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AG James and Gov. Hochul announce $2 million penalty against company that unlawfully operated oil wells

Letitia James
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NEW YORK (WKBW) — New York Attorney General Letitia James and Governor Kathy Hochul announced a $2 million judgment in a lawsuit against James R. Lee and his corporate affiliates for unlawfully operating oil wells and endangering communities in Steuben and Cattaraugus counties.

According to the office of the attorney general, this is the largest financial penalty imposed in an oil and gas well case.

The companies involved include:

  • Lee Oil Company, Inc.
  • Whitesville Producing Corporation
  • Whitesville Production Corp.
  • Allegro Oil & Gas Inc.
  • Allegro Investments Corporation

The office of the attorney general said the companies owned or operated hundreds of oil wells in Steuben and Cattaraugus counties and failed to follow environmental laws and properly plug more than 400 of the wells.

As a result of the lawsuit, the penalty will have to be paid and the wells will have to be properly plugged.

“This is a crucial win for our efforts to protect New York’s air and water. These unlawfully operated oil wells threatened drinking water for countless families in the Southern Tier and Western New York and posed significant harms to the environment. This case should make it clear that New York will stand up to anyone that threatens the health of our communities or our natural resources. I am grateful to Governor Hochul, Commissioner Seggos, and our partners at DEC for their partnership in stopping polluters and protecting the people.”
- AG James
“My administration is laser focused on taking decisive action in order to protect drinking water in communities across the state, and the record financial penalty announced today is a major victory for New York. We remain steadfast in our efforts to hold accountable anyone who jeopardizes the health and safety of New Yorkers. I thank Attorney General Letitia James for her partnership in taking action to protect the public health and environment in Steuben and Cattaraugus counties.”
- Gov. Hochul
“This judgment is a significant day of reckoning for Lee and his companies after years of blatant disregard for New York state’s stringent requirements at hundreds of oil well sites in Steuben and Cattaraugus counties. I thank Attorney General James, her team, and my staff for their tireless work to bring this persistent violator to justice. This precedent-setting case demonstrates that New York state will leave no stone unturned in aggressively pursuing polluters and holding them accountable for the damage they wreak on our environment and communities."
- Basil Seggos, Commissioner NYS Dept. of Environmental Conservation