Oil Spill Prevention Regulations: Suggestions for Improvement Alaska Department of Environmental Conservation Spill Prevention and Response Division Industry Preparedness Program Craig Wilson May 3, 2005

Contingency Plan Regulations Project (CPR) Multi-phase, multi-year project to comprehensively review and update the oil discharge prevention and contingency plan regulations in 18 AAC 75 Phase 1 completed May 2004 Currently in Phase 2 Phase 1 – EPR facilities Phase 2 – Prevention Phase 3 – Approval criteria and review process streamlining Phase 4 – Mop up

Goals of the Phase 2 Make the regulations efficient and enhance clarity. The regulations should “fill in the gaps” where other requirements are either non-existent or inadequate. The regulations should complement other requirements and form a comprehensive, coherent regulatory regime. Currency of standards. Present regulations last revised early 1990s. Predictability in enforcement. In developing this draft, we followed several basic guidelines: 1. Make the regulations efficient and enhance clarity. As much as possible, the requirements should be logical and clear to the regulated community and should not conflict with other regulatory or statutory requirements. The terminology used in the regulations should be clear and consistent throughout the regulations. 2. The regulations should be designed to “fill in the gaps” where federal or other State agency requirements are either non-existent or inadequate. This follows the intent of the original regulations. 3. The regulations should complement other requirements and form a comprehensive, coherent regulatory regime. They should not duplicate or conflict with other agency requirements. 4. The regulations must be current. References to outdated standards should be removed or updated.

Schedule July 2004 – Letter sent to all plan holders Asked five basic questions Solicited comments, suggestions November 2004 – Public Workshop, Anchorage April 1, 2005 – Discussion paper issued July 1, 2005 – End of informal comment period Fall, 2005 – Formal comment period on proposed rulemaking February 2006 – New regulations adopted Should ADEC’s oil pollution prevention regulations be revised, in whole or in part, to be more in line with similar federal regulations, such as the U.S. Environmental Protection Agency’s Spill Prevention, Control, and Countermeasures (SPCC) regulations in 40 CFR 112? Should the Prevention Plan section (Part 2) of the ADEC Oil Discharge Prevention and Contingency Plan (C-Plan) regulations be removed from the C-Plan and be promulgated as separate oil pollution prevention regulations? What sections of 18 AAC 75 Article 1 need updating to reflect current trends in pollution prevention and industry standards? What sections of 18 AAC 75 Article 1 need revision to increase their efficacy? What sections of 18 AAC 75 Article 1 are no longer valid in light of current industry standard practices? Oral comments were received during the November workshop from the following groups: Cook Inlet Keeper Cook Inlet RCAC North Slope Borough Prince William Sound RCAC Written comments were also received from the following groups in conjunction with the workshop: BP Schedule has some flexibility… more concerned with completeness than speed. No fixed deadline at this point… but progress is essential

Discussion Paper Published April 1, 2005, available on website Designed to stimulate discussion Provides a target to shoot at for comments Nothing is fixed in stone at this point ADEC will be accepting informal comments on the paper until July 1, 2005 Original 1 June deadline extended based upon industry request

Summary of Considered Changes Update references to third party standards and delete 18 AAC 75.090. Increase prevention training and documentation requirements. Preventative booming during vessel transfers for combustible liquids and unsegregated ballast water. Performance standard for lightering equipment for laden oil tank vessels and oil barges. Impermeable wellhead sumps for exploration and production wells and artificial islands. Leak detection requirements for crude oil transmission pipelines from 1% of daily throughput to .5% of daily throughput and add computational pipeline monitoring (CPM) system regulations. Shop-fabricated tanks under 50,000 gallon capacity must meet UL142 construction and STI SP001-03 inspection standards. Non-standard taken out of service by 2015. Vaulted, self-diked, and double-walled tanks are defined in regulation, and exempted from some secondary containment requirements. Adopt the NACE standard for cathodic protection for both tanks and piping. Adopt ASME B31.3 and B31.4 design standards and API 570 inspection standards for facility piping. Define “facility oil piping”. Revise the prevention plan portion of the c-plan, include annual self-certification requirement. Approval criteria for spill prevention training and the prevention plan portion of the c-plan. Discussion draft was based upon internal workgroup, comments from July letter and November workshop.

What Isn’t Included Tanker Escort System Homeland Security / Terrorism Issues Pipeline valves / Federal pipeline standards Risk-based inspection under API 653 Refined product pipelines Gathering lines Process flow lines ?

Alaska Administrative Procedures Act (APA) Formal regulatory process governed by statute Governs process, format, style, and grammar Takes a minimum of 90 – 120 days to complete if no contentious issues We’re at Step 1

18 AAC 75, Article 1 – Oil Pollution Prevention Major changes listed in discussion paper Separating out spill prevention training Protective booming for combustible liquid transfers .5% leak detection standard for crude oil transmission pipelines CPM for pipelines UL142 standard for tank construction STI inspection standard Piping standards (API 570, ASME B31.3, B31.4) General overview

Prevention Training Moved into its own section & expanded Listing of job descriptions and training level needed Maintain records for 5 years

Oil Transfers from Vessels Protective booming for transfers of combustible liquids and oily ballast water Performance standard for lightering tank vessels and oil barges

Exploration & Production Facilities Changed “offshore platform” to “marine structure” Impermeable wellhead sumps for new wells onshore and on artificial islands “Platform” was written specifically for Cook Inlet, doesn’t address the rest of the state adequately “Marine structure” follows MMS (30 CFR 250, Subpart I)

Pipelines Leak detection Computational Pipeline Monitoring (CPM) Changed from 1% to .5% of daily throughput Computational Pipeline Monitoring (CPM) API 1130 Standard

Aboveground Storage Tanks & Secondary Containment Non-adoption of API 653 risk-based inspection UL 142 standard for tanks less than 50,000 gallon capacity STI SP001-03 inspection standard for shop fabricated tanks NACE 0193-2001 cathodic protection standard Recognition of double-walled and self-diked tank designs

Facility Piping Definition “facility oil piping” means piping and associated fittings originating or terminating at an oil storage tank regulated under 18 AAC 75.065 or an exploration or production well, located within the boundaries of an oil terminal, crude oil transmission pipeline, exploration or production facility, including all valves, elbows, joints, flanges, pumps, and flexible connectors, up to the: (A) Union of the piping with a fuel dispensing system; (B) Marine header; (C) Fill cap or fill valve; (D) Forwarding pump used to transfer oil between facilities, between adjacent pump stations, or between a pressure pump station and a terminal or breakout tank; (E) First flange or connection within the loading rack containment area; or (F) First choke or valve inside a manifold building, or if a manifold building is not present at the well pad, the first choke or valve inside a gathering center or flow station

Facility Piping ASME B31.3 & B31.4 design standards API 570 inspection standards NACE RP0169-2002 standard for cathodic protection

18 AAC 75, Article 4 – Oil Discharge Prevention & Contingency Plans Revision of Prevention Plan contents Direct linkage to Article 1 requirements Annual prevention measures review & certification Response Planning Standard documentation requirement Approval criteria for spill prevention training and prevention plan contents Part 2 requirements would link directly to Article 1 regulations Annual certification to compensate for 5 year c-plan cycle Consolidate RPS into new Part 5

18 AAC 75, Article 9 - Definitions Where possible, definitions were moved into the appropriate sections. New definitions Cathodic protection Corrosion terms Placed in service/removed from service

For More Information & Updates Website - http://www.dec.state.ak.us/spar/ipp/cpr.htm Automated email list server Email – Craig_Wilson@dec.state.ak.us Craig Wilson Spill Prevention & Response Division Alaska Department of Environmental Conservation 410 Willoughby Ave., Suite 303 Juneau, AK 99801 voice: (907) 465-5204 fax: (907) 465-5245 Website has an automated list server – click on the link to receive updates.