# Presentation: 671790

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## Gulf of Mexico OCS Offshore General PermitRegion 6 NPDES Permit No. GMG29000040 CFR Part 435, Subpart AbyTaylor SharpeEPA Region 6Liskow & LewisWestin GalleriaHouston, TexasJanuary 18, 2006

## Contacts

- NOIs/Coverage, NOTs, DMRs, Transfer Agreements, Mergers, NCRs:
- Ms. Sharon Haggard (6EN-WC)Environmental Protection Specialist214-665-6472, haggard.sharon@epa.gov
- Technical, Compliance, Enforcement, and Offshore Web site:
- Taylor Sharpe (6EN-WT)Enforcement Officer214-665-7112, sharpe.taylor@epa.gov
- Permit Questions:
- Scott Wilson (6WQ-PP)NPDES Permit Writer214-665-7511, wilson.js@epa.gov

## EPA Region 6 Offshore Web Site

- Permit Language
- Application Process
- Notice of Intent
- Notice of Termination
- Transfer Agreement
- Guidance
- DMR Instructions
- This presentation (MS PowerPoint format)
- Database of Offshore Permittees

**www.epa.gov/region6/offshore**

## Offshore Enforcement Forms

- Federal Water Pollution Control Act
- aka, the Clean Water Act
- 1995 Clean Water Act Settlement Policy
- Supplemental Environmental Policy
- Self Disclosure Policy
- Enforcement Financial Models

**www.epa.gov/region6/6en/w/formenf.htm**

## Evolution of the Federal Water Discharge Permitting Program

- Water Quality Act
- 1987
- Clean Water Act
- 1977
- Federal Water Pollution Control Act
- 1972
- Water Pollution Control Act
- 1948

## Federal Water Pollution Control Act - 1972

- Response to uncontrolled wastewater discharges
- Created the NPDES discharge permitting program.

## Goals of Federal Water Pollution Control Act

- Eliminate discharge of pollutants to waters of the U.S.
- All waters of the U.S. should be fishable and swimable by 1985.

## NPDES

- National Pollutant Discharge Elimination System
- Section 301 (33 USC 1311) requires all point source discharges of pollutants to waters of the U.S. have an NPDES permit.
- Excluding:
- Agricultural discharges – 33 USC 1342 (l)(1)*
- Transportation vessel discharges – 33 USC 1321(b), 33 USC 1362(b)
- Section 402 of the Act authorizes EPA, or authorized States, to issue NPDES permits.

- * The “(I)(1)” is a lower case “L” followed by the number 1.

## Water Quality Protection Act (1987)

- Provided Administrative Provisions for Civil Enforcement by EPA.
- 40 CFR Part 22 – Class II (up to $125,000)
- 40 CFR Part 28 – Class I (up to $25,000)
- Class I’s covered under Part 22 since ~1999

## Outer Continental Shelf (OCS) Region 6 NPDES General Permit

- TX0085642
- 46 _Fed_. _Reg_. p. 20284, April 3, 1981
- First OCS General Permit
- Two Other Permits concurrently published
- TX0085651 – Texas Territorial Seas
- LA0060224 – Louisiana Territorial Seas
- Expired April 3, 1983
- 48 _Fed_. _Reg_. p. 41494, Sept. 15, 1983
- Modified December 3, 1993
- Expired June 30, 1984

## Outer Continental Shelf (OCS) Region 6 NPDES General Permit

- GMG280000
- 51 _Fed_. _Reg_. p. 24897, July 9, 1986
- Expired July 1, 1991
- Covered discharges in both Federal Waters (OCS) and Territorial Seas (up to 3 miles from shore).

## Outer Continental Shelf (OCS) Region 6 NPDES General Permit

- NPDES Permit No. GMG290000
- 57 _Fed_. _Reg_. p. 54642, November 19, 1992
- Modified:
- 58 _Fed_. _Reg_. p. 63964, December 3, 1993
- 61 _Fed_. _Reg_. p. 41609, August 9, 1996
- Expired November 18, 1997
- 63 _Fed_. _Reg_. p. 58722, November 2, 1998
- Modified:
- 64 _Fed_. _Reg_. p. 19156, April 19, 1999
- 66 _Fed_. _Reg_. p. 65209, December 18, 2001
- Took effect February 16, 2002
- Expired November 3, 2003

## Current OCS General PermitGMG29000 Published Oct. 7, 2004Effective Nov. 6, 2004[69 Fed. Reg. No. 194, p. 60150]

- Coverage
- Federal waters off Texas/Louisiana coasts past territorial seas
- Obtained by filing a Notice of Intent
- Must identify if a New Source
- No difference in permit requirements if new source
- Facilities permitted under 1998 permit do not have to reapply
- Limitations
- Discharges to Areas of Biological Concern
- Flower Gardens
- Discharges to areas on National Register of Historic Places

## OCS General PermitGMG29000

- Effluent Limitations
- Drilling Fluids – Part I.B.1.
- Discharge of non-aqueous based drilling fluid is prohibited, except that which adheres to cuttings and small volume discharges.
- Exception allowed as carrier fluid
- Oil based drilling fluids prohibited
- No Barite in discharges unless:
- Mercury < 1.0mg/kg and Cadmium < 3.0mg/kg
- Toxicity
- Daily minimum & monthly average minimum
- 96 Hour LC-50 - Mysidopsis Bahia
- No Free Oil
- Discharge Rate < 1,000 Barrels/hour

## OCS General PermitGMG29000

- Effluent Limitations
- Drill Cuttings (Part I.B.2.)
- Prohibitions
- Oil contaminated (e.g., engine oil, gear oil, cooling oil)
- Diesel oil contaminated drill cuttings
- Mineral oil contaminated drill cuttings
- Limitations
- No Barite in discharges unless:
- Mercury < 1.0mg/kg and Cadmium < 3.0mg/kg
- Toxicity Test - 96 Hour LC-50 - Mysidopsis Bahia
- No Free Oil

## OCS General PermitGMG29000

- Effluent Limitations
- Drill Cuttings (Part I.B.2.)
- Non-Aqueous Based (synthetic)
- Stock Limitations
- Analyze or certify
- If analyze:  PAH, sediment toxicity, biodegradation rate
- Discharge Limitations
- Sediment Toxicity (ratio to reference < 1.0)
- Formation Oil (No discharge, test or certify)
- Base fluids retained on cuttings
- Drill cuttings to sea floor (use 14% to determine compliance with base fluids retained on cuttings)

## OCS General PermitGMG29000

- Effluent Limitations
- Drill Cuttings (Part I.B.2.)
- Non-Aqueous Based (synthetic)
- Discharge Limitations (continued from previous page)
- De minimus synethic discharges
- Best Management Practices (either monitor daily or implement BMPs).
- Monitoring Requirements
- Seabed surveys (individual or industry-wide)

## OCS General PermitGMG29000

- Effluent Limitations
- Deck Drainage (Part I.B.3.)
- Limitations
- No Free Oil
- Produced Water (Part I.B.4)
- Limitations
- Oil:  <42 mg/L daily max. / <29 mg/L monthly avg.
- Toxicity: See Appendix D, Table 1
- Monitoring
- Flow (MGD) – once a month estimate
- Oil & Grease – monthly
- Toxicity–once/year unless >4600 bbl/day (quarterly)
- Visual Sheen – once per day
- Hypoxia Zone Study

## OCS General PermitGMG29000

- Effluent Limitations
- Produced Sand (Part I.B.5.)
- No Discharge
- Well Treatment Fluids, Completion Fluids, and Workover Fluids (Part I.B.6.)
- Limitations
- No Free Oil
- Oil:  <42 mg/L daily max. / 29 <mg/L monthly avg.
- No priority pollutants except trace amounts
- Monitoring
- Monitored as part of produced water discharge

## OCS General PermitGMG29000

- Effluent Limitations
- Sanitary Waste, >=10 People (Part I.B.7.)
- Prohibitions
- No Solids – daily observation of discharge
- Limitations
- Residual chlorine > 1.0 mg/L – monitored monthly
- Exception on Monitoring:
- If USCG certified MSD and properly operated, then no monitoring required.

## OCS General PermitGMG29000

- Effluent Limitations
- Sanitary Waste, <10 People (Part I.B.8.)
- Prohibitions
- No Solids – daily observation of discharge
- Exception on Monitoring:
- If USCG certified MSD and properly operated, then no monitoring required.
- Domestic Waste
- No solids or foam
- Monitor daily

## OCS General PermitGMG29000

- Effluent Limitations
- Misc. Discharges (Part I.B.10.)
- Desalination Unit Discharge
- Diatomaceous Earth Filter Media
- Blowout Preventer Fluid
- Uncontaminated Ballast Water
- Uncontaminated Bilge Water
- Mud, Cuttings, and Cement at the Seafloor
- Uncontaminated Freshwater
- Uncontaminated Seawater
- Boiler Blowdown
- Source Water and Sand
- Excess Cement Slurry

## OCS General PermitGMG29000

- Effluent Limitations
- Misc. Discharges (Part I.B.10.)
- Limitations
- No Free Oil – monitored weekly
- Some exceptions (see Part I.B.10.(a))
- Unmanned facilities: (automatic purge systems, bilge water, ballast water, etc.)

## OCS General PermitGMG29000

- Effluent Limitations
- Misc. Discharges of Seawater and Freshwater which have been chemically treated. (Part I.B.11.)
- Limitations
- Treatment Chemicals
- Max. conc. of EPA product registration labeling, Mfg. recommended conc., or 500 mg/L
- No Free Oil
- Toxicity

## OCS General PermitGMG29000

- Effluent Limitations
- Misc. Discharges of Seawater and Freshwater which have been chemically treated. (Part I.B.11.)
- Monitoring
- Flow (MGD) – once per month
- Toxicity
- 0-499 bbl/day – yearly
- 500-4599 bbl/day – quarterly
- >=4600 bbl/day - monthly

## OCS General PermitGMG29000

- Effluent Limitations
- Other Discharge Limitations (Part I.C.)
- No solids or foam
- No Halogenated Phenol Compounds
- Minimize Dispersants, Surfactants, and Detergents
- Garbage prohibited
- Comminuted food waste (able to pass through a screen with a mesh no larger than 25 mm, approx. 1 inch) may be discharged when 12 nautical miles or more from land.
- No Discharge in Areas of Biological Concern

## OCS General PermitGMG29000

- Operation & Maintenance (Part II.B.)
- Need to Halt or Reduce not a Defense
- Duty to mitigate
- Bypass
- If not exceeding limitations, the permittee may allow any bypass to occur, but only if it also is for essential maintenance to assure efficient operation.  These bypasses are not subject to the provisions of Parts II.B.4.b and 4.c.

## OCS General PermitGMG29000

- Operation & Maintenance (Part II.B.)
- Bypass
- EPA may enforce if:
- unavoidable to prevent loss of life, personal injury, or severe property damage;
- There were no feasible alternatives to the bypass, such as the use of auxiliary treatment facilities, retention of untreated wastes, or maintenance during normal periods of equipment downtime.
- Must have adequate backup equipment.
- Permittee failed to provide notice.

## OCS General PermitGMG29000

- Monitoring & Records (Part II.C.)
- Inspection & Entry
- EPA, MMS, Coast Guard, FBI, DOJ, etc.
- Representative sampling
- Retention or Records – 3 years
- Record contents
- Monitoring Procedures – 40 CFR 136
- Flow measurements (within 10%)

## OCS General PermitGMG29000

- Reporting Requirements (Part II.D.)
- Changes to discharge not in Permit
- Anticipated Non-compliance
- Transfers
- Discharge Monitoring Reports
- _[www.epa.gov/region6/6en/w/offshore/dmrinstructions.htm](http://www.epa.gov/region6/6en/w/offshore/dmrinstructions.htm)_
- Dual cycle (toxicity & all other discharges)
- 24-hour reporting of non-compliance which may endanger health or the environment
- _[R6genpermit@epa.gov](mailto:R6genpermit@epa.gov)_
- Must be followed up with written report in 5 days

## Who is Authorized to Sign

- The definition of an authorized signatory for a corporation (40 CFR 122.22 and Part II.D.10.a of the permit) is:
- a.(1)(a) A president, secretary, treasurer, or vice-president of the corporation in charge of a principal business function, or any other person who performs similar policy or decision making functions for the corporation; or,
- a.(1)(b) the manager of one or more manufacturing, production, or operating facilities, provided: the manager is authorized to make management decisions which govern the operation of the regulated facility including having the explicit or implicit duty of making major capital investment recommendations, and initiating and directing other comprehensive measures to assure long term environmental compliance with environmental laws and regulations; the manager can ensure that the necessary systems are established or actions taken to gather complete and accurate information for permit application requirements; and where authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures.

## Who is Authorized to Sign (continued)

- b.  All reports required by the permit and other information requested by the Director shall be signed by a person described above or by a duly authorized representative of that person. A person is a duly authorized representative only if:
- b.(1) The authorization is made _in writing_ by a person described above;
- b.(2) The authorization specified either an individual or a position having responsibility for the overall operation of the regulated facility or activity, such as the position of plant manager, operator of a well or well field, superintendent, or position of equivalent responsibility, or an individual or position having overall responsibility for environmental matters for the company. A duly authorized representative may thus be either a named individual or an individual occupying a named position; and,
- b.(3) The written authorization is submitted to the Director [to the attention of Ms. Sharon Haggard (6EN-WC)].

## Certification Statement

- 40 CFR 122.22(3)(d), or Part II.D.10.c. of the OCS General Permit
- “I certify under penalty of law that this document and all attachments were prepared under my direction or supervision in accordance with a system designed to assure that qualified personnel properly gather and evaluate the information submitted. Based on my inquiry of the person or persons who manage the system, or those persons directly responsible for gathering the information, the information submitted is, to the best of my knowledge and belief, true, accurate, and complete. I am aware that there are significant penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.”

## Notice of Intent

- www.epa.gov/region6/6en/w/offshore/noi2004.pdf

## Notice of Termination

- www.epa.gov/region6/6en/w/offshore/not2004.pdf

## Transfer Agreement

- www.epa.gov/region6/6en/w/offshore/transfer-agreement2004.pdf

## Transfer Agreements (TAs)

- Use the letterhead of one of the companies (doesn’t matter which one) and identify the operators involved and their respective NPDES permit numbers.
- State the reason for the transfer.
- Provide a listing of properties (lease area/block number) being transferred.
- Contact names/telephone numbers.
- A statement to the effect that Operator “A” agrees to transfer coverage for _(lease area/block number)_ to Operator “B” and that Operator “B” accepts transfer of coverage.
- The TA must be signed and certified by authorized individuals from both operators.

**When TAs are being used to gain coverage after the permit has expired, you need to be sure to include the following items in your letter:**

## Mergers

- Identify all operators involved and their respective NPDES permit numbers.
- State whether the company’s will continue to operate under their respective names (or new names)/permit numbers.
- If two or more companies are consolidated into a single entity, then provide the name of the new entity and state which permit number will be retained and which permit number will be canceled.
- Provide a listing of the properties (lease areas/block numbers - again, do not abbreviate) that are being merged.
- The merger letter must be signed and certified per Part II.D.10. of the permit.
- Submit to EPA as soon as possible, allowing sufficient time for processing.

- Be sure to include the following when notifying EPA of a merger of two or more operators into one company:

## Frequently Asked Questions

**Q: **Who must obtain coverage if one Operator drills but discharges to another location other than the originating point (i.e., to another lease area/block operated by another Operator)?
**A:** The first question to answer is which party or parties is the operator (i.e., who controls the discharge, including the ability to alter or discontinue the discharge).  The operator(s) controlling the discharges must obtain NPDES coverage. For NPDES purposes, sometimes more than one company may need coverage for the same lease area/block number.

## Frequently Asked Questions

**Q: **We “farmed out” our property to another company to operate for us. Will this other operator use our NPDES permit number and outfall number, or should they get their own coverage?
**A:** The permit states the “operator” must obtain coverage. If the other company is the “operator” controlling the discharges, then they need NPDES permit coverage. If it takes both companies to be the “operator” and in control of the discharges, then both companies need permit coverage.

## Frequently Asked Questions

**Q: **Can another party than the operator (i.e., engineer or consulting firm) sign and submit an NOI on behalf of the operator?
**A:** No. A consulting firm, or other third party, can prepare and mail the document, but only the operator can sign and certify the NOI.

## 24-Hour Non-compliance Reporting

**24-Hour Hotline phone:  (214) 665-6595**
**Alternative to 24-Hour Hotline:**
**Send an e-mail to R6GenPermit@epa.gov**

## Debt Collection Improvement Act of 1996 – 31 USC 3701

- Modified by the Civil Penalties Inflation Adjustment Act of 1990 – 28 USC 2461.
- Rule adjusts the amount of civil penalties (table at 40 CFR 19.4) in accordance with the Consumer Price Index.
- $10,000/$25,000/$125,000
- Original CWA Penalties (33 USC 1319(d),(g))
- Penalties from 1972 through January 1997
- $11,000/$27,500/$137,500
- 61 _Fed_. _Reg_. p. 69360
- Penalties from February 1997 through March 14, 2004
- $11,000/$32,500/$157,500
- 69 _Fed_. _Reg_. p. 7121
- Penalties for violations after March 14, 2004.

## CWA Enforcement

- Criminal - 33 USC 1319(c)
- Negligent – 33 USC 1319(c)(1)
- $2500-$25,000 per day of violation & up to 1 yr
- Repeat violator up to $50,000 per day & up to 2 yrs.
- Knowing – 33 USC 1319(c)(2)
- $5000-$50,000 per day of violation & up to 3 yrs.
- Repeat violator up to $100,000 per day & up to 6 yrs.
- Knowing Endangerment – 33 USC 1319(c)(3)
- For person: up to $250,000 & 15 years
- Organizations up to $1,000,000
- False Statements – 33 USC 1319(c)(4)
- Up to $10,000 or 1 year
- Repeat Violator: up to $20,000 or 2 years
- Not subject to the Civil Penalties Inflation Adjustment Act (28 USC 2461)

## CWA Enforcement

- Civil Judicial - 33 USC 1319(d)
- Up to $25,000 per day per violation
- See Civil Penalties Inflation Adjustment Act (28 USC 2461) which increases this to $32,500.
- Factors:
- Seriousness of the violation or violations
- Economic benefit (if any) resulting from the violation
- Any history of such violations, any good-faith efforts to comply with the applicable requirements
- The economic impact of the penalty on the violator
- Such other matters as justice may require.

## CWA Enforcement

- Civil Administrative Penalties
- Class I - up to $25,000, $10,000 per violation
- 33 USC 1319(g)(2)(A)
- Class II - up to $125,000, $10,000 per violation
- 33 USC 1319(g)(2)(B)
- Factors – 33 USC 1319(g)(3)
- Nature, circumstances, extent and gravity of the violation, or violations, and, with respect to the violator, ability to pay, any prior history of such violations, the degree of culpability, economic benefit or savings (if any) resulting from the violation, and such other matters as justice may require.
- See Civil Penalties Inflation Adjustment Act (28 USC 2461) which increases this to $11,000, $32,500, and $157,500.

## CWA Enforcement

- Administrative Process
- Administrative Order
- Order for Compliance (33 USC 1319(a))
- Types of Orders
- 30 Day Compliance
- Show Cause with intent to penalize
- Schedule Order
- Each Order must be closed
- Administrative Penalty Orders
- Mutually resolved with a Consent Agreement & Final Order
- Non-mutually resolved by a Hearing before an Administrative Law Judge or Regional Judicial Officer
- Can be appealed to the Environmental Appeals Board
- Which can be appealed to the Federal Courts
- Public Notice

## CWA Enforcement

- 1995 Clean Water Act Settlement Policy
- Used to resolve EPA civil and administrative CWA penalty actions
- Not binding on DOJ, US Attorney’s Office, criminal cases, or citizen suits.
- Purpose is to provide reduced penalty incentive to settle without going through a lengthy judicial case, and to provide consistency nationally.
- Not used if we go to Hearing or Court
- CWA 309(d) – 33 USC 1319(d)

## CWA Enforcement

- 1995 Clean Water Act Settlement Policy
- Formula
- Penalty = Economic Benefit + Gravity ± Gravity Adjustment Factors – Litigation Risks – Ability to Pay – Supplemental Environmental Projects
- Economic Benefit
- BEN = economic model program
- Gravity
- Monthly Gravity Component = (1+A+B+C+D)X$1000
- A = Significance
- B = Health & Environmental Harm
- C = Number of Effluent Violations
- D = Significance of Non-effluent Limit Violations

## CWA Enforcement

- 1995 Clean Water Act Settlement Policy
- Gravity Adjustment Factors
- Flow Reduction
- Does not apply to non-municipals if the facility or parent company employs more than 100 people.
- History of Recalcitrance Adjustment Factor
- Can increase penalty up to 150%
- Quick Settlement Discount (10%)
- Litigation Risk
- Ability to Pay
- ABEL & MUNIPAY

## CWA Enforcement

- 1995 Clean Water Act Settlement Policy
- Supplemental Environmental Projects
- www.epa.gov/compliance/civil/programs/seps/
- Voluntary Projects
- Public Health
- Pollution Prevention
- Pollution Reduction
- Environmental Restoration and Protection
- Emergency Planning & Preparedness
- Assessments and Audits
- Environmental Compliance Promotion

## CWA Enforcement

- 1995 Clean Water Act Settlement Policy
- Supplemental Environmental Projects
- The final settlement penalty must equal or exceed either:
- The economic benefit of noncompliance plus 10% of the gravity component, or
- 25% of the gravity component only, whichever is **greater**.
- Credit usually 20-80%, few circumstances 100%

## CWA Enforcement

- Unauthorized discharges
- Usually a description of discharges in violation of a permit limit or condition
- Violation of a permit is a violation of CWA Sections 402 and 301.
- Unpermitted discharges
- Violation of Section 301 only

## Coast Guard & EPA Enforcement of Spills

- EPA and the Coast Guard enforce the CWA with some overlapping jurisdictions
- EPA performs Section 309 (33 USC 1319) enforcement assuring compliance with NPDES permits and for unpermitted discharges of pollutants to waters of the U.S.
- The Coast Guard performs Section 311 (33 USC 1321) enforcement of oil spills (Section 311 is also known as the Oil Pollution Act).
- Section 311(b)(11): "Civil penalties shall not be assessed under both this section and section 309 for the same discharge.”
- If you have an oil spill, then you could face an enforcement action under either 309 or 311, but not both.
- The defendant must raise this defense if enforcement has already commenced under either section.

## Vessels & NPDES Permits

- Section 301 of the Act prohibits discharges of pollutants to waters of the U.S. without an NPDES permit. "Discharge of a Pollutants" as defined at 40 CFR 122.2 does not include discharges from "a vessel or other floating craft which is being used as a means of transportation." However, if the vessel is not being used for transportation (e.g., it is being used for oil and gas exploration/production), then the discharges are subject to the NDPES program. Discharges from vessels or other floating craft being used for transportation are regulated by the U.S. Coast Guard.
- CWA Section 502(12)(b) [33 U.S.C. Section 1362(12)], excludes addition of a pollutant from "a vessel or other floating craft" to the ocean or contiguous zone from its definition of "discharge of a pollutant".

## Vessels & NPDES Permits

- 40 C.F.R. 122.3:
- The following discharges do not require NPDES permits:
- (a) Any discharge of sewage from vessels, effluent from properly functioning marine engines, laundry, shower, and galley sink wastes, or any other discharge incidental to the normal operation of a vessel. This exclusion does not apply to rubbish, trash, garbage, or other such materials discharged overboard; nor to other discharges when the vessel is operating in a capacity other than as a means of transportation such as when used as an energy or mining facility, a storage facility or a seafood processing facility, or when secured to a storage facility or a seafood processing facility, or when secured to the bed of the ocean, contiguous zone or waters of the United States for the purpose of mineral or oil exploration or development.

## New EPA Ship:  Bold

## New EPA Ship:  Bold

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