FIR 1 - INSPECTION REPORT

Permit Holder:	Quanico Oil & Gas, Inc			Well Name/No:	Spencer-Townsend	Permit:	46800
Lease Name:	Spencer-Townsend 1	Sec:	15	Twp:	17S	Range	14W
GPS Well Location:		Latitude:	33.24233	Longitude:	-92.54316	Field:	CHAMPAGNOLLE
Lease/Tank Battery:		Latitude:	0	Longitude:	0	County:	UNION
Entrance from nearest 911 address, public street or highway

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:

80

Width:

50

Diameter:

0

Height:

2

Capacity (bbls):

1425

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:
During my lease inspection I noted the well was flowing produced fluids to the tank battery and no pumping unit was on site. The well has 380 PSI on the tubing gadge. Also during my inspection I noted that the well and tank battery were in compliance with AOGC rule B-26 Quanico will post identification this week.

Inspected by:	BILLY HANEY				Date:  8/26/2013 11:15:00 AM
Review for NNC or NOV:	Yes No	If yes, check one	NNC NOV DNI NA	Ref #:	Date: __________
ADEQ referral:	Yes No	Date of referral:  __________