North Star Energy South Belridge, Kern County PROFILE PACKET For CLASS II INJECTION Table of Contents General Information about Southern California Waste Water (SCWW) D.O.G. Requirements on Profiling into NSE Criteria and Standards General Waste Acceptance Criteria Specific Wastes Acceptable (Exempt Waste) Specific Waste Not Acceptable (Non-Exempt Waste) Required Documents Profile Sheet Analytical Requirements Credit Application Payment Agreement 1 GENERAL INFORMATION About SOUTHERN CALIFORNIA WASTE WATER Southern California Waste Water (SCWW), formely known as Santa Clara Waste Water, is a California C-corporation. The company has been in operation since 1959. SCWW’s main office is located in Ventura County, west of Santa Paula, on Mission Rock Road at the Briggs Road exit off State Highway 126. The Class II injection well, owned and operated by Northstar Energy, is located at 1234 Contractor’s Road, Bakersfield CA 93307, just west of Highway 33 in the South Belridge Area. SCWW was established to provide an environmentally safe and legal means of treating, disposing and recycling of contaminated but non-hazardous waste, thus, preventing the disposal of these untreated wastes, into municipal sewer systems, the water supply, or the ocean. Class II fluids are normally transported to the facility via vacuum or tanker trucks. Upon arrival, the waste is inspected for acceptability in accordance with applicable regulations and compatibility for injection by the facility. SCWW currently provides service to over 30,000 generators. Over two billion gallons have been received and processed since 1959. 2 D.O.G. REQUIREMENTS on PERMITTING of PROFILES at North Star Energy 1. Waste must generated from a process approved for Class II injection. 2. Waste must be tested by certified laboratory. 3. Generator must complete the profile packet. 4. Generator must submit analysis and profile packet to SCWW. 5. SCWW will submit analysis to NSE, who will send the profile packet and a cover letter to the D.O.G. 6. D.O.G. will respond with approval, denial or incompleteness letter. 3 GENERAL WASTE ACCEPTANCE CRITERIA 1. Waste acceptable at Southern California Waste Water’s Kern County Facility: Fluids associated with oil and gas exploration and production operations. 2. Referred regulations governing generating waste processes and pollutant levels: In California, all Class II injection wells are regulated by the Department of Conservation, Division of Oil, Gas, and Geothermal Resources, under provisions of the state Public Resources Code and the federal Safe Drinking Water Act. Class II injection wells fall under the Division’s UIC program, which is monitored and audited by the U.S. Environmental Protection Agency. In 1983, the Division received EPA primary authority, primacy, to regulate Class II wells. The main features of the UIC program include permitting, inspection, enforcement, mechanical integrity testing, plugging and abandonment oversight, data management, and public research. 3. Referred documents which govern profiling and acceptance of waste: A. Profile Packet B. Generator Approval Letter from D.O.G. C. Non-hazardous Waste Manifest 4 Specific Wastes Accepted Non-Hazardous wastes from the following processes: A. Oil and Gas Exploration and production B. Drilling Fluids C. Drilling Cuttings D. Rigwash E. Drilling fluids and cuttings from offshore operations disposed onshore F. Geothermal production fluids G. Hydrogen sulfide abatement wastes from geothermal energy production H. Well completion, treatment, and stimulation fluids I. Basic sediment, water, and other tank bottoms from storage facilities that hold production and exempt waste J. Accumulated materials such as hydrocarbons, solids, sands, and emulsion from production separators, fluid treating vessels, and production impoundments K. Pit sludges and contaminated bottoms from storage or disposal of exempt wastes L. Gas plant dehydration wastes, including glycol-based compounds, glycol filters, and filter media, backwash, and molecular sieves M. Workover wastes N. Cooling tower blowdown O. Gas Plant sweetening wastes for sulfur removal, including amines, amine filters, amine filter media, backwash, precipitated amine sludge, iron sponge, and hydrogen sulfidescrubber liquid and sludge P. Spent filters, filter media, and backwash (assuming the filter itself is not hazardous and the residue in it is from an exempt waste stream) Q. Pipe scale, hydrocarbon solids, hydrates, and other deposits removed from piping and equipment prior to transportation R. Produced Sand S. Packing Fluids T. Hydrocarbon-bearing soil U. Pigging wastes from gathering lines V. Wastes from subsurface gas storage and retrieval, except for the non-exempt wastes W. Constituents removed from produced water before it is injected or otherwise disposed X. Liquid hydrocarbons removed from the production stream but not from oil refining Y. Gases from the production stream, such as hydrogen sulfide and carbon dioxide, and volatilized hydrocarbons Z. Materials ejected from a producing well during blowdown AA. Waste crude oil from primary field operations BB. Light Organics volatilized from exempt wastes in reserve pits, impoundments, or production equipment 5 Specific Waste Not Acceptable A. B. C. D. E. F. G. H. I. J. K. L. M. N. O. P. Q. R. S. T. U. V. W. Unused fracturing fluids or acids Gas plant cooling tower cleaning wastes Painting wastes Waste Solvents Oil and gas service company waste such as empty drums, drum rinsate, sandblast media, painting wastes, spent solvents, spilled chemicals, and waste acids Vacuum truck and drum rinsate from trucks and drums transporting or containing non-exempt waste Refinery wastes Liquid and solid wastes generated by crude oil and tank bottom reclaimers (see note) Used equipment lubricating oils Waste compressor oil, filters, and blowdown Used hydraulic fluids Waste in transportation pipeline related pits Caustic or acid cleaners Boiler cleaning wastes Boiler cleaning wastes Boiler refractory bricks Boiler scrubber fluids, sludges, and ash Incinerator ash Laboratory wastes Sanitary wastes Pesticide wastes Radioactive tracer wastes Drums, insulation, and miscellaneous solids Note: Although non E&P wastes generated from crude oil and tank bottom reclamation operations (e.g. waste equipment cleaning solvent) are non-exempt, residuals derived from exempt wastes (e.g. produced water separated from tank bottoms) are exempt. For a further discussion, see the Federal Register notice, Clarification of the Regulatory Determination for Waste from the Exploration, Development, and Production of Crude Oil, Natural Gas and Geothermal Energy, March 22, 1993, Federal Register Volume 58, Pages 15284 to 15287. 6 SOUTHERN CALIFORNIA WASTE WATER CLASS II INJECTION PROFILE SHEET Please fill in completely all areas. This is an application, not an approval. GENERATOR: ______________________________________________________ FACILITY ADDRESS: ______________________________________________________ MAILING ADDRESS: ______________________________________________________ TECHNICAL CONTACT: _________________________TITLE:______________________ TELEPHONE NUMBER: _________________________ Waste Type: ____________________________________ Quantity: ____________________________________ Well/Tank#: ____________________________________ Lease Name: ____________________________________ Generating Location County: ___________________________________ Generator’s Non-Hazardous Certification I hereby certify that the wastewater proposed to be processed at Northstar Energy located at 11234 Contractor’s Road in Bakersfield, California 93307, is non-hazardous according to criteria contained in Article 11 of Title 22, California Administrative Code. I hereby certify that the wastewater profiled herein is representative of materials to be delivered to the Northstar facility. Each load shall be accompanied by a non-hazardous waste manifest which certifies that the material contained there-in is non-hazardous. I hereby certify that the information provided is true, correct and complete to the best of my knowledge. AUTHORIZED AGENT SIGNATURE: __________________________________________ PRINTED NAME: __________________________________________ TITLE: __________________________________________ DATE: ___________________ 7 Analytical Requirements Generators are required to submit the following analytical results (tested by a state certified laboratory) with the profile: Parameter / Test Test Method Alkalinity (CaCO3) * Bicarbonate (CaCO3) * Carbonate (CaCO3) * Hydroxide (CaCO3) * pH Total Hardness * Chloride * Fluoride * Nitrate as N * Sulfate * Conductivity T.D.S. * Boron Calcium Iron Magnesium Potassium Sodium 310.1 310.1 310.1 310.1 150.1 130.2 300.0 340.1 300.0 300.0 120.1 160.1 6010 6010 6010 6010 6010 6010 * Sample analyzed as 1:10 soil water extract. Results reported based upon the original soil sample weight. Generators are also required to submit the following additional analytical results (tested by a state certified laboratory) with the profile if the waste stream contains solids: Title 22 Metals 8 SOUTHERN CALIFORNIA WASTE WATER CUSTOMER CREDIT APPLICATION CUSTOMER NAME:___________________________________________________________________ ADDRESS: ___________________________________________________________________ ___________________________________________________________________ PHONE NUMBER: ____________________________ DUN & BRAD #: ______________________ CONTACT: FED TAX ID #: ______________________ ____________________________ Usual Payment Terms: ________ Expected Purchases/Year: _______ Amount Applying for: _______ BANKING INFORMATION NAME OF BANK: ___________________________________________________________________________ ADDRESS: ___________________________________________________________________________ ___________________________________________________________________________ PHONE NUMBER: __________________________________ Bank Officer: ____________________________ VENDOR REFERENCES (3) VENDOR NAME: ___________________________________________________________________________ ADDRESS: ____________________________________________________________________________ PHONE NUMBER: ________________________________ CONTACT: _______________________________ VENDOR NAME: ___________________________________________________________________________ ADDRESS: ____________________________________________________________________________ PHONE NUMBER: ________________________________ CONTACT: _______________________________ VENDOR NAME: ___________________________________________________________________________ ADDRESS: ____________________________________________________________________________ PHONE NUMBER: ________________________________ CONTACT: _______________________________ I authorize Southern California Waste Water, its agents, and their employees to contact the above named references for credit verification. SIGNATURE: ________________________________________ DATE: ____________________________ PRINTED NAME: ________________________________________ TITLE: ___________________________ 9 SOUTHERN CALIFORNIA WASTE WATER PAYMENT AGREEMENT Page One Southern California Waste Water is a private corporation. There is no “right” to utilize our facilities and services for the off-loading of waste, except upon your agreement to abide by our rules, price schedules, and payment terms. All of our customers must agree to fully and accurately complete our Non-Hazardous Waste Profile Package. If a customer wishes to obtain credit and be billed, the customer must also fully and accurately complete our Customer Credit Application. All corporate and LLC accounts will require a personal guaranty. Customers who do not have approved Customer Credit Application on file must pay in full (by cash or check) upon each use of our facility and services. Credit-approved customer’ use of the facility and services of Southern California Waste Water will be invoiced twice-monthly. Invoices are due and payable upon receipt, but we grant a 30-day grace period from the invoice date within which we must receive payment. Invoices bear interest at 18% per annum (1½%) from the invoice date, but we will waive interest if payment in full is received during the 30 day grace period. When payment is received after the 30-day grace period interest will be assessed from the invoice date. We do not look at postmark dates; the date that matters to us is the date that we actually receive payment. If you are concerned that the mail is too slow or that your check may get lost in the mail, you should bring your payment to our office. If a check is received from you which does not clearly identify which invoice it pays, we will apply it to your earliest unpaid invoice. If any check is rejected by your bank, for any reason, (1) a penalty in the amount of $50.00 to cover our accounting and re-billing costs will be assessed, and (2) interest from the date of invoice, even if previously waived upon receipt of the dishonored check, will be assessed. We reserve the right to revoke credit for any customer at any time. We reserve the right to deny waste offloading to any customer at any time. We reserve the right to change our rules and our prices at any time. Credit customers whose accounts remain unpaid after 60 days can expect their off-loading privileges to be revoked. In the event an unpaid account is referred to collections or to an attorney for collection, the customer agrees to pay all reasonable costs incurred by us, including reasonable attorney’s fees, in connection with the collect effort. 10 SOUTHERN CALIFORNIA WASTE WATER PAYMENT AGREEMENT Page Two Our South Belridge facility is for Class II fluids wastes only. You are notified that Southern California Waste Water will incur substantial costs should you off-load non permitted waste, and you hereby agree, and the guarantor guarantees, that you will indemnify us for any and all costs, including but not limited to site remediation and loss of business, we incur in connection with the cleanup of unpermitted wastes offloaded by you at our facility or spilled on our premises. Corporations: LLC’s: Partnerships: This payment agreement must be signed by a corporate officer. This payment agreement must be signed by a Member-Manager. This payment agreement must be signed by a partner. CUSTOMER: On Behalf of the Customer listed to the left, __________________________________________ agree to this Payment Agreement __________________________________________ By:__________________________________ __________________________________________ Printed Name:_________________________ Title:________________________________ Date: _______________________________ GAURANTOR: I guaranty the Customer’s financial obligations __________________________________________ under this Payment Agreement: __________________________________________ By:__________________________________ __________________________________________ Printed Name:_________________________ Title:________________________________ Date: ________________________________ 11 Profile Cover Sheet TO: WITH: FAX: Mr. Richard Thesken DOGGR 661-861-0279 FROM: WITH: FAX: DATE: RE: Charles Mundy SCWW 805-525-1756 Number of Pages: (including this cover) Class II Disposal Approval Southern California Waste Water, in conjunction with Northstar Energy Ltd, hereby requests, that Division review for approval, the following Class II fluids for disposal in the “Northstar Energy” 3-24 WD well: Generator Name: Mailing Address: Type of Waste: Quantity: Well/Tank #: Lease Name: Generating County: Profile Number: Analytical is attached. Thank you for your consideration to this request. Charles R. Mundy Vice President / General Manager SCWW 12 13