EPA urges CUC to create oil management section

The U.S. Environmental Protection Agency has recommended that the Commonwealth Utilities Corp. develop an oil management section “given the extent and gravity of CUC’s oil management and contamination issues at its power plant facilities.”

EPA legal counsel Bradley R. O’Brien said the oil management section, to be led by a technical manager for oil (TMO), should be responsible for managing all oil operations and all associated facilities.

In his recent report filed in the U.S. District Court for the NMI, O’Brien said the new section should be created not only for purposes of compliance with EPA’s stipulated order with CUC, but also on an ongoing basis.

He said CUC’s current proposed reorganization plan indicates used oil management staffing as listed under power generation—fuel and supply, but that section does not discuss oil management needs and work units, nor are they shown on the organizational chart submitted by CUC.

O’Brien said while this section should have strong ties to CUC’s Power Division, it is essential to have the managerial support so that its activities are not over-ridden by the operations management and staff.

O’Brien said the TMO position has been vacant since December 2010, and the past several months without a TMO, CUC has had a number of incidences involving unlawful oil spills, disposals, and open burning.

“It is critical for CUC to hire a qualified TMO who has the authority and experience to manager CUC’s oil operations in a safe manner that protects public health and the environment and complies with all applicable legal requirements,” he said.

O’Brien also expressed concern regarding the reporting structure for the TMO.

He said it is critical that the TMO report directly to the CUC executive director rather than to the deputy director for Power Division.

The EPA legal counsel cited that the recent oil noncompliance issues (such as unlawful open burning of used oil materials and spills etc.) highlight the need for providing the TMO which such authority.

O’Brien said although CUC has not confirmed it in writing, the utilities agency agreed in a recent conference call to modify its organization structure in accordance with EPA’s views so that the TMO reports directly to the executive director.

In response to EPA’s concerns on TMO hiring issue, CUC legal counsel Deborah E. Fisher said they are working with one candidate, which an offer being made and accepted.

“Final contract negotiations are ongoing and we expect resolution by the first week in September 2011,” Fisher said.