Document LJzq796x0X1GO33yGX7OykyQ3

Region 6 Compliance Assurance and Enforcement Division INSPECTION REPORT Inspection Date(s): Media: Regulatory Program(s) rc. Company Name: Facility Name: Facility Physical location: (city, state, zip code) Mailing address: (city, state, zip code) County/Parish: Facility Contact: 08/28/2014 Water CWA308 Energy Production Company Schneider Buda Unit lease Approximately 1 mile northeast of CR2655 (32.680275, -95.390891) Mineola, TX, 75773 12221 Merit Drive, Suite 1200 Dallas, TX 75251 Wood Stephen Fusselman I Operations Engineer Stephen.fusselman@epcousa.com FRS Number: Identification/Permit Number: Media Number: NAICS: SIC: NA NA TXU011029 21111 1311 Facility Representatives: EPA Inspectors: Stephen Fusselman Matt Wilson Daniel O'Chery Daniel Johns Matthew Rudolph Operations Engineer Field Foreman Contractor- HSE Contractor- Titanium 6EN-WR 214-592-5479 913-424-1906 NA 903-234-8443 214-665-6434 State lnspector(s): Other lnspector(s): -"' Title: ""0' Author: ;":;' Subject: :;; Keywords: EPA lead Inspector Signature/Date Supervisor Signature/Date NA NA Energy Production Company Schneider Buda Unit lease Wood County Texas US EPA Region 6 Compliance Assurance and Enforcement Division Dallas TX Inspection Report Clean Water Act (CWA) Br_ine Discharge Region 6 Brine Produced Water Oil and Gas CWA ;) A ?r:,~..t~_..,/ A(:._.,..er/"y ~ Matthew Rudolph if -- /{)/;; r/;;;;;# Date Johnsey, Paulette Paulette Johnsey '9' a Y"9""' Y '' ny, au o o 'tP ON' <nuJohnley. P"'Ml\e, ""'''ii~John<oy.P.,ulel\000' pa gov ~~14~~.-..J<\;J ' Date Energy Production Company/Schneider Buda Unit Lease Inspection Date 08/28/2014 Section I -INTRODUCTION PURPOSE OF THE INSPECTION EPA Region 6 inspector Matt Rudolph arrived at Energy Production Company/Schneider Buda Unit Lease at 11:00 am for an inspection. I presented my credentials to Matt Wilson and informed him that the EPA is conducting an inspection under the Clean Water Act (CWA). During the inspection I met with the following individuals: FACILITY DESCRIPTION An injection line (injection line) that transports produced water to two oil and gas leases known as the Schneider Bud a Unit Lease and the Sasi Unit Lease (leases), ruptured discharging produced water and crude oil. Both of these leases are located in Wood Co. Texas. The leases consists of production wells, injection wells, vessels, flow lines and other equipment used for the production of crude oil. Production wells produce a mixture of produced water and crude oil. Flow lines are used to transport produced fluids to a tank battery. The tank battery separates the oil from the water. Brine waste is temporarily stored and then sent through lines to a disposal wells. Oil is stored in tanks at the tank battery and then sold for profit at a later time. Both of the leases have one injection well which dispose of the produced water that is transported in the injection line which previously ruptured. The Schneider Buda Unit Lease disposes of approximately 8,500 barrels of produced water a day and the Sasi Unit Lease disposes of approximately 1,500 barrels of produced water a day from the injection line. Section II- OBSERVATIONS I observed a pond to have been contaminated from both produced water and crude oil from the injection line which previously ruptured. The injection line is located under the pond. The pond is located on a tributary of Rock Falls Creek which outfalls to Shapps Lake which is also located on the tributary of Rock Falls Creek. During the inspection I determined the salinity of fluids with an YSI 30 meter at the following locations: fluids located in pond near its outfall at 32.680303', -95.390813' measured 1,100 ppm TSS; fluids located on flow path down gradient of pond at 32.680255', -95.390436' measured 200 ppm TSS; and, fluids located in Shapps Lake down gradient of pond at 32.680243',95.389982' measured 200 ppm TSS. Section Ill- AREAS OF CONCERN High salinity and crude oil was observed in the pond. Section IV- FOLLOW UP None. Section V- LIST OF APPENDICES Appendix 1- Photos 2 Appendix 1 -Photos Photo File Name: Photo 1 Date of Photo: 8/28/2014 Time of Photo: 11:19 am Photographer: Matt Rudolph Description: Photo take to the north. This pond was effected from a produced water discharge. Standing at N32.680275' and W95.390891'. The arrow is pointing to the approximate location of where a produced water injection line ruptured discharging produced water and crude oil. Photo File Name: Photo 2 Date of Photo: 8/28/2014 Time of Photo: 11:20 am Photographer: Matt Rudolph Description: Photo taken to the northeast. I am standing at the same appoximate location as previous photo. Red arrow points to a dam built on the ponds outfall where a beaver dam was previously located here. Photo File Name: Photo 3 Date of Photo: 8/28/2014 Time of Photo: 11:31 am Photographer: Matt Rudolph Description: Photo taken to the west. I am standing on the dam built on the pond's outfall (dam). Fluids located here at N32.680303' and W9.390813' measured 1,100 ppm TSS. Photo File Name: Photo 4 Date of Photo: 8/28/2014 Time of Photo: 11:32 am Photographer: Matt Rudolph Description: Photo taken to the west. I am standing at the same approximate location as the previous photo. YSI meter showing the 1,100 ppm TSS. Photo File Name: Photo 5 Date of Photo: 8/28/2014 Time of Photo: 11:34 am Photographer: Matt Rudolph Description: Photo taken to the southeast. I am standing on dam looking downgradient at the flow path from the pond's outfall (flow path). Photo File Name: Photo 6 Date of Photo: 8/28/2014 Time of Photo: 11:40 am Photographer: Matt Rudolph Description: Photo taken to the southeast. I am standing on lease road. The is another dam built on flow path. Photo File Name: Photo 7 Date of Photo: 8/28/2014 Time of Photo: 11:43 am Photographer: Matt Rudolph Description: Photo taken to the east. I am staninding on lease road looking at flow path. Shapps Lake is located just beyond the trees in the photos upper right. Photo File Name: Photo 8 Date of Photo: 8/28/2014 Time of Photo: 11:49 am Photographer: Matt Rudolph Description: Photo taken to the south. Fluids located on flow path at N32.680255' and W95.390436' measured 200 ppm TSS. Photo File Name: Photo 9 Date of Photo: 8/28/2014 Time of Photo: 11:56 am Photographer: Matt Rudolph Description: Photo taken to the west. I am standing with Shapps Lake to my back looking back at the pond's outfall flow path. Photo File Name: Photo 10 Date of Photo: 8/28/2014 Time of Photo: 12:11 pm Photographer: Matt Rudolph Description: Photo taken to the south. I am standing at N32.680243' and W95.389982' looking at Shapps Lake. Fluids located here measured 200 ppm TSS. Photo File Name: Photo 11 Date of Photo: 8/28/2014 Time of Photo: 12:12 pm Photographer: Matt Rudolph Description: Photo taken to the south. I am standing at the same approximate location as the previous photo. Meter showing the 200 ppm TSS.