Ohio Department of Natural Resources JOHN R. GOVERNOR JAMES ZEHRINGER. DIRECTOR Richard J. Simmers, Chief Division of Oil and Gas Resources Management 2045 Morse Road Bldg. F-2 Columbus. OH 43229-6693 Phone: (614) 265-6922. Fax: (614) 265-6910 ORDER BY THE CHIEF March 10, 2015 ORDER NO. 2015-66 TO: Anchor Drilling Fluids USA, Inc. 2400-A Clark Avenue Wellsville, OH 43968 RE: Anchor Drilling Fluids USA, Inc. Hammondsville Location Jefferson County SUBJECT: Cease Storage Operations Pursuant to Ohio Revised Code Sections and 1509.22, the Chief of the Division of Oil and Gas Resources Management (??Chief? or ?Division?) issues the following Order: BACKGROUND: (1) Anchor Drilling Fluids USA, Inc. (?Anchor Drilling Fluids?) conducts storage operations at a site located on SR 213, Hammondsville, Ohio (?Anchor Drilling Hammondsville Location?). (2) Division of RC. 1509.22 states, in pertinent part, that ?On and after January 1, 2014, no person shall store, recycle, treat, process, or dispose of in this state brine or other waste substances associated with the exploration, development, well stimulation, production operations, or plugging of oil and gas resources without an order or a permit issued under this section or section 1509.06 or 1509.21 of the Revised Code or rules adopted under any of those sections.? (3) On February 1 l, 2015, the Division received a citizen inquiry regarding a site near lrondale, Ohio. According to the inquiry, the site contained a number of frac tanks labeled ?oil based mud.? Additionally, the inquiry alleged that nearby residents were complaining of constant noise, light, and traf?c near the site. Anchor Drilling Fluids USA, Inc. Chief?s Order No. 2015-66 Cease Storage Operations Anchor Drilling Fluids Hammondsville Location Page 2 of 3 (4) On February 13, 2015, Division staff visited the site of the alleged storage operation. The landowner informed the Division that the operator of the storage location was Anchor Drilling Fluids. Upon inspection, the Division determined that Anchor Drilling Fluids was storing used drilling mud and other waste substances in frac tanks at the Anchor Drilling Fluids Hammondsville Site. (5) As of the date of this Chief?s Order, Anchor Drilling Fluids has not received a permit or order from the Division to treat, process, store, or recycle brine or other waste substances at the Anchor Drilling Fluids Hammondsville location. FINDINGS: The Chief ?nds that Anchor Drilling Fluids is storing brine or other waste substances associated with the exploration, development, well stimulation, production operations, or plugging of oil and gas resources at the Anchor Drilling Fluids Hammondsville location without an order or permit in violation of RC. ORDER: IT IS HEREBY ORDERED: (1) Anchor Drilling Fluids shall cease all operations at the Anchor Drilling Fluids Hammondsville Location and remove all brine and other waste substances from the Anchor Drilling Fluids Hammondsville Location within fourteen (14) days of receipt of this Chief's Order. (2) Anchor Drilling Fluids shall remediate any contamination, as necessary, at the Anchor Drilling Fluids Hammondsville Location and shall restore the site to its previous condition. (3) Anchor Drilling Fluids shall not store, recycle, treat, process, or dispose of brine and other waste substances associated with the exploration, development, well stimulation, production operations, or plugging of oil and gas resources at the Anchor Drilling Fluids Hammondsville Location until Anchor Drilling Fluids receives a Chief Order from the Division authorizing the storage, recycling, treating, processing, or disposing of brine or other waste substances. Anchor Drilling Fluids USA, Inc. Chief?s Order No. 2015-66 Cease Storage Operations Anchor Drilling Fluids Hammondsville Location Page 3 of 3 \O,t lOiS Date Richard J. Simmermhief Division of Oil and Gas Resources Management Addressee is hereby noti?ed that this action is ?nal and effective and may be appealed pursuant to Section 1509.36 of the Ohio Revised Code. If the Order is appealed to the Ohio Oil and Gas Commission, the appeal must be in writing and must set forth the Orders complained of and the grounds upon which the appeal is based. Such appeal must be ?led with the Oil and Gas Commission, 2045 Morse Road, Building H-3, Columbus, Ohio 43229-6693, within thirty (30) days after receipt of this Order. In addition, within three (3) days after the appeal is ?led with the Oil and Gas Commission, notice of the ?ling must be submitted to Richard J. Simmers, Chief, Division of Oil and Gas Resources Management, Ohio Department of Natural Resources, 2045 Morse Road, Building F, Columbus, Ohio 43229-6693. ?ll 71m ass]. mat: l?llS 1521 cc: Eric Vendel, Legal Counsel, DOGRM Brent Bear, Region Supervisor Steve Opritza, Permitting Manager Engineering Section Brandon Trigg, Jefferson County Oil and Gas InSpector