FIR 1 - INSPECTION REPORT

Permit Holder:	Merit Energy Company, LLC			Well Name/No:	Pendergrass	Permit:	26597
Lease Name:	Pendergrass B-1	Sec:	8	Twp:	8N	Range	27W
GPS Well Location:		Latitude:	35.38545	Longitude:	-93.89067	Field:	AETNA
Lease/Tank Battery:		Latitude:	0	Longitude:	0	County:	FRANKLIN
Entrance from nearest 911 address, public street or highway				Quail Ridge Road

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:

9

Height:

3

Capacity (bbls):

34

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:
Fluid level test conducted on 05/14 = Tubing - 4994' @ 79 PSI, Casing - 5014' @ 79 PSI, a recent tornado has blown produced water out of containment and it's now laying on the ground, XTO advised that they would place the tank back into it's containment or remove it from location. Operator contacted.MP No enforcement at this time.MP

Inspected by:	DAYMON BLOUNT				Date:  5/14/2018 1:16:00 PM
Review for NNC or NOV:	Yes No	If yes, check one	NNC NOV DNI NA	Ref #:	Date: __________
ADEQ referral:	Yes No	Date of referral:  __________