MEMORANDUM OF AGREEMENT 

BETWEEN 

THE STATE OF TENNESSEE 

AND 

THE UNITED STATES ENVIRONMENTAL PROTECTION 

AGENCY 

REGION 4 

I. GENERAL 

This Memorandum of Agreement ("Agreement") establishes policies, responsibilities, 

and procedures pursuant to 40 C.F.R. Part 145, for the State of Tennessee Underground 

Injection Control Program ("State Program" or "UIC Program") for Class I, II, III, IV and 

V wells, as authorized by Part C of the Safe Drinking Water Act (Pub. L. 93-523 as 

amended by Pub. L. 95-190 and 96-502)("SDWA"). 

This Agreement is entered into by the Department of Environment and Conservation and 

signed by the Commissioner of the Department of Environment and Conservation, 

(hereafter, "The State" or "Commissioner") with the United States Environmental 

Protection Agency, Region 4 and signed by the Regional Administrator (hereafter, "EPA" 

or "Regional Administrator"). 

A. Lead Agency Responsibilities

The lead agency, Tennessee Department of Environment and Conservation (hereafter, 

"TDEC"), which receives the annual program grant, as designated by the Governor of the 

State, is also the lead agency to coordinate the State Program. This lead agency shall 

coordinate the State Program to facilitate communication between EPA and the State 

agencies having program responsibilities. These responsibilities shall include, but not be 

limited to, the submission of grant applications, reporting and monitoring results and 

annual report requirements. The Department of Environment and Conservation is 

responsible for and has the authority over all Class I, II, III, IV and V injection wells. 

The Department is responsible for administering the State Program for the injection wells 

under its jurisdiction including, but not limited to, reports, permits, compliance 

monitoring and enforcement actions. 

B. Review and Modifications
This Agreement may be modified upon the initiative of the State or EPA. Modifications 

must be in writing and must be signed by the Commissioner and the Regional 

Administrator. Modifications become effective when signed by the Commissioner and 

the Regional Administrator. Modifications may be made to the effective date of this 

Agreement by addenda attached to this Agreement and consecutively numbered, signed, 

and dated. 

C. Conformance with Laws and Regulations

The State shall administer the UIC Program consistent with the State's submission for 

program approval, this Agreement, the SDWA, current Federal regulations and policy, 

promulgated minimum requirements, priorities established as part of the annually 

approved State UIC grant, and any separate working agreements which shall be entered 

into with the Regional Administrator as necessary for the full administration of the UIC 

Program. For the purposes of this Paragraph, "policy" shall constitute officially 

transmitted, written EPA national or Region 4 guidance, interpretation or other policy 

related to the implementation of the UIC Program. 

D. Responsibilities of Parties

Each of the parties has responsibilities to assure that the UIC requirements are met. The 

parties agree to maintain a high level of cooperation and coordination between State and 

EPA staffs in a partnership to assure successful and effective administration of the UIC 

Program. In this partnership, the Regional Administrator will provide to the State on a 

continuing basis technical and policy assistance on program matters. 

The Regional Administrator is responsible for keeping the State apprised of the meaning 

and content of Federal guidelines, technical standards, regulations, policy decisions, 

directives, and any other factors, which affect the UIC Program. 

The strategies and priorities for issuance, compliance monitoring and enforcement of 

permits, and implementation of technical requirements shall be established in the State's 

program description, the annual State/EPA Agreement, or in subsequent working 

agreements. If requested by either party, meetings will be scheduled at reasonable 

intervals between the State and EPA to review specific operating procedures, resolve 

problems, or discuss mutual concerns involving the administration of the UIC Program. 

E. Sharing of Information

The State shall promptly inform EPA of any proposed or pending modifications to laws, 

regulations, or guidelines, and any judicial decisions or administrative actions which 

might affect the State Program and the State's authority to administer the program. The 

State shall promptly inform EPA of any resource allocation changes (for example: 

personnel, budget, equipment, etc.), which might affect the State's ability to administer 

the program. 

All information obtained or used in the administration of the State Program, including all 

UIC permit files, shall be available to EPA upon request without restriction. In the event 

EPA requests a complete set of copies of a file that is particularly voluminous, such that 
copying would require a significant expenditure of State resources, the State may request 

that EPA visit the State office to review the file. Any information obtained from the 

State by EPA which is subject to a claim of confidentiality shall be treated by EPA in 

accordance with EPA regulations governing confidentiality (40 C.F.R. Part 2). 

If the information has been submitted to the State under a claim of confidentiality, the 

State must submit that claim to EPA when providing EPA such information. Any 

information obtained from the State and subject to a claim of confidentiality will be 

treated in accordance with 40 C.F.R. Part 2. If EPA obtains information from the State 

that is not claimed to be confidential, EPA may make that information available to the 

public without further notice. 

Whenever either party requests information concerning a specific injection operation and 

the requested information is available from the files within reason as provided in II.A., 

that information will be provided within a reasonable time. In the event EPA requests 

information necessary to prevent or minimize endangerment to the public health or the 

environment, the State shall use its best efforts to provide the information as soon as 

possible. If the requested information is not available, the party to whom the request was 

directed shall promptly notify the requester. The State shall allow EPA to routinely 

review State records, reports, and files relevant to the administration and enforcement of 

the approved program. 

EPA shall furnish to the State any new information it receives which the State needs to 

implement the State Program, subject to EPA regulations governing confidentiality (40 

C.F.R. Part 2). 

F. Duty to Revise Program

Within 270 days of any revisions or additions to any regulations of 40 C.F.R. Parts 124, 

144, 145 or 146 issued under Section 1421 of the SDWA, the State shall submit a notice 

to EPA showing that the State Program meets the revised or added requirement. 

G. Definition and Exemptions of USDW.

The State agrees to define an "underground source of drinking water" (USDW) in a 

manner consistent with 40 C.F.R. §§144.1(g), 144.3 and 146.3 of the UIC regulations. 

The State further agrees to exempt "underground sources of drinking water" only in 

conformance with 40 C.F.R. §§146.4 and 144.7 of the UIC regulations. 

A USDW for purposes of the State Program under this Agreement shall be defined as an 

aquifer or portion thereof, which supplies water for human consumption, or, in which the 

ground water contains fewer than 10,000 mg/l total dissolved solids (TDS), and is not an 

exempted aquifer. An aquifer, or portion thereof, may be exempted from protection by 

the Commissioner after public notice and opportunity for public hearing and upon final 

approval by the Administrator. An aquifer, or portion thereof, may be exempted if it does 

not currently serve as a source of drinking water and it cannot now and will not in the 

future serve as a source of drinking water (as specified in 40 C.F.R. §146.4). Aquifer 
exemptions subsequent to program approval shall be treated as program modifications (as 

specified in 40 C.F.R. §145.32). 

H. Duration of Agreement

This Agreement will remain in effect until such time as the primary enforcement 

responsibility is no longer delegated to the State, according to the provisions of 40 C.F.R. 

§§145.33 or 145.34. 

I. General Provisions

Nothing in this Agreement is intended to affect any UIC or program requirement, 

including any standards or prohibitions, established by State or local law as long as the 

State or local requirements are not less stringent than: (1) any set forth in the UIC 

regulations; or (2) other requirements or prohibitions established under the SDWA or 

applicable regulations. 

Nothing in this Agreement shall be construed to limit the authority of the EPA to take 

action pursuant to Sections 1421, 1422, 1423, 1424, 1431 or other Sections of the 

SDWA. 

II. PERMITTING 

A. General

The State is responsible for expeditiously drafting, circulating, issuing, modifying, 

reissuing, and terminating UIC permits and shall do so in accordance with 40 C.F.R. 

§145.11. The Commissioner shall review and issue permits based on the permit 

conditions of R61-87. Permits shall be issued which comply with applicable Federal and 

State requirements, including but not limited to procedures for public participation. 

B. Transfer of Responsibility from EPA to the State

The Regional Administrator shall transfer from EPA to the State any pending permit, 

application and any other information relevant to program operation not already in the 

possession of the State Commissioner when the State assumes primacy for the program. 

Currently there are only Class II and V wells authorized by EPA in Tennessee. 

Authorization includes both permits and authorization by Rule. EPA will provide the 

State with a list of all injection wells in EPA’s inventory within three (3) months of 

program delegation. 

(i) Class II wells. 

The State shall issue State Class II permits to all Class II wells currently 

authorized to inject, within one (1) year after receipt of primary authority for 

implementation of the UIC Program. EPA will provide the State with 

documentation of the compliance status of all existing Class II wells within sixty 

(60) days after the State receives primary authority for the UIC Program. In the 
event a well is not in compliance, the State may opt to bring an enforcement 

action instead of issuing a permit. The State shall require each owner or operator 

to submit substitute financial responsibility documentation designating the State 

as the agency entitled to require use of the financial responsibility funds for 

plugging and abandonment of wells, prior to issuance of a new State permit. 

When the State permit is issued, EPA will terminate the existing permit and 

release any financial documents to the owner/operator. The State shall require 

successful Mechanical Integrity Tests (MIT) on all wells that have not had an 

MIT in the previous five (5) years prior to issuing a State permit. EPA shall 

retain primary authority over any well involved in an active EPA enforcement 

action until resolution of that action, after which the State may, if relevant, issue a 

State permit. 

 (ii) Class V wells. 

The State shall, within one (1) year after receipt of primary authority for 

implementation of the UIC Program, issue permits, rule authorize or require 

cessation of injection into all Class V wells. EPA will provide the State with 

documentation of the compliance status of all inventoried Class V wells within 

sixty (60) days after the State receives primary authority for the UIC Program. In 

the event a well is not in compliance, the State may opt to bring an enforcement 

action instead of issuing a permit or other authorization to inject. The State shall 

require each owner or operator to submit substitute financial responsibility 

documentation designating the State as the agency entitled to require use of the 

financial responsibility funds for plugging and abandonment of wells, prior to 

issuance of a new State permit or other authorization to inject. EPA shall retain 

primary authority over any well involved in an active enforcement action until 

resolution of that action, after which the State may, if relevant, issue a State 

permit or other authorization to inject. 

C. Injection Fluid Characterization

The State shall fully characterize injection fluids in all UIC permits. The characterization 

shall include all possible sources of waste for disposal in the injection well. 

D. Compliance schedules and Reports

The Commissioner agrees to establish compliance schedules in permits, where 

appropriate, and to require periodic reporting on compliance with compliance schedules 

and other permit conditions. 

III. COMPLIANCE MONITORING 

A. General

The State shall operate a timely and effective compliance monitoring information system 

to track compliance with permit conditions and program requirements. For purposes of 
this Agreement the term compliance monitoring shall refer to all efforts associated with 

assuring full compliance with UIC Program requirements. 

B. Compliance Schedule

The State agrees to maintain procedures to receive, evaluate, retain, and investigate all 

notices and reports that are required by permit compliance schedules and program 

regulations. These procedures shall also include the necessary elements to investigate the 

failure of persons required to submit such notices and reports. The State shall initiate 

appropriate compliance actions when required information is not received or when the 

reports are not submitted. 

C. Review of Compliance Reports

The State shall conduct a timely and substantive review of all such reports to determine 

compliance status. The State shall evaluate a system to determine if: (1) the reports 

required by permits and program regulations are submitted; (2) the submitted reports are 

complete and accurate; and (3) the permit conditions and program requirements are met. 

The reports and notices shall be evaluated for compliance status in accordance with the 

State compliance program and the program requirements. 

D. Inspection and Surveillance

The Commissioner agrees to have inspection and surveillance procedures to determine 

compliance or noncompliance with the applicable requirements of the UIC Program. 

Surveys or other methods of surveillance shall be utilized to identify persons who have 

not complied with permit applications or other program requirements. Any compilations, 

index, or inventory obtained for such facilities or activities will be made available to the 

Regional Administrator upon request. 

The Commissioner or designee shall conduct periodic inspections of the facilities and 

activities subject to regulatory requirements. These compliance monitoring inspections 

shall be performed to assess compliance with all UIC permit conditions or UIC Program 

requirements and includes evaluating a facility's monitoring and reporting program. 

These inspections shall be conducted to determine the compliance or noncompliance with 

the issued permits, verify the accuracy of the information submitted by permittees in 

reporting forms and monitoring data, and to verify the adequacy of sampling, monitoring 

and other methods to provide the information. The State shall also investigate 

information obtained regarding violations of the applicable program requirements. 

E. Information from the Public

The Commissioner shall provide opportunity for the public to submit information on 

violations, and shall put into place procedures for receiving, investigating, and ensuring 

proper consideration of the information, and for responding to the public. 

F. Authority to Enter
The State Commissioner (and other State officials) engaged in compliance monitoring 

and evaluation shall have the authority to enter any site or premises subject to regulation, 

or to review and copy the records of relevant program operations where such records are 

kept. 

G. Admissibility

Any investigatory inspections initiated by the Commissioner shall be conducted, and 

monitoring and other information collected and maintained in a manner to provide 

evidence admissible in an enforcement proceeding or in court. 

IV. ENFORCEMENT 

A. General

The State is responsible for taking timely and appropriate enforcement action against 

persons in violation of compliance schedules, technical requirements, permit conditions, 

and other UIC Program requirements. This includes violations detected by State or 

Federal inspections. 

The State agrees to maintain a vigorous enforcement program, including a program to 

assess compliance by operators/owners of injection facilities, and to take timely and 

appropriate enforcement action in every case where such action is warranted. Where 

EPA finds that any person who is subject to an applicable requirement of the 

underground injection control program is violating such requirement, EPA shall so notify 

the State and the person violating such requirement. If the State has not commenced 

appropriate enforcement action beyond the thirtieth day after EPA’s notice, EPA may 

issue an Administrative Order requiring the person to comply with the requirement or 

EPA may commence a civil action against said person (Section 1423 SDWA). 

B. Enforcement Mechanisms

The State shall restrain immediately and effectively any person engaging in any 

unauthorized activity or operation which is endangering or causing damage to public 

health or the environment as applicable to the program requirements. The State agency 

administering the program shall also have the means to sue in court of competent 

jurisdiction to prohibit any threatened or continuing violation of any program 

requirement. Additionally, the State shall have the mechanism to assess or sue to recover 

in court civil penalties and criminal remedies of sufficient magnitude to provide an 

effective deterrent to any threatened or continuing violation of any program requirement 

in accordance with 40 C.F.R. §145.13. 

C. Emergency Situations 

Injection practices endangering public health or the environment shall receive immediate 

attention. Notwithstanding Section IV.A of this Agreement, should EPA receive 
information that a contaminant which is present in or is likely to enter a public water 

system or an underground source of drinking water may present an imminent and 

substantial endangerment to the health of persons, and that appropriate State authorities 

have not acted to protect the health of such persons, EPA may take such actions as it 

deems appropriate to protect the health of such persons. To the extent EPA deems it 

practical in light of the imminent endangerment, it will consult with the State regarding 

the correctness of the information on which action proposed to be taken is based and to 

ascertain what, if any, action the State is or will be taking (Section 1431 SDWA). 

D. Public Participation

The State shall provide for public participation in the State enforcement process by 

providing either: (1) the authority which allows intervention as a right by any citizen 

having an interest which is or may be adversely affected in any civil or administrative 

action to obtain remedies as specified in paragraph B above or (2) assurance; that the 

State agency or enforcement authority will: (i) investigate and provide written responses 

to all citizen complaints; (ii) not oppose intervention by any citizen when permissive 

intervention may be authorized by statutes, rule, or regulation; and (iii) publish notice of 

and provide at least 30 days for public comment on any proposed settlement of a State 

enforcement action. Nothing in this Agreement shall affect EPA's authority or 

responsibility to take enforcement actions under Sections 1423 and 1431 of the SDWA. 

E. Assessment of Fines

The State shall seek to assess civil penalties in amounts appropriate to the violation as 

required by Tennessee Statutes. T.C.A 69-3-115. Such penalties shall include a 

calculation and assessment of the economic benefit of non-compliance. 

V. EPA OVERSIGHT 

A. General

EPA shall oversee the State's administration of the UIC Program on a continuing basis to 

assure that such administration is consistent with this Agreement, the State UIC grant 

application, and all applicable requirements embodied in current regulations, policies and 

federal law. 

In addition to the specific oversight activities listed in this section, EPA may, from time 

to time, request, and the State shall submit, specific information and provide access to 

files necessary for evaluating the State's administration of the UIC Program. 

B. Quarterly Noncompliance Reports

The State shall submit to the Regional Administrator quarterly noncompliance reports (as 

specified in 40 C.F.R. §144.8(a)) on major permittees in accordance with the following 

schedule: 

REPORT DUE TO 
QUARTER REGIONAL ADMINISTRATOR

 October, November, December due January 25 

 January, February, March due April 25 

 April, May, June due July 25 

 July, August, September due October 31 

or as otherwise specified in the annual UIC grant workplan. 

The State shall submit the noncompliance reports in the required format (40 C.F.R. 

§144.8(a)(1)) including the current status and outcome of any actions taken by the 

Commissioner against those who are not in compliance. 

C. Annual Noncompliance Reports

The State shall submit annual noncompliance reports (as specified in 40 C.F.R. 

§144.8(b)(1)) on nonmajor permittees. The period for annual reports shall be for the 

fiscal year ending September 30, with reports completed and available to the public no 

more than 30 days later. 

D. Immediate Reporting on Noncompliance

The Commissioner shall immediately notify the Regional Administrator by telephone, or 

otherwise, of any major, imminent hazard to public health or the environment resulting 

from the endangerment of an underground source of drinking water of the State by well 

injection. 

E. Annual Program Report

The State shall submit an annual program report to the Regional Administrator in 

accordance with 40 C.F.R. §144.8(c)(2). This report shall be for the fiscal year ending 

September 30, with the report completed and available to the public no more than 30 days 

later. 

F. Review of Permits

The State agrees to submit drafts of all proposed Class I, II, III and V wells to the 

Regional Administrator for review prior to issue. The Regional Administrator agrees to 

complete EPA’s review within twenty (20) days of receipt or to advise the Commissioner 

within the same twenty (20) day period that additional review time is required. In the 

event that EPA comments on a draft permit, the State shall make such changes as may be 

necessary to ensure that the permit is in compliance with all federal requirements prior to 

issuance. In all cases the review shall be complete within thirty (30) days of receipt of 

the draft. In the event EPA does not submit comments to the State on a draft permit 

within thirty (30) days after receipt of the draft, EPA will be deemed to have assented to 

the draft permit conditions, and the State may issue the permit at its discretion. 

G. Inspection and Surveillance by EPA

The Regional Administrator may select facilities and activities within the State for EPA 

inspection. 
H. Annual Performance Evaluation

EPA shall conduct, at least annually, performance evaluations of the State Program using 

the State quarterly reports, annual noncompliance reports, program reports and other 

requested information to determine State Program consistency with the program 

submission, SDWA and applicable regulations, and applicable guidance and policies. 

The review will not only include a review of financial expenditures, but reviews on 

program implementation, changes in the program description, and efforts toward progress 

on program elements. 

EPA shall submit a summary of the evaluation findings to the State outlining any 

deficiencies in program performance and making recommendations for improving State 

operations. The State shall have 15 working days from the date of receipt to concur with 

or comment on the findings and recommendations. 

VI. SIGNATURES 

AGREED TO this _____ day of ________________, 2004, and effective as of this date. 

Department of Environment U.S. Environmental 

and Conservation Protection Agency 

BY (Signatures on original 11/18/04) BY (Signatures on original 10/20/04) 

Betsy L. Child J. I. Palmer, Jr. 

Commissioner Regional Administrator 

Date Date 
STATE OF TENNESSEE 

DEPARTMENT OF ENVIRONMENT AND CONSERVATION 

Division of Water Supply

401 Church Street 

6th Floor, L & C Tower 

Nashville, Tennessee 37243-1548 

Telephone: (615) 532-0191 

Fax: (615) 532-0503 

MEMORANDUM 

TO: All Underground Injection Control employees, DWS enforcement staff

FROM: Scotty Sorrells UIC Coordinator 

DATE: September 17, 2004 

SUBJECT: Special procedures on Underground Injection Control Public Response to 

 Complaints

The Division of Water Supply has applied to the United States Environmental Protection 

Agency for primacy in the Underground Injection Control (UIC) program. EPA raised 

questions about whether the state’s authority met all requirements in regard to public 

participation and intervention. The applicable section of the federal rules, 40 CFR 

§145.13(d) (attached) sets out two alternatives. Under subsection (d)(1) the state statues 

and rules simply meet certain standards. In EPA’s view our authority does not do this. 

Rather than prolong the argument, the Division decided to agree to conduct business in 

accordance with subsection (d)(2). There are three sub-items in that section. The first 

one says the division will investigate all complaints received from citizens regarding 

potential violations of the UIC rules and give written responses. The following is the 

Divisions SOP to make sure that happens. 

Upon receipt of a complaint call the UIC staff will collect information as to the location

of the activity, the nature of the problem, and the person(s) involved in the activity. The 

State will as resources allow investigate in a timely manner and provide written responses 

to all citizen complaints 

Effective upon the signing of the Memorandum of Agreement with EPA, all UIC citizen 

complaints handled by the Division of Water Supply shall conform to this provision. 
DEPARTMENT OF ENVIRONMENT AND CONSERVATION 

DIVISION OF WATER SUPPLY 

COMPLAINT INVESTIGATION LOG 

Date Received:_____________________________ 

Complainant: Name___________________________________________ 

 Address___________________________________________ 

 ___________________________________________ 

 ___________________________________________ 

 Phone___________________________________________ 

Complaint Against: Name__________________________________________ 

 Address__________________________________________ 

 __________________________________________ 

 __________________________________________ 

 Phone__________________________________________ 

Nature of Complaint:___________________________________________________ 

Date Investigated: _________________________________________ 

Investigator: _________________________________________ 

Result of Investigation: ___ NOV Issued Date___________ 

 ___Warning Letter Issued Date___________ 

 ___Advisement Letter Issued Date___________ 

 ___Complaint Not Verifiable 

 ___More Investigation Needed 

 ___Other______________________________________ 

 ______________________________________ 

Complainant Contacted: ___By Letter Date____________ 

 ___In Person Date____________ 

 ___By Telephone Date____________ 

 ___Not Contacted 

File Location:____________________________________________________________ 

Comments:_____________________________________________________________ 

________________________________________________________________________

________________________________________________________________________ 
STATE OF TENNESSEE 

DEPARTMENT OF ENVIRONMENT AND CONSERVATION 

OFFICE OF GENERAL COUNSEL 

401 Church Street 

20th Floor, L & C Tower 

Nashville, Tennessee 37243-1548 

Telephone: (615) 532-0131 

Fax: (615) 532-0145 

MEMORANDUM 

TO: All OGC Attorneys, DWS enforcement staff

FROM: Joe Sanders, General Counsel 

DATE: September 17, 2004 

SUBJECT: Special procedures on Underground Injection Control Enforcement Cases 

The Division of Water Supply has applied to the United States Environmental Protection 

Agency for primacy in the Underground Injection Control (UIC) program. EPA raised 

questions about whether the state’s authority met all requirements in regard to public 

participation and intervention. The applicable section of the federal rules, 40 CFR 

§145.13(d) (attached) sets out two alternatives. Under subsection (d)(1) the state statues 

and rules simply meet certain standards. In EPA’s view our authority does not do this. 

Rather than prolong the argument, the Division decided to agree to conduct business in 

accordance with subsection (d)(2). There are three sub-items in that section. The first 

one says the division will investigate all complaints received from citizens regarding 

potential violations of the UIC rules and give written responses. The Division is 

developing an SOP to make sure that happens. 

The last two sub-items in 40 CFR §145.13(d)(2) provide that the Division will: 

Not oppose intervention by any citizen when permissive intervention may 

be authorized by statute, rule, or regulation; and 

Publish notice of and provide at least 30 days for public comment on any 

proposed settlement of a State enforcement action. 

Effective upon the signing of the Memorandum of Agreement with EPA, all UIC cases 

handled by the Office of General Counsel shall conform to those two provisions. The 

notice of any proposed settlement shall be published on the TDEC web site and sent to 

any persons who have requested receiving such notices and shall identify a person to 

whom any comments shall be submitted.