Kathleen M. McKeown, ALJ for the Oklahoma Corporation Commission (OCC), found that the well was within Vian town limits and that state law allows municipalities to have their own laws regarding saltwater disposal wells, meaning I-MAC Petroleum Services Inc. has to follow both the OCC guidelines and the town’s new ordinances.
The new ordinance drawn up by the Cherokee Nation and presented to the Vian Town Council in a meeting Jan. 18 regulates the drilling, equipping and operation of underground injection control wells being placed within the town’s limits. The council approved the ordinances.
Vian Mayor Kenneth Johnson said in a phone interview that the news is considered a victory for the town.
“Now we will go through to the next step because the judge has ruled the town’s ordinance stands,” Johnson said. “So the next step would be, if the OCC gives them the permit, which has been recommended, is for them to go through Cherokee Nation Environmental Quality to get their report before they can get a permit from the town as stated in the ordinance. I believe this is a good thing for the town.”
“McKeown was asked to determine if the well was within town limits and whether the town’s new ordinance had any impact on what the commission needed to do under the law,” Matt Skinner, OCC public information officer said. “There is no date set yet for the commission to make a decision.”
Well owner response
Vian well owner Charles Brooks said in a phone interview Monday that, “To my knowledge nothing has really changed and we’re really not too concerned about it. It has been my understanding that the judge has recommended the well application and has attached the ordinance set forth by the town to her report. The town would have had the same rights whether they would have protested it or not—she’s attached the ordinance to her ruling showing that it is there and basically we will have to deal with it somewhere else. If it’s all valid and the town tries to enforce it, we will file in district court—that is our option. It just added a few more weeks to the process.”
ALJ’s supplemental report
“She (ALJ) had already recommended approval of the well some months ago — whether the well met commission rules wasn’t at issue in this latest court hearing — and repeated that recommendation in her findings this time,” Skinner said.
“So she found for the town’s right to enact its own ordinance. She found that in such cases, the applicant (in this case, IMAC) must meet OCC rules and a municipality’s rules, but that the OCC could only consider its own rules in making its decision.”
The judge’s recommendation goes on to say… “Therefore, the ALJ finds that the Commission has exclusive jurisdiction over the subject matter but said jurisdiction is concurrent with the jurisdiction granted to cities and towns to implement rules and regulations enacted to provide for the welfare of its inhabitants. Therefore, the recent ordinance passed by the Town of Vian stands on its own, as do the rules and regulations of the Commission.
“The Commission permitting process cannot take the place of compliance with applicable town ordinances nor can meeting the requirements of the town take the place of compliance with Commission permit requirements. The permitting of the subject well by the Commission and by the Town of Vian are separate requirements all of which must be satisfactorily complied with prior to the drilling of the Vian SWD #27-1.”
Town Ordinances
The new ordinances require a permit be secured from the Vian Board of Trustees, and the application is to include a map of the 640 acres surrounding the drill site, location of the proposed well and the distance to all existing dwelling houses, buildings or other structures designed for occupancy of human beings or animals within 2,000 feet of any such well.
The ordinances also require proof of pollution liability insurance that has a minimum of $3 million, and $100,000 per person in blanket coverage and bodily injuries, and $3 million per accident, a $75,000 per year fee to operate and a usage fee of $100 on vehicles discharging materials at any site.
Brooks said earlier that he felt the main purpose of the ordinances was to keep the injection well out of town and the ordinances are specifically directed at him and his partners.
“To my knowledge there is no other industry that has an annual inspection fee of such staggering amounts such as what the town is asking,” Brooks said.
“From our standpoint, the town doesn’t have the expertise to regulate this well and after we had our counselors look at it, we believe it to be unconstitutional, illegal and there are several levels of legalities that are not enforceable.”
Cherokee response
After hearing the judge’s recommendation, Cherokee Nation Councilman David Thornton of Vian said having the Cherokee Nation step in and help in this case has really paid off.
“I think they (well owners) stopped in Vian and thought we were just poor people living in a poor town that did not have enough money to fight this,” Thornton said. “At least that’s what it looks like, but the Cherokee Nation has proved them wrong.
“I’m ready for district court if it comes to it,” Thornton said, “I have a feeling that the Cherokee Nation and I, along with others, will see them (owners) there. There will be even more evidence entered in district court.
“We’re not just a bunch of poor uneducated people here; we may not be the same class he’s used to running with but we know when we’re being duked.” Thornton said. “We’re ready, too. We’re not in this to lose. Cherokee Nation doesn’t go for losing and getting run over. We’re a sovereign nation and if they don’t recognize this by the time this is over, we also have laws and a courthouse and can try this ourselves.
“We’re in it to win it.”
The story that appeared in last Sunday’s issue of Your Times about the proposed Vian injection well contained a number of errors which this news article corrects. We are indebted to Oklahoma Corporation Commission spokesman Matt Skinner and a number of our readers for pointing out these errors to us and for providing information for this article. We sincerely regret the errors and the confusion they caused.
—Jim Mayo, Publisher, and Jeff Mayo, Associate Publisher and General Manager
