Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 905 - MANAGEMENT OF E&P WASTE

Universal Citation: 2 CO Code Regs 404-1 ยง 905

Current through Register Vol. 47, No. 17, September 10, 2024

a. General Requirements.

(1) Operator Obligations. Operators will ensure that E&P Waste is properly stored, handled, transported, treated, recycled, or disposed to prevent threatened or actual adverse environmental impacts to air, water, soil, or biological resources, or to the extent necessary to ensure compliance with the concentration levels in Table 915-1, radiation control standards, and WQCC Regulation 41 numeric and narrative Groundwater quality standards and classifications, as incorporated by reference in Rule 901.b.

(2) Protecting Waters of the State. Operators will conduct E&P Waste management activities, and construct and operate all Oil and Gas Locations, to protect the Waters of the State from adverse environmental impacts caused by E&P Waste.

(3) Reuse and Recycling. To encourage and promote waste minimization, Operators may propose plans for managing E&P Waste through beneficial use, reuse, and recycling by submitting a written management plan to the Director for approval on a Form 4, Form 15, or Form 28, Centralized E&P Waste Management Facility Permit. Such plans will describe, at a minimum:
A. The type(s) of waste;

B. The proposed volume and use of the waste;

C. The method of waste treatment and storage;

D. Recycled materials quality assurance;

E. Final disposition of the waste;

F. A copy of any certification or authorization that may be required by other laws and regulations;

G. A proposed timeline for reuse and recycling;

H. Beneficial use criteria;

I. Anticipated method of transporting waste; and

J. Any additional information requested by the Director.

(4) Waste Management Plans. Each Operator that generates E&P Waste as a result of their operations will prepare a comprehensive waste management plan detailing how the Operator will treat, characterize, manage, store, dispose, and transport all types of waste generated. The Director may require a waste management plan to include a description of proposed haul routes, including any applicable Local Government traffic requirements.
A. Operators will submit their waste management plans with their Form 2A pursuant to Rule 304.c.(11).

B. Operators will evaluate opportunities for reuse and recycling and may include a reuse and recycling plan, as described in Rule 905.a.(3) above, as part of the waste management plan.

C. If an Operator seeks to change its E&P Waste management practice, the Operator will update its waste management plan by submitting a revised waste management plan for the Director's approval or denial on a Form 4.

(5) Should evidence indicate that conditions at an active or closed Oil and Gas Location, Oil and Gas Facility, or Land Application site where produced Fluids and E&P Waste are currently or were previously generated, stored, treated, or disposed indicate contaminant concentrations in soils or Groundwater exceeding applicable standards, then the Commission authorizes the Director to require further investigation, Remediation, and Reclamation.

b. E&P Waste Transportation.

(1) Off-Site Transportation Within Colorado. Operators will only transport E&P Waste off-site within Colorado to facilities authorized by the Director, to permitted commercial waste disposal facilities, permitted commercial waste recycling facilities, or beneficial use sites approved to receive E&P Waste by CDPHE and the Relevant Local Government.

(2) Off-Site Transportation Outside of Colorado. Operators will only transport E&P Waste off-site for treatment or waste disposal outside of Colorado to facilities authorized and permitted by the appropriate regulatory agency in the receiving state. Operators will comply with the Rocky Mountain Low-level Radioactive Waste Board's Rules, as incorporated by reference in Rule 901.b.

(3) Waste Generator Requirements. Any Operator that generates E&P Waste that is transported off-site will maintain, for not less than 5 years, copies of each invoice, bill, or ticket, and such other records as necessary to document the requirements listed in Rules 905.b.(3).A-F. Such records will be signed by the transporter and provided to the Director upon request.
A. The date of the transport;

B. The identity of the waste generator;

C. The identity of the waste transporter;

D. The location of the waste pickup site;

E. The type and volume of waste; and

F. The name and location of the treatment or disposal site.

c. Produced Water.

(1) Treatment of Produced Water. Operators will treat produced water prior to placing it in a production pit to prevent crude oil, condensate, or hydrocarbon sheen from entering the Pit.

(2) Produced Water Disposal. Produced water may be disposed as follows:
A. Injection into a Class II UIC Well, permitted pursuant to the Commission's 800 Series Rules, or a Class I well permitted by EPA;

B. Evaporation/percolation in a properly permitted Pit at an Oil and Gas Location, operated in accordance with permit conditions that will not cause a violation of any applicable WQCC Regulation 41 numeric or narrative Groundwater quality standards and classifications, as incorporated by reference in Rule 901.b;

C. Disposal at permitted commercial facilities;

D. Discharging into Waters of the State under the following conditions pursuant to the Water Quality Control Act and all applicable regulations.
i. Operators will provide the Colorado discharge permit number, latitude and longitude coordinates pursuant to Rule 216.e of the discharge outfall, and sources of produced water on a Form 26, Source of Produced Water for Disposal, and will include a U.S. Geological Survey topographic map showing the location of the discharge outfall.

ii. If the discharge outfall is not located immediately at the receiving water body, the Operator will prevent surface impacts such as erosion or contamination that can result from the produced water flowing across the land surface.

iii. Produced water discharged pursuant to this Rule 905.c.(2).D may be put to beneficial use in accordance with applicable state statutes and regulations governing the use and administration of water.

E. Evaporation in a properly lined Pit at a Centralized E&P Waste Management Facility permitted pursuant to Rule 907.

(3) Produced Water Reuse and Recycling. Operators may reuse produced water for enhanced recovery, drilling, completion, and other approved uses in a manner consistent with existing water rights and in consideration of water quality standards and classifications established by the WQCC for Waters of the State, or any Point of Compliance established by the Director pursuant to Rule 914.

(4) Mitigation. Operators may use water produced during operation of an oil or gas Well to provide an alternative domestic water supply to Surface Owners within the oil or gas Field, pursuant to all applicable laws, including, but not limited to, obtaining the necessary approvals from the Water Quality Control Division for constructing a new "waterworks," as defined by § 25-1.5-203(1)(b)(II)(A), C.R.S. Any produced water not so used will be disposed of pursuant to Rules 905.c.(2) or (3). Providing produced water for domestic use within the meaning of this Rule 905.c.(4) will not constitute an admission by the Operator that the Well is dewatering or impacting any existing water well. The water produced will be to the benefit of the Surface Owner within the oil and gas Field and may not be sold for profit or traded.

(5) Water Sharing Agreements. Operators will submit agreements for sharing produced water for the Director's approval or denial no less than 60 days in advance of implementing the water sharing plan. The plan will be submitted as a waste management plan pursuant to Rule 905.a.(4).

d. Drilling Fluids.

(1) Reuse and Recycling. Operators may recycle drilling Pit contents for reuse at another drilling Pit that is properly permitted and operated pursuant to Rules 908, 909, & 910.

(2) Treatment and Disposal. Operators will treat or dispose of drilling Fluids through:
A. Injection into a Class II UIC Well permitted pursuant to the Commission's 800 Series Rules;

B. Disposal at a commercial Solid Waste Disposal facility; or

C. Land Treatment or Land Application at a Centralized E&P Waste Management Facility permitted pursuant to Rule 907.

(3) Additional Authorized Disposal of Water-Based Bentonitic Drilling Fluids. Operators may dispose of water-based bentonitic drilling fluids through one of the following methods:
A. Drying and burial in Pits on Non-Crop Land, if:
i. The resulting concentrations will not exceed the concentration levels in Table 915-1; and

ii. The Director approves the Operator's plan for closing the Pit pursuant to a prior approved Form 27.

B. Land Application if permitted by a waste management plan approved by the Director pursuant to Rule 905.a.(4), and if the Operator complies with the following standards:
i. Application Methods. Acceptable methods of Land Application include, but are not limited to, Production Facility construction and maintenance, lease road maintenance, and offsite beneficial reuse, subject to Rule 905.a.(4).

ii. Land Application Requirements.
aa. The average thickness of water-based bentonitic drilling Fluid waste applied will be no more than 3 inches.

bb. Operators will incorporate the drilling Fluid waste through mechanical means into the uppermost soil horizon.

cc. The waste will be applied to prevent ponding or erosion and will be incorporated as a beneficial amendment into the native soils within 10 days of application.

dd. Operators will not apply water-based bentonitic drilling Fluids to Non-Crop Land.

ee. Prior to application, Operators will analyze water-based bentonitic drilling Fluid waste to ensure that concentrations of contaminants of concern in water-based bentonitic drilling Fluids do not exceed concentrations in Table 915-1.

ff. The results of sampling analysis demonstrating compliance with Table 915-1 will be provided to the Director upon request.

iii. Surface Owner & Relevant Local Government Approval. Operators will obtain written authorization from the Relevant Local Government, if required, and the Surface Owner prior to Land Application of water-based bentonitic drilling Fluids and provide the written authorization to the Director upon request.

iv. Recordkeeping. Operators will maintain records of the information listed in Rules 905.d.(3).B.iv.aa-cc for 5 years, pursuant to Rule 206.f. Operators will provide all such records to the Director within 5 days, upon request:
aa. The source of any water-based bentonitic drilling Fluids applied;

bb. The volume of any water-based bentonitic drilling Fluids applied; and

cc. The location where the Land Application of the water-based bentonitic drilling Fluid occurred.

v. Operator Responsibility. The Operator with control and authority over the Well(s) from which the water-based bentonitic drilling fluid wastes were obtained retains responsibility for the Land Application operation. All Operators will cooperate with the Director in responding to complaints regarding Land Application of water-based bentonitic drilling Fluids.

e. Oily Waste.

(1) Treatment and Disposal. Operators may treat or dispose of Oily Waste through one of the following methods:
A. Disposal at a commercial Solid Waste Disposal facility;

B. Land Treatment onsite pursuant to 905.e.(2); or

C. Land Treatment at a Centralized E&P Waste Management Facility permitted pursuant to Rule 907.

D. Onsite treatment, for Oily Waste other than Tank bottoms, using alternative methods described on a Form 27 submitted to the Director for prior approval.

(2) Land Treatment Requirements.
A. Prior to commencing any Land Treatment, Operators will submit and obtain approval of a Form 27. The Form 27 will include, at a minimum:
i. A site diagram depicting the location of the planned Land Treatment area;

ii. The duration of the planned treatment; and

iii. The Operator's plan for final disposition of the treated Oily Waste.

B. Operators will adhere to the approved plan provided with the Form 27 and Rules 907 and 915 when performing Land Treatment.

C. Operators will remove free oil from the Oily Waste prior to Land Treatment.

D. Operators will spread Oily Waste evenly to prevent pooling, ponding, and runoff.

E. Operators will prevent Pollution of Stormwater Runoff, Groundwater, and surface water.
i. Operators will establish stormwater controls and use Best Management Practices to prevent contaminated stormwater from leaving the Land Treatment area.

ii. Operators will establish Land Treatment areas where contaminant mobility, soil type, or depth to Groundwater prevent downward migration of contaminants that would cause a violation of any WQCC Regulation 41 numeric and narrative Groundwater quality standards and classifications, as incorporated by reference in Rule 901.b.

iii. Operators will establish Land Treatment areas a minimum of 200 feet from the ordinary high water mark of a surface water.

iv. The Director may require the use of a liner beneath the Land Treatment area as a condition of approval on the Form 27, as appropriate.

F. Operators will enhance biodegradation by routine disking, tilling, aerating, or addition of nutrients, microbes, water or other amendments, at a predetermined frequency pursuant to the approved Form 27.

G. When Operators incorporate land-treated Oily Waste in place or beneficially reuse it, the treated waste may not exceed the cleanup concentrations in Table 915-1, including inorganic constituents and metals.

H. Surface Owner Consent.
i. If an Operator intends to conduct Land Treatment in an area not being utilized for Oil and Gas Operations, the Operator will obtain the Surface Owner's consent to conduct the Land Treatment operations on the Surface Owner's property, and provide a copy of the signed agreement with the Surface Owner to the Director with the Form 27 prior to proceeding with Land Treatment.

ii. If an Operator intends to conduct Land Treatment on an approved Oil and Gas Location prior to completion of interim Reclamation or on the surface disturbance remaining after interim reclamation, the Operator will provide notice to the Surface Owner at least 30 days before commencing the Land Treatment. Notice will, at a minimum, include a site diagram depicting the location of the planned Land Treatment area, the duration of the planned treatment, and planned final disposition of the waste.

I. Operators will conduct Land Treatment in a manner that does not preclude compliance with Rules 1003 and 1004.

J. Operators will not conduct Land Treatment of Oily Waste on an Oil and Gas Location after the final Well has been plugged. Oily Waste will be treated or disposed pursuant to Rules 905.e.1.(A) or (C).

K. Operators will conduct Land Treatment in a manner that achieves compliance with Table 915-1 concentrations in three years or less. If the treated waste does not comply with Table 915-1 within three years of the date of Land Treatment, the Operator will submit a Form 28 at least 90 days in advance of the 3-year anniversary of the Land Treatment Form 27 approval date. Failure to comply with Table 915-1 in 3 years or to submit a Form 28 will result in the requirement to immediately remove and properly dispose any remaining Oily Waste pursuant to Rules 905.e.1.(A) or (C).

f. Other E&P Waste. Operators may treat and dispose other E&P Waste, including but not limited to workover Fluids, Tank bottoms, pigging wastes from Pipelines, and gas gathering, processing, and storage wastes through one of the following methods:

(1) Disposal at a commercial Solid Waste Disposal facility;

(2) Treatment at a Centralized E&P Waste Management Facility permitted pursuant to Rule 907;

(3) Injection into a Class II UIC Well permitted pursuant to the Commission's 800 Series Rules; or

(4) An alternative method proposed in a waste management plan pursuant to Rule 905.a.(4) and approved by the Director.

g. Drill Cuttings. Operators will treat or dispose of drill cuttings through one of the following methods:

(1) Oily Waste. Operators will manage the following drill cuttings as Oily Waste pursuant to Rule 905.e:
A. Drill cuttings generated from oil-based drilling fluids;

B. Drill cuttings that exceed Table 915-1 concentrations for organic compounds in soil; and

C. Drill cuttings that have not been sampled and analyzed to demonstrate compliance with Table 915-1 for organic compounds in soil.

(2) Drill Cuttings. Operators will demonstrate compliance with Table 915-1 through sampling and analysis. Management of drill cuttings that exceed Table 915-1 for constituents listed under soil suitability for Reclamation by the methods listed below is subject to prior approval by the Director, pursuant to Rule 915.b. Operators may manage drill cuttings that comply with Table 915-1, are not Oily Waste, and are generated using water-based bentonitic drilling Fluids through one of the following methods:
A. Disposal at a commercial Solid Waste Disposal facility;

B. Disposal at a Centralized E&P Waste Management Facility permitted pursuant to Rule 907;

C. Subject to Surface Owner approval, Land Application as a beneficial soil amendment to native soil subject to a waste management plan approved pursuant to Rule 905.a.(4).

D. If permitted by Rule 1003.d, and subject to Surface Owner approval, drying and burial in on-location drilling Pits that are documented with a Form 27 submitted for prior Director approval for closure of the Pit; or

E. Subject to Surface Owner approval, and prior Director approval of a Form 27, burial in a Cuttings Trench.

Disclaimer: These regulations may not be the most recent version. Colorado may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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