Document 06Zg8BE3Mqn53x906ebdOmMvn

Region 6 - Enforcement & Compliance Assurance Division INSPECTION REPORT Inspection Date(s): Media Program: Regulatory Program(s) 1/15/2020 Water Brine - CWA Company Name: Facility Name: Facility Physical Location: (city, state, zip code) Mailing address: (city, state, zip code) County/Parish: Facility Phone Number Facility Contact: PE - Osage, LLC Breene Unit 36.283035, -96.209448 (NW Sect. 23, T 21N, R 10E) Skiatook, Oklahoma 74070 100 W. Wilshire Blvd, Ste. 201 Oklahoma City, Oklahoma 73116 Osage County 405-613-3331 Roy A. Fletcher raf@pennant-energy.com FRS Number: Identification/Permit Number: Media Identifier Number: NAICS: SIC: N/A OKU000875 N/A 21111 1311 Personnel participating in inspection: Kent W. Sanborn EPA 6 ECDWE Environmental Engineer EPA Lead Inspector Signature/Date Supervisor Signature/Date Kent W. Sanborn Kent W. Sanborn Digitally signed by Kent W. Sanborn DN: cn=Kent W. Sanborn, o, ou=6EN-WR, email=sanborn.kent@epa.gov, c=US Date: 2020.02.19 08:19:10 -06'00' GUY TIDMORE Digitally signed by GUY TIDMORE DN: c=US, o=U.S. Government, ou=Environmental Protection Agency, cn=GUY TIDMORE, 0.9.2342.19200300.100.1.1=68001003655426 Date: 2020.02.28 10:40:51 -06'00' Guy Tidmore Date 28 FEB 2020 Date 6ENFORM-019-8 (10/31/2019) 1 Section I - INTRODUCTION PE - Osage, LLC/ Breene Unit Inspection Date: 01/15/2020 PURPOSE OF THE INSPECTION EPA Region 6 inspector K.W. Sanborn visited the PE - Osage, LLC oil and gas facility located near Hominy, Oklahoma on 01/15/2020 for an unannounced inspection. There were no representatives of PE - Osage, LLC present for the inspection. The inspection was conducted by authority of the Clean Water Act and the Safe Drinking Water Act to determine compliance with the Environmental Protection Agency (EPA) regulations. FACILITY DESCRIPTION This facility is known as the Breene water flood unit. Section II - OBSERVATIONS During the inspection, I observed major pipeline construction happening across the lease and I could not access the creek. With a calibrated YSI Pro 30 conductivity meter, I took Total Dissolved Solids (TDS) readings along the historical flow path, where I observed runoff from a previous produced water spill along the hill near the tank battery. The TDS measured between 5,000 milligrams per liter (mg/L) to 6,000 mg/L. The runoff from the spill site flowed towards the nearby creek which was not accessible due to the construction in the area. I did not observe a secondary containment area at the brine storage portion of the facility during the inspection. The secondary containment walls were inadequate and seeped at the main tank battery. The containment pit was full of fluids at the main tank battery. Section III - AREAS OF CONCERN I observed no containment at the brine storage portion of the facility and there was runoff of fluids from the surface damage flow path that was flowing towards the creek during the inspection. The brine facility did not have a secondary containment area. The main tank battery had a full secondary containment pit with fluids and was leaking during the inspection. Section IV - FOLLOW UP EPA water enforcement will conduct a follow up inspection in approximately one week. Section V - LIST OF APPENDICES N/A 2 6ENFORM-019-8 (10/31/2019)