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HomeMy WebLinkAboutDSHW-2024-009465ATTACHMENT A – E&P WASTE FACILITY TEMPORARY PERMIT APPLICATION 1 Division of Waste Management and Radiation Control Solid Waste Management Program Mailing Address Office Location Phone (801) 536-0200 P.O. Box 144880 195 North 1950 West Fax (801) 536-0222 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 Facility Address (Street or Directions to Facility) County City. Zip Code Telephone Township Range Section Quarter Section Quarter/Quarter Section Main Gate Latitude: Longitude: II.Existing E&P Facilities ☐Open Landfarm Cell(s)☐Evaporation Pond(s) Number of Open Landfarm Cells: Number of Evaporation Ponds: III.Facilities to be Permitted by DWMRC ☐Landfill Cell(s)☐Surface Impoundment(s) Number of Landfill Cells: Number of Surface Impoundments: III.Facility Owner(s) Information Legal Name of Facility Owner Mailing Address City State Zip Code Telephone IV.Facility Operator(s) Information Legal Name of Facility Operator Mailing Address City State Zip Code Telephone V.Property Owner(s) Information Is the property leased? Name of Property Owner Mailing Address City State Zip Code Telephone VI.Designated Contact Information Facility Owner Designated Contact (if different than above) Title Eight Mile Flat Evaporation Facility Uintah County Myton 84052 14.6 miles south/southwest of Myton, Utah 9 South 18 East 29 4 Monarch Midstream LLC 5613 DTC Parkway, suite 310 Greenwood Village CO 80111 Monarch Midstream LLC 5613 DTC Parkway, suite 310 Greenwood Village CO 80111 Glen Hicks 11757 Katy Freeway, Ste. 500 Houston TX 77079 No (720) 381-4585 (720) 381-4585 Glen Hicks Engineering Manager  39° 58’ 55.543” N 109° 50’ 51.125” W (832)-280-5075 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: acres Disposal Area: 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)  11757 Katy Freeway, Ste. 500 11757 Katy Freeway, Ste. 500 Glen Hicks Engineering Manager Houston TX 77079 (832)-280-507  (724) 263-6199 (724) 263-6199 (832)-280-507 77079TXHouston ghicks@mngllc.com ghicks@mngllc.com ATTACHMENT B – FACILITY MAP Facility Map – E & P Waste Impoundment Figure 1 - Monarch Midstream Facility Map 8-Mile Flat Evaporation Facility The facility is comprised of four, permanently lined ponds capable of containing a volume as shown below, without utilizing 2-feet of freeboard: • Pit #1: 236,303 BBL; • Pit #2: 98,9 908 BBL; • Pit #3: 268,839 BBL; • Pit #4: 242,639 BBL. Additionally, the headworks, consisting of three tanks, holds an additional 4,952 barrels. Each pond is double lined with 60 mil primary and 40 mil secondary HDPE liner, with a drain media in between, which will drain to leak detection observation sumps. A compacted secondary containment berm is located around the outside perimeter of the four ponds. ATTACHMENT C – DIVISION OF OIL, GAS, AND MINING PERMIT C urrent Permit to Operate Issued February 27, 2019 State of Utah DEPARTMENT OF NATURAL RESOURCES GARY R. HERBERT Governor SPENCER J. COX Lieutenant Governor MICHAEL R. STYLER Executive Director Division of Oil, Gas and Mining JOHN R. BAZA Division Director Permit to Operate ******************** Facility Name:Eight Mile Flat Facility Type: Commercial Waste Disposal Facility Location: Section 29, Township 9S, Range 18E County:Uintah Approval Date:February 27, 2019 1. Issued to: Monarch Natural Gas, LLC (83690) 2. Authority: Pursuant to Utah Code Ann. §§ 40-6-1 et seq., and Utah Admin. Code §§ R649-9 et seq., the Utah Division of Oil, Gas and Mining (“Division”) issues this Permit to operate an E and P waste disposal 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 disposal 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 disposal 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 disposal facility permit, the disposal facility shall not accept E and P waste during the suspension period. 4. General: 4.1 Effect on Prior Permits. This Permit supersedes any existing E and P waste disposal 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 Monarch’s “Permit Renewal Application” dated 5/25/2018 and received by the Division on 6/7/2018, (“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 §§ R649-9 et seq.. 5. Reporting and Recordkeeping Requirements: 1594 West North Temple, Suite 1210, PO Box 145801, Salt Lake City, UT 84114-5801 telephone (801) 538-5340 x facsimile (801) 359-3940 x TTY (801) 538-7458 x www.ogm.utah.gov Sundry Number: 94516 RECEIVED:Mar. 05, 2019 The Facility shall comply with the reporting and recordkeeping requirements in Utah Admin. Code § R649-9-11. 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 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 Eight Mile Flat 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 §§ R649-9 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, Permit Manager: 801-538-5303 Bart Kettle, Operations Manager: 435-820-0862 Ammon McDonald, Environmental Scientist: 801-538-5337 Approved By: ________________________ By: Dayne Doucet Title: Permit Manager Sundry Number: 94516 RECEIVED:Mar. 05, 2019 Dayne Doucet Digitally signed by Dayne Doucet DN: cn=Dayne Doucet, o=DNR, ou=DOGM, email=daynedoucet@utah.gov, c=US Date: 2019.03.05 08:32:43 -07'00' Conditions of Approval: 1. Evaporation Facilities 1.1 A minimum of 2 feet of freeboard shall be maintained in the pit(s) at all times, and that a method of obviously displaying the freeboard shall be devised and implemented. Utah Admin. Code § R649-9-4.6.4. 1.2 Pit(s) are to be maintained such that hydrocarbons will not collect on the surface. Hydrocarbon accumulations, other than de minimis quantities, shall be removed within 24 hours. Utah Admin. Code § R649-9-4.6.4. 1.3 Spraying water to accelerate evaporation should be closely monitored. Overspray outside the lined pit area is considered a violation. Utah Admin. Code § R649-9-4.9.2. 1.4 The leak detection system must be checked weekly. Any leak must be reported to the Division immediately, and corrective measures must be taken as directed by the Division. 1.5 The compacted secondary containment berms at the Facility shall be inspected quarterly and after a major rainstorm or windstorm to ensure integrity Utah Admin. Code § R649-9-11.3.2. 1.6 Evaporation ponds are permitted to accept produced water. 1.7 Head works review and maintenance inspections should be completed quarterly for function and sediment accumulations. FAILURE TO COMPLY WITH THE ABOVE LISTED CONDITIONS OF APPROVAL MAY RESULT IN CLOSURE OF THE FACILITY. Sundry Number: 94516 RECEIVED:Mar. 05, 2019 67$7(2)87$+:DVWH'LVSRVDO3HUPLW '(3$570(172)1$785$/5(6285&(6 $0(1'('5(3257 ',9,6,212)2,/*$6$1'0,1,1*2ULJLQDO)LOLQJ'DWH :$67(',6326$/3(50,7 1DPHRI2SHUDWRU 0RQDUFK1DWXUDO*DV//& 8WDK$FFRXQW1XPEHU  $GGUHVVRI2SHUDWRU &LW\ 6WDWH =LS '7&3DUNZD\6XLWH *UHHQZRRG9LOODJH &2  3KRQH1XPEHU  1DPHRIUG3DUW\&RQWUDFWRU 'XUDURRW//& )DFLOLW\1DPH (LJKW0LOH)ODW $GGUHVVRI&RQWUDFWRU &LW\ 6WDWH =LS :&5 .HHQHVEXUJ &2  3KRQH1XPEHU  $GGLWLRQDO&RPPHQWV 0DUFK Sundry Number: 94516 RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description RECEIVED:Mar. 05, 2019 Sundry Number: 94516 File: Detailed Site Description Sundry Number: 94516 File: Detailed Site Description Sundry Number: 94516 File: Detailed Site Description &ŽƌŝǀŝƐŝŽŶhƐĞKŶůLJ Compliance Review Completed: No outstanding compliance Active violation/compliance matter Signature: Comments &ŝǀĞzĞĂƌΘWtĂƐƚĞDisposal Facility Wermit Renewal Checkůisƚ WĞƌŵŝƚZĞŶĞǁĂůƉƉůŝĐĂƚŝŽŶ^ƵďŵŝƐƐŝŽŶ ^ƵďŵŝƚĂŶĂƐƐĞƐƐŵĞŶƚŽĨƐŝƚĞƌĞĐůĂŵĂƚŝŽŶƌĞƋƵŝƌĞŵĞŶƚƐĨƌŽŵĂĐĞƌƚŝĨŝĞĚ ƚŚŝƌĚƉĂƌƚLJĐŽŶƚƌĂĐƚŽƌZϲϰϵͲϵͲϴ͘Ϯ ^ƵďŵŝƚĐůŽƐƵƌĞĐŽƐƚĞƐƚŝŵĂƚĞƐĨƌŽŵĂĐĞƌƚŝĨŝĞĚƚŚŝƌĚƉĂƌƚLJĐŽŶƚƌĂĐƚŽƌ ZϲϰϵͲϵͲϴ͘Ϯ WƌŽǀŝĚĞďŽŶĚĂŵŽƵŶƚĂƉƉƌŽǀĞĚďLJƚŚĞŝǀŝƐŝŽŶZϲϰϵͲϵͲϴ ĞƚĂŝůĞĚ^ŝƚĞĞƐĐƌŝƉƚŝŽŶ &ƵŶĐƚŝŽŶŽĨƚŚĞǁĂƐƚĞĚŝƐƉŽƐĂůĨĂĐŝůŝƚLJ ƵƌƌĞŶƚĨĂĐŝůŝƚLJŵĂƉ ^ŝƚĞĚĞƐĐƌŝƉƚŝŽŶƐĂŶŶŽƚĂƚĞĚǁŝƚŚĨĂĐŝůŝƚLJŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚĂƐƐŽĐŝĂƚĞĚĨƵŶĐƚŝŽŶ ŽŶƚĂŵŝŶĂƚŝŽŶƐƐĞƐƐŵĞŶƚ ĞƐĐƌŝƉƚŝŽŶŽĨĞdžŝƐƚŝŶŐĐŽŶƚĂŵŝŶĂƚŝŽŶǁŝƚŚƐĂŵƉůĞƌĞƐƵůƚƐ WƌŽƉŽƐĞĚŵŽŶŝƚŽƌŝŶŐͬƌĞŵĞĚŝĂƚŝŽŶ WƌŽƉŽƐĞĚƉƌĂĐƚŝĐĞƐƚŽƉƌĞǀĞŶƚĨƵƌƚŚĞƌĐŽŶƚĂŵŝŶĂƚŝŽŶ ƋƵŝƉŵĞŶƚƐƐĞƐƐŵĞŶƚ ĞƐĐƌŝƉƚŝŽŶĂŶĚĂƐƐĞƐƐŵĞŶƚŽĨĞƋƵŝƉŵĞŶƚůŽĐĂƚĞĚĂƚƚŚĞĨĂĐŝůŝƚLJ ĞƐĐƌŝďĞŝŶĚĞƚĂŝůƐĞƌǀŝĐĞůŝĨĞĨŽƌĞƋƵŝƉŵĞŶƚƵƐĞĚŝŶĨĂĐŝůŝƚLJŽƉĞƌĂƚŝŽŶƐĞƐĐƌŝƉƚŝŽŶŽĨƚĞƐƚŝŶŐ ĐŽŵƉůĞƚĞĚĨŽƌĞƋƵŝƉŵĞŶƚ;ƚĂŶŬƐ͕ƉŝƉŝŶŐ͕ůŝŶĞƌƐ͕ůĞĂŬĚĞƚĞĐƚŝŽŶĞƋƵŝƉŵĞŶƚ͕ĞǀĂƉŽƌĂƚŝŽŶĨĂŶƐͿ WƌĂĐƚŝĐĞƐƐƐĞƐƐŵĞŶƚ ƐƐĞƐƐŵĞŶƚŽĨŵĂŶĂŐĞŵĞŶƚƉƌĂĐƚŝĐĞƐƵƚŝůŝnjĞĚƚŽŽƉĞƌĂƚĞƚŚĞĨĂĐŝůŝƚLJ/ĚĞŶƚŝĨLJĂůƚĞƌŶĂƚŝǀĞ ƉƌĂĐƚŝĐĞƐǁŚŝĐŚĐŽƵůĚŝŵƉƌŽǀĞŽƉĞƌĂƚŝŽŶƐŽƌƌĞĚƵĐĞƉƌŽďĂďŝůŝƚLJŽĨĨƵƚƵƌĞĐŽŶƚĂŵŝŶĂƚŝŽŶ Name of &ĂĐŝůŝƚLJOperator: Name of &ĂĐŝůŝƚLJ͗ >ŽĐĂƚŝŽŶ͗ ĂƚĞ͗ WƌĞƉĂƌĞƌ͗ ĂƚĞ /ŶŝƚŝĂůƐ ĂƚĞ/ŶŝƚŝĂůƐ ZĞĐĞŝǀĞĚ ZĞǀŝĞǁĞĚ ZĞǀŝĞǁŽŵƉůĞƚĞĚ͗ƉƉůŝĐĂƚŝŽŶ^ƚĂƚƵƐ͗ WWZKs &ŽƌŝǀŝƐŝŽŶhƐĞKŶůLJĞůŽǁdŚŝƐ>ŝŶĞ Wolverine Gas & Oil Company of Utah, LLC Central Facility Sigurd Sigurd, UT 06/18/18 Jones & DeMille Engineering ✔ Bart Kettle Digitally signed by Bart Kettle Date: 2018.12.28 16:12:10 -07'00' 06/18/18 DKD 12/28/18 BTK 06/18/18 BW 09/13/18 BW 06/18/18 BW 09/13/18 BW $ 184,000 Completed application received. Dayne Doucet Digitally signed by Dayne Doucet DN: cn=Dayne Doucet, o=DNR, ou=DOGM, email=daynedoucet@utah.gov, c=US Date: 2018.12.31 09:05:46 -07'00'✔ 12/28/18 BTK Diagram provided Figure 1. as well as engineer drawing page 12-18 12/28/18 BTK No known leaks previous to application. Reported daily monitoring. Reported daily walking of impoundments. 12/28/18 BTK 50 yrs HDPE Liner, 15 yrs Valves, pipe and monitoring wells 20 yrs 12/28/18 BTK Recommend continuing current protocol of routine visual inspections and leak detection checks. /ŶĨƌĂƐƚƌƵĐƚƵƌĞZĞŵŽǀĂůŽƐƚƐ Contouring or RegradingŽƐƚƐ SeediŶŐŽƐƚƐ Notes: ŽŶƚĂŵŝŶĂƚŝŽŶŽƐƚƐ ƐƚŝŵĂƚŝŶŐůŽƐƵƌĞŽƐƚĂŶĚŽŶĚŝŶŐǀĂůƵĂƚŝŽŶ ZĞŵŽǀĂůͬZĞŵĞĚŝĂƚŝŽŶ ^ĂŵƉůŝŶŐ WŽƐƚĐůŽƐƵƌĞŵŽŶŝƚŽƌŝŶŐ džƉĞŶƐĞƐƚŽƌĞŵŽǀĞĂůůŝŶĨƌĂƐƚƌƵĐƚƵƌĞĂŶĚĞƋƵŝƉŵĞŶƚ WƌŽũĞĐƚĞdžƉĞŶƐĞƚŽĐŽŶƚŽƵƌƐŝƚĞďĂĐŬƚŽŽƌŝŐŝŶĂůŐƌĂĚĞ sŽůƵŵĞƐŽĨŵĂƚĞƌŝĂů ƋƵŝƉŵĞŶƚĐŽƐƚƐ >ĂďŽƌĐŽƐƚƐ DĞƚŚŽĚŽĨƌĞƐĞĞĚŝŶŐ ^ƉĞĐŝĞƐƵƐĞĚĨŽƌƌĞǀĞŐĞƚĂƚŝŽŶ ĂƚĞ/ŶŝƚŝĂůƐ ZĞĐĞŝǀĞĚ Comments DŽŶŝƚŽƌŝŶŐWƌŽŐƌĂŵ ĞƚĂŝůĞĚĚĞƐĐƌŝƉƚŝŽŶŽĨŵŽŶŝƚŽƌŝŶŐƉƌŽŐƌĂŵƐŝŶƵƐĞŽƌďĞŝŶŐƉƌŽƉŽƐĞĚ;ǀŝƐƵĂůŝŶƐƉĞĐƚŝŽŶƐŽĨ ĞƋƵŝƉŵĞŶƚ͕ƉƌĞƐƐƵƌĞƚĞƐƚƐ͕ůĞĂŬĚĞƚĞĐƚŝŽŶƐLJƐƚĞŵƐ͕ǁĂƐƚĞĂĐĐŽƵŶƚĂďŝůŝƚLJ͕ĂƵƚŽŵĂƚĞĚƐLJƐƚĞŵƐ͕ ƉƌŽƉŽƐĞĚƉƌĂĐƚŝĐĞƐǁŚŝĐŚĐĂŶƌĞĚƵĐĞƚŚĞƌŝƐŬŽĨĨƵƚƵƌĞĐŽŶƚĂŵŝŶĂƚŝŽŶͿ 12/28/18 BTK Daily monitoring reported of evaporation pond. 06/18/18 BW 06/18/18 BW 06/18/18 BW 06/18/18 BW This bond estimate looks good. They have submitted their bond of $184,000.00. 12/28/2018- complete application. Reclamation plan provided in addition to cost estimate to reclaim facility. Recommend standard COA's for facility- BTK ATTACHMENT D – DIVISION OF OIL, GAS, AND MINING BONDING GARY R. HERBERT Governor SPENCER J. COX /LHXWHQDQW*RYHUQRU State of Utah DEPARTMENT OF NATURAL RESOURCES 1594 West North Temple, Suite 1210,6DOW/DNH&LW\87 PO Box 145801, Salt Lake City, UT 84114-5801 telephone (801) 538-5340 x facsimile (801) 359-3940 x TTY (801) 538-7458 x www.ogm.utah.gov %5,$1&67((' Executive Director Division of Oil, Gas and MininJ 127,&(2)9,2/$7,21 87$+2,/$1'*$6&216(59$7,21$&7 727+()2//2:,1*23(5$725 5XOH5HIHUHQFH V  8QGHUWKHDXWKRULW\RIWKH8WDK2LODQG*DV&RQVHUYDWLRQ$FW6HFWLRQHW6HT8WDK&RGH$QQRWDWHGDV DPHQGHGWKHXQGHUVLJQHGDXWKRUL]HGUHSUHVHQWDWLYHRIWKH'LYLVLRQRI2LO*DVDQG0LQLQJ 'LYLVLRQ KDVFRQGXFWHGDQ LQVSHFWLRQRIWKHGHVFULEHGVLWHDQGRUUHFRUGVRQWKHGDWHOLVWHGEHORZDQGKDVIRXQGDOOHJHGYLRODWLRQ V RIWKHDFWUXOHV RUSHUPLWFRQGLWLRQVDVGHVFULEHGEHORZ 'HVFULSWLRQRI9LRODWLRQ V  :HOO V RU)DFLOLW\LQ9LRODWLRQOLVWHGRQQH[WSDJH 3DJHRI -2+15%$=$ 'LYLVLRQ'LUHFWRU Date of Mailing: Certified Mail No.: &RPSOLDQFH'HDGOLQH Company Representative Monarch Natural Gas, LLC 5613 DTC Parkway, Suite 310 Greenwood Village, CO, 80111 3/16/2020 7017 1070 0000 9113 6775 3/18/2020 Hole in the liner of Pond #3 was discovered by the operator and was not reported the division. All unauthorized discharges and spills from disposal facilities including water observed in a leak detection system shall be reported, within 24 hours, to the division. Rule R649-9. Waste Management and Disposal R649-9-11.1 Well or )DFLLW\1DPH API # Date of Inspection )LQHVPD\EHOHYLHGXSWRSHUGD\IRUHYHU\ZHOOLQYLRODWLRQ 5HTXLUHG$FWLRQV JLYHQWKHDXWKRULW\SURYLGHGXQGHU8&$SDUW This notice shall remain in effect until it is modified, terminated, or vacated by a written notice of an authorized representative of the director of the Division of Oil, Gas and Mining. Failure to comply with this notice will result in the Division pursuing further actions against said operator. Further actions may include initiation of agency actions to order full cost bonding and plugging and abandonment of wells and requests for bond forfeiture and civil penalties. &RPSOLDQFH'HDGOLQH cc /LVWRI:HOO V RU)DFLOLW\LQ9LRODWLRQ 3DJHRI Provide the division a written plan of action detailing the process of transferring water and repairing the damaged liner. 3/18/2020 Petroleum Specialist (435) 790-5892 Compliance File Well / Facility File Lisha Cordova Josh Payne, Compliance Manager Bart Kettle, Acting Deputy Director-O&G Eight Mile Fat Evaporation Facility 3/11/2020 Chase Hanberg Digitally signed by Chase Hanberg DN: cn=Chase Hanberg, o=Utah Divison of Oil Gas and Mining, ou, email=chanberg@gmail.com, c=US Date: 2020.03.11 09:08:17 -06'00' Monarch Natural Gas, LLC 11/25/2019