JUN
1
82009
STATE
OF
ILLINOIS
PolIt,n
Control
Board
OFFICE
OF
THE
ATTORNEY
GENERAL
STATE
OF
ILLINOIS
Lisa
Madigan
ATIORNEY
GENERAL
June
16,
2009
John
T.
Therriault,
Assistant
Clerk
Assistant
Clerk
of
the
Board
Illinois
Pollution
Control Board
James
R.
Thompson
Center,
Ste.
1 1-500
100
West
Randolph
Chicago,
Illinois
60601
Re:
People
v. James
R.
Cantrell
PCB
No.
09-23
Dear
Clerk:
Enclosed
for
filing
please
find
the
original
and
ten
copies
of a
Notice
of
Filing,
Motion
for
Relief
from
Hearing
Requirement and
Stipulation
and
Proposal
for
Settlement
in
regard
to the
above-captioned
matter. Please
file
the
originals
and
return
file-stamped
copies
to
me
in
the
enclosed
envelope.
Thank
you
for
your
cooperation
and
consideration.
Very
truly
yours,
Step
e
J.
anasie
V
Environmental
Bureau
500
South
Second
Street
Springfield, Illinois
62706
(217)
782-9031
SJJ/pjk
Enclosures
500
South
Second
Street,
Springfield,
Illinois
62706
• (217)
782-1090
• TTY:
(877)
844-5461
• Fax:
(217)
782-7046
100
West
Randolph
Street,
Chicago,
Illinois
60601
•
(312)
814-3000
•
TTY:
(800)
964-3013
• Fax:
(312)
814-3806
BEFORE THE ILlINOIS
POLLUTiON CONTROL BOARD
PEOPLE OF THE STATE
OF ILLINOIS,
)
CompIanant,
vs.
)
PCB No. 09-23
)
(Enforcement - Water)
JAMES R. CANTRELL,
)
Respondent.
)
NOTICE OF FILING
,%
To:
James R.
Cantrell
Q
1833 County Road 1980 E
COO
Crossville, IL 62827
PLEASE TAKE
NOTICE
that
on this date I mailed for filing with
the
Clerk of
the Pollution
Control Board
of the State of
Illinois,
a
MOTION FOR
RELIEF FROM HEARING
REQUIREMENT
and
STIPULATION
AND
PROPOSAL FOR SETTLEMENT,
copies of which are attached
hereto
and herewith served upon you.
Respectfully submitted,
PEOPLE
OF THE STATE OF ILLINOIS
LISA MADIGAN,
Attorney
General of the
State
of
Illinois
MATTHEWJ.
DUNN, Chief
Environmental
Enforcement/Asbestos
Litigation
Divisi
n
,4
/7
BY:
Ste eJanjsie
Assistant
Atforney General
Environmental
Bureau
500
South Second
Street
Springfield,
Illinois 62706
217/782-9031
Dated:
June
16, 2009
ED
CERTIFICATE
OF SERVICE
ijg
18
2009
I hereby
certify
that
I did
on
June
16,
2009,
send by
First
Class Mail,
with
postage
PoIIuri
STATE
thereon
OF
Controi
ILLINO,c.
Bocj
fully prepaid,
by
depositing
in a
United
States
Post
Office
Box a true
and
correct
copy
of the
following
instruments
entitled
NOTICE
OF
FILING,
MOTION
FOR
RELIEF
FROM
HEARING
REQUIREMENT and STIPULATION
AND
PROPOSAL
FOR SETTLEMENT:
To:
James
R.
Cantrell
1833
County
Road
1980
E
Crossville,
IL 62827
and
the original
and
ten
copies
by
First
Class
Mail with
postage
thereon
fully
prepaid
of
the
same
foregoing
instrument(s):
To:
John
T.
Therrault,
Assistant
Clerk
Illinois
Pollution
Control
Board
James
R.
Thompson
Center
Suite
11-500
100
West
Randolph
Chicago,
Illinois
60601
A
copy
was
also
sent
by
First
Class
Mail
with postage
thereon
fully
prepaid
to:
Carol Webb
Hearing
Officer
Illinois
Pollution
Control
Board
1021
North
GrandAvenue East
Springfield, IL 62794
Step
n
. Ja
sie
Assistant
Attorney
General
This filing
is submitted
on
recycled
paper.
BEFORE
THE ILLINOIS
POLLUTION CONTROL
BOARD
PEOPLE
OF
THE STATE OF ILLINOIS,
)
Complainant,
vs.
)
PCB No. 09-23
)
(Enforcement
- Water)
-
CLERI’S
OFFICE
Respondents.
)
JUN
18
2009
STATE OF
ILLINOIS
MOTION FOR RELIEF
FROM HEARING
REQUIREME9IUtt0fl
Control
Board
NOW COMES Complainant, PEOPLE
OF THE STATE OF ILLINOIS,
by LISA
MADIGAN, Attorney General of
the State of Illinois, and pursuant to
Section 31 (c)(2) of
the
Illinois Environmental Protection
Act (‘Act”), 415 ILCS 5131(c)(2) (2006),
moves that the Illinois
Pollution
Control Board
grant
the parties in the above-captioned matter relief
from the hearing
requirement imposed by Section 31(c)(1) of the Act, 415 ILCS 5131(c)(1) (2006).
In support
of
this motion, Complainant states as follows:
1.
The parties
have reached
agreement on all outstanding issues in this
matter.
2.
This agreement is presented
to the
Board
in a
Stipulation
and Proposal for
Settlement, filed contemporaneously with
this motion.
3.
All parties agree that a hearing
on the
Stipulation
and Proposal for
Settlement is
not necessary,
and
respectfully request relief from
such a
hearing
as
allowed
by Section
31(c)(2) of the Act, 415 ILCS 5/31(c)(2) (2006).
I
WHEREFORE,
Complainant,
PEOPLE
OF
THE STATE
OF
ILLINOIS,
hereby
requests
that the
Board
grant
this
motion
for relief from
the hearing
requirement
set forth in
Section
31(c)(1)
of the Act,
415 ILCS
5131(c)(1)
(2006).
Respectfully
submitted,
PEOPLE
OF
THE
STATE
OF
ILLINOIS
LISA MADIGAN
ATTORNEY
GENERAL
MATTHEWJ,
DUNN,
Chief
Environmental
Enforcem
t/Asbestos
Lit
gati
i
BY:
ST
N
. JANASIE
Environm
ntal Bureau
Assistant
Attorney
General
500
South Second
Street
Springfield,
Illinois
62706
217/782-9031
Dated:
June 16,
2009
2
BEFORE THE
ILLINOIS POLLUTION CONTROL BOARD
PEOPLE OF THE STATE OF ILLINOIS,
)
Complainant,
v.
)
PCB
NO.
09-23
(Water- Enforcement)
JAMES R.
CANTRELL,
)
Respondent.
)
STIPULATION AND PROPOSAL
FOR SETTLEMENT
jU4 “
Si
9L
Board
Complainant, PEOPLE
OF
THE STATE
OF
ILLINOIS,
by
LISA
MADIGAN, A9’
General
of the State of
Illinois,
the Illinois Environmental Protection Agency (“Illinois
EPA”), and
JAMES R. CANTRELL (“Respondent”) (“Parties
to the Stipulation”), have
agreed
to the making
of this Stipulation and Proposal for Settlement (“Stipulation”) and submit it to the Illinois
Pollution
Control
Board (“Board”) for approval. This stipulation of
facts
is made
and
agreed
upon
for
purposes of
settlement only and as
a
factual basis for the Board’s approval of this Stipulation
and issuance
of
relief. None of the facts stipulated
herein shall
be
introduced
into evidence
in
any
other proceeding regarding the violations of the Illinois Environmental Protection Act (“Act”),
415 ILCS 5/1 et seq.
(2006), and
the
Board’s
Regulations, alleged in
the Complaint except
as
otherwise provided herein. It is the intent of the parties
to
this Stipulation that
it
be a final
adjudication of this
matter.
I. STATEMENTOF FACTS
A.
Parties
to
the Stipulation
1.
A
Complaint
was filed on behalf
of
the
People
of the State of
Illinois
by
Lisa
Madigan,
Attorney General of the State of Illinois, on her own motion and
upon
the request
of
the Illinois EPA,
pursuant to Section 31 of the Act, 415 ILCS 5/31 (2006), against the
1
Respondent.
2.
The Illinois EPA
is an administrative
agency of
the State of Illinois, created
pursuant to Section 4 of the
Act, 415 ILCS 5/4
(2006).
3.
At all times relevant
to this Stipulation,
Respondent was
authorized to operate
oil
production
and
Class II UIC
(injection) wells
in accordance with permits
issued by the Illinois
Department
of
Natural
Resources (“IDNR”)
pursuant
to
Subsection
6(2) of the Illinois Oil and
Gas Act, 225 ILCS 725/6(2) (2006).
4.
The Defendant owned and
operated a tank battery
on the Herman Hon lease
near Crossville in White County, Illinois,
The tank battery was used
to store and separate
crude
oil and
produced fluids from production
wells on or near the lease.
5.
On
or about November 14, 2005, a siphon line
at
the Respondent’s
tank battery
failed during a
rainstorm, releasing
the
contents of the separator which
were
estimated at
20
barrels of crude oil and 20 barrels of salt water. The tank
battery’s containment
dike
subsequently failed, releasing the produced fluids and the impounded rain water into
a
ditch
which
ultimately discharged into an
unnamed
creek.
6.
The
release was discovered and reported
to
IDNR
at
approximately 8:00
AM on
November 14, 2005.
The
IDNR
visited the site of the release and its aftermath on
November
22, 2005.
At the behest
of
IDNR, the Respondent reported
the
release
to
the Illinois Emergency
Management Agency (“IEMA”) on
November
23, 2005. IDNR notified the Illinois EPA of the
release and
provided
the
information garnered during the November 22, 2005,
site
visit.
7.
The Illinois EPA investigated the release and its consequent pollutional
discharges on
December 1,
2005.
The banks of the unnamed creek were stained
for
approximately one
mile from the point
of
discharge from
the
ditch
to the
confluence of the
creek
with
Elliott Creek.
2
B.
Allegations
of
Non-Compliance
Complainant
contends that the
Respondent has violated
the following provisions
of
the
Act and Board
regulations:
Count
I:
Section 12(d) of
the Act 415
ILCS 5/12(d)
(2006).
Respondent
caused or
allowed the deposit
of
contaminants upon
the land
in
such place
and manner
as to create a water
pollution hazard.
Count II:
Section 12(a)
of
the
Act,
415
ILCS
5/12(a)
(2006).
Respondent caused
or allowed
the discharge
of
crude
oil and salt water into
‘waters”
of the State.
C.
Admission of
Violations
The
Respondent
represents
that it has
entered
into this Stipulation
for the purpose
of
settling and
compromising
disputed
claims without having
to
incur the
expense of contested
litigation. By
entering into
this Stipulation and
complying
with its terms, the Respondent
does
not
affirmatively
admit
the
allegations
of
violation
within the Complaint
and
referenced
within
Section
l.B herein,
and this
Stipulation
shall not be
interpreted
as
including such
admission
D.
Compliance
Activities to Date
The
Respondent has
completed
all required
compliance
activities.
Those
activities
are
as follows:
•
Repairs to
the
containment
dike
•
Deployment
of oil booms
•
Repairs
and
reinforcement
of the
syphon
line
•
Removal of
stained debris for
landfill disposal
•
Construction
of three
underflow
dams for residual
hydrocarbon
collection
•
Washing the creek
of residual
hydrocarbons
•
Landfill
disposal of
residual hydrocarbons
Lime
spread
in
church yard
•
Churchyard
reseeded
to
prevent
soil erosion
3
II. APPLICABILITY
This Stipulation shall
apply
to and be binding
upon the
Parties
to
the
Stipulation, and
any
officer, director, agent, or employee of
the Respondent, as well as
any
successors
or assigns
of
the Respondent. The Respondent
shall not raise as a defense
to
any enforcement
action taken
pursuant
to this
Stipulation
the failure of any of its officers, directors,
agents, employees or
successors or assigns to take such action as shall be required
to comply with the provisions
of
this Stipulation. This Stipulation may be used against the
Respondent in any subsequent
enforcement action or permit proceeding as proof of a
past
adjudication
of violation of the
Act
and the Board Regulations for all violations alleged in the Complaint
in
this
matter, for purposes
of Sections 39 and
42
of the Act, 415 ILCS 5/39 and 42 (2006).
III. IMPACT ON
THE PUBLIC
RESULTING FROM ALLEGED NON-COMPLIANCE
Section
33(c) of the Act, 415 ILCS 5/33(c)(2006), provides as follows:
In making its orders and determinations, the Board shall take into consideration
all
the facts and
circumstances bearing
upon the
reasonableness of the
emissions,
discharges, or deposits involved
including,
but not
limited
to:
1.
the character and
degree of injury
to, or
interference with the protection
of
the health, general welfare and physical property of the people;
2.
the
social
and economic value of the
pollution
source;
3.
the suitability or unsuitability
of
the pollution source to the area in which
it
is located, including the question of priority of location in the
area
involved;
4.
the technical practicability and economic reasonableness of reducing
or
eliminating he emissions, discharges
or
deposits resulting from
such
pollution source; and
5.
any subsequent compliance.
• In response to
these factors, the Parties
to
the Stipulation state
the
following:
1.
Human
health
and the environment were threatened by the Respondent’s
violations.
4
2.
There is
social
and
economic benefit
to the
facility.
3.
Operation of
the
facility
was suitable for the area in which it occurred.
4.
It
is
technically practicable
and economically reasonable
to
maintain the facility
so
as to not allow the discharge of
pollutants to the environment.
5.
Respondent has
subsequently
complied with
the Act and
the Board Regulations.
IV. CONSIDERATION
OF SECTION 42(h) FACTORS
Section 42(h) of
the
Act, 415
ILCS 5/42(h)(2006), provides
as
follows:
In determining
the
appropriate civil
penalty to be imposed under. .
. this
Section,
the Board is authorized
to
consider any matters of
record
in mitigation or
aggravation of penalty, including
but not limited to the following
factors:
1.
the duration and gravity of the violation;
2.
the presence or absence of due diligence on the part of the respondent in
attempting to comply with
requirements
of this Act and
regulations
thereunder or to secure relief therefrom as provided by this
Act;
3.
any economic benefits accrued
by
the respondent because of delay in
compliance with requirements, in which case the
economic benefits
shall
be determined by the lowest cost alternative for
achieving compliance;
4.
the amount of monetary penalty which will serve to deter
further violations
by the
respondent
and to
otherwise
aid in
enhancing voluntary compliance
with this
Act by
the respondent and other persons similarly subject to the
Act;
5.
the number, proximity in time, and gravity of previously
adjudicated
violations of this Act
by
the
respondent;
6.
whether
the
respondent voluntarily self-disclosed, in accordance with
subsection i of this Section, the non-compliance to the
Agency; and
7.
whether the respondent has agreed to undertake a
“supplemental
environmental
project,” which means an environmentally
beneficial
project
that
a
respondent agrees to undertake in settlement of
an enforcement
action brought under this Act, but which the respondent is
not otherwise
legally required
to perform.
In
response to these factors, the
Parties
to the
Stipulation
state as
follows:
Any
release or threatened release of pollutants to a “water” of
the State is
a
5
serious threat to the
public
health and the environment.
2.
Respondent
was
diligent in attempting
to come back into compliance
with the
Act,
Board
regulations
and
applicable
federal
regulations.
3.
An economic benefit calculation
was inappropriate in this matter.
4.
Complainant and the Illinois
EPA have determined,
based upon the specific
facts
of this matter, that a penalty of twelve thousand
dollars ($12,000.00)
will serve to deter further
violations
and
aid
in
future
voluntary
compliance with
the Act and Board regulations.
5.
To
Complainant’s
and the Illinois EPA’s
knowledge, Respondent
has no
previously adjudicated violations of the Act.
6.
The Respondent
reported
the
release
to
IDNR.
7.
The settlement of this matter does not include
a supplemental environmental
project.
V. TERMS OF SETTLEMENT
A.
Penalty Payment
The Respondent
shall pay
a
civil
penalty in the sum of Twelve Thousand Dollars
($12,000.00)
within thirty
(30)
days from the date the Board
adopts and accepts this Stipulation.
B.
Stipulated
Penalties, Interest and Default
1.
If the Respondent fails to make any payment required
by
this
Stipulation
on or
before the date
upon which the payment is due,
the Respondent
shall
be in default
and
the
remaining
unpaid balance of the penalty, plus any accrued interest, shall
be due and owing
immediately.
In the event of default, the Complainant shall be entitled to reasonable
costs of
collection,
including
reasonable attorney’s fees.
2.
Pursuant to Section 42(g) of the Act, interest shall accrue
on any penalty amount
owed
by the
Respondent not
paid within
the time prescribed herein. Interest
on unpaid penalties
6
shall
begin to
accrue from
the date such are due and continue to accrue to the date full
payment
is received. Where partial payment
is made on any penalty amount that is due, such partial
payment shall
be
first applied to any interest
on unpaid penalties then owing.
C.
Payment Procedures
All payments required
by
this
Stipulation
shall
be made by
certified
check or money
order
payable
to
the Illinois EPA for
deposit
into the Environmental
Protection Trust Fund (“EPTF”).
Payments
shall be
sent
by first class mail and delivered to:
Illinois Environmental Protection
Agency
Fiscal Services
1021 North Grand Avenue East
P.O. Box 19276
Springfield, IL 62794-9276
The name, case
number
and the Respondent’s federal tax identification numbershall
appear
on
the face
of
the
certified check or
money
order. A
copy
of
the
certified
check or money order
and
any transmittal letter shall be sent to:
Environmental
Bureau
Illinois Attorney General’s Office
500
South Second Street
Springfield, Illinois 62706
D.
Future Compliance
1.
In
addition
to any
other authorities, the Illinois EPA, its employees
and
representatives, and the Attorney General, her
employees
and
representatives,
shall have
the
right of
entry into and upon
the
Respondent’s facility which is the subject of this Stipulation,
at all
reasonable times for the
purposes of conducting inspections and evaluating compliance
status.
In
conducting such
inspections,
the
Illinois EPA,
its
employees and representatives,
and the
Attorney
General, her employees and representatives, may take photographs, samples, and
collect information, as they deem necessary.
2.
This Stipulation in no way affects the
responsibilities
of the Respondent to
comply
7
with
any
other federal, state or local laws
or regulations, including
but not
limited
to the Act and
the Board
Regulations.
3.
The Respondent shall cease
and desist from future
violations
of the Act and
Board
Regulations
that
were
the subject matter
of the
Complaint.
E.
Release
from
Liability
In consideration
of
the Respondent’s
payment
of
the
$12,000.00
penalty, completion
of
all activities required hereunder, and upon
the
Board’s approval
of this Stipulation, the
Complainant
releases, waives and discharges
the Respondent
from
any further
liability or
penalties for the
violations
of
the
Act and
Board Regulations
that were the
subject matter of
the
Complaint herein.
The release
set
forth
above does not
extend
to any matters
other than those
expressly specified
in Complainant’s filed
Complaint. The
Complainant reserves, and this
Stipulation
is without prejudice
to,
all rights
of the State
of Illinois against
the
Respondent with
respect to
all other matters, including but not limited to, the following:
a.
criminal
liability;
b.
liability for future violation of state, federal, local,
and
common
laws and/or
regulations;
c.
liability for natural resources damage arising out
of
the
alleged
violations; and
d.
liability or claims based on the Respondent’s
failure
to
satisfy the
requirements
of
this
Stipulation.
Nothing in
this Stipulation is intended as a
waiver, discharge, release, or
covenant
not to
sue
for any
claim or cause of action, administrative
or judicial, civil or criminal, past or
future,
in
law
or in
equity, which the State of Illinois or
the Illinois EPA may have against any person, as
defined by
Section
3.315
of the
Act, 415 ILCS 5/3.315, or
entity
other than the
Respondent.
8
F.
Enforcement
and
Modification
of Stipulation
Upon
the entry
of the
Board’s Order
approving
and accepting
this
Stipulation,
that Order
is a
binding
and enforceable
order
of the
Board
and
may be
enforced
as such
through
any
and
all
available
means.
G.
Execution
of
Stipulation
The
undersigned
representatives
for the
Parties
to
the Stipulation
certify
that
they are
fully authorized
by
the
party
whom
they
represent
to
enter into
the terms
and
conditions
of this
Stipulation
and
to
legally
bind
them
to
it.
9
WHEREFORE,
the
parties
to this Stipulation
request that
the
Board adopt and
accept
the
foregoing
Stipulation
and
Proposal
for
Settlement
as
written.
PEOPLE
OF
THE
STATE
OF ILLINOIS,
THE ILLINOIS
ENVIRONMENTAL
PROTECTION
AGENCY
LISA MADIGAN
Attorney
General
State
of Illinois
DOUGLAS
P.
SCOTT,
Director
Illinois
Environmental Protection
Agency
MATTHEW J.
DUNN, Chief
Environmental
Enforcement!
Asbestos
Litigation
Division
BY:______
BY:
ROBERSA.
MESSI A
THOMAS
DAVIS,
Chief
Chief
Legal
Counsel
Environmental
Bureau
Assistant
Attorney
General
DATE:
DATE:_________________
JAMES R.
CANTRELL
\o’\O
Nam
:cJ’mis
7
‘i
Title:______________________
10