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R.H. Capital-Beets: 112,000 Gallons of Oil Sat Unprotected by a Kansas Waterway

A crude oil company stored over 112,000 gallons of petroleum just 70 feet from a Kansas creek, operated for years across 18 oil leases with zero legally-required spill plans, and watched a real discharge contaminate 200 feet of land toward that waterway before the federal government proposed a fine smaller than what a teacher earns in three years.

Neosho County, KS Crawford County, KS Spill: Feb. 25, 2022 Complaint Filed: Feb. 1, 2024

Clean Water Act Violation Β· Oil Pollution Prevention Β· EPA Region 7

112,000 Gallons of Oil Sat Unprotected by a Kansas Waterway

R.H. Capital-Beets, LLC ran nearly two dozen oil production leases in Kansas without a single legally-required spill prevention plan. Then the oil started moving.


The Non-Financial Ledger

What a Number Can’t Capture

The federal complaint describes a crude oil discharge at the Strauss Lease on February 25, 2022, in Neosho County, Kansas. Kansas Department of Health and Environment and EPA personnel responded that same afternoon. When they arrived, they found contamination stretching 250 feet along a lease road, bleeding onto adjacent properties, and running 200 feet along the roadside ditches that parallel 10 Road, the corridor between the lease and Hickory Creek. That contaminated ditch system flows toward the creek. The creek flows to the Neosho River.

The people who live along that road, who drive it, who use the surrounding land, are not mentioned once in the EPA’s complaint. That omission is itself a document of how environmental enforcement works in America. The legal machinery focuses on the company’s paperwork failures. The surrounding community is reduced to a set of GPS coordinates.

“The discharge impacted 250 feet of the lease road and adjacent properties, and approximately 200 feet of 10 Road and the paralleling roadside ditches between the lease and Hickory Creek.”

β€” EPA Complaint, paragraph 39

Years of Exposure, Not Just One Bad Day

The February 2022 spill did not happen in a vacuum. The EPA inspected both sites on March 2, 2022, one week after the discharge, and documented what they found at the 20th Street Tank Battery Lease: overfills, leaking storage tanks, and oil stains already present in the soil. These were not signs of a single incident. They were evidence of chronic, ongoing seepage that had been accumulating before anyone with a federal badge showed up to look.

The 20th Street Tank Battery Lease sits approximately 70 feet from Hickory Creek. That is less than the length of a standard semi-truck and trailer. There was no secondary containment around the tank battery piping or transfer areas. There was no SPCC Plan. There was no formal written procedure for what to do when something went wrong. The company ran an industrial petroleum operation within sprinting distance of a federally-protected waterway and treated a safety plan as optional.

The Inspection Report They Knew About First

Here is the detail that should make you stop scrolling: the EPA transmitted a copy of the inspection report to R.H. Capital-Beets on or about July 29, 2021, months before the February 2022 spill even happened. The company received formal federal notice that its operations were out of compliance. Then, in February 2022, oil discharged from the Strauss Lease anyway. That is the sequence. Notice first, spill second.

It was not until August 9, 2023, more than a year after the spill and nearly two years after that initial inspection report, that the EPA and R.H. Capital-Beets entered into an Administrative Order on Consent to address noncompliance across 16 of the company’s Kansas leases. The creek sat 70 feet away from an uncontained industrial site the entire time. The land, the water, and anyone downstream absorbed whatever that gap in enforcement cost them.


The Numbers That Tell the Story

70 ft 20th St. Tank Battery to Hickory Creek
1,800 ft Strauss Lease to Hickory Creek
18 Total Kansas Oil Leases Operated

Aboveground Oil Storage Capacity by Site

0 25,000 50,000 75,000 100,000 Gallons (Capacity) 93,870 gal Strauss Lease (1,800 ft from creek) 18,900 gal 20th Street Tank Battery (only 70 ft from creek) COMBINED: 112,770 gal Zero containment Zero SPCC plan

Source: EPA Complaint, paragraphs 28–29. Both sites lacked SPCC Plans and secondary containment at all times relevant to this action.

What the EPA Could Have Fined vs. What It Actually Proposed

$0 $100K $200K $300K Penalty Amount (USD) $288,080 Max. Class II Penalty (authorized by CWA Β§311) $83,063 Proposed Penalty (~3 years median KS wage)

The EPA was authorized to fine R.H. Capital-Beets up to $288,080 under CWA Β§311(b)(6)(A)(ii). The proposed penalty of $83,063 represents roughly 29% of that ceiling. Source: EPA Complaint, paragraphs 17 and 54.



Societal Impact Mapping

Environmental Degradation: A Creek, a River, and the Meaning of “Connected”

Hickory Creek is described in the EPA complaint as “a perennial, continuously flowing stream.” That matters because water moves. It does not stay where it is discharged. The Neosho River, downstream from Hickory Creek, is a traditional navigable water of the United States. The EPA explicitly confirmed that Hickory Creek is “connected to the Neosho River.” When the agency classified Hickory Creek as “a relatively permanent tributary connected to a traditional navigable water,” it was establishing legal jurisdiction. It was also documenting the contamination pathway.

The February 2022 discharge sent crude oil into roadside ditches that run between the Strauss Lease and Hickory Creek. Those ditches are drainage infrastructure. They are designed to move water, which means they are also capable of moving oil. The EPA recovered approximately 250 barrels (10,500 gallons, roughly enough to fill a backyard swimming pool and a half) of contaminated fluids after the spill, but the document does not state that all discharged oil was recovered. It states only that 250 barrels were recovered.

The 20th Street Tank Battery site, which sits just 70 feet from the creek with 18,900 gallons of storage capacity and no containment, had oil stains already visible in the soil at the time of the March 2022 inspection. Those stains are historical. They represent prior, unquantified releases that occurred before anyone showed up with a camera. The land surrounding Hickory Creek absorbed whatever that contamination history produced. The EPA complaint does not state that soil or water quality testing was conducted. If it was, those results are not in this document.

Public Health: Rural Kansas Gets the Residue

Rural Kansas communities along the Neosho River corridor depend on groundwater wells and surface water for agriculture, livestock, and in some cases direct use. Crude oil contamination in soil and waterway systems does not stay on the surface. It migrates into groundwater through absorption. The EPA complaint acknowledged that the violation “leaves a facility unprepared to deal with an oil spill and to prevent a spill from having potentially serious human health and environmental consequences.” The agency used the word “serious.” That word is doing a lot of work in a document that otherwise focuses almost entirely on paperwork compliance.

The absence of an SPCC Plan does not merely represent a regulatory technicality. An SPCC Plan requires a facility to identify the nearest water body, calculate the potential spread of a spill, build physical containment to stop it, and train personnel to respond immediately. At R.H. Capital-Beets’ sites, none of that infrastructure existed. If a large release had occurred at the 20th Street Tank Battery site, there was no written procedure, no physical barrier, and no trained response protocol standing between 18,900 gallons of petroleum and a creek 70 feet away.

Economic Inequality: The Fine That Fits in a Spreadsheet

The EPA proposed a fine of $83,063 ($83,063, roughly what a Kansas school teacher earns across three years of full-time employment, or enough to cover groceries for approximately 20 average families for an entire year). The agency was authorized to go as high as $288,080 ($288,080, equal to roughly six years of a Kansas median household income) under the Class II civil penalty structure. R.H. Capital-Beets, LLC operates approximately 18 oil production leases in Kansas. The cost of preparing and implementing a proper SPCC Plan across those leases would likely have been a fraction of the proposed fine. The company chose not to do it anyway.

The EPA’s penalty calculation explicitly considered “any economic benefit or savings accruing to Respondent resulting from the violations.” This is the agency acknowledging that the company saved money by skipping required safety infrastructure. That savings came at the direct expense of the land, water, and people near these sites. The proposed fine is, by design, meant to eliminate that economic advantage. Whether $83,063 genuinely eliminates the profitability of years of noncompliance across 18 oil leases is a question the document does not answer.


The “Cost of a Life” Metric


What Now?

Leadership on Record

The EPA complaint identifies the named representatives of R.H. Capital-Beets, LLC as Troy Renkenmeyer and Tom Heckman, reached at addresses in Jefferson City, Missouri. The company is a Missouri limited liability company registered to conduct business in Kansas, operating approximately 18 oil production leases in the state.

Regulatory Watchlist

  • EPA Region 7: The agency that filed this complaint and entered into the Administrative Order on Consent. Monitor whether the AOC’s containment construction requirements are completed and verified at all 16 affected leases.
  • Kansas Department of Health and Environment (KDHE): State-level regulator that co-responded to the February 2022 spill. Has independent authority to investigate and act on water and soil contamination in Kansas.
  • EPA National SPCC Program: Tracks compliance with Spill Prevention, Control, and Countermeasure regulations nationwide. The agency publicly posts enforcement actions; this company’s record is part of that data set.
  • Kansas Corporation Commission: Regulates oil and gas production operations in Kansas. Has authority over the operational conduct of the leases R.H. Capital-Beets operates across Crawford and Neosho counties.
  • EPA ECHO Database (Enforcement and Compliance History Online): A publicly searchable federal database where anyone can look up a facility’s compliance history, violations, and enforcement actions by name or location.

The Administrative Order on Consent: What to Watch For

The August 2023 Administrative Order on Consent requires R.H. Capital-Beets to construct sized containment at all 16 leases covered by the agreement. That construction has been ordered but its completion has not been independently verified in this document. Residents near these leases, along Hickory Creek, and downstream on the Neosho River have the right to submit public comments on any proposed penalty assessment under Section 311(b)(6)(C) of the Clean Water Act. The EPA is legally obligated to consider those comments.

Get loud locally. Neosho County and Crawford County residents can contact KDHE directly to request site inspection records and water quality data near the affected leases. Environmental justice organizations in rural Kansas, mutual aid networks, and local watershed groups have standing to engage this process. You do not need a lawyer to submit a public comment to the EPA. You need a name, an address, and the docket number from the complaint. The people living 70 feet from a creek that an oil company treated as a free dumping buffer deserve more than a $83,063 line item in a federal spreadsheet.


The source document for this investigation is attached below.

The EPA has a link right here if you want to see the final order: https://yosemite.epa.gov/oa/rhc/epaadmin.nsf/Filings/7A1DACE8FD28BD9085258CBA006ECF4B/$File/RH%20Capital%20Beets%20Consent%20Agreement%20and%20Final%20Order.pdf

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Aleeia
Aleeia

I'm Aleeia, the creator of this website.

I have 6+ years of experience as an independent researcher covering corporate misconduct, sourced from legal documents, regulatory filings, and professional legal databases.

My background includes a Supply Chain Management degree from Michigan State University's Eli Broad College of Business, and years working inside the industries I now cover.

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