January 20, 2012 Becky Keogh BHP Billiton Petroleum (Fayetteville), LLC PO Box 1412 Searcy, AR 72145 RE: AFIN: 23-01034 WELL NAME: Trammel 7-13, #1-8 SWDW PERMIT NO.: 0742-WG-SW-1 COUNTY: Faulkner Co. Ms. Keogh: On January 17, 2012 I performed a routine compliance inspection of the surface facilities associated with a disposal system for injection of saltwater & other oil/gas wastes in accordance with the provisions of the Arkansas Water and Air Pollution Control Act, and the regulations promulgated thereunder. At the time of the inspection, no violations were observed. Please be advised, per Part III, Section A.1.e. of your general permit# 0000-WG-SW, Operators of SWD facilities covered by the general permit that modify permitted facilities as described in Part III, Section A.1.a-d shall be in violation of this general permit & subject to appropriate enforcement action by the Director (Part III, Section A.1.c., an increase or decrease in the above-ground storage capacity). The facility no longer has above-ground storage containers. The injection well is P/A per AOGC Form 12 (Record of Plugging), and the facility is no longer in operation. The most recent modification to the general permit was submitted for the transfer of Permit# 0742-WG-SW from Chesapeake Energy to BHP Billiton Petroleum (Fayetteville), LLC (resulting in Permit# 0742-WG-SW-1). There is no paperwork on file submitted for the removal of the above-ground storage for Trammel 7-13, #1-8 SWDW. Failure to attend to this matter in a timely manner could result in enforcement action. Please refer to the “comments” section of the inspection form for any notes regarding any “areas of concern” that may have been observed at the above referenced site. Furthermore, I have contacted Rick Spicer by phone in regards to any potential issues concerning this site. If I can be of any further assistance, please contact me at 501-683-2789 or via email at [email protected] Thank you for your time, Kerri McCabe Oil & Gas Field Inspector Water Division 501-683-2789 [email protected] cc: Water Division Enforcement Branch Water Division Permits Branch Rick Spicer, BHPB Senior Environmental Specialist, [email protected] AFIN: 23-01092 ADEQ Water Industrial No Discharge Permit #: 0781-WG-SW-1 ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY NO DISCHARGE INDUSTRIAL PERMIT INSPECTION FORM AFIN: Log No.: 23-01034 Permit No.: 0742-WG-SW-1 (AOGC# 41079) Media: WATER Inspection Date: Inspector: Compliance Status: January 17, 2012 Kerri McCabe IN / OUT 1A. Name of Facility: Trammel 7-13, #1-8 SWDW Address: Lat: 35.264543; Long: -92.411544 County: Faulkner Co. 2A. Name of On-Site Representative: No one onsite; facility no longer in operation. 3A. Name of Responsible Official: Rod Skaufel BHP Billiton Petroleum (Fayetteville), LLC 1360 Post Oak Blvd, Suite 150 Address: Houston, TX 77056-3030 Telephone: 713-961-8500 Parent Company: Address: Telephone: 4A. N/A 5A. Description of Process (including type of industry, materials produced, and major byFacility stores/filters produced waters from other BHPB drilling/production sites in the area & the filtered fluids are then products): injected into the well. 6A. Any complaints registered against this permitted facility? If yes, give date and description of complaint: 7A. Are there any additions, modifications, or corrections to the facility since the last inspection? Yes No Since the last inspection (June 27, 2011), BHPB has removed the above-ground storage from the facility. The facility is no longer in If yes, explain: operation, and the injection well has been plugged. Yes No No Discharge Industrial Report Page 2 ADEQ Water Industrial No Discharge AFIN: 23-01092 Permit #: 0781-WG-SW-1 1B. Furnish a simplified flow diagram of the treatment system and include main components, flow sequence through plant, and calculated or estimated flows. 2B. Nearest Stream: 3B. Does wastewater from this facility cause adverse effect on the waters of the State: Yes No If yes, describe: Unnamed, perennial tributary of Greenbrier Creek Discharge of any saltwater or other oil/gas field wastes, including contaminated precipitation runoff, to the land or waters of the State is prohibited at all times. NO wastewater is discharged from the site. 4B. Are operating records kept as required by permit? Yes If no, explain: The facility is no longer operating. No N/A 5B. Are maintenance records kept as required by permit? If no, explain: Yes No N/A 6B. Are Samples routinely taken? Yes No N/A 7B. Does the sampling program meet the requirements of the permit? Yes No If no, explain: The facility is no longer operating. 8B. What laboratory does the facility use? Address: N/A Telephone: No Discharge Industrial Report Page 3 ADEQ Water Industrial No Discharge AFIN: 23-01092 Permit #: 0781-WG-SW-1 1C. Do laboratory procedures and records meet the requirements of the permit? Yes No N/A If no, explain: The facility is no longer operating. 2C. Yes Is contaminated runoff a problem? If yes, explain: The facility is no longer operating. No N/A 3C. Is sludge disposal required? If yes, describe (including final destination): Yes No N/A 4C. Is the treatment system being properly operated and maintained as required by permit? Yes No N/A If no, explain The facility is no longer operating. SUMMARY OF FINDINGS/COMMENTS The site is a non-commercial site & only injects produced waters from BHPB drilling & production sites. However, the facility is no longer in operation. The Operator has removed all above-ground storage associated with the disposal system (injection well). The last modification submitted for 0742-WG-SW-1 was for the transfer of Permit# 0742-WG-SW from Chesapeake Energy to BHP Billiton Petroleum (Fayetteville), LLC. There has been no paperwork submitted to ADEQ for the decrease in above-ground storage (i.e., NOI modification &/or NOT). The injection well is plugged (per AOGC Form 12). The secondary containment (concrete berms & receiving pit) remains onsite, and the plugged well is identified by a “P/A Well Below” sign. The receiving pit contains fluid that is below the required freeboard limit. No personnel were onsite during the inspection; however, the facility’s entrance is barricaded & shares a lease road with two BHPB production pads (Hardy & Hammett), which has a lockable gate. I could not evaluate any records associated with this facility (not located onsite). The above-ground storage has been moved to BHPB’s SRE 8-12, #1-17 SWDW facility located in Guy, AR. Inspector Signature: Date of Report: January 20, 2012 Signature of Reviewer: Date of Review: February 2, 2012 No Discharge Industrial Report Page 4 ADEQ Water Industrial No Discharge AFIN: 23-01092 Permit #: 0781-WG-SW-1 Water Division No Discharge Industrial Photographic Evidence Sheet Location: Trammel 7-13, #1-8D SWD from Hwy 65 about 2.5 miles NxNW of Greenbrier, AR Photographer: Photo # 1 Kerri McCabe Of 3 Description: Plugged injection well Photographer: Kerri McCabe Photo # Description: 2 Of 3 Witness: Date: none 01-17-12 Witness: none Date: 01-17-12 Time: Time: 1403 1405 Secondary containment of above-ground storage; removed from site No Discharge Industrial Report Page 5 ADEQ Water Industrial No Discharge AFIN: 23-01092 Permit #: 0781-WG-SW-1 Water Division No Discharge Industrial Photographic Evidence Sheet Location: Trammel 7-13, #1-8D SWD from Hwy 65 about 2.5 miles NxNW of Greenbrier, AR Photographer: Photo # Description: 3 Kerri McCabe Of 3 Witness: Date: none 01-17-12 Time: 1404 Receiving pit contains fluid; below required freeboard level No Discharge Industrial Report Page 6 ADEQ Water Industrial No Discharge AFIN: 23-01092 Permit #: 0781-WG-SW-1 Oil & Gas Violation Summary Sheet No Violations Noted Placing Waste Permitting Issues Spills & Leaks Turbidity (Regulation #2 Violations) Stormwater/Erosion Issues Notification/Reporting Violations Unpermitted Discharges Record Keeping/Paperwork Violations Trash/Unauthorized Fluids in Pits Improper Closure of Pit Insufficient Freeboard Poor Pit Construction Other (Describe): No Discharge Industrial Report Page 7
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