FIR 1 - INSPECTION REPORT

Permit Holder:	Black Hills Energy Arkansas, Inc.			Well Name/No:	Vernon, Dolen	Permit:	8230
Lease Name:	Vernon, Dolen 1	Sec:	23	Twp:	10N	Range	27W
GPS Well Location:		Latitude:	35.52501	Longitude:	-93.83445	Field:	WHITE OAK
Lease/Tank Battery:		Latitude:	0	Longitude:	0	County:	FRANKLIN
Entrance from nearest 911 address, public street or highway				Caterberry Run

Status:

Completing New not producing Operating Old not producing Not found

Single well pad Mutiple well pad NA

Well equipment operational:	Equipment plumbed properly:	Excess equipment on lease:
Yes No NA	Yes No NA	Yes No

Signs:

At lease entrance:

Yes No

At tank battery:

Yes No NA

At well:

Yes No NA

Signage compliance:

Yes No

Tank Containment:

Earthen Metal ring Tank in tank No Tanks Other

Dimensions:

Length:

0

Width:

0

Diameter:

0

Height:

0

Capacity (bbls):

0

Capacity compliance:		Breaches/Erosion:		Excessive vegetation present:			Compliance agreement:
Yes No NA		Yes No NA		Yes No NA			Yes No NA

Containment Conditions:

Fluids Present:

Yes No

Produced fluids Storm water Waste oil NA Other

Well Site Compressor:

Yes No

Is it in compliance?

Yes No NA

Trash/Debris:	Yes No	Use as storage area:	Yes No	Unusual equipment:	Yes No	Excessive erosion:	Yes No
If yes to any, explain:

Entry Gate Present:

Yes No

Gate locked on arrival:

Yes No

Gate locked on departure:

Yes No

Is spill or discharge of drilling, completion or produced fluids present:					Yes No
If yes, did spill or discharge of drilling, completion or produced fluids occur or travel off the well pad:								Yes No NA	(If yes, complete FIR 5)
Compliance Summary Remarks:
FIR is to document a failed plugging attempt. Well is for storage only and has communication with other storage wells in same zone. Plugging operations were started on 10/06/17, but well was pressured to over 600 PSI, due to injection from other wells. 10/09/17, injection was stopped from other wells, and this well was loaded with mud, to start plugging operations. 10/10/17, 1300' of coil tubing was removed and well was prepared for bottom cement plug. 10/11/17, 250 sack cement plug was set from 1345' back to 1030'. 10/12/17, 250 sack cement plug was set from 1020' back to 651'. 10/13/17, 200 sack cement plug was set from 641' back to 290', well was perforated at 175' and a pressure test was conducted. After completing the pressure test, a 175 sack cement plug was set from 265' back to surface (approx. 4'), and left to cure for the weekend. When crews returned to cap well on 10/16/17, it was discovered that one or more of the cement plugs has failed, and the well was producing gas. Several test were conducted, and the well appears to be staying in the area of 50 to 60 PSI, and a large channel could be seen in the surface cement plug. At the time of this FIR, the well has been secured and valves are in place to monitor any increase or change in the well pressure. Plans are being made to drill the cement plugs, and start the plugging operations again.

Inspected by:	DAYMON BLOUNT				Date:  10/18/2017 10:10:00 AM
Review for NNC or NOV:	Yes No	If yes, check one	NNC NOV DNI NA	Ref #:	Date: 10/18/2017
ADEQ referral:	Yes No	Date of referral:  __________