1. Evan Kane, DWR Ken Pickle, DEMLR Jon RisGAARD, DWR
Recommendation to Adopt Water Quality Rules in Response to S.L
Evan Kane, DWR
Ken Pickle, DEMLR
Jon RisGAARD, DWR

2. Session Law 2012-143 Ratified in July 2012
Created Mining & Energy Commission
Updated statutory regulations of oil & gas activities
Directed Environmental Management Commission, Commission for Public Health, and Mining & Energy Commission to adopt necessary rules by January 1, 2015
In July 2012 the legislature ratified SL , “Clean Energy and Economic Security Act”

3. EMC Rulemaking Responsibilities
Stormwater control for oil & gas exploration and development sites;
Regulation of toxic air emissions from drilling operations;
“…matters within its jurisdiction that allow for and regulate horizontal drilling and hydraulic fracturing for the purpose of oil and gas exploration and development.”
The EMC received a much smaller share of the rulemaking responsibilities.

4. Proposed EMC Water Quality Rule Revisions
Adopt:
15A NCAC 2H – New Stormwater rule
Amend:
15A NCAC 2T – Wastes not discharged to surface waters
2T – Permitting by Regulation
2T – Closed-loop recycle
2T – Soil Remediation
15A NCAC 2U – Reclaimed Water
2U Permitting by Regulation
Other EMC rules do not need amendment at this time either because they are performance-based rules; that is, they specify water quality criteria that must be met by any industry, rather than industry-specific processes or prohibitions, or, as in the case of well construction standards and setbacks from wells and surface waters, the Mining and Energy Commission was specifically tasked with developing those rules.
Tentative EMC Information Item - November 2013

5. Public Comment Process
Draft rules published online and in NC Register June 2, 2014
Press release
Comments accepted June 2 through August 1, 2014
20 persons submitted written comments
Public hearing in Sanford, July 1, 2014
~80 attendees
15 speakers
Actually received last comment at 1:19 a.m. August 2.

6. Selected Public Comments & Recommendations - Stormwater
Address commingling of stormwater with wastes
Recommendation: Modify .1030(a)(3) to clarify any discharges other than stormwater must be covered by separate permit
Require Public Hearings on Stormwater Permits for O&G sites
Recommendation: Modify .1030(b)(3) to allow Director to request public comment on permit application
Require severe weather prep and response plans as part of a new Stormwater Pollution Prevention Plan
Recommendation: Modify .1030(b)(6) to require analog to NPDES Stormwater Pollution Prevention Plan
The hearing officer’s report details all of the comments received and recommended responses to them. I would just like to take a few minutes to address issues that drew substantial numbers of comments or that DENR feels warrant bringing to your attention.

7. Selected Public Comments & Recommendations - Stormwater
Require written certification of BMP construction and require inspection by DENR before operation
Recommendation: Modify .1030(c)(3) to require submission of certification 3 days before spudding the well
1” rainfall insufficient as basis for design
Recommendation: Modify .1030(c)(4) to use only P90 rainfall as basis for design (~1.5”)
Specify TSS threshold per storm, rather than average % removal
Recommendation: No change
Add skimming requirement for structural BMPs
1” rainfall/P90 rainfall - 9 commenters

8. Selected Public Comments & Recommendations - Stormwater
Require self-inspections similar to Construction Stormwater General Permit
Recommendation: Modify .1030(c)(7) to add self-inspections of BMPs during the clearing and grading phase
Extend rule coverage beyond well pad
Recommendation: Add new .1030(c)(8) to extend rule coverage to access/haul roads to well pad
Self-inspection/self-monitoring insufficient
Recommendation: No change; DENR authorized by statute to inspect
Specify fines and penalties
Recommendation: No change; penalties authorized by statute
Self-inspection/self-monitoring: is not intended to be the complete regulatory oversight function, but to augment that function. 10 commenters on self-inspection
6 commenters on fines & penalties

9. Public Comments - 2T & 2U Revisions
Support for proposed revisions
Recommendation: Be happy!
Don’t allow re-use of flowback water for hydraulic fracturing
Recommendation: No change

10. Public Comments - Other
EMC should adopt regulations for air emissions from oil & gas operations
Response: Federal air quality rules applicable to oil & gas already adopted by reference in the NC air quality rules
Response: EMC briefed on air quality regulations in November 2013
Require/implement air monitoring
Response: Monitoring station in Lee County established by DAQ in November 2013
Don’t allow landfilling of wastes from oil and gas operations
Response: Solid waste regulations & permits set requirements for acceptance of industrial wastes

11. Final Recommendation
Adopt proposed 15A NCAC 2H with recommended text changes
Adopt proposed 2T & 2U rule revisions with no text changes

12. Hearing Officer Comments/Questions for Staff