February 27, 2009 Mr. Carlos Medlen, General Manager Complete Vacuum and Rental, LLC P.O. Box 190 Quitman, AR 72131 RE: Complaint Investigation Dear Mr. Medlen: On February 9, 2009, I performed a complaint investigation alleging dumping of Oil Based Drilling Fluids in a pond on the site and fluids being dumped on the ground and washing off of the site. The investigation was performed in accordance with the provisions of the Federal Clean Water Act, the Arkansas Water and Air Pollution Control Act, and the regulations promulgated thereunder. At the time of the inspection, I observed where water from a septic tank leak has washed off of the site. This is a violation of the Arkansas Water and Air Pollution Control Act (8-4-217) a, 2.

As per our discussion, you admitted that you had a septic tank leak that did flow off of the site and that the leak had been repaired approximately 2-3 weeks previously. Please be aware that in the future any such occurrence should be immediately reported to the Department then followed up with a completed written report of the incident. On the date of the investigation, I observed a steel bin on the site that contained Drilling Mud from gas wells. Storing of this material on this site would require a State No Discharge Permit. You were already storing Frac Water and Drilling Fluids in the Portable Frac Tanks at your site and were required to submit an application for a State No Discharge Permit. Storing the Drilling Mud would be covered under the same permit. You indicated that your company might be planning to empty all of the Frac Tanks of Drilling Fluids and might remove the steel bin holding Drilling Mud. You need to immediately inform Cindy Garner, Technical Assistance Manager, of the Enforcement Branch of your detailed plan of either removing the stored materials or submit an application for a State No Discharge Permit for storing the materials on the site.

The above items require your immediate attention. Please submit a written response to these findings to Cindy Garner, Technical Assistance Manager, Water Division Enforcement Branch of this Department at the following address:

Water Division Enforcement Branch Arkansas Department of Environmental Quality 5301 Northshore Drive North Little Rock, AR 72118-5317

Carlos Medlen Complete Vacuum and Rental, LLC February 27, 2009 Page 2

NPDES Report Page 2

This response should contain detailed documentation describing the course of action taken to correct the items noted. This corrective action should be completed as soon as possible, and the written response is due by March 20, 2009. For additional information you may contact the enforcement branch by telephone at 501-682-0639 or by fax at 501-682-0910. If I can be of any assistance, please contact me at 870-793-5819.

Sincerely,

Mike Kennedy District 11 Field Inspector Water Division cc: Water Division Enforcement Branch

Water Division Permits Branch

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 3

Water Division NPDES Photographic Evidence Sheet

Location: 44 Sartain Road approx. 5 miles southwest of Heber Springs, AR. (Cleburne County) Photographer: Mike Kennedy Witness: None Photo # 1 Of 12 Date: 1-7-09 Time: 1509 Description: This is a view of the pond on 1-7-09. This is looking northwest at the pond.

Photographer: Mike Kennedy Witness: Carlos Medlen, General Manager Photo # 2 Of 12 Date: 2-9-09 Time: 1433 Description: This view shows the pond drained. Mr. Medlen stated the pond was drained around 1-15-09.

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 4

Water Division NPDES Photographic Evidence Sheet Location: 44 Sartain Road approx. 5 miles southwest of Heber Springs, AR. (Cleburne County) Photographer: Mike Kennedy Witness: Carlos Medlen, General Manager Photo # 3 Of 12 Date: 2-9-09 Time: 1436 Description: This view is at the levee of the pond where the levee had been cut to drain the pond.

Photographer: Mike Kennedy Witness: Carlos Medlen, General Manager Photo # 4 Of 12 Date: 2-9-09 Time: 1436 Description: This is another view of the picture above.

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 5

Water Division NPDES Photographic Evidence Sheet Location: 44 Sartain Road approx. 5 miles southwest of Heber Springs, AR. (Cleburne County) Photographer: Mike Kennedy Witness: Carlos Medlen, General Manager Photo # 5 Of 12 Date: 2-9-09 Time: 1437 Description: This view shows where the levee was cut and water flowed down towards the woods.

Photographer: Mike Kennedy Witness: None Photo # 6 Of 12 Date: 2-9-09 Time: 1431 Description: This steel bin had Gas Well Drilling Mud in it, on the date of the investigation.

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 6

Water Division NPDES Photographic Evidence Sheet Location: 44 Sartain Road approx. 5 miles southwest of Heber Springs, AR. (Cleburne County) Photographer: Mike Kennedy Witness: None Photo # 7 Of 12 Date: 2-9-09 Time: 1433 Description: This is another view of the steel bin shown in picture #6.

Photographer: Mike Kennedy Witness: None Photo # 8 Of 12 Date: 2-9-09 Time: 1531

Description: This view of the Frac Water holding tanks does not show any leaks from the tanks or down the hill side.

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 7

Water Division NPDES Photographic Evidence Sheet Location: 44 Sartain Road approx. 5 miles southwest of Heber Springs, AR. (Cleburne County) Photographer: Mike Kennedy Witness: None Photo # 9 Of 12 Date: 2-9-09 Time: 1532

Description: This view shows what looked to be waste water from the office building where the facility had a septic tank repaired approx. 3 weeks previously. This is on the southwest side of the site.

Photographer: Mike Kennedy Witness: None Photo # 10 Of 12 Date: 2-9-09 Time: 1532 Description: This is farther down the draw, which runs north down hill away from the office building.

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 8

Water Division NPDES Photographic Evidence Sheet Location: 44 Sartain Road approx. 5 miles southwest of Heber Springs, AR. (Cleburne County) Photographer: Mike Kennedy Witness: None Photo # 11 Of 12 Date: 2-9-09 Time: 1538

Description: This view shows where the water flows out of the woods approx.75-90 yards north of the office building.

Photographer: Mike Kennedy Witness: None Photo # 12 Of 12 Date: 2-9-09 Time: 1536

Description: This view shows the water flowing across a pasture then down into some more woods. There was no odor associated with the water and no observed oil sheen on the water or on the ground.

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 9

WATER DIVISION NPDES COMPLAINT REPORT AFIN: N/A GPS LOCATION: N35º26´08.891" W92º06´06.705" PERMIT#: N/A

DATE RECEIVED: February 2, 2009 COUNTY: Cleburne COMPLAINANT NAME: Anonymous COMPLAINT AGAINST: Complete Vacuum & Rental, LLC ADDRESS: N/A ADDRESS: P.O. Box 190, Quitman, AR 72131 PHONE: N/A PHONE: 501-206-0216

TRACKING & REFERRAL INFORMATION PERSON RECEIVING REPORT: Eric Fleming

DATE: 2-10-09

SUPERVISOR REFERRAL:

DATE:

INSPECTOR REFERRAL: Mike Kennedy

DATE: 2-10-09

MEDIA SUPERVISOR REFERRAL:

DATE:

PHONE REFERRAL CONTACT:

DATE:

RECEIVING INSPECTOR:

DATE:

COMPLAINT RECEIVED BY: PHONE LETTER VERBAL INTERNET EMAIL DETAILED DESCRIPTION

Complainant alleged that the company was dumping Frac Water, Back Flow Water and Production Water dumped into the pond. Also alleged dumping of Frac Water from tanks onsite down a hill side behind the Frac Tanks already on the site.

LOCATION Physical Address: 44 Sartain Road Drive on Highway #25 south of Heber Springs, Arkansas, approx. 5 miles to Sartain Road. The facility is located approx. 100 yards down this road on the north side. PREVIOUS COMPLAINT: YES NO DATES: 9-22-08 & 1-2-09 DISCHARGE TO STREAM: YES NO NAME OF STREAM:

INVESTIGATION INSPECTOR: Mike Kennedy

DATE: February 9, 2009

ACTION TAKEN: PHOTOS TAKEN: YES NO Upon arrival at the facility, the Inspector met with Mr. Carlos Medlen, General Manager who took the Inspector around the site. Mr. Medlin was informed of the complaint that had been filed. The pond where the Water Inspector had been requested to take Chloride samples had been drained. Mr. Medlen stated that approx. 3 weeks previously a truck had driven up on the levee to pump water from the pond and the levee was damaged. The company decided to drain the pond. Mr. Medlen also stated that his company had not been draining any tanks holding Frac Water from his facility, only temporarily storing the water to later haul the water for proper disposal. He did state that the septic tank to the office building had shown that it was leaking and that the sewer water had leaked into the draw on the west side of the property. This lasted approx. 7 days, and then the septic tank was repaired approx. 2 weeks previously. The Inspector observed that the ditch had a gray color, but there was no observed evidence of any oil sheen on the water or on the banks of the stream and there was no noted odor to the water. Mr. Medlen was informed that any discharge of any kind should be immediately reported to the Department. Mr. Medlen was informed that in addition to the Frac Tanks holding Frac Water requiring a State No Discharge Permit, a steel bin observed containing the Drilling Mud from the gas wells located at the site also required a State No Discharge Permit. Both of these activities would be covered under the same permit. Mr. Medlen stated that his company was planning on removing the steel bin containing the Drilling Mud and emptying out the tanks that temporarily stored the Frac Water. Mr. Medlen was informed to immediately contact Cindy Garner, Technical Assistance Manager and inform her of the company’s plans and then follow up with a detailed written response concerning the company’s plan addressing the Frac Water and Drilling Mud being stored on the site. As of 2-9-09, the company had not submitted the application for the State No Discharge Permit FURTHER ACTION:

ADEQ Water NPDES Inspection AFIN: None Permit #: None

NPDES Report Page 10

No letter will be forwarded to Mr. Medlen requiring his company to submit a written response concerning storing the Frac Water and Drilling Mud on the site or submit an application for a State No Discharge Permit to temporarily store the materials on the site.

SIGNATURE: Mike Kennedy DATE: February 11, 2009

April 7, 2009 CERTIFIED MAIL: 7002 0860 0007 6833 9825 RETURN RECEIPT REQUESTED Mr. Carlos Medlen, General Manager Complete Vacuum and Rental, LLC P.O. Box 190 Quitman, AR 72131 RE: Complaint Investigation of February 9, 2009; Failure to Respond Dear Mr. Medlen: On February 9, 2009, a complaint investigation was conducted by District Field Inspector Mike Kennedy at your facility located on 44 Sartrain Road south of Heber Springs in Cleburne County. Notice of the Investigation, a copy of which is enclosed, was mailed to you by Mr. Kennedy on February 27, 2009. A response was requested by March 20, 2009. As of the date of this letter, a response has not been received. Please be advised that a continuing lack of cooperation in this matter could be a factor in determining the amount of the penalty in any formal enforcement action that may be taken in this matter. Please submit a response to the investigation findings, and any mitigating circumstances you wish the Department to consider prior to initiating formal enforcement actions, to the Department by April 21, 2009. Thank you for your attention to this matter. Should you have any questions, feel free to contact me at 501-682-0649 or you may e-mail me at sawyer@adeq.state.ar.us. For information specifically on obtaining a State Permit for the facility as mentioned in Mr. Kennedy’s letter, please contact Engineer Supervisor Cara Hill at 501-682-0045 or via e-mail at HILLC@adeq.state.ar.us. Sincerely,

Samuel P. Sawyer Program Support Manager Enforcement Branch Water Division Enclosure

May 4, 2009 CERTIFIED MAIL: 7002 0860 0007 6833 9856 RETURN RECEIPT REQUESTED Complete Vacuum and Rental, LLC P.O. Box 630 Carthage, TX 75633 RE: Complaint Investigation of February 9, 2009; Failure to Respond Gentlemen: On February 9, 2009, a complaint investigation was conducted by District Field Inspector Mike Kennedy at your facility located on 44 Sartrain Road south of Heber Springs in Cleburne County, Arkansas. Notice of the Investigation was sent to the following address by Mr. Kennedy on February 27, 2009: P.O. Box 190, Quitman, AR 72131. A response was requested by March 20, 2009. After no response was received, I sent a second request for a response via Certified Mail on April 7, 2009. The letter included a request to submit a response by April 21, 2009. However, it was returned by the Postal Service with indication that attempts at delivery were made on April 8, April 16, and April 23, 2009. Copies of the above correspondence and Mr. Kennedy’s complaint form are enclosed. Please be advised that a continuing lack of cooperation in this matter could be a factor in determining the amount of the penalty in any formal enforcement action that may be taken in this matter. Please submit a response to the investigation findings, and any mitigating circumstances you wish the Department to consider prior to initiating formal enforcement actions, to the Department by April 21, 2009. If there is a better address to which correspondence for the Cleburne County facility should be sent, please also furnish that. Thank you for your attention to this matter. Should you have any questions, feel free to contact me at 501-682-0649 or you may e-mail me at sawyer@adeq.state.ar.us. For information specifically on obtaining a State Permit for the facility as mentioned in Mr. Kennedy’s letter, please contact Engineer Supervisor Cara Hill at 501-682-0045 or via e-mail at HILLC@adeq.state.ar.us. Sincerely,

Samuel P. Sawyer Program Support Manager Enforcement Branch Water Division Enclosure

May 5, 2009 CERTIFIED MAIL: 7002 0860 0007 6833 9863 RETURN RECEIPT REQUESTED Complete Vacuum and Rental, LLC P.O. Box 630 Carthage, TX 75633 RE: Correction of Deadline in Previous Letter Dated May 4, 2009 Complaint Investigation of February 9, 2009; Failure to Respond Gentlemen: Please see the attached copy of a letter dated May 4, 2009 concerning the lack of a response to previous correspondence sent to your facility in Cleburne County, Arkansas. The May 4 letter erroneously included a request for a response by April 21, 2009. Please be advised that the actual deadline for a response is May 19, 2009. Thank you for your attention to this matter. Should you have any questions, feel free to contact me at 501-682-0649 or you may e-mail me at sawyer@adeq.state.ar.us. For information specifically on obtaining a State Permit for the facility in Arkansas, please contact Engineer Supervisor Cara Hill at 501-682-0045 or via e-mail at HILLC@adeq.state.ar.us. Sincerely,

Samuel P. Sawyer Program Support Manager Enforcement Branch Water Division Enclosure

June 22, 2009 Mr. Carlos Medlen, Manager Complete Vacuum and Rental, LLC P.O. Box 190 Quitman, AR 72131 RE: Complete Vacuum and Rental, Cleburne County, Arkansas, Response to Inspection Dear Mr. Medlen: The Department has received your response to the February 9, 2009, inspection of your facility by our District Field Inspector, Mike Kennedy. Your letter appears to adequately address the discrepancies identified during the visit. The Department assumes the corrective actions taken will be maintained to ensure consistent compliance with the requirements of the permit. Acceptance of this response by the Department does not preclude any future enforcement action deemed necessary at this site or any other site. The Department will keep the inspection and response on file. If future violations occur that require enforcement action, the Department will consider the inspection and response as required by the Pollution Control and Ecology Commission Regulation No. 7, Civil Penalties. This regulation requires the Department to consider the past history of your company and how expeditiously the violations were addressed in determining any civil penalty that may be necessary for any future violations. If we need further information concerning this matter, we will contact you. Thank you for your attention to this matter. Should you have any questions, feel free to contact me at 501-682-0636 or you may e-mail me at boycej@adeq.state.ar.us. Sincerely, James D. Boyce Enforcement Administrator Water Division, Enforcement Branch