ADEQARK A N S A SDepartment of Environmental Quality

August 16, 2011

Scott CrumpManager E & P ServicesQuantum Resources Management LLC, Nipper A-I & A-31401 McKinney Street, Suite 2400Houston, Texas 77010

RE: Application for RegistrationAFIN: 14-00734 Registration No.: 2258-A-REG315

Dear Mr. Crump:

The Department has reviewed your facilityJ s application for registration for the facility located atHWY 160 TO 19,T/S TO CR79,GO .4M,T/R GO.4M,T/R TO SITE, Taylor in ColumbiaCounty, Arkansas.

The Department has detennined that the information certified in the application fulfills therequired criteria for registration as specified in Arkansas Air Pollution Control Code (Regulation18), Section 18.315 and other applicable regulations. Your registration number has beenassigned as 2258-A-REG3I5.

This registration is your authority to construct, operate, and maintain the equipment and/orcontrol apparatus as set forth in your registration request received on July 27, 2011. QuantumResources Management LLC, Nipper A-I & A-3 is required to update this registration should thefacility operations or emissions change so that the current registration no longer reflects actualoperationsa

Please maintain a copy of this letter and the application at the facilitya

Sincerely,

Thomas RheaumePennit Branch Manager, Air Division

c: Compliance Monitoring

ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY5301 NORTHSHORE DRIVE / NORTH LITTLE ROCK / ARKANSAS 72118w5317 / TELEPHONE 501-682-0744 / FAX 501-682-0880

www.adeq.state.ar.us

a ENERCONExcellence-Every project. Every day.

July 22, 2011

Arkansas Department of Environmental QualityAir Permitting Section5301 Northshore DriveNorth Little Rock, AR 72118

RE: Registration for Oil and Gas Production FacilityNipper A-1 & A-3 Facility, Columbia County, Arkansas

Dear ADEQ Staff,

Please find enclosed a Registration Application for Nipper A-1 & A-3 Facility located in Columbia County,Arkansas. Quantum Resources Management (QUANTUM) is submitting this Registration pursuant to theArkansas Pollution Code Regulation 18.315 - Registration.

Per the submittal requirements in this application, QUANTUM is submitting a complete, original signedapplication package. Per the registration instructions in 18.315, we expect that ADEO will invoiceQUANTUM for the $200.00 annual fee once the registration is processed.

This property is owned by OR Energy a publicly traded company and as such does not require adisclosure statement. The information can be found on their annual report: http://phx.corporate­ir.neUExternal.File?item=UGFyZW50SUQ90TMwNjI8Q2hpbGRJRDOtMXxUeXBIPTM=&t=1

The following Sections are included in the application:

Attachment 1: ADEQ Registration FormAttachment 2: Location and Process DescriptionAttachment 3: Location MapAttachment 4: Process Flow DiagramAttachment 5: Emissions Summary and CalculationsAttachment 6: Representative Analytical Results -Mattie Peterson - 5/16/2011

Thank you for your assistance in this matter. Please contact me at 972-484-3854 if you have anyquestions regarding this submittal.

Sincerely,Enercon Services, Inc.

Rickie SalasProject Engineer

Cc: Patrick Navratil, Environmental Asset ManagementScott Crump, Quantum Resources Management

Claudine BendeckSenior Compliance Specialist

12700 Ford Road Suire 200 Dallas, TX 75234 972.484,3854 972.484.8835 enercon.com

Attachment 1ADEQ Registration Form

ADEQArkansas Department of Environmental Quality

AIR DIVISION

REGISTRATION FOR FACILITIES

REGULATION 18.315

March 2009

REGISTRATION FORM

AFIN I I DATE I IFACILITY PHYSICAL LOCATION

Facility Name Nipper A-I & A-3 IPhysical Address or

Section 16, Township 18S, Range 22WLocation

Physical City Taylor

Physical Zip 71861

UTMZone 15 I UTM Easting 472,581 UTM Northing 13 670 166(nearest meter) (nearest meter) , ,

NAICS Code211111 NAICS Description

Oil & Gas Exploration &Production

FACILITY AIR CONTACT

Contact First Name Scott

Contact Last Name Crump

Contact Position Manager E & P Services

Contact Mailing Address 1401 McKinney Street Suite 2400

Contact Mailing City Houston

Contact Mailing State Texas Contact Mailing Zip 77010

Contact Phone # (713) 452-2200 Contact FAX

Contact Email Address scrump@qracq.com

INVOICE MAILING ADDRESS

Organization Name Quantum Resources Management LLC

Invoice Contact First Name Scott

Invoice Contact Last Name Crump

Mailing Address 1401 McKinney Street, Suite 2400

Invoice Mailing State Texas Invoice Mailing Zip 77010

Invoice Contact Phone (713) 452-2200 Invoice Contact FAX

2

1. Organization Status of Applicant

Please check the box which appropriately describes the legal organization of the applicant.

Solely Owned Proprietorship 0 Corporation 0 Limited Partnership10

General Partnership D OTHER: ~ Please Specify: ILimited Liability Company

2. lfthe applicant is a corporation, indicate if it is a domestic (Arkansas) corporation or a foreign(chartered outside of Arkansas) corporation. Domestic D Foreign~

3. If the applicant is a corporation, is it currently registered to do business with the Arkansas Secretary ofState? Yes~ No D

4. Registration Information

New Facility 0 IExisting Facility ~

Existing Facility with an Air Permit D List Current Permit No. The permit will be voided with this registration.

Modification of Current Registration D List Current Registration No.

5. Attach a brief description of the facility, processes and sources of air pollution emissions.

6. What are the estimated total actual emissions from this facility?

Pollutant Tons/year

PM OTPY

PM lO 0.03 TPY

S02 OTPY

VOC 31.98 TPY

CO 0.29 TPY

NOx 0.34 TPY

Single HAP* OTPY

Combination HAP* OTPY

Air Contaminants** OTPY

HAP* - Hazardous Air Pollutant**Cannot exceed 25 tons per year

7. Attach an explanation of how the emissions estimate was detennined e.g. AP-42, test information, etc.

8. Has a Disclosure Statement been submitted to the Department previously? Yes D No ~(Ifno, please attach a disclosure statement)

9. Do you wish to be added the Air Pennits Newsletter email list? Yes D No ~If yes, list the email address(es) you wish to use:(or you can email usatAirPermits@adeq.state.ar.us with "subscribe" (no quotation marks) in the subjectbox.

3

10. The registration requires an annual fee of $200. The Department will send an invoice when the annualfee is due. Submit this Registration to:

Arkansas Department of Environmental QualityAir Permitting Section5301 Northshore DriveNorth Little Rock, AR 72118

4

CERTIFICATION OF APPLICATION"Responsible Official" means one of the following:

1) For a corporation: a president, secretary, treasurer, or vice-president of the corporation in charge of aprincipal business function, or any other person who performs similar policy or decision-makingfunctions for the corporation, or a duly authorized representative of such person if the representative isresponsible for the overall operation of one or more manufacturing, production, or operating facilitiesapplying for or subject to a permit and either:

A) the facilities employ more than 250 persons or have gross annual sales or expenditures exceeding$25 million (in second quarter 1990 dollars); or

B) the delegation of authority to such representative is approved in advance by the permittingauthority.

2) For a partnership or sole proprietorship: a general partner or the proprietor, respectively;

3) For a municipality, State, Federal, or other public agency: either a principal executive officer or rankingelected official. For the purposes of this part, a principal executive officer of a Federal agency includesthe chief executive officer having responsibility for the overall operations of a principal geographic unitof the agency (e.g., a Regional Administrator of EPA).

I certify under penalty of law that this application and all attachments were prepared under my direction or supervision inaccordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted.Based on my inquiry ofthe person or persons who manage the system, or those persons directly responsible for gathering theinformation, the information submitted is, to the best of my knowledge and belief: true, accurate, and complete. I am aware thatthere are significant penalties for submitting false information, including the possibility offine and imprisonment for knowingviolations.

Paul W. Geiger, III

Typed/printed name ofresponsible official

Vice President ofOperations

Title

Date

5

Attachment 2Location and Process Description

6

&Quantum ResourcesManagement, LLC

Location

Attachment 2: Location and Process DescriptionNipper A-1 &A-3, Columbia County, Arkansas

The site is located at Latitude 33° 10' 11.8" N, Longitude 93° 17' 38.7'" W in a rural areaof Columbia County, Arkansas.

From Taylor (the nearest town), the site is east on E Pine 81. toward N Hays Ave for 0.2miles, turn right on AR-160 E/E Pine 81. and travel east for 0.4 miles. From there, turnright onto AR-19 S and travel south for 436 f1. From there, take the first left ontoColumbia Rd 79 and travel east for 0.4 miles. From there take the first right and travelsouth for 0.4 miles. From there, take the first right and travel west for 0.1 miles. Arrive atsite at the end of the road.

Attachment 3 indicates the location of the Nipper A-1 &A-3 site.

Facility and Process Description

The equipment at the site consists of the following:

• 3- 400 barrel (bbl) oil storage tanks• 1- 400-bbl produced liquid storage tank! gun barrel• 1- Heater Treater• 1- Wellhead with an electric pump jack

Product is pumped from the wellhead using an electric pump jack and is routed to a

heater treater along with effluent product from Nipper A-3. From the heater treater gas

is directed off site to sales and all liquids are moved to a 400-bbl produced liquid

storage tank. The produced liquid storage tank is utilized as a Gun Barrel separator. Oilflows from the top of this tank into a 400-bbl oil storage tank and produced water isremoved from the bottom and sent to Nipper A-1 SWD. Two additional 400-bbl oilstorage tanks are used in series as overflow containers for the first. The site widethroughput of produced water is projected to be 111 bbl per day (bbl/day). The site wide

throughput of oil is projected to be 15.04 bbl/day. The site wide throughput of naturalgas is projected to be 15,000 cubic feet per day (15.00 MCFD). All liquid material is

trucked off-site to sales (oil) or disposal/injection (water).

Attachment 4 is a process flow diagram for the site.

12100 Ford Road Suire 200 Dallas, TX 75234 972.484.38547

972.484.8835 enercon.com

Attachment 3Location Map

8

Quantum Resources Management, LLCNipper A-1 and A-3

Sec. 16 - T188 - R21WN 33° 10' 11.8" I W 93° 17' 38.7"Taylor, Columbia County, AR

N

+E;;J ENERCON

Attachment 3Location Map

Macedonia Quadrangle

Project No: QRM010 9

Attachment 4Process Flow Diagram

10

From Nipper A-3

Fluids

GasTo Sales

"'0CI) L..o Q)::::J-"'O~e>a..

Produced Waterr-------------- ~ Produced Water toNipper A-1 SWD

r--------III Truck Loading AreaII IL I

* 400-bbl AST is utilized as a Gun Barrel separator. Oil flows fromthe top of this tank into OTK-1 and produced water is removed

from the bottom of this tank via truck loading activities.

Nipper A-1

F:::I ENERCONQuantum Resources Management, LLCNipper A-1 and A-3

Sec. 16 - T185 - R21WN 33° 10' 11.8" I W 93° 17' 38.7"Taylor, Columbia County, AR

GB - Gun BarrelHT - Heater TreaterOTK - Oil TankPWTK - Produced Water Tank

Legend: N

+Not to Scale

Attachment 4Process Flow Diagram

Project No: QRM010 11

Attachment 5Emissions Summary and Calculations

12

Attachment 5:

Site:

Emissions Summary and Calculations

Quantum Resources Management, LLC

Nipper A-1 &A-3 Columbia County, Arkansas

Emissions Summary - Potential Emission Rate

NOx CO voe PM10 HAPs HCHO 502

Emission Source Ib/hr TPY Ib/hr TPY Ib/hr TPY Ib/hr TPY Ib/hr TPY Ib/hr TPY Ib/hr TPY

LL-1, LL-2 16.80* 0.32

FLASH 6.11 26.76

OTK-1 0.17 0.73

OTK-2 0.17 0.73

OTK-3 0.17 0.73

GB-1 0.02 0.10

FUG-1 0.59 2.59

HT·1 0.08 0.34 0.07 0.29 0.004 0.019 0.01 0.03

Total 0.08 0.34 0.07 0.29 24.03 31.98 0.01 0.03 0.00 0.00 0.00 0.00 0.00 0.00

* This is the calculated maximum Ib/hr. based on loading factor of 8000 gal/hr (one average tank truck volume)

NOx - Nitrogen oxide

CO - Carbon monoxide

VOC - Volatile organic compoundsPM 10 - Particulate matter

HAP - Hazardous air pollutant

Ib/hr - pound per hour

TPY - tons per year

OTK- Oil tank

PWTK- Produced water tank

GB- Gun Barrel

HT- Heater Treater

FUG- Fugitive

COMP - Compressor

gal/hr - gallons per hour

13

Company Name:

Facility:

EPN:

Methodology:

Quantum Resources Management, LLC

Nipper A-1 & A-3

LL-1, LL-2The emissions are estimated using equation 1 from AP-42 Chapter 5.2, Transportation And Marketing Of PetroleumLiquids, Jan. 1995. Emissions are estimated conservatively

Liquid Loading #1 • Produced Water

Loading Loss Assumptions

Variable Value Unit Reference

S Submerged loading: dedicated normal service 0.6 AP-42, Table 5.2-1

AP-42 Figures 7.1-5,7.1-6, &TableP True vapor pressure of liquid loaded 0.5 psia 7.1-2

M Molecular weight of vapors 50 Ib/lb-mole AP-42, Table 7.1-2

T Temperature of bulk liquid 520 R (F+460) AP-42, 5.2-4

Equation Used: 12.46* (SPMfT)L Loading loss pound per 1000 gal of liquid loaded 0.10 Ib/10A 3 AP-42, 5.2-4

Emissions Factor Assumptions

Variable Value Unit Reference

A I Activity Rate 1,701,630.00 gallons/year Maximum ThroughputL I Loading Loss 0.10 Ib/1000 gal Calculated Above

Total Maximum Potential to EmitvacEmissions(Uncontrolled) Emissions Uncontrolled 0.09 TPY Equation Used: E=A*L*(1-(ER/100))

LL - Loading loss

14

Liquid Loading #2 - Produced Oil Loading

Loading Loss Assumptions

Variable Value Unit ReferenceS Submerged loading: dedicated normal service 0.6 AP-42, Table 5.2-1

AP-42 Figures 7.1-5,7.1-6, &TableP True vapor pressure of liquid loaded 2.8 psia 7.1-2

M Molecular weight of vapors 50 Ib/lb-mole AP-42, Table 7.1-2

T Temperature of bulk liquid 520 R (F+460) AP-42, 5.2-4

Equation Used: 12.46* (SPMfT)L Loading loss pound per 1000 gal of liquid loaded 2.00 Ib/10A3 AP-42, 5.2-4

Emissions Factor AssumptionsVariable Value Unit Reference

A I Activity Rate 230,563.20 gallons/year Maximum ThroughputL I Loading Loss 2 Ib/1000 gal Calculated Above

Total Maximum Potential to EmitvacEmissions(Uncontrolled) Emissions Uncontrolled 0.23 TPY Equation Used: E=A*L*(1-(ER/100»

Total Maximum Potential to Emit (Produced Water and Oil)vaeEmissions(Uncontrolled) Emissions Uncontrolled 0.32 TPY

a) Vapor pressure of water is 0.35 psia.

Produced water may contain small amounts of hydrocarbons.

Therefore, 0.5 psia was used for a conservative estimate of vapor pressure.

b) Separated oil parameters were obtained from representative sample analysis

psia - pounds per square inch absolute

Ib/lb-mole - pound per pound-mole

R - Rankine

E - emissions

ER- Emission Rate

F - Fahrenheit

15

Company Name:

Facility:

EPN:

Methodology:

Quantum Resources Management LLC

Nipper A-1 & A-3

LL-1, LL-2The emissions are estimated using equation 1 from AP-42 Chapter 5.2, Transportation And Marketing OfPetroleum Liquids, Jan. 1995. Factors for loading losses are based on the characteristics of oil found in AP-42with a factor of .10 (versus 2.0 for oil)

Liquid Loading No.1 (LL-1), Produced Water (Ib/hr)

Loading Loss Assumptions

Variable Value Unit Reference

Submerged loading: dedicated normalS service 0.6 AP-42, Table 5.2-1

AP-42 Figures 7.1-5,7.1-6, &p True vapor pressure of liquid loaded 0.5 psia Table 7.1-2

M Molecular weight of vapors 50 Ib/lb-mole AP-42, Table 7.1-2

T Temperature of bulk liquid 520 R (F+460) AP-42, 5.2-4

Loading loss pound per 1000 gal of Equation used: 12.46* (SPMIT)L liquid loaded 0.10 Ib/10A3 AP-42, 5.2-4

Emissions Factor AssumptionsVariable Value Unit Reference

A I Activity rate 8,000.00 gallons/hr Maximum throughputL I Loading loss 0.10 Ib/1000 gal Calculated above

Total Maximum Potential to Emitvac Emissions(uncontrolled)

LL - Loading loss

I Emissions uncontrolled I 0.8000 I Ib/hr IEqUation used: E=A*L*(1-(ER/10C

16

Liquid Loading No. 2 (LL.2), Produced Oil Loading (Ib/hr)Loading Loss Assumptions

Variable Value Unit Reference

Submerged loading: dedicated normalS service 0.6 AP-42, Table 5.2-1

P True vapor pressure of liquid loaded 2.8 psia Table 7.1-2

M Molecular weight of vapors 50 Ib/lb-mole AP-42, Table 7.1-2

T Temperature of bulk liquid 520 R (F+460) AP-42, 5.2-4

Loading loss pound per 1000 gal of Equation Used: 12~46* (SPMfT)L liquid loaded 2.00 Ib/10A3 AP-42 , 5.2-4

Emissions Factor Assumptions

Variable Value Unit Reference

A I Activity rate 8,000.00 gallons/hr Maximum throughput

L I Loading loss 2 Ib/1000 gal Calculated above

Total Maximum Potential to Emit

vae Emissions I(uncontrolled) Emissions uncontrolled I 16.00 I Ib/hr IEqUation used: E=A*L*(1-(ER/10C

a) Vapor pressure of water is 0.35 psia.

Produced water may contain small amounts of hydrocarbons.

Therefore, 0.5 psia was used for a conservative estimate of vapor pressure.

b) Separated oil parameters were obtained from representative sample analysis

psia - pounds per square inch absolute

Ib/lb-mole - pound per pound-mole

R - Rankine

F - Fahrenheit

17

Company Name: Quantum Resources Management LLC

Facility: Nipper A-1 & A-3

EPN: FLASH

Flash Emissions - Produced Oil

Total sample MOL WT 215.48

Base pressure: 14.65

Gas oil ratio (SCF/STbbl): 16.04

From Mattie Peterson analYSIS performed by SPL reported on 05/16/11 (attached)

Component Normalized (WT%) 1 Ib/lbmol IbsGas/STbbl

Nitrogen 0.017 0.03663 0.0015

Carbon dioxide 0.148 0.31891 0.0134Methane 0.030 0.06464 0.0027

Ethane 0.116 0.24996 0.0105

Propane 0.222 0.47837 0.0202

Isobutane 0.228 0.49130 0.0207

n-Butane 0.532 1.14636 0.0483

Isopentane 0.493 1.06233 0.0448

n-Pentane 0.882 1.90055 0.0801

I-Hexanes 0.389 0.83822 0.0353

n-Hexane 0.714 1.53854 0.0648

Benzene 0.002 0.00431 0.00022,2,4 Trimethylpentane 0.614 1.32306 0.0557

n-Heptanes 2.494 5.37412 0.2264

Toluene 0.134 0.28875 0.0122

n-Octane 3.150 6.78768 0.2860

Ethylbenzene 0.111 0.23919 0.0101

M-, 0-, P-Xylenes 0.677 1.45881 0.0615

n-Nonane 2.089 4.50142 0.1897

Decanes plus 86.958 187.37884 7.8947

Total 100.000 215.48200 9.07881 " ..

Produced Oil Flash EmissionsGas density (Ibs/cf) 0.566Production rate (bbl/day) 15.04

Total flash emissions (TPY) 24.919

WT% - weight percentageIbsGas/STbbl - pounds of gas per standard barrel

18

Flash Emissions - Produced Water

Total sample MOLWT 215.48

Base~ure: 14.65Gas oU ratio (SCF/STbbl): 16.04

Component Normalized (WT%) 1 Ibnbmol IbsGaslSTbbl

Nitrogen 0.017 0.03663 0.0015Carbon dioxide 0.148 0.31891 0.0134Methane 0.030 0.06464 0.0027

Ethane 0.116 0.24996 0.0105Propane 0.222 0.47837 0.0202

Isobutane 0.228 0.49129 0.0207

n-Butane 0.532 1.14635 0.0483

Isopentane 0.493 1.06232 0.0448

n-Pentane 0.882 1.90053 0.0801

I-Hexanes 0.389 0.83822 0.0353n-Hexane 0.714 1.53853 0.0648

Benzene 0.002 0.00431 0.0002

2,2,4 Trimethylpentane 0.614 1.32305 0.0557

n-Heptanes 2.494 5.37407 0.2264

Toluene 0.134 0.28874 0.0122

n-Octane 3.150 6.78762 0.2860

Ethylbenzene 0.111 0.23918 0.0101

M-, 0-, P-Xylenes 0.677 1.45880 0.0615

n-Nonane 2.089 4.50138 0.1897Decanes plus 86.958 187.37710 7.8947

Total 100.000 215.48000 9.0787

1 From "Mattie Peterson" analysis performed by SPL reported on 05/16/11 (attached)

Produced Water Flash Emissions

Gas density (lbs/cf) 0.042Production rate (bbl/day) 111

Total flash emissions (TPY) 1.839

Total Flash Emissions (Oil and Produced Water)

Total flash emissions (TPY) I 26.759

19

Company Name: Quantum Resources Management, LLC

Facility: Nipper A-1 & A-3

EPN: OTK-1

Total Maximum Potential to Emit (Working/Breathing)

Working and Working and Total TotalBreathing Breathing1 Number of Annua,1 Annual

Type Pollutant (TPV) (TPV) Tanks (#) (Ib/hr) (TPY)

ail (400-bbl) vae 0.17 0.73 3 0.50 2.20

Gun Barrel (400-bbl) vae 0.02 0.10 1 0.02 0.10Total vae 0.19 0.83 4 0.52 2.30

1Working and Breathing Losses are calculated using TANKS 4.09d

20

Company Name: Quantum Resources Management

Facility: Nipper A-1 & A-3

EPN: FUG-1Methodology: The emissions are estimated using fugitive emission factors specified in the TCEQ "Air Permit

Technical Guidance for Chemical Sources" Equipment Leak Fugitives, dated October 2000. Fugitivevalve, relief valve, and pump counts are conseratively estimated. Fugitive flange/connection count isestimated by multiplying the valve count by 2.5.

voe Emission estimates: It is conservatively assumed that all components are in Vapor Service. Allcomponents were adjusted for vac content in stream. A copy of the gas analysis for a similar inletgas is provided.

Emission Factor Number of voe Emissions H2S Emissions

Source Description (Ib/hr/comp) Components (Ib/hr) (tpy) (Ib/hr) (tpy)

Vapor Stream/GAS

System valves 0.00992 220 0.338 1.478 0.000 0.000

Relief valves 0.01940 4 0.012 0.053 0.000 0.000

Other 1 0.00441 12 0.008 0.036 0.000 0.000

Pumps 0.00529 a - - - -Flanges 0.00086 664 0.088 0.387 0.000 0.000

Compressors 0.01940 a - - - -Connections 0.00086 448 0.060 0.261 0.000 0.000

Open-ended Lines 0.00441 8 0.005 0.024 0.000 0.000

Oil Stream

System valves 0.00550 52 0.044 0.194 0.000 0.000

Relief valves 0.01650 4 0.010 0.045 0.000 0.000

Other 1 0.00309 8 0.004 0.017 0.000 0.000

Flanges 0.00024 304 0.011 0.050 0.000

Pumps 0.02866 0 - - - -Compressors 0.01650 a - - - -Connections 0.000243 112 0.004 0.018 0.000 0.000

Open-ended Lines 0.003090 8 0.004 0.017 0.000 0.000

21

Emission Factor Number of Estimated voe Emissions Estimated H25 Emissions

Source Description (Ib/hr/comp) Components (Ib/hr) (tpy) (Ib/hr) (tpy)

Gun Barrel/ProducedWater Stream

System valves 0.000216 8 0.000 0.001 0.000 0.000

Relief valves 0.0309 0 - - - -Other 1 0.0006 a - - - -

Flanges 0.0000 72 0.000 0.000 0.000 0.000Pumps 0.000052 0 - - - -

Compressors 0.0309 0 - - - -Connections 0.000860 16 0.002 0.009 0.000 0.000

Open-ended Lines 0.000550 4 0.000 0.001 0.000 0.000

TOTAL voe EMISSIONS 0.592 2.59 0.000 0.000

1: "Other" includes diaphragms, dump arms, hatches, instruments, meters, polished rods, and vents

Connectors estimated at 2.5 times the number of valves.

Assumptions: Gas vae (wt%):

H2S (wt%)

15.465%

0.001%

22

Site:

Facility:EPN:

Quantum Resources Management

Nipper A-1 &A-3

HT-1

Equipment InformationHour

Fuel Rate1 OperatedHeater Name Type Size (MMBTU/hr) (scf/hr) (hrs)

HT-1 Heater treater 0.8 784.314 8760

1Assume gas heat content is 1020 Btu/scf

Controlled Maximum Potential to EmitAnnual

Emission Factors Emissions EmissionsPollutant (lb/MMSCF) Reference (Ib/hr) (TPV)

NOx 100 AP-42, Table 1.4-1 , Small Boilers 0.08 0.34

CO 84 AP-42, Table 1.4-1, Small Boilers 0.07 0.29

vac 5.5 AP-42,Table 1.4-2 0.004 0.019

PM 7.6 AP-42,Table 1.4-2 0.01 0.03

MMBTU/hr - million British thermal units per hour

scf/hr - standard cubic feet per hour

Ib/MMSCF - pound per million standard cubic feet

Ibs/CF - pounds per cubic feet

bbl/day - barrels per day

Btu/sef - British thermal units per standard cubic foot

23

TANKS 4.0.9dEmissions Report - Summary Format

Tank Indentification and Physical Characteristics

Nipper A-1 &A-3 Gun BarrelTaylorArkansasQuantum ResourcesVertical Fixed Roof Tank

0.0012.00

20.0012.0020.0016.00

16,920.59114.19

1,932,193.20

Aluminum/DiffusePoorAluminum/DiffusePoor

N

Dome

IdentificationUser Identification:City:State:Company:Type of Tank:Description:

Tank DimensionsShell Height (tt):Diameter (tt):liquid Height (tt) :Avg. Liquid Height (tt):Volume (gallons):Turnovers:Net Throughput(gallyr):Is Tank Heated (y/n):

Paint CharacteristicsShell Color/Shade:Shell ConditionRoof Color/Shade:Roof Condition:

Roof CharacteristicsType:Height (ft)Radius (tt) (Dome Roof)

Breather Vent SettingsVacuum Settings (psig): -0.03Pressure Settings (psig) 0.03

Meterological Data used in Emissions Calculations: Little Rock, Arkansas (Avg Atmospheric Pressure = 14.62 psia)

TANKS 4.0.9d

Emissions Report - Summary Format

Liquid Contents of Storage Tank

Nipper A-1 &A·3 Gun Barrel • Vertical Fixed Roof TankTaylor, Arkansas

LiquidDaily Liquid Surf. Bulk Vapor Liquid Vapor

Temperature (deg F) Temp Vapor Pressure (psia) Mol. Mass Mass Mol. Basis for Vapor Pressure

Mixture/Component Month Avg. Min. Max.(deg Avg. Min. Max. Weight. Fract. Fract. Weight Calculations

F)

Gun Barrel Liquid All 71.14 60.46 81.81 64.81 0.4145 0.2912 0.5822 21.2255 20.22Crude oil (RVP 5) 3.5650 2.9041 4.3412 50.0000 0.1193 0.2361 207.00 Option 4: RVP=5Water 0.3774 0.2604 0.5379 18.0200 0.8807 0.7639 18.02 Option 2: A=8.1 0765, 8=1750.286, C=235

24

TANKS 4.0.9dEmissions Report - Summary Format

Individual Tank Emission Totals

Emissions Report for: Annual

Nipper A-1 &A·3 Gun Barrel • Vertical Fixed Roof TankTaylor, Arkansas

I 1 Losses(lbs)

!Components I Working Loss I Breathing Loss I Total Emissions

IGun Barrel Liquid I 173.80 I 26.891 200.69

IWater 1 132.761 20.541 153.31

ICrude oil (RVP 5) I 41.04 1 6.351 47.39

25

TANKS 4.0 Report

TANKS 4.0.9dEmissions Report - Summary Format

Tank Indentification and Physical Characteristics

IdentificationUser Identification:City:State:Company:Type of Tank:Description:

Tank DimensionsShell Height (tt):Diameter (tt):Liquid Height (tt) :Avg. Liquid Height (tt):Volume (gallons):Turnovers:Net Throughput(gallyr):Is Tank Heated (yIn):

Paint CharacteristicsShell Color/Shade:Shell ConditionRoof Color/Shade:Roof Condition:

Roof CharacteristicsType:Height (tt)Radius (tt) (Dome Roof)

Breather Vent SettingsVacuum Settings (psig):Pressure Settings (psig)

Nipper B-2 OilTaylorArkansasQuantum ResourcesVertical Fixed Roof Tank

20.0012.0020.0016.00

161920.596.04

102,251.10N

Gray/LightPoorGray/LightPoor

Dome0.00

12.00

·0.030.03

Meterological Data used in Emissions Calculations: Little Rock, Arkansas (Avg Atmospheric Pressure =14.62 psia)

TANKS 4.0.9d

Emissions Report - Summary FormatLiquid Contents of Storage Tank

Nipper B-2 Oil - Vertical Fixed Roof TankTaylor, Arkansas

Mol. Basis for Vapor Pressure

Weight CalculationsMixturefComponent

Crude oil (RVP 5)

LiquidDaily Liquid Surf. Bulk Vapor Liquid

Temperature (deg F) Temp Vapor Pressure (psia) Mol. Mass

Month Avg. Min. Max. (deg F) Avg. Min. Max. Weight. Fract.

All 70.40 60.23 80.58 64.51 3.5161 2.8909 4.2452 50.0000

VaporMass

Fract.

207.00 Option 4: RVP=5

TANKS 4.0.9dEmissions Report - Summary Format

Individual Tank Emission Totals

Emissions Report for: Annual

Nipper B-2 Oil - Vertical Fixed Roof TankTaylor, Arkansas

I II Losses(lbs) IIcomponents II Working LosslI Breathing Lossil Total Emissionsl

ICrUde oil (RVP 5) II 321.01\1 626.67/1 947.671

file:///CllProgram Files (x86)ffanks409d/surnmarydisplay.htm[7/1 l/201 1 II :09:29 AM]

26

Attachment 6Representative Analytical Results

Mattie Peterson 5/16/2011

27

Certificate of Analysis:

HOUSTON LABORATORIES8820 INTERCHANGE DRIVE

HOUSTON, TEXAS 77054PHONE (713) 660-0901

2011050117-004A

For: Claudine BendeckEnercon Services, Inc.12100 Ford Rd' l Ste. 200Dallas. Tx 75234

Company:Well:Field:Sample of:Conditions:Sampled by:Sample date:

Remarks:

Enercon Services, Inc.Mattie PetersonColumbia County. ARKLiquid62 psi @ 83 ofBB04/18/2011Cylinder No.: 5100

Report Date: 5/16/2011

Analysis: (GPA 2103M ) Mol. 0/0 MW Wt. 0/0 Sp. Gravity L.V.%Nitrogen 0.130 28.013 0.017 0.8094 0.017Methane 1.982 16.043 0.148 0.3000 0.400Carbon Dioxide 0.148 44.010 0.030 0.8180 0.030Ethane 0.833 30.070 0.116 0.3562 0.265Propane 1.086 44.097 0.222 0.5070 0.356Iso-butane 0.845 58.123 0.228 0.5629 0.329N-butane 1.971 58.123 0.532 0.5840 0.740Iso-pentane 1.473 72.150 0.493 0.6244 0.642N-pentane 2.634 72.150 0.882 0.6311 1.136i-Hexanes 0.972 86.177 0.389 0.6795 0.478n..Hexane 1.787 86.177 0.714 0.6640 0.8742,2,4 trimethylpentane 0.004 114.231 0.002 0.6967 0.002Benzene 1.693 78.114 0.614 0.8846 0.564Heptanes 5.449 93.766 2.494 0.7279 2.906Toluene 0.314 92.141 0.134 0.8719 0.125Octanes 6.073 110.799 3.150 0.7215 3.575E-benzene 0.226 106.167 0.111 0.8718 0.104M-,O-,P-xylene 1.373 106.167 0.677 0.8731 0.633Nonanes 3.621 118.773 2.089 0.7707 2.297Decanes Plus 67.386 278.067 86.958 0.8361 84.527

............... ,....,.....---- ...... _ ............... _ ..__~11111111-

_ .. _ .... IIIIIIr______~~ ...........

100.000 100.000 100.000

Calculated Values Total Sample Decanes PlusSpecific Gravity at 60 of 0.8128 0.8361Api Gravity at 60 of 42.596 37.729Molecular Weight 215.482 278.067Pounds per Gallon (in Vacuum) 6.776 6.971Pounds per Gallon (in Air) 6.769 6.964Cu. Ft. Vapor per Gallon @ 14.65 psia 11.897 9.544

~y~Southern Petroleum Laboratories, Inc.

28

CERTIFICATE OF ANALYSISCertificate of Analysis: 2011 050117-004A

HOUSTON LABORATORIES8820 INTERCHANGE DRIVE

HOUSTON, TEXAS 77054PHONE (713) 660·0901

Customer:Attn:

Enercon Services. Inc.

Claudine Bendeck

12100 Ford Rd., Ste. 200

Dallas, TX 75234

Report Date:

PO I Ref. No.:

05/16/11

Sample Point: Field Sep.

Company:Field:Well :

Enercon Services, Inc.

Columbia, Co. ARK

Mattie Peterson

Sample Of: Liquid

Sample Date/Time: 4/18/2011

Sample Psig & Temp: 62 psi @ 83 of

Sampled By: BB-SPL

Cylinder # : 5100

Comments: Staged Flash from 62 psi @ 83°F to 0 psi @ 60°F

Analytical DataLab Date

Parameters Results Units Method Tech. Analyzed

Shrinkage Factor 0.9920 Shrink-EOS CS 05/16/11

Flash Factor 16.039 CU.Ft.lSTBbl. Shrink-EOS CS 05/16/11

29

..,Uj....__..........__~__.,,? CERTIFICATE OF ANALYSIS

tertificate of Analysis: 2011050117-004A

HOUSTON LABORATORIES8820 INTERCHANGE DRIVE

HOUSTON. TEXAS 77054PHONE (713) 660~0901

Customer:Attn:

Enercon Services, Inc.

Claudine Bendeck

12100 Ford Rd., Ste. 200

Dallas, TX 75234

Report Date:

PO I Ref. No.:

05/16/11

Sample Of: Liquid

Sample Date/Time: 04/18/11

Sample Psig & Temp: 62 psi @ 83 of

Sampled By: BB-SPL

Cylinder # : 5100

Enercon Services, Inc.

Columbia, Co. ARK

Mattie Peterson

Sample Point: Field Sep.

Comments: EOS Flash Gas Composition

Staged Flash from 62 psi @ 83°F to apsi @ 60°F

Company:Field:Well:

NITROGENC02METHANEETHANEPROPANEI-BUTANEN·BUTANEI-PENTANEN-PENTANEHEXANESBENZENEHEPTANESTOLUENEOCTANESE-BENZENEm,o,&p-XYLENENONANESDECANES PLUS

TOTALS

MOL 0/04.7423.531

62.932

13.3306.2532.1363.6161.0031.3640.3970.2720.2340.0130.0790.0030.0140.0150.067

100.000

WEIGHT %

5.1426~015

39.08215.51610.673

4.8068.1362.8003.8111.2990.8230.8750.0480.3440.0130.0580.0710.488

100.000

GPM's @ 14.73

5.0112.2810.6561.1520.2750.3780.0970.0980.0510.0040.0160.0010.0040.0030.011

10.037

CALCULATED VALUES

REAL DRY BTU AT 14.73 PSIA, 60 DEG.FREAL WET BTU AT 14.73 PSIA, 60 DEG.FRELATIVE DENSITYCOMPRESSIBILITY FACTOR

GPM's @ 14.73 psia, 60 Deg.F

1372.61348.80.8957

0.99490C2+

10.037C5+

0.937

30

...miliiiiii... -~--.,., CERTIFICATE OF ANALYSIStertificate of Analysis: 2011050117-004A

HOUSTON LABORATORIES8820 INTERCHANGE DRIVE

HOUSTON I TEXAS 77054PHONE (713) 660-0901

EOS Liquid Residue Composition

Staged Flash from 62 psi @ 83°F to 0 psi @ 60°F

Customer:Attn:

Company:Field:Well:

Sample Point:Comments:

Enercon Services. Inc.

Claudine Bendeck

12100 Ford Rd., Ste. 200

Dallas, TX 75234

Enercon Services, Inc.

Columbia, Co. ARK

Mattie Peterson

Report Date: 05/16/11

PO I Ref. No.:

Sample Of: Liquid

Sample Date/Time: 4/18/11

Sample Psig & Temp: 62 psi @ 83 of

Sampled By: BB-SPL

Cylinder # : 5100

MOL% WEIGHT 0/0 LV°t'oNITROGEN 0.009 0.002 0.004CO2 0.387 0.039 0.095METHANE 0.059 0.017 0.015ETHANE 0.506 0.096 0.197PROPANE 0.951 0.266 0.383I-BUTANE 0.811 0.299 0.372N-BUTANE 1.928 0.710 0.918I-PENTANE 1.485 0.679 0.789N-PENTANE 2.667 1.220 1.405HEXANES 2.825 1.514 1.655BENZENE 1.730 0.857 0.706HEPTANES 5.586 3,421 3.607TOLUENE 0.322 0.188 0.156OCTANES 6.230 4.429 4.560E-BENZENE 0.232 0.156 0.130m,o,&p-XYLENE 1.409 0.948 0.779NONANES 3.715 2.984 3.003DECANES PLUS 69.148 82.175 81.226

TOTALS 100.000 100.000 100.000

CALCULATED VALUES TOTAL C10+

Molecular Weight 157.788 186.763BTU I Lb. 16,554 15,697BTU I Gal. 100,411 96,294Cu. Ft./ Gal. At 14.73 Psia, 60°F 14.555 12.436Lbs. I Gal. (Absolute Density) 6.066 6.135Lbs. J Gal. (Weight in Air) 6.058 6.127Specific Gravity at 60°F (Water =1) 0.7276 0.7358API Gravity at GO°F 63.0 60.8

31