Document b1ERBgRpXKr6yKLbKkDrqaRD

Region 6 - Enforcement & Compliance Assurance Division INSPECTION REPORT Inspection Date(s): Media Program: Regulatory Program(s) 4/3/24 Water (CWA) Water (CWA) Brine Program (Oil & Gas inspection) Company Name: Facility Name: Facility Physical Location: (city, state, zip code) Mailing address: (city, state, zip code) County/Parish: Facility Phone Number Facility Contact: Nevada Oil, LLC Hadley "A" Lease, Wells 1 & 2 Tank Battery From Highway 82 East, thence Sandy Bend Rd, thence Parker Loop, off an oil field lease road at 33.166000, -92.404600. Urbana, AR 71730 451 North Washington El Dorado, AR 71730 Union County 870-862-9950 Michael L. Burns (870-310- Person Responsible for Operation 1501) hrowan@ecgcpa.com FRS Number: Identification/Permit Number: Media Identifier Number: NAICS: SIC: N/A ARU002243 N/A 211111 1311 Personnel participating in inspection: Kerri McCabe (lead) EPA / Region 6 ECDW Inspector / Enforcement Officer EPA Lead Inspector Signature/Date Supervisor Signature/Date KERRI MCCABE Kerri McCabe Digitally signed by KERRI MCCABE Date: 2024.05.16 12:00:50 -05'00' Date JEANNE ECKHART Date: 2024.05.16 12:37:02 -05'00' Digitally signed by JEANNE ECKHART Jeanne Eckhart Date 6ENFORM-019-R8.2 (02/12/2020) 1 Nevada Oil, LLC / Hadley "A" Lease, Wells 1 & 2 Tank Battery (ARU002243 / CWA) Inspection Date 04/03/2024 Section I - INTRODUCTION PURPOSE OF THE INSPECTION EPA Region 6 Inspector Kerri McCabe (lead) arrived at the Nevada Oil, LLC / Hadley "A" Lease, Wells 1 & 2 Tank Battery, located from Highway 82 East, thence Sandy Bend Rd, thence Parker Loop, off an oil field lease road at 33.166000, -92.404600; at 0859 on 4/3/24 for an unannounced inspection. No facility representatives were present at the time of the inspection. The inspection was conducted by the authority of the Clean Water Act (CWA) to determine compliance with Environmental Protection Agency (EPA) regulations. There were no other federal, state, or local agency representatives present at the time of the inspection. FACILITY DESCRIPTION EPA conducted an inspection on the Nevada Oil, LLC / Hadley "A" Lease, Wells 1 & 2 Tank Battery, which contains one (1) oil-water separator, two (2) storage tanks, and one (1) crude oil production well. Section II - OBSERVATIONS I observed the facility sign, secondary containment, oil-water separator, pipes and valves, storage tanks, and the production well located at the facility; see Appendix 1 (Photographs Log), Photo No. 1 and No. 2. For additional GPS location and photo metadata, see Appendix 1. I observed a transfer pipe from secondary containment with no cap on the pipe and an open catch bucket; loose oil was observed around the catch bucket; see Photo No. 3. I observed a pipe through secondary containment without a shutoff valve or a cap; the purpose of the pipe is unknown; see Photo No. 4. I observed the drainpipe for secondary containment without a shutoff valve or a cap, see Photo No. 5 and No. 6. I observed the storage tanks to be corroded with one tank with holes in the material; no "out of serve" label on the tank; see Photo No. 7. I observed the production well located onsite with loose oil around the well, see Photo No. 8. Section III - AREAS OF CONCERN No closing conference was held due to no personnel with Nevada Oil, LLC being present during the inspection. Areas of concern at the time of the inspection include the transfer pipe through secondary containment with no cap, a pipe through secondary containment without a shutoff valve or cap, loose 2 Nevada Oil, LLC / Hadley "A" Lease, Wells 1 & 2 Tank Battery (ARU002243 / CWA) Inspection Date 04/03/2024 oil around the transfer pipe and production oil, the drainpipe for secondary containment with no shutoff valve or cap, and corroded storage tanks inside the secondary containment. Section IV - FOLLOW UP Inspector will conduct follow-up phone calls with the company representative(s) over the coming weeks and months to ensure areas of concern are properly addressed. This report was originally emailed to Craig Bonsall, 3 G Energy, LLC; based on signage at the facility and well information from https://wellfinder.net/browse-wells. This report has been revised to reflect the current operator. Location confirmed by AOGC personnel on 5/16/2024. Section V - LIST OF APPENDICES Appendix 1 - Photograph Log - 8 photos taken 4/3/24. 3 Nevada Oil, LLC / Hadley "A" Lease, Wells 1 & 2 Tank Battery (ARU002243 / CWA) Inspection Date 04/03/2024 Appendix 1 Photograph Log 8 Photos UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 1 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020055 Orientation: E-SE Date of Photo: 04/03/2024 Time of Photo: 0929 Latitude: 33.165815 Longitude: -92.404238 Photographer: Kerri McCabe Description: Looking E-SE, this photo showed the signage at the facility. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 2 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020056 Orientation: E-SE Date of Photo: 04/03/2024 Time of Photo: 0930 Latitude: 33.165815 Longitude: -92.404238 Photographer: Kerri McCabe Description: Looking E-SE, this photo showed the overview of the facility. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 3 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020057 Orientation: E-SE Date of Photo: 04/03/2024 Time of Photo: 0930 Latitude: 33.165898 Longitude: -92.404388 Photographer: Kerri McCabe Description: Looking E-SE, this photo showed an open catch bucket at the transfer pipe through secondary containment with loose oil outside on the ground. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 4 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020058 Orientation: E-SE Date of Photo: 04/03/2024 Time of Photo: 0930 Latitude: 33.165898 Longitude: -92.404388 Photographer: Kerri McCabe Description: Looking E-SE, this photo showed a pipe through the secondary containment without a cap. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 5 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020059 Orientation: S-SE Date of Photo: 04/03/2024 Time of Photo: 0930 Latitude: 33.165883 Longitude: -92.404396 Photographer: Kerri McCabe Description: Looking S-SE, this photo showed the drainpipe for the secondary containment with a cap on the pipe; I noted saltwater staining in the standing water at the drainpipe. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 6 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020060 Orientation: S Date of Photo: 04/03/2024 Time of Photo: 0931 Latitude: 33.165883 Longitude: -92.404396 Photographer: Kerri McCabe Description: Looking S, this photo showed standing water inside the secondary containment that would be drained via the drainpipe through the firewall. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 7 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020061 Orientation: E-NE Date of Photo: 04/03/2024 Time of Photo: 0931 Latitude: 33.165389 Longitude: -92.403106 Photographer: Kerri McCabe Description: Looking E-NE, this photo showed a storage tank with numerous holes that is not being utilized and it is not labeled "out of service." UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Photograph Log Photo No. 8 Location: Nevada Oil, LLC - Hadley "A" Lease, Wells 1 & 2 Tank Battery from Sandy Bend Rd off Parker Loop at 33.166000, -92.404600. City: Urbana County/Parish: Union State: Arkansas Photo File Name: P4020062 Orientation: NW Date of Photo: 04/03/2024 Time of Photo: 0932 Latitude: 33.165807 Longitude: -92.404027 Photographer: Kerri McCabe Description: Looking NW, this photo showed a production well onsite with some residual loose oil on the ground.