DAQ-2024-004252

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-005-24
Site ID 14119 (B1)

Scott Nowak
Paradox Resources, LLC
500 Dallas Street, Suite 1650
Houston, TX 77002-4701

Dear Mr. Nowak:

Re: Compliance Advisory, No Further Action – Paradox Midstream, LLC (Paradox Resources,
LLC) – Bullhorn Natural Gas Compressor Station – San Juan County

On June 5, 2023, the Utah Division of Air Quality (DAQ) sent Paradox Midstream Bullhorn
Natural Gas Compressor Station a compliance advisory (DAQC-582-23) for potential violations
of the Utah Air Quality Rules. Paradox Midstream submitted additional information showing that
the company has filed chapter 11 bankruptcy. On August 3, 2023, the DAQ filed a Proof of
Claims against the bankruptcy estate of Paradox Resources, LLC (Paradox Midstream, LLC), in
relation to the potential violations outlined in the compliance advisory referenced above. Based on
the additional information provided to the DAQ, the Proof of Claims will be settled in court.
Please be aware that closure of this compliance advisory does not constitute a bar to enforcement
action for conditions found during other inspections.

If you have any questions regarding this letter, please contact me at [phone] or at
[e-mail].

Sincerely,

Rik Ombach, Manager
Minor Source Oil and Gas Compliance Section

RO:KG:rh

cc: San Juan Public Health Department
January 5, 2024