FIR 1 - INSPECTION REPORT

Permit Holder:	Merit Energy Company, LLC			Well Name/No:	Phipps Lumber Federal	Permit:	35816
Lease Name:	Phipps Lumber Federal 4-2	Sec:	2	Twp:	11N	Range	25W
GPS Well Location:		Latitude:	35.63726	Longitude:	-93.61524	Field:	BATSON
Lease/Tank Battery:		Latitude:	0	Longitude:	0	County:	JOHNSON
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:

0

Width:

0

Diameter:

16

Height:

6

Capacity (bbls):

215

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:
Chart meter producing.

Inspected by:	DEREK GOODMAN				Date:  8/4/2015 12:00:00 AM
Review for NNC or NOV:	Yes No	If yes, check one	NNC NOV DNI NA	Ref #:	Date: 8/5/2015
ADEQ referral:	Yes No	Date of referral:  __________