[Federal Register Volume 60, Number 5 (Monday, January 9, 1995)]
[Notices]
[Pages 2387-2394]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-416]



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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5133-1]


Final NPDES General Permits for Produced Water and Produced Sand 
Discharges From the Oil and Gas Extraction Point Source Category to 
Coastal Waters in Louisiana (LAG290000) and Texas (TXG290000)

AGENCY: Environmental Protection Agency, Region 6.

ACTION: Issuance of Final NPDES Permits.

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SUMMARY: Region 6 of the United States Environmental Protection Agency 
(EPA) today issues final NPDES General Permits regulating discharges of 
produced water and produced sand derived from oil and gas point source 
facilities. The permits prohibit the discharge of produced water and 
produced sand derived from Coastal Subcategory (40 CFR part 435, 
subpart D) to any water subject to EPA jurisdiction under the Clean 
Water Act. Discharges to ``coastal'' waters of Louisiana and Texas of 
produced water and produced sand derived from most Stripper Subcategory 
(40 CFR part 435, subpart F) and all Offshore Subcategory (40 CFR part 
435, subpart A) facilities covered by these permits are prohibited. 
Under Permit TXG290000, Stripper Subcategory facilities located east of 
the 98th meridian whose produced water is derived from the Carrizo/
Wilcox, Reklaw or Bartosh formations in Texas and whose produced water 
does not exceed 3000 mg/l Total Dissolved Solids may discharge produced 
water subject to effluent limitations on oil and grease of 25 mg/l 
monthly average and 35 mg/l daily maximum. TXG290000 prohibits the 
discharge of produced sand derived from those facilities. Produced 
water derived from Stripper Subcategory and Offshore Subcategory wells 
which discharge to the main deltaic passes of the Mississippi River or 
to the Atchafalaya River below Morgan City including Wax Lake Outlet, 
are not covered by Permit No. LAG290000, but may be regulated in future 
NPDES permitting actions. Permittees include commercial disposal 
facilities as well as oil and gas operators generating produced water 
and sand.
    Region 6 is also issuing an administrative order requiring 
permittees discharging produced water from existing Coastal, Stripper 
or Offshore Subcategory wells which must meet the No Discharge 
requirement for produced water to meet that requirement no later than 
January 1, 1997 unless an earlier compliance date is required by the 
State.

DATES: These permits will become effective on February 8, 1995.

ADDRESSES: Notifications required by these permits should be sent to 
the Water Management Division, Enforcement Branch (6W-EA), EPA Region 
6, P.O. Box 50625, Dallas, Texas 75202.

FOR FURTHER INFORMATION: Contact Ms. Ellen Caldwell, EPA Region 6, 1445 
Ross Avenue, Dallas, Texas 75202; telephone: (214) 665 7513.

SUPPLEMENTARY INFORMATION: EPA issues these general permits pursuant to 
its authority under Section 402 of the Clean Water Act, 33 U.S.C. 1342. 
These permits cover discharges of produced water and produced sand 
derived from Oil and Gas Point Source Category Facilities to coastal 
waters of Louisiana and Texas. Discharges regulated by these permits 
include those from Coastal Subcategory (40 CFR part 435, subpart D) 
facilities in Louisiana and Texas, discharges from the Stripper 
Subcategory (40 CFR part 435, subpart F) that discharge to coastal 
waters of Louisiana and Texas, and discharges from some Offshore 
Subcategory (40 CFR part 435, subpart A) to coastal waters of Louisiana 
and Texas. These permits do not authorize discharges from ``new 
sources'' as defined in 40 CFR 122.2.
    Public notice of the draft permits was published in the Federal 
Register on December 22, 1992 (57 FR 60926) and in the Houston Post and 
New Orleans Times Picayune on January 9, 1993. As then announced, the 
comment period was to close on February, 9, 1993, but Region 6 
subsequently extended it to March 15, 1993 because of numerous 
telephone and written requests for additional time. (57 FR 6968, 
February 3, 1993). Region 6 considered all comments it received in 
formulating the final permits. The Region has prepared a detailed 
Response to Comments, but is not publishing it in this Federal Register 
notice for practical reasons. A copy may be obtained from Ms. Caldwell 
at the address supplied above.
    EPA Region 6 made a number of changes to the permits as a result of 
comments. Under Permit No. TXG290000, facilities in the Stripper 
Subcategory located east of the 98th meridian whose produced water 
comes from the Carrizo/Wilcox, Reklaw or Bartosh formations in Texas 
and whose produced water does not exceed 3000 mg/l Total Dissolved 
Solids are allowed to discharge produced water subject to an effluent 
limitation of 3000 mg/l for Total Dissolved Solids and oil and grease 
limits of 25 mg/l monthly average and 35 mg/l daily maximum. Associated 
[[Page 2388]] changes to the wording of Part I.A and Part II of the 
permits reflect these produced water discharge authorization; e.g., 
notices of intent to be covered and Discharge Monitoring Reports are 
now required for facilities allowed to discharge. In response to 
comments on potential ambiguities, clarifying wording changes and 
additions are also included in the final permits. Produced water 
discharges derived from Stripper Subcategory and Offshore Subcategory 
wells into the main deltaic passes of the Mississippi River, or to the 
Atchafalaya River below Morgan City including Wax Lake Outlet, have 
been excluded from coverage under Permit No. LAG290000 and may be the 
subject of future regulatory actions. These changes are discussed in 
greater detail in the written Response to Comments.
    The Region is also issuing an administrative order requiring 
permittees discharging produced water from existing Coastal, Stripper 
or Offshore Subcategory wells which must meet the No Discharge 
requirement for produced water, to comply with that requirement no 
later than January 1, 1997 unless an earlier compliance date is 
required by the State. Many discharges in Louisiana are required to 
cease sooner than January 1, 1997. As explained in the Fact Sheet for 
the Draft Permits, Region 6 was not required to publish its proposed 
administrative order nor is the final order subject to judicial review 
before its enforcement. Region 6 nevertheless solicited comments on a 
draft order and responses proved helpful in formulating the final 
order.

Other Legal Requirements

A. State Certification

    Under Section 401(a)(1) of the Act, EPA may not issue a NPDES 
permit until the State in which the discharge will occur grants or 
waives certification to ensure compliance with appropriate requirements 
of the Act and State law. The State of Louisiana, after review of the 
permit, has certified that the Louisiana permit will comply with 
applicable state water quality standards or limitations. The State of 
Texas has waived certification.

B. The Endangered Species Act

    The Endangered Species Act (ESA), 16 USC 1536, requires Federal 
agencies to insure that their actions, such as permit issuance, are 
unlikely to jeopardize the continued existence of any listed endangered 
or threatened species or result in the destruction or adverse 
modification of designated critical habitat. In informal consultation 
under ESA Section 7(a)(2), the U. S. Fish and Wildlife Service has 
concurred with EPA's determination that issuance of these permits is 
unlikely to adversely affect any federally-listed species or designated 
critical habitats.

C. The Coastal Zone Management Act

    In accordance with Section 307(c)(3) of the Coastal Zone Management 
Act, the Louisiana Coastal Zone Management Division of Louisiana 
Department of Natural Resources has reviewed NPDES permit LAG290000 and 
found its issuance consistent with the Louisiana Coastal Zone 
Management Program.

D. The Paperwork Act

    The information collection requirements of these general permits 
have been approved by OMB under provisions of the Paperwork Reduction 
Act, 44 U.S.C. 3501 et.seq. in prior submissions made for the NPDES 
permit program.

E. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires that federal agencies 
prepare a regulatory flexibility analysis for regulations that will 
have a significant impact on a substantial number of small entities. 
The impact on small entities was discussed in some detail in the Fact 
Sheet (57 FR 60943) for the current permits. Because certain groups of 
wells are now allowed by these final permits to discharge produced 
water and, for the Louisiana permit, compliance with produced water No 
Discharge limits will in many cases be required by state regulations 
sooner than required by this permit, the impact on small entities will 
be even less than anticipated for the proposed permits.
    NPDES Permits LAG290000 and TXG290000 are hearby issued. In 
addition, the General Administrative Order which applies to those 
permits is hereby issued and appears following NPDES Permits LAG290000 
and TXG290000.

    Signed this 22nd day of December, 1994.
Myron O. Knudson,
Director, Water Management Division, EPA Region 6.

    In compliance with the provisions of the Federal Water Pollution 
Control Act, as amended (33 U.S.C. 1251 et seq: the ``Act''), these 
permits prohibit the discharge of produced water and produced sand 
derived from Oil and Gas Point Source Category facilities to 
``coastal'' waters of Louisiana and Texas, as described below, in 
accordance with effluent limitations and other conditions set forth in 
Parts I and II. Facilities covered by these permits include those in 
the Coastal Subcategory (40 CFR part 435, subpart D), the Stripper 
Subcategory (40 CFR part 435, subpart F) that discharge to ``coastal'' 
waters of Louisiana and Texas, and the Offshore Subcategory (40 CFR 
part 435, subpart A) which discharge to ``coastal'' waters of Louisiana 
and Texas.
    These permits do not apply to ``new sources'' as defined in 40 CFR 
122.2.
    These permits, except for certain portions listed in Part I.B., 
shall become effective February 8, 1995, and expire at midnight on 
February 8, 2000.

Part I

Section A. General Permit Coverage and Notification Requirements

1. Operations Covered
    a. Facilities in the Coastal Subcategory (40 CFR part 435, subpart 
D) located in Louisiana and Texas. Location of a Coastal Subcategory 
facility is determined by the location of the wellhead associated with 
that facility.
    b. Facilities in the Offshore Subcategory (40 CFR part 435, subpart 
A) and the Stripper subcategory (40 CFR part 435, subpart F) which 
discharge to ``coastal'' waters of Louisiana or Texas. Note that 
facilities in the Stripper Subcategory and the Offshore Subcategory 
that discharge directly to a major deltaic pass of the Mississippi 
River or to the Atchafalaya River, including Wax Lake Outlet, below 
Morgan City are not covered by Permit No. LAG290000.
    c. Facilities which dispose of produced water or produced sand 
derived from Coastal Subcategory facilities located in Louisiana or 
Texas.
    d. Facilities which dispose of produced water or produced sand 
derived from Stripper or Offshore Subcategory facilities by discharge 
to coastal waters of Louisiana or Texas.
2. Permittees Covered
    Operators of facilities listed in Part I.A.1 of these permits.
    3. Notification Requirements
    a. Operators of facilities whose discharge of produced water and 
produced sand is prohibited by these permits are automatically covered; 
a written notification of intent to be covered by these permits is not 
required.
    b. Operators of facilities whose produced water discharge is 
allowed (See Part I.B.2.a of these permits) are required to submit a 
written notification of intent to be covered by these permits.
    Written notification of intent to be covered, including the legal 
name and address of the operator, the lease (or [[Page 2389]] lease 
block) number assigned by the Railroad Commission of Texas or, if none, 
the name commonly assigned to the lease area, the type of facilities 
located within the lease (or lease block), the name of the formation 
from which the produced water originates and the Total Dissolved Solids 
concentration of the produce water shall be submitted:
    (1) For existing discharges of produced water, within 45 days of 
the effective date of this permit.
    (2) For new discharges of produced water, within fourteen days 
prior to the commencement of discharge.
    c. Because these permits cover only produced water and produced 
sand, discharges of other waste waters from Coastal Subcategory wells 
must apply to be covered by NPDES Permits LAG330000 or TXG330000, which 
cover the discharge of waste discharges, other than produced water and 
produced sand, from Coastal Subcategory production (and drilling) 
facilities.
4. Termination of Operations
    Lease (or lease block) operators shall notify the Regional 
Administrator within 60 days after the permanent termination of 
discharges from their facilities. In addition, lease (or lease block) 
operators shall notify the Regional Administrator within 30 days of any 
transfer of ownership.

Section B. Application for NPDES Individual Permit

    1. Any operator authorized by this permit may request to be 
excluded from the coverage of this general permit by applying for an 
individual permit. The operator shall submit an application together 
with the reasons supporting the request to the Regional Administrator.
    2. When an individual NPDES permit is issued to an operator 
otherwise subject to this general permit, the applicability of this 
permit to the owner or operator is automatically terminated on the 
effective date of the individual permit.

Section C. General Permit Limits

1. Permit Conditions Applicable to LAG290000
a. Prohibitions
    Permittees shall not discharge nor shall they cause or allow the 
discharge of produced water and produced sand. Operators of facilities 
generating pollutants regulated under this permit shall take reasonable 
positive steps to assure said pollutants are not unlawfully discharged 
to waters of the United States by third parties and shall maintain 
documentation of those steps for no less than three years.
b. Other Requirements
    All dischargers must comply with any more stringent requirements 
contained in Louisiana Water Quality Regulations, LAC: 33,IX,7.708.
2. Permit Conditions Applicable to TXG290000
a. Prohibitions
    Permittees shall not discharge nor shall they cause or allow the 
discharge of produced water or produced sand. Operators of facilities 
generating pollutants regulated under this permit shall take reasonable 
positive steps to assure said pollutants are not unlawfully discharged 
to waters of the United States by third parties and shall maintain 
documentation of those steps for no less than three years.
    Exception to prohibition on discharge of produced water: Facilities 
in the Stripper Subcategory located east of the 98th meridian whose 
produced water comes from the Carrizo/Wilcox, Reklaw or Bartosh 
formations in Texas and whose produced water does not exceed 3000 mg/l 
Total Dissolved Solids shall meet the following limits and monitoring 
requirements:
    (1) Produced water discharges must meet both a daily maximum of 35
mg/l and a monthly average of 25 Pmg/l for oil and grease.
    (2) Monitoring for oil and grease shall be performed once per 
month. The sample type may be a grab, or a 24-hour composite consisting 
of the arithmetic average of the results of 4 grab samples taken over a 
24-hour period.
    (3) Produced water flow monitoring requirement: Once per month, an 
estimate of the flow in MGD (million gallons per day) must be made and 
recorded.

Part II

(Applicable to LAG290000 and TXG290000)

Section A. General Conditions

1. Introduction
    In accordance with the provisions of 40 CFR 122.41 et. seq., this 
permit incorporates by reference ALL conditions and requirements 
applicable to NPDES permits set forth in the Clean Water Act, as 
amended (hereinafter known as the ``Act'') as well as all applicable 
EPA regulations.
2. Duty To Comply
    The permittee must comply with all conditions of this permit. Any 
permit non-compliance constitutes a violation of the Clean Water Act 
and is grounds for enforcement action and/or for requiring a permittee 
to apply for and obtain an individual NPDES permit.
3. Permit Flexibility
    This permit may be modified, revoked and reissued, or terminated 
for cause, in accordance with 40 CFR 122.62-122.64. The filing for a 
permit modification, revocation and reissuance, or termination, or a 
notification of planned changes or anticipated noncompliance, does not 
stay any permit condition.
4. Property Rights
    This permit does not convey any property rights of any sort, or any 
exclusive privileges nor does it authorize any injury to private 
property or any invasion of personal rights, or any infringement of 
Federal, State or local laws or regulations.
5. Duty To Provide Information
    The permittee shall furnish to the Regional Administrator, within a 
reasonable time, any information which the Regional Administrator may 
request to determine whether cause exists for modifying, revoking and 
reissuing, or terminating this permit, or to determine compliance with 
this permit. The permittee shall also furnish the Regional 
Administrator, upon request, copies of records required to be kept by 
this permit.
6. Criminal and Civil Liability
    Except as provided in permit conditions on ``Bypassing'' and 
``Upsets'', nothing in this permit shall be construed to relieve the 
permittee from civil or criminal penalties for noncompliance. Any false 
or materially misleading representation or concealment of information 
required to be reported by the provisions of the permit, the Act or 
applicable CFR regulations which avoids or effectively defeats the 
regulatory purpose of the Permit may subject the permittee to criminal 
enforcement pursuant to 18 USC Section 1001.
7. Oil and Hazardous Substance Liability
    Nothing in this permit shall be construed to preclude the 
institution of any legal action or relieve the permittee from any 
responsibilities, liabilities, or penalties to which the permittee may 
be subject under Section 311 of the Clean Water Act.
8. State Laws
    Nothing in this permit shall be construed to preclude the 
institution of any legal action or relieve the permittee from any 
responsibilities, liabilities, or penalties established pursuant to any 
[[Page 2390]] applicable State law or regulation under authority 
preserved by Section 510 of the Clean Water Act.
9. Severability
    The provisions of this permit are severable, and if any provision 
of this permit or the application of any provision of this permit to 
any circumstance is held invalid, the application of such provision to 
other circumstances, and the remainder of this permit, shall not be 
affected thereby.

Section B. Proper Operation and Maintenance

1. Need To Halt or Reduce Not a Defense
    It shall not be a defense for a permittee in an enforcement action 
that it would have been necessary to halt or reduce the permitted 
activity in order to maintain compliance with the conditions of this 
permit.
2. Duty To Mitigate
    The permittee shall take all reasonable steps to minimize or 
prevent any discharge in violation of this permit which has a 
reasonable likelihood of adversely affecting human health or the 
environment.
3. Proper Operation and Maintenance
    The permittee shall at all times properly operate and maintain all 
facilities and systems of treatment and control (and related 
appurtenances) which are installed and used by the permittee to achieve 
compliance with the conditions of this permit. This provision requires 
the operation of backup or auxiliary facilities of similar systems 
which are installed by a permittee only when the operation is necessary 
to achieve compliance with the conditions of the permit.
4. Bypass of Facilities
a. Definitions
    (1) ``Bypass'' means the intentional diversion of waste streams 
from any portion of a facility.
    (2) ``Severe property damage'' means substantial physical damage to 
property, damage to the treatment facilities that causes them to be 
inoperable, or substantial and permanent loss of natural resources than 
can reasonably be expected to occur in the absence of bypass. Severe 
property damage does not mean economic loss caused by delays in 
production.
b. Notice
    (1) Anticipated bypass. If the permittee knows in advance of the 
need for a bypass, it shall submit prior notice, if possible at least 
ten days before the date of the bypass.
    (2) Unanticipated bypass. The permittee shall, within 24 hours, 
submit notice of an unanticipated bypass as required in Part II.D.2.
c. Prohibition of Bypass
    (1) Bypass is prohibited, and the Regional Administrator may take 
enforcement action against a permittee for bypass, unless:
    (a) Bypass was unavoidable to prevent loss of life, personal injury 
or severe property damage;
    (b) There were no feasible alternatives to the bypass, such as the 
use of auxiliary treatment facilities, retention of untreated wastes, 
or maintenance during normal periods of equipment downtime. This 
condition is not satisfied if adequate back-up equipment should have 
been installed in the exercise of reasonable engineering judgement to 
prevent a bypass which occurred during normal periods of equipment 
downtime or preventive maintenance; and
    (c) The permittee submitted notices as required by Part II.B.4.b.
    (2) The Regional Administrator may approve an anticipated bypass, 
after considering its adverse effects, if the Regional Administrator 
determines that it will meet the conditions listed at Part 
II.B.4.c.(1).
5. Upset Conditions
a. Definition
    ``Upset'' means an exceptional incident in which there is 
unintentional and temporary noncompliance with technology-based 
effluent limitations because of factors beyond the reasonable control 
of the permittee. An upset does not include noncompliance to the extent 
caused by operational error, improperly designed facilities, inadequate 
facilities, lack of preventive maintenance, or careless or improper 
operation.
    b. Effects of an Upset. An upset constitutes an affirmative defense 
of an action brought for noncompliance with such technology-based 
permit effluent limitations if the requirements of Part II.B.5.c. are 
met. No determination made during administrative review of claims that 
noncompliance was caused by upset, and before an action for 
noncompliance, is final administrative action subject to judicial 
review.
    c. Conditions necessary for a demonstration of upset. The permittee 
who wishes to establish the affirmative defense of upset shall 
demonstrate, through properly signed, contemporaneous logs, or other 
relevant evidence that:
    (1) An upset occurred and that the permittee can identify the 
cause(s) of the upset;
    (2) The permitted facility was at the time being properly operated;
    (3) The permittee submitted notice of the upset as required by Part 
II.D.2; and
    (4) The permittee complied with Part II.B.2.
    d. Burden of Proof. In any enforcement proceeding the permittee 
seeking to establish the occurrence of an upset has the burden of 
proof.
6. Removed Substances
    Solids, sludges, filter backwash, or other pollutants removed in 
the course of treatment or control of waste waters shall be disposed of 
in a manner such as to prevent any pollution from such materials from 
entering waters of the United States.

Section C. Monitoring and Records

1. Inspection and Entry
    The permittee shall allow the Regional Administrator or an 
authorized representative, upon the presentation of credentials and 
other documents as may be required by law, to:
    (a) Enter upon the permittee's premises where a regulated facility 
or activity is located or conducted, or where records must be kept 
under the conditions of this permit;
    (b) Have access to and copy, at reasonable times, any records that 
must be kept under the conditions of this permit;
    (c) Inspect at reasonable times any facilities, equipment 
(including monitoring and control equipment), practices, or operations 
regulated or required under this permit; and
    (d) Sample or monitor at reasonable times, for the purposes of 
assuring permit compliance or as otherwise authorized by the Clean 
Water Act, any substances or parameters at any location.
2. Representative Sampling
    Samples and measurements taken as required herein shall be 
representative of the volume and nature of the monitored discharge.
3. Retention of Records
    The permittee shall retain records of all monitoring information, 
including all calibration and maintenance records and all original 
strip chart recordings for continuous monitoring instrumentation, and 
copies of all reports required by this permit, for a period of at least 
3 years from the date of the sampling, measurement, or reporting. This 
period may be extended by request of the Regional Administrator at any 
time. [[Page 2391]] 
    The operator shall maintain records at development and production 
facilities for 3 years, wherever practicable and at a specific shore-
based site whenever not practicable. The operator is responsible for 
maintaining records at exploratory facilities while they are 
discharging under the operator's control and at a specified shore-based 
site for the remainder of the 3-year retention period.
4. Record Contents
    Records of monitoring information shall include:
    (a) The date, exact place, and time of sampling or measurements,
    (b) The individual(s) who performed the sampling or measurements,
    (c) The date(s) analyses were performed,
    (d) The individual(s) who performed the analyses,
    (e) The analytical techniques or methods used, and
    (f) The results of such analyses.
5. Monitoring Procedures
    Monitoring must be conducted according to test procedures approved 
under 40 CFR Part 136, unless other test procedures have been specified 
in this permit.
6. Discharge Rate/Flow Measurements
    Appropriate flow measurement devices consistent with accepted 
practices shall be selected, maintained, and used to ensure the 
accuracy and reliability of measurements of the volume of monitored 
discharges. The devices shall be installed, calibrated, and maintained 
to insure that the accuracy of the measurements are consistent with the 
accepted capability of that type of device. Devices selected shall be 
capable of measuring flows with a maximum deviation of less than 
<plus-minus>10% from true discharge rates throughout the range of 
expected discharge volumes.

Section D. Reporting Requirements

1. Anticipated Noncompliance
    The permittee shall give advance notice to the Regional 
Administrator of any planned changes in the permitted facility or 
activity which may result in noncompliance with permit requirements.
2. Discharge Monitoring Reports
    For facilities which are allowed to discharge and for which 
monitoring is required by Part I of these permits, the operator of each 
lease (or lease block) shall be responsible for submitting monitoring 
results for all facilities within that area (i.e., lease or lease 
block). The monitoring results for the facilities within the particular 
lease (or lease block) shall be summarized on the annual Discharge 
Monitoring Report for that lease (or lease block).
    Monitoring results obtained during the previous 12 months shall be 
summarized and reported on a Discharge Monitoring Report (DMR) Form 
(EPA No. 3320-1). The highest monthly average for all activity within 
each lease (or lease block) shall be reported. The highest daily 
maximum sample taken during the reporting period shall be reported as 
the daily maximum concentration. (See ``Definitions'' for more detailed 
explanations of these terms).
    If any category of waste (discharge) is not applicable for all 
facilities within the lease (or lease block) due to the type of 
operation (e.g. drilling, production), ``no discharge'' must be 
recorded for those categories on the DMR. If all facilities within a 
lease block have had no activity during the reporting period, then ``no 
activity'' must be written on the DMR. All pages of the DMR must be 
signed and certified as required by Part II.D.9 of these permits and 
submitted when due.
    The Permittee must complete all empty blanks in the DMR unless 
there has been absolutely no activity or no discharge within the lease 
(or lease block) for the entire reporting period. In these cases, EPA 
Region VI will accept a listing of leases or lease blocks with no 
discharges or no activity, in lieu of submitting actual DMR's for these 
areas. This listing must specify the permittee's NPDES General Permit 
Number, lease or lease block description, and EPA-assigned outfall 
number. The listing must also include the certification statement 
presented in Part II.D.9 of these permits and an original signature of 
the designated responsible official.
    Upon receipt of a notification of intent to be covered (see Part 
I.A.2 of these permits for facilities requiring such notification), the 
permittee will be notified of its specific outfall number applicable to 
that lease (or lease block) and will be informed of the discharge 
monitoring report due date.
    All notices and reports required under this permit shall be sent to 
EPA Region 6 at the address below:

Director, Water Management Division, USEPA, Region 6, Enforcement 
Branch (6W-EA), P.O. Box 50625, Dallas, TX 75270
3. Additional Monitoring by the Permittee
    If the permittee monitors any pollutant more frequently than 
required by this permit, using test procedures approved under 40 CFR 
Part 136 or as specified in this permit, the results of this monitoring 
shall be included in the calculation and reporting of the data 
submitted in the DMR. Such increased monitoring frequency shall also be 
indicated on the DMR.
4. Averaging of Measurements
    Calculations for all limitations which require averaging of 
measurements shall utilize an arithmetic mean unless otherwise 
specified by the Regional Administrator in the permit.
5. Twenty-four Hour Reporting
    a. For facilities which are allowed to discharge produced water by 
Part I.B.2.a of Permit No. TXG290000, the permittee shall report any 
noncompliance which may endanger health or the environment (including 
any spill that requires oral reporting to the state regulatory 
authority). Information shall be provided orally within 24 hours from 
the time the permittee becomes aware of the circumstances. A written 
submission shall also be provided within 5 days of the time the 
permittee becomes aware of the circumstances. The written submission 
shall contain a description of the noncompliance and its cause; the 
period of noncompliance, including exact dates and times, and if the 
noncompliance has not been corrected, the anticipated time it is 
expected to continue; and steps taken or planned to reduce, eliminate, 
and prevent reoccurrence of the noncompliance. The Regional 
Administrator may waive the written report on a case-by-case basis if 
the oral report has been received within 24 hours.
    The following shall be included as information which must be 
reported within 24 hours:
    (1) Any unanticipated bypass which exceeds any effluent limitation 
in the permit;
    (2) Any upset which exceeds any effluent limitation in the permit.
    (3) Violations of a maximum daily discharge limitation or daily 
minimum toxicity limitation for any of the pollutants listed by the 
Regional Administrator in Part III of the permit to be reported within 
24 hours.
    The reports should be made to Region 6 by telephone at (214) 665-
6593. The Regional Administrator may waive the written report on a 
case-by-case basis if the oral report has been received within 24 
hours.
    b. For all facilities prohibited from discharging produced water, 
the permittee shall report any noncompliance with these permits, bypass 
or upset. Any information shall [[Page 2392]] be provided orally within 
24 hours from the time the permittee becomes aware of the 
circumstances. A written submission shall also be provided within 5 
days of the time the permittee becomes aware of the circumstances. The 
written submission shall contain a description of the noncompliance and 
its cause; the period of noncompliance, including exact dates and 
times, and if the noncompliance has not been corrected, the anticipated 
time it is expected to continue; and steps taken or plans to reduce, 
eliminate, and prevent reoccurrence of the noncompliance. The 24 hour 
oral reporting and follow up written submission requirement in Part 
II.D.5.b of these permits shall become effective 60 days after the 
effective date of these permits.
6. Other Noncompliance
    For facilities which are allowed to discharge by Part I.B.2.a of 
Permit No. TXG290000, the permittee shall report all instances of 
noncompliance not reported under Part II, Section D, paragraphs 2 and 5 
at the time monitoring reports are submitted. The reports shall contain 
the information listed in Section D, paragraph 5.
7. Other Information
    Where the permittee becomes aware that it failed to submit any 
relevant facts in any report to the Regional Administrator, it shall 
promptly submit such facts or information.
8. Changes in Discharges of Toxic Substances
    The permittee shall notify the Regional Administrator as soon as it 
knows or has reason to believe:
    a. That any activity has occurred or will occur which would result 
in the discharge, on a routine or frequent basis, or any toxic 
pollutant which is not limited in the permit, if that discharge will 
exceed the highest of the ``notification levels'' described in 40 CFR 
122.42(a)(l).
    b. That any activity has occurred or will occur which would result 
in any discharge, on a non-routine or infrequent basis, of a toxic 
pollutant which is not limited in the permit, if that discharge will 
exceed the highest of the ``notification levels'' described in 40 CFR 
122.42(a)(2).
9. Signatory Requirements
    All reports, or information submitted to the Regional Administrator 
shall be signed and certified as follows:
    a. For a corporation. By a responsible corporate officer. For the 
purpose of this section, a responsible corporate officer means:
    (1) A president, secretary, treasurer, or vice-president of the 
corporation in charge of a principle business function, or decision 
making functions for the corporation, or
    (2) The manager of one or more manufacturing, production, or 
operating facilities employing more than 250 persons or having gross 
annual sales or expenditures exceeding $25 million (in second-quarter 
1980 dollars), if authority to sign documents has been assigned or 
delegated to the manager in accordance with corporate procedures.
    b. For a partnership or sole proprietorship. By a general partner 
or the proprietor, respectively.
    c. For a municipality, State, Federal or other public agency. 
Either a principle executive office or ranking elected official. For 
purposes of this section, a principle executive officer of a Federal 
agency includes:
    (1) The chief executive officer of the agency, or
    (2) A senior executive officer having responsibility for the 
overall operations of a principle geographic unit of the agency.
    d. Alternatively, all reports required by the permit and other 
information requested by the Regional Administrator may be signed by a 
person described above or by a duly authorized representative only if:
    (1) the authorization is made in writing by a person described 
above;
    (2) the authorization specifies either an individual or a position 
having responsibility for the overall operation of the regulated 
facility or activity, such as the position of plant manager, operator 
of a well or oil field, superintendent, or position of equivalent 
responsibility, or an individual or position having overall 
responsibility for environmental matters for the company. A duly 
authorized representative may thus be either a individual or an 
individual occupying a named position; and
    (3) the written authorization is submitted to the Regional 
Administrator.
    e. Certification. Any person signing a document under this section 
shall make the following certification:

    I certify under penalty of law that this document and all 
attachments were prepared under my direction or supervision in 
accordance with a system designed to assure that qualified personnel 
properly gather and evaluate the information submitted. Based on my 
inquiry of the person or persons who manage the system, or those 
persons directly responsible for the gathering of the information, 
the information submitted is, to the best of my knowledge and 
belief, true, accurate and complete. I am aware that there are 
significant penalties for submitting false information, including 
the possibility of fine and imprisonment for knowing violations.
10. Availability of Reports
    Except for applications, effluent data, and other data specified in 
40 CFR 122.7, any information submitted pursuant to this permit may be 
claimed confidential by the submitter. If no claim is made at the time 
of submission, information may be made available to the public without 
further notice.

Section E. Penalties for Violations of Permit Conditions

1. Criminal
a. Negligent Violations
    The Act provides that any person who negligently violates permit 
conditions implementing Sections 301, 302, 306, 307 or 308 of the Act 
is subject to a fine of not less than $2500 nor more than $25,000 per 
day of violation, or by imprisonment for not more than 1 year, or both.
b. Knowing Violations
    The Act provides that any person who knowingly violates permit 
conditions implementing Sections 301, 302, 306, 307 or 308 of the Act 
is subject to a fine of not less than $5,000 per day of violation nor 
more than $50,000 per day of violation, or by imprisonment for not more 
than 3 years, or both.
c. Knowing Endangerment
    The Act provides that any person who knowingly violates permit 
conditions implementing Sections 301, 302, 306, 307 or 308 of the Act 
and who knows at the time that he is placing another person in imminent 
danger of death or serious bodily injury is subject to a fine of not 
more than $250,000, or by imprisonment for not more than 15 years, or 
both.
d. False Statements
    The Act provides that any person who knowingly makes any false 
material statement, representation, or certification in any 
application, record, report, plan, or other document filed or required 
to be maintained under the Act or who knowingly falsifies, tampers 
with, or renders inaccurate, any monitoring device or method required 
to be maintained under the Act, shall upon conviction, be punished by a 
fine of not more than $10,000 per day, or by imprisonment for not more 
than 2 years, or by both. If a conviction of a person is for a 
violation committed after a first conviction of such a person under 
this paragraph, punishment shall be by a fine of not more than $20,000 
per day of violation, or by imprisonment of not [[Page 2393]] more than 
4 years, or by both (See Section 309(c)(4). of the Clean Water Act).
2. Civil Penalties
    The Act provides that any person who violates a permit condition 
implementing Sections 301, 302, 306, 307 or 308 of the Act is subject 
to a civil penalty not to exceed $25,000 per day for each violation.
3. Administrative Penalties
    The Act provides that any person who violates a permit condition 
implementing Sections 301, 302, 306, 307, 308, 318, or 405 of the Act 
is subject to a civil penalty not to exceed $25,000 per day for each 
violation.
a. Class I Penalty
    Not to exceed $10,000 per violation nor shall the maximum amount 
exceed $25,000.
b. Class II Penalty
    Not to exceed $10,000 per day for each day during which the 
violations continues nor shall the maximum amount exceed $125,000.

Section F. Definitions

    All definitions in Section 502 of the Act shall apply to this 
permit and are incorporated herein by reference. Unless otherwise 
specified in this permit, additional definitions words or phrases used 
in this permit are as follows:
    1. Act means the Clean Water Act (33 U.S.C. 1251 et. seq.) as 
amended.
    2. Applicable effluent standards and limitations means all state 
and Federal effluent standards and limitations to which a discharge is 
subject under the Act, including, but not limited to, effluent 
limitations, standards of performance, toxic effluent standards and 
prohibitions, and pretreatment standards.
    3. Applicable water quality standards means all water quality 
standards to which a discharge is subject under the Act and which have 
been (a) approved or permitted to remain in effect by the Administrator 
following submission to him/her, pursuant to Section 303(a) of the Act, 
or (b) promulgated by the Administrator pursuant to Section 303(b) or 
303(c) of the Act.
    4. Bypass means the intentional diversion of waste streams from any 
portion of a treatment facility.
    5. Coastal waters are defined as waters of the United States (as 
defined at 40 CFR 122.2) located landward of the territorial seas.
    6. Daily Discharge means the discharge of a pollutant measured 
during a calendar day or any 24-hour period that reasonably represents 
the calendar day for purposes of sampling. For pollutants with limits 
expressed in units of measurement other than mass, the ``daily 
discharge'' is calculated as the average measurement of the pollutant 
over the sampling day. ``Daily discharge'' determination of 
concentration made using a composite sample shall be the concentration 
of the composite sample. When grab samples are used, the ``daily 
discharge'' determination of concentration shall be arithmetic average 
(weighted by flow value) of all samples collected during that sampling 
day.
    7. Daily Maximum discharge limitation means the highest allowable 
``daily discharge'' during the calendar month.
    8. Environmental Protection Agency means the U.S. Environmental 
Protection Agency.
    9. Monthly Average (also known as daily average) discharge 
limitations means the highest allowable average of ``daily 
discharge(s)'' over a calendar month, calculated as the sum of all 
``daily discharge(s)'' measured during a calendar month divided by the 
number of ``daily discharge(s)'' during that month. When the permit 
establishes monthly average concentration effluent limitations or 
conditions, the monthly average concentration means the arithmetic 
average (weighted by flow) of all ``daily discharge(s)'' of 
concentration determined during the calendar month.
    10. National Pollutant Discharge Elimination System means the 
national program for issuing, revoking and reissuing, terminating, 
monitoring and enforcing permits, and imposing and enforcing 
pretreatment requirements, under Sections 307, 318, 402 and 405 of the 
Act.
    11. Produced sand means sand and other particulate matter from the 
producing formation and production piping (including corrosion 
products), as well as source sand and hydrofrac sand. Produced sand 
also includes sludges generated by any chemical polymer used in a 
produced water treatment system.
    12. Produced water means water (brine) brought up from the 
hydrocarbon-bearing strata during the extraction of oil and gas, and 
can include formation water, injection water, and any chemicals added 
down hole or during the oil/water separation process.
    13. Regional Administrator means the Administrator of the U.S. 
Environmental Protection Agency, Region 6.
    14. Severe property damage means substantial physical damage to 
property, damage to treatment facilities which causes them to become 
inoperable, or substantial and permanent loss of natural resources 
which can reasonably be expected to occur in the absence of bypass. 
Severe property damage does not mean economic loss caused by delays in 
production.
    15. Territorial seas refers to ``the belt of the seas measured from 
the line of ordinary low water along that portion of the coast which is 
in direct contact with the open sea and the line marking the seaward 
limit of inland waters, and extending seaward a distance of three 
miles.''
    16. Upset means an exceptional incident in which there is 
unintentional and temporary noncompliance with technology-based permit 
effluent limitations because of factors beyond the reasonable control 
of the permittee. An upset does not include noncompliance to the extent 
caused by operational error, improperly designed treatment facilities, 
inadequate treatment facilities, lack of preventive maintenance, or 
careless or improper operation.

Section C. Monitoring and Records

United States Environmental Protection Agency, Region 6, In Re: NPDES 
Permit Nos. LAG290000 and TXG290000, General Administrative Compliance 
Order

    The following Findings are made and Order issued pursuant to the 
authority vested in the Administrator of the Environmental Protection 
Agency (EPA) by Section 309(a)(3) of the Clean Water Act (hereinafter 
``the Act''), 33 U.S.C. 1319(a)(3), and duly delegated to the Regional 
Administrator, Region 6, and duly redelegated to the undersigned 
Director, Water Management Division, Region 6. Failure to comply with 
the interim requirements established in this Order constitutes a 
violation of this Order and the NPDES permits.

Findings

I

    The term ``waters of the United States'' is defined at 40 C.F.R. 
122.2. The term ``coastal'' is defined in NPDES Permits LAG290000 and 
TXG290000 and includes facilities which would be considered ``Onshore'' 
but for the decision in API v. EPA 661 F.2 340 (5th Cir. 1981). The 
term ``existing'' means spudded prior to the effective date of NPDES 
Permits LAG290000 and TXG290000.

II

    Pursuant to the authority of Section 402(a)(1) of the Act, 33 
U.S.C. Sec. 1342, [[Page 2394]] Region 6 issued National Pollutant 
Discharge Elimination System (NPDES) Permits No. LAG290000 and 
TXG290000 with an effective date of February 8, 1995. These permits 
prohibit the discharge of produced water and produced sand derived from 
Oil and Gas Point Source Category facilities to ``coastal'' waters of 
Louisiana and Texas in accordance with effluent limitations and other 
conditions set forth in Parts I and II of these permits. Facilities 
covered by these permits include those in the Coastal Subcategory (40 
CFR 435, Subpart D), the Stripper Subcategory (40 CFR 435, Subpart F) 
that discharge to ``coastal'' waters of Louisiana and Texas, and the 
Offshore Subcategory (40 CFR 435, Subpart A) which discharge to 
``coastal'' waters of Louisiana and Texas.

III

    Respondents herein are permittees subject to General NPDES Permit 
Nos. LAG290000 and/or TXG290000 and who:
    A. Discharge produced water derived from an existing Coastal, 
Stripper or Offshore Subcategory well or wells to ``coastal'' waters of 
Texas or Louisiana on the effective date of LAG290000 or TXG290000.
    B. Discharge produced water derived from an existing Coastal 
Subcategory well or wells located in Louisiana or Texas to waters of 
the United States outside Louisiana or Texas ``coastal'' waters on the 
effective date of LAG290000 or TXG290000.
    C. Are required by Permits No. LAG290000 or TXG290000 to meet the 
requirement of No Discharge of produced water and are taking 
affirmative steps to meet that requirement.
    D. Have submitted an ``Administrative Order Notice''. Such Notices 
shall be sent to: Enforcement Branch (6W-EA), Region 6, U. S. 
Environmental Protection Agency, P.O. Box 50625, Dallas TX 75270. Upon 
submission of such an Administrative Order Notice, a permittee shall be 
a Respondent under this General Administrative Order. The terms of each 
Administrative Order Notice submitted shall be considered terms of this 
Order and shall be enforceable against the Respondent submitting the 
Administrative Order Notice. Each Administrative Order Notice must 
include:
    1. Identification of the facility by name and its location (by 
lease, lease block, field or prospect name), the name and address of 
its operator, and the name, address and telephone number of a contact 
person.
    2. A certification signed by a person meeting the requirements of 
Part II, Section D.9 (Signatory Requirements) of Permits LAG290000 and 
TXG290000 stating that a Compliance Plan has been prepared for the 
facility in accordance with this Order. A copy of this plan shall not 
be included with the Administrative Order Notice, but shall be made 
available to EPA upon request.
    3. A Compliance Plan shall include a description of the measures to 
be taken, along with a schedule, to cease discharge of produced water 
to waters of the United States as expeditiously as possible.

IV

    To maintain oil and gas production and comply with the permits' 
prohibition on the discharge of produced water, a significant number of 
Respondents will have to reinject their produced water. A lack of 
access to the finite number of existing Class II disposal wells, state 
UIC permit writers, and drilling contractors may cause non-compliance 
for a significant number of Respondents. In addition, time will be 
required for some Respondents to reroute produced water collection 
lines to transport the produced water to injection wells.

V

    Respondents may reasonably perform all actions necessary to cease 
their discharges of produced water no later than January 1, 1997.

Order

    Based on the foregoing Findings, it is Ordered that Respondents:
    A. Fully comply with all conditions of NPDES Permits No. LAG290000 
and TXG290000 except for the prohibition on the discharge of produced 
water and except for the requirement that all discharges of produced 
water be reported within twenty-four hours.
    B. Complete all activities necessary to attain full and continuance 
compliance with NPDES Permits No. LAG290000 and TXG290000 as soon as 
possible, but in no case later than January 1, 1997.
    C. Operate and maintain all existing pollution control equipment, 
including existing oil/water separation equipment, in such a manner as 
to minimize the discharge of pollutants contained in produced water at 
all times until such time as respondents cease their discharges of 
produced water.
    D. Submit notice to the Water Enforcement Branch of EPA Region 6 
when produced water discharges subject to this Order have ceased.
    E. Subject to NPDES Permit LAG290000 comply at all times with Part 
I. Section B.1.b of said permit, requiring that Respondents meet any 
more stringent requirements contained in Louisiana Water Quality 
Regulation, LAC: 33,IX,7.708.
    Nothing herein shall preclude additional enforcement action.
    The effective date of this Order shall be the effective date of 
NPDES Permits No. LAG290000 and TXG290000.

[FR Doc. 95-416 Filed 1-6-95; 8:45 am]
BILLING CODE 6560-50-P