Fact Sheet - Arkansas Department of Environmental Quality

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Page 1 of Fact Sheet

Permit No. 0000-WG-SW

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FACT SHEET

GENERAL PERMIT NO. 0000-WG-SW

BACKGROUND

A general permit for the surface facilities associated with salt water disposal (SWD) facilities was originally issued June, 1994 for a period of five (5) years and expired on May 31, 1999.

This general permit continued in effect and renewed on July 1, 1999 and November 1, 2006 and modified on January 31, 2009. The Arkansas Department of Environmental Quality (ADEQ) is preparing to renew the general SWD permit and modify it to reclassify some major modifications as minor modifications, to clarify certain provisions, and to remove redundant language.

Arkansas Oil and Gas Commission (AOGC) and Arkansas Department of Environmental Quality

(ADEQ) have been issuing permits and/or authorizations to operators of salt water disposal systems utilizing underground injection technology. The AOGC has been authorized by EPA to administer the Underground Injection Control Program pertaining to Class II injection wells. The

Class II wells of concern herein are those wells that inject the fluids brought to the surface during oil production and that may have been commingled with stormwater. This general permit is not applicable to wastewaters classified as hazardous at the time of injection.

The AOGC maintains regulatory authority over the construction and operation of the injection well facility from the well-head down (subsurface facilities), while ADEQ has maintained authority over and issued permits for the construction and operation of the above-ground facilities (surface facilities) associated with the salt water disposal system.

LEGAL BASIS

Under A. C. A. § 8-4-101, et seq. that a general permit would serve best the interests of both the applicants for SWD permits and the regulatory agencies, in that the permitting process will be streamlined and processing time reduced to a minimum, while at the same time, ADEQ can ensure that environmental protection will be maintained. The issuance of a general permit by

ADEQ authorizes operators to construct and operate the surface facilities of a SWD system in all areas of the State of Arkansas.

PERMIT COVERAGE

The proposed permit provides coverage for the surface facilities associated with Class II

Underground Injection Wells. For purposes of this general permit, surface facilities include, but are not limited to, transmission pipelines from the production site to the disposal site, salt water storage tanks or batteries and constructed firewalls.

A. TIMING OF REQUEST

Requests for coverage shall be submitted as follows:

An existing facility with an individual permit that may be eligible under this general permit may, at its option, remain regulated under its existing individual permit, or may apply for coverage under this general permit. New facilities located within the state of

Arkansas eligible for coverage under this general permit must submit a notice of intent

(NOI), Disclosure Statement, and initial permit fee to the Department at least thirty (30) days prior to the proposed discharge.

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Page 2 of Fact Sheet

Permit No. 0000-WG-SW

B. INDIVIDUAL PERMIT

The Director may require any person authorized to operate under the terms and conditions of this general permit to apply for and obtain an individual permit when:

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The permittee is not in compliance with the conditions of the general permit;

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A change has occurred in the availability of the demonstrated technology or practices for the control or abatement of pollutants applicable to land application methods;

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In the opinion of the Director, the facility covered by this permit is more appropriately controlled under an individual permit;

PERMIT CONDITIONS

The conditions of this general permit include a prohibition of discharge at any time of any crude oil, produced fluids including salt water, and any formation waters recovered during the production of oil and gas, as well as any wastewaters, including contaminated stormwater, from storage tanks, separators, firewalls, etc. This prohibition also applies to any discharges while being transported via pipeline from the production facility to the SWD system.

Under the terms of this general permit, notification of any changes in the operation of the facility must be submitted to the Director in a NOI and Disclosure Statement (if applicable).

Upon submittal of a revised or new NOI and Disclosure Statement for a facility covered under this general permit, a permit modification fee in accordance with ADEQ Regulation No. 9 must accompany the NOI, except for the following, when no fee is required: a.

Changes in operators b.

Changes in the volume of stored fluids that do not increase the size of the storage tanks or containment area c.

Addition or deletion of producing wells

All applicable provisions of APCEC Regulation No. 1 are incorporated into this general permit by reference.

Arkansas Oil and Gas General Rules and Regulations B-16(e)(2) requires the permittee must ensure that an impermeable containment berm (firewall) is constructed around all above-ground salt water storage tanks with the capacity to contain 150% or 1.5 times the contents of the largest tank within the firewall.

In the previous permit the operator was responsible for ensuring that all pipelines used for transporting salt water, produced fluids, or other oil field wastes from the production site(s) to the disposal site were in good structural condition and free from leaks. These fluids are typically very high in chlorides (>10,000 mg/L) and if left unchecked, leaks from these transmission lines could enter the surrounding groundwater and/or surface waters. Other federal and state general permits have demonstrated that visual inspections (ex. Stormwater Construction General Permit) are a cost effective way to reduce or eliminate pollutants from entering Waters of the State. To keep the costs to a minimum the Department is allowing the facility to determine pipeline monitoring frequency and/or alternative methods to show compliance with the condition.

However, more frequent monitoring may be required if the Department can demonstrate that the facilities current practices are inadequate.

Page 3 of Fact Sheet

Permit No. 0000-WG-SW

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PUBLIC COMMENT PERIOD & MEETING

The public notice describes the procedures for the formulation of final determinations and shall provide for a public comment period of 30 days. During this period, any interested persons may submit written comments on the permit and may request a public hearing to clarify issues involved in the permitting decision. A request for a public hearing shall be in writing and shall state the nature of the issue(s) proposed to be raised in the hearing.

The ADEQ will notify via an e-mail public notice of the permit to the Corps of Engineers, the

U.S. Fish and Wildlife Service, the Arkansas Game and Fish, the Department of Arkansas

Heritage, the EPA, and the Arkansas Department of Health for review and comments.

ADEQ will be conducting two informational meetings in the State to present the proposed changes to the renewal draft general permit for surface facilities associated with saltwater disposal facilities at the following locations, dates and times:

• October 18, 2011, at 2:00, ADEQ Headquarters, 5301 Northshore Drive, Commission Room,

North Little Rock, Arkansas

• October 20, 2011, at 6:00 p.m., Arkansas Oil and Gas Commission Office, 2215 West

Hillsboro, Commission Room, El Dorado, Arkansas

SOURCES

A.

APC&EC Regulation No. 1

B.

APC&EC Regulation No. 8

C.

APC&EC Regulation No. 9

D.

Previous general permit 0000-WG-SW effective November 1, 2006 and previous general permit modification 0000-WG-SW effective January 31, 2009.

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Arkansas Water and Air Pollution Control Act (A. C. A. § 8-4-101, et seq.)

F.

Arkansas Oil and Gas General Rules and Regulations effective July 29, 2011 (specifically B-

26(e)(2)).

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ADEQ Guidelines for Reporting, Responding To, and Remediating Crude Oil, Salt Water and Brine Spills (Rev. 1/26/2000)

CHANGES FROM THE PREVIOUS PERMIT

The major changes from the previously issued permit are as follows:

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Redundant statements and permit conditions were removed throughout the general permit.

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Require the operator to prepare an inspection report to identify any leaks that were found and repaired.

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Notification in the NOI on how non-contaminated stormwater will be disposed of.

ECONOMIC IMPACT

Most of the requirements in this permit were in the previous permit. The Department has included an additional requirement for the inspection and record keeping of the transmission pipeline and is described in more detail in section 4 of the Fact Sheet. In order to comply with the condition, the Department is requiring the operator to perform and record visual inspections.

Page 4 of Fact Sheet

Permit No. 0000-WG-SW

It is recommended that while in route to conduct day-to-day operations, the operator or a designated representative perform the visual inspections on the transmission pipelines and document what was seen. In an effort to keep costs to a minimum the Department has included the following allowances:

The facility may establish the monitoring frequency; and

The facility may propose alternative means of compliance.

The inspection and control requirements are set at a level to protect water quality while minimizing the resources required for compliance. This permit lessens the burden previously required of owners because of the removal of the requirements to submit a Notice of Intent and a permit fee for: a.

a 15% or more increase in the volume of salt water disposed, b.

changes in the injection formation(s), interval(s), and injection pressure(s), c.

a decrease in above ground storage capacity, d.

or any construction and/or operational modifications required by the AOGC.

The permit fee of $250.00 is allowed by ADP&EC Regulation No. 9 and remains unchanged.

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