KDHE Investigation. The Kansas Department of Health and Environment (“KDHE”) is investigating SemGroup facilities in Kansas to determine whether environment assessments are required. This process was triggered under a KDHE program (funded by a federal grant) to conduct environmental assessments at properties operated by companies in bankruptcy. The purpose of these assessments would be to determine whether there had been releases of hydrocarbons which may require remediation. KDHE has identified seven properties owned by SemCrude as potential candidates for environmental assessment. The seven properties currently listed are: ▇. ▇▇▇▇▇▇ Station ▇. ▇▇▇▇▇ Station ▇. ▇▇▇▇▇▇▇▇▇▇ Station ▇. ▇▇▇▇▇▇▇ Station e. Burrton Station ▇. ▇▇▇▇▇▇▇▇ Office g. El Dorado Truck Station (a/k/a ▇▇▇▇▇ Truck Station) However, SemCrude and KDHE are currently discussing whether some of these properties may be dropped from the list of sites to be investigated. At those sites which remain on the list after consultation with KDHE, assessments would be conducted, which would involve groundwater investigation. If contamination in excess of Kansas standards were found in the groundwater at any of these sites, remediation may be undertaken. KDHE has reserved the right to file claims in the SemGroup bankruptcy proceeding with respect to other properties.
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Sources: Credit Agreement (SemGroup Corp), Term Loan Credit Agreement (SemGroup Corp)