DAQ-2024-011998

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DAQC-PBR038980001-24
Site ID 3898 (B1)

MEMORANDUM

TO: FILE – SCOUT ENERGY MANAGEMENT, LLC – Hawkeye 10-23-8-16

THROUGH: Rik Ombach, Minor Source Oil and Gas Compliance Section Manager

FROM: Chris Jensen, Environmental Scientist

DATE: December 6, 2024

SUBJECT: OIL AND GAS PERMIT-BY-RULE EVALUATION

INSPECTION DATE: December 4, 2024

SOURCE LOCATION: Lat:40.101308, Long: -110.083767
Duchesne County

Business Office:
Scout Energy Management, LLC
13800 Montfort Drive, Suite 100
Dallas, TX 75240

SOURCE TYPE: Disposal Facility / Water flood injection
API: 4301331985, 4301333261

SOURCE CONTACTS: Abby Molyneaux, Corporate Environmental Contact
Phone: [phone], Email: [e-mail]

OPERATING STATUS: Operating

PROCESS DESCRIPTION: Produced water is brought here for disposal and enhanced
recovery by underground pipeline. The water is reinjected to
flood a producing formation.

APPLICABLE REGULATIONS: Utah Administrative Code (UAC) R307-500 Series for the Oil
and Gas Industry, and UAC R307-201: Emission Standards:
General Emission Standards; and UAC R307-150: Emission
Inventories.

SOURCE EVALUATION: Site Type: PBR – Uncontrolled
No Flare Controls. The source registered: 88 Estimated Oil
BBL.
DOGM current 12 month rolling production is: 1,178 BBLs of
crude were recovered. .
Utah Statute R307-506 requires a source with throughput
greater than 8,000 BBLs to have controls.

# - $ . ) . )
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REGISTERED EQUIPMENT: Engine - Engine - Natural Gas 2-Stroke Lean Burn Make - Ajax
Model - E-42 Mfg Year - 1969 Horse Power - 40 Combustion -
Natural Gas, Pneumatic, Tank

All of this production equipment has been removed.

Visible Emissions

Visible emissions are within the following opacity limits: VOC Control Devices and Gasoline engines
0%, Diesel engines 20%, Natural Gas Engines and Boilers, Treater burners & Tank burners 10%, Mobile
source dust 10%. [R307-201-3]

In Compliance. No visible emissions were detected by use of the USEPA Method 9.

VOC emissions are, at all times, minimized as reasonably practicable by equipment design, maintenance
and operation practices. [R307-501-4(1)]

In Compliance. All equipment seems to be installed and operated as expected.
The DAQ doubts there to be emissions from a closed loop water injection.

Pneumatic Controllers

All natural gas-driven pneumatic controllers are in compliance with 40CFR 60.5390 or 60.5390a as
applicable. Tagging and record keeping requirements are not required. [R307-502-4]

In Compliance. This source does not use continuous bleed natural gas-driven pneumatic
controllers. It is electrified or manually operated with valves.

Emission Inventory:

An emissions inventory has been submitted within the past three years. [R307-150-9(1)]

In Compliance. The results for the 2023 inventory have not yet been released.

PREVIOUS ENFORCEMENT
ACTIONS: None in the past 5 years.

COMPLIANCE STATUS &
RECOMMENDATIONS: In regards to the site, the overall status is: In Compliance. The
source was surveyed by AVO and with an OGI camera and was
found to be well-kept with no visible or fugitive emissions.
Requested records were gathered in a timely manner for review
at the local field office. The oil well has now been plugged.
Only the water injection well remains. All of the production
equipment has been removed. The plugged status was confirmed
with DOGM website. Because one well remains, this source will
remain active in TEMPO.
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RECOMMENDATION FOR
NEXT INSPECTION: The DAQ has no recommendations for the next inspector other
than what are customary. The DAQ was joined by Scout
personnel during the site inspection.

RECOMMENDATIONS FOR NSR: None.

ATTACHMENTS: None.