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[Federal Register Volume 77, Number 45 (Wednesday, March 7, 2012)]
[Notices]
[Pages 13601-13603]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-5534]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-9644-4]

Notice of Proposed NPDES General Permit; Proposed NPDES General 
Permit for New and Existing Sources and New Dischargers in the Offshore 
Subcategory of the Oil and Gas Extraction Category for the Western 
Portion of the Outer Continental Shelf of the Gulf of Mexico 
(GMG290000)

    Summary: The Regional Administrator of Region 6 today proposes to 
reissue the National Pollutant Discharge Elimination System (NPDES) 
General Permit No. GMG290000 for existing and new sources and new 
dischargers in the Offshore Subcategory of the Oil and Gas Extraction 
Point Source Category (40 CFR Part 435, Subpart A), located in and 
discharging to the Outer Continental Shelf offshore of Louisiana and 
Texas. The discharge of produced water to that portion of the Outer 
Continental Shelf from Offshore Subcategory facilities located in the 
territorial seas of Louisiana and Texas is also authorized by this 
permit.
    This draft permit proposes to retain, with certain modifications, 
the limitations and conditions of the existing 2007 issued permit (2007 
permit). The 2007 permit limitations conform with the Oil and Gas 
Offshore Subcategory Guidelines and contain additional requirements to 
assess impacts from the discharge of produced water to the marine 
environment, as required by section 403(c) of the Clean Water Act.
    The following major changes to the 2007 permit are proposed as part 
of the permit reissuance: (1) Define operators for the purpose of this 
permit, (2) delete New Source Exemption language, (3) add toxicity test 
requirement for hydrate control fluids, (4) add spill prevention best 
management practices provision, (5) authorize de minimis discharges 
caused by subsea safety valve testing, (6) require electronic Notice of 
Intent (NOI) and discharge monitoring reporting (NetDMR), and (7) 
establish updated critical dilutions for whole effluent toxicity (WET) 
limitations for produced water.
    Addresses: Comments should be sent to: Ms. Diane Smith, Water 
Quality Protection Division, U.S. Environmental Protection Agency, 
Region 6, 1445 Ross Avenue, Dallas, Texas 75202-2733. Comments may be 
sent electronically to smith.diane@epa.gov.
    Dates: Comments must be received by May 7, 2012. Public meetings 
and hearings on the proposed permit will be

[[Page 13602]]

held at the times and places below. The meetings will include a 
presentation on the proposed permit followed by the opportunity for 
questions and answers. The public hearings will be held in accordance 
with the requirements of 40 CFR 124.12. At the public hearing, any 
person may submit oral or written statements and data concerning the 
proposed permit. Any person who cannot attend one of the public 
hearings may still submit written comments, which have the same weight 
as comments made at the public hearing, through the end of the public 
comment period.
    Date: April 11, 2012.
    Time: 6 p.m.-7:30 p.m. for public meeting and 7:30 p.m.-9 p.m. for 
public hearing.
    Place: Houston Marriott South Hobby Airport, Galveston Room, 9100 
Gulf Freeway, Houston, TX 77017.

    Date: April 12, 2012.
    Time: 5:30 p.m.-7 p.m. for public meeting and 7 p.m.-8:30 p.m. for 
public hearing.
    Place: East Bank Regional Library, Jefferson/Napoleon Rooms, 4747 
W. Napoleon Ave., Metaire, LA 70001.
    For Further Information Contact: Ms. Diane Smith, U.S. 
Environmental Protection Agency, Region 6, 1445 Ross Avenue, Dallas, 
Texas 75202-2733. Telephone: (214) 655-2145. Email address: 
smith.diane@epa.gov. The complete proposed permit, Fact Sheet and a 
copy of the Federal Register notice may also be obtained on the 
Internet at: http://www.epa.gov/region6/water/npdes/genpermit/.
    Supplementary Information:

Statutory and Regulatory History

    The Clean Water Act (``CWA'') establishes a comprehensive program 
``to restore and maintain the chemical, physical, and biological 
integrity of the Nation's waters.'' 33 U.S.C. 1251(a). The CWA also 
includes the objective of attaining ``water quality which provides for 
the protection and propagation of fish, shellfish and wildlife and * * 
* recreation in and on the water.'' 33 U.S.C. 1251(a)(2). To achieve 
these goals, the CWA requires EPA to control point source discharges of 
pollutants to Waters of the United States through the issuance of 
National Pollutant Discharge Elimination System (``NPDES'') permits.
    NPDES permits issued for oil and gas exploration, development, and 
production discharges are required under Section 402(a)(1) of the CWA 
to include conditions for meeting technology-based effluent limits 
established under Section 301 and, where applicable, Section 306. Once 
an effluent limitations guideline or new source performance standard is 
promulgated in accordance with these sections, NPDES permits issued by 
the NPDES permitting authorities must incorporate requirements based on 
such limitations and standards. See 40 CFR 122.44(a)(1). Effluent 
limitation guidelines for the Offshore Subcategory of the Oil and Gas 
Extraction Point Source Category are found at 40 CFR part 435, subpart 
A.
    Regulated Entities. EPA intends to use the reissued permit to 
regulate oil and gas extraction facilities located in the Outer 
Continental Shelf of the Western Gulf of Mexico, e.g., offshore oil and 
gas extraction platforms, but other types of facilities may also be 
subject to the permit. Covered operators would fall primarily under the 
North American Industrial Classification System (NAICS) 211 and 213 
code series (previously the Standard Industrial Classification (SIC) 13 
code series). To determine whether your facility, company, business, 
organization, etc., may be affected by today's action, you should 
carefully examine the applicability criteria in Part I, Section A.1 of 
the draft permit. Questions on the permit's application to specific 
facilities may also be directed to Ms. Smith at the telephone number or 
address listed above.
    Oil Spill Requirements. Section 311 of the Clean Water Act, (CWA or 
the Act), prohibits the discharge of oil and hazardous materials in 
harmful quantities. Discharges that are authorized by NPDES permits are 
excluded from the provisions of Section 311. However, the permit does 
not preclude the institution of legal action or relieve permittees from 
any responsibilities, liabilities, or penalties for other, unauthorized 
discharges of oil and hazardous materials which are covered by Section 
311 of the Act.
    Ocean Discharge Criteria Evaluation. For discharges into waters of 
the territorial sea, contiguous zone, or oceans, CWA section 403(c) 
requires EPA to consider guidelines for determining potential 
degradation of the marine environment when issuing NPDES permits. These 
Ocean Discharge Criteria (40 CFR part 125, subpart M) are intended to 
``prevent unreasonable degradation of the marine environment and to 
authorize imposition of effluent limitations, including a prohibition 
of discharge, if necessary, to ensure this goal'' (45 FR 65942, October 
3, 1980). EPA Region 6 previously determined that discharges in 
compliance with the OCS general permit would not cause unreasonable 
degradation of the marine environment. EPA had also completed a study 
of the effects of produced water discharges on hypoxia in the northern 
Gulf of Mexico and found that these discharges would not have a 
significant impact. (See Predicted Impacts from Offshore Produced Water 
Discharges on Hypoxia in the Gulf of Mexico, Limno-Tech, Inc., 2006). 
Since this reissued permit contains limitations that will protect water 
quality and in general reduce the discharge of toxic pollutants to the 
marine environment, the Region finds that discharges authorized by the 
reissued general permit will not likely cause unreasonable degradation 
of the marine environment. EPA is proposing to require an industry-wide 
produced water and drilling fluid characterization study to obtain more 
representative data to evaluate impacts to water quality.
    Marine Protection, Research, and Sanctuaries Act. The Marine 
Protection, Research and Sanctuaries Act (MPRSA) of 1972 regulates the 
transportation for dumping of materials into ocean waters and 
establishes permit programs for ocean dumping. The NPDES permit EPA 
reissues today does not authorize dumping under MPRSA.
    In addition the MPRSA establishes the Marine Sanctuaries Program, 
implemented by the National Oceanographic and Atmospheric 
Administration (NOAA), which requires NOAA to designate certain ocean 
waters as marine sanctuaries for the purpose of preserving or restoring 
their conservation, recreational, ecological or aesthetic values. 
Pursuant to the Marine Protection and Sanctuaries Act, NOAA has 
designated the Flower Garden Banks, an area within the coverage of the 
OCS general permit, a marine sanctuary. The OCS general permit 
prohibits discharges in areas of biological concern, including marine 
sanctuaries. The permit authorizes discharges incidental to oil and gas 
production from a facility which predates designation of the Flower 
Garden Banks National Marine Sanctuary as a marine sanctuary. EPA has 
previously worked extensively with NOAA to ensure that authorized 
discharges are consistent with regulations governing the National 
Marine Sanctuary.
    National Environmental Policy Act. In connection with its oil and 
gas leasing programs under the Outer Continental Shelf Lands Act, the 
Bureau of Ocean Energy Management of the Department of Interior (BOEM) 
has prepared and published draft environmental impact statements (EIS) 
on potential impacts of oil and gas operations in the Central and 
Western Gulf of Mexico for the 2012--2017 period. BOEM published a 
Notice of Availability of the DRAFT EIS at 76 FR 39435 (December 30, 
2011). EPA is

[[Page 13603]]

a cooperating agency on BOEM's EIS and intends to use that EIS to 
fulfill the National Environmental Policy Act obligations for this 
permit issuance.
    Magnuson-Stevens Fisheries Conservation and Management Act. The 
Magnuson-Stevens Fisheries Conservation and Management Act requires 
that federal agencies proposing to authorize actions that may adversely 
affect essential fish habitat (EFH) consult with NMFS. The entire Gulf 
of Mexico has been designated EFH. EPA intends to adopt the EFH 
analysis BOEM prepared in the above mentioned Draft EIS for lease sales 
in the Western and Central Planning Areas (WPA and CPA). BOEM concludes 
in the Draft EIS that ``Impacts of routine dredging and discharges are 
localized in time and space and are regulated by Federal and State 
agencies through permitting processes; therefore, there would be 
minimal impact to fish resources and essential fish habitat from these 
routine activities associated with a WPA or CPA proposed action.'' BOEM 
also concludes that ``If there is an effect of an oil spill on fish 
resources in the Gulf of Mexico, it is expected to cause a minimal 
decrease in standing stocks of any population. This is because most 
spill events would be localized, therefore affecting a small portion of 
fish populations.'' This permit contains limitations conforming to 
EPA's Oil and Gas extraction, Offshore Subcategory Effluent Limitations 
Guidelines at 40 CFR Part 435 and additional requirements assuring that 
regulated discharges will cause no unreasonable degradation of the 
marine environment, as required by section 403(c) of the Clean Water 
Act. This permit also does not authorize spills or any uncontrolled 
discharges.
    Endangered Species Act (ESA). The National Marine Fisheries Service 
(NMFS) previously concurred with EPA's determination that reissuance of 
the General Permit for the Outer Continental Shelf of the Western Gulf 
of Mexico (OCS general permit) was not likely to adversely affect any 
listed threatened or endangered species or designated critical habitat 
when the permit was reissued in 1991 and 1998 and when it was modified 
in 1993 and 2001. When EPA reissued the OCS general permit in 2004, EPA 
requested written concurrence on EPA's ``may affect but are not likely 
to adversely affect'' determination from NMFS. In a letter dated July 
12, 2004, NMFS provided such concurrence on the 2004 issued OCS general 
permit. When EPA proposed reissuance of the permit in 2006, EPA found 
that changes would not decrease the level of protection the permit 
affords threatened or endangered species. The main changes included new 
intake structure requirements and more stringent whole effluent 
toxicity limits based on sub-lethal effects. Since those changes would 
increase the level of protection, EPA determined that reissuance of the 
permit was not likely to adversely affect any listed threatened or 
endangered species or their critical habitat.
    EPA is evaluating the effects caused by this permit reissuance 
action upon the 2004 consultation baseline. EPA will meet its 
responsibility to fulfill the section 7 of the ESA requirements prior 
to reissuance of this general permit.
    State Water Quality Standards and State Certification. The permit 
does not authorize discharges to State waters; therefore, the state 
water quality certification provisions of CWA section 401 do not apply 
to this proposed action.
    Coastal Zone Management Act. EPA determined that activities 
proposed to be authorized by this reissued permit are consistent with 
the local and state Coastal Zone Management Plans. The proposed permit 
and consistency determination was submitted to the State of Louisiana 
and the State of Texas for interagency review at the time of public 
notice. Concurrence was received from both Louisiana Department of 
Natural Resources and Railroad Commission of Texas on the 2007 permit. 
Both letters of concurrence were dated February 23, 2007. EPA again 
determines that reissuance of this permit is consistent with the local 
and state Coastal Zone Management Plans. The proposed permit and 
consistency determination are submitted to the State of Louisiana and 
the State of Texas for interagency review at the time of public notice.
    Paperwork Reduction Act. The information collection required by 
this permit will reduce paperwork significantly by implementation of 
electronic reporting requirements. EPA is working on an electronic 
notice of intent (eNOI) system so applicants will file their NOIs 
online. EPA estimates that it takes 10 to 15 minutes to fill up all 
information required by eNOI for each lease block, and it takes much 
less time to add, delete, or modify eNOI. EPA will also incorporate an 
electronic discharge monitoring report (NetDMR) requirement in the 
permit. The time for NetDMR preparation will be much less than that for 
paper DMR. The electronic filing systems will also significantly reduce 
the mailing cost.
    Regulatory Flexibility Act. The Regulatory Flexibility Act, 5 
U.S.C. 601 et seq, requires that EPA prepare a regulatory flexibility 
analysis for regulations that have a significant impact on a 
substantial number of small entities. As indicated below, the permit 
reissuance proposed today is not a ``rule'' subject to the Regulatory 
Flexibility Act. EPA prepared a regulatory flexibility analysis, 
however, on the promulgation of the Offshore Subcategory guidelines on 
which many of the permit's effluent limitations are based. That 
analysis shows that reissuance of this permit will not have a 
significant impact on a substantial number of small entities.

    Dated February 28, 2012.
William K. Honker,
Acting Director, Water Quality Protection Division, EPA Region 6.
[FR Doc. 2012-5534 Filed 3-6-12; 8:45 am]
BILLING CODE 6560-50-P
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