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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 proposed 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 had issued 

permits to three operators: Fidelity; OW Ranch; and Pinnacle (now Summit), but at that time, only Fidelity was 

operating and their permit required 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 May 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 professional 

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 produced 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 water 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. DiRienzo 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. 
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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 operator’s share of the mineral lease. 

Mr. DiRienzo 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. DiRienzo will provide EPA a copy of the study for review. 

Mr. DiRienzo also noted 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. DiRienzo expects this trend to continue as operators let their permits expire without submitting 

applications for renewal.