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Sorenson, Allen From: Sorenson, Allen Sent: Monday, October 16, 2000 5:00 PM To: Humphries, Bruce Cc: Mount, Carl Subject: American Soda, Release of Drilling Fluid to Piceance Creek On Friday, September 29, 2000 the drilling contractor installing an American Soda production well lost containment of approximately 15,000 gallons of fluid that was being circulated from one of the wells through a desilting pit. The pit had been installed on the cut side of the drill pad, but was found to be leaking though the ground and emerging at the toe of the pad. The flow followed a dry wash to Piceance Creek, and approximately 6000 gallons entered the creek before the leak was discovered. Once discovered, the remaining flow was collected (approximately 9000 gallons) in a temporary lined sump. A sample of the drilling fluid was collected, as was a sample from Piceance Creek below the release location. Results of the analyses will be provided to the Division once they are available. The fluid comprises well flushing water and drilling fluid including the additives Quik-Gel and Drispac Plus Polymer. American Soda has provided the MSDS sheets for these additives. American Soda notified the Division of this episode by telephone on Sept. 29 and by letter on Oct. 10. The Health Dept., the County, BLM, EPA, DOW, and NRCS were notified as were downstream landowners. American Soda has directed their contractors to line all existing and future drilling pits and to inspect and document each active pad at frequent intervals throughout each working shift. Any residues along the spill flow path are being removed, and any storm water from the flow path will be collected in the temporary sump until the removal action is complete. I believe that we should discuss a course of action for following up this reported spill as it relates to American Soda's reclamation permit. This discussion would include consideration of possible enforcement actions, the need to conduct an inspection related to the spill, coordination with other agencies, and acceptance or modification of the corrective actions proposed by American Soda. If we decide that the site must be inspected, the inspection date must be reconciled with the MLRB tour of the facility on Thursday, October 19 and the Division's policy to not inspect operations that have been subject to a recent tour.