According to court documents, “After taking into consideration all of the facts, circumstances, evidence and testimony present, it is recommended that the application of I-MAC Petroleum Services, Inc. be granted.”
The decision of the proposed well was made by Kathleen M. McKeown, the OCC Administrative Law Judge.
McKeown granted I-MAC Petroleum Services Inc. the authority to drill a commercial saltwater disposal well in Vian, which will dispose of 40,000 barrels per day at a maximum of 800 pounds per square inch of pressure into the Arbuckle formation.
“I’m frustrated,” Vian Mayor Kenneth Johnson said. “No one wants this well in our town.”
Johnson said he feels like Matt Skinner, OCC information officer, betrayed him. He said the town of Vian didn’t have a lawyer present during the first hearing in Tulsa because he was told not to send the town lawyer.
“We can’t re-open the case because we didn’t present legal counsel during the first hearing. I felt like I was misled and like I can’t rely on OCC,” Johnson said.
Johnson said the town has 10 days to appeal the judge’s decision.
“If there is no appeal filed, the matter could go straight to order meaning an order would be prepared approving the facility and incorporating the administrative law judges recommendation,” Skinner said.
Skinner said if there is an appeal filed it would most likely be heard by the Oil and Gas Referee, Patricia MacGuigan, who is the former judge and a presiding judge of the Oklahoma Court of Civil Appeals. He said the OCC commissioners could also hear an appeal.
“The commissioners instructed an OCC staff attorney to contact the town to be sure they understood the appeals process and deadline,” Skinner said.
A special meeting will be held at 6:30 p.m. Monday at the regular meeting room inside the Vian Police Station to discuss the options the town has to appeal the judge’s decision.
“I believe we will appeal but it depends on the board,” Johnson said. “That is why we are calling for a meeting. To discuss our options.”
Skinner said anyone wanting to appeal must file the appeal by Dec. 11.
In McKeown’s recommendation and conclusion it is reported that despite the concerns and questions raised by various town residents who protested the well application, the OCC is charged with making a determination as to the suitability of the formation for injection of the proposed amounts and velocities, the surface facility that will surround the disposal well, the construction of the proposed well, and the location and depth of the well.
Recommendation
McKeown recommended the application be granted because it meets the requirements of the commission for commercial disposal wells.
Another finding is “the proposed disposal operation was selected after a geological evaluation of the area to determine the depth and suitability of the Arbuckle for injection. The Arbuckle is not overly deep at the proposed location making the drilling of a new disposal well an economic venture.”
In the conclusion statement by McKeown she reports I-MAC agreed to drill monitoring wells and perform all tests required by the commission both before and after the disposal operation is constructed.
“Only fluids that meet the parameters set forth on the application and allowed by the commission rules and regulations may be accepted for disposal. If at any time the facility is operating, sufficient supervision will be provided to guard against any malfunctions that may occur,” McKeown reported.
McKeown found that the I-MAC application for disposal be approved at the Arbuckle is suitable for injection at the proposed depths and injection at the proposed rates and pressures by a newly drilled well that meets the specifications presented at the hearing because the facility should adequately protect the area environment.
McKeown considered the concerns expressed by Vian residents. She took into consideration the lack of assurance that the disposal operation would not affect the water systems in the area and the natural faulting.
“Despite any insurance or bond in place for I-MAC, the disposal fluid damage to the water table would never be compensable as the agricultural recreational and residential facilities in the area would be permanently compromised. While the lack of drilling in the area is viewed as positive from I-MAC’s perspective, it results in a lack of subsurface documentation as to existing subsurface,” McKeown wrote.
McKeown is aware of the concerns of Vian residents. She took into consideration the impact in the 1980s by the Kerr-McGee Sequoyah Fuels plant and the migration of fluids injected at that time.
In her decision she wrote, “Many of the citizens are concerned that the subject disposal well will result in similar environmental damage that may not be known for many years after the injection has occurred. The majority of the fluid will be coming from Arkansas drilling resulting in the Vian area being used as a dumpsite for waste that cannot be disposed of in Arkansas. The proposed disposal well will not result in any economic or environmental benefits for the area, but could result in huge economic and environmental losses.”
On behalf of the commission McKeown thanked all the surface and mineral owners, who appeared and made statements, for attending the hearing and raising their concerns in a timely, professional and courteous manner.
“It is the commission’s hope that the result in the cause will not discourage future participation in other hearings in which any of the parties may find themselves involved. Their presence in the courtroom emphasizes the interested owners’ perspective with which the commission is always concerned,” she wrote.
