Chairman Christi Craddick Commissioner Ryan Sitton Commissioner Wayne Christian May 2017

Discharge of Oil and Gas Waste Tiffany Humberson Environmental Permits and Support

Goal for Texas Waters It is the goal of Texas Railroad Commission to maintain and protect the quality of surface water and groundwater in the State. Policies shall be consistent with public health and welfare, and facilitate oil and gas industries, taking into consideration the economic development of the state. 3

Disclaimer This presentation is a quick overview and not intended to be a complete guide for filing discharge applications Each application is reviewed by an analyst and additional information and clarifications may be required Please read all of the rules that are specific to your type of discharge Contact Environmental Permits and Support for help should you have any questions (512-463-3840) 4

Topics for Discussion Laws and Rules Federal and State Jurisdiction RRC Definition of Surface Water Types of Discharges Required Testing Stormwater Discharges Other Permitting Options 5

Laws and Rules Federal Clean Water Act (CWA) State Texas Commission of Environmental Quality (TCEQ) Texas Surface Water Quality Standards (TSWQS) Railroad Commission of Texas (RRC) provides discharge permits for oil and gas activities. Memorandum of Understanding (MOU) Rule §3.30 CWA is the primary federal law in the U.S. governing water pollution. National Pollutant Discharge Elimination System (NPDES) permitting program for discharges TCEQ - TSWQS are in located in Texas Administrative Code (TAC), Title 30, Chapter 307 RRC must be compliant with the Water Code Section 26.131(b) 6

Federal and State Jurisdiction The Environmental Protection Agency (EPA) implements the NPDES permit program The RRC regulates the disposal of all oil and gas wastes Discharges to surface waters of the State must be permitted by both the EPA and the RRC 7

RRC Responsibility TAC Title 16, Part 1, Chapter §3.8 (Statewide Rule 8) – Water Protection No person subject to RRC may cause or allow pollution of surface or subsurface water No person may discharge of (or recycle) oil and gas waste except as authorized or permitted by RRC http://texreg.sos.state.tx.us/public/readtac$ext.TacPage?sl=R&app=9&p_dir=&p_rloc=&p_tloc=&p_ploc=&pg=1&p_tac=&ti=16&pt=1&ch=3&rl=8 8

Texas Surface Water Quality Standards Establish explicit goals for the quality of streams, rivers, lakes, and bays throughout the state Permit restrictions are based on water quality and concentration after discharge to the receiving body http://tceq.maps.arcgis.com/apps/webappviewer/index.html?id=b0ab6bac411a49189106064b70bbe778 9

RRC Definition of Surface Water Surface water - lakes, bays, ponds, impounding reservoirs, springs, rivers, streams, creeks, estuaries, marshes, inlets, canals, the Gulf of Mexico inside the territorial limits of the state, and all other bodies of surface water, natural or artificial, inland or coastal, fresh or salt, navigable or non-navigable, and including the beds and banks of all watercourses and bodies of surface water, that are wholly or partially inside or bordering the state or inside the jurisdiction of the state. 10 Defined by Rule §3.8(a)(29)

Discharge Permit Standards May not cause a violation of the Texas Surface Water Quality Standards (TSWQS) Each discharge has specific effluent testing and limitations based on the location and the wastewater analyses provided with application Additional testing parameters and limitations may be added based on chemicals added to the discharge 11

Types of Discharges A discharge may occur at the surface (ground) or be to surface waters Three most common types of discharges: Hydrostatic Test Water (HT) minor permit Gas Plant Effluent (GPE) Produced Water (Inland and Offshore) 12

Hydrostatic Test (HT) Discharges Hydrostatic tests are preformed to pressure test pipelines and tanks Authorized by a minor permit issued from the Austin office and is valid for 60 days. Must file two copies of the applications and attachments Contact EPA Region 6 to determine federal permitting requirements to surface waters 13

HT Permit Typical Testing Requirements Discharge to surface (ground) Discharge to surface (water) Parameter Limitation Benzene 0.5 mg/l 0.05 mg/l O&G 15 mg/l COD Report Conductivity TSS Analytical results must be reported within one month after the discharge is complete Pictures of the effluent treatment and fluid dispersal system must be included the report 14

Gas Plant Effluent Discharges Common waste streams include: Cooling tower blow-down Reverse Osmosis (RO) reject wastewater Compressor condensation Contact stormwater Requires Individual EPA permit (zinc, chromium) http://www.houstonchronicle.com/business/energy/article/Two-more-gas-export-plants-proposed-for-Texas-6154035.php 15

Produced Water Discharge Zones 16

West of 98th Not covered by an EPA general permit, but are covered under effluent guidelines found in 40 CFR Part 435, Subpart E Individual EPA Permit may be required Produced water must be beneficially used for agricultural or wildlife use when discharged into navigable waters 17

East of 98th Covered by EPA General Permit TXG 330000 which is up for renewal in July 2017 Notice of Intent (NOI) Produced water must be from Carrizo/Wilcox, Reklaw, or Bartosh formations Discharges into impaired waters may require an individual permit 18

Testing and Limitations (East 98th) Oil and Grease Daily max: 35 mg/l Monthly average: 25 mg/l Total Dissolved Solids (TDS) < 3,000 mg/l 24-hour acute WET test required Additional testing parameters and limitations may be added based results of Water Analysis or chemicals in the discharge 19

Territorial Seas Covered by EPA General Permit TXG260000 (renewed February 2017) Notice of Intent (NOI) Measured from the line of ordinary low water along that portion of the coast which is in direct contact with the open sea and the line marking the seaward limit of inland waters, and extending seaward a distance of three miles 20

Coastal Management Program Managed General Land Office (GLO) Protects natural habitats and wildlife Discharges must not adversely affect any critical area Coastal wetlands Oyster reefs Submerged aquatic vegetation 21

Outer Continental Shelf Covered by EPA General Permit GMG290000 which is up for renewal in September 2017 Notice of Intent (NOI) Authorized discharges for drilling fluids, drill cuttings, and produced water 22

Testing and Limitations (Offshore) Oil and Grease Daily max: 42 mg/l Monthly average: 29 mg/l Acute and 7-day Chronic WET Test (Territorial Seas) 7-day Chronic WET Test (Outer Continental) Additional testing parameters and limitations may be added based results of Water Analysis or chemicals in the discharge 23

Complete Water Analysis ALL RRC discharge applications require the complete water analyses report, with the exception of the HT (minor permit)

Whole Effluent Toxicity (WET) Test WET test measures the effluents effects on test organism’s (fresh or marine) ability to survive, grow, and reproduce Measures the potential toxicity of all chemicals in the solution Used to prevent the discharge of toxic amounts of pollutants to surface waters Test organisms include vertebrates and invertebrates Used to provide comprehensive view of an effluents effect of receiving waters without having to test for all chemical, physical and biological factors

Whole Effluent Toxicity (WET) Test Acute testing focuses on the survival of the organism Chronic testing evaluates growth and reproduction A WET test is passed by recording No Observable Effect Concentration (NOEC) at the calculated critical dilution concentration Daphnid (Ceriodaphnia dubia) Picture by Konrad P. Schmidt

Stormwater Discharges Two types of Stormwater: Noncontact - rainfall that does not come in contact with oil and gas wastes RRC discharge permit not required Contact - rainfall that accumulates in waste management units or contacts oil and gas wastes in active operation areas RRC discharge permit required Collected in pits or tanks

Best Management Practices Best Management Practices (BMPs) must be utilized at all authorized and permitted facilities: Use of berms, grading, or curbing to prevent runoff of contaminated fluids Perimeter berms are usually required around facilities Secondary containment requirements for storage tanks, pits, frac tanks, or other vessels containing wastes Good Housekeeping and Inspections

Other Permitting Options Land Apply Produced Water Must be not be detrimental to wildlife or agricultural Potential Sources: Produced water Noncontact stormwater Soil sampling and complete water analyses required Prevent runoff and pooling

Land Apply Permit Considerations Water quality of the effluent Soils/acreage to be irrigated Annual precipitation/evaporation Application method (sprinklers, gate valves, etc.) Run-off prevention (berms), silt fencing, channels, etc… Soil sampling parameters are based on the background sampling

Recycling Alternatives There are noncommercial as well as commercial recycling options to help cut cost and save resources

Environmental Permits and Support Thank you! Tiffany Humberson Environmental Permits and Support 512-463-4990 tiffany.humberson@rrc.texas.gov