• Cleanup Rules

Railroad Commission of Texas

Site Remediation – Cleanup Programs

Peter G. Pope, P.G.

Site Remediation Section

1

Cleanup Programs

Topics Covered

• Regulatory Authority

• Rules

• State Managed Cleanup Program

• Operator Cleanup Program

• Voluntary Cleanup Program

• Brownfields Response Program

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Railroad Commission

of Texas

History

• 1891 – Railroad Commission of Texas

Created

• 1917 – Regulation of Pipelines;

Conservation laws relating to oil and

natural gas production

3

Railroad Commission

of Texas

Mission Statement

The Railroad Commission serves Texas through:

• our stewardship of natural resources and the

environment;

• our concern for personal and community safety; and

• our support of enhanced development and economic

vitality for the benefit of Texans.

4

RRC Jurisdiction

Regulation of: • Oil and natural gas primary production

• Pipelines

• Natural gas processing and natural gas

utilities

• Salt dome cavern storage

• Bulk storage of crude oil

• RRC commercial disposal facilities

• Liquid propane gas (LPG), compressed

natural gas (CNG), and liquid natural gas

(LNG) 5

6

Eagle Ford Statistics

• 10,255 on schedule

• Permits issued:

26 (2008) to 4,260 (9/2014)

• Oil production ~ 917,993 Bbl/day

• Gas Production ~ 4,337,372 Mcf/day

• Condensate ~ 249,480 Bbl/day

as of Oct 22, 2014

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Texas Pipelines June 2012

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RRC Cleanup Authority

Broad Statutory Authority Regarding the Control of

Pollution Resulting from Oil and Gas Waste

Natural Resources Code 91.101, adopted in

1977

Texas Water Code Section 26.131, adopted in

1977

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Oil and Gas Division Districts

Nine District

Offices for 12

Geographical

Districts

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RRC Cleanup Rules

• §3.8 – Water Protection Rule

• §3.20 – Notification Requirements

• §3.91 – Cleanup of Soil Contaminated by a Crude Oil

Spill

• §3.98 – Standards for Management of Hazardous Oil &

Gas Waste

• §4 D – Voluntary Cleanup Program

• §4 F – Disposal of NORM Waste • *Note: Does not include well plugging and other safety rules.

http://www.rrc.state.tx.us/rules/rule.php 11

Statewide Rule 8 - Water Protection

SWR 8(b): “No pollution. No person conducting

activities subject to regulation by the commission

may cause or allow pollution of surface or

subsurface water in the state.”

RRC Cleanup Rules

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Amendments to

SWR 8

Amended April 2013

• Encourages water conservation

• Authorizes non-commercial fluid recycling

• Streamlines permitting requirements

• Improves safety in waste hauling

Statewide Rule 20 - Release Notification Rule

Operators shall give immediate notice of a fire, leak, spill,

or break to the appropriate commission district office.

Notice shall be followed by a letter with full description of

the event, volume of crude oil, gas, geothermal resources,

other well liquids, or associated products lost.

RRC Cleanup Rules

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Statewide Rule 30 – Waste Jurisdiction

Memorandum of Understanding between RRC and Texas Commission on Environmental Quality (TCEQ)

“Railroad Commission of Texas solely responsible for the control and disposition of waste and the abatement and prevention of pollution of surface and subsurface water in the state from activities associated with the exploration, development, and production of oil and gas.”

RRC Cleanup Rules

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Statewide Rule 91 – Crude Oil Spills in

non-sensitive areas

Crude oil in non-sensitive areas to be cleaned up

to 1% total petroleum hydrocarbons (TPH)

Does not apply to condensate, crude oil spilled in

sensitive areas or crude oil spills that occurred

prior to November 1, 1993.

RRC Cleanup Rules

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Statewide Rule 91 – Summary

• Removal of free oil

• Horizontal & vertical delineation

• Excavate and dispose or if handling onsite:

• Prevent stormwater contamination

• Cleanup to less than1% TPH as soon as

technically feasible but no later than one year.

Cleanup of spills in sensitive areas are evaluated

on a case-by-case basis.

RRC Cleanup Rules

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Sensitive – defined in Rule 91:

*Proximity to surface water, wildlife refuges, commercial or

residential areas. The definition applies to sites where there

is shallow groundwater or possible pathways for

communication with deeper groundwater or discharges to

surface waters.

*Proximity is not defined.

RRC Cleanup Rules

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Cleanup Guidance

For condensate and crude spills in sensitive

areas

• http://www.rrc.state.tx.us/environmental/spills/spillcleanup.php

Cleanup Guidance

Other guidance available on request:

• COC Guidelines for Substances Released

• Produced Water

• Institutional Controls

• OCP Deliverables

• NORM

Statewide Rule 98 - Hazardous Oil & Gas Waste

Exempt Waste – Wastes uniquely associated with primary field

productions

Non-Exempt Waste – Wastes that are not uniquely associated with an

E&P activity

EPA Guidance for Oil and Gas exemption (en Español, tambien!)

EPA 530-K-01-004 (October 2002)

(http://www.epa.gov/epawaste/nonhaz/industrial/special/oil/oil-gas.pdf)

RRC Cleanup Rules

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Statewide Rule 4 Subchapter F

Naturally Occurring Radioactive Materials (NORM)

•Regulates disposal of NORM associated

with oil and gas E&P activities

•Requires identification of NORM

contaminated equipment

RRC Cleanup Rules

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RRC Cleanup Programs

Site Remediation Section

•State Managed Cleanup Program (SMCP)

•Operator Cleanup Program (OCP)

•Voluntary Cleanup Program (VCP)

•Brownfields Response Program (BRP)

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STATE MANAGED CLEANUP

PROGRAM

Use of State Funds for Cleanup

• When Responsible Operator fails or refuses to take action.

• Responsible Operator is unknown or cannot be found.

• Fund utilized to cleanup pollution of abandoned sites.

• Prioritization is based on public health, safety and the protection of the environment.

STATE MANAGED CLEANUP

PROGRAM

TYPES OF CLEANUP ACTIVITIES

• Emergencies

• Cleanups

• Assessments

• Abatements

Oil & Gas Regulation and Cleanup

SB 310 Funding Sources

• Regulatory fees, fines, penalties, and

charges for goods and services.

• Applications for exceptions to RRC rules

• Natural Gas Policy Act (15 U.S.C. Section

3301-3432 application).

• Administrative penalties for violations of

rules pertaining to E&P and pipelines.

• Drilling permit fees (to drill, deepen, plug

back, or reenter a well).

State Managed Site Remediation Program

Completed Cleanup Activities for

Fiscal Years 1992 – June 2014

PER FISCAL YEAR CUMULATIVE FY 1992-2014

Completions Yearly Costs Completions Cumulative Costs

1992 N/A 53 $47,867.78 53 $47,867.78

1993 N/A 79 $72,934.38 132 $120,802.16

1994 N/A 93 $112,303.45 225 $233,105.61

1995 N/A 144 $269,515.06 369 $502,620.67

1996 N/A 155 $402,883.87 524 $905,504.54

1997 N/A 213 $651,450.76 737 $1,556,955.30

1998 N/A 281 $1,199,826.59 1,018 $2,756,781.89

1999 N/A 291 $1,618,686.78 1,309 $4,375,468.67

2000 N/A 233 $2,192,118.05 1,542 $6,567,586.72

2001 N/A 229 $6,563,470.45 1,771 $13,131,057.17

2002 1,629 355 $4,099,021.29 2,126 $17,230,078.46

2003 1,543 326 $4,405,465.64 2,452 $21,635,544.10

2004 1,771 313 $4,137,435.28 2,765 $25,772,979.38

2005 1,597 292 $3,416,723.45 3,057 $29,189,702.83

2006 1,754 325 $3,866,617.22 3,382 $33,056,320.05

2007 1,758 308 $8,343,461.48 3,690 $41,399,781.53

2008 1,803 293 $4,500,452.59 3,983 $45,900,234.12

2009 1,849 323 $4,678,741.35 4,306 $50,578,975.47

2010 2,054 191 $2,841,861.42 4,497 $53,420,836.89

2011 2,011 200 $1,822,511.41 4,697 $55,243,348.30

2012 2,015 253 $5,291,395.97 4,950 $60,534,744.27

2013 2,036 280 $4,056,095.03 5,230 $64,590,839.30

2014 2,014 238 $2,521,046.53 5,468 $67,111,886.30

Fiscal YearCleanup

Candidates

Operator Cleanup Program

• Oversight of Operator-led cleanups to ensure

compliance with RRC rules.

• District Office - Non-sensitive area cleanups.

• Site Remediation Section in Austin - Oversight of sensitive area/complex site cleanups.

• Complexity = special assessment needs, risk-based cleanup, case-by-case

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Case-by-Case generally means:

• Risk-based site assessment

• Risk-based cleanup

• TRRP process*

* Texas Commission on Environmental Quality –

Texas Risk Reduction Program (TRRP) rule

Operator Cleanup Program

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Examples of COCs

• Crude Oil (BTEX, PAHs, TPH)

• Condensate (BTEX, PAHs, TPH)

• Drilling Mud (water-based) (TPH, Metals, pH,

Chloride, Sodium, Electrical Conductivity)

• Produced Water/Brine (BTEX, Chloride, Metals)

• Tank Bottoms (BTEX, PAHs, Metals, pH, TPH)

• Mercury Meters (Mercury, pH)

BTEX = Benzene, toluene, ethylbenzene, and xylenes

PAHs = Polycyclic aromatic hydrocarbons

Operator Cleanup Program

30

Active Operator Cleanups by

District

599 Operator

Cleanup Program

Projects

As of 6 June 2014

57 114

21

51

18

154

26

143

15

31

Public GIS Map Viewer for Oil, Gas

and Pipeline Data

• Map View of Operator Cleanup Program sites

• Select “Identify Operator Cleanup Site” under Map

Tools, and click on a green (active) or black triangle

(closed).

• Pop-up box with Site identification.

• http://www.rrc.state.tx.us/data/online/gis/index.php#

Operator Cleanup Program

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OCP ID 1774

SITE NAME Chapman Ranch

STATUS Active

COUNTY Nueces

DISTRICT 04

LATITUDE 27.6275

LONGITUDE -97.50194

Public GIS Map Viewer

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• Provides incentive to lenders, developers,

owners, and operators who did not cause or

contribute contamination.

• Applies to waste cleanups under Railroad

Commission jurisdiction.

• Offers the applicant a release of liability to

the state.

Voluntary Cleanup Program

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http://www.rrc.state.tx.us/oil-gas/environmental-cleanup-

programs/site-remediation/voluntary-cleanup-program/

RRC Brownfields Program

• U.S. Environmental Protection Agency

State Brownfields Program

• "brownfield”means real property, the

expansion, redevelopment, or reuse of

which may be complicated by the

presence or potential presence of a

hazardous substance, pollutant, or

contaminant.

Helping local communities!

RRC Brownfields Program

• Offer free Assessments and Cleanup to

local governments, non-profits, schools,

churches

• Brownfields Certificate of Completion

• Contact Kelly Wilson for information

(512) 475-0730

http://www.rrc.state.tx.us/oil-gas/environmental-cleanup-

programs/site-remediation/grant-cleanup-programs/brp/

Helping local communities!

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State Managed

• Offshore Cleanups

• Waste Management

Trends/Developing Issues

38

Voluntary Cleanup/Brownfields

• Increased applications

Operator Cleanup

• Urban Encroachment

• Enforcement Cases

State Managed - Whittington

State Managed – Recycling

Facility

30,000 BBL Storage Tank

Samson Young Gas Unit, Well #3, Rusk

County • Landowner complaint about distressed vegetation in a

boggy area

• Salinity contamination in creek

• Electromagnetic survey identified a flow-back pit

• Removed 6,000 cubic yards of reserve/flow-back pit soils

• Installed monitoring wells and a sump to remove

contaminated groundwater

Operator Cleanup Program

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53

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Samson Young Gas Unit, Well #3, Rusk County

Pumped 39,434 barrels of water from the sump

Operator Cleanup Program

Date

Chloride in MW-3

Mg

/L

55

Historic Pipeline Release, Montgomery County

• Landowner complaint of hydrocarbons seeping through

cracks in concrete wall of swimming pool

• Identified exposed pipeline near the pool

• Montgomery County Appraisal files indicate a 1954

inactive crude oil pipeline easement transects the property

Operator Cleanup Program

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Abandoned Pipeline

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Northview Apartments, Kilgore

Affordable Housing

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Northview Apartments

• Application received November 2008

• Phase II ESA performed by RRC

• No impacts identified

• Cost savings $21K

• Site closed March 2009

• 25 construction jobs and two permanent positions created

• Leveraging with $2M loan with TDHCA

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Turtle Bayou Site,

Chambers County

522-Acre Site slated to be used for water quality protection and a nature preserve managed by the Galveston Bay Foundation

Actions

• 18 abandoned oil and gas wells being plugged with state funds

• Delineating hydrocarbons and chloride impacts

Benefits

• Green space, wildlife habitat, water quality.

Turtle Bayou Site,

Chambers County

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Any Questions? Aimee Beveridge, P.G

Peter G. Pope, Site Remediation

512-463-8202

peter.pope@rrc.state.tx.us

4Pe63-7995