permitting authority has decided to make

a substantive change to one or more permit conditions, or otherwise wishes to reconsider some

element of the permit decision before reissuing the permit."' In re Desert Rock Energy Co.,

LLC, 14 E.A.D. 484,493 (EAB 2009) (quoting In re Indeck-Elwood, LLC, PSD Appeal No. 03-

04, at 6 (EAB May 20, 2004) (Order Denying Respondent's Motion for Voluntary Partial

Remand and Board's Decision on the Petition for Review)). As the Board has emphasized, it

"typically grants a motion [for remand] where the movant shows good cause for its request

and/or granting the motion makes sense from an administrative or judicial efficiency standpoint."

Id. at 497.

    Here, the Region has clearly expressed its intent to reconsider its decision on the permit.

Administrative efficiency will be served by allowing the Region to do so. Further, none ofthe

petitioners has filed an opposition to the Region's motion. For all of these reasons, the Board

    2
     The Region indicates that it is requesting a remand, pursuant to the discretionary

authority of the Board, to reconsider its decision. The Region is not, at this time, unilaterally withdrawing the permit under 40 C.F.R. § 124.190). Motion at 2.

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agrees that remand for reconsideration of the Permit decision is appropriate.

   If upon reconsideration, the Region determines that a new draft permit should be issued

or that significant conditions of the permit should be changed, it must provide an additional

public comment opportunity under the applicable public participation procedures in 40 C.F.R.

Part 124. See, e.g., 40 C.F.R. §§ 124.6, .10, .14; see also In re Energy Answers Arecibo, LLC,

PSD Appeal Nos. 13-05 through 13-09,slip op. at 31-32 (EAB Mar. 25, 2014), 16 E.A.D. _

(discussing permit changes and other modifications of a permit decision that require additional

public comment). In addition, regardless of whether reopening is compelled by Part 124

requirements, the Region has broad discretion under section 124.14(b) to determine whether

"substantial new questions concerning a permit" merit an additional opportunity for public

comment. In reNE Hub Partners, L.P., 7 E.A.D. 561,584 (EAB 1988) ("A reopening ofthe

public comment period under section 124.14(b) largely depends on the Region's discretion

***.");see In re Dominion Energy Brayton Point, L.L.C., 13 E.A.D. 407,416 & n.10 (EAB

2007) (discussing considerations that may inform a Regional Administrator's decision on the

issue of reopening the public comment period).

   The Board hereby grants the Region's motion for a voluntary remand of the Windfall

Permit for reconsideration of the Permit decision. Accordingly, UIC Appeal Nos. 14-04 through

14-62 challenging the Region's February 14, 2014 Permit decision are dismissed. After

reconsideration, the Region must issue a new final permit decision. Petitioners may file a

petition under 40 C.F.R. § 124.19(a) with the Board challenging the new final permit decision,

and they must do so if they wish to preserve the option of seeking judicial review of EPA's

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action on Windfall's permit application. 3 Petitions for review must be filed within 30 days after

the Region serves notice of the revised final permit decision. See 40 C.F.R.§ 124.19(a)(3).

    So ordered. 4

                                                 ENVIRONMENTAL APPEALS BOARD

Date:
d/fJa !C!l!!~
Catherine R. McCabe
Environmental Appeals Judge

    3
    The Board directs that an appeal to the Board following the Region's decision on

remand is required to exhaust administrative remedies before EPA. See 40 C.F.R.
§ 124.19(1)(2)(iii).
4
The three-member panel deciding this matter is composed of Environmental Appeals Judges
Leslye M. Fraser, Randolph L. Hill, and Catherine R. McCabe. See 40 C.F.R. § 1.25(e)(l).

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CERTIFICATE OF SERVICE

 I hereby certify that copies of the foregoing Order Granting Motion for Voluntary

Remand to Allow Reconsideration of Permit Decision in the matter of Windfall Oil & Gas, Inc., UIC Appeal Nos. 14-04 through 14-62, were sent to the following persons in the manner indicated:

By First Class U.S. Mail:

David Keith Vivian L. Marshall Ralph E. Hamby 1784 Galusha Road 111 W. Long Ave. Apt. 5E 270 Highland Street Ext. Brockway, PA 15824 DuBois, PA 15801 DuBois, PA 15801 Telephone: (814) 265-2434 Telephone: (814) 371-4623 Telephone: (814) 375-0170

Nancy Moore Nora Jenney John Parsons 300 Green Ridge Drive 1222 Highland Street Ext. St. Michael's Terrace DuBois, PA 15801 DuBois, PA 15801 111 W. Long Ave., Telephone: (814) 371-9711 Telephone: (814) 583-5321 Apt. 2K
DuBois, PA 15801
James W. Mack Dennis Marsh Telephone: (814) 590-3077 Norma S. Mack Terry Marsh 74 Sunset Drive 13 79 Highland Street Ext. Tom Nelen DuBois, PA 15801 DuBois, PA 15801 Sue Nelen Telephone: (814) 371-3289 Telephone: (814) 583-5592 152 #2 Shaft Road
DuBois, PA 15801
Helen Jenney Ken Flanders Telephone: (814) 375-0448 1252 Highland Street Ext. Bev Flanders DuBois, PA 15801 128 #2 Shaft Road Beth Gilga Telephone: (814) 583-5647 DuBois, PA 15801 735 Shamokin Trail
Telephone: (814) 371-8290 DuBois, PA 15801
Barbara A. London Telephone: (814) 583-7079 105 Olive Avenue Francis E. Hand DuBois, PA 15801 894 Highland Street Ext. Robert Marshall Telephone: (814) 371-5524 DuBois, PA 15801 Ethel Marshall
1154 Highland Street Ext.
Cecil E. Gelnett Rosemary Frizzell DuBois, PA 15801 831 Highland Street Ext. 1359 Highland Street Ext. Telephone: (814) 583-7661 DuBois, PA 15801 DuBois, PA 15801 Telephone: (814) 583-5860 Telephone: (814) 583-5867 Lorraine Shadduck
278 Reynoldsville
Joyce Greathouse Terry Lawson Sykesville Road Ronald Greathouse Carole Lawson Reynoldsville, P A 15 851 1197 Highland Street Ext. 1042 Highland Street Ext. Telephone: (814) 894-2437 DuBois, PA 15801 DuBois, PA 15801 Telephone: (814) 583-5141 Telephone: (814) 583-7127 Travis P. Smith John Barr Rev. James Green 315 Gearhart Lane Sue Barr Sherry Green DuBois, PA 15801 1268 Tower Lane 815 Reynoldsville Telephone: (814) 583-5618 Dubois, PA 15801 Sykesville Road Telephone: (814) 583-5049 Reynoldsville, PA 15851 Emily A. Collins, Esq. Telephone: (814) 894-5584 Oday Salim, Esq. Judy Chewning
P.O. Box 7226 Jack Chewning
Loretta Slattery Pittsburgh, PA 15213-0221 1707 Highland Street Ext. 1079 Highland Street Ext. Telephone: (412) 648-1300 DuBois, PA 15801 DuBois, PA 15801 Counsel for Marianne and Telephone: (814) 583-5560 Telephone: (814) 583-7476 Richard Atkinson
Monica A. Lockhart
Valerie J. Powers Matt Gabler 1298 Highland Street Ext. 1235 Highland Street Ext. Member, 75 1h District DuBois, PA 15801 DuBois, PA 15801 PA House of Telephone: (814) 553-5529 Telephone: (814) 591-0697 Representatives
150-B East Wing Albert T. Marsh
Duane Marshall· P.O. Box 202075 1583 Highland Street Ext. Darlene Marshall Harris burg, PA 17120- DuBois, PA 15801 1070 Highland Street Ext. 2075 DuBois, PA 15801 Telephone: (717) 260-6142 Robert Wells Telephone: (814) 583-7945 Pauline Wells
Sandy Township Board of 1640 Highland Street Ext.
Brady Township Supervisors DuBois, PA 15801 Supervisors P.O. Box 267 Telephone: (814) 591-0164 P.O. Box 125 DuBois, PA 15801 Luthersburg, PA 15848 Telephone: (814) 371-4220 Shirley Wells Telephone: (814) 583-7660 1625 Highland Street Ext.
Barb Emmer DuBois, PA 15801
City of DuBois 526 First Street
16 W. Scribner Avenue DuBois, PA 15801 RetaRice DuBois, PA 15801 Telephone: (814) 375-9660 1691 Highland Street Ext. Telephone: (814) 371-1290 DuBois, PA 15801
Leslie Swope Telephone: (814) 583-7829
Diane Bernardo 310 Olive A venue
8 Tower Lane DuBois, PA 15801 Jonell Reay DuBois, PA 15801 Telephone: (814) 371-0405 544 Highland Street Ext. Telephone: (814) 371-4210 P.O. Box 98
DuBois, PA 15801
Telephone: (814) 371-6538

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Joan Spaffora Clearfield County John T. Hook 450 Spaffora Road Commissioners 549 Highland Street Ext. DuBois, PA 15801 212 E. Locust Street DuBois, PA 15801 Telephone: (814) 583-7523 Clearfield, PA 16830 Telephone: (814) 590-0149

Donna Gardner Randall R. Baird Laurie Wayne 111 W. Long Ave. Apt. 6P 1273 Highland Street Ext. 5498A Wayne Road DuBois, PA 15801 DuBois, PA 15801-4543 DuBois, PA 15801 Telephone: (814) 371-1968 Telephone: (814) 583-7180

Sharlene J. King Stephen W. Way Brady LaBorde 215 8 Longwell Road 1790 Kiwanis Trail 45 Piney Lane Brockway, PA 15824 DuBois, PA 15801 DuBois, PA 15801 Telephone: (814) 265-0191 Telephone: (814) 375-2771 Telephone: (814) 371-6316

Harriet J. Moyer Ted Crytser
366 Toby Road Rona Crytser
Kerrey, PA 15846 1500 Highland Street Ext. Telephone: (814) 885-8431 DuBois, PA 15801
Telephone: (814) 583-5535

By EPA Pouch Mail:

Nina Rivera
Senior Assistant Regional Counsel
Office of Regional Counsel (3RC20)
US EPA Region 3
1650 Arch St.
Philadelphia, PA 19103
Telephone: (215) 814-2667

Dated: JUN 1 0 2014 B~LUtfWl
· Annette Duncan
Secretary

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