FERC approves $10 million Rover Pipeline penalty over Ohio drilling mud

WASHINGTON, Nov. 6 — The U.S. Federal Energy Regulatory Commission (FERC) on Nov. 6 approved a settlement in which Rover Pipeline, LLC and Energy Transfer, LP agreed to pay a $10 million civil penalty to resolve allegations over pipeline drilling under Ohio's Tuscarawas River.

FERC's enforcement staff determined that Rover violated the Natural Gas Act, FERC regulations and the project's certificate order, according to the order in Docket No. IN17-4-000. The staff said the alleged violations included actions by contractors working on Rover's behalf.

The staff said those violations were intentionally including diesel fuel and other toxic substances and unapproved additives in drilling mud, failing to adequately monitor the right-of-way at the site, and improperly disposing of drilling mud contaminated with diesel fuel and hydraulic oil. Rover stipulates to the facts in the agreement but neither admits nor denies the violations.

Members of the drilling crew of subcontractor Pretec Directional Drilling, LLC testified that they added diesel fuel and other unapproved additives to the drilling mud to speed up drilling progress, according to the agreement.

The agreement says that on April 13, 2017, an inspector found a release in a flooded portion of a wetland near the river. Testing found petroleum hydrocarbons consistent with diesel fuel in the drilling mud.

Under the agreement, Rover must pay the penalty to the U.S. Treasury within 20 days of the agreement's effective date. The agreement also says Rover waives rehearing and judicial review of FERC's approval. The order terminates the docket.

FERC issued an Order to Show Cause on Dec. 16, 2021. Rover answered on March 21, 2022.