JKLM Energy Withdraws From Controversial Fracking Waste Treatment Project On Allegheny River

Scott Blauvelt, Director of Regulatory Affairs and hydrogeologist for JKLM Energy, explains the release of a plume of pollution from a fracking well pad to the surface and subsurface waters in the “North Hollow” area during a special meeting in Coudersport, Pennsylvania (c. 2015). © Joshua B. Pribanic for Public Herald

BREAKING: This article will be updated as we receive new information. Contact Joshua B. Pribanic and Melissa A. Troutman from Public Herald for further updates or comment.

April 6, 2018   |  Project: Smoking Gun

UPDATE: This article has been updated to include the Seneca Nation’s press conference video about this issue

JKLM Energy, the primary customer for a controversial fracking waste treatment facility slated for the headwater region of the Allegheny River, has announced it will withdraw from the project, adding that “a number of factors” impacted its decision to pull the plug.

Not long after the Coudersport Area Municipal Authority held a public meeting and voted to end its participation with the controversial fracking waste facility proposed by Epiphany Water Solutions. The decision essentially ended a fight that involved threats of lawsuits on media, industry, first nations and citizens; concerns from local, state and federal governments and overwhelming opposition sparked by the Seneca Nation of Indians and an alliance of organizations.

The wastewater treatment facility was a project of Epiphany Allegheny, LLC, which is a part of Epiphany Water Solutions based in Pittsburgh, Pa. Epiphany proposed to build the facility using an “experimental” technology to treat radioactive fracking wastewater and discharge up to 42,000 gallons of treated water to the publicly owned water works, who discharges to the Allegheny River. The project caught the attention of a growing list of concerned organizations and regulatory agencies, including the Seneca Nation of Indians.

President Todd Gates of the Seneca Nation stated “they have zero tolerance for the introduction of contaminants to the river” in a recent press conference.

JKLM Energy is owned by Buffalo Bills, Sabres and Bandits owner Terry Pegula, touted on Wikipedia as a “natural gas tycoon.”

According to the announcement, the company will continue to “responsibly produce natural gas, protect the environment, workers and the community, and benefit the local economy.”

 
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The announcement first appeared on the popular regional syndicate, Solomon’s Words for the Wise.

JKLM’s History in Potter County

JKLM has amassed 62 violations from the Pennsylvania Department of Environmental Protection (PADEP) since it began drilling in Potter County in 2015. The company operates less than 20 well pads in the county and has permits for 60 wells.

In 2016, PADEP levied a $472,317 civil penalty against JKLM Energy for groundwater contamination at a natural gas drilling site in Potter County, home of a Triple Continental Divide. In 2015, the company violated Pennsylvania state law when it injected unapproved chemicals into an uncased well bore and polluted drinking water supplies.

The incident occurred about seven miles from Epiphany’s  proposed wastewater facility and is featured in the investigative documentary, Triple Divide [Redacted], which highlights water impacts related to shale gas fracking within the sensitive headwater region.  

Most recently, JKLM was cited for three “outstanding violations” first noted by PADEP in February 2018 “failure to notify the Department of an accident or other activity…of a toxic substance or another substance which would endanger downstream users of the waters…”
 
Issued on March 8, the violations cite a “failure to properly store transport, process or dispose of a residual waste.”
 
jklm energy violations

A compliance report from the Pennsylvania Department of Environmental Protection shows that JKLM Energy failed to notify the Department about a release of toxic or other type of substance that could endanger those downstream.

Epiphany Water Solutions and JKLM Energy were not available by phone for an official comment.

Epiphany’s Tom Joseph responded to Public Herald in an email that the company will be issuing a formal statement on the following Monday morning. No formal statement was ever submitted.

Pennsylvania is the second largest natural gas producing state in the United States, which is the largest producer of natural gas in the world. The “Smoking Gun” report series digs deep to expose specific stories of DEP conduct. Is your energy coming from the shale fields of Pennsylvania? Stay tuned – Subscribe to Public Herald’s reports.

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