Gulfport Energy to pay $1.7 million EPA fine

Oklahoma City-based Gulfport Energy Corp. has agreed to pay a $1.7 million fine to the U.S. Environmental Protection Agency for alleged violations of the Clean Air Act at some of its oil and natural gas production wells in Ohio.

The Chicago office of the EPA made the announcement this week and said Gulfport will not only pay the $1.7 million fine but invest nearly $2 million in improvements at 17 well pads in eastern Ohio. The improvements will be made to reduce volatile organic compound emissions by nearly 313 tons a year. The fine was levied over Gulfport’s failure to capture and control air emissions from storage vessels and to comply with associated inspection, recordkeeping and reporting requirements.

 

“Gulfport has agreed to improve its operations to address these issues and to reduce air pollution,” said EPA Region 5 Administrator Kurt Thiede. “EPA is committed to reducing pollution and improving air quality throughout Ohio, helping residents breathe easier.”

Gulfport operates oil and natural gas production wells in eastern Ohio. The wells produce a mixture of natural gas, light crude oil known as condensate, and a naturally occurring wastewater known as “produced water.” Multiple wells are typically co-located on a single well pad along with production equipment, including condensate and produced water storage vessels.

In August 2015, EPA inspected several of Gulfport’s condensate-producing well pads and found systemic deficiencies in the company’s vapor capture and control systems for its storage vessels. In December 2016, EPA issued to Gulfport a finding of violation alleging failures of design and operational requirements of the vapor capture and control systems, along with associated inspection, monitoring, recordkeeping and reporting requirements.

The settlement terms are included in a proposed consent decree that U.S. Department of Justice filed today with the U.S. District Court for the Southern District of Ohio. The proposed consent decree is subject to a 30-day public comment period and final court approval. To view the government’s complaint and the consent decree, go to https://www.justice.gov/enrd/consent-decrees.