DOJ SAYS TRANS ENERGY INC. WILL RESTORE STREAMS, WETLANDS DAMAGED BY NATURAL GAS EXTRACTION

FROM:  U.S. JUSTICE DEPARTMENT 

Tuesday, September 2, 2014

Trans Energy Inc. to Restore Streams and Wetland Damaged by Natural Gas Extraction Activities in West Virginia

Company Will Also Pay $3 Million Civil Penalty to Resolve Alleged Clean Water Act Violations

The Department of Justice, the U.S. Environmental Protection Agency (EPA) and the West Virginia Department of Environmental Protection (WVDEP) today announced a settlement with   Trans Energy Inc., requiring the oil and gas company to restore portions of streams and wetlands at 15 sites in West Virginia that were polluted by the company’s unauthorized discharge of dredge or fill material.   Trans Energy will pay a penalty of $3 million to be divided equally between the federal government and the WVDEP.   The Clean Water Act requires a company to obtain a permit from EPA and the U.S. Army Corps of Engineers prior to discharging dredge or fill material into wetlands, rivers, streams and other waters of the United States.

“Today’s agreement requires that Trans Energy take important steps to comply with state and federal laws that are critical to protecting our nation’s waters, wetlands and streams,” said Sam Hirsch, Acting Assistant Attorney General of the Justice Department’s Environment and Natural Resources Division.  “We will continue to ensure that the development of our nation’s domestic energy resources, including through the use of hydraulic fracturing techniques, complies with the Clean Water Act and other applicable federal laws.”

“As part of our commitment to safe development of domestic energy supplies, EPA is working to protect wetlands and local water supplies on which communities depend,” said Cynthia Giles, Assistant Administrator of EPA’s Office of Enforcement and Compliance Assurance.   “By enforcing environmental laws, we’re helping to ensure a level playing field for responsible businesses."

In addition to the penalty, the company will reconstruct impacted aquatic resources or otherwise address impacts at each of the 15 sites, provide appropriate compensatory mitigation for impacts to streams and wetlands, and implement a comprehensive compliance program to ensure future compliance with Section 404 of the Clean Water Act and applicable state law.   Among other requirements, the company will work to ensure that all aquatic resources are identified prior to starting work on any future projects in West Virginia, and that appropriate consideration is given at the design stage to avoid and minimize impacts to aquatic resources.   It is estimated that Trans Energy will spend more than $13 million to complete the restoration and mitigation work required by the consent decree.

The federal government and the WVDEP allege that the company impounded streams and discharged sand, dirt, rocks and other materials into streams and wetlands without a federal permit in order to construct well pads, impoundments, road crossings and other facilities related to natural gas extraction.   The government alleges that the violations impacted approximately 13,000 linear feet of stream and more than an acre of wetlands.

Filling wetlands illegally and damming streams can result in serious environmental consequences.   Streams, rivers and wetlands benefit the environment by reducing flood risks, filtering pollutants, recharging groundwater and drinking water supplies, and providing food and habitat for aquatic species.

EPA discovered the violations in 2011 and 2012 through information provided by WVDEP and the public, and through routine field inspections.   In summer 2014, the company conducted an internal audit and ultimately disclosed to EPA alleged violations at eight additional locations, which are also being resolved through this Consent Decree.

The settlement also resolves alleged violations of state law brought by the WVDEP.

EPA CRIMINAL ENFORCEMENT: PROTECTING PEOPLE AND THE ENVIRONMENT

FTC APPROVES FINAL ORDER REGARDING DECEPTIVE, UNFAIR SECURITY PRACTICES ALLEGATIONS OF GMR TRANSPORTATION SERVICES

FROM:  U.S. FEDERAL TRADE COMMISSION 

FTC Approves Final Order in Case Against GMR Transcription Services
Following a public comment period, the Federal Trade Commission has approved a final order resolving FTC allegations that GMR Transcription Services, Inc., engaged in deceptive and unfair information security practices that exposed the personal information of thousands of consumers online, in some instances including consumers’ medical histories and examination notes. The settlement was first announced by the Commission in January.

In its complaint, the agency alleged that GMR’s data security practices were inadequate and resulted in transcriptions of audio files provided by GMR’s customers being indexed by a major search engine and made publicly available to anyone using the search engine.

Under the settlement, GMR and its owners are prohibited from misrepresenting the extent to which they maintain the privacy and security of consumers’ personal information.  They also must establish a comprehensive information security program that will protect consumers’ sensitive personal information, including information the company provided to independent service providers.  In addition, the company must have the program evaluated both initially and every two years by a certified third party. The settlement will be in force for the next 20 years.

The Commission vote approving the final order and letters to members of the public who commented on it was 5-0. (FTC File No. 122-3095, the staff contacts in the Bureau of Consumer Protection are Alain Sheer,