Daniel Lewis, Conspiracy, Kentucky 2009

Frankfort, KY – Daniel Lewis, operator of Roseclare Oil Kentucky, has been sentenced following a conviction for defrauding the federal government and violating environmental regulations. The case, brought to light through an EPA criminal enforcement action, reveals a deliberate scheme to falsify well integrity tests and conceal potential environmental hazards.

Lewis was sentenced on November 18, 2009, to a $5,000 fine and a three-year term of probation after pleading guilty to one count of conspiracy, a violation of Title 18 U.S. Criminal Code, section 371. The charges stemmed from evidence that Roseclare Oil systematically rigged mechanical integrity tests on 11 of its 39 injection wells located throughout Kentucky. These wells are crucial for oil production, injecting brine water deep underground – between 1,500 and 2,000 feet – but require regular testing to ensure they aren’t leaking and contaminating groundwater.

The EPA mandates these mechanical integrity tests every five years, conducted in the presence of agency inspectors. However, testimony revealed that Roseclare officials installed a deceptive device on the compromised wells: an empty pipe connected to the wellhead. This allowed inspectors to measure pressure within the empty pipe, falsely indicating a successful test when, in reality, the well itself was likely leaking. The scheme’s purpose, according to investigators, was to avoid costly repairs and maintain production without addressing potential environmental damage.

“This wasn’t a case of negligence; it was a calculated effort to deceive both regulators and the public,” stated a source close to the investigation who wished to remain anonymous. “By submitting false certifications to the EPA, Lewis and Roseclare Oil knowingly put communities at risk. The integrity of these wells is paramount to protecting our drinking water sources.” The practice continued for an undisclosed period, allowing wells to deteriorate without necessary maintenance, increasing the potential for subsurface contamination.

The indictment, filed on January 7, 2009, alleged that Lewis conspired to violate the Safe Drinking Water Act and to make false statements to a federal agency. While the penalty appears relatively light – a $5,000 fine and three years probation – legal experts suggest the case underscores the challenges in prosecuting environmental crimes, particularly when proving intent. The EPA continues to emphasize the importance of rigorous enforcement to deter similar violations in the future.

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Key Facts

Defendant: Daniel Lewis
Company: Roseclare Oil Kentucky
State: Kentucky
Year: 2010 (sentence in 2009 for actions occurring prior)
Charges: Conspiracy to violate the Safe Drinking Water Act, False Statements, Fraud against the US Government (18 U.S.C. 371)
Penalty: $5,000 fine, 3 years probation
Method of Fraud: Installation of empty pipes to falsely pass mechanical integrity tests on injection wells.
Number of Wells Affected: 11

GrimyTimes will continue to follow this case and report on any further developments. The incident raises questions about oversight of injection well operations and the effectiveness of current testing procedures in safeguarding vital water resources.

Source: EPA ECHO Enforcement Case Database

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