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# RCRA Box 321 Prepped by Ryan Dugan



### Document

Number: 

# 243 ) OGRC-S003 6 Docket Number: 

# F-93-OGRC-FFFF F

Printed 5/8/2007 3:36:33 PM

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## D . RuddyTeleconNotes

Communication s Betwee n Crud e Oi l Reclaimer s

an d U.S . EPA Offic e o f Soli d Wast e PJ L 

### 0G4C- S003 6P. 3
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Oct . 29 , 199 0 A.A . Oilfiel d Service , Inc . Hobbs , N M BarryPeter s 505-392-257 7 A.A . Oilfiel d sen t a lette r t o WMD o n9/18/90 ; attache d t o th e lette r i s a tabl e o f wast e processed/generate d an d crud e reclaime d fo r th e year s 198 4 thr u 199 0 (y.t.d.) . Primaril ya trucking fir m (hauling) , the na tank cleaner , the n a reclaimer . Normall yonl yprocesse s tank bottoms , bu t als o produce d water . Produce d water : I nb yA.A . Oilfiel d truck , int o a 1,00 0 bb l tank , oi l settling an d skimming i ntank , oi l t o 25 0 bb l tank , hea t & de-emulsifie r i n25 0 bb l tank , truc k o r pipelin e reclaime d oil . Oi l sol d a t "poste d o r contract " pric e (no t spo t price) . Produce d wate r t o onsit e clas s I I well . Tank bottoms : I nb yA.A . Oilfiel d truck , pum p liqui d tank bottom s int o 50 0 bb l holdin g tanks , "lighter " tank bottom s int o "treating " tanks , de-emulsifie r & hea t t o separate , produce d wate r use d t o trea t reclaime d oi l (oi l i s 'washed ' wit hbrin e t o remov e iron/sulfide) , wastes : brine , iron , heav ybottoms ; heav

y bottoms , brin e and iro nt o 3rd part ylandfarm . Landfarmcos t i s $.6 0 t o $2.0 0 pe r barrel . A.A . Oilfiel d ha d almos t 10,00 0 bb l o f suc hwast e t o landfarmi ncalenda r 1989 . A.A . Oilfiel d cease d accepting an d processin g tank bottom s a s o f 9/24/90 . The ystil l accep t an d proces s produce d water . Thei r reclaime r operatio na s a cos t cente r wa s profitable . Tank bottom s charg e rates : I f oi l conten t i s 25 % o r greater , A.A . pay s clien t a nomina l amoun t (usuall y1/ 2 o r les s o f contrac t pric e pe r calculate d bb l o f recoverabl e crude) . The yremov e i t fromclien t tanks , hau l i t t o thei r facility , and proces s it . I f oi l conten t i s 10 % up t o 25% , A.A . neithe r pay s fo r materia l no r charge s fo r material ; the yremov e i t fromclien t tanks , hau l i t t o thei r facility , an d proces s it . I f oi l i s 0 % up t o 9% , A.A . charge s clien t a removal , hauling , an d disposa l fe e o f up t o $4.0 0 pe r barrel ; the yremov e i t fro m clien t tanks , hau l i t t o thei r facility , an d proces s it . Produce d wate r charg e rates : A.A . charge s it s client s 2 0 cent s pe r barre l t o remov e produce d wate r fromclien t tanks , hau l i t t o it s facility , and injec t int o onsit e clas s I I well . A.A . skim s th e produce d wate r fo r recoverabl e crud e oil ; the yge t s o littl e crud e recoveryfromth e produce d water , tha t the ylos e trac k o fP. 4

i t i nthei r accounting system(i.e. , verysmal l volum e compare d t o tha t recoverabl e from tank bottoms) . A.A . indicate d tha t thei r competitor s charg e abou t th e same (2 0 cent s pe r barrel ) fo r remova l an

d disposa l o f produce d water . Clas s I I wel l expenses : N o fir mnumber s readil yavailabl e bu t - wel l operate d o nvacuum , s o norma l operating expense s ar e "no t significant" . Replace d wel l tubing 2 year s ag o a t cos t o f $30,000 , installe d a brin e storag e tank fo r $20 0 (salvage d fro melsewhere) . Brin e storag e tank s ar e cleane d ou t (bottoms ) every3 t o 4 months ; abou t 15 0 barrel s o f brin e tank bottom s eac hcleaning . A.A.' s estimat e o f tank bottom s disposa l todayi na haz . wast e facilit yi s $55 0 pe r barrel . Ta xtreatmen t o f reclaimer s i nNe wMexico : N o 'special ' ta x treatmen t (i.e. , n o preferentia l taxtreatment) . Pay s 6 type s o f taxe s t o Stat e (a

d valorem , school , conservation , 1 mil l college , etc. ) Reclaimer s d o no t ge t involve d i nan yroyalt yarrangements . Tha t i s betwee nth e oi l produce r an d minera l right s owner . Permit s fo r reclaimer s i nNe wMexico : N o federa l permits i N. M Oi l & Ga s Cons . Comm . issue s tw o - on e fo r operating a clas s tw o wel l an d on e fo r operating a "crud e treating plant" . N o knownloca l o r regiona l trad e association s fo r crud e reclaimers , an

d non e tha t ar e conversan t i noi l reclamatio n issue s .P. 5

Octobe r 30 , 199 0 Midwester nReclamation , Inc. , Snyder , Texa s Bo bKimme l 915-573-638 5 Operate s a trucking compan yan d crud e oi l reclamatio nfacility . Accept s onl ytank bottom s fo r processing ; n o produce d wate r othe r tha ntha t i nth e incoming tank bottoms . Abou t 1/ 2 o f th e time , hi s truckin g compan ydeliver s th e incoming tank bottoms ; th e res t o f th e tim e 3rd partie s delive r t o th e reclamatio nfacility . Th e reclamatio nfacilit ypractice s hea t treating , emulsio n breaking , and settling wate r and iro nsulfid e for m th e tan k bottoms . Benzen e typicall yrun s abou t 24 0 ppmi n incoming tank bottom s (virgi n crud e typicall yaround 120 0 ppmbenzene , gasolin e frompum

p abou t 19,00 0 ppmbenzene) . Manifest s ar e summarize d o na monthl ybasi s o n"R2 " form s fo r th e Texa s Railroa d Commission . 199 0 mont h

Sep Au g Ju l Ju n May Note : volum e o f

incoming tank bottom s bb l 5,37 9 2,08 2 2,72 7 3,63 9 4,43 5 

### tf l^ % crud e recovere d

bb l
1,59 3 1,77 2 1,37 8 1,14 2 2,01 3 

## •

M / h 0 

## V *?

i cos t t o truc k

waste s t o land

fill , $ 1,37 2 1,56 4 72 1 1,25 5 1,57 5 col . 2 minu s col . 3 abov e i s tota l volum e o f waste s t o b e disposed . Thi s include s some amoun t o f "free " wate r tha t i s sen t t o clas s I I disposa l wel l (no t owne d b y Midwestern) ; n o breakou t o f fre e wate r v . residua l bottom s availabl e fo r colum n4 . Landfil l cos t fo r residua l bottom s i s $1.5 0 pe r bb l delivere d t o landfill ; col . 4 abov e represent s Midwestern' s cost s t o truc k waste s t o landfill . "Fre e water " disposa l cost s ar e 2 5 cent s pe r barre l delivere d t o a "public " clas s I I disposa l well . N o transpor t cost s t o disposa l wel l available .P. 6

Thi s facilit yproduce s "lowgravity " crud e whic hget s $ 3 t o $ 4 unde r postin g pric e fo r e.g. , "Texa s intermediate" . Kimme l consider s hea t treating , etc . a s a productio ncost . Hea t treater s ar e fire d b ydiese l (used t o b e nat . ga s bu t unstead y supple) . Hea t treate r an d trucking t o disposa l ar e th e tw o mai n cos t item s i nthi s operatio naccording t o Kimmel . Th e reclamatio nfacilit yi s currentl yshu t downdu e t o th e ne wT C rule . Producer s ar e generall ygoin g t o landfill s no wwit htank bottom s o r els e disposin g o nsit e i npits , etc . Ft . Wort hi s closes t hazardou s wast e disposa l site . Kimme l estimate s haulin g cos t fo r 13 0 bb l t o Ft . Wort hfacilit yi s abou t $120 0 (excluding disposa l cost) . Midwester ni s "licensed " b yRRCommissio nand Texa s Ai r Qualit y Contro l Board . Midwester npay s it s client s fo r tank bottom s o nth e following schedul e (whenMidwester ndoe s th e trucking/hauling) : % oi l 85 7 0 6 0 5 5 5 0 4 5 4 0 $ pe r bb l

19.5 0 12.25 11.5 0 10.5 0 9.5 0 8.5 0 6.5 0 Th e oi l cu t i nth e bottom s i s base d o na noi l and greas e analysi s b ysolven t extractio n(thi s "shakeout " metho d seem s t o b e th e normfo r testin g oi l conten t i nthi s industry) . Kimme l doe s no t kno wth e numbe r o f hi s competitor s i nth e Stat e bu t mentione d tha t 6 competitor s i nhi s count yhav e gon e ou t o f busines s i nlas t 3 years ; think s mainl ydu e to . RRCommissio n oversight , and als o becaus e oi l major s insisting tha t wast e treatment , safety , etc . practice s ar e appropriat e befor e the y wil l us e a particula r reclaimer . Re xKin g i s RRCommissio n contac t i nAustin .P. 7

Octobe r 31 , 199 0 Ama l Oi l Company , Austin , TX(9 0 mi . sout ho f Austin ) Gilber t Prudhomme , Pres . 512-476-086 4 Sal t wate r hauling , oi l & ga s production , oi l reclamatio nar e practice d bythi s company . Verylittl e oi l reclamatio ni nth e pas t 6 month s du e to : ne wR.R . Commissio nbondin g requiremen t ($100K ) fo r reclaimers , an d ne wT C rule . 3 type s o f waste s accepte d fo r crud e reclamation : 1 . ski moi l fromclas s 2 wells . Thi s i s knowna s "P18 " oi l becaus e o f th e R.R . Commissio nfor m P1 8 tha t th e operato r o f th e well s use s t o lo g source s o f p.w . Ama l Oi l transport s th e P1 8 oi l t o it s facilit yi nit s ow ntrucks . P1 8 oi l i s abou t 75 % o f Amal' s incoming materials . (The operato r o f th e injectio nwel l doe s th e p.w . skimming an d store s th e skimme d oi l o n sit e i ntanks ; Ama l truck s th e skimme d oi l away. ) 2 . Crud e stoc k tank bottom s ar e abou t 20 % o f Amal' s incoming materials . Ama l transport s thi s i nit s ow ntruck s t o it s facility . 3 . Abou t 5 % i s frommiscellaneou s sources , including leftove r crud e fromfracing operations , etc . Ama l truck s th e P1 8 oi l an d tank bottom s t o it s plan t an d blend s themint o receiving/settlin g tanks . "Run " oi l i s pulle d of f th e to p o f th e tanks . Tank bottom s fromth e reclamatio noperation s ar e sol d t o th e nearb ycountie s fo r road/asphal t materials . Run oi l i s sen t t o heate r treate r (diese l fueled , 18 0 deg . F.) . Fre e wate r t o settling tank . Ho t oi l t o anothe r insulate d settling tank fo r 3 day s settling , the nfre e wate r ble d of f an d oi l markete d i f oi l contain s les s tha n1 % BS&W . Ama l use d t o operat e a centrifug e fo r oi l recoverybu t very costl ydail ymaintenanc e resulte d i n shutdowno f centrifuge . However , th e centrifug e di d provid e veryefficien t oi l recovery whe ni t worked . Ama l Oil' s processin g capacit yi s abou t 16 0 bb l daymaximu m o f incoming material s (an ycombinatio no f P1 8 oil , tank bottoms , an d misc . crude) . Fre e wate r remove d durin g th e reclamatio nproces s i s transporte d t o a license d clas s 2 wel l owne d b yanothe r party .P. 8

Us e o f diese l oi l instead o f ga s fo r heate r treate r make s economic s o f th e proces s poore r (i.e. , diese l mor e expensiv e tha n gas ) . Ther e wa s a trad e associatio ncalle d th e Texa s Reclaimer s Assoc , starte d up abou t 2 year s ag o bu t n o recen t activity . Officer s an d member s ar e unknown t o Prudhomme . Th e ne wR.R . Commissio n$100 K bonding requiremen t i s bein g considere d currentl yb yAmal . Accordin g t o Prudhomme , becaus e o f thi s bondin g requiremen t an d th e T C rule , Ama l mayno t continu e i nth e crud e oi l reclamatio nbusiness .P. 9

Octobe r 31 , 199 0 Dodson , Inc. , Sa n Antonio , TX Raou l Garz a 1-800-322-508 5 Facilit yconduct s tw o type s o f operations : (1 ) clean s an d blend s use d oi l an d spend diesel/gasolin e fo r sal e a s industria l fue l oi l (Dodso npay s 2 0 t o 3 0 cent s pe r gallo nfo r use d oil) , an d (2 ) processe s crud e tank bottoms , pi t skimming s an d produce d wate r skimming s fo r salabl e product . Transport s incoming material s i nowntruck s t o facility . Transport s soli d waste s t o landfil l an d some produced/fre e wate r t o clas s I I wel l i now ntrucks . Tan k bottoms , pi t skimming s an d p.w . skimming s ar e pu t int o tank s fo r hea t treatmen t (18 0 deg . F , diese l fired ) an d gravit y separation . Incoming material s ar e typicall y2 0 t o 30 % BS&W . Aclas s I I wel l i s operate d o nsit e fo r wate r disposal , bu t 3rd part ylicense d offsit e clas s I I well s ar e als o used . Offsit e 3rd part yclas s I I wel l disposa l cos t i s 3 0 cent s pe r barre l o f wate r whe ndelivere d t o th e disposa l wel l site . Soli d waste s from operation s ar e trucke d b yDodso nt o th e BF I landfarm ; landfarm cost s ar e $8.0 0 pe r barre l whe ndelivere d t o th e landfarm . Facilit yi s o n3 acres , take s i ntypicall y350,00 0 gallons/mont h o f incoming bottom s an d skimmings ; fo r "goo d quality " bottom s an d skimming s Dodso npay s $ 6 t o $ 7 pe r barre l les s tha nth e curren t poste d rate . Dodso nproduce s typicall y240,00 0 t o 250,00 0 gallons/mont hne t salabl e crude ; crud e i s sol d t o a gathere r fo r abou t $ 3 les s tha ncurren t poste d rate . Sinc e T C rul e wen t int o effect : Dodso nsay s i t i s investing mor e i nanalytica l testin g o f incoming materials , eithe r experimentin g wit ho r usin g ai r stripping o nwater s remove d fromwast e crude , an d i s goin g t o a TS D wit hwaste s tha t don' t mee t TCL P criteria .P.1 0

Novembe r 1 , 199 0 Crud e Processing , Inc . Williston , ND Ji mDavenport , Owne r 701-572-450 5 Ru nb yhimsel f and hi s wife . Shut s downfo r 4 winte r month s eac h year . Truck s tan k bottom s an d crude/p.w . skimming s t o hi s facility . Heate r treate r (propane) , grav . separation , de-emulsification . Take s i na n averag e o f 80 0 bb l pe r mont hduring operation . Pay s clien t dependin g o noi l conten t o f crud e waste s base d o n "shakeout " analysis . Say s a maximu mo f 5 0 bb l pe r mont ho f wastes . Incoming crud e i s highparaffi ncontent . Fre e wate r i s trucke d t o a commercia l clas s I I disposa l well ; pay s 3 5 cent s pe r bb l fo r disposa l a s delivere d t o wel l site . Wast e solid s ar e "stored " o nhi s property ; ther e i s currentl y approximatel y200 0 bb l i nstorage . Ha s a stat e permi t t o operat e an d i s bonde d fo r $25,00 0 wit hth e state .P.1 1

Novembe r 5 , 199 0 Atascosa , Jourdanton , TX Pau l Bishop , owne r P.O . Bo x23 6 Jourdanton , TX7802 6 512-769-224 4 Obtain s abou t 90 % o f incoming material s fromproduce d wate r skimming s a t clas s I I wel l sites . Use s ow ntruck s an

d labo r t o hau l incoming materials . exampl e curren t payment s fo r p.w . skimme d oi l (based o noi l conten t chec k wit h"shakeout " test) : I f 10 % BS&W : pay s abou t $1 8 pe r ne t bb l o f oi l I f 5 % BS&W : pay s abou t $2 3 pe r no t bb l o f oi l Incoming materia l i s pumpe d t o a feedstoc k tank ; the nt o treating tank s fo r heate r treatin g (18 0 deg . F , 2 diese l & 1 nat . ga s heaters) , de-emulsificatio ni f necessary , an d gravit ysettling . Oi l fromthi s operatio ni s drawn( < 1 % BS&W ) t o sale s tank s an d the nsol d t o a pipelin e company ; sale s pric e i s pegge d a t $ 3 t o $ 4 les s tha nth e curren t postin g fo r Sout hTexa s sou r crude , (sour becaus e th e incoming material s ar e fromsou r crude) . Solid s (tan

k bottoms , etc ) fro mprocessin g ar e sen t int o anothe r settling tank , le t t o set/settl e fo r abou t 2 months , an yfre e wate r i s drawn of f fo r trucking t o clas s I I well . Truck s fre e wate r fromprimaryan d secondarygravit ysettling operation s t o a state-approve d clas s I I facility ; pay s 3 0 cent s pe r bb l fo r disposa l (delivere d t o well) . Al l solids/bottom s ar e landfarme d on-sit e i n4 "plots " use d exclusivel yfo r Atascosa' s wastes . Th e "plots " ar e individuall yberme d an d monitore d (lysimeters) , an d ar e stat e licensed . Incoming material s volum e typicall yrange s fro m470 0 t o 580 0 bb l pe r month . O f this , 280 0 t o 350 0 bb l i s ne t oi l sol d pe r month . Th e remainde r (190 0 t o 230 0 bb l pe r month ) i s wate r an d solid s tha t ar e dispose d a s describe d above .P.1 2

Typica l monthl yexpense s (include s materials , labor , utils.) : Rawmaterial s collectio n $ 9,00 0 (include s equi p repairs ) Heat/chem

treatmen t 7,00 0 Landfarming solid s 75 0 Wate r disposa l a t clas s I I 2,00 0 G&A& Misc . 5,25 0 (include s owner s salary , repor t generation , etc. ) Tota l $24,00 0 pe r mont hP.1 3

Novembe r 6 , 199 0 Ric k Conner , Oklahoma Corporatio nCommission , Oi l & Ga s Divisio n 405-521-227 3 Conne r provide d u s wit hhi s office' s mos t recen t lis t o f activ e oi l reclaimer s (vi a faxo n11/6/90 ) Identifie d ove r phon e t o m e whic ho f thos e ar e th e large r reclaimers . 2 5 o f th e 14 5 liste d wer e identifie d a s bein g th e large r operations . Reclaimer s ar e require d t o b e bonde d fo r $10,00 0 minimu man d t o registe r wit hth e O K Ta xCommission . Thus , th e Ta xCommissio ni s th e sol e Stat e sourc e o f informatio no nproduc t volume/sale s b y reclaimers . However , Conne r sai d th e Ta xCommissio nrarel y release s suc hinformatio n t o outsid e parties . Th e Moto r Carrie r Divisio no f th e Corporatio nCommissio nwoul d handl e an

ymanifes t systemrequire d o f haulers/reclaimers . Conne r doe s no t think tha t th e manifes t system woul d provid e volume s o f reclaimer s "rawmaterials " bu t provide d a contact . Th e Moto r Carrie r Divisio ncontac t i s Do nColsto na t 405-521

- 2965 . Man yi f no t mos t o f th e reclaiming i s a s skimming o f produce d wate r a t clas s I I disposa l well s rathe r tha nprocessin g o f tank bottoms . Tan k bottom s ar e mos t typicall y"donated " t o count y commission s fo r us e a s road oiling o r pavin g material s instead o f undergoin g processin g fo r crud e oi l recovery . Eac hcount y commissio nmus t approv e th e acceptance/us e o f suc hmaterials . Ther e ar e als o stat e regulation s tha t prescrib e ho wth e material s mus t b e applie d t o roadbed s (applicatio nrates , metho d o f discing , etc. )

0 . Rudd y teleco nnote *