Prepared by: Craig A. Pangburn and Kevin C. Gates (UCS Members)

1. Prepared by: Craig A. Pangburn and Kevin C. Gates (UCS Members) Kansas Department Of Health & Environment Fall Seminar September 5, 2013 Wichita, KS

2. Who is UCS, LLC? • Underground Cavern Stabilization, LLC - (commercial Class V emplacement facility) • Founded April 19, 2011 • Permitted August 24, 2012 • Craig A. Pangburn: (Great Bend, KS) Licensed Geologist • Thomas H. McGlinn: (Great Bend, KS) • Kenneth C. Gates : (Pratt, KS ) • Kevin C. Gates: (Pratt, KS)

3. Purpose of UCS, LLC • Provide a commercial facility to backfill, emplace, and contain non-hazardous semi-solid and/or solid material into underground cavern wells located south of Hutchinson in Reno County, KS. • The physical address is 7513 South K-14 HWY, Hutchinson, KS 67501 • Enhance Stabilization at the referenced site facility over a period of time by simply backfilling/emplacing the non hazardous material into the open solutioned cavern.

4. Non Hazardous Materials Examples • Salt saturated or high chloride contaminated soils or semi solid material derived from oil/gas industry, underground cavern storage facilities, salt solution mined facilities, pipeline facilities, etc. • Formation cuttings, muds, excess cement slurry from Class I, II, III, V, VI, oil and gas wells, and underground cavern storage wells drilled not only in Kansas but from other surrounding states • Other KDHE approved non hazardous mineralized and or inert type materials that are compatible with the salt formation within the cavern well. • Sediment material from pits, brine ponds, etc.

5. TIMELINE OF EVENTS • 2010 - 2011 • Oct 2010-Nov 2010 Thought process and strategic planning (UCS members) • Dec 2010-Jun 2011 Meetings with KDHE, KCC, and UCS Members • June 1- Oct 1, 2011 Prepare Class V Permit Application • July 2011 Meetings with Reno County Commissioners and Zoning Department • July 14, 2011 Had a meeting in Hutchinson with Adjacent Landowners • October 1, 2011 Submitted Class V permit application • October 12, 2011 Submitted NOI (Notice of Intent) for Storm Water Runoff from Construction Activities • 2012 • March 9, 2012 Submitted first revisions to the Class V permit application • March, 2012 Submitted the Storm Water Pollution Prevention Plan (SWPPP) for Construction Activities • April, 2012 Submitted the Storm Water Pollution Prevention Plan (SWPPP) for Industrial Activities

6. May 1, 2012 Received the approved NOI • May 11, 2012 Submitted the second revisions to the Class V permit application • May 16, 2012 Submitted to the Kansas Department of Agriculture the Application for Permit to Appropriate Water for Beneficial Use (water use permit) • May 23, 2012 Submitted the Term Permit Application to Kansas Department of Agriculture • June 25, 2012 Submitted the Beneficial Reuse Material Acceptance Plan with Manifest • July 19, 2012 The Class V permit went on public notice • July 23, 2012 Submitted Equus Beds Appropriation Permit Application • August 16, 2012 Received the approved Permit to Appropriate Water for Beneficial Use (water use permit) • August 18, 2012 Class V permit posted in the Kansas Register • August 24, 2012 Received the Kansas UIC Class V Permit Fluid Emplacement Well • August, 2012 GeoTechnical Engineering Report – BRM Solids Containment Building • September, 2012 Limited Site Assessment Report – Background Chloride Sampling • December 7, 2012 Submitted KCC Form U-9 Notice to Modify Injection Permit (EOR) • December, 2012 Received the Reno County Wastewater Permit (construction) for 2012 – RP100

7. 2013 January 15, 2013 Received the KDOT approved highway permit for highway access February 4, 2013 Received the Reno County Wastewater Permit (construction) for 2013 April 16, 2013 Open for Business June 26, 2013 Grand Opening (Ribbon Cutting)

12. Regulatory Requirements • Bond Log • Gamma Ray Density Log • Casing Inspection Log • Sonar • Video Camera • MIT on the casing • MIT the cavern

15. Finished Well • Continuous monitoring • Flowmeter emplacement volumes and displacement volumes • Pressure monitoring emplacement and displacement sides • LEL on displacement side (at the wellhead and the tank) • Monthly, Quarterly, Annual reports to KDHE • Check for pH, Chlorides, Temperature, and Conductivity on displacement side • Check for Chlorides, pH, Temperature, Conductivity, and density of fluid for emplacement

16. *Provided by SCS Aquaterra

24. Pre Approval Process • Process Knowledge Approval - Any material that originates from a chloride contaminated site or material from a drilling project (cuttings / mud / excess cement / etc. ). We only require a field test analysis for pH, temperature, conductivity, and chlorides. • Examples- Mud report, MSDS Sheets, or any other related documentation. • State Certified Lab Analysis Approval - Any material that originates from an unknown cleanup site. We require analysis on VOC’s, Heavy metals, TPH’s, TCLP’s, and PCB’s.

25. Pre Approval Process Forms • Form 25 - Material Acceptance Agreement • Form 100- Material Emplacement Permit Application • Form 200- Material Certification Statement • Form 300- Representative Sample Certification • Form 400- Beneficial Reuse Materials Manifest

26. Form 25

27. Form 100

28. Form 200

29. Form 300

30. Form 400

32. *Provided by SCS Aquaterra

33. *Provided by SCS Aquaterra

36. UCS, LLC would like to thank KDHE for the opportunity to present today.

37. Questions?