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1 STAT E O P NE W MEXIC O '•

ENERGY , MINERAL S AN O NATURA L RESOURCE S DEPARTMEN T

OI L CONSERVATIO N DIVISIO N •

QARRE Y CABRUTHER S

(JOvERNgf l 

## MEMORANDU M POS T OFFICE BO

X JQ8 8 STAT E (.As p grric e flUILDii*J SANT A f 6 . NE W MEXIC O 8 7 JO * (608)887-560 0 I TO : GOVERNO R GARRE Y CARRUTHERS , Governor Stat e o f Ne w Mexic o ANIT A LOCKWOOD , Secretar y Energy , Mineral s an d Natural Resource s Departmen t THRU : WILLIA

M J . LEMAY , Directo r Oi l Conservatio n Divisio

n FROM : DAVI

D G . BOYER , Environmenta l Burea u Chie f Of l Conservatio n Divisio

n SUBJECT : IMPLEMENTATION O F "BENZEN E STANDARD " B Y EP A WIT H RESULTIN G LOS S O F DOMESTIC CRUD E OI L DATE : SEPTEMBE

R 12 , 199 0 W e ar e deepl y concerne d about

ane w Environmenta

l Protectio n Agenc

y (EPA ) rul e tha

t wil l decreas e th e amoun

t o f crud e oi l an d refined petroleu mproduc t availabl e domestically . W e hop e tha

t th e rul e b e reconsidere d fo r th e activitie s listed below , o r tha t its Implementatio n a

t leas t b e delayed durin

g th e current

Persia n Gul f energy crise s an

d reexamined a

t alater date . O n Septembe

r 25th , th e EP

A rul e directin g us e o

f th e Toxicit

y Characteristi c Leaching Procedur e (TCLP) an

d addin g toxicit y constituen

t regulator y level s become s effective . O n tha t dat e material s containing benzene , anatura l componen

t o f crude oil an

d refine d gasoline , wil

l b e regulate d as RCR

A hazardou s waste s i

f benzen e level s excee

d th e promulgate d level . Certai n wast e material s ar e exclude

d fromthi s regulatio n includin g crude oi l exploratio n an

d productio n wastes , an

d waste s fro

mclean*u p o f spille d petroleum product s fro

munderground storag e tank s a t gasolin e servic e stations . However , tw o activitie s closel

y associate d wit

h th e abov e exclusion s wer e not s o exempte d an

d wil l b e require d t o compl

y wit h burdensom

e an d costl y hazardou s wast

e regulation s tha

t wil l hav e anegative impac t

o n bot h petroleu mavailabilit

y an d o n environmenta

l cleanup s takin

g plac e unde

r othe r law s an d regulations .P. 4
' IOC t TEL=405-525-359 2 Oc t 05,9 0 1 0 = 4 4 No.00 3 P.0 4 •OCT - l--* © n o N i > 4 : i © OI L CONSERVATIO N ni y p.©- * N 1 MEMORANDU

M Septembe r 12, 199 0 Pag e -2

- I n Ne w Mexico an

d othe r oi l producing state s crud

e oi l ma y becom e contaminate d wit

h sedimen t an d wate r tha t make s i t unmarketabl e withou

t treatment . For

example , pipeline s commonl y wil l no t accep t crude oi l wit h greate r tha n 1 t o 2% sedimen

t an d water . Tan

k botto msediment s als o contain crud e oi l tha t ca n b e reclaimed . Facilitie s tha t treat o r reclaimoi l t o mak e i t marketabl e ar

e generall y locate d o

n th e sam

e site s a s facilitie s disposin g o f exempte d exploratio n and production waste . However , beginning Septembe r 25t h wast e fro moi l reclamatio n activitie s must b e kep t separate , an

d b e permitte d an

d disposed o

f a s hazardou s wast

e eve n thoug h i t i s identica l chemicall

y t o othe r wast e disposed o f a t th e site . Afte

r tha t date i s mus

t b e shippe d off-sit

e an d ou t o f Ne w Mexic o t o b e Incinerated . Th e regulator y burden , expens e an

d tim e o f hazardou s wast

e permittin g an d cost o f alternativ e disposa

l wil l almost certainl y caus e reclaimer s t o shu t facilitie s causin g a n estimate d crude oi

l productio n los s i

n exces s o f 10,00 0 barrel s per

mont h i n Ne w Mexic o alone . Facilitie s treatin g o r reclaimin g oi l should continu e t o remai n exempt fro mhazardou s wast

e regulations . Ne w Mexico als o ha s anumbe r o f oil refineries , som

e o f whic h close d prio r

t o 1980 . Olde r refinerie s operate d prio r

t o today' s groun

d wate r an d environmenta

l protectio n rules , an d operatin g practice s an

d spill s ofte

n cause d los s o f refined produc t

and groun d wate

r contamination . Ne

w Mexic o currently ha s a

n extensiv e produc t recoveiy and ground wate

r cleanu p progra moperatin g fo

r bot h active an

d inactive refiner

y site s under

state rules . Recover y technique s an

d wast e produc t treatment ar e almos t identica l t o thos e utilize d a

t gasolin e statio n cleanups . Refined produc t recovered fro

mcleanup s i s recycled and wast e wate r i s treate d t o remov e dissolve d hydrocarbons . On e Ne w Mexico refiner

y ha s recovere d 31,00

0 barrel s o

f produc t since 198

2 an d it s value ha s pai d fo

r th e cos t o f recovery . Thi s petroleu mrecover y i s jeopardize d i

f wate r recovere d concurrentl

y wit h th e petroleumis classifie

d a s ahazardou s wast

e becaus e o

f th e dissolve

d benzen e content . Equall y important , ground wate

r an d environmenta

l cleanup s a

t thes e location s wil

l b e hindered , i f no t postponed . Again , thi s i s becaus e o f th e expens e an

d burde n o

f obtainin g federa l permits , including th e cos t o f additiona l extensiv e hydrogeologic investigation s tha t wer e alread y require d as par

t o f th e stat e cleanu p process . Facilitie s require d b y stat e la w t o perfor mthes e specialize d produc t recover y an d cleanu p operation s should b e allowe d flexibilit y o f operatio n an d not

have rule s impose

d tha t ar e counterproductiv e t

o bot h petroleumproduc t

recover y and environmenta

l cleanup . cc : Willia

mJ . Riley , EP

A Administrato

r Jame s D . Watkins , Secretar y o f Energ y N.M . Congressiona

l Delegatio n