## Delivering A Federal Update On Regulatory Framework Regarding Managing Produced Water In The Rockies To Ensure Produced Water Is Being Utilized Within Federal Guidelines Regarding Managing Produced Water In The Rockies Produced Water Reuse Initiative 2014– Rocky Mountains October 29-30, 2014 Ayn Schmit EPA Region 8 1

# Produced Water Management Current Practices

• Evaporation ponds/pits

• Surface discharge (with or w/o treatment)

• Land application

• Underground injection

• Reuse/recycling (with or w/o treatment) for drilling & completion activities

• Reuse/recycling (with or w/o treatment) for other uses

• Preferred management options specific to geography and PW quality and very dynamic
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# Produced Water Management What’s Going On in Region 8 States?

• Colorado

• 51% injected; 12% surface discharged



### • North Dakota

• 48% injected for EOR; 48% disposed via Class II injection



### • Montana

• 60% injected for EOR; 26% disposed via Class II injection; 14% evaporation/discharge for beneficial use



### • WY Powder River Basin

• 54% surface discharged; 35% off-channel ponds; 5% irrigation; 3% injected Sources: Denver Post 4/15/13; Argonne National Labs Sept 2009 3

# Produced Water Management Practices to Minimize Impacts

• Closed loop or semi-closed loop drilling

• Siting of pits away from critical resources and operation to maintain liner and ensure adequate freeboard

• Lining of pits/ponds and removal of wastes prior to closure

• RO and other treatment approaches to enable reuse or to reduce pollutants in discharge

• Potential future use of reduced water or waterless HF techniques such as LPG 4

# Produced Water Management Approaches Evaporation Ponds/Pits

• Potential for migration to groundwater

• Potential air emissions of VOCs/HAPs

• Potential spills/releases

• Potential wildlife/migratory bird impacts

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# Produced Water Management Approaches Underground Injection

• Can provide safe alternative to managing on the surface

• Potential for induced seismicity

• If injected improperly, could affect drinking water aquifers

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# Produced Water Management Approaches Surface discharge

• Where quality is adequate, can provide beneficial uses (livestock water, irrigation)

• Can impact receiving waters

– Salinity

– Sodium adsorption to irrigated soils

– Hydrocarbons

– Hydromodification of stream channels

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## Overview of EPA Role in Produced Water Management

• The EPA supports safe and responsible development of unconventional natural gas and oil resources

• EPA authorities address emissions, discharges or accidental releases to air, water and land

• EPA works with state environmental and oil & gas agencies to ensure the implementation of applicable federal laws and regulations

• EPA implements those laws and regulations in Indian country

• EPA has no statutory/regulatory role in managing water use 8

## Federal Water Authorities Applicable to Produced Water Management 

# Clean Water Act

• Water quality criteria and standards

• Effluent Limitations Guidelines and Standards (ELGs)

• National Pollutant Discharge Elimination System Permitting

• National Pretreatment Program 

# Safe Drinking Water Act

• Underground Injection Control Program Class II regulations

• Hydraulic fracturing (HF) using diesel fuels

• Produced water/ flowback injection

• Ensure public health if USDWs become contaminated

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# Produced Water Management Federal Regulatory Framework: Clean Water Act Criteria for the protection of water quality:

• Under the CWA, States develop water quality criteria for specific pollutants to protect human health and aquatic life

• EPA’s recommended national water quality criteria are used by states to develop or update water quality standards

• EPA is updating chloride water criteria for the protection of aquatic life and plans to issue a proposal in July 2015

– May affect discharges of treated or untreated produced water
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## CWA Programs to Control Industrial Discharges

POTW Industry Industry National Pretreatment Program (“indirect dischargers”) National Pollutant Discharge Elimination System (NPDES) discharge permits (“direct dischargers”)

# Produced Water Management Federal Regulatory Framework: Clean Water Act Surface discharges of produced water under the CWA:

• Oil & Gas Extraction Effluent Limitation Guidelines and standards prohibit direct discharge of produced water from onshore O&G wells (40 CFR Part 435)

• However, west of the 98 th meridian, direct discharge for agriculture and wildlife use is allowed if– the produced water is of “good enough quality” to be used for wildlife or livestock watering or other agricultural uses and is “actually put to such use during periods of discharge”

• The ELG does not currently address unconventional oil & gas wastewater discharges to POTWs

• Discharges of produced water from CBM production are not subject to the ELG 12

# Produced Water Management Federal Regulatory Framework: Clean Water Act Revisions to Oil & Gas Extraction ELG:

• In fall 2011 EPA initiated a proposed rulemaking to establish pretreatment requirements for wastewater discharges from unconventional oil & gas producers to POTWs

• EPA plans to propose a pretreatment rule in early 2015 for public comment

• In 2011 EPA also initiated a rulemaking to develop technologybased regulations for CBM wastewater discharges

• EPA recently announced a decision not to move forward with these regulations
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# Produced Water Management Federal Framework: Safe Drinking Water Act

• EPA’s central authority to protect drinking water is from the Safe Drinking Water Act (SDWA)

• SDWA requires EPA to set legal limits on the levels of contaminants in drinking water (MCLs)

• SDWA also requires EPA to protect underground sources of drinking water (USDWs) from contamination caused by underground injection

• The Energy Policy Act of 2005 revised the definition of injection to exempt hydraulic fracturing from the requirement for a UIC permit except when diesel is used

• SDWA contains provisions to ensure protection of human health when a USDW becomes contaminated 14

# Produced Water Management Federal Regulatory Framework: SDWA Injection of fluids associated with O&G production (Class II)

• Injection of fluids recovered from the subsurface for disposal purposes or for enhanced recovery of oil or natural gas

• Construction and siting requirements

– Constructed so they inject into a formation separated from USDWs by confining zone

– Cased and cemented to prevent movement of fluids into or between USDWs

– Internal and external well integrity testing required

• All EPA Region 8 state oil & gas agencies have been delegated implementation of the Class II program except in Indian country

• Approximately 170,000 Class II wells nationwide
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# Produced Water Management Federal Regulatory Framework: SDWA An aquifer exemption is required if injection into a USDW is proposed:

• Criteria for AEs set forth in 40 CFR Part 146.4

• Criteria for exempting aquifer include: “it cannot now and will not in the future serve as a source of drinking water

... ”

• An AE issued by a state must be approved by EPA as a revision to the state’s delegated UIC program

• EPA issues AEs in Indian country

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# Produced Water Management Federal Regulatory Framework: SDWA Hydraulic fracturing with diesel fuels:

• EPA published Permitting Guidance for Oil and Gas Hydraulic Fracturing Activities Using Diesel in February 2014 http://water.epa.gov/type/groundwater/uic/class2/hydraulicfracturing/upload/epa816r14001.pdf

• Outlines for EPA permit writers:

– Requirements for diesel fuels used for hydraulic fracturing wells

– Technical recommendations for permitting those wells

– A description of “diesel fuels”

• Recommendations in the guidance are built on best practices from industry and state oil and gas agencies 17

# Produced Water Management Federal Regulatory Framework Surface evaporation ponds/pits–

• Regulation under the Resource Conservation Recovery Act : E&P wastes excluded from definition of hazardous waste

• Still subject to RCRA solid waste requirements- primarily implemented by state environmental agencies

• EPA retains authority under RCRA and Superfund to address releases of these exempt wastes
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# Produced Water Management Federal Regulatory Framework Surface evaporation ponds/pits– Clean Air Act

• EPA sought comment on VOC emissions from ponds in August 2011 proposed oil & gas NSPS rule

• EPA opted not to include regulations for evaporation ponds in the August 2012 Final Rule

• Some states are issuing CAA Title V permits for evaporation ponds that exceed emissions threshold of 100 T/yr (e.g. Utah and Colorado)

• Beginning in March 2016 ponds/pits in Indian country that emit >5 T/yr will need a permit under EPA’s Tribal NSR minor source rule

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# Produced Water Management Federal Regulatory Framework Spills and releases of produced water– Oil Pollution Act

• Authority applies where sufficient oil is present in spilled material to cause a sheen on waters of the U.S. CERCLA

• Produced water is not excluded from CERCLA under definition of “petroleum” (§101(14) )

• Produced water may be considered a pollutant or contaminant and could contain hazardous substances (e.g. radionuclides, BTEX)

• Release of hazardous substances can prompt CERCLA response actions. CERCLA also provides for response to pollutants and contaminants in some circumstances 20

# Produced Water Management Federal Regulatory Framework Land application–

• Generally not regulated under federal statute/regulation

• Still subject to RCRA imminent and substantial endangerment provision

• Road application for dust control generally allowed/ regulated by states; not federally regulated

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# Produced Water Management Federal Regulatory Framework National Environmental Policy Act

• NEPA requires federal agencies to analyze and disclose the potential environmental impacts of proposed actions and alternatives to those actions– EA/FONSI or EIS

• The Clean Air Act requires EPA to independently review and comment on EISs

• BLM, USFS and other land managers go through NEPA process for planning documents, mineral leasing and project approvals for oil & gas production on federal lands/minerals

• EPA evaluates air/water resource and other environmental concerns in oil & gas EISs as well as adequacy of analysis 2223 

# Produced Water Management in the West Challenges and opportunities

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