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Ruling on D&L's permits expected in two to six weeks

Saturday, May 25, 2013

Staff report

COLUMBUS

With two days of testimony complete, a decision about whether to reinstate the operating permits of D&L Energy could come within the next two to six weeks, said Linda Osterman, executive director of the Ohio Oil and Gas Commission.

D&L appeared before the independent board Wednesday and Thursday. The commission hears complaints against decisions made by the Ohio Department of Natural Resources Division of Oil and Gas Resources Management.

The division revoked D&L’s permits Feb.6.

At issue is whether to reinstate D&L’s operating permits after an incident Jan. 31 when state regulators learned that the company’s former owner, Ben W. Lupo, ordered an employee to dump tens of thousands of gallons of drilling waste — including oil and brine — down a storm drain at the company’s headquarters on Salt Springs Road in Youngstown.

That employee worked for another of Lupo’s businesses, Hardrock Excavating.

Lawyers for D&L argued Wednesday that the company should not be punished for the wrongdoings of its sister company. Lupo since has relinquished his ownership in D&L. He has been charged with violating the federal Clean Water Act.

Much of Thursday’s testimony revealed little in the way of new details about the incident. State regulators confirmed that they witnessed the employee, Michael P. Guesman, dumping the drilling waste into the storm drain. The waste eventually made its way into the Mahoning River. Guesman also has been charged with violating the Clean Water Act. Guesman and Lupo have pleaded not guilty.

“Based upon my experience with this commission, I would guess that once all evidence is produced and any post-hearing briefs are submitted, the commission will render a decision within 2-6 weeks,” Osterman wrote in an email this week. “I know that the commission’s goal is to render a decision as expeditiously as possible — so, hopefully, we will be closer to the 2-week mark than the 6-week mark.”