DAQ-2025-001569

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DAQC-PBR034060001-25
Site ID 3406 (B1) MEMORANDUM

TO: FILE – SCOUT ENERGY MANAGEMENT LLC – Federal 10-24-8-16

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

FROM: Chris Jensen, Environmental Scientist

DATE: March 17, 2025

SUBJECT: OIL AND GAS PERMIT-BY-RULE EVALUATION

INSPECTION DATE: March 12, 2025

SOURCE LOCATION: Lat: -110.06533 Long: 40.10175

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

SOURCE TYPE: Disposal Facility/Water Injection
Duchesne
API: 4301332366, 4301333958

SOURCE CONTACTS: Chris Breitling, Corporate Environmental Contact
Phone: [phone], Email: [e-mail]
Kevan Stevens, Field Contact

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
DOGM current 12 month rolling production is: 0 BBLs.
Utah Statute R307-506 requires a source with throughput
greater than 8,000 BBLs to have controls.

REGISTERED EQUIPMENT: Engine - Natural Gas 2-Stroke Lean Burn Make - Ajax Model -
E-565 Mfg Year - 2014 Horse Power - 40 Combustion - Natural
Gas, Pneumatic
# - $ . ) . )
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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. This source was surveyed for leaks by OGI camera. 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. Emission Inventory An emissions inventory has been submitted within the past three years. [R307-150-9(1)] In Compliance. The operator submitted for the 2020 emissions inventory. The results for the 2023 inventory have not yet been released. Oil and Gas Industry Registration Requirement The source is registered with the DAQ. [R307-505-3(3)] In Compliance. Registration has been updated within 30 days of a company name change, removal or addition of control devices, or termination of operations. [R307-505-3(3)] In Compliance.
PREVIOUS ENFORCEMENT
ACTIONS: None in the past 5 years.

COMPLIANCE STATUS &
RECOMMENDATIONS: 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. This is a water injection well for enhanced
recovery. The only emissions sources are a wall heater and the
fuel supply piping. Additionally, this source has an oil well
registered as well as engines etc. in TEMPO. There is not
currently any production equipment onsite nor an additional
wellhead. The API listed is for a well that has been plugged and
abandoned according to DOGM records. The DAQ recommends
that the equipment and API number for that well be removed
from 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