On Tuesday, Oct. 13 a hearing was held in Casper before the Wyoming Oil and Gas Commission (WOGCC) with Asher Associates Inc. front and center. In previous articles in The Lusk Herald there were allegations made against Asher Associates Inc. concerning issues of the improper venting of Hydrogen Sulfide (H2S) gases.

According to Docket 157-2009, WOGCC was holding a special hearing in regards to the allegations made by private citizens. Asher was to show cause why their operations at Bright and Beaver Hole Fields, in northern Niobrara County, were not in compliance with safety provisions and rules and regulations of sour gas wells. There were also concerns from the Commission as to why there was no response to requests of information about applicable safety factors and/or emergency protection practices from Asher Associates with the operations of their oil wells. Documentation was also to be provided by Asher about venting and flaring practices.

The Commission became involved with their own inquiry after receiving complaints from citizens concerning the issue of alleged H2S venting from wells owned and operated by Asher Associates Inc. Prior to the hearing, letters were read to the Commission from local citizens Dotti Bunn and Sena Pearson about health risks that involved H2S.

WOGCC first called Janie Nelson to the stand. Nelson is a specialist who had encountered many of the interactions concerning the alleged venting of gasses. She was questioned by WOGCC attorney Eric Easton. Easton asked Nelson various questions concerning information about Asher fuel production, safety precautions, etc. The most surprising question was when Nelson was asked about the information on the paper referred to as Exhibit 49, the third page was regarding the H2S levels that were once taken measuring at 35.74 percent and another that had measured at 49.47 percent. Asher attorney Nancy Freudenthal opted not to question Nelson.

The next witness brought to the stand was petroleum engineer, Mark Watson. Watson’s testimony dealt with the request of authorization from WOGCC to approve gas flaring.

Initially, Asher was approved to flare for 120 days, as was shown in evidence. Eventually, Easton showed a document stating that after a period of time, Asher no longer had to apply for authorization to have flaring approved. Easton went on to question Watson about a document that was shown as Exhibit 16, which illustrated the high amounts of H2S being flared on a consistent basis. After questioning Watson, Easton stepped aside, and Freudenthal asked Watson one question. “Was flaring approved by the Commission?” Watson answered, “Yes.”

Easton then questioned Mike Rummel, an inspector, whose job consists of going out to fields and evaluating facilities. Rummel was asked a great deal of questions, many pointing to lack of regulation required of the company.

Easton pointed out Exhibit 19, which was a Bureau of Land Management (BLM) paper showing findings of broken pipe, DVC pipe, unused compressor, oil on the ground, non-functioning sirens, etc. Rummel confirmed the claims. Easton also pointed out a letter of violations sent to Asher on March 17, 2009, which Rummel also verified. He was asked about the levels of H2S in Exhibit 32, which Easton obtained from the Internet.

Rummell said, “It could be enough to knock you out.” Rummel then testified that while working in these areas there were not any measuring systems for poisonous gasses verified. Rummel went on to show that in the past three years, the flame which is used in the flaring has gone from a bright orange flame to a very small flame, burning much less efficiently now, than three years ago. Finally, Rummel answered Easton about the showing of a significant leak, which was not reported to the Commission.

Freudenthal cross-examined, showing Rummel that he was not in the oil field the day of inspection, however he was there the day after, where he found no problems present at the time. Freudenthal also asked him when he referred to being “Enough to knock you out.” “

How high would the number have to be?” she asked.

He answered 60 parts per million, which Freudenthal then showed that the particular readings shown were not in that range. Freudenthal also presented evidence that all of Asher’s employees have had substantial H2S training. Easton then redirected showing that in a hearing in 1996, Asher said that three safety alarms that were present and working. Easton pointed out that very high H2S levels were recorded. Freudenthal had no redirect for Rummel. Rummel was later asked by Barry Williams of the WOGCC of his opinion of the safety of this matter, he replied, “I am not comfortable with it.”

Freudenthal presented the side of her client, her first witness was Raiford Patton, of Asher Associates Inc. Patton explained that when this initially came about, there was a great deal of information to get to Nelson in a short amount of time, so he had requested an extension of time to get the appropriate information to Nelson.

As of March 9, 2009, Patton was under the impression that he had to come before the Commission. Freudenthal then asked Patton what he has done to improve work surroundings. Patton answered that a replacement flare stack was taken to the field recently, but not yet installed, which when installed will burn much more productively than the current flare stack.

Patton also explained that on the dates of July 2, July 9, and July 23, a third party was brought in to take H2S readings, which every time on these three readings showed no H2S present. The only location in these areas where a flare stack is not at, Asher was not required to have one.

Patton was asked if he was ever notified of any oil spills, he answered no. Freudenthal asked Patton, “In your opinion what needs to be done to satisfy the Commission in various areas?”

He answered, “To fix lines I was never made aware of and to use code for gas lines.”

Freudenthal then asked if he thought he could correct these requests within 30 days, and he responded, “yes.” Freudenthal finished questioning Patton, and Easton questioned him. Easton asked him to point out safety measures, such as having no meters on vents and no reports of oil spills, showing lack of safety precautions. Patton agreed that there were no reports of spills filed, however he also said he was not aware of any spills.

Later during the hearing Bruce Williams, a member of WOGCC, said that he felt that at one time when readings were taken of 27 percent and almost 50 percent of H2S, which is very high and cannot be vented, only flared. Williams also commented that he was grateful steps were taken by Asher, but disappointed that no steps were taken until a notice of a hearing came about. Commission member Lynne Boomgaarden said, “It is unusual and uncomfortable for the committee to have to referee a situation like this.”

After a discussion, Williams suggested an order requiring Asher to maintain flares and operating condition, reporting progress and keeping in touch with WOGCC monthly. A fine for $4,500 was given to Asher, the results of a third party analysis is to be reported to WOGCC, and a request to reschedule this for a status report meeting on Jan. 5, 2010. Asher will be required to post the determined bond amount within 30 days of when the amount is determined and requested.

After the decision was reached, Patton was asked of his opinion of the decision reached. He responded “It could have gone better, I guess a good settlement is one where everyone is disappointed.” Patton also commented that “The area is indeed safe now, we have a safety company through there on a weekly basis, and the supervisor, WOGCC member, Tom Doll has been through the field and he deemed there is no health or safety risk to the population.”

Governor Freudenthal, who sits on the Commission, stepped down from the hearing due to a conflict of interest with his wife, Nancy Freudenthal, being the attorney for Asher Associates Inc.



For the complete article see the 10-28-2009 issue.

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