DAQ-2024-008553

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF AIR QUALITY
Bryce C. Bird
Director

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
DAQC-574-24
Site ID 100514 (B1)

Ryan Zillner
Ovintiv USA Inc.
370 17th Street, Suite 1700
Denver, CO 80202-5632

Dear Mr. Zillner:

Re: Signed Early Settlement Agreement – Ovintiv USA Inc. – Lamb 1-16 4-1 – Duchesne
County

The Utah Division of Air Quality has received your signed Early Settlement Agreement
(DAQC-371-24) and payment in the amount of $2,800.00 for the Lamb 1-16 4-1 well site in
Duchesne County, UT.

Thank you for your cooperation in resolving this matter. If you have any questions regarding this
letter, please contact me at [phone] or by email at [e-mail].

Sincerely,

Rik Ombach, Manager
Minor Source Oil and Gas Compliance Section

RO:SF:jl

Enclosure: Signed Early Settlement Agreement

cc: TriCounty Health Department

June 13, 2024
.rii.pvintiv"
Ovintiv USA lnc.
Republic Plozo
370 lTth Street, Suite 1700
Denver, CO, USA 80202
T 303 623 2300
June 10,2024
Sent Ma Email;
[e-mail]
Rik Ombach
Manager, Minor Source Oil and Gas Compliance Section
Utah Department of Environmental Quality
Division of Air Quality
195 North 1950 West
Salt Lake City, UT 84-116
RE: Ovintiv USA lnc.
Early Settlement Agreement, DAQC{7 1 -24
Lamb l-16 4-1, Site lD: 100514 (Bl)
Duchesne County, UT
Dear Mr. Ombach:
Ovintiv USA lnc. ("Ovintiv") is submitting the attached signed Early Settlement Agreement for
the Lamb 1-16 4-1. Payment in the amount of $2,800.00 was submitted electronically on June
10,2024 via the Utah Division of Air Quality ("UDAO) website at:
https://deq. utah. gov/general/payment-portal.
If you have any questions, please contact me at [phone] or by email at
[e-mail].
Sincerely,
hW
Ryan Zillner
Senior Air Quality Engineer
cc: Stephen Foulger, [e-mail]
t]I!,/!SION OF AIR QUALITY
State ofUtah
SPENCERJ. COX
Goventor
DEIDREHENDERSON
Lieulerant Govenor
Department of
Environmental Quality
Kimbcdy D. Shcllcy
Exectlive Dreaor
DIVISION OF AIR QUALITY
BryceC. Bird
Dhector cc.
*..J
May L6,2A24 DAQC-3?1-24
Site ID: 100514 (Bl)
Sent Via Certified Mail No. 70190700000208346856
Ryan Zillner
Ovintiv USA Inc.
370 17th Street, Suite 1700
Denver, CO 80202-5632
Dear Mr. Zillner:
Re: Early Settlement Agreement - Ovintiv USA Inc. - Lamb l-16 4-1, Duchesne County
On February 23,2024, the Utatr Division of Air Quality (DAQ) issued a Compliance Advisory to
Ovintiv USA Inc. as a result of an inspection performed on January 31,2024. Ovintiv USA Inc.
responded to the Compliance Advisory on March 26,2024. Based on the findings of the
inspection.and response to the Compliance Advisory, the DAQ determined that Ovintiv USA Inc.
was in violation of:
l. Utah Administrative Code (UAC) R307-501-4 - General Requirements:
Emissions were found coming from a stuck separator dump valve, a one-inch gas supply
line, additionally the combustor was out and not firing.
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 $3,500.
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.
195 North 1950 West. Salt kke City, UT
Mailing Address: P.O. Box 144820. Salt Lake City, UT 841144820
Telephone [phone] . Fax [phone] . T.D.D. (E0l) 9O3-397E
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DIVISION OF AIR QUALITY
DAQC-37r-24
Page2
All parties 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 violation(s) on January 31,2024,was
addressed by Ovintiv USA Inc. on the same day as the inspection.
If you are interested in settling this violation, we are authorized to offer settlement in accordance
with the DAQ Penalty Policy as follows:
l. Ovintiv USA krc. agrees to pay a reduced civil penalty in the sum of $2,800. Payment of a
civil penalty precludes further civil enforcement for the above described violation against
the named source. Ovintiv USA Inc. agrees to pay $2,800 of the stipulated penalty within
twenty (20) business days from the date you receive this Early Settlement Agreement.
2. The DAQ retains its authority to take any enforcement actions based on any and all
violations not specifically descriH above.
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 Adminishative Code (UAC) R307-130.
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 seftlement of this
matter.
If the above terms are acceptable to you, please sign and return this Early Setttement Agreement
and a check in the zum of $2,800. 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. Electonic payments are also available on our website at:
https : //deq. utah. gov/generaVpayment-portal.
DAQC-371-24
Page 3
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.
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) rind compel compliance in the state district court.
If you have any additional questions regarding this matter, please contact Rik Ombach at
801-5364164 orby email at [e-mail].
Sincerely,
,1r*Ol
Bryce C. Bird
Director
BCB:RO:SF:rh
cc: TriCounty Health Department
DAQC-371-24
Page 4
Acceptance of Early Settlement Agreement
I have read the above Early Settlement Agreement and I agree to the terms and conditions thereof.
Company Name: Ovintiv USA Inc.
Name: R1o" Zl[1"a*'
Titte: Se.nror Air Qoelfu f,nTinee(
:]70-076- 3lqq
Telephone Number
Division of Air Quality Marketplace
il10n024 9:25:38AM
Page 1
Select ltem(s) to Purchase
Item: Penalty Payment for Compliance
Descrlption: Please enter DAQC or DAQA number to identifi/ the penalty payment.
Prlce: $2800
Quantl$6 1
Item Total:2800.00
Total of all ltems: 28@.00
Contact Information
Name/Buslness: Ovintiv USA lnc.
Phone: [phone]M
Emall: rya n.zi I I ner@ovi ntiv.com
You must upload at least I file(s) of PDF, JPG, or PNG format and < 25 MB
File Upload: 2024.06.10 Ovintiv Lamb 1-16 4-1 Signed ESA.pglf
You may upload up to 5 files of PDF, JPG, or PNG format and < 25 MB
Flle Upload:
UTAH DEPARTMEN
JUN 1 1 2024
DIVISION OF AIR OUALITY