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Controversial West Side Business

Started by Towntalk, February 08, 2013, 06:28:00 PM

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Towntalk

Source WKBN-TV

State investigators found Ben Lupo, who owns several energy companies, including D & L Energy, repeatedly used one of his companies that was not permitted to haul brine and other drilling waste products that Lupo ordered dumped into the Mahoning River.

Records from the Ohio Department of Natural Resource's criminal and civil investigation also said ODNR received multiple tips about the illegal dumping throughout January, including two text messages. Officials said one was "not actionable information." The second text sparked the investigation in which ODNR witnessed two employees dumping the brine and oil.

The complaint said investigators watched a truck labeled Mohawk drive from the area after the brine was dumped down a storm sewer. Investigators noted Mohawk Disposal Management, LLC. transported the waste to the D & L site despite never registering with ODNR, which is a violation of Ohio law.

They also found a Mohawk-labeled brine hauling truck used an identification number assigned to Hardrock Excavation, LLC., another of Lupo's dozens of businesses that use the same 2716 Salt Springs Road address.

The complaint noted at least three citations involved with the company's use of Mohawk.

"Hardrock Excavating, LLC. engaged in a pattern of violations by willfully allowing Mohawk Disposal Management, LLC trucks to transport brine under Hardrock Excavating, LLC.'s registration number, or at a minimum, showed lack of reasonable care in the use of its registration number," said documents signed by Richard J. Simmers, the Chief of ODNR's Division of Oil and Gas Resources Management.

The complaint said investigators found records that show Mohawk, on "numerous occasions" transported brine without a license to D & L. An ODNR spokeswoman said Lupo requested an informal show-cause hearing with Simmers that will likely take place next week.

Records from the Ohio Secretary of State say Mohawk Disposal, formerly Northstar Disposal, was created in September 2011 by Holly Serensky Lupo with Ben Lupo as the company's agent. Lupo was the only person listed as an agent on Northstar's filings.


Because of the investigation's findings ODNR permanently revoked permits for D&L Energy and Hardrock Excavating, who are now at the center of a state civil investigation by the state Environmental Protection Agency and the Ohio Attorney General and criminal investigations by the U.S. EPA.

The U.S. EPA notified Lupo they were investigating him for possible violations of the Clean Water Act Feb. 1.

Records from the U.S. EPA said 40,000 gallons of water was removed from the Mahoning River. EPA investigators found oil in the Mahoning River, and said drilling mud and chemically-laced brine water was dumped.

The station has made public records requests for the test results of exactly what chemicals were dumped into the river. A U.S. EPA report said 29 yards of oily solids, and 20,000 gallons of oil and water were found by investigators. Later, the EPA reported they found 42 cubic yards of oiled debris collected for disposal.

The U.S. EPA said the chemicals have been contained and cleaned up.

They also reported the initial emergency response by investigators cost $15,000.

ODNR permanently revoked D&L permits for all six of the company's injection wells, including two in Trumbull County, three in Mahoning County and one in Ashtabula Count, in the state and denied applications for three more that were planned for Trumbull and Mahoning counties. He was ordered to immediately cease all operations at their injection wells and any temporary storage operations at their 2761 Salt Springs Road address. Records showed they have between 20 and 30 storage tanks at the facility that hold 22,000 gallons each.

They had two active injection wells, one in Warren Township and one in New Lyme in Ashtabula County.

ODNR also revoked Hardrock Excavating's brine hauler permit, which allowed it to transport brine from drilling rigs to its facility.


D&L said they will review the allegations and may appeal ODNR's rulings. They have 30 days to appeal.

State law says those convicted of violating state dumping laws can be sent to jail for up to six months and fined $10,000 on a first offense and each subsequent offense brings a two-year prison term and a $20,000 fine.

If federal investigators decide to take over the investigation and charge Lupo or the companies with violating the Clean Water Act, federal penalties include a $50,000 fine per day the violation occurs and three years in federal prison.

Anti-fracking activists have spoken out against D&L, the company the EPA said caused Youngstown's first four earthquakes in history in 2011 by their injection-well practices, including one with a 4.0 magnitude.

Lupo, according to a search of business records, currently owns or is an agent to 20 active businesses, five cancelled businesses and five that were declared dead.

All current businesses address is 2761 Salt Springs Road, including D&L and Hardrock Excavating.

Several of Lupo's businesses are centered around the oil and gas industry, including Black Gold Oilfield Services, LLC., crated in 2005 for "oil and gas well services," filings say.