Agenda 09/23/2014 Item #12B9/23/2014 123.
EXECUTIVE SUMMARY
Request that the Board of County Commissioners provide direction to the County Attorney
as to whether to intervene in litigation with the Florida Department of Environmental
Protection ( "FDEP") against the Dan A. Hughes Company, L.P., based on Hughes
Company's ( "Hughes Company ") unauthorized acid fracking activities in Collier County.
OBJECTIVE: To obtain Board direction on whether the County should intervene in the FDEP
litigation against Hughes Company; FDEP presently has a civil matter pending in Collier County
Circuit Court and an administrative matter pending in Tallahassee.
CONSIDERATIONS:
Following an unauthorized Workover Operation by Hughes at the Collier -Hogan Well from
December 30, 2013 to January 1, 2014, FDEP issued a Cease and Desist Order, followed by a
Consent Order with Hughes Company, which the County challenged through a Petition for an
Administrative Hearing. The Petition, as amended, sets forth the historical and procedural
history of this matter and is included in the back -up material. In its Amended Petition (which is
included in the back -up), filed with FDEP July Ist, the County seeks the following relief:
1) That the FDEP accept this Petition for Administrative Hearing and refer this matter to
the Division of Administrative Hearings for a Formal Administrative Hearing
pursuant to Sections 120.569 and 120.57;
2) That the Administrative Law Judge enter a Recommended Order recommending that
FDEP enter a Final Order denying the Consent Order, and ordering the suspension
and revocation of DEP Drilling Permit No. 1349H Collier Hogan Well 20 -311; and
3) If the Consent Order is not reversed, and the permit is not revoked, that the Consent
Order be modified (remainder omitted):
On July 18th, FDEP took action by revoking all of Dan A. Hughes Company's permits, including
the Collier -Hogan well, and filing a lawsuit in Collier County. Briefly stated, FDEP is seeking
the following relief in its civil suit:
1) A mandatory injunction requiring Hughes to permanently plug, abandon the well,
and otherwise remediate the site, and thereafter cease all operations involving the well.
2) A mandatory injunction requiring Hughes to conduct a contamination assessment
at the site, and to pay for an independent expert selected by FDEP to conduct an assessment of
the site.
well.
3) An order requiring Hughes to produce all records concerning operation of the
4) FDEP is also seeking civil penalties and costs incurred by FDEP.
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In the Administrative Proceeding, FDEP issued a Notice of Revocation to the Hughes Company
for all of its permits. The Revocation is based on the Hughes Company failure to comply with
the terms of the Consent Order by: (1) failing to submit an adequate Interim Spill Prevention and
Cleanup Plan; (2) failing to make a good faith effort to reach an agreement with FDEP on the
selection of third -party experts; and (3) failing to submit an analytic sampling of the flowback
material prior to its final disposal which was a required component of the groundwater
monitoring plan. In addition, FDEP found that Hughes Company refused to submit records
request by FDEP regarding the flowback material generated by the workover operation, failed to
post required safety signs, and failed to maintain a required permit for its dumpster.
Hughes Company has filed a petition for a formal hearing challenging the revocations.
A copy of the County's Amended Petition, FDEP's Revocation, and the FDEP'S Petition for
Enforcement and Amended Complaint is included in the back -up.
It is the opinion of the County Attorney that these affirmative actions by FDEP, buttressed by
their recent written commitment to the Board, renders the County's Amended Petition moot. It is
also the opinion of the County Attorney that continuing the challenge to the Consent Order
undermines FDEP's pending litigations, as the Consent Order cannot become final while a
challenge is underway.
During its presentation on September 9, 2014, FDEP formally invited the County to intervene in
the remaining litigation against Hughes Company. The issue presented here is whether the
County should join FDEP in both the administrative proceeding now pending in Tallahassee
concerning the revocation, and the civil action now pending in Collier County concerning the
enforcement and penalties.
The reasons in joining these proceedings include:
1) As an intervenor, the County will have equal rights and standing as a part y, will
have access to all discovery, and full participation in any mediation or settlement discussions.
2) Our joining in both proceedings greatly hinders the ability of FDEP to later
withdraw from these proceedings, which may be of some utility should there be a change of
administrations or FDEP policy.
The reasons in not joining these proceedings include:
1) Given what's at stake to Hughes, I have little doubt that this litigation will be
strenuously contested, difficult to predict, and absent settlement or appropriate rule- making
which resolves the matter, may be lengthy. Absent a quick resolution, there will be a material
cost involved to the County (including potential outside counsel and expert witnesses).
2) The County Attorney believes legislation and rule- making to be far more valuable
in the long -term protection of the County's well -water compared to litigation. Accordingly,
County resources may be better allocated towards rule- making and research rather than
litigation. Because FDEP has the statutory duty to protect this State's natural resources, the
County's efforts in the litigation may prove redundant.
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The County Attorney recommends an all -or- nothing approach, as I see little utility or cost -
savings in joining in on just one of these proceedings.
GROWTH MANAGEMENT IMPACT: None.
FISCAL IMPACT: Should the County intervene in the administrative proceeding in
Tallahassee, the County Attorney recommends that the Board authorize the County Attorney to
engage Greg Stewart from the law firm of Nabors, Giblin & Nickerson to represent the County
in this matter as co- counsel. Mr. Stewart and his firm have extensive experience in
administrative proceedings and working with FDEP, and are located in Tallahassee. At this
time, the County Attorney does not expect to engage outside counsel for the Collier County
Circuit proceeding, and will staff this litigation internally. The County will most likely be
required to engage one or more expert witnesses for either or both proceedings. Total litigation
costs should be under $50,000 prior to the conclusion of the next Legislative Session, with the
bulk of these litigation costs to be outside experts.
RECOMMENDATION: That the Board of County Commissioners provide direction to the
County Attorney as to whether to intervene in litigation with the Florida Department of
Environmental Protection against the Dan A. Hughes Company, L.P., based on Hughes
Company's unauthorized acid fracking activities in Collier County.
Prepared by: Jeffrey A. Klatzkow, County Attorney
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COLLIER COUNTY
Board of County Commissioners
Item Number: 12.B.
9/23/2014 12.B.
Item Summary: Request that the Board of County Commissioners provide direction to the County
Attorney as to whether to intervene in litigation with the Florida Department of Environmental Protection
( "FDEP ") against the Dan A. Hughes Company, L.P., based on Hughes Company's ( "Hughes Company ")
unauthorized acid fracking activities in Collier County.
Meeting Date: 9/23/2014
Prepared By
Name: KathynellCrotteau
Title: Legal Secretary, CAO Office Administration
Approved By
Name: ColleenGreene
Title: Assistant County Attorney, CAO General Services
Date: 09/15/2014 02:06:28 PM
Name: markisackson
Title: Director -Corp Financial and Mngmt Svs, Office of Management & Budget
Date: 09/15/2014 02:36:14 PM
Name: klatzkowjeff
Title: County Attorney,
Date: 09/15/2014 02:48:11 PM
Name: ochs_1
Title: County Manager, County Managers Office
Date: 09/15/2014 04:09:02 PM
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BEFORE THE STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
COLLIER COUNTY and COLLIER
COUNTY WATER -SEWER DISTRICT,
Petitioners,
V.
FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, and DAN A. HUGHES COMPANY,
L.P.,
Respondents.
IN THE DIVISION OF
WATER RESOURCE
MANAGEMENT
OGC File No.: 14 -0012
9/23/2014 12.B.
COLLIER COUNTY AND THE COLLIER COUNTY WATER -SEWER DISTRICT'S
AMENDED PETITION FOR ADMINISTRATIVE HEARING
Petitioners, the Collier County Board of County Commissioners (hereinafter referred to
as "Collier County ") and the Collier County Water -Sewer District (hereinafter referred to as the
"District"), by and through the undersigned counsel, and pursuant to Sections 120.569 and
120.57, Fla. Stat., and Rules 28- 106.202 and 62- 110.106, Florida Administrative Code (F.A.C.),
hereby file this Amended Petition for Formal Administrative Hearing challenging a Consent
Order entered into between the Florida Department of Environmental Protection and the Dan A.
Hughes Company, L.P. on April 8, 2014 (OGC File No. 14 -0012, attached hereto as Exhibit
"A "), relating to Dan A. Hughes Company, L.P.'s violation of Permit No. 1349H, Collier -Hogan
20 -3H Well. (Attached hereto as Composite Exhibit `B" — Oil and Gas Well Drilling Permit and
Five Year Operating Permit.)
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PROCEDURAL BACKGROUND
1. On or about December 18, 2012, the Department of Environmental Protection
(hereinafter referred to as the "DEP ") issued an Oil and Gas Well Drilling Permit (Permit No.
1349H, Collier -Hogan 20 -3H Well) to the Dan A. Hughes Company, L.P. (hereinafter referred to
as the "Hughes Company ") to construct a well located at the Hogan Island Farm in Collier
County, Florida. This Permit authorized the Hughes Company to drill a "horizontal completion
targeting the Lower Sunniland Formation."
2. The Sunniland Formation is a well- defined, onshore oil reserve stretching from Ft.
Myers to Miami. Oil was first discovered in the Sunniland in 1943 by the Humble Oil and
Refining Company, now known as Exxon. Since then, eight commercial oil fields have
produced more than 118 million barrels of oil at some of the highest onshore per -well flow rates
in the country. Wells in the Sunniland produce from limestone formations located more than two
miles below the surface. The variety of oil produced in the Sunniland Formation is "heavy sour"
which when refined produces auto and aviation fuels, diesel fuel, lube oils and asphalt. A large
part of the Sunniland is located within the Big Cypress National Preserve, which was created in
1974. The Collier family conveyed more than 159,000 acres for the establishment and expansion
of the Preserve but maintained private ownership of the mineral rights.
3. Production in the Sunniland peaked in the 1970's. Production was by traditional
vertical drilling methods, and over the past 70 years of production no material environmental
issues are known by Petitioners. Production over the past few decades has been a small fraction
of peak production periods, with new activity virtually non - existent.
4. On information and belief, at all relevant times herein it was the intent of the Hughes
Company to engage in a process commonly known as fracking in an attempt to revive what had
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largely been depleted fields. This process includes drilling a vertical shaft into the oil producing
formation, then drilling horizontal borings, into which chemicals are injected under pressure to
dissolve the rock and create fissures, allowing the release of additional oil. On information and
belief, this production method had never before been undertaken in Collier County.
5. Neither the Permits nor the applications on which the Permits were based put
Petitioners or the public on notice of the true nature of the drilling that was intended, or the
chemicals that they intended to inject into the ground.
6. By e-mail dated April 18, 2013, Collier County formally requested from DEP that (1)
it be provided with an electronic copy of the Hughes Company application and permit with
respect to the oil well which is the subject of this Petition; and (2) that we be placed on DEP's
Oil and Gas Interested Parties List for all Oil and Gas Activities within Collier County. That
request was acknowledged by DEP that same day. (Attached hereto as Exhibit "C" — e -mail
dated April 18, 2013.)
7. By letter signed by all five members of the Collier County Board of County
Commissioners, received by DEP on June 28, 2013, Collier County requested that DEP
"establish direct communication protocols with Collier County regarding safety and
environmental monitoring, emergency response, and all public health and safety issues that arise,
should permits for drilling and extraction be issued in Collier County ". (Attached hereto as
Exhibit "D ".)
8. Upon completion of the construction of the 20 -3H Collier -Hogan Well, DEP issued a
Five Year Operating Permit to Hughes Company on August 9, 2013, under the same permit
number (Permit No. 1349H) to operate the well as an oil production well. On information and
belief, Collier County was not notified on this issued Permit.
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9. On or about December 23, 2013, the Hughes Company e- mailed the DEP a workover
notification concerning its operating permit for the 20 -311 Collier -Hogan Well indicating its
intent to conduct a "Workover Operation" commencing on December 28 or 29, 2013.
Subsequently, at the request of the DEP, Hughes Company agreed to delay the Workover
Operation until at least December 30 to allow DEP additional time to review and respond to the
notice. The Hughes Company proceeded with the Workover Operation on December 30, 2013,
and continued through January 1, 2014, despite oral notification by the DEP that the proposed
Workover Operation was not approved. Collier County was given no notice of any of this.
10. On December 31, 2013, the DEP entered a Final Order Requiring Operations at Well
20 -3H Collier -Hogan to Cease and Desist. (Attached hereto as Exhibit "E ".) The Final Order
noted that "the Department is not satisfied that it has sufficient information that the proposed
workover would be protective of the State's groundwater resources" and ordered that the Hughes
Company "CEASE AND DESIST all operations proposed in the December 23, 2013, workover
notice."
11. Even though DEP was clearly concerned that the Hughes Company's actions could
adversely impact the State's groundwater resources, no notice of this Final Order was given to
Petitioners Collier County or the District, nor to the residents of Collier County, who depend and
rely on these groundwater resources for their sole source of drinking water. Repeatedly ignoring
the County's multiple acknowledged requests for Notice with respect to this project and all other
oil well drilling operations, Collier County was kept in the dark as to the true nature of these
drilling activities.
12. On April 18, 2014, DEP issued the following Press Release:
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"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:
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."
13. Petitioners first received notice of both the Cease and Desist Order and the April 8t'
Consent Order from an April 18`h Naples Daily News article that referenced the April 18th Press
Release. This Amended Petition is timely as provided for in F.A.C. Rule 28- 106.202.
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14. Collier County and the District hereby file this Notice of Administrative Amended
Petition to challenge the Consent Order and seek revocation of the Permit.
AFFECTED AGENCY
15. The affected agency is the Florida Department of Environmental Protection, Division
of Resource Management, 3900 Commonwealth Boulevard, Tallahassee, Florida 32399. DEP is
an agency within the meaning of Section 120.52, Florida Statutes, and is the administrative
agency for 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,
and Chapters 62C -25 through 62C -30, Florida Administrative Code (Conservation of Oil and
Gas).
CHALLENGED AGENCY ACTION
16. A Consent Order issued by DEP on or about April 8, 2014 (OGC File No. 14- 0012),
and ultimately the improper issuance of the Hughes Company Permits.
THE PETITIONERS
17. The Petitioners are the Collier County Board of County Commissioners and the
Collier County Water -Sewer District. For the purposes of this proceeding, Petitioners' address
and telephone number are:
Jeffrey A. Klatzkow, County Attorney
3299 Tamiami Trail East, Suite 800
Naples, FL 34112
Office: 239.252.8400
Fax: 239.252.6300
ieffklatzkow@colliergov.net
colleen r�(a,colliergov.net
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COLLIER COUNTY AND THE COLLIER COUNTY WATER -SEWER DISTRICT'S
SUBSTANTIAL INTERESTS AND STANDING
18. Collier County is a political subdivision of the State of Florida. Collier County
operates as a non - charter County, governed by a five member Board of County Commissioners.
By virtue of Article VIII of the Florida Constitution and Chapter 125, Florida Statutes, the
Collier County Board of County Commissioners enjoys broad home rule powers, including
traditional police powers, and is responsible for the public health and welfare of all Collier
County residents, many of whom rely on relatively shallow wells for their water supply.
19. The Collier County Water -Sewer District is an independent special district in Collier
County, and presently operates under Chapter 2003 -353, Laws of Florida, having been initially
established by Chapter 73 -437. This 2003 Special Act reestablished the District as a political
subdivision of the state and a body corporate and politic, and designated the Collier County
Board of County Commissioners as its governing board. The 2003 Special Act provided the
following legislative intent for the District:
"It is declared as a matter of legislative determination that the extensive growth
population and attendant commerce throughout Collier County continue to give
rise to public health and water supply coneems...that it is the intent of the
legislature to continue to authorize the Board of County Commissioners of Collier
County to act as the governing board (district board) of the Collier County Water -
Sewer District with overall responsibility for the provision of water and sewer
services to specified geographic areas of Collier County as hereinafter provided."
Laws of Fla. ch. 2003 -353, § 3
20. The District currently services over 200,000 Collier County residents with drinking
water, and must strictly comply with stringent Federal and State regulations to ensure the water's
safety and quality.
21. There are presently two areas in Florida with oil fields. One area is north of
Pensacola, and constitutes two - thirds of Florida's inland oil production. The other area is largely
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within Collier County, and is known as the Sunniland Oil Field, and includes the 20 -3H Collier-
Hogan Well. Production in the Sunniland Field dates back to the 1940's.
22. The concern is not with traditional oil extraction methods, but the introduction of
modern production methods commonly referred to as 'Tracking," which is intended to fracture
oil bearing rock. The concern arises out of the fact that Collier County is located over a Karstic
Aquifer system with non - contiguous porous confining layers consisting mostly of sandstone,
dolomite, and shell beds which are particularly vulnerable to any pollution sources. A number of
utilities operate well fields in Collier County, including the City of Naples, the Collier County
Water -Sewer District, the Immokalee Water Sewer District, the City of Marco Island, and
various private utilities.
DISPUTED ISSUES OF MATERIAL FACT
23. Whether the Workover Operation included activities outside the scope of Permit No.
1349H, Collier Hogan 20 -3H Well, including whether the Respondent Hughes Company
engaged in the practice of hydraulic fracturing or "fracking." Section 62C- 25.002(61), F.A.C.,
provides that Workover "shall mean an operation involving a deepening, plug back, repair,
cement squeeze, perforation, hydraulic fracturing, acidizing, or other chemical treatment which
is performed in a production, disposal, or injection well in order to restore, sustain, or increase
production, disposal, or injection rates ". (Emphasis added.).
24. Whether DEP and/or the Hughes Company are able to provide competent substantial
evidence that the Workover Operation did not violate any applicable groundwater quality
standard as suggested in the Consent Order Paragraph 16.
25. Whether DEP and/or the Hughes Company are able to provide competent substantial
evidence that the Workover Operation did not violate any groundwater standard in the nearby
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groundwater aquifer used as public and private water supply as suggested in the Consent Order
Paragraph 19.
26. Whether in light of the relatively recent and quickly evolving fracking technology,
the DEP has adopted sufficient and appropriate rules to ensure that all precautions are taken to
prevent the spillage of oil or any other pollutant in all phases of the drilling for, and extraction of,
oil, gas, or other petroleum products, as provided for and required in Section 377.22(2)(a) -(y),
Fla. Stat., Rules and Orders.
27. Whether the DEP acted within the full extent of its statutory duty to enforce the rules
and orders as provided in Section 377.22(2)(a) -(y), Fla. Stat., Rules and Orders.
28. Whether the Hughes Company acted in strict compliance with Section 62- 30.005,
F.A.C., to drill in the Big Cypress Watershed.
29. Whether the Hughes Company purposefully omitted from their Application their
intent to engage in fracking.
30. Whether DEP would have issued the original Permit had the Hughes Company made
full disclosure in its Application.
31. Whether Petitioners and other parties with substantial interests had their due process
rights to challenge the original Permit wrongfully denied by Hughes Company's failure to so
disclose.
32. Whether the activities engaged in by the Hughes Company warrants the revocation
of the Permit, or in lieu thereof, an amendment of the Consent Order.
33. Whether DEP ought to have given Petitioners notice of the issuance of the Operating
Permit, the unapproved Workover Operation activities when first discovered by DEP in
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December of 2013, as well as notice of the proposed Consent Order, all of which occurred after
Collier County had sent two requests to be notified.
ULTIMATE FACTS AND SPECIFIC FACTS WARRANTING
REVOCATION OR MODIFICATION OF THE PERMIT OR, IN
THE ALTERNATIVE, MODIFICATION OF THE CONSENT ORDER
34. The Workover Operation engaged in by the Hughes Company was not only outside
the scope of the Permit (Permit No. 1349H, Collier Hogan 20 -3H Well), but the Hughes
Company continued these activities despite notification by DEP that the Workover Operation
was not approved.
35. The Workover Operation violated applicable groundwater quality standards, as
suggested by Consent Order Paragraph 16.
36. The Workover Operation violated groundwater standards in the nearby groundwater
aquifer used as public and private water supply as suggested by Consent Order Paragraph 19.
37. DEP has not adopted sufficient and appropriate rules in response to the relatively
recent and quickly evolving technology of fracking to ensure that all precautions are taken to
prevent the spillage of oil or any other pollutant in all phases of the drilling for, and extraction of,
oil, gas, or other petroleum products, as provided for and required in Section 377.22(2)(a) -(y),
Fla. Stat., Rules and Orders.
38. DEP did not act within the full extent of its statutory duty to enforce the rules and
orders as provided in Section 377.22(2)(a) -(y), Fla. Stat., Rules and Orders.
39. The Hughes Company failed to act in strict compliance with Section 62- 30.005,
F.A.C., in drilling within the Big Cypress Watershed.
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40. The disregard by the Hughes Company of DEP's oral notification that the proposed
Workover Operation was not approved warrants the revocation of the Permit, or in lieu thereof,
an amendment of the Consent Order consistent with Petitioners' requests described below.
41. The DEP ought to have given Petitioners notice of the activities when first
discovered by DEP in December of 2013.
42. That until DEP demonstrates, through appropriate studies, that fracking in the
Sunniland Formation, when done pursuant to strictly defined guidelines and parameters, poses no
known risk to the groundwater and aquifers that Petitioners and the public rely on for their
drinking water, and implements these guidelines and parameters through appropriate rulemaking,
that no Permit should have issued which involves non - traditional drilling techniques.
43. That DEP would never have issued, or should never have issued, the Permit to the
Hughes Company had the true nature of this drilling been initially disclosed.
44. That had the Hughes Company, who consistently represented to the people of Collier
County that no fracking would occur, disclosed the true nature of the proposed drilling in their
application, that Petitioners and other parties with substantial interests would have had the ability
to challenge the Permit before any drilling had commenced.
45. That had DEP given Notice to Collier County of the issuance of the Operating
Permit, the unapproved Workover Operation activities when first discovered by DEP in
December of 2013, as well as notice of the proposed Consent Order, all of which occurred after
Collier County had sent two requests to be notified, Petitioners and other parties with substantial
interests would have had the opportunity to challenge these agency actions then and there.
RULES AND STATUTES ENTITLING PETITIONERS TO RELIEF
46. The following statutes and rules entitle Petitioners to relief:
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a. Chapter 377, Florida Statutes, including but not limited to Section 377.22(2)
b. Chapter 403, Florida Statutes
c. Chapters 62C -25 through 62C -30, Florida Administrative Code
d. Chapter 2003 -353, Laws of Florida
e. Florida Administrative Code Chapter 62 -520 (Ground Water Classes, Standards
and Exemptions); and Rule 62- 520.440, Rule 62- 520.430, Rule 62- 520.420, and
Rule 62- 520.400.
RELIEF REQUESTED
WHEREFORE the Petitioners, Collier County and the District, respectfully request the
following relief:
(1) That the DEP accept this Amended Petition for Administrative Hearing and refer this
matter to the Division of Administrative Hearings for a Formal Administrative Hearing
pursuant to Sections 120.569 and 120.57;
(2) That the DOAH ALJ enter a Recommended Order recommending that the DEP enter a
Final Order denying the Consent Order, and ordering the suspension and revocation
of DEP Drilling Permit No. 1349H Collier Hogan Well 20 -3H.
(3) If the Consent Order is not reversed, and the permit is not rescinded, Petitioners
respectfully request the Consent Order be modified as follows:
a. Amend paragraph 11 of the Consent Order to provide "...the Company shall
provide to the Department and Collier County the information in paragraphs 12-
14 below."
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b. Amend paragraph 15 of the Consent Order to provide "...The ISPC Plan shall be
submitted to the Department and Collier County within fourteen (14) days of the
effective date of this Consent Order..."
c. Amend paragraph 16 of the Consent Order to provide that Collier County will be
given the requested information and analysis, and that DEP, in consultation with
Collier County, directly retain the requested independent third -party experts at the
Hughes Company's sole cost and expense to do the work described therein.
d. Amend paragraph 17 of the Consent Order to include Collier County as a
recipient and meaningful reviewer of the Report.
e. Amend paragraph 18 of the Consent Order that gives Collier County 30 days after
receipt of the Report to consult with DEP prior to DEP providing written notice to
the Hughes Company that it has satisfied the Report requirements.
f. Amend paragraph 19 to include Collier County as a recipient of the Plan and
require that the Plan be reviewed by independent third party experts retained by
DEP in consultation with Collier County, to be paid by the Hughes Company.
g. Include the following new provisions in the Consent Order:
(i) That Hughes Company immediately notify Collier County or its
designee of any accident or incident occurring at the well site.
(ii) That Hughes Company be fully liable for any and all remediation
costs and post a ten (10) million dollar performance bond sufficient
to cover potential assessment and remediation costs.
(iii) Require a mechanical integrity test of the well casing at the subject
production well, and any associated disposal wells, and nearby
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abandoned wells including testing of the cement, and require tracer
dye studies to determine upward movement of fluid around well
casings.
(iv) Require additional third party independent groundwater monitoring
in all aquifers to provide earlier and better detection of
contamination of the aquifers, particularly those aquifers used for
drinking water, and require a tracer dye study between the subject
horizontal Hughes well and the two nearby dry bore holes.
(v) Require additional third party independent groundwater flow
modeling to simulate workover pressures, flow and chemical fate of
any workover activities undertaken, especially in the absence of
actual measurements during the procedure.
(vi) Require an operational plan to ensure that there is no excessive
dissolution of rock or forcing of fluids to areas other than the
targeted area be provided to Collier County.
(vii) Require the reporting of the location and method of wastewater
disposal to assess and ensure that injected workover fluids are not
dissolving rock formations, especially rock formations that restrict
upward migration of the fluids.
(viii) Require groundwater flow modeling and tracer -dye testing to assess
potential contaminant migration along fractures to existing private
and public drinking water wells, in the vicinity of the subject oil
production well.
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(ix) Require the two nearby abandoned wells be logged and tested prior
to any additional production and/or workover activities at the subject
oil production well and then properly cased, plugged, capped and
integrity tested.
(x) Require that a complete list of all chemicals that were used, and in
what quantities, and their material safety data sheets, be provided to
Collier County.
(xi) Require that a water balance showing the amount of water obtained
by source, used, recovered and disposed and the disposal location be
provided to Collier County.
(xii) Require that a groundwater injection prevention, containment,
recovery and remediation plan to provide assurance that injected
fluids will not migrate to other groundwater formations or aquifers
be provided to Collier County.
(xiii) Require that a spill prevention and containment plan for surface
spills covering the entire drill pad in accordance with best
management practices to assure that all potential sources of
contamination are within containment and that the containment area
can hold 110% of the volume of the largest on -site holding tank be
provided to Collier County.
(4) That until these conditions are met, that the stop work order be reinstated and all work at
the well should stop until reasonable assurances are provided, reviewed and approved or
denied.
15
Packet Page -489-
(5) Grant any other relief that this Agency deems just and proper.
Respectfully submitted this I' day of July.. 2014.
By:
9/23/2014 12.B.
;t7 KLATZKOW
County Attorney
Bar No. 0644625
M.GREENE
Assistant Count), Attorney
Florida Bar No. 502650
Collier County Attorney's Office
3299 East Tamiami Trail, Suite 800
Naples, FL 34112-5749
Telephone: (239) 252-8400
Facsimile: (239) 774-0225
COL NSEL FOR PETITIONER
jeffidatzkowa, collier gov.net
colleenzwenena.colliemov.net
nancvbradleyCa:),collJeryov.net
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true and correct copy of the Amended Petition for
Administrative Hearing has been furnished via email upon: The Office of General Counsel,
FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION,
lea.crandall(-cb.dep.state.fl.us; FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, Mark Thomasson, P.E., Director, Division of Water Resource Management,
niark-.ilioi-na.ssonfii?,.den.state.fl.us: and Counsel for DAN A. HU91-IES COMPANY'. L.P.,
Timothy M. Riley, Esq., Richard S. Brightman, Esq., and French Br wn, s ., Hopping, Green
& Sams
P.A., �Im'othvr(o—uheslaw.com; richardb(@,hfaslaw.com• and .fr 7 'DI hWsiaw xom; on
this I st day of July.. 2014.
B
JEFFREYA TaSTZKOW, ESQ.
OGC U 14-00121225
16
Packet Page -490-
,,net
..net
e---'
BEFORE TIM STATE OF FLORIDA
DEPART AGM OF WINMONMENTAL PROTECTION
STATE OF FLORIDA DEPARThEWT
OF ENVIRONMENTAL PROTECTION
va.
DAN A. HUGHBS COMPANY, L.P.
9/23/2014 12.B. I
IN THE DMSMN OF
WATER RESOURCE MANAGEMENT
OOC FILE NO. 14-0012
This Content Omer ("Order") is a ga W into betw= the Stale of Florida Depannaot of
Mmimam ntal Protection, C"Departmaat") and do Dan A. Hughes Company, L.P. ("Company" ),
to reach sdd=cnt of cmtsiu mattare at issno between tha Department and the Company.
1. The Department is the admive agency of the State of Florida baving the
power and duty to protect Florida's air and wow r eaoutoes and to administer and eaforce the
provis. of Chaplets 377 and 403, Florida Statutes ("F. S.J and Chaplets 620-25 ftongh
620.30, Florida Adntdsftdve C ode ("F.A.C."). The Department has jurisdiction over the
matters addressed in this Order.
2. Tho Company is s " person" within the meaning of Section 403.161 and
403.031(3), F.S.
3. The Company obtained an Oil dr On Wall DdUft Patmit fimn the Department
in December of 2012 (Permit No: 1349H, CoMet`Hogan 20-SE Wdl) to oonsttuct a wall to be
located at the Hogan Island Farm in Collier County, Florida.
4. Upon oompletion of the conswwtion of the 20-3H CoMw.Hogan WeU("Well"),
the Company obtained a Five Year Operation Pammit in August of 2013 to opetato the Well as an
on production well.
Exhibit "A"
Collier County's Amended Petition for Administrative Hearing
Packet Page -492-
9/23/2014 12.B.
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 oomn uw= the
Workover Operation on December 28 or 29. Subsequently, at the request of the Department, the
Company agreed to delay the Wodwver Operation until at least December 30 to allow the
Department more time to review and respond to the notice.
5. 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 saved 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 55,000 for costs incurred by the Department during the
investigation of this matter and the preparation and tracking of this Order.
Packet Page -493-
9/23/2014 12.B.
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 Wozkover. .
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 messures 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 pernsit number(s).
15. The Company shall submit an Interim Spill Prevention and Cleanup Plan ("ISPC
Mel 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
Packet Page -494-
9/23/2014 12.B.
Plan within the time frame, not less than fourteen (14) days, specified by the Department in the
request or notification. Implementation of the Depmftant approved ISPC Plan constitutes
satisfaction of this requirement.
ANALYSIS AND MANAGEMENT
16. 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 creep 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 seasonably
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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9/23/2014 12. B. -
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 world 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.
IS. , No fimue 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 C 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 tiowback material
prior to its final disposal. In addition to the analysis identified in Exhibit 3, the one -time
analytical sampling of the flowback materiel shall be conducted using the following analytical
Packet Page -496-
9/23/2014 12.B.
methods. EPA Method 350.1 — total ammonia, EPA Method 8260 with required reporting of all
target analytes and toitatively identified compounds having greater than 10% relative abundance,
EPA Method 8270 with required reporting of all target anaiytes and tentatively identified
compounds having greater than 100/6 relative abundance, EPA Method 80150 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 fi=hwater 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.
Packet Page -497-
9/23/2014 12.B.
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. 1349K 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
requirememts of this Order is considered a trade secret or is otherwise confidential imbmation 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 heari gg
pursuant to Sections 120.569 and 120.57, F.S., on the terns 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
Packet Page -498-
9/23/2014 12.B.
complying with the requirements of this Consent Order, the Company shall have the burden of
proving the delay was or will be caused by cinannstances 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 wotidug 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
ciucurmstances. Such agreement shall adopt all reasonable measures necessary to avoid or
rtinimizc 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 enforcod in
a court of competent jurisdiction pursuant to Sections 120.69 and 403.121, F.S. Failure to
Packet Page -499-
9/23/2014 12.B.
comply with the terms of this Consent Order shall constitute a violation of Section
403.1610)(b), F.S.
28. All submittals and payments required by this Consent Order to be subamtted to the
Department shall be sent to the Program Administrator of the Oil & Gas Program, Division of
Water Resource Management, Florida Deportment 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
fitcsimile, shall be valid and have the some 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 pumunt 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.
Packet Page -500-
9/23/2014 12.B.
33. Persons who are not parties to this Order, but se substantial interests, are
affected by it, have a right to petition for administrative hearing 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 repras mtstive, 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
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;
fl A statement of the specific facts the petitioner contends warrant reversal or
modification of the Order,
g) A statement of the Hiles 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 [receivedl at the Department's Office of General Counsel, 3900
Commonwealth Boulevard, MS 35, Tallahassee, Florida 32399 -3000 within 21 days of receipt of
Packet Page -501-
9/23/2014 12.B.
this notice. Failure to fde a petition within the 21 -clay 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. Boforc the deadlnic for tiling a petition, a peon whose
substantial interests are affected by this Order may choose to pursue nediation as an alternative
remedy under Section 120.573, F.S. Choosing mediation will not adversely affect such person's
right to request nn 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{ 121 F.A.C.
FOR THE COMPANY:
DAN A. HUGHES COMPANY, L.P.
By. Dan A. Hughes Managemaid, L.L.C.
Its general partner
wCa ,
P.O. Drawer 669. aeeville. TASas 78104
ADDRESS
DONE AND ORDERED this 8th day of APHI a 2014, in Tallahassee
Florida.
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
Mark Thomason P. E.
Dkvdor, Division of Water Resource Management
Packet Page -502-
Filed, on this date, pursuant to Section 120.52, Fla. StaL, wit
receipt of which is hcreby ackmwledgai
Clerk j
Copies fury iahed to:
Lea Crin Ball, Agency Clock
Mail Station 35
Packet Page -503-
9/23/2014 12.B. I
EXHIBIT 1
9/23/2014 12.B
This exhibit is protected as a confidential trade secret under section 815.045, Florida Statutes,
and has been submitted separately.
Packet Page -504-
EXHIBIT 2
Packet Page -505-
9/23/2014 12. B.
9/23/2014 12.B.
BEFORE THE STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
COLLIER COUNTY and COLLIER IN THE DIVISION OF
COUNTY WATER -SEWER DISTRICT, WATER'RESOURCE
MANAGEMENT
Petitioners,
OGC File No : 14 -0012
V.
FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, and DAN A. HUGHES COMPANY,
L.P.,
Respondents.
i
it
7C1 xhibit
COLLIER COUNTY'S AMENDED
PETITION FOR ADMINISTRATIVE
HEARING
1
Packet Page -506-
9/23/2014 12.B.
k .
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTBmm
PERMITrEE
PERMrr No. 134.9E I PA No: 315034 -001
Dan A. Hu hes Coro , L.P.
WELL• 20-3H U-ter-liogan
208 E. Houston
SECURriY: ffMLe Bond No. RLBW24778
Beeville, TX 78102
PRO Cr: Collier County Wildcat Well
FINAL ORDER
OIL & GAS WELL DRILLING PERMIT
FINDINGS OF FACT: Dan A. Hughes Company, L.P., Hied 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 wititin a non - routine drilling unit in accordance
with Rule 62C-26.004(6) Florida Administrative Code (F.A.C.). AD of the mineral
ownership of the 42"cre 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 (F.S.), and implementing Chapters 62C -25
through 62C -30, F.A.C.
This permit authorizes the Dan A. Hughes Company, L.P., to drill a horizontal completion
targeting the Lower Sunniland Formation. The surface hole location (,*M) is 2116 Beet
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 East. 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)L 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 licked off at 11,187 feet TVD (11,187 feet MD) to directional drill a 8
Vx inch hole with a steerable assembly while building angle. After reading IIAM 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 6 % 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.
Composite Exhibit "B"
Collier County's Amended Petition for Administrative Hearing
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9/23/2014 12. B.
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 vehicle 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 HAS 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 including 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, FS., 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.
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9/23/2014 12.B.
Dan A. Hughes Company, LP.
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 besting 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 Gil 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.
S. 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 aIlowables 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 q Dj
produce the well but shall escrow all undistributed mineral interests' funds for the ^ V\
'v
1r l
Packet Page -509- - —
9/23/2014 12.B.
Dan A. Hughes Company, L.P.
FDEP Drilling Permit No. 1349H
Page 4 of 7
benefit of any unpaid royalty owners or yet to be determined royalty owners in the
case of unitization.
SPECIFIC PERMIT CONDITIONS
1. A directional survey shall be run from at least the surface casing shoe to total depth
and shall be filed with the administrator within 30 days after loggmg pursuant to Rule
62C- 26.004(5)(e), F.A.C.
2. If the well is successful and it is configured for production, a modified survey plat
based on the directional survey must be submitted prior to issuance of the operating
permit
3. If produced test fluids will be removed from the site by transporter(s) not authorized
by the Form 14 on file with the Department for this well, a modified Form 14
designating the transporter(s) must be submitted to the Department prior to removing
those test fluids.
RIGHTS OF AFFECTED PARTIES
A person whose substantial interests are affected by the Department's action may
petition for an administrative proceeding (hearing) under Sections 120.569 and 120.57,
F.S. The petition must contain the information set forth below and must be filed
(received by the clerk) in the Office of General Counsel of the Department at 3900
Commonwealth Boulevard, Mail Station 35, Tallahassee, Florida 32399 -3000.
Under Rule 62- 110.106(4), F.A.C., a person whose substantial interests are affected by
the Department's action may also request an extension of time to file a petition for an
administrative hearing. The Department may, for good cause shown, grant the request
for an extension of time. Requests for extension of time must be filed with the Office of
General Counsel of the Department at 3900 Commonwealth Boulevard, Mail Station 35,
Tallahassee, Florida 32399 -3000, before the applicable deadline. A timely request for
extension of time shall toll the running of the time period for filing a petition until the
request is acted upon. If a request is filed late, the Department may still grant it upon a
motion by the requesting party showing that the failure to file a request for an extension
of time before the deadline was the result of excusable neglect
If a timely and sufficient petition for an administrative hearing is filed, other persons
whose substantial interests will be affected by the outcome of the administrative
process have the right to petition to intervene in the proceeding. Intervention will be
Packet Page -510-
9/23/2014 12. B..
Dan A. Hughes Company, L.P.
FDEP Drilling Permit No. 1349H
Page 5 of 7
permitted only at the discretion of the presiding officer upon the filing of a motion in
compliance with Rule 28- 106.205, F.A.C.
In accordance with Rule 62- 110.106(3), F.A.C., petitions for an administrative hearing by
the applicant must be filed within 21 days of receipt of this written notice. Petitions filed
by any persons other than the applicant, and other than those entitled to written notice
under Section 120.60(3), F.S., must be filed within 21 days of publication of the notice or
within 21 days of receipt of the written notice, whichever occurs first. Under Section
120.60(3), F.S., however, any person who has asked the Department for notice of agency
action may file a petition within 21 days of receipt of such notice, regardless of the date
of publication.
The petitioner shall mail a copy of the petition to the applicant at the address indicated
above at the time of filing. The failure of any person to file a petition for an
administrative hearing within the appropriate time period shall constitute a waiver of
that person's right to request an administrative determination (hearing) under Sections
120.569 and 120.57, F.S.
A petition that disputes the material facts, on which the Department's action is based,
must contain the following information:
(a) The name and address of each agency affected and each agency's file or
identification number, if known;
(b) The name, address, and telephone number of the 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; and an explanation of
how the petitioner's substantial interests are or will be affected by the agency
determination;
(c) A statement of when and how the petitioner received notice of the agency
decision;
(d) A statement of all disputed issues of material fact. If there are none, the petition
must so indicate;
(e) A concise statement of the ultimate facts alleged, including the facts that the
petitioner contends warrant reversal or modification of the agency's proposed action;
(i) A statement of the specific rules or statutes that the petitioner contends require
reversal or modification of the agency's proposed action, including an explanation of
how the alleged facts relate to the specific rules or statutes; and
(g) A statement of the relief sought by the petitioner, stating precisely the action that
the petitioner wishes the agency to take with respect to the agency's proposed action
Packet Page -511-
9/23/2014 123. -
Dan A. Hughes Company, L.P.
FDEP Drilling Permit No. 1349H
Page 6 of 7
Under Sections 120.569(2)(c) and (d), P.S., a petition for administrative hearing must be
dismissed by the agency if the petition does not substantially comply with the above
requirements or is untimely filed.
This permit constitutes an order of the Department. Subject to the provisions of Section
120.68(7)(a), F.S., which may require a remand for an administrative hearing, the
applicant has the right to seek judicial review of the order under Section 120.68, F.S., by
the filing of a notice of appeal under Rule 9.110 of the Florida Rules of Appellate
Procedure with the Clerk of the Department in the Office of General Counsel, 3900
Commonwealth Boulevard, Mail Station 35, 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
from the date when the order is filed with the Clerk of the Department.
The files associated with this order are available for public inspection during normal
business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday, except legal holidays, at
the Department of Environmental Protection, 2051 East Paul Dirac Drive, Tallahassee,
Florida 32310 -3760.
Packet Page -512-
9/23/2014 12.B.
Dan A. Hughes Company, LP.
FDEP Drilling Permit No. 1349H
Page 7 of 7
Executed in Tallahassee, Florida.
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
Danielle Fondren, PWS, Deputy Director
Division of Water Resource Management
Department of Environmental Protection
CERTIFICATE OF SERVICE
The undersigned duly designated deputy clerk hereby certifies that this final order
was mailed before the close of business on D.g_y ►S. 2012, to the above listed persons.
FILING AND ACKNOWLEDGMENT
FILED, on this date, pursuant to Section 120.52(7), F.S,,
with the designated Deputy Department Clerk, receipt of which is hereby
acknowledged.
Degaty Clerk ' a
Prepared by: SS EG.
2-page(s) attached.
Attachment(s):
1. Survey Plat, 2 -3H Collier Hogan, Pickett & Associates, Inc., revision date
November 21, 2012.
2. Form 3, Application for Permit to Drill, dated November 21,201Z
Sealed Original
Drawing on File
COLLIER -HOGAN
Oil Well Permit #1349
COLDER- HOC,AN 20.3H
18 17
1920._._._.._._._
1
00-JH
Legend: T —
IWELL
SURFACE HOLE LOCATION
LA T 267210,102" N
IFEL
LONG. 81'32'27.096* W
N 741361.82
WELL HEADS do PERMIT
E 47 &083.05
NUMBER PROVIDED BY FLORIDA
GROUND ELEVATION
I
NA VD 8620.6'
NGVO 29 :20.8'
2,116 het FSL
J.315 feet
,Fa
Y SECTION 21,
TOWNSHIP I
Y IP 47 SOUTH, RANGE
z
z
2e EAST
o
COLLIER COUNTY, TRORIDA
72021
z
DAIL.LMG UNIT BOUNDAm
6
O
f
19 20
30 29
��
. NORTH
I
SECTION 20,
TOWNSHIP 47 SOUTH, RANGIE 1
!S EAST
COLLIER COUNTY, FLORIDA
DRILLING UNIT BOUNDARY
Q.
fl.--PEWIRATION POINT INTO
RUBBLE
LAT 2622'19.552' N
LONG, 81=122.3w, W
N 741304.56
E 47949104
2,054 feet FSL
2.904 1W FEL
DRILLING UNIT BOUNDARY
IMMOKALEE ROAD
STATE ROAD M
9/23/2014 12.B. •
17 16
20121
Legend: T —
BOTTOM HOLE LOCATION
LAT. 2622'12.RW N
FSL —From South Section Line
IFEL
—From East Section Line
N 740617.99
WELL HEADS do PERMIT
E 48440&74 w
NUMBER PROVIDED BY FLORIDA
® O DEPARTMENT OF
I
ENVIRONMENTAL PROTEC77ON
DISTANCES ARE IN FEET
DRILLINO UNIT BOUNDARY
i t WELL /20 -JFf .
BOTTOM HOLE LOCATION
LAT. 2622'12.RW N
4
LONG. 8191211,507• W
N 740617.99
E 48440&74 w
1,342 test FSL
��• 2,003 feet FK
Y SECTION 21,
TOWNSHIP I
Y IP 47 SOUTH, RANGE
2e EAST
o
COLLIER COUNTY, TRORIDA
72021
DAIL.LMG UNIT BOUNDAm
29 28
SURVEYOR's NOTES:
t. This is a spacltlo purpose survey prepared to Illustrate proposed well laeaj(p�,
4
2. North and the coordinate value, shown hereon are referenced to the Zone of the F1oriya toots
Plane Coordinate System, NAD 81 Vertical values are NAVD BB, the N 29 e(�i rsrr ioitwrte
from NAVO 88 using Corpscon. Units are h U.S Survey het.
J. The east and south lines of Section 20 are booed upon a Held survey of -& ''g _+ "atlon. The
remainder of the Seotlon k hared upon Information obtained from �p8hr County and is Ni Wn for
0 600, I 1200 Information only. THIS IS NOT A BOUNDARY SURVEY.
4. Distances are M U.S. Survey Feet. REIU' q'
(IN FEET W
) 1 kt'Q``R`R`
1 inch - 1200 fL _ 10/T611x y r
k. CLYATT P.SN. - REGISTRATION No. 4092 DATE
GRAPHIC &(MENDED DISPLAY SCALP 17MIT sir ASMAIM - FL. REGISTRATION Na LB 364
SPECIFIC PURPOSE SURVEY , �� pICKE TTY
LOCATED IN SECTIONS 20 & 21,
TOWNSHIP 47 SOUTH, RANGE 28 EAST
PREPARED FOR. DAN A. HUGHES COMPANY, L.P. SURVEYING & PHOTOGRAMME7RY
PROJECT. COLDER —HOGAN I MC KE T & ASSOCIA7M INC,
Project No.: 16925 No. Date Approved
Noriz. Scale; 1' - 1200' OR 11105112 JVC t7r inal Release
DWG. Name: 1 11/21/12 JUC Add DrOing Unit
Drawn By GOA
Field Bk / Pa.: Rn1
Packet Page -S14-
NOT VALID WITHOUT
1WE SIGNATURE AND
THE ORMAL RAISED
SEAL OF A FLORIDA
LICENSED SURVEYOR
AND YAPPER.
3rowina I SD3138
9/23/2014 12.B.,
F' IDA DEPARTMENT OF ENVIRONMENTAL PROTEGE I
APPLICATION FOR PERMIT TO DRILL
FM
rWaetC -2LWk �
.0.=and-2a,Wt
For Information and fees regarding drilling permits for of and gas related wells, refer to Chapter 020-20, Florida Admhlabatlw
Code. Flo this form with the Chief, Florida Geological Survey, 803 Went Tennsse Street, Tallahassee, Florida 32304 -77M
(phone numbers 8501487.2218 and 48&4181; tax 85au4884088).
Den & Hi>!1rjles Cats my, L.P.
crxna.sy. ww..nd �au.ot
208 L Hm stan
Bevil ] e. 7letuea 78102
Phone Number, (461) 358 -5752 Fox Number.
362 -23
wei Name and Number Coller - eaaau 2D-3s / m4.1 Tr n
N-)
Ground Elevation: 2D.6' HAVD88 Aaas Assigned to W el: 428_ Loubids: 2e 22' Longitude: 8? 3212-r'
SHL - NI41361.82 11479083 -05 sm 2D T. 47S RZBE
SHL: 11!74061-7.99 F6t36dd1R -74 Sec. 71 T. je7S__ R n_
Fleld/Ares: WuAmat 8Yem County.
Distance to nearest drilling unit boundary: _ ta2gfft' Pmpoesd Depth:16a900'M (t' .9D3'1VD)
Do you have al of the mineral Interest in the drilling unit under lese or title? Yes (Yes or No) N not, attach lases
map showing ownership of all mineral aasage within the drilling unit end pet the nems and aCdrsasee of all normonesMNp
mineral owners. (See section 3772411 and 247, Florida Sbtutas.)
(Piesse enr wr YES or NO) is the structure intended for the drilling or production of thk wall located (See section 37724, F. S.)
a) Ina municipeW No
b) In tidal waters within 3 mss of a municipality? No
c) on an improved beach? rip
d) on any submerged WW within a by, estuary, or ofthore waters? no
e) within one mile seaward of the coastline of the state? �N
t) within one mile seaward of the bound" of a local, state or federal park or
an aquatic or wldlfa preserve? No
III On to surface of a freshwater lake, river or dram? No
h) within one mile Wend from the shoreline of the Gulf of Marko, the Atlantic Ocean
or any bey or estuary? No
0 within one mile of any freshwater lake, river or stream? No
It the answer to a, b, or c is YES, attach copies of local governing sulhoritieV permits. If the erww er to h or I Is YES, altach a
contingency plan specifying safeguards being Implemamed to prevent acddems andror blowouts and to protect the natural
resources of such bodies of water and snore a sav In the event of an accident or blowout.
The security forthle well Is attwieed (allached or on fib) with the Florida Geological Survey (an Rule 62C-
26.002) and bears Serial Number REBOM778
Company's Statement
State: Tanis
County: BEE
I, J. Henry itrawars .amthe ('2f_ief 9gmtig ,Of£icerMt-j- Prwai'eanr laxid
(FWrr) (TU)
Of Dan A. Sigbas Co gym, L.P. and elteat to of I mutton Contained herein to be true and consul.
Signature:
Date: u.
U OF
,.
'Q V i +n
File Number. Action Date:
4A" --d. ouwa)
Gen noeacv)
w.n«d see
Packet Page -515-
A.P. 1. Number. FDEP
DEC 4 2012
RECEIVED
S'
4%t- RALS 0
M
R�
C
1,
9/23/2014 12.B.
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
PERMITTEE: Permit No: 1349H PA: 315034
Dan A. Hughes Company LP WELL: 20.3H Collier -Hogan
208 E. Houston / Drawer 669 API No: 09-021 -20211
Beeville, TX 78104 SECURITY: Bond No. RLBOM4778
EXPIRATION DATE: August 6, 2018
FINAL ORDER
FIVE YEAR OPERATING PERMIT
FINDINGS OF FACT: Dan A. Hughes Company LP filed an application for a permit to
operate the 20-3H Collier -Hogan with the Department of Environmental Protection on
August 5, 2013.
The surface hole is located 2,114 feet from the south line and 3,314 feet from the east line of
Section 20, Township 47 South, and Range 28 East in Collier County, Florida. This well
has been constructed as a production well having a total vertical depth of 11,903 feet
below ground level. The application was reviewed and deemed consistent with
requirements of Sections 377.241, 377.242, and 377.243, Florida Statutes (FS.), and
implementing Chapters 62C -25 through 62C-30, Florida Administrative Code (F.A.C.).
The well site was inspected in accordance with Rule 62C- 26.008(5), F.A.C.
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. 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.
2. By accepting this permit the applicant agrees to conduct all operations in accordance
with Chapter 377, F.S., and Chapters 62C -25 through 62C -30, F.A.C.
3. Pursuant to Rule 62C- 26.008(2), F.A.C., this operating permit is valid for the life of the
well, but must be recertified every five years. Application for recertification must be
submitted no later than 90 days prior to the end of each 5-year permit term.
4. Pursuant to Rule 62C- 29.006(1), F.A.C., the permittee shall notify the Department's Oil
and Gas Field Office in Ft Myers at phone number 239.344.5721, or 239.344.5611, not
Packet Page -516-
9/23/2014 12.B.
Permit 1349H
Page 2 of 5
less than twenty -four hours prior to starting workover operations, and shall report
emergencies as soon as possible.
5. A spill prevention and dean -up plan (SPCP) designed to prevent spills of crude oil and
associated fluids and to expeditiously remove these fluids from the environment
should a spill occur will be on file with the Department. Pursuant to Rules 62C-
26.008(3)(d) and 28.004(2), F.A.C., the permittee shall keep these plans current and
readily available for use onsite as n2eded in accordance with the plan.
6. Pursuant to Rule 62C- 29.009, F.A.C., the permittee shall obtain Department approval
prior to commencing plugging and abandonment procedures.
7. Any violation of these permit conditions may result in the suspension or revocation of
this permit pursuant to Section 120.60, FS., or may result in penalties pursuant to
Sections 379.407 and 377.37, F.S.
SPECIFIC PERMIT CONDITIONS
1. Pursuant to Rule 62C - 26.008(2), F.A.C., this operating permit shall be valid for the life
of the.well. However, the well and permit must be re- certified every five years. The
5-year operating permit term authorized by this order shall be effective beginning
August 7, 2013, and will expire on August 6,2M8.
RIGHTS OF AFFECTED PARTIES
A person whose substantial interests are affected by the Department's action may
petition for an administrative proceeding (hearing) under Sections 120.569 and 120.57,
F.S. The petition must contain the information set forth below and must be filed
(received by the clerk) in the Office of General Counsel of the Department at 3900
Commonwealth Boulevard, Mail Station 35, Tallahassee, Florida 32399 -3000.
Under Rule 62- 110.106(4), F.A.C., a person whose substantial interests are affected by
the Department's action may also request an extension of time to file a petition for an
administrative hearing. The Department may, for good cause shown,, grant the request
for an extension of time. Requests for extension of time must be filed with the Office of
General Counsel of the Department at 3900 Commonwealth Boulevard, Mail Station 35,
Tallahassee, Florida 32399 -3000, before the applicable deadline. A timely request for
extension of time shall toll the running of the time period for filing a petition until the
request is acted upon. If a request is filed late, the Department may still grant it upon a
motion by the requesting party showing that the failure to file a request for an extension
of time before the deadline was the result of excusable neglect.
If a timely and sufficient petition for an administrative hearing is filed, other persons
whose substantial interests will be affected by the outcome of the administrative
process have the right to petition to intervene in the proceeding. Intervention will be
5VADATA \01L_GAS \FA0'S\Active Draft9\1-iughes \1349H OP FAO
Packet Page -517-
9/23/2014 12.B.
Permit 1349H
Page 3 of 5
permitted only at the discretion of the presiding officer upon the filing of a motion in
compliance with Rule 28- 106205, F.A.C.
In accordance with Rule 62- 110.106(3), F.A.C., petitions for an administrative hearing by
the applicant must be filed within 21 days of receipt of this written notice. Petitions filed
by any persons other than the applicant, and other than those entitled to written notice
under Section 120.60(3), FS., must be filed within 21 days of publication of the notice or
within 21 days of receipt of the written notice, whichever occurs first. Under Section
120.60(3), F.S., however, any person who has asked the Department for notice of agency
action may file a petition within 21 days of receipt of such notice, regardless of the date
of publication.
The petitioner shall mail a copy of the petition to the applicant at the address indicated
above at the time of filing. The failure of any person to file a petition for an
administrative hearing within the appropriate time period shall constitute a waiver of
that person's right to request an administrative determination (hearing) under Sections
120.569 and 120.57, F.S.
A petition that disputes the material facts, on which the Department's action is based,
must contain the following information:
(a) The name and address of each agency affected and each agency's file or
identification number, if known;
(b) The name, address, and telephone number of the 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; and an explanation of
how the petitioner's substantial interests are or will be affected by the agency
determination,
(c) A statement of when and how the petitioner received notice of the agency
decision;
(d) A statement of all disputed issues of material fact. If there are none, the petition
must so indicate;
(e) A concise statement of the ultimate facts alleged, including the facts that the
petitioner contends warrant reversal or modification of the agency's proposed action;
(f) A statement of the specific rules or statutes that the petitioner contends require
reversal or modification of the agency's proposed action, including an explanation of
how the alleged facts relate to the specific rules or statutes; and
(g) A statement of the relief sought by the petitioner, stating precisely the action that
the petitioner wishes the agency to take with respect to the agency's proposed action.
Under Sections 120.569(2)(c) and (d), F.S., a petition for administrative hearing must be
dismissed by the agency if the petition does not substantially comply with the above
requirements or is untimely filed.
11': \DATA \0I1_GA5\FAO'5\Acti%lc Drafts \Hughcs \1349H OP FAO
Packet Page -518-
9/23/2014 12.B.
Permit 1349H
Page 4 of 5
This permit constitutes an order of the Department. Subject to the provisions of Section
120.68(7)(a), F.S., which may require a remand for an administrative hearing, the
applicant has the right to seek judicial review of the order under Section 120.68, F.S., by
the filing of a notice of appeal under Rule 9.110 of the Florida Rules of Appellate
Procedure with the Clerk of the Department in the Office of General Counsel, 3900
Commonwealth Boulevard, Mail Station 35, Tallahassee, Florida 323994M 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 21 days
from the date when the order is filed with the Clerk of the Department.
The files associated with this order are available for public inspection during normal
business hours, 8:00 a.m. to 5:00 p.m., Monday through Friday, except legal holidays, at
the Florida Department of Environmental Protection, 2600 Blair Stone Road,
Tallahassee, Florida 32399.2400.
Executed in Tallahassee, Florida.
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
Ed Garrett, P.G., Oil and Gas Program Administrator
Florida Department of Environmental Protection
2600 Blair Stone Road, MS 3588
Tallahassee, FL 32399 -2400
YJ. \DATA \O1L — GAS\ FAO'S\ Ac Hvv DraNs \Hughos \1149H OP FAO
Packet Page -519-
i
9/23/2014 12.B. i
Permit 1349H
Page 5 of 5
CERTIFICATE OF SERVICE
The undersigned duly designated depu clerk hereby certifies that this final order was
mailed before the close of business on 2013, to the above listed persons.
FILING AND ACKNOWLEDGMENT
FILED, on this date, pursuant to Section 120.520, F.S.,
with the designated Department Clerk, receipt of which is hereby acknowledged.
_Clerk
C�
Prepared by: SS
, sI
Attachment(s):
1. Form 14, Application for Permit to Operate Well, dated August 1, 2013.
W:\ DATA \011. -GAS \FAO'S\Acbve Drafts \Hughes \1349H DPFAO
Packet Page -520-
9/23/2014
FLORIDA DEPARTMENT OF EWIRONMENTAL PROTECTION
APPLICATION FOR PERMIT TO OPERATE WELUREWEST FOR RECERTIFICATION
►qIn 14
cur tnc.aaoot
file 1* tort with the Chlsf, FWWa GWO&W &w"Y,, 803 west Temaseas Strest. Tallahassee, Florida 37104.7700 (➢hors nunbma 85MOT -2219 and
488.4191: fax 850148138088). Allow 90 days for 0mossaing.
pdenm MMW. 1340H API Number; 99021.20211 Cau. OW C016v-
V.* Name end Number. r10111 -20411 F1otd: VlttidrAt
Latl , 2d22'20.102 -N t.OM 8 ?3227.088'" Seelon Calla
N741236.78 1479177.44 2114' Fat. x 3314' FEL S.M. pit Township 47S Ron" teE
Opratoes Name: Den A. Hughes Contparty, L.P.
Malln9 Address: 208 E. HoLoWn/ Drawer 889
BewWe, Texas 78104
Phone Number. 301-366-3752 Fm NUMW.. 381-3584598
Is "a an Appkobw for Pem* to Operate Well or a mQuest for R000rtsoallon7 Operate
(Parr" b Osa SWItooaMeorbn)
Atsch or inciude by mWence the kID Arq items (Rule 82C•2111M}
J. ApWcaborVReoaN600Wfee
2. Revisedcontinued bond or sawrlty coverage. The somAty for NO Wall Is op 'b (atts&ied or an tee) with to Floc d&Go lopleal
Suvey and bars Sertsl Number 16a001a'r' The suety Compory is
3. NwA*wASed spill prevention and dean up plane.
4. Ne Wm%4# d towlins WedkoWns and 4tsWts m p1m.
5. Secondary conWnmrdfoWtyorNoottons ,ItWpmphft.
5. Required reports and don (teportng forts, drEars bgb wait legs, *to.)
List each transporter w#vdxed by prodtmv 10 transport hydtoearbms from ism. Induda tranaporWs address, plops raanber. and to amount by
Dom-ant (%) of each product tnreponed, Dgabe the transportation system used by each irarapOnw. Attach additional eh001t as naassary.
hu"Mucl Transporterr. ew wn8wW m.uooarm aA b0rn%"41 ROW& 121_
Addneae: faatoKnolleA4om.
Alb, tow 76om
Phone Nurnber: r'Wl" n42
Fax Nurnbar.
Authorized T.renspoMr.
Transportation System Description: T-"
Address: Transportation System Description:
Phone H Mmbr;
Fa Number:
% loo
40roofted Transporter. Product *A
Phors Number.
Fox Number.
Transportation System Oww"on: U OF _W
4
V fn
FD• +
AUG 5
Pmducees Statamrx
State: Tunas .� RECEIVED
cowry: see *4
i Je%ry R. Ilaeng am is Opetatioria Managw JZA i.S R
(True)
of Dm A, Huohee CovrprwLP, and atrost �W� �hawre*ln b s ate end wrreot
(Company)
Dote: 9MM3 $19n trs:
Daprtrnertf Aetlon
Action: 8y.
(Aparaed. DaNed) (No'nam")
Data: >Ipractnro
owaldl4rq -
Re,4C ✓q
Packet Page -521-
12.6.
i
9/23/2014 12.B.
Bill
Attached is the application and permit. I gave you a copy of the permit but the application is 12S pages. Let me know If
you want a printed copy of the application and i will re- format it to a 30-40 page document.
Richard
From: Spencer, Steve (mallto:5teye.S Itefl cl
Sent: Thursday, April 18, 2013 2:10 PM
To: OrthRichard
Cc: Garrett, Ed
Subject: FW: Information Request and Notification to be added to the Interested Parties List
Mr. Orth,
I have added you to the interested parties list for reviewing oil well application. In addition I am
attaching to this email the Dan A. Hughes application for the 20-3H Collier -Hogan well (DEP Permit
1349H) that is currently being drilled.
If you have questions, please contact me at the location shown below.
Thanks,
Steve Spencer, P.G.
Florida Department of Environmental Protection
Oil and Gas Program
2051 East Paul Dirac Drive., MS 715
Tallahassee, FL 32310
Plume No. 850.488.82I7, ext. 65
Please take a few minutes to share your comments on the service you received from the department by clicking on this
link. UEP Customer Survey,
From: Garrett, Ed
Sent: Thursday, April 18, 2013 1:52 PM
To: Spencer, Steve
Subject: FW: Information Request and Notification to be added to the Interested Parties Ust
See below...
Sincere /y,
Ed Garrett, PG, CPAf
Oil d bas Section Administrator
Bureau of Mining d 411mmis Regale ►ion 1►
Department of &rWronmenta/ Protection
Z051 East Paul Dirac C"M
Tallahassee, FL 32310
(880) 488 -8Z17, Ext IZ
Direct Line: (850) 413 -8192 Fxt, IZ
Other O/l d bas Ext +ft's: 5teve =65, DoverxZ6, Levi'64, Nathan :Z3
Voice Maly (830) 413 -8192 Ext. 1Z, Fox Me: (850) 488 -1254
2
Exhibit "C"
Collier County's Amended Petition for
Administrative Hearing
Packet Page -523-
- - 9/23/201412.6.'
From: OrthRichard [ mailto :RichardOrth @colliergov.net]
Sent: Thursday, April 18, 2013 1:50 PM
To: Garrett, Ed
Cc: LorenzWilliam; Attwood, Paul
Subject: Information Request and Notification to be added to the Interested Parties List
Dear Mr. Garrett:
This correspondence is in regard to two items related to the exploration and production of oil in Collier County. I would
like to formally request the following two items:
• An electronic copy of the Dan Hughes application, supporting documents and permit, the oil well was recently
permitted and is currently under construction just northeast of Immokalee Road and Everglades Boulevard In
Collier County Florida.
• 1 would like to formally request that I be placed on the Department's Oil and Gas Interested Parties List for all Oil
and Gas activities within Collier County.
The e-mail address to send me the requested information is Richa rdOrth(MColl ierGov. Net . If you have any questions
please contact me at any of the links below.
Sincerely,
Richard Orth
Richard Orth, P.G., Sr. Project Manager
Collier County Pollution Control & Prevention Department
2800 N. Horseshoe Drive, Naples, FL 34104
Office 239 - 252 -5092, Cellul039469+4 0 ,441
Richa rdO rth *Collie rGov. 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.
Packet Pape -524-
9/23/2014 12. B.
BEFORE THE STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
COLLIER COUNTY and COLLIER IN THE DIVISION OF
COUNTY WATER -SEWER DISTRICT, `MATER RESOURCE
MANAGEMENT
Petitioners,
OGC File No.: 14 -0012
V.
FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, and DAN A. HUGHES COMPANY,
L.P.,
Respondents.
Exhi*biot
COLLIER COLTNTY S AMENDED
PETITION FOR ADMINISTRATIVE
HEARING
Packet Page -52S-
9/23/2014 12.B.
�LILL]�X' .frjt
Board of Collier County Commissioners
Donna Fiala Georgia A. Hiller, Esq. . Tom Henning Fred W. Coyle Tim Nance
District h District 2 District 3 District 4 District 6
State of Florida Department of Environmental Protection
Oil and Gas Program of the Florida Department of Environmental Protection
2600 Blair Stone Road /MS 715
Tallahassee, FL 32399 -2400
Attn: Ed Garrett
Secretary of DEP
Mr. Garrett,
Re: Collier County Comments- Permit Application No. 1353H (Collier 22 -3H) and Related Permit Application No.
1354 (Collier 22 -5 SWDW)
Collier County understands that on May 2, 2013, the Oil and Gas Program of the Florida Department of
Environmental Protection received a drilling application from the Dan A. Hughes Company, LP., to drill an oil
production well (Permit 1353H; Collier 22 -3H) in Collier County, Florida. The surface -hole location is In Section 22,
Township 49 South, and Range 28 East and the bottom hole will be In Section 27, Township 49 South, and Range
28 East. This well Is proposed to be drilled to a vertical depth of 12,064 feet below land surface and have a
horizontal section that extends to a proposed total (26,600 feet measured depth).
Please recognize that the location of the proposed production well is within 1,000 feet of the Golden Gate Estates
Subdivision. The residents receive their water from on -site wells and typically draw water from the Surficial Aquifer
system. Collier County requests that your agencies carefully and judiciously review the comments and concerns of
Collier County property owners and affected citizens regarding the permitting and operation of Oil Exploration and
Oil Well Extraction operations In the vicinity of these residential properties.
Collier County further requests that your agencies establish direct communication protocols with Collier County
regarding safety and environmental monitoring, emergency response, and all public health and safety Issues that
arise, should permits for drilling and extraction be Issued in Collier County. More specifically we request that your
agency coordinate and communicate with Collier County on the approval of the permits and provide the County
with your responses to citizens concerns and final permit conditions, If any,
Respe II ,
Cha)rwoman Don Fiala
Georgia Hiller, Esq Commissioner District 1
Commissioner District 2
��elveo
Fvs?
0 Z603
BMA"
Vice Chair
Tom Henning
Commissioner District 3
r-O ve
�'t�FDEP o'
� ,NN 28 ?Ai3
Q��ohtas5��
3298 Tamiaeol Trall East Sub 303 • Naples, Florida 34112.6746.239.252.8097 - FAX 239-252 -3602 Exhibit "D"
Collier County's Amended Petition for Administrative Hearing
Packet Page -526-
9/23/2014 12.B.
Fred Coyle Nance
Commissioner District 4 Commissioner District 5
CC., Leo E. Ochs, County Manager
Steve Spencer, P.G.
Florida Department of Environmental Protection
_
Oil and Gas Program .
2051 East Paul Dimc Drive, MS 715
Tallahassee, FL 32310
•`.1 4z
V �(i
,
Gt
�
o� �ry�
Packet Page -527-
9/23/2014 12.B.
BEFORE THE STATE OF FLORIDA;
DEPARTMENT OF ENVIRONMENTAL PROTECTION
COLLIER COUNTY and COLLIER IN THE DIVISION OF
COUNTY WATER -SEWER DISTRICT, WATER RESOURCE
MANAGEMENT
Petitioners,
OGC File No.. 14- 0012
V.
FLORIDA DEPARTMENT OF ENVIRONMENTAL
PROTECTION, and DAN A. HUGHES COMPANY,
LP.,
Respondents.
Exhib'it
3
COLLIER COUNTY'S AMENDED
PETITION FOR ADMINISTRATIVE
'HEARING
Packet Page -528-
9/23/2014 12.B.
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
In re:
Dan A Hughes Company LP
Permit No. 1340H
Wd: 20-3H Colllw4 gan
Pursuant to Section 403.081(8), Florida Siahrbsa, ihs Departmant of
Environmental Protection (`Department") Is enberinp this Final Order requiring the Dan
A. Hughes Company LP Immediately owes and desist from any further operafto at
the 2D-3H Collier -Hogan well as proposed In Bs Wet Proposal, proposal No:
1001164798, dated December 23, 2013. Tits Dsperbtmnt entM this Final Order in
mambo of Its power and duty to issue orders that we necessary to p ulactihe ewe
waters from water pollution and states as follows;
1. On December 23, 2013, Dan A. Hughes Company LP, through counsel,
emalled the Department a workover rrotitiastion concembV ifs operation permit forthe
20.31-1 CoAler -Hogan well Dndkaft that it hbended to conduct a woricovar operation.
The nodtiootion provided seven Pages of Information on the workover proposal,
2. The December 23, 2013, emati Indhcated that the proposed workmmr
operation would commence on December 29, 2D13. The proposed workover operation
was initiated on December 30, 2013, and Is conanuk p to dais deaplie oral noWi abon
by the Department thanes Proposed wort 0W openadon was mat approved.
Exhibit "E"
Collier County's Amended Petition for Administrative Hearing
Packet Page -529-
9/23/2014 12. B.
3. After reviewing the docxmm is attached to the December 23, 2013 emall,
the Department is not satisfied that it has sufficient Information that the proposed
workover would be protective of the State's groundwater resourcea, and it is therefore
ORDERED that Dan A. Hughes Company, LP CEASE AND DESIST all operetions
proposed in the December 23, 2013, workover noWbcation concerning the 2"H Collier.
Hogan well.
Any party to this Final Order has the right to seek judicial review of the Final
Order under Section 120.58, Florida Statutes, by filing a Notice of Appeal under Rules
8.110 and 9.180, Florida Rules of Appellate Procedure, wish the Clerk of the
Department of Environmental Protection, Of be 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 iced within 30 days after this
notice Is fled with the clerk of the Department.
Executed in Leon County, Florida on December 31, 2013,
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTI01
Secretary ,
F�
Packet Page -530 --
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, HoppkV Green & Sam PA, P.O. Box 6526,
Tallahassee, Florida 323146526, Attomeys for pan A. Hughes Company, LP. at
!1' 1L' �l' • i✓ �LII 111 ��♦ 1:,'77; 1. S•a[1 •1 '[,:- 1 .,�_.•r. _ i[
FILED ON THIS DATE PURSUANT To f 120.x,
FLORIDA STATUTES. IMTH THE DESMATED
DEPARTMENT CLERK RECEIPT OF WHICH 18
HEREBY ACKNOWLEDGED.
VA
�r
3
Packet Page -531-
9/23/2014 12.6
EXHIBIT 3
Packet Page -532-
<4SO>
For Amy Company
Anywhae,USA
Sample± RYZ Wall
Type: Wall Wager
Fatmation: WA
Depth (Ft): WA
FICSIAM
1190 n2C0 Ave. - Alice, TX 711332
Field WA
County: NIA
REPORT OF WATER ANALYSIS
Duo: 114=11
rune 02:00
April 26, 2011
9/23/2014 12.6.
�w.
• +•••••••••••••• Dissolved Solids: ••••••••••••••• ••••r•••• *••••• Other Properties •••••••••••••••
Chloride (Cl)
mill
mpglL
Sulfate (504)
Sodium(Na)
11563.70
50299
pH 690
Calcium (Cs)
279.69
1396
Spedfic Gravity ® 6w OF 1.020
Magnesium (MS)
44:08
3:62
Resistivity (an-MOM ® 77.0'F) -- 0227
Barium (DO)
196
0.03
30105
Potassium (K)
7322
127
Iron (Fe)
0.13
—
Ca
Chloride (Cl)
17640,00
49760
Sulfate (504)
95,00
196
Carboeate (CO3)
0.10
0,00
Biearbonste(HC:03)
407.OD
6647
Hydroxide (OH)
0.00
0,00
Sulfide ons)
on
Total Solids
30105
1m OD so 116
TOW Alkalinity (Co=)
333
Total Hardness (CaCO3)
980
Job Number. 99999 . 9999
Certified: FFSCO, Ltd. - Alice, Taus
David Dambaus 361- 661 -7015
Packet Page -533- — 00101010101010101010"
Sttardwdae, Per Lher
Can
How
WR
a... �.... _.... ..
sirr
1m OD so 116
20 0 20 W W eo 1ao
12D
~
Le*ssefi Per Lifer •
Ca
- - ..:. ::. ....
• • • .� ... ... ............... .. . .: :: neon
5 4 3 2
1 0 1 2 3 4 5
s
Job Number. 99999 . 9999
Certified: FFSCO, Ltd. - Alice, Taus
David Dambaus 361- 661 -7015
Packet Page -533- — 00101010101010101010"
Filing 4 17383669 Electronically Filed 08/21/2014 04:39:11 PM 9/23/2014 12.B.
IN THE CIRCUIT COURT OF THE TWENTIETH JUDICIAL CIRCUIT
IN AND FOR COLLIER COUNTY, FLORIDA
STATE OF FLORIDA, DEPARTMENT
OF ENVIRONMENTAL PROTECTION,
Plaintiff,
V.
Case No.: 11- 2041 -CA- 001643- 0001 -XX
DAN A. HUGHES COMPANY, L.P.
Defendant.
PETITION FOR ENFORCEMENT AND AMENDED COMPLAINT
Plaintiff, State of Florida, Department of Environmental Protection ( "Department "), by
and through its undersigned attorney, files this Petition for Enforcement and Amended
Complaint against Dan A. Hughes Company, L.P. ( "Defendant "), and alleges as follows:
1. This is an action for enforcement of a consent order pursuant to section 120.69,
Florida Statutes, and a civil complaint for injunctive relief and penalties, which exceed
$100,000.00, exclusive of interest, costs, and attorney's fees, pursuant to sections 403.121,
403.131, 403.141, and 403.161, Florida Statutes.
2. This Court has jurisdiction over this action pursuant to Article V, Section 5 of the
Constitution of the State of Florida, and sections 26.012, 120.69(1), 377.34, 377.37, 403.121,
403.131, 403.141, and 403.161, Florida Statutes.
3. Venue properly lies in this Circuit because the subject matter of this action is
located in Collier County, Florida, and because the events giving rise to this action took place in
Collier County, Florida.
Packet Page -534 -
Filed with Collier County Clerk of Courts
9/23/2014 12.B.
4. The Department is the administrative agency of the State of Florida created by
section 20.255, Florida Statutes, charged with the power and duty to enforce chapters 377 and
403, Florida Statutes, and rules promulgated thereunder in Title 62 of Florida Administrative
Code.
5. Defendant is a person within the meaning of sections 403.031(5), 403.161, and
377.19(20) Florida Statutes.
6. The Defendant obtained an Oil & Gas Well Drilling Permit from the Department
in December of 2012 (Permit No: 1349H, 20 -30H Collier -Hogan Well) to construct a well to be
located at the Hogan Island Farm in Collier County, Florida.
7. Upon completion of the construction of the 20 -3H Collier -Hogan Well ( "Well "),
located at the Hogan Island Farm in Collier County, Florida ( "Site "), the Defendant obtained a
Five Year Operation Permit in August of 2013 'to operate the Well as an oil production well.
8. On December 23, 2013, the Defendant submitted to the Department a Workover
Notification indicating that it intended to conduct a workover operation at the Well that included
an enhanced acid stimulation procedure not previously encountered by the Department.
9. Despite oral notification from the Department that the Defendant was not
approved to conduct the workover operation, Defendant conducted the procedure described in its
Workover Notification from December 30, 2013 through January 1, 2014.
10. On December 31, 2013 the Department entered a final order requiring operations
at the Well to cease and desist and served a copy of the final order on the Defendant on
December 31, 2013. The Defendant thereafter made a decision to ignore the Department's cease
and desist order and continue the workover operation at the Well until the workover operation
was completed on January 1, 2014.
Packet Page -535-
9/23/2014 12.B.
11. On April 8, 2014, the Department and the Defendant entered into a Consent Order
that addressed the Defendant's failure to comply with the Department's cease and desist order
entered on December 31, 2013. A copy of the executed Consent Order is attached hereto as
Exhibit 1.
12. The Department now alleges that the Defendant has failed to comply with certain
requirements set forth in the Consent Order and alleges additional violations as follows.
herein.
COUNT I
PETITION FOR ENFORCEMENT OF CONSENT ORDER
13. The allegations contained in paragraphs 1 -11 are re- alleged and incorporated
14. Paragraph 15 of the Consent Order required the Defendant to submit an Interim
Spill Prevention and Cleanup Plan ( "ISPC ") to the Department within 14 days of the effective
date of the Consent Order. Defendant submitted an inadequate ISPC to the Department on April
22, 2014. On May 6, 2014 the Department requested that the Defendant provide additional
information on the ISPC. The Defendant and the Department met on May 14, 2014 to discuss
the inadequacies of the ISPC, and the Department informed the Defendant at that meeting that it
had 14 days from the date of the meeting to submit an amended ISPC. The Defendant failed to
submit an amended ISPC as required by paragraph 15 of the Consent Order until June 26, 2014.
15. Paragraph 16 of the Consent Order required the Defendant, at its sole expense, to
retain independent third -party experts with the appropriate qualifications to assess the likelihood
that the workover operation would cause or contribute to a violation of any applicable
groundwater quality standards, which is a critical component of Consent Order compliance. The
Packet Page -536-
9/23/2014 12.B.
Defendant was also required to make a good faith effort to reach agreement with the Department
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 the Consent Order, (i.e. June 9, 2014). The Department
met with the Defendant on April 30, 2014 to discuss the selection of third -party experts. At that
meeting, the Defendant proposed hiring a contractor that had previously been hired to do work
for the Defendant, which the Department found to be a conflict of interest. The Department
informed the Defendant at that meeting that proposing a contractor that had a previous business
relationship with the Defendant was not acceptable and was not consistent with the requirement
in paragraph 16 of the Consent Order which required the Defendant to retain independent third -
party experts.
16. The Department and the Defendant met again on May 14, 2014 in an attempt to
reach agreement on the independent third -party experts to be retained by the Defendant. At that
meeting, the Defendant again proposed the same contractor that the Department previously
rejected at the meeting on April 30, 2014. Since the meeting on May 14, 2014, the Defendant
has failed to propose any additional experts it would be willing to retain to conduct the
assessment of the workover operations. The Defendant has failed to make a good faith effort to
reach agreement with the Department on the selection of the third -party experts within 60 days
of the effective date of the Consent Order, (i.e. June 9, 2014) as required by paragraph 16 of the
Consent Order.
17. Paragraph 19 of the Consent Order required the Defendant to submit a
groundwater monitoring plan to the Department within 30 days of the effective date of the
Consent Order. A key element of the groundwater monitoring plan required the Defendant to
conduct a one -time analytical sampling of the flowback material prior to its final disposal.
Packet Page -537-
9/23/2014 12.B.
Without notice to the Department, the Defendant disposed of the flowback material that had been
generated at the time of the workover operation without conducting an analytic sampling, in
violation of paragraph 19 of the Consent Order. Defendant failed to submit the sampling results,
a required component of the groundwater monitoring plan, within the time required by the
Consent Order. In addition, by disposing of the flowback material generated in the time period,
Defendant rendered it impossible to achieve the purpose and intent of the Consent Order.
18. Under paragraph 22 of the Consent Order, the Defendant agreed to act in good
faith and to cooperate fully with the Department in carrying out the intent of this Consent Order.
In the conduct described in this Count, the Defendant has violated that paragraph by failing to act
in good faith and to cooperate fully with the Department.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Issue a mandatory injunction requiring the Defendant to permanently plug and
abandon the Well and otherwise remediate the site, and thereafter cease all operations involving
the Well pursuant to section 120.69(2), Florida Statutes.
B. Issue a mandatory injunction authorizing the Department to select independent
third -party experts to conduct an assessment of the likelihood that the workover operation
conducted by the Defendant at the Site caused or contributed to a violation of any applicable
water quality standards at the sole expense of the Defendant pursuant to section 120.69(2),
Florida Statutes.
C. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant was late in submitting an amended ISPC to the Department pursuant to section
120.69(2), Florida Statutes.
Packet Page -538-
9/23/2014 12.B.
D. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant has failed to retain an expert agreed to by the Department to conduct the assessment
of the likelihood that the workover operation conducted by the Defendant at the Site will cause
or contribute to a violation of any applicable water quality standards.
E. Impose civil penalties in the amount of $10,000 for the Defendant's disposal of
the flowback material without conducting an analytical sampling pursuant to section 120.69(2),
Florida Statutes.
F. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 120.69(7) and 403.141, Florida Statutes.
G. Award the Department its attorney's fees pursuant to section 120.69(7), Florida
Statutes.
herein.
COUNT H
FAILURE TO PROVIDE RECORDS
19: The allegations contained in paragraphs 1 -7 are re- alleged and incorporated
20. During the workover operation that the Defendant conducted between December
30, 2013 and January 1, 2014, the Defendant injected a number of chemicals down the Well.
The enhanced acid stimulation process used in the workover operation generated flowback
material that contained water and the chemicals used in the acid stimulation process. This
flowback material was produced from the Well over the period since the procedure occurred.
21. The Defendant stored flowback material generated by the enhanced acid
stimulation process in storage tanks at the Site.
Packet Page -539-
9/23/2014 12.B.
22. On three different occasions while at the Site, on April 16'', April 23'd and May
5a', 2014 the Department specifically asked the Defendant or its contractor to provide the
manifests for the material that the Defendant had generated from the construction and operation
of the Well and was transporting off the Site. It was of critical importance to the Department
that it have information about what was being transported for disposal, and how much volume
was being transported to be able to determine what was happening with the flowback material
that the Defendant was obligated to sample and analyze before final disposal.
23. The Defendant refused to provide the records requested by the Department on all
three occasions in violation of section 62C- 25.001(3), Florida Administrative Code.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Issue a mandatory injunction requiring the Defendant to permanently plug and
abandon the Well and otherwise remediate the site, and thereafter cease all operations involving
the Well pursuant to sections 403.141 and 377.34, Florida Statutes.
B. Issue a mandatory injunction requiring the Defendant to produce all records
requested by the Department concerning the operation of the Well pursuant to sections 403.141
and 377.34, Florida Statutes.
C. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant failed to produce the records requested by the Department pursuant to sections
403.161 and 377.37, Florida Statutes.
D. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 377.37 and 403.141, Florida Statutes.
Packet Page -540-
herein.
9/23/2014 12.B.
COUNT III
FAILURE TO POST REQUIRED SIGNAGE
24, The allegations contained in paragraphs 1 -7 are re- alleged and incorporated
25. Every person drilling or operating an oil or gas well shall keep posted in a
conspicuous place near the Well a sign legible from 100 feet and displaying the name of the
operator, fee owner, well number, Department permit number, county name, section, township,
and range.
26. Every person drilling or operating an oil or gas well must have a sign posted in a
prominent place on site that provides diagrams of the gas detection and fire fighting systems
together with schedules and procedures for testing safety equipment.
27. The Department conducted an inspection of the Site on July 14, 2014 and
determined that the Defendant has failed to post the required sign at the Site in violation of
section 62C- 27.001(1), Florida Administrative Code.
28. At the same inspection of the Site on July 14, 2014 the Department determined
that the Defendant has failed to post the required safety sign in violation of section 62C-
28.004(8), Florida Administrative Code.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Issue a mandatory injunction requiring the Defendant to post the signs required by
sections 62C- 25.001(1) and 62C- 28.004(8), Florida Administrative Code pursuant to section
377.34, Florida Statutes.
Packet Page -541-
9/23/2014 12.B.
B. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant failed to have signs posted at the Site as required by section 62C- 25.001(1) and 62C-
28.004(8), Florida Administrative Code pursuant to sections 377.37 and 403.161, Florida
Statutes.
C. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 377.37 and 403.141, Florida Statutes.
C IN-OV M
MAINTAINING A STATIONARY INSTALLATION WITHOUT A PERMIT
29. The allegations in paragraphs 1 -5 are re- alleged and incorporated herein.
30. On July 14, 2014 the Department conducted an inspection of the Site. During the
inspection, a roll off dumpster was observed staged between a canal, and a dirt road adjacent to
and south of the berm area around the well pad. The dumpster was nearly full with the load
consisting of 4" hoses, buckets, pieces of liner and other items, much of which were covered
with oil.
31. On the grass adjacent to the north side of the dumpster were observed several
oiled areas. There was also watery fluid dripping to the ground from the east side of the
dumpster. The water was dripping into a large frying pan -sized basin. The soil in the basin was
stained a dark red color. At the time of the observation the basin was nearly full, but was not
discharging. It was evident from erosion patterns that there had been flow from the dumpster
discharge area several feet east and then south several feet to an open water canal, waters of the
state. Areas of multicolored iridescent sheen were observed on the open soil surface in this
eroded area between the dumpster and the canal.
Packet Page -542-
9/23/2014 12.B.
32. The following morning, the Department returned to complete the inspection and
to conduct a sampling of the discharge area from the dumpster. The dumpster had been removed
from the site. The area of erosion between the dumpster and the open canal, although still
discernable, had been impacted by heavy equipment movement. Soil and water quality samples
were taken from the dumpster discharge flow area and the canal. At the time of the sampling,
sheen and suspected oil or petroleum by- products were observed on and within the canal.
33. The analyses of the surface water samples taken from the canal on the Site on July
15, 2014 indicate that the freshwater surface water cleanup target level in section 62 -777, Florida
Administrative Code for TRPH was exceeded by the releases of petroleum from the oil well
operations at the Site. The analyses of the samples taken from the canal at the Site found TRPH
at 9 mg/l.
34. The Defendant's dumpster is part of the Defendant's oil well operation at the Site,
and the Defendant's oil well operation is an installation pursuant to section 403.031(4), Florida
Statutes.
35. The Defendant was maintaining a stationary installation without a Department
permit in violation of section 403.087(1), Florida Statutes.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Issue a mandatory injunction requiring the Defendant to conduct a contamination
assessment at the Site pursuant to chapter 62 -780, Florida Administrative Code.
B. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant maintained a stationary installation at the Site without a Department permit pursuant
to section 403.161, Florida Statutes.
Packet Page -543-
9/23/2014 12.B.
C. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 377.37 and 403.141, Florida Statutes.
herein.
COUNT V
VIOLATIONS OF SURFACE WATER QUALITY CRITERIA
36. The allegations in paragraphs 1 -5 and 29 -31 are re- alleged and incorporated
37. The Department entered the Site on July 15, 2014 to complete an inspection of the
petroleum releases at the Site and to conduct sampling of the canal near a dumpster the
Defendant had been using to dispose of waste from its oil well operations.
38. On July 15, 2014 surface water samples were taken from the canal near where the
dumpster the Defendant had been using to dispose of waste from its oil well operations at the
Site had been located.
39. The analyses of the surface water samples from the canal indicate that the
petroleum releases that entered the canal at the Site exceeded the surface water quality criteria
for total PAHs in violation of section 62- 302.530, Florida Administrative Code. The total PAH
parameter acenaphthene was found in one of the surface water samples at .32 ug/L and in
another surface water sample at .13 ug/L. The total PAH parameter phenanthrene was found in
one of the surface water samples at 1.9 ug/L and in another surface water sample at 1.7 ug/L.
The annual average for the total PAH parameters acenaphthene and phenanthrene exceeded the
allowable annual average of .031 ug/L for total PAHs.
40. The analyses of the surface water samples from the canal indicate that the
petroleum releases that entered the canal at the Site exceeded the surface water quality criteria
Packet Page -544-
9/23/2014 12.B.
for oils and greases in violation of section 62- 302.530, Florida Administrative Code. The TRPH
sample result of 9mg/L exceeded the oils and greases surface water quality criteria of 5 mg/L.
41. The canal where the surface water samples were taken is a Class III surface water
body of the state within the meaning of 62- 302.530.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Issue a mandatory injunction requiring the Defendant to conduct a contamination
assessment and implement a remedial action plan at the Site pursuant to chapter 62 -780, Florida
Administrative Code.
B. Impose civil penalties in the amount of $10,000 per day for each day that the
water quality criteria was exceeded in violation of section 62- 302.530, Florida Administrative
Code.
C. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 377.37 and 403.141, Florida Statutes.
COUNT VI
FAILURE TO REPORT SPILLS
42. The allegations in paragraphs 1 -5 are re- alleged and incorporated herein.
43. On July 14'h and 15th of 2014 the Department conducted inspections at the Site.
During those inspections the Department observed spills of crude petroleum or associated fluid
from the Defendant's oil well operations at the Site.
44. The spills resulted from the disposal of waste materials that included materials
with crude petroleum or associated fluid from the Defendant's oil well operations in an
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9/23/2014 12.B.
uncovered dumpster at the Site. During rain events, the crude petroleum or associated fluid on
the waste materials in the dumpster were spilled onto the ground and washed into a canal at the
Site.
45. The Defendant failed to report to the Department any spills of crude petroleum or
associated fluid from the dumpster that occurred on at least July 141' and 15'' of 2014 in
violation of section 62C- 28.005, Florida Administrative Code.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant failed to report spills of crude petroleum or associated fluids from its oil well
operations at the Site pursuant to section 403.161, Florida Statutes.
B. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 377.37 and 403.141, Florida Statutes.
COUNT VII
FAILURE TO MAINTAIN EQUIPMENT TO PREVENT POLLUTION
46. The allegations in paragraphs 1 -5 are re- alleged and incorporated herein.
47. On July 14a' and 15a' of 2014 the Department conducted inspections at the Site.
During those inspections the Department observed spills of crude petroleum or associated fluid
from the Defendant's oil well operations at the Site.
48. The spills resulted from the disposal of waste materials that included materials
with crude petroleum or associated fluid from the Defendant's oil well operations in an
uncovered dumpster at the Site. The Defendant had located the dumpster on bare ground within
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9/23/2014 12. B.
a short distance from a canal at the Site. During rain events, the crude petroleum or associated
fluid on the waste materials in the dumpster were spilled onto the ground and washed into a
canal at the Site.
49. The Defendant failed to maintain the dumpster within the pad and berm area on
the Site resulting in spills of crude petroleum or associated fluids to the ground and nearby canal
in violation of section 62C- 28.004(3), Florida Administrative Code.
PRAYER FOR RELIEF
WHEREFORE, the Department respectfully requests that this Court:
A. Impose civil penalties in the amount of $10,000 per day for each day that the
Defendant failed to maintain the dumpster at the Site in a manner necessary to prevent pollution
pursuant to section 403.161, Florida Statutes.
B. Award the Department its investigative costs and expenses in maintaining this
action pursuant to sections 377.37 and 403.141, Florida Statutes.
Dated this 21' day of August, 2014.
MATTHEW Z. LEOPOLD
Gen al Counsel
M` RGAN
Senior Deputy General Counsel
State of Florida Department of
Environmental Protection
3900 Commonwealth Blvd., MS # 35
Tallahassee, FL 32399 -3000
Telephone: (850) 245 -2246
Facsimile: (850) 245 -2301
Florida Bar No.: 0220205
l4MLmorgana,dep state fl us
mary.wilson(a,den. state. fl.us
DEP.enforcementaa dep.state.fl.us
Packet Page -547-
9/23/2014 12.B.
CERTIFICATE OF SERVICE
1 CERTIFY that a true and correct copy of the foregoing was served by electronic mail on
this 21' day of August, 2014 to:
Frank E. Matthews
Winston K. Borkowski
Timothy M. Riley
H. French Brown, IV
HOPPING GREEN & SAMS, P.A.
119 South Monroe St., Suite 300
Tallahassee, FL 32301
frankrg ahgslaw.com
winstonb(a-),hgslaw. com
timothyl(d),hgslaw.com
frenchbna,hgslaw.com
Packet Page -548-
BEFORE THE STATE OF FLORIDA
DEPARTMENT OF ENv1RoNMENTAL PROTECTION
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
vs.
DAN A. HUGHES COMPANY, L.P.
9/23/2014 12. B.
IN THE DIVISION OF
WATER RESOURCE MANAGEMENT
OGC FILE NO. 14 -0012
CONSENT ORDER
This Consent Order ("Order') is entered into between the State of Florida Daparhnevt 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
prvvisi9m of Onp = 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 "pet' son" within the meaning of section 403.161 and
403.03 1(5), F.S.
3. The Company obtained an Oil & Gas Well Drilling Permit fi om the Department
in December of 2012 (Permit No: 1349H, Collier -Hogan 20-3H Well) to construct a well to be
located at the Hogan inland Farm in Collier County, Florida.
4. Upon completion of the construction of the 2D-3H Collier -Hogan Well ("Well'),
the Company obtained a Five Year Operation Permit in August of 2013 to operate the Well as an
OB production, well.
EXHIBIT 1
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9/23/2014 12.B.
S. 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
Exhrbit 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 Wodwver Operation until at least December 30 to allow the
Department more time to review and respond to the notice.
b. 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 t3r+der 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 Bxhibit 2.
8. The Company continued the Wotkwvar 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 prombires required to conduct the Workover Operations
described in Exbibit 1.
Having reached resolution of the matter, the Department and the Company mutually
agree and it is,
10. Within 10 days of the . active date of this Order, the Company shall pay the
Department 525,000 in settlement of the regulatory matters addressed in this Order. This amount
includes $20,000 far 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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9/23/2014 12.B.
WELL SAFETY
11. Immediately upon execution of this Order or upon becoming available to the
Company (whichever is Inter), the Company shall provide to the Department the informadon 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 Exin'bit 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 vohnne of water used in the Wodcover.
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 ft&w cation concerning the flowback
material management for the Well operations: (a) estimate of the total volume of fiowback
ill; (b) storage meaty 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 fire flowback material resulting from the Workover Opor Wn, 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 WeL The ISPC Plan shall be submitted to the Department
within fourteen (14) days of the effective date of this Comsent Order. If the Depmfinent requests
additional information or notifies the Company that the ISPC Plan is inadequate or otherwise
tmacceptable, the Company shall provide the additional information or submit a revised ISPC
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9/23/2014 12.B.
Plan within the time frame, not less than fourteen (14) days, specified by the Department in the
request or notification. Implementation of the Depastraent approved ISPC Plan constitutes
satisfaction of this requirement.
ANALYSIS AND MANAGEMENT
16. 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 lticely to cause or
comtnbute to any violation of any applicable groundwater quality standard. The Company, at its
sole expense, shall retain independent dard-party experts with the appn*riate qualifications to
assess the likelihood that the Workover Operation will cumse or co ftftte 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 geologieal fomnations or the
Well casing into surrounding groundwater bearing zones with total dissolved solids
concentrations of 10,000 ppm or Ion. The Department and the Company shall make a good faith
effort to reach mutual agreement an the selection of the tbird Party experts and the "Scope of
Work" to be pefformed by the experts within 50 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 exlwU shall prepare a Report and submit the Report ti) 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 mffoamation to evaluate the likelihood
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9/23/2014 12.B.
that Workovw 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 Depart rant shall notify the Company and the
Report author of any apparent errors or omissions and request any additional information neaded
to evaluate the likelihood groundwater standard violations would result from similar Workover
Opeabons. The Company shall provide the additional information reasonably requested by the
Department within 30 days of receipt of the Department's request. Mat any time before the
• study is accepted by the Department anyone files a Wodww notice for a Workover operation
similar to the Workover Operation desscrbed in Exhibit 1, the Department will respond to such
notice with a request for inf oration similar to the Scope of Work for the Report.
19. , No fudme Wor1mver 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 Compoaay shsll submit a
groundwater monitoring plan ("Plan') to the Department. The obja ve of the Plan is to provide
• information regarding the likelihood that the Workover operation will cause or contribute to an y
violation of any groundwater standard in the nearby groundwater aquifer used as public and
private water supply. The Plan shall be developed and implamented 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 idendflcd in Exhibit 3, the ono -time
analytical sampling of the flowback matcridl shall be conducted using the following analytical
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9/23/2014 12.B.
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 Massadwsetts 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 ahsllow
monitoring wells, placed at the NW, NE, SW, SE corners of the pad. The wells shall be
designed to test the fall column of the potable water zone; (c) installation of out 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 far
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; (t) as inventory of fiUbwater 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 DeparW=d that the Plan is
acceptable, the Company shall begin implementing the Plan.
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9/23/2014 12.B.
SETTLEMENT OF ALL DISPUTES
21. The terms of this Consent Order, upon execution, shall supersede the
requirements of &e Final Order Requiring Operations at Wall 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. 1349K 20 -30H Collier -Hogan Well. 'The Department acid
the Company agree to act in good faith and to cooperate fully with each other in carrying out the
intent of tiers Consent Order, and 811 matters related thereto, and for that purpose agree to execute
any additional dominients 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
regrur mts of this Order is considered a trade secret or is otherwise confidential information in
acooidanoe with Chapter 377 or Section 403. 111, F.S., the Company shall request upon submittal
of the i ftmiatian that the Department keep such information coeulm W. The D"Mnmu 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 Section 120.569 and 120.57, F.S, on the tm= 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 likeh 'hood of delay, in
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9/23/2014 12.B.
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 bean or cant be overcome by the Company's due diligence. The
fnilm of a contractor, subcontractor, materiahnan or other agent (collectively refaced 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 beycmd the contractor's control. Upon occurrence of an
event causing delay, or upon becoming aware of a potentiai for delay, the Company shall nosy
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 m writing of the
anticipated length and cause of the delay, the measures taken or to be taken to pravent or
minimize the delay and the timetable by which the Company intends to implement these
measures. If the parties can agree that the delay ear anticipated delay has been or will be caused
by cir cutmstances beyond the reasonable control of the Company, the time for performance
hereunder shall be extended for a period equal to the agreed delay resulting firm 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 temps 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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9/23/2014 12.B.
comply with the terms of this Consent Order shall oonadU to 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 & ous Program, Division of
Water Resource Management, Florida Department of Environmental Protection, 2600 Blair
Stone Road, h1S 3599, Tallahassee, FL 32399.
29. The Department hereby expressly reserves the right to initiate appropriate legal
action to pun -ett or prohibit any violations of applicable statubos or the rules piomulgsWd 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 pwdea, signatures, such as pdf or
facsimile, shall be valid and have the some force and effect as originals. No modifications of the
teens of this Order shell be effective until reduced to writing, acocuted by both Respondents and
the Department, and filed with the clerk of the Depart.
NOTICE OF RIGHTS
32. This Consent Order is a final order of the Department pursuant to Section
120.52M F.S., and .it is final and effective on the date filed with the Clerk of the Department
unless a Pet itim for Administrative Hearing is filed in sccordavice 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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9/23/2014 12.B.
33. Parsons 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 prods is designed to formulate final agency
action, the filing of a petition c r=ung 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 reprove, 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;
fl A statement of the specific $tots 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 at the Department's Office of General Counsel, 3900
Commonwealth Boulevard, MS 35, Tallahassee, Florida 32399 -3000 within 21 days of rewipt of
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9/23/2014 12.B.
this notice. Failure to rile a petition within the 21-day period constitutes a person's wvaivw of the
right to request an administrative hearing and to participate as a party to this proc awing under
Sections 120,569 and 120.57, F. S. Boforc the deadline for filing a petkion, a person whose
substantial interests are affected by this Order may cumoto pursue nhediation as an altornative
rarnorly under Section 120.573, F.S. Choosing mediation will 1101 advorsely 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.
N. h 2 x014
DATIS
FOR THE COMPANY:
DAN A. HUGHES COMPANY, L.P.
By: Dan A. Hughes Marmgema11t, L.L.C.
Its general partner
ice President of Land
P.O. Drawer 669 eevilie. Text 0O
ADDRESS
Florida. DONE AND ORDERED this 8th day of- Ap ._, 2014, in ja.ULhasseer
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
Mark Thoira mn P. E.
Director, Division of Water Resource Management
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9/23/2014 12.B.
Filed, on this date, pursuant to Section 120.52, Fla, Stat, with the designated Department Clerk,
receipt of which is hereby acknowledged.
Clerk Date
Copies furnished to:
Lea Crandall, Agmcy Clerk
Mail Station 35
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9/23/2014 12.B.
EXHIBIT l
This eahbit is protected as a confidential trade secret under section 815.045, Florida Statutes,
and has been submitted separately.
Packet Page -561-
EXHIBIT 2
Packet Page -562-
9/23/2014 12.B.
9/23/2014 12.B.
STATE OF FLORIDA
DEPARTMENT OF ENVIROMMENTAL PROTECTION
In re:
Dank Hughes Company LP
Perna Na 1349H
Wall: 20-3161 Coil w4jogan
Pumuant to Section 403.061(8), Florida Sh tt des, the 00padmerd of
Environmental Protection (1aeparlmeW) is entering this Finel Order requiring the Dan
A. Hughes Company LP Immediately oeaes and deemed from any further dons at
the 20.3H Colier -Hogan well as proposed in ft WqU propoeaj, proposal No:
1001184798, dated December 23, 2013. The Dgmrlmw t enters the Final Omer in
eumnCiee of its power and duty to issue orders that we necessary to proW the gtme'a
webers from wafer pollution and states as folbws:
I. On December 23, 2013, Dan A. Hughes Campeny LP, through counsel,
WnWW the DMmr*umt a worlmer notHlosiion conoeming its open Psm* forthe
20-3H Colder -Hogan weq indicafirig that It tended to conduct a workover opt.
The notificedon provided seven pages or infometion on the workover proposal.
2. The Deoernber 23, 2013, ernall indicated that the proposed wooricover
e wvftn would commerwe on Decnember 29, 2013. The proposed workoww won
was initiated an December 30, 2013, and is continuing to date deaphe oral nothicabbn
by the Department that the proposed vmdw er operation woes rat approved.
Packet Page -563-
9/23/2014 12.B.
S. After reviewing the documents a to the Deaenrber 23, 2013 emff,
the Department is not sadafied that It has sufficient irdoffmtlon #hat the proposed
workover would be prota dive of the St's groundwater resources, and It is therofiare
ORDERED that Dan A Hughes Company, LP CEASE AND DESIST all opgm&m
proposed in the Deownber 23, 2013, workover noWw don aonmning the 20-3H Copier:
Hogan weli.
Any party to this Final Omer has the right to seek Judicial review of the Firol
Order under Seaton 120.38, Florida Statutes, by fllkV a Notice of AppeW under. Rules
9.110 and 8.190, Florida Rules of Appellate Procedure, with the Clerk of the
Depaitment of Environmental Protection, Offbe of the General Counsel, Mall Sin 35,
3900 Commonwealth Boulevard, Talmo, Florida 323994000, and by filing a Dopy
. of the Notice of Appeal accompanied by the applicable filing fees wM the appraprift
district court of appeal. The Notice of Appeal must be filed within 30 days after this
nodoe is fled with the clerk of the Departrnent.
Executed to Leon County, Florida on December 31, 2013,
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTPet nno
2
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9/23/2014 12.B.
Se��A� of sERV,c>E
I CERTIFY that a true COPY of the biegoing was sent electimmic mail only to
Richard 8, 81%O tman and Tknolby M Rby, Hopping Green & Sam PA, P.O. Box 6526,
Tailahs m, FWda 323146528, Att wm�s for Dan A. Hughes Company, L.P. at
9ACl� wm; MA him cam, on this 31st day of December, 2013.
H-C� _ . _
FILIM ON THIS GATE PURSUANT To 1 12012,
FLORIDA STATUT 118, MATH TM DEBIONAT®
O'�� OF YNoCH IS
3
Packet Page -565-
Packet Page -566-
9/23/2014 12.B.
<e�>
'. MHMV
For Any Company
Anywhaet, USA
5004lc XYZ well
Type: well Water
Formuioa: MA
Depth (Ft): WA
MMMLAIL
1l00 FESCO Ave. - Alkw, TX 78332
Feld: NIA
CoautY: WA
Dabs: I IMMI I
Tine: oB:00
9/23/2014 12.B.
April 26, 2011
Standard-neq Par Liter
CMW
can
MDFl a.... �..... -' ._... .i. H
_ SO4Rt
IM !0 so 40 20 0 20 40 i0 e0 100 120
} Los-oeq Per Libr
Ch
i
Imes - - _. ................... - -- -; -- • twos
5 4 9 2 1 0 1 Z 3 4 5 6
Job Number: 99999 , 9999
Certified: FFSM. L uL - 'Alien Texas
David Darmimus 361- 661 -7015
Packet Page -567-
REPORT OF WATER ANALYSIS
•a��vr +ar.ar.s..r Dissolved Solids gee +•srt+
*at.rs -
. + « *...•• * « *�v� Other Properties ss+re• *•w « «a *arse
Sodium (Na)
1 L563.70
5MM
pH
Caiciurn (Ca)
279.69
13.95
6.90
Spcoific �Y aw °F — _....._ 1.020
Magnesium (MS)
44.06
3.62
Resistivity (Ohm -metal 77.0 -F) 0.227
Barium (ft)
1.96
0.03
Potassium (K)
73.22
1.67
Iron (Fe)
0.13
-.-
Chloride (CD
17640A0
497.60
--- _—
StWDWM CaCO3 Slablligr Indax
Sulfate (904)
Carbonate (CO3)
95.00
0.00
l M
40
Bicarbonate(HCO3)
407,00
000
6A7
so
Hydmxide (OH)
0.00
0.00
100
12D
Sulfide (H2S)
0.00
1w
Total Solids
30106
FFo
180
Total Alkalinity (CsCO3)
333
2M 4 0 1 2
Total Hardness (CaM3)
860
Corrosive ; sash,
Standard-neq Par Liter
CMW
can
MDFl a.... �..... -' ._... .i. H
_ SO4Rt
IM !0 so 40 20 0 20 40 i0 e0 100 120
} Los-oeq Per Libr
Ch
i
Imes - - _. ................... - -- -; -- • twos
5 4 9 2 1 0 1 Z 3 4 5 6
Job Number: 99999 , 9999
Certified: FFSM. L uL - 'Alien Texas
David Darmimus 361- 661 -7015
Packet Page -567-
BEFORE THE STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTECTION
STATE OF FLORIDA, DEPARTMENT
OF ENVIRONMENTAL PROTECTION
Complainant,
kv
DAN A. HUGHES COMPANY, L.P.
Respondent.
9/23/2014 12.B.
IN THE DIVISION OF WATER
RESOURCE MANAGEMENT
OGC Case No. 14-0400
NOTICE OF REVOCATION
TO: Dan A. Hughes, Company, L.P.
208 E. Houston
Beeville, TX 78102
.Pursuant to the authority of sections 120.60 and 403.087(7), Florida Statutes, section
62- 4.100, Florida Administrative Code, paragraph 7 of Florida Department of Environmental
Protection ("Department') Permit No. 1349H, paragraph 7 of permit 1354, paragraph 7 of
permit 1355H, and paragraph 7 of permit No. 1356, the Department hereby gives notice to Dan
A. Hughes Company, L.P. ( "Respondent") that it is revoking all of the following permits: 20 -3H
Collier -Hogan Operating Permit No. 1349H, 22 -5 Collier Salt Disposal Well No, 1354, 7 -2H
Collier Drilling Permit No. 1355H, and 7 -5 Collier Salt Disposal Well No. 1356, based upon the
following findings of fact and conclusions of law:
FINDINGS OF FACT
The Department is the administrative agency of the State of Florida created by
section 20.255, Florida Statutes, charged with the power and duty to enforce chapters 377 and
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403, Florida Statutes, and rules promulgated thereunder in Title 62 of Florida Administrative
Code.
2. Respondent is the permittee of the following permits; 20 -3H Collier -Hogan
Operating Permit No. 1349H, 22 -5 Collier Salt Disposal Well No. 1354, 7 -2H Collier Drilling
Permit No. 1355H, and 7 -5 Collier Salt Disposal Well No. 1356. The location of the 20 -3H
Collier Hogan Well (the subject of permit 1349H) will be referred to below as the "Site."
COUNT
3. On April 8, 2014 the Department and the Respondent entered into a consent order
that addressed the Respondent's failure to comply with the Department's cease and desist order
entered on December 31, 2013. A copy of the executed consent order ( "Consent Order', which
includes that cease and desist order as an exhibit, is attached hereto as Exhibit 1.
4. Paragraph 15 of the Consent Order required the Respondent to submit an Interim
Spill Prevention and Cleanup Plan ( "ISPC') to the Department within 14 days of the effective
date of the Consent Order. Respondent submitted an inadequate ISPC to the Department on
April 22, 2014. On May 6, 2014 the Department requested that the Respondent provide
additional information on the ISPC. The Respondent and the Department met on May 14, 2014
to discuss the inadequacies of the ISPC, and the Department informed the Respondent at that
meeting that it had 14 days from the date of the meeting to submit an amended ISPC. The
Respondent failed to submit an amended ISPC as required by paragraph 15 of the Consent Order
until June 26, 2014,
5. Paragraph 16 of the Consent Order required the Respondent, at its sole expense,
to retain independent third -party experts with the appropriate qualifications to assess the
2
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likelihood that the workover operation would cause or contribute to a violation of any applicable
groundwater quality standards, which is a critical component of Consent Order compliance. The
Respondent was also required to make a good faith effort to reach agreement with the
Department 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 the Consent Order (i.e. June 9, 2014). The
Department met with the Respondent on April 30, 2014 to discuss the selection of third -party
experts. At that meeting, the Respondent proposed hiring a contractor that had previously been
hired to do work for the Respondent, which the Department found to be a conflict of interest.
The Department informed the Respondent at that meeting that proposing a contractor that had a
previous busyness relationship with the Respondent was not acceptable and was not consistent
with the requirement in paragraph 16 of the Consent Order that the Respondent retain
independent third party experts.
6. The Department and the Respondent met again on May 14, 2014 in an attempt to
reach agreement on the independent third -party experts to be retained by the Respondent. At that
meeting, the Respondent again proposed the same contractor that the Department previously
rejected at the meeting on April 30, 2014. Since the meeting on May 14, 2014, the Respondent
has failed to propose any additional experts it would be willing to retain to conduct the
assessment of the workover operations. The Respondent has failed to make a good faith effort to
reach agreement with the Department on the selection of the third -party experts within 60 days
of the effective date of the Consent Order (i.e. June 9, 2014) as required by paragraph 16 of the
Consent Order.
7. Paragraph 19 of the Consent Order required the Respondent to submit a
groundwater monitoring plan to the Department within 30 days of the effective date of the
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Consent Order. A key element of the groundwater monitoring plan required the Respondent to
conduct a one -time analytical sampling of the flowback material prior to its final disposal.
Without notice to the Department, the Respondent disposed of the flowback material that had
been generated at the time of the workover operation without conducting an analytic sampling, in
violation of paragraph 19 of the Consent Order. Defendant failed to submit the sampling results,
a required component of the groundwater monitoring plan, within the time required by the
Consent Order. In addition, by disposing of the flowback material generated in the time period,
Defendant rendered it impossible to achieve the purpose and intent of the Consent Order.
8. Under paragraph 22 of the Consent Order, the Respondent agreed to act in good
faith and to cooperate fully with the Department in carrying out the intent of this Consent Order.
In the conduct described in this Count, Respondent has violated that paragraph by failing to act
in good faith and to cooperate fully with the Department.
C-_
9. During the workover operation that the Respondent conducted between December
30, 2013 and January 1, 2014, the Respondent injected a number of chemicals down the well at
the Site. The enhanced acid stimulation process used in the workover operation generated
flowback material that contained water and the chemicals used in the acid stimulation process.
This flowback material was produced from the well over the period since the procedure
occurred.
10. The Respondent stored flowback material generated by the enhanced acid
stimulation process in storage tanks at the Site.
11. On three different occasions while at the Site, on April 16, April 23 and May 5,
2014 the Department specifically asked the Respondent or its contractor to provide the manifests
H
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for the material that the Respondent was transporting off the Site. It was of critical importance to
the Department that it have information about what was being transported for disposal, and how
much volume was being transported to be able to determine what was happening with the
fiowback material that the Respondent was obligated to sample and analyze before final disposal.
12. The Respondent refused to provide the records requested by the Department on all
three occasions in violation of section 62C- 25.001(3), Florida Administrative Code,
COUNT III
13. Every person drilling or operating an oil or gas well is required to keep posted in a
conspicuous place near the well a sign legible from 100 feet and displaying the name of the
operator, fee owner, well number, Department permit number, county name, section, township,
and range.
14. Every person drilling or operating an oil or gas well is required to have a sign
posted in a prominent place on site that provides diagrams of the gas detection and fire fighting
systems together with schedules and procedures for testing safety equipment.
15. The Department conducted an inspection of the Site on July 14, 2014 and
determined that the Defendant has failed to post the required sign at the Site in violation of
section 62C- 27.001(1), Florida Administrative Code,
16. At the same inspection of the Site on July 14, 2014 the Department determined
that the Defendant has failed to post the required safety sign in violation of section 62C-
28.004(8), Florida Administrative Code.
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COUNT IV
17. On July 14, 2014 the Department conducted an inspection of the Site. During the
inspection, a roll off dumpster was observed staged between a canal and a dirt road adjacent to
and south of the berm area around the well pad. The dumpster was nearly full with the load
consisting of 4" hoses, buckets, pieces of liner and other items, much of which were covered
with oil.
18. On the grass adjacent to the north side of the dumpster were observed several
oiled areas. There was also watery fluid dripping to the ground from the east side of the
dumpster. The water was dripping into a large frying pan -sized basin. The soil in the basin was
stained a dark red color. At the time of the observation the basin was nearly full, but was not
discharging. It was evident from erosion patterns that there had been flow from the dumpster
discharge area several feet east and then south several feet to an open water canal, waters of the
state. Areas of multicolored iridescent sheen were observed on the open soil surface in this
eroded area between the dumpster and the canal.
19. The following morning the Department returned to complete the inspection and to
conduct a sampling of the discharge area from the dumpster. The dumpster had been removed
from the site. The area of erosion between the dumpster and the open canal, although still
discernable, had been impacted by heavy equipment movement. Soil and water quality samples
were taken from the dumpster discharge flow area and the canal. At the time of the sampling,
sheen and suspected oil or petroleum by- products were observed on and within the canal.
20. The Defendant's dumpster and associated operation is an installation pursuant to
section 403.031(4), Florida Statutes.
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21. The Defendant was maintaining a stationary installation without a Department
permit in violation of section 403.087(1), Florida Statutes.
CONCLUSIONS OF LAW
22, The Department has the authority to revoke the above described permits pursuant
to section 403.08 7(7), Florida Statutes, section 62- 4.100, Florida Administrative Code, paragraph
7 of Florida Department of Environmental Protection ( "Department ") Permit No. 1349H,
paragraph 7 of permit 1354, paragraph 7 of permit 1355H, and paragraph 7 of permit No. 1356.
23. The Respondent is a person within the meaning of section 403.031(5), Florida
Statutes.
24. The facts described in Count I constitute a violation of the Consent Order.
25. The facts described in Count H constitute a violation of section 62C- 25.001(3),
Florida Administrative Code and a violation of paragraph 2 in the general conditions of the 20-
3H Collier -Hogan Operating Permit No. 1349H.
26. The facts described in Count III constitute a violation of section 62C- 27.001(1)
and 28.004(8), Florida Administrative Code and a violation of paragraph 2 in the general
conditions of the 20 -3H Collier -Hogan Operating Permit No. 1349H.
27. The Respondent's dumpster and associated operation described in Count IV is an
installation pursuant to section 403.031(4), Florida Statutes.
28. The facts described in Count IV constitute a violation of section 403.087(1),
Florida Statutes.
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ORDER OF REVOCATION
The Department has alleged that the activities described in the Findings of Fact constitute
violations of Florida law and violations of a Department order. The Department has determined
that based upon these violations, 20 -314 Collier -Hogan Operating Permit No. 1349H, 22 -5
Collier Salt Disposal Well Permit No. 1354, 7 -2H Collier Drilling Permit No. 1355H, and 7 -5
Collier Salt Disposal Well Permit No. 1356, should all be revoked immediately. The
Department will adopt this Order of Revocation as part of its Final Order in this case, and
revoking those permits, unless the Respondent files a timely petition for a formal hearing or
informal proceeding (See Notice of Rights).
By revoking the foregoing permits, the Department does not relieve the Respondent of its
obligations to plug existing wells and otherwise to remediate conditions at the sites described in
those permits.
o son, III
Deputy ecretary for Regulatory programs
Florida Department of Environmental Protection
3900 Commonwealth Boulevard MS 15
Tallahassee, Florida 32399
Filed on t p uant to Section 120.52, F.S., with the designated Department Clerk,
receipt o ich is here acknowledged.
cc: Lea. Crandall; Agency Clerk
Mail Station 35
Date
8
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NOTICE OF RIGHTS
Respondent's rights to negotiate or litigate this action are described below. Please read
them carefully.
Right to Negotiate
1. This matter may be resolved if the Department and Respondents enter into a
Consent Order, in accordance with Section 120.57(4), Fla. Stat., upon such terms and conditions
as may be mutually agreeable.
Rijzht to Request a Hearing
2. Respondent has the right to a formal administrative hearing pursuant to Sections
120.569 and 120.57(1), F.S., if Respondent disputes issues of material fact raised by this Notice
of Revocation. At a formal hearing, Respondent will have the opportunity to be represented by
counsel or other qualified representative, to present evidence and argument on all issues
involved, and to conduct cross - examination and submit rebuttal evidence.
3. Respondent has the right to an informal administrative proceeding pursuant to
Sections 120.569 and 120.57(2), F.S., if Respondent does not dispute issues of material fact
raised by this Notice. If an informal proceeding is held, Respondent will have the opportunity to
be represented by counsel or other qualified representative, to present to the agency written or
oral evidence in opposition to the Department's proposed action, or to present a written statement
challenging the grounds upon which the Department is justifying its proposed action.
5. If Respondent desires a formal hearing or an informal proceeding, Respondent
must file a written responsive pleading entitled "Petition for Administrative Proceeding" within
21 days of receipt of this Notice. The petition must be in the form required by F.A.C. Rule 28-
106.2015 and include the following:
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9/23/2014 12. B.
(a) The name, address, any e-mail address, telephone number, and facsimile
number, if any, of the respondent, if the respondent is not represented by an
attorney or qualified representative.
(b) The name, address, e-mail address, telephone number, and facsimile number
of the attorney or qualified representative of the respondent, if any, upon whom
service of pleadings and other papers shall be made.
(c) A statement requesting an administrative hearing identifying those material
facts that are in dispute. If there are none, the petition must so indicate.
(d) A statement of when the respondent received notice of the administrative
complaint.
(e) A statement including the file number to the administrative complaint.
A petition is filed when it is received by the Department's Office of General Counsel, 3900
Commonwealth Boulevard, MS -35, Tallahassee, Florida 32399 -3000.
Right to Request Mediation
Respondent may request mediation after filing a petition for hearing. Requesting
mediation will not adversely affect the right to a hearing if mediation does not result in a
settlement. The mediation will be held if the parties enter a written agreement, which is
described below, within 30 days after receipt of the Notice of Revocation. The mediation must
be completed within 60 days of the agreement unless the parties otherwise agree.
The agreement to mediate must include the following:
(a) The names, addresses, and telephone numbers of any persons who may attend the
mediation;
10
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(b) The name, address, and telephone number of the mediator selected by the parties, or
a provision for selecting a mediator within a specified time;
(c) The agreed allocation of the costs and fees associated with the mediation;
(d) The agreement of the parties on the confidentiality of discussions and documents
introduced during mediation;
(e) The date, time, and place of the first mediation session, or a deadline for holding the
first session, if no mediator has yet been chosen;
(f) The name of each party's representative who shall have authority to settle or
recommend settlement; and
(g) The signatures of all parties or their authorized representatives.
As provided in section 120.573 of the Florida Statutes, the timely agreement of all parties
to mediate will toll the time limitations imposed by sections 120.569 and 120.57 for requesting
and holding an administrative hearing. Unless otherwise agreed by the parties, the mediation
must be concluded within sixty days of the execution of the agreement. If mediation results in
settlement of the administrative dispute, the Department must enter a final order incorporating
the agreement of the parties. Persons whose substantial interests will be affected by such a
modified final decision of the Department have a right to petition for a hearing only in
accordance with the requirements for such petitions set forth above, and must therefore file their
petitions within 21 days of receipt of this notice. If mediation terminates without settlement of
the dispute, the Department shall notify the Respondent in writing that the administrative hearing
processes under sections 120.569 and 120.57 remain available for disposition of the dispute, and
the notice will specify the deadlines that then will apply for challenging the agency action and
electing remedies under those two statutes.
11
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Waivers
7. Respondent will waive the right to a formal hearing or an informal proceeding if a
petition is not filed with the Department within 21 days of receipt of this Notice. These time
limits may be varied only by written consent of the Department.
General Provisions
8. The allegations of this Notice of Revocation will be adopted by the Department in
a Final Order if Respondent fails to timely file a petition for a formal hearing or informal
proceeding, pursuant to Section 403.121, F. S. A Final Order will constitute a full and final
adjudication of the matters alleged in this Notice.
9. This matter may be resolved if the Department and Respondent enter into a Consent
Order, in accordance. with Section 120.57 (4), F.S., upon such terms and conditions as may be
mutually agreeable.
11. The Department is not barred by the issuance of this Notice from maintaining an
independent action in circuit court with respect to the alleged violations. If such action is
warranted, the Department may seek injunctive relief, damages, civil penalties, and all costs of
litigation.
12. Copies of Department rules referenced in this Notice may be examined at any
Department Office.
12
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BEFORE THE STATE OF FLORMA
DEPARTMENT OF MWIRONMENTAL PROTECTION
STATE OF FLORIDA DEPART1+1I NT
OF ENMONmETrAl, PROTEMON
VS.
DANA. HUGM COMPANY, L.P.
9/23/2014 12.B.
]NT THE DMStON OF
WATER RESOURCE MANAGEMENT
OGC FILE NO. 14 -0012
This Consent Order (" OrdW) is enteral into belwem the State of Florida Dgwtment of
Environmental Protection, ("DePartm and the Dan A. Hughm Company, L.P. ("Ccamtay+'%
to reach sddement of certain mattets at issue between the Department and the Company.
1. The Department is the administrative sgmcy of the Stale of Florida having dw
power and duty to protect Florida's air and water resources and to administer and enforce the
provisions of Chaptm 377 and 403, Florida Statutes ("F. S.0), and Chapters 62C.75 through
62C -34, Florida. Administrative Code ("F.A.C."j Ths DepatmMt has Juns&c6on over the
=Mrs addressed in this Order.
2. The Company is a "*Me within the meaning of Section 403.161 and
403131(5), F. S.
3. The Company obtained an Oil do Gas Well Drilling Permit from the Dopaztlnmt
in December ar2012 (Permit Nei: 1349H, Collier -Hogan 20 -311 Well) to contract a well to be
located at the Hogan Island Farm in Collies County, Florida.
4. Upon completion of the eoGSWuctson of the 20-3H Callier -Hogan Well ("Wen")
the- Conrparky abWDOd a Five Year Operation Permit in August of 2013 to operate the Well as an
Oil production well.
EXHIBIT 1 TO-NOTICE OF REVOCATION
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5. On December 23, 7013, the Company ubmitted to the Department a Workover
Notification indicating that it intended to eruct a "Workover Operation" as desenbei 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 Departm014 the
Company agreed to decay the W Odmver Optxatiaa until at least Deaeinber 30 to allow the
Department more time; to review and respond to the notice.
6. The Workover Cation gOPaae 'd by the COUPRAY began on December 30,
2013, and continued through January 1, 2014.
7. On December 31, 2413, the DaPwtnxmt ordered a Final Order Rcgtriring
Operittiom at Well 20-3H Cease and Desist and se vW a copy of fe Fmal Order on the
Company on December 31, 2013. A copy of the Final Orden is attached hereto as Eahibft 2.
8. The Company continued the Workover Operations urn apps+otamateiy 2:30 PM
an the 4ft=00n of January 1, 2014.
9. The Company ids that at ail times it was opaxadug lawfully under it valid
permit sad followed all applicable prate Mired to conduct the Workover Opergfions
deseribed in Exhibit 1.
Having reached res ludom of dw matter, the Dot and the Company mutually
and it is,
14. Within 10 days of the effactive, date of this Order, the Coaapeay shall pay the
Department x25,000 in settlement of the regulatory maftn addressed in thia Order. This amount
includes 520,000 fbr civil payments and 55,000 for costs incurred by the Department &Uing the
imrestigstiun of this matter and the prepamtion and tracking of this Order.
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1 i. Iran diately upon exem:rfion of this Order or upon beoDming available to the
Compntny (whichever is later). the Company shall provide to the Department the iaf mmdon in
pamzraphs 12 -14 below.
12. 7be Company shall provide Matefmal Safety Data Sheets (NMDS) for ail materials
used in the Workover won described in Exhibit 1 attached hereto, along with the proportion
and total volume of mcb miatmial used in the Workover Operatim
13. ine Company shat id!u* the total vahume of water used in the Woricoverr
Operation, and the sonme of the water, iaclu ding the pem * number if the water was obtained
from a pennided source and confirmation that the volume of water used for the Woricover
Operation does not exceed any limitation set in the permit.
14. The Company shall provide the fbHowing information concerning the flowbaicjc
material management for the Well opaatio= (a) estimate of the total volume offlowba*
mat ; (b) storage CW4":►ty at the pad to camtain any ftwb&:k material that is arAicipated to be
hold onsite; (C) description of the secondary Ott me sstazt emplo)ped at the site; (d) the
final disposal location for the flowbadc mat=W rcaulting from tb a Worlrover M. and (e)
and confirmation of the MgUlatmy conditions on final dispa►sai, including the tit* agewy
arks permit number(s).
15. 7be Company shall submit an Interim Spill Pravent on. and Cleanup flan ("ISpC
Plan") to be implemented at the Well. The ISP'C Plan shall be aulrmitted to the Department
within fourteen (14) days of the affbWve date of this Comet prda. If the Departs= requests
additional inforrna ion or notifies the Company that the iSPC Plan is kadequste or owe
urarccptable, the Company shall provide the additional ft&mnadOn or submit a revised TSpC
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flan wiihin tiie time frame, not leas then fourteen (14) days„ Verified by the Departmwt in the
request or notificatiom implemantaxion of lire Degatmmt approved LSPC Plan oo=dtutw
satisfaction of this roquiircmeat.
ANALYSIS AND MANAaQBM33NT
K The Company shall provide inf�on and analysis to confirm that biro
Workover Operation was designed and carried out in a way that It is not likely to cause or
contnbute to any violation of any applicable groundwatc quality sbmdard. The Company, at its
solo expense, SW retain U dRxndent third- -party experts with the appropnote qualifications to
assess the liker;,cx1 #hat the Workovear Operative will cause or cantnibute to a violation of any
applicable groundwat w quality standards. This analysis sbsll consider at a minimum, the
potential for injected or native fluids to migrate through the deep geological hrmshow or the
Well casing into snrmuz ng Mmmdwater bearing zones with total dissolved solids
cO==fttiOrA of 1 El 000 ppm or less. The Department and the Company shall make a goad faith
effort to .retch mutual agreement on the selec6an of the thir&patty cgxw a and the "Scope of
Wank" to be Performed by the 04MU within 60 clays of the effective elate Of this Order. Neither
dw Department nor the Company shall vnmisonably wid&ld their a wval of the experts or the
Scope of Work for the aaeiysis. The Scope of Work will be limited to analyses reasoaably
n000mary to evahWe the likelihood tiiat'Workover Opcmbom smog to the Workoves
Operations dcscaibod in 13.xinitnt 1 will cause or contnNft to any violations of any app'si=Wc
groundwater quality standards. The experts shell prepare a Report and submit the Report to the
Depw tment by December 1, 2014.
7. Upon receipt of the Report, the Dqurtm,ent SW review the lR.epmt and in a
timely man= determine whe dw it provides sufficient mfmmabon ttr evaluate tin Uslibood
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9/23/2014 12.B.
that WOTtfOVQ' Operations similar to the Workover Opastions 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 reocipt of the Report the Department shall node, the Company and the
Report author of any apparent aurora or omissions and request any additional infotmabon needed
to evdulte the liikdlihaod groundwater standard violations would result from similar Workover
Op m- ations. The Company shall provides the additional udarmafion reasonably regquetsted by the
Department within 30 days of receipt of the Dm's ro9uesL If at any time before the
study is accepted by the went anyone files a Workover notice for a Workover Operation
similar to the Workover Oparation described in Exhibit 1, clue Department will respond to sirs h
notice with a request for infection similar to the Sorge of Work for the Report.
I & , No future' Workover Operations similar to the Workover Operaflpn described in
Exhibit 1 shall be implemented at a'my of the Company's wells (existing and proposed under
valid permits) until the completion and submittal of the Report described in panWVb 16. The
Department agrees to provide writtart notice to the Cmup wy when it has satisfied the Report
requirements of this Conaant Order.
19. Within 30 days of the effective date of this Order, the Company shall submit a
gzoundwatea monitoring plan ("Plan's to the Department. The ob Wdve of the Plan is to provide
informadon regarding the lilcelihood that the Workover Operation Will cause or contnbrtte to any
violation of any groundwater standard in the nearby groundwater ifer used as public and
Private water supply. The plan shall be developed and implemented d at the expense of the
Company. 71M 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 tlowback material shall be conducted using the following analytical
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9/23/2014 12.B.
methods: EPA Method 350.1 — total ammonia, EPA Method 8260 with racier reporf mg of an
target anslytes and teofativeiy identified oompmmds having greata. am 1()% relative abundance.
EPA Method 8270 with required reporting of an target anayytes and tentatively identified
cxrmpormds having grader than 10% relative AWDdansee, EPA Method 80150 with all alcohols
and glycols using the heated purge option cited in Seet on 11.1.2, FL PRO (State of Florida
petralewn range Organics), MA VPH {State of Massachusetts volatile petral=M hY&0arbons),
Standard Methods 2504E — total dissolved 301A and Standard Methods 4500 -CL F (listed as
residual chlorine but measures total xosiduat oxidants}; ; (b) lnstallsiiacn Of a caries of shallow
monitoring wells, planed at the NW, NE, SW- SE CMMess of the pad. The wells shall be
designed to test the f bll column of the potable water nine; (c) installation of out deep
6rOmhvider w0nitoring well an the gaud AM southwrest of the sabjeet well to a
dq'th equal to the
base of the sandstone aquifer (appt+axiMdWy 400'); (d) ground water quality sampling and
aaalyges Of all wells;; (t) aampii::ng and analyses of all monitoring wells on a quarterly basis for
either tern (10) Years from the date upon which the Department appmves the groundwater
momitaring plan or for five (5) yeah a8ar, plug and abandonment of the Well, which eva.
monitoring period shaft expire iirv4 (t) as inventory of freshwater supply wens within a quarter
Mile of well bore hole; and (g) a schedule fnr implementkg the Plan.
20. If the Vent requests additional information or notifies the Company that
the Plann is inadequate ar odwm ise r =ePtable, the
Y shall ps+avide: iht additional
iafr►amatiorn or submit a revised Plan within the time frame specified by the Department is the
request or notification. Within 30 days of notification from the
vepartmeait that the Play is
aeoaptaifle, the Company shall begin *lamenting the Plan.
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9/23/2014 12.B.
SE TLE{MENf OF ALL DISPUTES
21. The terms of this Consent Order, upon ex=gion, B},all Sup=ede the
ro+VL'tanents Ofthe•Final Order Requifing OPerations at Well 2N3H Case and Desist.
22. This Consent Order is in settlement of all diapuates between the Company and the
DaPartmdnt re'gerdbg the Permit No. 1349K 20-30H CoUie r.1jogim Well. The Department and
the CoMPOMY agree to act in goad faith and to cooperate fully with each other i.hn carrying out the
intent of this Consent Order, need all manarg related dw tc,, and for that purpose agree to M=te
any additional dOcunwnts or take such action as may prove reasonably necasary to accomplish
first intent.
CONFIDE IALITY
23. If any of the information submitted by the Company in raponft to the
requbea rents of this Order is considered a trade secret or is oamwiw confidential information in
accordance with Chapter 377 or Section 403. 111, F.S., the Company shall request upon subrniitat
Of the Wormnation that the Department keep such infmufitan confider". The Department will
themfie r keep suet information confidential in acoordenc e with the raquircm=ts of Chapter
377 and Section 403.111, P.S.
ORDER ADMiNISMT10N
24. The Company acknowledges and waives its riSW to an atiniir grative hearing
pursuant to Sections 120.569 and 120.57, F.S., on the berms of this order. The Company
acdmowledges its right to appeal the terms of this Order pursuant to Section 120.69, F.S, and
waives dud right upon signing this Order.
25. If any event, including administrative or judicial aitaIkaps by ffiW pies
unrelated to tiro Campsny, occUrs which causes delay or the reasonable likelihood of delay, in
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complykg with the z^egcri=Mts of this Consent Order, the Company dMH have the burden of
p€ wAng the delay was or will be caused by dmomstances beytmd the reasonable control of the
Company and could not Have been or cannot be overcome by the Company's due diligence. 7be
failure of a contractor, subcontractor, meta idman or other agent. (collectively refared to as
"c ontracte) to wh0m respombility fD Perfo=aace is delegated to meet C=ftCtMUY imposed
deadlines small not be a cause beyond the cone ml of the Comp=y, unless the cause of the
contractor's late paibm = was also beyond the contractor's control. Upon occaureriae of an
"W casing may, or upon becoming aware of a potential for delay, the Company shah notify
the DePartment orally within 24 hours n by the amt working day and shall, within seven
calendar days of oral notification to tiro Depattman4 notify the
Department in writing of the
anticipated length and cause of the delay, the measures taken or to be taken to prevent or
mirz� the delay and the timetable by -Which the Company intends to implement these
mom. If the parties can agree that the delay or anticipated May has bn or will be catned
by circa stances beyond the reasonable- contwl of the Carney, the time for pe:formancc
ceder shall be extended for a period equal to the agreed delay raulting fiom such
circtumstances. Such egreemeW shall adopt all reasonable mcascass nosy to avoid or
mia3tniza delay. Failure of the CoaipantY to comply with the notice requirements of this
PwaBmPh in e timelyrnarmer shall constitute a waiver of the Company's right to request an
ecctorsion of time for compliance with the requirements of this Consent Order.
26. Entry of this Cogent Order does not relieve the Company of the read to comply
with applicable ficderai, state or local laves, regulations or ordinances,
27. 7be terms and conditions set forth in this Consent Order may only be enforced in
a court of comPCdant jurisdiction P== to Sections 120.60 and 403.12:, F.S. Failure to
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c*mPly with the terms of this Consent Order shell oonstEtute a violation of Section
403.161.(i)(b), F.S.
28. All submittals and payments required by this Consent order to be sabrnitted to the
Department shall be sen< to the Program Administrator of the Oil & Gas Program, Division of
Water Resoum Msnagemmt, Florida Department of EuviranrnnanW Protection, 2600 Blair
Stoat Road, IBS 3538, TallaEMaee, FL 32399.
29. The Depgrtmeat herebo, oelNMly, rcgervcs the right to initiate app u note legal
actitm to prevent or prohibit any violations of applicable; stattrtes or the rules promulgated there.
under that are not specifically addressed by the te= of thine Consent Order.
30. This Consent Order is a settlement of the DepartneWs civil and administrmdve
authority erisiAg under Florida law to resolve the matters addressed herein. This Order is not a
srtiieMW of any criminal liabilities which may arise under Florida law, nor is it a settlement of
any violation which may be prosecuted miminally or civMy antler federal law.
31. Electronic signaturm or other versions of the parties, sigctatm=, such as pdf or
faceimil4 shall be valid and have the same fortx and eefibct as originals, No modifications of the
tests of this Omer shall be effective unto reduced to writing„ executed by both Respond=w sad
the Department, and filed with the cleric of the DewL
NOTICE OF RIGH'T'S
32. 'This Conmt Order is a final order of the Department pmmumt to Swtion
I2Q52(7j, F.S., and it is final and effective on the date filed with the Clerk of the Dement
rimless a Petition for Administrmtive Hearing is filed is accondam with Chapter 120, F.S. upon
the timely filing of a petition, this Order r will not be effective until ford= order of file
Department.
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33. Persons who are not parties to this Order, but whose substantial interests veer
aff=ted by it, have a right to petition for an sdaainisttative hearing wider Sections 120.569 aid
130.57, F.S. Because: the administrative hearing process is deaigaed to f onnulm ffiW agency
acti(n, the filing ofa petition conftTdng this C)rder T11CM that the Del= entys first action
may be diff mvnt from the position it has taken in the Order,
The petition for administrative hearing mud coftain All of the Mowing infirm on:
a) The OGC Number assigned to this Ckdw,
b) The name, address, and t0l*hme mrmiier of each petitioner, the name addneu6, and
talephone number of tle pe:titioner'& represatative; if any, wbir„h sba11 be the
address for service purposes dmintg the course of the procee &g;
ci An explanation of how the pe diionds MbsWatial int= ty will be affeae d by the
Order;
d' ) A staienumt of when and bow the patitioner , racdved notice of &e Ordw
e) Either a sweat of all materiai faces disputed by the petitimer or a sb*M met that
the getifiouw does not dispirte any material fear;
f) A stateame nr of the spodfic facts the pe titiom Contends warrant ravessai or
modification of the Order,
g) A sWement of the rules or ststutes the petitioner contra& require r+evWW or
modifica on of the Crease; and
h) A stat=wmt of the relief Wu& by the petitioner, aUdna predwly the action
Petitioner wishes the Department to take with respw to the order.
'The periticrn must be filed iv at the; Depaaixn;eat's off1m of Cx eMI Coerased, 3900
Cornnxt3rwealth Boulevard, MS 35, Tallahassee, Florida 32399.3000 withnn ZLdM of receipt of
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9/23/2014 12.B.
this uotiee. Fa£1um, to rite a petition within 1ha 2 Way period constitutes a per3Dn`a %vaiver of the
right to rquest an adm nisirntive haring and to pertieirete as a pwtyto this nracecding under
Sections 120.549 and 120,57, F. S. Boforc the r1<cadtine for citing a pttiti021, a pm m %Anse
substantial itttemis arc af%ctei by this Order tusy Choose to pursue nxdiat in as an affametive
mnvdy under "section 1201573, F.S. Choosing mediatkni will Dot advorialy effect such pamou's
right to request an adminign. tivo hearing irinad adion does not result in a ws tienmg. Additiorual
infon atian about mediation is provided in Section 120.573, %rida Statutes and Rule 62-
I10,INi2� P.A.C.
FOR THE COMPANY:
DAN A. HUGHES COMPANY, L.P.
By: Den A. HuRfOx Management, L. L.C.
Its general partner
F-01.P.LMj 609, Dmj1k. T=tR'&
ADDRESS
Florida. DGNE AND ORDEPWD this 8th _ cfayar_ Lyra7 — 2010 in Zallahassc�
STATE OF FLORIDA DEPARTMENT
OF ENVIRONMENTAL PROTECTION
Al
Mark Thomas n P. E,
DirWor, Divi jDn of Water Ramource Mamipmert
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Filed, era this dam, pYUMUM'to Se Ct i M 120 -S2, Fla. Stilt, With the designated Department Cleric,
roe* of whits is hereby ad mwiedge i
Cla
oypim fa to
La Crftdal1,, Agency Cie*
Mail Station 35
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ExHII'S!T I
9/23/2014 12.B.
This exhbit is Protected as a ooaden ial trade secret under section S 15.045, FbMa Statutes,
and has been submitted wpmsteiy.
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EXHrSIT 2
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9/23/2014 12.B.
STATE OF FLORIDA
DEPARTMENT OF ENVIRONMENTAL PROTF -c noN
In re:
Dart A. Hughes Company LP
Permit No. 1340H
WbtL• 20%Vi Caber -Hc
Pursuant to Seotion 4M.001($), Florida SW& t+ds, ft Dspwbrw ! of
F.xr�riI Proiechcn CDWwWwtn is wfting this Order requiring ft Doan
A. Hughes Company LP knrnefi mm and deWW from any hvgw Marsam at
the 20-3H 039w-Hogan wets as proposed in ilt Wadi Propowd, No:
10011647K da Wd [ econber 23, 2013. The Depwbw t enders his F cW Order in
exeadee of its pow and duty to issue adsts that NO necessary to the Stft -s
waters from wa*er polludon and ads as f000m:
1. On Doeember 23, 2013, Dan A. Hughes Co"VAny L-P, through cwurael,
Om &110d the Department a workover noiftation oarK ring #s opw&tion Pmt for the
20-3H Colder -Hogan, wed Ong the It k whm iad to conduct a wow Wersfim
The notihcabon prowded seven Paget of Wbrmatian on the wwkouer pr,oposW,
2. The December 23, 2013, gmag Ind, -: 10 d #* the proposed wtin'ivmr
go L� , N -- - ,
... ::..:. . .
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9/23/2014 12.B.
3. After mWomft the d=&Mft ftwched th the DOWT*w 23.2013 sue,
the Depertmant Is not wfided OW lk has suldent l bmu tbn that the prolod
workoverr w uid be proltdive &the ms's groundwaier reswroW and it ds
Ong
ORDERED *0 den A. #44= ComMV, LP CEASE AND DESIST eN operagom
Pfd In the Deoambw 23, 2013, wart ovw noti0cerlion c orcerrntno ttxa 20-3#4 Coif
Hogan "a.
Any party to this Fdnai Orden hat the NN to seek l •i review of the Firuud
Order under Seddon 120.88, Florida SAduift, by fft a f of App,W ur9W Ruin
9.110 and 9.19tl, Fbdtda; Rukn at App ak% pm,xkwe. vt the Ckwk at on
DePrkment & En*wwn snW prow =, Dfi>oe of the t3suWW Cowes, Md
mft 36,
3900 Commo neratth BouWvwd, Tom, Fiaida 32398- 3Qty0, eW by ffft a ,
of the Natice of Appeal 8=mpanie d by the app f N ft" with the appmpriab
district court of appeal. The Notice of AppeW mwt be feed within 30 days mUr this
notice fs N3ad with the dark of the art.
Executed in Leon Coumty, F%rida on Deownber 31, 2013,
STATE OF FLOFUDA DEPARTMENT
OF ENVIFV t ' AI r rlTCnrr..
2
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I CERTIFY that a true cry of the lbregolt ym sent skonic mad only to
Rkhwd S. 8ript*m and Timothy M R11ey, HoppkV Gmw & Sam PA• P.O. Ba 6620,
Tabgmmw, PbiW& 3231445M. 5M. A*wm fbr Dan A. ii4pw* CmnPo•7 r LP. at
ric r�dhd l I; �r cx�m, on this 31 at day of 0609mber, 2013,
a+ • �s rte•
CLERK DAM
3
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AX9 26, MI I
<4!b> MWo,"Il
u00 MWO Ave. - Mies, TX 7W2
For. Amy Coca nwf
Aetywherc, USA t0a1� WA
Couury; WA
Saarp>� XYZ Well
Typw W110 WSW
Foluix6m WA % Dm
DeWh (Pt). N!A
REPORT OP WATER ANALYSIS
Chlce>& (CI)
Su}fkz (SO4)
Carhtmate (CO3)
9'uxroonat jJM3)
Hydlscstida fOH)
SUM* (t12s)
Total Solids
Total Aka Wly (CaM3)
Total Iiardaeas (Cn=)
1765" 497.60
�-•-�
DiUWVW Scllda strrstt«««sst«a
ox
JOWL
MP4
Sodium (Na)
I L83.70
' SQ2.49
ckwtan €Ckt)
Z74.*
139b
M:Snedum NO
44,08
3.d2
Bwium w
1.96
0.03
Poisa� (K)
73.32
1.87
Iron (80)
0.13
Chlce>& (CI)
Su}fkz (SO4)
Carhtmate (CO3)
9'uxroonat jJM3)
Hydlscstida fOH)
SUM* (t12s)
Total Solids
Total Aka Wly (CaM3)
Total Iiardaeas (Cn=)
1765" 497.60
�-•-�
196
ox
0.00
407,00
647
0.00
0.Oo
O.OD
30105
333
880
9/23/2014 12.B.
►♦ **.tt * « *it *tt* Other Proponles •««t «rs « «rN«r,
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Cartibed' FEWO, Ltd. - Ahm T=.
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Job xuml ,: 9-am :9999 Did Dam wu5 3tsl -6t�1 -7015
Packet Page -598-