Matter of Mullins & Pritchard, Inc.

549 So. 2d 872, 1989 WL 124609
CourtLouisiana Court of Appeal
DecidedAugust 1, 1989
DocketCA 88 1048
StatusPublished
Cited by1 cases

This text of 549 So. 2d 872 (Matter of Mullins & Pritchard, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Matter of Mullins & Pritchard, Inc., 549 So. 2d 872, 1989 WL 124609 (La. Ct. App. 1989).

Opinion

549 So.2d 872 (1989)

In the Matter of MULLINS & PRITCHARD, INC. on Appeal from Proceedings Under Louisiana Environmental Quality Act, La.R.S. 30:1051 et seq.

No. CA 88 1048.

Court of Appeal of Louisiana, First Circuit.

August 1, 1989.
Rehearing Denied October 18, 1989.

*873 James C. Bates, Strain, Dennis, Ellis, Mayhall & Bates, Baton Rouge, for appellant Mullins & Pritchard, Inc.

Ann C. Coco, Baton Rouge, for appellee Dept. of Environmental Quality.

Before COVINGTON, C.J., LOTTINGER and FOIL, JJ.

FOIL, Judge.

In this appeal, appellant challenges the action of the Department of Environmental Quality (DEQ) in assessing penalties against it for impermissible discharges of oil and other wastes at its oilfield production facilities. After a thorough review of the record, we find no error in the action taken by DEQ, and affirm the imposition of penalties.

FACTS

From 1986 through late 1987, appellant, Mullins & Pritchard, owned and operated four hydrocarbon production facilities, referred to as the Hawthorne Lease, the Laura Pailet Lease, the Brady Lease and the L.L. & E. Lease. Mullins & Pritchard sold its rights to three of the leases in October, 1987, and currently operates only the L.L. & E. facility.

Beginning in May, 1986, DEQ inspectors received complaints from the Office of Conservation and a citizens complaint regarding discharges at the facilities. On May 1, 1986, DEQ received a complaint regarding discharge of saltwater at the Hawthorne lease from the Office of Conservation, and DEQ inspector Charles Melchoir, along with another Conservation official, inspected the site the same day. Mr. Melchoir found, among other things, that a valve on a glycol unit had been left open, and a discharge was seeping from it. He also found oilfield waste seeping from a burn pit and a discharge escaping from a reserve pit. He further noted an orange color in *874 the reserve pit, which he attributed to the presence of emulsified oil and possibly chloride. Finally, he observed a break in the pit levee, and found emulsified oil escaping from both pits into the adjacent swamp. He took samples of the various discharges. Mr. Melchoir testified that no one was at the site at the time of the inspection, and therefore, he was unable to provide the owner with split samples, as is the usual procedure of DEQ inspectors. He called one of Mullins & Pritchard's partners the next day, informing him of his findings and arranged to meet with its general manager. Mr. Melchoir inspected the site two additional times that month, and was satisfied with the clean-up efforts of Mullins & Pritchard. A Compliance Order was issued by DEQ on July 11, 1986, ordering Mullins & Pritchard to cease all unpermitted discharges and to conduct appropriate clean-up efforts. Mr. Melchoir visited the site again on October 21, 1987, and found oil stains on the ground, which were caused by a breakage in one of the lines. At this time, the facility had been sold to LaStrada Oil and Gas Ltd., which stated that Mullins & Pritchard was responsible for the problem prior to the sale, and it was attempting to clean up the waste.

Nathan Levy, another DEQ inspector, testified that he visited the Laura Pailet facility on June 27, 1986, in response to a complaint from the Office of Conservation regarding an oil spill and brine discharge. Mr. Levy met Scott Pritchard, Mullin & Pritchard's general manager, at the site. He observed that approximately 50 barrels of oil and brine had spilled onto the ground, attributable to an improperly levied pit which had overflowed, impacting approximately 50 acres of wetlands. He found, among other things, at least nine areas where heavy crude lay on the ground. On follow up inspections, Mr. Levy observed that some of the discharges had been corrected, but still found oil discharges at the site.

Mr. Levy visited the Brady Lease on July 18, 1986, in response to a complaint from the Jefferson Parish Environmental Department that the facility was improperly handling oilfield waste and brine. At the facility, Mr. Levy found several oil and brine discharges into the marsh, and observed black oil in the marsh and on the shoreline behind the facility. He found various parts of the facility covered with oil, and concluded that vegetational growth had been inhibited by frequent discharges. Mr. Levy took samples of the discharges.

The L.L. & E. facility was inspected by Mr. Levy on August 6, 1986, spurned by a citizen complaint lodged with DEQ regarding an overflow of oil from a pit. He found the waste oil pit discharging oil and high chlorides which produced a shallow depression in the marsh, and had overflowed into an access canal.

On October 6, 1986, DEQ issued a Compliance Order to Mullins & Pritchard, resulting from the violations at the Laura Pailet, Brady and L.L. & E. leases, citing that its investigations revealed that Mullins & Pritchard allowed the discharge of oil and other oilfield wastes from the facilities to adjacent areas without an appropriate license or permit in violation of numerous Louisiana environmental regulations. Specifically, DEQ ordered Mullins & Pritchard to immediately cease all unpermitted discharges of oil or other oilfield wastes and required it to "clean up, remove and properly dispose of all oil or other wastes and any materials contaminated by these substances that are the result of discharges from its facilities."

During follow-up inspections of the Laura Pailet, Brady and L.L. & E. leases on January 15, 1987, Mr. Levy found continuing evidence of oil discharges and spillages. Another inspection, conducted on September 18, 1987, revealed evidence of oil discharges at all three sites. With respect to the Brady lease, he noted that little or no effort had been made to remove the spilled oil.

According to Scott Pritchard, various cleanup efforts were undertaken by Mullins & Pritchard in response to the Compliance Orders. At the Laura Pailet site, the oil spill was cleaned with absorbent pads and oilfield trash was removed. At the other sites, Mullins & Pritchard replaced *875 piping, connected drains to vessels and repaired pits. However, with respect to the contamination already caused by the spills at the sites, Mullins & Pritchard did not physically remove any of the oil stained earth or shell, but merely laid new shell wherever oil stains appeared. Mr. Levy, however, related that this measure did not comport with DEQ regulations and the compliance order, which required either the removal of the oil stained materials from the site, or the burning of such materials at the site.

With respect to the procedural background of this case, on March 27, 1987, DEQ issued a Proposed Penalty Notice for the violations and the failure to report the unpermitted discharges to Mullins & Pritchard. A hearing was requested and a Statement of Charges was served on Mullins & Pritchard on September 28, 1987.

The matter came before a hearing officer in November, 1987. The hearing officer found Mullins & Pritchard guilty of illegal discharges in violation of numerous regulatory provisions, and in violation of DEQ's notification procedures. In addition, he found Mullins & Pritchard failed to properly clean up and dispose of the discharged oil field waste at the sites, in contravention of the Compliance Order. The hearing officer assessed a total penalty of $73,034.49 against Mullins & Pritchard.

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549 So. 2d 872, 1989 WL 124609, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-mullins-pritchard-inc-lactapp-1989.