Storm
Water
Discharges
from
Oil
and
Gas
Related
Construction
Activities
EPA
Public
Meeting
Dallas,
Texas
May
10,
2005
Overview
°
History
°
Rule
deferral
rationale
°
Regulatory
options
°
EPA
analysis
°
Q&
A
Chronology
Final
Action
Required
June
12,
2006
Notice
of
Proposed
Rule
Making
September,
2005
Deferral
Rule
March
9,
2005
Deferral
Rule
March
10,
2003
Storm
Water
Phase
II
1999
Storm
Water
Phase
I
1990
Water
Quality
Act
­
2
phase
program
to
control
storm
water
­
Oil
and
gas
storm
water
exempt
1987
Oil
and
Gas
Exemption
­
CWA
§
402(
l)(
2)
­
The
Administrator
shall
not
require
a
permit
 
for
discharges
of
stormwater
runoff
from
 
oil
and
gas
exploration,
production,
processing,
or
treatment
operations
or
transmission
facilities,

composed
entirely
of
flows
which
are
from
conveyances
or
systems
of
conveyances
 
used
for
collecting
and
conveying
precipitation
runoff
and
which
are
not
contaminated
 

­
Construction
activity,
includes
clearing,
grading,
and
excavating
­
Since
1992,
EPA
has
considered
construction
activity
at
oil
and
gas
sites
to
require
permit
coverage
 
i.
e.,
not
considered
to
fall
under
exemption.
EPA
as
NPDES
Permitting
Authority
Construction
and
Industrial
Puerto
Rico
Virgin
Islands
Federal
Facilities
Tribes
Other
Territories
Oil
and
Gas
2003
Facts
and
Figures
°
~
28,000
new
well
sites
in
29
states
°
EPA
administers
the
Storm
Water
program
in
AK*,
TX,
OK,
and
NM:

 
48%
of
the
wells
are
drilled
 
66%
of
estimated
compliance
costs
are
accrued
 
Permit
addresses
ESA
and
NHPA
*
Vast
majority
of
AK
sites
are
>
5
acres
and
covered
by
Phase
I
regulations.
Deferral
Rationale
°
Phase
II
Rule
determined
that
few
if
any
oil
and
gas
sites
exist
between
1
and
5
acres
°
EPA
subsequently
deferred
requirement
for
small
oil
and
gas
sites
to
obtain
permit
coverage
°
EPA
performing:

 
Economic
impact
analysis,
including
cost/
benefit
analysis
 
BMP
review
°
Industry
Standard
Operating
Procedures
°
BLM
Gold
Book
Guidelines
°
State
prescribed
BMPs
 
Analysis
of
regulatory
options
Regulatory
Options
EPA
is
currently
evaluating
2
options
(
against
the
baseline)
for
regulating
small
oil
and
gas
construction
activity:

(
Baseline)
­
Regulate
consistent
with
Phase
II
Rule
(
Option
1)
 
Create
New
Waiver
(
Option
2)
­
Non­
permitting
program
[
CWA
402(
p)(
6)]
Regulatory
Options
(
Baseline)

Baseline
Approach:

 
Requirements
include:

°
Coverage
under
Construction
General
Permit
°
Develop
site­
specific
Storm
Water
Pollution
Prevention
Plan
(
SWPPP)

°
Perform
routine
inspections
°
ESA/
NHPA
considerations
(
for
EPA
permits)
Baseline
Approach
GAO­
05­
240,
February
2005
Baseline
 
Construction
SWPPP
°
Site
Description
°
Controls
to
Reduce
Pollutants
 
Erosion
and
Sediment
Controls
 
Stabilization
Practices
 
Storm
Water
Management
°
Maintenance
°
Inspections
Baseline­

SWPPP:
Site
Description
°
Description
of
construction
activity
°
Sequence
of
major
soil
disturbing
events
°
Total
and
disturbed
area
(
acreage)

°
Storm
water
discharges
(
location)

°
Site
map
°
Storm
water
controls
(
location)

°
Receiving
waters
(
name,
location)

°
Endangered
species;
historic
preservation
Baseline­

SWPPP:
Erosion
and
Sediment
Controls
°
Properly
select
and
install
controls
to:

 
Minimize
erosion
 
Retain
sediment
on­
site
 
Remove
any
sediment
that
accumulated
off­
site
°
Remove
sediment
from
sediment
traps
°
Prevent
litter
from
entering
streams
Baseline­

SWPPP:
Stabilization
Practices
°
Temporary
Seeding
°
Permanent
Seeding
°
Mulching
°
Sod
Stabilization
°
Vegetative
Buffer
Strips
°
Tree
Preservation
°
Contouring
and
Protecting
Sensitive
Areas
Baseline­

SWPPP:
Structural
Controls
°
Level
Spreader
°
Rock
Outlet
Protection
°
Check
Dams
°
Storm
Drain
Inlet
Protection
°
Sediment
Traps
°
Temporary
Storm
Drain
Diversion
°
Drainage
Swales
°
Pipe
Slope
Drain
°
Silt
Fence
°
Subsurface
Drain
°
Earth
Dike
Maintenance
and
Inspections
°
BMPs
must
be
maintained
in
effective
operating
condition
°
Any
repairs
must
be
performed
before
next
anticipated
storm
event,
if
possible.

°
Inspect
at
least
every
14
calendar
days
and
within
24
hours
after
any
storm
event
of
0.5
inches
or
greater
(
or
every
7
days)
until
permit
coverage
terminated.
Regulatory
Option
#
1­

Waiver
 
Sites
<
5
acres
would
be
waived
from
permit
coverage
under
certain
conditions
 
Sites
5
acres
and
above
would
still
be
required
to
obtain
permit
coverage
 
Possible
waiver
eligibility
requirements:

°
Short
term
(<
30
days)
construction
°
Proximity
to
water
body
°
Slope,
region,
and
other
site­
specific
considerations
°
BMP
implementation
Regulatory
Option
#
2­

Non­
Permitting
NPDES
Program
 
Comprehensive
program
under
CWA
section
402(
p)(
6)

 
Develop
a
program
for
O&
G
construction
activity
 
Likely
similar
BMP
requirements
as
baseline
and
Option
1
 
Evaluate
legal
authorities
and
responsibilities
Economic
Analysis:
Purpose
°
Evaluate
the
costs
and
benefits
of
the
requirements
under
the
Phase
II
Storm
Water
Rule
°
Follow
analytical
approach
using
relevant
data
from
the
Phase
II
analysis
(
1998).

°
Examine
the
costs
and
benefits
for
3
rulemaking
options:

 
Baseline
(
expiration
of
deferral
after
6/
12/
06)

 
Waiver
 
Non­
permitting
program
under
CWA
402(
p)(
6)
Economic
Analysis:
Impacts
°
Direct
costs
 
Notice
of
Intent
 
SWPPPs
 
BMPs
 
Potential
ESA
&
NHPA
Considerations
°
Indirect
costs
 
Revenue
delay
 
Forgone
lease
bonus
payments
 
Idle
rig
contract
payments
 
Project
cancellation
Next
Steps
°
Gather
additional
information
°
Complete
Economic
Analysis
°
Notice
of
Proposed
Rulemaking
(
9/
05)

°
Comment
period
°
Final
Rulemaking
(
6/
06)

Questions?
