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Wednesday, October 9, 2019

DEP Suspends Well Permits for Operator’s Failure to Pay Impact Fee Suspension to Remain Until Xtreme Energy Pays Fees to Pennsylvania PUC

Pittsburgh, PA – The Pennsylvania Department of Environmental Protection (DEP) has suspended well permits issued to Xtreme Energy Co. for the company’s failure to pay its Act 13 of 2012 (Act 13) impact fees to the Pennsylvania Public Utility Commission (PUC) for the 2014, 2015, and 2016 calendar years.

In a letter dated September 10, 2019, the PUC’s independent Bureau of Investigation & Enforcement notified DEP of Xtreme Energy’s failure to pay its fees. DEP, in turn, issued a letter on October 2, 2019, notifying Xtreme of the suspension of its permits in accordance with Act 13. The suspension goes into effect today and requires Xtreme Energy to stop production at — or shut-in — its two active wells in Pennsylvania, both of which are in Somerset County.

The suspension will remain in place until the fees are paid to the PUC, DEP receives notice to that effect, and DEP notifies Xtreme Energy in writing that the permits are no longer suspended. DEP compliance staff will conduct inspections this week to verify that the wells have been shut-in. This is the first time since passage of Act 13 that DEP has suspended well permits for an operator’s failure to pay its impact fee.

The notice of permit suspension along with the letter to DEP from the PUC and its enclosures can be viewed here: http://files.dep.state.pa.us/Newsroom/NewsroomPortalFiles/Xtreme_Energy_Permit_Suspension_10-02-2019.pdf

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