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# RCRA Box 321 Prepped by Ryan Dugan



### Document

Number: 

# 254 ) OGRC-S004 1

. A Docket Number: 

# F-93-OGRC-FFFF F

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

Sheet 254of 259TRI P REPORT : CRUD E OI L RECLAIMER S I NWES T TEXA S AND NE WMEXIC O

Submitte d to : U.S . Environmenta l Protectio nAgenc y

Offic e o f Soli d Wast e Wast e Managemen t Division , Specia l Wast e Branc h

40 1 MStreet , S W Washington , D C 2046 0

Novembe r 20 , 199 0

Submitte d by : Scienc e Application s Internationa l Corporatio n

840 0 Westpar k Driv e McLean , V

A2210 2

EPAContrac t No . 68-W0-002 5 SAI C Projec t No . 1-824-03-322-0 5P. 3

INTRODUCTION I nSectio n3001(b)(2)(B ) o f th e Resourc e Conservatio nan d RecoveryAc t (RCRA) , th e Environmenta l Protectio nAgenc y(EPA ) wa s require d t o mak e a regulatorydeterminatio nunde r RCR A Subtitl e C fo r waste s fro mth e exploration , development , and productio no f crud e oil , natura l gas , an d geotherma l energy . EPA' s RegulatoryDeterminatio nfo r Oi l an d Ga s a nGeotherma l Exploration , Developmen t an d Productio nWast e (5 3 Federa l Registe r 25454) , state s tha t among th e waste s no t include d i n th e origina l exemptio nwer e "liqui d an d soli d waste s generate d b y crud e oi l an

d tank bottomreclaimers. " Wit hth e Toxicit y Characteristi c (TC ) (appending 2 5 additiona l organic s t o th e lis t o f toxi c constituents , including benzene ) effectiv e o nSeptembe r 25 , 1990 , thos e waste s exceeding T C regulatorylevel s ar e classifie d a s hazardou s wast e an d thu s requir e managemen t according t o Subtitl e C criteria . Th e crud e oi l reclaimer s hav e no wcome forward an d sai d tha t th e cost s o f disposa l fo r waste s fro mreclaiming operation s wil l dramaticall yincrease . Theyclai mtha t applicatio n o f th e T C t o wast e crud e oi l reclaimer s wil l driv e mos t o f th e them ou t o f busines s an

d forc e industryt o dispos e o f greatl yincrease d volume s o f exemp t crud e oi l waste s on-sit e o r a t exemp t landfills . Th e crud e oi l reclaimer s hav e aske d EPAt o re-examin e th e origina l exemptio nand/o r th e applicabilit yo f th e T C a s i t applie s t o them . A s par t o f EPA' s respons e t o thei r request , thre e sit e visit s wer e made . Th e crud e oi l reclaimer s visite d were : Parabo , Inc . i nEunice , Ne wMexico ; A . A . Oilfiel d Service s i nHobbs , Ne wMexico ; an d 1 s t Clas s Operations , Inc . i n Midland , Texas • . Als o visite d wa s Drilling Mud s Disposal , a drilling fluid s disposa l facilit yadjacen t t o 1 s t Clas s Operations . Th e following give s a lis t o f participant s a t al l th e sit e visits , th e facilit ylocation , th e facilit ypersonne l present , th e Stat e personne l present , a facilit ydescription , an d reclaime d crud e oi l productio ndat a (i f available) . Copie s o f th e slide s take n o nth e facilit yvisit s ar e availabl e upo n request . Participant s i nth e tri p were : Rober t Tonetti , Environmenta l Protectio nAgency ; Krist yAllman , Scienc e Application s Internationa l Corporation ; Ti mSampson , America nPetroleu m Institute ; JerrySimmons , Interstat e Oi l Compac t Commission ; an d Nea l Thurber , Amoc o Corporation .P. 4

FACILITIE S Locatio n# 1 (visited Octobe r 22 , 1990 ) Parabo , In c P.O . Bo x173 7 Eunice , N

M Facilit yan

d Stat e Agenc yParticipant s Davi d Boyer , Environmenta l Burea u Chie f Oi l Conservatio n Division , Energy , Minera l an

d Natura l Resource s Division , Stat e o f Ne wMexic o . Roge r Anderso n Oi l Conservatio nDivision , Energy , Minera l an

d Natura l Resource s Division , Stat e o f Ne wMexic o Ji mBritton , Presiden t UnichemInternationa l Charle s N . Root , Manage r Personnel , Safet y& RegulatoryAffair s UnichemInternationa l Wayn e Pric e UnichemInternationa l Richar d Brakey , Divisio nManage r Parabo , Inc . ( a subsidiaryo f Unichem ) Parab o Facilit yProces s Parabo , Inc. , a subsidiaryo f UnichemInternational , i s a produced-brine-wate r disposa l an d crud e oi l reclamatio nfacilit y (Se e Figur e 1) . Th e Parab o facilit yreceive s thre e type s o f waste ; produce d water , tank bottoms , an d off-spe c crud e oil . Th e waste s ar e brough t t o th e facilit yb yth e Rowland Trucking Company , a subsidiaryo f Unichem . Theyrecove r crud e oi l fro m exemp t E& P waste s b y(1 ) skimming th e off-spe c crud e oi l tha t separate s fromth e produce d wate r i nth e produced-wate r storag e tank s and (2 ) separating th e crud e oi l an d basi c sedimen t & wate r (BS&W ) i na hea t treatmen t process . Currently , the yar e no t operating th e hea t treatmen t portio n o f th e crud e oi l reclamatio n operation , bu t ar e stil l skimming th e off-spe c oi l fromth e produce d water . I f th e crud e oi l fro mth e produce d wate r contain s les s tha n 1 % BS&W , i t i s place d i n a storag e tank an d the nsol d t o th e pipelin e compan

ya s marketabl e crud e oil . Prio r t o th e effectiv e dat e o f th e T C Rule , i f th e off-spe c crud e oi l containe d greate rP. 5

Figur e 1 

### PARABO , INC . EUNICE , N M

Produce d Wate r Produce d Water , Off-spe cCrud e Oi l an d Tan k Bottom s Off-Spe cCrud e Oi l an d Tan k Bottom s

Crud e Oi l

Storag e Tank s

On-site State Permitte d Surface ImpoundmentsP. 6

tha n1 % BS&W , i t wa s pipe d t o a hea t exchange r an d heate d t o betwee n160° F an

d 180°F . Achemica l emulsio nbreake r wa s adde d t o separat e th e oil , BS&W , an d water . Th e crud e oi l wa s remove d an d store d on-sit e unti l i t wa s sen t t o th e pipelin e a s marketabl e crud e oil . Th e BS& Wwa s place d int o a non-sit e surfac e impoundment , whic hi s permitte d b yth e State . Parab o dispose s o f produce d wate r resulting fro m th e skimming operatio n b yplacin g i t i non e o f si xsurfac e impoundment s an d allowing th e wate r t o evaporate . Note s o f interest : Th e facilit yappeare d t o b e neatl ykep t wit hn o visibl e spill s o r leaks . Th e tota l o f 8 unline d surfac e impoundment s ( 6 produce d water , 1 drilling fluid s (withconsiderabl e oi l content) , an d 1 BS&W ) i s i na grave l quarrywhic hi s underlai nb y90-40 0 fee t o f Triassi c redbe d clay . Th e impoundment s ar e configure d i na treatmen t trai nfo r th e floatatio no f oil . Th e facilit yi s surrounde d b y approximatel y8 0 ground-wate r monitoring wells . Th e closes t potabl e ground-wate r sourc e i s approximatel y3 mile s t o th e southwes t (i t i s primaril yuse d fo r watering o f livestock) . Th e ground-wate r surrounding th e Parab o facilit yi s highl y mineralize d saltwater , therefor e unsuitabl e fo r us e a s drinking water . Davi d Boye r sai d tha t du e t o a nimproperl ybuil t dik e betwee ntw o impoundment s o nth e eas t sid e o f th e facilit ysome produce d wate r migratio n occurre d int o th e unsaturate d zon e tha t wa s detecte d b y th e monitorin g wells . Wit hth e installatio no f a Frenc hdrai n downt o th e redbe d clay , Parab o i s currentl yi nth e proces s o f correcting th e situatio n unde r th e supervisio no f th e Stat e o f Ne wMexico . Davi d Boye r als o sai d tha t th e monitoring well s hav e no t detecte d migratio n fro m th e BS& Wimpoundment . Th e BS& Wimpoundmen t i s currentl yholding approximatel y50 0 thousand barrel s o f BS& Wwaste . I t i s approximatel y25 0 fee t wide , 45 0 fee t long an d 8 0 fee t deep . I nth e earl y1980's , prio r t o Parab o ownership , th e BS& Wpi t wa s use d fo r tank bottom storag e an

d ha s considerabl e recoverabl e oil . Parab o ha s contracte d a compan ywit ha heate r barg e t o recove r th e oi l fro m th e pit . Sinc e th e effectiv e dat e o f th e TC , thi s operatio nha s bee nstopped . Parab o di d performth e T C analysi s o nthei r wast e an d sai d they woul d provid e EPAwit ha cop yo f th e results .P. 7

Locatio n# 2 (visited Octobe r 22 , 1990 ) A.A . Oilfiel d Services , Inc . P.O . Bo x520 8 Hobbs , N

M88241-520 8 Facilit yan

d Stat e Agenc yParticipant s BarryA . Peters , Vic e Presiden t A.A . Oilfiel d Services , Inc . Davi d Boyer , Environmenta l Burea u Chie f Oi l Conservatio nDivision , Energy , Minera l an

d Natura l Resource s Division , Stat e o f Ne wMexic o Roge r Anderso n Oi l Conservatio nDivision , Energy , Minera l an

d Natura l Resource s Division , Stat e o f Ne wMexic o Facilit yDescriptio n A . A . Oilfiel d Service s i s a produced-wate r disposa l an d crud e oi l reclamatio n facilit ywit ha non-sit e permitte d Clas s I I underground-injectio nwel l (se e Figur e 2) . Prio r t o Septembe r 25 , 1990 , A . A . reclaime d crud e oi l fro m off-spe c crud e oil , stoc k tank bottom s an d b yskimming crud e oi l fro m produce d brin e water . Th e incoming off-spe c crud e oi l an d tank bottom s wer e store d i n 1000-barre l storag e tank s unti l place d i nth e hea t exchanger . Th e off-spe c crud e oi l o r tank bottom , wit ha BS& W quantit yabov e 1% , wa s place d i non e o f tw o 500-barre l hea t exchanger s wher e th e temperatur e wa s raise d t o approximatel y 180°F , allowing fo r th e separatio no f crud e oil , produce d wate r an d BS&W . Th e crud e oi l wa s the nplace d int o on e o f four 1000

- barre l storag e tank s an d sol d a s marketabl e crud e oi l t o th e pipeline . Th e produce d wate r wa s place d int o on e o f tw o 1000

- barre l storag e tank s t o late r b e injecte d int o thei r Clas s I I UI C well . Th e BS& Wwa s the nsen t t o a Stat e permitte d disposa l facility , suc ha s th e Parab o facility . Note s o f interest : Th e facilit yappeare d t o b e neatl ykep t wit hn o visibl e leak s o r spills . Th e reclamatio n are a wa s o na pad o f crushe d stone. . During th e sit e visit , a truc k wa s off-loading produce d water . Du e t o th e typ e o f storag e facilit yth e produce d wate r wa s take n from , th e wate r wa s screene d int o a hal f submerge d underground storag e tank , t o remov e an ylarg e particle s suc ha s stick s o r leaves . Th e produce d wate r wa s the npumpe d int o on e o f tw o 1000

- barre l storag e tank s prio r t o underground injection .Figure 2 

### A.A . OILFIEL D SERVICES , IN C

HOBBS , N M P. 8

\r"

Produce d Wate r
On-site Stat e Permitte d Undergroun d Injectio n Wel l Produce d Water , Off-spe cCrud e Oi l an d Tan k Bottom s Off-Spe cCrud e Oi l an d Tan k Bottom s
Ye s

Hea t Exchange r

- . BS&

W Crud e Oi l Crud e Oi l

Storag e Tank s

Off-site State Permitte d Surface Impoundmen tP. 9

A.A . ha s no t performe d a T C analysi s o f thei r waste . Productio nDat a (barrels ) Wast e Produce d Yea r 198 4 198 5 198 6 198 7 198 8 198 9 Produce d Wate r

575,12 5 705,50 1 608,63 3 554,02 8 444,26 7 564,42 6 1990( 8 mos. ) 351.56 0 Tota l 3,803,54 0 BS& W 10,12 5 12,42 0 10,71 5 9,75 3 7,82 1 9,93 6 6.18 9 66,95 9 Tota l

585,25 0 717,92 1 619,34 8 563,78 1 452,08 8 574,36 2 357.74 9 3,870,49 9 Recovere d Oi l

4,33 7 5,07 5 3,96 6 4,03 5 4,45 0 4,89 6 6.24 4 33,00 3 Note : Productio ndat a wer e provide d b yBarryPeter s i na lette r t o Rober t Hall , U.S . EPA . Locatio n# 3 (visited Octobe r 23 , 1990 ) 1 s t Clas s Operations , Inc . Odess a Reclamatio n# 1 322 3 Frankli n Midland , TX7970 1 Facilit yan

d Stat e Agenc yParticipant s Du bHuckabee , Presiden t 1 s t Clas s Operations , Inc . ( a subsidiaryo f CubEnterprises ) Ro nHuckabee , Presiden t CubEnterprise s Pau l M . Bohannon , Attorne y Porte r & Clement s Charle s Ross , Assistan t Distric t Directo r Oi l an d Ga s Division , Texa s Railroad Commissio n Stat e o f Texa s Facilit yDescriptio n Th e 1 s t Clas s Operation s Facilit yreclaim s crud e oi l strictl yfromstoc k oi l tank bottom s (se e Figur e 3) . Th e off

spe c crud e oi l i s pu t i nthei r hea t exchange r an d th e temperatur e i s brough t t o approximatel y180°F . Fraction s o f crud e oil , produce d water , an d BS& Wseparate , an d th e crud e oi l (approximatel y4 percen t BS&W ) i s remove d an d place d i non e o fP.1 0

Figure 3 

### 1 S T

### CLAS S OPERATIONS , INC . MIDLAND , TX

Off-spe cCrud e Oi l an d Tan k Bottom s Off-Spe cCrud e Oi l an d Tan k Bottom s

Crud e Oi l

Storag e Tank s

Off-site State Permitte d Surface Impoundmen tp . 1 1

fro mth e hea t exchange r an d place d i non e o f tw o 1000-barre l storag e tank s fo r late r disposa l a t a noff-sit e State-permitte d produce d wate r disposa l facility . Th e remaining BS& Wi s remove d an d take nt o a Stat e permitte d lan d disposa l facilit yfo r non hazardou s waste . Note s o f interest : Th e facilit yappeare d t o b e neatl ykep t wit hn o visibl e spill s o r leaks . Du bHuckabe e state d tha t sinc e th e effectiv e dat e o f th e TC , an d th e los s o f potentia l revenu e resulting fro mth e increas e in"th e pric e o f crud e oil , theyhav e los t $5 5 t o $6 0 thousand du e t o th e closur e o f thei r facility . H e als o sai d tha t theydi d no t performth e T C analysi s o nthei r wastes . Du e t o th e lowgravit yo f crud e oi l 1 s t Clas s ha s produced , they sol d i t t o a produce r o f highgravit ycrud e oil , wh o mixe d th e tw o grade s t o produc e a marketabl e grade , an d sol d i t t o the . pipeline . Productio nDat a (barrels ) 199 0 ( 8 mos. ) Tota l Amoun t o f Tota l

Wast e Treate d 16,66 5 Calculate d

Produce d BS& W 6,64 7 Calculate d

Reclaime d Oi l 10,01 8 Note : Productio ndat a wer e provide d b yGeraght y& Miller , Inc . Locatio n# 4 (visited Octobe r 23 , 1990 ) Drilling Fluid s Management , Inc . Canyo nStree t Midland , TX7970 1 Facilit yan

d Stat e Agenc yParticipant s Du bHuckabee , Presiden t 1 s t Clas s Operations , Inc . ( a subsidiaryo f Cu bEnterprises ) Ro nHuckabee , Presiden t CubEnterprise s Pau l M . Bohannon , Attorne y Porte r & Clement s Charles " Ross , Assistan t Distric t Directo r Oi l an d Ga s Division , Texa s Railroad Commissio n Stat e o f Texa sP.1 2

Facilit yDescriptio n Drilling Mud s Disposa l (DMD ) i s a Stat e permitte d drilling fluid s disposa l facility . The yd o no t reclai mcrud e oil . Th e mud s ar e brough t i nb ytruc k an

d place d int o on e sectio no f th e line d surfac e impoundment . Ther e i s on e line d surfac e impoundmen t divide d b y5 unline d earthe nberm s (creating si x sections ) configure d i na treatmen t train . Afte r th e mud s ar e place d int o th e surfac e impoundment , a company-patente d treatmen t techniqu e i s used ; a biologica l stimulan t i s mixe d wit hth e wast e i nth e impoundment . Note s o f Interest : Th e facilit yappeare d t o b e neatl ykep t wit hn o visibl e spill s o r leaks . Ther e wer e n o visibl e tear s i nth e surfac e impoundmen t liner . DM D i s currentl yi n th e proces s o f closing th e firs t berme d sectio no f th e surfac e impoundment . DMD i s permitte d t o dispos e o f BS& Wfro m tank bottoms , although i t wa s no t clea r t o wha t exten t theyar e being dispose d o f onsite . The yar e als o permitte d t o accep t contaminate d soils . Whil e a t th e facility , a truc k carrying contaminate d soil s wa s off-loading . Ther e i s some join t ownershi p o f DMD wit h1 s t Clas s Operations . Thes e tw o facilitie s ar e immediatel yadjacen t t o on e another . CONCLUSION A s o f Septembe r 25 , 1990 , th e effectiv e dat e o f th e TC , th e thre e crud e oi l reclamatio nfacilitie s visite d had voluntaril y shutdown . Bot hStat e representative s sai d tha t mos t o f th e crud e oi l reclaimer s wer e stil l operating , no t becaus e the ymee t th e T C criteria , bu t du e t o th e fac t tha t theyar e unawar e o f th e regulation . Th e Stat e o f Texa s sai d tha t i n th e following week s theywer e planning t o begi nenforcemen t proceeding s agains t thes e reclaimers .

1 0