Document o99vMzYeva7Rp7Ez7BOEGMoVX

Region 6 Compliance Assurance and Enforcement Division INSPECTION REPORT Inspection Date(s): Media: Regulatory Program(s) 04/18/2018 Water Brine - CWA Company Name: Facility Name: Facility Physical Location: (city, state, zip code) Mailing address: (city, state, zip code) County/Parish: Facility Contact: Diamond 3S, LLC Kennedy Lease 36.586969N, -96.498093W (NE Sect. 1, T 24N, R 7E) Pawhuska, Oklahoma 74056 20102 West Coyote Trail Sand Springs, Oklahoma 74063 Osage Joel Summers (918) 638-9306 FRS Number: Identification/Permit Number: Media Number: NAICS: SIC: N/A OKU000867 N/A 21111 1311 Personnel participating in inspection: Kent W. Sanborn 6EN-WR Environmental Engineer (918) 557 - 1615 EPA Lead Inspector Signature/Date Supervisor Signature/Date Jeanne Eckhart Digitally signed by Jeanne Eckhart DN: cn=Jeanne Eckhart, o=EPA, ou=6EN-WR, email=eckhart.jeanne@epa.gov, c=US Date: 2018.06.26 12:03:02 -05'00' for Kent W. Sanborn Date GUY TIDMORE Digitally signed by GUY TIDMORE DN: c=US, o=U.S. Government, ou=USEPA, ou=Staff, cn=GUY TIDMORE, dnQualifier=0000012807 Date: 2018.06.26 16:34:05 -05'00' Guy Tidmore 26 JUN 2018 Date 6ENFORM-019-R7 (2/15/2017) 1 Section I - INTRODUCTION Diamond 3S, LLC / Kennedy Lease Inspection Date: 04/18/2018 PURPOSE OF THE INSPECTION EPA Region 6 inspector K.W. Sanborn visited the Diamond 3S, LLC oil and gas facility located at the latitude 36.586969 N and longitude -96.498093 W near Pawhuska, Oklahoma on 04/18/2018 for an unannounced inspection. EPA inspector Rick Davis also participated in the inspection. No representatives of Diamond 3S, LLC were 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 The inspection assessed the Kennedy No. 3 injection well and brine discharge site. Additionally, EPA inspector Rick Davis participated in the inspection. EPA also inspected all injection wells associated with this facility, which was a total of 4 injection wells. Section II - OBSERVATIONS During the inspection, I observed that all the injection wells associated with the Kennedy lease were set up to receive water, except for the Kennedy No. 5 injection well. At the time of the inspection, there was contaminated creek water being pumped down all 3 injection wells. I observed one truck on location picking up contaminated water from the tributary of Daniel's Run Creek at the first temporary dam (near the point of entry). I did not observe signs that attempts to vacuum out contaminated waters downstream along the tributary and in Daniel's Run Creek had been conducted. I observed elevated levels of Total Dissolved Solids (TDS) in the tributary of Daniel's Run Creek. Section III - AREAS OF CONCERN There were still elevated levels of TDS in the tributary and in Daniel's Run Creek. These levels have persisted since the first EPA inspection associated with this spill and remedial efforts to address these TDS levels are minimal. Additionally, EPA observed that contaminated creek water was being injected into the three active injection wells on the Kennedy Lease. Section IV - FOLLOW UP Conduct a follow up inspection as needed. Section V - LIST OF APPENDICES N/A 2