PA Environment Digest Blog: The Derrick: PUC Judge Suspends Rhodes Estate Water Companies Litigation Schedule On Future Ownership [Fallout Continues From Conventional Oil Well Wastewater Spill In Venango County]

This article first appeared in The Derrick on August 14, 2025--

Public Utility Commission Administrative Law Judge Mark A. Hoyer last week canceled two hearings and suspended the litigation schedule for the investigation into the future of who will own and operate the Venango Water Company and six other Rhodes Estate water companies.

The PUC investigation started in August 2023 to determine if the Commission should issue an order directing the permanent sale of the Venango Water Company to another firm.

The other six Rhodes Estate water companies were added to the investigation by the PUC in October 2024 when Randall and Kevin Rhodes resigned as system operators for the companies. [Read more here]

Aqua Pennsylvania was ordered by the PUC to take over temporary operation of the companies in the interim.

The other companies 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.

The purpose of the hearings last week was to hear evidence from parties to the case on the future ownership and management of the Rhodes companies, but since none of the parties planned to offer additional comments, according to a PUC spokesperson, the hearings were canceled.

Judge Hoyer is now reviewing the testimony already submitted and will make it public on the investigation electronic docket when his review is complete.

In March, Judge Hoyer “strongly urged” the parties to come to a settlement on which company or other entity would take over ownership and operation of the water companies without the need for further litigation. [Read more here.]

Under the original schedule, a settlement was due September 11.

When contacted, Aqua Pennsylvania had no comment on the PUC investigation at this time.

Judge Hoyer is expected to provide information on the future schedule for the investigation.

The primary parties in the case include counsel for Randall and Kevin Rhodes, the previous operators of the water companies who resigned in October 2024; Aqua Pennsylvania, which was ordered by the PUC to temporarily operate the companies when the Rhodes family members resigned as operators; counsel for the Blaine E. Rhodes Estate; Pennsylvania American Water; the PUC Bureau of Investigation and Enforcement; the Office of Consumer Advocate; the Office of Small Business Advocate; and the Department of Environmental Protection.

The original incident that started this chain of events was a July 2023 conventional oil well wastewater spill that contaminated Bellows Spring, one of the water sources used by the Venango Water Company to serve the Village of Reno. [Read more here.]

For more than two months Reno residents were on a “do not consume” order and emergency water supplies were provided to customers through Aqua Pennsylvania, the temporary operator of the water company under a PUC order. [Read more here.]

Aqua continues to haul water to replace the water supply contaminated by the spill.

From August 2023 to January 2025, Aqua Pennsylvania reported operating and repairing just the Venango Water Company has cost Aqua over $1.1 million. [Read more here.]

In October 2024, the PUC ordered Aqua Pennsylvania to take over the six other Rhodes water companies when Randall and Kevin Rhodes resigned as water system operators on October 31. [Read more here.]

Aqua Pennsylvania has also been making repairs and upgrades to each of the water systems so it can continue to provide safe water to customers, as required by the PUC order.

In its most recent quarterly report to the PUC in July, Aqua Pennsylvania said the seven Rhodes water companies will require an estimated $5.5 million in improvements over the next three years to continue to meet safe drinking water standards. [Read more here.]

Documents related to the Public Utility Commission proceeding on the Venango Water Company and six other Rhodes Estates water utilities can be found at PUC Docket No. M-2023-3042180 and I-2023-3042312.

Visit the Aqua Pennsylvania Rhodes Utilities webpage for more information on the Rhodes Utilities Receivership.

Visit DEP’s Venango Water Company/Petro Erie, Inc. webpage to learn more about the actions taken by DEP.

Documents related to the appeal of DEP’s cleanup order to Petro Erie, Inc. to clean up the conventional oil well wastewater spill affecting the Venango Water Company spring are in Environmental Hearing Board Docket No. 2023075.

Resource Links - Rhodes Water Companies:

-- The Derrick: Aqua Pennsylvania Details $5.5 Million Upgrade Costs For Rhodes Estates Water Systems In Venango County Area; Fallout Continues From Conventional Oil Well Wastewater Spill [PaEN]

-- The Derrick: Hearing Dates Set On Rhodes Estates Water Companies; PUC Judge Urges Parties To ‘Seriously Explore’ Settlements [Venango Water Co. Impacted By Conventional Oil Well Wastewater Spill] [PaEN]

-- The Derrick: State Attorney General Launches Criminal Investigation Into Conventional Oil Well Wastewater Spill That Contaminated Venango Water Company Spring [PaEN]

-- The Derrick: Aqua PA Spells Out Venango Water Co. Expenses Since Its PUC-Ordered Emergency Role [Conventional Oil Well Wastewater Spill Cost Water Customers $900,000, So Far, In Venango County] [PaEN]

-- The Derrick - Makayla Keating: Aqua PA Cites Existing Problems At Rhodes Utilities Water Companies [PDF of Article] [Water Companies Related To Venango County Conventional Well Spill Incident] [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- PA Oil & Gas Weekly Compliance Dashboard - August 9 to 15 - Illegal Disposal Of 66,780 Gallons Of Conventional Wastewater; 4 Impoundments Not Restored; 3 Conventional Wells Mined Through [PaEN]

-- DEP Issued Violations To Iron Cumberland, LLC For Illegally Disposing Of 66,780 Gallons Of Conventional Well Plugging Wastes At Coal Refuse Disposal Area In Greene County [PaEN]

-- DEP: Conventional Well Plugging Operation Contaminates Spring In Allegheny County [PaEN]

-- The Derrick: PUC Judge Suspends Rhodes Estate Water Companies Litigation Schedule On Future Ownership [Fallout Continues From Conventional Oil Well Wastewater Spill In Venango County] [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - August 16 [PaEN]