eqt notice of appeal contesting dep order finding greene county spill led to water contamination of...

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iJIi E rg s r NOTICE OF APPEAL FORM APPEAL INFORMATION 1. Name, address, telephone number, and email address (if available) of Appellant: EQT Production Company 625 Liberty Avenue, Suite 1700 Pittsburgh, PA 15222 412553-5700 2. Describe the subject of your appeal: (a) What action of the Department do you seek review? (NOTE: If you received written notification of the action, you must attach a copy of the action to this form) Order dated September 21, 2015, District Oil and Gas Operations, attached as Exhibit A (b) Which Department official took the action? Eric A. Gustafson, District Manager, District Oil and Gas Operations (c) What is the location of the operation or activity which is the subject of the Department's action (municipality, county)? Morgan Township, Greene County, Pennsylvania (d) How, and on what date, did you receive notice of the Department's action? Rick Watling, Assistant Counsel, DEP, mailed a copy of the Order to EQT counsel on September 22, 2015. No hard copy of the Order was received directly by EQT. 3. Describe your objections to the Departments action in separate, numbered paragraphs. (NOTE: The objections may be factual or legal and must be specific. Ifyou fail to state an objection here, you may be barred from raising U later in your appeal. Attach additional sheets, if necessary,) Please see Exhibit B attached. 4. Specify any related appeal(s) now pending before the Board. If you are aware of any such appeal(s) provide that information. None. 10/12/2015

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Page 1: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

iJIi E rg s r

NOTICE OF APPEAL FORM APPEAL INFORMATION

1. Name, address, telephone number, and email address (if available) of Appellant: EQT Production Company 625 Liberty Avenue, Suite 1700 Pittsburgh, PA 15222 412553-5700

2. Describe the subject of your appeal: (a) What action of the Department do you seek review? (NOTE: If you received written notification of the action, you must attach a copy of the action to this form)

Order dated September 21, 2015, District Oil and Gas Operations, attached as Exhibit A

(b) Which Department official took the action?

Eric A. Gustafson, District Manager, District Oil and Gas Operations

(c) What is the location of the operation or activity which is the subject of the Department's action (municipality, county)?

Morgan Township, Greene County, Pennsylvania

(d) How, and on what date, did you receive notice of the Department's action?

Rick Watling, Assistant Counsel, DEP, mailed a copy of the Order to EQT counsel on September 22, 2015. No hard copy of the Order was received directly by EQT.

3. Describe your objections to the Departments action in separate, numbered paragraphs. (NOTE: The objections may be factual or legal and must be specific. Ifyou fail to state an objection here, you may be barred from raising U later in your appeal. Attach additional sheets, if necessary,)

Please see Exhibit B attached.

4. Specify any related appeal(s) now pending before the Board. If you are aware of any such appeal(s) provide that information.

None.

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Page 2: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

NOTICE OF APPEAL FORM PROOF OF SERVICE

In addition to filing this form with the Environmental Hearing Board, the Appellant must certify, by indicating below, how the Notice of Appeal was served on the Department under numbers (1) and (2) below, and where applicable, upon other interested parties indicated by numbers (3) and (4). Failure to do so may result in dismissal of your appeal. Please check the box indicating the method by which you served the following:

(1) Department of Environmental Protection Office of Chief Counsel Attn: Glenda Davidson

th FIr. Rachel Carson State Office Building 400 Market Street, P.O. Box 8464 Harrisburg, PA 171058464

AND

(2) The officer of the Department who took the action being appealed.

Lj first class mail, postage via pre-paid

n overnight delivery iii personal delivery X electronic filing

i first class mail, postage via pre-paid

n overnight delivery • personal delivery • electronic filing

Note to Attorneys who electronically file a Notice of Appeal: A copy is automatically served on the Department's Office of Chief Counsel and the officer who took the action being appealed. There is no need for you to independently serve the Department.

Additionally, if your appeal is from the Department of Environmental Protection's issuance of a permit, license, approval, or certification to another person, you must serve the following, as applicable:

(3) The entity to whom the permit, o first class mail, postage license, approval, or via pre-paid certification was issued. o overnight delivery

o personal delivery

WE

(4) Where applicable, any of the following:

• Any affected municipality, its municipal authority, and the proponent of the decision, where applicable, in appeals involving a decision under Sections 5 or 7 of the Sewage Facilities Act, 35 P.S. §§ 750.5, 750.7;

• The mining company in appeals involving a claim of subsidence damage or water loss under the Bituminous Mine Subsidence and Land Conservation Act, 52 P.S. § 1406.1 etseq.;

• The well operttor in appeals involving a claim of pollution or diminution of a water supply under Section 208 of the Oil and Gas Act, 58 P.S. § 601.208;

• The owner or operator of a storage tank in appeals involving a claim of an affected water supply under Section 1303 of the Storage Tank and Spill Prevention Act, 35 P.S. § 6021.1303.

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Page 3: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

NOTICE OF APPEAL FORM SIGNATURE PAGE

By filing this Notice of Appeal with the Environmental Hearing Board, I hereby certify that the information submitted is true and correct to the best of my information and belief. Additionally, I certify that a copy of this Notice of Appeal was served upon each of the individuals indicated on Page 2 of this form on the following date: October 12, 2015

1st Jean M. Mosites

Signature of Appellant or Appellant's Counsel

Date: October 12, 2015

If you have authorized counsel to represent you, please supply the following information (Corporations must be represented by counsel):

Jean M. Mosites

Attorney Name (Type or Print)

Babst, Calland, Clements and Zomnir, P.C.

Two Gateway Center, 6th Floor

Pittsburgh, PA 15222

Address

Telephone No.: 4123945400

Email: jmositesbabstcal1and.com

TDD users please contact the Pennsylvania Relay Service at 1-800-654-5984. If you require an accommodation or this information in an alternative form, please contact the Secretary to the Board at 717-787-3483.

Please see the attached Filing Instructions for additional information and requirements regarding the filing of this form.

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Page 4: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

EXHIBIT A

COMMONWEALTH OF PENNSYLVANIA DEPARTMENT OF ENVONM1!NTAL PROTECTION

IN THE MATTER OF:

EQT Production Company Oil and Gas Act 225 North Shore Drive Affected Water Supply Pittsburgh, PA 15212-5860

Morgan Township, Greene County

ORDER $7-

NOW, this day of September, 2015, the Commonwealth of Pennsylvania, Department of

Environmental Protection ("Department") has made and determined the following FINDINGS and

enters the following ORDER:

A. The Department is the agency with the duty and authority to implement, administer,

and enforce the Oil and Gas Act, Act of February 14, 2012, P.L. 87, No, 13, 58 Pa. C. S. § § 3201-

3274 ('2012 Oil and Gas Act"); the Oil and Gas Act, Act of December 19, 1984, P.L. 1140, as

amended, 58 P.S. § § 601.101-601.605 ("1984 Oil and Gas Act"); Section 1917-A of the

Administrative Code of 1929, Act of April 9, 1929, P.L. 177, as amended, 71 P.S. § 510-17

("Administrative Code"); and, the rules and regulations promulgated thereunder,

EQT Production Company

B. EQT Production Company ("EQT") is a Delaware limited liability company engaged

in various oil and gas well activities in Pennsylvania. EQT' s business address is 625 Liberty

Avenue, Suite 1700, Pittsburgh, PA 15222.

C. EQT is the "well operator" as that term is defined in Section 3203 of the 2012 Oil and

Gas Act, 58 Pa. C.S. § 3203, of the Gas Wells, as defined herein.

The Gas Well Site

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Page 5: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

I

I), The Department issued Well Permit Ni.nnbers: 37-059-25376-00; 37-059-25282-00;

37-059-25283-00 authorizing EQT to drill and operate the Hildebrand gas wells ("Gas Wells") in

Morgan Township, Greene County. The Gas Wells are unconventional wells as that term is defined

in Section 3203 of the 2012 Oil and Gas Act, 58 Pa. C.S. § 3203. The permitted and spud dates of

the wells are as follows:

Well Number Date Well Permitted Spud Date Completion Date

37-059-25376-00 12/14/2009 0112612010 02/16/2010

37-059-25282-00 08106/2009 11/23/2009 12/20/2009

37-059-25283-00 08/0712009 - 12/26/2009 05/15/2010

E. On or before May 21, 2010, drilling production fluids overflowed the production pit

at the Gas Well's pad ("Gas Well Pad") and escaped the work site and spilled down the Gas Well

Pad's embankment ("Release"), reaching a developed spring (defined as the "Water Supply" in

Paragraph F, below).

Water Supply

F. A natural spring ("spring") provides water for agricultural purposes, including

husbandry, at 220 Dowser Road, Clarksville, Greene County, Pennsylvania. The spring is a "water

supply" as that term is define'd by Section 78.1 of the rules and regulations, 25 Pa. Code § 78.1. The

spring ("Water Supply") is 200 feet from the Gas Well Pad.

Water Supply Pollution Investigation

G. On April 25, 2012, Jon and Ellen Hildebrand, the owners of the Water Supply

("Water Supply Users"), notified the Department of concerns regarding the Water Supply.

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Page 6: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

I

II. BQT conducted a pre-drilling survey of the Water Supply on November 3, 2009

("Pre-Drill Sample").

L EQT sampled the Water Supply on multiple dates including but not limited to

November 3, 2009, May 25, 2010, July 1,2010, July 29, 2010, August 30, 2010, September 28,

2010, February 3, 2011, March 17, 2011, March 29, 2011,April 1, 2011, April 26, 2011, and March

26, 2014,

J. The Department investigated the April 25, 2012, complaint, collecting samples from

the Water Supply on March 14, 2013, and November 5, 2014.

K. Based on information obtained as of the date of this Order, the Water Supply is

polluted and no longer of adequate quality for the purposes served by the Water Supply.

Specifical1y, the levels in the post-drilling/completion samples of the Water Supply ("Post-Drill

Sample(s)") for the following oil and gas activity related contan]inants are elevated above the levels

in the Pro-Drill Sample.

Contaminant Unit PA Pre-Drill EQT EQT DEP DEl? or Parameter Std. Sample Sample Sample Sample Sample

Results Results Results Results Results

111312009 5/2/2010 7/1/2010 3114/2013 11/5/2014

Chlorides 250 5.7 735 486.7 - 120.6 125 Total mg/I 500 327 1690 1311 550 644 Dissolved Solids Sulfate mg/l 250 _ 1 66 78 76 55.8 75.6 pH S,u. 6.5-8.5 6.9 7.48 7.57 7.7 8.2 Barium mg/l 2 0.076 0.288 0.171 0.086 0.097 Magnesium j_ ______ 12.723 43.023 1 32.663 - 16.1 18.3

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Page 7: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

EQT is Responsible for the Pollution of the Water Sup ply

L. As a matter of law, EQT is presumed to be responsible for the pollution of the Water

Supply under Section 208 of the 1984 Oil and Gas Act, 58 P.S. § 601.208(e), because the Water

Supply is located within 1,000 feet of the Gas Wells, and the pollution occurred within six months

after completion of drilling (or alteration of) the Gas Wells, as set forth in Paragraph D.

Enforcement of Section 208 of the 1984 Oil and Gas Act, 58 P.S. § 601.208, is continued by, and

also meets the presumption set forth in, Section 3218 of the 2012 Oil and Gas Act, 58 Pa. C.S. §

3218.

M. In addition to being legally presumed responsible for the pollution of the Water

Supply, BQT is causally responsible for the pollution of the Water Supply. The Release entered the

Water Supply, causing the pollution. The pollution is evinced by levels of the gas-well-related

contaminants and parameters in the Post-Drill Samples that are above the levels in the Pre-Drill

Survey, as set forth in Paragraph K. Because EQT caused the pollution, EQT is responsible for the

restoration or replacement of the Water Supply pursuant to Section 3218(a) of the 2012 Oil and Gas

Act, 58 Pa. C.S. § 3218(a), as well as Sectiou208(a) of the 1984 Oil and Gas Act, 58 P.S. §

601,208(a).

N. Section 321 8(a) of the 2012 Oil and Gas Act, 58 Pa. C.S. § 3218(a), and 25 Pa. Code

§ 78.51 (d)(1), set forth the criteria for adequate reliability, cost, maintenance, control, quality, and

quantity of the restored or replaced water supply.

0. On March 2 2015, the Department sent the Water Supply Users a letter explaining

that EQT is responsible for the pollution of the Water Supply. EQT was sent a copy of that letter.

P. As of the date of this Order, EQT has not restored or replaced the Water Supply, or

proven that it did not pollute the Water Supply, or rebutted the presumption of responsibility for

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- -I

pollution, in violation of Section 208 of the 1984 011 and Gas Act, 58 P.S § 601.208, as continued

by Section 3218 of the 2012011 and Gas Act, 58 Pa. C.S. § 3218, and 25 Pa. Code § 78.51(a).

Temporary Water

Q. Section 321 8(e.1) of the 2012 Oil and Gas Act, 58 Pa. CS. § 3218(c.1), -requires that

if water supply users are without a readily available alternate source of water, and a rebuttable

presumption applies for the pollution of the water supply, the operator shall provide a temporary

water supply of adequate quantity and quality for the purposes served by the supply.

R. As of the date of this Order, JQT is not providing a temporary water supply sufficient

for the uses served by the Water Supply in violation of Section 3218(c.1) of the 2012 Oil and Gas

Act, 58 Pa, C. S. § 3218(c.1).

EQT's Failure to Provide Temporary Water and to Restore or Replace the Water Supply

S. EQT's failure to provide temporary water or to restore or replace the affected Water

Supply with an alternate source of water adequate for the purposes served by the Water Supply

constitutes a public nuisance and unlawful conduct pursuant to Sections 502 and 509 of the 1984 Oil

and Gas Act, 58 P.S. §§ 601.502, 601.509, as continued by Sections 3252 and 3259(2) of the 2012

Oil and Gas Act, 58 Pa. C.S. §§ 3252 and 3259(2).

[*111 11th

NOW, THEREFORE, pursuant to Sections 3218(b) and 3253 of the 2012 Oil and Gas Act,

58 Pa. C.S. §§ 3218(b) and 3253, 25 Pa. Code § 78.51(c), and Section 1917-A of the Administrative

Code, 71 P.S. § 510-17, the Department hereby ORDERS that:

1. Restore or Replace the Water Sup -ply.

a. Temiorary Water Sunh, If the Water Supply Users accept temporary water,

then within five business days of the notice of the Water Supply Users' acceptance, EQT shall

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Page 9: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

provide the Water Supply Users with a temporary water supply of adequate and reliable quantity and

quality for the purposes served by the Water Supply. EQT shall continue to provide temporary

water until the Department notifies EQT, in writing, that the requirements of this Order have been

satisfied. If the Water Supply Users refuse temporary water, EQT shall immediately provide written

documentation of that refusal to the Department.

b. Restoration/Replacement Plan. Within thirty (30) days of the date of this

Order, BQT shall submit to the Department, in writing, a plan to permanently restore or replace the

Water Supply ("Restoration/Replacement Plan's) that, at a minimum, shall identify the:

i. proposed corrective actions (e.g, treatment, drill new water supply well, connect to a public water supply, and/or other corrective actions) to permanently restore or replace the Water Supply in compliance with Section 3218(a) of the 2012 Oil and Gas Act, 58 Pa. C.S. § 3218(a), and 25 Pa. Code § 78.51(d);

ii. proposed schedule to implement the corrective actions so that the Water Supply is restored or replaced within forty-five (45) days of receipt of the Department's written approval of the Restoration/Replacement Plan or of the modified Restoration/Replacement Plan;

iii. the independent laboratory, certified by the Department, that EQT will use to analyze samples from the restored or replaced Water Supply;

iv. proposed or executed agreements/contracts between EQT and the Water Supply Users to provide for all plumbing, conveyance, pumping, or auxiliary facilities necessary for the use of the permanently restored or replaced Water Supply;

V. proposed or executed contracts/agreements between EQT and the Water Supply Users documenting bow EQT will compensate on a permanent basis for any increased operating and maintenance costs for the replaced or restored Water Supply; and

vL plan for confirmatory samples of the restored and/or replaced Water Supply after EQT asserts that it has permanently restored or replaced the Water Supply, or after EQT asserts that the Water Supply is no longer affected. Such samples will be used to determine whether the Water Supply meets the standards set forth in Section 3218(a) of the

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Page 10: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

2012 Oil and Gas Act, 58 Pa. C.S. § 3218(a), and 25 Pa, Code § 78.51 (ci). The confirmatory sampling plan should provide for: split samples with the Department; that sampling would only take place Monday through Thursday during Department working hours; and should specify that EQT will notify the Department at least three (3) working days before any scheduled sampling of the Water Supply.

2. Submission of Documents.

a, With regard to any document that EQT submits to the Department pursuant to

Paragraphl.b., above, BQT shall submit to the Department, in writing, additional information and/or

correct deficiencies within ten (10) days of receipt of the Department's written request for additional

information and/or notice of deficiencies.

b. Upon receipt of a complete document in compliance with the requirements of

Pa.ragraphl a., above, or a revised document that addresses the Department's request(s) under

Paragraph 2.a., above, the Department will approve or modify and approve the document in writing.

c, Upon receipt by EQT of the Department's written approval under this Order

of a document or modified document, the approved document shall be incorporated herein and

enforceable hereunder.

3. Implementation of Approved Plan Ds.

a. EQT shall implement the Department-approved Restoration/Replacement Plan

in accordance with the approved schedule therein.

b. In all eases, EQT shall complete the approved corrective actions to

permanently restore or replace the Water Supply within forty-five (45) days of receipt of the

Department's written approval of the Restoration/Replacement Plan.

4. In complying with this Order, EQT shall not cause pollution of any waters of the

Commonwealth and shall not affect by pollution or diminution any other water supply.

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Page 11: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

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5. All correspondence with the Department concerning this Order shall be addressed as

follows:

Jeffrey Dewey; Compliance Specialist Oil and Gas Operations Peimsylvania Department of Environmental Protection 400 Waterfront Drive Pittsburgh, PA 15222-4745

(Continued on the following page)

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Page 12: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

H

Any person aggrieved by this action may appeal, pursuant to Section 4 of the Environmental

Hearing Board Act, 35 P.S. §7514, and the Administrative Agency Law, 2 Pa. C.S.A, Chapter 5A, to

the Environmental Hearing Board, Second Floor, Rachel Carson State Office Building, 400 Market

Street, P.O. Box 8457, Harrisburg, Pennsylvania 17105-8457,717-787-3483. TDD users may

contact the Board through the Pennsylvania Relay Service, 800-654-5984. Appeals must be filed

with the Environmental Heating Board within 30 days of receipt of written notice of this action

unless the appropriate statute provides a different time period.. Copies of the appeal form and the

Board's rules of practice and procedure maybe obtained from the Board. The appeal form and the

Board's rules of practice and procedure are also available in braille or on audiotape from the

Secretary to the Board at 717-787-3483. This Paragraph does not, in and of itself, create any right of

appeal beyond that permitted by applicable statutes and decisional law.

IF YOU WANT TO CHALLENGE TIES ACTION, YOUR APPEAL MUST REACH THE

BOARD WITHIN 30 DAYS. YOU DO NOT NSF]) A LAWYER TO PILE AN APPEAL WITH

THE BOARD, IMPORTANT LEGAL RIGHTS ARE AT STAKE, HOWEVER, SO YOU

SHOULD SHOW THIS DOCUMENT TO A LAWYER AT ONCE. IF YOU CANNOT AFFORD

A LAWYER, YOU MAY QUALIFY FOR FREE PRO BONO REPRESENTATION. CALL ThE

SECRETARY TO THE BOARD (717-787-3483) FORMORE INFORMATION.

FOR THE COMMONWEALTH OF PENNSYLVANIA, I)EPJ,*TME J:F E ONMENTAL PROTECTION:

Brie A. Gustafson District Manager District Oil and Gas Operations

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Page 13: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

Exhibit B to Notice of Appeal

Objections

Appellant EQT Production Company appeals from the Department's Order dated September 21, 2015 pursuant to Section 4 of the Environmental Hearing Board Act, 35 P.S. § 7514, the Administrative Agency Law, 2 Pa. C.S.A. Chapter 5A, for the following reasons:

1. The Order purports to create obligations that are excessive, unreasonable, unlawful, and beyond the Department's statutory authority.

2. The Department did not properly obtain or consider facts necessary for its determination regarding the quality of the water supply for the purposes served prior to issuance of the Order. Had the Department properly considered these facts, it would not have issued the Order because there is no restoration or replacement necessary for this water supply, which is not used for human consumption, and which is adequate for the purposes served.

3. The Order alleges that: 1) on or before May 21 2010, drilling production fluids overflowed the production pit at EQT's gas well pad in Morgan Township, Greene County, Pennsylvania, and reached a spring that was being used for agricultural purposes (Para. E); and 2) that owners of the water supply notified the Department of "concerns" regarding the water supply in April 2012. (Para. G). The Order, however, fails to describe if the "concerns" expressed in 2012 were in any way related to the incident described as having occurred in 2010. Without a factual foundation regarding any concerns with or impacts to the water supply, which is not used for human consumption, the Order is ambiguous, unreasonable, and fails to effectively communicate what action is required for compliance with the Order.

4. The Order alleges that EQT and the Department conducted sampling of the water supply on multiple dates, but selectively included limited sampling results for a limited number of dates, the most recent of which was November 15, 2014. (Para. H-K). The Order was issued over ten months following the most recent sample result listed. Without current information about the quality of the water supply, the Department failed to factually substantiate its allegation that the water supply, as of the date of the Order, was "polluted and no longer of adequate quality for the purposes served by the water supply." (Para. K.)

5. The Order states that the water supply is used for agricultural purposes, and further indicates that the Department has determined that the water supply is of inadequate quality for such purposes. (Para. F and K). The Order, however, fails to provide any factual basis for such a determination because it has not provided or described its water standards for agricultural purposes.

6. The Order does not explain the relevance of the table of sampling results provided in Paragraph K and does not provide its basis to assert that the water quality in any sample taken was of inadequate quality for agricultural purposes.

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Page 14: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

7. The Order erroneously concludes that EQT is presumed to be responsible for "the pollution" of the water supply under the 1984 Oil and Gas Act. (Para. L.) The 1984 Oil and Gas Act, applicable in 2010, presumed liability when impacts occurred within 1000 feet of a gas well and within six months after completion of drilling or alteration of a well. Section 208 of the 1984 Pennsylvania Oil and Gas Act, 58 P.S. §§ 101-607. The presumption allows the Department to conclude that impacts evidenced within six months and 1000 feet were caused by the activity. Even assuming arguendo that there was pollution in the water supply in 2014 or 2015, the presumption is not applicable and does not allow the Department to conclude that impacts to a water supply over five years later are attributable to the prior activities. The Department bears, and has failed to meet, the burden to show that impacts at the time of the Order, if any, were caused by EQT activities that occurred in 2010 or at any other time.

8. The Order unlawfully and erroneously alleges that "Enforcement of Section 208 of the 1984 Oil and Gas Act.. . also meets the presumption set forth in, Section 3218 of the 2012 Oil and Gas Act." (Para. L). Section 3218 of the 2012 Oil and Gas Act, 58 Pa. C.S. §§ 2301-3504. The Department cannot apply two different statutory schemes with two different presumptions of liability to one set of facts, where the activities occurred at one point in time. If the alleged activities occurred prior to the effective date of the 2012 Act, the only presumption potentially applicable is from the 1984 Act.

9. The Order improperly alleges that EQT is "causally responsible for the pollution" of the water supply, but the Order fails to demonstrate causation between the described activities that took place in 2010, over five years before the Order was issued, and present pollution, if any. (Para. M).

10. The use of the term "the pollution" in paragraph M without further description is misleading because it implies that "the pollution" is of a consistent nature and has been static over time. Unlike a piece of equipment, that may be damaged by an accident or incident and remain in the identical damaged condition over time, this water supply is spring, which, like all surface waters, is subject to significant variation and numerous influences over time that affect its quality and condition. "The pollution" that may have existed in 2010 is not the same as "the pollution," if any, that existed at the time of the Order. Stating that EQT is causally responsible for "the pollution" therefore, is inherently ambiguous and ultimately meaningless as a basis to impose an obligation to replace or restore this particular water supply, especially where the supply is adequate for the purposes served.

11. The Order erroneously alleges that EQT is responsible for restoration or replacement of the water supply under both the 2012 and 1984 Acts. (Para. M.). Under either Act, the obligation to replace or restore water supplies used for purposes other than human consumption is only triggered if and when the water supplies are not adequate for the purposes served by the water supplies. Among other failings, the Order fails to demonstrate that the water supply is not adequate for the agricultural purposes served.

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Page 15: EQT Notice of Appeal Contesting DEP Order Finding Greene County Spill Led to Water Contamination of Spring

12. The Order erroneously alleges that the criteria for adequate reliability, cost, maintenance, control, "quality and quantity" of a restored or replaced water supply are set forth in 25 Pa. Code § 78.51(d)(1). (Para. N). While that section maybe applicable with respect to reliability, cost, maintenance and control of a restored or replaced water supply, Section 78.51(e) provides the criteria for water supplies used for purposes other than human consumption, as is the water supply here.

13. The Order erroneously alleges that the Department sent a letter to the water supply owners "explaining that EQT is responsible for the pollution" of the water supply. (Para. 0). Upon information and belief, EQT was not named as a responsible party in the March 2, 2015 letter that the Department sent to the water supply owners.

14. The Order improperly alleges that EQT has not restored the water supply, proven that it did not pollute the water supply, or rebutted the presumption of responsibility for alleged pollution, further alleging violation of the 1984 and 2012 Acts, as well as 25 Pa. Code §78.51(a). (Para. P). These allegations are not supported by facts in the Order regarding the quality of the water supply or any need to restore or replace the water supply as of the date of the Order, and erroneously attribute legal liabilities to EQT that are not substantiated.

15. The Order erroneously implies that EQT has an obligation to provide temporary water for the purposes served by the water supply. (Para. R). In addition to its failure to substantiate the legal obligation for EQT to provide such a temporary water supply, the Order provides no factual foundation upon which one can conclude that there is no "readily available alternate source of water" for the agricultural purposes served. The Order does not include any facts regarding the presence or absence of a readily available alternate source of water.

16. The Order erroneously alleges that EQT's "failure" to provide temporary water or restore the water supply for the purposes served constitutes a public nuisance and unlawful conduct. The Order does not include the factual or legal basis to demonstrate that EQT had such obligations or describe how EQT failed to meet such obligations.

17. Appellant further objects to the Order, paragraphs 1 through 3, issued pursuant to the 2012 Act and 25 Pa. Code Section 78.51(c), for the following nonexclusive reasons:

a. Facts alleged in the Order are inaccurate and/or inadequate to support a violation of law.

b. Legal conclusions in the Order are erroneous and/or do not support a violation of law.

c. The violations alleged in the Order are incorrect as a matter of law and/or are factually unsupported.

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d. Obligations created by the Order are ambiguous, inappropriate, unreasonable and impractical because, among other reasons, there is a readily available alternate water source, and the water supply itself is of adequate quality for the purposes served.

e. The deadlines for compliance are unreasonable and impractical.

18. The Department's action in issuing the Order was otherwise arbitrary and capricious, an abuse of discretion and unlawful.

19. Appellant reserves the right to amend or modify this Notice of Appeal as may be necessary based on the discovery of additional facts or information.

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