KY oil well operator fined, sentenced for water pollution

A Kentucky oil well operator has been fined $20,000 after admitting he illegally discharged polluted water into a creek in northeast Kentucky.

The judge also sentenced Joshua Ferguson, of Martha, to serve 12 months on home detention.

The Kentucky Department of Environmental Protection received a tip last fall about brine water from an oil-well site being dumped into a creek known as Left Fork Blaine Creek, which is Lawrence County and ultimately feeds into Yatesville Lake.

Brine water, also called produced water, is a byproduct of oil production.

It can be saltier than seawater and can contain toxic water and radioactive substances, according to a government memorandum in Ferguson’s case.

On Sept. 3, 2025, an inspector found a hose from a brine tank at the site of two oil wells in Lawrence County that led to the creek.

The hose had been buried, but the inspector tracked it and found it was discharging into Left Fork Blaine Creek, according to a plea agreement Ferguson signed.

The water downstream from the discharge was orange and there was no sign of life in the creek.

The inspector talked to Ferguson the next day and he admitted running the hose to the creek to discharge the polluted water.

Ferguson said he had buried the line two years earlier in order to save money on legal disposal costs, according to the court record.

Ferguson, 42, faced up to three years in federal prison for violations of the federal Clean Water Act.

The prosecutor, Assistant U.S. Attorney Emily Greenfield, sought prison time for Ferguson, arguing his offense was serious and continued for an extended period.

“People and companies in this industry must be deterred from polluting to make a profit,” Greenfield said in a sentencing memorandum, referring to the oil and gas industry.

However, Ferguson’s attorney, Stephen W. Owens of Pikeville, said it wasn’t necessary to put Ferguson behind bars.

Owens said Ferguson has worked steadily all his adult life and is well-respected in the community. The federal charge itself was punishment for him, Owens said.

Chief U.S. District Judge David L. Bunning followed the government’s recommendation for a fine of at least $20,000, but did not opt for prison time.

Instead, he placed Ferguson on probation for five years with a year of that on home detention.

Ferguson can leave home for work, church, medical appointments and other approved activities.

Bunning sentenced Ferguson Oct. 13 in federal court in Ashland.