July 27, 2005

The Supervisor of Wells recently issued two administrative orders to Michigan companies for failing to properly plug and abandon wells.

BHR Petroleum Inc. was ordered to plug its well located in Lyndon Township, Washtenaw County, and Blackstar Energy to plug its well located in White Oak Township, Ingham County. Both were issued a Determination and Order as the result of an Administrative Hearing held on March 24. During the hearing, DEQ staff demonstrated that both companies failed to utilize their wells for their intended purpose for a period of at least 12 months. The Determination and Order requires Blackstar Energy to properly plug and abandon their well, and BHR Petroleum Inc. to properly plug and abandon each of their three wells, by October 23, 2005. BHR Petroleum, Inc. was also ordered to pay an administrative penalty of $21,000, while Blackstar Energy was ordered to pay $7,000.

Michigan law requires that any well not being used for its intended purpose be properly plugged and abandoned to ensure the surrounding environment is not put at risk.

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

“Protecting Michigan’s Environment, Ensuring Michigan’s Future”

Revised July 27, 2005 by Alice Stimpson acting for Pat Watson