1. Reclamation Plants vs. Separation Facilities, Environmental Permits
Reclamation Plants vs. Separation Facilities, Environmental Permits. Presented by:
Grant Chambless has been with the Railroad Commission of Texas for only 4 months but has over 25 years of Environmental Consulting and Oil & Gas Exploration experience.
Grant Chambless, P.G.

2. Disclaimer
These are the highlights… This presentation is not intended to be, nor is it, a complete guide.
There is no substitute for reading the rules yourself, or having professional consultation through the application process.

3. Overview of Environmental Permits
Environmental Permitting determines the management methods of oil and gas waste at or near land surface.
Includes all disposal methods other than injection wells.
Process managed by the Environmental Permitting group of the RRC.

4. Overview of Environmental Permits: What are the Basic Types?
Management methods include:
Pits, Cells, STF’s
(Stationery Treatment Facilities)
Land-farming and Land-treatment
Recycling (Solids & Fluids)
*Pits and Cells will have an artificial liner [Concrete, High Density Polyethylene (HDPE)] as well as utilizing natural barriers (Clays).
*Land-farming and Land-treatment use bio-remediation to decrease the Total Petroleum Hydrocarbon (TPH) content in the oil and gas waste.
*Recycling includes recycling oil and gas waste solids to make road base or drilling pads and recycling Hydraulic fracturing (frac) flowback water for reuse in a well.

5. Overview of Environmental Permits: Types of Permits (Continued)
Management methods include:
Discharges
Reclamation Plants
Separation Facilities
*Discharges include Hydrostatic Test (HT) water for pipelines and storage tanks, produced water and gas plant cooling tower blow-down.

6. Specific Topics to Be Covered
Reclamation Plants
Commercial Separation Facilities
Financial Security
Naturally Occurring Radioactive Materials
(NORM)

7. Primary Consideration for Applications
Rule 3.8(b) – No person conducting activities subject to regulation by the commission may cause or allow pollution of surface or subsurface water in the state.
Primary Rule:
Texas Administrative Code:
TITLE 16
Economic Regulation
PART 1
Railroad Commission of Texas
CHAPTER 3
Oil and Gas Division
RULE §3.8
Water Protection

8. Surface Waste Management
Helpful Information associated with the Environmental Permits Unit can be found in the Surface Waste Management Manual, which can be found on the RRC web site here:

9. Rules: Commercial Reclamation Plants and Separation Facilities
Rule 3.8 – Water Protection
Rule 3.57 – Reclamation Plants
Rule 3.78 – Financial Security
Chapter 4, Subchapter F- NORM
Water protection rules apply to both the Reclamation Plants and Separation Facilities.
Rule 57 applies to recovering crude oil from hydrocarbon wastes and tank bottoms.
Financial security is required for all commercial facilities in the maximum amount allowed by the permit. A Closure Cost Estimate (CCE) precludes a letter of credit or a bond and in most cases requires a professional engineers seal and signature.
NORM stands for Naturally Occurring Radioactive Material, and this rule requires identifying NORM contaminated equipment and disposal An existing reclamation plant or separation facility must provide a NORM survey along with the application.
If a facility has NORM, the CCE must account for it.

10. Rules Rule 3.22- Protection of Birds
Rule 3.98 – Hazardous Waste Management
Chapter 4, Subchapter B – Commercial Recycling
Bird deterrents and prevention measures must be used in pits and any oily sheen must be skimmed from the pit.
Hazardous Waste Management rule provides definitions for hazardous waste, generators information and requirements of each generator.
Covers recycling of solid and liquid wastes .

11. Side-by-Side Comparison
Commercial Reclamation Plants
Commercial Separation Facilities
Recovers crude oil from tank bottoms and other hydrocarbon waste.
Separates solid and liquid components of oil and gas waste for offsite disposal.
Processes by mechanical, chemical, or thermal means
(does not include gun barrel and settling tanks).
Processes by mechanical, chemical or thermal means (does not include gun barrel and settling tanks).
Existing rec plant facilities need to submit a NORM survey along with their renewal/transfer/amendment requests.
Existing separation facilities need to submit a NORM survey along with their renewal/transfer/amendment requests.
* If an operator of a separation facility receives compensation from others for the separation of the oil and gas waste, the facility is considered a “commercial” oil and gas waste separation facility.
Includes pit hydrocarbons, skim oil, spillage, and leakage of crude oil or condensate from producing lease or pipeline storage tanks, and crude oil or condensate associated with pipeline ruptures and other spills.

12. Specific Topics to Be Covered
Overview of Environmental Permits
Reclamation Plants
Commercial Separation Facilities
Financial Security
NORM

13. Reclamation Plant Application
Organization report required for any business with the Commission.
Contact P-5 Department at: (512)
A person planning on doing business with the Commission MUST file an organization report with the Commissions P-5 department before any such business may begin.

14. Reclamation Plant Application
Complete Form R9
The R2 is a monthly report filed after a reclamation permit is issued and is NOT a part of the Reclamation Plant permitting process.
We need the Form R9 completed…not the Form R2.
R9 is the application for a permit for a Reclamation plant, and an R2 is the monthly report incoming and outgoing waste and oil.

15. Reclamation Plant Application
Notice
Copy of application to the county and city clerks.
Published Notice
Proof of Published Notice
Signed Affidavit
Newspaper clipping
Closure Cost Estimate.
A copy of the permit application must be sent to the county clerk of the county of the facility, and if the facility is within city limits a copy of the permit application must be sent to the city clerk.
Published notice needs to be performed once prior to, or at the same time as filing the application with the Commission.
Must be published in commission approved form once in a newspaper of general circulation for the county of the facility.
A Closure Cost Estimate (CCE) must also be submitted for approval to Environmental Permits. After CCE approval, a bond or letter of credit will be required.

16. Reclamation Plant Application
Schematic Diagram “Typical”
Pits permitted separately
Pits require a separate permit application. If you are not sure if it is a pit or not, consult environmental permitting to see if it needs a permit.
Schematic diagram of a typical Reclamation Plant in conjunction with process description.

17. Form R9: Organization Information
Don’t mess this up!
These must be filled out exactly as on the P-5

18. Reclamation Plant Application: Form R9
District office contact information by county and by map are provided:
District office contact information by county and by map are provided below: (

19. Reclamation Plant Application: Form R9
Purpose of filing: Is this a new facility, a transfer of ownership of the facility or a completely new facility?
Type of Facility: Is this a portable (mobile) or permanent (stationary) facility.
Will the facility ever move? If so, it is portable.

20. Reclamation Plant Application: Form R9
Driving directions from nearest town.
Description of the treatment process as it goes through the tanks and processing equipment.

21. Reclamation Plant Application: Form R9
How is material transported to the plant.
Oil and gas related facilities located within 100 yards of the facility (i.e. well, pipeline, saltwater disposal facility, tank battery, etc.)
The Certification Statement must be signed by the operator and MUST be an original signature. (“…authorized to make this report, that it was prepared by me or under my supervision and direction, and that the data and facts started herein are true, correct, and complete to the best of my knowledge”).

22. Topics to Be Covered Overview of Environmental Permits
Reclamation Plants
Commercial Separation Facilities
Financial Security
NORM

23. Separation Facility: Notify
Contact TCEQ about Air Permitting
Certification Statement
Need a P-5 to do business with the Commission (as previously stated).
Contact Texas Commission on Environmental Quality (TCEQ) to see if air permits are necessary for your facility.
Original signature must be used on the certification statement.

24. Separation Facility: Notify
Proof of Published Notice
Two newspaper clippings
Signed affidavit
Texas
Resources Co Texas Natural Resources Code §
Published notice must be in a newspaper of countywide circulation of the county of the facility for two consecutive weeks and be in accordance with Texas Natural Resources Code § ( as outlined below.
The notice must include:
the date the application was filed;
a description of the location of the site including the county in which the site is located, the name of the original survey and abstract number, and the direction and distance from the nearest municipality;
the name of the owner of the site;
the name of the applicant;
the type of fluid or waste to be disposed of at the facility;
the disposal method proposed; and
the procedure for protesting the application.
The notice must be published:
at least once each week for two consecutive weeks with the first publication occurring not earlier than the date the application is filed and not later than the 30th day after the date on which the application is filed; and
in a newspaper of general circulation in the county in which the proposed disposal would occur.
Furnish a clipping of the published notice. It is recommended that the Form for Published Notice be used.
Submit a sworn affidavit from the newspaper giving the date on which the notice was published and stating that the newspaper is of general circulation in the pertinent county. It is recommended that the Form for Affidavit of Publication be used.
Submit a copy of the signed lease agreement with the surface owner.
Submit copies of the letters sent to the surface owner, offset surface owners, city clerk.

25. Separation Facility: Notify
Send to Commission
Send to notified parties*
Copy of the signed lease agreement with the surface owner.
Copy of the application, including all attachments.
Statement indicating names, addresses and date each offset landowner that was notified.
A letter with the statement that “Any protest to the application should be filed with the Commission within 15 days of the date the application is filed with the Commission.”
Copies of each letter sent to the notified parties.
Submit a copy of the signed lease agreement with the surface owner.
Submit copies of the letters sent to the surface owner, offset surface owners, city clerk.
* Notified parties include surface owner, city clerk (if in city limits), and offset surface owners.

26. Separation Facility: Site Information
Location and site description.
Plats and maps.
Soil data.
Borehole
Soil data: USDA website
Subsoil lithology data: Geologic Atlas of Texas
Site Location and Description:
Site coordinates in degrees, minutes, and seconds of longitude and latitude.
A general description of the contour of the pit site, including any water courses or drainage ways.
Is it located in a flood prone area (100 year flood plane).
The Federal Emergency Management Agency (FEMA) can provide information on flood planes. (
Direction of groundwater flow - indicate how this was determined.
Distance to any residences, schools, churches, or hospitals within 500 feet of the proposed site.
Plats and Maps:
A plat drawn to scale the with facility outlined clearly and all offset surface owners and their properties indicated.
A plat with the facility outlined clearly showing the location of all pits, tanks, storage vessels, construction materials.
A complete original 7 1/2 minute USGS topographic quadrangle map with the facility and any pipelines outlined clearly.
Soil data
A sole boring performed to a depth of 100’ feet BLS or to the local depth to groundwater is highly recommended.
A representative schematic with the soil boring location and lithologic description should be signed and sealed by a professional geoscientist.

27. Separation Facility: Site Information
Access Control
Storm water controls
Precipitation and Evaporation
Access Control: Describe what will prevent unauthorized access. Fence and gate? Will the gate be locked or guarded 24/7?
Storm water: How will wastes be retained during wet weather? Disposal of contact rainwater (injection well)? Measures to prevent storm water from migrating unto the facility? Provide the 25 year 24 hour rainfall event amount (NOAA).
Rainwater that has come into contact with oil and gas waste is not allowed to be discharged.
Provide average annual precipitation and evaporation rates for the facility. They can be found at the Texas Water Development Board (TWDB) Web Site:

28. Separation Facility: Waste Description
Processing Procedure
Types and amounts of waste to be accepted
Waste manifest records
Maximum volume of waste to be stored onsite
Spill prevention and control plan
Inspection, maintenance and monitoring plans
Processing procedure: Provide a flow diagram of the process used to separate the solids from the liquids.
Estimate the amounts of each type of waste to be accepted monthly.
Waste manifest: Submit plans for record keeping of incoming and outgoing waste.
Submit the anticipated maximum volume of un-separated waste, separated solids, and separated fluids to be stored and the estimated time frame of storage.
Spill Prevention and Control Plan: time frame that spills will be cleaned up. Outline spill prevention measures.
Inspection: How often will inspections be performed? What will be inspected ( tanks, equipment, pits, liners etc.) If integrity of item degraded in what time frame will action be taken to empty/repair/replace the item?

29. Separation Facility: Closure
Duration of operation
Closure plans
Closure Cost Estimate
Permits are issued for a maximum of five years and will require renewal after five years.
Site closure tasks include: pits backfilled, liners cleaned and demolished/removed, contoured and reseeded.
The Closure Cost Estimate (CCE) must be approved and the application must be complete before a Letter of Credit (LOC) or bond may be put into place.
The CCE for a separation facility requires a professional engineer’s seal and signature.

30. Topics to Be Covered Overview of Environmental Permits
Reclamation Plants
Commercial Separation Facilities
Financial Security
NORM

31. Closure Cost Estimate: Waste
Disposal and transport of liquid and solid waste.
Disposal and transport of fiberglass or polypropylene tanks.
The CCE Must assume tanks are completely full of waste.
Provide a table that provides the capacity, type of tank, and type of waste to be stored for each tank.
Provide the cost of transport and disposal separately.

32. Closure Cost Estimate: Tanks
Cleaning, welding and dismantling costs of tanks.
Cannot assume steel or oil sale will offset cost.
Tank pad disposal or demolition.

33. Topics to Be Covered Overview of Environmental Permits
Reclamation Plants
Commercial Separation Facilities
Financial Security
NORM

34. What is NORM? Naturally Occurring Radioactive Material
Wastes may contain materials such as uranium and thorium and their daughter products, radium-226 and radium-228.
The RRC has responsibility for regulating the disposal of NORM associated with Oil and Gas activities, identification of NORM and NORM contaminated equipment (TAC Title 16, Part 1, Chapter 4, Subchapter F, Rule §4.6).

35. Texas Department of State Health Services (DSHS) NORM Jurisdiction
Recycling of NORM.
Processing or treatment of NORM that occurs at a location other than a disposal site.
Decontamination of equipment and facilities (excluding disposal facilities and in-place mixing of NORM).
Possession, use, transfer, transport, and/or storage of NORM.
Worker protection standards.
NORM Licensing:
There are three agencies responsible for regulating different aspects of NORM. The following is an attempt to clarify each agency's role, what regulations apply and whom to contact for more information or questions.
1. Texas Department of State Health Services, Radiation Control Program, Radiation Safety Licensing Branch
Regulates receipt, possession, storage, use and treatment of NORM under  25 Texas Administrative Code §  "Licensing of Naturally Occurring Radioactive Material."
2. Railroad Commission of Texas
Railroad Commission of Texas regulates the disposal of oil and gas NORM waste under 16 Texas Administrative Code, Title 16, Part 1, Chapter 4, Subchapter F, § ; "Disposal of Oil and Gas NORM Waste. "Also see Performance of NORM decontamination, and disposal by the owner through on-site land farming and/or injection well disposal is under the RRC’s purview.
3. Texas Commission on Environmental Quality (TCEQ)
Regulates disposal of all NORM, except oil and gas. Their rules are currently in the developmental stage. For more information, see 

36. NORM: Contaminated Equipment
NORM may exist as scale on the inner surface of equipment.
NORM contaminated equipment is considered any equipment that at any access point exhibits a minimum radiation exposure level greater than 50 µR/hr including background radiation level.
Example: If a scintillator reading for an empty tank is found to be greater than 50 µR/hr (including background radiation level), then these tanks are considered NORM contaminated equipment.
* Empty equipment scintillating in excess of 50uR/hr, including background, indicates that the equipment is oil and gas NORM waste.
Microroentgens per hour (µR/hr)--A measurement of exposure from x-ray and gamma ray radiation in air.

37. NORM: Waste
Oil and Gas NORM waste is any solid, liquid, or gaseous material or combination of materials (excluding source material, special nuclear material, and by-product material) that:
In its natural physical state spontaneously emits radiation;
Is discarded or unwanted;
Constitutes, is contained in, or has contaminated oil and gas waste;
Prior to treatment or processing that reduces the radioactivity concentration, exceeds exemption criteria specified in 25 TAC § (d)

38. NORM: Waste
25 TAC § (d) Oil and Gas NORM waste are exempt from the requirements of this chapter if the material contains, or is contaminated at, concentrations of:
30 picocuries per gram (pCi/gm) or less of radium-226 or radium-228 in:
soil, averaged over any 100 square meters (m 2 ) and averaged over the first 15 centimeters (cm) of soil below the surface; or other media
150 pCi or less per gram of any other NORM radionuclide in:
soil, averaged over any 100 m2 and averaged over the first 15 cm of soil below the surface, provided that these concentrations are not exceeded; or
other media, provided that these concentrations are not exceeded.
Picocuries per gram (pCi/g)--A measure of the radioactivity in one gram of a material. One picocurie is that quantity of radionuclide(s) that decays at the rate of 3.7 x 10-2 disintegrations per second.
A measure of the radioactivity in one gram of a material. One picocurie is that quantity of radionuclide(s) that decays at the rate of 3.7 x 10-2 disintegrations per second.

39. Common Examples of NORM Waste
Empty equipment (pipes, tanks etc.) scintillating in excess of 50uR/hr including background NORM must be disposed of at an authorized Oil and Gas Waste NORM facility.
Sludge that accumulates in oilfield pits and tanks that does not meet the exemption criteria in 25 TAC § (d).

40. When is NORM Testing Required for Permit Applications?
NORM must be tested for at existing reclamation plants and separation facilities.
If the tanks have been used in oil and gas operations previously and have not been cleaned by a NORM certified crew, then they must be screened for NORM.

41. NORM Contaminated Equipment
16 TAC §4.605 requires all NORM contaminated equipment used for production and disposal operations to be identified with the acronym NORM.
In order to comply with this rule, a NORM survey must be conducted using DSHS regulations, specified in 25 TAC (e).
* Empty equipment scintillating in excess of 50uR/hr, including background, indicate that the equipment is oil and gas NORM waste and must be marked as such.

42. NORM: Closure Cost Estimate
Disposal of NORM contaminated equipment at a oil and gas NORM disposal facility must be accounted in the Closure Cost Estimate (CCE).
Disposal of NORM waste (e.g. sludge) at a oil and gas NORM disposal facility must be accounted in the Closure Cost Estimate.

43. Active Permitted Commercial NORM Disposal Facilities
Lotus
Energen Resources
Trinity Storage Services
Newpark Environmental
MB Environmental

44. References
International Commission on Radiological Protection, 1991, 1990 Recommendations
of the International Commission of Radiological Protection, User’s Edition, ICRP Publication 60, Pergammon Press, Oxford, United Kingdom.
National Council on Radiation Protection and Measurements, 1993, Limitation of
Exposure to Ionizing Radiation, NCRP Report 116, Bethesda, Maryland.
Smith, GL. 1995, Calculations for Various NORM Scale Configuration. Inter-Office
Memorandon, Texas Department of Heath (Working Copy).
Yu, C. et al. 1993, Manual for Implementing Residual Radioactive Material
Guidelines Using RESRAD, Version 6, Argonne National Laboratory, Illinois,Sponsored by U.S. DOE. ANL/EAIS-8.

45. Environmental Permits Main Line Email: Grant.Chambless@rrc.state.tx.us
Questions?
Contact Information:
Environmental Permits Main Line