PA Environment Digest Blog: The Derrick: State Intervenes In Venango Water Case [Fallout Continues From Conventional Oil Well Wastewater Spill]

Tuesday, April 9, 2024

The Derrick: State Intervenes In Venango Water Case [Fallout Continues From Conventional Oil Well Wastewater Spill]

The fallout continues from the July 2023 contamination of the Village Of Reno’s water supply in Venango County by a conventional oil well wastewater spill which could now include six other water companies in a special proceeding before the Public Utility Commission.

On April 9, The Derrick reported the state Office of Small Business Advocate, on April 3, filed a notice to intervene in the case before the state Public Utility Commission to determine the future of the Venango Water Company and possibly the other six water companies owned by the Rhodes Estate.

Small Business Advocate NazAarah Sabree said she was formally intervening in the case “to protect the interests” of the Venango Water Company’s small business customers.”

“A thorough inquiry by the Commission into all the elements of the acquisitions is necessary to ensure that it is in accord with the Public Utility Code and with the Commission’s Regulations.”

She also requested the case be subject to “investigation and evidentiary hearings before the Commission,” a more formal process.

In addition, there are other parties that have intervened or are part of the case so far, according to documents filed with the PUC.

The Office of Consumer Advocate, on March 13, filed a motion to intervene. The role of this Office is to represent the interests of all consumers in utility cases as this.

Pennsylvania American Water Company, on March 29, filed a motion to intervene to represent their interests as a water and wastewater service provider in the region where the Rhodes Estate water companies are operating.

The [Blaine E. ]Rhodes Estate is being represented in the case by the Dale Woodard Gent McFate Law Firm in Franklin and Randall and Kevin Rhodes are represented by Cressman Erde Ferguson in Meadville.

In addition, Rouseville Borough Manager Joseph Dengel has asked the PUC to be included in notifications of actions related to the case. The borough is included on the list of parties receiving the legal notices that are a part of this case.

As reported by this newspaper on March 12, PUC Administrative Law Judge Mark A. Hoyer held a prehearing conference in Harrisburg February 20 to begin the process of determining whether the Commission should issue an order to have another public utility acquire the Venango Water Company.

This action continues the PUC’s response to the problems caused by the oil well spill that contaminated the Bellows Spring water supply last July, resulting in a “do not consume” advisory in the Village of Reno that lasted six weeks.

The PUC in August issued an emergency order to Aqua Pennsylvania to operate the Venango Water Company so clean water Would continue to provided to its customers.

The new PUC action was prompted by the desire of Randall and Kevin Rhodes, operators of the Venango Water Company for the Rhodes Estate, to cease being certified operators for their water companies.

The Estate also owns the Sugarcreek Water Company, West Hickory Water Company, Plumber Water Company, Fryburg Water Company, Cooperstown Water Company and the Blane E. Rhodes Sewer Company and their future may also be considered in the PUC case.

The PUC said this new hearing process is still in the very early stages.

[Notices and documents related to this PUC investigation can be found at Docket Numbers: M-2023-3042180 and P-2024-3045205.]

DEP Cleanup Order

Department of Environmental Protection inspector Alan Wolf, on April 1, again inspected the site of the oil well wastewater spill that contaminated Bellows Spring and reported “the site appears to be in the same condition as the previous site inspection(s)” (February 22 and 29).

Excavated contaminated soil remains piled and covered at the site where it has been for some time and there was standing water in the wastewater tank storage area.

The owner of the site, Erie County-based Petro Erie, Inc., appealed the order DEP issued to clean up the site to the Environmental Hearing Board in September.

The company and DEP have been working on a settlement of the appeal since then, according to Board records, and notified the Board on March 13 they have entered into discussions to draft a consent order and agreement to outline the steps Petro Erie, Inc. must take to resolve the violations.

The notice said, “the Parties believe that a settlement of this matter is possible.”

As a result, the Board issued a stay in the case to delay any other actions until May 14 when the parties are to provide the Board with an update on or before that date.

(Photos: Petro Erie, Inc. Lower Reno 6 conventional oil well site from DEP’s April 1 inspection report.)

(Written by David Hess a contributing writer who served as DEP Secretary under Govs. Tom Ridge and Mark Schweiker. He now publishes the PA Environment Digest newsletter.)

NewsClip:

-- The Derrick: State Intervenes In Venango Water Case

Related Articles - Village Of Reno Water Contamination:

-- The Derrick: Public Utility Commission Starts Investigation Into Possible Order For Another Utility To Permanently Acquire Venango Water Company Impacted By Conventional Oil Well Spill [PaEN]

-- The Derrick: Aqua Pennsylvania Continues To Operate The Water System Serving The Village Of Reno After A Conventional Well Wastewater Release Contaminated Its Water Supply Last July In Venango County [PaEN]

-- The Derrick: DEP: Little Headway In Reno Oil Well Wastewater Cleanup In Venango County [PaEN

-- Petro Erie, Inc. Says It Lacks The Financial Ability To Comply With DEP’s Order To Clean Up Conventional Oil Well Wastewater That Contaminated The Village Of Reno’s Water Supply In Venango County; Will Taxpayers/Ratepayers Be Stuck With Cleanup Costs Again? [PaEN]