Document vyB4w40roEJzyEQn8DvYDjR9Z

Region 6 - Enforcement & Compliance Assurance Division INSPECTION REPORT Inspection Date(s): Media Program: Regulatory Program(s) 1/27/2020 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 08:20:31 -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 10:41:45 -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: 01/27/2020 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 01/27/2020 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 I observed that there was not containment around the brine storage tank and the brine pump during the inspection. The main tank battery was full of fluids and those fluids were seeping out on the west side of the secondary containment during the inspection. With a calibrated YSI Pro 30 Conductivity meter, I took a Total Dissolved Solids (TDS) reading from the seeping fluids and measured 2,500 milligrams per liter (mg/L) to 5,500 mg/L at the seepage. The fluids flowed down a path where surface damage was evident. With the conductivity meter, I took readings along the flow path of these seeping fluids that ranged from 2,600 mg/L to 4,600 mg/L. Section III - AREAS OF CONCERN There were fluids in the secondary containment area of the main tank battery during the inspection. And the secondary containment berms were seeping. Elevated levels of TDS were observed outside the containment area and flowing towards a nearby creek. The brine storage portion of the facility did not have a secondary containment. Section IV - FOLLOW UP EPA water enforcement will conduct a follow up inspection in approximately 1 month. Section V - LIST OF APPENDICES N/A 2 6ENFORM-019-8 (10/31/2019)