TENORM ISSUES FROM AN OIL AND GAS OPERATIONAL PROSPECTIVE. Kentucky Mineral Law Conference October 20, 2016 William G. Barr III

Transcription

1 TENORM ISSUES FROM AN OIL AND GAS OPERATIONAL PROSPECTIVE Kentucky Mineral Law Conference October 20, 2016 William G. Barr III

2 A discussion of the regulation of TENORM must begin with a establishing a clear definition of the subject matter. What is TENORM? The acronym stands for technologically enhanced naturally occurring radioactive material but under Kentucky s existing regulatory regime, its definition is confusing and unclear. Initially, it is clear that we must understand NORM to understand TENORM. NORM is an acronym for naturally occurring radioactive material. According to the United States Environmental Protection Agency (EPA), NORM is materials which may contain any of the primordial radionuclides or radioactive elements as they occur in nature, such as radium, uranium, thorium, potassium, and their radioactive decay products that are undisturbed as a result of human activities." Simply stated, the materials include rocks, soils, plants, animals and humans all of which naturally emit radioactivity. Technologically Enhanced Naturally Occurring Radioactive Material (TENORM) is defined as, "Naturally occurring radioactive materials that have been concentrated or exposed to the accessible environment as a result of human activities such as manufacturing, mineral extraction, or water processing." "Technologically enhanced" means that the radiological, physical, and chemical properties of the radioactive material have been concentrated or further altered by having been processed, or beneficiated, or disturbed in a way that increases the potential for human and/or environmental exposures. Kentucky has confusingly adopted a definition of NORM which is actually a generally accepted definition of TENORM. See, KRS , Section 8, where NORM is defined as meaning naturally occurring materials not regulated under the Atomic Energy Act of 1954, as amended, whose radionuclide concentrations have been increased by or as a result of human practices. Naturally occurring radioactive material does not include the natural radioactivity of rocks or soils, or background radiation, but instead refers to materials whose radioactivity is technologically enhanced by controllable practices (or by past human practices) (Emphasis added) Kentucky, along with Illinois, is a member of the Central Midwest Interstate Low-Level Radioactive Waste Compact ( Central Midwest Compact ) that was established in 1984 after Congress passed the 1980 Low-Level Radioactive Waste Policy Act granting the various states the responsibility to manage and dispose of low level radioactive waste (LLRW) generated within their states and authorized the creation of regional compacts. Subsequently, in 1999, the Central Midwest Compact, adopted a regional management plan ( RMP ) dealing with the handling and disposal of LLRW in the Compact states. The Compact defines LLRW to mean "radioactive waste not classified as (1) highlevel radioactive waste, (2) transuranic waste, (3) spent nuclear fuel, or (4) by-product material as defined in section 11e.(2) of the Atomic Energy Act of 1954." This definition does not exclude NORM or TENORM and, therefore, they are covered by the terms of Paper 11C 2

3 the RMP. The RMP has a definition of TENORM in line with the generally accepted definition cited by the EPA but in conflict with the language of section 8 of KRS The RMP states that It is the Compact s policy that TENORM waste with concentrations equal to or greater than 2000 pci/g are to be disposed at the regional LLRW disposal facility. After 17 years, none exist in Kentucky or Illinois. The RMP further states that TENORM waste with concentrations less than 2000 pci/g shall be disposed in the method approved by the appropriate party state regulatory agency, which in Kentucky is the Cabinet for Health and Family Services. Kentucky s definition of LLRW is found in KRS (6). It reads: "Low-level radioactive waste" or "waste" means radioactive waste not classified as high-level radioactive waste, transuranic waste, spent nuclear fuel, or by-product material as defined in Section 11e(2) of the Federal Atomic Energy Act. This definition shall apply regardless of any declaration by the federal government or any state that any radioactive material is exempt from any regulatory control. The definition does not exclude NORM or TENORM and therefore they are included as LLRW. One area where the Central Midwest Compact and Kentucky s regulatory scheme firmly agree is that it is illegal to import TENORM from other states into the Compact region for disposal. Kentucky has not promulgated administrative regulations to conform to the mandates of the Central Midwest Compact s policies or the RMP which it adopted. The result is that there is no LLRW disposal facility in the Compact area (Kentucky and Illinois) where TENORM with concentrations in excess of 2000 pci/g can be disposed, and no method has been approved by CHFS for disposal of TENORM with concentration less than 2000 pci/g. What is the practical effect of this lack of facilities and regulations? To answer that question we will limit our discussion to the Kentucky oil and gas industry and look at the issue from that prospective. Generally speaking, NORM and TENORM are present in most phases of oil and gas exploration and production efforts. The concentration and type of radionuclide present will depend upon the geology of the formations involved and the area of the state in which the activity is occurring. The radionuclides that are often present in oil and gas activities include Uranium (U) 238,Thorium (Th) 232, Radium (Ra) 224, 226, 228, Radon (Rn) 222, Polonium (Po) 210, Lead (Pb) 210, Potassium (K) 40. Geologically, the shales tend to be hotter (contain higher concentrations of radionuclides) that other formations, however, some other non-shale (sandstone or limestone) formations are more prone to result in the development of scale and sludge during the production of oil and gas, especially when water is introduced into the process. Paper 11C 3

4 Produced water and flow back water from hydraulic fracks are often treated, filtered and either reused or injected for disposal purposes. Water is also injected and circulated for in oil reservoirs for secondary recovery purposes to enhance the percentage of oil recovered. These processes may result in the formation of insoluble salts as scale and precipitate in sludge. Scale is formed when insoluble barium, calcium, and other compounds, as a result in the differences between downhole and surface temperature and pressure, precipitate from the water. Because radium is similar to barium and calcium it becomes part of the scale. Sludge is formed when solids such as scale, sand, rust, and dissolved solids precipitate from oil and produced water, and settle to the bottom of storage tanks. Sludge may contain concentrations radium 226 and lead 210 This scale and sludge collect in the form of deposits inside tubular goods (pipe and tubing) and tanks, and may have a more concentrated level of radionuclides that the rock formation in its natural state. Water injection and disposal plants often use filters to remove sediment and suspended solids from the water being handled. These filters (referred to as filter socks because of their appearance) and the sediments and solids that they collect (referred to as filter cake ) may also contain TENORM. Gas pipelines, compressor stations and gas processing plants may be contaminated by lead 210 and polonium 210 (progeny of radon 222 ). This TENORM is generally found as a deposit inside the pipes and equipment. With the Kentucky oil and gas industry being established well over 100 years ago and the issue of TENORM having been on the radar screen of state regulators for more than 30 years, the casual observer might ask Why now? Why is there are a new, increased interest in TENORM and its disposal? One has only to check the news coming out of eastern Kentucky in the early months of 2016 to quickly gain an appreciation for the new interest. Oil and gas waste generated in Pennsylvania was sent to West Virginia for processing/recycling. The recycling resulted in TENORM that had an elevated and concentrated radioactive level. The recycled waste material was illegally transported from West Virginia to Kentucky by a Kentucky waste broker and was improperly disposed in two eastern Kentucky landfills (Green Valley Landfill located outside Ashland and Blue Ridge Landfill located in Estill County, directly across the highway from the Estill County Middle and High Schools.) Investigations ensued by both the Energy and Environment Cabinet and the Cabinet for Health and Family Services, and they were quickly joined by the Kentucky Attorney General. Within a very short period of time, with the 2016 Legislature in session, Representative Cluster Howard of the 91 st District, which includes Estill County, filed House Bill 563 and was co-sponsored by most of the members of majority leadership in the House. The Bill quickly received the support of members of the environmental community and the Kentucky oil and gas industry. HB 563 was fast tracked and passed through both Paper 11C 4

5 chambers of the Legislature without a dissenting vote. The Bill, which is codified in KRS , directed the Energy and Environment Cabinet and Cabinet for Health and Family Services to review and revise existing regulations to ensure proper management of oil and gas related wastes containing TENORM. The Cabinets were also directed to consider the development of a manifest system, review of waste and water permitting programs, and, if needed, recommend changes to existing statutes. In the House Bill, it was recommended that that the two Cabinets seek input from oil and gas operators, transporters of waste, the public, landfill operators, and the Conference of Radiation Control Program Directors in revising regulations, and report their progress to the Legislative Research Committee by December 1, In the spring of 2016, a previously utilized group referred to as the Department of Natural Resources (DNR) Oil and Gas Workgroup, was reappointed and expanded for the purpose of assisting the agencies to comply with the mandates of the General Assembly. The Workgroup consists of 21 members composed of representatives of EEC, CHFS, Waste & Recycling Association, KGS, KY Chamber, oil and gas industry, KOGA, KY Resource Council, environmental community, EQC and others. As of the date of this paper, the Workgroup has met six times and more than fifty people have attended and participated in those meeting. Workgroup meetings and agendas are announced to the public and conducted under the Kentucky Open Meetings laws as contained in KRS Chapter 61. EEC, CHFS and the Workgroup have endeavored to draft a comprehensive administrative regulation dealing with possession, use, transfer, and disposal of TENORM relating to oil and gas exploration and production activities. The goals of the agencies and the Workgroup in drafting the soon to be proposed administrative regulation have included: 1) accurately defining TENORM, 2) exempting certain categories of TENORM from regulation, 3) establishing standards for sampling and testing of TENORM, 4) establishing standards for transportation and manifesting of TENORM, 5) establishing permissible levels, by tier, of radioactive concentration and disposal standards for disposal facilities, 6) establishing standards for the transfer of materials and equipment contaminated with TENORM, 7) establishing record keeping requirements, and 8) establishing worker training and safety standards. The Workgroup plans to meet two additional times before the end of 2016 to finalize the draft regulation. Paper 11C 5