tceq-vcp-application-cover-letter.docx

1016-00006 · Dunmore Energy Holdings · Regulatory

tceq-vcp-application-cover-letter.docx DOCUMENT M&A / Corporate

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CALDERWOOD & HARKNESS LLP Attorneys at Law 1200 McKinney Street, Suite 4100 Houston, Texas 77010 Telephone: (713) 554-8200 Facsimile: (713) 554-8201 www.calderwoodharkness.com

June 25, 2025

VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED AND OVERNIGHT DELIVERY

Texas Commission on Environmental Quality Voluntary Cleanup Program Section Remediation Division, MC-221 P.O. Box 13087 Austin, Texas 78711-3087

Re: Voluntary Cleanup Program Application — Dunmore Wharton Terminal Site, 14200 FM 1301, Wharton, Wharton County, Texas 77488; Tax Parcel ID WC-0241-0034

Firm Matter No.: 1016-00006

Dear VCP Program Administrator:

This letter is submitted on behalf of the applicant, Dunmore Energy Holdings Ltd. ("DEH"), a Cayman Islands exempted company (Registration No. MC-318574), with its registered office and principal headquarters located at 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman, KY1-1002, Cayman Islands. Calderwood & Harkness LLP serves as outside counsel to DEH in connection with the voluntary investigation and remediation of the above-referenced property, commonly known as the Dunmore Wharton Terminal (the "Site"). The purpose of this letter is to transmit the enclosed VCP application materials and the accompanying application fee in the amount of One Thousand Dollars ($1,000.00) for acceptance of the Site into the Texas Commission on Environmental Quality ("TCEQ") Voluntary Cleanup Program ("VCP") pursuant to Texas Health & Safety Code, Chapter 361, Subchapter S, §§ 361.601–361.613, and the implementing regulations at 30 Texas Administrative Code Chapter 333. We respectfully request that TCEQ review these materials and, upon acceptance, assign a VCP tracking number for the Site so that the remediation process may proceed in an orderly and timely fashion.

The sections that follow provide a comprehensive summary of the applicant, the Site, the operational history, the known contamination, the proposed remedial approach, and the financial capability of the applicant, together with a list of all enclosed materials. We trust that the information provided herein, supplemented by the enclosed exhibits, will be sufficient for TCEQ to evaluate and accept this application.

1. Identification of Applicant

The applicant in this VCP matter is Dunmore Energy Holdings Ltd. ("DEH"), a Cayman Islands exempted company, Registration No. MC-318574, with its principal headquarters at 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman, KY1-1002, Cayman Islands.

DEH is the successor-in-interest to Dunmore Terminal Services, Inc. ("DTS"), a Texas corporation formerly in good standing with the Texas Secretary of State, bearing Employer Identification Number 76-0384291. DTS formerly owned and operated the Dunmore Wharton Terminal from 1974 through 2015, during which time it conducted petroleum bulk-storage and distribution operations at the Site. Following the cessation of terminal operations in 2015 and the disconnection of pipeline interconnects in 2016, DTS's board of directors authorized the winding down and dissolution of the corporation.

On October 15, 2017, DTS executed a Plan of Dissolution and Assignment of Liabilities (a copy of which is enclosed as Exhibit 10), pursuant to which all of DTS's outstanding liabilities—including, without limitation, all environmental obligations, investigation and remediation responsibilities, and regulatory compliance duties relating to the Site—were assumed in full by DEH. DTS was formally dissolved with the Texas Secretary of State effective December 31, 2017, and a certificate of dissolution was issued on that date (enclosed as Exhibit 11). By virtue of the foregoing succession, DEH stands in the shoes of DTS with respect to all environmental matters arising from the historical operations at the Site and is the appropriate party to pursue voluntary remediation through the VCP.

DEH's principal contact for this matter is Gavin Rourke, Chairman and Chief Executive Officer, who may be reached at DEH's Cayman Islands headquarters address noted above. However, for purposes of this VCP application and all subsequent correspondence, notices, and communications from TCEQ regarding this matter, we respectfully request that all such correspondence be directed to the undersigned legal counsel:

Cynthia Ho Calderwood & Harkness LLP 1200 McKinney Street, Suite 4100 Houston, Texas 77010 Telephone: (713) 554-8200

Email: cho@calderwoodharkness.com

2. Site Description

The Site that is the subject of this VCP application is described as follows:

Common Name: Dunmore Wharton Terminal

Physical Address: 14200 FM 1301, Wharton, Wharton County, Texas 77488

Tax Parcel Identification Number: WC-0241-0034

Legal Description: A 48.7-acre tract being Lots 3 and 4 of the H.T. & B.R.R. Survey, Abstract No. 241, Wharton County, Texas, as more particularly described in that certain deed recorded at Volume 1892, Page 417, Official Public Records of Wharton County, Texas.

Acreage: Approximately 48.7 acres.

Current Zoning Designation: Heavy Industrial (HI) per Wharton County regulations. The Site is located in an unincorporated area of Wharton County and is not within the corporate limits or extraterritorial jurisdiction of the City of Wharton.

The Site is improved with the following principal structures and facilities, all of which are currently inactive and non-operational:

• Northern Tank Farm: Twelve (12) aboveground storage tanks ("ASTs"), designated Tanks N-1 through N-12, with a combined total storage capacity of approximately 420,000 barrels. These tanks were formerly used for the bulk storage of gasoline, diesel fuel, and other refined petroleum products.

• Southern Tank Farm: Twelve (12) aboveground storage tanks, designated Tanks S-1 through S-12, with a combined total storage capacity of approximately 315,000 barrels. These tanks were similarly used for bulk petroleum storage and were co-operated by Rowan Creek Fuel Distributors, Inc. from 1991 through 2010, as further described in Section 3 below.

• Truck Loading Rack: A truck loading rack facility located in the central portion of the Site, which was decommissioned in 2015 upon the cessation of terminal operations.

• Pipeline Interconnects: Pipeline interconnects formerly connecting the Site to the Colonial Pipeline right-of-way, which were disconnected and capped in 2016.

• Administrative Building: An abandoned single-story administrative building of approximately 4,500 square feet, located near the main entrance to the Site from FM 1301.

The current fee owner of the Site is Calera Properties Group LLC ("CPG"), a Texas limited liability company, Employer Identification Number 84-3207156, with its principal office at 2900 Woodlands Parkway, Suite 310, The Woodlands, Texas 77381. CPG is managed by Rebecca Strand, its Managing Member. CPG acquired the Site at a Wharton County tax foreclosure sale conducted in March 2019, at which time CPG paid a purchase price of $612,000. Since acquiring the Site, CPG has made no operational use of the property, has not conducted any petroleum storage or distribution activities, and has not contributed to or exacerbated the contamination at the Site. CPG is not a responsible party for the environmental conditions described herein.

DEH is not the current fee owner of the Site. Rather, DEH is the party that bears responsibility for the contamination as the successor-in-interest to the former operator, DTS, and DEH is voluntarily undertaking the remediation of the Site through the VCP. The arrangements between DEH and CPG for Site access are described in Section 8 below.

3. Operational History

The following is a summary of the operational history of the Dunmore Wharton Terminal, as documented in the enclosed Phase I Environmental Site Assessment and as supplemented by corporate records of the applicant:

Dunmore Terminal Services, Inc. commenced petroleum bulk-storage terminal operations at the Site in 1974. The facility was designed and constructed as a petroleum products receiving, storage, and distribution terminal, receiving refined products by pipeline from the Colonial Pipeline system and distributing them via truck loading rack operations throughout the Gulf Coast region of Texas. Throughout its operating life, the terminal handled gasoline (including leaded and unleaded grades), diesel fuel (No. 1 and No. 2), kerosene, and other refined petroleum products.

In 1991, DTS entered into a Joint Operating Agreement ("JOA") with Rowan Creek Fuel Distributors, Inc. ("RCFD"), a Texas corporation, Employer Identification Number 74-2951683, with its principal office at 1150 Lavaca Street, Suite 600, Austin, Texas 78701. Under the JOA, RCFD was granted the right to co-operate the southern tank farm, comprising Tanks S-1 through S-12 and occupying approximately 18 acres of the southern portion of the Site. RCFD operated the southern tank farm under the terms of the JOA from 1991 through 2010, during which time RCFD maintained its own personnel, conducted its own product handling and distribution operations, and bore responsibility for the maintenance and environmental compliance of the southern tank farm. The JOA was terminated effective December 31, 2010, at which time RCFD ceased all operations at the Site and vacated the southern tank farm.

Following RCFD's departure, DTS continued to operate the northern tank farm and the common areas of the Site, including the truck loading rack and pipeline interconnects, until 2015, when all terminal operations at the Site were permanently ceased. The pipeline interconnects to the Colonial Pipeline right-of-way were physically disconnected and capped in 2016. DTS subsequently initiated dissolution proceedings, executing the Plan of Dissolution and Assignment of Liabilities on October 15, 2017, under which all environmental liabilities relating to the Site were assigned to and assumed by DEH. DTS was formally dissolved with the Texas Secretary of State effective December 31, 2017.

Since the cessation of operations, the Site has remained idle and unoccupied, with no active industrial or commercial activities taking place on the property.

4. Summary of Known Contamination and Release History

4.1 Documented Releases

Based on TCEQ records, the Phase I and Phase II Environmental Site Assessments prepared by Pinehill Environmental Consulting LLC, and the corporate records of DTS and DEH, the following releases of petroleum products have been documented at the Site:

(a) 1996 Release. Approximately 8,000 gallons of diesel fuel were released from Tank S-4, located in the southern tank farm. At the time of this release, Tank S-4 was operated by RCFD under the Joint Operating Agreement. The release was reported to TCEQ at the time it occurred, and a partial cleanup was performed. However, based on the Phase II ESA findings, residual contamination from this release remains in the subsurface.

(b) 2001 Release. Approximately 3,200 gallons of gasoline were released from Tank S-7, also located in the southern tank farm and operated by RCFD. This release was assigned TCEQ Incident No. 142876. The gasoline release is a significant contributor to the dissolved benzene plume described in Section 4.4 below.

(c) 2003 Release. Approximately 1,500 gallons of gasoline were released from Tank N-3, located in the northern tank farm. This release occurred during DTS's operation of the northern tank farm and was assigned TCEQ Incident No. 158432. Soil contamination from this release has been delineated and is included in the northern tank farm remediation scope.

(d) 2008 Release. Approximately 5,600 gallons of diesel fuel were released from Tank S-11, located in the southern tank farm and operated by RCFD. This release was assigned TCEQ Incident No. 197503. The 2008 release is the largest documented diesel release at the Site and resulted in significant soil and groundwater impacts in the southeastern portion of the southern tank farm.

(e) 2014 Release. Approximately 600 gallons of diesel fuel were released from the truck loading rack area, which was operated by DTS. This release was assigned TCEQ Incident No. 251044. Although the volume of this release was comparatively smaller, it contributed to petroleum contamination in the central portion of the Site.

In total, the five documented releases account for the release of approximately 18,900 gallons of petroleum products at the Site over a period of nearly two decades.

4.2 Contaminants of Concern

Based on the analytical results from the Phase II Environmental Site Assessment and the documented release history, the following contaminants of concern ("COCs") have been identified at the Site:

• Benzene, toluene, ethylbenzene, and xylenes ("BTEX"), which are characteristic constituents of gasoline and other light petroleum products;

• Total petroleum hydrocarbons ("TPH"), reflecting the broader range of petroleum-derived compounds present in soil and groundwater;

• Methyl tert-butyl ether ("MTBE"), a fuel oxygenate formerly used as an additive in gasoline products; and

• Dissolved-phase lead, likely associated with historical releases of leaded gasoline products during the earlier years of the terminal's operation.

4.3 Soil Contamination Summary

The Phase II Environmental Site Assessment identified significant petroleum hydrocarbon contamination in soils across both the northern and southern tank farms. The principal findings are as follows:

• In the southern tank farm, total petroleum hydrocarbon concentrations were detected at levels up to 14,200 milligrams per kilogram (mg/kg) in soils adjacent to Tank S-7. This area corresponds to the location of the 2001 gasoline release and is the most heavily impacted area of soil contamination at the Site.

• In the northern tank farm, TPH concentrations were detected at levels up to 8,750 mg/kg in soils in the vicinity of Tank N-3, corresponding to the 2003 gasoline release.

• Benzene was detected in soil at concentrations up to 42 mg/kg. This concentration significantly exceeds both the TCEQ Tier 1 Protective Concentration Level ("PCL") for residential land use of 1.8 mg/kg and the Tier 1 PCL for commercial/industrial land use of 5.3 mg/kg, as established under the TCEQ Texas Risk Reduction Program ("TRRP") at 30 Texas Administrative Code Chapter 350.

The full lateral and vertical extent of soil contamination has been delineated through the Phase II investigation and will be presented in detail in the forthcoming Affected Property Assessment Report.

4.4 Groundwater Contamination Summary

Groundwater beneath the Site is present in the Chicot Aquifer (shallow zone), which was encountered during the Phase II investigation at a depth of approximately 22 feet below ground surface ("bgs"). Groundwater monitoring wells installed as part of the Phase II ESA have delineated a significant dissolved-phase contaminant plume extending from the Site. The principal findings regarding groundwater contamination are as follows:

• A dissolved benzene plume has been delineated extending approximately 2,400 feet downgradient (in a south-southwest direction) from the southern tank farm. The plume originates primarily from the areas of the 2001 and 2008 releases.

• The maximum dissolved benzene concentration detected in groundwater was 3.8 milligrams per liter (mg/L), which is approximately 760 times the federal Maximum Contaminant Level ("MCL") of 0.005 mg/L established under the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., and 40 C.F.R. Part 141.

• Methyl tert-butyl ether was detected in groundwater at concentrations up to 1.2 mg/L, consistent with the historical use of MTBE-containing gasoline products at the terminal.

• Dissolved-phase lead was detected in groundwater at concentrations up to 0.087 mg/L, which exceeds the federal MCL action level for lead of 0.015 mg/L.

4.5 Nearest Receptor

The nearest known residential receptor to the dissolved benzene plume is a private water well located at 16405 FM 1301, Wharton County, Texas (the "Ingram Property"). The Ingram Property is situated approximately 3,100 feet south-southwest of the current leading edge of the dissolved benzene plume in the downgradient direction.

In February 2025, at the direction of DEH, Pinehill Environmental Consulting LLC collected a groundwater sample from the Ingram Property private water well. The analytical results indicated that no contaminants of concern were detected above their respective MCLs as of the date of sampling. Notwithstanding these results, DEH recognizes the importance of continued monitoring of this receptor and has included ongoing receptor well monitoring as a component of the proposed remediation program. DEH will continue to monitor the Ingram Property well on a quarterly basis throughout the remediation period to ensure the protection of human health and the environment.

5. Environmental Assessments Performed

In January 2024, DEH retained Pinehill Environmental Consulting LLC ("Pinehill"), a Texas limited liability company with offices at 9330 Kirby Drive, Suite 240, Houston, Texas 77054, to conduct comprehensive environmental investigations at the Site. Pinehill's Principal-in-Charge for this engagement is Dr. Lena Vasquez, P.E., P.G., a licensed Professional Engineer and Professional Geoscientist in the State of Texas, who has directed all field investigation and reporting activities.

The following environmental assessments have been completed to date:

Phase I Environmental Site Assessment. Pinehill commenced the Phase I ESA in January 2024 in accordance with ASTM Standard E1527-21, Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process. The Phase I ESA identified recognized environmental conditions ("RECs") at the Site associated with the historical petroleum storage and distribution operations, the documented release history summarized in Section 4.1 above, and the presence of residual petroleum product infrastructure. The Phase I ESA also identified the potential for undocumented releases given the duration and nature of terminal operations. An executive summary of the Phase I ESA report is enclosed as Exhibit 6.

Phase II Environmental Site Assessment. Based on the RECs identified in the Phase I ESA, Pinehill conducted a Phase II ESA to delineate the nature and extent of contamination at the Site. The Phase II investigation was completed in June 2024 and involved the advancement of soil borings, the installation of groundwater monitoring wells, and the collection and laboratory analysis of soil and groundwater samples from across the Site. The Phase II ESA confirmed and delineated the soil and groundwater contamination summarized in Sections 4.3 and 4.4 above. An executive summary of the Phase II ESA report is enclosed as Exhibit 7.

In addition to the Phase I and Phase II assessments, Pinehill prepared a remediation cost estimate dated April 2025, which estimates the total cost of remediation at the Site at approximately $9.74 million, with a projected range of $7.81 million to $12.18 million depending on the actual conditions encountered during active remediation and the duration of long-term groundwater monitoring. The cost estimate is summarized in Section 6 below.

6. Proposed Remedial Approach (Summary)

DEH intends to pursue a comprehensive remediation strategy for the Site that addresses both soil and groundwater contamination and provides for long-term monitoring and institutional controls to ensure the protection of human health and the environment. The proposed remedial approach, as developed by Pinehill Environmental Consulting LLC in coordination with DEH and Calderwood & Harkness LLP, is summarized below, together with estimated costs for each component:

(a) Soil Excavation and Off-Site Disposal — Southern Tank Farm. Contaminated soils in the southern tank farm, including the areas surrounding Tanks S-4, S-7, and S-11 where the most significant soil impacts have been documented, will be excavated and transported to a permitted disposal facility for treatment and/or disposal. Estimated cost: $3,420,000.

(b) Soil Excavation and Off-Site Disposal — Northern Tank Farm. Contaminated soils in the northern tank farm, including the area surrounding Tank N-3, will similarly be excavated and disposed of off-site at a permitted facility. Estimated cost: $1,870,000.

(c) In-Situ Groundwater Treatment. The dissolved-phase groundwater contamination plume will be addressed through a combination of in-situ chemical oxidation ("ISCO") and enhanced bioremediation techniques. ISCO injections are proposed for the source area and the most concentrated portions of the plume, while enhanced bioremediation will be implemented in the distal portions of the plume to accelerate natural attenuation processes. Estimated cost: $2,150,000.

(d) Long-Term Groundwater Monitoring. Following the completion of active remediation, DEH will implement a long-term groundwater monitoring program to confirm the effectiveness of the remedial actions and to verify that contaminant concentrations are trending toward compliance with applicable TCEQ standards. Monitoring is anticipated to be conducted quarterly over an estimated 8-year period, comprising a total of 32 monitoring events at an estimated cost of approximately $33,125 per event. Estimated total cost: $1,060,000.

(e) Institutional Controls and Deed Restrictions. Upon completion of the remediation and confirmation of compliance with applicable risk-based standards, DEH will implement institutional controls in the form of a restrictive covenant and deed restriction to be recorded against the property in the Official Public Records of Wharton County, Texas. The deed restriction will restrict the use of the Site to commercial and industrial purposes and will prohibit the installation of water supply wells into the Chicot Aquifer shallow zone on or beneath the Site. Estimated cost for preparation, negotiation, and recording of institutional controls: $180,000.

(f) Project Management, Reporting, and Regulatory Liaison. This component includes overall project management by Pinehill, preparation of all required TCEQ reports and submittals (including the APAR, the Voluntary Cleanup Work Plan, progress reports, and the final Response Action Completion Report), and ongoing coordination with TCEQ VCP staff throughout the project. Estimated cost: $1,060,000.

The total estimated cost of remediation across all components is $9,740,000.

DEH has developed the following target schedule for the VCP process:

DEH anticipates that upon successful completion of the VCP process and receipt of a Certificate of Completion from TCEQ, the institutional controls described above will be recorded against the Site, restricting the property to commercial/industrial use and prohibiting water well installation into the Chicot Aquifer shallow zone. The institutional controls will run with the land and bind all successors and assigns of the current property owner.

7. Financial Capability of Applicant

DEH has the financial resources and capability to perform the proposed remediation in its entirety. The following information is provided in support of this representation:

(a) DEH reported consolidated revenue of approximately $347 million for the fiscal year ended December 31, 2024, and maintains a consolidated net asset value of approximately $1.24 billion. DEH's financial position is such that the estimated remediation cost of $9.74 million represents less than one percent of its net asset value. A corporate financial summary is enclosed as part of Exhibit 8.

(b) DEH has obtained a Pollution Legal Liability ("PLL") insurance policy from Bridgemont Insurance Company, Policy No. ENV-BIC-2024-07821, effective March 1, 2024 through March 1, 2034. The policy provides an aggregate coverage limit of $15,000,000, with a self-insured retention of $500,000 per occurrence. The Dunmore Wharton Terminal Site is a specifically scheduled location under the policy. A certificate of insurance evidencing the PLL coverage is enclosed as part of Exhibit 8.

(c) DEH has already committed substantial resources to the investigation and remediation of the Site. As of the date of this letter, DEH has retained Pinehill Environmental Consulting LLC and Calderwood & Harkness LLP for environmental consulting and legal representation, respectively, and has incurred approximately $387,000 in investigative costs through Pinehill for the Phase I and Phase II Environmental Site Assessments and related fieldwork. DEH has also placed a legal retainer of $150,000 with Calderwood & Harkness LLP in connection with this matter. These expenditures demonstrate DEH's commitment to the remediation and its willingness to invest the resources necessary to complete the VCP process.

8. Site Access Arrangements

As noted in Section 2 above, DEH is not the current fee owner of the Site. The current owner, Calera Properties Group LLC, acquired the property at a tax foreclosure sale in March 2019 and has had no involvement in the petroleum operations or releases that are the subject of this application.

DEH and CPG are currently negotiating a Site Access & Cost-Sharing Agreement (the "Access Agreement") that will grant DEH and its authorized contractors, agents, and consultants—including Pinehill Environmental Consulting LLC and any remediation contractors retained by DEH or Pinehill—irrevocable access to the Site for purposes of environmental investigation, remediation, monitoring, and all related activities throughout the anticipated duration of the VCP project, which is estimated to extend through 2033. The Access Agreement is being negotiated in good faith and is expected to be finalized and fully executed in the near term.

CPG is represented in this matter by Nora Fujimoto, Partner, at Kerrigan, Pace & Sullivan LLP, 700 Milam Street, Suite 2000, Houston, Texas 77002. CPG is cooperating with DEH's remediation efforts and has indicated its willingness to execute the Access Agreement and, upon successful completion of the VCP process and issuance of a Certificate of Completion by TCEQ, to cooperate fully in the recording of the necessary institutional controls and deed restrictions against the property. A draft of the Access Agreement, together with a letter of intent from CPG confirming its cooperation, is enclosed as Exhibit 9.

9. Identification of Other Potentially Responsible Parties

DEH notes that Rowan Creek Fuel Distributors, Inc. ("RCFD") co-operated the southern tank farm at the Site from 1991 through 2010 under the Joint Operating Agreement described in Section 3 above. During the period of RCFD's operations, at least four of the five documented releases at the Site—the 1996 release from Tank S-4, the 2001 release from Tank S-7, the 2008 release from Tank S-11, and, to the extent the southern tank farm contributed to broader plume migration, a portion of the groundwater contamination—originated from tanks that were under RCFD's operational control. RCFD's operations at the southern tank farm therefore represent a significant source of the contamination at the Site.

DEH has asserted cost-recovery claims against RCFD under Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. § 9607(a), and under Section 361.344 of the Texas Health & Safety Code. These claims seek to recover from RCFD an equitable share of the investigation and remediation costs attributable to RCFD's operations and releases at the southern tank farm.

Notwithstanding the foregoing, RCFD's involvement does not affect DEH's willingness or ability to complete the VCP process. DEH is proceeding as the sole VCP applicant and accepts full responsibility for ensuring that the remediation is completed in accordance with TCEQ requirements. DEH will not condition its performance of the remediation on the outcome of any cost-recovery proceedings against RCFD. DEH expressly reserves all rights and claims to recover costs from RCFD and from any other parties that may be identified as responsible parties in connection with the contamination at the Site.

10. Enclosed Materials

The following materials are enclosed with this application for TCEQ's review:

1. Completed TCEQ Voluntary Cleanup Program Application Form.

2. Application fee in the amount of $1,000.00 (check enclosed, payable to the Texas Commission on Environmental Quality).

3. Site location map, including USGS 7.5-minute topographic quadrangle map and recent aerial photograph with Site boundaries indicated.

4. Legal description of the Site (Lots 3 and 4 of the H.T. & B.R.R. Survey, Abstract No. 241, Wharton County, Texas; deed recorded at Volume 1892, Page 417, Official Public Records of Wharton County, Texas).

5. Summary of known contamination and release history (as detailed in Section 4 of this letter).

6. Phase I Environmental Site Assessment — Executive Summary (prepared by Pinehill Environmental Consulting LLC, commenced January 2024).

7. Phase II Environmental Site Assessment — Executive Summary (prepared by Pinehill Environmental Consulting LLC, completed June 2024).

8. Evidence of applicant's financial capability to perform remediation, including:

(a) Corporate financial summary for Dunmore Energy Holdings Ltd.; and

(b) Certificate of insurance for Bridgemont Insurance Company Pollution Legal Liability Policy No. ENV-BIC-2024-07821.

9. Proof of site-access arrangements with Calera Properties Group LLC (current fee owner), including draft Site Access & Cost-Sharing Agreement and letter of intent from CPG.

10. Copy of Plan of Dissolution and Assignment of Liabilities dated October 15, 2017 (documenting DEH's assumption of all environmental liabilities of Dunmore Terminal Services, Inc.).

11. Certificate of dissolution for Dunmore Terminal Services, Inc. issued by the Texas Secretary of State (effective December 31, 2017).

11. APAR Submission Timeline

DEH hereby commits to submitting the Affected Property Assessment Report ("APAR") to TCEQ on or before October 31, 2025. The APAR will be prepared by Pinehill Environmental Consulting LLC under the direction of Dr. Lena Vasquez, P.E., P.G., and will present a comprehensive assessment of the nature and extent of contamination at the Site, an evaluation of risk to human health and ecological receptors, and a detailed proposed remedial action plan, all in accordance with the requirements of 30 Texas Administrative Code Chapter 333 and the TCEQ Risk Reduction Standards at 30 Texas Administrative Code Chapter 350.

DEH and Pinehill are prepared to coordinate with TCEQ VCP staff during the APAR preparation process to ensure that the report addresses all applicable requirements and that any questions or concerns are resolved promptly. DEH is further prepared to pay TCEQ oversight fees at the standard VCP hourly rate of $225.00 per hour, as required under the program, throughout the duration of the VCP process.

In closing, DEH respectfully requests that TCEQ accept this application and assign a VCP tracking number to the Dunmore Wharton Terminal Site so that the voluntary remediation process may proceed. DEH is committed to the thorough and complete remediation of the Site in full compliance with all applicable TCEQ requirements, including the Texas Health & Safety Code, Chapter 361, Subchapter S, and 30 Texas Administrative Code Chapters 333 and 350. DEH looks forward to working cooperatively with TCEQ throughout the VCP process.

We respectfully request that all correspondence, notices, and communications regarding this application and the VCP process be directed to the undersigned at the address set forth below. Should TCEQ require any additional information or documentation in connection with this application, we would be pleased to provide it promptly. We appreciate TCEQ's consideration of this application and its commitment to the Voluntary Cleanup Program.

Respectfully submitted,

CALDERWOOD & HARKNESS LLP

By: ________

Cynthia Ho Associate, Real Estate Practice 1200 McKinney Street, Suite 4100 Houston, Texas 77010 Telephone: (713) 554-8200

Email: cho@calderwoodharkness.com

On behalf of Dunmore Energy Holdings Ltd.

cc: Gavin Rourke, Chairman & CEO, Dunmore Energy Holdings Ltd. Sandra Tung, Responsible Partner, Calderwood & Harkness LLP Dr. Lena Vasquez, P.E., P.G., Principal-in-Charge, Pinehill Environmental Consulting LLC

Enclosures (11) — as listed in Section 10 above

Milestone	Target Date
Submission of APAR to TCEQ	October 31, 2025
TCEQ review of APAR (estimated 120 days)	November 2025 – February 2026
Submission of Voluntary Cleanup Work Plan	April 2026
Commencement of active remediation	June 2026
Completion of active remediation	December 2028
Post-remediation monitoring period	January 2029 – December 2032
Application for Certificate of Completion	2033

CALDERWOOD & HARKNESS LLP Attorneys at Law 1200 McKinney Street, Suite 4100 Houston, Texas 77010 Telephone: (713) 554-8200 Facsimile: (713) 554-8201 www.calderwoodharkness.com
June 25, 2025
VIA CERTIFIED MAIL — RETURN RECEIPT REQUESTED AND OVERNIGHT DELIVERY
Texas Commission on Environmental Quality Voluntary Cleanup Program Section Remediation Division, MC-221 P.O. Box 13087 Austin, Texas 78711-3087
Re: Voluntary Cleanup Program Application — Dunmore Wharton Terminal Site, 14200 FM 1301, Wharton, Wharton County, Texas 77488; Tax Parcel ID WC-0241-0034
Firm Matter No.: 1016-00006
Dear VCP Program Administrator:
This letter is submitted on behalf of the applicant, Dunmore Energy Holdings Ltd. ("DEH"), a Cayman Islands exempted company (Registration No. MC-318574), with its registered office and principal headquarters located at 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman, KY1-1002, Cayman Islands. Calderwood & Harkness LLP serves as outside counsel to DEH in connection with the voluntary investigation and remediation of the above-referenced property, commonly known as the Dunmore Wharton Terminal (the "Site"). The purpose of this letter is to transmit the enclosed VCP application materials and the accompanying application fee in the amount of One Thousand Dollars ($1,000.00) for acceptance of the Site into the Texas Commission on Environmental Quality ("TCEQ") Voluntary Cleanup Program ("VCP") pursuant to Texas Health & Safety Code, Chapter 361, Subchapter S, §§ 361.601–361.613, and the implementing regulations at 30 Texas Administrative Code Chapter 333. We respectfully request that TCEQ review these materials and, upon acceptance, assign a VCP tracking number for the Site so that the remediation process may proceed in an orderly and timely fashion.
The sections that follow provide a comprehensive summary of the applicant, the Site, the operational history, the known contamination, the proposed remedial approach, and the financial capability of the applicant, together with a list of all enclosed materials. We trust that the information provided herein, supplemented by the enclosed exhibits, will be sufficient for TCEQ to evaluate and accept this application.
1. Identification of Applicant
The applicant in this VCP matter is Dunmore Energy Holdings Ltd. ("DEH"), a Cayman Islands exempted company, Registration No. MC-318574, with its principal headquarters at 4th Floor, Harbour Place, 103 South Church Street, George Town, Grand Cayman, KY1-1002, Cayman Islands.
DEH is the successor-in-interest to Dunmore Terminal Services, Inc. ("DTS"), a Texas corporation formerly in good standing with the Texas Secretary of State, bearing Employer Identification Number 76-0384291. DTS formerly owned and operated the Dunmore Wharton Terminal from 1974 through 2015, during which time it conducted petroleum bulk-storage and distribution operations at the Site. Following the cessation of terminal operations in 2015 and the disconnection of pipeline interconnects in 2016, DTS's board of directors authorized the winding down and dissolution of the corporation.
On October 15, 2017, DTS executed a Plan of Dissolution and Assignment of Liabilities (a copy of which is enclosed as Exhibit 10), pursuant to which all of DTS's outstanding liabilities—including, without limitation, all environmental obligations, investigation and remediation responsibilities, and regulatory compliance duties relating to the Site—were assumed in full by DEH. DTS was formally dissolved with the Texas Secretary of State effective December 31, 2017, and a certificate of dissolution was issued on that date (enclosed as Exhibit 11). By virtue of the foregoing succession, DEH stands in the shoes of DTS with respect to all environmental matters arising from the historical operations at the Site and is the appropriate party to pursue voluntary remediation through the VCP.
DEH's principal contact for this matter is Gavin Rourke, Chairman and Chief Executive Officer, who may be reached at DEH's Cayman Islands headquarters address noted above. However, for purposes of this VCP application and all subsequent correspondence, notices, and communications from TCEQ regarding this matter, we respectfully request that all such correspondence be directed to the undersigned legal counsel:
Cynthia Ho Calderwood & Harkness LLP 1200 McKinney Street, Suite 4100 Houston, Texas 77010 Telephone: (713) 554-8200
Email: cho@calderwoodharkness.com
2. Site Description
The Site that is the subject of this VCP application is described as follows:
Common Name: Dunmore Wharton Terminal
Physical Address: 14200 FM 1301, Wharton, Wharton County, Texas 77488
Tax Parcel Identification Number: WC-0241-0034
Legal Description: A 48.7-acre tract being Lots 3 and 4 of the H.T. & B.R.R. Survey, Abstract No. 241, Wharton County, Texas, as more particularly described in that certain deed recorded at Volume 1892, Page 417, Official Public Records of Wharton County, Texas.
Acreage: Approximately 48.7 acres.
Current Zoning Designation: Heavy Industrial (HI) per Wharton County regulations. The Site is located in an unincorporated area of Wharton County and is not within the corporate limits or extraterritorial jurisdiction of the City of Wharton.
The Site is improved with the following principal structures and facilities, all of which are currently inactive and non-operational:
• Northern Tank Farm: Twelve (12) aboveground storage tanks ("ASTs"), designated Tanks N-1 through N-12, with a combined total storage capacity of approximately 420,000 barrels. These tanks were formerly used for the bulk storage of gasoline, diesel fuel, and other refined petroleum products.
• Southern Tank Farm: Twelve (12) aboveground storage tanks, designated Tanks S-1 through S-12, with a combined total storage capacity of approximately 315,000 barrels. These tanks were similarly used for bulk petroleum storage and were co-operated by Rowan Creek Fuel Distributors, Inc. from 1991 through 2010, as further described in Section 3 below.
• Truck Loading Rack: A truck loading rack facility located in the central portion of the Site, which was decommissioned in 2015 upon the cessation of terminal operations.
• Pipeline Interconnects: Pipeline interconnects formerly connecting the Site to the Colonial Pipeline right-of-way, which were disconnected and capped in 2016.
• Administrative Building: An abandoned single-story administrative building of approximately 4,500 square feet, located near the main entrance to the Site from FM 1301.
The current fee owner of the Site is Calera Properties Group LLC ("CPG"), a Texas limited liability company, Employer Identification Number 84-3207156, with its principal office at 2900 Woodlands Parkway, Suite 310, The Woodlands, Texas 77381. CPG is managed by Rebecca Strand, its Managing Member. CPG acquired the Site at a Wharton County tax foreclosure sale conducted in March 2019, at which time CPG paid a purchase price of $612,000. Since acquiring the Site, CPG has made no operational use of the property, has not conducted any petroleum storage or distribution activities, and has not contributed to or exacerbated the contamination at the Site. CPG is not a responsible party for the environmental conditions described herein.
DEH is not the current fee owner of the Site. Rather, DEH is the party that bears responsibility for the contamination as the successor-in-interest to the former operator, DTS, and DEH is voluntarily undertaking the remediation of the Site through the VCP. The arrangements between DEH and CPG for Site access are described in Section 8 below.
3. Operational History
The following is a summary of the operational history of the Dunmore Wharton Terminal, as documented in the enclosed Phase I Environmental Site Assessment and as supplemented by corporate records of the applicant:
Dunmore Terminal Services, Inc. commenced petroleum bulk-storage terminal operations at the Site in 1974. The facility was designed and constructed as a petroleum products receiving, storage, and distribution terminal, receiving refined products by pipeline from the Colonial Pipeline system and distributing them via truck loading rack operations throughout the Gulf Coast region of Texas. Throughout its operating life, the terminal handled gasoline (including leaded and unleaded grades), diesel fuel (No. 1 and No. 2), kerosene, and other refined petroleum products.
In 1991, DTS entered into a Joint Operating Agreement ("JOA") with Rowan Creek Fuel Distributors, Inc. ("RCFD"), a Texas corporation, Employer Identification Number 74-2951683, with its principal office at 1150 Lavaca Street, Suite 600, Austin, Texas 78701. Under the JOA, RCFD was granted the right to co-operate the southern tank farm, comprising Tanks S-1 through S-12 and occupying approximately 18 acres of the southern portion of the Site. RCFD operated the southern tank farm under the terms of the JOA from 1991 through 2010, during which time RCFD maintained its own personnel, conducted its own product handling and distribution operations, and bore responsibility for the maintenance and environmental compliance of the southern tank farm. The JOA was terminated effective December 31, 2010, at which time RCFD ceased all operations at the Site and vacated the southern tank farm.
Following RCFD's departure, DTS continued to operate the northern tank farm and the common areas of the Site, including the truck loading rack and pipeline interconnects, until 2015, when all terminal operations at the Site were permanently ceased. The pipeline interconnects to the Colonial Pipeline right-of-way were physically disconnected and capped in 2016. DTS subsequently initiated dissolution proceedings, executing the Plan of Dissolution and Assignment of Liabilities on October 15, 2017, under which all environmental liabilities relating to the Site were assigned to and assumed by DEH. DTS was formally dissolved with the Texas Secretary of State effective December 31, 2017.
Since the cessation of operations, the Site has remained idle and unoccupied, with no active industrial or commercial activities taking place on the property.
4. Summary of Known Contamination and Release History
4.1 Documented Releases
Based on TCEQ records, the Phase I and Phase II Environmental Site Assessments prepared by Pinehill Environmental Consulting LLC, and the corporate records of DTS and DEH, the following releases of petroleum products have been documented at the Site:
(a) 1996 Release. Approximately 8,000 gallons of diesel fuel were released from Tank S-4, located in the southern tank farm. At the time of this release, Tank S-4 was operated by RCFD under the Joint Operating Agreement. The release was reported to TCEQ at the time it occurred, and a partial cleanup was performed. However, based on the Phase II ESA findings, residual contamination from this release remains in the subsurface.
(b) 2001 Release. Approximately 3,200 gallons of gasoline were released from Tank S-7, also located in the southern tank farm and operated by RCFD. This release was assigned TCEQ Incident No. 142876. The gasoline release is a significant contributor to the dissolved benzene plume described in Section 4.4 below.
(c) 2003 Release. Approximately 1,500 gallons of gasoline were released from Tank N-3, located in the northern tank farm. This release occurred during DTS's operation of the northern tank farm and was assigned TCEQ Incident No. 158432. Soil contamination from this release has been delineated and is included in the northern tank farm remediation scope.
(d) 2008 Release. Approximately 5,600 gallons of diesel fuel were released from Tank S-11, located in the southern tank farm and operated by RCFD. This release was assigned TCEQ Incident No. 197503. The 2008 release is the largest documented diesel release at the Site and resulted in significant soil and groundwater impacts in the southeastern portion of the southern tank farm.
(e) 2014 Release. Approximately 600 gallons of diesel fuel were released from the truck loading rack area, which was operated by DTS. This release was assigned TCEQ Incident No. 251044. Although the volume of this release was comparatively smaller, it contributed to petroleum contamination in the central portion of the Site.
In total, the five documented releases account for the release of approximately 18,900 gallons of petroleum products at the Site over a period of nearly two decades.
4.2 Contaminants of Concern
Based on the analytical results from the Phase II Environmental Site Assessment and the documented release history, the following contaminants of concern ("COCs") have been identified at the Site:
• Benzene, toluene, ethylbenzene, and xylenes ("BTEX"), which are characteristic constituents of gasoline and other light petroleum products;
• Total petroleum hydrocarbons ("TPH"), reflecting the broader range of petroleum-derived compounds present in soil and groundwater;
• Methyl tert-butyl ether ("MTBE"), a fuel oxygenate formerly used as an additive in gasoline products; and
• Dissolved-phase lead, likely associated with historical releases of leaded gasoline products during the earlier years of the terminal's operation.
4.3 Soil Contamination Summary
The Phase II Environmental Site Assessment identified significant petroleum hydrocarbon contamination in soils across both the northern and southern tank farms. The principal findings are as follows:
• In the southern tank farm, total petroleum hydrocarbon concentrations were detected at levels up to 14,200 milligrams per kilogram (mg/kg) in soils adjacent to Tank S-7. This area corresponds to the location of the 2001 gasoline release and is the most heavily impacted area of soil contamination at the Site.
• In the northern tank farm, TPH concentrations were detected at levels up to 8,750 mg/kg in soils in the vicinity of Tank N-3, corresponding to the 2003 gasoline release.
• Benzene was detected in soil at concentrations up to 42 mg/kg. This concentration significantly exceeds both the TCEQ Tier 1 Protective Concentration Level ("PCL") for residential land use of 1.8 mg/kg and the Tier 1 PCL for commercial/industrial land use of 5.3 mg/kg, as established under the TCEQ Texas Risk Reduction Program ("TRRP") at 30 Texas Administrative Code Chapter 350.
The full lateral and vertical extent of soil contamination has been delineated through the Phase II investigation and will be presented in detail in the forthcoming Affected Property Assessment Report.
4.4 Groundwater Contamination Summary
Groundwater beneath the Site is present in the Chicot Aquifer (shallow zone), which was encountered during the Phase II investigation at a depth of approximately 22 feet below ground surface ("bgs"). Groundwater monitoring wells installed as part of the Phase II ESA have delineated a significant dissolved-phase contaminant plume extending from the Site. The principal findings regarding groundwater contamination are as follows:
• A dissolved benzene plume has been delineated extending approximately 2,400 feet downgradient (in a south-southwest direction) from the southern tank farm. The plume originates primarily from the areas of the 2001 and 2008 releases.
• The maximum dissolved benzene concentration detected in groundwater was 3.8 milligrams per liter (mg/L), which is approximately 760 times the federal Maximum Contaminant Level ("MCL") of 0.005 mg/L established under the Safe Drinking Water Act, 42 U.S.C. § 300f et seq., and 40 C.F.R. Part 141.
• Methyl tert-butyl ether was detected in groundwater at concentrations up to 1.2 mg/L, consistent with the historical use of MTBE-containing gasoline products at the terminal.
• Dissolved-phase lead was detected in groundwater at concentrations up to 0.087 mg/L, which exceeds the federal MCL action level for lead of 0.015 mg/L.
4.5 Nearest Receptor
The nearest known residential receptor to the dissolved benzene plume is a private water well located at 16405 FM 1301, Wharton County, Texas (the "Ingram Property"). The Ingram Property is situated approximately 3,100 feet south-southwest of the current leading edge of the dissolved benzene plume in the downgradient direction.
In February 2025, at the direction of DEH, Pinehill Environmental Consulting LLC collected a groundwater sample from the Ingram Property private water well. The analytical results indicated that no contaminants of concern were detected above their respective MCLs as of the date of sampling. Notwithstanding these results, DEH recognizes the importance of continued monitoring of this receptor and has included ongoing receptor well monitoring as a component of the proposed remediation program. DEH will continue to monitor the Ingram Property well on a quarterly basis throughout the remediation period to ensure the protection of human health and the environment.
5. Environmental Assessments Performed
In January 2024, DEH retained Pinehill Environmental Consulting LLC ("Pinehill"), a Texas limited liability company with offices at 9330 Kirby Drive, Suite 240, Houston, Texas 77054, to conduct comprehensive environmental investigations at the Site. Pinehill's Principal-in-Charge for this engagement is Dr. Lena Vasquez, P.E., P.G., a licensed Professional Engineer and Professional Geoscientist in the State of Texas, who has directed all field investigation and reporting activities.
The following environmental assessments have been completed to date:
Phase I Environmental Site Assessment. Pinehill commenced the Phase I ESA in January 2024 in accordance with ASTM Standard E1527-21, Standard Practice for Environmental Site Assessments: Phase I Environmental Site Assessment Process. The Phase I ESA identified recognized environmental conditions ("RECs") at the Site associated with the historical petroleum storage and distribution operations, the documented release history summarized in Section 4.1 above, and the presence of residual petroleum product infrastructure. The Phase I ESA also identified the potential for undocumented releases given the duration and nature of terminal operations. An executive summary of the Phase I ESA report is enclosed as Exhibit 6.
Phase II Environmental Site Assessment. Based on the RECs identified in the Phase I ESA, Pinehill conducted a Phase II ESA to delineate the nature and extent of contamination at the Site. The Phase II investigation was completed in June 2024 and involved the advancement of soil borings, the installation of groundwater monitoring wells, and the collection and laboratory analysis of soil and groundwater samples from across the Site. The Phase II ESA confirmed and delineated the soil and groundwater contamination summarized in Sections 4.3 and 4.4 above. An executive summary of the Phase II ESA report is enclosed as Exhibit 7.
In addition to the Phase I and Phase II assessments, Pinehill prepared a remediation cost estimate dated April 2025, which estimates the total cost of remediation at the Site at approximately $9.74 million, with a projected range of $7.81 million to $12.18 million depending on the actual conditions encountered during active remediation and the duration of long-term groundwater monitoring. The cost estimate is summarized in Section 6 below.
6. Proposed Remedial Approach (Summary)
DEH intends to pursue a comprehensive remediation strategy for the Site that addresses both soil and groundwater contamination and provides for long-term monitoring and institutional controls to ensure the protection of human health and the environment. The proposed remedial approach, as developed by Pinehill Environmental Consulting LLC in coordination with DEH and Calderwood & Harkness LLP, is summarized below, together with estimated costs for each component:
(a) Soil Excavation and Off-Site Disposal — Southern Tank Farm. Contaminated soils in the southern tank farm, including the areas surrounding Tanks S-4, S-7, and S-11 where the most significant soil impacts have been documented, will be excavated and transported to a permitted disposal facility for treatment and/or disposal. Estimated cost: $3,420,000.
(b) Soil Excavation and Off-Site Disposal — Northern Tank Farm. Contaminated soils in the northern tank farm, including the area surrounding Tank N-3, will similarly be excavated and disposed of off-site at a permitted facility. Estimated cost: $1,870,000.
(c) In-Situ Groundwater Treatment. The dissolved-phase groundwater contamination plume will be addressed through a combination of in-situ chemical oxidation ("ISCO") and enhanced bioremediation techniques. ISCO injections are proposed for the source area and the most concentrated portions of the plume, while enhanced bioremediation will be implemented in the distal portions of the plume to accelerate natural attenuation processes. Estimated cost: $2,150,000.
(d) Long-Term Groundwater Monitoring. Following the completion of active remediation, DEH will implement a long-term groundwater monitoring program to confirm the effectiveness of the remedial actions and to verify that contaminant concentrations are trending toward compliance with applicable TCEQ standards. Monitoring is anticipated to be conducted quarterly over an estimated 8-year period, comprising a total of 32 monitoring events at an estimated cost of approximately $33,125 per event. Estimated total cost: $1,060,000.
(e) Institutional Controls and Deed Restrictions. Upon completion of the remediation and confirmation of compliance with applicable risk-based standards, DEH will implement institutional controls in the form of a restrictive covenant and deed restriction to be recorded against the property in the Official Public Records of Wharton County, Texas. The deed restriction will restrict the use of the Site to commercial and industrial purposes and will prohibit the installation of water supply wells into the Chicot Aquifer shallow zone on or beneath the Site. Estimated cost for preparation, negotiation, and recording of institutional controls: $180,000.
(f) Project Management, Reporting, and Regulatory Liaison. This component includes overall project management by Pinehill, preparation of all required TCEQ reports and submittals (including the APAR, the Voluntary Cleanup Work Plan, progress reports, and the final Response Action Completion Report), and ongoing coordination with TCEQ VCP staff throughout the project. Estimated cost: $1,060,000.
The total estimated cost of remediation across all components is $9,740,000.
DEH has developed the following target schedule for the VCP process:
DEH anticipates that upon successful completion of the VCP process and receipt of a Certificate of Completion from TCEQ, the institutional controls described above will be recorded against the Site, restricting the property to commercial/industrial use and prohibiting water well installation into the Chicot Aquifer shallow zone. The institutional controls will run with the land and bind all successors and assigns of the current property owner.
7. Financial Capability of Applicant
DEH has the financial resources and capability to perform the proposed remediation in its entirety. The following information is provided in support of this representation:
(a) DEH reported consolidated revenue of approximately $347 million for the fiscal year ended December 31, 2024, and maintains a consolidated net asset value of approximately $1.24 billion. DEH's financial position is such that the estimated remediation cost of $9.74 million represents less than one percent of its net asset value. A corporate financial summary is enclosed as part of Exhibit 8.
(b) DEH has obtained a Pollution Legal Liability ("PLL") insurance policy from Bridgemont Insurance Company, Policy No. ENV-BIC-2024-07821, effective March 1, 2024 through March 1, 2034. The policy provides an aggregate coverage limit of $15,000,000, with a self-insured retention of $500,000 per occurrence. The Dunmore Wharton Terminal Site is a specifically scheduled location under the policy. A certificate of insurance evidencing the PLL coverage is enclosed as part of Exhibit 8.
(c) DEH has already committed substantial resources to the investigation and remediation of the Site. As of the date of this letter, DEH has retained Pinehill Environmental Consulting LLC and Calderwood & Harkness LLP for environmental consulting and legal representation, respectively, and has incurred approximately $387,000 in investigative costs through Pinehill for the Phase I and Phase II Environmental Site Assessments and related fieldwork. DEH has also placed a legal retainer of $150,000 with Calderwood & Harkness LLP in connection with this matter. These expenditures demonstrate DEH's commitment to the remediation and its willingness to invest the resources necessary to complete the VCP process.
8. Site Access Arrangements
As noted in Section 2 above, DEH is not the current fee owner of the Site. The current owner, Calera Properties Group LLC, acquired the property at a tax foreclosure sale in March 2019 and has had no involvement in the petroleum operations or releases that are the subject of this application.
DEH and CPG are currently negotiating a Site Access & Cost-Sharing Agreement (the "Access Agreement") that will grant DEH and its authorized contractors, agents, and consultants—including Pinehill Environmental Consulting LLC and any remediation contractors retained by DEH or Pinehill—irrevocable access to the Site for purposes of environmental investigation, remediation, monitoring, and all related activities throughout the anticipated duration of the VCP project, which is estimated to extend through 2033. The Access Agreement is being negotiated in good faith and is expected to be finalized and fully executed in the near term.
CPG is represented in this matter by Nora Fujimoto, Partner, at Kerrigan, Pace & Sullivan LLP, 700 Milam Street, Suite 2000, Houston, Texas 77002. CPG is cooperating with DEH's remediation efforts and has indicated its willingness to execute the Access Agreement and, upon successful completion of the VCP process and issuance of a Certificate of Completion by TCEQ, to cooperate fully in the recording of the necessary institutional controls and deed restrictions against the property. A draft of the Access Agreement, together with a letter of intent from CPG confirming its cooperation, is enclosed as Exhibit 9.
9. Identification of Other Potentially Responsible Parties
DEH notes that Rowan Creek Fuel Distributors, Inc. ("RCFD") co-operated the southern tank farm at the Site from 1991 through 2010 under the Joint Operating Agreement described in Section 3 above. During the period of RCFD's operations, at least four of the five documented releases at the Site—the 1996 release from Tank S-4, the 2001 release from Tank S-7, the 2008 release from Tank S-11, and, to the extent the southern tank farm contributed to broader plume migration, a portion of the groundwater contamination—originated from tanks that were under RCFD's operational control. RCFD's operations at the southern tank farm therefore represent a significant source of the contamination at the Site.
DEH has asserted cost-recovery claims against RCFD under Section 107(a) of the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C. § 9607(a), and under Section 361.344 of the Texas Health & Safety Code. These claims seek to recover from RCFD an equitable share of the investigation and remediation costs attributable to RCFD's operations and releases at the southern tank farm.
Notwithstanding the foregoing, RCFD's involvement does not affect DEH's willingness or ability to complete the VCP process. DEH is proceeding as the sole VCP applicant and accepts full responsibility for ensuring that the remediation is completed in accordance with TCEQ requirements. DEH will not condition its performance of the remediation on the outcome of any cost-recovery proceedings against RCFD. DEH expressly reserves all rights and claims to recover costs from RCFD and from any other parties that may be identified as responsible parties in connection with the contamination at the Site.
10. Enclosed Materials
The following materials are enclosed with this application for TCEQ's review:
1. Completed TCEQ Voluntary Cleanup Program Application Form.
2. Application fee in the amount of $1,000.00 (check enclosed, payable to the Texas Commission on Environmental Quality).
3. Site location map, including USGS 7.5-minute topographic quadrangle map and recent aerial photograph with Site boundaries indicated.
4. Legal description of the Site (Lots 3 and 4 of the H.T. & B.R.R. Survey, Abstract No. 241, Wharton County, Texas; deed recorded at Volume 1892, Page 417, Official Public Records of Wharton County, Texas).
5. Summary of known contamination and release history (as detailed in Section 4 of this letter).
6. Phase I Environmental Site Assessment — Executive Summary (prepared by Pinehill Environmental Consulting LLC, commenced January 2024).
7. Phase II Environmental Site Assessment — Executive Summary (prepared by Pinehill Environmental Consulting LLC, completed June 2024).
8. Evidence of applicant's financial capability to perform remediation, including:
(a) Corporate financial summary for Dunmore Energy Holdings Ltd.; and
(b) Certificate of insurance for Bridgemont Insurance Company Pollution Legal Liability Policy No. ENV-BIC-2024-07821.
9. Proof of site-access arrangements with Calera Properties Group LLC (current fee owner), including draft Site Access & Cost-Sharing Agreement and letter of intent from CPG.
10. Copy of Plan of Dissolution and Assignment of Liabilities dated October 15, 2017 (documenting DEH's assumption of all environmental liabilities of Dunmore Terminal Services, Inc.).
11. Certificate of dissolution for Dunmore Terminal Services, Inc. issued by the Texas Secretary of State (effective December 31, 2017).
11. APAR Submission Timeline
DEH hereby commits to submitting the Affected Property Assessment Report ("APAR") to TCEQ on or before October 31, 2025. The APAR will be prepared by Pinehill Environmental Consulting LLC under the direction of Dr. Lena Vasquez, P.E., P.G., and will present a comprehensive assessment of the nature and extent of contamination at the Site, an evaluation of risk to human health and ecological receptors, and a detailed proposed remedial action plan, all in accordance with the requirements of 30 Texas Administrative Code Chapter 333 and the TCEQ Risk Reduction Standards at 30 Texas Administrative Code Chapter 350.
DEH and Pinehill are prepared to coordinate with TCEQ VCP staff during the APAR preparation process to ensure that the report addresses all applicable requirements and that any questions or concerns are resolved promptly. DEH is further prepared to pay TCEQ oversight fees at the standard VCP hourly rate of $225.00 per hour, as required under the program, throughout the duration of the VCP process.
In closing, DEH respectfully requests that TCEQ accept this application and assign a VCP tracking number to the Dunmore Wharton Terminal Site so that the voluntary remediation process may proceed. DEH is committed to the thorough and complete remediation of the Site in full compliance with all applicable TCEQ requirements, including the Texas Health & Safety Code, Chapter 361, Subchapter S, and 30 Texas Administrative Code Chapters 333 and 350. DEH looks forward to working cooperatively with TCEQ throughout the VCP process.
We respectfully request that all correspondence, notices, and communications regarding this application and the VCP process be directed to the undersigned at the address set forth below. Should TCEQ require any additional information or documentation in connection with this application, we would be pleased to provide it promptly. We appreciate TCEQ's consideration of this application and its commitment to the Voluntary Cleanup Program.
Respectfully submitted,
CALDERWOOD & HARKNESS LLP
By: ________
Cynthia Ho Associate, Real Estate Practice 1200 McKinney Street, Suite 4100 Houston, Texas 77010 Telephone: (713) 554-8200
Email: cho@calderwoodharkness.com
On behalf of Dunmore Energy Holdings Ltd.
cc: Gavin Rourke, Chairman & CEO, Dunmore Energy Holdings Ltd. Sandra Tung, Responsible Partner, Calderwood & Harkness LLP Dr. Lena Vasquez, P.E., P.G., Principal-in-Charge, Pinehill Environmental Consulting LLC
Enclosures (11) — as listed in Section 10 above
Milestone | Target Date
Submission of APAR to TCEQ | October 31, 2025
TCEQ review of APAR (estimated 120 days) | November 2025 – February 2026
Submission of Voluntary Cleanup Work Plan | April 2026
Commencement of active remediation | June 2026
Completion of active remediation | December 2028
Post-remediation monitoring period | January 2029 – December 2032
Application for Certificate of Completion | 2033

CALDERWOOD & HARKNESS LLP

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