DAQ-2024-008011

State of Utah
SPENCER J. COX
Govemor
DEIDRE HENDERSON
Lieutenanl Governor
Department of
Environmbntal Quality
Kimberly D. Shelley
Executive Director
DIVISION OF AIR QUALITY
Bryce C. Bird
Director
UTAH DF:F'ART|!4F|'',T C-:,
ENVIRONMENTAL QI.,IAI. I iY
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DIVISION
December 22,2023
Sent Via Certified Mail No. 70190700000208346535
Doug Betts
Water Disposal Inc.
2285 Ltrclcy John Drive
P.O. Box 520
Roosevelt, UT 84066
Dear Mr. Betts:
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DAQC-13s9-23
Site ID: 15668 (Bl)
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Re: Early Settlement Agreement - Water Disposal Inc. - Produced Water Facility - Condition
I.3, Condition I.5, Condition ILB.2.b, Condition II.B.2.b.1, Condition Il.B.2.f, and Condition
II.B.4.d.l of Approval Order DAQE-ANI56680001-17 - Duchesne County, Utah
On September 14,2023, the Utah Division of Air Quality (DAQ) issued a Compliance Advisory
to Water Disposal [nc. as a result of an inspection performed on September 6, 2023.Water
Disposal Inc. responded to the Compliance Advisory on December 11, 2023.Based on the
findings of the inspection and response to the Compliance Advisory, the DAQ determined that
Water Disposal Inc. was in violation of:
1. Condition I.3 of Approval Order (AO) DAQE-AN156680001-17:
Modifications to the equipment or processes approved by this AO that could affect the
emissions covered by this AO have not been reviewed and approved - Equipment onsite
does not represent what is listed in the AO.
2. Condition I.5 of AO DAQE-ANI56680001-17:
Associated air pollution control equipment is not used in a manner consistent with good air
pollution control practice for minimizing emissions - Two (2) open air mixing tanks and
sledge from tanks and centrifuge solids are not controlled by the combustor.
195 North 1950 West. Salt Lake City, UT
Mailing Address: P.O. Box 144820. Salt Lake City, UT 84114-4820
Telephone (801 ) 5364000 . Fax [phone] . T.D D [phone]
ww.deq.utah.gov
Printed on l00o/o recycled paper
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DAQC-13s9-23
Page2
3. Condition II.B.2.a of AO DAQE-AN I 5668000 1 - 1 7:
The owner/operator shall not produce more than 14,400 barrels (l barrel : 42 gallons) of
crude oil per rolling 12-month period.
4. Condition II.B.2.b of AO DAQE-AN156680001-17:
Centrifuge solids and tank sludge were not stored in an enclosed storage vessel prior to
being hauled off site.
5. Condition II.B.2.b.1: of AO DAQE-ANI56680001-17:
All sludge and centrifuge waste were not contained in the enclosed storage vessel at the
end of each business day. Records of sludge and centrifuge waste deposits are not kept for
all periods when the plant is in operation. Deposits are not determined by supervisor
monitoring and maintaining an operations log.
6. Condition II.B.2.f of AO DAQE-AN156680001-17:
The owner/operator is not inspecting the thief hatches at least once monthly to ensure the
thief hatches are closed,latched, and the associated gaskets, if any, are in good working
condition.
7. Condition II.B.4.d.1 of AO DAQE-ANI56680001-17:
Records of water treatment are not kept for all periods when the plant is in operation. The
following records have not been kept:
A. Date of treatment
B. Number of treatments made
C. Records of temperature if the temperature is below freezing
Section 19-2-115 of the Utah Code provides that violations of the Utah Air Conservation Act (the
Act) and/or any order issued thereunder may be subject to a civil penalty of up to $10,000 per day
for each violation. Based upon our civil penalty policy, we calculated a preliminary civil penalty
for the above listed violation(s) of $ I 8,965.
The monetary amount of the DAQ settlement offer specified below is derived from a
pre-established schedule of penalties, which takes into account, among other factors, the
magnitude and severity of the violation, economic benefit, cooperation of the source as well as the
prior history of violations. See the attached penalty worksheet for details.
All panies we deal with, whether private, commercial, or governmental are treated similarly in the
settlement process. Early Settlement Agreements are based on the evaluation of the same factors
and criteria in all cases. The DAQ acknowledges that the violations on September 6,2023,were
addressed by Water Disposal Inc. Water Disposal Inc. has created an operations and maintenance
plan (O & M plan) to inspect and keep records of thief hatches. The O & M plan will also include
DAQC-13s9-23
Page 3
treating haul roads with water when needed and keeping records. Records of oil production will
also be kept. There are plans to install an enclosed tank for the two (2) open air mixing tanks that
will be controlled with the combustor by spring of 2024. Water Disposal Inc. is working with
Geostrata (consulting firm) to submit a NOI to raise the limit of crude oil produced per rolling
12-month period.
If you are interested in settling this violation, we are authorized to offer settlement in accordance
with the DAQ Penalty Policy as follows:
1 . Water Disposal Inc. agrees to pay a reduced civil penalty in the sum of $ 15 ,172. Payment
of a civil penalty precludes further civil enforcement for the above described violation
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Agreement.
2. The DAQ retains its authority to take any enforcement actions based on any and all
violations not specifically described above. If a violation is a failure to submit a Notice of
Intent to the Director and receive an Approval Order under Utah Administrative Code
R307-401-5, the DAQ retains its authority to take subsequent enforcement action if during
the next inspection the DAQ finds the source is still not in compliance with R307-401-5.
3. In the event any further violations of the Act, the Utah Air Quality Rules, the source's AO,
or the Director's Orders occur, the DAQ may consider the violation described above in
assessing a penalty for the subsequent violations, in accordance with the provisions of
Utah Administrative Code R307- 1 30.
4. Entering into this Early Settlement Agreement shall not constitute an admission of
violation of the Act, the Utah Air Quality Rules, or the source's AO nor shall it be inferred
to be such an admission in any administrative or judicial proceeding. The described
violation will constitute part of the company compliance history for any purpose for which
such history is relevant to the DAQ.
At the DAQ's option, you may request a portion of the calculated civil penalty gravity component
to be used to complete a Supplemental Environmental Project (SEP) or credited toward the Utah
Environmental Mitigation Fund to benefit present and future air quality within Utah. For more
information, please contact the DAQ representative listed below.
This Early Settlement Agreement constitutes an offer of settlement and is not a demand for
payment. The Early Settlement Agreement reflects a reduced penalty for early settlement of this
matter.
If the above terms are acceptable to you, please sign and return this Early Settlement Agreement
and a check in the sum of $15,172. Submit the signed Early Settlement Agreement and check
made payable to the DAQ at the letterhead address within twenty (20) business days of receipt of
this Early Settlement Agreement. Electronic payments are also available on our website at:
https : //deq. utah. gov/general/payment-portal.
DAQC-13s9-23
Page 4
You may write or call to request a settlement conference with the DAQ representative listed
below. A conference must be scheduled within twenty (20) business days of your receipt of this
Early Settlement Agreement. If we do not receive a signed copy of this Early Settlement
Agreement and payment or other correspondence from you within twenty (20) business days of
your receipt, we will assume that you are not interested in resolving this matter as outlined above.
If you need an Approval Order, this Early Sefflement Agreement does not relieve you of that
responsibility and does not change that requirement in order to return to compliance with the
DAQ. You must submit a Notice of Intent for a required Approval Order as soon as possible.
Your source will be re-inspected in a reasonable time to confirm you have fully returned to
operating in compliance. Failure to obtain a required Approval Order will subject you to
additional penalties and a new compliance action by the DAQ.
This Early Settlement Agreement is intended to quickly resolve the non-compliance issues listed
above and requires the immediate attention of your company. Failure to resolve this matter as
outlined above may result in this offer being revoked and/or having this matter referred to a
formal enforcement process, including filing a judicial case to collect penalties (up to $10,000 per
day for each violation) and compel compliance in the state district court.
If you have any additional questions regarding this matter, please contact Rik Ombach at
801-499-6095 or by email at [e-mail].
Sincerely,
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Bryce C. Bird
Director
BCB:RO:rh
cc: TriCounty Health Department
DAQC-13s9-23
Page 5
Acceptance of Early Settlement Agreement
I have read the above Early Settlement Agreement and I agree to the terms and conditions thereof.
Company Name: Water Disposal Inc. - Produced Water Facility
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