DAQ-2024-005148

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF AIR QUALITY
Bryce C. Bird
Director

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
DAQC-179-24
Site ID 8319 (B1)

Sent Via Certified Mail No. 7019 0700 0002 0834 7532

Paul Wells
Brad Wells, Field Engineer
Quinex Energy Corporation
465 South 200 West
Bountiful, UT 84010

Dear Mr. Wells:

Re: Compliance Advisory – Quinex Energy Corporation - Mary RU 278 – Utah Administrative Code
R307-501 – Uintah County

On February 21, 2024, a representative of the Utah Division of Air Quality (DAQ) conducted an
inspection of Quinex Energy Corporation - Mary RU 278 Tank Battery. The DAQ observed volatile
organic compound (VOC) leaks from oil tank #3 and from the separator water dump valve, which may be
a violation of Utah Administrative Code R307-501.

Quinex Energy Corporation is required to comply with the above regulations. A written response to this
letter is required within ten (10) business days of receipt of this letter.

Additional details about the above observations and regulations are attached to this letter. Please contact
Kyle Greenberg at 385-306-6533 or [e-mail] if you have any questions about this letter.

Sincerely,

Rik Ombach, Manager
Minor Source Oil and Gas Compliance Section

RO:KG:jl

cc: TriCounty Health Department
February 28, 2024
DAQC-179-24
Page 2

Potential Violation(s)

On February 21, 2024, an inspection from the DAQ took place at Quinex Energy Corporation - Mary
RU 278 Tank Battery in Uintah County, UT.

At the time of the inspection, the DAQ documented the following potential violations:

- Fugitive VOC emissions from the water dump valve associated with the on-site separator.

- Fugitive VOC emissions from Oil Tank #3. Leak was observed to be coming from under the
insulation of the tank.

AO Conditions/Rules

Utah Administrative Code R307-501-4

(1) General requirements for prevention of emissions and use of good air pollution control practices.

(a) All crude oil, condensate, and intermediate hydrocarbon liquids collection, storage, processing and
handling operations, regardless of size, shall be designed, operated and maintained so as to
minimize emission of volatile organic compounds to the atmosphere to the extent reasonably
practicable.

(b) At all times, including periods of start-up, shutdown, and malfunction, the installation and air
pollution control equipment shall be maintained and operated in a manner consistent with good air
pollution control practices for minimizing emissions.

(c) Determination of whether or not acceptable operating and maintenance procedures are being used
will be based on information available to the director, which may include, but is not limited to,
monitoring results, infrared camera images, opacity observations, review of operating and
maintenance procedures, and inspection of the source.

The purpose of a Compliance Advisory (CA) is to document observations made by the DAQ. You are
responsible for complying with the Utah Air Conservation Rules. There are possible administrative and
civil penalties for failing to do so. Section 19-2-115 of the Utah Code Annotated provides that violators
of the Utah Air Conservation Act and/or any order issued there under may be subject to a civil penalty of
up to $10,000 per day for each violation.

The written response to this CA will be considered in resolving the deficiencies documented in this letter.
It may include information demonstrating compliance with the regulations or a schedule to bring your
company back into compliance with the applicable regulations. The DAQ will review your response and
this CA may be revised as a result of that review. Failure to respond in writing within ten (10) business
days of receipt of this CA will be considered in any subsequent enforcement action and the assessment of
penalties.

DAQC-179-24
Page 3

Possible DAQ actions to resolve a CA include: No Further Action Letter, Warning Letter, Early
Administrative Settlement with reduced civil penalty, Settlement Agreement with civil penalty, or Notice
of Violation and Order to Comply.

This CA does not limit or preclude the DAQ from pursuing enforcement options concerning this
inspection. Also, this CA does not constitute a bar to enforcement action for conditions that the DAQ did
not observe or evaluate, or any other conditions found during future inspections.

A meeting may be requested to discuss this CA. Please contact Kyle Greenberg at 385-306-6533 or
[e-mail] if you would like to request a meeting or if you have any questions about this
letter.