### epar :m :n of nv enmen- al m ectien

CERTI[F![ED MA~L NO. Mr. Phillip L. Stalnaker Cabot Oil & Gas Corp. 900 Lee Street East Suite 500 Huntington Square Charleston, WV 25301

Dear Mr. Stalnaker: 2 PuMic Square Wilkes-Barre, PA 18711-0790 July !4, 2009
570-826-2511 Fax 570-830-3016 NOTI[CE OF V][OLATION

Re: Permit No. 37-115-20051 Brooks #1H Springville Township, Susquehanna County

On June 18, 2009, I conducted an inspection of your Brooks #1H well operating on the property of John William & Wanda Brooks located in Springville Township, Susquehanna County. My inspection revealed the following violation of the Clean Streams Law of Pennsylvania, 35 P.S. {)691.1 et se%; the Solid Waste Management Act, 35 P.S. {) 6018.101 et se%; the Oil and Gas Act, 58 P.S. {) 601.101et se% and the rules and regulations promulgated under these statutes:
1. Management of residual waste. The investigation revealed an unpermitted discharge of residual waste onto the ground at the site. Specifically, stimulation fluids were released onto the ground surface without containment. This is a violation of Section 301 of the Solid Waste Management Act, 35 P.S § 6018.301, which provides: "No person or municipality shall store, transport, process, or dispose of residual waste within this Commonwealth unless such storage, or transpotation, is consistent with or such processing or disposal is authorized by the rules and regulations of the Department and no person or municipality shall own or operate a residual waste processing or disposal facility unless such person or municipality has first obtained a permit for such facility from the Depal~men~."

~!? Equal OpporI:unit~’ EmpI%~er Prin~ed on Recycled Paper



### HESI303037Mr. Phi!lip Lo Stalnaker July t4, 2009

2. Pits and tanks for temporalN containment. The investigation revealed that pollutional substances generated from activities associated with hydrofracturing were not contained at the wel! site. This is a violation of 25 PA Code § 78.56(a), which provides: "Except as provided in §§ 78.60(b) and 78.6I(b) (relating to discharge requirements; and disposal of drill cuttings), the operator shall contain pollutional substances and wastes from the drilling, altering, completing, recompleting, servicing and plugging the well, including brines, drill cuttings, drilling muds, oils, stimulation fluids, well treatmefit and servicing fluids, plugging and drilling fluids other than gases in a pit, tank or series of pits and tanks."
3. Unpermitted discharge of industrial waste. The investigation revealed an unpermitted discharge of industrial waste, specifically hydrofracturing fluids, occurred at this site. This is a violation of Section 307(a) of the Clean Streams Law, 35 P.S. §691.307(a), which provides: "No person or municipality shall discharge or permit the discharge of industrial wastes in any manner, directly or indirectly, into any of the waters of the Commonwealth unless such discharge is authorized by the rules and regulations of the [Department] or such person or municipality has first obtained a permit from the department." Such a discharge is also a violation of Chapter 78.57(a) of the Rules and Regulations of the Environmental Quality Board, 25 Pa. Code, §78.57(a) which provides in part: "Except as.allowed in this subchapter or otherwise approged by the Department, the operator ~ay_._not discharge brine and other fluids on or into the ground or into the waters of the Commonwealth." "
4. Unpermitted discharge of polluting substances. The investigation revealed that an unpermitted discharge of a polluting substance had occurred at this site. This is a violation of Section 401 of the Clean Streams. Law, 35 P.S. §691.401, which provides: "It shallbe unlawful for any person or municipality to put or place into any of the waters of the Commonwealth, or allow or permit to be discharged from property owned or occupied by such person into any waters of the Commonwealth, any substance of any kind or character resulting in pollution as herein defined."



### HESI303038Mr. Phitlip L. Stalnaker 3 - July 14, 2009

A violation of the Clean Streams Law or the rules and regulations promulgated thereunder is contrary to Section 602 and 611 of that Act, for which the Department could institute administrative, civil, and/or criminal proceedings. The Act provides for up to $10,000 per day in civil penalties, up to $10,000 per day in summary crimir~a! penalties, and up to $25,000 in misdemeanor criminal penalties for each violation. Each day of continued violation constitutes a separate offense. A violation of the Solid Waste Management Act or the rules or regulations promulgated thereunder is contrary to Sections 601 and 610 of that Act, for which the Department could institute administrative, civil, and/or criminal proceedings. The Act provides for up to $25,000 per day in civil penalties, up to $1,000 in summary criminal penalties, and up to $25,000 in misdemeanor criminal penalties for each violation. Each day of cont{nued violation constitutes a separate offense. A violation of the Oil and Gas Act or the rules or regulations promulgated thereunder is contrary to Sections 505 and 509 of that Act, for which the Department could institute administrative, civil, and/or criminal proceedings. The Act provides for up to $25,000 in civil penalties plus $1,000 for each day of continued violation, up to $300 in summary criminal penalties, and up to $5,000 in misdemeanor criminal penalties for each violation. Each day of continued violation constitutes a separate offense. Please provide a written response within 10 days receipt of this letter, as to when the above listed violations were or will be corrected, and what steps are being taken to prevent their recurrence. This Notice of Violation is neither an order nor any other final action of the Department of Environmental Protection. It neither imposes nor waives any enforcement action available to the Department under any of its statutes. If the Department determines that additional enforcement action is appropriate, you will be notified of the action. If you have any questions concerning the above, please contact me at (570) 826-2300. Sincerely,

Michael T. O’Donnell Water Quality Specialist Oil and Gas Management



### HESI303039Mr. Phillip L. Statr~aker July 14, 2009

bcc: J. Means, EPM J. Ryder, WQSS E. Cooley, CS M O’Dormell, WQS NCRO File MTO:sp WP: O3-9043.doc H(Ashare)P: 7/13/09; T(F):7/14/09



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