DEPARTMENT OF ENVIRONMENTAL PROTECTION BUREAU OF OIL AND GAS MANAGEMENT

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1 DEPARTMENT OF ENVIRONMENTAL PROTECTION BUREAU OF OIL AND GAS MANAGEMENT DOCUMENT NUMBER: TITLE: Oil and Gas Wastewater Permitting Manual EFFECTIVE DATE: October 30, 2001 AUTHORITY: POLICY: APPLICABILITY: PURPOSE: DISCLAIMER: The Oil and Gas Act (P.L. 1140, No. 223) (58 P.S et seq.) The Clean Streams Law (P.L. 1987, No. 394) (35 P.S et seq.) Solid Waste Management Act (P.L. 380, No. 97) (35 P.S et seq.) The Administrative Code (P.L. 177, No. 175) (71 P.S et seq.) 25 Pa. Code Chapters 78, 91, 92, 95, 96, 102, 105, 106, 261a, 287, 288, 289, 291, 293, 299 This document provides guidance to the oil and gas industry on DEP policies and the process of permitting facilities for the handling, treatment, and disposal of wastewaters from oil and gas drilling and production. This is a comprehensive manual to provide instructional guidance to oil and gas operators (or others) who would seek a DEP permit or approval to handle, treat and/or dispose of oil and gas wastewaters. This document is available as a paper copy in the Oil and Gas Operators Manual (Doc. ID# ), as Appendix 5. It is being made available as a separate document to those whose interest is primarily in wastewater permitting, not in the oil and gas industry as a whole. The policies and procedures outlined in this guidance document are intended to supplement existing requirements. Nothing in the policies or procedures shall affect regulatory requirements. The policies and procedures herein are not an adjudication or a regulation. There is no intent on the part of the Department to give these rules that weight or deference. This document establishes the framework, within which DEP will exercise its administrative discretion in the future. DEP reserves the discretion to deviate from this policy statement if circumstances warrant. PAGE LENGTH: 67 pages LOCATION: Volume 10, Tab 03

2 TABLE OF CONTENTS PAGE CHAPTER I - INTRODUCTION...1 CHAPTER II - APPLICABLE LAWS AND REGULATIONS PERTAINING TO THE MANAGEMENT OF OIL AND GAS WASTES...2 A. Federal Water Quality Act...2 B. The Pennsylvania Clean Streams Law...2 C. Rules and Regulations...2 D. Oil and Gas Act (Act 223)...3 E. The Solid Waste Management Act...4 F. The Dam Safety and Encroachments Act...4 G. Federal Underground Injection Control Program...4 H. The Pennsylvania Fish and Boat Code...5 I. Municipalities Planning Code...5 CHAPTER III - PERMITS AND APPROVALS FOR OIL AND GAS WASTE DISPOSAL ACTIVITIES...6 A. NPDES Permits...6 B. Water Quality Management Part II Permits...6 C. Other Permits and Approvals Preparedness, Prevention, and Contingency (PPC) Plans Soil Erosion and Sedimentation (E & S Control Plans Headwall/Outfall and Other Encroachment Permits Solid Waste Permits for Hazardous and Residual Wastes...8 D. Permit Coordination...8 CHAPTER IV - NPDES PERMITS...9 A. General Requirements Application Forms Application Fee Preliminary Conference Services of Professional Consultants Public Notification Requirements Municipal and County Notification of Permit Application Local Land-use Plans and Ordinances...11 B. Review of NPDES Applications Application Review Time Administrative Review / October 30, 2001 / Page i

3 3. Technical Review...12 C. Determination of Wastewater Treatment Requirements Minimum Treatment Required Discharges to "Special Protection" Waters...14 D. Other NPDES Permit Actions Transfer of Permits Amendments to Permits Termination of Permits Renewal of Permits Revocation and Reissuance of Permits...16 CHAPTER V - GENERAL NPDES PERMIT FOR DISCHARGES FROM STRIPPER OIL WELLS...17 A. General NPDES Permit Eligibility...17 B. Application Process...17 C. Application Review Process Administrative Review Technical Review...18 D. Other Conditions...19 CHAPTER VI - NPDES STORMWATER DISCHARGE PERMITS...21 A. General Requirements...21 B. Stormwater Discharges Associated with Construction Activities General NPDES Permit Individual NPDES Permit Permit Transfer, Co-Permittee or Termination...24 C. Stormwater Discharges Associated with Industrial Activities Activities Requiring a Permit General NPDES Permit Individual NPDES Permit Permit Transfer or Termination...28 CHAPTER VII - WATER QUALITY MANAGEMENT PART II PERMITS...29 A. General Requirements Application Forms Application Fee Services of Professional Consultants Publication Notification Requirements Municipal and County Notification of Permit Application / October 30, 2001 / Page ii

4 B. Review of Water Quality Management Part II Permit Applications Application Review Time Administrative Review Technical Review Preliminary Design Considerations...32 C. Determination of Wastewater Treatment Facility Requirements...33 D. Procedures for Obtaining Experimental Part II Permits General Information Duration of Experimental Permits...33 E. Other Water Quality Management Part II Permit Actions Transfer of Permits Amendments to Permits Termination and Revocation of Permits Cancellation of Permits...34 CHAPTER VIII - SUBSURFACE INJECTION OF BRINE FOR DISPOSAL AND ENHANCED RECOVERY WELLS...35 A. Introduction...35 B. General Requirements...35 C. Well Permits...35 D. Injectivety Testing...36 E. Existing Enhanced Recovery or Disposal Wells...36 APPENDICES A. Guidelines for the Preparation of the Design Engineer's Report... A-1 B. Guidelines for Preparedness, Prevention, and Contingency (PPC) Plans for Oil and Gas Wastewater Discharge, Storage, or Treatment Facilities...B-1 ADDENDUMS I. Pollution Incident Prevention Practices...I-1 II. III. Examples of An Emergency Coordinator s Duties and Responsibilities...II-1 Examples of Emergency Equipment... III / October 30, 2001 / Page iii

5 CHAPTER I INTRODUCTION The Department of Environmental Protection (DEP) is required by law to protect the quality of both surface and underground waters of the Commonwealth of Pennsylvania through the prevention and abatement of water pollution. The Bureau of Oil and Gas Management (BOGM) was established within DEP as the focal point for the regulation and coordination of oil and gas well development activities. This manual was prepared as a guide to the procedures and requirements for obtaining NPDES permits (Part I) for surface water discharges, Water Quality Management Part II Permits for treatment facilities, or activities which discharge wastewaters to surface waters or groundwater, and permits for disposal and enhanced recovery wells for subsurface injection of brine originating from the oil and gas industry. The manual also provides an introduction to the rules and regulations governing the management of wastewaters generated by the oil and gas industry and background information for other permits or approvals which may be required for oil and gas activities. For more information regarding any of the topics mentioned in this manual, refer to the Oil and Gas Act, the Rules and Regulations of the Department, the Oil and Gas Operators Manual, or contact any of the offices of the Oil and Gas Management Program listed on the map on the following page. The map also indicates the regional boundaries for the Southwest (Pittsburgh) and Northwest (Meadville) Regional Offices / October 30, 2001 / Page 1

6 CHAPTER II APPLICABLE LAWS AND REGULATIONS PERTAINING TO THE MANAGEMENT OF OIL AND GAS WASTES This chapter discusses the authorizing statutes and regulations upon which the Department and other agencies base their actions. Copies of the Clean Streams Law and the various implementing regulations may be obtained from any office of the Oil and Gas Management Program. A. Federal Water Quality Act The basic structure of the Water Quality Act originated with the Federal Water Pollution Control Act of 1972 (P.L ) (the Act). The 1972 Act declared objectives for achieving "fishable and swimmable" water quality in the waters of the nation through the elimination of discharges of pollutants to those waters. Sections 301 and 302 of the Act defined the levels of treatment to be achieved through technology based effluent limitations and established deadlines to achieve compliance with these limitations. These sections also provide for the establishment of water quality limitations for the protection of human health and aquatic life. Amendments to the Act in 1977 and 1987 shifted emphasis from controlling conventional pollutants to bringing toxic discharges into compliance. The amendments changed the name of the Act to the Clean Water Act in 1977, and then to the Water Quality Act in Changes to the Act included new deadlines for achieving compliance with the higher required levels of treatment. The 1987 amendments also require implementation of a comprehensive national program to address non-agricultural sources of stormwater discharges. Section 402 of the Act established the National Pollutant Discharge Elimination System (NPDES) permits as the mechanism to be used to achieve the statutory goals. Through the use of NPDES permits, the Environmental Protection Agency (EPA) or DEP may issue permits for the discharge of pollutants, prescribe conditions for the permits to assure compliance with the Act, and abate violations of the permits through enforcement actions. B. The Pennsylvania Clean Streams Law The Pennsylvania Clean Streams Law (35 P. S , et seq.), enacted in June of 1937, has been amended several times. The most recent amendment occurred in October of The Clean Streams Law provides the Department of Environmental Protection with the powers and duties to prevent pollution to waters of the Commonwealth and to reclaim and restore polluted waters to unpolluted conditions. Article III of the Clean Streams Law addresses industrial wastes, which include oil and gas wastes. This article states that all industrial waste discharges must be authorized by Department rules and regulations, or that any person who intends to discharge industrial waste must first obtain a permit from the Department to discharge the waste directly or indirectly to waters of the Commonwealth. Article III also requires approval in the form of a permit of all plans and specifications prior to the construction of treatment facilities. Operation of the facilities must be performed in accordance with Department rules and regulations. The Clean Streams Law also establishes enforcement procedures and penalties for violations. C. Rules and Regulations Under the provisions of Article I of the Clean Streams Law, the Environmental Quality Board has been given the power and duty to establish rules and regulations to control water pollution and to protect water quality. The following chapters of regulation relate to the control of waste discharges from oil and gas operations: / October 30, 2001 / Page 2

7 Chapter 16 (25 Pa. Code Chapter 16) - Sets forth the Department's statement of policy concerning the water quality toxics management strategy. It also contains water quality criteria for toxic substances and the analytical methods and detection limits for toxic substances. Chapter 91 (25 Pa. Code Chapter 91) - Sets forth several general provisions for administration and enforcement of Pennsylvania's water pollution control program and establishes specific application requirements, fee schedules, and conditions for approval and permitting of the construction and operation of wastewater treatment facilities in Pennsylvania. It also sets forth the Department s pollution prevention program and requirements for reporting releases that may cause pollution. Chapter 92 (25 Pa. Code Chapter 92) - Sets forth provisions for administration of the National Pollutant Discharge Elimination System (NPDES) program within Pennsylvania, and establishes criteria for the content of NPDES permit applications (including General NPDES Permits), effluent standards, monitoring requirements, standard permit conditions, public notification procedures, and other requirements. Chapter 93 (25 Pa. Code Chapter 93) - Defines specific water quality criteria and designated water uses to be protected for streams in Pennsylvania. It also contains the water quality antidegradation program for protecting exceptional value and high quality streams and existing uses of all surface waters. Chapter 94 (25 Pa. Code Chapter 94) - Sets forth requirements for discharging industrial waste to a Municipal Sewage Treatment Plant. Chapter 95 (25 Pa. Code Chapter 95) - Sets forth minimum treatment requirements for all industrial wastes and oil bearing wastes. Chapter 96 (25 Pa. Code Chapter 96) - Sets forth the standards for water quality protection and for establishing Total Maximum Daily Loads (TMDLs) and Water Quality Based Effluent Limitations (WQBELs) for water quality protection. Chapter 102 (25 Pa. Code Chapter 102) - Outlines requirements for the control of erosion and sediment to waters of the Commonwealth resulting from earthmoving activities and the NPDES Permit for Stormwater Discharges Associated with Construction Activities at Oil and Gas Wells. D. Oil and Gas Act (Act 223) The Oil and Gas Act (58 P. S , et seq.) provides the Department of Environmental Protection with the duties and powers to regulate the drilling and operation of oil and gas wells. The purpose of the Act is to permit the optimal development of oil and gas resources while protecting the safety, property, rights, and natural resources of all persons affected by oil and gas exploration and development. Sections 204 through 210 and Section 215 of the Act address controlling wastewaters from oil and gas exploration and development by imposing requirements for the prevention of fresh water or natural resource contamination, well site locations, well site restoration, casing of wells, protection of water supplies, use of safety devices, plugging of wells, and bonding. Chapter 5 of the Act provides the Department with various remedies to correct violations. Section coordinates permitting and bonding requirements with the Solid Waste Management Act for any on-site pit, impoundment, method, or facility used for disposal, processing, or storage of residual wastes from oil and gas exploration and development activities, as long as the operator complies with Sections 201, 203, and 215 of this Act and any applicable regulations. Chapter 78 (25 Pa. Code Chapter 78) - Sets forth provisions for permits, transfers and objections; environmental protection performance standards; well drilling, operation and plugging; reporting; certified laboratories; bonding for oil and gas activities; and underground gas storage. This chapter also sets forth / October 30, 2001 / Page 3

8 the inspection policy of the Department to be used for all operations or activities governed by the Oil and Gas Act. E. The Solid Waste Management Act The development of oil and gas wells and operation of wastewater treatment facilities generates residual wastes which must be managed in accordance with requirements of the Solid Waste Management Act (35 P.S , et seq.) and the Department s residual waste management regulations. The Solid Waste Management Act defines solid waste as "Any waste including, but not limited to, municipal, residual, or hazardous wastes, including solid, liquid, semisolid or contained gaseous materials." The definition proceeds further to specifically omit drill cuttings. Drill cuttings are defined as "Rock cuttings and related mineral residues created during the drilling of wells pursuant to the Oil and Gas Act, provided such materials are disposed of at the well site and pursuant to Section 206 of the Oil and Gas Act." The requirements for the onsite disposal of drill cuttings and residual waste are contained in 25 Pa. Code Chapter 78. Residual waste is defined as "Any garbage, refuse, discarded material or other waste including solid, liquid, semisolid or contained gaseous materials resulting from industrial, mining and agricultural operations and any sludge from an industrial, mining, or agricultural water supply treatment facility, waste water treatment facility or air pollution control facility, provided that it is not hazardous." This Act requires a permit for residual waste disposal and processing facilities. As stated in section D for the Oil and Gas Act, this permit obligation is satisfied under the provisions of the Oil and Gas Act for activities at the well site so long as the requirements of Section 603 of the Oil and Gas Act are met. Also, temporary storage (less than one year) of residual wastes does not require a permit. 25 Pa. Code Chapters 287, 288, 289, 291, 293, 295, 297, and 299, set forth the provisions for regulating the storing, collecting, transporting, processing, or disposing of solid waste, and establishes the requirements for planning and permitting solid waste facilities. 25 Pa. Code Chapters 260a to 270a establishes the provisions for regulating the identification, listing, generation, handling, and disposal of hazardous wastes. F. The Dam Safety and Encroachments Act The Dam Safety and Encroachments Act (32 P. S , et seq.) states that no person shall construct, operate, maintain, modify, enlarge, or abandon any dam, water obstruction, or encroachment without a prior written permit from the Department. A water obstruction is defined as "any dike, bridge, culvert, wall, wing wall, fill, pier, wharf, embankment, abutment, or other structure located in, along, across, or projecting into any watercourse, floodway, or body of water." It is important to note that "body of water" is defined as including wetlands, swamps and marshes. Thus, any obstruction or encroachment in a wetland requires a permit. Encroachments and obstructions may also require a U.S. Army Corps of Engineers permit under Section 404 of the federal Water Quality Act. Chapter 105 (25 Pa. Code Chapter 105) - Sets forth provisions for the proper planning, design, and construction of dams, water obstructions, and stream encroachments which have an impact upon surface waters and wetlands of Pennsylvania. This chapter also provides the requirements for outfalls and for general permits. G. Federal Underground Injection Control Program The Underground Injection Control (UIC) program was established under the authority of Part C of the federal Safe Drinking Water Act (SDWA). The UIC program regulates various classifications of waste injection wells, including Class II oil and gas wells (Class II D produced fluid disposal wells and Class II R enhanced recovery wells). The UIC program is administered under the following Federal regulations: 40 CFR Part Procedures for Decision Making, 40 CFR Part Underground Injection Control Program, 40 CFR Part Underground Injection Control Program Criteria and Standards, and 40 CFR / October 30, 2001 / Page 4

9 Part State Underground Injection Control Programs. The UIC program is administered by the EPA in Pennsylvania. For more information, contact the U.S. Environmental Protection Agency, Region 3, Underground Injection Control Section, 1650 Arch Street, Philadelphia, PA, Telephone No. (215) H. The Pennsylvania Fish and Boat Code The Pennsylvania Fish Commission administers and enforces the Fish and Boat Code (30 Pa. P. S. 101, et seq.) and other laws of the Commonwealth (including applicable laws administered by DEP such as the Clean Streams Law) relating to the encouragement, promotion, and development of fishery interests, and the protection, propagation, and distribution of fish. Section 2504 of the Code makes it illegal to allow any substance, deleterious, destructive, or poisonous to fish, to enter the waters of the Commonwealth. Specific problems are identified by the Fish Commission through routine patrols or in response to citizen complaints. I. Municipalities Planning Code The Municipalities Planning Code (53 P.S et. Seq.) was amended by Acts 67 and 68 of 2000 to promote Smart Growth. The Acts direct that state agencies... shall consider and may rely upon comprehensive plans and zoning ordinances when reviewing applications for the funding or permitting of infrastructure or facilities. The Department has developed the Policy for Consideration of Local Comprehensive Plans and Zoning Ordinances in DEP Review of Permits for Facilities and Infrastructure. This Policy dictates how DEP reviews NPDES and Water Quality Management Part II Permits for compliance with Acts 67 and / October 30, 2001 / Page 5

10 CHAPTER III PERMITS AND APPROVALS FOR OIL AND GAS WASTE DISPOSAL ACTIVITIES Pennsylvania received delegation of the NPDES Permit Program from EPA on June 30, As part of the plan to integrate the NPDES program into the existing state permit system, a two-part permitting process was instituted, which included the NPDES permit (Part I) and the Water Quality Management Part II Permit. The following sections describe these two state issued permits along with other permits and approvals required for the construction and operation of a treatment or disposal facility. A. NPDES Permits Any person or facility that discharges pollutants from point sources into surface waters within Pennsylvania must obtain a NPDES permit. The purpose of this permit is to establish effluent limitations, monitoring and reporting requirements, and a schedule (as required) for complying with the terms and conditions of the permit. This permit has a fixed life not exceeding five (5) years and must be renewed at the end of the term. The specific permit application requirements and procedures are contained in Chapter 92 of the Department's Rules and Regulations. General NPDES permits are available for discharges from stripper oil wells and stormwater from construction and industrial activities. The process for obtaining coverage under a general permit is more simplified than obtaining an individual permit. Certain activities within Pennsylvania are not required to obtain a NPDES permit. These activities are as follows: 1. Closed systems, where there is no discharge of industrial wastes from the facility. 2. Industrial waste pretreatment facilities, which discharge to Publicly Owned Treatment Works (POTW's), or privately owned treatment works, except where the Department determines that a permit is needed to assure protection of waters of this Commonwealth. 3. Use of water, gas or other material injected into a well for enhanced recovery of oil or gas, and disposal of water produced from an oil or gas well into a disposal well. B. Water Quality Management Part II Permits A Water Quality Management Part II Permit must be obtained if one intends to: Construct and/or operate wastewater treatment facilities. Dispose of wastewater via land application (unless applying tophole water to the land in accordance with Chapter 78 of the rules and regulations). Construct, operate, and maintain an impoundment to be used for long-term storage of wastewaters (unless an approval to operate a pit as an impoundment for long-term storage is obtained under Chapter 78) or for wastewater treatment. Treatment facilities or activities which discharge wastes or have the potential to cause pollution to surface waters or groundwater of the Commonwealth are required to obtain this permit. The intent of a Part II permit is to insure that facilities for treatment and disposal of oil and gas wastewaters are designed, constructed, and operated in such a way that they will individually and collectively perform their intended functions, and thereby prevent pollution of waters of the Commonwealth. These permits may / October 30, 2001 / Page 6

11 also specify appropriate surface or ground water monitoring which may be necessary to assure proper operation and maintenance of the permitted facilities, approve various management practices to be carried out by permittees (such as, Preparedness, Prevention, Contingency plans, and Erosion and Sediment Control plans), and approve certain stream encroachments. Facilities for long-term storage of oil and gas wastewaters will require permitting under 25 Pa. Code Chapter 299 of the residual waste regulations. The Part II permit normally has no expiration date; however, the permit conditions require that the facility be constructed within two years following the date of permit issuance, or the permit is voided. The requirements for preparing applications and obtaining Part II permits are included in Chapter 91 of the Department's Rules and Regulations and are discussed in Chapter VII of this manual. Certain activities within Pennsylvania do not normally require a Part II permit. These activities are as follows: 1. Closed systems, where there is no discharge of industrial wastes from the facility (the Department may, pursuant to Section 402 of the Clean Streams Law, require a permit if there exists the possibility of an occasional discharge from the system, or the potential for pollution to occur). 2. Industrial waste pretreatment facilities which discharge into POTW's are not normally required to obtain a Water Quality Management Part II Permit, although the Department may require a permit where necessary to assure protection of waters of this Commonwealth. The permit requirement for a disposal or enhanced recovery well, or altering an existing well to be a disposal or enhanced recovery well are discussed in Chapter VIII. C. Other Permits and Approvals A number of other permits and approvals may be required for oil and gas waste treatment activities or facilities. The following is a brief description of such permits and approvals: 1. Preparedness, Prevention, and Contingency (PPC) Plans Persons who conduct activities which have the potential for accidental release of pollutional materials to surface water or groundwater must prepare a PPC plan. Two copies of the PPC plan must be prepared and submitted for review and approval as part of the NPDES permit application. For new discharges where the source of wastewater generation does not yet exist, or if the facility does not require an NPDES permit, two copies of the PPC Plan should be submitted with the Water Quality Management Part II Permit application. For further information on PPC planning requirements, refer to the Department's Guidelines for the Preparedness, Prevention, and Contingency (PPC) Plans for Oil and Gas Wastewater Discharge, Storage, or Treatment Facilities located in Appendix B. 2. Erosion and Sediment (E&S) Control Plans Prior to the commencement of any activity that involves earthmoving on a site greater than 5,000 square feet, an erosion and sediment (E&S) control plan must be prepared for the site. If the construction of any type of wastewater facility requiring a Part II permit involves earthmoving activities, an E&S control plan must be prepared and submitted for review and approval as part of the Part II permit application. A separate Earth Disturbance permit or NPDES permit is not needed. Where large amounts of earthmoving are involved, the applicant is encouraged to submit the E&S Control Plan to the appropriate County Conservation District Office for review. The plan, along with the Conservation District's comments, may then be submitted with the Part II permit application / October 30, 2001 / Page 7

12 For additional information regarding the contents of an Erosion and Sediment Control Plan, refer to the Oil and Gas Operator's Manual which is available from any office of the Oil and Gas Management Program and to 25 Pa. Code Chapter 102 of the Rules and Regulations. 3. Headwall/Outfall and Other Encroachment Permits Any person who locates or modifies an industrial activity or waste treatment facility within the 100- year frequency floodway, or within 50 feet of the top of a stream bank in the absence of a delineated floodway, must obtain a Water Obstruction and Encroachment permit. A permit must also be obtained for construction or modification of any stream crossing, outfall, or headwall. Certain obstructions or encroachments may be authorized through the use of a general permit. The requirements for all activities noted above are discussed in Chapter 105 of the Rules and Regulations of the Department. Further information may be obtained by contacting any office of the Oil and Gas Management Program or refer to Chapter IV of the Oil and Gas Operators Manual. 4. Solid Waste Permits for Hazardous and Residual Wastes The operator of any industrial facility which generates, processes, treats, disposes, stores, or transports hazardous wastes must obtain the applicable licenses, permits, and approvals for such activities as required by the Solid Waste Management Act. Permits are also required for the processing and disposal of residual wastes. As discussed in Chapter II, permit and bonding requirements pursuant to the Solid Waste Management Act may be satisfied for the on-site disposal of residual waste at oil and gas wells as provided in Chapter 78 of the Department's Rules and Regulations. For further information regarding hazardous or residual waste permit requirements, refer to 25 Pa. Code Chapters for residual waste and Chapters for hazardous waste, or contact any office of the Oil and Gas Management Program, or the Bureau of Waste Management. D. Permit Coordination The Department has established a permit coordination process to ensure that permits or approvals issued under one environmental program will not conflict with permits or approvals issued by another program. Upon receipt of a NPDES or Part II permit application, the various regional environmental programs will be notified and will indicate whether or not additional permits or approvals are required for the project. The applicant will be notified of any other required permits or approvals. Depending upon the environmental sensitivity or other concerns related to the project, the Department may elect to coordinate the issuance of all permits and approvals / October 30, 2001 / Page 8

13 CHAPTER IV NPDES PERMITS A. General Requirements Any person or facility which "discharges pollutants from a point source" into surface waters within Pennsylvania must obtain a National Pollutant Discharge Elimination System (NPDES) permit. The term "person" means - an individual, association, partnership, corporation, municipality, State or Federal agency, or an agent or employee thereof. This Chapter explains the requirements for individual NPDES permits. Chapters V explains the General NPDES Permit for Discharge from Stripper Oil Wells. Chapter VI explain the requirements for NPDES stormwater permits. For a new discharge, the NPDES permit (Part I) must be obtained, along with any corresponding Water Quality Management Part II Permit, prior to construction of wastewater treatment facilities and commencement of discharge. The topics discussed below indicate items that should be addressed by an applicant prior to the submission of a NPDES permit application to the Department: 1. Application Forms - Persons wishing to obtain a NPDES permit to discharge industrial wastewater must file three copies of the appropriate application forms for either new or existing discharges. Copies of application forms for NPDES permits may be obtained at either of the regional offices of the Oil and Gas Management Program. The original and signed application must be notarized. Additional forms and specified materials, as required, must also be included as part of the application. Requests for confidentiality of information being submitted must comply with the general requirements of Section 607 of Pennsylvania's Clean Streams Law and Chapter 92 of the Department's Rules and Regulations pertaining to the NPDES permit program. Claims for confidentiality must be substantiated at the time of application and must be so indicated. Information submitted on NPDES permit application forms or attachments may not be claimed as confidential. However, the applicant may request confidentiality for information which goes beyond that required by the forms, except for effluent data which will not be considered confidential. The Application must be signed by one of the following: In the case of corporations, by a principal executive officer of at least the level of vice president, or his duly authorized representative, if such representative is responsible for the overall operation of the facility from which the discharge described in the NPDES form originates. In the case of a partnership, by a general partner. In the case of a sole proprietorship, by the proprietor. In the case of a municipal, state, or other public facility, by either a principal executive officer, ranking elected official, or other authorized employee. 2. Application Fee - An application fee in the amount of $ must be submitted with the NPDES permit application. This fee is not required of agencies of the Commonwealth. The check or money order should be made payable to "The Commonwealth of Pennsylvania" and should not be more than 15 days old when received by the Department / October 30, 2001 / Page 9

14 3. Preliminary Conference - Prior to preparing and submitting a NPDES permit application, the applicant is encouraged to contact the appropriate Oil and Gas Management Program regional office to discuss application requirements and other factors which may directly affect the permit application review process. 4. Services of Professional Consultants - It is not necessary for the applicant to obtain a registered professional engineer to prepare the NPDES permit application. However, it may be advantageous, in a more complex situation, to consider obtaining such services. Often, it will be necessary to utilize a commercial laboratory to perform the required testing of untreated and treated wastewaters. 5. Public Notification Requirements - Section 307 of Pennsylvania's Clean Streams Law requires that the applicant publish a notice of its intent to apply for a permit to discharge industrial wastes to the waters of the Commonwealth, in a newspaper of general circulation in the locality in which the industrial facilities are located, when: (i) there is a new discharge; (ii) there is a previously unpermitted discharge; or (iii) there is an existing discharge which has significantly changed the character of the wastewater. This notice must appear once per week for four (4) consecutive weeks. The notice may read as shown below. The notice should be located at, or near, the top of a right-hand page, as far forward as possible in the first section of the newspaper. The notice should appear as a "display" type advertisement. Whenever possible, it should be set-off from the surrounding material by a black border. The notice should be at least 2 3 / 4 inches, or two columns wide (whichever is greater), and at least 4 inches high. As part of the NPDES permit application materials, the applicant must attach acceptable evidence of its fulfillment of the public notification requirements described above. This evidence may consist of either a properly notarized "proof of publication," or clippings of the advertisement, intact with the datelines of four (4) required publication dates. SAMPLE NPDES PERMIT APPLICATION NEWSPAPER NOTICE NOTICE Notice is hereby given that the (Company Name, Address, and Telephone Number) intends to make application to the Department of Environmental Protection, for a permit for the discharge of industrial wastes in a manner which meets Department requirements, from its facility located in (municipality), (county). This is a (new, existing) discharge of a (temporary, intermittent, continuous) nature, to (describe location and type of discharge, including the name of the receiving stream where applicable, and the method of discharge). This application is made under the provision of the Clean Streams Law, the Act of June 22, 1937, P.L. 1987, as amended. Persons desiring additional information, or who wish to provide comment concerning this permit application, should contact the company as indicated above, or the Department at the following address: Regional Oil and Gas Program Manager (appropriate address and telephone number), after (date on which publication will be submitted) / October 30, 2001 / Page 10

15 6. Municipal and County Notification of Permit Application - Act 14 of 1984 amended Section 1905-A of the Commonwealth's Administrative Code, effective April 17, 1984 (71 P.S ), states that the Department of Environmental Protection shall require every applicant for a new, amended or renewal NPDES or Water Quality Management Part II Permit to give written notice to each municipality and county in which the activities are located. The Code further states that this notice shall be received by the municipalities and counties at least thirty (30) days before the Department of Environmental Protection may issue or deny the permit. In order to demonstrate compliance with Act 14 when submitting an application to DEP for a permit, the applicant must provide the following information with the permit application: a. A copy of the applicant's correspondence notifying the municipality and the county in which the permitted activity will occur, indicating the applicant's intentions. b. Evidence that the municipality and county have received the above notification. Acceptable forms of this evidence include a certified mail receipt, or a written acknowledgment of the notification from the municipality and county. Failure to provide a copy of the above information to the Department will delay processing of the permit application. Failure to comply with Act 14 will result in permit denial. In accordance with Act 14, the Department cannot act on a permit application until the full 30-day period has lapsed, regardless of whether comments have been received prior to that date. 7. Local Land Use Plans and Ordinances Acts 67, 68 and 127 of 2000 amended the Municipalities Planning Code 53 P.S et. Seq.) to promote Smart Growth and directs that state agencies... shall consider and may rely upon comprehensive plans and zoning ordinances when reviewing applications for the funding or permitting of infrastructure or facilities. A policy Policy for Consideration of Local Comprehensive Plans and Zoning Ordinances in DEP Review of Permits and Facilities and Infrastructure was developed for considering local land use policies when reviewing permits. The policy applies when reviewing NPDES and Water Quality Management Part II permits for new facilities. It does not apply to amendments or renewals. When completing a permit application for permitting a new facility, an applicant needs to answer Land-Use Policy questions on the General Information Form (GIF). This information is submitted with the application to DEP. In addition, the completed GIF must be sent to municipalities and counties attached to the Act 14 notifications. The municipality and county have 30 days from the date of receipt to notify DEP of any conflicts with their land use planning. B. Review of NPDES Applications 1. Application Review Time - Under the Money-Back Guarantee Permit Review Program, DEP has expressed its commitment to timely processing of applications when the applicant submits a complete application that meets the appropriate requirements. For information on anticipated processing times under this program, contact any regional office of the Oil and Gas Management Program. While the Department is committed to processing permit applications in a timely manner, applicants should bear in mind in scheduling the submission of an application, that time is required for its study and processing and the administrative procedures inherent within the NPDES permit program (i.e., public notification and public comment period, along with potential involvement by other interested government agencies). 2. Administrative Review - Upon receipt of an application by the regional office, it is reviewed for administrative completeness before it is accepted for review. If the application is found to be properly completed, signed and notarized, and the supporting documentation and application fee are included, the application will be accepted for technical review. The Department conducts the / October 30, 2001 / Page 11

16 completeness review and notifies the applicant within 20 days of receipt of the application that the application is complete or incomplete. If the application is incomplete, the applicant will be notified that the application is incomplete and which forms, items, or information are necessary to make the application complete. If corrections are not made, or acceptable supplementary documentation is not received within fifteen (15) days, the application will be returned to the applicant without action. 3. Technical Review - If an application is complete, the regional office staff will review the application and take appropriate action. NPDES permit applications are reviewed from the perspective of protecting water quality in the receiving stream and achieving technology based effluent standards to meet the requirements of Section 301(b) of the Federal Water Quality Act. A draft permit will be sent to the applicant for review and comment, and will be published in the Pennsylvania Bulletin for a 30-day comment period. If no comments are received during the 30-day comment period, the final permit will be issued. If comments are received, the Department will review them and take them into consideration before developing the final permit. C. Determination of Wastewater Treatment Requirements The effluent limits developed and included in a NPDES permit may be either water quality-based or technology-based, the result of a "best management practices" approach to controlling or abating a pollution problem, or a combination of any or all of the above. The treatment and discharge of wastewater from oil and gas well drilling, stimulation, and production activities to surface waters is permissible, subject to the legal and technical considerations described as follows: 1. Minimum Treatment Required All oil and gas well wastewater discharges must be treated or managed in such a way as to not violate the existing uses of the receiving stream, which are identified in Chapter 93 of the Department's Rules and Regulations. NPDES permits may not be issued for discharges to "High Quality" or "Exceptional Value" waters (also identified in Chapter 93) unless a finding has been made by the Department that the antidegradation requirements in Chapter 93 of the Department's Rules and Regulations have been satisfied. Further discussion involving "Special Protection" waters is included in the next subsection. Chapters 78 and 95 of the Rules and Regulations address several requirements pertaining to treatment and discharge of wastewaters. Section 95.2(c) specifies the minimum level of treatment required for waste discharges as that defined by EPA under the Federal Water Pollution Control Act (33 U.S.C.A. 1311, 1314 and 1342), or in absence of the minimum treatment defined by EPA, an equivalent degree of treatment or technology as determined by the Department. EPA has established technology-based effluent limitation guidelines for certain subcategories of the oil and gas extraction industry as noted in 40 CFR 435. Subpart C of these guidelines, which relates to the Onshore Subcategory, prohibits the discharge of produced fluids from oil and gas well drilling, stimulation, and production activities to surface waters. The only apparent exception to this prohibition is identified by Subpart F, which pertains to "stripper" oil wells (i.e., those wells producing 10 barrels or less of crude oil per day and which do not produce natural gas in excess of / October 30, 2001 / Page 12

17 15,000 cubic feet of gas per one barrel (42 gallons) of petroleum liquids). Discharges from these wells can be covered under a general permit (see Chapter V). At this time, technology-based effluent limitations guidelines do not exist for Subpart F, although EPA is currently reviewing portions of this category in order to establish new guidelines. Thus, since "stripper" oil wells are not subject to the "no discharge" requirement, individual "stripper" well discharges may be permitted where circumstances warrant utilizing, at a minimum, the technologybased effluent limitations established by the Department. Discharges of wastewaters to surface waters from oil and gas well operations may be approved under NPDES permits if the wastewaters are removed to an "off-site" treatment facility, provided the discharge will meet all the requirements discussed above. The term "off-site" includes: a. A central wastewater collection and treatment facility associated with a multiple-well operation. b. A wastewater treatment facility owned and operated by another party or group of operators. NPDES permits will contain technology-based effluent limitations at least as stringent as the following: Average Instantaneous Parameter Monthly (mg/l) Maximum (mg/l) Total Suspended Solids Oils and Grease Iron, Total Acidity ph Less than Alkalinity 6 to 9 Standard Units The design of the treatment facilities must incorporate the following: a. Flow equalization to ensure optimum treatment efficiency of the facilities and minimization of water quality impacts. b. Gravity separation and surface skimming, or equivalent technology, for oil and grease removal. c. Chemical addition for ph control and metals removal, if necessary (a ph range of is desirable). d. Aeration, or equivalent technology, for reducing volatile petroleum hydrocarbons and oxidation for metals removal. e. Settling (retention) or filtration for removal of solids, including oxidized metals. More stringent or additional limitations on other parameters (e.g., total dissolved solids, specific conductance, osmotic pressure, heavy metals, organics, etc.) will be imposed as needed to protect the water quality of the receiving stream, or to serve as indicators of the effectiveness of the treatment facilities. Multiple discharges may be covered under a single NPDES permit, if the management of those facilities is under the control of one owner/operator and the geographic area is small enough to allow for effective operation and monitoring of the facilities / October 30, 2001 / Page 13

18 2. Discharges to "Special Protection" Waters As discussed above, NPDES permits may not be issued for discharges to "High Quality" or "Exceptional Value" waters unless a finding has been made by the Department that the antidegradation requirements in Chapter 93 of the Department's Rules and Regulations and the Waster Quality Anti-Degradation Implementation Guidance have been satisfied. a. "Exceptional Value" Waters Waters designated as "Exceptional Value" (EV) must be maintained and protected at their existing quality. Operator s proposing a discharge to an EV stream must evaluate nondischarge alternatives. If nondischarge alternatives are not protective of the environment nor economical, the operator must use the best available combination of cost-effective treatment, land disposal, pollution prevention, and wastewater reuse. The quality of a point source discharge to an EV stream must be equal to or greater than the quality of the receiving stream. In general, NPDES permits for point source discharges from oil and gas activities will not be granted since such discharges would degrade receiving streams. b. "High Quality" Waters Waters designated as "High Quality" (HQ) must be maintained at their existing quality unless it is demonstrated that the proposed discharge is justified as a result of necessary economic or social development which is of significant public value. Operator s proposing to discharge to a HQ stream must evaluate nondischarge alternatives. If nondischarge alternatives are not protective of the environment nor economical, the operator must use the best available combination of cost effective treatment, land disposal, pollution prevention, and wastewater reuse. In order to qualify for a NPDES permit for a discharge to a HQ water, the activity must pass a two part test: (1) Water Quality Degradation - If a proposed discharge will degrade water quality, then the project must be subject to the social or economic justification test. If no degradation would result, then no social/economic justification is required. In general, it should be assumed that a point source discharge from an oil and gas operation will cause degradation, and that social/economic justification will be required. (2) Social or Economic Justification - The Department will not approve a NPDES permit for a proposed discharge unless the discharge can be shown to be the result of necessary economic or social development of the local geographical area where the activity is taking place, and that the activity creating the discharge is of significant public value. If the project fails the social/economic justification test, the discharge will not be allowed. If the project passes the social/economic justification test, the wastewater point source discharge associated with the project will be evaluated to determine its potential to degrade the HQ water. A point source discharge will not be allowed if it would result in a violation of the applicable water quality standards. The anti-degradation best available combination of technologies for oil and gas activities are contained in DEP s Water Quality Implementation Guidance / October 30, 2001 / Page 14

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