Aghorn Operating Inc., an oilfield company, Trent Day, an executive of Aghorn, and Kodiak Roustabout Inc., entered guilty pleas and were sentenced yesterday in relation to criminal worker safety and federal clean air and safe drinking water violations. According to court documents, Aghorn owns and operates oil wells in and near Odessa, Texas. Odessa is in the Permian basin where oil reserves are “sour,” meaning they have high hydrogen sulfide content. Hydrogen sulfide gas can be deadly at high concentrations.
The case leading to these pleas is the result of an investigation of the Oct. 26, 2019, death of Aghorn employee Jacob Dean and his wife Natalee Dean. Both were overcome by hydrogen sulfide at an Aghorn facility in Odessa.
Day agreed to plead guilty to a Clean Air Act (CAA) negligent endangerment charge and serve five months in prison. Aghorn pleaded guilty to CAA negligent endangerment and an Occupational Safety and Health Act willful violation count for the death of Jacob Dean. Kodiak pleaded guilty to a felony violation of the Safe Drinking Water Act for falsifying oil well integrity tests. Aghorn will pay a $1 million criminal fine and Kodiak will pay a $400,000 criminal fine. These pleas were made under agreements the defendants entered into with the United States. Under the agreements, other pending charges will be dismissed. Yesterday, the court accepted the defendants’ guilty pleas and sentenced them in accordance with their plea agreements.
“Through these guilty pleas, the defendants accept responsibility for allowing hazards that should have been prevented,” said Acting Assistant Attorney General Adam Gustafson of the Justice Department's Environment and Natural Resources Division (ENRD). “If they had done what the law requires, Jacob and Natalee might still be with us today. The Justice Department can’t stand by when employers put workers at such risk.”
“Energy production is vital, but it must be done competently and lawfully,” said Acting Assistant Administrator Jeffrey Hall of the Environmental Protection Agency (EPA)’s Office of Enforcement and Compliance Assurance. “Operators who gravely endanger and kill others and those who lie to the government will be held accountable for their criminal conduct. EPA’s criminal investigation of these tragic deaths led to today’s plea deal.”
According to a factual statement accepted by Day and Aghorn, Jacob Dean responded to a call to check a pump at an Aghorn facility. There, he encountered deadly hydrogen sulfide gas, was overcome, and died. His wife, Natalee Dean, knew where Jacob had gone and started calling him when he did not return in a timely manner. When those calls went unanswered, Natalee drove to the facility. When Natalee arrived at the facility, she was also overcome while looking for Jacob and died.
Trent Day admitted that he should have controlled hydrogen sulfide emissions as part of his duties and that because he did not, he placed others in imminent danger of death. Aghorn admitted the same criminal negligence and to a separate charge that it willfully violated the Occupational Safety and Health Act regulations requiring companies to implement respiratory protection programs to address hazards like those at the facility. In addition to paying a $1 million fine, the company will maintain a set of improvements it made after the tragedy during its period of probation.
The investigation also uncovered false statements by Kodiak about injection well testing related to Aghorn’s oil operations. The mechanical integrity of an injection well must be evaluated by conducting pressure tests. These tests are part of programs under the Safe Drinking Water Act to prevent leaks from those wells. Such leaks could, under some circumstances, contaminate groundwater. In its plea agreement, Kodiak admitted that it sent forms and charts to the Texas Railroad Commission, claiming they were tests for specific wells when Kodiak knew they were not actual records of tests of those wells. Kodiak, in addition to its $400,000 fine, will guarantee that at least 33 tests conducted for Aghorn wells during its year of probation are witnessed or conducted by a third party.
The EPA’s Criminal Investigation Division investigated the case. The Justice Department and EPA would like to thank the Texas Commission on Environmental Quality, the Texas Railroad Commission, Ector County Environmental, and the Odessa Fire Department for their support of the investigation.
Senior Trial Attorney Christopher Costantini, Trial Attorney Mark Romley, and Assistant Section Chief Thomas T. Ballantine of ENRD’s Environmental Crimes Section are prosecuting the case.