Backup Documents 04/22/2014 Item #10C 4/22/2014 10.C.
Emergency Item Added
Ann P. Jennejohn
From: Martha S.Vergara
1 0 C
Sent: Tuesday,April 22, 2014 9:23 AM
To: Minutes and Records
Subject: FW:One-way Communication -04-22-14 BCC Mtg - Add-on Item RE:Oil Well issue
Attachments: Add-on agenda Item-Oil - BCC 4-22-14 Final.doc; FDEP 12-31-13 - Cease and Desist
Order- Dan A Hughes.pdf; FDEP 04-07-14 - Consent Order 14-0012.pdf;04-18-14 -
Statement from DEP RE Consent Order.pdf;04-18-14- News-Press Article -.pdf;
04-18-14- NDN Article- DEP Fines Hughes.pdf
From: Brock, Mary Jo
Sent:Tuesday, April 22, 2014 9:14 AM
To: Martha S. Vergara
Subject: FW: One-way Communication - 04-22-14 BCC Mtg -Add-on Item RE: Oil Well issue
You are all set!
Mary-Jo Brock - Executive Assistant to Leo E.Ochs,Jr. - County Manager's Office
maryjobrock @colliergov.net
239.252.8364
From: FlanaganJim
Sent:Tuesday, April 22, 2014 8:19 AM
To: ScardinoAlexandra; SmithCamden; PettitJim; HayesKaren
Cc: OchsLeo; DurhamTim; KlatzkowJeff; BrockMaryJo
Subject: One-way Communication -04-22-14 BCC Mtg -Add-on Item RE: Oil Well issue
Please consider this a one-way communication.
Hard copies will be made available at the dais at today's meeting.
Jim Flanagan
Executive Assistant to
Tim Nance,County Commissioner, District 5
W. Harmon Turner Building
3299 Tamiami Trail East-Suite 303
Naples, FL 34112
239-252-8604
239-821-3199(cell)
JimFlanai;an @colliergov.net
Under Florida Law,e-mail addresses are public records If you do not want your e-mail address released in response to a public records request,do not send
electronic mail to this entity Instead,contact this office by telephone or in writing.
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EXECUTIVE SUMMARY Add-On Agenda Item - BCC 4-22-14 1 0 C
Recommendation to direct the Collier County Attorney, supported by staff, to file a
challenge to Consent Order (OGC File No. 14-0012) entered into on April 8, 2014 between
the State of Florida Department of Environmental Protection (FDEP) and the Dan A.
Hughes Company, L.P. regarding oil and gas well operations at the Collier-Hogan 20-311
Well (Permit No. 134911).
Challenge to request the Consent Order he modified to require additional
provisions for oversight, safeguards, and monitoring to protect the environment and insure
the health, safety, and welfare of the citizens of Collier County.
Challenge to further request a protocol be established from FDEP that improves
communication and coordination between the agencies regulating the Oil and Gas Program
and Collier County local government, and that copies be provided to Collier County of all
application packages for future oil and gas exploration, production wells, and class Il
injection wells, as well as all permit related correspondence, additional submittals, meeting
minutes, and agency action.
Additional change(s) to the Consent Order as deemed appropriate by the Board.
OBJECTIVE: For the BCC to provide direction to staff in response to newly available
information and documents, and reported developments regarding oil and gas operations in
Collier County, including the utilization of unpermitted practices new to SW Horida and
violation(s) of FDEP regulations.
CONSIDERATIONS: News articles were published on Friday, April 18`I' after 5:00pm, and
supporting documents released, regarding FDEP action against Dan A Hughes Company. L.P.
related to oil well operations at the Collier-Hogan 20-3H Well (FDEP permit 13491-1) located
north and west of the intersection of Everglades Blvd and Immokalee Road.
A Cease-and-Desist Order was issued by FDEP to Dan A Hughes Company. 1..P.,
requiring the cessation of all operations on December 31, 2013. The Cease and Desist Order was
followed by a Consent Order dated 04-08-14. Copies of both documents are attached.
There has been substantial concern expressed by citizens of Collier County and
beyond regarding oil and gas extraction proposals and operations in eastern Collier County and
the greater Big Cypress and Everglades area. Initially, concerns were expressed by residents of
Golden Gate Estates in the vicinity of 24th Ave NE adjacent to nearby lands where an oil well
has been proposed and an Oil Exploration Permit has been applied for at FDEP. The citizen's
initial encounter related to the potential oil well was a safety/disaster preparedness related letter
from the applicant's permitting consultant that sparked fear and anxiety among recipients and
nearby residents. Numerous advocacy groups have become engaged. Additional oil and gas
exploration and extraction sites have come under scrutiny.
The Florida Oil and Gas Program and related activities are regulated by Federal and
State agencies, primarily the Florida Department of Environmental Protection (MEP). and the
South Florida Water Management District (SFWMD). Despite its lack of authority. Collier
County has supported and publicized public information meetings and distributed printed
materials, to forward information and answer inquiries. Administrative challenges have been
filed with FDEP and SFWMD by numerous parties. In response, and as part of the review and
public input process, in March, several public hearings were conducted by FDEP and the US
Environmental Protection Agency (EPA) in local venues. To date, citizen concerns regarding
the Florida Oil and Gas Program in Collier County persist, and inconsistencies between
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disseminated information and applied oil well drilling practices and administration condu
FDEP, SFWMD, land owner Collier Resources, the drilling contractor Dan A. Hughes
Company, L.P., and citizens remain unresolved.
Failure to disclose newly released FDEP Orders and administrative action during recent public
meetings and hearings has further eroded public confidence in the Florida Oil and Gas Program,
regulatory agencies FDEP and SFWMD, and by association, Collier County local government.
Time Sensitivity: For the Collier BCC to file a challenge to the FDEP Consent Order as a party
of substantial interest, a petition for an administrative hearing must be filed with and received by
FDEP within 21 days of the original Consent Order, that date being on or before Tuesday,
April 29th, 2014.
FISCAL IMPACT: Staff Time /minimal additional
LEGAL CONSIDERATIONS: None
GROWTH MANAGEMENT IMPACT: None
RECOMMENDATION: Recommendation to direct the Collier County Attorney, supported by
staff, to file a challenge to Consent Order (OGC File No. 14-0012) entered into on April 8, 2014
between the State of Florida Department of Environmental Protection (FDEP) and the Dan A.
I Iughes Company, L.P. regarding oil and gas well operations at the Collier-Hogan 20-3I-1 Well
(Permit No. 1349H).
Challenge to request the Consent Order be modified to require additional provisions for
oversight, safeguards, and monitoring to protect the environment and insure the health, safety.
and welfare of the citizens of Collier County.
Challenge to further request a protocol be established from MEP that improves
communication and coordination between the agencies regulating the Oil and Gas Program and
Collier County local government, and that copies be provided to Collier County of all application
packages for future oil and gas exploration, production wells, and class II injection wells, as well
as all permit related correspondence, additional submittals, meeting minutes, and agency action.
Additional change(s) to the Consent Order as deemed appropriate by the Board.
PREPARED BY: Commissioner Tim Nance
AGENDA DATE: April 22, 2014 —Add-on Agenda Item
(5) Attachments:
• FDEP vs. Dan A Hughes Company, L.P. Consent Order dated 4-8-14
• FDEP Well 20-3H Collier Hogan— Cease and Desist Order dated 12-31-13
• FDEP Statement regarding Consent Order with Dan A. Hughes Company, L.P. —4-18-14
• Newspaper articles published in the Ft. Myers News Press and the Naples Daily News -
for reference only
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BEFORE THE STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
STATE OF FLORIDA DEPARTMENT IN THE DIVISION OF
OF ENVIRONMENTAL PROTECTION WATER RESOURCE MANAGEMENT
OGC FILE NO. 14-0012
vs.
DAN A. HUGHES COMPANY, L.P.
CONSENT ORDER
This Consent Order("Order")is entered into between the State of Florida Department of
Environmental Protection, ("Department") and the Dan A. Hughes Company, L.P. ("Company"),
to reach settlement of certain matters at issue between the Department and the Company.
1. The Department is the administrative agency of the State of Florida having the
power and duty to protect Florida's air and water resources and to administer and enforce the
provisions of Chapters 377 and 403, Florida Statutes("F. S."), and Chapters 62C-25 through
62C-30, Florida Administrative Code("F.A.C."). The Department has jurisdiction over the
matters addressed in this Order.
2. The Company is a"person"within the meaning of Section 403.161 and
403.031(5),F.S.
3. The Company obtained an Oil&Gas Well Drilling Permit from the Department
in December of 2012 (Permit No: 1349H, Collier-Hogan 20-3H Well)to construct a well to be
located at the Hogan Island Farm in Collier County, Florida.
4. Upon completion of the construction of the 20-3H Collier-Hogan Well ("Well"),
the Company obtained a Five Year Operation Permit in August of 2013 to operate the Well as an
oil production well.
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5. On December 23, 2013,the Company submitted to the Department a Workover
Notification indicating that it intended to conduct a"Workover Operation"as described in
Exhibit 1 attached hereto. This notice stated that the Company planned to commence the
Workover Operation on December 28 or 29. Subsequently, at the request of the Department,the
Company agreed to delay the Workover Operation until at least December 30 to allow the
Department more time to review and respond to the notice.
6. The Workover Operation proposed by the Company began on December 30,
2013,and continued through January 1, 2014.
7. On December 31,2013, the Department entered a Final Order Requiring
Operations at Well 20-3H Cease and Desist and served a copy of the Final Order on the
Company on December 31, 2013. A copy of the Final Order is attached hereto as Exhibit 2.
8. The Company continued the Workover Operations until approximately 2:30 PM
on the afternoon of January 1,2014.
9. The Company contends that at all times it was operating lawfully under a valid
permit and followed all applicable procedures required to conduct the Workover Operations
described in Exhibit 1.
Having reached resolution of the matter,the Department and the Company mutually
agree and it is,
ORDERED:
10. Within 10 days of the effective date of this Order, the Company shall pay the
Department $25,000 in settlement of the regulatory matters addressed in this Order. This amount
includes $20,000 for civil payments and $5,000 for costs incurred by the Department during the
investigation of this matter and the preparation and tracking of this Order.
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WELL SAFETY
11. Immediately upon execution of this Order or upon becoming available to the
Company(whichever is later), the Company shall provide to the Department the information in
paragraphs 12-14 below.
12. The Company shall provide Material Safety Data Sheets (MSDS) for all materials
used in the Workover Operation described in Exhibit 1 attached hereto, along with the proportion
and total volume of each material used in the Workover Operation.
13. The Company shall identify the total volume of water used in the Workover
Operation, and the source of the water,including the permit number if the water was obtained
from a permitted source and confirmation that the volume of water used for the Workover
Operation does not exceed any limitation set in the permit.
14. The Company shall provide the following information concerning the flowback
material management for the Well operations: (a) estimate of the total volume of flowback
material; (b) storage capacity at the pad to contain any flowback material that is anticipated to be
held onsite; (c) description of the secondary containment measures employed at the site; (d) the
final disposal location for the flowback material resulting from the Workover Operation; and(e)
and confirmation of the regulatory conditions on final disposal, including the permitting agency
and permit number(s).
15. The Company shall submit an Interim Spill Prevention and Cleanup Plan("ISPC
Plan")to be implemented at the Well. The ISPC Plan shall be submitted to the Department
within fourteen(14) days of the effective date of this Consent Order. If the Department requests
additional information or notifies the Company that the ISPC Plan is inadequate or otherwise
unacceptable,the Company shall provide the additional information or submit a revised ISPC
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Plan within the time frame,not less than fourteen(14) days,specified by the Department in the
request or notification. Implementation of the Department approved ISPC Plan constitutes
satisfaction of this requirement.
ANALYSIS AND MANAGEMENT
14. The Company shall provide information and analysis to confirm that this
Workover Operation was designed and carried out in a way that it is not likely to cause or
contribute to any violation of any applicable groundwater quality standard. The Company, at its
sole expense, shall retain independent third-party experts with the appropriate qualifications to
assess the likelihood that the Workover Operation will cause or contribute to a violation of any
applicable groundwater quality standards. This analysis shall consider at a minimum, the
potential for injected or native fluids to migrate through the deep geological formations or the
Well casing into surrounding groundwater bearing zones with total dissolved solids
concentrations of 10,000 ppm or less. The Department and the Company shall make a good faith
effort to reach mutual agreement on the selection of the third-party experts and the"Scope of
Work"to be performed by the experts within 60 days of the effective date of this Order. Neither
the Department nor the Company shall unreasonably withhold their approval of the experts or the
Scope of Work for the analysis. The Scope of Work will be limited to analyses reasonably
necessary to evaluate the likelihood that Workover Operations similar to the Workover
Operations described in Exhibit 1 will cause or contribute to any violations of any applicable
groundwater quality standards. The experts shall prepare a Report and submit the Report to the
Department by December 1, 2014.
17. Upon receipt of the Report,the Department shall review the Report and in a
timely manner determine whether it provides sufficient information to evaluate the likelihood
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that Workover Operations similar to the Workover Operations described in Exhibit 1 will cause
or contribute to any violations of any applicable groundwater quality standards. To this end,
within 30 days of the receipt of the Report the Department shall notify the Company and the
Report author of any apparent errors or omissions and request any additional information needed
to evaluate the likelihood groundwater standard violations would result from similar Workover
Operations.The Company shall provide the additional information reasonably requested by the
Department within 30 days of receipt of the Department's request. If at any time before the
study is accepted by the Department anyone files a Workover notice for a Workover Operation
similar to the Workover Operation described in Exhibit 1, the Department will respond to such
notice with a request for information similar to the Scope of Work for the Report.
18. No future Workover Operations similar to the Workover Operation described in
Exhibit 1 shall be implemented at any of the Company's wells (existing and proposed under
valid permits)until the completion and submittal of the Report described in paragraph 16. The
Department agrees to provide written notice to the Company when it has satisfied the Report
requirements of this Consent Order.
19. Within 30 days of the effective date of this Order, the Company shall submit a
groundwater monitoring plan("Plan") to the Department. The objective of the Plan is to provide
information regarding the likelihood that the Workover Operation will cause or contribute to any
violation of any groundwater standard in the nearby groundwater aquifer used as public and
private water supply. The Plan shall be developed and implemented at the expense of the
Company. The Plan shall include: (a) a one-time analytical sampling of the flowback material
prior to its final disposal. In addition to the analysis identified in Exhibit 3,the one-time
analytical sampling of the flowback material shall be conducted using the following analytical
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methods: EPA Method 350.1 —total ammonia, EPA Method 8260 with required reporting of all
target analytes and tentatively identified compounds having greater than 10% relative abundance,
EPA Method 8270 with required reporting of all target analytes and tentatively identified
compounds having greater than 10%relative abundance, EPA Method 8015C with all alcohols
and glycols using the heated purge option cited in Section 11.1.2, FL PRO (State of Florida
petroleum range organics), MA VPH (State of Massachusetts volatile petroleum hydrocarbons),
Standard Methods 2504B—total dissolved solids, and Standard Methods 4500-CL F (listed as
residual chlorine but measures total residual oxidants); ; (b) installation of a series of shallow
monitoring wells,placed at the NW,NE, SW, SE corners of the pad. The wells shall be
designed to test the full column of the potable water zone; (c)installation of one deep
groundwater monitoring well on the pad and southwest of the subject well to a depth equal to the
base of the sandstone aquifer(approximately 400'); (d) ground water quality sampling and
analyses of all wells;; (e) sampling and analyses of all monitoring wells on a quarterly basis for
either ten(10) years from the date upon which the Department approves the groundwater
monitoring plan or for five(5) years after plug and abandonment of the Well, which ever
monitoring period shall expire first; (f) an inventory of freshwater supply wells within a quarter
mile of the well bore hole; and (g) a schedule for implementing the Plan.
20. If the Department requests additional information or notifies the Company that
the Plan is inadequate or otherwise unacceptable,the Company shall provide the additional
information or submit a revised Plan within the time frame specified by the Department in the
request or notification. Within 30 days of notification from the Department that the Plan is
acceptable, the Company shall begin implementing the Plan.
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SETTLEMENT OF ALL DISPUTES
21. The terms of this Consent Order,upon execution, shall supersede the
requirements of the Final Order Requiring Operations at Well 20-3H Cease and Desist.
22. This Consent Order is in settlement of all disputes between the Company and the
Department regarding the Permit No. 1349H,20-30H Collier-Hogan Well. The Department and
the Company agree to act in good faith and to cooperate fully with each other in carrying out the
intent of this Consent Order, and all matters related thereto, and for that purpose agree to execute
any additional documents or take such action as may prove reasonably necessary to accomplish
that intent.
CONFIDENTIALITY
23. If any of the information submitted by the Company in response to the
requirements of this Order is considered a trade secret or is otherwise confidential information in
accordance with Chapter 377 or Section 403.111,F.S.,the Company shall request upon submittal
of the information that the Department keep such information confidential. The Department will
thereafter keep such information confidential in accordance with the requirements of Chapter
377 and Section 403.111, F.S.
ORDER ADMINISTRATION
24. The Company acknowledges and waives its right to an administrative hearing
pursuant to Sections 120.569 and 120.57, F.S., on the terms of this Order. The Company
acknowledges its right to appeal the terms of this Order pursuant to Section 120.68,F.S., and
waives that right upon signing this Order.
25. If any event, including administrative or judicial challenges by third parties
unrelated to the Company, occurs which causes delay or the reasonable likelihood of delay, in
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complying with the requirements of this Consent Order, the Company shall have the burden of
proving the delay was or will be caused by circumstances beyond the reasonable control of the
Company and could not have been or cannot be overcome by the Company's due diligence. The
failure of a contractor, subcontractor,materialman or other agent(collectively referred to as
"contractor")to whom responsibility for performance is delegated to meet contractually imposed
deadlines shall not be a cause beyond the control of the Company,unless the cause of the
contractor's late performance was also beyond the contractor's control. Upon occurrence of an
event causing delay,or upon becoming aware of a potential for delay, the Company shall notify
the Department orally within 24 hours or by the next working day and shall, within seven
calendar days of oral notification to the Department, notify the Department in writing of the
anticipated length and cause of the delay,the measures taken or to be taken to prevent or
minimize the delay and the timetable by which the Company intends to implement these
measures. If the parties can agree that the delay or anticipated delay has been or will be caused
by circumstances beyond the reasonable control of the Company, the time for performance
hereunder shall be extended for a period equal to the agreed delay resulting from such
circumstances. Such agreement shall adopt all reasonable measures necessary to avoid or
minimize delay. Failure of the Company to comply with the notice requirements of this
paragraph in a timely manner shall constitute a waiver of the Company's right to request an
extension of time for compliance with the requirements of this Consent Order.
26. Entry of this Consent Order does not relieve the Company of the need to comply
with applicable federal, state or local laws,regulations or ordinances.
27. The terms and conditions set forth in this Consent Order may only be enforced in
a court of competent jurisdiction pursuant to Sections 120.69 and 403.121, F.S. Failure to
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comply with the terms of this Consent Order shall constitute a violation of Section
403.161(1)(b), F.S.
28. All submittals and payments required by this Consent Order to be submitted to the
Department shall be sent to the Program Administrator of the Oil & Gas Program,Division of
Water Resource Management, Florida Department of Environmental Protection, 2600 Blair
Stone Road, MS 3588, Tallahassee, FL 32399.
29. The Department hereby expressly reserves the right to initiate appropriate legal
action to prevent or prohibit any violations of applicable statutes or the rules promulgated there-
under that are not specifically addressed by the terms of this Consent Order.
30. This Consent Order is a settlement of the Department's civil and administrative
authority arising under Florida law to resolve the matters addressed herein. This Order is not a
settlement of any criminal liabilities which may arise under Florida law, nor is it a settlement of
any violation which may be prosecuted criminally or civilly under federal law.
31. Electronic signatures or other versions of the parties' signatures, such as pdf or
facsimile,shall be valid and have the same force and effect as originals. No modifications of the
terms of this Order shall be effective until reduced to writing, executed by both Respondents and
the Department, and filed with the clerk of the Department.
NOTICE OF RIGHTS
32. This Consent Order is a final order of the Department pursuant to Section
120.52(7), F.S., and it is final and effective on the date filed with the Clerk of the Department
unless a Petition for Administrative Hearing is filed in accordance with Chapter 120, F.S. Upon
the timely filing of a petition, this Order will not be effective until further order of the
Department.
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33. Persons who are not parties to this Order,but whose substantial interests are
affected by it,have a right to petition for an administrative hearing under Sections 120.569 and
120.57, F.S. Because the administrative hearing process is designed to formulate final agency
action, the filing of a petition concerning this Order means that the Department's final action
may be different from the position it has taken in the Order.
The petition for administrative hearing must contain all of the following information:
a) The OGC Number assigned to this Order;
b) The name, address, and telephone number of each petitioner; the name, address, and
telephone number of the petitioner's representative, if any, which shall be the
address for service purposes during the course of the proceeding;
c) An explanation of how the petitioner's substantial interests will be affected by the
Order;
d) A statement of when and how the petitioner received notice of the Order,
e) Either a statement of all material facts disputed by the petitioner or a statement that
the petitioner does not dispute any material facts;
f) A statement of the specific facts the petitioner contends warrant reversal or
modification of the Order;
g) A statement of the rules or statutes the petitioner contends require reversal or
modification of the Order; and
h) A statement of the relief sought by the petitioner, stating precisely the action
petitioner wishes the Department to take with respect to the Order.
The petition must be filed(received) at the Department's Office of General Counsel, 3900
Commonwealth Boulevard, MS 35, Tallahassee, Florida 32399-3000 within 21 days of receipt of
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this notice. Failure to file a petition within the 21-day period constitutes a person's waiver oldie
right to request an administrative hearing and to participate as a patty to this proceeding under
Sections 120.569 and 120.57, F. S. Before the deadline for Tiling a petition, a person whose
substantial interests are affected by this Order may choose to pursue mediation as an alternative
remedy under Section 120.573, F.S. Choosing mediation will not adversely affect such person's
right to request an administrative hearing if mediation does not result in a settlement. Additional
information about mediation is provided in Section 120.573, Florida Statutes and Rule 62-
1 10.1.06(12), F.A.C.
FOR THE COMPANY:
DAN A. HUGHES COMPANY, L.P.
By: Dan A. Hughes Management, L.L.C.
Its general partner
0411¢
DATE rry remers,
• f■O/Vice President of l.and
PLO.Drawer 669,Beeville,Texas 78104
ADDRESS
DONE AND ORDERED this 8th day of April , 2014, in Tallahassee
Florida.
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
th
Mark Thomasson P. E.
Director, Division of Water Resource Management
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Filed, on this date, pursuant to Section 120.52,Fla. Stat.,with the designated Department Clerk,
receipt of which is hereby acknowledged.
()Za/,(7,64-1(
Clerk Date
Copies furnished to:
Lea Crandall, Agency Clerk
Mail Station 35
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EXHIBIT l
This exhibit is protected as a confidential trade secret under section 815.045, Florida Statutes,
and has been submitted separately.
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EXHIBIT 2
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STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
In re:
Dan A. Hughes Company LP
Permit No: 134911
Well: 20-3H Collier-Hogan
FINAL ORDER REQUIRING OPERATIQJVS AT WELL 20-3H COLLIER-HOGAN
CEASE AND DESIST
Pursuant to Section 403.061(8), Florida Statutes, the Department of
Environmental Protection ("Department") is entering this Final Order requiring the Dan
A. Hughes Company LP immediately cease and desist from any further operations at
the 20-3H Collier-Hogan well as proposed in its Well Proposal, Proposal No:
1001164796, dated December 23, 2013. The Department enters this Final Order in
exercise of its power and duty to issue orders that are necessary to protect the State's
waters from water pollution and states as follows:
1. On December 23, 2013, Dan A. Hughes Company LP, through counsel,
emailed the Department a workover notification concerning its operation permit for the
20-3H Collier-Hogan well indicating that it intended to conduct a workover operation.
The notification provided seven pages of information on the workover proposal.
2. The December 23, 2013, email indicated that the proposed workover
operation would commence on December 29, 2013. The proposed workover operation
was initiated on December 30, 2013, and is continuing to date despite oral notification
by the Department that the proposed workover operation was not approved.
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3. After reviewing the documents attached to the December 23, 2013 email,
the Department is not satisfied that it has sufficient information that the proposed
workover would be protective of the State's groundwater resources, and it is therefore
ORDERED that Dan A. Hughes Company, LP CEASE AND DESIST all operations
proposed in the December 23, 2013, workover notification concerning the 20-3H Collier-
Hogan well.
Any party to this Final Order has the right to seek Judicial review of the Final
Order under Section 120.68, Florida Statutes, by filing a Notice of Appeal under Rules
9.110 and 9.190, Florida Rules of Appellate Procedure, with the Clerk of the
Department of Environmental Protection, Office of the General Counsel, Mail Station 35,
3900 Commonwealth Boulevard, Tallahassee, Florida 32399-3000, and by filing a copy
of the`Notice of Appeal accompanied by the applicable filing fees with the appropriate
district court of appeal. The Notice of Appeal must be filed within 30 days after this
notice is filed with the clerk of the Department.
Executed in Leon County, Florida on December 31, 2013.
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
• iffigrAtk
e 'chel Vinyard /
Secretary
2
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CERTIFICATE OF SERVICE
I CERTIFY that a true copy of the foregoing was sent electronic mail only to
Richard S. Brightman and Timothy M Riley, Hopping Green &Sam PA, P.O. Box 6526,
Tallahassee, Florida 32314-6526, Attorneys for Dan A. Hughes Company, L.P. at
richardbCc hgslaw.com;limothyr@hoslaw.com, on this 31st day of December, 2013.7 M° nean
Depu ral C nsel
FILED ON THIS DATE PURSUANT TO§120.52,
FLORIDA STATUTES,WITH THE DESIGNATED
DEPARTMENT CLERK,RECEIPT OF WHICH IS
HEREBY ACKNOWLEDGED.
, _�a,n� 1 /3I�/3
CLERK DATE
3
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EXHIBIT 3
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April 26,201 1
FE+S(�VV o FESCO,Ltd.
1100 FESCO Ave.-Alice,TX 78332
For: Any Company Field: N/A
Anywhere,USA County: N/A
Sample: XYZ Well Date: 11/8/2011
Type: Well Water Time: 08:00
Formation: N/A
Depth(FI): N/A
REPORT OF WATER ANALYSIS
**************** Dissolved Solids*************** ***************Other Properties***************
mg/L meq/L
Sodium(Na) 11563.70 502.99 pH 6.90
Calcium(Ca) 279.69 13.96 Specific Gravity @ 60/60°F ------ 1.020
Magnesium(Mg) 44.08 3.62 Resistivity(Ohm-meters @ 77.0°F) ----- 0.227
Barium(Eta) 1.96 0.03
Potassium(K) 73.22 1.87
Iron(Fe) 0.13 —
Chloride(Cl) 17640.00 497.60 ( StiltDavis CaCO3 Stability Index
Sulfate(SO4) 95.00 1.98 40-
Carbonate(CO3) 0.00 0.00 v so
so
Bicarbonate(HCO3) 407.00 6.6.7 g 100
Hydroxide(OH) 0.00 0.00 120-
8 140
Sulfide(l-12S) 0.00 I 1 B0
Total Solids 30105 200 . . . . -
Total Alkalinity(CaCO3) 333 -2 -1 0 1 2
Total Hardness(CaCO3) 880 -Corrosive : Scaling->
Standard.meq Per Liter
NB(N CL/20
t 1
Ca/1 HCO3f1
Mgn - . . __. - -; SO4tl
100 80 60 40 20 0 20 40 60 80 100 120
Log-rneq Per Liter
i::. -• 1 t F • I 1 I • • . l t • 1 . j . . j . f
5 4 3 2 1 0 1 2 3 4 5 6
Exponent
Certified: FESCO,Ltd. - Alice,Texas
•4‘ :--bet.e*A-.4..Lr
T
David Dannhaus 361-661-7015
Job Number: 99999 . 9999
STATEMENT FROM I)EP REGARDING CONSENT ORDER WITH TI-IE DAN A. I-I... Page 1 of 2
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STATEMENT FROM 1E1' REGARDING CONSENT ORDER
WITH THE DAN A. HUGHES COMPANY, L1'.
Florida Department of Environmental Protection sent this bulletin at 04/18/2014 03:57 PM EDT
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CONTACT: DEP Press Office, 850.245.2112, DEPNews @dep.state.fl.us
FOR IMMEDIATE RELEASE: Apr. 18, 2014
STATEMENT FROM DEP REGARDING CONSENT
ORDER WITH THE DAN A. HUGHES COMPANY, L.P.
the Dan A.
TALLAHASSEE—The Florida Department of Hughes Environmental Company,PL.roP.tection for unauth(DEP)orized finalized
a Consent Order last week with
activities at the Collier— Hogan well south of Lake Trafford in Collier County.
"The department caught the Dan. A. Hughes Company conducting unauthorized
activities and immediately took action to assess the maximum civil penalties. In
addition, the department is requiring Dan A. Hughes to hire an independent expert,
approved by the department, to conduct ongoing groundwater monitoring of the area to
ensure no damage to the environment or risk to the public occurred because of their
unauthorized actions. The results of the monitoring will be reviewed by DEP experts."
Background:
http://content.govdelivery.com/accounts/FLDEP/bulletins/b l 683b 4/22/2014
STATEMENT FROM DEP REGARDING CONSENT ORDER WITH THE DAN A. I I... Page 2 o[.2
1 0 C
The department closely regulates oil and gas exploration and extraction to protect
public safety and our environment. Every activity is thoroughly reviewed to address
waste fluid disposal, well integrity, groundwater protection and spill prevention.
On Dec. 23, 2013, the Florida Department of Environmental Protection received a well
completion procedure notice, also known as a workover notice, from the Dan A.
Hughes Company, L.P. This request was for work to be conducted for well permit
number 1349H, the Collier— Hogan well located south of Lake Trafford in Collier
County. The drilling permit for this well was issued on Dec. 18, 2012, and the operating
permit for the well was issued on Aug. 9, 2013.
The department had concerns about the workover notice, which proposed an
enhanced extraction procedure that had not previously been used in Florida. The
company proposed to inject a dissolving solution at sufficient pressure to achieve some
openings in the oil bearing rock formation that would be propped open with sand in
pursuit of enhancing oil production. The department requested Dan A. Hughes
Company, L.P. not move forward with the workover procedure until additional review
could be performed.
However, on Dec. 31, 2013, the department became aware the workover procedure
had commenced, without approval. Because of the actions of Dan A. Hughes
Company, the department was not afforded the opportunity to complete its review of
the proposed procedure before operations began. As a result, a Cease and Desist
Order was issued and the department immediately pursued formal enforcement.
About the Florida Department of Environmental Protection
The Florida Department of Environmental Protection is the state's principal environmental agency, created to
protect, conserve and manage Florida's environment and natural resources.The Department enforces
federal and state environmental laws, protects Florida's air and water quality, cleans up pollution, regulates
solid waste management, promotes pollution prevention and acquires environmentally-sensitive lands for
preservation.The agency also maintains a statewide system of parks, trails and aquatic preserves.To view
the Department's website log on to www.dep.state.fl.us.
http://content.govdelivery.com/accounts/FLDEP/bulletins/b1683b
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http://content.govdclivery.com/accounts/FLDEP/bulletins/b1683b 4/22/2014
Company fined for technique consistent with 'fracking' in Collier 1 0 C Page 1 of 3
Company fined for technique consistent with 'fracking' in
Collier
Steve Deane,sdoane @news-press.corn 7'1')p.ju.ED'f 1pidl 1,5, 2011
(Photo Andrew West/News-Press)
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287 TIM
CONNf_GY (https://twitter.com/intent/tweet?url=http://newspr.es/lifEGOL)&text=ConumnO%20fincdr7 21)for'7r.2,01r,c
The Florida Department of Environmental Protection has fined a Texas oil company for performing a drilling technique consistent with tracking in central
Collier County.
The company was fined$25,000 for its actions arid is barred from using the technique further until it completes a groundwater study, according to DEP
Spokeswoman Dee Ann Miller.
According to a consent order filed by the DEP,the Dan A.Hughes Co.performed the unpermitted technique for two days in December and January arid
defied a cease-and-desist order from DEP for one day.The well in question is located at Hogan Island,which is located south of Lake Trafford, near the
Corkscrew Swamp Sanctuary and Corkscrew Regional Ecosystem Watershed lands.
Dan A.Hughes Co.,"proposed an enhanced extraction procedure that had not previously been used in Florida.The company proposed to inject a
dissolving solution at sufficient pressure to achieve some openings in the oil bearing rock formation that would be propped open with sand in pursuit of
enhancing oil production."according to the DEP statement released late Friday.
The description given by the DEP is consistent with hydraulic fracturing or"fracking,"which has been used extensively in part of Pennsylvania, North
Dakota and Texas but has stirred the ire of environmentalists due to the potential for pollution and other problems,including earthquakes.
According the Environmental Protection Agency fracking is performed by injecting a combination of water and chemicals into a geological formation at
high pressure to fracture the rock.Once the rock is broken,the fluids expand the fracture and a propping agent is pumped in to keep them open and
allow drillers to extract the resource.
"That's pretty heavy.That's pretty serious,to introduce fracking to Southwest Florida without DEP approval,"said Matthew Schwartz,executive director of
the Fort Lauderdale-based South Florida Wildlands Association,which is a plaintiff in a permit challenge to another proposed Dan A.Hughes well.
DEP did not release more information about what Dan A.Hughes did.The technique qualifies as a"confidential trade secret"and is shielded from public
disclosure under Florida law,according to the DEP order.
Under Florida law,a company does not need a separate permit to perform hydraulic fracturing,but it must notify DEP arid obtain permission.
—Connect with this reporter on Twitter:( Steve Doane (https://twitter.com/OSteve Doane )and facebook.com/SteveDoaneJournalist
(http://facebook.com/SteveDoaneJournalist)
FL DEP consent order(httpJ/www.scribd.com/doc/219066490/FL-DEP-consent-order)by
jmwinchester7(http://www.scribd.com/jmwinchester7)
http://www.news-press.com/story/life/outdoors/2014/04/18/dep-tines-oil-company-for-unauthorized-dril... 4/21/2014
DEP fines oil company for unauthorized work on Collier oil well : Naples Daily News Page 1 of 3
1OC
naplesnevvs.com Read more at nap.vsricvrs cony
DEP fines oil company for unauthorized work
on Collier oil well
By JUNE FLETCHER
Originally published 06:06 p.m.,April 18,2014
Updated 07:22 p.m.,April 18,2014
NAPLES—The Florida Department of Environmental Protection has finalized a
consent agreement with the Dan A. Hughes Co.,fining the oil company for
unauthorized activities at a well south of Lake Trafford in Collier County.
On Friday, DEP said the Beeville,Texas-based company had commenced work at the
Collier–Hogan well without DEP's permission on an enhanced extraction procedure
that hadn't previously been used in Florida.The work continued from Dec. 30, 2013,
until Jan. 1, 2014.
In its settlement with the company, the DEP is assessing the maximum civil penalties
of$25,000. It also is requiring the company to hire an independent expert to monitor
the area to ensure no damage to the environment or public has occurred because of its
actions.
Specifically, it wants the expert to assess the likelihood that the operation "will cause or
contribute to a violation of any applicable groundwater standards."
Hughes also must submit an interim spill prevention and cleanup plan.
In a news release that included a copy of its consent order, DEP said the drilling permit
for the well on Hogan Island Farm was issued Dec. 18, 2012, and the operating permit
for the well was issued Aug. 9, 2013.
On Dec, 23, 2013,the DEP received a well completion notice, also known as a
workover notice, from the Hughes Co. The company proposed injecting the well with a
dissolving solution at sufficient pressure to create openings in the oil-bearing rock
formation that would be propped open with sand.
DEP asked Hughes not to move forward until it could review the process. But on Dec.
31, DEP learned that the work already had begun, and issued a cease-and-desist
order.
Cape Coral attorney Ralf Brookes, attorney for residents opposing another oil well the
httn://www.nanlesnews.com/news/2014/aor/18/den-fines-oil-comnanv-unauthnri7.ed-work- 4/19/9014
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DEP fines oil company for unauthorized work on Collier oil well : Naples Daily News Page 2 of 3
Hughes company wants to drill in the Golden Gate Estates area, criticized the DEP's
actions Friday and called the fine a slap on the wrist.
He said the information should have been disclosed during the many hearings on the
Golden Gate Estates well, including hearings in late February before an administrative
judge and in March before the Environmental Protection Agency and the Big Cypress
Swamp Advisory Committee.
"It shocks the conscience," he said, adding that it shows DEP has been acting in bad
faith in its dealings with the public.
Brookes said the procedure sounds like fracking, which he contends shouldn't be done
in Southwest Florida because of its fragile limestone topography. The procedure poses
a threat to the aquifers that supply the area's drinking water. Once they are polluted,
they stay polluted, he said.
"Florida is behind other states in adopting fracking prohibitions," he said.
Dan A. Hughes Co. officials couldn't be reached for comment Friday night after the
DEP released the information at 5 p.m. The dates by the signatures on the consent
order are April 7 and 8.
Posted earlier
The Florida Department of Environmental Protection has finalized an agreement with
the Dan A. Hughes Co. for fines for unauthorized activities at the Collier—Hogan well
south of Lake Trafford in Collier County.
On Friday, DEP said the Beeville, Texas-based company had commenced work
without DEP's permission on an enhanced extraction procedure that had not previously
been used in Florida. The work continued from Dec. 30, 2013, until Jan. 1, 2014.
The procedure involves dissolving solution at sufficient pressure to achieve some
openings in the oil-bearing rock formation that would be propped open with sand, to
enhance oil production.
In its settlement with the company, the DEP said it is assessing the maximum civil
penalties of$25,000. It also is requiring the company to hire an independent expert to
conduct groundwater monitoring of the area to ensure no damage to the environment
or public has occurred because of its actions.
But Cape Coral attorney Ralf Brookes, attorney for residents opposing another oil well
the Hughes company wants to drill near Golden Gate Estates, criticized the DEP's
actions.
httn.//www nanlecnew.c e.nm/news/7.014/anr/1 Minn-fines-nil-cmmnanv-nnmithnri7erl-work- 4/19/7014
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DEP fines oil company for unauthorized work on Collier oil well : Naples Daily News Page 3 of 3
He said the information should have been disclosed during the controversial hearings
on the Golden Gate well, and said it showed the agency has been acting in bad faith in
its dealings with the public.
"It shocks the conscience," he said.
Return to naplesnews.com later today for more on this developing story
Related stories:
• DEP sticks to decision to grant permit for Estates area oil well
• Oil company's plan for explosions in prime panther habitat draws protest
• Big Cypress Swamp panel recommends denial of Estates oil well permit
• Angry crowd urges EPA to reject permit related to Estates oil well project
•
,l
CO 2014 Scripps Newspaper Group—Online
http://www.naplesnews.com/news/2014/apr/18/dep-fines-oil-company-unauthorized-work-... 4/19/2014
Agenda Item No. Agenda Item Topic 10c- 1 0
(For Public Comment,list topic)
Meeting Date: ,,ort-)ti /
A
Name:7/9/2 ///:a /--)62716 12 Address:
ti(C
Representing/Petitioner: (:) Other:
COLLIER COUNTY ORDINANCE NO 2003-53,AS AMENDED BY ORDINANCE 200405 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE UMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
\ --
Agenda Item No. Agenda Item Topic I OC-
(For Public Comment,list topic)
Meeting Date: piLl (4
Li 3c.) 2ci 4
Name: I cl E Address: S6
Representing/Petitioner: C,;.CL F Other:
COLLIER COUNTY ORDINANCE NO 2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
Agenda Item No. c, Agenda Item Topic k,C GA".5.8-C:)etA05-
L)N..
(For P bilo Comment,list topic)
Meeting Date: ZZ -St"" 20 1,
NaMe7DC'. 14.:CV\ k \-)31e,% Address: 1,-)c-1,72) ? 0-1-0( 1,011t, iN)0,c4CA. /3O
RepresentinglPetitioner: Other:
COLLIER COUNTY ORDINANCE NO 2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
Cy,4u..04t.. -lb
Agenda Item No. fb C Agenda Item Topic bER coc OCt--0E1N,
(For Public Comment,list topic)
<44•
Meeting Date: AW-1
Name: Di- r.) L4N‘rotk )
, Address:
Representing/Petitioner: Other:
COLLIER COUNTY ORDINANCE NO 2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
Agenda Item No. / -Coq 9 enda Item Topic •11
(For Public Comment,list topic)
Meeting Date: / .Z/ i e-j
--2
Name: L, 1.-, �e.� Address: /S /'` 7 ;6Q Ic< sv ) L.. _ h s
Representing/Petitioner: se. f Other:
COLLIER COUNTY ORDINANCE NO.2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
Agenda Item No. / C--Agenda Item Topic -r: i�%� '_
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(For Public Comment,list topic)
Meeting Date: 6 • 2 .I / `( _
�J,
(7 r7 ,c /��s�
Name: fG' ' A C i- Address:
Representing/Petitioner: -+?}." 1 - Other:
9 COLLIER COUNTY ORDINANCE NO.2003 53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
, ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
3
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
Agenda item No. 0 /S-G Agenda Item Topic .G se.-4--..--c-=--?)„
(For Public Comment,list topic)
Meeting Date: — Ili Name: PA-01 C14 a..t.-A7 a,'e".' Address: (0 to 3 /0 G r'--2 I 0
Representing/Petitioner: Other:
1 COLLIER COUNTY ORDINANCE NO 2003-53,AS AMENDED BY ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING IN
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARE TO ADDRESS ONLY THE CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT SPEAKERS WHO ENGAGE IN ADVERTISING
THEIR BUSINESS,PERSONAL POLITICKING OR OTHER FORMS OF SELF-PROMOTION WILL BE ASKED TO LEAVE THE PODIUM.
PLACE COMPLETED FORM ON THE TABLE TO THE LEFT OF THE DAIS-PLEASE PRINT CLEARLY
Agenda Item No. "'"-' enda Item Topic
(For Public Comment,list topic) a
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Meeting Date:
Name: _I i
tot,' 46.— - Address:
pi- Slit Other:
Representing/Petitioner: ) .
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LIMITED TO,ADDRESSING THE BOARD OF COUNTY COMMISSIONERS),REGISTER WITH THE CLERK TO THE
COLLIER COUNTY ORDINANCE NO 2003-53,AS AMENDED: ORDINANCE 2004-05 AND 2007-24,REQUIRES THAT ALL LOBBYIST SHALL,BEFORE ENGAGING
ANY LOBBYING ACTIVITIES(INCLUDING,BUT NOT BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT
YOU ARE LIMITED TO THREE(3)MINUTES FOR YOUR COMMENTS AND ARETTOEADD WHO ENGAGE ONLY ADVERTISING CHAIR
PUBLIC COMMENT IS NOT INTENDED TO BE A FORUM FOR SELF-PROMOTION. PUBLIC COMMENT
THEIR BUSINESS,PERSONAL POLITICKING OR TpBt.E TO THE LEFT OF THE DAISBEPLEASE PRINT CLEARLY F-PROMOTION WILL
PLACE COMPLETED FORM ON THE
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STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
PERMITTEE: PERMIT No: 1349H I PA No: 315034-001 -
Dan A.Hughes Company,L.P. WELL: 20-3H Collier Hogan
208 E.Houston SECURITY: Single Bond No.RLB0014778
Beeville,TX 78102 _ PROJECT:Collier County Wildcat Well
FINAL ORDER
OIL&GAS WELL DRILLING PERMIT
FINDINGS OF FACT: Dan A. Hughes Company, LP., filed a complete application on
November 8, 2012, with the Florida Department of Environmental Protection (the
Department) to drill the 20-3H Collier-Hogan well in Collier County, Florida. The
proposed exploratory well will be drilled within a non-routine drilling unit in accordance
with Rule 62C-26.004(6) Florida Administrative Code (F.A.C.). All of the mineral
ownership of the 428-acre drilling unit has been leased by the applicant. The permittee
has provided all documentation required under Chapters 62C-25 through 62C-30, F.A.C.
The application was reviewed and deemed consistent with requirements of Sections
377.241, 377.242, and 377.243, Florida Statutes (RS.), and implementing Chapters 62C-25
through 62C-30,F.A.C.
This permit authorizes the Dan A.Hughes Company,LP.,to drill a horizontal completion
targeting the Lower Sunniland Formation. The surface hole location (SHL) is 2,116 feet
from the south line and 3,315 feet from the east line of Section 20, Township 47 South,
Range 28 East in Collier County.The proposed bottom hole location(PBHL)will be 1,342
feet from the south line and 2,003 feet from the west line of Section 21,Township 47 South,
Range 28 Fast A new drilling pad will be constructed in a tomato field at the Hogan
Island Farm that is owned by the Barron Collier Company. The well site will be located
within the Big Cypress Swamp watershed,but there will be no wetlands impacts.
The procedure calls for the operator to drill a pilot hole to a total vertical depth (TVD) of
13,500 feet [13,500 feet measured depth (MD)], to evaluate the geology. If the permittee
chooses to continue drilling operations, the bottom of the pilot hole will be plugged back
with cement and then kicked off at 11,187 feet TVD(11,187 feet MD)to directional drill a 8
1/z inch hole with a steerable assembly while building angle. After reaching 11,836 feet
TVD (12,000 ft MD) 7 5/8 inch casing will be set in the hole and cemented it in place.
After setting casing the procedure calls for drilling a 61/z inch open hole until obtaining an
inclination angle of 90 degrees at the landing point at a depth of 11,903 TVD (12,312 feet
MD). At this depth the well will be completed drilling horizontally 4,588 feet to the
proposed bottom hole location at 11,903 TVD (16,900 MD) in the targeted pay zone of the
Lower Sunniland Formation.
bc
Dan A.Hughes Company,L.P.
FDEP Drilling Permit No.1349H
Page 2 of 7
Access to the proposed drilling site will utilize existing private farm roads whose only
improvements will consist of surface hardening to accommodate vehide traffic. No new
utilities will be brought into the site.
The site plan includes a two foot earthen berm constructed around the perimeter of a
newly built drilling pad. A secondary containment area within the perimeter of the site
will be covered by high-density polyethylene to contain and collect any minor accidental
spills from drilling operations and to prevent storm water runoff from leaving the site.
There will be no earthen mud pits. Drilling mud and well fluids will circulate through a
closed system of portable steel tanks and plumbing lines. The operator has applied for a
water use permit from the South Florida Water Management District. The permit will
allow Hughes to withdraw fresh water from onsite wells for milling, drilling, and
cementing operations.
The application includes an H2S contingency plan,with predefined responses in the event
of an accidental gas release. The plan calls for coordination with other governmental
agencies in the unlikely event of an emergency. Safety equipment induding blowout
preventers will be installed and routinely tested during drilling operations. The wellhead
and flow lines are required to be maintained, monitored, and tested by the operator's
personneL Best industry practices will be incorporated into the operator's daily work
routine with compliance monitored by inspectors from the Department's Ft. Myers Oil
and Gas Office.
CONCLUSION OF LAW: This application as approved complies with the standards and
criteria of Chapter 377,Part I,F.S.,and Chapters 62C-25 through 62C-30,F.A.C.
GENERAL PERMIT CONDITIONS
1. This drilling permit expires one year from the issuance date. If drilling has not begun
within that time then, upon written request by the permittee, the Department shall
extend the permit for an additional year. In accordance with Rule 62C-26.003(2),
F.A.C.,subsequent requests for extensions shall be treated as new applications.
2. This permit authorizes drilling within the state of Florida as designated on the attached
location plat prepared by Pickett&Associates,Inc.,dated November 21,2012.
3. Issuance of this permit does not relieve the permittee of the responsibility to comply
with all applicable federal, state, county, municipal, and special district laws,
ordinances and rules,nor is the permittee relieved of the responsibility to obtain any
licenses or permits which may be required by federal, state, county, municipal, or
special district laws.
10C
Dan A.Hughes Company,L.P.
FDEP Drilling Permit No. 1349H
Page 3 of 7
4. By accepting this permit, the permittee agrees to conduct all operations in accordance
with this permit and the application upon which it is based, Chapter 377, F.S., and
Chapters 62C-25 through 62C-30,F.A.C.
5. The permittee shall notify the Ft Myers Oil and Gas Field Office at(239)344-5721 not
less than twenty-four hours prior to starting work and thereafter as directed.
6. The permittee shall file Form 8(Well Record)within 30 days after reaching total depth,
Form 9 (Well Completion Report) within 30 days after testing the well, a directional
survey within 30 days after logging the well,and Form 16 (Plugging Report)within 30
days after plugging the well. Geophysical well logs, mud logs, samples, core chips,
laboratory core analysis reports, etc., must be submitted to the Oil and Gas Section
within 30 days after reaching total depth.
7. Any violation of these permit conditions may result in the suspension or revocation of
this permit pursuant to Section 120.60, F.S., or may result in penalties, pursuant to
Sections 379.407,377.37,and 403.121,F.S.
8. The additional data derived from this well shall be used to refine existing prospect
interpretations and shall provide the basis for determining whether additional field
wells,special field rules,or field unitization will be necessary.
9. If additional wells are necessary before adopting special field rules or unitizing the
field, commercial production from this well may be governed by allowables to be
set by the Department or the distributable royalty interest shall be escrowed until
such rules are adopted or unitization proceedings, as outlined in Section 377.28(4),
F.S.,are completed.
10. If unitization is required pursuant to Section 377.28, F.S., to prevent waste and
protect the coequal and correlative rights of all potentially impacted parties, the
operator shall begin unitization proceedings within 60 days after testing is
completed, in which case commercial production may be restricted or distributable
interests escrowed until a unitization package is approved by the Department This
drilling unit shall be included within the field limits. Any additional areas
subsequently included within the field shall be defined on the basis of not less than
quarter-quarter-quarter sections (square blocks of approximately 10 acres) and shall
include all blocks below which the oil pool is projected.
11.During the period between well testing and adoption of special field rules or field
unitization in accordance with Section 377.28, F.S., the operator shall be allowed to
produce the well but shall escrow all undistributed mineral interests' funds for the
loG
As stated on the GENERAL PERMIT CONDITIONS number Three. The County has the right to
place ordinances that the oil and gas industry must follow.
3. Issuance of this permit does not relieve the permittee of the responsibility to comply
with all applicable federal, state, county, municipal, and special district laws,
ordinances and rules, nor is the permittee relieved of the responsibility to obtain any
licenses or permits which may be required by federal, state, county, municipal, or
special district laws.
We asked you to implement ordinances to protect the residents of this county, Both Collier
Companies and the Dan A. Hughes Company were on record that they would not(rack. We
asked that an ordinance be passed to make sure this would not happen. Now the people of
Golden Gate Estates are wondering, what is in our water.An independent company must test
the groundwater. This happened Jan. 1st„ and the FDEP released the statement April 18th. We
will never know what chemicals they used and exposed the residents to because Dan A Hughes
has confidentiality.
What do we have?
Worry....trying to get the FDEP, EPA and the Commissioners to ensure a safe environment for
all.
Look at the big picture and the future .
`,4"77/1 / /
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BCC meeting April 21, 2014 1 0 C
Commissioners, for the record my name is Jaime Duran-Pinzon and live at 4880 24th Ave SE,
Naples, FL 34117.
As you are probably aware, the Dan A Hughes Co. was fined and agreed to sign a consent
order with the FDEP for violating the terms of the permit on the Oil Well Collier Hogan 20-3H.
This company, together with the Collier Companies that own the mineral rights, have shown a
complete disregard for the laws of the State and the County and in my opinion cannot be trusted
to operate in good faith.
For the past year we have addressed this Board as well as the FDEP, The EPA, and others to
be ignored and labeled as hysterical as well as threatened, intimidated and bullied by the
Colliers.
Our faith in the willingness of our government officials to provide a safe and clean environment
has been severely eroded, what will you do now to begin restoring that faith?
For the record I would like to take this opportunity to officially propose that the name of Collier
County be changed. It is time to stop honoring the name of the family the pillaged the old
growth Cypress and is now squeezing the land, for the last drop of oil, before paving over it.
Thank you for listening.
Jaime Duran-Pinzon
-� JCL Afki I az,°/11
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Resolution to Ban Hydraulic and Acid Fracturing in Collier County
WHEREAS, hydraulic and acid fracturing (fracking and acidizing) involves the use of
chemicals and hazardous materials during construction, drilling, hydraulic fracturing, gas
production and delivery, well maintenance, and workover operations; and
WHEREAS, hydraulic fracturing of underground geologic formations is often
accomplished by injecting a complex mix of fluids and chemicals, including large
volumes of water, on average 4.5 million gallons per well, under very high pressure to
create fractures in gas bearing geologic formations; and the water used is contaminated
forever; and
WHEREAS, many of the chemical constituents injected during hydraulic fracturing have
documented adverse health effects and/or adverse environmental impacts, for example,
60% of those chemicals can harm the brain and nervous system, 30% are suspected
carcinogens, and 30% are developmental toxicants; and
WHEREAS, there have been more than a 1,000 documented cases of water
contamination near fracking sites; some people who live near these sites can now light
their drinking water on fire; and
WHEREAS, wastewater from fracking can contain radioactive elements and has been
discharged into rivers that supply drinking water for millions, according to the New York
Times; and
WHEREAS, use of these hydraulic fracturing mixes exposed adjacent land and surface
waters to the risk of contamination through open pit storage, truck transport on roadways,
and activities during well development; and
WHEREAS, the pollution of water caused by fracking threatens the long term economic
well being of communities, as businesses and consumers depend on clean drinking water;
and
WHEREAS, in 2005, as part of the federal Energy Policy Act and over objections of
health care, scientific, environmental, and conservation communities, regulation of
hydraulic fracturing fluids under the Safe Drinking Water Act by the Environmental
Protection Agency was exempted,thereby allowing oil and gas companies to use these
substances without federal oversight or standards; and
WHEREAS fracking enjoys exemptions from nearly all major federal environmental
statutes, not only the Safe Drinking Water Act, but also the Clean Water Act, Clean Air
Act, the Resource and Conservation and Recovery Act, the National Environmental
Policy Act, the Comprehensive Environmental Response, Compensation and Liability
Act, the Emergency Planning and Community Right-to-Know Act to name only a few;
and
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WHEREAS, the oil and gas industry is not required by federal law to publicly disclose
chemical formulas of hydraulic fracturing fluids so that this information is publicly
unavailable for health and safety purposes; and
WHEREAS, Former President George W. Bush's EPA point person on water now admits
fracking should never have been exempted from regulation; and
WHEREAS, the Fracturing Responsibility and Awareness of Chemicals Act("FRAC
Act"), which is currently pending in Congress, would repeal the fracking exemption to
the Safe Drinking Water Act and require disclosure of chemicals used in fracking; and
WHEREAS, the Bringing Reductions to Energy's Airborne Toxic Health Effects Act
("BREATHE Act"), which is currently pending in Congress would repeal the exception
to the Clean Air Act for aggregation of emissions from oil and gas development sources;
WHEREAS, the wise stewardship of our natural resources involves protection of Collier
County water supplies and water resources for generations to come; and
WHEREAS, protection of Collier County water supplies and resources is better
accomplished by prevention of contamination and environmental degradation, rather than
attempting to cleaning up contamination and restoring degraded environments after the
fact;
NOW, THEREFORE, BE IT RESOLVED,that on the day of 2014, Collier
County supports a statewide and national ban on hydraulic and acid fracturing; and
BE IT FURTHER RESOLVED, that Collier County supports,the FRAC Act and
BREATHE Act;
AND BE IT FURTHER RESOLVED that Collier County will send a letter to our state
and federal legislators calling for a ban on fracking and for them to co-sponsor the FRAC
Act, H.R. 1084/ S. 587, and BREATHE Act, H.R. 1204,
NOW, THEREFORE, BE IT ORDAINED, that hydraulic and acid fracturing is
prohibited within Collier County.
PASSED, APPROVED, AND EFFECTIVE on this day of , 2014.
ATTEST:
4 '
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SHUTDOWN DAN A. HUGHES, Karen Dwyer, Ph.D., April 22, 2014
The breaking news about Dan A. Hughes illegally fracking the Collier - Hogan
well next to the Corkscrew Swamp Sanctuary cannot be ignored.
We now have documented evidence of the company's criminal wrongdoing.
They will do whatever it takes to extract oil—even break the law and
recklessly endanger our water, land, and air. They're goal is not to make
extraction SAFE, but to make it as inexpensive, expeditious, and profitable as
possible—even if it means using extreme extraction, in direct violation of
orders from the state.
To say we are outraged is an understatement. We find it almost beyond belief
that a Texas oil company can disregard rules and laws and engage in illegal and
untested extreme extraction in our vital watershed, either hoping they won't
get caught, on the one hand, or willing to pay the nominal fee, on the other
hand. This latest travesty, is exactly why it is so important to stop this new
type of Everglades dirty drilling in our watershed so near homes and city
water supplies. No amount of regulation can make it safe because the DEP
lacks the regulatory power to compel compliance—they're understaffed and.
overworked and crippled by legislation written by and for the oil industry. The
fines are so nominal industry is willing to break the law and add the fines.into
the total cost of drilling.
We urge the Commissioners to join us and 1) call on the DEP to permanently
shutdown Dan. A. Hughes for violating regulatory orders and recklessly
endangering our water supplies and wetlands. 2) Call on Governor Scott to
shut down all oil drilling operations, permitted and pending, by the Dan A.
Hughes Company. 3) Call on the EPA to deny the pending injection well permit
since Dan A. Hughes cannot be trusted to implement "industry best
practices"—as the company's criminal wrongdoing proves. 4) Call on Collier
Resources to distance themselves from Dan A. Hughes and their criminal
•
misconduct by breaking the land leases and stepping back from drilling. And .`'
finally we urge the Commissioners to move forward with a ban on all extreme
extraction in Collier County. Now is the time.
So
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EXECUTIVE SUMMARY Add-On Agenda Item - BCC 4-22-14
Recommendation to direct the Collier County Attorney, supported by staff, to file a
challenge to Consent Order(OGC File No. 14-0012) entered into on April 8,2014 between
the State of Florida Department of Environmental Protection (FDEP) and the Dan A.
Hughes Company,L.P. regarding oil and gas well operations at the Collier-Hogan 20-3H
Well (Permit No. 1349H).
Challenge to request the Consent Order be modified to require additional
provisions for oversight, safeguards, and monitoring to protect the environment and insure
the health, safety, and welfare of the citizens of Collier County.
Challenge to further request a protocol be established from FDEP that improves
communication and coordination between the agencies regulating the Oil and Gas Program
and Collier County local government, and that copies be provided to Collier County of all
application packages for future oil and gas exploration, production wells, and class II
injection wells, as well as all permit related correspondence, additional submittals, meeting
minutes, and agency action.
Additional change(s) to the Consent Order as deemed appropriate by the Board.
OBJECTIVE: For the BCC to provide direction to staff in response to newly available
information and documents, and reported developments regarding oil and gas operations in
Collier County, including the utilization of unpermitted practices new to SW Florida and
violation(s) of FDEP regulations.
CONSIDERATIONS: News articles were published on Friday, April 18th after 5:00pm, and
supporting documents released, regarding FDEP action against Dan A Hughes Company, L.P.
related to oil well operations at the Collier-Hogan 20-3H Well (FDEP permit 1349H) located
north and west of the intersection of Everglades Blvd and Immokalee Road.
A Cease-and-Desist Order was issued by FDEP to Dan A Hughes Company, L.P.,
requiring the cessation of all operations on December 31, 2013. The Cease and Desist Order was
followed by a Consent Order dated 04-08-14. Copies of both documents are attached.
There has been substantial concern expressed by citizens of Collier County and
beyond regarding oil and gas extraction proposals and operations in eastern Collier County and
the greater Big Cypress and Everglades area. Initially, concerns were expressed by residents of
Golden Gate Estates in the vicinity of 24th Ave NE adjacent to nearby lands where an oil well
has been proposed and an Oil Exploration Permit has been applied for at FDEP. The citizen's
initial encounter related to the potential oil well was a safety/disaster preparedness related letter
from the applicant's permitting consultant that sparked fear and anxiety among recipients and
nearby residents. Numerous advocacy groups have become engaged. Additional oil and gas
exploration and extraction sites have come under scrutiny.
The Florida Oil and Gas Program and related activities are regulated by Federal and
State agencies, primarily the Florida Department of Environmental Protection (FDEP), and the
South Florida Water Management District (SFWMD). Despite its lack of authority, Collier
County has supported and publicized public information meetings and distributed printed
materials, to forward information and answer inquiries. Administrative challenges have been
filed with FDEP and SFWMD by numerous parties. In response, and as part of the review and
public input process, in March, several public hearings were conducted by FDEP and the US
Environmental Protection Agency (EPA) in local venues. To date, citizen concerns regarding
the Florida Oil and Gas Program in Collier County persist, and inconsistencies between
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disseminated information and applied oil well drilling practices and administration conducted by
FDEP, SFWMD, land owner Collier Resources, the drilling contractor Dan A. Hughes
Company, L.P., and citizens remain unresolved.
Failure to disclose newly released FDEP Orders and administrative action during recent public
meetings and hearings has further eroded public confidence in the Florida Oil and Gas Program,
regulatory agencies FDEP and SFWMD, and by association, Collier County local government.
Time Sensitivity: For the Collier BCC to file a challenge to the FDEP Consent Order as a party
of substantial interest, a petition for an administrative hearing must be filed with and received by
FDEP within 21 days of the original Consent Order, that date being on or before Tuesday,
April 29th,2014.
FISCAL IMPACT: Staff Time/minimal additional
LEGAL CONSIDERATIONS: None
GROWTH MANAGEMENT IMPACT: None
RECOMMENDATION: Recommendation to direct the Collier County Attorney, supported by
staff, to file a challenge to Consent Order (OGC File No. 14-0012) entered into on April 8, 2014
between the State of Florida Department of Environmental Protection(FDEP) and the Dan A.
Hughes Company, L.P. regarding oil and gas well operations at the Collier-Hogan 20-3H Well
(Permit No. 1349H).
Challenge to request the Consent Order be modified to require additional provisions for
oversight, safeguards, and monitoring to protect the environment and insure the health, safety,
and welfare of the citizens of Collier County.
Challenge to further request a protocol be established from FDEP that improves
communication and coordination between the agencies regulating the Oil and Gas Program and
Collier County local government, and that copies be provided to Collier County of all application
packages for future oil and gas exploration, production wells, and class II injection wells, as well
as all permit related correspondence, additional submittals, meeting minutes, and agency action.
Additional change(s)to the Consent Order as deemed appropriate by the Board.
PREPARED BY: Commissioner Tim Nance
AGENDA DATE: April 22, 2014—Add-on Agenda Item
(5)Attachments:
• FDEP vs. Dan A Hughes Company, L.P. Consent Order dated 4-8-14
• FDEP Well 20-311 Collier Hogan—Cease and Desist Order dated 12-31-13
• FDEP Statement regarding Consent Order with Dan A. Hughes Company, L.P. —4-18-14
• Newspaper articles published in the Ft. Myers News Press and the Naples Daily News -
for reference only