State of Kentucky Underground Injection Control (UIC) Class II Program; Primacy Approval, 95480-95484 [2016-31268]

Download as PDF 95480 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Rules and Regulations EPA APPROVED STATUTES IN THE LOUISIANA SIP—Continued State approval/ effective date State citation Title/subject Section 1114(A)(1–4) ........ Financial Disclosures .................................................. 04/01/1980 Section 1114(C) ................ Financial Disclosures .................................................. 04/01/1980 This rule is effective on January 27, 2017. For judicial purposes, this final rule is promulgated as of January 27, 2017. The incorporation by reference of certain publications listed in the rule is approved by the Director of the Federal Register as of January 27, 2017. DATES: [FR Doc. 2016–31332 Filed 12–27–16; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 147 The EPA has established a docket for this action under Docket ID No. EPA–HQ–OW–2015–0372, to the Federal eRulemaking Portal: http:// www.regulations.gov. All documents in the docket are listed on the http:// www.regulations.gov Web site. Although listed in the index, some information is not publicly available, e.g., CBI or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the Internet and will be publicly available only in hard copy form. Publicly available docket materials are available electronically through http://www.regulations.gov. ADDRESSES: [EPA–HQ–OW–2015–0372; FRL 9957–48– OW] State of Kentucky Underground Injection Control (UIC) Class II Program; Primacy Approval Environmental Protection Agency (EPA). ACTION: Final rule. AGENCY: The Environmental Protection Agency (EPA) is taking this action to approve the Commonwealth of Kentucky’s Underground Injection Control (UIC) Class II Program for primacy. EPA determined that the state’s program represents an effective program to prevent underground injection activities that endanger underground sources of drinking water (USDWs), as required under section 1425 of the Safe Drinking Water Act (SDWA). EPA’s approval allows the state to implement and enforce state regulations for UIC Class II injection wells located within the state. The Commonwealth’s authority excludes the regulation of injection well Classes I, III, IV, V and VI and all wells on Indian lands, as required by rule under the SDWA. SUMMARY: FOR FURTHER INFORMATION CONTACT: Holly S. Green, Drinking Water Protection Division, Office of Ground Water and Drinking Water (4606M), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number: (202) 566–0651; fax number: (202) 564–3754; email address: green.holly@epa.gov; or Nancy H. Marsh, Safe Drinking Water Branch, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303; telephone number (404) 562–9450; fax number: EPA approval date Comments 12/28/2016, [Insert Federal Register citation]. 12/28/2016, [Insert Federal Register citation]. (404) 562–9439; email address: marsh.nancy@epa.gov. SUPPLEMENTARY INFORMATION: I. Why is EPA issuing this final rule? On October 28, 2016, EPA published Kentucky’s Class II primacy approval via a direct final rule with a parallel proposal. The EPA stated in the direct final rule that if we received adverse comment, the direct final rule would not take effect and we would publish a timely withdrawal in the Federal Register. During the 30-day comment period, which ended on November 28, 2016, the EPA received three adverse comment letters questioning Kentucky’s capacity to run the Class II program, along with some technical concerns regarding the state’s program. As a result, EPA withdrew the direct final rule in the Federal Register in a separate notice on December 28, 2016, Insert Federal Register Citation. As stated in the direct final rule and the parallel proposed rule, EPA indicated that it will address the public comments in any subsequent final action, which will be based on the parallel proposed rule, and will not institute a second comment period on this action. EPA has responded in detail to the public comments received and has placed the response to comment document in the docket for this action. A summary of the comments received and EPA response can be found in section V of this action. II. Does this action apply to me? REGULATED ENTITIES North American industry classification system Examples of potentially regulated entities Industry ............................................ sradovich on DSK3GMQ082PROD with RULES Category Private owners and operators of Class II injection wells located within the state (Enhance Recovery, Produce Fluid Disposal and Hydrocarbon Storage). This table is intended to be a guide for readers regarding entities likely to be regulated by this action. This table lists the types of entities that EPA is now aware could potentially be regulated by this action. If you have questions VerDate Sep<11>2014 17:25 Dec 27, 2016 Jkt 241001 regarding the applicability of this action to a particular entity, consult the persons listed in the preceding FOR FURTHER INFORMATION CONTACT section. PO 00000 Frm 00084 Fmt 4700 Sfmt 4700 211111 & 213111. III. Legal Authorities The state applied to EPA for primacy (primary implementation and enforcement authority) under section 1425 of the SDWA, 42 U.S.C. Sections E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Rules and Regulations 300h–4, for all Class II injection wells within the state except those on Indian lands. EPA approves the Commonwealth of Kentucky’s UIC Program primacy application for these Class II injection wells by rule, as required under the SDWA, finding that it represents an ‘‘effective’’ program to prevent underground injection activities that endanger USDWs. Accordingly, EPA codifies the state’s program in the Code of Federal Regulations (CFR) at 40 CFR part 147, under the authority of the SDWA, sections 1425, 42 U.S.C. 300h– 4. EPA’s approval is based on a legal and technical review of the state’s primacy application as directed at 40 CFR part 145 and the requirements for state permitting and compliance evaluation programs, enforcement authority and information sharing to determine that the state’s program is effective. EPA oversees the state’s administration of the UIC program; part of the agency’s oversight responsibility requires quarterly reports of non-compliance and annual UIC performance reports pursuant to 40 CFR 144.8. The Memorandum of Agreement between EPA and the Commonwealth of Kentucky, signed by the Regional Administrator on October 20, 2015, provides EPA with the opportunity to review and comment on all permits. Under section 1422 of the SDWA, EPA continues to administer the UIC program for Class I, III, IV, V and VI injection wells in the state and all wells on Indian lands (if any such lands exist in the state in the future). IV. Kentucky’s Application A. Public Participation Activities Conducted by the Commonwealth of Kentucky As part of the primacy application requirements, the state held a public hearing on the state’s intent to apply for primacy. The hearing was held on September 23, 2014, in the city of Frankfort, Kentucky. Both oral and written comments received for the hearing were generally supportive of the state pursuing primacy for the UIC Class II injection well program. sradovich on DSK3GMQ082PROD with RULES B. Public Participation Activities Conducted by EPA On November 10, 2015, EPA published a notice of the state’s application in the Federal Register (80 FR 69629). This notice provided a comment period and that a public hearing would be held if requested. EPA received one comment during the comment period, and no requests for a public hearing. An anonymous VerDate Sep<11>2014 16:15 Dec 27, 2016 Jkt 241001 commenter suggested the state agency give permission to construct these Class II wells so that energy dependency and job creation remain domestic and that extraction of oil and gas resources be done in an environmentally sound manner. EPA determined that the issue was outside the scope of the UIC program and not relevant as to whether the state’s regulations are effective to manage the UIC Class II injection well program in accordance with section 1425 of the Safe Drinking Water Act. C. Incorporation by Reference This final rule amends 40 CFR part 147 and incorporates by reference EPAapproved state statutes and regulations. The provisions of the Commonwealth of Kentucky Code that contain standards, requirements and procedures applicable to owners or operators of UIC Class II wells are incorporated by reference into 40 CFR part 147. Any provisions incorporated by reference, as well as all permit conditions or permit denials issued pursuant to such provisions, will be enforceable by EPA pursuant to the SDWA, section 1423 and 40 CFR 147.1(e). In order to better serve the public, the agency is reformatting the codification of the EPA-approved state statutes and regulations. Instead of codifying the Commonwealth of Kentucky’s Statutes and Regulations as separate paragraphs in the text of 40 CFR part 147, EPA is now codifying a binder that contains the ‘‘EPA-Approved Commonwealth of Kentucky Safe Drinking Water Act § 1425 Underground Injection Control (UIC) Program Statutes and Regulations for Class II wells.’’ This binder will be incorporated by reference into 40 CFR part 147 and available at www.regulations.gov in the docket for this rule. The agency is also codifying a table listing the ‘‘EPA-Approved Commonwealth of Kentucky Safe Drinking Water Act § 1425 Underground Injection Control (UIC) Program Statutes and Regulations for Class II wells’’ in 40 CFR part 147. V. Summary of Response to Comments A. Resources Commenters believe that Kentucky does not have adequate resources to implement the Class II UIC Program. Kentucky is planning on filling two new positions once primacy is granted. Kentucky has 16 inspectors as compared to EPA’s 2 full-time inspectors. EPA evaluated proposed resources and determined that they are adequate for an effective program to prevent endangerment to USDWs. PO 00000 Frm 00085 Fmt 4700 Sfmt 4700 95481 B. Administrative Procedures for Processing Permits One commenter does not believe that Kentucky has the same regulatory requirements as the EPA for providing public participation in the permitting process. The commenter has concerns that the public was not provided access to the draft permit or statement of basis and that Kentucky was not required to provide a written response to comments received during the public comment period. For primacy approval under Section 1425, the state’s regulations do not have to be as stringent as the federal regulations; therefore, Kentucky’s public notice process does not need to mirror EPA’s public notice process. Kentucky’s public notice, which is included in the Program Description, provides the opportunity to request a copy of the draft permit and statement of basis. Commenters and those that attend a public hearing are notified if their comments do not result in a change to the final permit. An additional public notice is issued if comments do result in a change to the final permit. The public notice also provides an opportunity to petition the state for review of the permit and any conditions therein. Accordingly, the EPA has determined that Kentucky’s administrative permitting procedures are effective for protecting USDWs. C. Area of Review One commenter is concerned that Kentucky does not have criteria for the applicant to use in determining whether the minimum 1⁄4 mile fixed radius area of review around the project or an evaluation of a zone of endangering influence (ZEI) is required to ensure that USDWs are not endangered. The commenter is also concerned that it is the applicant, not the agency, that is required to make the determination on whether a ZEI is appropriate. With respect to the commenter’s first concern, the state’s regulations are not inconsistent with the federal regulations, which similarly lack criteria for determining whether to use fixed radius or ZEI for the area of review, providing only that the permit writer may solicit input from well owners/ operators as to which method is most appropriate. 40 CFR 146.6. With respect to the commenter’s concern about the applicant, not the agency, selecting the method, this is not entirely consistent with EPA’s Class II regulations, which require this determination to be made by the agency. However, a state applying for primacy under SDWA section 1425 is required to demonstrate only that its regulations are ‘‘effective,’’ E:\FR\FM\28DER1.SGM 28DER1 95482 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Rules and Regulations not that they are equivalent to the federal regulations. EPA guidance on state submissions under SDWA section 1425 provides that an ‘‘effective’’ state program would be expected to incorporate an area of review of not less than 1⁄4 mile, or a ZEI in lieu of this fixed radius. Kentucky has included both the fixed radius and ZEI methods as options, which goes beyond the recommendations provided in the guidance, and is consistent with the two options provided in EPA’s regulations. Moreover, under the state’s proposed program, the applicant has the burden of proof to provide information to the state to ensure that the injection operation does not endanger a USDW. Kentucky has stated in its response to comments that it has statutory authority to require owners/operators of Class II wells to ensure that their operations do not endanger any USDWs, which could include the authority to require the applicant to calculate the area of review based on the ZEI method, if necessary to prevent endangerment to USDWs. D. Hydraulic Fracturing Commenters are concerned with how the state would regulate hydraulic fracturing activities. Under the SDWA, only wells that use diesel fuels for hydraulic fracturing are subject to regulation under the federal underground injection control program. Therefore, this Class II UIC primacy approval would give the state primacy only over this small subset of hydraulic fracturing wells. To the extent that there are any such wells, they would be subject to Kentucky’s Class II program regulations, which EPA has found to be effective to prevent endangerment to USDWs. In addition, Kentucky has indicated in its application that it will consider, as appropriate, EPA’s permitting guidance on diesel fuels hydraulic fracturing in regulating these wells. The state has regulatory authority over all other types of hydraulic fracturing. sradovich on DSK3GMQ082PROD with RULES VI. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review This action is exempt from review by the Office of Management and Budget (OMB) because OMB has determined that the approval of state UIC primacy for Class II rules are not significant regulatory actions. VerDate Sep<11>2014 16:15 Dec 27, 2016 Jkt 241001 B. Paperwork Reduction Act This action does not impose any new information collection burden. EPA determined that there is no need for an Information Collection Request under the Paperwork Reduction Act because this final rule does not impose any new federal reporting or recordkeeping requirements. Reporting or recordkeeping requirements are based on the Commonwealth of Kentucky’s UIC Regulations, and the state is not subject to the Paperwork Reduction Act. However, OMB has previously approved the information collection requirements contained in the existing UIC regulations at 40 CFR parts 144–148 for SDWA section 1422 states and also for section 1425 states under the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. and assigned OMB control number 2040–0042. The OMB control numbers for EPA’s regulations in 40 CFR are listed in 40 CFR part 9. C. Regulatory Flexibility Act (RFA) I certify that this action will not have a significant economic impact on a substantial number of small entities under the RFA. In making this determination, the impact of concern is any significant adverse economic impact on small entities. An agency may certify that a rule will not have a significant economic impact on a substantial number of small entities if the rule relieves regulatory burden, has no net burden or otherwise has a positive economic effect on the small entities subject to the rule. This action does not impose any new requirements on any regulated entities. It simply codifies the Commonwealth of Kentucky’s UIC Program regulations, which meets the effectiveness standard under SDWA section 1425 for regulating a Class II well program. I have therefore concluded that this action will have no net regulatory burden for any directly regulated small entities. D. Unfunded Mandates Reform Act (UMRA) This action does not contain an unfunded mandate as described in UMRA, 2 U.S.C. 1521–1538. The action imposes no enforceable duty on any state, local or tribal governments or the private sector. E. Executive Order 13132—Federalism This action does not have federalism implications. It will not have substantial direct effects on the states, on the relationship between the national government and the states, or on the distribution of power and responsibilities among the various levels of government. PO 00000 Frm 00086 Fmt 4700 Sfmt 4700 F. Executive Order 13175—Consultation and Coordination With Indian Tribal Governments This action does not have tribal implications as specified in Executive Order 13175 as explained in section V.C. Thus, Executive Order 13175 does not apply to this action. G. Executive Order 13045: Protection of Children From Environmental Health & Safety Risks EPA interprets Executive Order 13045 as applying only to those regulatory actions that concern environmental health or safety risks that EPA has reason to believe may disproportionately affect children, per the definition of ‘‘covered regulatory action’’ in section 2–202 of the Executive Order. This action is not subject to Executive Order 13045 because it approves a state action as explained in section V.C. H. Executive Order 13211: Actions Concerning Regulations That Significantly Affect Energy Supply, Distribution, or Use This action is not subject to Executive Order 13211 because it is not a significant regulatory action under Executive Order 12866. I. National Technology Transfer and Advancement Act 10(NTTAA) This rulemaking does not involve technical standards. J. Executive Order 12898: Federal Actions To Address Environmental Justice in Minority Populations and Low-Income Populations EPA believes the human health or environmental risk addressed by this action will not have potential disproportionately high and adverse human health or environmental effects on minority, low-income or indigenous populations because the rule does not change the level of protection provided to human health or the environment. K. Congressional Review Act (CRA) This action is subject to the CRA, and EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. This action is not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). List of Subjects in 40 CFR Part 147 Environmental protection, Appeals, Incorporation by reference, Penalties, Protection for USDWs, Requirements for plugging and abandonment, Underground injection control. E:\FR\FM\28DER1.SGM 28DER1 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Rules and Regulations Dated: December 20, 2016. Gina McCarthy, Administrator. For the reasons set out in the preamble, title 40 of the Code of Federal Regulations is amended as follows: PART 147—STATE, TRIBAL, AND EPAADMINISTERED UNDERGROUND INJECTION CONTROL PROGRAMS 1. The authority citation for Part 147 is revised to read as follows: ■ Authority: 42 U.S.C. 300h–4. Subpart S—Kentucky 2. Section 147.900 is added to read as follows: ■ § 147.900 State-administered program— Class II wells. The UIC program for Class II injection wells in the Commonwealth of Kentucky, except for those on Indian lands, is the program administered by the Kentucky Department of Natural Resources, Division of Oil and Gas approved by the EPA pursuant to section 1425 of the SDWA. Notification of this approval was published in the Federal Register on December 28, 2016; the effective date of this program is January 27, 2017. Table 1 to paragraph (a) of this section is the table of contents of the Kentucky state statutes and regulations incorporated as follows by reference. This program consists of the following elements, as submitted to the EPA in the state’s program application. (a) Incorporation by reference. The requirements set forth in the Kentucky State statutes and regulations cited in the binder entitled ‘‘EPA-Approved Commonwealth of Kentucky Safe Drinking Water Act § 1425 Underground Injection Control (UIC) Program Statutes and Regulations for Class II wells,’’ 95483 dated August 2016 is hereby incorporated by reference and made a part of the applicable UIC program under the SDWA for the Commonwealth of Kentucky. This incorporation by reference was approved by the Director of the Federal Register in accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of the Kentucky regulations may be obtained or inspected at the Kentucky Department of Natural Resources, Division of Oil and Gas, 3th Floor, 300 Sower Blvd., Frankfort, Kentucky 40601, (315) 532–0191; at the U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303–8960, (404) 562– 8190; or at the National Archives and Records Administration (NARA). For information on availability of this material at NARA, call (202) 741–6030, or go to: http://www.archives.gov/ federal-register/cfr/ibr-locations.html. TABLE 1 TO PARAGRAPH (a)—EPA-APPROVED KENTUCKY SDWA § 1425 UNDERGROUND INJECTION CONTROL PROGRAM STATUTES AND REGULATIONS FOR CLASS II WELLS State citation Kentucky Revised Statutes Chapter 13B. Kentucky Revised Statutes 353.180. sradovich on DSK3GMQ082PROD with RULES Kentucky Revised 353.510. Kentucky Revised 353.520. Kentucky Revised 353.550. Kentucky Revised 353.570. Kentucky Revised 353.590. Statutes Statutes Statutes Statutes Statutes Kentucky Revised Statutes 353.591. Kentucky Revised Statutes 353.592. Kentucky Revised Statutes 353.593. Kentucky Revised Statutes 353.992. 805 Kentucky Administrative Regulations 1:020. 805 Kentucky Administrative Regulations 1:030. 805 Kentucky Administrative Regulations 1:060. 805 Administrative Regulations 1:070. 805 Kentucky Administrative Regulations 1:110. Title/subject State effective date Kentucky Administrative Procedures Act KRS 13B.005 to 13B.170. Requirements for plugging abandoned well—Bids— Remedy for possessor of adjacent land or for department. Definition of KRS 353.500 to 353.720 .......................... June 15, 1994 ................... Territorial application of KRS 353.500 to 353.720— Waste of oil and gas prohibited. Specific authority over oil and gas operators ............... June 24, 2015 ................... July 15, 2010 ..................... June 24, 2003 ................... July 15, 1996 ..................... July 15, 1998 ..................... EPA approval date 1 [Insert Federal Register citation]. [Insert Federal Register citation]. [Insert Federal citation]. [Insert Federal citation]. [Insert Federal citation]. [Insert Federal citation]. [Insert Federal citation]. Register Register Register Permit Required—May authorize operation prior to issuance of permit. Application for permit—Fees-Plat-Bond to insure plugging—Schedule—Blanket bonds-Corporate guarantee—Use of forfeited funds—Oil and gas well. plugging fund—Wells not included in ‘‘water supply well.’’. Purpose and application of KRS 353.592 and 353.593 July 15, 1986 ..................... [Insert FR citation]. Powers of the department ............................................. June 24, 2015 ................... [Insert FR citation]. Appeals .......................................................................... July 15, 1996 ..................... [Insert FR citation]. Penalties ........................................................................ July 15, 1986 ..................... [Insert FR citation]. Providing Protection for USDWs ................................... August 9, 2007 .................. [Insert FR citation]. Well location and as-drilled location plat, preparation, form and contents. Plugging wells; non-coal-bearing strata ........................ October 23, 2009 .............. [Insert FR citation]. June 11, 1975 ................... [Insert FR citation]. Plugging wells; coal bearing strata ............................... October 23, 1975 .............. [Insert FR citation]. Underground Injection Control ...................................... April 4, 2008 ...................... [Insert FR citation]. July 15, 2010 ..................... Register Register 1 In order to determine the EPA effective date for a specific provision listed in this table, consult the Federal Register document cited in this column for the particular provision. (b) Memorandum of Agreement (MOA). The MOA between EPA Region VerDate Sep<11>2014 16:15 Dec 27, 2016 Jkt 241001 4 and the Commonwealth of Kentucky Department of Natural Resources signed PO 00000 Frm 00087 Fmt 4700 Sfmt 4700 by EPA Regional Administrator on October 20, 2015. E:\FR\FM\28DER1.SGM 28DER1 95484 Federal Register / Vol. 81, No. 249 / Wednesday, December 28, 2016 / Rules and Regulations (c) Statements of Legal Authority. ‘‘Underground Injection Control Program, Attorney General’s Statement,’’ signed by General Counsel of Kentucky Energy and Environmental Cabinet on June 7, 2010. (d) Program Description. The Program Description submitted as part of Kentucky’s application, and any other materials submitted as part of this application or as a supplement thereto. ■ 3. Section 147.901 is amended by revising the section heading and the first sentence of paragraph (a) to read as follows: § 147.901 EPA-administered program— Class I, III, IV, V, and VI wells and Indian lands. (a) Contents. The UIC program for Class I, III, IV, V and VI wells and all wells on Indian lands in the Commonwealth of Kentucky is administered by the EPA. * * * * * * * * ■ 4. Section 147.902 is added to read as follows: sradovich on DSK3GMQ082PROD with RULES § 147.902 Aquifer exemptions. (a) This section identifies any aquifers or their portions exempted in accordance with §§ 144.7(b) and 146.4 of this chapter. These aquifers are not being proposed for exemption under the Commonwealth of Kentucky’s primacy approval. Rather, the exempted aquifers listed below were previously approved while EPA had primary enforcement authority for the Class II UIC program in the Commonwealth of Kentucky and are included here for reference. Additional information pertinent to these exempted aquifers or their portions resides in EPA Region 4. (1) The following eight aquifers (underground sources of drinking water) in the Commonwealth of Kentucky have been exempted in accordance with the provisions of §§ 144.7(b) and 146.4 of this chapter for Class II injection activities only: A portion of the Tar Springs sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.7261 and longitude ¥86.6914. The formation has a true vertical depth from surface of 280 feet. (2) A portion of the Tar Springs sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.7294 and longitude ¥867212. The formation has a true vertical depth from surface of 249 feet. (3) A portion of the Tar Springs sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.7055 and longitude ¥86.7177. The formation has VerDate Sep<11>2014 16:15 Dec 27, 2016 Jkt 241001 a true vertical depth from surface of 210 feet. (4) A portion of the Pennsylvanian Age sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.5402 and longitude ¥87.2551. The formation has a true vertical depth from surface of 1,050 feet. (5) A portion of the Tar Springs sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.7301 and longitude ¥87.6922. The formation has a true vertical depth from surface of 240 feet. (6) A portion of the Caseyville sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.5776 and longitude ¥87.1321. The formation had a true vertical depth from surface of 350 feet. (7) A portion of the Caseyville sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.5778 and longitude ¥87.1379. The formation has a true vertical depth from surface of 1,080 feet. (8) A portion of the Caseyville sandstone formation that has a quarter mile radius areal extent (125.6 acres) that is located at latitude 37.5652 and longitude ¥87.1222. The formation has a true vertical depth from surface of 1,060 feet. (b) [Reserved] ■ 5. Section 147.903 is amended by revising the section heading to read as follows:. § 147.903 Existing Class I and III wells authorized by rule. * * § 147.904 * * * [Removed and Reserved] 6. Section 147.904 is removed and reserved. ■ [FR Doc. 2016–31268 Filed 12–27–16; 8:45 am] BILLING CODE 6560–50–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 147 Because the U.S. Environmental Protection Agency (EPA) received adverse comment, we are withdrawing the direct final rule approving the Commonwealth of Kentucky’s Underground Injection Control (UIC) Class II Program for primacy, published on October 28, 2016. SUMMARY: Effective December 28, 2016, EPA withdraws the direct final rule published at 81 FR 74927, on October 28, 2016. DATES: FOR FURTHER INFORMATION CONTACT: Holly S. Green, Drinking Water Protection Division, Office of Ground Water and Drinking Water (4606M), U.S. Environmental Protection Agency, 1200 Pennsylvania Ave. NW., Washington, DC 20460; telephone number: (202) 566–0651; fax number: (202) 564–3754; email address: green.holly@epa.gov; or Nancy H. Marsh, Safe Drinking Water Branch, U.S. Environmental Protection Agency, Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303; telephone number (404) 562–9450; fax number: (404) 562 9439; email address: marsh.nancy@epa.gov. Because EPA received adverse comment, we are withdrawing the direct final rule approving the Commonwealth of Kentucky’s Underground Injection Control Class II (UIC). Program for primacy, published on October 28, 2016. We stated in that direct final rule that if we received adverse comment by November 28, 2016, the direct final rule would not take effect and we would publish a timely withdrawal in the Federal Register. We subsequently received adverse comment on that direct final rule. We will address those comments in any subsequent final action, which will be based on the parallel proposed rule also published on October 28, 2016 (81 FR 75006). As stated in the direct final rule and the parallel proposed rule, we will not institute a second comment period on this action. SUPPLEMENTARY INFORMATION: [EPA–HQ–OW–2015–0372; FRL–9957–47– OW] Dated: December 20, 2016. Gina McCarthy, Administrator. State of Kentucky Underground Injection Control (UIC) Class II Program; Withdrawal of Primacy Approval Accordingly, the direct final rule published on October 28, 2016, (81 FR 74927) is withdrawn effective December 28, 2016. Environmental Protection Agency (EPA). ACTION: Withdrawal of direct final rule. [FR Doc. 2016–31267 Filed 12–27–16; 8:45 am] AGENCY: PO 00000 Frm 00088 Fmt 4700 Sfmt 9990 BILLING CODE 6560–50–P E:\FR\FM\28DER1.SGM 28DER1

Agencies

[Federal Register Volume 81, Number 249 (Wednesday, December 28, 2016)]
[Rules and Regulations]
[Pages 95480-95484]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-31268]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 147

[EPA-HQ-OW-2015-0372; FRL 9957-48-OW]


State of Kentucky Underground Injection Control (UIC) Class II 
Program; Primacy Approval

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is taking this 
action to approve the Commonwealth of Kentucky's Underground Injection 
Control (UIC) Class II Program for primacy. EPA determined that the 
state's program represents an effective program to prevent underground 
injection activities that endanger underground sources of drinking 
water (USDWs), as required under section 1425 of the Safe Drinking 
Water Act (SDWA). EPA's approval allows the state to implement and 
enforce state regulations for UIC Class II injection wells located 
within the state. The Commonwealth's authority excludes the regulation 
of injection well Classes I, III, IV, V and VI and all wells on Indian 
lands, as required by rule under the SDWA.

DATES: This rule is effective on January 27, 2017. For judicial 
purposes, this final rule is promulgated as of January 27, 2017. The 
incorporation by reference of certain publications listed in the rule 
is approved by the Director of the Federal Register as of January 27, 
2017.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OW-2015-0372, to the Federal eRulemaking Portal: 
http://www.regulations.gov. All documents in the docket are listed on 
the http://www.regulations.gov Web site. Although listed in the index, 
some information is not publicly available, e.g., CBI or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, is not placed on the Internet 
and will be publicly available only in hard copy form. Publicly 
available docket materials are available electronically through http://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Holly S. Green, Drinking Water 
Protection Division, Office of Ground Water and Drinking Water (4606M), 
U.S. Environmental Protection Agency, 1200 Pennsylvania Ave. NW., 
Washington, DC 20460; telephone number: (202) 566-0651; fax number: 
(202) 564-3754; email address: green.holly@epa.gov; or Nancy H. Marsh, 
Safe Drinking Water Branch, U.S. Environmental Protection Agency, 
Region 4, 61 Forsyth Street SW., Atlanta, Georgia 30303; telephone 
number (404) 562-9450; fax number: (404) 562-9439; email address: 
marsh.nancy@epa.gov.

SUPPLEMENTARY INFORMATION:

I. Why is EPA issuing this final rule?

    On October 28, 2016, EPA published Kentucky's Class II primacy 
approval via a direct final rule with a parallel proposal. The EPA 
stated in the direct final rule that if we received adverse comment, 
the direct final rule would not take effect and we would publish a 
timely withdrawal in the Federal Register. During the 30-day comment 
period, which ended on November 28, 2016, the EPA received three 
adverse comment letters questioning Kentucky's capacity to run the 
Class II program, along with some technical concerns regarding the 
state's program. As a result, EPA withdrew the direct final rule in the 
Federal Register in a separate notice on December 28, 2016, Insert 
Federal Register Citation. As stated in the direct final rule and the 
parallel proposed rule, EPA indicated that it will address the public 
comments in any subsequent final action, which will be based on the 
parallel proposed rule, and will not institute a second comment period 
on this action.
    EPA has responded in detail to the public comments received and has 
placed the response to comment document in the docket for this action. 
A summary of the comments received and EPA response can be found in 
section V of this action.

II. Does this action apply to me?

                           Regulated Entities
------------------------------------------------------------------------
                                                         North American
                                      Examples of           industry
           Category              potentially regulated   classification
                                       entities              system
------------------------------------------------------------------------
Industry......................  Private owners and      211111 & 213111.
                                 operators of Class II
                                 injection wells
                                 located within the
                                 state (Enhance
                                 Recovery, Produce
                                 Fluid Disposal and
                                 Hydrocarbon Storage).
------------------------------------------------------------------------

    This table is intended to be a guide for readers regarding entities 
likely to be regulated by this action. This table lists the types of 
entities that EPA is now aware could potentially be regulated by this 
action. If you have questions regarding the applicability of this 
action to a particular entity, consult the persons listed in the 
preceding FOR FURTHER INFORMATION CONTACT section.

III. Legal Authorities

    The state applied to EPA for primacy (primary implementation and 
enforcement authority) under section 1425 of the SDWA, 42 U.S.C. 
Sections

[[Page 95481]]

300h-4, for all Class II injection wells within the state except those 
on Indian lands. EPA approves the Commonwealth of Kentucky's UIC 
Program primacy application for these Class II injection wells by rule, 
as required under the SDWA, finding that it represents an ``effective'' 
program to prevent underground injection activities that endanger 
USDWs. Accordingly, EPA codifies the state's program in the Code of 
Federal Regulations (CFR) at 40 CFR part 147, under the authority of 
the SDWA, sections 1425, 42 U.S.C. 300h-4.
    EPA's approval is based on a legal and technical review of the 
state's primacy application as directed at 40 CFR part 145 and the 
requirements for state permitting and compliance evaluation programs, 
enforcement authority and information sharing to determine that the 
state's program is effective. EPA oversees the state's administration 
of the UIC program; part of the agency's oversight responsibility 
requires quarterly reports of non-compliance and annual UIC performance 
reports pursuant to 40 CFR 144.8. The Memorandum of Agreement between 
EPA and the Commonwealth of Kentucky, signed by the Regional 
Administrator on October 20, 2015, provides EPA with the opportunity to 
review and comment on all permits. Under section 1422 of the SDWA, EPA 
continues to administer the UIC program for Class I, III, IV, V and VI 
injection wells in the state and all wells on Indian lands (if any such 
lands exist in the state in the future).

IV. Kentucky's Application

A. Public Participation Activities Conducted by the Commonwealth of 
Kentucky

    As part of the primacy application requirements, the state held a 
public hearing on the state's intent to apply for primacy. The hearing 
was held on September 23, 2014, in the city of Frankfort, Kentucky. 
Both oral and written comments received for the hearing were generally 
supportive of the state pursuing primacy for the UIC Class II injection 
well program.

B. Public Participation Activities Conducted by EPA

    On November 10, 2015, EPA published a notice of the state's 
application in the Federal Register (80 FR 69629). This notice provided 
a comment period and that a public hearing would be held if requested. 
EPA received one comment during the comment period, and no requests for 
a public hearing. An anonymous commenter suggested the state agency 
give permission to construct these Class II wells so that energy 
dependency and job creation remain domestic and that extraction of oil 
and gas resources be done in an environmentally sound manner. EPA 
determined that the issue was outside the scope of the UIC program and 
not relevant as to whether the state's regulations are effective to 
manage the UIC Class II injection well program in accordance with 
section 1425 of the Safe Drinking Water Act.

C. Incorporation by Reference

    This final rule amends 40 CFR part 147 and incorporates by 
reference EPA-approved state statutes and regulations. The provisions 
of the Commonwealth of Kentucky Code that contain standards, 
requirements and procedures applicable to owners or operators of UIC 
Class II wells are incorporated by reference into 40 CFR part 147. Any 
provisions incorporated by reference, as well as all permit conditions 
or permit denials issued pursuant to such provisions, will be 
enforceable by EPA pursuant to the SDWA, section 1423 and 40 CFR 
147.1(e).
    In order to better serve the public, the agency is reformatting the 
codification of the EPA-approved state statutes and regulations. 
Instead of codifying the Commonwealth of Kentucky's Statutes and 
Regulations as separate paragraphs in the text of 40 CFR part 147, EPA 
is now codifying a binder that contains the ``EPA-Approved Commonwealth 
of Kentucky Safe Drinking Water Act Sec.  1425 Underground Injection 
Control (UIC) Program Statutes and Regulations for Class II wells.'' 
This binder will be incorporated by reference into 40 CFR part 147 and 
available at www.regulations.gov in the docket for this rule. The 
agency is also codifying a table listing the ``EPA-Approved 
Commonwealth of Kentucky Safe Drinking Water Act Sec.  1425 Underground 
Injection Control (UIC) Program Statutes and Regulations for Class II 
wells'' in 40 CFR part 147.

V. Summary of Response to Comments

A. Resources

    Commenters believe that Kentucky does not have adequate resources 
to implement the Class II UIC Program. Kentucky is planning on filling 
two new positions once primacy is granted. Kentucky has 16 inspectors 
as compared to EPA's 2 full-time inspectors. EPA evaluated proposed 
resources and determined that they are adequate for an effective 
program to prevent endangerment to USDWs.

B. Administrative Procedures for Processing Permits

    One commenter does not believe that Kentucky has the same 
regulatory requirements as the EPA for providing public participation 
in the permitting process. The commenter has concerns that the public 
was not provided access to the draft permit or statement of basis and 
that Kentucky was not required to provide a written response to 
comments received during the public comment period. For primacy 
approval under Section 1425, the state's regulations do not have to be 
as stringent as the federal regulations; therefore, Kentucky's public 
notice process does not need to mirror EPA's public notice process. 
Kentucky's public notice, which is included in the Program Description, 
provides the opportunity to request a copy of the draft permit and 
statement of basis. Commenters and those that attend a public hearing 
are notified if their comments do not result in a change to the final 
permit. An additional public notice is issued if comments do result in 
a change to the final permit. The public notice also provides an 
opportunity to petition the state for review of the permit and any 
conditions therein. Accordingly, the EPA has determined that Kentucky's 
administrative permitting procedures are effective for protecting 
USDWs.

C. Area of Review

    One commenter is concerned that Kentucky does not have criteria for 
the applicant to use in determining whether the minimum \1/4\ mile 
fixed radius area of review around the project or an evaluation of a 
zone of endangering influence (ZEI) is required to ensure that USDWs 
are not endangered. The commenter is also concerned that it is the 
applicant, not the agency, that is required to make the determination 
on whether a ZEI is appropriate. With respect to the commenter's first 
concern, the state's regulations are not inconsistent with the federal 
regulations, which similarly lack criteria for determining whether to 
use fixed radius or ZEI for the area of review, providing only that the 
permit writer may solicit input from well owners/operators as to which 
method is most appropriate. 40 CFR 146.6. With respect to the 
commenter's concern about the applicant, not the agency, selecting the 
method, this is not entirely consistent with EPA's Class II 
regulations, which require this determination to be made by the agency. 
However, a state applying for primacy under SDWA section 1425 is 
required to demonstrate only that its regulations are ``effective,''

[[Page 95482]]

not that they are equivalent to the federal regulations. EPA guidance 
on state submissions under SDWA section 1425 provides that an 
``effective'' state program would be expected to incorporate an area of 
review of not less than \1/4\ mile, or a ZEI in lieu of this fixed 
radius. Kentucky has included both the fixed radius and ZEI methods as 
options, which goes beyond the recommendations provided in the 
guidance, and is consistent with the two options provided in EPA's 
regulations. Moreover, under the state's proposed program, the 
applicant has the burden of proof to provide information to the state 
to ensure that the injection operation does not endanger a USDW. 
Kentucky has stated in its response to comments that it has statutory 
authority to require owners/operators of Class II wells to ensure that 
their operations do not endanger any USDWs, which could include the 
authority to require the applicant to calculate the area of review 
based on the ZEI method, if necessary to prevent endangerment to USDWs.

D. Hydraulic Fracturing

    Commenters are concerned with how the state would regulate 
hydraulic fracturing activities. Under the SDWA, only wells that use 
diesel fuels for hydraulic fracturing are subject to regulation under 
the federal underground injection control program. Therefore, this 
Class II UIC primacy approval would give the state primacy only over 
this small subset of hydraulic fracturing wells. To the extent that 
there are any such wells, they would be subject to Kentucky's Class II 
program regulations, which EPA has found to be effective to prevent 
endangerment to USDWs. In addition, Kentucky has indicated in its 
application that it will consider, as appropriate, EPA's permitting 
guidance on diesel fuels hydraulic fracturing in regulating these 
wells. The state has regulatory authority over all other types of 
hydraulic fracturing.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is exempt from review by the Office of Management and 
Budget (OMB) because OMB has determined that the approval of state UIC 
primacy for Class II rules are not significant regulatory actions.

B. Paperwork Reduction Act

    This action does not impose any new information collection burden. 
EPA determined that there is no need for an Information Collection 
Request under the Paperwork Reduction Act because this final rule does 
not impose any new federal reporting or recordkeeping requirements. 
Reporting or recordkeeping requirements are based on the Commonwealth 
of Kentucky's UIC Regulations, and the state is not subject to the 
Paperwork Reduction Act. However, OMB has previously approved the 
information collection requirements contained in the existing UIC 
regulations at 40 CFR parts 144-148 for SDWA section 1422 states and 
also for section 1425 states under the provisions of the Paperwork 
Reduction Act, 44 U.S.C. 3501 et seq. and assigned OMB control number 
2040-0042. The OMB control numbers for EPA's regulations in 40 CFR are 
listed in 40 CFR part 9.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. In 
making this determination, the impact of concern is any significant 
adverse economic impact on small entities. An agency may certify that a 
rule will not have a significant economic impact on a substantial 
number of small entities if the rule relieves regulatory burden, has no 
net burden or otherwise has a positive economic effect on the small 
entities subject to the rule. This action does not impose any new 
requirements on any regulated entities. It simply codifies the 
Commonwealth of Kentucky's UIC Program regulations, which meets the 
effectiveness standard under SDWA section 1425 for regulating a Class 
II well program. I have therefore concluded that this action will have 
no net regulatory burden for any directly regulated small entities.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain an unfunded mandate as described in 
UMRA, 2 U.S.C. 1521-1538. The action imposes no enforceable duty on any 
state, local or tribal governments or the private sector.

E. Executive Order 13132--Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175--Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive Order 13175 as explained in section V.C. Thus, Executive 
Order 13175 does not apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health & Safety Risks

    EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that EPA has reason to believe may disproportionately affect children, 
per the definition of ``covered regulatory action'' in section 2-202 of 
the Executive Order. This action is not subject to Executive Order 
13045 because it approves a state action as explained in section V.C.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211 because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act 10(NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    EPA believes the human health or environmental risk addressed by 
this action will not have potential disproportionately high and adverse 
human health or environmental effects on minority, low-income or 
indigenous populations because the rule does not change the level of 
protection provided to human health or the environment.

K. Congressional Review Act (CRA)

    This action is subject to the CRA, and EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

List of Subjects in 40 CFR Part 147

    Environmental protection, Appeals, Incorporation by reference, 
Penalties, Protection for USDWs, Requirements for plugging and 
abandonment, Underground injection control.


[[Page 95483]]


    Dated: December 20, 2016.
Gina McCarthy,
Administrator.
    For the reasons set out in the preamble, title 40 of the Code of 
Federal Regulations is amended as follows:

PART 147--STATE, TRIBAL, AND EPA-ADMINISTERED UNDERGROUND INJECTION 
CONTROL PROGRAMS

0
1. The authority citation for Part 147 is revised to read as follows:

    Authority: 42 U.S.C. 300h-4.

Subpart S--Kentucky

0
2. Section 147.900 is added to read as follows:


Sec.  147.900  State-administered program--Class II wells.

    The UIC program for Class II injection wells in the Commonwealth of 
Kentucky, except for those on Indian lands, is the program administered 
by the Kentucky Department of Natural Resources, Division of Oil and 
Gas approved by the EPA pursuant to section 1425 of the SDWA. 
Notification of this approval was published in the Federal Register on 
December 28, 2016; the effective date of this program is January 27, 
2017. Table 1 to paragraph (a) of this section is the table of contents 
of the Kentucky state statutes and regulations incorporated as follows 
by reference. This program consists of the following elements, as 
submitted to the EPA in the state's program application.
    (a) Incorporation by reference. The requirements set forth in the 
Kentucky State statutes and regulations cited in the binder entitled 
``EPA-Approved Commonwealth of Kentucky Safe Drinking Water Act Sec.  
1425 Underground Injection Control (UIC) Program Statutes and 
Regulations for Class II wells,'' dated August 2016 is hereby 
incorporated by reference and made a part of the applicable UIC program 
under the SDWA for the Commonwealth of Kentucky. This incorporation by 
reference was approved by the Director of the Federal Register in 
accordance with 5 U.S.C. 552(a) and 1 CFR part 51. Copies of the 
Kentucky regulations may be obtained or inspected at the Kentucky 
Department of Natural Resources, Division of Oil and Gas, 3th Floor, 
300 Sower Blvd., Frankfort, Kentucky 40601, (315) 532-0191; at the U.S. 
Environmental Protection Agency, Region 4, 61 Forsyth Street SW., 
Atlanta, Georgia 30303-8960, (404) 562-8190; or at the National 
Archives and Records Administration (NARA). For information on 
availability of this material at NARA, call (202) 741-6030, or go to: 
http://www.archives.gov/federal-register/cfr/ibr-locations.html.

 Table 1 to Paragraph (a)--EPA-Approved Kentucky SDWA Sec.   1425 Underground Injection Control Program Statutes
                                       and Regulations for Class II Wells
----------------------------------------------------------------------------------------------------------------
           State citation                   Title/subject          State effective date    EPA approval date \1\
----------------------------------------------------------------------------------------------------------------
Kentucky Revised Statutes Chapter    Kentucky Administrative      June 15, 1994.........  [Insert Federal
 13B.                                 Procedures Act KRS 13B.005                           Register citation].
                                      to 13B.170.
Kentucky Revised Statutes 353.180..  Requirements for plugging    June 24, 2015.........  [Insert Federal
                                      abandoned well--Bids--                               Register citation].
                                      Remedy for possessor of
                                      adjacent land or for
                                      department.
Kentucky Revised Statutes 353.510..  Definition of KRS 353.500    July 15, 2010.........  [Insert Federal
                                      to 353.720.                                          Register citation].
Kentucky Revised Statutes 353.520..  Territorial application of   June 24, 2003.........  [Insert Federal
                                      KRS 353.500 to 353.720--                             Register citation].
                                      Waste of oil and gas
                                      prohibited.
Kentucky Revised Statutes 353.550..  Specific authority over oil  July 15, 1996.........  [Insert Federal
                                      and gas operators.                                   Register citation].
Kentucky Revised Statutes 353.570..  Permit Required--May         July 15, 1998.........  [Insert Federal
                                      authorize operation prior                            Register citation].
                                      to issuance of permit.
Kentucky Revised Statutes 353.590..  Application for permit--     July 15, 2010.........  [Insert Federal
                                      Fees-Plat-Bond to insure                             Register citation].
                                      plugging--Schedule--Blanke
                                      t bonds-Corporate
                                      guarantee--Use of
                                      forfeited funds--Oil and
                                      gas well. plugging fund--
                                      Wells not included in
                                      ``water supply well.''.
Kentucky Revised Statutes 353.591..  Purpose and application of   July 15, 1986.........  [Insert FR citation].
                                      KRS 353.592 and 353.593.
Kentucky Revised Statutes 353.592..  Powers of the department...  June 24, 2015.........  [Insert FR citation].
Kentucky Revised Statutes 353.593..  Appeals....................  July 15, 1996.........  [Insert FR citation].
Kentucky Revised Statutes 353.992..  Penalties..................  July 15, 1986.........  [Insert FR citation].
805 Kentucky Administrative          Providing Protection for     August 9, 2007........  [Insert FR citation].
 Regulations 1:020.                   USDWs.
805 Kentucky Administrative          Well location and as-        October 23, 2009......  [Insert FR citation].
 Regulations 1:030.                   drilled location plat,
                                      preparation, form and
                                      contents.
805 Kentucky Administrative          Plugging wells; non-coal-    June 11, 1975.........  [Insert FR citation].
 Regulations 1:060.                   bearing strata.
805 Administrative Regulations       Plugging wells; coal         October 23, 1975......  [Insert FR citation].
 1:070.                               bearing strata.
805 Kentucky Administrative          Underground Injection        April 4, 2008.........  [Insert FR citation].
 Regulations 1:110.                   Control.
----------------------------------------------------------------------------------------------------------------
\1\ In order to determine the EPA effective date for a specific provision listed in this table, consult the
  Federal Register document cited in this column for the particular provision.

    (b) Memorandum of Agreement (MOA). The MOA between EPA Region 4 and 
the Commonwealth of Kentucky Department of Natural Resources signed by 
EPA Regional Administrator on October 20, 2015.

[[Page 95484]]

    (c) Statements of Legal Authority. ``Underground Injection Control 
Program, Attorney General's Statement,'' signed by General Counsel of 
Kentucky Energy and Environmental Cabinet on June 7, 2010.
    (d) Program Description. The Program Description submitted as part 
of Kentucky's application, and any other materials submitted as part of 
this application or as a supplement thereto.

0
3. Section 147.901 is amended by revising the section heading and the 
first sentence of paragraph (a) to read as follows:


Sec.  147.901  EPA-administered program--Class I, III, IV, V, and VI 
wells and Indian lands.

    (a) Contents. The UIC program for Class I, III, IV, V and VI wells 
and all wells on Indian lands in the Commonwealth of Kentucky is 
administered by the EPA. * * *
* * * * *

0
4. Section 147.902 is added to read as follows:


Sec.  147.902  Aquifer exemptions.

    (a) This section identifies any aquifers or their portions exempted 
in accordance with Sec. Sec.  144.7(b) and 146.4 of this chapter. These 
aquifers are not being proposed for exemption under the Commonwealth of 
Kentucky's primacy approval. Rather, the exempted aquifers listed below 
were previously approved while EPA had primary enforcement authority 
for the Class II UIC program in the Commonwealth of Kentucky and are 
included here for reference. Additional information pertinent to these 
exempted aquifers or their portions resides in EPA Region 4.
    (1) The following eight aquifers (underground sources of drinking 
water) in the Commonwealth of Kentucky have been exempted in accordance 
with the provisions of Sec. Sec.  144.7(b) and 146.4 of this chapter 
for Class II injection activities only: A portion of the Tar Springs 
sandstone formation that has a quarter mile radius areal extent (125.6 
acres) that is located at latitude 37.7261 and longitude -86.6914. The 
formation has a true vertical depth from surface of 280 feet.
    (2) A portion of the Tar Springs sandstone formation that has a 
quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.7294 and longitude -867212. The formation has a true 
vertical depth from surface of 249 feet.
    (3) A portion of the Tar Springs sandstone formation that has a 
quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.7055 and longitude -86.7177. The formation has a true 
vertical depth from surface of 210 feet.
    (4) A portion of the Pennsylvanian Age sandstone formation that has 
a quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.5402 and longitude -87.2551. The formation has a true 
vertical depth from surface of 1,050 feet.
    (5) A portion of the Tar Springs sandstone formation that has a 
quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.7301 and longitude -87.6922. The formation has a true 
vertical depth from surface of 240 feet.
    (6) A portion of the Caseyville sandstone formation that has a 
quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.5776 and longitude -87.1321. The formation had a true 
vertical depth from surface of 350 feet.
    (7) A portion of the Caseyville sandstone formation that has a 
quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.5778 and longitude -87.1379. The formation has a true 
vertical depth from surface of 1,080 feet.
    (8) A portion of the Caseyville sandstone formation that has a 
quarter mile radius areal extent (125.6 acres) that is located at 
latitude 37.5652 and longitude -87.1222. The formation has a true 
vertical depth from surface of 1,060 feet.
    (b) [Reserved]

0
5. Section 147.903 is amended by revising the section heading to read 
as follows:.


Sec.  147.903  Existing Class I and III wells authorized by rule.

* * * * *


Sec.  147.904  [Removed and Reserved]

0
6. Section 147.904 is removed and reserved.
[FR Doc. 2016-31268 Filed 12-27-16; 8:45 am]
BILLING CODE 6560-50-P