EPA Issues Order for Removal Action at the Howard White #1 Crude Oil Fire and Spill Site in Wartburg, Morgan County, Tennessee.

Business Editors

ATLANTA--(BUSINESS WIRE)--Aug. 22, 2002

The U.S. Environmental Protection Agency issued an order for a removal action and reimbursement of removal costs incurred by the United States to Pryor Oil Company, Inc.

The Order was issued under the authority of the federal Clean Water Act. In accordance with the Order, the company is required to immediately conduct removal of a discharge (oil contamination) to mitigate or prevent a substantial threat of a discharge of oil (or a hazardous substance). A removal is a short-term cleanup, intended to stabilize or clean up a site that poses an imminent and substantial threat to human health or the environment.

The removal action required by the Order requires the Pryor Oil Company, Inc. to assess the well's integrity, restore and maintain the landowners' properties, and to conduct oil skimming/removal operations and maintenance of the affected creeks. EPA will provide oversight and approval of the activities included in the Order.

The Howard White Unit #1, also known as Highland Drilling Crude Oil Fire and Spill, was designated as an air-drilled well to test the Sunny Brook formation for commercial oil production in Northeastern Tennessee. On July 20, 2002, an oil flow occurred. The oil flow and pressure increased and the rig crew made efforts to divert the flow to storage tanks. The flow grew in intensity, a spill occurred and oil pooled around the well and rig spilling out of the containment area. Hours later, the oil ignited and a fire occurred. Oil flowed down from the site in the direction of Clear Creek and White Creek. Burning oil flowed into the creeks, damaging forest areas along its path. Upon notification by the State of Tennessee and the National Response Center, an EPA On-Scene Coordinator (OSC) was sent to the site. The OSC assumed the responsibility and direction of the response actions after it was determined that the owner/operator of the well was unable to give sufficient financial assurance to the contractor(s).

Clear Creek is a Federally designated critical habitat, under the Endangered Species Act. Approximately two miles of Clear Creek was affected. Clear Creek and White Creek flow into the Obed River. The area is named the Obed River Wild and Scenic River, under the jurisdiction of the Department of Interior.