before the public utilities commission state of south … · 2008. 12. 1. · before the public...
TRANSCRIPT
BEFORE THEPUBLIC UTILITIES COMMISSION
STATE OF SOUTH DAKOTA
KEYSTONE XL PROJECTDOCKET HP09·001
PREFILED TESTIMONY OF KIMBERLY LORRENE MCINTOSHON BEHALF OF THE COMMISSION STAFF
SEPTEMBER 2009
BEFORE THE PUBLIC UTILITIES COMMISSION STATE OF SOUTH DAKOTA
PREFILED TESTIMONY OF KIMBERLY LORRENE MCINTOSH
Q. State your full name.
A. Kimberly Lorrene Mcintosh.
Q. State your employer.
A. South Dakota Department of Environment and Natural Resources.
Q. Explain the specific program for which you work.
A. Ground Water Quality Program - Spill Assessment and Cleanup Section. The
spill section is responsible for documenting all reported regulated substance
releases: petroleum, chemical, pesticide, fertilizer, metals, etc. The spill section
maintains the program files and the environmental events database which
contains information on each reported release. This section investigates
complaints and releases, obtains environmental samples, provides direction to
responsible parties, environmental consultants and local officials on state laws
and rules, and issues letters directing the assessment and cleanup of
contamination. This section is responsible for the SARA (Superfund Amendment
and Reauthorization Act) Title III Program which requires that chemicals stored in
certain quantities be reported to the state. The spill section also is responsible
for other projects such as emergency planning and response, methaphedimine
issues, low level radiation issues, and homeland security issues.
Q. State what you do for this program.
A. I direct and oversee the staff in the spill section. I evaluate information and data
to identify and name responsible parties. I direct environmental contractors and
responsible parties on emergency response activities, assessment and cleanup
activities associated with spills, releases and un-permitted discharges. I manage
the State Regulated Substance Response Fund and the Environmental Livestock
Fund. I am responsible for the selection and hiring of contractors to be used in
the event that a responsible party is unable to perform a cleanup or refuses to
perform a cleanup and the Regulated Substance Response Funds are necessary
to remedy a situation. I am responsible for evaluation of spills and releases to
insure that the cleanup meets state requirements.
Q. Explain the range of activities and duties your program covers and what
you specifically do for the program.
A. I review consultant reports detailing sampling of soil and ground water
contamination associated with all types of spills and releases of regulated
substances. I review and approve cleanup plans and act as the team leader.
directing day to day work activity of the spill section. Activities included in the
spill section include the Superfund Amendment and Reauthorization Action
(SARA) Title III activities. department emergency response activities. homeland
security activities. and state emergency and disaster planning activities. I also
represent the state on the Regional Response Team acting as a state liaison with
EPA. and other federal agencies in the event of a multi-state disaster.
Q. On whose behalf was this testimony prepared?
A. This testimony was prepared on behalf of the Staff of the South Oakota Public
Utilities Commission (Staff).
Q. What federal and state standards exist for petroleum spills?
A. SOCL 34A-2. SOCL 34A-12. SOCL 34A-18 and ARSO Chapter 74:34:01. ARSO
Chapter 74:54:01, ARSO Chapter 74:56:03. ARSO Chapter 74:56:05 and ARSO
Chapter 74:10:05.
Q. Which of those standards do you personally work with?
A. All of the above.
Q. What level of cleanup is required in the case of a petroleum spill?
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A. All petroleum spills are evaluated to determine what damage has occurred and
what risk to human health and the environment exists based on the specifics of
each release: substance released, amount released, location of release, depth
to ground water, threat to surface water, threat to basements, water wells, or
utilities, etc. The department has established cleanup criteria and standards in
which each release is evaluated against to protect human health and the
environment, so not all petroleum releases are cleaned up to the same level of
contamination.
Q. Can there by hydrocarbon left in the soil after a cleanup?
A. Yes, petroleum contamination may be left in the soil after a cleanup if the
department determined that the remaining contamination does not pose a risk to
human health or further risk to the environment.
Q. What kind of remediation activities are conducted in response to a
hydrocarbon spill in soil?
A. Excavation and off site disposal/treatment of impacted soil, excavation and onsite
treatment of impacted soil and in-situ soil vapor extraction.
Q. What kind of remediation activities are conducted in response to a
hydrocarbon spill in groundwater?
A. Excavation of impacted soil and soil venting may be conducted in conjunction
with ground water sparging. Ground water monitoring is conducted to document ground
water conditions.
Q. Explain other activities you use for remediation.
A. Soil can be excavated and incinerated to destroy hydrocarbons.
Q. What are the leak size requirements for a reportable spill?
A. SDCL 34A-12: A release or spill of a regulated substance (petroleum) must be
reported to DENR immediately.if anyone of the follOWing conditions exists:
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1. The discharge threatens or is in a position to threaten the waters
of the state (surface water or ground water);
2. The discharge causes an immediate danger to human health or
safety;
3. The discharge exceeds 25 gallons; (For crude oil see bullet #8)
4. The discharge causes a sheen on surface water;
5. The discharge of any substance that exceeds the ground water
quality standards of ARSO chapter 74:54:01;
6. The discharge of any substance that exceeds the surface water
quality standards of ARSO chapter 74:54:01;
7. The discharge of any substance that harms or threatens to harm
wildlife or aquatic life;
8. The discharge of crude oil in field activities under SOCL chapter
45-9 is greater than 1 barrel (42 gallons).
Q. Has there been any permanent natural resource damage in South Dakota
as the result of a hydrocarbon pipeline leak?
A. I am not aware of any permanent natural resource damage from a petroleum
pipeline release.
Q. Are there spills that cannot be remediated?
A. I do not believe there are any petroleum spills that can not be remediated given
sufficient time and resources.
Q. Who is obligated to remediate a spill?
A. SOCL 34A-12 identifies that the person or persons who caused the release are
responsible to assess and cleanup the contamination. SDCL 34A-18-8 identifies
that each crude oil pipeline operator must implement their response plan
regardless of the cause of the party responsible for the release.
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Q. How do you remediate hydrocarbon contaminated wells?
A. It depends on the level of contamination pr~sent in the well and in the ground
water. The water from a contaminated well can be treated with a carbon filter
system that removes (strips) the hydrocarbons.
Q. What if you can't achieve remediation of a well?
A. The responsible party is required to supply the well owner/user with an alternate
source of drinking water. This may require drilling a new well in a different
location, drilling a deeper well in a deeper formation or hooking the well user up
to rural or city water supply.
Q. What is the extent of landowner involvement in remediation?
A. It depends on the situation. Some landowners want to be involved in the cleanup
but most allow the department to work with the responsible party to get the
cleanup work performed to state standards. The department copies the land
owner on all written correspondence with the responsible party and consultant. If
the land owner wishes to be involved with the cleanup, meetings may be held to
address the concerns of the landowner and other interested parties. Copies of
all documents can be provided if the land owner wishes to receive them.
Q. Does DENR have the resources to deal with a spill from a hydrocarbon
pipeline such as Keystone XL?
A. The DENR has the resources necessary to oversee the assessment and cleanup
of a crude oil release from existing crude oil pipelines and has the resources to
oversee a release from the Keystone XL pipeline, if one should occur. The
DENR manages a fund with sufficient resources to contain and initiate cleanup
actions, if a release should occur, and the pipeline company is unable or refuses
to perform the required response activities. Federal financial resources may also
5
be available if the responsible party refuses or is unable to perform the cleanup
work.
Q. Does this pipeline place any additional burden on your program?
A. The Keystone XL pipeline does not place additional burden on the Ground Water
Quality Program.
Q. Please explain the Regulated Substance Release Fund, the Superfund
and/or any other program available to help fund a remediation project.
A. Please see Attachment 1. Attachment 1 is a copy of Appendix I from the
"Findings Report" dated December 1, 2008 from the South Dakota Underground
Pipeline Task Force report. This attachment is information on the South Dakota
Regulated Substance Response Fund. This information was previously compiled
and prOVided to the South Dakota Underground Pipeline Task Force.
Q. Is all of the information contained in Attachment 1 current?
A. No. The Department of Environment and Natural Resources currently has seven
environmental contractors under contract. Tetra Tech, Rapid City, South Dakota,
is also now under contract. Also, the balance of the Regulated Substance
Response Fund as of 06/30/09 was $2,782,073.
Please also see Attachment 2. Attachment 2 is a copy of Appendix N from the
"Findings Report" dated December 1, 2008 from the South Dakota Underground
Pipeline Task Force report. This attachment is information on the federal Oil Spill
Liability Trust Fund. This information was preViously compiled and provided to
the South Dakota Underground Pipeline Task Force.
Q. Any other information you believe the commission and the public will find
useful.
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A. The Ground Water Quality program has extensive staff experienced in
overseeing the assessment and cleanup of all types of petroleum releases both
in soils and ground water.
7
Appendix I
South Dakota Regulated Substance ResponseFund.
REGULATED SUBSTANCE RESPONSE FUND
DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES
CONTACTS:Steve Pimer, Secretary
Tim Tollefsrud, Director·
INTENT I USE I PURPOSE:The money in the Regulated Substance Response Fund is continuously appropriated to providefunding for the clean up ofregulated substance discharges. The SecretaI)' of the Department ofEnvironment and Natural Resources may expend funds from the response fund to provide for thecosts of investigations, emergency remedial efforts, corrective actions, and managerial oradministrative activities associated with such activities.
SUMMARY:In 1988 SDCL: 34A-12-3 created the Regulated Substance Response Fund. The fund was createdthrough an appropriation from general fund, a one-time contribution from the petroleum releasecompensation fund, and a temporary pesti~ide registration fee.
On going deposits into the fund come from; money from civil action ·oi administrative proceedingsfor violation of environmental statutes or upon damage to the environment, including actions foradministrative expense recoveries, civil penalties, compensatory damages, and money paid pursuantto any agreement, stipulation, or settlement in such actions or proceedings; and interest attributableto investment ofthe money in the response fund. Before the fund can be used, there must be adischarge of a regulated substance, but then the money is continuously appropriated to providefunds for the clean up of regulated substance discharges. The department may file civil actions orliens on property owned by the responsible person to cost recover.
REQUIREMENTS:The Secretary of the Department ofEnvironment and Natural Resources may expend funds fromthe response fund to provide for the costs of investigations, emergency remedial efforts, correctiveactions, and managerial or administrative activities associated with discharges of regulatedsubstances. For a substance to be classified as a regulated substance, it must be defined in eitherstatute or rule. SDCL 34A-12-1 exempts sewage and sewage sludge from being classified as aregulated substance.
The secretmy's use of the response fund shall be based upon the following:(1) In the case ofan investigation, when the secretary determines that a discharge requiringan emergency remedial effort may have occurred and that the general operating budget ofthe department for such purposes is not adequate to cover the costs of the necessaryinvestigatory activities;
(2) In the case of an emergency remedial effort, when the secretary determines that adischarge has occurred and that corrective actions shall be immediately undertaken toprote~ an imminent threat to the public health or safety or to contain a discharge which, ifnot immediately contained, shall in time pose a significantly greater threat to public healthor safety or to the environment of this state than if such action is not immediately taken;
(3) In the case of a discharge not of an emergency nature when the secretary determines thata discharge has occurred, that a responsible party or liability fund capable ofperforming thecorrective actions either cannot be identified or refuses to undertake corrective actions, andthat corrective actions shall be undertaken to protect the public health, safety, welfare, orenvironment of the state.
SDCL 34A-12-12 makes the responsible person strictly liable for any corrective action costsexpended from the Regulated Substance Response Fund, and the department may file eithercivil actions or liens on property owned by responsible persons to cost recover.
STATUTES:
34A-12-3. Regulated substance response fund established - Purpose - Source of funds Continuous appropriation - Informational budget - Annualleeislative review - There is herebyestablished in the state treasury an operating fund to be known as the regulated substance responsefund for the purpose ofproviding funds for the clean up of regulated substance discharges. Inaddition to the money from the petroleum release cleanup fund as provided in § 34A-12-2 and thetemporary pesticide registration fee increase provided by § 38-20A-9, funds from the followingsources shall be deposited into the response fund:(1) Direct appropriations to the response fund from the general fund;(2) Money, other than criminal fines assessed in criminal actions, recovered by the state in any
action or administrative proceeding based upon violation ofthe state's environmental statutes orupon damage to the environment, including actions for administrative expense recoveries, civilpenalties, compensatory damages, and money paid pursuant to any agreement, stipulation, orsettlement in such actions or proceedings;(3) Interest attributable to investment ofthe money in the response fund;(4) Money received by the department in the form of gifts, grants, reimbursements, orappropriations from any source intended to be used for the purposes ofthe response fund.All money in the response fund is continuously appropriated for the purposes specified in § 34A-121:. All money received by the department for the response fund shall be set forth in an informationalbudget pursuant to § 4-7-7.2 and be annually reviewed by the Legislature.Source: SL 1988, ch 291, § 4.
34A-12-2. One-time contribution from petroleum release compensation fund to response fund- Annual contribution to groundwater protection fund -- The petroleum release compensationfund established pursuantto § 34A-13-18, shall make a one time contribution ofthree hundred fiftythousand dollars, to the response fund within one year after March I, 1988, and shall contribute onehundred thousand dollars annually for five years to the groundwater protection fund to fund thegroundwater research and education program established pursuant to § 46A-I-85. Source: SL1988, ch 291, § 3; 1989, ch 306, § 55.
34A-12-4. Expenditure of funds by secretary - Grounds for expenditures -- When necessary inthe performance ofthe secretary's duties lUlder §§ 23A-27-25. 34A-I-39. 34A-2-75. 34A-6-1.4.34A-6-1.31, 34A-II-9, 34A-11-10. 34A-II-12, 34A-11-14, 34A-12-1 to 34A-12-15. inclusive, 456B-70, 45-6C-45, 45-6D-60. and 45-9-68 and Title 34A relative to discharges, the secretary mayexpend funds from the response fund to provide for the costs ofinvestigations, emergency remedialefforts, corrective actions, and managerial or administrative activities associated with suchactivities. The secretary's use of the response fund shall be based upon the following:
(1) In the case of an investigation, when the secretary determines that a discharge requiringan emergency remedial effort may have occurred and that the general operating budget ofthe department for such purposes is not adequate to cover the costs ofthe necessaryinvestigatory activities;(2) In the case of an emergency remedial effort, when the secretary determines that adischarge has occurred and that corrective actions shall be immediately lUldertaken toprotect an imminent threat to the public health or safety or to contain a discharge which, ifnot immediately contained, shall in time pose a significantly greater threat to public healthor safety or to the environment of this state than ifsuch action is not immediately taken;(3) In the case of a discharge not ofan emergency nature when the secretary determines thata discharge has occurred, that a responsible party or liability fund capable ofperforming thecorrective actions either cannot be identified or refuses to undertake corrective actions, andthat corrective actions shall be undertaken to protect the public health, safety, welfare, orenvironment ofthe state. Source: SL 1988, ch 291, § 5; 1992, ch 158, § 55A; 1999, ch 182,§ 3.
34A-12-12. Strict liability for costs of corrective action. Any person who has caused a dischargeof a regulated substance in violation of § 34A-12-8 is strictly liable for the corrective action costsexpended by the department pursuant to §§ 23A-27-25. 34A-1-39, 34A-12-1 to 34A-12-15,inclusive, 38-20A-9, 45-6B-70 i 45-6C-45. 45-6D-60, and 45-9-68. Source: SL 1988, ch 291, § 13.
CURRENT STATUS
The Department of Environment and Natural Resources currently has six (6) contracts in place withenvironmental consulting firms to provide response capabilities. These contracts are 4yearcontracts with extension provisions. Currently the department has contracts with the followingfirms: Geotek Engineering & Testing Services (Sioux Falls); Leggette, Brashears & Graham (SiouxFalls); Terracon Consultants (Rapid City and Omaha); West Central Environmental (Morris,Minnesota); BayWest (St. Paul, Minnesota); and American Engineering Testing Services (pierreand Rapid City).
The balance ofthe Regulated Substance Response Fund as of06/30/2008 was $ 2,575,500.00.
AppendixN
Federal Oil Spill Liability Trust Fund
The Oil Spill Liability Trust Fund.IntroductionThe Oil Spill Liability Trust Fund (fund) was created by Congress in 1986 and its use was authorized by the signingof the Oil Pollution Act in 1990. The fund, managed by the U.S. Coast Guard, is established as a funding source topay for cleanup costs and damages resulting from oil spills or threats ofoil spills to navigable waters ofthe UnitedStates. For the purposes ofthis fund "navigable waters" is defmed in § 300.5 ofthe National Contingency Plan.
The fund has two major components. First, the emergency fund. The emergency fund is available for Federal OnScene Coordinators to respond to oil discharges and for Federal natural resource trustees to initiate natural resourcedamage assessments. This portion ofthe fund receives an annual $50 million apportionment. The Coast Guard hasthe authority to advance an additional $100 million into the emergency fund each year to supplement shortfalls.Second, the remaining Principal Fund balance is used to pay claims and to fund appropriations by Congress toFederal agencies to administer the provisions ofthe Oil Pollution Act and support research and development.
Who Can Access the Fund?• All Federal On-Scene Coordinators• Other Federal, State, Local, and Indian tribal government agencies that assist the Federal On-Scene
Coordinator can be reimbursed for their costs.• Natural Resource Trustees• Claimants - individuals, corporations, and governments can submit claims for uncompensated removal
costs and damages ifthe responsible party does not satisfy their claim.
Limitations to Accessing the Fund• The release or threat ofrelease must be into or on the navigable waters of the United States or adjoining
shorelines or the Exclusive Economic Zone• The discharge must be oil• In general, the maximum amount expendable from the fund per incident is $1 billion.
Responsibility of the Responsible party to a Spill• When an oil spill occurs, the responsible party is responsible for complete cleanup of the spill.• Ifthe responsible party does not fully remo-ve the spill and the Federal On-Scene Coordinator
responds to the spill the responsible party will be later billed for all Federal response costs.
Funding• The fund balance on April 27, 2006 was $662 million.• As ofMarch 18, 2008, the following is the projected end ofyear fund balance based on the barrel tax and
historical expenditures: .
2008 - $1,030,009,4552009 - $1,107,363,8312010 - $1,227,242,2562011 - $1,345,434,7822012 - $1,468,866,6742013 - $1,601,770,1892014 - $1,744,565,195
EPA's Use ofthe Fund in South DakotaIn the early 1990's EPA used monies from the fund to cleanup a coal tar spill in the Big Sioux River at Fawick Parkin Sioux Falls.
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