Oil and Gas Waste Stream Management and Additional ......Applicable Rules & Publications: Surface Waste •Offers guidelines for the management of oil and gas wastes. •Private Facilities:

Railroad Commission of Texas | June 27, 2016 (Change Date In First Master Slide)

Oil and Gas Waste Stream Management and Additional Requirements for Commercial Facilities

August 2019

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Topics of Discussion

• Introduction

• Applicable Rules & Publications

• Permit Types

• Application Process

• Lease Agreements

• Notice Requirements

• Renewal, Transfer & Amendments

• NORM Surveys

• Closure Cost Estimates & Restrictive Covenants

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Introduction

Environmental Permits and Support

• Regulates the management methods of oil and gas waste treatment and disposal at or near the land surface

• All handling, storage, treatment, recycling and disposal methods other than injection wells are managed by the Environmental Permit team.

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Introduction

Our mission is to serve Texas by our stewardship of natural resources and the environment, our concern for personal and community safety, and our support of enhanced development and economic vitality for the benefit of Texans.

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Applicable Rules&

Publications


Applicable Rules & Publications

Statewide Rules (16 TAC Part 1 Chapter 3)

• SWR 8 – Water Protection

• SWR 22 – Protection of Birds

• SWR 57 – Reclamation

• SWR 78 – Fees and Financial Security

• SWR 98 – Hazardous Oil and Gas Waste

• Chapter 4, Subchapter B – Commercial Recycling

• Surface Waste Management Manual

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Applicable Rules & Publications: SWR 8

Water Protection: Authority for Environmental Permitting

• Subsection B – No Pollution

• Subsection D – Pollution Control

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• Operator must take protective measures to prevent harm to birds

• The operator may incur liability under federal and state wildlife protection laws, such as the Migratory Bird Treaty Act

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Reclaiming Tank Bottoms, Other Hydrocarbon Wastes, and Other Waste Materials:

• Applicable to wastes generated through exploration, development, production (including transportation) of crude oil and other waste materials containing hydrocarbons (see 16 TAC §3.8(a)(30))

• Removal of tank bottoms or other hydrocarbon wastes from any producing lease tank, pipeline storage tank, or other production facility, for reclaiming by any person, is prohibited unless such person has either obtained a permit to operate a reclamation plant or is an authorized person. 9



Commercial Facility – A facility whose owner or operator receives compensation from others for the storage, reclamation, treatment or disposal of oil field fluids or oil and gas wastes that are wholly or partially trucked or hauled to the facility and whose primary business purpose is to provide these services for compensation if the facility:

• Is permitted under SWR 8 (Water Protection)

• Is permitted under SWR 57 (Reclamation)

• Is permitted under SWR 9 with a pit permitted under SWR 8 located at the facility

• Chapter 4, Subchapter B10



Standards for management of hazardous oil and gas waste

A facility authorized for:

• Recycling or Reclamation

• Treatment, Storage or Disposal

Must also receive an EPA permit under 40 CFR, Parts 270 and 124 or Part 271

Hazardous Waste Manual

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Applicable Rules & Publications: Chapter 4(B)

Provisions apply to these categories of commercial recycling:

• Division 2 – On-lease solid recycling

• Division 3 – Off-lease or centralized solid recycling

• Division 4 – Stationary solid recycling

• Division 5 – Off-lease fluid recycling

• Division 6 – Stationary fluid recycling

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Applicable Rules & Publications: Surface Waste

• Offers guidelines for the management of oil and gas wastes.

• Private Facilities: Waste generated on-lease for one operator

• Centralized Facilities: Waste generated from multiple leases, owned by one operator and centrally located

• Commercial Facilities: Receive compensation for handling, storing, reclaiming, treating, disposing or recycling of waste

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Questions

Questions?

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Permit Types


Permit Types

• Minor Permits

• Letter of Authority / Letter of Clarification

• Discharges

• Pits

• Landspreading

• Reclamation (R9)

• Recycling

• Stationary Treatment Facilities (STF)

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Permit Types: Minor Permits

• Hydrostatic Test Water Discharge

– Valid for 60 days

– Must file two copies of the application

– Contact EPA Region 6 forfederal requirements if tosurface water

• Recycling of Domestic Wastewater

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Hydrostatic Test Water Discharges:

• Analytical results reported within one month after discharge is complete

• Pictures of effluent treatment and fluid dispersal system must be included the report

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• Recycling of Domestic Wastewater

• Waste streams include: (1) Treated domestic wastewater or (2) Mobile drinking water treatment system wastewater. This is waste from the unit, like reverse osmosis reject water

Two recycling options include:

1. Down-hole operations

2. Surface application

These two options have different testing parameters.

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Permit Types:Letter of Authority/Letter of Clarification

• Letter of Authority – Oil and gas waste disposal methods that are not authorized by Commission rules and do not have a permit application form or permit application outlined in the Surface Waste Management Manual may be applied for by submitting a letter of request.

• Letter of Clarification – Letter written to clarify permit conditions.

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Permit Types: Discharges

Types of Discharges:

• Gas Plant Effluent (GPE)

• Produced Water

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Additional information about discharges:

• Environmental Protection Agency (EPA) has not authorized the RRC to implement a National Pollutant Elimination System (NPDES) permit program

• Discharges to surface waters of the State must be permitted by the RRC and may require an EPA permit.

• Texas Water Code prohibits the RRC from permitting a discharge that violates the Texas Surface Water Quality Standards adopted by TCEQ (Section 24.131(b))

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Additional information about discharges:

• Each discharge has specific effluent testing and limitations based on location and the wastewater analyses

• Additional testing parameters may be added based on chemicals added to the discharge

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Coastal Management Program:

• General Land Office (GLO)

• Protects natural habitatsand wildlife

• Discharges must not adversely affect these critical areas:

– Coastal Wetlands

– Oyster Reefs

– Submerged Aquatic Vegetation

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A complete Water Analysis is required for all discharge applications.

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Gas Plant Effluent Discharges:

Common waste streams include:

• Cooling tower blowdown

• Reverse Osmosis (RO) reject wastewater

• Compressor condensation

• Contact stormwater

Requires an individual EPA permit

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Produced Water Discharges:

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West of the 98th:

• Individual EPA Permit is required unless a GeneralPermit becomes available

• Still covered undereffluent guidelines in 40 CFR Part 435, Subpart E

• Produced water must be beneficially used for agriculture or wildlife when discharged into navigable waters

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East of the 98th:

• Covered by EPA General Permit TXG 330000

• File Notice of Intent (NOI)

• Produced water must be fromCarrizo-Wilcox, Reklaw or Bartoshformations

• Discharges into impaired waters may require an individual permit from the EPA

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Territorial Seas:



• Line of ordinary low water along coast which is in direct contact with open sea and the line marking seaward limit of inland waters, extending seaward a distance of three miles

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Outer Continental Shelf:



• Authorizes discharges for drilling fluids, drill cuttings andproduced water

• From 3 miles to 9 miles seaward (beyond are Federal Waters)

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Discharge Testing Parameters:

• Oil and Grease

• Total Dissolved Solids (except Continental Shelf)

• Whole Effluent Toxicity (WET) Test

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Permit Types: Pits

Some pits authorized by SWR 8 (e.g. Reserve Pits, NCFR)

Not authorized pits that require a permit:

• Commercial Fluid Recycling Pit

• Disposal Pit

• Collecting Pit

• Emergency Saltwater Storage Pit

• Brine Pit

• Washout Pit

• Skimming Pit

• Gas Plant Evaporation/Retention Pit

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Permit Types: Pits

You have a pit if…

• It’s in contact with the ground but not an above ground storage tank

• If it’s below grade

• If it’s a concrete structure that cannot be moved quickly and easily to check for leaks

• If it’s a steel containment ring with a liner

• If it’s a “sump” larger than 500 gal

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Permit Types: Pits

Am I a pit?

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Permit Types: Pits

Am I a pit?

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Permit Types: Landspreading

Land-spreading includes landfarming, landtreatment, and the land applying of oil and gas waste.

Disposal of low toxicity wastes

• Uses soil-plant systems

• Applied to land surface or injected

• Natural attenuation of metals

Landfarm – Water base drilling muds/cuttings

Landtreatment – Oil base drilling muds/cuttings

Land Apply – Produced Water and Gas Plant Effluent

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Landfarm, Landtreatment and Land Apply Factors :

• Soil grain size and thickness (20 inches, slope less than 5%)

• Runoff

• Overloading

• Precipitation and evaporation

• Depth to Groundwater

• Distance from surface water features

• 100-year floodplain

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Landfarming authorized by SWR 8 (without a permit):

• Wastes disposed of on the lease where they are generated

• Written consent of the surface owner

• Water base drilling fluids with a chloride concentration below 3000 mg/L

• Drill cuttings, sands and silts obtained while using water base drilling fluids with a chloride concentration of 3000 mg/l or less

• Wash water used for cleaning drill pipe and other equipment at the well site

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Permit Types: Reclamation

Reclamation of oil and gas waste:

• Usually tank bottoms

• Other waste with reclaimable hydrocarbons

• Methods of separation

– Mechanical

– Chemical

– Thermal

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Permit Types: Reclamation

Plants are designed for the recovery of hydrocarbons, not just the separation of waste material

• Submit a Form R-9

• Attach answers to Instructions to Form R-9

• Notice and financial security is required

• Additional information may be required to complete the application

• Reclamation plant permits will be canceled if operations are inactive for more than 12 months.

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Permit Types: Waste Separation

Waste is separated into solid and liquid components prior to disposal

• Thermal, chemical, or physical separation

• Liquids disposed of at an injection well

• Notice and financial security is required

• Solids disposed of at a landfill

• Application information will vary depending on the type of facility.

• Incidental hydrocarbons may be recovered

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Permit Types: Recycling

RRC encourages the recycling of oil and gas waste.

Rules are divided into separate division based on:

• Type of oil and gas waste being treated

• Location

• Duration of the treatment operations

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Permit Types: Stationary Treatment Facility (STF)

An “umbrella” permit type offered to include various oil and gas operations.

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Questions

Questions?

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Application Process


Application Process

• Application Received

• Administrative Review

• Technical Review

• Application Disposition

–Permit granted

–Hearing

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Application Process

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Application Process: Application Received

• All documents must be submitted Hardcopy

–Applications, Responses, Requests, etc.

–Mail or Hand Deliver

• Documents are date stamped and reviewed in the order received

• Incomplete applications and partial responses will not be reviewed. The review time will start once all materials have been received.

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Application Process: Application Received

• Texas Administrative Code (TAC) Title 16, Part 1, Chapter 1.201 (c) (4)

–The applicant has two supplemental filings to satisfy the application deficiencies identified in the written correspondences provided by Technical Permitting

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Application Process: Administrative Review

• Organization Report (Form P-5)

–Status, Officers and SB 639

• Original Signatures on official forms

–H-11 and Reclamation Plant Application

• Incomplete Application Package

–Missing information (one sheet of paper requests)

• Fee Submitted

–Discharges (if applicable)

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Application Process: Technical Review

General Requirements:

• Site Information

• Process Information

• Facility Design Construction

• Facility Monitoring and Duration

• Site Closure

Commercial Facility Requirements:

• Notification

• Closure Cost Estimate (CCE)

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Site Information:

Property

• Survey/Lease

• Landowner

• Adjacent Landowners

• Receptors

Environmental

• Soil, Geology, Surface Water, Groundwater, Wetlands, Floodplains, etc.

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Property: Survey/Lease

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Property: Surface owner/Adjacent Surface owners

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Property: Receptors within 500 feet

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Process Information:

• Written narrative describing processing and treatment from the time waste enters the facility

• Provide a list and the function of all processes, equipment, chemicals, aggregates and waste management units

• Flow diagram of the process that matches the narrative

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Process/Treatment Flow Diagram

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Facility Design:

• Diagrams

–must be drawn to scale, include a title block, north arrow, legend

–Access control

–Locations, dimensions, material and volumes of waste management units, berms, equipment, buildings, access roads, etc.

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Facility Design:

• Pits

–Two perpendicular cross-sections

–Liner information, including Leak Detection Systems (LDS) and Leachate Collection Systems (LCS)

–Capacities

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Stormwater Management Plan

• Permits will distinguish between contact stormwater and non-contact stormwater

• Non-contact stormwater may be discharged without a permit from RRC. A permit from EPA may be required

• Best Management Practices (BMPs) should be followed when managing non-contact stormwater

• Contact stormwater is considered oil and gas waste and must be managed, stored and contained separate from non-contact stormwater and disposed of in an authorized manner

• Discharge of contact stormwater is prohibited

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• Establish BMPs to reduce the discharge and potential discharge of pollutants:

–Use grading, berming, or curbing

–Locate materials, equipment and activities so that leaks are contained in existing containment

–Clean up spills and leaks promptly

–Use spill/overflow protection equipment (level alarms, sluice gates, etc.)

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Facility Monitoring and Duration:

• Waste Acceptance Plan

–RCRA-exempt waste

–RCRA non-exempt waste

–Define sampling procedures• Product/Disposal Assurance

–Paint Filter Test

–Is the waste less than 7% TPH?

–Roadbase sampling – TxDOT

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Facility Monitoring and Duration:

• Inspection

–Facility and berm integrity

–Condition of the Groundwater Monitoring Wells

–LCS and LDS records

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Site Closure:

• Detailed Closure Plan

–Remove all tanks and equipment

–Empty all pits and dispose of liners

–Clean, break up and dispose of all concrete

–Final Sampling of soils and groundwater

–Demo berms, backfill pits, restore site to natural grade and revegetate

–Post-closure monitoring

–Financial Security (CCE, Restrictive Covenant)

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Application Process: Permit Disposition

Hearing:

Hearing Memo is drafted if the facility is protested:

• Permit is drafted by staff

• Application must be administratively complete before being referred to the Hearings Division

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Application Process: Permit Disposition

Permit:

Once the application process is complete the permit will be mailed to the operator.

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Questions

Questions?

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Lease Agreements


Lease Agreements

• A surface lease agreement must be between the P-5 operator that is applying for the permit and the surface owner(s)

• A surface lease agreement must be provided for all facilities where the P-5 operator does not own the property

• RRC Leases and Surface Leases are different and serve different purposes

• Lease agreements are also reviewed by the Office Of General Council Staff

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Questions

Questions?

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Notice Requirements


Notice Requirements

• Requirements by Rule

• When to Notice

• Types of Notice

• Notice by Application Type

• Proof of Notice

• General Comments

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Notice Requirements: Requirements by Rule

Requirements by Rule:

• Statewide Rule 8

–Discharges

–Pits

–Landspreading Facilities

–Waste Separation Facilities

• Statewide Rule 57

–Reclamation Facilities

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Requirements by Rule:

• 16 TAC Chapter 4 Subchapter B

–Division 2, 3, 4, 5 and 6 Recycling

• Texas Natural Resources Code Chapter 91

–Commercial Disposal Facilities

• Commercial Disposal Pits

• Commercial Landspreading

•Waste Separation Facilities

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Statewide Rule 8:• Notice to surface owner where disposal will take

place• Notice to City Clerk if located within corporate limits• Notice to surface owner of discharge and one-half

mile downstream• The applicant shall mail or deliver the required notice

to the surface owners and the city clerk or other appropriate official on or before the date the application is mailed or delivered to the commission in Austin

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Statewide Rule 8:

• Notice shall consist of a copy of the application together with a statement that any protest to the application should be filed with the commission within 15 days of the date the application is filed with the commission

• The notice shall be published once each week for two consecutive weeks by the applicant in a newspaper of general circulation in the county where the pit will be located or the disposal will take place

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Statewide Rule 57:

• Notice to the County Clerk

• Notice to City Clerk if located within corporate limits

• Notice to County and City Clerk must be given on or before the date the application is mailed to or filed with the commission

• Notice shall be published once in a newspaper of general circulation for the county where the reclamation plant is to be located

• Publication shall occur on or before the date the application is mailed to or filed with the commission

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16 TAC Chapter 4 Subchapter B:

• Publish notice of the application in a newspaper of general circulation in the county in which the proposed facility will be located at least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed with the Commission and not later than the 30th day after the date on which the application is filed with the Commission

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16 TAC Chapter 4 Subchapter B:

• The applicant shall mail or deliver notice on or afterthe date the application is filed with the Commission's headquarters office in Austin:

–Surface owner

–City Clerk

–Adjacent Surface Owners

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Texas Natural Resources Code Chapter 91:

• Requirements for Published Notice Only

• At least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed and not later than the 30th day after the date on which the application is filed

• In a newspaper of general circulation in the county in which the proposed disposal would occur

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General Notice Requirements: When to Notice

When to Notice:

• New Applications, Renewal Applications, Major Amendments*

–Most rules require that notice to Surface Owners be provided

–If the applicant is required to publish notice

•The notice shall be published in a newspaper of general circulation for the county were the facility/operations is to be located

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Notice Requirements: Types of Notice

Types of Notice:

• Notice to Surface Owners, Adjacent Surface Owners and City/County Clerk Officials

–A full copy of the application

–A statement that any protest to the application should be filed with the Commission within 15 days of the date the application is filed with the Commission

–The mailing address for Technical Permitting

–Description of facility/operations

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Notice Requirements: Types of Notice

Newspaper Publication Template

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Notice Requirements: Notice by Application Type

Discharge - New (Initial) Applications:

–Notice requirements found in 16 TAC §3.8(d)(6)(C) and 16 TAC §3.8(d)(6)(G)

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• One half mile downstream starts from the point of discharge – in most cases where the effluent leaves the pipe.

• The point of discharge and the facility location are not always one in the same.

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Pits – New (Initial) Application:

–Notice requirements found in 16 TAC §3.8(d)(6)(C)

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Property: Surface owner/Adjacent Surface owners

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Landspreading - Landfarm, Landtreatment, Land Apply:

–Notice requirements found in 16 TAC §3.8(d)(6)(C)

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Commercial Landspreading Facilities:

Notice requirements found in 16 TAC §3.8 (d)(6)(C)

• Additional requirements found in Texas Natural Resources Code (HB 480*) §§ 91.116 and 91.117

• Under HB480 "commercial surface disposal facility" means a facility whose primary business purpose is to provide, for compensation, surface disposal of oil field fluids or oil and gas wastes, including land application for treatment and disposal

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Commercial Landspreading Facilities:

• According to HB 480 §91.116 (d), notice must be published:

–At least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed and not later than the 30th day after the date on which the application is filed

–In a newspaper of general circulation in the county in which the proposed disposal would occur

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Notice Requirement: Notice by Application Type

Reclamation (R9):

–Notice requirements found in 16 TAC §3.57(c)*

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On-lease Commercial Solid Oil and Gas Waste Recycling (Division 2):

• Also referred to as Mobile Recycling

• The permittee is required to obtain written permission from the surface owner of the lease upon which recycling will take place and notify the appropriate Commission district office 72 hours before operations commence on each lease

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On-lease Commercial Solid Oil and Gas Waste Recycling (Division 2):

–Notice requirements found in 16 TAC § 4.218

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Off-lease or Centralized Solid Oil and Gas Waste Recycling (Division 3):

–Notice requirements found in 16 TAC §4.238

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Stationary Commercial Solid Oil and Gas Waste Recycling (Division 4):


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Stationary Commercial Solid Oil and Gas Waste Recycling (Division 4):

• According to 16 TAC §4.254 (a)(1) notice must be published:

–in a newspaper of general circulation in the county in which the proposed facility will be located

–at least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed with the Commission and not later than the 30th day after the date on which the application is filed with the Commission

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Off-Lease Commercial Recycling of Fluid (Division 5):


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Stationary Commercial Recycling of Fluid (Division 6):


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Stationary Commercial Recycling of Fluid (Division 6):

• According to 16 TAC §4.286 (a)(1) notice must be published:

–in a newspaper of general circulation in the county in which the proposed facility will be located

–at least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed with the Commission and not later than the 30th day after the date on which the application is filed with the Commission

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Disposal Pits – New (Initial) Application:

–Notice requirements found in 16 TAC §3.8 (d)(6)(C)

–Additional requirements found in Texas Natural Resources Code (HB 480) §§ 91.116 and 91.117

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Commercial Disposal Pits:

Notice requirements found in 16 TAC §3.8 (d)(6)(C)

• Additional requirements found in Texas Natural Resources Code (HB 480*) §§ 91.116 and 91.117

• Under HB480 "commercial surface disposal facility" means a facility whose primary business purpose is to provide, for compensation, surface disposal of oil field fluids or oil and gas wastes, including land application for treatment and disposal

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Commercial Disposal Pits :

• According to HB 480 §91.116 (d), notice must be published:

–At least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed and not later than the 30th day after the date on which the application is filed

–In a newspaper of general circulation in the county in which the proposed disposal would occur

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Notice Requirements: Proof of Notice

Providing Proof of Notice:

• Must include a copy of the notification letter(s) provided to surface owner/offset landowner(s)

• Certified mail is recommended*

• If published notice is required:

–Tear sheets of the notice are required. Entirety, Not Altered.

–Scans of print, clippings from the newspaper and drafts of the notice are NOT acceptable

–Publisher’s Affidavit is required

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Notice Requirements: Proof of Notice

Affidavit

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Notice Requirements: General Comments

General Comments:

• Adjacent landowners must be notified for any commercial environmental permit application, excluding On-Lease Commercial Solid Oil and Gas Waste Recycling (Division 2) and Reclamation permits*

• If you are providing a telephone number, be sure to provide the CORRECT phone number (512-463-3840). The fax number is not acceptable

• Landowner Notice is not required if the facility will be located on land owned by the applicant

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Notice Requirements: General Comments

General Comments:

• Failure to publish notice, in accordance with the rule will result in the application being returned

• Failure to provide proper notice may result in an application not being approved or cancellation of a permit after issuance if it is found that proper notice was not provided (refer to the specific rules)

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Questions

Questions?

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Renewals, Transfers and Amendments

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Renewals, Transfers and Amendments

• Reclamation (R9)

• Renewals

• Transfers

• Amendments*

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Renewals, Transfers and Amendments: Reclamation

Reclamation Plants (R9):

• Do NOT Renew or Transfer

• Change in operator will require submittal of a complete application, including all additional requirements (Diagrams, Notice, Financial Security, etc.)

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Renewals, Transfers and Amendments: Renewals

• Most permits issued by Environmental Permits & Support are renewable. These permits are typically issued for a period of five years and expire automatically unless renewal is requested by the Permittee.

• To request renewal of a RRC environmental permit, the Permittee must send a complete renewal application to Technical Permitting in Austin, and to the appropriate District Office, requesting renewal at least 60 days prior to the expiration of the permit.

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Discharge Renewals Require:

• Request Letter

• Application Fee (if applicable)

• Notice (if applicable)

–Surface owner at point of discharge

–Surface owners ½ tract downstream

–City Clerk or other appropriate official

• Water Analysis

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Private Permit Renewals Require:

• Request Letter


–Landowner

–Adjacent landowner


• New Form H-11 (Pits Only)

• Noncommercial Pit Permits do NOT require Notice

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Centralized Permit Renewals Require:

• Request Letter

• CCE (if applicable)


–Landowner



• NORM Survey (excluding Landspreading)

• New Form H-11 (pits only)

• Noncommercial Pit Permits do NOT require Notice

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Commercial Permit Renewals Require:

• Request Letter

• CCE


–Landowner


–Publication (excluding Collecting Pit)


• NORM (excluding Landspreading)

• New Form H-11 (pits only)

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Renewals, Transfers and Amendments: Transfers

• To transfer a RRC environmental permit, the Operator who will be the new Permittee after the transfer must send a letter to Technical Permitting in Austin requesting transfer of the permit(s).

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• The transfer request should be received after ownership has been transferred, but 60 days before the new Operator begins operations.

• A transfer request does not guarantee approval of a permit transfer and the permit may be subject to modification.

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• Commercial permits and discharges associated with a Form P-4 must transfer the Form P-4 before the environmental permit can be transferred.

• Non-commercial pit permits associated with a RRC-designated lease will require a transfer request when the Form P-4 is transferred to the new Operator unless otherwise stated in the current permit.

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• Transfer of Discharge:

–Request

–Water Analysis

• Transfer of Private/Centralized:

–Request

–New Form H-11 (pits only)

• Transfer of Commercial:

–Request

–NORM (excluding Landspreading)

–New Form H-11 (pits only)

–CCE124


Renewals, Transfers and Amendments: Amendments

• To request an amendment of a RRC environmental permit, the Permittee must send to Technical Permitting in Austin a letter describing the requested amendments that should explain why the amendments are necessary.

• Any change to operations regarding the permit should be noted. Any change to Diagrams, descriptions, etc. should be included.

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• If the permit requires financial security and the amendments to the permit would increase the cost of closure, a new Closure Cost Estimate (CCE) must be submitted.

• Depending on the significance of the permit amendments, surface owner, adjacent landowner, and published notice may be required.

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• An amendment request does not guarantee approval of a permit amendment and the permit may be subject to modification.

• Do not implement any changes subject to the amendment request prior to issuance of the amended permit, authorization from Technical Permitting and approval of the revised financial security (if financial security is required).

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• Amendment Requirements are case by case and determined based on significance of change.

• Examples:

–Volume/Capacity

–Surface Area

–Location

–Operational change

–Waste Streams

–Equipment

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• Amendments Require:

–Request Letter

–Detailed Description of change and any applicable Diagrams

• Amendments May Require:

–NORM Survey

–CCE

–Notice

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Questions

Questions?

130


NORM Surveys


NORM Surveys

Naturally Occurring Radioactive Material (NORM)

• Definition

• Jurisdiction

• When a NORM Survey is required

• What to include in NORM Survey

132


NORM Surveys: Definition

Naturally Occurring Radioactive Material (NORM) is encountered in oil and gas exploration, development and production operations, and originates in subsurface formations

• NORM accumulates within the sludge found in oilfield pits and tanks (tank bottoms). These solids become sources of oil and gas NORM waste

• NORM Rules found in 16 TAC Chapter 4, Subchapter F

133


NORM Surveys: Jurisdiction

– Texas Department of State Health Service (DSHS)

Regulates possession, use, transfer, transport, and storage

– The RRC gives authority to dispose of NORM waste in NORM authorized injection wells or private landfarms.

134


NORM Surveys: When a NORM Survey is Required

– Renewal applications for commercial facilities

– Transfer of commercial facilities* that have not been surveyed in over five (5) years

– The presence of NORM will affect the financial security

135


NORM Surveys: What to Include in a NORM Survey– The date of the survey

– The instrument used, the last calibration date, and a copy of the calibration records

– A background reading

– A site diagram showing where all readings, including the background, were taken. All tanks, pits and equipment are required to be surveyed

– The readings (in microroentgens per hour)

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NORM Surveys: What to Include in a NORM Survey

– Identification of Equipment Contaminated with NORM

– RULE §4.605 states that the operator must identify NORM-contaminated equipment.

NORMNORM

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Questions

Questions?

138


Closure Cost Estimates


Closure Cost Estimates

• Definition

• When a CCE is Required

• Major CCE Components

• Assumptions

• Filing Financial Security

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Closure Cost Estimates: Definition

• A Closure Cost Estimate (CCE) is:

– A CCE is a “written estimate approved by the Commission or its delegate as being equal to or greater than the maximum amount necessary to close the commercial facility” (see Statewide Rule 78 (l)(4)(A))*

– Statewide Rule 78: Requirements

– Financial Security (FS) required for commercial facilities is separate from FS filed for wells**

– Provides available funds for the RRC to close a facility, if necessary

141


Closure Cost Estimates: When a CCE is Required

• When is a CCE Required?

– Required for Commercial Facilities

• The amount of financial security to be maintained throughout the duration of the permit is determined by the CCE

– New Applications

– Renewal Applications*

– Transfer Application**

– Major Amendments***

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Closure Cost Estimates: Major CCE Components

• Major CCE Components:

– Offsite Waste Disposal Costs*

– Waste Loading & Transportation Costs

– Tank Cleaning/Removal/Disposal*

– Concrete Cleaning/Removal/Disposal

– Contaminated Soil Removal/Disposal

– Site Restoration

– Soil Sampling /Tilling (if applicable)

– Monitor Well Plugging

– Closure Soil Sampling

– Oversight & Contingencies

– Post Closure Activities143


Closure Cost Estimates: Assumptions

– Show all assumptions for estimated costs.

• Remove all waste from entire facility

• Transport, disposal, removal, backfill

• Crew, dozers, welders, cleaning, etc.

– Based on worst case scenario (i.e., all pits/tanks are full)*

– The facility is operated at permitted capacity with no pollution violations

– Restrictive Covenants**

• Property owner agrees material will be available for closure

• Must be certified by the RRC144


Closure Cost Estimates: Filing Financial Security

– Technical Permitting will issue a “CCE Approval” letter when the application is complete

– P-5 Department processes all financial security documents*

• Bond – Form CF-1

• Letter of Credit – Form CF-2

– A facility may not receive, store, handle, treat or dispose of oil and gas wastes or fluids at the facility until financial security is provided and approved by the RRC**

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Closure Cost Estimates: Filing Financial Security

• Filing Financial Security

– When transferring a permit, financial security must be on file with the RRC before the transferred permit will be issued.

– Financial Security must be maintained until the facility has been closed in accordance with the permit

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Questions

Questions?

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Restrictive Covenant


Restrictive Covenant

• Definition

• It is required?

• Components

• Filing

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Restrictive Covenant: Definition

• What is a Restrictive Covenant (RC)?

– Deed restriction stating that soil material will be used for closure

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Restrictive Covenant: Is it Required?

• Is a RC Required or Optional?

– Not required

– A Restrictive Covenant is required if fill dirt will be excavated from the property to use for any backfilling or grading

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Restrictive Covenant: Components

• Major Restrictive Covenant Components:

– A deed restriction stating that soil will be available for closure

– The location of the material

– Type of material

– Volume/amount of material

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Restrictive Covenant: Filing

1. Operator submits a draft RC2. Technical Permitting approves the closure cost

estimate and the closure plan3. Operator submits a signed RC with signatures

– The landowner– the operator

4. RRC signs the RC5. RRC returns the RC to the Operator6. Operator shall file the signed RC to the property

records of the county where the property is located

7. The Operator shall provide a certified copy of the RC back to the RRC

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Heidi [email protected]

Krystal [email protected]

Environmental Permit & Supports512-463-3840

Questions?