August 4, 2005

On July 22, the Supervisor of Wells issued a Determination and Order to Saba Energy of Texas, Inc. for failing to properly plug and abandon its wells.

The Determination and Order was issued as the result of an Administrative Hearing held on June 9. During the hearing, Department of Environmental Quality staff demonstrated that Saba Energy failed to utilize the Abshire & State Cleon 4-29 Gas Well Site located in Cleon Township, Manistee County, for more than 12 consecutive months. In addition, Saba Energy failed to properly restore the State Charlton 2-6A Gas Well Site located in Charlton Township, Otsego County, and the Leacock Hubbard Underwood Knapp Unit 2 21 Gas Well Site located in Chester Township, Otsego County.

The Determination and Order requires Saba Energy to properly plug and abandon the Abshire & State Cleon 4-29 by November 7, and to properly restore the State Charlton 2-6A and Leacock Hubbard Underwood Knapp Unit 2 21 Gas Well Sites by October 22. Saba Energy was also ordered to pay an administrative penalty of $23,095 by August 22.

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 August 4, 2005 by Pat Watson