Henderson County, Kentucky – A decades-old case of illegal waste disposal has resurfaced, revealing a pattern of environmental violations by MWC Oil Company and its key personnel. While corporate charges were ultimately dismissed, the individuals responsible for operating unpermitted injection wells faced significant federal penalties in 1996.
The investigation, stemming from information regarding oil and gas leases operated by Devon Oil and Gas, uncovered a network of approximately 25 to 30 illegally constructed and operated injection wells. These wells, used to dispose of waste fluids from oil and gas production, bypassed critical regulatory oversight designed to protect groundwater resources. Crucially, MWC Oil Company and its president were found to have operated these wells *before* 1992, predating Devon Oil and Gas’ involvement.
Indictments and Pleas
The U.S. Environmental Protection Agency (EPA) brought charges against MWC Oil Company, Devon Oil and Gas, and two individuals: John Sterge, the president of MWC Oil, and Robert Cobb. On February 7, 1995, Sterge was indicted on two counts – violating the Safe Drinking Water Act (SDWA) [42 U.S.C. 300h(2)] related to underground injection control, and violating the Clean Water Act (CWA) [33 U.S.C. 1321(b)(3)] for the discharge of oil. Cobb was charged in an information with three similar counts. Devon Oil and MWC were also indicted on two counts each under the SDWA.
Both Sterge and Cobb later entered guilty pleas. Sterge pleaded guilty on September 5, 1995, to both counts in the indictment. Cobb followed suit on October 30, 1995, admitting guilt to all three counts against him. Following these guilty pleas, the charges against the corporate entities – MWC Oil and Devon Oil and Gas – were dismissed, a controversial outcome given the scale of the illegal operation.
Sentencing and Penalties
The legal repercussions for the individuals were substantial. On February 5, 1996, Robert Cobb was sentenced to 37 months of incarceration, followed by 60 months of probation, and a $7,500 fine. Just over a month later, on April 1, 1996, John Sterge received an identical sentence: 37 months in prison, 60 months of supervised release, and a $7,500 fine. The sentences reflect the seriousness with which federal authorities viewed the deliberate circumvention of environmental regulations.
The case highlights the persistent challenges in policing underground injection wells and the potential for significant environmental damage when operators prioritize profit over compliance. While the corporate entities avoided direct penalties, the convictions of Sterge and Cobb served as a warning to others in the industry. The long-term environmental impact of the illegal injection wells remains a concern for residents of Henderson County.
Key Facts
- Defendant: MWC Oil Company and John Sterge, Robert Cobb
- Location: Henderson County, Kentucky
- Year: 1996 (sentencing)
- Statutes Violated: Clean Water Act [33 U.S.C. 1321(b)(3)], Safe Drinking Water Act [42 U.S.C. 300h(2)]
- Number of Illegal Wells: Approximately 25-30
- Penalties: 37 months incarceration, 60 months probation, $7,500 fine (per individual)
- Charges against the companies were dismissed following guilty pleas from individuals.
Source: EPA ECHO Enforcement Case Database
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