Opinion ID: 516043
Heading Depth: 2
Heading Rank: 3

Heading: The Diesel Pill

Text: 56 A pill is an operational method of dislodging stuck pipe. See generally API, 787 F.2d at 974-75 n. 15. The final permit generally prohibits the discharge of drilling fluids containing diesel oil. See 51 Fed.Reg. at 24901, 24920-21. The permit, however, allows the discharge of diesel oil under certain circumstances, when diesel oil is added to a drilling pill as part of the Diesel Pill Monitoring Program (DPMP). See id. at 24901, 24921. The DPMP was conceived in order to help EPA gather information in evaluating the effectiveness of recovery of diesel oil when a diesel pill is used. NRDC criticizes this program. 57 The DPMP was scheduled to be in effect for one year from the permit's effective date, see id., unless EPA extended it for up to an additional year. Id. EPA extended the DPMP until September 30, 1987. 52 Fed.Reg. 25303-04 (1987). EPA has not further extended this program. The challenge to the diesel pill monitoring program is therefore now moot. 58 The remaining issue is API's challenge to restrictions on the discharge of mud systems after the use of diesel pills. After the conclusion of the DPMP, the permit requires that operators using diesel pills follow DPMP requirements for pill removal, comply with the toxicity limitations prior to use of the pill, and meet the end of well toxicity limitation. See 51 Fed.Reg. at 24901. API argues that these restrictions on the use of diesel pills effectively amounts to a prohibition on their use. 59 Contrary to API's assertion, the permit does not ban the use of diesel pills. Instead, it requires operators to dispose of the diesel pill itself, and in addition, to ensure that the remaining mud system meets the overall toxicity limitation before it is discharged. These conditions may require onshore disposal rather than discharge if the discharge would not meet the toxicity limitation. But these requirements do not amount to a ban on use of diesel pills. 60 As an alternative to diesel pills, the permit allows the use of mineral oil pills. Mineral oil pills may be used to free stuck pipes without the restrictions imposed on diesel pills. Id. at 24900, 24921. API, however, contends that mineral pills are less successful in dislodging stuck pipe, and that EPA acted arbitrarily by concluding that mineral oil pills were more cost-effective than diesel oil pills. This contention lacks merit. EPA, in establishing BAT, set a permit limitation which prohibited the discharge of diesel pills. EPA took into account the added costs of barging and the higher success rate of diesel pills. The permit record affirmatively shows that the cost of maintaining and disposing of mineral pills--including possible redrilling costs associated with its lower effectiveness compared with diesel pills in dislodging stuck pipe--is less than the cost of maintaining and disposing of diesel pills. See, e.g., 51 Fed.Reg. at 24900; J.A. 383. Accordingly, EPA did not act arbitrarily or capriciously in concluding that mineral oil pills may be used as a cost-effective substitute for diesel oil pills. 61 IV. Jurisdiction of Florida to Regulate Water Standards More than Three Miles from the Coast 62 The NPDES general permit under consideration authorizes discharges from offshore facilities located seaward of the outer boundary of the territorial seas of the states along the Gulf of Mexico. See 51 Fed.Reg. at 24897, 24898. Under the Act, the term territorial seas is defined as the belt of the seas extending three miles from the coast. See 33 U.S.C. Sec. 1362(8) (1982). Accordingly, the permit involves only discharges from facilities located at a distance beyond three miles from the coast of any Gulf state. 63 The Act requires state certification of permits covering operations which may result in any discharge into navigable waters. 33 U.S.C. Sec. 1341(a)(1) (1982). The Act defines navigable waters as the waters of the United States, including the territorial seas. 33 U.S.C. Sec. 1362(7) (1982). However, navigable waters includes only those waters landward from the outer boundary of the territorial seas. See Pacific Legal Found. v. Costle, 586 F.2d 650, 655-56 (9th Cir.1978) (navigable waters do not include the contiguous zone or the ocean, which both occupy areas beyond the territorial seas), rev'd on other grounds, 445 U.S. 198, 100 S.Ct. 1095, 63 L.Ed.2d 329 (1980). Therefore, because this permit covers only discharges in the waters beyond the navigable waters (i.e., the waters seaward beyond the three mile belt of the territorial seas), the permit does not require state certification. See 51 Fed.Reg. at 24903 (State waters are not included within the area of coverage by the draft permit, therefore, state certification is not required.). 64 Florida contends that its maritime boundaries extend three marine leagues (approximately 10.3 miles) into the Gulf of Mexico. Therefore, Florida argues that the EPA must secure state certification that the discharges allowed under the EPA's general permit would comply with Florida's water quality standards. 65 Florida's argument is based upon its boundaries as defined in the Submerged Lands Act (SLA) and subsequent Supreme Court interpretation. The SLA, enacted in 1953 and codified at 43 U.S.C. Secs. 1301-1356 (1982 & Supp. II 1984), defines the boundaries of a state as: 66 [T]he seaward boundaries of a State or its boundaries in the Gulf of Mexico or any of the Great Lakes as they existed at the time such State became a member of the Union, or as heretofore approved by the Congress, or as extended or confirmed pursuant to section 1312 of this title but in no event shall the term boundaries or the term lands beneath navigable waters be interpreted as extending from the coast line more than three geographical miles into the Atlantic Ocean or the Pacific Ocean, or more than three marine leagues into the Gulf of Mexico. 67 43 U.S.C.A. Sec. 1301(b) (West Supp.1988) (emphasis added). The SLA yields to the states the title and ownership of the lands beneath navigable waters within the boundaries of the respective States, and the natural resources within such lands and waters. 43 U.S.C. Sec. 1311(a) (1982). The SLA further grants to the states the right and power to manage, administer, lease, develop, and use said lands and natural resources all in accordance with applicable State law. Id. 68 Pursuant to the Submerged Lands Act, the Supreme Court decided United States v. Louisiana, 363 U.S. 1, 80 S.Ct. 961, 4 L.Ed.2d 1025 (1960); United States v. Florida, 363 U.S. 121, 80 S.Ct. 961, 4 L.Ed.2d 1096 (1960). In these cases, Louisiana, Texas, Mississippi, Alabama and Florida contested the United States' assertion that it was entitled to exclusive possession of the lands, minerals, and other natural resources underlying the waters of the Gulf of Mexico more than three geographical miles seaward from the coast of each State. Louisiana, 363 U.S. at 5, 80 S.Ct. at 966 (emphasis in original). The Court noted that [a]ll the claims arise and are decided under the Submerged Lands Act of 1953, Florida, 363 U.S. at 121, 80 S.Ct. at 961, and concluded that Texas and Florida were entitled to a maritime boundary of three leagues from their coasts under the Act. Louisiana, 363 U.S. at 64, 80 S.Ct. 996-97; Florida, 363 U.S. at 129, 80 S.Ct. at 1030. The specific language pertaining to Florida reads: [w]e hold that the Submerged Lands Act grants Florida a three-marine-league belt of land under the Gulf, seaward from its coastline, as described in Florida's 1868 Constitution. Florida, 363 U.S. at 129, 80 S.Ct. at 1030. The Court also recognized that Florida's constitution has claimed a three-league boundary into the Gulf since 1868, and that in 1868 Florida submitted its constitution to the Congress, which approved Florida's claim to a boundary three leagues from its shores. Id. at 128, 80 S.Ct. at 1029-30. 69 The Clean Water Act provides that, except as expressly provided, the Act should not be construed as impairing or in any manner affecting any right or jurisdiction of the States with respect to the waters (including boundary waters) of such States. 33 U.S.C. Sec. 1370 (1982). Thus, Florida contends that its three-league maritime boundary remains effective absent a clear indication from Congress that it intended to preempt state regulation. We conclude Congress did clearly indicate its intent to establish a uniform three-mile limit. 70 It is difficult to ignore the express language of the Clean Water Act's three-mile definition of territorial seas, a definition which differs from the SLA. If there were any doubt that Congress intended to create a uniform three-mile boundary in this act, despite older definitions in other acts, the doubt is resolved by the legislative history. The legislative history of the Clean Water Act indicates that Congress consciously defined the term territorial seas to make clear the jurisdictional limits of this particular legislation, and its relationship to other statutes. The Senate Report gives the reason for the definition: 71 The [Senate] Committee [on Public Works] has added definitions of the terms territorial seas, contiguous zone, and ocean to describe clearly the jurisdictional limits of the Act, and provide a basis for its relationship to other laws of the United States as well as to international law. 72 Leg.Hist. at 1495. 73 Moreover, there is no inconsistency between the SLA, which gives authority to Florida to regulate submerged lands to a distance of three leagues, and the provision in the Clean Water Act, which effectively limits exercise of state water pollution regulation to three miles. The SLA expressly provides that the United States retains all its rights in and powers of regulation and control of ... navigable waters for the constitutional purposes of commerce, navigation, national defense, and international affairs. 43 U.S.C. Sec. 1314(a) (1982). The Clean Water Act was enacted by Congress in the exercise of its constitutional power to regulate commerce. See United States v. Ashland Oil and Transp. Co., 504 F.2d 1317, 1325-29 (6th Cir.1974); Leslie Salt Co. v. Froehlke, 403 F.Supp. 1292, 1296-97 (N.D.Cal.1974), rev'd and modified on other grounds, 578 F.2d 742 (9th Cir.1978). 11 Accordingly, because the Clean Water Act involves the regulation of commerce, the United States retains the power to regulate water quality in navigable waters, notwithstanding the SLA's grant of authority to Florida. See Douglas v. Seacoast Products, Inc., 431 U.S. 265, 283-84, 97 S.Ct. 1740, 1751, 52 L.Ed.2d 304 (1977) (state statute regulating commercial fishing in state territorial waters was preempted by federal statute, notwithstanding SLA's grant to the state of ownership and authority over the resources found in state territorial waters, because the federal statute involved commerce, and authority over commerce was retained by the federal government under the SLA). 74 The EPA is not required to obtain any certification from the State of Florida.