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Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 1 of 12
`
`FfL^D
`U.S DISTRICT CCURT
`DiSfKiCT OF WVGHING'
`IN THE UNITED STATES DISTRICT COURTp^, rrr, , ^ ^
`FOR THE DISTRICT OF WYOMING
`^
`^ A'! 11: | 8
`
`Civil Action No. 2-1 cvZo-S
`
`"ARGARETB0TK1M3. CLERK
`CHlYLNNE
`
`UNITED STATES OF AMERICA,
`
`Plaintiff,
`
`V.
`
`FLEUR DE LIS ENERGY, LLC, and
`FDL OPERATING, LLC
`
`Defendants.
`
`STIPULATION OF SETTLEMENT AND JUDGMENT
`
`WHEREAS, Plaintiff United States of America, on behalf of the United States
`
`Environmental Protection Agency ("EPA")j has filed a Complaint concurrently with this
`
`Stipulation of Settlement and Judgment ("Stipulation") against Defendants Fleur de Lis Energy,
`
`LLC and FDL Operating, LLC (collectively "Defendants").
`
`WHEREAS, the Complaint seeks civil penalties for violations of the Clean Water Act
`
`("Act"), arising fi-om:
`
`(i)
`
`Defendants' unauthorized discharge of: (a) approximately 113 barrels of crude oil
`
`and produced water on or about October 5,2016 firom well 02WC2SE34 located
`
`in Salt Creek Field, Natrona County, Wyoming; (b) approximately 12 barrels of
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`crude oil and produced water on or about October 27,2016 fix)m well
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`13WC1SE26 located in Salt Creek Field, Natrona County, Wyoming; (c)
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`approximately 559 barrels of crude oil and produced water on or about August 12,
`
`1
`
`

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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 2 of 12
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`2017 from an injection line located in Linch Complex Field, Johnson County,
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`Wyoming; (d) approximately nine barrels of crude oil and produced water on or
`
`about January 3,2018 from piping associated with LACT 11 located in Salt Creek
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`Field, Natrona Coimty, Wyoming; (e) approximately six barrels of crude oil and
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`produced water on or about May 21,2018 from a well associated with LACT 11
`
`located in Salt Creek Field, Natrona County, Wyoming; and (Q approximately
`
`7,307 barrels of crude oil and produced water on or about May 27,2018 from a
`
`flowline associated with LACT 11 located in Salt Creek Field, Natrona County,
`
`Wyoming.
`
`(ii)
`
`Defendants' failure to prepare adequate Spill Prevention Control and
`
`Countermeasure ("SPCC") plans for LACT 4,5,10,11, and 20 in Salt Creek
`
`Field, Natrona County, Wyoming, and West-Sussex B-1 in Linch Complex Field,
`
`Johnson County, Wyoming (collectively the "Facilities"); and
`
`(iii)
`
`Defendants' failure to prepare adequate Facility Response Plans ("FRPs") for
`
`LACT 4, 5,10, and 11 in Salt Creek Field, Natrona County, Wyoming;
`
`WHEREAS, Defendants' responses to the unauthorized discharges were prompt and
`
`adequate;
`
`WHEREAS, upon being informed by EPA that the SPCC plans and FRPs for the
`
`facilities identified above were inadequate. Defendants submitted to EPA adequate SPCC plans
`
`for the Facilities and adequate FRPs for LACT 4, 5,10, and 11;
`
`WHEREAS, Defendants do not admit any liability to the United States arising out of the
`
`transactions or occurrences alleged in the Complaint, including whether any of the drainages or
`
`other water features named in the Complaint fall within federal jurisdiction.
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 3 of 12
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`WHEREAS, Plaintiff and Defendants (the "Parties'^ agree that settlement of this action
`
`without litigation is in the public interest and that entry of this Stipulation is the most appropriate
`
`means of resolving this action.
`
`NOW THEREFORE, before the taking of any testimony, without the adjudication or
`
`admission of any issue of fact or law except as provided in Paragraphs 1 and 2, and with the
`
`consent of the Parties, it is hereby ORDERED, ADJUDGED, and DECREED:
`
`1.
`
`This Court has jurisdiction over the subject matter of this action pursuant to 28
`
`U.S.C. §§ 1331,1345, and 1355 and Sections 309(d) and 311(b)(7)(E) of the Clean Water Act,
`
`33 U.S.C. §§ 1319(d) and 1321(b)(7)(E), and over the Parties. Venue is proper in this District
`
`pursuant to 28 U.S.C. §§ 1391(b) and 1395(a) and Section 311(b)(7)(E) of the Clean Water Act,
`
`33 U.S.C. § 1321(b)(7)(E) because Defendants are doing business in Wyoming. For purposes of
`
`this Stipulation, and any action to enforce this Stipulation, Defendants consent to this Courtis
`
`jurisdiction over this Stipulation and any such action, and over Defendants, and consent to venue
`
`in this District.
`
`2.
`
`Defendants agree that the Complaint states claims for which relief can be granted.
`
`3.
`
`Mthin 30 days after entry by the Court of this Stipulation, Defendants shall pay
`
`the sum of $1,900,000 to the United States as a civil penalty.
`
`4.
`
`Defendants shall pay the civil penalty by FedWire Electronic Funds Transfer
`
`(EFT) to the U.S. Department of Justice account, in accordance with instructions provided to
`
`Defendants by the Financial Litigation Unit ('TLU") of the United States Attorney's Office for
`
`the District of Wyoming after entry. The payment instructions provided by the FLU will include
`
`a Consolidated Debt Collection System ("CDCS") number, which Defendants shall use to
`
`identify all payments required to be made in accordance with this Stipulation. The FLU will
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 4 of 12
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`provide the payment instructions to Joe Nicholas, 5221 N O'Connor Blvd. Suite 1100, Irving TX
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`75039, jnicholas@fdlenergy.com, on behalf of Defendants. Defendants may change the
`
`individual to receive payment instructions on its behalf by providing written notice of such
`
`change to the United States. Such monies are to be deposited in the Oil Spill Liability Trust Fund
`
`pursuant to 33 U.S.C. § 1321(s) and 26 U.S.C. § 9609(b)(8).
`
`5.
`
`At the time of payment. Defendants shall send notice that payment has been made
`
`to:
`
`a.
`
`the National Pollution Fimds Center by regular mail at CG National
`
`Pollution Funds Center (CF), U.S. Coast Guard Stop 7605,2703 MXJC Jr. Avenue, SE,
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`Washington, D.C. 20593-7605; and
`
`b.
`
`the United States by email at eescdcopv.enrd@usdoi .gov or regular mail at
`
`EES Case Management Unit, Environment and Natural Resources Division, U.S.
`
`Department of Justice, P.O. Box 7611, Washington, D.C. 20044-7611.
`
`Such notice shall state that the payment is for the civil penalty owed pursuant to the Stipulation
`
`in United States of America v. Flear de Lis Energy, LLC et al. and shall reference the civil action
`
`number assigned to this case, CDCS Number, and DOJ Case Number 90-5-1-1-12200.
`
`6.
`
`If Defendants fail to pay the civil penalty when due. Defendants shall pay a
`
`stipulated penalty of $1,000 for each day that the payment is late. Stiptilated penalties shall begin
`
`to accrue on the day alter the civil penalty is due and shall continue to accrue until payment of
`
`the civil penalty is made. Defendants shall pay any stipulated penalties within 30 days of
`
`receiving the United States' written demand. Payment of any stipulated penalties shall be made
`
`in the manner set forth in Paragraph 4, except that the notice required by Paragraph 5 shall state
`
`that the payment is for stipulated penalties for late payment of the civil penalty. The United
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 5 of 12
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`States may in the uureviewable exercise of its discretion, reduce or waive stipulated penalties
`
`otherwise due it under this Stipulation.
`
`7.
`
`Interest shall accrue on die balance of any unpaid civil penalty and/or stipulated
`
`penalties, as provided for in 28 U.S.C. § 1961, commencing on the day after the deadline for
`
`paying such civil penalty and/or stipulated penalties.
`
`8.
`
`The payment obligations of this Stipulation apply to and are binding upon
`
`Defendants and their successors. Any change in ownership or corporate status sHnll not alter
`
`Defendants' payment obligations under this Stipulation.
`
`9.
`
`Defendants shall not deduct any penalties paid under this Stipulation in
`
`calculating their federal, state, or local income tax.
`
`10.
`
`Nothing in this Stipulation shall be construed to limit the United States from
`
`seeking any remedy otherwise provided by law for Defendants' failure to pay the civil penalty or
`
`any stipulated penalties when due.
`
`11.
`
`This Stipulation resolves the civil claims of the United States against Defendants
`
`for the violations alleged in the Complaint
`
`12.
`
`Within 30 days after receipt of all amounts due under this Stipulation, the United
`
`States shall provide notice to the Court that fiiU payment has been made, at which time the civil
`
`claims of the United States for the violations alleged in the Complaint shall be dismissed with
`
`prejudice.
`
`13.
`
`This Stipulation in no way affects the right of the United States to bring an action
`
`for any violation not alleged in the Complaint.
`
`14. The Parties shall bear their own costs of this action, including attorneys' fees,
`
`except that the United States shall be entitled to collect the costs (including attorneys' fees)
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 6 of 12
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`incurred in any action necessary to collect any portion of the civil penalty or any stipulated
`
`penalties due but not paid by Defendants.
`
`15.
`
`The Court retains jurisdiction to enforce this Stipulation until such time that the
`
`United States provides notice of full payment pursuant to Paragr^h 12.
`
`16.
`
`This Stipulation constitutes the entire agreement between the United States and
`
`Defendants and supersedes any prior agreements, discussions, or representations, oral or written,
`
`concerning the settlement embodied herein.
`
`17.
`
`Each undersigned representative of Defendants and the Assistant Attomey
`
`General of the Environment and Natural Resources Division or his designee certifies that he or
`
`she is fully authorized to enter into the terms and conditions of this Stipulation and to execute
`
`and legally bind the Party he or she represents to this document.
`
`18.
`
`This Stipulation may be signed in counterparts, and its validity shall not be
`
`challenged on that basis.
`
`19.
`
`Each Defendant shall identify, on its attached signature page, the name, address,
`
`telephone number, and email address of an agent who is authorized to accept service of process
`
`by mail or email on its behalf with respect to all matters arising under or relating to this
`
`Stipulation. Defendants agree to accept service in that manner and to waive the formal service
`
`requirements set forth in Rules 4 and 5 of the Federal Rules of Civil Procedure and any
`
`applicable Local Rules of this Court including, but not limited to, service of a summons.
`
`Defendants need not file an answer to the Complaint in this action unless or until the Court
`
`expressly declines to enter this Stipulation.
`
`20.
`
`Defendants consent to entry of this Stipulation without further notice.
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 7 of 12
`
`As stipulated to and agreed by the Parties, IT IS SO ORDERED AND ADJUDGED.
`
`ORDER
`
`Dated:
`
`United States District Judge
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 8 of 12
`
`THE UNDERSIGNED PARTIES enter into this Stipulation and Order in the matter of United
`States V. Fleur de Lis Energy. LLC and FDL Operating^ LLC.
`
`FOR THE UNITED STATES OF AMERICA:
`
`■z/lhjz-l
`
`Dated:
`
`NATHANIEL DOUtiLAS
`Deputy Section Chief
`Environmental Enforcement Section
`U.S. Department of Justice
`
`C. ELMER, Senior Counsel
`Environmental Enforcement Section
`Environment and Natural Resources Division
`U.S. Department of Justice
`
`NICHOLAS VKSSALLO
`Assistant United States Attorney
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 9 of 12
`
`THE UNDERSIGNED PARTIES enter into this Stipulation and Order in the matter of United
`States V. Fleur de Lis Energy. LLC and FDL Operating. LLC.
`
`FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY:
`
`Dated:
`
`LAWRENCE Eg^ENlSr^RELo
`STARFIELD
`
`LAWRENCE E. STARFIELD
`Acting Assistant Administrator
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
`
`ROSEMARIE KELLEY
`Director
`Office of Civil Enforcement
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
`
`MARKPOLLINS
`Director
`Water Enforcement Division
`Office of Civil Enforcement
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
`
`KELLY ANN KACZKA BRANTNER
`Attomey-Adviser
`Water Enforcement Division
`Office of Civil Enforcement
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 10 of 12
`
`THE UNDERSIGNED PARTIES enter into this Stipulation of Settlement and Judgment in the
`matter ofUnited States v. Fleur de Lis Energy. LLC and FDL Oneratinp, T.T .r.
`
`FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGION 8:
`
`1/25/2021
`
`Dated:
`
`Dated:
`
`1/22/2021
`
`1/19/2021
`
`Dated:
`
`DEBRA
`THOMAS
`
`Dignally signed by DEBRA
`THOMAS
`Date: 2021.01^ 14:56:58
`■oroc
`
`DEBRA H. THOMAS
`Acting Regional Administrator
`U.S. Environmental Protection Agency, Region 8
`1595 Wynkoop Street
`Denver, Colorado 80202
`
`/s/ Elyana R. Sutin acting
`
`KENNETH C. SCHEFSKI
`Regional Counsel
`U.S. Environmental Protection Agency, Region 8
`1595 Wynkoop Street
`Denver, Colorado 80202
`
`Digitally signed by Wtiner.
`WGiriGt/ Msrc Date:2021J1.19083724
`■oro<y
`
`MARCWEINER
`Senior Assistant Regional Counsel
`U.S. Environmental Protection Agency, Region 8
`1595 Wynkoop Street
`Denver, Colorado 80202
`
`10
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 11 of 12
`
`THE UNDERSIGNED PARTIES enter into this Stipulation and Order in the matter of United
`States V. Fleur de Lis Energy. LLC and FDL Operating. LLC.
`
`FOR DEFENDANT FLEUR DE LIS ENERGY, LLC:
`
`Dated
`
`:e plunk
`lief Executive Officer
`Fleur de Lis Energy, LLC
`
`1-15-21
`
`Dated:
`
`ERIC P. WAECKERLIN
`Brownstein Hyatt Farber Schrcck LLP
`410 Seventeenth Street, Suite 2200
`Denver, Colorado 80202
`(303)223-1290
`e wae ckerl i n @ bh fsxom
`Counsel for FDL Operating, LLC
`(Agent for service of process pursuant to paragraph 19)
`
`II
`
`

`

`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 12 of 12
`
`THE UNDERSIGNED PARTIES enter into this Stipulation and Order in the matter of United
`States V. Fleur de Lis Energy. LLC and FDL Operating. LLC.
`
`FOR DEFENDANT FDL OPERATING, LLC:
`
`Dated:
`
`Z/
`
`:e plunk
`'hief Executive Officer
`FDL Operating, LLC
`
`Dated: 1-15-21
`
`ERIC P. WAECKERLIN
`Brownstein Hyatt Farber Schreck LLP
`410 Seventeenth Street, Suite 2200
`Denver, Colorado 80202
`(303) 223-1290
`ewaeckeriin@bhts.com
`Counsel for FDL Operating, LLC
`(Agent for service of process pursuant to paragraph 19)
`
`12
`
`

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