1. Discharge of Oil and Gas Waste
Tiffany Humberson
August 2017

2. Goal for Texas Waters
It is the goal of Texas Railroad Commission to maintain and protect the quality of surface water and groundwater in the State. Policies shall be consistent with public health and welfare, and facilitate oil and gas industries, taking into consideration the economic development of the state. 2

3. Disclaimer
This presentation is a quick overview and not intended to be a complete guide for filing the referenced applications
Each application is reviewed by an analyst and additional information and clarifications may be required
Please read the rules that are specific to your type of application
Contact Environmental Permits and Support for help should you have any questions ( ) 3

4. Topics for Discussion Laws and Rules Federal and State Jurisdiction
Types of Discharges
Gas Plant
Inland and Offshore
Minor Permits (MP)
Hydrostatic Tests (HT’s)
Domestic Wastewater (recycling)
Application Requirements for Discharges
Full application requirements can be found throughout the associated handout. 4

5. Additional Topics for Discussion
Alternative Noncommercial Permitting Options
Land Apply Produced Water (LA)
Landfarming (LF)
Application Requirements for LA and LF
Fluid Recycling
Noncommercial (NCFR)
Registration Requirements for NCFR
The full application requirements can be found throughout the associated handout. 5

6. Laws and Rules for Discharges
Federal
Clean Water Act (CWA)
State
Texas Commission of Environmental Quality (TCEQ)
Texas Surface Water Quality Standards (TSWQS)
General Land Office (GLO)
Railroad Commission of Texas (RRC) provides discharge permits for oil and gas activities.
Clean Water Act (CWA) The federal law that regulates and sets guidelines for discharges to Waters of the U.S. The law is implemented though the National Pollutant Elimination System (NPDES) program.
NPDES permit limits;
EPA Region 6 (South Central)
TCEQ - TSWQS are in located in Texas Administrative Code (TAC), Title 30, Chapter 307
RRC must be compliant with the Water Code Section (b) and may not cause a violation of TSWQS.
Some discharges depending on location may be subject to the jurisdiction of the U.S. Army Corp of Engineers (wetlands). 6

7. Who Has Jurisdiction?
The Environmental Protection Agency (EPA) implements the NPDES permit program
The RRC regulates the disposal of all oil and gas wastes
Discharges to surface waters of the State must be permitted by both the EPA and the RRC 7

8. Texas Surface Water Quality Standards
Establish specific goals for the water quality throughout the state
Identify appropriate uses for the surface waters in the state
Identify evaluating criteria to support the goals
Texas Commission of Environmental Quality (TCEQ) establishes Texas Surface Water Quality Standards (TSWQS) in Texas Administrative Code (TAC), Title 30, Chapter 307. The Quality Standards are reviewed and/or revised every 3 years. After that, they must be adopted by the State and EPA approval is required.
Water quality segments are listed in 30 TAC 8

9. Coastal Management Program (CMP)
Managed by the General Land Office (GLO)
Protects natural habitats and wildlife
Discharges must not adversely affect any critical area:
Coastal wetlands
Oyster reefs
Submerged aquatic vegetation
Defined in the Natural Resource Code, Title 2 Subtitle C Chapter 33. 9

10. Water Protection TAC Title 16, Part 1, Chapter §3.8 (Statewide Rule 8)
RRC Responsibility
Water Protection TAC Title 16, Part 1, Chapter §3.8 (Statewide Rule 8)
Pollution Control §3.8(d) (1)
No person may dispose of an oil and gas waste except as authorized or permitted by RRC
No person subject to RRC may cause or allow pollution of surface or subsurface water
If you are transporting, handling, storing, discharging, disposing, reclaiming or recycling oil and gas off lease or on a lease other than the lease where the oil and gas waste was generated, you must have a permit from the Commission. The permit may be a minor permit issued by the appropriate District Office, or a permit from Technical Permitting in Austin. For more information continue to explore our website, or click on Contacts for information on how to contact Environmental Permits staff. 10

11. Types of Discharges
A discharge may occur at the surface (to the ground) or be to surface waters. Three most common types of discharges:
Gas Plant Effluent (GPE)
Produced Water (Inland and Offshore)
Minor permits
Hydrostatic Test Water (HT)
Domestic Wastewater
Although the RRC has the jurisdiction to regulate the disposal of all oil and gas wastes, very few of those wastes are discharged to surface water in the state. The three major categories of discharges: discharge of hydrostatic test water; discharge of oil and gas wastes from a gas plant; and discharge of produced water. 11

12. Gas Plant Effluent Discharges
Common waste streams include:
Cooling tower blow-down
Reverse Osmosis (RO) reject wastewater
Compressor condensation
Requires Individual EPA permit
Variety of wastes may be commingled for a discharge to a common outfall. Several chemicals may be used at the facilities during operations or maintenance. Safety Data Sheets (SDS) must be submitted for each chemical. 12

13. Gas Plant Requirements & Testing
Quarterly Monitoring and Reporting Requirements
Testing Parameters can include COD, BOD, Ammonia, Nitrates, TSS, WET testing
Multiple outfall locations
Each outfall has specific parameters and limitations
May utilize retention pits (Form H-11 required)
May require pretreatment of effluent
Chemical oxygen demand (COD), biochemical oxygen demand(BOD), Total suspended solids(TSS), Whole Effluent Toxicity (WET) testing 13

14. Produced Water Discharge Zones
Currently there are four designated areas for issuing discharge permits. 14

15. West of 98th Meridian Currently not covered by an EPA general permit
Proposal to be included in the NPDES TXG350000
40 CFR Part 435, Subpart E (navigable waters)
West of the 98th Meridian (40 CFR Part 435, Subpart E), Applicable to those onshore facilities located in the continental U.S. and west of the 98th meridian for which the produced water has a use in agriculture or wildlife propagation when discharged into navigable waters. These facilities are engaged in the production, drilling, well completion, and well treatment in the oil and gas extraction industry.
Currently not covered by a general permit from the EPA. The Operator must submit an application for an individual permit from the EPA. This region may be included in the final NPDES Permit TXG
Facilities that apply for coverage (NOI) would be considered “new” although the facility was discharging previously. If “new” the operator must pass a 24-hour toxicity test prior to discharging produced waters and are prohibited from discharging to waters that are impaired for dissolved oxygen. 15

16. East of 98th Meridian (TXG350000)
Draft Permit TXG Onshore Stripper Well Category in Texas
No Effective date yet
Limited to the Carrizo/Wilcox, Reklaw, or Bartosh formations
Stripper Subcategory(Subpart F) 40 CFR
NPDES TXG (40 CFR Part 435, Subpart F), Applicable to those onshore facilities which produce 10 barrels per well per calendar day or less of crude oil and which are operating at the maximum feasible rate of production and in accordance with recognized conservation practices. These facilities (stripper wells) are engaged in production, and well treatment in the oil and gas extraction industry.
New stripper wells must pass a 24-hour acute toxicity test prior to discharging. 16

17. East of 98th Meridian (TXG330000)
Separated into two permitted sections
Permit TXG Coastal Waters of Texas
No discharge of produced water or sand
Prohibited in a 1995 permit
Water certification issued on June 30, 2017
NPDES TXG (40 CFR Part 435, Subpart D). The permit coverage area consists of lease blocks or state tracts located onshore or in the coastal areas as defined in 40 CFR , and discharging to the coastal waters of Texas.
Coastal Subcategory Facility is defined as any facility where the wellhead is located in or on a water of the United States, landward of the inner boundary of the territorial seas inland to a line defined at 40 CFR (b). 17

18. Testing and Limitations (East 98th)
Oil and Grease:
Daily max: 35 mg/l
Monthly average: 25 mg/l
Annual testing for:
Total Dissolved Solids (TDS) < 3,000 mg/l
24-hour acute (LC50) WET test at 100% effluent
No Free Oil - Visual sheen
Additional testing Parameters and Limitations may be required
The same testing limitations may be included for discharges West of the 98th once the final permit is issued. 18

19. Territorial Seas Covered by EPA General Permit TXG260000
New proposed permit published in Federal Register on January 19, 2017
No effective date yet
Changes from 2012:
48-hour acute WET
WET requirements for well treatment, completion and workover fluids
Territorial Seas off Texas (40 CFR Part 435, Subpart A), 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.
NPDES TXG260000
Major Proposed Changes- (not a complete list)
-Replace the 24-hour acute toxicity test with the 48-hour test, at a 10 times greater concentration than the critical dilution used for the 7-day test.
-Adding toxicity testing requirements for well treatment, completion and workover fluids. 19

20. Testing and Limitations (Terr. Seas)
Oil and Grease:
Daily max: 42 mg/l
Monthly average: 29 mg/l
Semiannual (180 days) Tests:
48-hour acute toxicity (WET)- NOEC
7-day chronic toxicity (WET)- NOEC
Additional testing Parameters and Limitations may be required
No observable effect concentration (NOEC) the highest concentration that demonstrates no statistical difference from the control. 20

21. Outer Continental Shelf (OCS)
Covered by EPA General Permit GMG which is up for renewal September 2017
Authorizes discharges for drilling fluids, drill cuttings, and produced water
Toxicity Testing frequency based on discharge rate
Draft permit should be coming out end of July or August 2017. 21

22. Testing and Limitations (OCS)
Oil and Grease:
Daily max: 42 mg/l
Monthly average: 29 mg/l
7-day chronic toxicity (NOEC) test annually or quarterly
Additional testing Parameters and Limitations may be required
Discharge Rate Toxicity Testing Frequency:
-0 - 4,599 bbl/day once per calendar year
-4,600 bbl/day and above once per calendar quarter 22

23. Whole Effluent Toxicity (WET) Test
WET test measures the effluents effects on test organism’s (fresh or marine) ability to survive, grow, and reproduce
Measures the potential toxicity of all chemicals in the solution. Used to prevent the discharge of toxic amounts of pollutants to surface waters
Test organisms include vertebrates and invertebrates and are either fresh or marine species
Used to provide comprehensive view of an effluents effect on receiving waters without having to test for all chemical, physical and biological factors. 23

24. More About the WET Test
Acute testing focuses on the survival of the organism
Chronic testing evaluates growth and reproduction
Passed by recording No Observable Effect Concentration (NOEC) at the calculated critical dilution concentration
LC50 is passed if more than 50% of the organisms survive the 100% effluent concentration
Daphnid (Ceriodaphnia dubia)
The NOEC (No Observed Effect Concentration) is defined as the greatest effluent dilution at and below which toxicity that is statistically different from the control (0% effluent) at the 95% confidence level does not occur. Chronic lethal test failure is defined as a demonstration of a statistically significant lethal effect at test completion to a test species at or below the critical dilution. Chronic sublethal test failure is defined as a demonstration of a statistically significant sublethal effect (i.e., growth or reproduction) at test completion to a test species at or below the critical dilution. 24

25. Complete Water Analysis For Discharges
ALL RRC discharge applications require the complete water analyses report, with the exception of HT (minor permit) applications. MAL is the Minimum Analytical Limits that the lab is required to report. 25

26. What is Hydrostatic Test (HT) ?
Pressure tests for new and used pipelines and tanks. Pigging wastes cannot be discharged
Once the water enters the pipe it is considered waste and cannot be discharged without a permit
Withdrawal of surface waters may require a permit from the TCEQ
Contact the EPA (Region 6) to determine federal permitting requirements to surface waters. 26

27. Reporting Requirements for HT’s
Each frac tank must be sampled and analyzed prior to discharge
Analytical results must be reported within one month after the discharge is complete
Typical testing parameters include Benzene, Oil & Grease, COD, EC and TSS
Pictures of the effluent treatment & fluid dispersal system must be included
Submit the full lab report including the chain of custody. 27

28. Recycling of Domestic Wastewater
Notice to Operators (April 3, 2016)
Allowing the beneficial recycling of treated domestic wastewater and mobile drinking water treatment system wastewater
On-site treatment in the “shadow of the rig”
Maximum 5,000 (GPD) pretreated volume allowed
TCEQ’s jurisdiction
Mobile potable water treatment units
Transportation of domestic waste and wastewater
A Notice to Operators has been issued on April 3, 2016, that allows the operator of a lease to beneficially recycle treated domestic wastewater and waste streams generated from mobile drinking water treatment systems on oil an gas drill sites.  Application requirements and conditions for a permit to recycle treated domestic wastewater and mobile drinking water treatment system wastewater are contained in the application requirements.
Applicants may use the application worksheet as an example of a permit application for recycling domestic wastewater. This does not mean that this is the only information that may be required to issue a permit.
A new service company may be required to submit details on the treatment system, that incudes schematic diagrams for treatment units and previous laboratory analytical to demonstrate parameter limitations can be met. 28

29. Reuse Options Domestic Wastewater
Down-hole (Make-up):
Drilling after surface casing has been set through the base of usable quality water
Cement
Frac fluids
Surface application:
Dust suppression (drill pads or lease roads)
Controlled irrigation 29

30. Recycling of Domestic Wastewater (2)
In no case may the waste stream be discharged or allowed to enter any watercourses or drainage ways, including any drainage ditch, dry creek, flowing creek, river, or any other body of surface water.
Drinking water treatment system wastewater does not require a permit IF:
Used down-hole (not commingled)
Reincorporated with rig supply water
Refer to the handout for the application requirements, reuse options and parameter limitations. 30

31. Alternative Permitting Options
Land Apply Produced Water
Produced water only
Landfarming
Water–based drilling muds
Reverse osmosis reject
Commingled waste streams
Landfarm permits are issued to gas plant that may have commingled waste streams. Application must include the wastewater analysis to determine whether the fluids can be used for irrigation.
Landfarming of the following oil and gas wastes is acceptable without a permit provided the wastes are disposed of on the same lease where they are generated, and provided written consent of the surface owner of the tract where the landfarming will occur is obtained: water base drilling fluids with a chloride concentration of 3000 mg/l or less; drill cuttings, sands and silts obtained while using water base drilling fluids with a chloride concentration of 3000 mg/l or less; and wash water used for cleaning drill pipe and other equipment at the well site. Other landfarming operations require a permit.

32. Land Apply Permit Considerations
Water quality of the effluent
Soils/acreage to be irrigated
Annual precipitation/ evaporation
Application method (sprinklers, gate valves, etc.)
Run-off prevention (berms), silt fencing, channels, etc.
Soil sampling parameters are based on the background sampling
The land applied produced water does not have to be tilled into the native soil but can be allowed to permeate the soil to promote vegetation growth. The land application area must have berms constructed and include erosion controls structures if necessary.

33. Recycling Alternatives (NCFR)
 (41) Non-commercial fluid recycling--The recycling of fluid produced from an oil or gas well, including produced formation fluid, workover fluid, and completion fluid, including fluids produced from the hydraulic fracturing process on an existing commission-designated lease or drilling unit associated with a commission-issued drilling permit or upon land leased or owned by the operator for the purposes of operation of a non-commercial disposal well operated pursuant to a permit issued under §3.9 of this title (relating to Disposal Wells) or a non-commercial injection well operated pursuant to a permit issued under §3.46 of this title (relating to Fluid Injection into Productive Reservoirs), where the operator of the lease, or drilling unit, or non-commercial disposal or injection well treats or contracts with a person for the treatment of the fluid, and may accept such fluid from other leases and or operators.
 (42) Non-commercial fluid recycling pit--Pit used in conjunction with one or more oil or gas leases or units that is constructed, maintained, and operated by the operator of record of the lease or unit and is located on an existing commission-designated lease or drilling unit associated with a commission-issued drilling permit, or upon land leased or owned by the operator for the purposes of operation of a non-commercial disposal well operated pursuant to a permit issued under §3.9 of this title or a non-commercial injection well operated pursuant to a permit issued under §3.46 of this title, for the storage of fluid for the purpose of non-commercial fluid recycling or for the storage of treated fluid. 33

34. Authorized Fluid Recycling
Wellbore fluids under the jurisdiction of RRC may be treated and reused (recycled) without permit as authorized by Rule 8 (d)(7)(B) and §4.202(d). Fluid recycling is authorized if the recycling activities are located:
On a commission-designated lease or drilling unit associated with a drilling permit.
On land leased or owned by the operator of a disposal well.
On land leased or owned by the operator of an injection well.
Authorized pits that must be registered with the District Office. Contact the office in which the recycling activities will be conducted for the registration worksheet.
Refer to the Summary of SWR 8 on the handout 8(d)(4)(G) for additional information. 34

35. Stormwater Management
Two types of Stormwater:
Noncontact - rainfall that does not come in contact with oil and gas wastes at a facility
RRC discharge permit is not required
Contact - rainfall that accumulates in waste management units or contacts oil and gas wastes in active operation areas
RRC discharge permit required
Collected in pits or tanks
A discharge permit from the EPA may be required for non-contact stormwater discharges. If required, the permit from the EPA must be in place prior to commencement of discharge operations.
The stormwater plan under goes an extensive review to prevent the release of contact wastes. 35

36. Best Management Practices
Best Management Practices (BMPs) must be utilized at all authorized and permitted facilities:
Use of berms, grading, or curbing to prevent runoff of contaminated fluids
Perimeter berms are required around facilities
Secondary containment requirements for storage tanks, pits, frac tanks, or other vessels containing wastes
Good Housekeeping and Inspections
Typical permitting language may include;
Berms or containment structures must be constructed around all waste management units and must be compacted or constructed of material that meets 95% Standard Proctor (ASTM D698) or 90-92% Modified Proctor (ASTM D1557) density. Each berm shall maintain a slope no steeper than a one to three (vertical to horizontal) ratio, unless constructed of concrete or equivalent material (firewalls). These structures must be used to divert non-contact storm water around the waste management areas and contain and isolate contact storm water within the waste management units.
All the storage tanks containing fluid waste or fuel shall be contained within dikes or berms. Secondary containment of 120% total storage capacity is recommended, however a firewall capacity that will capture 100% of the volume of the largest tank plus the volume of a 25 year/ 24-hour rainfall event for County, in which the site is located, is acceptable. 36

37. Thank you! Tiffany Humberson Environmental Permits and Support
The application and any attachments should be mailed to:
Railroad Commission of Texas  Oil and Gas Division  Technical Permitting  P. O. Box 12967  Austin, TX 37