Violations BALLEW 1-22H

ADEQDetails for Inspec�on Number 064649

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Inspec�on Date: 02/29/2012

File List: 064649-insp.pdf (/&proot/Pub/WebDatabases/Inspec�onsOnline/064649-

insp.pdf)

AFIN: 1200000

Permit Number:

Media: WS - Water-SPB

Name: XTO Energy, Inc.

County: Cleburne

Address: Ballew #1-22H

210 Park Ave., Suite 2350

Oklahoma City, OK 73102

Site Phone Number:

La�tude:

Longitude:

Faye7eville Shale Related: Y

Faye7eville Shale Viola�ons: Y

First Le7er Date: 03/26/2012

Second Le7er Date:

Third Le7er Date:

Response Due Date: 04/06/2012

Response Received Date:

ERC Event Number:

Ac�on Case ID:

Ac�on Case Name:

Ac�on LIS Number:

Inspec�on Reason: Scheduled

Inspec�on Status: Completed

Inspec�on Type: Compliance

Compliance Status: Out of Compliance

Total Inspec�on Score:

ADEQ - Inspection Details | ADEQ http://www.adeq.state.ar.us/complaints/searches/p_inspections.aspx?Com...

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Concerns Comment: Ballew #1-22H I found the following viola�ons: Regula�on 34.202 (A), which

states, "Owners or Operators of all pits constructed during the drilling, comple�on,

or tes�ng of an oil, gas, or oil & gas produc�on well, [brine produc�on & injec�on

wells], Class II Disposal Well, Class II Commercial Disposal Well shall be deemed to

have a permit by rule pursuant to Ark. Code Ann. §8-4-203(1), for the construc�on,

opera�on, and closure of any pits covered under this Regula�on if the Owner or

Operator is in full compliance with Rule B-17, as adopted by the Arkansas Oil &

Gas Commission (AOGC) on October 28, 2010." The Operator has filed No�ces of

Termina�on for ADEQ's General Permits 00000-WG-P; however, the Operator has

not submi7ed AOGC's Form 2A & Form 2B for reserve pits constructed/closed

under the General Permit as required by AOGC Rule B-17 (d) "Commencement of

Construc�on Opera�ons" & (h)(1)(F)(7) "Fluid Disposal & Earthen Pit Closure

Requirements for Water-based Drilling Fluid & Encountered Water." The

informa�on provided on these forms (i.e., loca�on of pit, Fluid Reuse, etc.) is vital

to joint inspec�ons conducted by ADEQ & AOGC.


2 of 2 3/16/2015 9:30 PM

March 26, 2012 Juanita Pollock XTO Energy, Inc. 210 Park Ave., Suite 2350 Oklahoma City, OK 73102 RE: AFIN: 12-00000; Permit by AOGC’s Rule B-17 (no AOGC Form 2A on file) Well Site: Ballew #1-22H; Cleburne Co.

Ms. Pollock: On February 29, 2012 I performed an inspection of the above referenced drilling site in accordance with the provisions of the Arkansas Water and Air Pollution Control Act and the regulations promulgated thereunder. At the time of the investigation, it has been revealed that you are in violation of the Arkansas Water & Air Pollution Control Act, the federal Clean Water Act and the regulations promulgated thereunder. Specifically, I found the following violations: Regulation 34.202 (A), which states, “Owners or Operators of all pits constructed during the drilling, completion, or testing of an oil, gas, or oil & gas production well, [brine production & injection wells], Class II Disposal Well, Class II Commercial Disposal Well shall be deemed to have a permit by rule pursuant to Ark. Code Ann. §8-4-203(1), for the construction, operation, and closure of any pits covered under this Regulation if the Owner or Operator is in full compliance with Rule B-17, as adopted by the Arkansas Oil & Gas Commission (AOGC) on October 28, 2010.” The Operator has filed Notices of Termination for ADEQ’s General Permits 00000-WG-P; however, the Operator has not submitted AOGC’s Form 2A & Form 2B for reserve pits constructed/closed under the General Permit as required by AOGC Rule B-17 (d) “Commencement of Construction Operations” & (h)(1)(F)(7) “Fluid Disposal & Earthen Pit Closure Requirements for Water-based Drilling Fluid & Encountered Water.” The information provided on these forms (i.e., location of pit, Fluid Reuse, etc.) is vital to joint inspections conducted by ADEQ & AOGC. The above item requires your immediate attention. Please submit a written response to these findings to the Water Division Enforcement Branch Manager. This response should be mailed to the address provided in the footer of this letter, or e-mailed to [email protected] This response should contain documentation describing the course of action taken to correct each item noted. This corrective action should be completed as soon as possible, and the written response with all necessary documentations (i.e. photos) is due by April 6, 2012.

mailto:[email protected]

If I can be of any further assistance, please contact me at 501-683-2789 or via email at [email protected] Thank you for your time,

Kerri McCabe Oil & Gas Field Inspector Water Division 501-683-2789 [email protected] cc: Water Division Enforcement Branch Water Division Permits Branch Bo Smith, AOGC Inspection Supervisor, [email protected] Andrea Brooke Shaw, XTO EH & S Coordinator, [email protected]





ADEQ O&G Pit Inspection Form

Date of Inspection: February 29, 2012 Inspector: Kerri McCabe

Operator: XTO Energy, Inc. Drilling Contractor: N/A

Coordinates: Lat 35.402597; Long -91.950697 Drilling Pad Name & #: Ballew #1-22H

State Permit #: 02122-WG-P (voided) Onsite Contact Person: N/A Phone #: 501-887-4126 (Brooke Shaw)

DETAILS: Section, Township (N), Range (W) County: Cleburne Co. 22, 9N, 9W AFIN: 12-00000

Stage of Well Development: Construction of Pad Conductor Air/Gas Drilling Spud State

Water-Base Mud Drilling Oil-Base Mud Drilling Well Completion Well Finished N/A

SECTION A: Drilling Pad & Lease Road

1. Is there evidence of sediment runoff from the drilling pad or well site observed in waters of the state? Y N NA NE

2. At the time of inspection, was there any evidence observed of Reg. 2 turbidity standards being exceeded? Y N NA NE

3. Has the Operator implemented erosion & sediment controls in place to minimize sediment runoff from occurring? Y N NA NE

4. Has Operator prepared a storm water erosion & sediment control plan or guidance document? Note: XTO has provided ADEQ with RAPPS Y N NA NE 5. Does it appear that the erosion & sediment controls are being maintained in good operating condition? Note: permanent & temporary BMPs in place; recent gathering construction Y N NA NE

6. At the time of the inspection, was there evidence that the site had any oil/fluid spills? Y N NA NE

a. If so, were the spills properly contained, cleaned & disposed of? Y N NA NE

b. Has the spill been reported to ADEQ? Y N NA NE

7. Did any rerouting, filling or channelization of any “water of the state” occur during drilling pad or lease road construction? Note: nearest waterbody is an unnamed, intermittent tributary (Waterfall Hollow) to Big Creek Y N NA NE

a. If so, was proper authorization received? Y N NA NE

b. Is there evidence of any Reg. 2 violations due to construction of the drilling pad or lease road? Y N NA NE

8. Does it appear that chemicals used during the drilling process & after well completion are being stored onsite properly? Note: permanent, lined berms & plastic troughs Y N NA NE

SECTION B: Pits & Drilling Fluids

1. At the time of the inspection, was the pit or pits covered under an active permit? Note: OPEN reserve pit onsite; NO AOGC Form 2A Y N NA NE

2. At the time of the inspection, did it appear the pit or pits meet the construction requirements as required in the permit Part II, Section A., #1? Y N NA NE

3. If containers are used for circulation pits or mud pits, are they being maintained in a leak–free state? Note: not actively drilling Y N NA NE 4. At the time of inspection, is there any evidence that the pit or pits were not constructed with the appropriate liner (i.e., 20mm synthetic liner, compacted-clay liner &/or bentonite liner)? Y N NA NE

5. At the time of inspection, is there any evidence that the reserve pit or pits are not structurally sound? (i.e., cracks/holes in levees &/or tears/holes in liners)? Y N NA NE

6. Is there any indication that seepage is coming from the drilling pad or pit? Y N NA NE 7. At the time of the inspection, was there any evidence that pit fluids had been discharged onto the ground or into waters of the state from the pit or from drilling pad? Note: cuttings outside reserve pit on production pad side Y N NA NE

a. If so, has the discharge been reported? Y N NA NE

b. Has the fluid been properly contained, cleaned up, sampled & disposed of? Y N NA NE

8. Is a 2ft-minimum freeboard being maintained in the pit? Y N NA NE

9. At the time of inspection, is there any evidence noted that the pit contained unapproved fluids or materials (i.e., waste oil, hydraulic or completion fluids, trash &/or any Nonhazardous Oilfield Waste)? Y N NA NE

10. According to the onsite contact person how & where are fluids disposed? N/A

a. Carrier: not indicated on the Statement of Disposition &/or NOT

b. Destination: not indicated on the Statement of Disposition &/or NOT

c. Type of Disposal: not indicated on the Statement of Disposition &/or NOT

SECTION C : Closed-out Water-Based Drilling Fluids Pit

Date well(s) was finished: Nov. 20, 2011 (well #1)

1. Have all drilling fluids &/or solids been removed from the reserve pit Y N NA NE

2. Does it appear that the pit has been properly closed and seeded? Y N NA NE

3. Has the Operator submitted a completed Statement of Disposition & NOT within 90 days of closure of the pit? Note: NOT submitted Dec. 12, 2011 for General Permit# 02122-WG-P; Operator has not submitted AOGC Form 2A Y N NA NE

Comments: There is an OPEN pit onsite. BMPs are in place & being maintained. Vegetation is establishing in most areas surrounding the production pad. Recent gathering work has disturbed soil along the pipeline Right of Way (BMPs along the ROW as well). No erosion issues were noted during the inspection. Cuttings are outside the reserve pit on the production pad side as well as some small oil-based spills on the production pad. The Operator has submitted the NOT for General Permit# 02122-WG-P; however, an AOGC Form 2A has not been filed for this OPEN reserve pit.

PDS #064649

Inspector: Kerri McCabe Arkansas Department of Environmental Quality Date Report: March 5, 2012

© DW 72008 Arkansas Dept. Environmental Quality

Arkansas Department of Environmental Quality (ADEQ)

Official Photograph Sheet

Location: Ballew #1-22H from Hwy 16 off Price Ford Rd about 6.6 miles WxSW of

Pangburn, AR

Photographer: Kerri McCabe Witness: none

Photo # 1 Of 2 Date: 02-29-12 Time: 1122

Description: Site identification

Photographer: Kerri McCabe Witness: none


Description: OPEN reserve pit; NO AOGC Form 2A

Oil & Gas Violation Summary Sheet

No Violations Noted

Placing Waste

Permitting Issues

Spills & Leaks

Turbidity (Regulation #2 Violations)

Stormwater/Erosion Issues

Notification/Reporting Violations

Unpermitted Discharges

Record Keeping/Paperwork Violations

Trash/Unauthorized Fluids in Pits

Improper Closure of Pit

Insufficient Freeboard

Poor Pit Construction

Other (Describe):

April 9, 2012 Juanita Pollock XTO Energy, Inc 210 Park Ave, Suite 2350 Oklahoma City, OK 73102 RE: AFIN: 12-00000; Permit by AOGC’s Rule B-17 Ballew #1-22H Dear Ms. Pollock: The Department has received your response to the February 29, 2012 inspection of your facility by our District Field Inspector, Kerri McCabe. Your letter appears to adequately address the discrepancies identified during the visit. The Department expects the corrective actions taken will be maintained to ensure consistent compliance with the requirements of the permit. Acceptance of this response by the Department does not preclude any future enforcement action deemed necessary at this site or any other site. The Department will keep the inspection and response on file. If future violations occur that require enforcement action, the Department will consider the inspection and response as required by the Pollution Control and Ecology Commission Regulation No. 7, Civil Penalties. This regulation requires the Department to consider the past history of your site and how expeditiously the violations were addressed in determining any civil penalty that may be necessary for any future violations. If we need further information concerning this matter, we will contact you. Thank you for your attention to this matter. Should you have any questions, feel free to contact me at 501-682-0667 or you may e-mail me at [email protected]. Sincerely,

Michelle Bolenbaugh Enforcement Analyst Water Division Enforcement Branch

ADEQDetails for Complaint Number 014098


Complaint Received Date: 04/02/2012

First Site Visit Date:

Second Site Visit Date:

Third Site Visit Date:

File List: 014098-COMP.pdf (/&proot/Pub/WebDatabases/Complaints/014098-

COMP.pdf)

AFIN: 7300000

Permit Number: 00449-W-RB


Name: XTO ENERGY, INC

County: Cleburne

Address: BALLEW #1-22h

211 PANGBURN

HEBER SPRINGS, AR 72543

Site Phone Number:

La7tude: 35.402670

Longitude: -91.950489

Faye<eville Shale Related: Y

Faye<eville Shale Viola7ons: N

First Le<er Date:

Second Le<er Date:

Third Le<er Date:

ERC Event Number:

Ac7on Case ID:

Ac7on Case Name:

Ac7on LIS Number:

Number of Site Visits:

Discharge To Stream:

Discharge To Stream Name:

Previous Complaint:

Previous Dates Comment:

ADEQ - Complaint Details | ADEQ http://www.adeq.state.ar.us/complaints/searches/p_complaints.aspx?Com...

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Inac7ve Inves7ga7on:

Inac7ve Inves7ga7on Reason:

Valid Complaint:

Final Disposi7on Descrip7on: Inves7gated;no evidence found


2 of 4 3/16/2015 9:28 PM

Inves7ga7on Comment: Ini7ally, I spoke with Ms. Ballew at length about the issues she was having with

the produc7on pad located on her property (4-3-12). She was mainly concerned

with trash leC by the contractors & low-levels of NORM indicated in water

samples collected by ADH as well as improper reserve pit closure. I told her I had

been to the site in late Feb 2012 & the pit fluids were well below the minimum

freeboard requirements. I informed her that I had walked the en7re length of the

pipeline ROW, and that's when she told me she didn't have issues with the

pipeline ROW but the original lease road. Apparently, the contractor originally

started construc7on of a lease road on Ms. Ballew's property & then decided to

put the lease road on Mr. Waldo's property. The contractor had apparently leC

windrowed trees & disturbed soil along the original lease road route. I told her I

could not address the trash or events that occurred in Nov 2011, but that I would

re-visit the site during the pit closure. She was concerned about them removing

the liner because of the low-levels of NORM indicated in samples taken by ADH. I

informed her that removing the liner was standard prac7ce & can result in

viola7ons if not removed. I told her all fluids were to be removed to the fullest

extent, but that solids could be buried onsite if pre-approved by ADEQ (kiln

dust/fly ash method). I arrived onsite later in the day & the pit was s7ll being

graded/contoured. I spoke with Mr. Lance B. while onsite. He informed me that

the liner was being taken to Rolling Meadows Landfill in Hazen, AR. He said that

JM Oilfield Services had hauled the reserve pit contents (loca7on unknown at this

7me). Silt fence was installed around the former reserve pit area. Ms. Brooke

Shaw with XTO Energy informed me that the reserve pit contained shallow

groundwater & stormwater. XTO Energy did not use the reserve pit during a Frac

Flowback Reuse program. Also, I inspected the lease road (separate report). I did

not inves7gate the original route because that ac7vity occurred on private

property & I could not see any indica7on of the ac7vity from the produc7on pad

or pipeline ROW. FURTHER ACTION TAKEN/TO BE TAKEN: I spoke with Ms.

Ballew's original landman from XTO Energy (Dean Burne<). They have proclaimed

"emanate domain" on Ms. Ballew's property due to mineral rights. The decision

was based on a combina7on of sec7on lines & ini7al interest/disinterest between

two par7es (Ballew & Waldo). XTO Energy & the Ballew family could not come to

an agreement with the proposed well lease. These proceedings are beyond the

scope of ADEQ, and no further ac7on is required. ADH & AOGC were the original

par7es contacted in Nov 2011. If there was the poten7al for a discharge to

surface waters, ADEQ should have been no7fied. NORM is under the jurisdic7on

of ADH & subsurface ac7vi7es (i.e., well bore, drilling, etc.) are the jurisdic7on of

AOGC. Since ini7al water samples were taken by ADH, follow-up samples should

be conducted by that agency. It should be noted that NORM is naturally occurring

at the surface & in shale. [Last modified by schaeffer, 5/7/2012 12:25:42 PM]


3 of 4 3/16/2015 9:28 PM


Descrip7on Comment: From report provided by ADEQ's Emergency Response (ER): Caller advised ER: "

Pit has overflowed in November; " Liner has been removed; " There is sludge in

pit that is being filled in; " Concerned about material seeping into the ground

since liner is removed; " When caller filmed the opera7ons, someone came out to

get the sludge out but a large por7on had already been filled in; " Health

Department has tested the water and found radia7on; " EPA Dallas was contacted

and advised the water should be tested for radia7on; " Photos and film

informa7on is for documentary that will be presented to the State Legislature; "

Will share photos with ADEQ-ER. As caller was driving back to Li<le Rock, she

requested ER call tomorrow and provide an address to send the photos to. The

main concern of the caller apparently surrounds the radia7on reportedly to have

been found in the water. There is no current report of any overflow or breach or

impact to water other than poten7al seepage due to the liner being removed.

Loca7on Comment: Ballew #1-22H Permit #00449-W-RB AFIN #73-00000 From NLR take Hwy 167/67

toward Cabot, AR. At the 2nd Cabot exit merge onto Hwy 5 toward Heber Springs,

AR. Hwy 5 merges with Hwy 25 con7nue toward the Hwy 25/16 junc7on.

Con7nue straight (leC) onto Hwy 16 toward Pangburn, AR. Good Springs Rd is off

Hwy 16 on the right. Con7nue on Good Springs Rd taking the 1st right onto Pine

Snag Rd. Con7nue to a fork in the road turning right onto Price Ford Rd. XTO

Energy's Lonesome Duck Farms & Ballew lease roads are on the leC & indicated

with signs. The lease road for Ballew #1-22H is on


4 of 4 3/16/2015 9:28 PM

April 30, 2012 Jennifer Weathers Regulatory Analyst XTO Energy, Inc. 210 Park Ave., Suite 2350 Oklahoma City, OK 73102 RE: AFIN: 12-00000; Permit by AOGC’s Rule B-17 (ADEQ Ref# 00449-W-RB) Well Site: Ballew #1-22H; Cleburne Co. Ms. Weathers: On April 3, 2012 I performed a follow-up inspection of the above referenced well site & associated pit in accordance with the provisions of the Arkansas Water & Air Pollution Control Act and the regulations promulgated thereunder as well as AOGC’s Rule B-17. At the time of the inspection, the well site & associated pit were in compliance with the provisions of the Arkansas Water & Air Pollution Control Act and the associated regulations as well as AOGC’s Rule B-17. Please refer to the “comments” section of the inspection form for notes regarding any “areas of concern” that may have been observed at the above referenced site. Furthermore, I have contacted Brooke Shaw by email in regards to any potential issues concerning this site. If I can be of any further assistance, please contact me at 501-683-2789 or via email at [email protected] Thank you for your time,

Kerri McCabe Oil & Gas Field Inspector Water Division 501-683-2789 [email protected] cc: Water Division Permits Branch Bo Smith, AOGC Inspector Supervisor, [email protected] Brooke Shaw, XTO EH & S Coordinator, [email protected]





AOGC Rule B-17 Pit Inspection Form

Date of Inspection: April 3, 2012 ADEQ Inspector: Kerri McCabe

Operator: XTO Energy, Inc. Drilling Contractor: N/A

Coordinates: Lat 35.402670; Long -91.950489 Drilling Pad Name & Well #: Ballew #1-22H

ADEQ Reference #: 00449-W-RB Onsite Contact Person: emailed Brook Shaw Phone #: 501-887-4126 DETAILS: Section, Township (N), Range (W) County: Cleburne Co. 22, 9N, 9W AFIN: 12-00000

SECTION A: Drilling & Well Site Information

Well Site Type: Pad Construction Drilling Spud State Completion Producing Commercial Injection Well Non-commercial Injection Well

Type of Drilling System: Air Close-loop Fluid System

Type of Drilling Fluid: Water-based Oil-based Air/Mist

SECTION B: Stormwater Erosion & Sediment Controls of the Well Pad & Lease Road

1. Is there evidence of sediment runoff from the well site or lease road observed in waters of the State? Y N NA NE

2. At the time of the inspection was there any evidence observed of Reg. 2 water quality standards being exceeded (i.e., turbidity, sedimentation, etc.)? Y N NA NE

3. Has the Operator implemented erosion & sediment controls to minimize sediment runoff from occurring? Y N NA NE

4. After further evaluation has the Operator prepared a storm water erosion & sediment control plan or guidance document? Note: XTO has submitted RAPPS to ADEQ Y N NA NE

5. Does it appear that the erosion & sediment controls are being maintained & are in good operating condition? Note: temporary BMPs around closed pit area Y N NA NE

6. During the time of the inspection was there evidence that the well site &/or pit had any fluid discharges (i.e., spills/leaks)? Y N NA NE

a. If there was evidence of a discharge were the fluids/solids properly contained, cleaned & disposed of? Y N NA NE

b. Has the discharge been reported to ADEQ/AOGC? Y N NA NE

7. Did any rerouting, filling or channelization of any “water of the State” occur during well site or lease road construction? Note: nearest waterbody is an unnamed, intermittent tributary of Big Creek Y N NA NE

a. Was proper authorization received (i.e., Short-term Activity Authorization)? Note: STAA on file (separate inspection report) Y N NA NE

b. Is there evidence of any Reg. 2 water quality standard violations due to construction of the well pad or lease road? Y N NA NE

8. Does it appear that chemicals used during the drilling process & after well completion are being stored properly? Note: permanent, lined berm & plastic troughs Y N NA NE

SECTION C: Reserve Pit Construction & Operation Requirements

1. After further evaluation has the Operator submitted AOGC Form 2A (Notice of Commencement)? Note: NO pit onsite Y N NA NE 2. At the time of the inspection did it appear the pit(s) met the construction requirements as required by AOGC Rule B-17 Section (f), Items (2) & (3)? Y N NA NE

3. If containers were used for circulation/mud pits (i.e., close-loop system) were they being maintained in a leak-free state? Y N NA NE

4. During the inspection was the pit(s) constructed with the appropriate liner (i.e., 20mil synthetic liner, compacted-clay liner &/or bentonite liner)? Y N NA NE

5. At the time of inspection was the reserve pit(s) structurally sound & capable of containing the pit’s contents (i.e., cracks/holes in levees &/or tears/holes in liners)? Y N NA NE

6. During the inspection was a 2ft-minimum freeboard being maintained in the pit? Y N NA NE

7. At the time of inspection did the pit contain unapproved fluids or materials (i.e., waste oil, hydraulic or completion fluids, trash &/or any Nonhazardous O&G Waste)? Y N NA NE

8. After further evaluation was the reserve pit determined to be part of a Frac Flowback Water Recycling Program? Y N NA NE

a. If “yes” has the reserve pit been pre-approved by ADEQ? Y N NA NE

b. During the inspection did the reserve pit liner(s) type meet the requirements for the Frac Flowback Water Recycling Program as outlined in AOGC Rule B-17 Section (g), Item (2)? Y N NA NE

SECTION D : Fluid Disposal & Pit Closure Requirements

Date well(s) was finished: Nov. 30, 2011 (well #1)

1. According to the onsite contact person &/or supporting documents, how & where are fluids disposed? N/A Type of Disposal: Information not provided on Statement of Disposition/NOT for General Permit# 02122-WG-P; not required on AOGC’s Form 2B

2. Have all drilling fluids &/or solids been removed from the reserve pit as outlined in AOGC Rule B-17 Sections (h) & (i)? Y N NA NE

3. Does it appear that the pit has been properly closed and seeded within the appropriate timeframe? Note: graded/contoured Y N NA NE

4. Has the Operator submitted a completed AOGC Form 2B (Notice of Pit Closure) within 30 days of closure of the pit? Y N NA NE Comments: There is NO reserve pit onsite. The Operator was in the process of closing the pit during the inspection. BMPs were in place & being maintained around the former pit location. The well site is establishing vegetation & the surrounding area is also well-vegetated (timber). There is one active well onsite & the produced water tank is within a permanent, lined berm. AOGC’s Form 2A is on file for General Permit# 02122-WG-P; however, the Operator has not submitted AOGC’s Form 2B. PDS #065309

Inspector: Kerri McCabe Arkansas Department of Environmental Quality Date of Report: April 24, 2012

© DW 72008 Arkansas Dept. Environmental Quality

Arkansas Department of Environmental Quality (ADEQ)

Official Photograph Sheet

Location: Ballew #1-22H from Hwy 16 off Price Ford Rd about 6.6 miles WxSW of

Pangburn, AR

Photographer: Kerri McCabe Witness: Lance B.


Description: Site identification



Description: Graded & contoured reserve pit location; BMPs in place


No Violations Noted

Placing Waste

Permitting Issues

Spills & Leaks










Other (Describe):

May 7, 2012 Heather Meek Regulatory Analyst XTO Energy, Inc. 211 Pangburn Rd Heber Springs, AR 72543 RE: Complaint Investigation of XTO Energy’s Ballew #1-22H Reserve Pit in

Pangburn, AR (Cleburne Co.); reserve pit discharge from Nov 2011 & improper reserve pit closure

Ms. Meek: On April 3, 2012 I performed an investigation of the Ballew #1-22H production pad & reserve pit in response to a complaint received by ADEQ’s Water Division. The complainant allegedly observed the reserve pit fluids discharge into surface waters in November 2011 as well as witnessed the improper closure of the reserve pit on April 2, 2012. At the time of the investigation, no violations were observed. Please refer to the “comments” section of the inspection form for any notes regarding any “areas of concern” that may have been observed at the above referenced site. Furthermore, I have contacted Brooke Shaw by email with any potential issues regarding this site. If you should have any questions, feel free to contact me at 501-683-2789 or via email [email protected] Thank you for your time,

Kerri McCabe Oil & Gas Field Inspector Water Division cc: Water Division Permits Branch Heather Meek, XTO Energy Regulatory Analyst, [email protected] Brooke Shaw, XTO Energy EHS Coordinator, [email protected]




FOR OFFICE USE ONLY:

AIR HW RST SW WATER MINING

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

5301 Northshore Drive, North Little Rock, AR 72118

COMPLAINT REPORT

GPS: Lat: 35.402670 ; Long: -91.950489 AFIN#: 12-00000 PERMIT#: N/A

DATE RECEIVED: April 2, 2012 COUNTY: Cleburne Co.

COMPLAINANT NAME: Sandra Ballew COMPLAINT AGAINST: XTO Energy, Inc.

ADDRESS:

N/A

ADDRESS:

211 Pangburn Rd

Heber Springs, AR 72543

PHONE: 501-551-5515 FAX: N/A PHONE: 501-887-4138 (Heather Meek) FAX: N/A

PERSON RECEIVING REPORT:

Michael Parette

DATE:

April 2, 2012

SUPERVISOR REFERRAL:

Steve Johnson

DATE:

April 2, 2012

INSPECTOR REFERRED:

Kerri McCabe

DATE:

April 2, 2012

MEDIA SUPERVISOR REFERRAL:

DATE:

PHONE REFERRAL CONTACT:

DATE:

RECEIVING INSPECTOR:

Kerri McCabe

DATE:

04-02-12

DESCRIPTION (IN DETAIL)

From report provided by ADEQ’s Emergency Response (ER):

Caller advised ER:

Pit has overflowed in November;

Liner has been removed;

There is sludge in pit that is being filled in;

Concerned about material seeping into the ground since liner is removed;

When caller filmed the operations, someone came out to get the sludge out but a large portion had already

been filled in;

Health Department has tested the water and found radiation;

EPA Dallas was contacted and advised the water should be tested for radiation;

Photos and film information is for documentary that will be presented to the State Legislature;

Will share photos with ADEQ-ER.

As caller was driving back to Little Rock, she requested ER call tomorrow and provide an address to send the photos

to. The main concern of the caller apparently surrounds the radiation reportedly to have been found in the water.

There is no current report of any overflow or breach or impact to water other than potential seepage due to the liner

being removed.

Page 3

LOCATION (IN DETAIL)

From NLR take Hwy 167/67 toward Cabot, AR. At the 2nd

Cabot exit merge onto Hwy 5 toward Heber Springs,

AR. Hwy 5 merges with Hwy 25 continue toward the Hwy 25/16 junction. Continue straight (left) onto Hwy 16

toward Pangburn, AR. Good Springs Rd is off Hwy 16 on the right. Continue on Good Springs Rd taking the 1st

right onto Pine Snag Rd. Continue to a fork in the road turning right onto Price Ford Rd. XTO Energy’s

Lonesome Duck Farms & Ballew lease roads are on the left & indicated with signs. The lease road for Ballew #1-

22H is on adjacent property.

PREVIOUS COMPLAINT? YES NO DATES: Feb. 22, 2012 (route of pipeline ROW & NORM readings

in reserve pit fluid & surface water in samples collected by ADH)

DISCHARGE TO WATERS OF THE STATE? YES NO NAME OF WATERBODY:

HOW COMPLAINT WAS RECEIVED: PHONE LETTER VERBAL FAX E-MAIL

FOLLOW -UP ON COMPLAINT

COMPLAINT #: 00449-W-RB_comp_20120403 AFIN #: 12-00000

INSPECTOR: Kerri McCabe DATE: April 3, 2012

ACTION TAKEN: PHOTOS TAKEN: YES

Initially, I spoke with Ms. Ballew at length about the issues she was having with the production pad

located on her property (4-3-12). She was mainly concerned with trash left by the contractors & low-

levels of NORM indicated in water samples collected by ADH as well as improper reserve pit closure. I

told her I had been to the site in late Feb 2012 & the pit fluids were well below the minimum freeboard

requirements. I informed her that I had walked the entire length of the pipeline ROW, and that’s when

she told me she didn’t have issues with the pipeline ROW but the original lease road. Apparently, the

contractor originally started construction of a lease road on Ms. Ballew’s property & then decided to put

the lease road on Mr. Waldo’s property. The contractor had apparently left windrowed trees & disturbed

soil along the original lease road route. I told her I could not address the trash or events that occurred in

Nov 2011, but that I would re-visit the site during the pit closure. She was concerned about them

removing the liner because of the low-levels of NORM indicated in samples taken by ADH. I informed

her that removing the liner was standard practice & can result in violations if not removed. I told her all

fluids were to be removed to the fullest extent, but that solids could be buried onsite if pre-approved by

ADEQ (kiln dust/fly ash method).

I arrived onsite later in the day & the pit was still being graded/contoured. I spoke with Mr. Lance B.

while onsite. He informed me that the liner was being taken to Rolling Meadows Landfill in Hazen, AR.

He said that JM Oilfield Services had hauled the reserve pit contents (location unknown at this time).

Silt fence was installed around the former reserve pit area. Ms. Brooke Shaw with XTO Energy informed

me that the reserve pit contained shallow groundwater & stormwater. XTO Energy did not use the

reserve pit during a Frac Flowback Reuse program. Also, I inspected the lease road (separate report). I

did not investigate the original route because that activity occurred on private property & I could not see

any indication of the activity from the production pad or pipeline ROW.

Page 4

FURTHER ACTION TAKEN/TO BE TAKEN:

I spoke with Ms. Ballew’s original landman from XTO Energy (Dean Burnett). They have proclaimed

“emanate domain” on Ms. Ballew’s property due to mineral rights. The decision was based on a

combination of section lines & initial interest/disinterest between two parties (Ballew & Waldo). XTO

Energy & the Ballew family could not come to an agreement with the proposed well lease. These

proceedings are beyond the scope of ADEQ, and no further action is required.

ADH & AOGC were the original parties contacted in Nov 2011. If there was the potential for a discharge

to surface waters, ADEQ should have been notified. NORM is under the jurisdiction of ADH &

subsurface activities (i.e., well bore, drilling, etc.) are the jurisdiction of AOGC. Since initial water

samples were taken by ADH, follow-up samples should be conducted by that agency. It should be noted

that NORM is naturally occurring at the surface & in shale.

PDS #014098

INSPECTOR SIGNATURE:

DATE: April 25,

2012

Page 5

Water Division Photographic Evidence Sheet

Location: Ballew #1-22H from Hwy 16 off Price Ford Rd about 6.6 miles WxSW of Pangburn, AR



Description: Site Identification



Description: Graded/contoured reserve pit location; silt fence in place

Page 6


Location: Ballew #1-22H from Hwy 16 off Price Ford Rd about 6.6 miles WxSW of Pangburn, AR



Description: Removed liner on production pad; going to Rolling Meadows Landfill (Hazen, AR)



Description: Silt fence along intermittent stream near reserve pit location; vegetation establishing

Page 7


No Violations Noted

Placing Waste

Permitting Issues

Spills & Leaks










Other (Describe):

July 31, 2012 Joel Dunlap (Reporting Party) EHS Coordinator XTO Energy, Inc. 211 Pangburn Rd Heber Springs, AR 72543 RE: Complaint Investigation of several XTO Energy production pads &/or lease

roads (Cleburne, Faulkner, Independence and White Counties); alleged intentional discharges of frac flowback &/or produced fluids by a third party contractor

Dear Mr. Dunlap: On June 28, 2012 and July 9, 2012 I performed several investigations of various XTO Energy production pads &/or lease roads in response to alleged intentional discharges self-reported by XTO Energy. XTO Energy reportedly discovered that an independent, third party contractor had been intentionally discharging frac flowback &/or produced fluids at several sites. Sites identified by XTO Energy for possible intentional discharges include: OB Moss #1-32H, Peel #2-9H, Deltic Timber #1-8H, Banner Creek #1-33H, Deltic Timber #1-10H, Ballew #1-22H, and Garner #1-22H in Cleburne Co.; Barnett #1-32H in Faulkner Co.; Reaves #2-20H, Byram #1-30H31, Kenny Stagg#1-32H29, and DTC #1-30H in Independence Co.; and Pine Hope #1-30H, Glass #1-28H4, Tanner #1-31H, Sammie Smith #2-15H, Moffitt #2-32H, Young #1-19H, Harrison #1-33H, and Glass Estates #1-34H27 in White Co. These sites are located within watersheds in counties with streams designated by ADEQ has Extraordinary Resource Waters (ERWs). XTO Energy has provided to ADEQ’s Emergency Response preliminary sample results for chlorides, which were collected at potential sites. Results from several samples indicate excessive levels of chlorides (greater than 3000ppm) compared to background levels. At the time of the investigation, it has been revealed that you are in violation of the Arkansas Water & Air Pollution Control Act, the federal Clean Water Act and the regulations promulgated thereunder. Specifically, I found the following violation: 8-4-217 (a)(2) It shall be unlawful for any person to place or cause to be placed any sewage, industrial waste, or other wastes in a location where it is likely to cause pollution of any waters of this state. XTO Energy self-reported several discharges allegedly performed by a third party contractor. Preliminary results from samples taken from potential discharge sites have been provided to ADEQ’s Emergency Response. These results indicate excessive (greater than 3000ppm) chloride concentrations as a result of intentional discharging of frac flowback &/or produced fluids (Exploration & Production wastes). XTO Energy is responsible for the containment, removal, transportation, and disposal of all E&P wastes generated during the drilling & completions of natural gas wells. XTO Energy should submit & implement a remediation plan immediately to reduce the impact these intentional discharges have had & will continue to have on the environment.

XTO Energy, Inc. July 31, 2012 Page 2 Due to the excessive nature of the above-mentioned item as well as the impact the intentional discharges have had on the environment and may continue to have on the environment, the aforementioned item(s) requires your immediate attention. Based upon the inspection findings, this matter has been referred to the Enforcement Branch of the Water Division. Please submit a written response to these findings to the Water Division Inspection Branch of this Department. This response should be mailed to the address at the bottom of the first page of the letter or e-mailed to [email protected] This response should contain documentation describing the course of action taken to correct each item noted. This corrective action should be completed as soon as possible, and the written response with all necessary documentation (i.e. photos) is due by August 13, 2012. If I can be any assistance, please contact me at [email protected] or 501-682-0642. Sincerely,

Kerri McCabe Oil & Gas Field Inspector Supervisor Water Division cc: Water Division Enforcement Branch

Water Division Permits Branch Michael Parette, ADEQ Emergency Response, [email protected] Bo Smith, AOGC Inspector Supervisor, [email protected]

Special Agent Wendall Jines, Arkansas State Police, [email protected] Special Agent Jassen Travis, Arkansas State Police, [email protected]







Page 3

FOR OFFICE USE ONLY:

AIR HW RST SW WATER MINING

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY

5301 Northshore Drive, North Little Rock, AR 72118

COMPLAINT REPORT

GPS:

Lat: 35.31464; Long: -1.846074 (Sammie Smith #2-15H)

Lat: 35.28573; Long: -91.858699 (Glass #1-28H)

Lat: 35.27134; Long: -91.883175 (Moffitt #1-32H)

Lat: 35.2713; Long: -91.891133 (Tanner #1-31H)

Lat: 35.27612; Long: -92.18706 (Barnett #1-32H)

An additional three investigations were conducted by Robert

Long (O&G Inspector) in Cleburne & Independence Cos.

AFIN#: 73-00000 (White) & 23-00000 (Faulkner)

PERMIT#:

02203-WG-P (voided); Sammie Smith

02025-WG-P (voided); Glass

02169-WG-P (voided); Moffitt

02222-WG-P (voided); Tanner

012587-WG-P (voided); Barnett

DATE RECEIVED: June 28, 2012 COUNTY: Cleburne, Faulkner, Independence & White Cos.

COMPLAINANT NAME: Joel Dunlap (self-report) COMPLAINT AGAINST: XTO Energy, Inc.

ADDRESS:

XTO Energy, Inc.

211 Pangburn Rd


ADDRESS:

211 Pangburn Rd


PHONE: 501-757-0967 FAX: N/A PHONE: 501-757-0967 (Joel Dunlap) FAX: N/A

PERSON RECEIVING REPORT:

Kerri McCabe

DATE:

June 28, 2012

SUPERVISOR REFERRAL:

DATE:

INSPECTOR REFERRED:

DATE:

MEDIA SUPERVISOR REFERRAL:

DATE:

PHONE REFERRAL CONTACT:

DATE:

RECEIVING INSPECTOR:

Kerri McCabe

DATE:

June 28, 2012

DESCRIPTION (IN DETAIL)

Since June 14, 2012 XTO Energy has self-reported several intentional discharges believed to be performed by a

third party contractor paid to haul E&P wastes generated from natural gas production sites. The first self-report

by XTO Energy was at the OB Moss #1-32H production pad in Cleburne Co (investigated by Robert Long).

Subsequently, XTO Energy began to identify several discharge sites at various production pads &/or lease roads

issued to the contractor. XTO Energy has taken preliminary soil samples from each possible discharge site at 20

different locations within four counties. These results have been provided to ADEQ’s Emergency Response

(Michael Parette). The soil sample results indicate excessive chloride concentrations (greater than 3000ppm)

compared to background levels, which is an indicator of frac flowback &/or produced fluids.

Page 4

LOCATION (IN DETAIL)

The following locations have been submitted by XTO Energy as possible discharge sites: OB Moss #1-32H, Peel

#2-9H, Deltic Timber #1-8H, Banner Creek #1-33H, Deltic Timber #1-10H, Ballew #1-22H, and Garner #1-22H in

Cleburne Co.; Barnett #1-32H in Faulkner Co.; Reaves #2-20H, Byram #1-30H31, Kenny Stagg#1-32H29, and

DTC #1-30H in Independence Co.; and Pine Hope #1-30H, Glass #1-28H4, Tanner #1-31H, Sammie Smith #2-

15H, Moffitt #2-32H, Young #1-19H, Harrison #1-33H, and Glass Estates #1-34H27 in White Co.

There are an additional six locations provided by XTO Energy; however, there have been no formal reports

submitted by XTO Energy for these sites to ADEQ:

Fortner #1-9H, Herndon #1-12H, Roberts #1-20H, Swaim #1-31H30, Sexton #1-1H, and Moss #1-14H (counties

unknown)

PREVIOUS COMPLAINT? YES NO DATES:

DISCHARGE TO WATERS OF THE STATE? YES NO NAME OF WATERBODY: From information

provided by XTO Energy, two of the above-mentioned sites were in close-proximity of Waters of the State (Reaves

#2-20H & Tanner #1-31H)

HOW COMPLAINT WAS RECEIVED: PHONE LETTER VERBAL FAX E-MAIL

FOLLOW -UP ON COMPLAINT

COMPLAINT #: XTO Intentional Discharges from

3rd

Party_comp_20120709

AFIN #: 73-00000 (White Co.) & 23-00000

(Faulkner Co.)

INSPECTOR: Kerri McCabe DATE: June 28, 2012

ACTION TAKEN: PHOTOS TAKEN: YES

ADEQ O&G Field Inspector Robert Long & I conducted a total of nine investigations at locations reported by

XTO Energy. The locations were believed to be possible sites where a third party contractor intentionally

discharged E&P wastes onto the ground or within waters of the state. These sites encompassed four different

counties within watersheds designated by ADEQ as ERWs. At least one site from each county was

investigated to represent the individual county. The sites varied in time from discharge (within 24 hours & as

long ago as 8 months); however, XTO Energy conducted soil samples at each potential discharge location as

well as sampled from point source to furthest distance from point source that was potentially impacted. XTO

Energy took background soil samples to get an idea of the chloride concentrations in the areas. Due to the

fact that E&P wastes such as frac flowback & produced fluids are high in chlorides, XTO Energy tested for

chlorides only. Preliminary results from the soil samples taken at some sites indicate that chloride levels

exceed 3000ppm, which is an acceptable concentration for permitted land application sites approved by

ADEQ. It should be noted that frac flowback as well as produced water are not acceptable for land

application and can only be disposed of at approved facilities (i.e., commercial/non-commercial injection

wells, reuse during hydraulic fracturing, etc.). XTO Energy is responsible for the containment, removal,

transportation & disposal of all E&P wastes generated during natural gas drilling & completions.

Joel Dunlap was able to direct me to discharge sites at the locations investigated. The areas were

distinguished by eroded spots where hosing had been placed and high pressure & volume had caused the soil

to be displaced as well as discoloration to substrate (rusty color). Vegetation had died where E&P wastes had

pooled.

Page 5

FURTHER ACTION TAKEN/TO BE TAKEN:

I met with XTO Energy’s Joel Dunlap during my White Co investigations. He provided ADEQ with

information that led XTO Energy to believe that the third party contractor had been fired after the last

incident at OB Moss for unrelated reasons. Two theories included a company-wide scam to keep the

money paid by XTO Energy for disposal without taking the wastes to a disposal facility &/or laziness of

one or two individual drivers (disposed of wastes onsite instead of driving to disposal facility). Only after

reviewing invoices & manifests did XTO Energy begin to notice discrepancies in amounts hauled verse

disposal destination. Some manifests were altered & even photocopied.

I instructed Joel Dunlap to contact ADEQ’s Emergency Response (Michael Parette) for guidance in a

remediation plan. Preliminary soil sample results exceed chloride concentration levels acceptable for

permitted land application facilities, and the affected areas should be returned to pre-discharge

conditions (background). I will be conducting investigations of the remaining sites when time allows.

PDS #014419

INSPECTOR SIGNATURE:

DATE:

July 23, 2012

Page 6


Location: Sammie Smith #1,2-15H from Hwy 310 off Morris School Rd about 3.4 miles SXSW of Letona, AR

(White Co)

Photographer: Kerri McCabe Witness: Joel Dunlap & Robert Long


Description: Sediment displaced from pressure & volume of intentional discharge



Description: Impacted vegetation (dead) & discoloration of area

Page 7


Location: Sammie Smith #1,2-15H from Hwy 310 off Morris School Rd about 3.4 miles SXSW of Letona, AR

(White Co)



Description: Sediment displaced from pressure & volume of intentional discharge




Page 8


Location: Glass #1,2,3,4-28H from Hwy 36 off Foster Chapel Rd about 2.1 miles NE of Center Hill, AR (White

Co)



Description: Eroded area where high pressure & volume displaced sediment



Description: Eroded area where high pressure & volume displaced sediment; behind produced water tank

Page 9


Location: Glass #1,2,3,4-28H from Hwy 36 off Foster Chapel Rd about 2.1 miles NE of Center Hill, AR (White

Co)



Description: Impacted vegetation (dead)




Page 10


Location: Moffitt #1,2,4,5,6-32H from Hwy 36 off Bloodworth Rd about 0.6 miles N of Center Hill, AR (White

Co)



Description: Indication of traffic behind produced water tanks



Description: Eroded area from high pressure & volume displacing sediment; behind produced water tank

Page 11


Location: Tanner #1,2,3,4-31H from Hwy 36 off Tanner Rd about 0.7 miles NW of Center Hill, AR (White Co)



Description: Discoloration to lease road from intentional discharge



Description: Eroded area from high pressure & volume displacing sediment; behind produced water tank

Page 12


Location: Barnett #1-32H from Hwy 107 off Tanyard Rd about 5.0 miles NW of Enola, AR (Faulkner Co)

Photographer: Kerri McCabe Witness: Robert Long


Description: Eroded area of production pad noted on a Jan. 2011 inspection

Photographer: Kerri McCabe Witness: Robert Long


Description: Eroded area of production pad noted on a Jan. 2011 inspection

Page 13


No Violations Noted

Placing Waste

Permitting Issues

Spills & Leaks










Other (Describe):

August 22, 2012 Douglas C. Schultze Vice President of Operations XTO Energy, Inc. 210 Park Avenue, Suite 2350 Oklahoma City, OK 73102 RE: XTO Energy, Inc. Response to ADEQ’s Complaint Investigation of

July 31, 2012 Dear Mr. Schultze: I have reviewed the response pertaining to my June-July 2012 investigations of the multiple sites self-reported by XTO Energy during their company’s personal investigations of numerous intentional discharges occurring at XTO Energy’s leases alleged to be the result of fraudulent & criminal activities conducted by a Third Party contractor hired by XTO Energy to dispose of Exploration & Production wastes generated during the drilling and completions of XTO Energy’s natural gas wells. The information provided by XTO Energy, specifically, the timeline for submitting assessments of impacted sites as well as formulating generic & site-specific remediation plans is progress towards addressing the violation referenced in my complaint investigation report. At this time Water Division’s Inspection Branch is submitting XTO Energy’s response to the Enforcement Branch of the Water Division for review. Please be advised to continue to submit updates for this complaint investigation to the Inspection Branch as XTO Energy proceeds to address the impacted sites. Acceptance of this response by the Department does not preclude any future enforcement action deemed necessary at these sites or any other sites.

XTO Energy August 22, 2012 Page 2 If we need further information concerning this matter, we will contact you. Thank you for your attention to this matter. Should you have any questions, feel free to contact me at 501-682-0642 or you may e-mail me at [email protected] Sincerely,

Kerri McCabe O&G Field Inspector Supervisor Water Division cc: John Holding, ADEQ Enforcement Analyst, [email protected] Michael Parette, ADEQ Emergency Response, [email protected] Stuart Spencer, ADEQ Legal Division, [email protected] Terry Downey, XTO EHS Manager, [email protected]

Terry Matthews, XTO Senior Production Superintendent, [email protected] Joel Dunlap, XTO EHS Coordinator, [email protected] Dr. Jarvis Harper, FTN Associates Ltd Agronomist, [email protected] Bo Smith, AOGC Petroleum Supervisor, [email protected] Special Agent Wendall Jines, Arkansas State Police, [email protected] Special Agent Jassen Travis, Arkansas State Police, [email protected]












ADEQDetails for Inspec�on Number 067566


Inspec�on Date: 08/17/2012

File List: 067566-INSP.pdf (/'proot/Pub/WebDatabases/Inspec�onsOnline/067566-

INSP.pdf)

AFIN: 1200000

Permit Number:


Name: XTO ENERGY

County: Cleburne

Address: BALLEW 1-22H

210 PARK AVE, STE 2350

OKLAHOMA CITY, OK 73102

Site Phone Number:

La�tude: 35.402670

Longitude: -91.950489

Faye:eville Shale Related: Y

Faye:eville Shale Viola�ons: N

First Le:er Date:

Second Le:er Date:

Third Le:er Date:

Response Due Date:

Response Received Date:

ERC Event Number:

Ac�on Case ID:

Ac�on Case Name:

Ac�on LIS Number:

Inspec�on Reason: Scheduled

Inspec�on Status: Completed

Inspec�on Type: Compliance

Compliance Status: In Compliance

Total Inspec�on Score:


1 of 2 3/16/2015 9:24 PM


General Comment: BALLEW 1-22H PERMIT #00449-W-RB AFIN #12-00000 XTO self-reported a spill on

this site. This inspec�on was conducted in conjunc�on with a spill inves�ga�on as

a result of that report. There is NO reserve pit onsite. The loca�on has been graded

& is establishing vegeta�on. All chemicals &/or wastes are being stored properly

within a metal &/or plas�c containment berm at the �me of inspec�on.


2 of 2 3/16/2015 9:24 PM

Documents

Violations BALLEW 1-22H