DSHW-2024-009408

1

Division of Waste Management and
Radiation Control
Solid Waste Management Program

Mailing Address Office Location Phone [phone]
P.O. Box 144880 195 North 1950 West Fax [phone]
Salt Lake City, Utah 84114-488 Salt Lake City, Utah 84116 www.deq.utah.gov

APPLICATION FOR A TEMPORARY PERMIT TO OPERATE AN
EXPLORATION AND PRODUCTION WASTE FACILITY

In 2019, the Utah Legislature made changes to the Solid and Hazardous Waste Act, Utah Code § 19-6-
101 et seq., which required jurisdiction over the disposal of Oil and Gas Exploration and Production
Waste move from the Department of Natural Resources’ Division of Oil, Gas, and Mining (DOGM) to the
Department of Environmental Quality’s Division of Waste Management and Radiation Control (DWMRC).
In preparation for this regulatory shift, DWMRC has proposed a temporary permitting mechanism for
existing Exploration and Production (E&P) facilities as defined in the proposed Utah Admin. Code R315-
301-2(22)(a).

The proposed rules state that the Director of DWMRC may issue a temporary permit for the purposes of
facilitating the owner’s or operator’s good faith transition from regulation under Utah Admin. Code R649-9
to regulation under Utah Admin. Code R315-321 or R315-322. Applications for temporary permits must
be received by the Director of DWMRC no less than 30 days before October 1, 2024. The temporary
permits will expire one year from the effective date, which is the date the financial assurance mechanism
held by DOGM is transferred to DWMRC.

To complete a temporary permit application to operate an E&P facility, an owner or operator of an existing
E&P facility must:

1. Register the company in DWMRC’s Community Portal and complete facility information within the
Community Portal.

2. Complete the attached Exploration and Production Waste Facility Temporary Permit Application
Form.

3. Provide DWMRC with the following required documentation, to the extent it has not already been
provided to DWMRC or is not already in DWMRC’s possession:
a. Facility map with each landfarm cell, landfill cell, and surface impoundment labeled;
b. Copy of Division of Oil, Gas, and Mining Permit;
c. Copy of Division of Oil, Gas, and Mining Permit Approval/Issuance Letter; and
d. Copy of Division of Oil, Gas, and Mining Bonding (financial assurance).

4. Submit the Application Form and required documentation to DWMRC through the Community
Portal Miscellaneous Document Submission.

5. Within 120 days of DWMRC’s issuance of a temporary permit, the financial assurance
mechanism held by DOGM must be transferred to DWMRC. If the Director issues a temporary
permit, it shall not become effective until the financial assurance mechanism held by DOGM is
transferred to DWMRC. An effective temporary permit is required to operate an E&P Facility
under DWMRC’s jurisdiction.
2

Exploration and Production Waste Facility Temporary Permit Application Form
I. Facility Name and Location
Name of Facility
Bluebell Waste Management Facility
Facility Address (Street or Directions to Facility)
6000 W. 1500 N.
County
Duchesne
City
Roosevelt
Zip Code
84078
Telephone
435-722-2800
Township
T2S
Range
R2W
Section
Sec 09 & Sec 04
Quarter Section

Quarter/Quarter
Section

Main Gate Latitude: 40°19'41.12"N Longitude: 110° 7'23.86"W
II. Existing E&P Facilities
☐ Open Landfarm Cell(s)
☐ Evaporation Pond(s)
Number of Open Landfarm Cells: 3
Number of Evaporation Ponds: 2
III. Facilities to be Permitted by DWMRC
☐ Landfill Cell(s)
☐ Surface Impoundment(s)

Number of Landfill Cells:3
Number of Surface Impoundments:0

III. Facility Owner(s) Information
Legal Name of Facility Owner
R.N. Industries Inc.
Mailing Address
P.O Box 1168
City
Vernal
State
Utah
Zip Code
84087
Telephone
435-722-2800
IV. Facility Operator(s) Information
Legal Name of Facility Operator
Dalbo Holdings, Inc.
Mailing Address
P.O. Box 1168
City
Vernal
State
Utah
Zip Code
84078
Telephone
435-828-0867
V. Property Owner(s) Information
Is the property leased? No
Name of Property Owner
R.N. Industries Inc.
Mailing Address
P.O. Box 1168
City
Vernal
State
Utah
Zip Code
84078
Telephone
435-722-2800
VI. Designated Contact Information
Facility Owner Designated Contact (if different than
above)

Title

3

Mailing Address

City. State

Zip Code

Telephone

Email Address

Alternative Telephone (cell phone or other)

Facility Operator Designated Contact (if different than
above)

Title

Mailing Address

City

State

Zip Code

Telephone

Email Address

Alternative Telephone (cell phone or other)

Property Owner Contact (if different than above)

Title

Mailing Address

City

State

Zip Code

Telephone

Email Address

Alternative Telephone (cell phone or other)

VII. Waste Types to be Disposed of (check all that
apply) VIII. Facility Area
☐ Exploration and Production wastes that are exempt from
hazardous waste rules (R315-260-4(b)(5)).

☐ Very Small Quantity Generator hazardous waste
Facility Area: 196.88 acres

Disposal Area: 27.5 acres

IX. Application Documents
Indicate documents attached to this application (all are required):

☐ Facility Map with each landfarm cell, landfill cell, and surface impoundment labeled
☐ Copy of Division of Oil, Gas, and Mining Permit
☐ Copy of Division of Oil, Gas, and Mining Approval/Issuance Letter
☐ Copy of Division of Oil, Gas, and Mining Bonding (Financial Assurance)

GARY R. HERBERT
Governor
SPENCER J. COX
Lieutenant Governor
State of Utah
DEPARTMENT OF NATURAL RESOURCES
1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801
telephone [phone] x facsimile [phone] x TTY [phone] x www.ogm.utah.gov

BRIAN C. STEED
Executive Director
Division of Oil, Gas and Mining
JOHN R. BAZA
Division Director
Permit to Operate
********************
Facility Name: Bluebell
Facility Type: Waste Crude Oil Treatment Facility
Location: Section 4, Township 2S, Range 2W
County: Duchesne
Approval Date: November 13, 2020

1. Issued to:
R N Industries (80635)

2. Authority:
Pursuant to Utah Code Ann. §§ 40-6-1 et seq., and Utah Admin. Code §§ R649-6 et seq., the
Utah Division of Oil, Gas and Mining (“Division”) issues this Permit to operate a waste crude oil
treatment facility.

3. Duration:
This Permit shall expire five years from the Approval Date. The Division may revoke, suspend,
or impose additional operating conditions or limitations on a disposal facility permit at any time,
for good cause, after notice to the operator. The Division may suspend a waste crude oil
treatment permit or impose additional conditions or limitations in an emergency to forestall an
imminent threat to fresh water, public health, or safety of the environment. Suspension of a
crude oil treatment facility permit may be for a fixed period of time or until the operator
remedies the violation or potential violation. If the Division suspends a waste crude oil treatment
facility permit, the crude oil treatment facility shall not accept waste crude oil during the
suspension period.

4. General:
4.1 Effect on Prior Permits. This Permit supersedes any existing waste crude oil treatment permit
previously obtained for the Facility and provides the terms that govern operations at this
Facility.
4.2 Incorporation of Application. The Division issues this Permit in response to RNI’s “Permit
Renewal Application” dated 10/16/2020 and received by the Division on 10/16/2020,
(“Application”). The Facility shall operate in accordance with the best management practices
described in the Application.

4.3 Compliance with Applicable Laws. The Facility shall comply with Utah Code Ann. §§ 40-6-
1 et seq. and Utah Administrative Code §§ R649-6 et seq..
5. Reporting and Recordkeeping Requirements:
JOHN R BAZA

The Facility shall comply with the reporting and recordkeeping requirements in Utah Admin.
Code § R649-6-2.3.
6. Modifications:
This Permit only applies to the Facility as it is described in the Application. Any additions to the
Facility or modifications of the waste crude oil treatment processes described in the Application
are not allowed and require a permit modification.
7. Enforcement:
The issuance of this permit does not supersede local ordinances, county planning and zoning
requirements, or other permits required to conduct business at the Facility. A copy of this
approval should be kept at the Bluebell field office, and field personnel shall be aware of the
Conditions of Approval.
8. Approval:
Therefore, having met all the technical permit requirements of Utah Admin. Code §§ R649-6 et
seq., final approval to operate the Facility in accordance with this Permit is hereby granted.

9. Contact Information:
The following are Division of Oil, Gas and Mining contacts and their telephone numbers:
Dayne Doucet, Oil and Gas Permitting Manager: 801-538-5303
Bart Kettle, Interim Deputy Director: 435-820-0862
Ammon McDonald, Environmental Scientist: 801-538-5337

Approved By:
________________________
By: Dayne Doucet
Title: Oil and Gas Permitting Manager

pp y
________________________________________________
1594 West North Temple, Suite 1210 PO Box 145801 Salt Lake City, UT 84114-5801 Telephone [phone] www.ogm.utah.gov
State of Utah

SPENCER J. COX
Governor

DEIDRE M. HENDERSON
Lieutenant Governor
July 7, 2023
RN Industries
C/O Mr. Spencer Merrell
P.O. Box 1168
Vernal, UT 84078

SUBJECT: RNI Bluebell Pond #3 Reclamation
Dear Mr. Merrell:
The Utah Division of Oil, Gas and Mining (Division) received DHI Energy Service’s Proposed
Pond Closure Plan prepared for the RNI Bluebell Evaporation Facility. Division approval was
granted, for the submitted reclamation proposal.
Sampling points have shown that the soil samples, beneath Pond #3, all have hydrocarbon levels
below required clean-up standards; however, some sample points are not within the expected
background range for salinity. Areas that exceed required salt clearance levels have been
excavated down to the bedrock. The Division is of the opinion that no further reasonable actions
can be taken to continue to remediate salinity levels. The point source for salt contamination is
removed and the soils disposed of properly. Therefore, DHI Energy is hereby permitted to
continue with the final reclamation of Pond#3, as proposed in the approved Pond Closure Plan.
If you have questions, feel free to contact Ammon McDonald at [phone].
Sincerely,
Bart Kettle
Deputy Director, Oil & Gas Program
BK/AM/js
cc: Facility File
N:\O&G Permits\Disposal Facilities (Pits, LF, etc)\RN Industries (Bluebell – S4 & 9, T2S, R2W, Duchesne)
Department of Natural Resources
Division of Oil, Gas and Mining

JOEL FERRY
Executive Director
JOHN R. BAZA
Division Director

DEIDRE M. HENDERSON
Engineering & Geosciences
14425 South Center Point Way Bluffdale, Utah 84065 ~ T: [phone] ~ F: [phone]

Copyright © 2020 GeoStrata
October 16, 2020

Bart Kettle
Interim Deputy Director of Division of Oil, Gas and Mining
1594 West North Temple
Salt Lake City, Utah 84116

Subject: Waste Crude Oil Treatment Facility

Mr. Kettle,

This letter is in regard to submitting an application for a Waste Crude Oil Treatment Facility on behalf of RN
Industries (RNI). The application has been updated with a revised drawing of the oil cleaning facility layout.
This revised application is to replace the previously submitted application of August 3, 2020. All information
required for the application is attached to this letter. The Waste Crude Oil Treatment Facility will be using the
same equipment that has been part of the disposal facility and no new construction or expansion of the facility or
property is proposed in this application.

Please confirm with our office that you have received the application. If you have any questions or comments
about this application contact me at 801-501-0583 or email at [e-mail].

Sincerely,

Mike Vorkink, P.G.
GeoStrata
14425 South Center Point Way
Bluffdale, UT 84065
[phone]

Copyright © 2020, GeoStrata 1

PERMIT APPLICATION TO OPERATE AN OIL CLEANING FACILITY
AT THE
BLUEBELL DISPOSAL FACILITY
FOR
RN INDUSTRIES
DUCHESNE COUNTY, UTAH

Copyright © 2020, GeoStrata 2

1.0 INTRODUCTION
RN Industries (RNI) is submitting this permit application for the existing crude oil cleaning
facility located at its Bluebell Disposal Facility located approximately 7 miles north and west of
Roosevelt, Utah (Plate 1). The crude oil cleaning facility is currently permitted as part of the
Bluebell Disposal facility. RNI is in the process of reclaiming produced water ponds and
landfarm at the Bluebell Disposal facility, however the crude oil cleaning facility at Bluebell will
continue to operate under a Crude Oil Treatment (R649-6-2) permit as reclamation continues.

This application is requesting that the Utah Division of Oil Gas and Mining (UDOGM) allow
RNI to operate the oil cleaning facility as a Crude Oil Treatment facility. Plate 2 shows the
general layout of the facility and the equipment to be used. The equipment will consist of
fourteen (14) upright 500 BBL tanks and one (1) 2000 BBL tank, and a filter press. The storage
and processing tanks are insulated and heated. The tanks are surrounded by a containment berm
with a minimum capacity of 500 BBLS. The following sections describe the ownership, location,
type of facility, and capacity of the proposed oil cleaning facility.
1.1 OWNERSHIP
The Bluebell Disposal Facility is owned and operated by RNI. The oil cleaning facility will be
located on land owned by RNI and will be operated by RNI personnel. The entire oil cleaning
operation is on the same property that is used for the RNI Bluebell Disposal facility.
1.2 LOCATION OF THE FACILITY
The facility is located in Section 9, T2S, R2W, of the Uintah Special Meridian. The Facility is
located approximately 7 miles north and west of Roosevelt, Utah in Duchesne County. See the
Site Vicinity Map for a map of the location of the subject site (Plate 1).
1.3 DESCRIPTION OF FACILITIY
The Facility will accept waste crude oil from other RNI facilities as well as external sources that
generate crude oil in the region. The waste oil will be delivered to the Facility via truck where it
will then be transferred to a receiving tank. The tank will be heated, and oil will be allowed time
for gravitational separation to occur. When necessary, chemical flocculation to remove entrained
solids will be utilized. Oil that still maintains high solids content may be processed by an onsite
filter press or centrifuge. Upon meeting the desired crude oil specifications, the crude oil will be
stored in an oil sales tank and eventually transferred offsite via truck for sale. Access to the site
Copyright © 2020, GeoStrata 3

will be from existing roads. No additional road construction will be necessary. RNI has applied
for and will have applicable air quality permits from the Utah Division of Air Quality.

1.4 METHODS FOR HANDLING WASTE DISPOSAL
Solids generated during the oil cleaning process will be sent to the onsite landfill permitted
through the Utah Division of Waste Management and Radiation Control (UDWMRC) for
permanent storage. Wastewater generated during the oil cleaning will be sent off site to a
permitted disposal facility. As mentioned previously, the Bluebell Disposal facility is not and
will not be operating the landfarm or evaporation ponds.
1.5 CONSTRUCTION MATERIALS
The Facility has existing upright tanks that are currently onsite. The tank battery has containment
berms constructed from onsite soils.

1.6 FACILITY CAPACITY
The Facility will have a total capacity of cleaning 36,000 bbl of crude oil per year.

2.0 RECLAMATION PLAN
2.1 EXTENT AND LOCATION OF SURFACE DISTURBANCE

The Facility is located on RNI property and the tanks are already located on site. The oil cleaning
equipment and tanks will be operated on land that is already cleared and used for oil storing,
loading, and off-loading purposes. A map with the location of the equipment and roads for
access to the tanks is provided as Plate 2. The approximate area of the oil cleaning facility is 6.3
acres including the access road.

2.2 RECLAMATION PLAN

When RNI determines that there is no further need for the oil cleaning facility, the facility will be
reclaimed. Fluids will be drained from tanks and disposed at an appropriate permitted disposal
facility. Tanks will be disposed if they are not salvageable and salvageable tanks may be
removed from the site and used at other RNI facilities or sold.
Copyright © 2020, GeoStrata 4

Soils inside the containment berm or in other areas used for the oil cleaning facility operations
will be tested according to UDOGM cleanup standards and following R649-9-12. If soils are
evaluated that do not meet the UDOGM cleanup guidance these soils will be either reclaimed in
place until they meet the UDOGM standards or they may be disposed in the Bluebell Landfill.
Following disposal of the tanks, liner materials, and soils the earth work will be performed to
restore the site back to the natural grades and contours.

2.3 BONDING

The equipment and associated land surface area to be used for the oil cleaning facility is included
in the current bonding that is posted for the RNI Bluebell Disposal facility. The RNI bond that is
posted for disposal facility includes the extent of the proposed oil cleaning operation and meets
the requirements for bonding under R649-6-2.
T2S R2W 4T2S R2W 5
T2S R2W 9T2S R2W 8
T2S R2W 16T2S R2W 17
T2S R2W 3
T2S R2W 10
T2S R2W 15
T1S R2W 32 T1S R2W 33
T2S R2W 7
T1S R2W 34
T2S R2W 6
T2S R2W 18
T1S R2W 31
BluebellRN IndustriesRoosevelt, U tahProject Number 524-106
0 825 1,650 2,475 3,300412.5 Feet
1:2 4,0 00
BASE M AP: NAIP 2011 Obta ine d from the Sta te of Utah A GRC
Oil Cleaning FacilityLocation Map
Copyright GeoStrata, 2020
Plate1
Legend
Oil Cleaning Facility
Crude Oil Tank Location
Filter Press Location
Site Boundary
2 ft Secondary Containment
Filter Press Building
2000

B
B
L

T
a
n
k
Filter Press Oil Supply Tank
Filter Press Out-put Tank
Propane Tank
REV DATE BY DESCRIPTION
DUCHESNE COUNTY, UTAHSCALE
ENERGY SERVICE
BLUEBELL OIL CLEANING FACILITY
SCALE
ENERGY SERVICE
Oil Processing Tanks
Brine Tank
1:50
All locations are approximate
Plate
2
Copyright GeoStrata 2020
Out-of-service tank
Restricted Cash Balance Detail
Facility State Agency
Bonding Type Account # Issuer
RNI GL
Account
Number
Actual Interest
Rate as of
12/31/2023
Confirmed
12/31/2023
Value
YTD
ESTIMATED
Interest
Income(net of
interest
earned and
released) YTD
Y/E Interest
Adjustment
to actual
2024
Deposits Releases
Transfer
In/Out Ending Estimated Balance EOM Per GL Difference
Exceed FDIC
Per 12/31/2024
Confirm
GL Confirm
Difference
Actual
Interest Rate
as of
12/31/2023
BlueBell RNI Utah DOGM Business MM 027766005 Zions Bank
18201 see statement $144,810.23 $0.00 $91.96 reconciled at cash recon worksheet $144,821.87 reconciled at cash recon worksheet $0.00 144,810.23 -$11.64 0.75%
Glen Bench RNI Utah DOGM Business MM 027765999 Zions Bank
18202 see statement $123,860.37 $0.00 $78.66 reconciled at cash recon worksheet $123,870.33 reconciled at cash recon worksheet $0.00 123,860.37 -$9.96 0.75%
Pleasant Valley - RNI Utah Duchesne County Business MM 027765973 Zions Bank
18203 see statement $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - $0.00 0.00%
Pleasant Valley - RNI Utah DOGM Business MM 027765932 Zions Bank
18204 see statement $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - $0.00 0.00%
Seep Ridge Utah DOGM Business MM 027765940 Zions Bank
18205 see statement $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 - $0.00 0.00%
Bluebell Utah DOGM CD
579-156795-0 Zions First National 18206 5.07% $601,621.13 $17,792.94 -$404,215.86 $215,198.21 $215,198.21 $0.00 $0.00 601,621.13 $386,422.92 5.07%
Chapita Utah DOGM CD
579-156799-2 Zions First National 18207 0.19% $57,809.07 $64.07 $57,873.14 $57,873.14 $0.00 $0.00 57,809.07 -$64.07 0.19%
Chapita Utah DOGM CD
579-156796-8 Zions First National 18208 5.07% $941,783.28 $27,853.24 -$208,573.00 $761,063.52 $761,063.52 $0.00 $511,063.52 941,783.28 $180,719.76 5.07%
Glen Bench - RNI Utah DOGM CD
579-156797-6 Zions First National 18209 5.07% $643,711.72 $19,037.77 $662,749.49 $662,749.49 $0.00 $412,749.49 643,711.72 -$19,037.77 5.07%
Wonsit Utah DOGM CD
579-156798-4 Zions First National 18210 5.07% $1,201,951.28 $35,547.71 -$87,599.67 $1,149,899.32 $1,149,899.32 $0.00 $899,899.32 1,201,951.28 $52,051.96 5.07%
Ace Utah DOGM CD 579-156800-8
Zions First National 18211 5.07% $197,568.34 $5,843.08 $203,411.42 $203,411.42 $0.00 $0.00 197,568.34 -$5,843.08 5.07%
Glen Bench Utah DOGM CD 579-156801-6
Zions First National 18212 5.07% $574,582.63 $16,993.28 $591,575.91 $591,575.91 $0.00 $341,575.91 574,582.63 -$16,993.28 5.07%
Seep Ridge Utah DOGM CD 579-156803-2
Zions First National 18213 5.07% $448,453.13 $13,263.00 $461,716.13 $461,716.13 $0.00 $211,716.13 448,453.13 -$13,263.00 5.07%
Seep Ridge Utah DOGM CD 579-156804-0
Zions First National 18214 5.07% $306,868.61 $9,075.64 $315,944.25 $315,944.25 $0.00 $65,944.25 306,868.61 -$9,075.64 5.07%
Ace Utah DOGM CD 579-156805-7
Zions First National 18215 5.07% $251,995.44 $7,452.77 $259,448.21 $259,448.21 $0.00 $9,448.21 251,995.44 -$7,452.77 5.07%
Piceance Creek Colorado CDPHE CD 5780001086
Vectra Bank 18216 0.14% $138,699.61 $113.27 $138,812.88 $138,812.88 $0.00 $0.00 138,699.61 -$113.27 0.00%
Piceance Creek Colorado CDPHE CD 5780001078
Vectra Bank 18217 0.14% $195,285.46 $159.48 $195,444.94 $195,444.94 $0.00 $0.00 195,285.46 -$159.48 0.00%
Rangely Colorado CDPHE CD 11023600100407 Bank of the San Juans
18218 0.21% $285,283.72 $349.47 $285,633.19 $285,633.19 $0.00 $35,633.19 285,283.72 -$349.47 0.00%
Wonsit Pond 9 Utah Solid Waste CD 579-234585-1 Zions Bank
18219 0.19% $542,893.64 $601.71 $543,495.35 $543,495.35 $0.00 $293,495.35 542,893.64 -$601.71 0.19%
Bluebell Landfill Utah Solid Waste Savings 579-741682-2 Zions Bank
18220 0.19% $358,003.09 $396.79 $358,399.88 $358,399.88 $0.00 $108,399.88 358,003.09 -$396.79 0.19%
Chapita Utah SITLA 8911974 Zions Money Market
18221 0.19% $117,260.43 $129.96 $117,390.39 $117,390.39 $0.00 $0.00 $117,260.43 -$129.96 0.00%
TOTALS - RESTRICTED CASH $7,132,441.18 $154,674.18 $0.00 $0.00 -$700,388.53 $170.62 $6,318,056.23 $6,586,748.43 $0.00 $2,889,925.25
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