X Regular Inspection Re-inspect: When Necessary Re-inspection System: Permit Number: 0481-WG-SW. Field: New London County: Union Basin: Ouachita

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Thomasina Cunningham
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1 Arkansas Dept. of Environmental Quality 3400 W. Hillsboro P.O. Box El Dorado, AR (870) Salt Water Disposal System Inspection Report AFIN: Cert. #: Type: Inspection Previous: August 27, 2001 X Regular Inspection Re-inspect: When Necessary Re-inspection System: Permit Number: 0481-WG-SW Field: New London County: Union Basin: Ouachita System Name: New London No. 2 SWD Location: Operator: Cornerstone Energy, LLC. Address: 5310 Red Oak El Dorado, AR Sec. 13, Twp. 18S, Rge. 12W N W Production Well Number Location Tank Battery Number BSWPD Frost No. 3, 4A, 6, 6-0, 7 12 & Ballard No. 1, King No King B-3, B King C Eudy No. 2, Pagan No. 3, E. Burgess No Firewalls: See Remarks Sign Posted: Yes, See Remarks Total BSWPD: 1817(?) SW Tank: O-Kay Injection PSI: Unknown Photos Attached: Yes Pits: Yes, See Remarks Size/ N / A Oil Spills: See Remarks Site Appearance: Good Inspector=s Remarks: Unidentified tank battery site observed with inadequate containment area. Workover pit adjacent to the New London No. 2 SWD well site needs to be properly cleaned and closed. Refined oil waste improperly discharged from the drum storage facility observed on the ground at the unplugged drain. Refined oil waste is considered a hazardous waste and needs to be properly cleaned and disposed. All drains need to be closed and plugged while unattended. Improper discharges must be discontinued immediately. System sign is posted; however, sign lists incorrect permit number and operator name is barely legible. Some facility sign were not observed or incomplete. Some production wells observed inactive or not located. An updated report on the operational status of this system is needed. Inspector=s Signature: Date: May 4, 2006 Rev. May 14, 2004 kom

Name: New London No. 2 SWD Location: Operator: Cornerstone Energy, LLC. Address: 5310 Red Oak El Dorado, AR 71730 Sec. 13, Twp. 18S, Rge. 12W N 33.15535 W 92.

2 May 4, 2006 Cornerstone Energy, LLC Red Oak El Dorado, AR RE: Permit No WG-SW, AFIN No New London No. 2 SWD System New London Field, Union County, AR Dear Mr. Thomas: On May 3, 2006, an inspection was performed on the above referenced SWD System in accordance with Department policy. It is determined that the system is not in compliance with the terms and conditions set forth in the above referenced permit. Specifically, the following was found: 1. System sign is posted but lists incorrect permit number and operator name is barely legible. Some facility signs were not observed or incomplete. Facility sign should list operator name and facility name. 2. An unidentified tank battery site lacks adequate secondary containment. Workover pit adjacent to the New London No. 2 SWD well site needs to be properly cleaned and closed. 3. Improper discharges of refined oil waste from the unplugged drain observed at the drum storage site. Refined oil waste is considered a hazardous waste and needs to be properly cleaned and disposed. This practice must be discontinued immediately. All drains need to be plugged and closed while unattended. 4. Some of the production wells were not located and some observed inactive. An updated report on the operational status of this entire system is needed. This office must be notified in writing no later than June 5, 2006 with an outline of your corrective actions. In addition, please be advised that this SWD System must be constructed, operated, and maintained as permitted. Routine maintenance and remediation must be performed as needed. Annual permit fees must also be current to maintain compliance. Sincerely, Connery Salter, Inspector, State Permits Branch - El Dorado cc: encl: Keith Brown, State Permits Branch - Little Rock pictures

It is determined that the system is not in compliance with the terms and conditions set forth in the above referenced permit. Specifically, the following was found: 1.

3 Arkansas Department of Environmental Quality Official Photograph Sheet Page 1 Subject: Cornerstone Energy, LLC New London No. 2 SWD Permit No WG-SW Location: S. 13, T. 18S, R. 12W New London Field Union County, AR Photographer: Connery Salter Time: 1108 The New London No. 2 SWD well site. Time: 1109 System sign is posted; however lists incorrect permit number and operator name is barely legible. Time: 1109 Workover pit adjacent to the New London No. 2 SWD well site needs to be properly cleaned and closed.

12W New London Field Union County, AR Photographer: Connery Salter Time: 1108 The New London No. 2 SWD well site.

4 Arkansas Department of Environmental Quality Official Photograph Sheet Page 2 Subject: Cornerstone Energy, LLC New London No. 2 SWD Permit No WG-SW Location: S. 13, T. 18S, R. 12W New London Field Union County, AR Photographer: Connery Salter Time: 1055 Frost tank battery site appears properly maintained. Time: 1057 Facility sign properly posted. Time: 1111 Frost No. 6 production well site appears adequately maintained.

12W New London Field Union County, AR Photographer: Connery Salter Time: 1055 Frost tank battery site

5 Arkansas Department of Environmental Quality Official Photograph Sheet Page 3 Subject: Cornerstone Energy, LLC New London No. 2 SWD Permit No WG-SW Location: S. 13, T. 18S, R. 12W New London Field Union County, AR Photographer: Connery Salter Time: 1048 Facility sign lacks operator name and other facilities lack signs. Time: 1109 Unidentified tank battery observed with inadequate containment area. Time: 1134 Drum storage facility observed with unplugged drain and refined oil waste improperly discharge on the ground. All drains need to be plugged and closed while unattended. Refined oil waste is considered to be hazardous waste. The refined oil waste needs to be properly cleaned and removed.

Time: 1109 Unidentified tank battery observed with inadequate containment area.

June 15, 2009. Kevin Hill, General Manager Turbine Support International 2513 Atlanta St. Blytheville, AR 72315

June 15, 2009. Kevin Hill, General Manager Turbine Support International 2513 Atlanta St. Blytheville, AR 72315 June 15, 2009 Kevin Hill, General Manager Turbine Support International 2513 Atlanta St. Blytheville, AR 72315 RE: Turbine Support International Storm Water AFIN: N/A NPDES Permit No.: No-Permit Dear Mr.