1 Coalbed Methane State Phone Calls

EPA received comments on the CBM delisting from environmental groups stating:

**•** CBM industry in Montana continues to dump untreated wastewater into the Tongue River ;

**•** Fidelity (the only CBM operator in Montana) violated more than 150 WET tests in 2009; and

**•** Discharges to the Tongue River and its tributaries should not be permitted because the Tongue River cannot handle the salt content of the discharge.

According to information EPA collected in support of its 2013 propose d de

- listing of CBM from the ELG plan , there are no untreated CBM discharges into the Tongue River. EPA contacted Montana and Wyoming state permitting personnel for an update on permitting of CBM discharges to the Tongue River.

Date: December 11, 2013

Contact Name: Tom Reed
Affiliation: Montana Department of Environmental Quality Call Participants: Ahmar Siddiqui, EPA Lori Weiss, ERG

As documented in state phone call meeting minutes from 2011 ( EPA

- HQ

- OW

- 2010

- 0824

- 0168 ), Montana ha d issued

p ermits to three operators: Fidelity; OW Ranch; and Pinnacle (now Summit ) , but at that time, o nly Fidelity wa s operating and their permit require d use of the Exterran Higgins LoopTM desalination technology (Permit MT0030724)

.

Mr. Reed confirmed that Fidelity is still the only CBM operator in Montana and that their permit requires use of the Higgins LoopTM. Mr. Reed stated Fidelity previously held two discharge permits, one of which allowed the discharge
of untreated wastewater (Permit MT0030457) . On Ma y 18, 2010 the Montana Supreme Court ruled that CBM discharge permits required the use of technology

- based treatment standards. As a result of the ruling, Montana
terminated Permit MT0030457 on November 14, 2010 . In June 2010, Montana completed a best prof essional judgment (BPJ) analysis to re

- evaluate the second permit, MT0030724

. Montana DEQ found that the Exterran Higgins LoopTM technology in use by Fidelity represented the level of pollutant control which achieves the best available treatment for produce d water. Mr. Reed thus confirmed that the comments on the CBM delisting, stating
that the CBM industry in Montana continues to dump untreated wastewater into the Tongue River are not correct.

The 140 WET violations referred to in the comment were for wat er discharged under Permit MT0030457 which has
been terminated. Mr. Reed thus confirmed that the comments on Fidelity’s WET violations were correct; however, Montana no longer allows Fidelity to discharge untreated CBM produced water.

Date: December 11, 2013

Contact Name: Bill DiRienzo
Affiliation: Wyoming Department of Environmental Quality Call Participants: Ahmar Siddiqui, EPA Lori Weiss, ERG

Mr. DiRienzo affirmed that, like Montana, Wyoming also does not permit discharges of untreated CBM wasteater to the Tongue River. Mr. DiR i enzo stated operators in the Tongue River basin store produced water in off

- channel pits, which are permitted through WYDEQ. The permits allow discharges to the Tongue River only for emergency releases such as during a storm event. Wyoming tracks the emergency releases and also monitors stream flow to identify any unauthorized releases.2 For discharges to the Powder River, WYDEQ implemented an assimilative capacity program, similar to a total maximum daily load (TMDL ), to allocate discharges to the Powder River. Wyoming calculated the total dissolved solids (TDS) and sodium capacity of the Powder River by month and allocated monthly discharge credits to operators in the Powder River Basin based on the operat or’s share of the mineral lease.

Mr. DiR i enzo mentioned a 2012 Wyoming State Geological Survey study which analyzed the cause of annual elevated salinity in the Tongue River. The study concluded that the elevated levels of salinity are not caused by CBM production in the area. Mr. DiR i enzo will provide EPA a copy of the study for review.

Mr. DiR i enzo also note d that permitted discharges to the Powder River have declined since 2010 . In 2010, Wyoming had 60 active CBM permits covering 332 outfalls. In 2013, Wyoming has 41 active CBM permits covering 216
outfalls. Mr. DiR i enzo expects this trend to continue as operators let their permits expire without submitting applications for rene wal.