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# RCRA Box 321 Prepped by Ryan Dugan



### Document

Number: 

# 216)OGRC-S0016. A Docket Number: 

# F-93-OGRC-FFFF F

Printed 5/8/2007 3:36:31 PM

Sheet 216 of 259P. 2 

## 06^C-soof4>. A

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TH E GOAL O F THI S REQUES T I S T O IDENTIF Y TH E ADVERS E IMPAC T TO TH E NATIO NARISIN G OU T O F TH E APPLICATIO NO F RCRAE& P

NONEXEMP T STATU S T O WAST E CRUD E OI L RECLAIMERS .

SUBMITTE D BY : VARIOU S TEXA S

AND NE W MEXIC O WAST E CRUD E OI L RECLAIMER SP. 3

Tabl e o f Content s
1 . TH E PARTIE S INVOLVE D 1.1 . Participatin g Reclaimer s 1.2 . Anticipate d Meetin g Attendees , 2 . SUMMAR Y O F WAST E CRUD E OI L ORIGI NAN D RECLAIMIN G PROCEDURE S 3 . SUMMAR Y O F TH E PROBLE M 6 4 . SUMMAR Y O F TH E RECLAIMER S • POSITIO N8 5 . I T I S BELIEVE D THA T EP AINTENDE D TH E REGULATOR Y DETERMINATIO NT O APPL Y T O REFINER Y RECLAIMERS , NO T T O UPSTREA M RECLAIMER S 1 0 6 . I NTH E REPOR T T O CONGRESS , EP ASTATE D THA T PRIMAR Y FIEL D OPERATION S PIVOTE D O NDELIVER Y T O ACARRIE R FO R TRANSPOR T T O AREFINER Y O R REFINER , 7 . TH E NONEXEMP T STATUS , COUPLE D WIT H TH E NE W TC , WIL L B E CONTRAR Y T O EPA' s GOA L O F WAST E SEGREGATIO NI NTH E OILFIEL D 1 3

18 1 8 , TH E T C REGULATIO NAN D WAST E CRUD E OI L , 8.1 . Th e TCL P wa s Designe d fo r Municipa l Landfills , Applicatio n o f th e T C i s Contrar y t o Wast e Minimizatio n , Th e T C wa s Propose d Withou t Significan t Consideratio n t o Wast e Crud e Oi l Reclaimer s 8. 2 8. 3 I ,21 | ,24 ! I 25 j i 

## I i 2 6 I 9 . PROPOSE D SOLUTION S 2 9P. 4

Appendice s I
A . CONSULTAN T RESUME S 31 ! B . LETTER S O F SUPPOR T 3 2 C . TH E REGULATOR Y DETERMINATIO N3 3 ' D . TH E T C FEDERA L REGISTE R 34 1 I E . TH E IOC C DRAF T REPOR T 35 j i i i Lis t o f Figure s 1 . COST ' ANALYSI S ASSUMPTION S FO R E& P WAST E DISPOSA L UNDE R i RCR A16 ! 2 . COS T ANALYSI S FO R E& P WAST E DISPOSA L UNDE R RCR A1 7 jP. 5

i Reques t b

yWast e Crud e Oi l Reclaimer s i : Septembe r 18 , 199 0 Pag e -2
-

1 . TH E PARTIE S INVOLVE D

Th e partie s directl yinvolve d i n thi s reques t ar e variou s Texa s an

d Ne wMexic o wast e crud e oi l reclaimers . Th e Texa s Railroa d Commissio n an d th e Ne wMexic o Oi l Conservatio n Divisio n hav e expresse d thei r suppor t i n principl e fo r thi s request . Representative s o f th e America n Petroleu mInstitut e (API) , Independen t Producer s Associat e (IPA ) an d th e Permian Basi n Petroleu

mAssociatio n (PBPA ) similarl yhav e supporte d thi s reques t i n principle .

l.i . Participatin g Reclaimer s
Th e crud e oi l reclaimer s involve d i n thi s reques t are :

TEXA S WAST E CRUD E OI L RECLAIMER S Alban yTank Cleaning , Inc . Bo x 90 1 Albany , Texa s 7864 8 Ama l Oi l Compan

y 42 2 PerryBrook s Bldg . Austin , Texa s 7870 1 Atacos a Energ

yCorp . P.O . Bo x 2 3 6 jourdanton , Texa s 7802 6 Dodso n Inc . Rt . 5 , BOX 36 0 D Sa n Antonio , Texa s 7822 1 E& E Enterprises , Inc . P.O . BO X 68 3 Brownfield , Texa s 7931 6 Gul f Tan k Cleanin g Corp . 120 5 Berkle y Houston , Texa s 7701 2P. 6

j Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 199 0 Pag e-3 - • \ Midwester nReclamatio n P.O . Bo x 139 5 Snyder , Texa s 7954 9 NABC O 10 4 Teakwood , Ste . 2 Victoria , Texa s 7790 1 NE W MEXIC O RECLAIMER S A AOilfiel d servic e 3 22 1 W . count yRoa d Parabo , Inc . Hobbs , Ne wMexic o 8824 0 P.O . Bo x149 9 Hobbs , Ne wMexic o 882 4 0 Gand yCorp . P.O . Bo x 82 7 Tatum , Ne wMexic o 8826 7 Letter s o f suppor t ar e attache d a s Appendi x "A" .

. 1 • \} Anticipate d Meetin g Attendee s Thos e anticipate d t o b e i n attendanc e a t th e meetin g wit h EPAwil l include :
Dub Huckabe e CubEnterprise s Midland , Texa s Wayn e Pric e Parabo , Inc . Hobbs , Ne wMexic o stev e Ree d Geraght y& Mille r Midland , Texa s Pau l Bohanno n Porte r & Clement s Midland , Texa s Barrypeter s A AOilfiel d Servic e Hobbs , Ne wMexic o Charle s Roo t Parabo , Inc . Hobbs , Ne wMexic o Teres a salamon e Geraght y& Mille r Midland , Texa s Ann a Woo d Porte r & element s Houston , Texa s Consultan t resume s ar e attache d a s Appendi x"B "P. 7

Reques t b

yWaste Crud

e Oi l Reclaimer

s Septembe r 18 , 199 0 Pag e -4
- >

\

2 . SUMMARY O F WAST E CRUD E OI L ORIGI NAND RECLAIMIN G PROCEDURE S
Crud e oi l reclaimer s accep t wast e crud e oi l an d als o purchas e off-specificatio n crud e oi l generate d a t exploratio n an d productio n (E&P ) sites . Th e crud e oi l reclaimer s ar e centra l reclaiming facilitie s tha t ar e locate d nea r th e E& P sites . Reclaimer s off-loa d th e E& P waste s int o a fiel d storag e tank . Th e wast e crud e oi l i s the n directe d t o a tank i n whic hdemulsifyin g agents , identica l t o E& P agent s use d frequentl ya t th e wellhead , i s applied . Durin g thi s stage , hea t i s als o applied . Th e wast e oi l separate s int o marketabl e grad e crud e oi l an d basi c sedimen t an d wate r (BS&W ) [wastewate r storag e tan k bottoms , an d demulsifyin g tan k bottoms] . Reclaimer s the n sel l th e crud e oi l t o refiners , dispos e o f th e wastewate r int o Clas s I I injectio n well s and/o r stat e permitte d evaporatio n impoundments , an d dispos e o f th e tank bottom s i n permitte d landfills . Th e societa l benefit s o f wast e crud e oi l reclamatio n ar e bot henvironmenta l an d economic . Th e environmenta l benefit s include : wast e minimization , segregatio n o f th e E& P wastes , an d drasti c reduction s o f on-sit e disposa l o f E& P wastes . Th e economi c benefi t o f wast e crud e oi l reclamatio n i s tha t a; Request b y Wast e Crud e Oi l Reclaimer

s j ! Septembe

r 18 , 199 0 ! | Pag e -5 - \\ I substantia l volume o f marketabl e grad e domesti c crud e oi l i s returne dt o th e energy strea m — rathe r tha nbein g dispose do f a t th e wellsite . P. 8P. 9

Reques t b

y Wast e Crud

e Oi l Reclaimer s September 18 , 199 0 Pag e -6 - "•

:

3 . SUMMAR YO F TH E PROBLE M Accordin g t o EPA' s RegulatoryDeterminatio n fo r Oi l an d Ga s an d Geotherma l Exploration , Developmen t an d Productio n wastes , issue d o n Jul y6 , 198 8 ("Regulator yDetermination" ) (Appendi x "C") , liqui d an d soli d waste s generate d b ycrud e oi l an d tank bottomreclaimer s ar e no t include d i n th e origina l E& P Exemption. 1 Eve n thoughcrud e oi l reclaime r waste s ar e sai d t o hav e nonexemp t status , thes e waste s wer e no t subjec t t o Subtitl e C regulation s becaus e E& P wast e crud e oi l tank bottom s an

d wastewate r wer e no t liste d wastes , no r di d they exhibi t an

yo f th e characteristic s o f a hazardou s waste .

o n Septembe r 25 , 199 0 th e Toxicit yCharacteristi c Leachin g Procedur e (TCLP ) become s effectiv e an d replace s th e EP-Tox . Th e T C regulatio n (Appendi x"D" ) add s 2 5 organi c chemical s (includin g benzene ) t o th e lis t o f toxi c constituent s an d establishe s regulator ylevel s fo r thes e organi c chemicals . Th e overal l effec t o f th e T C i s t o subjec t additiona l wastes , including thos e generate d b ywast e crud e oi l reclaimers , t o Subtitl e C regulations . I f thi s occurs , th e cost s o f disposa l fo r wast e crud e oi l reclaimin g tan k bottom s wil l dramaticall yincrease .P.1 0

Reques t b

y Waste Crud e oi l Reclaimer s Septembe r 18 , 199 0 Pag e -7 -
Th e concer n fro

man environmenta l standpoin t i s tha t whe n confronte d wit han estimate d tank bottomincineratio n cos t o f $550.0 0 pe r drum . Ther e ar e 3.6 8 yd. 3 t o a dru m o f tan k bottoms . Eac hdru mo f wast e crud e oi l bears , o n average , .27 2 yd. 3 o f tan k bottoms . I t wil l n o longe r b e economicall y feasibl e fo r industryt o continu e sending th e wast e crud e oi l t o reclaimers . E& P operator s wil l likel ydispos e o f wast e crud e oi l on-site . Moreover , th e applicatio n o f TCL P t o wast e crud e oi l reclaimer s wil l adversel yimpac t th e wast e minimizatio n benefit s directl yassociate d wit hwast e crud e oi l reclaimin g operations .P.1 1

j Reques t by

Wast e Crud e Oi l Reclaimer s j ; Septembe r L8 , 199 0 • I Pag e -8 - "•; . ! i * '

4 . SUMMAR Y O F TH E RECLAIMERS ' POSITIO N

Th e wast e crud e oi l reclaimer s involve d i n thi s reques t espous e th e followin g positions :
1 . Afte r reviewing th e statutoryauthorities , statutory history , an

d regulatoryhistories , i t appear s tha t EPAwa s mos t concerne d wit hrefinin g reclaimers . Ther e i s littl e evidenc e tha t consideratio n wa s give n t o upstrea mcrud e reclaimers . I f thi s i s correct , the n a simpl e clarificatio n o f th e exemptio n languag e i n th e Regulator yDeterminatio n woul d b e sufficient . 2 . I n th e Repor t t o Congress , EPAstate d tha t th e key t o "associate d wastes " wa s whethe r th e materia l derive d fro m "primaryfiel d operations. " EPAexplaine d i n th e Repor t t o Congres s tha t "primar yfiel d operations " mean s thos e productio n relate d activitie s whic hoccu r befor e deliveryo f th e crud e oi l t o a carrie r fo r transpor t t o a refine r o r refinery . Becaus e thes e wast e oi l reclaimer s ar e no t refiners , the yar e upstrea mo f refinin g reclaimers . Therefore , thes e wast e crud e oi l reclaimer s ar e withi n th eP.1 2

, '

I Reques t b

y Wast e Crud e Oi l Reclaimer s Septembe r 18 , 199 0 Pag e -9 - notio n o f a "primar yfiel d operation. " Th e Regulator y Determinatio n eithe r shoul d b e change d t o clarifie d t o reflec t thi s conclusion . 3 . Clarificatio n o f th e wast e crud e reclaimers ' statu s woul d facilitat e EP Aand Congressiona l policie s o f wast e minimization , wast e segregatio n i n th e oilfield , an d minimizin g disposa l o f wast e crud e oi l onsit e o r i n exemp t landfills . 4 . Th e T C regulatio n preambl e specificall ystate s tha t onc e a materia l i s exempt , th e T C regulatio n doe s no t apply . Th e TCL P wa s designe d fo r municipa l landfills , a wors t cas e co-disposa l scenario . Th e ris k wa s deeme d byEP At o b e substantiall yles s whe n a dedicate d disposal facilit ywa s utilized . Arevie wo f th e T C regulatorypreambl e disclose s n o evidenc e tha t thes e wast e crud e oi l reclaimer s wer e though t t o hav e bee n withi n th e ambi t o f th e regulation . iP.1 3

Reques t b

y Wast e Crud

e oi l Reclaimer s September 18 , 199 0 Pag e -10 - ;. :

5 . I T I S BELIEVE D THAT EPAINTENDE D TH E REGULATORY DETERMINATIONT O APPL Y T O REFINERY RECLAIMERS . NO T T O UPSTREA

M RECLAIMER S
Th e E& P exemptio n i s a statutor ycreature . Sectio n 6921(b)(2)(A ) provides : Notwithstandin g th e provision s o f paragrap h(1 ) o f thi s subsection , drillin g fluids , produce d waters , and othe r waste s associate d wit hth e exploration , development , o r productio n o f crud e oi l o r natura l ga s o r geotherma l energyshal l b e subjec t onl yt o existin g Stat e o r Federa l regulatoryprogram s i n lie u o f thi s subchapte r unti l a t leas t 2 4 month s afte r Octobe r 21 , 1980... . congres s furthe r directe d EPAt o conduc t a stud ya s require d unde r 4 2 U.S. C §6982(M ) an d t o us e th e stud yt o determin e whethe r o r no t t o promulgat e regulation s fo r drillin g fluids , produce d waters , an d othe r waste , associate d wit hth e exploration , development , o r productio n o f crud e oi l o r natura l ga s o r geotherma l energy. 2 4 2 U.S.C . §6921(b)(2)(B) . Congres s requeste d tha t EPAtransmi t it s decision , along wit han yregulations , i f necessary , t o bot h House s o f Congress .P.1 4

Reques t b y Wast e Crud e Oil Reclaimer

s Septembe r 18 , 199 0 Pag e -11 - -.

-
Indirec t respons e t o Congress ' request , EP A submitte

d it s Repor t t o Congres s entitle dRepor t t o Congress . "Managemen t o f Waste s fro m Exploration . Development . an d Productio

no f Crude Oil . Natura l Gas , an dGeotherma l Energy . (Executiv

e Summaries , U.S . EPA/530-SW-88-003 , 12/87)("Repor t to Congress") . The origina l listin g o f exempt/nonexemp t E&P material s i

nth e Repor t t o Congres s di dno t focu s o nwast e crude oil . However , EP A identifiedthe followin g item s a s exempt :

- hydrocarbonsolid s - drillin g fluids 3

- B S & w , wate r an

d othe r tan

kbottoms fro

m storage facilitie s an dseparators 4

- wast e crude oi l fro m primar y fiel doperation s Repor t t o congress , p.9 . Thereafter , o

nJul y 6 , 1988 , EP

A issue dth e Regulator

y Determinatio nconcernin g E& P wastes . I nth e Regulator y Determination , EPA liste da s nonexemp t "liqui dan dsoli d waste s generatedb y crude oi l an

dtan kbotto

m reclaimers. " Thi s wa s th

e firs t tim

e tha t wast e crude oi l tan kbotto m wast e iP.1 5

I : I i Reques t b

y Wast e Crud

e Oi l Reclaimer s September 18 , 199 0 Pag e -12 -

wa s containe d o n an ylis t a s nonexempt . EPAdi d no t lis t i t a s nonexemp t i n th e Repor t t o Congress . I n fact , th e definitio n o f "primaryfiel d operations " woul d hav e include d wast e crud e oi l reclaime r activitie s a s exempt . Th e chang e i n polic yi n th e RegulatoryDeterminatio n wa s a dramatic , albei t subtle , chang e i n th e definitio n o f "primaryfiel d operations. "

I t appear s tha t EP Amayhav e bee n concerne d principall y wit hrefinerywast e crud e oi l reclaiming . Thi s woul d explai n th e apparen t inconsistencie s i n th e applicatio n o f th e phras e "primaryfiel d operations " i n th e Repor t t o congres s an d th e statemen t tha t wast e crud e oi l reclaimer s wer e nonexemp t i n th e Regulator yDetermination . I f thi s i s correct , th e crud e oi l reclaimer s simpl ynee d a clarificatio n tha t thei r activitie s ar e exempt .P.1 6

Reques t b y Wast e Crud e Oil Reclaimer

s Septembe r 18 , 199 0 Pag e -13 -

6 . I N THE REPORT TO CONGRESS . EP A STATEDTHA

T PRIMAR YFIELDOPERATION S PIVOTEDO N DELIVER

Y T O A CARRIE RFO RTRANSPORT TO A

REFINER

YO RREFINER

I nth e Repor t t o Congress , EPA describe dho

w t o identif y exempt waste s unde r th e E& P exemptio

na s follows : Exempt waste s mus t be associatedwithmeasure s (1 ) to locat e oi l or ga s deposits , (2 ) t o remov e oi l or natura l ga s fro

m th e ground , or (3 ) t o remov e impuritie s fro

m suc hsubstances , providedthe purificationproces s i s a n integra l par t o f primar y fieldoperations . Repor t t o Congress , p. 7 (emp . added) . The ver y functio

nof wast e crude oi l reclaimin g i s t o remov

e the impuritie s fro m th e wast e crude .
Becaus e wast e crud e oi l i s considere dan"associate d waste " unde r th e E& P exemption , on e mus t explor e the definitiono f "associat e waste " an dth e relatedter

m "primar

y ! , fiel doperations" :

Wit hrespec t t o oi l production , primar y fiel doperation s encompas s thos e activitie s usuall y occurrin

g a t or near th e wellhead , but prio r t o th e transfe r o f oi l fro m a n individua l fiel dfacility o r a centrall y

locate dfacilit

y t o a carrie r (i.e. , pipeline or truckin g company ) fo

r transpor t t o a refiner y or t o a refiner .P.1 7

| Reques t b

y Wast e Crud e Oi l Reclaimer s I Septembe r 18 , 199 0 ]'Pag e -14 - > : i x 

### Repor t t o congress , p. 7 (emphasi s added) . Thi s languag e demonstrate s th e fallac y o f th e Regulator y Determinatio nwhic h hel dwast e crud e oi l reclaimer s t o b e nonexempt . Waste crud e oi l reclaimer s ar e no t refiners . Reclaimer s ar e upstrea mo f refiners . Major

Grou p 29 , SI C Code , i s defined : 2911 . Petroleu mRefining . Establishment s engage di nproducin g gasoline , kerosene , distillat efue l oils , residua l fue l oils , lubricant s and othe r product s fro mcrud e petroleu man dit s fractionizatio nproducts , throug hstraigh t distillatio n o f crud e oil , redistillatio no f unfinishe dpetroleu m derivatives , crackin g o r othe r processes . Therefore , transpor t t o awast e crud e oi l reclaime r i s upstrea mo f

th etim e whe

nth e EP

ARepor t

t o Congres s state d tha t th e wast e crud e oi l an dproduce dfluid s become s nonexempt . Th e sam e i s tru e wit hrespec t t o natura l ga s associate dwastes . Repor t t o Congress , p.8 . I f wast e crud e oi l reclaimer s (no t refine r reclaimers ) ar e upstrea mo f

refinin g operations , the nth e Regulator y Determinatio nerre di nfailin g t o delineat e betwee nreclaimin g operation s a t

refinerie s an dthos e a t shee r reclaime r facilities . iP.1 8

Reques t b

y Wast e Crud e Oi l Reclaimer s Septembe r 18 , 199 0 Pag e -15 - -

- i t i s inconsisten t wit hth e determinatio n tha t E& P waste s containin g identica l substance s a s thos e containe d i n th e reclaimin g tan k bottom s ar e exemp t onsite , bu t regulate d offsite . Th e resul t o f thi s laten t inconsistenc yi s t o subjec t wast e crud e oi l reclaimer s t o Subtitl e C regulation s whil e onsit e activitie s continue . Th e T C • s applicatio n t o wast e crud e oi l reclaimer s wil l driv e mos t o f th e reclaimer s ou t o f busines s an d forc e E& P operator s t o dispos e o f greatl y increase d volume s o f exemp t E& P waste s onsit e o r a t exemp t landfills . Example s o f th e advers e economic s appea r a t Figure s "1 " an

d "2" .P.1 9

Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 199 0 Pag e-16 -

Figur e1 , COS T ANALYSI S ASSUMPTION S FO RE&PWAST

E DISPOSA L UNDERRCR

AP.2 0

\< i
COS T ANALYSI S POTENTIA L MONTHL Y COST S O F WAST E DISPOSA L

NON-EXEMP T STATU S gure s base d upon : 1 . Averag e pe r mont ho f Gros s Off-Spe c Crud e Oi l Purchase s fo r th e perio d o f Januar y198 9 t o Augus t 1990 . 2 . Averag e wastewate r conten t o f non-recoverabl e BS& Wa t 75% . 3 . Wastewater s dispose d o f b yClas s I dee p wel l injectio n site s a t $2.0 0 pe r gallon . 4 . BS& W solid s dispose d o f byincineratio n a t $500.0 0 pe r 5 5 gallo n drum . 5 . Refiner ypurchas e o f 1 % BS& W crud e $20.0 0 pe r barre l (actua l pric e i s poste d pric e o f Wes t Texa s Sou r plu s $0.30) . 6 . Purchas e o f off-spe c crud e pe r barre l a t $17.0 0 fo r 1-3 % BS&w , $16.0 0 fo r 4-10 % BS&W , $15.0 0 fo r 11-20 % BS&W , an d $2.0 0 fo r BS& W conten t greate r tha n 20% .' I P.2 1

Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 199 0 Pag e-17 -

Figur e2 . COS T ANALYSI S FO RE& PWAST E DISPOSA L UNDE RRCR ACOSTAMALV S I S • POTENTIA L MONTHL

YCOST S O F WASTE DISPOSA L NON€XEMP TSTATU S 1 Am t BSt W'

'

* t l 5X 1 T1% : 2 1 %' 5 1 % Gross Purchase d j

(bbls ) I

!

500 0 5000 ' 5000 : 500 0 5000 , , • Net Sol d fbbls ] ;

490 0 4800 ! 4500 1 4000 ! 250 0 . i

• Ami Rec-4 1

996.00 0 396.000 ! S90.000 I 900.00 0 350.00 0 1

AmtP d

985.00 0 980.00 0 • 375.00 0 l 91M00 > 910.00 0 " \

.
i Net Rec' d '

• 1

913.00 0 . 316,000 ' 915,00 0 • ' 970.00 0 ' 940.00 0 , .

• Wastewate r Disposa l TSKefBSl W a t 32.00/gs L 98.25 0 . 316.50 0 ' 941.25 0 i 982.50 0 ' $206,25 0 ; ! ; SoHds Disposa l 25XefBS» W' a t 950<Vdru m ; 99.54 5 • 919.09 1 ' 947.72 7 = 995.45 5 • 323o\S3 6 . !

Tota J Disposa l

• 317.79 5 935.53 1 908.97 7 i 3177.95 5 ' 9444,88 6 : - • ••* Ne

t Rec' d \ AfterDisposa l
(94.795 1 IS19.591 ] (973.977 1 (3107,955 1 (9404,886 1

r oP.2 3

I

I i l Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 19,90 Pag e-18 - ^

7 . TH E NONEXEMP

T STATUS . COUPLE D WIT HTH E NE WTC . WIL L BE CONTRAR Y T O EPA' S GOA

L OF WAST E SEGREGATIO N I N TH E OILFIEL D

Ther e i s littl e doub t tha t EPA fel t wast e crud e oi l presenteda legitimat e concern :
The majo r categorie s of waste s responsibl e fo r damage s includ e reserv e pi t wastes , fracturin g an dacidizin g fluids , stimulatio

nchemicals , wast e crude oil , produced water , an

dothe r miscellaneou s waste s generatedb y th e exploration , developmen t an dproductiono f crude oi l an d natura l gas . 5 3 Fed . Reg . 25449 . EP A als o fel t tan

kbottoms nee

dattentio

n a s a specia l waste :
Tan kbottoms , a

nassociatedwast e sample dan danalyzedb

y the Agency , containedsignifican t level s o f contaminant s o f concern , wit hsom e level s exceedin g th e referenc e dose s (RfDs ) for noncarcinogen s o r th e risk-specifi c dose s (RSDs ) fo

r carcinogen s (health-base dstandards ) fo

r thes e contaminants . 5 3 Fed . Reg . 25448 . EPA' s positio no ncentralize dfacilitie s i nth e Regulator y

Determinatio nevidence daneffor t t o balanc e environmenta l concerns . onth e on e hand , i t fel t tha tP.2 4

Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 199 0 Pag e-19 - •; • 

### | centralize dfacilitie s presente dagreate r degre e o f

risk . O

n th e other , wast esegregatio nwa s deeme damor e desirabl e metho do f

handling . Withrespec t

t o th e ris k

attendan t

t o centralize d facilitie s (whic hawast e crud e oi l reclaime r coul dbe ) , EP

A stated : EP Ai s particularl y concerne dabou t centralize dan d commercia l facilitie s tha t treat , store , o r

dispos e of o i l fiel dwaste s i nconcentrate dform . Pit s o r impoundment s a t

thes e facilitie s ofte ncontai nhazardou s constituent s i nhig hconcentrations . I naddition , centralize dfacilitie s ar e responsibl e fo r som e o f th e mos t significan t

damage s th e Agency documented . 5 3 Fed . Reg . 25457 . O nth e othe r hand , EPA highlighte dth e environmenta l benefit s o f isolatin g certai ntype s of E& P waste s (whic hi s a functio no f wast e crude oi l reclaimers) :
The Agency

believe s tha t unde r certai ncircumstance s wast e segregatio

ni s technicall y

an deconomicall y feasibl e an

denvironmentall y

desirable . 5 3 Fed . Reg . 25451. 5 Thi s opinio nwa s consisten t withth e late r comment s b

y EP A i nth e T C rulemaking .P.2 5

Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 199 0 Pag e-20 - . - 

### B y discouragin g crud e oi l wast e reclaiming , EP Awil l b e encouragin g disposa l o f th e materia l onsit e throughou t th e oilfields . Thi s polic y wil l b einconsisten t wit hth e goa l o f wast e segregation .I Reques t b y Wast e Crud

e Oi l Reclaimer s September 18 , 199 0 Pag e -21 - "r

"

8 . TH E T C REGULATIO N AN DWAST E CRUD E OI L

Sectio n 6921(b)(1 ) contemplate s tha t EPAwil l provid e two method s o f identifying hazardou s wastes :

[T]h e Administrato r shal l promulgat e regulation s identifying th e characteristic s o f hazardou s waste , an d lis t particula r hazardou s wastes , whic hshal l b e subjec t t o th e provision s o f thi s subchapter . Th e approac hEP Ause s t o establis hhazardou s wast e characteristic s i s t o determin e whic hpropertie s o f a wast e woul d resul t i n harmt o huma n healt ho r environmen t i f a wast e i s mismanaged . 5 5 Fed . Reg . 1179 9 (Marc h29 , 1990) . Th e reclaimer s underscor e th e fac t tha t tank bottom s an d relate d wate r ar e no t liste d wastes . The ymayb e hazardou s onl yi f the yexhibi t th e toxicit ycharacteristic . Thus , th e managemen t method s ar e th e principa l concern .
I t shoul d b e note d tha t th e preambl e t o th e T C Regulatio n specificall ystate s that :I ! i | i ; K i l i ! j i . i i

I :

I Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 1990 pag e-22 - *

• i 

### Othe r commenter s focuse do nth eexemption s fo r "specia l wastes, " primaril y ...oi l an dga s productio nwastes . * * * Th e TC rul e wil l not apply t o waste s tha t ar e alread y excludedfro

m subtitl e C regulatio nunde r §261.4(b) . Thes e waste s wil l continue t o b e exempt fro

m regulatio

n a s hazardou s wastes , eve ni f the

y woul dexhibi t th

e TC . 5 5 F.R . 1183 5 (Marc h29 , 1990) . Hence , th e materia l thes e reclaimer s ar e discussin g woul db

e exempt i f handledi na n identica l fashio

nat the wellheadlocation . The Extractio

nProcedur e Toxicity Characteristi c (EPTC ) currentl y

use db

y EPA define s th e toxicit y o f a wast e b

y measurin

g th e potentia l fo

r the wast e constituent s t o leac h throug hth e soi l an dcontaminat e groundwate r a t level s o f healt ho r environmenta l concern . Th e TCL P (whic hbecome s effectiv e Septembe r 25 , 1990 ) replace s th e EP-To xan di s designedt o mor e accuratel y addres s the leachin g potentia l i

n evaluatin

g waste s containin g organi c constituents . 5 5 Fed . Reg . 1180 4 (Marc

h29 , 1990) . Th

e Agency

stated :
The Agency

als o believe s tha t th e co-disposa l scenari o stil l represent s a reasonabl e worst-cas e mismanagemen t scenario .P.2 8

I Reques t b

y Wast e Crud

e Oi l Reclaimer s September 18 , 19 W Pag e -23 - ^ Facilitie s dedicate d t o th e managemen t o f onl yon e wast e o r th e waste s o f onl yon e generato r (i.e. , a "monofill" ) ar e likel yt o pos e les s o f a hazar d tha n genera l municipa l landfill s becaus e th e desig n an d operatio n problem s fo r a monofil l ar e simple r an d th e operator s generall yhav e considerabl ymor e informatio n o n th e propertie s o f th e waste s tha t ar e managed . 5 5 Fed . Reg . 1180 6 (March29 , 1990) . Thus , th e TCL P i s base d upo n a procedur e designe d t o reflec t municipa l landfil l disposa l an

d decayreactions . I t i s no t reflectiv e o f th e risk s associate d wit hth e segregate d activitie s o f wast e crud e oi l reclaimers .
On e o f th e hazardou s constituent s adde d unde r th e TCL P i s benzene . Benzen e i B give n th e D01 8 hazardou s wast e numbe r an d th e regulatoryleve l i s 0. 5 mg/l . 5 5 Fed . Reg . 1180 4 (March 29 , 1990) . Benzen e i s presen t i n wast e crud e oi l tan k bottom s bot hbefor e an

d afte r th e reclamatio n process . on e o f th e rea l problem s wit hcrud e oi l reclaimer s i s tha t oilfiel d wast e i s highl yvariabl e i n nature . Wellfiel d conditions , drillin g an d completio n procedure s ca n al l impac t th e leve l o f benzen e i n th e wast e material . Also , th e inheren t natur e o f th e crud e oi l ca n diffe r fromsit e t o site .
Du e t o th e variabl e condition s o f oilfiel d waste , th e T C ha s presente d crud e oi l reclaimer s wit ha seriou s wast e managemen t problem .Reques t by Wast e Crud e Oi l Reclaimer s Septembe r 18 , 19.9 0 Pag e -24 - \ ;

A . Th e reclaime dcrud e oi l wast e canb e teste dwit h eac htank . Thi s may tak e week s t o complete . I nthe meantime , eac

htan kwil l hav

e t o store

dtemporaril y

i n separat e tanks . Potentia l regulator y impac t coul dexten d t o th e storage tanks ; an d

B . I f testin

g i s done regularly , the cos t woul dhav e to b e expendedo

neac htank . Thi s woul dhav e a direc t an

d additiona l impac t o nth e pric e o f wast e crud e oi l disposa l (an

dth e cos t t o th

e consumer) ; or
C . Simpl y

handl e al l tank s a s hazardou s waste . Thi s woul dincu r th e ful l rang e o f cost s attendan t t o hazardou s wast e regulation . Accordingly , th

e TC regulation s wil l requir e wast e crude oi l reclaimer s t o handl e tankbottom s a s a characteristi c hazardou s waste . However , wast e crude oi l whichi s dispose d o f on-sit e wil l be exempt unde r th e E& P exemption .

8.1 . Th e TCL P wa s Designedfor Municipa l Landfill s• I

I

I Reques t b

y Waste Crud e Oi l Reclaimer s Septembe r 18 , 199 0 Pag e -25 - ^
Th e TCL P i s inappropriat e fo r th e oi l an

dga s industry , andinparticula r fo r reclaimers , becaus e E& P disposa l facilitie s are dedicatedfacilitie s an dar e mor e unifor m i n th e material s received . EP A ha s expressl y

acknowledgedtha t suc ha managemen t scenari o present s les s o f a hazard . I n Issuin g th e fina l TCL P rule , EP A stated : Industria l facilitie s dedicatedt o the managemen t o f only on e waste , o r th e wast e fro m onl y on e generator , ar e likel y t o pos e les s o f a hazar dtha nwoul dgenera l sanitar y or industria l landfills , sinc e the desig nan d operatio

nproblems ar e simpler an dth e operato r ha s muc h mor e informatio

no nth e propertie s o f th e waste s befor e an dwhil e the facility i s i noperation . 5 5 Fed . Reg . 1180 6 (Marc h29 , 1990) . The TCL P wa s formulate d unde r municipa l landfil l conditions , wit hintermixin g of man

y wast e materials . Thi s situatio ni s no t pertinen t t o th e E& P waste .

8.2 . Applicationo f th e T C i s Contrar

y t o Wast e Minimization
Moreover , applicatio no f T C t o reclaimer s adversel y affect s th e state denvironmenta l priorit y o f wast e minimization . Congres s expressl y state dtha t significan t saving s coul db

e realizedb

y reclaimin

g material s i

norde r toP.3 1

Reques t by

Waste Crud e Oi l Reclaimer s Septembe r 18 , 199 0 Pag e -26 - \ \
reduc e th e volum e o r quantit yo f materia l whic hultimatel y become s waste . 4 2 U.S.C . § 6941(a ) ( 3 ) (1983 ) . Pollutio n preventio n i s als o a priorit yAgenc yobjective , i n bot h regulatoryan

d nonregulatoryprograms . EPA' s polic yplace s highes t priorit yo n sourc e reductio n (i.e. , reducin g th e volum e o r toxicit yo f waste s generated ) an d reclaimin g waste s i n a manne r beneficia l t o society . Areductio n i n th e amoun t o f wast e whic hmus t b e manage d (i.e. . bvsourc e reductio n an d recycling ) provide s direc t benefit s relate d t o protectin g huma n healt han

d th e environmen t fro mth e mismanagemen t o f hazardou s wastes . 5 5 Fed . Reg . 1180 2 (Marc h29 , 1990) .

8.3 . Th e T C Wa s Propose d withou t Significan t Consideratio n t o Wast e Crud e Oi l Reclaimer s

I t appear s tha t th e T C wa s promulgate d withou t significan t consideratio n o f E& P wast e crud e oi l reclaimers . I n th e economi c impac t analysis , th e preambl e detail s th e directl yaffecte d industries : Textil e mill s Lumbe r an

d woo d product s Pul p an d pape r 2 2 2421 , 249 9 261 , 262 , 263 , 26 6P.3 2

I

I f

i Reques t b

y Wast e Crud e Oi l Reclaimer s Septembe r 18 , 19S O Pag e -27 - > ^
Printin g andpublishin g Plastic s material s & resin s Syntheti c rubbe r Syntheti c fiber s Pharmaceutical s Soa p& othe r detergent s Surfac e activ e agent s Paint s & allie dproduct s organi c chemical s Agricultura l chemical s Petroleu

m refinin g Miscellaneou s petroleu m andcoa l product s Rubbe r andmiscellaneou s plasti c product s Nonferrou s wir e drawin g andinsulatio n Machiner y

andmechanica l product s Pipelines , excep t natura l ga s Electri c service s Wholesal e petroleu m marketin g 2 7 282 1
282 2 2823 , 282 4 28 3 284 1 284 3 285 1 2865 , 286 9 287 9 291 1
299 2
3 0
335 7
3 4 throug

h

1 46 1 4911

- 51 7I I



## ! i P.3 3

Reques t b

y Wast e Crud e Oi l Reclaimer s Septembe r 18 , 199 0 Pag e -28 - \ ;

Nowher e ar e wast e crud e oi l reclaimer s mentioned . Th e economi c impac t analysi s wa s don e withou t regar d t o th e impac t tha t a reclaime r shut-dow n migh t precipitate .P.3 4

Reques tb y Wast eCrud eOi l Reclaimer s Septembe r18 , 199 0 Pag e-29 - \^

9 . PROPOSED SOLUTION S

A s EP A i s aware , th

e Interstat e Oi l Compac t Commissio n ha s bee nstudiousl y preparin g guideline s fo r ne w stat e implementedE& P soli dwast e practices . Tha t repor t i s no w i n th e penultimat e stage (Exhibi t "E") . I t i s subjec t t o revie w onl y for typographica l corrections . The IOCC repor t i s a nal l encompassin

g guideline fo

r E& P wast e management . i t suggest s detaile dcriteri a fo r sit e permitting , emergenc y response , complianc e inspections , financia l assurance , wast e trackin g an dmanifesting , closure , an dstage agenc

y funding . Th e IOCC proposa l present s a unique opportunity t o EP A i n tha t i t afford s assuranc e tha t th e state s promptl y

wil l b

e implementin g wast e contro l procedures . B y classifyin g reclaimedcrude oi l wast e a s exempt , the Agency woul db

e (i ) consisten t wit hit s Repor t t o Congress , (ii ) encouragin g wast e minimizatio nb

y recycling , (iii ) stimulatin g wast e segregation , (iv ) an dreturnin

g valuabl e domesti c crude oi l t oReques t b y Waste Crud e Oi l Reclaimer s Septembe r 18 , 199 0 Pag e -30 - ^

ou r energ

ystream . Al l o f thi s ca n b e don e wit hth e assuranc e afforde d b

yth e impending stat e program s t o b e develope d unde r th e IOC C report . Th e Ne wMexic o an d Texa s wast e crud e oi l reclaimer s propos e th e following :
A . Wast e crud e oi l reclaimin g b e include d withi n th e Regulator yDeterminatio n a s exempt . Thi s woul d b e consisten t wit hth e representation s mad e byEP At o Congres s i n th e Report , an d woul d maintai n a constan t definitio n o f th e phras e "primaryoilfiel d operations. "

B . Encourag e specia l attentio n t o state s unde r th e IOC C repor t fo r wast e crud e oi l wast e managemeh t practices . Th e crud e oi l reclaimer s appreciat e EPA' s expedite d an d professiona l consideratio n o f thi s request . W e stand read yt o respond t o an

yinquirie s EP Amaysubmit . i

i i