### 3.1 PROGRAM DESCRIPTION OF THE STATE OF TENNESSEE

DEPARTMENT OF ENVIRONMENT AND CONSERVATION

UNDERGROUND INJECTION CONTROL PROGRAM

DIVISION OF WATER SUPPLY

### MISSION STATEMENT OF THE DIVISION OF WATER SUPPLY

The Mission Statement of the Divisio n of Water Supply (DWS) is “To enhance the quality of life of the citizens of Tennessee by ensuring the safety and quality of our drinking water and non

- federal dams through training, technical assistance and the enforcement of laws and regulations and to protect our environment through source water protection programs, ground water activities and licensing.”

This submittal is intended to provide a consolidated reference document for acquiring primacy for the Underground Injection Control Program. This po rtion of the application identifies the technical information and application requirements for the Underground Injection Control (UIC) permit. This submittal will delineate all steps in the process, including responsible personnel, and approximate process milestones. Additional information includes statute and rule authorization, a process flow chart, and supporting documentation. This submittal is only intended to describe routine conditions normally encountered with the UIC permitting process. Additio nal processes and/or irregular conditions that could be involved with UIC permitting will be considered independently of this submittal.

Authority to operate the statewide UIC program within the Tennessee Department of Environment and

Conservation has bee n delegated to the Division of Water Supply (DWS), and is currently administered by the Ground Water Management Section (GWMS). Rule 1200

- 4

- 6 classifies injection wells as Class I through Class V. Tennessee has opted to ban all Class I hazardous waste in jection wells (1200

- 4

- 6

- .10(1)(a) and Tennessee does not possess the mineral resources for Class III wells, but state regulations do exist for Class I, Class II, Class III, Class IV, and Class V injection wells. Class IV wells are prohibited by Federal re gulations, by provisions of state Rule 1200

- 4

- 6

- .13 and are closed down when encountered. Tennessee’s UIC program maintains regulations and seeks primacy for all classes of the Underground Injection Control Program.

Rule 1200

- 4

- 6

- .11 requires that all Cl ass II wells either be individually permitted or covered under area permits as stated in 1200

- 4

- 6

- .11(f). There are currently twenty five Class II wells registered in the state. These wells are currently regulated by EPA.

Rule 1200

- 4

- 6

- .14 provides for the permitting of Class V underground injection activities either individually or by rule (which is equivalent to the federal rule authorization) at the discretion of the Department. All owners or operators of Class V wells are required to submit a Class V application; This application includes all inventory information or the owner/operator must cease discharge to the injection well. At no time shall an owner or operator of a Class V injection well discharge to the well without a

current authorization. The permitting process is described in 1200

- 4

- 6

- .07 through 1200

- 4

- 6

- .08 Class V

authorization is addressed in 1200

- 4

- 6

- .14. The Division’s policy is to authorize most storm water discharges and other discharges having low contamination potential (dischar ges from disposal systems that contain only sanitary waste) by rule. Discharges resulting from commercial or industrial process waste streams, which may contain more than sanitary wastewater, are evaluated on a case

- by

- case basis

as to whether or not to r equire an individual permit.

In order to determine if a discharge from a commercial or industrial process wastewater stream requires an individual permit; several portions of the waste stream and the facility are reviewed. The first point to

be conside red is the chemical makeup of the waste stream including reviewing Material Safety and Data Sheets (MSDS) for the materials used. If the facility is already in operation then an analysis of the waste stream is required in order to characterize the entire set of chemical constituents. The results are checked against the Maximum Contaminant Level (MCL) list , as well as Health Based Standards and Advisories



### 2for chemicals with no MCL to determine if any of the substances are above drinking water standards or health risks . If the constituents are above the MCL’s or health risk numbers then the facility would be required to propose a treatment system to bring the discharge into compliance. If the facility has not been constructed, then the products and any pro posed waste stream from the facility will be evaluated for its potential contaminant load. If the system will be discharging at levels over the MCL’s then the facility will not be allowed to discharge and must propose treatment devices to bring the discha rge into acceptable levels as well as any necessary remediation to the soil and groundwater. Once the system is operational and can be proven to be effective then standard sampling and monitoring parameters as stated in the authorization will apply.

An on

- site inspection is required prior to issuance of an individual permit or authorization to operate under the rule provisions. In either case, construction and/or operating conditions may be stipulated and made part of the permit or authorization. Failu re to abide by these conditions may be considered cause for revocation of the permit or authorization.

The following chart depicts the activity process for acquiring an Authorization to Discharge.



### 3PROCESS FLOW DIAGRAMREGIONALEFOSite inEFOareaApplicant preparessupportingdocumentation



### 4REGIONAL EFO



### 5STEP # AC TIVITY DATE/INITIAL MANDATED DUE

DATE

1 Receive application and

fee

2 Conduct application

review

3 Conduct site inspection

4 General permit issued

5 Individual permit required:

Additional information

received

Public Hearing

Additional information

reviewed

6 Individual permit issued

With conditions and requirements for sampling and testing

7 Permit denied

Responsible Person Steps

Central Office CO/ Geologist/Environme ntal Specialist 1. Receive notification and fee to operate injection well



### • If application (See Section Six) is requested, send information packet to applicant



### • Assist applicant with application information



### • Review application information when application is submitted



### • Review appropriate file information



### • Schedule site inspection

Level of Effort for this step: 0.2

- 1.0 hours (Depends on site complexity)

CO/EFO Geologist

Environmenta l Specialist 2. Conduct on

- site inspection



### • Review application information



### • Review site specific operating parameters



### • Determine site suitability for injection well



### • Correct application information, if necessary



### • If general authorization can be issued, go to step 3



### • If individual permit can be issued, go to step 4

Level of Effort for this step: 1.0

- 12 hours (Depends on travel time to and from site location)

CO/ Geologist/

Environmental 3. General authorization can be issued



### • Authorization can b e issued in the field or from the office



### 6Specialist 

### • Assist applicant with additional application information



### • Determine conditions for authorization



### • Fill in authorization form letter



### • Give authorization to applicant, or mail to applicant



### • Copy authorization to other age ncies and individuals affected by the authorization (e.g., other state agencies, local government entities, EPA)

Level of Effort for this step: 0.2

- 2.0 hours (Depends on availability of information necessary to write permit)

CO Geologist 4. Indivi dual permit must be issued



### • Assist applicant with filling out/correcting application



### • Begin to determine specific conditions for permit



### • Ask applicant for additional information



### • Individual permits are required for all Class I and Class II wells and any Class V wells that may employ the use of innovative technology, sensitive land use, etc



### • All individual permits must have a public hearing

Level of Effort for this step: 1.0

- 12 hours (Level of effort for this step is determined at step 2)

CO Geologist 5. Receive and review additional technical information



### • Is all information submitted?



### • Is information acceptable?



### • If additional information is needed, request from applicant



### • If public notice option (innovated technology, sensitive land use, etc.) is needed foll ow public participation process

Level of Effort for this step: 1.0 hours

- 180 days (Depends on complexity of material)

CO Geologist 6. Issue individual permit if acceptable



### • Using authorization letter, modify by including specific site

conditions and limits



### • Send permit to applicant

Level of Effort for this step: 0.5 hours (Typical work history)

CO Geologist 7. Deny individual permit if appropriate



### • Notify applicant by phone and letter



### • Advise applicant to modify and resubmit information



### • If applican t resubmits information, go to step 5



### 7

### • Advise applicant of appeal process



### • If applicant appeals denial, follow appeal process

Level of Effort for this step: 2.0 hours (Typical work history)

The State of Tennessee does not contain within its borders any Tribal Lands; therefore there are no provisions for regulations on tribal lands within the borders of the State of Tennessee.

All public notices for the UIC program will be issued following the Uniform Administrative Procedures

Act Tennessee Code Annotate d (T.C. A.) 4

- 5

- 101 (Section 5). This act sets the time frame for all public notices and the official procedures for notification of the public and other interested parties for all public

notices in T.C.A. 4

- 5

- 203.

4

- 5

- 203. Notice of hearing.

(a) Whenev er an agency is required by law to hold a public hearing as part of its rulemaking process, the agency shall:

(1) Transmit written notice of the hearings to the secretary of state for publication in the notice section of the monthly administrative registe r and, if a statute applicable to the specific agency or a specific rule or class of rules under consideration requires some other form of publication, publish notice as required by that statute in addition to publication in the notice section of the month ly administrative register; and

(2) Take such other steps as it deems necessary to convey effective notice to persons who are likely to have an interest in the proposed rulemaking.

(b) Except as otherwise permitted by § 4

- 5

- 204(e) , notice through public ation in the monthly administrative register shall be given at least forty

- five (45) days prior to the date set for the hearing and shall be deemed to have been given on the first day of the month after the

month in which the notice was transmitted to the secretary of state for such publication.

(c) The notice which this section requires an agency to give shall include:

(1) A statement of the time and place at which the hearing is to be held;

(2)



### 8(A) The express terms of the rule being proposed; provi ded, that an informative summary reasonably calculated to give notice to interested parties may be substituted for the express terms of the proposed rule if:

(i) The express terms of the rule being proposed are filed with the secretary of state;

(ii) The secretary of state determines that publication of the entire text of the proposed rule would be impractical; and

(iii) The complete text of the express terms of the proposed rule is made available by the secretary of state or the agency for public inspec tion and copying;

(B) Nothing in this section shall be construed to preclude an agency from making changes in the rule being proposed after the public hearing, so long as the changes are within the scope of the rulemaking notice filed with the secretary of state;

(3) Insofar as practicable, a reference to the statutory authority pursuant to which the agency proposed to adopt the rule; and

(4) Any additional matter which may be prescribed by statute applicable to the specific rule or class of rules under consideration.

(d) Failure of any person to receive notice of a hearing on proposed rulemaking is not grounds for invalidating the resulting rule if notice of the hearing was published as provided in subdivision (a)(1).

(e) The secretary of state shal l prescribe rules governing the manner and form in which written notice of hearings shall be transmitted by the agencies to the secretary of state for publication in the notice section of the monthly administrative register. The secretary of state may refu se to accept for publication any notice of hearing transmitted that does not conform to such requirements, in which case transmission of notice shall be deemed not to have been satisfied under the provisions of subdivision (a)(1) and subsection (b).

[Acts 1975, ch. 370, § 8; T.C.A., §§ 4

-

ORGANIZATION

The Division of Water Supply will house the Underground Injection Control Program for the State of Tennessee. The Division is located within the Department of Environment and Conservation. The



### 9Division D irector is responsible to the Senior Water Director who answers to the Deputy Commissioner of Environment who reports to the Commissioner of the Department. The Commissioner of Environment

and Conservation is a member of the Governor’s Cabinet.

The day

- t o

- day operation of the UIC program will be carried out under the Ground Water Management Section within the Division of Water Supply. (Please see attached organizational chart). The UIC program is staffed with an Environmental Specialist 5 part time in t he role of UIC Coordinator for the State out of the Central Office in Nashville. The position is funded by the Section 106 Ground Water Grant. This person is currently the main contact for all UIC issues in the State and also acts as the

Assistant Source Water Protection Coordinator. This position has the primary responsibility for coordinating the statewide Underground Injection Control Program (UIC) and consulting with the EPA’s UIC program staff. Under this person is a Geologist 4 who will have the pr imary responsibility for the daily field operation of the program. The duties of this Geologist 4 position include evaluation of property for issuance of construction permits for UIC issues, issuance of construction permits, construction inspections, and compliance inspections once the system is in operation to determine compliance with regulatory requirements. All Ground Water Management (UIC) staff are involved in the collection of water/waste water samples, evaluation of subdivision plats for storm wat er, investigating complaints, providing technical assistance, and issuing UIC permits for Class I, Class II, Class III and Class V injection wells. Other duties include providing technical assistance to other divisions and the regulated community on ground water treatment technologies. The UIC Coordinator is also responsible for instituting enforcement actions when the regulated community is found to be in non

- compliance. This position requires overnight travel; work with computer databases, fieldwork, tra cking of multiple projects, and public interaction. A general knowledge of the geology of the State is also required.

The UIC Coordinator also has two field office staffers on a part

- time basis. One of these two positions is

a Environmental Protection Specialist 3 (engineering degree is required, but not a Professional Engineering (P.E.) certification) in Knoxville and the other is an Environmental Specialist 3 in Johnson City. These are located in the Knoxville Environmental Field Office (EFO) and th e Johnson City Environmental Field Office (EFO). The duties of these positions include property evaluation for issuance of construction permits for UIC issues, construction inspection, and compliance inspections after the system is in operation, water/was te water sample collection, subdivision plat evaluations for storm water, complaint investigations, and providing technical assistance to owners of Class V injection wells. Other duties include providing technical assistance to other Divisions and the reg ulated community on groundwater treatment technologies. The UIC inspector is also responsible for instituting enforcement actions when the regulated community is found to be in non

- compliance and other duties as deemed

necessary.

The Division of Water Su pply has staff in seven of the eight Environmental Field Offices (EFOs) across the State; each Environmental Field Office contains staff that is at the disposal of the UIC Coordinator for field inspections while working within the geographical boundaries o f each EFO.

The UIC Coordinator will be responsible for the Class II program. The Division of Water Supply will continue to work closely with the Division of Water Pollution Control, which houses the State’s Oil & Gas Program. Both of these Divisions fall under the jurisdiction of the Commissioner of Environment

and Conservation and the Senior Water Director. The Division of Water Pollution Control has two field inspectors who are knowledgeable in all aspects of the production and storage of crude oil and gas, and will be a valuable resource for the UIC program. The UIC program is responsible for the operation and inspection of the Class II program but is currently writing a MOA with the Oil and Gas Program in order to train their inspectors to help wi th the program. Once this MOA is completed a copy will be submitted to EPA as a supplemental portion to this section.



### 10The UIC Coordinator will be responsible for all Class V Large Capacity Septic Systems (commercial, industrial and large residential), as well as the rest of the Class V program. Currently the State of Tennessee has personnel from the Division of Ground Water Protection (part of the Department of Environment and Conservation) in most counties in the State. The Division of Groundwater Prot ection has the responsibility for permitting the location of all subsurface sewage disposal systems in the state. The Division of Water Supply and the Division of Ground Water Protection have an existing Memorandum of Understanding (see attached MOU Secti on 5) on how the large capacity systems are to be handled. The Division of Water Supply will assess each system on the type and content of injected fluid, while Ground Water Protection will address the size of the tank; the amount of field line required

a nd soil type for each of the systems. No Large Capacity Septic System will be operated without authorization from both Divisions. This agreement offers the UIC Coordinator an active field presence in each county in the State.



### 11

### DEC FLOW CHART

12

## Electronic versions please insert PDF File DEC Flow

13

### DWS FLOW CHART

14

## Electronic versions please insert PDF File DWS Flow

15ESTIMATED COSTS OF ESTABLISHING AND OPERATING THE PROGRAM WITH

FUNDING SOURC ES

Tennessee has an operating program covering the UIC issues in the State. The estimated costs for the establishment of an Underground Injection Control program in Tennessee are already absorbed by the State. In order to maintain this program it is e stimated that one hundred twenty

- three thousand thirty six dollars ($123,036) will be required to operate the existing UIC program for the State. The money is to come from a federal grant (see Application for Federal Assistance) and money from the State f ee program. The program is itemized below with current and estimated operating monies. A breakdown of

this sum is as follows:

Item Federal Funds ($) State Funds ($)

A Personnel 48,198.00 26,350.00

B. Fringe Benefits 14,459.40 7,905.00

C. Travel 3 ,391.32 500.00

V. D. Equipment 1,000.00 100.00 Expenditure E. Supplies 1,000.00 100.00 by F. Contractual 0.00 0.00 Object Class G. Other Direct Charges 0.00 0.00

H. Indirect Charges 12,951.28 7,080.51

I. Total 81,000 42,035.51

A. Administrat ion 5,400.00 8,126.96

B. Permitting 10,800.00 5,604.80

C. Surveillance, Inspection, and Quality

Assurance 27,000.00 11,209.60

VI. D. Enforcement 10,800.00 5,604.80 Expenditure by Program E. Aquifer

Identification and Exemption 0.00 280.54

Element F. Class V

Assessment 21,600.00 0.00

G. Data Management 2,700.00 5,604.80

H. Public Information, Training, and

Technical

Assistance 2,700.00 5,604.80

I. Other 0.00 0.00

J. Total 81,000.00 42,036

Of the One

- hundred twenty

- three thousand thirty six dollars ($123,036), the State expects to receive from the Environmental Protection Agency in fiscal year 10

- 11, Eighty one thousand ($81,000.00). The Fees



### 16from the individual users is estimated to be at or around forty two thousand thirty six dollars ($ 42,036). Any fee monies collected by the UIC program are placed in individual cost centers under the Environmental Protection Fund (EPF) to be used by the UIC program as needed.

ENFORCEMENT AND COMPLIANCE TRACKING

The purpose of this policy and procedur es statement is to define the roles, activities and responsibilities for the Division of Water Supply personnel whose duties include enforcement tasks relevant to T.C.A.

Sections 68

- 221

- 701 et seq., 68

- 221

- 901 et seq., 69

- 3

- 101 et seq., and 69

- 11

- 101 et se q. and the attendant rules and/or regulations promulgated thereto. In addition, it establishes a methodology for ensuring a systematic and consistent process for those enforcement actions and decisions in a manner designed to be

consistent with the simila r policies and procedures adopted by the Bureau of Environment within the Department of Environment and Conservation.

The Division of Water Supply’s mission falls within the overall mission of the Tennessee Department of

Environment and Conservation. To achieve its mission within the Department the Division provides training and technical assistance, license and enforcement, review, and investigation. The Division protects the public and assumes the role of a public advocate by regulating underground inj ection; including the taking of enforcement actions against those who violate the acts, laws, and rules that the Division is responsible for administering. The Division of Water Supply’s Enforcement Section is responsible for determining if sufficient doc umentation is available to establish non

- compliance, drafting of orders and tracking compliance with orders issued. The Division of Water Supply discovers violations of the Safe Drinking Water Act and the Tennessee Water Quality Control Act (Tennessee’s U IC program is authorized by the Water Quality Control Act) through several means. In addition to discovering violations while conducting complaint investigations, staff also identifies violations while conducting on

- site evaluations of facilities. These are announced and

unannounced on

- site inspections of the facilities where samples may be taken and reviews of all required reporting data submitted to the State. Though many deficiencies are often identified, the Division uses several methods to insure pu blic safety. Often times an immediate site rectification is needed. And the owner/operator is notified and voluntary corrective actions are taken immediately without further enforcement actions being required. If deficiencies are not addressed by a facil ity and the deficiencies persist then more formal enforcement actions proceed. Some deficiencies have been identified by DWS staff as items, which are “critical” to the protection of quality groundwater and/or essential to proper management of an injectio n system. These deficiencies must be addressed by the facility immediately and trigger further enforcement. In these instances the facility receives a Notice of Violation (NOV) or Notice of Noncompliance (NONC) and may be subject to additional enforcemen t action to achieve compliance.

A Notice of Violation (NOV) is an initial notification that the recipient has committed a violation of statute or rule. It cites the statute or rule violated, and describes the failure or action, which constitutes

the viol ation. The NOV normally will direct a course of action to correct or mitigate the violation, and set a compliance deadline by which such action must be completed. The NOV is considered to be an "informal" enforcement action, and does not assess a civil p enalty.

A Notice of Non

- Compliance (NONC) is a second notification to a regulated party of the regulated party's failure to comply with the provisions of an earlier NOV. It is an appropriate action in either of two

circumstances:



### 17a. The violator has fai led to perform or accomplish corrective actions directed by the Department in a NOV in accordance with the prescribed compliance deadline; or,

b. the violator has committed a second violation of the same statute or rule section as was previously cited in a NOV issued to that violator. In this case, the violator is put on notice by the previous NOV that a certain action or omission constitutes violation of a statute or rule, and subsequently commits a second violation, thereby "failing to comply" with the p revious notice.

A NONC is again considered to be an "informal" enforcement action and does not assess a civil penalty, but normally will request a meeting with the regulated party to discuss the violation and obtain a commitment from the regulated party t o correct the violation and to come into and remain in compliance. Such a meeting is commonly called a Compliance Review Meeting (CRM). At the CRM, the violator is asked to sign a Letter of Agreement (LOA), which is a voluntary stipulation by the violato r that he will take certain specified actions to come into and remain in compliance. If the violator declines to execute this voluntary compliance agreement, the Division may issue a Compliance Schedule, as part of a

Commissioner’s order which is a non

- vo luntary directive issued on behalf of the Commissioner and intended to prescribe actions, which the regulated party is to take to achieve compliance.

Failure by the regulated party to comply with the corrective actions contained in either a Letter of Agre ement or a Compliance Schedule will normally result in formal enforcement action, including administrative sanctions and assessment of civil penalties. Although the above steps are typically followed, this is a matter of policy and not required by statute or rule. If there is a need for immediate formal enforcement to protect human health or environment this can be done under the Commissioner’s authority.

In addition to identifying violations through complaint investigations, the Division of Water Supply (DWS) identifies violations through the submittal (and/or non

- submittal) of samples

, data, and/or plans/studies/certifications. Examples of violations identified in this manner include the failure by a facility to collect required injectate monitoring sa mples in accordance with permit.

Prior to the issue of the NOV or NONC, all documentation must be reviewed by the program manager, and the EFO or NCO for concurrence and/or notice. Once reviews have been performed and concurrence reached, the NOV or NON C is issued to the violator (See the “Overview of the Enforcement Process” table below which identifies the major steps in the enforcement process.)

OVERVIEW OF THE ENFORCEMENT PROCESS GENERALLY USED BY DIVISION

PROGRAM REGARDING COMMISSIONER’S

ADMINISTR ATIVE ORDERS*

Drinking Water Safe Water

Water Well Dams Environmental Program, Program Program Health

WHP and Act UIC Programs

______________________________________________________________________

NOV NOV NOV NOV



### 18NONC1 NONC1 NONC1 NONC1

NONC2 NONC2 NONC2 NONC2

EAR EAR EAR EAR

CRM CRM CRM CRM

NONC3 NONC3 NONC3 NONC3

CO* CO* CO* CO*

WQCB

- - WEHB

*Director’s Administrative Orders may be issued at any time subsequent to formally notifying a violator of deficiencies. A CRM or SCM may be required at the discretion of the Director under delegated authority (see section 9 Director’s Order).

Once a NOV is issued, division staff will monitor the situation to determine if the violator responds to the notice and corrections are made or violations cease. Where compliance is not achieved, DWS staff may issue a Notice of Noncompliance (NONC), and request a Compliance Review Meeting (CRM) if the practice warrants discussion with the respondent. Issue s which warrant a CRM, include those where the respondent may not be clear on process or procedure, or time is needed to bring the practice or situation into compliance. The result of a CRM should be a Letter of Agreement (LOA), whereby the respondent

mak es a commitment to achieve compliance within a specific time frame. Where compliance is achieved as a result of these efforts enforcement may be ceased. Where compliance is not achieved as a result of the CRM, staff shall prepare an Enforcement Action Re quest (EAR) documenting the non

- compliance and the Division of Water Supply’s efforts to assist the respondent to achieve compliance. The EAR will then be reviewed thoroughly by the Division’s Enforcement Coordinator for accuracy and completeness.

The Di vision or respondent may request a Compliance Review Meeting (CRM) if it is felt the respondent needs further explanation of the violations or is willing to accept a Letter of Agreement (LOA). A Compliance Review Meeting allows the Division to gather othe r information that may negate the need for enforcement or may provide further documentation. Both of these processes are established for the Division to inform a violator and attempt to reach an agreement with the violator. These steps can be skipped and formal enforcement instituted if the violation is one that will cause harm to the environment and or human health, or if the violator does not wish to work with the Division. The CRM should be used to come to an understanding of the situation, provide ad ditional time, obtain a commitment, or gather additional information on the respondent’s efforts to comply. Where the DWS does not achieve further progress in either one of these objectives further enforcement should be initiated and a letter sent to the respondent informing the respondent of the Division’s intention to pursue further enforcement action. Where compliance is achieved within the parameters of the Letter of Agreement (LOA) enforcement may

cease and the case closed.

Further enforcement is pu rsued either through the issuance of a Director’s Order (DO) or a Commissioner’s Order (CO). A director’s order is somewhat analogous to a “speeding ticket.” It is a quicker procedure with the level of fine typically on the order of $250 to $1,000. This is to be used when the violation is considered to be less significant or a quicker response is needed to protect human health or the environment. A Commissioner’s Order is placed on a violator when the violation is significant or requires a more in

- depth repair and or a larger penalty is warranted. The proper mechanism is determined by whether or not the Director has been delegated the authority to address the particular issues through a Director’s order. Where authority has not been delegated to the Di rector, an EAR and Draft



### 19Commissioner’s Order must be sent to the Department’s Office of General Council (OGC) for review.

Follow

- up enforcement action is the responsibility of the OGC, e.g. modifications to the draft order, routing and review of the orde r. Once the Order is signed by the Commissioner, the Order is served to the responsible party.

Once a Director’s Order or Commissioner’s Order is issued via Certified Mail the date of the signed receipt sets the 30 day clock to an appeal using the date t he Respondent received the Order. The respondent may choose to comply with the order according to the schedule and actions dictated by the order; he may ignore the order or the respondent may appeal the order. If the respondent chooses to ignore the orde r the matter must be pursued in either General Sessions Court (in the event that it is a collection issue) or Chancery Court. In such instances the Division through counsel may seek to have the respondent’s operation closed, equipment impounded, or other appropriate action taken. If the respondent appeals the order the matter must be referred to OGC (if the appeal was sent to the DWS) to be scheduled to be heard before the Water Quality Control Board with an Administrative Law Judge (ALJ). Where a

matter is appealed, the respondent must do so in a timely matter (usually 30 days) and provide reasons for the appeal. Prior to the case being heard by a board and ALJ the parties often negotiate on the issues. If an agreement can be reached relative to the am ount of penalty, timeframe for coming into compliance, etc. the board may approve the Agreed Order. Cases heard by a board and subsequently appealed are then scheduled with an ALJ present at the Board hearing. Enforcement actions go to public notice as s tated in the Memorandum on Enforcement (See Section 4 end of MOA). The State is required to follow the

Uniform Public Procedures Act T.C.A 4

- 5

- 301 et seq. on all matters of business.

Normal Enforcement Procedures

- The procedures of this part will be ap plied and implemented for violations that are not considered potentially dangerous to the environment and/or an imminent health hazard. These would include violations, which, if continued over an extended period of time, could result in degradation of the environment and/or the health of individuals in the area. These violations are processed as described in the following procedures (note

- an emergency would warrant skipping many of these steps):

STEP

# ACTIVITY DATE/INITIAL MANDATED DUE

DATE

1 Violatio n discovered or validated through reporting or monitoring data, an inspection, sanitary survey, complaint investigation or other type of inspection EFO or Nashville

Central Office

a

. Hand deliver or mail a Notice of

Violation to the violator. The correspondence shall be designated

as “Notice of Violation.” In the

event that the Notice of Violation is being forwarded to a government entity, the Notice of Violation should be sent to the highest ranking or principal official with copi es being sent to other applicable persons. Within thirty (30) days of violation discovery. Within ten (10) days of receipt from Nashville

Central Office for reporting or monitoring

violations

b. The Notice of Violation should cite

those violations found and include a



### 20reasonable compliance deadline

2

. Perform Follow

- up inspection activity to assess compliance

measures. EFO or Nashville

Central Office Within thirty (30) days of expiration of compliance deadline.

a

. If violation is corrected no further action is required by the violator. The Division may assess civil penalties and damages. The case must be appropriately documented

and included in the file.

b

. Written report documenting follow

up activity must be prepared indicating results and findi ng of

follow

- up inspection.

3

. If a violation is not corrected a Second Notice of Violation may be

issued to a violator with an abbreviated compliance deadline. Depending upon the situation, a

Notice of Non

- compliance may be

issued to the violator. If the

situation warrants issuance of a NONC, a Compliance Review Meeting may be scheduled if applicable. EFO or Nashville

Central Office

a. The Second Notice of Violation, or NONC, if for the same violation, shall be hand delivered or issued by

certified mail delivery to a violator. The Notice shall be designated as a

“Second Notice” of Violation or

Non

- Compliance. Within fifteen (15) working days of

follow

- up activity

b

. The NONC shall be hand delivered or issued by certified mail delivery

to a violato r. The Notice shall be designated as a “Notice of Non

Compliance.” A CRM shall normally be scheduled within thirty (30) days of such notice to address

the violations. Within fifteen (15) working days of

follow

- up activity

c. A LOA shall normally be of fered to a violator (exception

- cases of fraud), during the CRM, for

execution as a method to address compliance issues. The LOA shall be designated as “Letter of Agreement.” The document shall set forth specific terms and dates for compliance. In the e vent a
violator wishes to review the During the CRM and in

no case to exceed fifteen (15) days subsequent to the CRM



### 21document prior to execution, a date

of return shall be established.

4. Perform follow

- up activity. Staff

which initiated a LOA are

respo nsible for tracking of

deadlines established therein. EFO or Nashville

Central Office Within thirty (30) days from expiration date of compliance deadline

a. If violation is corrected no further action is required. Appropriate

documentation included in fi le.

b. If the violation is not corrected, the

violator fails to attend the scheduled CRM, the LOA offered to a violator is not returned, or the LOA has been compromised, a written report

shall be made of the relevant

follow

- up activity. As soon as poss ible but within fifteen (15) days

of follow

- up activity

5. Prepare and submit an Enforcement Action Request (EAR)

file to the Enforcement Section. Nashville Central

Office Within thirty (30) days

of follow

- up activity

6. Enforcement Section Manager and staff determine appropriate course of action considering

recommendation of EFO Office Manager or Section Manager. Nashville Central

Office Dependent upon case

load and state of EAR file completeness

- action normally initiated within thirty (30) days of re ceipt

Division Director’s Order Procedure

1. Enforcement Section presents EAR file and penalty proposal to

Division Director and obtains approval to proceed. Nashville Central

Office Within ten (10) days of determining appropriate

course of action

2. Enforcement Section prepares an

administrative order for the Director’s signature. The Division

Director issues an administrative order in approved format. Division Director may elect to request that the violator attend a CRM prior to issuance of an

administrative order in which case

the time frame will be modified. Nashville Central

Office Within five (5) days of being notified of approval by Division Director

3. Perform follow

- up activity if appropriate to verify compliance

with order. EFO or Nashv ille

Central Office Within ten (10) days of compliance deadline

a. If in compliance no further action required. Include appropriate

documentation to EAR file. Within ten (10) days of

follow

- up activity



### 22b. If not in compliance or penalties unpaid, inclu de necessary

documentation for submittal to

Office of General Counsel for

action or collection. Within ten (10) days of

follow

- up activity

DELEGATION OF COMMISSIONER’S AUTHORITY

UNDER THE WATER QUALITY CONTROL ACT

Underground Injection Control Program

1. Purpose

The Division of Water Supply (DWS) is responsible for regulating the injection of fluids and other substances to the State’s underground water resources. The Division is continually seeking the most efficient and effective means of preventing th e pollution of the State’s ground water resources to ensure protection of the environment and the citizens of the State of Tennessee.

2. Facts

The focus of the Water Quality Control Act (T.C.A. Section 69

- 3

- 101 et seq.), and the Underground Injection Contro l Regulations promulgated under it is to safeguard the public health and the quality of the environment by protecting the ground waters of the State. The rules utilized to regulate injection activity are by necessity preventative in nature. Consequently, immediate enforcement action is often necessary to alleviate any activity which might contaminate the ground water resources of the State.

In order to effectively and efficiently administer this Act and regulations, the DWS submits this proposal

to enab le the Division to address similar cases in an efficient manner. This system will allow enforcement to be more timely, which makes it more effective. In the event the violation(s) is (are) not

abated or new violations are encountered and after consultati on with OGC, DWS shall pursue appropriate additional enforcement action, either administrative or judicial.

3. Proposal

The DWS proposes to issue a “Director’s Order” in many instances for certain violations of the Act.

Such violations include: the constru ction or operation of Class II and Class V injection wells, including the disposal of fluids into sinkholes without a permit, authorization or disposal outside the conditions of the permit, the failure to maintain or submit required records or reports, and the discharge of a pollutant affecting ground waters of the State. The failure to install or maintain erosion/sediment controls around a sinkhole are also addressed in this proposal. Noncompliance of Class I , Class III, and Class IV wells will

be addre ssed through the enforcement procedures resulting in a Commissioner’s Order. In addition, the number of violations cited in a Director’s Order shall be tallied or computed identically to how they are numbered or tallied in a Commissioner’s Order, even tho ugh several violations (e.g. construction of a class II injection well without authorization and discharge of oil or other pollutant to a location affecting ground water) are categorized under one category, each shall constitute a separate violation. Each and every report required and due shall constitute a separate violation. In addition, each and every day a



### 23violation occurs shall constitute a separate violation. Director’s Orders issued under this proposed delegation would be signed by the Division Di rector and mailed, by certified mail, to the offending

violator.

The procedure to be followed for a Director’s Order:

1. The Division will discover the violation and/or inspect the activity(s) being operated and/or review any records as may be available and necessary for verification;

2. The Division will prepare a Notice of Violation notifying the offender of the violation(s) and set a schedule for compliance if applicable;

3. Upon obtaining documentation of the violation (through an inspection or by c onfirmation of the records in the central office or both), DWS will prepare the Director’s Order and mail the document by certified mail;

4. Prior to issuance, the Director’s Order and supporting documentation will be reviewed by the

Division Enforcement Chief and the Director; and

5. The Director’s Order may, dependent upon the circumstances, contain corrective actions which must be accomplished in order for compliance to be achieved.

Civil penalties will be assessed on all such delegated Orders in acco rdance with the following schedule:

Activity/Violation Penalty

Construction or operation of a Class II injection $1,500.00 well without permit or authorization

Failure to operate a Class II injection well in $500.00 accordance with permit co nditions

Failure to maintain or submit required records $250.00

or reports

Failure to properly plug and abandon Class II $1,500.00 injection well

Discharge of oil brine, drilling fluid, or $3,000.00 other pollutant to a location affe cting ground waters of the State without a permit or authorization by rule

Construction, conversion or operation of a Class V $1,500.00 injection well without permit or authorization

Failure to operate Class V injection well in $500.00

accordance w ith permit conditions

Failure to file notification of operation of an $250.00 existing Class V injection well, or failure to



### 24maintain or submit required records or reports

Discharge of sewage to a well, sinkhole, $1,500.00 sinking stream, or subsurface fluid distribution system other than a subsurface sewage Disposal system permitted under the provision of Rule

1200

- 1

- 6

- .05

Discharge of industrial or commercial process $1,500.00 waste to a Subsurface Sewage Disposal System permitted unde r the provisions of Rule: 1200

- 1

- 6

- .05.

Disposal of commercial, industrial,

- $1,500.00 (Commercial or Industrial)

or household waste into a sinkhole $500.00 (Household)

Failure to install or maintain erosion/sediment $250.00

controls a round a sinkhole

Failure to install or maintain treatment devices $500.00 required to prevent discharge of pollutants to a

Class V well

Failure to perform required monitoring of $250.00 injectate or ground water

Failure to properl y plug and abandon Class V $1,000.00 injection well

It is the intent of the Division that this enforcement mechanism be swift, cover a short period of time and a small number of violations, and consequently will result in relatively small civil penaltie s. In the event the violation is not abated, then the failure to comply with the Director’s Order, as well as any continuing or new violations since its issuance may be the subject of additional enforcement action, either administrative or judicial.

Cont ingent Penalties Based on Corrective Actions

Further, the Division of Water Supply is given authority to issue Director's Orders that include "corrective action." The scope of corrective action items addressed in a Director's Order shall include all viol ations which are addressed by this delegation. The DWS is given authority to assess contingent penalties for violations of the Act as set forth for the preceding violations not corrected as specified in the Director's Order. Failure to comply with the sp ecified corrective actions shall result in contingent penalties which are twice (2x) the penalties assessed in the aforementioned paragraphs. The contingent penalties shall be due if there is not timely compliance with the specified corrective action.



### 25Co mmissioner’s Order Procedure

1. Enforcement Section notifies

Division Director of violator’s

failure to correct violation and prepares Notice of Compliance Review Meeting if applicable.

The Notice shall indicate the history of violation and efforts to seek compliance. Further, the Notice shall establish the date, time and location of the meeting and request the violator’s

attendance. The Notice shall typically schedule CRM within thirty (30) days of preparation of

the Notice of CRM. The Notice

shall be designated as “Notice to

Meet.” Nashville Central Office Within ten (10) days of determining appropriate

course of action

2 Mail Notice of Compliance Review Meeting (CRM) to violator by certified mail delivery if applicable. Nashville Central Office Wi thin two (2) days of approval and signature of

Division

Director

3. Conduct CRM if applicable. Nashville Central Office and

EFO As scheduled in

the Notice to

Meet

a. Allows a violator to present evidence and explain why the

violation was not corrected w ithin stated compliance schedules or as a result of previous actions.

b. Evaluates violators’ explanation

for occurrence of violations and allows Division to decide upon a

course of action.

4. Issue correspondence subsequent to CRM conveying Division ’s decision regarding enforcement

action Nashville Central Office Within fourteen (14) days of the

CRM

a. If violator demonstrates good cause for violation, Division may decide to postpone enforcement

action.

b. If violator does not demonstrate good c ause for violation, enforcement shall proceed normally as a Commissioner’s Order. However, a Director’s



### 26Order may be issued if

circumstances are favorable for

issuance of such document.

5. Enforcement section prepares a request for legal action to be

s ubmitted to the Office of General Counsel with supporting

documentation. Enforcement section also prepares a draft

Commissioner’s Order to be included in the request for legal

action. Nashville Central Office Within thirty (30) days of the letter advising

violator of

Division’s intent

to pursue
enforcement

action

a. Recommends priority for handling of case

b. Includes civil penalty calculation

and matrix

6. Upon notification of acceptance of the request for legal action, the

Division shall submit th e draft

Commissioner’s Order to the assigned attorney via E

- mail or by micro

- disk. Nashville Central Office As soon as possible but not

to exceed three (3) days from date of request

The penalties set by the Delegation of Commissioners Authority are only a limit on the administrative procedure of a Director’s Order and are calculated as penalty amount times day times number of wells in

non

- compliance. 40 CFR 145.13 states the minimum level for the top of the range of penalty authority in

a court action. For the state UIC program this is set by T.C.A. Section 69

- 3

- 115 at Ten thousand ($10,000) dollars per day of violation, which means each well, per day, per violation.

Authority To Stop Any Unauthorized Activity Endangering Public Health Or The Environmen t

The UIC program operates under the Tennessee Water Quality Control Act (TNWQCA) which allows the commissioner the authority to take the following actions to stop any unauthorized injection activity which may endanger the public health or the environment :

69

- 3

- 117. Proceedings against violators

- Injunctions.

The commissioner may initiate proceedings in the chancery court of Davidson County or the county in which the activities occurred against any person who is alleged to have violated or is about to v iolate this part, conditions of permits issued under this part, the rules and regulations of the board or orders of the board or commissioner. In such action the commissioner may seek, and the court may grant, injunctive relief and any other relief availab le in law or equity. Specifically, the commissioner may seek injunctive relief against industrial users of publicly owned treatment works who fail to pay user or cost recovery charges or who violate pretreatment standards or toxic effluent limitations esta blished as a condition to the permit of the treatment works.

[Acts 1971, ch. 164, § 16; 1972, ch. 444, § 1; 1977, ch. 366, § 1; 1979, ch. 422, § 22; T.C.A., § 70

- 339; Acts 1984, ch. 804, § 9.]

69

- 3

- 107. Duties and authority of the commissioner.



### 27In a ddition to any power, duty, or responsibility given to the commissioner under this part, the commissioner has the power, duty, and responsibility to:

(1) Exercise general supervision and control over the quality of all state waters, administer

and enfo rce all laws relating to pollution of such waters, and administer and enforce this part, and all standards, policies, rules, and regulations promulgated thereunder;

(2) Administer oaths, issue subpoenas, and compel the attendance of witnesses and produc tion of necessary data for all purposes of this part;

(3) Bring suit in the name of the department for any violation of the provisions of this part, seeking any remedy therein provided and any other statutory or common law remedy

available for the cont rol, prevention, and abatement of pollution;

(4) Proceed against, as provided in this part, any owner or operator of any boat, located or operated on the waters of the state, that discharges or causes to be discharged any sewage, other wastes, or other substances into such waters in violation of this part or any rules or regulations promulgated under this part;

(5) Make inspections and investigations, carry on research, or take such other action as may be necessary to carry out the provisions of this part;

(6) Enter or authorize the commissioner's agents to enter at all reasonable times upon any property other than dwelling places for the purpose of conducting investigations and studies or enforcing any of the provisions of this part;

(7) Advise , consult, cooperate, contract, and make other binding agreements with the various agencies of the federal government and with state and local administrative and governmental agencies, colleges and universities, or with any other persons:

(A) In further ance of this part, the commissioner may require any state or local agency to investigate and report on any matters involved in water quality control; provided, that the burden, including costs, of such reports shall bear a reasonable relationship to the ne ed for the reports and the benefits to be obtained from the reports; and

(B) In addition, the department has the authority, subject to approval by the governor, to enter into agreements with other states and the United States relative to prevention and control of pollution in interstate waters. This authority is not be deemed to extend to the modification of any agreement with the state concluded by direct legislative act, but unless otherwise expressly provided, the department shall be the agency for th e administration and enforcement of any such legislative

agreement;

(8) Apply for, accept, administer, and utilize loans and grants from the federal government, state government, and from any other sources, public or private, for prevention, abatement, and control of pollution of the waters of the state. The department is the water quality control agency for the state for the purpose of any federal water pollution control

act;



### 28(9) Prepare, publish, and issue such printed pamphlets and bulletins as the department deems necessary for the dissemination of information to the public concerning its activities;

(10) Require the submission of such plans, specifications, technical reports, and other information as deemed necessary to carry out the provision s of this part or to carry out the rules and regulations adopted pursuant to this part;

(11) Be the administrative agent for the board and panel to carry out the provisions of this

part;

(12) Make an annual report to the governor and the general as sembly on the status of water quality, including a description of the plan, regulations in effect, and other pertinent information, together with any recommendations the commissioner may care to make;

(13) Delegate to the director of the division with r esponsibility for water quality control any of the powers, duties, and responsibilities of the commissioner under this part except the commissioner's powers, duties and responsibility as chair of the board;

(14) Issue permits and variances pursuant to § 69

- 3

- 108;

(15) Inspect waters of the state where good cause is shown that the public health is threatened by pollutants therein and, upon verification by the commissioner, post or cause to be posted such signs as required to give notice to the public o f the potential or actual dangers of specific uses of such waters or restrictions of uses of such waters;

(16) Assess civil penalties in accordance with § 69

- 3

- 115;

(17) Apply the provisions of this part against any person who discharges into a publi cly owned treatment works who is causing a violation of this part, or who is in violation of applicable pre

- treatment standards;

(18) Impose such restrictions, including an immediate cessation of connections and line extensions, upon the expansion of a ny sewerage or wastewater system as are necessary to mitigate or prevent violations of this part;

(19) Prepare a written report on stream bank erosion in Tennessee to be delivered to each member of the general assembly by January 15, 2000. Such report s hall contain the following:

(A) An examination of the causes of stream bank erosion;

(B) The effectiveness of existing and new methods of bank protection;

(C) An assessment of stream bank erosion in Tennessee; and

(D) Any other matter the comm issioner deems relevant to stream bank erosion which may be of concern to the general assembly;

(20) Conduct, or cause to be conducted, demonstration projects, to the extent of available funds, of methods of bank stabilization and debris removal in str eams in western Middle Tennessee to be done as soon as is practicable and a report shall be made to the general



### 29assembly after the performance of the chosen techniques has been observed through at least a full year;

(21) Conduct, or cause to be conducte d, a study or project comparing different techniques for

stream bank stabilization and debris removal in streams in western Middle Tennessee to be done as soon as possible, either in conjunction with the project mentioned in the previous subdivision, or se parately;

(22) Develop a program of public education regarding simple, practical and affordable techniques for cleaning debris from streams and for stabilizing stream banks including field examples of activities permissible without permits and activitie s that may be accomplished if permits are obtained; and

(23) Produce a video by not later than January 1, 1999, that shows the above examples, explains the requirements of the law and rules for these activities including the process of applying for a p ermit, and tells who to call for further assistance, which shall be distributed at no cost to public libraries and agricultural extension services.

[Acts 1971, ch. 164, § 6; 1977, ch. 366, § 1; 1979, ch. 422, § 19; 1982, ch. 917, § 1;

The TWQCA also a llows for the Commissioner the authority to:

69

- 3

- 109. Complaints

- Orders for corrective action.

(a) (1) Whenever the commissioner has reason to believe that a violation of any provision of this part or regulation promulgated thereunder or orders is sued pursuant thereto has occurred, is occurring, or is about to occur, the commissioner may cause a written complaint to be served upon the alleged violator or violators.

(2) The complaint shall specify the provision or provisions of this part or regu lation or order alleged to be violated or about to be violated, the facts alleged to constitute a violation thereof, may order that necessary corrective action be taken within a reasonable time to be prescribed in such order, and shall inform the violator s of the opportunity for a hearing before the board.

(3) Any such order shall become final and not subject to review unless the person or persons named therein request by written petition a hearing before the board, as provided in §

69

- 3

- 110, no later than thirty (30) days after the date such order is served; provided, that the board may review such final order on the same grounds upon which a court of the state may review default judgments.

(b) (1) Whenever the commissioner, with the concurrence o f the governor, finds that an emergency exists imperatively requiring immediate action to protect the public health, safety, or welfare, or the health of animals, fish, or aquatic life, or a public water supply, or recreational, commercial, industrial, a gricultural, or other reasonable uses, the commissioner may, without prior notice, issue an order reciting the existence of such an emergency and requiring that such action be taken as the commissioner deems necessary to meet the emergency.



### 30(2) If the violator fails to respond or is unable to respond to the commissioner's order, the commissioner may take such emergency action as the commissioner deems necessary, or contract with a qualified person or persons to carry out the emergency measures. The

comm issioner may assess the person or persons responsible for the emergency condition for actual costs incurred by the commissioner in meeting the emergency.

(3) Furthermore, the commissioner is empowered to establish programs and procedures to qualify the state for emergency funding from the federal government.

(c) Except as otherwise expressly provided, any notice, complaint, order, or other instrument issued by or under authority of this part may be served on any person affected thereby personally, by the commissioner or any person designated by the commissioner, or such service may be made in accordance with Tennessee statutes authorizing service of process in civil actions. Proof of service shall be filed in the office of the commissioner.

[Acts 1971, ch. 164, § 8; 1971, ch. 386, § 3; 1977, ch. 366, § 1; T.C.A., § 70

- 331.]

The UIC program also has the following procedures for receipt, evaluation, retention and investigation for possible enforcement of all notices and reports required of permitte es and other regulated persons (and for investigation for possible enforcement of failure to submit these notices and reports):

All notices and reports are to be submitted to the State as stated in the permit authorization letter. The notices and reports include all sampling parameters required as well as any other requirements for proof of maintenance, financial viability or other information deemed necessary by the Department. All notices and reports are to be submitted to the State in a format that ha s been approved by the State. Once these notices and reports are submitted they are to be logged

- in and reviewed by State personnel for completeness, accuracy and submission in a timely manner.

In addition to independent information supplied by regulate d persons, the state UIC program has inspection and surveillance procedures to determine if a site or facility is in compliance or noncompliance with all applicable program requirements. The State also maintains a program which is capable of making compreh ensive surveys of all facilities and activities subject to the State Director's authority in order to identify persons subject to regulation who have failed to comply with permit application or other program requirements. Any compilation, index, or invento ry of such facilities and activities shall be made available to the Regional Administrator upon request. The State is currently focusing on Class V injection wells in wellhead protection areas. The Division has people in the field during the wellhead

sur vey recording all potential contaminant sources, including all facilities in the wellhead area that are on septic systems. The State contracted with Tennessee Valley Authority (TVA) to do a class V inventory in

the Wellhead areas across the state the resu lts of this study are in Section 9 TVA UIC Report. The State of Tennessee has the regulatory authority to identify and take action against persons subject to regulation who have failed to comply with permit application or other program requirements. The state’s regulatory authority for permitting UIC activities is set out in the following provisions of the UIC Rules.

1200

— 4

— 6

— .07 Permit Required.



### 31(1) Except for exclusions specified in paragraph 1200

— 4

— 6

— .03(3), all injection wells and

activities must be authorized by permit or by rule.

(2) For new injection wells, a permit must be obtained before construction commences, unless the injection is authorized by rule as described in paragraph 1200

— 4

— 6

— .14(2).

(3) The owner or operator of an existing Class I I or III injection well shall complete, sign and submit to the Department an application for permit in conformance with this Chapter within six (6) months from the date of approval of these Rules. The owner or operator must demonstrate to the

satisfaction of the Department that the existing well complies with all applicable Rules of this Chapter.

(4) Continued injection into existing Class V Wells is authorized by virtue of this rule provided compliance with rule 1200

- 4

- 6

- .05(1) and any other applicable r ules of this Chapter are maintained. Owners/operators of existing Class V wells that fail to maintain compliance shall immediately cease operation and submit an application. Owners/operators of all existing Class V wells shall submit an application within the appropriate time frame for each grand division as specified in this rule. Within six (6) months of the effective date of this rule, owner/operators of injection wells within the Western Grand Division must submit an application. Within twelve (12) mo nths of the effective date of this rule, owner/operators of injection wells within the Central Grand Division must submit an application. Within eighteen (18) months of the effective date of this rule, owner/operators of injection wells within the Easter n Grand Division must submit an application. If an application for an existing Class V well is not submitted within the specified timeframe, the owner/operator shall be subject to ceasing discharge and applying for a Class V permit and an application fee for a new well as specified in 1200

- 4

- 6

- .18(1).

(5) The Department may require the owner or operator of a Class V injection well authorized by rule to apply for and obtain an injection well permit. Cases for which a permit may be required

include:

(a) Th e injection well is not in compliance with the standards required by this Chapter.

(b) Compliance with standards in addition to those listed in this Chapter is required to protect USDWs from pollution.

(6) Reserved.

(7) Class V wells utilizing innovativ e or experimental technologies, may not be authorized by rule, but only by a permit. The permit shall require a surety bond.

(8) Emergency permits.

(a) Coverage. Notwithstanding any other provision of this Rule the Commissioner may temporarily permit a specific underground injection if:

1. An imminent and substantial endangerment to the health of persons will result unless a temporary emergency permit is granted, provided the injection will not result in the movement of fluids into underground sources of drinking water; or

2. (i) A substantial and irretrievable loss of oil or gas resources will occur unless a temporary emergency permit is granted to a Class II well; and



### 32(ii) Timely application for a permit could not be practically made; and

(iii) The injection will not result in the movement of fluids into underground sources of drinking water; or

3. A substantial delay in production of oil or gas resources will occur unless a temporary emergency permit is granted to a new Class II well and the tempo rary authorization will not result in the movement of fluids into an underground source of drinking water.

(b) Requirements for issuance.

1. Any temporary permit under part (a)1 of this paragraph shall be for no longer term than required to prevent the h azard.

2. Any temporary permit under part (a)2 of this paragraph shall be for no longer than 90 days, except that if a permit application has been submitted prior to the expiration of the 90

- day period, the Commissioner may extend the temporary permit unt il final action on the application.

3. Any temporary permit under part (a)3 of this paragraph shall be issued only after a complete permit application has been submitted and shall be effective until final action on the application.

4. Notice of any tempo rary permit under this paragraph shall be published in accordance with paragraph (7) of Rule 1200

- 04

- 06

- .08 within ten days of the issuance of the permit.

5. The temporary permit under this paragraph may be either verbal, or written. If

verbal authorizat ion, it must be followed within 5 calendar days by a written temporary emergency permit.

6. The Commissioner shall condition the permit in any manner he or she determines is necessary to ensure that the injection will not result in the movement of fluids into an underground source of drinking water.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985; effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed February 17 , 2010; effective date May 18, 2010

The State periodical inspections of the facilities and inspections shall be conducted in a manner designed to determine compliance or noncompliance with issued permit conditions and other program requirements

as follows from the UIC rules 1200

- 4

- 6

- .08;

(4) Schedules of compliance

(a) The permit may when appropriate specify a schedule of compliance.



### 33(b) Time for compliance. Any schedule of compliance shall require compliance as soon as possible but in no case later th an three (3) years after the effective date of the permit.

(c) Interim dates. Except as provided in this section, if a permit establishes a schedule of compliance which exceeds one (1) year from the date of permit issuance, the schedule

shall set forth in terim requirements and the dates for their achievements.

1. The time between interim dates shall not exceed one (1) year.

2. If the time necessary for completion of any interim requirement (such as the construction of a control facility) is more than one (1) year and is not readily divisible into stages for completion, the permit shall specify interim dates for the submission of reports of progress toward completion of the interim requirements and indicate a projected completion date.

(d) Reporting. Prog ress reports shall be submitted no later than thirty (30) days following each interim date and the final date of compliance.

The Commissioner has authority under 69

- 3

- 107 of the Tennessee Water Quality Act to:

(1) Exercise general supervision and contro l over the quality of all state waters, administer and enforce all laws relating to pollution of such waters, and administer and enforce this part, and all standards, policies, rules, and regulations promulgated there under;

(2) Administer oaths, issue subpoenas, and compel the attendance of witnesses and production of necessary data for all purposes of this part;

(3) Bring suit in the name of the department for any violation of the provisions of this part, seeking any remedy therein provided and any other statutory or common law remedy available for the control, prevention, and abatement of pollution;

(4) Proceed against, as provided in this part, any owner or operator of any boat, located or operated on the waters of the state, that discharges or causes to be discharged any sewage, other wastes, or other substances into such waters in violation of this part or any rules or regulations promulgated under this part;

(5) Make inspections and investigations, carry on research, or take such other acti on as may be necessary to carry out the provisions of this part;

(6) Enter or authorize the commissioner's agents to enter at all reasonable times upon any property other than dwelling places for the purpose of conducting investigations and

studies or e nforcing any of the provisions of this part;

(7) Advise, consult, cooperate, contract, and make other binding agreements with the various agencies of the federal government and with state and local administrative and governmental agencies, colleges and universities, or with any other persons:

(A) In furtherance of this part, the commissioner may require any state or local agency to investigate and report on any matters involved in water quality control; provided, that the burden, including costs, of s uch reports shall bear a reasonable



### 34relationship to the need for the reports and the benefits to be obtained from the reports; and

(B) In addition, the department has the authority, subject to approval by the governor, to enter into agreements with othe r states and the United States relative to prevention and control of pollution in interstate waters. This authority is not be deemed to extend to the modification of any agreement with the state concluded by direct legislative act, but unless otherwise exp ressly provided, the department shall be the agency for the administration and enforcement of any such legislative

agreement;

(8) Apply for, accept, administer, and utilize loans and grants from the federal government, state government, and from any oth er sources, public or private, for prevention, abatement, and control of pollution of the waters of the state. The department is the water quality control agency for the state for the purpose of any federal water pollution control

act;

(9) Prepare, publ ish, and issue such printed pamphlets and bulletins as the department deems necessary for the dissemination of information to the public concerning its activities;

(10) Require the submission of such plans, specifications, technical reports, and other

i nformation as deemed necessary to carry out the provisions of this part or to carry out the rules and regulations adopted pursuant to this part;

(11) Be the administrative agent for the board and panel to carry out the provisions of this

part;

(12) M ake an annual report to the governor and the general assembly on the status of water quality, including a description of the plan, regulations in effect, and other pertinent information, together with any recommendations the commissioner may care to make;

(13) Delegate to the director of the division with responsibility for water quality control any of the powers, duties, and responsibilities of the commissioner under this part except the commissioner's powers, duties and responsibility as chair of the b oard;

(14) Issue permits and variances pursuant to § 69

- 3

- 108;

(15) Inspect waters of the state where good cause is shown that the public health is threatened by pollutants therein and, upon verification by the commissioner, post or cause to be

poste d such signs as required to give notice to the public of the potential or actual dangers of specific uses of such waters or restrictions of uses of such waters;

(16) Assess civil penalties in accordance with § 69

- 3

- 115;

(17) Apply the provisions of t his part against any person who discharges into a publicly owned treatment works who is causing a violation of this part, or who is in violation of applicable pre

- treatment standards;

(18) Impose such restrictions, including an immediate cessation of co nnections and line extensions, upon the expansion of any sewerage or wastewater system as are necessary to mitigate or prevent violations of this part;



### 35(19) Prepare a written report on stream bank erosion in Tennessee to be delivered to each

member of t he general assembly by January 15, 2000. Such report shall contain the following:

(A) An examination of the causes of stream bank erosion;

(B) The effectiveness of existing and new methods of bank protection;

(C) An assessment of stream bank erosi on in Tennessee; and

(D) Any other matter the commissioner deems relevant to stream bank erosion which may be of concern to the general assembly;

(20) Conduct, or cause to be conducted, demonstration projects, to the extent of available funds, of met hods of bank stabilization and debris removal in streams in western Middle Tennessee to be done as soon as is practicable and a report shall be made to the general assembly after the performance of the chosen techniques has been observed through at

least a full year;

(21) Conduct, or cause to be conducted, a study or project comparing different techniques for

stream bank stabilization and debris removal in streams in western Middle Tennessee to be done as soon as possible, either in conjunction with the project mentioned in the previous subdivision, or separately;

(22) Develop a program of public education regarding simple, practical and affordable techniques for cleaning debris from streams and for stabilizing stream banks including field examples of activities permissible without permits and activities that may be accomplished if permits are obtained; and

(23) Produce a video by not later than January 1, 1999, that shows the above examples, explains the requirements of the law and rules for these a ctivities including the process of applying for a permit, and tells who to call for further assistance, which shall be distributed at no cost to public libraries and agricultural extension services.

Public Reporting of Violations

Public effort in repor ting violations shall be encouraged and the Commissioner shall make available information on reporting procedures by the following policy, which is also found in Section 4 of the final

MOA :

In order to provide the citizens of the State of Tennessee and t he regulated community with a fair and reasonable process for the protection of the drinking water resources of the State of Tennessee the UIC program provides Special procedures on Underground Injection Control Public Response to Complaints by a MOA with EPA and the State that states:



### 36“Upon receipt of a complaint call the UIC staff will collect information as to the location of the activity, the nature of the problem, and the person(s) involved in the activity. The State will as resources allow investig ate in a timely manner and provide written responses to all citizen complaints.”

This policy is effective upon the signing of the Memorandum of Agreement with EPA. All UIC citizen complaints handled by the Division of Water Supply shall conform to this p rovision.

Compliance Evaluation

The State UIC program has the authority in compliance evaluation to enter any site or premises subject to regulation or in which records relevant to program operation are kept in order to copy any records, inspect, monito r or otherwise investigate compliance with permit conditions and other program requirements. This is done under the following authority:

The Tennessee Water Quality Control Act describes the duties of the Commissioner and their representative (UIC staff) t he authority to the following without a warrant in TCA 69

- 3

- 107 as follows:

(5) Make inspections and investigations, carry on research, or take such other action as may be necessary to carry out the provisions of this part;

(6) Enter or authorize the commissioner's agents to enter at all reasonable times upon any property other than dwelling places for the purpose of conducting investigations and studies or enforcing any of the provisions of this part;

(7) Advise, consult, cooperate, contract, and make other binding agreements with the various agencies of the federal government and with state and local administrative and governmental agencies, colleges and universities, or with any other persons:

(A) In furtherance of this part, the commissioner may require any state or local agency to investigate and report on any matters involved in water quality control; provided, that the burden, including costs, of such reports shall bear a reasonable relationship to the need for the reports and the

benefits to b e obtained from the reports; and

(B) In addition, the department has the authority, subject to approval by the governor, to enter into agreements with other states and the United States relative to prevention and control of pollution in interstate wate rs. This authority is not be deemed to extend to the modification of any agreement with the state concluded by direct legislative act, but unless otherwise expressly provided, the department shall be the agency for the administration and enforcement of any such legislative agreement;

The same authority is specifically written into the UIC regulations promulgated under the Water Quality Control Act. This authority allows State personnel engaged in compliance evaluation the authority to enter any site or p remises subject to regulation or in which records relevant to program operation are kept



### 37in order to copy any records, inspect, monitor or otherwise investigate compliance with permit conditions and other program requirements.

The State UIC program will c onduct all inspections, and sampling events as well as other information gathering in a manner [e.g., using proper "chain of custody" procedures] that will produce evidence admissible in an enforcement proceeding or in court. The State UIC program will ver ify the accuracy of information submitted by permittees and other regulated persons in reporting forms and other forms supplying monitoring data; and verify the adequacy of sampling, monitoring, and other methods used by permittees and other regulated pers ons. The State will issue permits based on the following rules:

1200

— 4

— 6

— .08 Authorization By Permit For Injection Wells Not Authorized By Rule.

(1) Permit Application

— All permit applicants for injection wells not authorized by rule shall provide the following information to the Department, using a form provided by the Department:

(a) The activities conducted by the applicant which require it to obtain a UIC permit.

(b) Name, mailing address, and location of the facility for which the application is submitted.

(c) Up to four North American Industry Classification System (NAICS) codes which best reflect the principal products or services provided by the facility.

(d) The operator’s name, address, telephone number, ownership status, and status as Fed eral, State, private, public, or other entity.

(e) Whether the facility is located on Indian lands.

(f) A listing of all permits or construction approvals received or applied for under any of the following programs:

1. Hazardous Waste Management program under federal or state law.

2. UIC program under federal or state law.

3. NPDES program under federal or state law.

4. Prevention of Significant Deterioration (PSD) program under federal or state law.

5. Nonattainment program under federal or state la w.

6. National Emission Standards for Hazardous Pollutants (NESHAPS) preconstruction approval under federal or state law.

7. Ocean dumping permits under the Marine Protection Research and Sanctuaries

Act.



### 388. Dredge and fill permits under section 404 of the Clean Water Act, 33 U.S.C.

Section 1344.

9. Other relevant environmental permits.

(g) A topographic map (or other map if a topographic map is unavailable) extending one mile beyond the property boundaries of the source depicting the facility and each of its intake and discharge structures; each of its hazardous waste treatment, storage, or disposal facilities; each well where fluids from the facility are injected underground; and those wells, springs, surface water bodies, and drinking water wells lis ted in public records or otherwise known to the applicant within a quarter mile of the facility property boundary.

(h) A brief description of the nature of the business.

(2) A permit application will be processed when:

(a) A completed application form, all information required by these Rules and any supplemental information, as may be required, is submitted to the Department. The application shall identify (by narrative description, illustrations, maps, or other suitable means) and describe by geographic or geometric terms (including lateral and vertical limits and gradients) the area intended to be used as an injection zone.

(b) The feasibility requirements that apply to the proposed injection well have been satisfied.

(3) Duration of permits.

(a) Per mits for Class I and V wells and authorizations for Class V wells shall be effective for a fixed term not to exceed five (5) years. Permits for Class II and III wells may be issued for a period up to the operating life of the facility. Each Class II or II I well permit shall be reviewed at least once every five (5) years to determine whether it should be modified, revoked and reissued, or revoked as provided in Paragraphs 1200

— 4

— 6

— .08(7) and (8).

(b) Except as provided by the Uniform Administrative Procedu res Act, T.C.A. §§4

— 5

— 101 et seq., the term of a permit shall not be extended by modification beyond the maximum duration specified in this rule.

(c) The Department may issue any permit for a duration that is less than the full allowable

term under this r ule.

(4) Schedules of compliance

(a) The permit may when appropriate specify a schedule of compliance.

(b) Time for compliance. Any schedule of compliance shall require compliance as soon as possible but in no case later than three (3) years after the e ffective date of the permit.

(c) Interim dates. Except as provided in this section, if a permit establishes a schedule of compliance which exceeds one (1) year from the date of permit issuance, the schedule shall set forth interim requirements and the dat es for their achievements.

1. The time between interim dates shall not exceed one (1) year.



### 392. If the time necessary for completion of any interim requirement (such as the construction of a control facility) is more than one (1) year and is not readily

d ivisible into stages for completion, the permit shall specify interim dates for the submission of reports of progress toward completion of the interim requirements and indicate a projected completion date.

(d) Reporting. Progress reports shall be submitte d no later than thirty (30) days following each interim date and the final date of compliance.

(5) Effect of a permit

(a) A permit may be revoked, suspended or modified during its term for cause, under T.C.A. §69

- 3

- 108(f).

(b) The issuance of a permit d oes not convey any property rights of any sort, or any exclusive privilege.

(c) The issuance of a permit does not authorize any injury to persons or property or invasion of other property rights, or any infringement of other State, Federal or local laws o r regulations. In particular, the issuance of a permit does not relieve a Class I, Class IV or Class V well permittee from any applicable requirement he may be subject to under the Tennessee Hazardous Waste Management Act (T.C.A. 6

— 46

— 101 et. seq.)

(6) Transfer of permits

— A permit may be transferred by the permittee to a new owner or operator if the permit has been modified or revoked and reissued or a minor modification made.

(7) Public notice of permit actions and public comment period.

(a) Scope. Th e Department shall give public notice that the following actions have

occurred:

1. A draft permit has been prepared. A draft permit shall contain:

(i) All permit conditions ;

(ii) All compliance schedules for corrective action; and

(iii) All mon itoring requirements.

(b) Upon request, the Department shall send to the requestor copies of the foregoing

documents.

(c) Timing

1. Public notice of the preparation of a draft permit shall allow at least thirty (30) days for public comment.

2. Public n otice of a public hearing shall be given at least thirty (30) days before the hearing. (Public notice of the hearing may be given at the same time as public notice of the draft permit and the two notices may be combined.)



### 40(d) Methods. Public notices of p ermit actions shall be given by the following methods:

1. By mailing a copy of a notice to the following persons (any person otherwise entitled to receive notice under this paragraph may waive his or her rights to receive notice for any classes and catego ries of permits):

(i) the applicant;

(ii) any other agency which the Department knows has issued or is required to issue a RCRA, PSD, NPDES or 404 permit for the same facility or activity;

(iii) federal, state and local agencies with jurisdiction ov er fish, shellfish, and wildlife resources; the Advisory Council on Historic Preservation, state historic preservation officers, and other appropriate government authorities, including any affected States;

(iv) persons on a mailing list developed by:

(I) notifying the public of the opportunity to be put on the mailing list through periodic publication in the public press and in other publications such as Regional and State funded newsletters, environmental bulletins, or State law journals;

and

(II) including those who request in writing to be on the list. (The Department may update the mailing list from time to time by requesting written) indication of continued interest from those listed. The Department may delete from the list the name of any pers on who fails to respond to such a request.

2. By publication of a notice in a daily or weekly newspaper within the area to be affected by the facility or activity;

3. Any other method reasonably calculated to give actual notice of the action in question to the persons potentially affected by it, including press releases or any other forum or medium to elicit public participation.

(e) Contents. All public notices of permit actions shall contain the following minimum

information:

1. Name and address of t he Department office processing the permit action for which notice is being given;

2. Name and address of the permittee or permit applicant and, if different, of the facility or activity regulated by the permit;



### 413. A brief description of the business con ducted at the facility or activity described in the permit application;

4. A description of the type and quantity of wastes, fluids, or pollutants which are proposed to be injected;

5. A brief summary of the basis for the permit conditions;

6. Reasons w hy any requested variances do or do not appear justified;

7. Name, address, and telephone number of a person from whom interested persons may obtain further information including copies of the draft permit, fact sheet when prepared, and the application;

8. A brief description of the applicable comment procedures including, the beginning and ending dates of the comment period, procedures for requesting a hearing, and any other procedures by which the public may participate in the final decision;

9. Refere nce to the date of previous public notices relating to the permit;

10. Date, time, and place of the hearing;

11. A brief description of the nature and purpose of the hearing including the applicable rules and procedures; and

12. Any additional informati on considered necessary or proper.

(f) Public comments and requests for public hearings. During the public comment period, any interested person may submit written comments on the permit application or draft permit and may request a public hearing. A requ est for a public hearing shall be in writing and shall state the nature of the issues proposed to be raised.

(g) Public hearings. The Department shall hold a public hearing whenever, as evidenced by requests, there is public interest in a draft permit. A public hearing may also be held at the Department’s discretion to clarify issues in the permit.

(h) Consideration of comments and response.

1. All comments submitted during the public comment period and all hearing testimony shall be considered in maki ng the final decision.

2. If a decision is reached to issue a final permit, the Department shall respond to comments when the permit is issued. This response shall:

(i) Be made available to the public;

(ii) Specify which provisions, if any, of the draft permit have been changed in the final permit, and the reasons for the change; and



### 42(iii) Briefly describe and respond to all significant comments on the draft permit raised during the public comment period, or during any hearing.

(i) Notice of final per mit decision.

1. After the close of the comment period, the Commissioner shall notify the applicant and each person who has submitted written comments, or requested notice, of the final permit decision. This notice shall contain reference to the procedur es for appealing a permit decision.

2. A final permit decision shall become effective thirty (30) days after service of notice on the applicant of the final permit decision, unless a later date is specified in the notice, or a petition is filed pursuant t o paragraph (j) or (k) below.

(j) Within thirty (30) days of receipt of notice of a final permit decision, or prior to any later date specified in the notice, any person other than the applicant who has filed comments on that permit, or its drafts, may pe tition the Board for a hearing on the permit or any condition of the permit. The petition shall include a statement of all of the permit conditions which are challenged and the reasons supporting the challenge. This hearing shall be legislative in nature and shall not be a contested case within the meaning of T.C.A. §4

— 5

— 102, the Uniform Administrative Procedures Act. The Board shall make a recommendation on issuance or denial of the permit or permit conditions to the

Commissioner that shall become final and effective in thirty (30) days if the

Commissioner takes no action.

(k) Within thirty(30) days of receipt of notice of a final permit decision, the permit applicant may file a petition with the Board for a contested case hearing pursuant to T.C.A. §§69

— 3

— 105 and 4

— 5

— 301 et seq.

(8) Modification or revocation and reissuance of permits.

— When the Department determines that one or more causes exist for modification or revocation and reissuance of a permit, the Department may modify or revoke and reissue th e permit accordingly, subject to the limitations of subparagraph (c) of this paragraph, and may request an updated application if necessary. When a permit is modified, only the conditions subject to modification are reopened. If a permit is

revoked and rei ssued, the entire permit is reopened and subject to revision and the permit is reissued for a new term. If a permit modification satisfies the criteria for minor modifications, the permit may be modified without a draft permit or public review. Otherwise, a draft permit must be prepared and public review procedures as set out herein must be followed.

(a) Causes for modification. The following are causes for modification and may be causes

for revocation and reissuances.

1. Alterations. There are material and substantial alterations or additions to the permitted facility or activity which occurred after permit issuance which justify the application of permit conditions that are different or absent in the existing permit.

2. Information. The Department ha s received information that was not available at the time of permit issuance (other than revised regulations, guidance, or test methods) and would have justified the application of different permit conditions



### 43at the time of issuance. This cause shall inclu de any information indicating that cumulative effects on the environment are unacceptable.

3. New regulations. The standard or regulations on which the permit was based have been changed by promulgation of amended standards or regulations or by judicial d ecision after the permit was issued. Permits other than for Class 11 or III wells may be modified during their terms for this cause, only as follows:

(i) For promulgation of amended standards or regulations, when:

(I) The permit condition requested to b e modified was based on a Departmental regulation;

(II) The Department has revised withdrawn, or modified that portion of the regulation on which the permit condition was based; and

(III) A permittee requests modification within thirty (30) days after

pu blic notice of the action on which the request is based.

(ii) For judicial decisions, a court of competent jurisdiction has remanded and stayed Department promulgated regulations if the remand and stay concern that portion of the regulations on which the permit condition was based and a request is filed by the permittee in accordance with these regulations within thirty (30) days of judicial remand.

4. Compliance schedules. The Department determines good cause exists for modification of a compliance sched ule, such as an act of God, strike, flood, or materials shortage or other events over which the permittee has little or no control and for which there is no reasonably available remedy.

(b) Causes for modification or revocation and reissuance. The followi ng are causes to modify or, alternatively, revoke and reissue a permit:

1. Cause exists for revocation and the Department determines that modification or revocation and reissuance is appropriate.

2. The Department has received notification of a proposed transfer of the permit.

(c) Facility siting. Suitability of the facility location will not be considered at the time of permit modification or revocation and reissuance unless new information or standards

indicate that a threat to human health or the envi ronment exists which was unknown at the time of permit issuance.

(9) Revocation of permits or denial of renewal application.

(a) The Department may revoke a permit during term, or deny a permit renewal application for the following causes:

1. Noncomplia nce by the permittee with any condition of the permit;



### 442. The permittee’s failure in the application or during the permit issuance process to disclose fully all relevant facts, or the permittee’s misrepresentation of any relevant facts at any time; or

3. A determination that the permitted activity endangers human health or the environment and can only be regulated to acceptable levels by permit

modification or revocation.

(b) Notice of intent to revoke and reissue, or terminate. If the Department tentat ively decides to revoke and reissue a permit, a notice of intent to revoke and reissue, or notice of intent

to terminate shall be issued.

(10) Minor Modifications

— Upon the consent of the permittee, the Department may modify a permit

to make the correction s or allowances for changes in the permitted activity listed in this paragraph without following the entire permitting procedure. Minor modifications may only:

(a) Correct typographical errors;

(b) Require more frequent monitoring or reporting by the per mittee;

(c) Change an interim compliance date in a schedule of compliance, provided the new date is not more than 120 days after the date specified in the existing permit and does not interfere with attainment of the final compliance date requirement;

(d ) Change quantities or types of fluids injected which are injected within the capacity of the facility as permitted and, in the judgment of the Department would not interfere with the operation of the facility or its ability to meet conditions described in the permit and would not change its classification;

(e) Change a construction requirement approved by the Department, provided that any such alteration shall comply with all requirements of this rule; or

(f) Amend a plugging and abandonment plan.

(g) A llow for a change in ownership or operational control of a facility where the Commissioner determines that no other change in the permit is necessary, provided that a written agreement containing a specific date for transfer of permit responsibility,

cover age, and liability between the current and new permittees has been submitted to the

commissioner.

(11) Confidentiality of information

— The handling of confidential information shall be governed by T.C.A. § 69

- 3

- 113.

(12) Signatories to applications and re ports.

(a) Applications. All permit applications, shall be signed as follows:

1. For a corporation: by a responsible corporate officer. For the purpose of this part, a responsible corporate officer means (1) president, secretary, treasurer, or vice

presi dent of the corporation in charge of a principal business function or any other person who performs similar policy or decision making functions for the



### 45corporation, or (II) the manager of one or more manufacturing, production or operation facilities employ ing more than 250 persons or having gross an nual sales or expenditures exceeding 25 million dollars (in second quarter 1980 dollars), if authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. Not e: The Department does not require specific assignments or delegations of authority to responsible corporate officers identified in subpart (f). The Department will presume that these responsible corporate officers have the requisite authority to sign per mit applications unless the corporation has notified the Commissioner to the contrary. Corporate procedures governing authority to sign permit applications may provide for assignment or delegation to applicable corporate positions under item (II) rather th an the specific individuals.

2. For a partnership or sole proprietorship: by a general partner or the proprietor, respectively; or

3. For a municipality, State, Federal, or other public agency: by either a principal executive officer or ranking elected o fficial.

(b) Reports. All reports required by permits, and other information requested by the Department, shall be signed by a person described in sub

- paragraph (a) above or by a duly authorized representative of that person. A person is a duly authorized representative only if:

1. The authorization is made in writing by a person described in subparagraph (a);

2. The authorization specifies either an individual or a position having responsibility for the overall operation of the regulated facility or act ivity, such as the position of plant manager, operator of a well or well field, superintendent, or position of equivalent responsibility (A duly authorized representative may thus be either a named individual or any individual occupying a named position.); and

3. The written authorization is submitted to the Department.

(c) Changes to authorization. If an authorization under subparagraph (b) is no longer accurate because a different individual or position has responsibility for the overall operation of th e facility, a new authorization satisfying the requirements of subparagraph (b) must be submitted to the Department prior to or at the time any reports, information, or applications signed by an authorized representative are submitted.

(d) Certification. Any person signing a document under this section shall make the following

certification.

“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



### 46penalties for submitting false information, including the possibility of fine and imprisonment for knowing violations.”

(13) Permit Requirements

— All UIC p ermits shall contain permit conditions established by the Commissioner as necessary to fulfill the purposes of the Tennessee Water Quality Control Act, T.C.A. §§69

— 3

— 101 et seq., a description of the injection zone being permitted, and any

necessary correc tive action as stated under rule 1200

— 4

— 6

— .09(5). The permit conditions shall be set at levels to prevent adverse effects to persons utilizing the ground water resource after consideration of at least the following factors: any guidelines set for certain p ollutants by U.S.E.P.A., the flow characteristics of ground water, risk to humans, and the risk of migration. The following conditions (a) through (n) apply to all UIC permits. All conditions applicable to all permits shall be incorporated into the permits either expressly or by reference. If incorporated by reference, a specific citation to these regulations must be given in the permit.

(a) The permittee must comply with all conditions of this permit and all applicable laws and regulations. Any permit non compliance constitutes a violation of the Tennessee Water Quality Control Act and is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application.

(b) If the permittee wi shes to continue an activity regulated by this permit after the expiration date of this permit, the permittee must apply for and obtain a new permit prior to expiration of this permit.

(c) It shall not be a defense for a permittee in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit.

(d) The permittee shall take all reasonable steps to minimize or correct any adverse impact

on the environment resulting from non

- compliance with this permit.

(e) The permittee shall at all times properly operate and maintain all facilities and systems of related appurtenances) which are installed or used by the permittee to achieve compliance

with the conditions of this permit. Proper operation and maintenance includes effective performance, adequate funding, adequate operator staffing and training, and adequate laboratory and process controls, including appropriate quality assurance procedures. This provision req uires the operation of back

- up or auxiliary facilities or similar systems only when necessary to achieve compliance with the conditions of the permit.

(f) This permit may be modified, revoked and reissued, or terminated for cause. The filing of

a request by the permittee for a permit modification, revocation and reissuance, or termination, or a notification of planned changes or anticipated noncompliance, does not stay any permit condition.

(g) This permit does not convey any property rights of any sort, or any exclusive privilege.

(h) The permittee shall furnish to the Department, within a time specified, any information which the Department may request to determine whether cause exists for modifying, revoking and reissuing, or terminating this permit, o r to determine compliance with this permit. The permittee shall also furnish to the Department, upon request, copies of records required to be kept by this permit.



### 47(i) The permittee shall allow Department personnel, or an authorized representative of the Department, upon the presentation of credentials to:

1. Enter upon the permittee’s premises where a regulated facility or activity is located or conducted, or where records must be kept under the conditions of this permit;

2. Have access to and copy, at reasonable times, any records that must be kept under the conditions of this permit;

3. Inspect at reasonable times any facility, equipment (including monitoring and control equipment), practices, or operations regulated or required under this permit; and

4. Sample or monitor at reasonable times, for the purposes or assuring permit compliance or as otherwise authorized by the Tennessee Water Quality Control Act, any substances or parameters at any location.

(j) Monitoring and records.

1. Samples and me asurements taken for the purpose of monitoring shall be representative of the monitored activity. The permittee shall monitor injection fluids, injection operations, and local ground water supplies, in accordance with the requirements for the applicable cl ass of well stated in rules 1200

— 4

— 6

— .10 through 1200

— 4

— 6

— .14.

2. The permittee shall retain records of all monitoring information, including the following:

(i) Calibration and maintenance records and all original strip chart recordings for continuous mo nitoring instrumentation, copies of all reports required by this permit, and records of all data used to complete the application for this permit, for a period of at least 3 years from the date of the sample, measurement, report, or application. This perio d may be extended by request of the Department at any time; and

(ii) The nature and composition of all injected fluids until three years after the completion of any plugging and abandonment procedures. The Department may require the owner or operator

to d eliver the records to the Department at the conclusion of the retention period.

3. Records of monitoring information shall include:

(i) The date, exact place, and time of sampling or measurements;

(ii) The individual(s) who performed the sampling or mea surements;

(iii) The date(s) analyses were performed;



### 48(iv) The individual(s) who performed the analyses;

(v) The analytical techniques or methods used; and

(vi) The results of such analyses.

(k) All applications, reports, or information submitted to t he Department shall be signed and

certified.

(l) Reporting requirements.

(i) Planned Changes. The permittee shall give notice to the Department as soon as possible of any planned physical alterations or additions to the permitted facility.

(ii) Anticip ated noncompliance. The permittee shall give advance notice to the Department of any planned changes in the permitted facility or activity which may result in noncompliance with permit requirements.

(iii) Transfers. See subsections (5), (7), (8) and (9) o f this Rule.

(iv) Monitoring reports. Monitoring results shall be reported at the intervals specified elsewhere in this permit.

(v) Compliance schedules. Reports of compliance or noncompliance with, or any progress reports on, interim and final requireme nts contained in any compliance schedule of this permit shall be submitted no later than 30 days following each schedule date.

(vi) Twenty

- four hour reporting. The permittee shall report any noncompliance which may endanger health or the environment,

incl uding:

(I) Any monitoring or other information which indicates that any contaminant may cause an endangerment to USDWs; or

(II) Any noncompliance with a permit condition or malfunction of the injection system which may cause fluid migration into or betwe en USDWs.

Any such information shall be provided orally within 24 hours from the time the permittee becomes aware of the circumstances. A written submission shall also be provided within 72 hours of the time the permittee becomes aware of the circumstance s. The written submission shall contain a description of the noncompliance and its cause, the period of noncompliance, including exact dates and times, and if the noncompliance has not been corrected, the anticipated time it is expected to



### 49continue; and st eps taken or planned to reduce, eliminate and prevent reoccurrence of the noncompliance.

(vii) Other noncompliance. The permittee shall report all instances of noncompliance not reported under paragraphs i, iv, v, and vi of this section, at the time monit oring reports are submitted. The reports shall contain the information listed in paragraph (l)(vi) of

this section.

(viii) Other information. Where the permittee becomes aware that it failed to submit any relevant acts in a permit application, or

submitte d incorrect information in a permit application or in any report to the Department, it shall promptly submit such facts or

information.

(m) Requirements prior to commencing injection. Except for all new wells authorized by an area permit under rules 1200

— 4

— 6

— .11 and 1200

— 4

— 6

— .12, a new injection well may not commence injection until construction is complete, and

1. The permittee has submitted notice of completion of construction to the Director;

and

2. (i) The Department has inspected or otherwise review ed the new injection well and finds it is in compliance with the conditions of the permit; or

(ii) The permittee has not received notice from the Director of his or her intent to inspect or otherwise review the new injection well within 13 days of the d ate of the notice in paragraph (m)(l) of this section, in which case prior inspection or review is waived and the permittee may commence injection. The Director shall include in his notice a reasonable time period in which he shall inspect the well.

(n) T he permittee shall notify the Department at such times as the permit requires before conversion or abandonment of the well, or in the case of area permits, before closure of the project.

(o) The permittee shall at all times maintain sufficient financial r esources to allow for the proper plugging and abandonment of the well. In the event of a change of ownership or other transfer of permit, the transferee shall provide proof of financial responsibility before continued operation.

1. For Class I and III wells, a surety bond or cash bond shall be filed with the Department prior to permit issuance. At the Department’s discretion, other forms of financial assurance for Class I wells may be acceptable.

2. Class II wells shall have a surety bond or cash bond for a total of $4,000 per well. If there is an existing $2,000 bond with the Tennessee Oil and Gas Board, the bond under this rule shall be $2,000. If no bond currently exists, the bond shall be for $4,000.



### 503. At the Department’s discretion, a bond may be required for Class V wells.

(p) The owner or operator of a Class I, II or III well permitted under this part shall establish prior to commencing injection or on a schedule determined by the Department, and thereafter maintain mechanical integrity for the well. When the Department determines that a Class I, II, or III well lacks mechanical integrity, the Department shall give written notice of the determination to the owner or operator. Unless the Department requires immediate cessation, the owner or operator shall cease injection into the well within 48 hours of receipt of the Department’s determination. The Department may allow plugging of the well pursuant to the requirements of this rule or require the permittee to perform

such additional construc tion, operation, monitoring, reporting and corrective action as is necessary to prevent the movement of fluid into or between USDWs caused by the lack of mechanical integrity. The owner or operator may resume injection upon written

notification from the D epartment that the owner or operator has demonstrated mechanical integrity pursuant to this rule. The Department may allow the owner or operator of a well which lacks mechanical integrity to continue or resume injection, if the owner or operator

has made a satisfactory demonstration that there is no movement of fluid into or between

USDWs.

(q) A Class I, II or III permit shall include and a Class V permit may include, conditions to insure that plugging and abandonment of the well will not allow the moveme nt of fluids into or between USDWs. Where the Department's review of an application indicates that the permittee's plan is inadequate, the Department may require the applicant to revise the plan, prescribe conditions meeting the requirements of this parag raph, or deny the permit.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985; effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed January x, 2010; effective date April x, 2010

Issuance Of Permits

The State is required to set a schedule for issuing permits within the first five years after the program has been approved. In order to meet this requirement all injection wells within the State are required to have permits under this part and Part 144 requirement, the State has this verbiage under the UIC regulations

1200

— 4

— 6

— .07 Permit Required.

(1) Except for exclusions specified in paragraph 1200

— 4

— 6

— .03(3), all injection wells and

activities must be authorized b y permit or by rule.

(2) For new injection wells, a permit must be obtained before construction commences, unless the injection is authorized by rule as described in paragraph 1200

— 4

— 6

— .14(2).

(3) The owner or operator of an existing Class II or III inje ction well shall complete, sign and submit to the Department an application for permit in conformance with this Chapter within six (6) months from the date of approval of these Rules. The owner or operator must demonstrate to the satisfaction of the Depar tment that the existing well complies with all applicable Rules of this Chapter.



### 51(4) Continued injection into existing Class V Wells is authorized by virtue of this rule provided compliance with rule 1200

- 4

- 6

- .05(1) and any other applicable rules of this Chapter are maintained. Owners/operators of existing Class V wells that fail to maintain compliance shall immediately cease operation and submit an application. Owners/operators of all existing Class V wells shall submit an application within the appropri ate time frame for each grand division as specified in this rule. Within six (6) months of the effective date of this rule, owner/operators of injection wells within the Western Grand Division must submit an application. Within twelve (12) months of the e ffective date of this rule, owner/operators of injection wells within the Central Grand Division must submit an application. Within eighteen (18) months of the effective date of this rule, owner/operators of injection wells within the Eastern Grand Divis ion must submit an application. If an application for an existing Class V well is not submitted within the specified timeframe, the owner/operator shall be subject to an application fee for a new well as specified in 1200

- 4

- 6

- .18(1).

(5) The Department m ay require the owner or operator of a Class V injection well authorized by rule to apply for and obtain an injection well permit. Cases for which a permit may be required

include:

(a) The injection well is not in compliance with the standards required by this Chapter.

(b) Compliance with standards in addition to those listed in this Chapter is required to protect USDWs from pollution.

(6) Reserved.

(7) Class V wells utilizing innovative or experimental technologies, may not be authorized by rule,

but on ly by a permit. The permit shall require a surety bond.

(8) Emergency permits.

(a) Coverage. Notwithstanding any other provision of this Rule the Commissioner may temporarily permit a specific underground injection if:

1. An imminent and substantial e ndangerment to the health of persons will result unless a temporary emergency permit is granted, provided the injection will not result in the movement of fluids into underground sources of drinking water; or

2. (i) A substantial and irretrievable loss of oil or gas resources will occur unless a temporary emergency permit is granted to a Class II well; and

(ii) Timely application for a permit could not be practically made; and

(iii) The injection will not result in the movement of fluids into underground sources of drinking water; or

3. A substantial delay in production of oil or gas resources will occur unless a temporary emergency permit is granted to a new Class II well and the temporary

authorization will not result in the movement of fluids into an underground source of drinking water.



### 52(b) Requirements for issuance.

1. Any temporary permit under part (a)1 of this paragraph shall be for no longer term than required to prevent the hazard.

2. Any temporary permit under part (a)2 of this paragraph sha ll be for no longer than 90 days, except that if a permit application has been submitted prior to the expiration of the 90

- day period, the Commissioner may extend the temporary permit until final action on the application.

3. Any temporary permit under pa rt (a)3 of this paragraph shall be issued only after a complete permit application has been submitted and shall be effective until final action on the application.

4. Notice of any temporary permit under this paragraph shall be published in

accordance wit h paragraph (7) of Rule 1200

- 04

- 06

- .08 within ten days of the issuance of the permit.

5. The temporary permit under this paragraph may be either verbal, or written. If verbal authorization, it must be followed within 5 calendar days by a written

temporar y emergency permit.

6. The Commissioner shall condition the permit in any manner he or she determines is necessary to ensure that the injection will not result in the movement of fluids into an underground source of drinking water.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985; effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed February 17, 2010; effective date May 18, 2010

Timeline for Existing UIC Invent ory Received from EPA

Once the State finalizes a date on which EPA is planning to release the UIC program to the State then the State will start accepting the applications for the Class II injection wells that are currently regulated by

EPA. At the tim e the 

### State receives the Primary enforcement authority from EPA according to the MOA, the State should get copies of information from the Federal UIC program on current injection zone approvals and current MIT’s, and then receive the bonds from the applica nts.

The UIC program in Tennessee has been active since 1992. Since that time we have been doing public outreach and have been informing different groups about the UIC program. The Division therefore is seeking primacy as an expected part of this proce ss and has been encouraged by several members of the regulated community to do so.

The priorities (according to criteria set forth in 40 CFR §146.9) for issuing permits, including the number of permits in each class of injection well which will be issued during the first five years of program operation are as follows:

Tennessee Injection Well Priorities



### 53Class Number of Permits expected to be issued over the next 5 years Comments

Class I 0 Tennessee currently has no industries that are considering the us e of Class I Injection Wells. EPA currently has no active permits or applications for Class 1 facilities. Currently there are no known industries that are considering the use of Class I Injection

Wells in Tennessee.

Class II 17 total wells will be place d in the Tennessee system within the next five years Currently EPA has 17 active Class II wells

in Tennessee. These wells will need to have Tennessee permits issued as well as 5 new

wells that have been in contact with the

State. Work on these wells will be done in conjunction with the Oil and Gas Program in the Division of Water Pollution Control, with this Division retaining the final oversight.

Class III 0 Tennessee does not have the economic mineral production zones to support Class III

wells. EPA h as no Class III wells in

Tennessee

Class IV 0 Tennessee does not have any remediation wells that fall into the Class IV category at

this time. EPA has no Class IV wells in

Tennessee

Class V EPA database shows that there are 17,044 Class V injection wel ls in Tennessee, this includes 2 motor vehicle wells and 1 cesspool Tennessee will first focus on the 2 motor vehicle wells and the cesspool. Tennessee will then follow up on the

Industrial/commercial wells in EPA’s Database followed by the 20 or so reme dial wells. Tennessee will then look at the 1,510 large capacity septic systems that are authorized by rule under EPA and place them in the Tennessee system.

All Class I, Class II, Class III, and Class V Innovat ive Technology permits that are issued b y the UIC program are required to have a time of public notice. A majority of the Class V permits that are issued under the Authorization to Discharge are not required to go to public notice unless a public meeting is requested by another regulatory autho rity

, a citizen group or other concerned party.

Mechanical Integrity Testing (MIT)

The current UIC program has not had the opportunity to witness with EPA any Class II mechanical integrity tests (MIT). The Director will require all Class I and II we lls to conduct mechanical integrity testing (MIT) at each well at least once every five years. The existing Class II wells will continue to follow five years from the date of the last MIT. The maximum amount of time between MIT’s for Class

II wells is fi ve years and the maximum amount of time between MIT’s for Class I wells is three years but



### 54the Department may order special tests to be conducted prior to the expiration of five years if conditions are believed to so warrant. The following State UIC regul ations pertain to the MIT procedures:

1200

— 4

— 6

— .09 General Standards And Methods.

(1) Applicability. The provisions of this subchapter set forth standards and requirements that apply to all classes of injection wells unless specifically excluded or contr adicted by provisions applicable to a particular class of well.

(2) Supervisory Standard. All phases of well construction, testing and operation shall be supervised by a person who is knowledgeable and experienced in practical drilling engineering and who is familiar with the special conditions and requirements of injection well construction.

(4) Mechanical Integrity Standards.

(a) An injection well has mechanical integrity if there is no significant leak in the casing, tubing or packer, and if there is no significant fluid movement into USDWs through vertical channels in and adjacent to the injection well bore hole.

(b) The following tests shall be used to evaluate the mechanical integrity of an injection

well:

1. Monitoring of annulus pressure, or pre ssure test with liquid or gas to detect any leaks in casing, tubing, or packer;

2. Appropriate geophysical logs to detect any fluid movement through vertical channels in and adjacent to the injection well borehole.

(c) The Department may allow the use of tests to evaluate mechanical integrity other than those listed in this Rule if such tests have been approved in writing by the Department and, if the Department receives authority for an underground injection control program from the U.S. E.P.A., the E.P. A. Administrator or his designee.

(d) Methods and standards generally accepted in the industry shall be applied in conducting and evaluating the tests required by this section.

1200

— 4

— 6

— .10 Class I Wells.

1200

- 4

- 6

- .10(4)(e)(6) The mechanical integrity of the injection well system shall be examined and evaluated at least once every three years in accordance with the standards contained in this rule

1200

— 4

— 6

— .11 CLASS II WELLS

(5) Testing for Class II Wells

(a) Appropriate logs and other tests shall be conducted during the drilling and construction of new Class II wells. A descriptive report interpreting the results of that portion of those logs and tests which specifically relate to (1) a USDW and the confining zone adjacent to it, and (2) the injectio n zone and adjacent formations shall be prepared by a knowledgeable log analyst and submitted to the Department. At a minimum, these logs

and tests shall include:



### 551. Deviation checks on all holes constructed by first drilling a pilot hole and then enlargi ng the pilot hole, by reaming or another method. Such checks shall be at sufficiently frequent intervals to assure that vertical avenues for fluid movement in the form of diverging holes are not created during drilling.

2. Such other logs and tests as ma y be needed after taking into account the availability of similar data in the area of the drilling site, the construction plan, and the need for additional information that may arise from time to time as the construction of the well progresses. In determi ning which logs and tests shall be required, the following shall be considered by the Department in setting logging and testing requirements:

(i) For surface casing intended to protect USDWs in areas where the lithology has not been determined:

(I) ele ctric and caliper logs before casing is installed; and

(II) a cement bond, temperature, or density log after the casing is set

and cemented.

(ii) For intermediate and long strings of casing intended to facilitate injection:

(I) electric, porosity and g amma ray logs before the casing is installed;

(II) fracture finder logs; and

(III) a cement bond, temperature, or density log after the casing is set

and cemented.

(b) At a minimum, the following information concerning the injection formation shall be determined or calculated for new Class II wells or projects:

1. fluid pressure;

2. estimated fracture pressure; and

3. physical and chemical characteristics of the injection zone.

(c) Prior to commencement of injection, wells shall be tested to assu re the initial integrity of the casing, tubing and packer, if used, including pressure testing of the casing

- tubing

annulus.

(d) At least once every five years thereafter, injection wells shall be tested to assure their continued mechanical integrity. The results of these tests shall be reported to the Department. Tests demonstrating continued mechanical integrity shall include the following:

1. measurement of annular pressures in wells injecting at positive pressures under a packer or a balanced fluid se al;



### 562. pressure testing of the casing tubing annulus for wells injecting under vacuum conditions; and

3. such other tests which are demonstrably effective and which may be approved for use by the Department.

(e) Notwithstanding the test procedures outli ned above, the Department may require more comprehensive testing of the injection wells when deemed advisable, including the use of tracer surveys, noise logs, temperature logs, or other test procedures or devices.

(f) The Department may order special tes ts to be conducted prior to the expiration of five years if conditions are believed to so warrant. Any such special test which demonstrates

continued mechanical integrity of a well shall be considered the equivalent of an initial test for test scheduling purposes, and the regular five

- year testing schedule shall be applicable thereafter.

(g) The injection well operator shall advise the Department of the date and the time of that initial, a five

- year, or special tests are to commence in order that such t ests may be

witnessed.

(h) Injection pressure at the wellhead shall not exceed a maximum which shall be calculated so as to assure that the pressure during injection does not initiate new fractures or propagate existing fractures in the confining zone adj acent to USDWs. In no case shall injection pressure cause the movement of injection or formation fluids into USDWs.

(i) Injection between the outermost casing protecting USDWs and the well bore is prohibited.

(6) Monitoring Requirements

(a) Class II wells shall be so equipped that the flow rate, injection pressure and annular pressure can be determined at any time for each well.

(b) The permittee shall monitor the nature of injected fluids at time intervals sufficiently frequently to yield data rep resentative of their characteristics;

(c) The permittee shall make observation of injection pressure, flow rate, and cumulative volume at least daily.

(d) The results of all monitoring shall be maintained by the operator and made available to the Depart ment upon request.

(e) The Department may grant administrative exception to the requirement set forth in paragraph (c), of this subsection.

(f) Hydrocarbon storage and enhanced recovery may be monitored on a field or project basis

rather than on an indi vidual well basis by manifold monitoring. Manifold monitoring may be used in cases of facilities consisting of more than one injection well, operating with a common manifold. Separate monitoring systems for each well are not required



### 57provided the owner/o perator demonstrates that manifold monitoring is comparable to individual well monitoring.

(g) Monitoring requirements shall, at a minimum, include:

1 Monitoring of the nature of injected fluids at time intervals sufficiently frequent to yield data rep resentative of their characteristics;

2. Observation of injection pressure, flow rate, and cumulative volume at least with the following frequencies:

(i) Weekly for produced fluid disposal operations;

(ii) Monthly for enhanced recovery operations;

(iii) Daily during the injection of liquid hydrocarbons and injection for withdrawal of stored hydrocarbons;

(iv) Daily during the injection phase of cyclic steam operations; and

(v) Recording of one observation of injection pressure, flow rate and

cumu lative volume at reasonable intervals no greater than 30 days.

3. Maintenance of the results of all monitoring until the next permit review.

1200

— 4

— 6

— .12 Class III Wells.

3. The mechanical integrity of the injection well system shall be examined and evaluated at least once every three years. The methods and procedures to be used shall be subject to review by the Department.

Notify Owners And Operators Of Injection Wells Of The Requirement That They Apply For And

Obtain A Permit.

The State has condu cted public hearings and provided assistance to participants with Class V authorization applications for in Jackson, Martin, Murfreesboro, Chattanooga, Knoxville, Johnson City, Cookeville, and Columbia. The State also published notice of the rule changes in major newspapers in Knoxville, Memphis, Nashville, Kingsport, Jackson, Johnson City, and Chattanooga see Public Hearing Participation Opportunities for Primacy section . The State also placed notice in the Tennessee Administrative Register as well as t he Tennessee Environmental Law Letter, newsletters for the five Tennessee branches of the American Society of Civil Engineering, the Tennessee Association Business, Tennessee Association of Utility Districts and the Tennessee Municipal League. In addition letters were mailed out to over 100 chambers of commerce across the state. All of this was done in order to notify the owners/operators of Class V and potential Class V wells of the following requirements:

1200

— 4

— 6

— .07 Permit Required.



### 58(1) Except for exclusions specified in paragraph 1200

— 4

— 6

— .03(3), all injection wells and activities must be authorized by permit or by rule.

(2) For new injection wells, a permit must be obtained before construction commences, unless the injection is authorized by rule as described in paragraph 1200

— 4

— 6

— .14(2).

(3) The owner or operator of an existing Class II or III injection well shall complete, sign and submit to the Department an application for permit in conformance with this Chapter within six (6)

months from the date of approval of these Rules. The owner or operator must demonstrate to the satisfaction of the Department that the existing well complies with all applicable Rules of this Chapter.

(4) Continued injection into existing Class V Wells is authorized by virtue of this rule provided compliance with rule 1200

- 4

- 6

- .05(1) and any other applicable rules of this Chapter are maintained. Owners/operators of existing Class V wells that fail to maintain compliance shall immediately cease operation and submit an ap plication. Owners/operators of all existing Class V wells shall submit an application within the appropriate time frame for each grand division as specified in this rule. Within six (6) months of the effective date of this rule, owner/operators of inject ion wells within the Western Grand Division must submit an application. Within twelve (12) months of the effective date of this rule, owner/operators of injection wells within the Central Grand Division must submit an application. Within eighteen (18) mo nths of the effective date of this rule, owner/operators of injection wells within the Eastern Grand Division must submit an application. If an application for an existing Class V well is not submitted within the specified timeframe, the owner/operator sh all be subject to an application fee for a new well as specified in 1200

- 4

- 6

- .18(1).

Due to the limited number of applications for Class I facilities the UIC program hand delivers copies of all Class I applications or permits to the local oil and gas boar d housed in the Division of Water Pollution Control. Also a copy of any Class I permit will be made available to local governments where the facility

is located.

Due to the limited number of Class II facilities located in the State all existing Federal A pplicants holding active Class II permits in Tennessee will receive written correspondence explaining the process of applying for the State permit. The mail out will be done in conjunction with the Tennessee Oil and Gas Association (TOGA) and the Tennesse e Division of Water Pollution Control databases. The Tennessee Administrative Procedures Act requires that all notices shall be as follows:

4

- 5

- 202. When hearings required.

(a) An agency shall precede all its rulemaking with notice and a public hearing unless:

(3) The proposed rule is published in the notice section of the secretary of state's monthly administrative register, together with a statement to the effect that the agency will adopt the proposed rule without public hearing thereon unless wit hin thirty (30) days after the actual publication date of the proposed rule, as evidenced by the date of mailing placed on the monthly register containing the rule by the secretary of state or the secretary of state's designee, it is petitioned for a publi c hearing on the proposal by twenty

- five (25) persons who will be affected by the rule, a municipality which will be affected by the rule, an association of twenty

- five (25) or more members, or by a majority vote of any standing committee of the general as sembly. If the agency receives such a petition, it



### 59shall not proceed with the proposed rulemaking until it has given notice and held a hearing as prescribed herein.

Authority Of The Director To Authorize Injections

In the Tennessee Water Quality Act the Director has the authority to require the following:

69

- 3

- 114 (a) It shall be unlawful for any person to discharge any substance into the waters of the state or to place or cause any substance to be placed in any location where such substances, eit her by themselves or in combination with others cause any of the damages as defined in T.C.A. 69

- 3

- 103(22), unless such discharge shall be due to an unavoidable accident or unless such action has been properly authorized. Any such action is declared to

be a public nuisance.

The Water Quality Act (69

- 3

- 101 et al) grants, the Commissioner or his designee (the Director) the authority to require permits to discharge and thus allow the Director the authority to authorize injections. The Underground Injection Control Regulations (1200

- 4

- 6 et. al.) as promulgated under the Water Quality Control Act regulate these injections as follows:

1200

— 4

— 6

— .03 Injection Prohibited.

(1) Unless excluded under Subsection (3), the construction of an injection well, the

con version of a well into an injection well, and the use or operation of an injection well is prohibited unless authorized by an injection well permit or by rule of the Department.

1200

— 4

— 6

— .04 Prevention of Pollution of Ground Water and Identification of Un derground Sources of Drinking Water and Exempted Aquifers.

(1) No owner or operator shall construct, operate, maintain, convert, plug, abandon, or conduct any other injection activity in a manner that allows the movement of fluid containing any contaminan t into underground sources of drinking water, if the presence of that contaminant may cause a violation of any primary drinking water regulation or may otherwise adversely affect the health of persons. The applicant for a permit shall have the burden of s howing that the requirements of this paragraph are met.

(2) For Class I, II and III wells, if any water quality monitoring of an underground source of drinking water indicates the movement of any contaminant into the underground source of drinking water, except as authorized under this Rule, the Commissioner shall prescribe such additional requirements for construction, corrective action, operation, monitoring, or reporting (including closure of the injection well) as are necessary to prevent such movement . In the case of wells authorized by permit, the Commissioner may impose additional requirements by modifying the permit in accordance with Rule 1200

- 04

- 06

- .08(8) or may terminate the permit in accordance

with Rule 1200

- 04

- 06

- .08(9). Additionally, the Co mmissioner may assess civil penalties for all permit or rule violations in accordance with T.C.A § 69

- 3

- 115.

(3) For class V wells, if at any time the Commissioner learns that a Class V well may cause a violation of primary drinking water regulations he o r she shall:

(a) Require the injector to obtain an individual permit; and/or



### 60(b) Order the injector to take such actions (including, where required, closure of the injection well) as may be necessary to prevent the violation.

(c) Take enforcement actio n.

(4) Whenever the Commissioner learns that a Class V well may be otherwise adversely affecting the health of persons, he or she may prescribe such actions as may be necessary to prevent the adverse effect, including any action authorized under paragraph (3) of this Rule and assess civil penalties in accordance with T.C.A § 69

- 3

- 115.

(5) Notwithstanding any other provision of this rule, the Commissioner may take emergency action upon receipt of information that a contaminant which is present in or likely to enter a public water system or underground source of drinking water may present an imminent and substantial endangerment to the health of persons. The Commissioner must first determine that local authorities have not taken appropriate action to protect the health of such persons, before taking emergency action.

(6) Identification of Underground Sources of Drinking Water

(a) The Commissioner may identify (by narrative description, illustrations, maps, or other means) and shall protect, except where exe mpted under subparagraph (b) of this paragraph, as an underground source of drinking water, all aquifers or parts of aquifers which meet the definition of an “underground source of drinking water'' in Rule 1200

- 04

- 06

- .02. Even if an aquifer has not been sp ecifically identified by the commissioner, it is an underground source of drinking water if it meets the definition in Rule 1200

- 04

- 06

- .02.

(b) 1. The Commissioner may identify (by narrative description, illustrations, maps, or other means) and describe i n geographic and/or geometric terms (such as vertical and lateral limits and gradient) which are clear and definite, all aquifers or parts thereof which the Commissioner proposes to designate as exempted aquifers using the criteria in paragraph (7) of this Rule.

2. No designation of an exempted aquifer submitted as part of a UIC Program shall be final until approved by the EPA Administrator.

3 Subsequent to program approval or promulgation by the EPA, the Commissioner may, after notice and opportunity fo r a public hearing, identify additional exempted aquifers.

(i) Exemption of aquifers identified under subparagraph (7)(b) of this Rule shall be treated as a program revision under 40 CFR 145.32.

(Note: 40 CFR 145.32 provides that:

(a) Either EPA or t he approved State may initiate program revision. Program revision may be necessary when the controlling federal or state statutory or regulatory authority is modified or supplemented. The state shall keep EPA fully informed of any



### 61proposed modifications t o its basic statutory or regulatory authority, its forms, procedures, or priorities.

(b) Revision of a state program shall be accomplished as follows:

(1) The state shall submit a modified program description, Attorney General's statement, Memorandum of Agreement, or such other documents as EPA determines to be necessary under the circumstances.

(2) Whenever EPA determines that the proposed program revision is substantial, EPA shall issue public notice and provide an opportunity to comment for a period o f at least 30 days. The public notice shall be mailed to interested persons and shall be published in the Federal Register and in enough of the largest newspapers in the state to provide statewide coverage. The public notice shall summarize the proposed re visions and provide for the opportunity to request a public hearing. Such a hearing will be held if there is significant public interest based on requests received.

(3) The Administrator shall approve or disapprove program revisions based on the requireme nts of this part and of the Safe Drinking Water Act.

(4) A program revision shall become effective upon the approval of the Administrator. Notice of approval of any substantial revision shall be published in the Federal Register. Notice of approval of non

- substantial program revisions may be given by a letter from the Administrator to the State Governor or his designee.)

(ii) Exemption of aquifers identified under subparagraph (7)(c) of this Rule shall become final if the Commissioner submits the exemptio n in writing to the EPA Administrator and the EPA Administrator has not disapproved the designation within 45 days. Any disapproval by the

EPA Administrator shall state the reasons and shall constitute final Agency action for purposes of judicial review.

(c) 1. For Class III wells, the Commissioner shall require an applicant for a permit which necessitates an aquifer exemption under part (7)(b)1 of this Rule to furnish the data necessary to demonstrate that the aquifer is expected to be mineral or hydroc arbon producing. Information contained in the mining plan for the proposed project, such as a map and general description of the mining zone, general information on the mineralogy and geochemistry of the mining zone, analysis of the amenability of the min ing zone to the proposed mining method,

and a time

- table of planned development of the mining zone shall be considered by the Commissioner in addition to the information required.



### 622. For Class II wells, a demonstration of commercial producibility shall be made as

follows:

(i) For a Class II well to be used for enhanced oil recovery processes in a field or project containing aquifers from which hydrocarbons were previously produced, commercial producibility shall be presumed by the Commissioner upon a demo nstration by the applicant of historical production having occurred in the project area or field; and

(ii) For Class II wells not located in a field or project containing aquifers from which hydrocarbons were previously produced, information such as logs, core data, formation description, formation depth, formation thickness and formation parameters such as permeability and porosity shall be considered by the Commissioner, to the extent such information

is available.

(7) Exempted Aquifers

An aquifer or a portion thereof which meets the criteria for an “underground source of drinking water'' may be determined to be an “exempted aquifer'' if it meets the following criteria:

(a) It does not currently serve as a source of drinking water; and

(b) It cannot n ow and will not in the future serve as a source of drinking water because:

1. It is mineral, hydrocarbon or geothermal energy producing, or can be demonstrated by a permit applicant as part of a permit application for a Class II or III operation to contai n minerals or hydrocarbons that considering their quantity and location are expected to be commercially producible;

2. It is situated at a depth or location which makes recovery of water for drinking water purposes economically or technologically impracti cal;

3. It is so contaminated that it would be economically or technologically impractical to render that water fit for human consumption; or

4. It is located over a Class III well mining area subject to subsidence or catastrophic collapse;

or

(c) The total dissolved solids content of the ground water is more than 3,000 and less than 10,000 mg/l and it is not reasonably expected to supply a public water system.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985 eff ective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed February 17, 2010; effective date May 18, 2010

1200

— 4

— 6

— .07 Permit Required.



### 63(1) Except for exclusions specified in paragraph 1200

— 4

— 6

— .03(3), all in jection wells and activities must be authorized by permit or by rule.

(2) For new injection wells, a permit must be obtained before construction commences, unless the injection is authorized by rule as described in paragraph 1200

— 4

— 6

— .14(2).

(3) The owne r or operator of an existing Class II or III injection well shall complete, sign and submit to the Department an application for permit in conformance with this Chapter within six (6) months from the date of approval of these Rules. The owner or operator must demonstrate to the satisfaction of the Department that the existing well complies with all applicable Rules of this Chapter.

(4) Continued injection into existing Class V Wells is authorized by virtue of this rule provided compliance with rule 1200

- 4

- 6

- .05(1) and any other applicable rules of this Chapter are maintained. Owners/operators of existing Class V wells that fail to maintain compliance shall immediately cease operation and submit an application. Owners/operators of all existing Class V

well s shall submit an application within the appropriate time frame for each grand division as specified in this rule. Within six (6) months of the effective date of this rule, owner/operators of injection wells within the Western Grand Division must submit a n application. Within twelve (12) months of the effective date of this rule, owner/operators of injection wells within the Central Grand Division must submit an application. Within eighteen (18) months of the effective date of this rule, owner/operators of injection wells within the Eastern Grand Division must submit an application. If an application for an existing Class V well is not submitted within the specified timeframe, the owner/operator shall be subject to an application fee for a new well as

sp ecified in 1200

- 4

- 6

- .18(1).

(5) The Department may require the owner or operator of a Class V injection well authorized by rule to apply for and obtain an injection well permit. Cases for which a permit may be required

include:

(a) The injection well is not in compliance with the standards required by this Chapter.

(b) Compliance with standards in addition to those listed in this Chapter is required to protect USDWs from pollution.

(6) Reserved.

(7) Class V wells utilizing innovative or experimental te chnologies, may not be authorized by rule, but only by a permit. The permit shall require a surety bond.

(8) Emergency permits.

(a) Coverage. Notwithstanding any other provision of this Rule the Commissioner may temporarily permit a specific undergroun d injection if:

1. An imminent and substantial endangerment to the health of persons will result unless a temporary emergency permit is granted, provided the injection will not result in the movement of fluids into underground sources of drinking water; o r

2. (i) A substantial and irretrievable loss of oil or gas resources will occur unless a temporary emergency permit is granted to a Class II well; and



### 64(ii) Timely application for a permit could not be practically made; and

(iii) The injection will not result in the movement of fluids into underground sources of drinking water; or

3. A substantial delay in production of oil or gas resources will occur unless a temporary emergency permit is granted to a new Class II well and the temporary

authorization w ill not result in the movement of fluids into an underground source of drinking water.

(b) Requirements for issuance.

1. Any temporary permit under part (a)1 of this paragraph shall be for no longer term than required to prevent the hazard.

2. Any tempo rary permit under part (a)2 of this paragraph shall be for no longer than 90 days, except that if a permit application has been submitted prior to the expiration of the 90

- day period, the Commissioner may extend the temporary permit until final action on t he application.

3. Any temporary permit under part (a)3 of this paragraph shall be issued only after a complete permit application has been submitted and shall be effective until final action on the application.

4. Notice of any temporary permit under th is paragraph shall be published in accordance with paragraph (7) of Rule 1200

- 04

- 06

- .08 within ten days of the issuance of the permit.

5. The temporary permit under this paragraph may be either verbal, or written. If verbal authorization, it must be foll owed within 5 calendar days by a written temporary emergency permit.

6. The Commissioner shall condition the permit in any manner he or she determines is necessary to ensure that the injection will not result in the movement of fluids into an underground source of drinking water.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985; effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed February 17, 2010; effective da te May 18, 2010

1200

— 4

— 6

— .08 Authorization By Permit For Injection Wells Not Authorized By Rule.

(1) Permit Application

— All permit applicants for injection wells not authorized by rule shall provide the following information to the Department, using a form provided by the Department:

(a) The activities conducted by the applicant which require it to obtain a UIC permit.

(b) Name, mailing address, and location of the facility for which the application is submitted.



### 65(c) Up to four North American Indust ry Classification System (NAICS) codes which best reflect the principal products or services provided by the facility.

(d) The operator’s name, address, telephone number, ownership status, and status as Federal, State, private, public, or other entity.

( e) Whether the facility is located on Indian lands.

(f) A listing of all permits or construction approvals received or applied for under any of the following programs:

1. Hazardous Waste Management program under federal or state law.

2. UIC program unde r federal or state law.

3. NPDES program under federal or state law.

4. Prevention of Significant Deterioration (PSD) program under federal or state law.

5. Nonattainment program under federal or state law.

6. National Emission Standards for Hazardous Pollutants (NESHAPS) preconstruction approval under federal or state law.

7. Ocean dumping permits under the Marine Protection Research and Sanctuaries

Act.

8. Dredge and fill permits under section 404 of the Clean Water Act, 33 U.S.C.

Section 1344.

9. Other relevant environmental permits.

(g) A topographic map (or other map if a topographic map is unavailable) extending one mile beyond the property boundaries of the source depicting the facility and each of its intake and discharge structures; each of its hazardous waste treatment, storage, or disposal facilities; each well where fluids from the facility are injected underground; and those wells, springs, surface water bodies, and drinking water wells listed in public records or

otherwise known to the a pplicant within a quarter mile of the facility property boundary.

(h) A brief description of the nature of the business.

(2) A permit application will be processed when:

(a) A completed application form, all information required by these Rules and any

s upplemental information, as may be required, is submitted to the Department. The application shall identify (by narrative description, illustrations, maps, or other suitable means) and describe by geographic or geometric terms (including lateral and vertic al limits and gradients) the area intended to be used as an injection zone.

(b) The feasibility requirements that apply to the proposed injection well have been satisfied.



### 66(3) Duration of permits.

(a) Permits for Class I and V wells and authorizations f or Class V wells shall be effective for a fixed term not to exceed five (5) years. Permits for Class II and III wells may be issued for a period up to the operating life of the facility. Each Class II or III well permit shall be

reviewed at least once eve ry five (5) years to determine whether it should be modified, revoked and reissued, or revoked as provided in Paragraphs 1200

— 4

— 6

— .08(7) and (8).

(b) Except as provided by the Uniform Administrative Procedures Act, T.C.A. §§4

— 5

— 101 et seq., the term of a permit shall not be extended by modification beyond the maximum duration specified in this rule.

(c) The Department may issue any permit for a duration that is less than the full allowable

term under this rule.

(4) Schedules of compliance

(a) The permit may when appropriate specify a schedule of compliance.

(b) Time for compliance. Any schedule of compliance shall require compliance as soon as possible but in no case later than three (3) years after the effective date of the permit.

(c) Interim dates. Except as provided in this section, if a permit establishes a schedule of compliance which exceeds one (1) year from the date of permit issuance, the schedule shall set forth interim requirements and the dates for their achievements.

1. The time between i nterim dates shall not exceed one (1) year.

2. If the time necessary for completion of any interim requirement (such as the construction of a control facility) is more than one (1) year and is not readily divisible into stages for completion, the permit s hall specify interim dates for the submission of reports of progress toward completion of the interim requirements and indicate a projected completion date.

(d) Reporting. Progress reports shall be submitted no later than thirty (30) days following

each i nterim date and the final date of compliance.

(5) Effect of a permit

(a) A permit may be revoked, suspended or modified during its term for cause, under T.C.A. §69

- 3

- 108(f).

(b) The issuance of a permit does not convey any property rights of any sort, o r any exclusive privilege.

(c) The issuance of a permit does not authorize any injury to persons or property or invasion of other property rights, or any infringement of other State, Federal or local laws or regulations. In particular, the issuance of a p ermit does not relieve a Class I, Class IV or Class V well permittee from any applicable requirement he may be subject to under the Tennessee Hazardous Waste Management Act (T.C.A. 6

— 46

— 101 et. seq.)



### 67(6) Transfer of permits

— A permit may be transferred b y the permittee to a new owner or operator if the permit has been modified or revoked and reissued or a minor modification made.

(7) Public notice of permit actions and public comment period.

(a) Scope. The Department shall give public notice that the fo llowing actions have

occurred:

1. A draft permit has been prepared. A draft permit shall contain:

(i) All permit conditions ;

(ii) All compliance schedules for corrective action; and

(iii) All monitoring requirements.

(b) Upon request, the Depa rtment shall send to the requestor copies of the foregoing

documents.

(c) Timing

1. Public notice of the preparation of a draft permit shall allow at least thirty (30) days for public comment.

2. Public notice of a public hearing shall be given at least thirty (30) days before the hearing. (Public notice of the hearing may be given at the same time as public notice of the draft permit and the two notices may be combined.)

(d) Methods. Public notices of permit actions shall be given by the following met hods:

1. By mailing a copy of a notice to the following persons (any person otherwise entitled to receive notice under this paragraph may waive his or her rights to receive notice for any classes and categories of permits):

(i) the applicant;

(ii) a ny other agency which the Department knows has issued or is required to issue a RCRA, PSD, NPDES or 404 permit for the same facility or activity;

(iii) federal, state and local agencies with jurisdiction over fish, shellfish, and wildlife resources; the A dvisory Council on Historic Preservation, state historic preservation officers, and other appropriate government authorities, including any affected States;

(iv) persons on a mailing list developed by:

(I) notifying the public of the opportunity to be put on the mailing list through periodic publication



### 68in the public press and in other publications such as Regional and State funded newsletters, environmental bulletins, or State law journals;

and

(II) including those who request in writing to be on

t he list. (The Department may update the mailing list from time to time by requesting written) indication of continued interest from those listed. The Department may delete from the list the name of any person who fails to respond to such a request.

2. By publication of a notice in a daily or weekly newspaper within the area to be affected by the facility or activity;

3. Any other method reasonably calculated to give actual notice of the action in question to the persons potentially affected by it, includ ing press releases or any other forum or medium to elicit public participation.

(e) Contents. All public notices of permit actions shall contain the following minimum

information:

1. Name and address of the Department office processing the permit action for which notice is being given;

2. Name and address of the permittee or permit applicant and, if different, of the facility or activity regulated by the permit;

3. A brief description of the business conducted at the facility or activity described

in t he permit application;

4. A description of the type and quantity of wastes, fluids, or pollutants which are proposed to be injected;

5. A brief summary of the basis for the permit conditions;

6. Reasons why any requested variances do or do not appear ju stified;

7. Name, address, and telephone number of a person from whom interested persons may obtain further information including copies of the draft permit, fact sheet when prepared, and the application;

8. A brief description of the applicable comment procedures including, the beginning and ending dates of the comment period, procedures for requesting a hearing, and any other procedures by which the public may participate in the final decision;

9. Reference to the date of previous public notices relati ng to the permit;

10. Date, time, and place of the hearing;



### 6911. A brief description of the nature and purpose of the hearing including the applicable rules and procedures; and

12. Any additional information considered necessary or proper.

(f) Public co mments and requests for public hearings. During the public comment period, any interested person may submit written comments on the permit application or draft permit and may request a public hearing. A request for a public hearing shall be in writing and shall state the nature of the issues proposed to be raised.

(g) Public hearings. The Department shall hold a public hearing whenever, as evidenced by requests, there is public interest in a draft permit. A public hearing may also be held at the Departme nt’s discretion to clarify issues in the permit.

(h) Consideration of comments and response.

1. All comments submitted during the public comment period and all hearing testimony shall be considered in making the final decision.

2. If a decision is reach ed to issue a final permit, the Department shall respond to comments when the permit is issued. This response shall:

(i) Be made available to the public;

(ii) Specify which provisions, if any, of the draft permit have been changed in the final permit, an d the reasons for the change; and

(iii) Briefly describe and respond to all significant comments on the draft permit raised during the public comment period, or during any hearing.

(i) Notice of final permit decision.

1. After the close of the comment period, the Commissioner shall notify the applicant and each person who has submitted written comments, or requested notice, of the final permit decision. This notice shall contain reference to the procedures for appealing a permit decision.

2. A final p ermit decision shall become effective thirty (30) days after service of notice on the applicant of the final permit decision, unless a later date is specified in the notice, or a petition is filed pursuant to paragraph (j) or (k) below.

(j) Within thirty (30) days of receipt of notice of a final permit decision, or prior to any later date specified in the notice, any person other than the applicant who has filed comments on that permit, or its drafts, may petition the Board for a hearing on the permit or a ny condition of the permit. The petition shall include a statement of all of the permit conditions which are challenged and the reasons supporting the challenge. This hearing shall be legislative in nature and shall not be a contested case within the mean ing of T.C.A. §4

— 5

— 102, the Uniform Administrative Procedures Act. The Board shall make a recommendation on issuance or denial of the permit or permit conditions to the



### 70Commissioner that shall become final and effective in thirty (30) days if the

Commissi oner takes no action.

(k) Within thirty(30) days of receipt of notice of a final permit decision, the permit applicant may file a petition with the Board for a contested case hearing pursuant to T.C.A. §§69

— 3

— 105 and 4

— 5

— 301 et seq.

(8) Modification or r evocation and reissuance of permits.

— When the Department determines that one or more causes exist for modification or revocation and reissuance of a permit, the Department may modify or revoke and reissue the permit accordingly, subject to the limitations of subparagraph (c) of this paragraph, and may request an updated application if necessary. When a permit is modified, only the conditions subject to modification are reopened. If a permit is revoked and reissued, the entire permit is reopened and subject to revision and the permit is reissued for a new term. If a permit modification satisfies the criteria for minor modifications, the permit may be modified without a draft permit or public review. Otherwise, a draft permit must be prepared and public review procedures as set out herein must be followed.

(a) Causes for modification. The following are causes for modification and may be causes

for revocation and reissuances.

1. Alterations. There are material and substantial alterations or additions to the permitted facility or activity which occurred after permit issuance which justify the application of permit conditions that are different or absent in the existing permit.

2. Information. The Department has received information that was not available at the time of permit issuance (other than revised regulations, guidance, or test methods) and would have justified the application of different permit conditions at the time of issuance. This cause shall include any information indicating that

cumulative eff ects on the environment are unacceptable.

3. New regulations. The standard or regulations on which the permit was based have been changed by promulgation of amended standards or regulations or by judicial decision after the permit was issued. Permits oth er than for Class 11 or III wells may be modified during their terms for this cause, only as follows:

(i) For promulgation of amended standards or regulations, when:

(I) The permit condition requested to be modified was based on a Departmental regulation ;

(II) The Department has revised withdrawn, or modified that portion of the regulation on which the permit condition was based; and

(III) A permittee requests modification within thirty (30) days after public notice of the action on which the request is based.

(ii) For judicial decisions, a court of competent jurisdiction has remanded and stayed Department promulgated regulations if the remand and stay concern that portion of the regulations on which the permit condition was



### 71based and a request is filed by the permittee in accordance with these regulations within thirty (30) days of judicial remand.

4. Compliance schedules. The Department determines good cause exists for modification of a compliance schedule, such as an act of God, strike, flood, or

mat erials shortage or other events over which the permittee has little or no control and for which there is no reasonably available remedy.

(b) Causes for modification or revocation and reissuance. The following are causes to modify or, alternatively, revoke and reissue a permit:

1. Cause exists for revocation and the Department determines that modification or revocation and reissuance is appropriate.

2. The Department has received notification of a proposed transfer of the permit.

(c) Facility siting. Sui tability of the facility location will not be considered at the time of permit modification or revocation and reissuance unless new information or standards

indicate that a threat to human health or the environment exists which was unknown at the time of p ermit issuance.

(9) Revocation of permits or denial of renewal application.

(a) The Department may revoke a permit during term, or deny a permit renewal application for the following causes:

1. Noncompliance by the permittee with any condition of the pe rmit;

2. The permittee’s failure in the application or during the permit issuance process to disclose fully all relevant facts, or the permittee’s misrepresentation of any relevant facts at any time; or

3. A determination that the permitted activity enda ngers human health or the environment and can only be regulated to acceptable levels by permit

modification or revocation.

(b) Notice of intent to revoke and reissue, or terminate. If the Department tentatively decides to revoke and reissue a permit, a n otice of intent to revoke and reissue, or notice of intent

to terminate shall be issued.

(10) Minor Modifications

— Upon the consent of the permittee, the Department may modify a permit to make the corrections or allowances for changes in the permitted acti vity listed in this paragraph without following the entire permitting procedure. Minor modifications may only:

(a) Correct typographical errors;

(b) Require more frequent monitoring or reporting by the permittee;

(c) Change an interim compliance date in a schedule of compliance, provided the new date is not more than 120 days after the date specified in the existing permit and does not interfere with attainment of the final compliance date requirement;



### 72(d) Change quantities or types of fluids injected w hich are injected within the capacity of the facility as permitted and, in the judgment of the Department would not interfere with the operation of the facility or its ability to meet conditions described in the permit and would not change its classificati on;

(e) Change a construction requirement approved by the Department, provided that any such alteration shall comply with all requirements of this rule; or

(f) Amend a plugging and abandonment plan.

(g) Allow for a change in ownership or operational con trol of a facility where the Commissioner determines that no other change in the permit is necessary, provided that a written agreement containing a specific date for transfer of permit responsibility, coverage, and liability between the current and new pe rmittees has been submitted to the

commissioner.

(11) Confidentiality of information

— The handling of confidential information shall be governed by T.C.A. § 69

- 3

- 113.

(12) Signatories to applications and reports.

(a) Applications. All permit applications , shall be signed as follows:

1. For a corporation: by a responsible corporate officer. For the purpose of this part, a responsible corporate officer means (1) 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 (II) the manager of one or more manufacturing, production or operation facilities employing more than 250 persons or having gross an nual sales or expenditures exceeding 25 million dollars (in second quarter 1980 dollars), if authority to sign documents has been assigned or delegated to the manager in accordance with corporate procedures. Note: The Department does not require specific assig nments or delegations of authority to responsible corporate officers identified in subpart (f). The Department will presume that these responsible corporate officers have the requisite authority to sign permit applications unless the corporation has notif ied the Commissioner to the contrary. Corporate procedures governing authority to sign permit applications may provide for assignment or delegation to applicable corporate positions under item (II) rather than the specific individuals.

2. For a partnershi p or sole proprietorship: by a general partner or the proprietor, respectively; or

3. For a municipality, State, Federal, or other public agency: by either a principal executive officer or ranking elected official.

(b) Reports. All reports required by pe rmits, and other information requested by the Department, shall be signed by a person described in sub

- paragraph (a) above or by a duly authorized representative of that person. A person is a duly authorized representative only if:



### 731. The authorization is made in writing by a person described in subparagraph (a);

2. The authorization specifies 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, ope rator of a well or well field, superintendent, or position of equivalent responsibility (A duly authorized representative may thus be either a named individual or any individual occupying a named position.); and

3. The written authorization is submitted t o the Department.

(c) Changes to authorization. If an authorization under subparagraph (b) is no longer accurate because a different individual or position has responsibility for the overall operation of the facility, a new authorization satisfying the re quirements of subparagraph (b) must be submitted to the Department prior to or at the time any reports, information, or applications signed by an authorized representative are submitted.

(d) Certification. Any person signing a document under this section shall make the following

certification.

“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 eva luate 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.”

(13) Permit Requirements

— All UIC permits shall contain permit conditions establishe d by the Commissioner as necessary to fulfill the purposes of the Tennessee Water Quality Control Act, T.C.A. §§69

— 3

— 101 et seq., a description of the injection zone being permitted, and any necessary corrective action as stated under rule 1200

— 4

— 6

— .09(5). The permit conditions shall be set at levels to prevent adverse effects to persons utilizing the ground water resource after consideration of at least the following factors: any guidelines set for certain pollutants by U.S.E.P.A., the flow characteristics of ground water, risk to humans, and the risk of migration. The following conditions (a) through (n) apply to all UIC permits. All conditions applicable to all permits shall be incorporated into the permits either expressly or by reference. If incorporate d by reference, a specific citation to these regulations must be given in the permit.

(a) The permittee must comply with all conditions of this permit and all applicable laws and regulations. Any permit noncompliance constitutes a violation of the Tenness ee Water Quality Control Act and is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application.

(b) If the permittee wishes to continue an activity regulated by this pe rmit after the expiration date of this permit, the permittee must apply for and obtain a new permit prior to expiration of this permit.



### 74(c) It shall not be a defense for a permittee in an enforcement action that it would have been necessary to halt or red uce the permitted activity in order to maintain compliance with the conditions of this permit.

(d) The permittee shall take all reasonable steps to minimize or correct any adverse impact on the environment resulting from non

- compliance with this permit.

(e) The permittee shall at all times properly operate and maintain all facilities and systems of related appurtenances) which are installed or used by the permittee to achieve compliance with the conditions of this permit. Proper operation and maintenance includes effective performance, adequate funding, adequate operator staffing and training, and adequate laboratory and process controls, including appropriate quality assurance procedures. This provision requires the operation of back

- up or auxiliary facil ities or similar systems only when necessary to achieve compliance with the conditions of the permit.

(f) This permit may be modified, revoked and reissued, or terminated for cause. The filing of a request by the permittee for a permit modification, revoc ation and reissuance, or termination, or a notification of planned changes or anticipated noncompliance, does not stay any permit condition.

(g) This permit does not convey any property rights of any sort, or any exclusive privilege.

(h) The permittee sh all furnish to the Department, within a time specified, any information which the Department may request to determine whether cause exists for modifying, revoking and reissuing, or terminating this permit, or to determine compliance with this permit. The p ermittee shall also furnish to the Department, upon request, copies of records required to be kept by this permit.

(i) The permittee shall allow Department personnel, or an authorized representative of the Department, upon the presentation of credentials to:

1. Enter upon the permittee’s premises where a regulated facility or activity is located or conducted, or where records must be kept under the conditions of this permit;

2. Have access to and copy, at reasonable times, any records that must be kept

u nder the conditions of this permit;

3. Inspect at reasonable times any facility, equipment (including monitoring and control equipment), practices, or operations regulated or required under this permit; and

4. Sample or monitor at reasonable times, for the purposes or assuring permit compliance or as otherwise authorized by the Tennessee Water Quality Control Act, any substances or parameters at any location.

(j) Monitoring and records.

1. Samples and measurements taken for the purpose of monitoring sh all be representative of the monitored activity. The permittee shall monitor injection



### 75fluids, injection operations, and local ground water supplies, in accordance with the requirements for the applicable class of well stated in rules 1200

— 4

— 6

— .10 through 1200

— 4

— 6

— .14.

2. The permittee shall retain records of all monitoring information, including the following:

(i) Calibration and maintenance records and all original strip chart recordings for continuous monitoring instrumentation, copies of all reports r equired by this permit, and records of all data used to complete the application for this permit, for a period of at least 3 years from the date of the sample, measurement, report, or application. This period may be extended by request of the Department at any time; and

(ii) The nature and composition of all injected fluids until three years after the completion of any plugging and abandonment procedures. The Department may require the owner or operator to deliver the records to the Department at the concl usion of the retention period.

3. Records of monitoring information shall include:

(i) The date, exact place, and time of sampling or measurements;

(ii) The individual(s) who performed the sampling or measurements;

(iii) The date(s) analyses were perfo rmed;

(iv) The individual(s) who performed the analyses;

(v) The analytical techniques or methods used; and

(vi) The results of such analyses.

(k) All applications, reports, or information submitted to the Department shall be signed and

certified.

(l) Reporting requirements.

(i) Planned Changes. The permittee shall give notice to the Department as soon as possible of any planned physical alterations or additions to the permitted facility.

(ii) Anticipated noncompliance. The permittee shall give adva nce notice to the Department of any planned changes in the permitted facility or activity which may result in noncompliance with permit requirements.

(iii) Transfers. See subsections (5), (7), (8) and (9) of this Rule.



### 76(iv) Monitoring reports. Monitoring results shall be reported at the intervals specified elsewhere in this permit.

(v) Compliance schedules. Reports of compliance or noncompliance with, or any progress reports on, interim and final requirements contained in any compliance schedule of this permit shall be submitted no later than 30 days following each schedule date.

(vi) Twenty

- four hour reporting. The permittee shall report any noncompliance which may endanger health or the environment, including:

(I) Any monitoring or other information w hich indicates that any contaminant may cause an endangerment to
USDWs; or

(II) Any noncompliance with a permit condition or malfunction of the injection system which may cause fluid migration into or between USDWs.

Any such information shall be provided orally within 24 hours from the time the permittee becomes aware of the circumstances. A written submission shall also be provided within 72 hours of the time the permittee becomes aware of the circumstances. The written submission shall contain a descrip tion of the noncompliance and its cause, the period of noncompliance, including exact dates and times, and if the noncompliance has not been corrected, the anticipated time it is expected to continue; and steps taken or planned to reduce, eliminate and

pre vent reoccurrence of the noncompliance.

(vii) Other noncompliance. The permittee shall report all instances of noncompliance not reported under paragraphs i, iv, v, and vi of this section, at the time monitoring reports are submitted. The reports shall co ntain the information listed in paragraph (l)(vi) of

this section.

(viii) Other information. Where the permittee becomes aware that it failed to submit any relevant acts in a permit application, or submitted incorrect information in a permit application o r in any report to the Department, it shall promptly submit such facts or

information.

(m) Requirements prior to commencing injection. Except for all new wells authorized by an area permit under rules 1200

— 4

— 6

— .11 and 1200

— 4

— 6

— .12, a new injection well

ma y not commence injection until construction is complete, and

1. The permittee has submitted notice of completion of construction to the Director;

and



### 772. (i) The Department has inspected or otherwise reviewed the new injection well and finds it is in com pliance with the conditions of the permit; or

(ii) The permittee has not received notice from the Director of his or her intent to inspect or otherwise review the new injection well within 13 days of the date of the notice in paragraph (m)(l) of

this sec tion, in which case prior inspection or review is waived and the permittee may commence injection. The Director shall include in his notice a reasonable time period in which he shall inspect the well.

(n) The permittee shall notify the Department at such times as the permit requires before conversion or abandonment of the well, or in the case of area permits, before closure of the project.

(o) The permittee shall at all times maintain sufficient financial resources to allow for the proper plugging and aba ndonment of the well. In the event of a change of ownership or other transfer of permit, the transferee shall provide proof of financial responsibility before continued operation.

1. For Class I and III wells, a surety bond or cash bond shall be filed with the Department prior to permit issuance. At the Department’s discretion, other forms of financial assurance for Class I wells may be acceptable.

2. Class II wells shall have a surety bond or cash bond for a total of $4,000 per well.

If there is an existing $2,000 bond with the Tennessee Oil and Gas Board, the bond under this rule shall be $2,000. If no bond currently exists, the bond shall be for $4,000.

3. At the Department’s discretion, a bond may be required for Class V wells.

(p) The owner or operator of a Class I, II or III well permitted under this part shall establish prior to commencing injection or on a schedule determined by the Department, and thereafter maintain mechanical integrity for the well. When the Department determines

that a Class I, II, or III well lacks mechanical integrity, the Department shall give written notice of the determination to the owner or operator. Unless the Department requires immediate cessation, the owner or operator shall cease injection into the well with in 48 hours of receipt of the Department’s determination. The Department may allow plugging of the well pursuant to the requirements of this rule or require the permittee to perform such additional construction, operation, monitoring, reporting and corre ctive action as is necessary to prevent the movement of fluid into or between USDWs caused by the lack of mechanical integrity. The owner or operator may resume injection upon written notification from the Department that the owner or operator has demonst rated mechanical integrity pursuant to this rule. The Department may allow the owner or operator of a well which lacks mechanical integrity to continue or resume injection, if the owner or operator has made a satisfactory demonstration that there is no mo vement of fluid into or between

USDWs.

(q) A Class I, II or III permit shall include and a Class V permit may include, conditions to insure that plugging and abandonment of the well will not allow the movement of fluids



### 78into or between USDWs. Where the D epartment's review of an application indicates that the permittee's plan is inadequate, the Department may require the applicant to revise the plan, prescribe conditions meeting the requirements of this paragraph, or deny the permit.

Authority: T.C.A. §6 9

— 3

— 105. Administrative History: Original rule filed August 9, 1985; effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed January x, 2010; effective date April x, 2010

Existing Enhanced Recovery And Hydrocarbon Storage Wells

For all existing enhanced recovery and hydrocarbon storage wells that are currently operating in the State

of Tennessee Rule 1200

- 4

- 6

- .11 (11) states: “ Class II wells in current operation upon the effective date of

this rule sh all file an application within 6 months of the effective date of this rule. No application fee will be required. Failure to file an application by the required date shall make the wells in violation of Rule

1200

- 4

- 6 and subject to the new application fee or closure.”

By this statement the State will accept and review applications obtained from existing facilities for no fee within the first six months. We will be requesting that the existing facilities also provide any information from the existing Feder al applications, approval letters, operating permits

, mechanical integrity tests and aquifer designations.

Inventory Maintenance

Since 1995 the State has been maintaining a database, which holds all the currently listed permits, as well

as responses to registration questionnaires and registrations done in conjunction with the TVA UIC Study. TVA has provided the State with a valuable electronic database while working within the designated wellhead protection areas. The State will request information fr om the Region IV EPA database for any supplemental information needed by the State as needed . The database is updated on a monthly basis. The State is currently updating the format of the database in order to respond easier to the required 7520

forms. The new database manager for the Groundwater Management Section is accomplishing this.

MOTOR VEHICLE WELLS

Motor vehicle waste disposal well construction after April 5, 2000 is banned nationwide. The decision to regulate motor vehicle waste disposal wells is based on the high potential for these wells to endanger underground sources of drinking water. EPA data shows that there are two existing motor vehicle wells

. T hese wells will be inspected and evaluated and closed as soon as the State is notified of the locations of these wells. During the States operation of the Class V program any new motor vehicle wells will be investigated and evaluated and closed as they are located.

Exempted Aquifers

At this time the Department has not exempted any aquif er in the State. In Tennessee an exempted aquifer

is defined as follows:



### 791200

- 4

- 6

- .04 (7) Exempted Aquifers

An aquifer or a portion thereof which meets the criteria for an “underground source of drinking water'' may be determined to be an “exempted aquif er'' if it meets the following criteria:

(a) It does not currently serve as a source of drinking water; and

(b) It cannot now and will not in the future serve as a source of drinking water because:

1. It is mineral, hydrocarbon or geothermal energy prod ucing, or can be demonstrated by a permit applicant as part of a permit application for a Class II or III operation to contain minerals or hydrocarbons that considering their quantity and location are expected to be commercially producible;

2. It is situa ted at a depth or location which makes recovery of water for drinking water purposes economically or technologically impractical;

3. It is so contaminated that it would be economically or technologically impractical

to render that water fit for human cons umption; or

4. It is located over a Class III well mining area subject to subsidence or catastrophic collapse;

or

(c) The total dissolved solids content of the ground water is more than 3,000 and less than 10,000 mg/l and it is not reasonably expected to supply a public water system.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985 effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed February 17, 2010; effecti ve date May 18, 2010

Once the applicant has submitted a completed request and the State approves the request the State will ask EPA for a final ruling.

Class IV Prohibition

Under the Tennessee UIC regulations Class IV wells are banned. The following l anguage institutes the State portion of the Federal ban.

1200

— 4

— 6

— .13 Class IV Wells.

(1) The following are prohibited:

(a) The use of any well to dispose of water carrying human waste, household or business waste, raw sewage or the effluent from any s eptic tank or other sewer system of any kind, unless such well is a subsurface fluid distribution system (SFDS) which is part of a Subsurface Sewage Disposal System (SSDS) permitted under provisions 68

- 221

- 401 et

seq. or a drip disposal system permitted p ursuant to 69

- 3

- 108 et seq.



### 80(b) The use of any Class V injection well in such a manner as to cause any USDW to contain any substances, whether alone or in combination with other substances, that are toxic, carcinogenic, mutagenic, or teratogenic, other t han those of natural origin, at levels and conditions which violate primary drinking water standards as given in 1200

- 5

- 1 or adversely affect the health of persons.

(c) Large capacity cesspools; and

(d) Cesspools, other than large capacity cesspools, not authorized under T.C.A. 68

- 221

- 401
et seq.

(e) Motor Vehicle Waste Disposal Wells (MVWDWs) are prohibited and must be properly

closed and abandoned.

Inventory Of Class V Wells

Tennessee has completed a contract with TVA for notification and location of all potential Class V well owners within the state’s wellhead protection areas. The State has also conducted various workshops across the state during the last regulation update. A contract has been initiated with TVA to provide stakeholder workshops ac ross the State. The staff of the DWS has also spoken at numerous workshops and seminars across the state in hopes of reaching new and potential clients. The universe of Class V wells is constantly expanding. The State is currently evaluating North Amer ican Industry Classification System (NAICS) codes as they concern wellhead protection areas. The Division is focusing primarily on those Class V systems that receive any waste other than sanitary waste.

Wellhead Protection Areas And Other Sensitive Grou ndwater Areas

EPA has declared that the entire State is a sensitive groundwater area and Tennessee will continue to operate under this ruling. Tennessee will also emphasize Wellhead Protection areas as an area that the State will target for added invento ry and enforcement activities. In Tennessee the Drinking Water Source Protection regulations (1200

- 5

- 1

- .34) have been modified to place special emphasis on all injection wells that are located within wellhead protection areas. In order to provide more of a regulatory emphasis, the UIC regulations were amended to allow denial of permits or the placement of more stringent requirements on a permit due to its location within a wellhead protection area. This language is intended to provide a prioritization an d a specific link to Drinking Water (Source Protection Rule/ Wellhead Protection) Rule under the Tennessee Safe Drinking Water Act and the UIC Regulations under the Tennessee Water Quality Control Act as well as ensuring that the applicant is aware of the location of the facility and the relationship to the wellhead protection area(s). This change also allows the owner/operator to be put on a written notice that, if permitted

, the facility will be operating in a wellhead protection area, which is a priorit y area for concern for the UIC program. The UIC program has also addressed Identification of USDW by the addition of the following language in the Rule:

1200

— 4

— 6

— .04 Prevention of Pollution of Ground Water and Identification of Underground Sources

of Dri nking Water and Exempted Aquifers.

(1) No owner or operator shall construct, operate, maintain, convert, plug, abandon, or conduct any other injection activity in a manner that allows the movement of fluid containing any contaminant into underground sourc es of drinking water, if the presence of that contaminant may cause a violation of any primary drinking water regulation or may otherwise adversely affect the health of



### 81persons. The applicant for a permit shall have the burden of showing that the requirem ents of this paragraph are met.

(2) For Class I, II and III wells, if any water quality monitoring of an underground source of drinking water indicates the movement of any contaminant into the underground source of drinking water, except as authorized und er this Rule, the Commissioner shall prescribe such additional requirements for construction, corrective action, operation, monitoring, or reporting (including closure of the injection well) as are necessary to prevent such movement. In the case of wells authorized by permit, the Commissioner may impose additional requirements by modifying the permit in accordance with Rule 1200

- 04

- 06

- .08(8) or may terminate the permit in accordance

with Rule 1200

- 04

- 06

- .08(9). Additionally, the Commissioner may assess ci vil penalties for all permit or rule violations in accordance with T.C.A § 69

- 3

- 115.

(3) For class V wells, if at any time the Commissioner learns that a Class V well may cause a violation of primary drinking water regulations he or she shall:

(a) Requir e the injector to obtain an individual permit; and/or

(b) Order the injector to take such actions (including, where required, closure of the injection well) as may be necessary to prevent the violation.

(c) Take enforcement action.

(4) Whenever the Com missioner learns that a Class V well may be otherwise adversely affecting the health of persons, he or she may prescribe such actions as may be necessary to prevent the adverse effect, including any action authorized under paragraph (3) of this Rule and as sess civil penalties in accordance with T.C.A § 69

- 3

- 115.

(5) Notwithstanding any other provision of this rule, the Commissioner may take emergency action upon receipt of information that a contaminant which is present in or likely to enter a public water system or underground source of drinking water may present an imminent and substantial endangerment to the health of persons. The Commissioner must first determine that local authorities have not taken appropriate action to protect the health of such pers ons, before taking emergency action.

(6) Identification of Underground Sources of Drinking Water

(a) The Commissioner may identify (by narrative description, illustrations, maps, or other means) and shall protect, except where exempted under subparagraph (b) of this paragraph, as an underground source of drinking water, all aquifers or parts of aquifers which meet the definition of an “underground source of drinking water'' in Rule 1200

- 04

- 06

- .02. Even if an aquifer has not been specifically identified by the commissioner, it is an underground source of drinking water if it meets the definition in Rule 1200

- 04

- 06

- .02.

(b) 1. The Commissioner may identify (by narrative description, illustrations, maps, or other means) and describe in geographic and/or geom etric terms (such as vertical and lateral limits and gradient) which are clear and definite, all aquifers or parts thereof which the Commissioner proposes to designate as exempted aquifers using the criteria in paragraph (7) of this Rule.



### 822. No designatio n of an exempted aquifer submitted as part of a UIC Program shall be final until approved by the EPA Administrator.

3 Subsequent to program approval or promulgation by the EPA, the Commissioner may, after notice and opportunity for a public hearing, iden tify additional exempted aquifers.

(i) Exemption of aquifers identified under subparagraph (7)(b) of this Rule shall be treated as a program revision under 40 CFR 145.32.

(Note: 40 CFR 145.32 provides that:

(a) Either EPA or the approved State may ini tiate program revision. Program revision may be necessary when the controlling federal or state statutory or regulatory authority is modified or supplemented. The state shall keep EPA fully informed of any proposed modifications to its basic statutory or regulatory authority, its forms, procedures, or priorities.

(b) Revision of a state program shall be accomplished as follows:

(1) The state shall submit a modified program description, Attorney General's statement, Memorandum of Agreement, or such other documents as EPA determines to be necessary under the circumstances.

(2) Whenever EPA determines that the proposed program revision is substantial, EPA shall issue public notice and provide an opportunity to comment for a period of at least 30 days. The p ublic notice shall be mailed to interested persons and shall be published in the Federal Register and in enough of the largest newspapers in the state to provide statewide coverage. The public notice shall summarize the proposed revisions and provide for

t he opportunity to request a public hearing. Such a hearing will be held if there is significant public interest based on requests received.

(3) The Administrator shall approve or disapprove program revisions based on the requirements of this part and of

t he Safe Drinking Water Act.

(4) A program revision shall become effective upon the approval of the Administrator. Notice of approval of any substantial revision shall be published in the Federal Register. Notice of approval of non

- substantial program

revi sions may be given by a letter from the Administrator to the State Governor or his designee.)

(ii) Exemption of aquifers identified under subparagraph (7)(c) of this Rule shall become final if the Commissioner submits the exemption in writing



### 83to the EPA A dministrator and the EPA Administrator has not disapproved the designation within 45 days. Any disapproval by the

EPA Administrator shall state the reasons and shall constitute final Agency action for purposes of judicial review.

(c) 1. For Class III we lls, the Commissioner shall require an applicant for a permit which necessitates an aquifer exemption under part (7)(b)1 of this Rule to furnish the data necessary to demonstrate that the aquifer is expected to be mineral or hydrocarbon producing. Informa tion contained in the mining plan for the proposed project, such as a map and general description of the mining zone, general information on the mineralogy and geochemistry of the mining zone, analysis of the amenability of the mining zone to the proposed mining method,

and a time

- table of planned development of the mining zone shall be considered by the Commissioner in addition to the information required.

2. For Class II wells, a demonstration of commercial producibility shall be made as

follows:

(i) Fo r a Class II well to be used for enhanced oil recovery processes in a field or project containing aquifers from which hydrocarbons were previously produced, commercial producibility shall be presumed by the Commissioner upon a demonstration by the applican t of historical production having occurred in the project area or field; and

(ii) For Class II wells not located in a field or project containing aquifers from which hydrocarbons were previously produced, information such as logs, core data, formation des cription, formation depth, formation thickness and formation parameters such as permeability and porosity shall be considered by the Commissioner, to the extent such information

is available.

(7) Exempted Aquifers

An aquifer or a portion thereof which me ets the criteria for an “underground source of drinking water'' may be determined to be an “exempted aquifer'' if it meets the following criteria:

(a) It does not currently serve as a source of drinking water; and

(b) It cannot now and will not in the fu ture serve as a source of drinking water because:

1. It is mineral, hydrocarbon or geothermal energy producing, or can be demonstrated by a permit applicant as part of a permit application for a Class II or III operation to contain minerals or hydrocarbon s that considering their quantity and location are expected to be commercially producible;

2. It is situated at a depth or location which makes recovery of water for drinking water purposes economically or technologically impractical;

3. It is so contami nated that it would be economically or technologically impractical to render that water fit for human consumption; or



### 844. It is located over a Class III well mining area subject to subsidence or catastrophic collapse;

or

(c) The total dissolved solids c ontent of the ground water is more than 3,000 and less than 10,000 mg/l and it is not reasonably expected to supply a public water system.

Authority: T.C.A. §69

— 3

— 105. Administrative History: Original rule filed August 9, 1985 effective September 8, 1985. Amendment filed April 11, 2001; effective date June 25, 2001. Amendment filed February 17, 2010; effective date May 18, 2010

Public Hearing Participation Opportunities for Primacy

The UIC program ran advertisements in several local papers across the st ate to announce that the state was seeking primary enforcement authority. A copy of the announcements as well as a copy of the presentation and comments is provided in appendix section 8. The papers printed the following:

There will be a hearing before the Division of Water Supply Staff representing the Water Quality Control Board of the Department of Environment and Conservation to hear comments from the public concerning amendments to the Regulations for Underground Injection Chapter 1200

- 4

- 6
pursuant to T.C.A. 69

- 3

- 105 et seq. Subparagraph (c) is being added to Rule 1200

- 4

- 6

- .10(2) to allow for a variance for deep well injection of industrial waste into underground sources of drinking waters. This public hearing will also be used to solicit response f rom the public on the Division's intent of pursuing primary enforcement authority ("primacy") for the Underground Injection Control Program from the .Environmental Protection Agency. The hearing will be conducted in the manner prescribed by the Uniform Adm inistrative Procedures Act, Tennessee

Code Annotated Section 4

- 5

- 204 and will take place at the Madison County Agricultural Complex at 309 N. Parkway at Hwy 45 Bypass in Jackson at 2:00 pm CST on the 9th day of July, 2001; in the auditorium of the Fleming Training Center located at 202 Blanton Drive in Murfreesboro at 10:00 am CST on the 17th day of July, 2001; and at the Knox County Health Department Auditorium, 140 Dameron Avenue, 1:00 pm EST in Knoxville on the 24th day of July, 2001. Written comments wi ll be considered if received by close of business August 10, 2001. Written comments should be mailed to the Tennessee Division of Water Supply, 6th Floor L&C Tower, 401 Church Street, Nashville, TN 37243

- 1549.

Individuals with disabilities who wish to par ticipate in these proceedings (to review these filings) should contact the Department of Environment and Conservation to discuss any auxiliary aids or services needed to facilitate such participation. Such contact may be made in person, by writing, telepho ne, or other means should be made no less than (10) days prior to the scheduled meeting date (date such party intends to review such filings), to allow time for the Department to provide such aid or service. Contact tile ADA Coordinator, 401 Church Street, 11 th Floor L & C Tower, Nashville, TN 37243

- 0449, 1

- 888

- 867

- 2757.

Hearing impaired callers may use the Tennessee Relay Service (1

- 800

- 848

- 0298).

For a copy of the entire text of this notice of rulemaking hearing, contact:

Scotty Sorrells

UIC Coordinato r TN Division of Water Supply



### 85401 Church Street Nashville, TN (615) 532

- 9224

or visit the Departmental website at www.tdec.net

At each public hearing the following was read:

STATEMENT OF THE PRESIDING OFFICER

PUBLIC HEA RING

UNDERGROUND INJECTION CONTROL RULES

My name is Scotty Sorrells and I am Assistant Manager for the Ground Water Management Section in the Division of Water Supply, Department of Environment and Conservation. I will be the hearing officer for

this hea ring. The purpose of this hearing is to provide an opportunity for persons who wish to comment on the rulemaking hearing rules for the Underground Injection Control Program to do so. The statutory authority for this hearing is Tennessee Water Quality Con trol Act T.C.A. 69

- 3

- 101 et. seq., and the

Uniform Administrative Procedures Act.

The Rulemaking Procedure is as follows: Rulemaking Hearing Rules are drafted and presented to the Water Quality Control Board who authorizes them to be made available for p ublic hearing, the hearing is held, the hearing is recorded and summarized, and the record and summary is presented to the Water Quality Control Board for their consideration. The Board may adopt the rules and if they do, the rules are

submitted to the At torney General to review for legality. After the Attorney General approves the rules they are filed with the Secretary of State. Seventy

- five days later they become effective.

Notice of the hearing was also published in major newspapers across the state in Knoxville, Memphis, Nashville, Kingsport, Jackson, Johnson City and Chattanooga and in the Tennessee Administrative Register. The full text of the proposed rules was placed on the State’s Web Site.

Everyone who wishes to present testimony will be giv en the opportunity. Those attending this hearing are asked to fill out one of the small cards and indicate whether or not they wish to give testimony. Lengthy testimony should be given in writing and summarized if oral testimony is given. I am reserving the right to limit testimony from any one person to a reasonable time in order that everyone that wishes to give testimony will have an opportunity to do so today.

It is the purpose of this hearing to receive information from you concerning the specific r ules under consideration. I or the staff of the Division of Water Supply may ask questions to clarify testimony; however, we are not here to debate issues. Following the hearing, staff of the Division will remain here to answer questions that you may have

.

Written testimony may also be presented to the Division of Water Supply at 6th Floor, L&C Tower, 401 Church Street, Nashville, Tennessee 37243

- 1549 as long as it is received by the close of business August
10, 2001.

The staff of the Division proposes t o summarize the comments made at today’s hearing and will send a copy to each hearing attendee in order that commenter’s can verify that the essence of their comment is accurately portrayed. After this they will be submitted to the Water Quality Control B oard members.

Tom Moss, Manager of the Ground Water Management Section, will briefly explain the rules considered at this hearing after which the floor will be opened for testimony.



### 86(comments by Mr. Moss)

The following comments are related to Tennessee seeking Primacy the entire public record can be found in the appendix:

July 19, 20 & 26, 2001 Public Hearing Underground Injection Control

Rule 1200

- 4

- 6

NAME ORGANIZATION RULE COMMENT STAFF
RESPONSE (1) David H.

Alexander DuPont White Pigment and

Min eral Products Corporation of America 1200

- 4

- 6 General (oral and written) (1)(a) First, generally, Dupont would like to compliment the Division for its foresight in the development and implementation of a strong UIC program. Dupont strongly supports the Div ision in its quest for primacy for this important program. (1)(a) The

Division thanks Dupont for their support.

(2) Linda Modica Vice Chair State of Franklin Group Sierra Club 1200

- 4

- 6

- .10(2)(c) (oral) (2) (a) My name is

Linda Modica. I’m the

vi ce chair of the State of Franklin group
of the Sierra Club. I am

also a homeowner in Washington Co., TN, and our family uses a

well that is approximately 120 feet deep for our drinking water. We’ve got an

11

- year

- old daughter, various pets, and two
adul ts living in the household. My concern today is, with the geology of our area being so fractured and karst that, and also given the fact that, not too long ago in Tellford, which is only about 2 miles from my house,

there was a situation where families,

i ncluding some families with children, suffered ill
health effects due to drinking and bathing in their own well water,(in some cases, it was spring water) that our area may not be
amenable to the use of injection disposal directly into the ground

water. I also brought with me, for everyone

who wishes to take a (2) (a) The

Division views

yo ur comment to mean that you are in opposition to the placement of Class I injection

wells in east
Tennessee. It

was never the
intent of this

Division to allow the placement of
Class I wells in any other

counties than

those listed in

1200

- 4

- 6

- .10 (2)(b). We have
modified the language in the opening paragraph to
reflect this change by adding the following after
the word “use” in

the second sentence: ”only in
those counties

listed in 1200

- 4

- 6

- .10 (2)(b)”.

The Division also understands your
concern in the pl acement of shallow injection systems in your

area.



### 87copy, a copy of a report just recently published by the United States Geological Survey called “Water Quality in the Upper Tennessee River Basin.” And you’ll see in this report, early on, that the f indings of the geologists were that our area, well, the entire ridge and valley area is
an area of the state where the aquifers can be easily contaminated due to the geology that underlies this region. I think that the, I hope

that the state will use

extr eme caution in our region, that there are still many of us who rely on ground water for drinking water purposes

and there are also some towns including Erwin
and Elizabethon which rely on wells and springs in some cases, where they provide drinking water t o the public. As you have your own little set

- up there, that shows how in
Knox formation the
surface water and the ground water can be

connected. The sinkholes can easily

introduce contaminants to the ground water,
and all of us need clean drinking water . Living in a part of the county, and many of us do, where public supplies are not

available and won’t be available for a long

time. We don’t want to have to rely on the town of Jonesborough or the

other cities to have to provide us with safe drinking wa ter. We

think that the current ground water should be protected as much as possible. And to that end, the Sierra Club and other groups, including water shed watch groups that are being formed throughout the region with the help of the Tennessee Valley

Au thority, are working on projects informing

homeowners and

farmers and businesses



### 88what they can do to protect the land, to protect the water. I hope that the ridge and valley province, following the guidelines
that I think the US Geological Survey very

wel l placed in this report that I’m happy to give to all of you. It shows that it would be too risky to the quality of water in the ridge and valley province to allow injection of any type of

contaminant to the soil. Thank you. (5) Gwen Griffith Program Director

Tennessee Environmental
Council 1200

- 4

- 6 general (written) (5)(a)The Tennessee
Environmental Council hereby submits comments on proposed regulations for the UIC

progr am (the Zone Designation for Class I wells) and the issue of state primacy authority

relative to the EPA.

The purpose of the UIC program is to prevent
contamination of underground sources of drinking water by any type of injection well.
TEC believes the UIC regulations must always uphold this goal above all other objectives.

(5)(b) TEC opposes allowing injection of
Class I wastes into underground locations. It is our understanding

that there are no current Class I injection sites in

Tennessee and we

bel ieve they should not

be allowed to resume operations. Class I injections should especially be avoided anywhere near potential

contact with underground sources or potential underground sources of drinking water. A significant portion of Tennessee

relies u pon underground water for drinking water supply. All potential underground water supplies must be strictly protected from even the slightest chance of
contamination from

hazardous waste (5)(a) The

Division concurs

(5)(b) TEC i s correct in that

there are no more
Class I wells in operation in the
State. TEC is

also correct in that a significant portion of

Tennessee relies

upon underground water for drinking water supply. All potential underground water supplies must be protecte d
from

contamination
from hazardous

waste materials

(5)(c) We

understand that TEC is opposed to the process of
Class I wells in

the state. The

Division has worked to provide
the citizens of the
State with the

most technologically acceptable



### 89materials.

(5) (c) We oppose all Class I injection in

Tennessee. Ho wever, if this type of injection is

to be allowed in certain designated zones, it is imperative that the rules allow for absolutely zero possibility of groundwater contamination by judicious site restrictions and by optimal operating procedures at the inje ction sites. Any amendment (as proposed to Chapter

1200

- 4

- 6 pursuant to
T.C.A. 69

- 3

- 105 et seq,)

that allows a variance for deep well injection of

industrial waste into underground water sources of any kind

should not be promulgated.

If Class I injection sites

are to be allowed in designated zones, the promulgated rules must be absolutely clear
about what the allowed

zones are and assure that they are no where
near the vital underground water
sands of West

Tennessee or the regionally deformed
rocks of Eas t
Tennessee. We suggest wording that
clarifies this restriction with clear language indicating that only the specified counties under

1200

- 4

- 6

- .10(2)(b) are

allowed and this will be strictly enforced. approach to the
issues of Class I well placement.

We have also

addressed the placement of the

zones in response to comment (2) (a)

(6) Frances

Lamberts Natural Resources League
of Woman Voters of

Tennessee 1200

- 4

- 6

- .10(2)(c) (written) (6)(h) The League of Women Voters supports a fee system adequate
to make the UIC program self

supporting. We would like to see changes to
the structure of the fee system, however. As now specified in Sect.

4

- 6

- .15, the fixed fees associated with permit application/mainten ance /changes are high while

the variable use cost is (6)(h) In some
areas of the state the only option for

stormwater drainage is through karst systems. Other
areas of the state

do not have adequate sewer

or storm sewer systems to all parts of the area

to cover the expanding



### 90nominal to the point
almost of “no fee.” There is no incentive, we believe, for a permit holder to be sparing
with hazardous waste burial when doing so

costs a mere 50 cents per thousand gallons injecte d. With fixed, permit related fees of at least $7,500 per year (excluding construction and initial operational permit) a perverse incentive toward high injection use instead of

minimal

- injection use is thereby created.

We urge the state to change the fee structure in ways so as to remove any motivation for excessive waste burial, once the costly permit is in place, high waste burial not being in the

state’s best interest. In a similar vein, we would

like to see the state provide strong
incentives to

muni cipalities/industries /developers, for

stormwater run

- off

avoidance and mitigative approaches,
rather than stormwater injection. economic growth

and in those areas the only

alternative is
subsurface disposal.

The State has set
what it feels are adequate fees to supply the working capit ol for
the staff of the UIC program in

combination with EPA primacy money to operate
in their task of protecting the ground water
resources of the
State.

(7) Barry Sulkins Director Tennessee PEER 1200

- 4

- 6

- .10(2)(c) (written) (7) (b) At present th e state does not have primary authority or primacy over the UIC program, and we

understand that the regulations required, including a fee system, are in place to qualify for delegation of the program. We support
this move that would give the state primacy and closer oversight.
We are concerned that state UIC positions may go unfilled, thus undermining the pursuit of primacy. The fee system was developed
to fund the staff to run the program and allow for primacy, and if this is not carried out, efforts

wi ll have been wasted. The present budget
concerns should have little or no impact on this ( 7)(b) The state appreciates your support

(7)(c) See response (2)(a)



### 91matter as the fees system should provide the state’s portion of the
needed funds. The state has expended much effort and spent many years positioning
itself to assum e primacy for this program and it

should not now be
canceled or further delayed. We feel that

Tennessee can do a better job with an in

- state presence, as it is our view that EPA rarely

visits the state and is
inconsistent on inspections and
enforcement. (8) Sandra

Barber Citizen 1200

- 4

- 6 (Oral) (8)(a) My name is
Sandra Barber. I reside
at 728 Genesis Lane in

Knoxville. And this is
somewhere between a question and a comment. I do support

whole

- heartedly the state going for primacy. My own concern or question I might add

— do you think that the state’s budgetary issues right now will allow you

all to.... I am not so
much involved in the permitting, or concerned

about t he permitting, but
the enforcement. Having had personal experience with classified wells, I am very concerned about
the level of
enforcement. Will there be an adequate presence to allow
enforcement of the existing regulations and the new regulations?

An d I do have a question, back to the Class I, of the counties

that are allowed to have
Class I wells. In reading the list of counties, is there anything there excluding all the remaining counties, in that right now these

counties are allo wed but there’s nothing saying that any other counties are not permitted, and if so, why? (8)(a) The state appreciates your support. The fees that are proposed
in these regulations will support the UIC program actions.
The Class I

counties are

addressed in response (2)(a)



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