P.1 

RCRA Box 321 

Prepped by Ryan Dugan 

Document Number: 

200) OGRC-S0003 

Docket Number: 

F-93-OGRC-FFFFF 

Printed 5/8/2007 3:36:31 PM Sheet 200 of 259 
P.2 

STEVEN SCHIPF 

a ftusr Qisnucr, NBV'MBQCO 

COMMtTTIU: 

SotNd , SPACC AND TKHHtuptrr 

GOVSHNMENT OMAATOM* 

RWVUCAN RBMAJWH COMMITTSB 

TASK Foatt OH CWMC 

VICCCHAIDMA* 

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Congre** of trje ®niteb States 

aeashtnfftmt, BC 20515 

September 28, 1990 

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WASHMOTON OfWCTi 

O 1520 UKOWCWTM luiLomu 

WASXMOTOM. DC 205 lfi 

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(N5mCT0^C& 

625 SILVER AVENUE, SW 

Suit* 140 

SILVER SOUAM 

AisuQuaous. N M 87102 

(SOB) 76&-25H 

© 

William J. Riley 

EPA Administrator 

401 If St SW 

Washington/ D.C. 20460 

Dear Mr. Riley: 

fi 

Si 

I am writing you on behalf of the Governor of the State of 

New Mexico to request your review of a regulation which was 

recently finalized by the EPA. 

On September 25, a rule directing use of the Toxicity 

characteristic Leaching Procedure (TCLP) was made final, it 

requires that materials containing benzene be regulated as RCRA 

hazardous wastes if benzene levels exceed the promulgated level. 

This rule has serious implications for crude oil reclamation 

activities in the State of New Mexico. At a time when the nation 

is seeking additional sources of domestic crude oil, this rule 

hampers the recovery efforts of domestic suppliers. 

I am enclosing additional information regarding this issue, 

and a letter from the Governor of the State of New Mexico. I 

request that additional review be given to this rule and that the 

interests of oil reclamation efforts in my state be given 

additional consideration. Thank you for your attention. 

Sincerely, e^J Tt—J* 

SS/sf 

Enclosure 

Steven Schiff 

TWS STATIONERY PfflWTBD ON PArtH MA06 Or RECYCLED HBSS )/r*\ 
P.3 

.^oyv /O '^£ 0 

GARREY CARRUTHERS 

Governor 

OFFICE of the GOVERNOR 

State of New Mexico 

Santa Fe 87503 

September 14, 1990 

President George Bush 

Executive Office of the President 

1600 Pennsylvania Avenue, N.W. 

Washington, D.C. 20460 

Dear Mr. Presidentt 

We in New Mexico have been working to increase domestic crude oil 

production in order to help meet the short fall of approximately 

4.3 million barrels from Kuwait and Iraq. We are deeply concerned 

about a new Environmental Protection Agency (EPA) rule that will 

decrease the amount of crude oil and refined petroleum products 

available domestically. This rule is commonly referred to aa the 

"benzene standard" and is scheduled to be implemented on September 

25, 1990. Our concerns were discussed with frHlral Watkins at the 

September 7 meeting in Washington where oil producing states were 

called to address the need to increase domestic oil supply. 

In New Mexico alone, we anticipate a loss in excess of 10,000 

barrels of oil per month. The new EPA rule is a regulatory burden 

which will shut down facilities which treat and reclaim crude oil 

from tank bottoms without providing any environmental benefits. It 

will also jeopardize hydrocarbon clean up programs currently 

operating at refinery sites. 

We recommend implementation of this role be delayed for at least 

six months pending a reexamination of its impact and effectiveness. 

I solicit your personal attention to this Important matter and 

pledge the cooperation of myself and my staff should yon or federal 

agencies need additional information or questions answered 

concerning this issue. 

cct William J. Riley, EPA Administrator 

James D. Watkins, Secretary of Energy 

N.H. Congressional Delegation 

/iT\ 
P.4 

STATE OP NEW MEXICO 

ENERGY. MINERALS AND NATURAL RESOURCES DEPARTMENT 

OIL CONSERVATION DIVISION 

S

trr, 

RREY CARRUTHERS 

GOVERNOR MEMORANDU M 

POST orrce BOX 90ns 

s' A? 11 ANO w r c* eunowe 

SANTA » t MVW M$XCQ B7S0A 

15031 B27.SB0D 

TO: GOVERNOR GARREY CARRUTHERS, Governor 

State of New Mexico 

ANITA LOCKWOOD, Secretary 

Energy, Minerals and Natural Resources Department 

THRU: WILLIAM J. LEMAY, Director 

Oil Conservation Division 

FROM: DAVID G- BOYER, Environmental Bureau Chief t 

Oil Conservation Division 

SUBJECT- IMPLEMENTATION OF "BENZENE STANDARD" BY EPA Win I 

RESULTING LOSS OF DOMESTIC CRUDE. OIL 

DATE: SEPTEMBER 12, 1990 

We are deeply concerned about a new Environmental Protection Agency (EPA) rule that 

will decrease the amount of crude oil and refined petroleum product available domestically. 

We hope that the rule be reconsidered for the activities listed below, or that its 

implementation at least be delayed during the cunent Persian Gulf energy crises and 

reexamined at a later date. 

On September 25th, the EPA rule directing use of the Toxicity Characteristic Leaching 

Procedure (TCLP) and adding toxicity constituent regulatory levels becomes effective. On 

that date materials containing benzene, a natural component of crude oil and refined 

casoline, will be regulated as RCRA hazardous wastes if benzene levels exceed the 

promulgated level. Certain waste materials are excluded from this regulation including 

crude oU exploration and production wastes, and wastes from clean-up of spilled petroleum 

products from underground storage tanks at gasoline service stations. However, two 

activities closely associated with the above exclusions were not so exempted and will be 

required to comply with burdensome and costly hazardous waste regulations that will have 

a negative impact on both petroleum availability and on environmental cleanups taking 

place under other laws and regulations. ^ 

fo) 
/ 

P.5 

"MEMORANDUM 

"September 12, 1990 

Page -2-

In New Mexico and other oil producing states crude oil may become contaminated with 

sediment and water that makes it unmarketable without treatment. For example, pipelines 

commonly will not accept crude oil with greater than 1 to 2% sediment nnd water. Tank 

bottom sediments also contain crude oil that can be reclaimed. Facilities that treat or 

reclaim oil to make it marketable are generally located on the same sites as facilities 

disposing of exempted exploration and production waste. However, beginning September 

25th waste from oil reclamation activities must be kept separate, and be permitted and 

disposed of as hazardous waste even though it is identical chemically to bther waste 

disposed of at the site. After that date is must be shipped off-site and out of New Mexico 

to be incinerated. The regulatory burden, expense and time of hazardous waste permitting 

and cost of alternative disposal will almost certainly cause reclaimers to shut facilities 

causing an estimated crude oil production loss in excess of 10,000 barrels per month in 

New Mexico alone. Facilities treating or reclaiming oil should continue to remain exempt 

from hazardous waste regulations. 

New Mexico also has a number of oil refineries, some of which closed prior to 1980. 

Older refineries operated prior to today's ground water and environmental protection rules, 

and operating practices and spills often caused loss of refined product and ground water 

contamination. New Mexico currently has an extensive product recovery and ground water 

cleanup program operating for both active and inactive refinery sites under state rules. 

Recovery techniques and waste product treatment are almost identical to those utilized at 

gasoline station cleanups. Refined product recovered from cleanups is recycled and waste 

water is treated to remove dissolved hydrocarbons. One New Mexico refinery has 

recovered 31,000 barrels of product since 1982 and its value has paid for the cost of 

recovery. This petroleum recovery is jeopardized if water recovered concurrently with the 

petroleum is classified as a hazardous waste because of the dissolved benzene content. 

Equally important, ground water and environmental cleanups at these locations will be 

hindered, if not postponed. Again, this is because of the expense and burden of obtaining 

federal permits, including the cost of additional extensive hydrogeologic investigations that 

were already required as part of the state cleanup process. Facilities required by stale law 

to perform these specialized product recovery and cleanup operations should be allowed 

flexibility of operation and not have rules imposed that are counterproductive to both 

petroleum product recovery and environmental cleanup. 

cc: William J. Riley, EPA Administrator 

James D. Watkins, Secretary of Energy