Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 1 of 28 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NORTH DAKOTA SOUTHWESTERN DIVISION UNITED STATES OF AMERICA JASON A. HALEK v. I N D I C T M E N T Case No. Violations: 18 U.S.C. 371, 981(a)(C), 1001, 1512(c)(1)(2), and 2; and 28 U.S.C. 2461(c), and 42 U.S.C. 300h-2 INTRODUCTION A. Background 1. Corporation 1 was incorporated in North Dakota. JASON A. HALEK was the Managing Member of Corporation 1. 2. Corporation 2 was incorporated in Texas. Nathan R. Garber was the Registered Agent of Corporation 2. B. Legal Framework Safe Drinking Water Act 3. In 1974, Congress passed the Safe Drinking Water Act ( SDWA ) to ensure that the water delivered by public water systems is safe. 42 U.S.C. 300f to 300j-26. The SDWA regulates certain underground injections of materials beneath the land s surface. 42 U.S.C. 300h(d). 4. Injection wells the wells regulated by the SDWA are those wells into which fluids are being injected. 40 C.F.R. 144.3. The United States Environmental Protection Agency ( EPA ) has defined five classes of injection wells, with Class II wells receiving certain injected fluids related to oil and natural gas
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 2 of 28 production. 40 C.F.R. 144.6(b). Class II wells receive brine and other wastes commonly referred to as saltwater. Saltwater in this context covers a wide array of drilling waste fluids, including waste workover, completion, stimulation and pigging fluids, as well as enhanced recovery waters. 5. Under the SDWA, states are the primary enforcers of the Underground Injection Control ( UIC ) program. Once a state program meets minimum federal standards, it may secure primary enforcement authority for the regulation of underground water sources if the EPA approves the state s UIC program. 42 U.S.C. 300h-4(c)(2). North Dakota has an EPA-approved UIC program. 40 C.F.R. 147.1750-1752. 6. When a state obtains primary enforcement authority, the federal government retains enforcement authority, including the right to initiate criminal charges for violations of the SDWA. It is a crime under the SDWA for a person to willfully violate any requirement of an applicable UIC program. 42 U.S.C. 300h-2. North Dakota Requirements 7. North Dakota regulations prohibit underground injection into Class II wells without a permit issued by the North Dakota Industrial Commission ( NDIC ). NDAC 43-02-05-04(1). Such a permit may contain such terms and conditions as the commission deems necessary. NDAC 43-02-05-04(2). 8. A Mechanical Integrity Test ( MIT ) includes a positive pressure test that requires a well to hold pressure without leaking and ensures ground water is protected. The MIT focuses on whether there are any significant leaks or fluid movement, and is vital to confirm the integrity of the well. NDAC 43-02-05-07(1). 2
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 3 of 28 Prior to commencing operations, the operator of a new injection well must demonstrate the mechanical integrity of the well. NDAC 43-02-05-07. Operators are required to demonstrate continual mechanical integrity. NDAC 43-02-05-07. 9. A device called a packer is used to isolate the injection zone from the space between the tubing and injection casing above the packer, called the annulus. The packer prevents fluid from entering the annulus when the fluid is injected down the tubing. A packer serves as an extra layer of protection for ground water by providing a seal between the outside of the tubing and the inside of the casing to prevent the movement of fluids. The hydraulic seal provided by a properly-set packer, and the cement above it, prevents injected material from migrating up the well bore into a fresh ground water zone and causing pollution. North Dakota regulations require that wells be equipped with tubing and packer set at a depth approved by the director. NDAC 43-02-05-06(3). 10. North Dakota places additional requirements on operators of Class II injection wells. These rules ensure that the state can monitor well activities and that they are progressing lawfully and in a way that is protective of the environment, including ground water. Upon completion of an injection well, an official notice (called a sundry notice ) must be filed within thirty days. NDAC 43-02-05-12(7). Further, immediate notification is required upon commencing or recommencing of injection. NDAC 43-02-05-12(2). The amount of injection for each well must be reported monthly on or before the fifth day of the second month succeeding the month in which the well is capable of injection. NDAC 43-02-05-12(1). Other activities, like creating holes or 3
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 4 of 28 perforations in a well, also require notice to the state of North Dakota. NDAC 43-02- 03-31(2). The regulations also require operators to demonstrate continual mechanical integrity. NDAC 43-02-05-07(1). The operator must cease injection operations if so directed by the Director of the NDIC. NDAC 43-02-05-12(5). Further, annular injection of fluid is prohibited. NDAC 43-02-05-09. 11. On November 8, 2011, the NDIC issued a Permit for Fluid Injection to Corporation 1. This permit, described as UIC No. W0267S0737C, authorized injections of Class II fluids into the Dakota Group injection zone, conditioned on compliance with various permit requirements, including the requirement that Corporation 1 comply with the provisions set forth in Chapter 43-02-05, Chapter 43-02-03, [and] any other applicable rules or orders of the Commission. The permit conditions included twentytwo (22) numbered stipulations: a. Stipulation 4 of the permit stated that a Commission Field Inspector must witness a satisfactory mechanical integrity test on the tubing-casing annulus prior to injecting fluids. b. Stipulation 18 of the permit mandated integrity testing of the well: The operator shall conduct tests and install monitoring equipment as prescribed by the Director to verify the integrity of the surface facility, gathering system and injection well and to insure that the surface and subsurface potable waters will be protected. c. Stipulation 3 of the permit required that [i]njection shall be through tubing and packer set within 100 feet of the top perforation. 4
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 5 of 28 d. Stipulation 6 of the permit required that immediate written notice be given of the date of first injection. e. Stipulation 9 of the permit required that a sundry notice be filed within 30 days after completion of the conversion of the well. f. Stipulation 12 of the permit required the filing of a sundry notice [within 30 days per NDAC 43-02-03-31] for any remedial work, as follows: Following any remedial work done to this well over the life of this well, a Sundry Notice (Form 4) must be submitted detailing the work done. This report shall include the reason for the workover, the work done, dates, size and type of tubing, type and location of packer, result of pressure test, and other pertinent data. g. Stipulation 14 of the permit required monthly reports of the amount and sources of the fluid injected, and the average injection pressure. The reports must be filed on or before the fifth day of the second month following that in which injection occurred or could have occurred. h. Stipulation 17 of the permit mandated that injection operations shall cease immediately if so directed by the Director or one of his representatives. A verbal shut-in order is mandatory under stipulation 20 in the permit, which authorizes the Director to immediately order the well shut-in if the operator fails to comply with the statutes, rules, orders of the Commission or written or oral directives of the Commission or its staff. C. Factual Background 12. In September of 2010, Corporation 1 sought and subsequently obtained approval to drill an oil well near Dickinson, in Stark County, North Dakota. The well, 5
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 6 of 28 named the Halek 5-22#1 ( Halek 5-22 or the well ), was a dry hole that produced no oil, and on July 22, 2011, Corporation 1 filed a Notice of Intent to complete the well as a saltwater disposal well. On August 2, 2011, Corporation 1 filed an Application for Injection-Form 14 for a saltwater disposal well. The conversion of the well to a saltwater disposal well was completed on or about November 15, 2011. 13. On January 23, 2012, a purchase agreement was executed wherein Corporation 2 agreed to buy the Halek 5-22 well from Corporation 1. JASON A. HALEK signed on behalf of Corporation 1 and the Nathan R. Garber signed on behalf of Corporation 2. On January 23, 2012, both JASON A. HALEK and Nathan R. Garber executed a Notice of Transfer of Oil and Gas Wells Form 15, and Garber s signature appeared below a certification where Garber accepted the responsibility of ownership and/or operation of the well. 14. Even though the purchase agreement was executed on January 23, 2012, it was not effective until approved by the NDIC. The parties were informed of this in a January 30, 2012 email from the NDIC, adding that the transfer would not be approved until a sundry notice was submitted regarding the conversion of the well and a MIT was witnessed by the NDIC. The purchase agreement was approved by the NDIC on February 27, 2012. 6
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 7 of 28 COUNT ONE Conspiracy The Grand Jury Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. Objects of the Conspiracy Beginning at a time unknown to the grand jury, but no later than in or about December 2011 and continuing thereafter until in or about March 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK did knowingly and willfully combine, conspire, confederate, and agree with Nathan R. Garber, and others known and unknown to the grand jury, to commit the following offenses against the United States and the laws thereof: a. To willfully violate requirements of the North Dakota underground injection control program, contrary to Title 42, United States Code, Section 300h-2, and Title 18, United States Code, Section 2; b. To defraud the United States, that is, to hamper, hinder, impede, impair, and obstruct by craft, trickery, deceit, and dishonest means the lawful and legitimate functions of the EPA, in enforcing federal laws relating to the requirements of the North Dakota underground injection control program, in violation of Title 18, United States Code, Sections 371 and 2; and 7
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 8 of 28 c. To knowingly and willfully make materially false, fictitious, and fraudulent statements and representations in matters within the jurisdiction of the EPA, an agency of the executive branch of the government of the United States. Means and Methods of the Conspiracy Among the means and methods employed by JASON A. HALEK, Nathan R. Garber, and their co-conspirators to carry out the conspiracy and effect its unlawful objects were: a. The preparation and operation of the Halek 5-22 well from in or about December 2011 to in or about March 2012 in violation of various laws, regulations and permit provisions; b. Injecting saltwater into the Halek 5-22 well from on or about December 18, 2011, to on or about February 16, 2012, without having an NDIC Field Inspector witness a satisfactory mechanical integrity test on the tubing-casing annulus prior to injecting the fluids; c. Injecting saltwater into the Halek 5-22 well from on or about February 2, 2012, to on or about March 5, 2012, after failing a pressure test, and thus not demonstrating continual mechanical integrity; d. Injecting saltwater into the Halek 5-22 well from on or about February 16, 2012, to on or about March 5, 2012, when the tubing and packer was not set within 100 feet of the top perforation; e. Misleading or attempting to mislead the NDIC, through various means, including false verbal, written, and electronic mail statements, in order to 8
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 9 of 28 cover-up the fact that the well was operating in violation of laws, regulations and permit provisions, as well as mislead or attempt to mislead the NDIC as to individuals/entities that were responsible for actions taken at the well; and f. Engaging in telephone conversations and sending electronic mail communications designed to advance and facilitate the conspiracy. Overt Acts In furtherance of the conspiracy and in order to effect the objects thereof, JASON A. HALEK, Nathan R. Garber, and their co-conspirators committed the following overt acts, among others, in the District of North Dakota, and elsewhere: a. Overt Act Number 1: On or about November 15, 2011, JASON A. HALEK, Nathan R. Garber, and Corporation 1 completed the conversion of the well and did not provide notice to the NDIC within thirty days after the completion of the conversion; b. Overt Act Number 2: On or about December 18, 2011, JASON A. HALEK and Corporation 1 commenced injection into the well and did not provide immediate notice to the NDIC; c. Overt Act Number 3: In or about December 2011, JASON A. HALEK and Corporation 1 injected saltwater into the well and did not file a monthly report of the amount and sources of the fluid injected on or before the fifth day of the second month following those injections; 9
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 10 of 28 d. Overt Act Number 4: In or about December 2011, JASON A. HALEK and Corporation 1 injected saltwater down the tubing-casing annulus ( backside ) of the well; e. Overt Act Number 5: On various dates between on or about December 18, 2011, to on or about January 23, 2012, JASON A. HALEK and Corporation 1 injected saltwater into the well without first having an NDIC Field Inspector witness a satisfactory mechanical integrity test on the tubing-casing annulus; f. Overt Act Number 6: On various dates between on or about January 23, 2012, to on or about February 16, 2012, Nathan R. Garber and Corporation 2 injected saltwater into the well without first having an NDIC Field Inspector witness a satisfactory mechanical integrity test on the tubing-casing annulus; g. Overt Act Number 7: On or about February 2, 2012, Nathan R. Garber and Corporation 2 requested that B&B Hot Oil Service, Inc., conduct a pressure test, which was conducted and failed on February 2, 2012; h. Overt Act Number 8: On various dates between on or about February 3, 2012, to on or about February 16, 2012, Nathan R. Garber and Corporation 2 injected over 8,000 barrels of saltwater into the well in violation of an NDIC verbal shut-in order that the well could not be used without first having an NDIC Field Inspector witness a satisfactory mechanical integrity test on the tubingcasing annulus; 10
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 11 of 28 i. Overt Act Number 9: Regarding the injections between on or about February 3, 2012, to on or about February 16, 2012, referenced in the preceding overt act, Nathan R. Garber and Corporation 2 falsely stated, in an electronic mail communication to the NDIC dated March 6, 2012, that we did not take any water at all during the time we were waiting for the mechanical test and that there was no pumping done for commercial gain during this time; and admitted only to turning the pumps on briefly every 12 hours so the pipes don t freeze and that he would expect 200-500bbls [barrels] at the most to have been injected into the well for the February 3 to 16, 2012 period; j. Overt Act Number 10: On various dates between on or about February 2, 2012, to on or about March 5, 2012, Nathan R. Garber and Corporation 2 injected saltwater into the well after failing a pressure test on February 2, 2012, and thus not demonstrating continual mechanical integrity; k. Overt Act Number 11: On or about February 10, 2012, JASON A. HALEK told Nathan R. Garber they had to reset the packer and that pipe joints needed to be removed from the well, which would cause the packer to be moved up in the wellbore; l. Overt Act Number 12: On February 14, 2012, at the direction of Nathan R. Garber and Corporation 2, the packer was moved and reset at a point in the wellbore more than 100 feet from the top perforation; m. Overt Act Number 13: On or about February 14, 2012, Nathan R. Garber and Corporation 2 instructed the crew to move all of the joints that had been 11
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 12 of 28 taken out of the well behind the shack and out of sight, in order to conceal the removal of the joints from the NDIC and others; n. Overt Act Number 14: On or about February 16, 2012, Nathan R. Garber and Corporation 2 provided false information to an NDIC employee regarding the depth of the packer by providing that employee with a sheet of paper falsely stating that the packer was set at a depth of 5546 feet; o. Overt Act Number 15: On various dates between on about February 16, 2012, to on about March 5, 2012, Nathan R. Garber and Corporation 2 injected saltwater into the well when the tubing and packer was not set within 100 feet of the top perforation; p. Overt Act Number 16: On or about March 7, 2012, JASON A. HALEK sent a letter to NDIC, stating that the well was taken over by Corporation 2 on January 23, 2012, and falsely stating that all field personnel were instructed not to allow any injection until authorized by the NDIC; q. Overt Act Number 17: On or about March 7, 2012, JASON A. HALEK and Corporation 1 sent an electronic mail communication to the NDIC (with a copy to Nathan R. Garber), attaching a Completion Report for the current wellbore which falsely stated that the packer was set at a depth of 5546 feet; r. Overt Act Number 18: On or about March 8, 2012, JASON A. HALEK and Corporation 1 sent an electronic mail communication to the NDIC (with a copy to Nathan R. Garber), attaching a diagram stating that the packer was at a 12
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 13 of 28 depth of 5546 feet as of January 22, 2012, but failing to indicate that the packer had been moved and was no longer at 5546 feet; s. Overt Act Number 19: On or about March 21, 2012, JASON A. HALEK and Corporation 1 sent an electronic mail communication to the NDIC (with a copy to Nathan R. Garber), falsely stating that on February 14, 2012, [t]he rig that was on site merely released the packer and re-set the packer because it slightly leaked at 900psi, after it was re-set it held great and failing to indicate that the packer had been moved and was no longer at 5546 feet, and attaching a diagram falsely stating that the packer was set at 5546 feet; and t. Overt Act Number 20: On or about March 26, 2012, JASON A. HALEK and Corporation 1 sent an electronic mail communication to the NDIC, attaching a diagram falsely stating that the packer was set at 5546 feet; In violation of Title 18, United States Code, Sections 371 and 2. 13
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 14 of 28 COUNT TWO Safe Drinking Water Act The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. Between on or about December 18, 2011, and January 23, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK did willfully inject and cause to be injected fluids into the Halek 5-22 well, without having an NDIC Field Inspector witness a satisfactory mechanical integrity test on the tubing-casing annulus prior to injecting the fluids, a requirement of an applicable underground injection control program, found at stipulations 4 and 18 of the UIC Permit No. W0267S0737C; In violation of Title 42, United States Code, Section 300h-2, and Title 18, United States Code, Section 2. 14
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 15 of 28 COUNT THREE Safe Drinking Water Act The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. From in or about December 2011, in the District of North Dakota, and elsewhere, JASON A. HALEK did willfully inject and cause to be injected fluids into the tubing-casing annulus ( backside ) of the Halek 5-22 well, a violation of a requirement of an applicable underground injection control program, found at stipulation 3 of the UIC Permit No. W0267S0737C; In violation of Title 42, United States Code, Section 300h-2, and Title 18, United States Code, Section 2. 15
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 16 of 28 COUNT FOUR Safe Drinking Water Act The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. From on or about December 18, 2011, to on or about February 23, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK did willfully fail and cause to fail to immediately provide written notice of the date of first injection into the Halek 5-22 well, a violation of a requirement of an applicable underground injection control program, found at stipulation 6 of the UIC Permit No. W0267S0737C; In violation of Title 42, United States Code, Section 300h-2, and Title 18, United States Code, Section 2. 16
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 17 of 28 COUNT FIVE Safe Drinking Water Act The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about February 14, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK did willfully equip and cause to equip the Halek 5-22 well with a packer that was not at a depth approved by the NDIC, to wit: more than 100 feet of the top perforation, in violation of NDAC 43-02-05-06(3), and thus in violation of requirements of an applicable underground injection control program, found in the first paragraph and stipulation 3 of UIC Permit No. W0267S0737C; In violation of Title 42, United States Code, Section 300h-2, and Title 18, United States Code, Section 2. 17
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 18 of 28 COUNT SIX False Statement The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about March 7, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK in a matter within the jurisdiction of the EPA, an agency of the executive branch of the government of the United States, did knowingly and willfully make a materially false, fictitious, and fraudulent statement and representation, that is, JASON A. HALEK stated in a March 7, 2012 letter sent to the NDIC that: The operations of the Halek 5-22 #1 well were taken over by Executive Drilling, LLC on January 23, 2012 all field personnel were instructed not to allow any injection until authorized by the NDIC, when in truth and in fact, as JASON A. HALEK then well knew and believed, the field personnel were not instructed not to allow any injection until authorized by the NDIC; In violation of Title 18, United States Code, Sections 1001 and 2. 18
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 19 of 28 COUNT SEVEN False Statement The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about March 7, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK in a matter within the jurisdiction of the EPA, an agency of the executive branch of the government of the United States, did knowingly and willfully make a materially false, fictitious, and fraudulent statement and representation, that is, JASON A. HALEK, in a March 7, 2012 electronic communication to the NDIC, attaching a Completion Report for the current wellbore, stated that the packer was at a depth of 5546 feet when in truth and in fact, as JASON A. HALEK then well knew and believed, this falsely described the current wellbore as the packer had been moved up and was at a depth higher than 5546 feet; In violation of Title 18, United States Code, Sections 1001 and 2. 19
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 20 of 28 COUNT EIGHT False Statement The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about March 21, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK in a matter within the jurisdiction of the EPA, an agency of the executive branch of the government of the United States, did knowingly and willfully make a materially false, fictitious, and fraudulent statement and representation, that is, JASON A. HALEK stated in a March 21, 2012 electronic communication to the NDIC that: The rig that was on site merely released the packer and re-set the packer because it slightly leaked at approximately 900psi, after it was re-set it held great, and attached an updated diagram that stated the packer was at a depth of 5546 feet, when in truth and in fact, as JASON A. HALEK then well knew and believed, the packer had been moved up and was not merely released and re-set, and the packer was set higher than a depth of 5546 feet; In violation of Title 18, United States Code, Sections 1001 and 2. 20
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 21 of 28 COUNT NINE False Statement The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about March 26, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK in a matter within the jurisdiction of the EPA, an agency of the executive branch of the government of the United States, did knowingly and willfully make a materially false, fictitious, and fraudulent statement and representation, that is, JASON A. HALEK sent a March 26, 2012 electronic communication to the NDIC that attached a diagram stating the packer was at a depth of 5546 feet, when in truth and in fact, as JASON A. HALEK then well knew and believed, the packer was higher than a depth of 5546 feet; In violation of Title 18, United States Code, Sections 1001 and 2. 21
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 22 of 28 COUNT TEN Obstructing an Official Proceeding The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about December 10, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK corruptly concealed a record and document and attempted to do so, with the intent to impair its availability for use in an official proceeding, namely, causing documents to be submitted to the grand jury of the United States District Court for the District of North Dakota in response to a grand jury subpoena dated October 15, 2012, when in truth and in fact, as JASON A. HALEK then well knew and believed, those responsive documents were not submitted to the grand jury; In violation of Title 18, United States Code, Sections 1512(c)(1) and 2. 22
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 23 of 28 COUNT ELEVEN Obstructing an Official Proceeding The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about December 10, 2012, in the District of North Dakota, and elsewhere, JASON A. HALEK corruptly obstructed, influenced, and impeded an official proceeding, and attempted to do so, by causing a false statement to be made to the grand jury of the United States District Court for the District of North Dakota, and aided, abetted, counseled, commanded, and induced that statement to be made, that is, JASON A. HALEK caused Person 1 to send a chronology attached to a December 10, 2012 letter to the grand jury, stating in part: (1) Corporation 1 had hired Nathan Garber as a subcontractor to supervise all work; (2) that when Corporation 2 purchased the well, Corporation 2 took over all operations; and (3) Corporation 1 submitted several post assignment Sundry Notices [i.e. post January 23, 2012] even though they [Corporation 1] were not the responsible party for the operations at the, [sic] but merely assist the NDIC, as a professional courtesy; when in truth and in fact, as JASON A. HALEK then well knew and believed: (1) JASON A. HALEK supervised work when Nathan Garber was a subcontractor for Corporation 1; (2) after Corporation 2 purchased the well, JASON A. HALEK continued to be involved in the operations of the well; and (3) JASON A. HALEK did not submit Sundry Notices to the NDIC after January 23, 2012 in order to assist the NDIC but rather: (a) to cover-up 23
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 24 of 28 his participation in illegal conduct at the well, including his role in moving the packer; and (b) due to his ongoing financial interest in the well, including Corporation 1 s ownership interest in the well; In violation of Title 18, United States Code, Sections 1512(c)(2) and 2. 24
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 25 of 28 COUNT TWELVE Obstructing an Official Proceeding The Grand Jury Further Charges: The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about March 15, 2013, in the District of North Dakota, and elsewhere, JASON A. HALEK corruptly concealed a record and document, and attempted to do so, with the intent to impair its availability for use in an official proceeding, namely, causing documents to be submitted to the grand jury of the United States District Court for the District of North Dakota in response to a grand jury subpoena dated October 15, 2012, when in truth and in fact, as JASON A. HALEK then well knew and believed, those responsive documents were not submitted to the grand jury; In violation of Title 18, United States Code, Sections 1512(c)(1) and 2. 25
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 26 of 28 The Grand Jury Further Charges: COUNT THIRTEEN Obstructing an Official Proceeding The allegations of paragraphs 1 through 14 are incorporated by reference as if fully set forth herein. On or about March 15, 2013, in the District of North Dakota, and elsewhere, JASON A. HALEK corruptly obstructed, influenced and impeded an official proceeding, and attempted to do so, by causing a false statement to be made to the grand jury of the United States District Court for the District of North Dakota, and aided, abetted, counseled, commanded, and induced that statement to be made, that is, JASON A. HALEK caused Person 1 to send a March 15, 2013 letter to the grand jury, stating in part: There are no other Halek documents after January 23, 2013 [sic: 2012], which have not been already produced because Garber assumed full management and control of the well, as of the date of the assignment on January 23, 2012. The absence of any other additional Halek documents prove that Halek was not involved in any management of the wells after the Assignment of January 23, 2012. when in truth and in fact, as JASON A. HALEK then well knew and believed, he had custody and control of Halek documents relating to the Halek 5-22 well after January 23, 2012, including documents demonstrating that JASON A. HALEK was involved in the management of the Halek 5-22 well after January 23, 2012; In violation of Title 18, United States Code, Sections 1512(c)(2) and 2. 26
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 27 of 28 FORFEITURE ALLEGATION The Grand Jury Further Finds Probable Cause That: The violations alleged in Counts One through Five of this Indictment are realleged and incorporated by reference herein for the purpose of alleging forfeiture to the United States of America pursuant to the provisions of Title 18, United States Code, Section 981(a)(1)(C), and Title 28, United States Code, Section 2461(c). As a result of the offenses alleged in Counts One through Five of this Indictment, JASON A. HALEK shall forfeit to the United States any property constituting, or derived from, proceeds obtained directly or indirectly, as the result of the offenses alleged in Counts One through Five, including, but not limited to: above: difficulty; Money Judgment: Judgment in favor of the United States of America for a sum of money equal to property constituting, or derived from, proceeds obtained, directly or indirectly, as the result of the offenses alleged in Counts One through Five of this Indictment. If, as a result of any act or omission of JASON A. HALEK, the property identified (a) cannot be located upon the exercise of due diligence; (b) has been transferred or sold to, or deposited with, a third person; (c) has been placed beyond the jurisdiction of the Court; (d) has been substantially diminished in value; or (e) has been commingled with other property that cannot be subdivided without 27
Case 1:15-cr-00130-DLH Document 2 Filed 08/06/15 Page 28 of 28 it is the intention of the United States, pursuant to Title 18, United States Code, Section 982(b)(1), incorporating by reference Title 21, United States Code, Section 853(p), to seek forfeiture of any other property of JASON A. HALEK up to the value of said property listed above as being subject to forfeiture. By virtue of the commission of the felony offenses charged in Counts One through Five of this Indictment, any and all interest that JASON A. HALEK has in property constituting, or derived from, proceeds obtained directly or indirectly, as the result of such offenses, is vested in the United States and hereby forfeited to the United States pursuant to Title 18, United States Code, Section 981(a)(1)(C), and Title 28, United States Code, Section 2461(c); In violation of Title 18, United States Code, Section 981(a)(1)(C) and Title 28, United States Code, Section 2461(c). /s/ Christopher C. Myers CHRISTOPHER C. MYERS Acting United States Attorney CWH/jkh A TRUE BILL: /s/ Foreperson Foreperson 28