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Agenda 04/22/2014 Item # 10C 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 20-311 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 18'x' after 5:00pm, and supporting documents released, regarding FDEP action against Dan A I-Iughes 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 24`x' 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 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. 134911). 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 20-3H 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 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. 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. 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 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 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 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. 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 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 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. 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 this notice. Failure to file a petition within the 21-day period constitutes a person's waiver of the right to request an administrative hearing and to participate as a party to this proceeding under Sections 120.569 and 120.57, F. S. Before the deadl ne for filing 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- 110.1.06(12), F.A.C. FOR THE COMPANY: DAN A. HUGHES COMPANY, L.P. By: Dan A. Hughes Management, L.L.C. [Is general partner aollf DATE. ry remers, ��.OlVicc President of Land F PPO.,_Praw_er669,_Beeville,,Tcxas 7$104 ADDRESS DONE AND ORDERED this 8th day of April _, 2014, in Tallahassee Florida. STATE OF FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION '/" Mark Thomasson P. E. Director, Division of Water Resource Management Filed,on this date, pursuant to Section 120.52,Fla. Stat.,with the designated Department Clerk, receipt of which is hereby acknowledged. ()za,via--a v-giy Clerk Date Copies furnished to: Lea Crandall,Agency Clerk Mail Station 35 EXHIBIT 1 This exhibit is protected as a confidential trade secret under section 815.045, Florida Statutes, and has been submitted separately. EXHIBIT 2 Company fined for technique consistent with 'fracking' in Collier Page 1 of 3 Company fined for technique consistent with 'fracking' in Collier Steve Doane,sdoane @news-press.com 7:99 p.m.EDT April 18,2019 M ,*A4- Ale I P , (Photo:Andrew West/News-Press) SHARE EET CO 287 EEC TW (https://twitter.com/intent/tweet?url=http://newspr.es/lifEGOD&text=Company%20fined%20for%20tec The Florida Department of Environmental Protection has fined a Texas oil company for performing a drilling technique consistent with fracking in central Collier County. The company was fined$25,000 for its actions and 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 and 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 and obtain permission. —Connect with this reporter on Twitter:e,Steve Doane (https://twitter.com/(Steve Doane )and facebook.com/SteveDoaneJournalist (http://facebook.com/SteveDoaneJournalist) FL DEP consent order(http://www.scribd.com/doc/219066490/FL-DEP-consent-order)by jmwinchester7(http://www.scribd.com/imwinchester7) http://www.news-press.com/story/life/outdoors/2014/04/18/dep-fines-oil-company-for-unauthorized-dril... 4/21/2014 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 OPERATIONS AT WELL 20-3H COLIJER-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. 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 • ifferAl6 e 'chel Vinyard Secretary 2 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 richardbc hgslaw.com;fimothvr @haslaw.com, on this 31st day of December, 2013. rry Mo an Depu neral C nsel FILED ON THIS DATE PURSUANT TO§120.52, FLORIDA STATUTES,WITH THE DESIGNATED DEPARTMENT CLERK,RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED. 4 441 /cV 31//3 CLERK DATE 3 April 26,2011 f ESCD FESCO,Ltd. �+ 1100 FESCO Ave.-Alice,TX 78332 For: Any Company Field: N/A Anywhere,USA County: N/A Sample: XYZ Well Date: 1 1/8/201 I Type: Well Water Time: 08:00 Formation: N/A Depth(Ft): 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(Ba) 1.96 0.03 Potassium(K) 73.22 1.87 Iron(Fe) 0.13 — Chloride(Cl) 17640.00 497.60 ( Stiff-Davis CaCO3 Stability Index Sulfate(SO4) 95.00 1.98 I 40- Carbonate(CO3) 0.00 0.00 ! Bo Bicarbonate(HCO3) 407.00 6.67 0 60 g 100. Hydroxide(OH) 0.00 0.00 V. 120- a 140 Sulfide(H2S) 0,00 I 160 ~ 160 \\\\ Total Solids 30105 200 Total Alkalinity(CaCO3) 333 -2 -1 0 1 2 Total Hardness(CaCO3) 880 K-Corrosive : Scaling-> Standard.meq Per Liter ______._. —�—__ _____- _._._____. .• (Ne+K)I20 - - • Cl/20 can .. HCO Mg/1 - -so4n 1CO 60 60 40 20 0 20 40 60 60 100 120 R Log-meq Per Liter Na+K i -'• HCO3 Mg t + t 4 3 2 1 0 1 2 3 4 5 6 Exponent Certified: FESCO,Ltd. - Alice,Texas --. :b46/....i . David Dannhaus 361-661-7015 T Job Number: 99999 . 9999 STATEMENT FROM DEP REGARDING CONSENT ORDER WITH THE DAN A. H... Page 1 oft ShareShareShareShareMore 4 Receive Updates) Go x- a E � .A Via. .` c.,,,,.' �.,' w.Y! r# .... ma x; �:'0,,r-'S,'— --i.,..',, , - 'e ':..g 4`' ., STATEMENT FROM DEP REGARDING CONSENT ORDER WITH THE DAN A. HUGHES COMPANY, L1'. Florida Department of Environmental Protection sent this bulletin at 04/18/2014 03:5, 7 PM EDT si .i ..y -_ t .„ , ._. ,,off „ate �ww aasw ��d. .. 3•... :,,i1.0 , w»rm'C;^'° Na y . �wlr. �,?t ? ” 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. TALLAHASSEE—The Florida Department of Environmental Protection (DEP) finalized a Consent Order last week with the Dan A. Hughes Company, L.P. for unauthorized 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: 4/22/2014 http://content.govdelivery.com/accounts/FLDEP/bulletins/b1683b STATEMENT FROM DEP REGARDING CONSENT ORDER WITI-I THE DAN A. I-I... Page 2 o12 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 k SUBSCRIBER SERVICES n`'.,_ �" �; = Manage Preferences I Delete Profile I Help 'FLORIIA ' + CHECK OUT DEP'S ONLINE NEWSROOM Y° u eY 9 VD LIVERY http://content.govdelivery.com/accounts/FLDEP/bulletins/b1683b 4/22/2014 . DEP fines oil company for unauthorized work on Collier oil well : Naples llaily News Page 1 of 3 t'1 aIIeS ws.cOr Read more at napiosnev.s con} 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 http://www.naplesnews.com/news/2014/aor/18/den-fines-oil-comnanv-unauthorized-work- 4/19/2(114 . . 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. "If 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(racking,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(racking 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. cnm/newc/71114/anr/1 R/rlen-fines-nil-cmmnanv-immithnri7eri-work- 4/19/7014 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 ©2014 Scripps Newspaper Group—Online http://www.naplesnews.com/news/2014/apr/18/dep-fines-oil-company-unauthorized-work-... 4/19/2014