Current through Reg. 49, No. 12; March 22, 2024
(a) Applicability.
This section is applicable to reclamation of tank bottoms and other hydrocarbon
wastes generated through activities associated with the exploration,
development, and production (including transportation) of crude oil and other
waste materials containing oil, as those activities are defined in §
RSA
3.8<subdiv>(a)(30)</subdiv> of
this title (relating to Water Protection). The provisions of this section shall
not apply where tank bottoms or other hydrocarbon-bearing materials are
recycled or processed on-site by the owner/custodian and are returned to a tank
or vessel at the same lease or facility. This section is not applicable to the
practice of recycling or reusing drilling mud, except as to those hydrocarbons
recovered from such mud recycling and sent to a permitted reclamation
plant.
(b) Definitions. The
following words and terms, when used in this section, shall have the following
meanings, unless the context clearly indicates otherwise.
(1) Tank bottoms--A mixture of crude oil or
lease condensate, water, and other substances that is concentrated at the
bottom of producing lease tanks and pipeline storage tanks (commonly referred
to as basic sediment and water or BS&W).
(2) Other hydrocarbon wastes--Oily waste
materials, other than tank bottoms, which have been generated in connection
with activities associated with the exploration, development, and production of
oil or gas or geothermal resources, as those activities are defined in §
RSA
3.8<subdiv>(a)(30)</subdiv> of
this title (relating to Water Protection). The term "other hydrocarbon wastes"
includes, but is not limited to, pit hydrocarbons, skim oil, spillage, and
leakage of crude oil or condensate from producing lease or pipeline storage
tanks, and crude oil or condensate associated with pipeline ruptures and other
spills.
(3) Authorized person--A
tank bottoms cleaner or transporter that is under contract for disposition of
untreated tank bottoms or other hydrocarbon wastes to a person who has obtained
a permit to operate a reclamation plant.
(4) Affected person--A person who has
suffered or will suffer actual injury or economic damage other than as a member
of the general public and includes surface owners of property on which a
reclamation plant is located and surface owners of adjoining
properties.
(5) Director--The
director of the Oil and Gas Division or a staff delegate designated in writing
by the director of the Oil and Gas Division or the commission.
(c) Permitting process.
(1) Removal of tank bottoms or other
hydrocarbon wastes from any producing lease tank, pipeline storage tank, or
other production facility, for reclaiming by any person, is prohibited unless
such person has either obtained a permit to operate a reclamation plant, or is
an authorized person. Applicants for a reclamation plant operating permit shall
file the appropriate form with the commission in Austin.
(2) The applicant shall give notice by
mailing or delivering a copy of the application to the county clerk of the
county where the reclamation plant is to be located, and to the city clerk or
other appropriate city official of any city where the reclamation plant is
located within the corporate limits of the city, on or before the date the
application is mailed to or filed with the commission.
(3) In order to give notice to other local
governments and interested or affected persons, notice of the application shall
be published once by the applicant in a newspaper of general circulation for
the county where the reclamation plant is to be located, in a form approved by
the commission. Publication shall occur on or before the date the application
is mailed to or filed with the commission. The applicant shall file with the
commission in Austin proof of publication prior to the hearing or
administrative approval.
(4) If a
protest from an affected person or local government is made to the commission
within 15 days of receipt of the application or of publication, or if the
commission determines that a hearing is in the public interest, then a hearing
will be held on the application after the commission provides notice of hearing
to all affected persons, local governments, or other persons who express an
interest in writing in the application.
(5) If no protest from an affected person or
local government is received by the commission within the allotted time, the
director may administratively approve the application. If the director denies
administrative approval, the applicant shall have a right to a hearing upon
request. After hearing, the examiner shall recommend a final action by the
commission.
(6) Applicants must
demonstrate they are familiar with commission rules and have the proper
facilities to comply with the rules.
(7) Except as provided in subparagraphs (A)
and (B) of this paragraph, a permit to operate a reclamation plant shall remain
in effect until canceled at the request of the operator. Existing permits
subject to annual renewal may be renewed so as to remain in effect until
canceled. Such renewal shall be subject to the requirements of paragraph (10)
of this subsection. A reclamation plant permit may be canceled by the
commission after notice and opportunity for hearing, if:
(A) the permitted facility has been inactive
for 12 months; or
(B) there has
been a violation, or a violation is threatened, of any provision of the permit,
the conservation laws of the state, or rules or orders of the
commission.
(8) If the
operator objects to the cancellation, the operator must file, within 15 days of
the date shown on the notice, a written objection and request for a hearing to
determine whether the permit should be canceled. If such written request is
timely filed, the cancellation will be suspended until a final order is issued
pursuant to the hearing. If such request is not received within the required
time period, the permit will be canceled. In the event of an emergency which
presents an imminent pollution, waste, or public safety threat, the commission
may suspend the permit until an order is issued pursuant to the
hearing.
(9) A permit to operate a
reclamation plant is not transferable. A new permit must be obtained by the new
operator.
(10) Reclamation plants
permitted under this section shall file financial security as required under
§
RSA
3.78<subdiv>(l)</subdiv> of this
title (relating to Fees and Financial Security Requirements).
(d) Operation of a reclamation
plant.
(1) The following provisions apply to
any removal of tank bottoms or other hydrocarbon wastes from any oil producing
lease tank, pipeline storage tank, or other production facility.
(A) Notwithstanding the provisions of §
RSA
3.85<subdiv>(a)(8)</subdiv> of
this title (relating to Manifest To Accompany Each Transport of Liquid
Hydrocarbons by Vehicle), an operator of a reclamation plant or an authorized
person shall execute a manifest in accordance with §
RSA
3.85 of this title (relating to Manifest To
Accompany Each Transport of Liquid Hydrocarbons by Vehicle), upon each removal
of tank bottoms or other hydrocarbon wastes from any oil producing lease tank,
pipeline storage tank, or other production facility. In addition to the
information required pursuant to §
RSA
3.85 of this title (relating to Manifest To
Accompany Each Transport of Liquid Hydrocarbons by Vehicle), the operator of
the reclamation plant or other authorized person shall also include on the
manifest:
(i) the commission identification
number of the lease or facility from which the material is removed;
and
(ii) the gross and net volume
of the material as determined by the required shakeout test.
(B) The operator of the
reclamation plant or other authorized person shall fill out the manifest before
leaving the lease or facility from which the liquid hydrocarbons are removed,
and shall retain a copy on file for two years.
(C) The operator of the reclamation plant or
other authorized person shall leave a copy of the manifest in the vehicle
transporting the material.
(2) The operator of a reclamation plant or
other authorized person shall conduct a shakeout (centrifuge) test on all tank
bottoms or other hydrocarbon wastes upon removal from any producing lease tank,
pipeline storage tank, or other production facility, to determine the crude oil
content and lease condensate thereof.
(3) The shakeout test shall be conducted in
accordance with the most current American Petroleum Institute or American
Society for Testing Materials method.
(e) Reporting of reclaimed crude oil or lease
condensate on commission required report.
(1)
For wastes taken to a reclamation plant the following provisions shall apply.
(A) The net crude oil content or lease
condensate from a producing lease's tank bottom as indicated by the shakeout
test shall be used to calculate the amount of oil to be reported as a
disposition on the monthly production report. The net amount of crude oil or
lease condensate from tank bottoms taken from a pipeline facility shall be
reported as a delivery on the monthly transporter report.
(B) For other hydrocarbon wastes, the net
crude oil content or lease condensate of the wastes removed from a tank,
treater, firewall, pit, or other container at an active facility, including a
pipeline facility, shall also be reported as a disposition or delivery from the
facility.
(2) The net
crude oil content or lease condensate of any tank bottoms or other hydrocarbon
wastes removed from an active facility, including a pipeline facility, and
disposed of on-site or delivered to a site other than a reclamation plant shall
also be reported as a delivery or disposition from the facility. All such
disposal shall be in accordance with §§
RSA
3.8,
RSA
3.9, and
RSA
3.46 of this title (relating to Water
Protection; Disposal Wells; and Fluid Injection into Productive Reservoirs).
Operators may be required to obtain a minor permit for such disposal using
procedures set out in §
RSA 3.8<subdiv>(d) and
(g)</subdiv> of this title (relating to Water
Protection). Prior to approval of the minor permit, the commission may require
an analysis of the disposable material to be performed.
(f) General provisions applicable to
materials taken to a reclamation plant.
(1)
The removal of tank bottoms or other hydrocarbon wastes from any facility for
which monthly reports are not filed with the commission must be authorized in
writing by the commission prior to such removal. A written request for such
authorization must be sent to the commission office in Austin, and must detail
the location, description, estimated volume, and specific origin of the
material to be removed, as well as the name of the reclaimer and intended
destination of the material. If the authorization is denied, the applicant may
request a hearing.
(2) The receipt
of any tank bottoms or other hydrocarbon wastes from outside the State of Texas
must be authorized in writing by the commission prior to such receipt. However,
written approval is not required if another entity will indicate, in the
appropriate monthly report, a corresponding delivery of the same material. If
the request is denied, the applicant may request a hearing.
(3) The receipt of any waste materials other
than tank bottoms or other hydrocarbon wastes must be authorized in writing by
the commission prior to such receipt. The commission may require the
reclamation plant operator to submit an analysis of such waste materials prior
to a determination of whether to authorize such receipt. If the request is
denied, the applicant may request a hearing.
(4) The operator of a reclamation plant shall
file a report on the appropriate commission form for each reclamation plant
facility by the 15th day of each calendar month, covering the facility's
activities for the previous month. The operator of a reclamation plant shall
file a copy of the monthly report in the district office of any district in
which the operator made receipts or deliveries for the month covered by the
report.
(5) All wastes generated by
reclaiming operations shall be disposed of in accordance with §§
RSA
3.8,
RSA
3.9, and
RSA
3.46 of this title (relating to Water
Protection; Disposal Wells; and Fluid Injection into Productive Reservoirs). No
person conducting activities subject to regulation by the commission may cause
or allow pollution of surface or subsurface water in the state.
(g) Commission review of
administrative actions. Administrative actions performed by the director or
commission staff pursuant to this rule are subject to review by the
commissioners.
(h) Policy. The
provisions of this rule shall be administered so as to prevent waste and
protect correlative rights.