`
`FfL^D
`U.S DISTRICT CCURT
`DiSfKiCT OF WVGHING'
`IN THE UNITED STATES DISTRICT COURTp^, rrr, , ^ ^
`FOR THE DISTRICT OF WYOMING
`^
`^ A'! 11: | 8
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`Civil Action No. 2-1 cvZo-S
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`"ARGARETB0TK1M3. CLERK
`CHlYLNNE
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`UNITED STATES OF AMERICA,
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`Plaintiff,
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`V.
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`FLEUR DE LIS ENERGY, LLC, and
`FDL OPERATING, LLC
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`Defendants.
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`STIPULATION OF SETTLEMENT AND JUDGMENT
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`WHEREAS, Plaintiff United States of America, on behalf of the United States
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`Environmental Protection Agency ("EPA")j has filed a Complaint concurrently with this
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`Stipulation of Settlement and Judgment ("Stipulation") against Defendants Fleur de Lis Energy,
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`LLC and FDL Operating, LLC (collectively "Defendants").
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`WHEREAS, the Complaint seeks civil penalties for violations of the Clean Water Act
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`("Act"), arising fi-om:
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`(i)
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`Defendants' unauthorized discharge of: (a) approximately 113 barrels of crude oil
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`and produced water on or about October 5,2016 firom well 02WC2SE34 located
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`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,
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`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
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`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
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`located in Salt Creek Field, Natrona County, Wyoming; and (Q approximately
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`7,307 barrels of crude oil and produced water on or about May 27,2018 from a
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`flowline associated with LACT 11 located in Salt Creek Field, Natrona County,
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`Wyoming.
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`(ii)
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`Defendants' failure to prepare adequate Spill Prevention Control and
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`Countermeasure ("SPCC") plans for LACT 4,5,10,11, and 20 in Salt Creek
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`Field, Natrona County, Wyoming, and West-Sussex B-1 in Linch Complex Field,
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`Johnson County, Wyoming (collectively the "Facilities"); and
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`(iii)
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`Defendants' failure to prepare adequate Facility Response Plans ("FRPs") for
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`LACT 4, 5,10, and 11 in Salt Creek Field, Natrona County, Wyoming;
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`WHEREAS, Defendants' responses to the unauthorized discharges were prompt and
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`adequate;
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`WHEREAS, upon being informed by EPA that the SPCC plans and FRPs for the
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`facilities identified above were inadequate. Defendants submitted to EPA adequate SPCC plans
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`for the Facilities and adequate FRPs for LACT 4, 5,10, and 11;
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`WHEREAS, Defendants do not admit any liability to the United States arising out of the
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`transactions or occurrences alleged in the Complaint, including whether any of the drainages or
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`other water features named in the Complaint fall within federal jurisdiction.
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`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
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`without litigation is in the public interest and that entry of this Stipulation is the most appropriate
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`means of resolving this action.
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`NOW THEREFORE, before the taking of any testimony, without the adjudication or
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`admission of any issue of fact or law except as provided in Paragraphs 1 and 2, and with the
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`consent of the Parties, it is hereby ORDERED, ADJUDGED, and DECREED:
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`1.
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`This Court has jurisdiction over the subject matter of this action pursuant to 28
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`U.S.C. §§ 1331,1345, and 1355 and Sections 309(d) and 311(b)(7)(E) of the Clean Water Act,
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`33 U.S.C. §§ 1319(d) and 1321(b)(7)(E), and over the Parties. Venue is proper in this District
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`pursuant to 28 U.S.C. §§ 1391(b) and 1395(a) and Section 311(b)(7)(E) of the Clean Water Act,
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`33 U.S.C. § 1321(b)(7)(E) because Defendants are doing business in Wyoming. For purposes of
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`this Stipulation, and any action to enforce this Stipulation, Defendants consent to this Courtis
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`jurisdiction over this Stipulation and any such action, and over Defendants, and consent to venue
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`in this District.
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`2.
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`Defendants agree that the Complaint states claims for which relief can be granted.
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`3.
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`Mthin 30 days after entry by the Court of this Stipulation, Defendants shall pay
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`the sum of $1,900,000 to the United States as a civil penalty.
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`4.
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`Defendants shall pay the civil penalty by FedWire Electronic Funds Transfer
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`(EFT) to the U.S. Department of Justice account, in accordance with instructions provided to
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`Defendants by the Financial Litigation Unit ('TLU") of the United States Attorney's Office for
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`the District of Wyoming after entry. The payment instructions provided by the FLU will include
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`a Consolidated Debt Collection System ("CDCS") number, which Defendants shall use to
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`identify all payments required to be made in accordance with this Stipulation. The FLU will
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`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
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`individual to receive payment instructions on its behalf by providing written notice of such
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`change to the United States. Such monies are to be deposited in the Oil Spill Liability Trust Fund
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`pursuant to 33 U.S.C. § 1321(s) and 26 U.S.C. § 9609(b)(8).
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`5.
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`At the time of payment. Defendants shall send notice that payment has been made
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`to:
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`a.
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`the National Pollution Fimds Center by regular mail at CG National
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`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
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`b.
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`the United States by email at eescdcopv.enrd@usdoi .gov or regular mail at
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`EES Case Management Unit, Environment and Natural Resources Division, U.S.
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`Department of Justice, P.O. Box 7611, Washington, D.C. 20044-7611.
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`Such notice shall state that the payment is for the civil penalty owed pursuant to the Stipulation
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`in United States of America v. Flear de Lis Energy, LLC et al. and shall reference the civil action
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`number assigned to this case, CDCS Number, and DOJ Case Number 90-5-1-1-12200.
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`6.
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`If Defendants fail to pay the civil penalty when due. Defendants shall pay a
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`stipulated penalty of $1,000 for each day that the payment is late. Stiptilated penalties shall begin
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`to accrue on the day alter the civil penalty is due and shall continue to accrue until payment of
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`the civil penalty is made. Defendants shall pay any stipulated penalties within 30 days of
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`receiving the United States' written demand. Payment of any stipulated penalties shall be made
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`in the manner set forth in Paragraph 4, except that the notice required by Paragraph 5 shall state
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`that the payment is for stipulated penalties for late payment of the civil penalty. The United
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`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
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`otherwise due it under this Stipulation.
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`7.
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`Interest shall accrue on die balance of any unpaid civil penalty and/or stipulated
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`penalties, as provided for in 28 U.S.C. § 1961, commencing on the day after the deadline for
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`paying such civil penalty and/or stipulated penalties.
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`8.
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`The payment obligations of this Stipulation apply to and are binding upon
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`Defendants and their successors. Any change in ownership or corporate status sHnll not alter
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`Defendants' payment obligations under this Stipulation.
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`9.
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`Defendants shall not deduct any penalties paid under this Stipulation in
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`calculating their federal, state, or local income tax.
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`10.
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`Nothing in this Stipulation shall be construed to limit the United States from
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`seeking any remedy otherwise provided by law for Defendants' failure to pay the civil penalty or
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`any stipulated penalties when due.
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`11.
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`This Stipulation resolves the civil claims of the United States against Defendants
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`for the violations alleged in the Complaint
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`12.
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`Within 30 days after receipt of all amounts due under this Stipulation, the United
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`States shall provide notice to the Court that fiiU payment has been made, at which time the civil
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`claims of the United States for the violations alleged in the Complaint shall be dismissed with
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`prejudice.
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`13.
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`This Stipulation in no way affects the right of the United States to bring an action
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`for any violation not alleged in the Complaint.
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`14. The Parties shall bear their own costs of this action, including attorneys' fees,
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`except that the United States shall be entitled to collect the costs (including attorneys' fees)
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`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
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`penalties due but not paid by Defendants.
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`15.
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`The Court retains jurisdiction to enforce this Stipulation until such time that the
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`United States provides notice of full payment pursuant to Paragr^h 12.
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`16.
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`This Stipulation constitutes the entire agreement between the United States and
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`Defendants and supersedes any prior agreements, discussions, or representations, oral or written,
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`concerning the settlement embodied herein.
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`17.
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`Each undersigned representative of Defendants and the Assistant Attomey
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`General of the Environment and Natural Resources Division or his designee certifies that he or
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`she is fully authorized to enter into the terms and conditions of this Stipulation and to execute
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`and legally bind the Party he or she represents to this document.
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`18.
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`This Stipulation may be signed in counterparts, and its validity shall not be
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`challenged on that basis.
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`19.
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`Each Defendant shall identify, on its attached signature page, the name, address,
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`telephone number, and email address of an agent who is authorized to accept service of process
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`by mail or email on its behalf with respect to all matters arising under or relating to this
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`Stipulation. Defendants agree to accept service in that manner and to waive the formal service
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`requirements set forth in Rules 4 and 5 of the Federal Rules of Civil Procedure and any
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`applicable Local Rules of this Court including, but not limited to, service of a summons.
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`Defendants need not file an answer to the Complaint in this action unless or until the Court
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`expressly declines to enter this Stipulation.
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`20.
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`Defendants consent to entry of this Stipulation without further notice.
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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 7 of 12
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`As stipulated to and agreed by the Parties, IT IS SO ORDERED AND ADJUDGED.
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`ORDER
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`Dated:
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`United States District Judge
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`
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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 8 of 12
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`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.
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`FOR THE UNITED STATES OF AMERICA:
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`■z/lhjz-l
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`Dated:
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`NATHANIEL DOUtiLAS
`Deputy Section Chief
`Environmental Enforcement Section
`U.S. Department of Justice
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`C. ELMER, Senior Counsel
`Environmental Enforcement Section
`Environment and Natural Resources Division
`U.S. Department of Justice
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`NICHOLAS VKSSALLO
`Assistant United States Attorney
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`
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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 9 of 12
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`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.
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`FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY:
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`Dated:
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`LAWRENCE Eg^ENlSr^RELo
`STARFIELD
`
`LAWRENCE E. STARFIELD
`Acting Assistant Administrator
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
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`ROSEMARIE KELLEY
`Director
`Office of Civil Enforcement
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
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`MARKPOLLINS
`Director
`Water Enforcement Division
`Office of Civil Enforcement
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
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`KELLY ANN KACZKA BRANTNER
`Attomey-Adviser
`Water Enforcement Division
`Office of Civil Enforcement
`Office of Enforcement and Compliance Assurance
`U.S. Environmental Protection Agency
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`
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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 10 of 12
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`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.
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`FOR THE U.S. ENVIRONMENTAL PROTECTION AGENCY REGION 8:
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`1/25/2021
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`Dated:
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`Dated:
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`1/22/2021
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`1/19/2021
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`Dated:
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`DEBRA
`THOMAS
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`Dignally signed by DEBRA
`THOMAS
`Date: 2021.01^ 14:56:58
`■oroc
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`DEBRA H. THOMAS
`Acting Regional Administrator
`U.S. Environmental Protection Agency, Region 8
`1595 Wynkoop Street
`Denver, Colorado 80202
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`/s/ Elyana R. Sutin acting
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`KENNETH C. SCHEFSKI
`Regional Counsel
`U.S. Environmental Protection Agency, Region 8
`1595 Wynkoop Street
`Denver, Colorado 80202
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`Digitally signed by Wtiner.
`WGiriGt/ Msrc Date:2021J1.19083724
`■oro<y
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`MARCWEINER
`Senior Assistant Regional Counsel
`U.S. Environmental Protection Agency, Region 8
`1595 Wynkoop Street
`Denver, Colorado 80202
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`10
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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 11 of 12
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`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.
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`FOR DEFENDANT FLEUR DE LIS ENERGY, LLC:
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`Dated
`
`:e plunk
`lief Executive Officer
`Fleur de Lis Energy, LLC
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`1-15-21
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`Dated:
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`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)
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`II
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`Case 0:21-cv-00020-SWS Document 4 Filed 02/10/21 Page 12 of 12
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`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.
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`FOR DEFENDANT FDL OPERATING, LLC:
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`Dated:
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`Z/
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`:e plunk
`'hief Executive Officer
`FDL Operating, LLC
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`Dated: 1-15-21
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`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)
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`12
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