Review and Approval of Projects, 78618-78621 [E8-30315]
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78618
Federal Register / Vol. 73, No. 247 / Tuesday, December 23, 2008 / Rules and Regulations
By order of the Board of Governors of the
Federal Reserve System, December 18, 2008.
Jennifer J. Johnson,
Secretary of the Board.
[FR Doc. E8–30471 Filed 12–22–08; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
No adverse comments were received,
and thus this notice confirms that
effective date.
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Issued in College Park, Georgia, on
December 2, 2008.
Mark D. Ward,
Manager, Operations Support Group, Eastern
Service Center, Air Traffic Organization.
[FR Doc. E8–30434 Filed 12–22–08; 8:45 am]
BILLING CODE 4910–13–P
14 CFR Part 71
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
Modification of Class D and E
Airspace; Brunswick, ME
14 CFR Part 71
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AAL AK E5 Napakiak, AK [Corrected]
Napakiak, Napakiak Airport, AK
(Lat. 60°41′25″ N., long. 161°58′43″ W.)
That airspace extending upward from 700
feet above the surface within a 6.3-mile
radius of the Napakiak Airport, AK; and that
airspace extending upward from 1,200 feet
above the surface within a 84-mile radius of
the Napakiak Airport, AK.
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Issued in Anchorage, AK, on December 4,
2008.
Anthony M. Wylie,
Manager, Alaska Flight Services Information
Area Group.
[FR Doc. E8–30390 Filed 12–22–08; 8:45 am]
This action confirms the
effective date of a direct final rule
published in the Federal Register (73
FR 56475) that modifies Class D and E
Airspace at Brunswick, ME to reflect the
times when the controlled airspace is
effective.
Effective 0901 UTC, January 15,
2009. The Director of the Federal
Register approves this incorporation by
reference action under title 1, Code of
Federal Regulations, part 51, subject to
the annual revision of FAA Order
7400.9 and publication of conforming
amendments.
DATES:
FOR FURTHER INFORMATION CONTACT:
Melinda Giddens, Operations Support
Group, Federal Aviation
Administration, P.O. Box 20636,
Atlanta, Georgia 30320; Telephone (404)
305–5610, Fax 404–305–5572.
SUPPLEMENTARY INFORMATION:
Confirmation of Effective Date
The FAA published this direct final
rule with a request for comments in the
Federal Register on September 29, 2008
(73 FR 56475), Docket No. FAA–2008–
0203; Airspace Docket No. 08–ANE–99.
The FAA uses the direct final
rulemaking procedure for a noncontroversial rule where the FAA
believes there will be no adverse public
comment. This direct final rule advised
the public that no adverse comments
were anticipated, and that unless a
written adverse comment, or a written
notice of intent to submit such an
adverse comment, were received within
the comment period, the regulation
would become effective on January 15,
2009.
BILLING CODE 4910–13–P
Establishment of Class E Airspace;
Napakiak, AK
SUMMARY:
Jkt 217001
[Corrected]
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[Docket No. FAA–2008–0454; Airspace
Docket No. 08–AAL–13]
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule, confirmation of
effective date.
15:41 Dec 22, 2008
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[Docket No. FAA–2008–0203; Airspace
Docket No. 08–ANE–99]
VerDate Aug<31>2005
§ 71.1
SUSQUEHANNA RIVER BASIN
COMMISSION
AGENCY: Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule; correction.
18 CFR Part 806
Review and Approval of Projects
SUMMARY: This action corrects an error
in the airspace description contained in
a Final Rule that was published in the
Federal Register on Thursday,
November 20, 2008 (73 FR 70271).
Airspace Docket No. 08–AAL–13.
DATES: Effective Date: 0901 UTC,
January 15, 2009.
FOR FURTHER INFORMATION CONTACT: Gary
Rolf, AAL–538G, Federal Aviation
Administration, 222 West 7th Avenue,
Box 14, Anchorage, AK 99513–7587;
telephone number (907) 271–5898; fax:
(907) 271–2850; e-mail:
gary.ctr.rolf@faa.gov. Internet address:
https://www.faa.gov/about/office_org/
headquarters_offices/ato/service_units/
systemops/fs/alaskan/rulemaking/.
SUPPLEMENTARY INFORMATION:
History
Federal Register Docket FAA–2008–
0454, Airspace Docket No. 08–AAL–13,
published on Thursday, November 20,
2008 (73 FR 70271), established Class E
airspace at Napakiak, AK. A
typographical error was discovered in
the airspace description defining the
airport location. This action corrects
that error.
Correction to Final Rule
Accordingly, pursuant to the authority
delegated to me, the airspace
description of the Class E airspace
published in the Federal Register,
Thursday, November 20, 2008 (73 FR
70271), Docket No. FAA–2008–0454,
Airspace Docket No. 08–AAL–15, page
70272, column 2 is corrected as follows:
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AGENCY: Susquehanna River Basin
Commission.
ACTION: Final rule.
SUMMARY: This document contains
amendments to the project review
regulations of the Susquehanna River
Basin Commission (Commission)
requiring review and approval of any
natural gas well development project
targeting the Marcellus or Utica shale
formations and involving the
withdrawal, diversion, or consumptive
use of waters of the Susquehanna River
Basin, adding a provision providing for
a specific approval by rule process for
consumptive water use associated with
such projects, and modifying the
definitions of ‘‘construction’’ and
‘‘project.’’ In addition, editorial changes
are made to the existing approval by
rule provision related to the
consumptive use of water withdrawn
from public water supply systems to
make that provision consistent with the
new approval by rule provision for
natural gas well development projects.
DATES: These rules are effective on
January 15, 2009.
ADDRESSES: Susquehanna River Basin
Commission, 1721 N. Front Street,
Harrisburg, PA 17102–2391.
FOR FURTHER INFORMATION CONTACT:
Richard A. Cairo, General Counsel, 717–
238–0423; fax: 717–238–2436; e-mail:
rcairo@srbc.net. Also, for further
information on the final rulemaking,
visit the Commission’s Web site at
https://www.srbc.net.
SUPPLEMENTARY INFORMATION:
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Federal Register / Vol. 73, No. 247 / Tuesday, December 23, 2008 / Rules and Regulations
Background and Purpose of
Amendments
As a result of advances in hydraulic
fracturing and higher natural gas prices,
natural gas well development activity in
the Susquehanna River Basin has
increased dramatically in the past year,
resulting in a large number of project
applications being filed with the
Commission seeking approval for the
withdrawal and consumptive use of
water for that activity. The Commission
is hereby adopting a final rulemaking
action to handle the large and
immediate influx of project
applications, and to avoid adverse,
cumulative adverse or interstate effects
to the water resources of the basin.
The final rule modifies the definitions
of ‘‘construction’’ and ‘‘project’’ for
purposes of natural gas well
development; requires review and
approval of any natural gas well
development project involving the
withdrawal, diversion, or consumptive
use of water; and adds a specific
approval by rule process associated with
the consumptive use of water by such
projects. The Commission’s current
approval by rule process is available for
use only if the sole source of water is
a public water supply system. Under
this rule change, the new approval by
rule process will allow for the
consumptive use of wastewater, acid
mine water, and other sources of water
for natural gas well development
projects. The final rule will not change
the current process used to review
groundwater or surface water
withdrawals.
In addition, editorial changes are
made to the existing approval by rule
provision relating to the consumptive
use of water withdrawn from public
water supply systems to make that
provision consistent with the new
approval by rule provision for natural
gas well development projects.
The Commission convened public
hearings on October 21, 2008, in
Williamsport, Pa. and on October 22,
2008, in Binghamton, N.Y. A written
comment period was held open until
October 31, 2008. Comments were
received at both the hearings and during
the comment period, one set coming
mainly from the environmental
community or those concerned about
environmental issues, and another set
coming from industry representatives.
Comments from the environmental
community expressed concern that an
approval by rule process applying to gas
well drilling projects would not provide
sufficient protection to environmental
resources such as aquifers and streams.
There was a concern that the approval
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by rule process would somehow
supersede or short cut all other forms of
review conducted by the Commission.
However, full review and approval will
continue to be required for all
withdrawals by well drilling projects.
To make this point clear, the
Commission is adding language to
§ 806.22(f)(9) of the final rule stating
that the issuance of an approval by rule
for a consumptive use shall not be
construed to waive or exempt the
project sponsor from obtaining
Commission approval for any water
withdrawals or diversions subject to
review pursuant to § 806.4(a).
Several citizens were also concerned
that chemicals added to water used for
hydro-fracturing will not be treated
properly and could somehow cause
pollution of aquifers and streams. The
Commission does not presently regulate
water quality; however, the
Commission’s member jurisdictions
regulate the treatment and disposal of
flowback fluids or produced brines from
well drilling operations. The
Commission is therefore including a
provision in § 806.22(f)(8) that requires
gas well applicants to certify to the
Commission that all such flowback
fluids will be treated and disposed of in
accordance with applicable state and
federal law. In addition, project
sponsors are required under
§ 806.22(f)(7) to obtain all necessary
permits and approvals that are required
for the project from other Federal, State,
or local government agencies having
jurisdiction.
Industry comments pointed to various
sections of the proposed regulations felt
to be either unnecessary or burdensome.
While not agreeing with all such
comments, the Commission has made
the following changes to the final
rulemaking, which it believes responds
adequately to industry concerns:
1. The requirement for approval by
rule of natural gas drilling projects in
§ 806.4(a)(8) is limited to those projects
targeting the Marcellus or Utica Shale
Formations, unless additional shale
formations are identified by the
executive director of the Commission in
a formal determination pursuant to
§ 806.5. The reference to ‘‘other shale
formations’’ in the proposed rulemaking
has been deleted.
2. The requirement to submit a Notice
of Intent (NOI) ‘‘at least 60 days’’ prior
to undertaking a project or increasing a
previously approved quantity under
§ 806.22(f)(2) is removed. Applicants
will only be required to submit the NOI
prior to such undertaking.
3. In § 806.22(f)(8), project sponsors
are required to ‘‘certify’’ that all
flowback fluids have been treated and
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78619
disposed of in accordance with
applicable law, instead of having to
‘‘demonstrate to the satisfaction of the
Commission’’ that this has been done.
Concern was raised that the term
‘‘demonstrate’’ was overly vague.
Certification would be subject to laws
relating to unsworn falsification to
authorities.
4. In § 806.22(f)(10), it is made clear
that an approval by rule does not
rescind, but merely supersedes any
previous consumptive use approval.
5. The provision contained in the
proposed rulemaking prohibiting the
transfer of § 806.22(f) approvals is
deleted, allowing such approvals to be
transferred in accordance with the rules
applying to any project approval under
§ 806.6.
In response to a comment from the
Commission’s member jurisdictions, the
term ‘‘Executive Director’’ replaces the
term ‘‘Commission’’ in § 806.22(f)(7), (9)
and (10) as the entity responsible for
issuing an approval by rule and
exercising oversight on that approval.
Similar changes have been made in
§ 806.22(e)(1), (6) and (7) to be
consistent with this change and to
clarify current Commission practice. In
response to another comment from
member jurisdictions, the notice
requirements in § 806.22(f)(3) have been
modified to reference the notice
requirements contained in § 806.15 that
apply to all projects generally, and to
require applicants to copy the
appropriate agencies of the member
state with any NOI submitted under the
rule. A final change made in response
to the Commission’s member
jurisdictions was to clarify the language
in § 806.22(f)(11) related to the process
for obtaining authorization to utilize
additional sources of water subsequent
to the issuance of an approval by rule.
List of Subjects in 18 CFR Part 806
Administrative practice and
procedure, Water resources.
■ Accordingly, for the reasons set forth
in the preamble, 18 CFR part 806 is
amended as follows:
PART 806—REVIEW AND APPROVAL
OF PROJECTS
1. The authority citation for part 806
continues to read as follows:
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Authority: Secs. 3.4, 3.5(5), 3.8, 3.10 and
15.2, Pub. L. 91–575, 84 Stat. 1509 et seq.
2. In § 806.3, revise the definitions of
‘‘construction’’ and ‘‘project’’ to read as
follows:
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§ 806.3
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Definitions.
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Federal Register / Vol. 73, No. 247 / Tuesday, December 23, 2008 / Rules and Regulations
Construction. To physically initiate
assemblage, installation, erection or
fabrication of any facility, involving or
intended for the withdrawal,
conveyance, storage or consumptive use
of the waters of the basin. For purposes
of natural gas well development projects
subject to review and approval pursuant
to § 806.4(a)(8), initiation of
construction shall be deemed to
commence upon the drilling (spudding)
of a gas well, or the initiation of
construction of any water impoundment
or other water-related facility to serve
the project, whichever comes first.
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Project. Any work, service, activity, or
facility undertaken, which is separately
planned, financed or identified by the
Commission, or any separate facility
undertaken or to be undertaken by the
Commission or otherwise within a
specified area, for the conservation,
utilization, control, development, or
management of water resources, which
can be established and utilized
independently, or as an addition to an
existing facility, and can be considered
as a separate entity for purposes of
evaluation. For purposes of natural gas
well development activity, the project
shall be considered to be the drilling
pad upon which one or more
exploratory or production wells are
undertaken, and all water-related
appurtenant facilities and activities
related thereto.
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■ 3. In § 806.4, amend paragraph (a) by
adding paragraph (a)(8) to read as
follows:
§ 806.4 Projects requiring review and
approval.
(a) * * *
(8) Any natural gas well development
project in the basin targeting the
Marcellus or Utica shale formations, or
any other formation identified in a
determination issued by the Executive
Director pursuant to § 806.5, for
exploration or production of natural gas
involving a withdrawal, diversion or
consumptive use, regardless of the
quantity.
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■ 4. In § 806.22, revise paragraph (e)(1)
introductory text, (e)(1)(ii), (e)(6), (e)(7)
and add a new paragraph (f) to read as
follows:
§ 806.22 Standards for consumptive uses
of water.
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(e) * * *
(1) Except with respect to projects
involving natural gas well development
subject to the provision of paragraph (f)
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15:41 Dec 22, 2008
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of this section, any project whose sole
source of water for consumptive use is
a public water supply withdrawal, may
be approved by the Executive Director
under this paragraph (e) in accordance
with the following, unless the Executive
Director determines that the project
cannot be adequately regulated under
this approval by rule:
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(ii) Within 10 days after submittal of
an NOI under paragraph (e)(1)(i) of this
section, the project sponsor shall submit
to the Commission proof of publication
in a newspaper of general circulation in
the location of the project, a notice of its
intent to operate under this approval by
rule, which contains a sufficient
description of the project, its purposes
and its location. This notice shall also
contain the address, electronic mail
address and telephone number of the
Commission.
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(6) The Executive Director will grant
or deny approval to operate under this
approval by rule and will notify the
project sponsor of such determination,
including the quantity of consumptive
use approved.
(7) Approval by rule shall be effective
upon written notification from the
Executive Director to the project
sponsor, shall expire 15 years from the
date of such notification, and shall be
deemed to rescind any previous
consumptive use approvals.
(f) Approval by rule for consumptive
use related to natural gas well
development.
(1) Any project involving the
development of natural gas wells subject
to review and approval under §§ 806.4,
806.5, or 806.6 of this part shall be
subject to review and approval by the
Executive Director under this paragraph
(f) regardless of the source or sources of
water being used consumptively.
(2) Notification of Intent: Prior to
undertaking a project or increasing a
previously approved quantity of
consumptive use, the project sponsor
shall submit a Notice of Intent (NOI) on
forms prescribed by the Commission,
and the appropriate application fee,
along with any required attachments.
(3) Within 10 days after submittal of
a NOI under paragraph (f)(2) of this
section, the project sponsor shall satisfy
the notice requirements set forth in
§ 806.15 and send a copy of the NOI to
the appropriate agencies of the member
state.
(4) The project sponsor shall comply
with metering, daily use monitoring and
quarterly reporting as specified in
§ 806.30, or as otherwise required by the
approval by rule. Daily use monitoring
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shall include amounts delivered or
withdrawn per source, per day, and
amounts used per gas well, per day, for
well drilling, hydrofracture stimulation,
hydrostatic testing, and dust control.
The foregoing shall apply to all water
and fluids, including additives,
flowback and brines, utilized by the
project.
(5) The project sponsor shall comply
with the mitigation requirements set
forth in § 806.22(b).
(6) Any flowback fluids or produced
brines utilized by the project sponsor for
hydrofracture stimulation undertaken at
the project shall be separately accounted
for, but shall not be included in the
daily consumptive use amount
calculated for the project, or be subject
to the mitigation requirements of
§ 806.22(b).
(7) The project sponsor shall obtain
all necessary permits or approvals
required for the project from other
federal, state, or local government
agencies having jurisdiction over the
project. The Executive Director reserves
the right to modify, suspend or revoke
any approval under this paragraph (f) if
the project sponsor fails to obtain or
maintain such approvals.
(8) The project sponsor shall certify to
the Commission that all flowback and
produced fluids, including brines, have
been treated and disposed of in
accordance with applicable state and
federal law.
(9) The Executive Director may grant
or deny or condition an approval to
operate under this approval by rule and
will notify the project sponsor of such
determination, including the sources
and quantity of consumptive use
approved. The issuance of any such
approval shall not be construed to waive
or exempt the project sponsor from
obtaining Commission approval for any
water withdrawals or diversions subject
to review pursuant to § 806.4(a).
(10) Approval by rule shall be
effective upon written notification from
the Executive Director to the project
sponsor, shall expire five years from the
date of such notification, and supersede
any previous consumptive use
approvals to the extent applicable to the
project.
(11) Subsequent to the issuance of an
approval by rule pursuant to paragraph
(f)(9) of this section, authorization to
utilize additional sources of water for
the project other than those identified in
the approval by rule may be obtained as
follows:
(i) Water withdrawals or diversions
requiring and receiving approval by the
Commission pursuant to § 806.4(a),
provided such withdrawal source is
approved for such use and is registered
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Federal Register / Vol. 73, No. 247 / Tuesday, December 23, 2008 / Rules and Regulations
with the Commission at least 10 days
prior to use on a form and in a manner
as prescribed by the Commission.
(ii) Sources of water other than those
subject to paragraph (f)(11)(i) of this
section, including, but not limited to,
public water supply, wastewater
discharge or other reclaimed waters,
provided such sources are approved
prior to use as a modification to the
approval by rule. Any request to modify
an approval by rule to utilize such
source(s) shall be submitted on a form
and in a manner as prescribed by the
Commission, and shall be subject to
review pursuant to the standards set
forth in subpart C of this part.
Dated: December 11, 2008.
Thomas W. Beauduy,
Deputy Director.
[FR Doc. E8–30315 Filed 12–22–08; 8:45 am]
BILLING CODE 7040–01–P
PENSION BENEFIT GUARANTY
CORPORATION
29 CFR Part 4022
Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions
for Valuing and Paying Benefits
AGENCY: Pension Benefit Guaranty
Corporation.
ACTION: Final rule.
SUMMARY: Pension Benefit Guaranty
Corporation’s regulation on Benefits
Payable in Terminated Single-Employer
Plans prescribes interest assumptions
for valuing and paying certain benefits
under terminating single-employer
plans. This final rule amends the benefit
payments regulation to adopt interest
assumptions for plans with valuation
dates in January 2009. As discussed
below, PBGC will publish a separate
final rule document dealing with
interest assumptions under its
regulation on Allocation of Assets in
Single-Employer Plans for January 2009.
Interest assumptions are also published
on PBGC’s Web site (https://
www.pbgc.gov).
DATES:
Effective January 1, 2009.
FOR FURTHER INFORMATION CONTACT:
Catherine B. Klion, Manager, Regulatory
and Policy Division, Legislative and
Regulatory Department, Pension Benefit
Guaranty Corporation, 1200 K Street,
NW., Washington, DC 20005, 202–326–
VerDate Aug<31>2005
15:41 Dec 22, 2008
Jkt 217001
4024. (TTY/TDD users may call the
Federal relay service toll-free at 1–800–
877–8339 and ask to be connected to
202–326–4024.)
SUPPLEMENTARY INFORMATION: PBGC’s
regulations prescribe actuarial
assumptions—including interest
assumptions—for valuing and paying
plan benefits of terminating singleemployer plans covered by title IV of
the Employee Retirement Income
Security Act of 1974. The interest
assumptions are intended to reflect
current conditions in the financial and
annuity markets.
These interest assumptions are found
in two PBGC regulations: the regulation
on Benefits Payable in Terminated
Single-Employer Plans (29 CFR part
4022) and the regulation on Allocation
of Assets in Single-Employer Plans (29
CFR part 4044). PBGC normally updates
the assumptions under the two
regulations each month in a single
rulemaking document. Because of
delays in obtaining data used in setting
the assumptions for January 2009, PBGC
is publishing two rulemaking
documents to update the two
regulations for January 2009. This
document is a final rule updating the
benefit payments regulation.
Two sets of interest assumptions are
prescribed under the benefit payments
regulation: (1) A set for the PBGC to use
to determine whether a benefit is
payable as a lump sum and to determine
lump-sum amounts to be paid by the
PBGC (found in Appendix B to Part
4022), and (2) a set for private-sector
pension practitioners to refer to if they
wish to use lump-sum interest rates
determined using the PBGC’s historical
methodology (found in Appendix C to
Part 4022).
This amendment (1) adds to
Appendix B to Part 4022 the interest
assumptions for the PBGC to use for its
own lump-sum payments in plans with
valuation dates during January 2009,
and (2) adds to Appendix C to Part 4022
the interest assumptions for privatesector pension practitioners to refer to if
they wish to use lump-sum interest rates
determined using the PBGC’s historical
methodology for valuation dates during
January 2009.
The interest assumptions that the
PBGC will use for its own lump-sum
payments (set forth in Appendix B to
part 4022) will be 4.00 percent for the
period during which a benefit is in pay
status and 4.00 percent during any years
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78621
preceding the benefit’s placement in pay
status. These interest assumptions
represent a decrease (from those in
effect for December 2008) of 0.75
percent in the immediate annuity rate
and are otherwise unchanged. For
private-sector payments, the interest
assumptions (set forth in Appendix C to
part 4022) will be the same as those
used by the PBGC for determining and
paying lump sums (set forth in
Appendix B to part 4022).
The PBGC has determined that notice
and public comment on this amendment
are impracticable and contrary to the
public interest. This finding is based on
the need to determine and issue new
interest assumptions promptly so that
the assumptions can reflect current
market conditions as accurately as
possible.
Because of the need to provide
immediate guidance for the valuation
and payment of benefits in plans with
valuation dates during January 2009, the
PBGC finds that good cause exists for
making the assumptions set forth in this
amendment effective less than 30 days
after publication.
The PBGC has determined that this
action is not a ‘‘significant regulatory
action’’ under the criteria set forth in
Executive Order 12866.
Because no general notice of proposed
rulemaking is required for this
amendment, the Regulatory Flexibility
Act of 1980 does not apply. See 5 U.S.C.
601(2).
List of Subjects in 29 CFR Part 4022
Employee benefit plans, Pension
insurance, Pensions, Reporting and
recordkeeping requirements.
■ In consideration of the foregoing, 29
CFR part 4022 is amended as follows:
PART 4022—BENEFITS PAYABLE IN
TERMINATED SINGLE—EMPLOYER
PLANS
1. The authority citation for part 4022
continues to read as follows:
■
Authority: 29 U.S.C. 1302, 1322, 1322b,
1341(c)(3)(D), and 1344.
2. In appendix B to part 4022, Rate Set
183, as set forth below, is added to the
table.
■
Appendix B to Part 4022—Lump Sum
Interest Rates For PBGC Payments
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]]>Agencies
[Federal Register Volume 73, Number 247 (Tuesday, December 23, 2008)]
[Rules and Regulations]
[Pages 78618-78621]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30315]
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SUSQUEHANNA RIVER BASIN COMMISSION
18 CFR Part 806
Review and Approval of Projects
AGENCY: Susquehanna River Basin Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: This document contains amendments to the project review
regulations of the Susquehanna River Basin Commission (Commission)
requiring review and approval of any natural gas well development
project targeting the Marcellus or Utica shale formations and involving
the withdrawal, diversion, or consumptive use of waters of the
Susquehanna River Basin, adding a provision providing for a specific
approval by rule process for consumptive water use associated with such
projects, and modifying the definitions of ``construction'' and
``project.'' In addition, editorial changes are made to the existing
approval by rule provision related to the consumptive use of water
withdrawn from public water supply systems to make that provision
consistent with the new approval by rule provision for natural gas well
development projects.
DATES: These rules are effective on January 15, 2009.
ADDRESSES: Susquehanna River Basin Commission, 1721 N. Front Street,
Harrisburg, PA 17102-2391.
FOR FURTHER INFORMATION CONTACT: Richard A. Cairo, General Counsel,
717-238-0423; fax: 717-238-2436; e-mail: rcairo@srbc.net. Also, for
further information on the final rulemaking, visit the Commission's Web
site at https://www.srbc.net.
SUPPLEMENTARY INFORMATION:
[[Page 78619]]
Background and Purpose of Amendments
As a result of advances in hydraulic fracturing and higher natural
gas prices, natural gas well development activity in the Susquehanna
River Basin has increased dramatically in the past year, resulting in a
large number of project applications being filed with the Commission
seeking approval for the withdrawal and consumptive use of water for
that activity. The Commission is hereby adopting a final rulemaking
action to handle the large and immediate influx of project
applications, and to avoid adverse, cumulative adverse or interstate
effects to the water resources of the basin.
The final rule modifies the definitions of ``construction'' and
``project'' for purposes of natural gas well development; requires
review and approval of any natural gas well development project
involving the withdrawal, diversion, or consumptive use of water; and
adds a specific approval by rule process associated with the
consumptive use of water by such projects. The Commission's current
approval by rule process is available for use only if the sole source
of water is a public water supply system. Under this rule change, the
new approval by rule process will allow for the consumptive use of
wastewater, acid mine water, and other sources of water for natural gas
well development projects. The final rule will not change the current
process used to review groundwater or surface water withdrawals.
In addition, editorial changes are made to the existing approval by
rule provision relating to the consumptive use of water withdrawn from
public water supply systems to make that provision consistent with the
new approval by rule provision for natural gas well development
projects.
The Commission convened public hearings on October 21, 2008, in
Williamsport, Pa. and on October 22, 2008, in Binghamton, N.Y. A
written comment period was held open until October 31, 2008. Comments
were received at both the hearings and during the comment period, one
set coming mainly from the environmental community or those concerned
about environmental issues, and another set coming from industry
representatives.
Comments from the environmental community expressed concern that an
approval by rule process applying to gas well drilling projects would
not provide sufficient protection to environmental resources such as
aquifers and streams. There was a concern that the approval by rule
process would somehow supersede or short cut all other forms of review
conducted by the Commission. However, full review and approval will
continue to be required for all withdrawals by well drilling projects.
To make this point clear, the Commission is adding language to Sec.
806.22(f)(9) of the final rule stating that the issuance of an approval
by rule for a consumptive use shall not be construed to waive or exempt
the project sponsor from obtaining Commission approval for any water
withdrawals or diversions subject to review pursuant to Sec. 806.4(a).
Several citizens were also concerned that chemicals added to water
used for hydro-fracturing will not be treated properly and could
somehow cause pollution of aquifers and streams. The Commission does
not presently regulate water quality; however, the Commission's member
jurisdictions regulate the treatment and disposal of flowback fluids or
produced brines from well drilling operations. The Commission is
therefore including a provision in Sec. 806.22(f)(8) that requires gas
well applicants to certify to the Commission that all such flowback
fluids will be treated and disposed of in accordance with applicable
state and federal law. In addition, project sponsors are required under
Sec. 806.22(f)(7) to obtain all necessary permits and approvals that
are required for the project from other Federal, State, or local
government agencies having jurisdiction.
Industry comments pointed to various sections of the proposed
regulations felt to be either unnecessary or burdensome. While not
agreeing with all such comments, the Commission has made the following
changes to the final rulemaking, which it believes responds adequately
to industry concerns:
1. The requirement for approval by rule of natural gas drilling
projects in Sec. 806.4(a)(8) is limited to those projects targeting
the Marcellus or Utica Shale Formations, unless additional shale
formations are identified by the executive director of the Commission
in a formal determination pursuant to Sec. 806.5. The reference to
``other shale formations'' in the proposed rulemaking has been deleted.
2. The requirement to submit a Notice of Intent (NOI) ``at least 60
days'' prior to undertaking a project or increasing a previously
approved quantity under Sec. 806.22(f)(2) is removed. Applicants will
only be required to submit the NOI prior to such undertaking.
3. In Sec. 806.22(f)(8), project sponsors are required to
``certify'' that all flowback fluids have been treated and disposed of
in accordance with applicable law, instead of having to ``demonstrate
to the satisfaction of the Commission'' that this has been done.
Concern was raised that the term ``demonstrate'' was overly vague.
Certification would be subject to laws relating to unsworn
falsification to authorities.
4. In Sec. 806.22(f)(10), it is made clear that an approval by
rule does not rescind, but merely supersedes any previous consumptive
use approval.
5. The provision contained in the proposed rulemaking prohibiting
the transfer of Sec. 806.22(f) approvals is deleted, allowing such
approvals to be transferred in accordance with the rules applying to
any project approval under Sec. 806.6.
In response to a comment from the Commission's member
jurisdictions, the term ``Executive Director'' replaces the term
``Commission'' in Sec. 806.22(f)(7), (9) and (10) as the entity
responsible for issuing an approval by rule and exercising oversight on
that approval. Similar changes have been made in Sec. 806.22(e)(1),
(6) and (7) to be consistent with this change and to clarify current
Commission practice. In response to another comment from member
jurisdictions, the notice requirements in Sec. 806.22(f)(3) have been
modified to reference the notice requirements contained in Sec. 806.15
that apply to all projects generally, and to require applicants to copy
the appropriate agencies of the member state with any NOI submitted
under the rule. A final change made in response to the Commission's
member jurisdictions was to clarify the language in Sec. 806.22(f)(11)
related to the process for obtaining authorization to utilize
additional sources of water subsequent to the issuance of an approval
by rule.
List of Subjects in 18 CFR Part 806
Administrative practice and procedure, Water resources.
0
Accordingly, for the reasons set forth in the preamble, 18 CFR part 806
is amended as follows:
PART 806--REVIEW AND APPROVAL OF PROJECTS
0
1. The authority citation for part 806 continues to read as follows:
Authority: Secs. 3.4, 3.5(5), 3.8, 3.10 and 15.2, Pub. L. 91-
575, 84 Stat. 1509 et seq.
0
2. In Sec. 806.3, revise the definitions of ``construction'' and
``project'' to read as follows:
Sec. 806.3 Definitions.
* * * * *
[[Page 78620]]
Construction. To physically initiate assemblage, installation,
erection or fabrication of any facility, involving or intended for the
withdrawal, conveyance, storage or consumptive use of the waters of the
basin. For purposes of natural gas well development projects subject to
review and approval pursuant to Sec. 806.4(a)(8), initiation of
construction shall be deemed to commence upon the drilling (spudding)
of a gas well, or the initiation of construction of any water
impoundment or other water-related facility to serve the project,
whichever comes first.
* * * * *
Project. Any work, service, activity, or facility undertaken, which
is separately planned, financed or identified by the Commission, or any
separate facility undertaken or to be undertaken by the Commission or
otherwise within a specified area, for the conservation, utilization,
control, development, or management of water resources, which can be
established and utilized independently, or as an addition to an
existing facility, and can be considered as a separate entity for
purposes of evaluation. For purposes of natural gas well development
activity, the project shall be considered to be the drilling pad upon
which one or more exploratory or production wells are undertaken, and
all water-related appurtenant facilities and activities related
thereto.
* * * * *
0
3. In Sec. 806.4, amend paragraph (a) by adding paragraph (a)(8) to
read as follows:
Sec. 806.4 Projects requiring review and approval.
(a) * * *
(8) Any natural gas well development project in the basin targeting
the Marcellus or Utica shale formations, or any other formation
identified in a determination issued by the Executive Director pursuant
to Sec. 806.5, for exploration or production of natural gas involving
a withdrawal, diversion or consumptive use, regardless of the quantity.
* * * * *
0
4. In Sec. 806.22, revise paragraph (e)(1) introductory text,
(e)(1)(ii), (e)(6), (e)(7) and add a new paragraph (f) to read as
follows:
Sec. 806.22 Standards for consumptive uses of water.
* * * * *
(e) * * *
(1) Except with respect to projects involving natural gas well
development subject to the provision of paragraph (f) of this section,
any project whose sole source of water for consumptive use is a public
water supply withdrawal, may be approved by the Executive Director
under this paragraph (e) in accordance with the following, unless the
Executive Director determines that the project cannot be adequately
regulated under this approval by rule:
* * * * *
(ii) Within 10 days after submittal of an NOI under paragraph
(e)(1)(i) of this section, the project sponsor shall submit to the
Commission proof of publication in a newspaper of general circulation
in the location of the project, a notice of its intent to operate under
this approval by rule, which contains a sufficient description of the
project, its purposes and its location. This notice shall also contain
the address, electronic mail address and telephone number of the
Commission.
* * * * *
(6) The Executive Director will grant or deny approval to operate
under this approval by rule and will notify the project sponsor of such
determination, including the quantity of consumptive use approved.
(7) Approval by rule shall be effective upon written notification
from the Executive Director to the project sponsor, shall expire 15
years from the date of such notification, and shall be deemed to
rescind any previous consumptive use approvals.
(f) Approval by rule for consumptive use related to natural gas
well development.
(1) Any project involving the development of natural gas wells
subject to review and approval under Sec. Sec. 806.4, 806.5, or 806.6
of this part shall be subject to review and approval by the Executive
Director under this paragraph (f) regardless of the source or sources
of water being used consumptively.
(2) Notification of Intent: Prior to undertaking a project or
increasing a previously approved quantity of consumptive use, the
project sponsor shall submit a Notice of Intent (NOI) on forms
prescribed by the Commission, and the appropriate application fee,
along with any required attachments.
(3) Within 10 days after submittal of a NOI under paragraph (f)(2)
of this section, the project sponsor shall satisfy the notice
requirements set forth in Sec. 806.15 and send a copy of the NOI to
the appropriate agencies of the member state.
(4) The project sponsor shall comply with metering, daily use
monitoring and quarterly reporting as specified in Sec. 806.30, or as
otherwise required by the approval by rule. Daily use monitoring shall
include amounts delivered or withdrawn per source, per day, and amounts
used per gas well, per day, for well drilling, hydrofracture
stimulation, hydrostatic testing, and dust control. The foregoing shall
apply to all water and fluids, including additives, flowback and
brines, utilized by the project.
(5) The project sponsor shall comply with the mitigation
requirements set forth in Sec. 806.22(b).
(6) Any flowback fluids or produced brines utilized by the project
sponsor for hydrofracture stimulation undertaken at the project shall
be separately accounted for, but shall not be included in the daily
consumptive use amount calculated for the project, or be subject to the
mitigation requirements of Sec. 806.22(b).
(7) The project sponsor shall obtain all necessary permits or
approvals required for the project from other federal, state, or local
government agencies having jurisdiction over the project. The Executive
Director reserves the right to modify, suspend or revoke any approval
under this paragraph (f) if the project sponsor fails to obtain or
maintain such approvals.
(8) The project sponsor shall certify to the Commission that all
flowback and produced fluids, including brines, have been treated and
disposed of in accordance with applicable state and federal law.
(9) The Executive Director may grant or deny or condition an
approval to operate under this approval by rule and will notify the
project sponsor of such determination, including the sources and
quantity of consumptive use approved. The issuance of any such approval
shall not be construed to waive or exempt the project sponsor from
obtaining Commission approval for any water withdrawals or diversions
subject to review pursuant to Sec. 806.4(a).
(10) Approval by rule shall be effective upon written notification
from the Executive Director to the project sponsor, shall expire five
years from the date of such notification, and supersede any previous
consumptive use approvals to the extent applicable to the project.
(11) Subsequent to the issuance of an approval by rule pursuant to
paragraph (f)(9) of this section, authorization to utilize additional
sources of water for the project other than those identified in the
approval by rule may be obtained as follows:
(i) Water withdrawals or diversions requiring and receiving
approval by the Commission pursuant to Sec. 806.4(a), provided such
withdrawal source is approved for such use and is registered
[[Page 78621]]
with the Commission at least 10 days prior to use on a form and in a
manner as prescribed by the Commission.
(ii) Sources of water other than those subject to paragraph
(f)(11)(i) of this section, including, but not limited to, public water
supply, wastewater discharge or other reclaimed waters, provided such
sources are approved prior to use as a modification to the approval by
rule. Any request to modify an approval by rule to utilize such
source(s) shall be submitted on a form and in a manner as prescribed by
the Commission, and shall be subject to review pursuant to the
standards set forth in subpart C of this part.
Dated: December 11, 2008.
Thomas W. Beauduy,
Deputy Director.
[FR Doc. E8-30315 Filed 12-22-08; 8:45 am]
BILLING CODE 7040-01-P
