April 20, 2005

On April 14, 2005 the Department of Environmental Quality reached an agreement with MILDCO, Inc. to put into effect the requirements set forth in an Order issued by the Supervisor of Wells on September 3, 2004. The Order required MILDCO, Inc. to comply with the provisions of Part 615, Supervisor of Wells, of the Natural Resources and Environmental Protection Act, 1994 PA 451, as amended, and pay a penalty of $10,000.

The DEQ brought forth an administrative action alleging that MILDCO, Inc. had failed to economically produce or properly plug and abandon the Curtis 1-18A well located in Liberty Township, Jackson County. In addition, the DEQ alleged that MILDCO, Inc. had failed to encapsulate a lined drilling mud pit which had remained open for more than four years, in violation of state regulations. The mud pit was used to hold drill cuttings, and associated fluids from the Curtis 1-18A well, which were produced during the drilling of the well. During the past four years, the mud pit liner had torn in several areas which allowed some fluids, including waste oil and chlorides, from surface spills at the Curtis 1-18A well site to leak into the surrounding soils. The DEQ brought the action in order to prevent waste and to respond to a potential threat to the waters of the state.

MILDCO, Inc. filed an appeal to the Supervisor’s Order on November 1, 2004. On December 9, the Supervisor’s Order was upheld by the Director of DEQ, Steven E. Chester. Subsequently, the Michigan Attorney General’s Office negotiated a settlement with MILDCO, Inc. which includes a penalty payment of $10,000; and MILDCO, Inc. will be required to plug and restore the Curtis 1-18A well by September 1, 2005, if the well is not economically producing.

Editor’s note: DEQ news releases are available on the department’s Internet home page at www.michigan.gov/deq.

Revised April 20, 2005 by Pat Watson