PA Environment Digest Blog: The Derrick: PUC Judge Orders 7 Rhodes Estate Water Companies To Secure Counsel For Hearings On Their Future [More Fallout From Conventional Oil Well Wastewater Spill In Venango County]

On May 30, The Derrick reported, state Public Utility Commission Administrative Law Judge Mark A. Hoyer issued an order May 28 requiring the seven water companies owned by the Blaine Edwin Rhodes Estate, as well as the Estate itself, to hire legal representation to participate in upcoming hearings about how they will be operated in the future.

The seven companies include the Venango Water Company, Sugar Creek Water Company, West Hickory Water Company, Plumer Water Company, Fryburg Water Company, Cooperstown Water Company and Blaine E. Rhodes Sewer Company.

They have until June 21 to obtain representation, according to the order.

Judge Hoyer also established a schedule for the hearings which will determine whether the PUC should issue an order to have another public utility acquire and operate one or more of the water companies.

The schedule has telephone conferences, filing deadlines and hearings along with an additional prehearing, from July through December.

The next scheduled prehearing conference is July 15.

The PUC investigation was prompted by Randall and Kevin Rhodes, operators of all the water companies owned by the Rhodes Estate, saying they no longer want to be the certified operators for any of the water companies.

The PUC in August issued an emergency order to Aqua Pennsylvania to operate the Venango Water Company as a result of the oil well spill that contaminated Bellows Spring and resulted in a “do not consume” advisory in Reno that lasted six weeks.

Aqua has operated the company ever since.

The May 28 order came from a May 21 prehearing held by Judge Hoyer.

The prehearing was attended by representatives of the PUC Bureau of Investigation and Enforcement; the Office of Consumer Advocate; the Office of Small Business Advocate; Aqua Pennsylvania; the Pennsylvania American Water Company; Nicholas Maskrey, of the state Department of Environmental Protection; and Joseph J. Ferguson, an attorney representing Randall Rhodes and Kevin Rhodes, the operators of the water companies, and Cindy Walentoski.

There were no representatives of the Rhodes Estate or any of the seven water companies.

“I have two concerns,” said Judge Hoyer. “Obviously, each of these utilities must be represented by counsel in order to even settle this. And my other concern is the provision of water service and wastewater service and compliance with the code in the interim.”

Ferguson said his clients would prefer to see a shorter schedule saying they were interested in a settlement.

“We're asking the court and the parties to be mindful of the fact that they are working as operators now in a tenuous position,” said Ferguson.

Scott Granger, representing the PUC Bureau of Investigation and Enforcement, said he understood the concerns of Ferguson’s clients, noting, “to their credit, they did agree to continue to operate the companies while we work our way through this process.”

Granger added, “There is some lead time built into that [schedule] for the purpose of trying to resolve it ahead of having to go through the full litigation schedule.”

Judge Hoyer, in response to the concerns, said,“I think there has to be communication, Mr. Ferguson, between your clients and the other parties to this matter.

“I would suggest that you set up conferences so that we become aware of any issues that the Commission might need to address to protect those who are being provided service while this thing is litigated.”

A copy of the May 28 PUC order is available online.

Other Parties Joining The Case

The customers and municipalities served by seven water systems owned by the Rhodes Estate were notified May 14 by the Public Utility Commission of the hearings being held and the steps they can take to intervene in the proceeding.

The deadline to file a petition to intervene is July 12. The instructions on how to file and other information is available in the notice.

(Photos: Sources of the Petro Erie conventional oil well spill that contaminated a spring supplying water to the Village of Reno in Venango County.)

NewsClip:

-- The Derrick: Rhodes Estate Water Companies Ordered To Secure Counsel In Venango County

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