THIS ADMINISTRATIVE PENALTY ORDER IS ISSUED TO INLAND PRODUCTION CO. FOR FAILURE TO PREPARE AND IMPLEMENT AN SPCC PLAN. ALSO DURING AN INSPECTION ON OR ABOUT 9/16/99, THE FOLLOWING VIOLATIONS WERE IDENTIFIED: 1) NO SECONDARY CONTAINMENT FOR THE HEATER TREATER AND SEPARATOR AND 2) INADEQUATE SECONDARY CONTAINMENT FOR TWO 400 BARREL OIL STORAGE TANKS. THIS ORDER IS SUBJECT TO THE 22 RULE WHICH IS ENTERED INTO BY THE PARTIES FOR THE PURPOSE OF SIMULTANEOUSLY COMMENCING AND CONCLUDING THIS MATTER. THE PENALTY ASSESSED FOR THESE VIOLATIONS IS $8,500.