SUBJECT: Van Hook WMA Site Visit, Oil Release Investigation DATE PREPARED: December 14th & 17th

SITE VISIT DATE: December 14th COE PROJECT STAFF ONSITE: Ryan Newman, William Harlon NON-COE STAFF ONSITE: Mark Glaser, BLM & Kris Roberts, NDDH SITE VISIT RECORD: On December 13th, 2012, an oil well located in Mountrail County, North Dakota owned and operated by the Slawson Oil Company, experienced a blowout due to an equipment malfunction that resulted in the uncontrolled release of an undetermined (as of December 15th) amount of Bakken crude and salt water mixture. The high pressure event created a geyser of Bakken crude mixed with the salt water. Those on site indicated the geyser was approximately 40 50 foot high. Ryan Newman, Lake Manager and William Harlon, Environmental Specialist, arrived on site Friday morning at approximately 11:00 am, CST. Newman and Harlon met with Mr. Mark Glaser, Natural Resource Specialist for the Bureau of Land Management (BLM) and Mr. Kris Roberts, Environmental Geologist with the North Dakota Department of Health. Newman and Harlon indicated that the purpose of their visit was to conduct an inspection of COEadministered lands in the vicinity of the spill for the purpose of determining if impacts occurred to COE lands as a result of the uncontrolled release. Glaser and Roberts accompanied Newman and Harlon for a portion of the site visit. Mr. Roberts indicated some residue had made it onto COE lands adjacent to the well site. He indicated that approximately 1 inch of snow accumulated late on December 13th and into December 14th, covering the layer of Bakken crude. The conditions during the site visit were characterized by overcast skies, dense fog (app. 150 yards visibility) and cool temperatures (app. 12oF). The presence of a 1-inch snow layer and fog did not inhibit detection of Bakken crude. Crude was identified as yellow/orange layer of snow. This strata of crude/snow-mix ranged in thickness from 0.5 to 1 inch. The crude was further detected by odor and the oily film it left on clean notebook paper. Newman, Harlon, Roberts and Glaser walked the COE boundary at the site to determine the extent of the crude along the north-south line, at which point Mr. Glaser separated from the group and ultimately returned to his office. Newman, Harlon and Roberts continued to walk transects in an effort to determine the extent of the crude on COE lands. Site specific characteristics were geo-referenced and utilized as markers to identify the approximate perimeter of the area-of-impact. It was determined the crude extended approximately 6, 490 feet onto COE lands (measured northeast to southwest using Google Earth Pro and GIS). The crude extended

approximately 4,100 feet into Lake Sakakawea (i.e., 4,100 feet measured from the 1850 operating pool elevation). Approximately one half of the 4,100 feet was on ice. Crude was observed on snow, ice, bare ground, grass and trees (both deciduous and evergreen) during the site visit. The crude was visible as either a layer within the snow (as previously discussed) or a sheen on vegetation. The larger portion of the spill was localized around the well pad. Clean Harbors representatives were on site. They indicated that a profile had been made for waste disposal and the material was being hauled to their landfill in Sawyer, ND. Clean Harbors also indicated that they were not hired as a contractor by the responsible party to perform actual recovery and clean up of the spill to this point. There were a D8, excavator, motorgrader, multiple trucks, etc working together as a means to scrape oil, dirt, and snow from private lands into piles and load for disposal. It appeared the equipment had recently erected a secondary berm (outside of the well pad) on private property as a means to capture any overland flow that left the pad and headed towards the Reservoir. These activities were taking place approximately 2,000 feet from the COE boundary. COE personnel will be meeting with the State Health Department, the BLM, NDG&F (as the impacted area is a Wildlife Management Area leased to them), and Slawson (the well owner) onsite, December 18, 2012, to delineate the extent of the remediation area and to discuss the best methods for remediation. Following is the tentative remediation plan: 1) COE, NDGF, NDDoH, and Slawson will meet at 10AM Tuesday, December 18th to discuss/outline areas as listed below. 2) Immediate - Conifer and other mist-impacted trees will be sprayed with Ecobiotics (Enviroshield, Williston 701-774-1085 now and at spring warm-up). 3) Immediate - Back bay area south of the recreation area will have snow removed by 2 skidsteers with snow buckets. 4) Immediate - Drainage in 2 or 3 places before the lake will be stripped of vegetation (and vegetation disposed properly) and hay filters from round hay bales will be laid across the drainage to filter out any petroleum sheen that runs off during melting periods. 5) Immediate Produced water sample from Lunker2 will be collected and analyzed for hydro-fracking additives. 6) Immediate Samples will be collected from back bay and horseshoe bar snow for analysis of petroleum, formation water and hydro-fracking additives. 7) Spring Conifer and other mist impacted trees will be sprayed with Ecobiotics at warm up. 8) Spring Game and Fish will evaluate potential to conduct a prescribed burn of the grass land impacted. 9) April 1 - Soil samples will be collected from various areas, including the horseshoe bar where tern and plovers nest, and tested to assess effectiveness of remediation measures.

The following series of photos characterizes the extent of crude residue on vegetation and in the snow. (more pictures available)

PHOTO 1: COE Environmental Specialist, William Harlon, wiping residue from a cottonwood branch with notebook paper.

PHOTO 2: Photo showing crude residue on paper. Crude was distinguished from other materials by scent. In addition, the crude slightly penetrated and stained the paper whereas other materials transferred onto the paper remained on the surface. This technique was utilized multiple times during the site visit. Trees were tested in this manner starting at the northeast corner of COE lands and extending to the cottonwood skeletons located on the sandbar within the Reservoir. Crude residue was identified at each location. The amount of crude, however, decreased steadily from northeast to southwest.

PHOTO 3: Photo showing crude in footsteps. Crude made a compacted yellow/orange imprint when stepped on.

PHOTO 4: Another photo showing strata of crude in foot print. This photo taken at approximate 1850 elevation line.

PHOTO 5: Another photo showing strata of crude in foot print. This photo taken below 1850 elevation line.

PHOTO 6: COE Lake Manager, Ryan Newman, performing paper test on material along shoreline. Crude residue was detected.

PHOTO 7: Photo showing crude strata on snow adjacent to sand bar. Multiple crude stains are shown.

PHOTO 8: COE Environmental Specialist, William Harlon, standing on ice adjacent to sand bar. Crude staining on the snow is visible at this location.

PHOTO 9: Photo of crude strata on ice out on reservoir, southwest of sand bars.

PHOTO 10: Photo showing COE Environmental Specialist William Harlon examining tree on COE lands. Note the right side of the tree has frost formation and the left hand side does not. The blowout location is to the left (northeast) of this tree. Crude residue on trees in the area of impact precluded the formation of frost. The crude mist came from the northeast and subsequently coated the upwind side of the tree. The following two photos (11 & 12) illustrate this.

PHOTO 11: Close-up picture of tree identified in PHOTO 10. This photo is taken on the northeast side of the tree. The blowout location is to the northeast.

PHOTO 12: Close-up picture of tree identified in PHOTO 10. This is a photo of the southwest face of the tree. The blowout location is to the northeast of this tree.

PHOTO 13: Photo of trees on COE lands illustrating the lack of frost formation. Trees were paper-tested to confirm residue. Odor was distinct at this location.