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Department of Justice Acting United States Attorney Candace G. Hill Contact: Dawn Masden |
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August 17, 2009
OIL EXECUTIVE FOUND GUILTY OF ENVIRONMENTAL VIOLATIONS
OWENSBORO, KY - Candace G. Hill, Acting United States Attorney for the Western District of Kentucky, announced today that Daniel B. Lewis, age 51, of Uniontown, Kentucky, was found guilty by a federal jury in United States District Court, Owensboro, Kentucky, of conspiracy to violate: 1) The Safe Drinking Water Act, 42 U.S.C. §300h-2; 2) The False Statements Act, 18 U.S.C. §1001; and 3) conspiracy to defraud an Agency of the United States Government, that is, the United States Environmental Protection Agency (“EPA”), 18 U.S.C. §371.
The jury’s verdict of guilty was returned following a 3-day trial before Joseph H. McKinley, Judge, United States District Court.
Lewis, operator of Roseclare Oil Kentucky, operated 39 injection wells near Uniontown, which actively inject brine water at depths of 1,500 to 2,000 feet below the surface to assist in the production of oil. The wells are required to be tested for their mechanical integrity every 5 years with a test which Lewis performed before EPA inspectors. Lewis was convicted of failing to maintain integrity on 11 of the wells which had devices installed upon them to make it appear that the wells had successfully passed the test, when they had not. Lewis also was convicted of defrauding the EPA by certifying that the tests were legitimate and submitting forms to EPA in which he stated the wells had passed the test when they had not.
Testimony at trial revealed that Roseclare officials had started placing the fake devices on the wells in 1990. As wells developed leaks, Lewis and others, placed the devices on the wells causing them to never need repairs. Brine from cracked or broken well casings can pollute the ground water sources. Trial testimony also revealed that brine can contain benzene and other harmful contaminants. Since the EPA investigation of the wells began in December of 2007, Roseclare has spent over $109,000 to repair the wells.
“The State of Kentucky and EPA need accurate information about the soundness of underground injection wells in order to ensure that they do not present a risk to groundwater or the public,” said Maureen O’Mara, Special Agent-in-Charge of EPA’s criminal enforcement office in Atlanta. “This conviction shows that the public will not tolerate those who undermine those efforts by failing to perform required safety tests and they trying to cover it up.”
The maximum potential penalties are 5 years’ imprisonment, a $250,000 fine, and supervised release for a period of 3 years.
The case was prosecuted by Assistant United States Attorneys Randy Ream and Joshua Judd, and was investigated by the United States Environmental Protection Agency Criminal Investigation Division.
Lewis is scheduled to be sentenced before Judge McKinley on November 12, 2009, at 9:00 a.m., in Owensboro, Kentucky.
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