Aqua Pennsylvania is “evaluating its options” for recovering money it spent operating the Venango Water Company from the oil and gas well owner that contaminated Bellows Spring, a source of water for the Village of Reno and Sugarcreek Township.
DEP determined in an August 2023 order Petro Erie, Inc. was responsible for the spill that contaminated the spring.
The recovery action is important to Venango Water Company customers because any money recovered from the oil and gas well owner would not have to be paid by VWC customers.
Aqua spokesperson Amanda Burge explained to The Derrick last year, “Revenues received from the Rhodes Utilities customers are currently used first to operate the systems; however, to the extent that those revenues are insufficient to cover the full operating costs, Aqua Pennsylvania provides the additional financial support needed to maintain safe and reliable utility service.” Read more here.
“Aqua would recover the costs associated with running and operating the system in its next base rate case which may include raising customer rates in the VWC,” said Burge. Read more here.
Aqua has been operating the Venango Water Company, owned by the Rhodes Estates, under a receivership order issued by the Public Utility Commission in August 2023.
The oil and gas well spill resulted in a “do not consume” water order for Venango Water Company customers that stayed in effect from July to September 2023.
Aqua began trucking water to the system to make up for the water lost by the contamination of Bellows Spring to ensure customers continued to have a safe water supply.
Aqua has continued to operate the system since August 2023.
The PUC added six other Rhodes Estates water systems to the receivership order in October 2024.
In February, The Derrick reported Aqua has a ‘settlement in principle’ to purchase and permanently operate the Venango Water Company and the six other Rhodes Estates water and wastewater systems. Read more here.
The most recent information available from Aqua shows between August 2023 and February 2025 Aqua spent $1,103,000 to truck water, and make necessary repairs to the Venango Water Company system to continue water service interrupted by the spill. Read more here.
Costs were not available from Aqua for 2025 and 2026.
The potential of recovering costs from the oil and gas well owner comes after the Department of Environmental Protection in March found Petro Erie, Inc. has “substantially complied” with the August 2023 DEP order to cleanup the wastewater spill that contaminated Bellows Spring. [EHB Docket 2023075]
The finding settles an appeal of the DEP order Petro Erie, Inc. filed with the Environmental Hearing Board.
Part of DEP’s order included a provision that Petro Erie, Inc. was to reimburse Venango Water Company and Aqua Pennsylvania for any increased operating and maintenance costs incurred by the companies caused by the spill.
DEP said in March Petro Erie has demonstrated it complied with the order to reimburse Venango Water Company and Aqua for increased operating costs and replacement water.
DEP said they cannot confirm the total expenses incurred by Aqua, but are satisfied Petro Erie paid the expenses they were presented with by Aqua Pennsylvania.
DEP reported Petro Erie paid $13,638 to Aqua.
In response to the DEP- Petro Erie settlement, Aqua Pennsylvania said-- “Aqua is aware that Petro Erie, Inc. and the Pennsylvania Department of Environmental Protection recently entered into a Stipulation of Settlement before the Environmental Hearing Board, and the Environmental Hearing Board has recently entered an Order on the appeal of the Administrative Order.
“Aqua is reviewing the Settlement and Order and is currently evaluating its options for any future action for recovery from Petro Erie, Inc.”
The other six Rhodes Estate water systems would not be included in this recovery action.
PUC Administrative Law Judge Mark J. Hoyer has been handling the formal proceeding to determine the future ownership and management of the Rhodes water systems since March 20, 2024.
As of March 31, Aqua Pennsylvania has not submitted the settlement documents covering its agreement in principle to purchase the Rhodes Estate water systems. Read more here.
After Judge Hoyer receives and reviews the settlement documents from Aqua Pennsylvania, he will then decide what comes next in the proceeding. Read more here.
The other six Rhodes Estate water systems include--
-- Sugarcreek Water Company, Sugarcreek Boro, Venango County
-- West Hickory Water Company, Harmony Twp., Forest County
-- Plumer Water Company, Cornplanter Twp., Venango County
-- Fryburg Water Company, Pinegrove Twp., Venango County; Washington Twp., Clarion County
-- Cooperstown Water Company, Cooperstown Boro & Jackson Twp., Venango County
-- Blaine E. Rhodes Sewer Company, Sugarcreek Boro, Venango County.
In addition to the operating costs and immediate repairs, Aqua Pennsylvania reported to the PUC last July, the Venango Water Company and the six other Rhodes Estate water systems need more than $5.5 million in capital improvements over the next three years to meet state regulations. [Read more here.]
Documents related to this PUC case are available at Docket # I-2023-3042312.
Visit the Aqua Pennsylvania Rhodes Estate Water & Wastewater Customers webpage for actions related to the seven Rhodes Estates water systems.
Visit DEP’s Venango Water Company/Petro Erie, Inc. Investigation webpage for more information on DEP actions.
Visit the Environmental Hearing Board Docket 2023075 for information on the Petro Erie, Inc. appeal of DEP’s order.
(Photos: Row 1-- Original Petro Erie, Inc. conventional oil and gas well wastewater spill; Row 2-- Aqua Pennsylvania trucking water to add to the Venango Water Company system to ensure continuing, safe water service.)
NewsClip:
-- TheDerrick.com: Who Will Pay The Water Bill? Aqua Pennsylvania Mulls Options After DEP-Petro Erie Settle [PDF of Article]
Related Articles This Week:
-- Stroud Water Research Center Scientist Dr. John K. Jackson Recognized By International Society For Freshwater Science [PaEN]
-- Mountain Watershed Association Appeals 90% Reduction In Mine Subsidence Damage Bond For Rustic Ridge Coal Mine In Westmoreland, Fayette Counties From $3.1 Million To $292,679 [PaEN]
-- PennVEST Announces Investment Of $284.2 Million On Water Infrastructure Projects in 20 Counties [PaEN]
-- Delaware River Basin Commission Releases Framework For Water Resources Resilience; April 30 Webinar Set [PaEN]
-- Susquehanna River Watershed Low-Flow Conditions Trigger Stop To Shale Gas Drilling Water Withdrawals At 19 Locations, 13 More Approaching Restrictions [PaEN]
-- StreamSmart Stormwater House Calls Can Help Property Owners Reduce Stormwater Pollution In 5 Target Watersheds In Southeast PA [PaEN]
-- EPA Announces $30 Million In Technical Assistance Grants Available For Small, Rural Communities In RealWaterTA Initiative
NewsClips:
-- WESA: Rates Are Rising, But Pittsburgh Water Authority Has Expanded Its Low-Income Assistance Programs
-- Chesapeake Bay Journal Forum: We Must Build Our Mussels For Stronger Rivers And Streams - By Kathy Reshetiloff, US Fish & Wildlife Service
-- Post-Gazette Editorial: Presidents Wants To Spend On Military While Gutting American Infrastructure
[Posted: April 17, 2026] PA Environment Digest
No comments :
Post a Comment