96-31056. Draft National Pollutant Discharge Elimination System (NPDES) General Permits for the Eastern Portion of Outer Continental Shelf (OCS) of the Gulf of Mexico (GMG280000)

[Federal Register Volume 61, Number 237 (Monday, December 9, 1996)]
[Notices]
[Pages 64876-64906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31056]


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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5660-3]


Draft National Pollutant Discharge Elimination System (NPDES) 
General Permits for the Eastern Portion of Outer Continental Shelf 
(OCS) of the Gulf of Mexico (GMG280000)

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of draft NPDES general permit reissuance, notice to 
States of Mississippi, Alabama and Florida for consistency review with 
approved coastal management programs.

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SUMMARY: The Regional Administrator (RA) of EPA Region 4 (the 
``Region'') is today proposing to reissue in part National Pollutant 
Discharge Elimination System (NPDES) general permits for the Outer 
Continental Shelf (OCS) of the Gulf of Mexico (General Permit No. 
GMG280000) for discharges in the Offshore Subcategory of the Oil and 
Gas Extraction Point Source Category (40 CFR part 435, subpart A). The 
existing permit, jointly issued by Regions 4 and 6 and published at 51 
FR 24897 on July 9, 1986, authorizes discharges from exploration, 
development, and production facilities located in and discharging to 
all Federal waters of the Gulf of Mexico seaward of the outer boundary 
of the territorial seas. Region 6 issued a final permit (General Permit 
No. GMG290000) for the Western portion of the OCS of the Gulf of 
Mexico, published at 57 FR 54642 on November 19, 1992 for facilities in 
Federal waters seaward of Louisiana and Texas Waters. Today's proposed 
draft NPDES permits cover existing and new source facilities

[[Page 64877]]

(Alternative B of the Environmental Impact Statement (EIS)) with 
operations on Federal leases occurring in water depths seaward of 200 
meters, occurring offshore the coasts of Mississippi, Alabama and 
Florida. The western boundary of the coverage area is demarcated by 
Destin Dome leases occurring offshore Alabama or Mississippi in water 
depths seaward of 200 meters. The eastern boundary of the coverage area 
is demarcated by the Vernon Basin leases north of the 26 deg. parallel 
and in water depths seaward of 200 meters.
    All permittees holding leases on which a discharge has taken place 
within 2 years of the effective dates of the new general permits 
(operating facilities) in these areas must file a written notice of 
intent to be covered by either the new general permit for existing 
sources or the new general permit for new sources within 60 days after 
publication of the final determination on this action. Non-operational 
leases, i.e., those on which no discharges have taken place in the 2 
years prior to the effective date of the new general permits, are not 
eligible for coverage under either general permit, and their coverage 
under the old general permit will terminate on the effective date of 
the new general permits. No NOI's will be accepted on non-operational 
or newly acquired leases until such time as an exploration plan or 
development production plan has been prepared for submission to EPA. 
The notice of intent must contain the information set forth in 40 CFR 
122.28(b)(2)(ii) and Section A.4 of the NPDES permit. In accordance 
with Oil and Gas Extraction Point Source Category; Offshore Subcategory 
Effluent Guidelines and New Source Performance Standards published at 
58 FR 12454 on March 4, 1993, EPA Region 4 is making an Environmental 
Impact Statement (EIS) available concurrently with the general permits 
for review during the public comment period that addresses potential 
impacts from facilities that may be defined as new sources in the 
context of a comprehensive offshore permitting strategy. As set forth 
in Section 2.4.2 of the EIS, the Regional Administrator has determined 
that the area shoreward of the 200 meter depth includes extensive live 
bottom and other valuable marine habitats and includes areas of 
biological concern, which should be subject to more stringent review 
based on the ocean discharge criteria under Section 403 of the Clean 
Water Act (CWA) and findings of the EIS. Accordingly, individual 
permits will be issued for operating facilities on lease blocks 
traversed by and shoreward of the 200 meter water depth. Owners or 
operators of those leases will be notified in writing that an 
individual permit is required. A brief statement of the reasons for 
this decision will be provided, together with an application form and a 
deadline for filing the application. If a timely application is 
received, general permit coverage will continue and shall automatically 
terminate on the date final action is taken on the individual NPDES 
permit application, in accordance with 40 CFR 122.28(b)(3)(ii). No 
application will be accepted for non-operational leases until such time 
as an exploration plan or development production plan has been prepared 
for submission to EPA. Owners of non-operational leases and operators 
who neither file a notice of intent nor an individual permit 
application will lose coverage under the old general permit on the 
effective date of the new general permits.
    As proposed, these NPDES general permits include BPT, BCT, and BAT 
limitations for existing sources and NSPS limitations for new sources 
as recently promulgated in the effluent guidelines for the offshore 
subcategory at 58 FR 12454 (March 4, 1993). The permits also address a 
decision of the Ninth Circuit Court of Appeals by establishing limits 
on cadmium and mercury and by removing references to Alternative 
Toxicity Requests. In addition, the permits delete references to the 
Diesel Pill Monitoring Program, incorporate a new limitation on garbage 
discharges consistent with the regulations of the U.S. Coast Guard, 
clarify the applicability of some of the permit's effluent limitations 
and reporting requirements, establish aquatic toxicity limitations for 
produced water, and include a reopener clause.

DATES: Comments on this proposed action must be received by February 7, 
1997.

ADDRESSES: Persons wishing to comment upon or object to any aspects of 
this permit reissuance or wishing to request a public hearing, are 
invited to submit same in writing within sixty (60) days of this notice 
to the Office of Environmental Assessment, United States Environmental 
Protection Agency, Region 4, Atlanta Federal Center, 100 Alabama 
Street, S.W., Atlanta, GA 30303-3104, Attention: Ms. Lena Scott.

FOR FURTHER INFORMATION CONTACT: Contact Mr. Roosevelt Childress, 
Chief, Surface Water Permits Section, telephone [phone], or Mr. 
Larry Cole, Environmental Engineer, telephone [phone] or the 
following address: Water Management Division, Surface Water Permits 
Section, U.S. EPA, Region 4, Atlanta Federal Center, 100 Alabama 
Street, S.W., Atlanta, GA 30303-3104.

SUPPLEMENTARY INFORMATION:

Procedures for Reaching a Final Permit Decision

    Pursuant to 40 CFR 124.13, any person who believes any condition of 
the permit is inappropriate must raise all reasonably ascertainable 
issues and submit all reasonably available arguments in full, 
supporting their position, by the close of the comment period. All 
comments on the proposed NPDES general permits and the EIS received 
within the 60-day period will be considered in the formulation of final 
determinations regarding the permit reissuance. In addition, public 
hearings will be held. See Public Hearing Notice section below for 
locations of public hearings in each city.
    After consideration of all written comments and the requirements 
and policies in the Act and appropriate regulations, the EPA Regional 
Administrator will make determinations regarding the permit reissuance. 
If the determinations are substantially unchanged from those announced 
by this notice, the Administrator will so notify all persons submitting 
written comments. If the determinations are substantially changed, the 
Administrator will issue a public notice indicating the revised 
determinations.
    A formal hearing is available to challenge any NPDES permit issued 
according to the regulations at 40 CFR 124.15 except for a general 
permit as cited at 40 CFR 124.71. Persons affected by a general permit 
may not challenge the conditions of a general permit as a right in 
further Agency proceedings. They may instead either challenge the 
general permit in court, or apply for an individual permit as specified 
at 40 CFR 122.21 as authorized at 40 CFR 122.28, and then request a 
formal hearing on the issuance or denial of an individual permit. 
Additional information regarding these procedures is available by 
contacting Ms. Kathleen L. Wilde, Office of Regional Counsel at (404) 
562-9547.

Procedures for Obtaining General Permit Coverage

    Notice of Intent (NOI) requirements for obtaining coverage for 
operating facilities under both permits are stated in Part I Section 
A.4 of the general permit. Coverage under the new general permit is 
effective upon receipt of

[[Page 64878]]

notification of inclusion from the Director of the Water Management 
Division. EPA will act on the NOI within a reasonable period of time.

Exclusion of Non-Operational Leases

    These permits do not apply to non-operational leases, i.e., those 
on which no discharge has taken place in the 2 years prior to the 
effective dates of the new general permit. EPA will not accept NOI's 
for such leases, and these general permits will not cover such leases. 
Non-operational leases will lose coverage under the old general permit 
on the effective date of the new general permits. No subsequent 
exploration, development or production activities may take place on 
these leases until and unless the lessee has obtained coverage under 
one of the new general permits or an individual permits. EPA will not 
accept NOI's or individual permit applications for non-operational or 
new acquired leases until such time as an exploration plan or 
development production plan has been prepared for submission to EPA.
    The new permitting requirements for leases covered under the old 
general permits are summarized in Table 1.

              Table 1.--New Permitting Requirements for Leases Covered Under the Old General Permit             
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                                                           Coverage        Date old general     Type of permit  
         Lease location            Discharge status      requirements       permit expires         coverage     
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Outside 200 meter Isobath.......  (1) Operational...  File an NOI within  Date EPA Notifies   New Genral Permit,
                                                       60 days of          Lessee of New       except near an   
                                                       effective date of   Coverage Decision.  Area of          
                                                       new general                             Biological       
                                                       permit.                                 Concern.         
                                  (2) Leases With     File NOI At Time    Effective Date of   New General       
                                   Imminent Projects.  Exploration Plan    New General         Permit, except   
                                                       or Development      Permit.             near an Area of  
                                                       Production Plan                         Biological       
                                                       Exists.                                 Concern.         
                                  (3) Non-            No NOI will be      Effective Date of   None              
                                   Operational.        accepted;           New General                          
                                                       Ineligible for      Permit.                              
                                                       General Permit                                           
                                                       Coverage.                                                
Inside 200 meter Isobath........  (1) Operational...  File an individual  Date EPA notifies   Individual Permit.
                                                       permit              lessee of                            
                                                       application         Individual permit                    
                                                       within 120 days     decision.                            
                                                       of effective date                                        
                                                       of new general                                           
                                                       permit.                                                  
                                  (2) Leases with     File an Individual  Effective date of   Individual Permit.
                                   Imminent Projects.  Permit              New General                          
                                                       Application when    Permit.                              
                                                       Lessee has                                               
                                                       Exploration Plan                                         
                                                       or Development                                           
                                                       Production Plan.                                         
                                  (3) Non-            Ineligible For      Effective Date of   None              
                                   Operational.        General Permit      New General                          
                                                       Coverage.           Permit.                              
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State Water Quality Certification

    Because state waters are not included in the area covered by the 
OCS general permit, its effluent limitations and monitoring 
requirements are not subject to state water quality certification under 
CWA Section 401.

State Consistency Determination

    This Notice will also serve as Region 4's requirement under the 
Coastal Zone Management Act (CZMA) to provide all necessary information 
for the States of Mississippi, Alabama and Florida to review this 
action for consistency with their approved Coastal Management Programs. 
A copy of the consistency determination on the proposed activities is 
being sent to each affected State, along with draft copies of the draft 
NPDES general permit, Fact Sheet, preliminary Ocean Discharge Criteria 
Evaluation, and draft Environmental Impact Statement. Other relevant 
information is available upon request from each State for their review. 
Comments regarding State Consistency are invited in writing within 
sixty (60) days of this notice to the Office of Public Affairs, United 
States Environmental Protection Agency, Region 4, Atlanta Federal 
Center, 100 Alabama Street, S.W., Atlanta, GA 30303-3104, Attention: 
Ms. Lena Scott.

Public Hearing

    A total of four (4) public hearings are being planned on this 
proposed action. The 1st hearing is scheduled on Tuesday, January 28th 
at 6:00 p.m in Biloxi, Mississippi at the Marine Education Center and 
Aquarium. The 2nd hearing is scheduled on Wedneday, January 29th at 
6:00 p.m. in Gulf Shores, Alabama at the Adult Education Center. The 
3rd hearing is scheduled on Thursday, January 30th at 6:00 p.m. in 
Pensacola, Florida at the Booker T. Washington High School. The 4th 
hearing is scheduled on Tuesday, February 4th at 6:00 p.m. in St. 
Petersburg, Florida at the Florida Marine Research Institute. Persons 
interested in obtaining directions to these hearing should contact Ms. 
Lena Scott at [phone].

Administrative Record

    The proposed NPDES general permits, fact sheet, preliminary 403(c) 
determination, EIS and other relevant documents are on file and may be 
inspected any time between 8:15 a.m. and 4:30 p.m., Monday through 
Friday at the address shown below. Copies of the draft NPDES general 
permits, fact sheet, preliminary 403(c) determination, EIS and other 
relevant documents may be obtained by writing the U.S. EPA, Region 4, 
Atlanta Federal Center, 100 Alabama Street, S.W., Atlanta, Georgia 
30303-3104, Attention: Ms. Lena Scott, or calling [phone].
Beverly H. Banister,
Deputy Director, Water Management Division.

Table of Contents

I. Background Information On General Permits and Proposed Individual 
Permits
    A. Previous OCS General Permit
    B. Discussion of three (3) Alternatives Examined by EIS
    C. Conclusions from EIS on Biological Communities
    D. Proposed Eastern Gulf of Mexico General Permits
    (1) New Sources
    (2) Existing Sources
    (3) Application Procedures
    E. Proposed Individual Permits
    F. Oil & Gas Activities Occurring in the Eastern Gulf of Mexico
II. Description of activity and facilities which are subject of 
draft permits

[[Page 64879]]

III. Nature of Discharges from Oil and Gas Operations and Effluent 
Limits
IV. Statutory Basis for Permit Conditions
    A. Technology Bases
    1. BPT Effluent Limitations for Existing Source General Permit
    2. BAT and BCT Effluent Limitations and New Source Performance 
Standards (NSPS)
    3. Previous NPDES General Permit Limitations
    B. Ocean Discharge Criteria
    C. Section 308 of the Clean Water Act
V. Summary of New or Changed Permit Limitations and Conditions
    A. Alternative Toxicity Requests
    B. Cadmium and Mercury in Barite
    C. New Sources
    D. Free Oil
    E. Produced Sand
    F. Produced Water
    G. Diesel Oil Prohibition
    H. Water Quality-Based Effluent Limitations and Conditions
    I. Aquatic Toxicity Limits & Testing Requirements for Produced 
Water
    J. Discharge Prohibition in Vicinity of Areas of Biological 
Concern
    K. Rubbish, Trash, and Other Refuse (MARPOL)
    L. 24-hr Reporting Requirement
    M. Reopener Clause
    N. Clarifications
VI. Specific Permit Conditions
    A. Determination of Discharge Conditions
    B. Area and Depth-Related Requirements
    C. Section 403(c) Requirements
VII. Other Legal Requirements
    A. National Environmental Protection Act
    B. Oil Spill Requirements
    C. Ocean Discharge Criteria Evaluation
    D. Coastal Zone Management Act
    E. Marine Protection, Research, and Sanctuaries Act
    F. Executive Order 12291
    G. Paperwork Reduction Act
    H. Regulatory Flexibility Act
    I. References

Fact Sheet

I. Background Information Concerning General Permits and Proposed 
Individual Permits

    Section 301(a) of the Clean Water Act (the ``Act) provides that the 
discharge of pollutants is unlawful except in accordance with the terms 
of an NPDES permit. The Regional Administrator has determined, on the 
basis of the EIS, that oil and gas facilities seaward of the 200 meter 
water depth in certain parts of the Eastern Portion of the Gulf of 
Mexico as described in the proposed NPDES general permits are more 
appropriately controlled by general permits rather than individual 
permits, 40 CFR Sec. 122.28(c). This determination covers both existing 
sources and new sources. Accordingly, two (2) NPDES general permits are 
being proposed: one covering existing sources and the second covering 
new sources. This decision is based on 40 CFR 122.28, 40 CFR 125 
(Subpart M--Ocean Discharge Criteria), Environmental Impact Statement 
and the Agency's previous decisions in other areas of the Gulf of 
Mexico's Outer Continental Shelf (OCS). As in the case of individual 
permits, violation of any condition of a general permit constitutes a 
violation of the Act that is enforceable under section 309 of the Act.
    In accordance with 40 CFR 122.28(a)(4)(iii), any owner or operator 
authorized by a general permit may request to be excluded from the 
coverage of the general permit by applying for an individual permit. 
The owner or operator shall submit an application under 40 CFR 122.21, 
with reasons supporting the request, to the Director, Water Management 
Division, Surface Water Permits Section, U.S. EPA, Atlanta Federal 
Center, 100 Alabama Street, S.W., Atlanta, GA 30303-3104.

A. Previous OCS NPDES General Permit

    The Regional Administrator for EPA Region 4 is today proposing to 
reissue in part the National Pollutant Discharge Elimination System 
(NPDES) general permit for the Outer Continental Shelf of the Gulf of 
Mexico (General Permit No. GMG280000) under Region 4 jurisdiction. This 
previous permit, published at 51 FR 24897 (July 9, 1986), issued 
jointly for the Eastern and Western Gulf of Mexico by Regions 4 and 6, 
expired on July 1, 1991. Region 6 reissued a final existing permit for 
the Western Portion of the Outer Continental Shelf (General Permit No. 
GMG290000), published at 57 FR 54642 (November 19, 1992) with a 
modification published at 58 FR 63964 (December 3, 1993). Region 4, 
continued coverage under the previous OCS general permit to permittees 
that requested to be covered before the previous general permit expired 
on July 1, 1991. Today's proposed Eastern Gulf of Mexico OCS general 
permits regulate existing source and new source OCS discharges 
throughout the Gulf of Mexico for offshore areas under the jurisdiction 
of Region 4.

B. Discussion of three (3) Alternatives Examined by the Environmental 
Impact Statement (EIS)

    Since the promulgation of effluent guidelines and standards of 
performance for new sources at 58 FR 12454 (March 4, 1993), EPA 
regulations in 40 CFR 122.29(c) require that the issuance of an NPDES 
permit to a new source be subject to environmental review provisions of 
the National Environmental Policy Act (NEPA) as defined in 40 CFR Part 
6, Subpart F. A Draft Environmental Impact Statement (EIS) has been 
prepared by EPA. The EIS examined three (3) alternatives for permitting 
exploration development and production phases of oil and gas 
activities. Alternative A: Issuing two general permits, one for 
existing sources and the other for new sources, that would cover the 
entire EPA Region 4 jurisdictional area except areas under moratorium. 
Alternative B (EPA's preferred alternative): Issuing two general 
permits, one for existing sources and the other for new sources, that 
would only apply to locations seaward of the 200 meter isobath, and 
would exclude areas under moratorium. Alternative C: EPA would not 
issue NPDES general permits covering either existing sources or new 
sources and would handle all future oil and gas activities occurring in 
EPA Region 4 jurisdictional area by individual permits. Chapter 2 of 
the EIS should be reviewed for a discussion of these three (3) 
alternatives. Chapter 3 of the EIS discusses the affected environment 
and potential environmental consequences of the three (3) alternatives. 
EPA, Region 4, expects comments on all alternatives examined in the EIS 
during the public comment period.

C. Conclusions from EIS on Biological Communities in the Coastal Shelf 
and Shelf-Break Zone

    The EIS reviews available data and studies on discharges from oil 
and gas facilities and the potential for these discharges resulting in 
impacts to benthic communities of short and long term duration. The EIS 
concludes that because of the abundance and sensitivity of the 
biological resources present from 200 meters of depth and shallower and 
potential secondary impacts, individual permits for these areas which 
incorporate permit stipulations on a case-by-case review would be more 
protective of the numerous biological communities present in the 200 
meter water depths or shallower, and help ensure compliance with 
Section 403(c) of the CWA. Because areas of biological concern are more 
abundant in water depths of 200 meters or shallower and potential for 
environmental impacts is greater, Region 4 chose alternative B as its 
preferred alternative as the permitting strategy for the Eastern Gulf 
of Mexico. This alternative allows for case-by-case review of more 
biologically sensitive areas. This strategy requires current or 
proposed oil and gas operations shoreward of the 200 meter water depth 
to seek individual existing source or new source permits, as 
appropriate.

[[Page 64880]]

D. Proposed Eastern Gulf of Mexico NPDES General Permits

    These proposed draft Eastern Gulf of Mexico NPDES general permits 
authorize discharges from exploration, development, and production 
facilities (existing sources or new sources) discharging to Federal 
waters of the United States of the Gulf of Mexico. Region 4's coverage 
area for these general permits includes all discharges occurring in 
leases located seaward of the 200 meter water depth for offshore 
Mississippi, Alabama and Florida, as explained in Part I Section A(2) 
of the general permit. This proposed coverage area excludes all Federal 
leases located offshore Mississippi, since all Region 4's Federal 
leases occur in water depths of less than 200 meters; however, since 
activities occurring under this proposed action potentially affect 
Mississippi's coastal waters, the State of Mississippi will be included 
in this Federal action for Coastal Zone Management (CZM) Consistency 
determinations and all other necessary State requirements. These 
permits do not cover areas included under Congressional or Presidential 
moratorium for oil and gas activities in Federal waters.
    40 C.F.R. Sec. 122.29 requires that separate permits be issued for 
new sources. Accordingly, two general permits will be issued for the 
area seaward of the 200 meter depth: one for new sources, and the other 
for existing sources. These permits apply only to operating facilities; 
they do not apply to non-operational leases.
(1) New Source General Permit
    The RA has determined, in accordance with 40 CFR Sec. 122.28(c), 
that the new source general permit will apply to all new sources, as 
that term is defined at 40 CFR Sec. 122.2 as ``any building, structure, 
facility, or installation from which there is or may be a discharge of 
pollutants, the construction of which is commenced:

    (a) After promulgation of standards of performance under section 
306 of CWA which are applicable to such source, or
    (b) After proposal of standards of performance in accordance 
with section 306 of CWA which are applicable to such sources, but 
only if the standards are promulgated in accordance with section 306 
within 120 days of their proposal.''

    If construction was commenced after March 4, 1993, the facility is 
a new source. Because drilling rigs are moved from site to site for 
several years and production platforms can be built on shore and 
transported to an offshore site, the actual construction of the 
equipment or facility can occur years before there is a discharge of 
pollutants from that equipment or facility at a particular site. 
Therefore, the definition of the ``construction'' of a new source must 
be addressed. The regulations at 40 CFR 122.29(b)(4) state:
    ``(4) Construction of a new source as defined under Sec. 122.2 has 
commenced if the owner or operator has:

    (i) Begun, or caused to begin as part of a continuous on-site 
construction program:
    (A) Any placement, assembly, or installation of facilities or 
equipment; or
    (B) Significant site preparation work including clearing, 
excavation or removal of existing buildings, structures, or 
facilities which is necessary for the placement, assembly, or 
installation of new sources facilities or equipment; or
    (ii) Entered into a binding contractual obligation for the 
purchase of facilities or equipment which are intended to be used in 
its operation within a reasonable time. Options to purchase or 
contracts which can be terminated or modified without substantial 
loss, and contracts for feasibility engineering, and design studies 
do not constitute a contractual obligation under the paragraph.''

    EPA defines ``significant site preparation work'' as ``the process 
of clearing and preparing an area of the ocean floor for purposes of 
constructing or placing a development or production facility on or over 
the site'' (50 FR 34619). Therefore, development and production wells 
are new sources unless the site was cleared and prepared for the 
purposes of constructing or placing a development or production 
facility over that site before the promulgation of the effluent 
guideline for the offshore subcategory on March 4, 1993. Exploration 
activities are not considered significant site preparation work; 
therefore sites where exploration has occurred are not considered 
existing sources.
    EPA regulations also define the term ``site'' at 40 CFR 122.2 as 
``the land or water area where any facility or activity is physically 
located or conducted, including adjacent land used in connection with 
the facility or activity.'' EPA interprets the term ``water area'' to 
mean the ``specific geographical location where the exploration, 
development, or production activity is conducted, including the water 
column and ocean floor beneath activities.'' Thus, if a new platform is 
built at or moved from a different location, it will be considered a 
new source when placed at the new site where its oil and gas activities 
take place. Even if the platform is placed adjacent to an existing 
platform, the new platform will still be considered a ``new source'' 
occupying a ``new water'' area, and therefore, a ``new site'' (50 CFR 
34618).
(2) Existing Source General Permit
    All other facilities must obtain coverage under the existing source 
general permit. Existing sources are those facilities where significant 
site preparation work has occurred, or development and production 
activity has taken place, on or before March 4, 1993. These same 
facilities, however, would become new sources if they moved to a new 
water area to commence production or development activities. 
Exploratory activities require existing source general permit coverage.
(3) Application Procedures
    Permittees holding leases with operating facilities seaward of the 
200 water meter depth will be required to file a Notice of Intent, 
pursuant to 40 CFR Sec. 122.28(b)(2)(ii), to be covered by either the 
new source general permit or the existing source general permit, as 
applicable, within 60 days after publication of the final determination 
on this action. Such notice fulfills the permit application 
requirements under federal regulations. The permittee will be covered 
under the appropriate new general permit (existing or new source) upon 
receipt of notification of inclusion from the Director. A discharger 
having coverage under the old general permit who fails to timely submit 
such a notice is not authorized to discharge pursuant to 40 C.F.R. 
Sec. 122.28(b)(2), and is no longer covered under the old general 
permit.

E. Proposed Individual Permits

    All lease blocks with operating facilities traversed by or 
shoreward of the 200 meter isobath will be required to apply for and 
obtain individual permits in order to discharge into U.S. waters. No 
individual permits will be issued for non-operational leases until an 
exploration plan or development production plan has been prepared for 
submission to EPA. As with the general permits, there are two kinds of 
individual permits that will be issued.
    The first is an individual new source permit. The application 
requirements for new sources are set forth at 40 C.F.R. Sec. 122.21(k) 
and (l). Prior to issuance of such permits, the law requires that an 
Environmental Impact Statement (EIS) or Environmental Assessment (EA) 
be prepared. In order to allow EPA to conduct that review, the 
applicant must submit information as set forth in 40 C.F.R. 
Sec. 6.604(b). The RA will then make and publish a determination as to 
whether the facility seeking a permit is a new source.
    The second type of individual permit is for an existing source. 
Applicants

[[Page 64881]]

shall submit the information required by 40 C.F.R. Sec. 122.21(f), 
together with any additional information required to determine the 
appropriate permit limits based on ocean discharge criteria under 
Sec. 403 of the CWA.
    Permittees holding leases shoreward of the 200 meter depth will be 
given individual notice of the requirement to apply for an individual 
permit, a brief statement of the reasons therefore, a copy of the 
application form, and a deadline for filing the application. No 
applications will be accepted for non-operational or newly acquired 
leases until such time as an exploration plan or development production 
plan has been prepared for submission to EPA. All permittees with 
operational facilities, i.e., leases on which a discharge has taken 
place within 2 years of the effective date of the new general permits, 
who file a timely application will continue to be covered under the old 
general permit until a final action has been taken on the individual 
permit application.

F. Oil and Gas Activities in the Eastern Gulf of Mexico

    Historically, activity in the Eastern Gulf of Mexico has been less 
than that in areas west of Region's 4 jurisdiction. This was partly due 
to the demand for natural gas and economics associated with drilling 
costs necessary to reach the deep Norphlet and other producible 
commercial formations. As the price and demand for natural gas 
increases, along with the development of deep water drilling and 
producing technology, exploration activities in this area will 
continue. In 1991, an EPA Region 4 survey of the major oil companies 
revealed that fifty (50) wells had been drilled in the eastern Gulf and 
17 wells were producing. The producing wells were located either 
offshore Alabama and Mississippi, with no producing wells located in 
Federal waters offshore Florida. Additionally, the 1991 survey revealed 
that there are only three facilities discharging produced water. These 
facilities were located in the Mobile leasing area: one in Block 908 
discharging approximately 2 barrels of produced water per day (BPD); 
one in Block 990 discharging approximately 160 BPD; and one in Block 
821 discharging approximately 240 BPD. A map of the area revealed that 
these facilities are located in 15-20 meters of water. The survey 
revealed that there were no current producing wells seaward of water 
depths greater than 40 meters.

II. Description of Activity and Facilities Which Are Subject of 
Draft Permits

    The Oil and Gas Extraction Point Source Category (40 CFR 435--
Subpart A) includes facilities engaged in field exploration, 
development and well production and well treatment. Exploration 
facilities are fixed or mobile structures engaged in the drilling of 
wells to determine the nature of potential hydrocarbon reservoirs. A 
development facility is any fixed or mobile structure engaged in the 
drilling and completion of productive wells, which may occur prior to, 
or simultaneously with production operations. Production Facilities are 
fixed or mobile structures engaged in well completion or used for 
active recovery of hydrocarbons from producing formations.

III. Nature of Discharges from Oil and Gas Operations and Effluent 
Limits

    The proposed general permits will authorize the following 
discharges to occur in water depths seaward of the 200 meter water 
depth: drilling mud; drill cutting; produced water; well treatment 
fluids; workover fluids; completion fluids; deck drainage, sanitary 
wastes; domestic wastes, desalinization unit discharges, blowout 
preventer fluid; fire control system test water; non-contact cooling 
water; uncontaminated ballast water; uncontaminated bilge water; excess 
cement slurry; and mud, cuttings and cement at the seafloor. The 
proposed permits will authorize discharges from facilities engaged in 
field exploration, development and well production and well treatment, 
for offshore operations for both existing and new sources occurring 
seaward of the 200 meter water depth.
    The effluent guidelines include Best Available Technology 
Economically Achievable (BAT) limitations for existing sources and New 
Source Performance Standards (NSPS) that are based on the best 
available demonstrated technology for new sources. New facilities have 
the opportunity to install the best and most efficient production 
processes and waste water treatment technologies. Therefore, Congress 
directed EPA to consider the best demonstrated process changes, in-
plant controls, and end-of-process control and treatment technologies 
that reduce pollution to the maximum extent feasible for implementation 
by new sources.
    Upon its issuance in 1986, the existing general permit was 
judicially challenged by various parties in Natural Resources Defense 
Council v. EPA, 863 F.2d 1420 (9th Cir. 1988). Although the Court 
affirmed EPA's permit decisions on most of the issues litigated, the 
Court (1) invalidated the provisions that allowed for case-by-case 
variances from toxicity limitations under the permit's alternate 
toxicity request provisions, and (2) held that EPA should have provided 
additional consideration to requiring the use of ``clean'' barite in 
drilling fluids. Today's proposal responds to that decision.
    In the reissuance of these NPDES general permits, EPA Region 4 is 
responding to four legal or regulatory developments. The first legal 
development is the decision of the Ninth Circuit Court on challenges to 
the 1986 permit. All references to alternative toxicity limits are 
eliminated from this permit and the use of clean barite is required for 
drilling operations. The second regulatory development is the 
promulgation of final BAT and NSPS guidelines for the offshore 
subcategory (58 FR 12454). These NPDES general permits provide an 
explanation of how the determination of new sources will be made and 
incorporate the limitations and conditions set forth by the guidelines 
for offshore exploration, development, and production waste streams. 
The third and fourth regulatory developments are EPA's national policy 
on water quality-based permit limitations (49 FR 9016) and the issuance 
of pollution prevention regulations by the U.S. Coast Guard (33 CFR 
151). The national policy is a strategy to control pollutants beyond 
BAT in order to meet water quality standards by use of biological and 
chemical methods to address toxic and nonconventional pollutants. The 
U.S. Coast Guard regulations are incorporated into the permit to be 
consistent with international regulations for the disposal of food and 
incinerator wastes.
    Comments on these draft NPDES general permits need not be limited 
to those changes listed above. EPA is specifically soliciting 
information to further characterize present and anticipated activities 
on the eastern Gulf of Mexico OCS. EPA Region 4 may revise any 
provisions of the permit in response to public comments when it issues 
the final permit.

IV. Statutory Basis for Permit Conditions

    Sections 301(b), 304, 306, 307, 308, 401, 402, 403 and 501 of the 
Clean Water Act (The Federal Water Pollution Control Act Amendments of 
1972, as amended by the Clean Water Act of 1977 and the Water Quality 
Act of 1987), 33 U.S.C. 1311, 1314(b), (c) and

[[Page 64882]]

(e), 1316, 1317, 1318 and 1361; 86 Stat. 816, Pub. L. 92-500; 91 Stat. 
1567, Pub. L. 95-217; 101 Stat. 7 Pub. L. 100-4 (``the Act'' or CWA''), 
and the U.S. Coast Guard Regulations (33 CFR Part 151), provide the 
basis for the permit conditions contained in both the existing and new 
source general permits. The general requirements of these sections fall 
into three categories, which are described in sections A-C below.

A. Technology Bases

1. BPT Effluent Limitations
    The Act requires particular classes of industrial discharges to 
meet effluent limitations established by EPA. EPA promulgated effluent 
guidelines requiring Best Practicable Control Technology Currently 
Available (BPT) for the Offshore and Coastal Subcategories of the Oil 
and Gas Extraction Point Source Category (40 CFR Part 435, Subparts A 
and D) on April 13, 1979 (44 FR 22069).
    BPT effluent limitations guidelines require ``no discharge of free 
oil'' for discharges of deck drainage, drilling muds, drill cuttings, 
and well treatment fluids. This limitation requires that a discharge 
shall not cause a film or sheen upon, or discoloration on, the surface 
of the water or adjoining shorelines, or cause a sludge or emulsion to 
be deposited beneath the surface of the water or upon adjoining 
shorelines (40 CFR 435.11(d)). The BPT effluent limitation guideline 
for sanitary waste required that the concentration of chlorine be 
maintained as close to 1 mg/l as possible in discharges from facilities 
housing ten or more persons. No floating solids are allowed as a result 
of sanitary waste discharges from facilities continuously staffed by 
nine or fewer persons or intermittently staffed by any number. A ``no 
floating solids'' guideline also applies to domestic waste. BPT 
limitations on oil and grease in produced water allowed a daily maximum 
of 72 mg/l and a monthly average of 48 mg/l.
2. BAT and BCT Effluent Limitations and New Source Performance 
Standards
    As of March 31, 1989, all permits are required by section 301(b)(2) 
of the Act to contain effluent limitations for all categories and 
classes of point sources which: (1) Control toxic pollutants (40 CFR 
401.15) and nonconventional pollutants through the use of Best 
Available Technology Economically Achievable (BAT), and (2) represent 
Best Conventional Pollutant Control Technology (BCT). BCT effluent 
limitations apply to conventional pollutants (pH, BOD, oil and grease, 
suspended solids, and fecal coliform). In no case may BCT or BAT be 
less stringent than BPT.
    BAT and BCT effluent limitations guidelines and New Source 
Performance Standards (NSPS) for the Offshore Subcategory were proposed 
on August 26, 1985 (50 FR 34592) and signed on January 15, 1993 (58 FR 
12454, March 4, 1993). The new guidelines were established under the 
authority of sections 301(b), 304, 306, 307, 308, and 501 of the Act. 
The new guidelines were also established in response to a Consent 
Decree entered on April 5, 1990 (subsequently modified on May 28, 1993) 
in NRDC v. Reilly, D. D.C. No. 79-3442 (JHP) and are consistent with 
EPA's Effluent Guidelines Plan under section 304(m) of the CWA (57 FR 
41000, September 8, 1992). The proposed existing source general permit, 
incorporates BAT and BCT effluent limitations based upon the more 
stringent standards of the recently promulgated effluent guidelines or 
previous general permit existing requirements, and incorporate 
additional discharge restrictions based on environmental data. The 
proposed new source general permit is based on the recently promulgated 
NSPS based on the best available demonstrated technology, and 
incorporate additional discharge restrictions based on environmental 
data. Since the March 4, 1993 Offshore Effluent Guidelines and New 
Source Performance Standards basically set BAT limitations equal to 
NSPS, the proposed limitations, conditions, and monitoring requirements 
for today's proposed existing source general permit and new source 
general permit are identical.
3. Previous NPDES General Permit Limitations
    Per Section 402(o)(1) of the Clean Water Act and 40 CFR 122.44(l), 
when a permit is reissued the effluent limitations must be as stringent 
as the final effluent limitations of the previous permit unless the 
circumstances on which the previous permit was based have materially 
and substantially changed since the time the permit was issued. Part IV 
of the fact sheet discusses the new or changed permit limitations and 
conditions. All the limitations of the proposed NPDES general permit 
are as stringent or more stringent as the previous permit effluent 
limitations and conditions. The Alternative Toxicity Requests (ATRs) 
language of the previous permit, which allowed more toxic muds to be 
discharged after a case-by-case review, were invalidated by the Ninth 
Circuit Court; therefore, all references to the ATR process are deleted 
from this proposed NPDES general permit.

B. Ocean Discharge Criteria

    Section 403 of the Act requires that an NPDES permit for a 
discharge into marine waters located seaward of the inner boundary of 
the territorial seas (i.e., state and federal offshore waters) be 
issued in accordance with guidelines for determining the potential 
degradation of the marine environment. These guidelines, referred to as 
the Ocean Discharge Criteria (40 CFR Part 125, Subpart M), and section 
403 of the Act are intended to ``prevent unreasonable degradation of 
the marine environment and to authorize imposition of effluent 
limitations, including a prohibition of discharge, if necessary, to 
ensure this goal'' (49 FR 65942, October 3, 1980).
    If EPA determines that the discharge will cause unreasonable 
degradation, an NPDES permit will not be issued. If a definitive 
determination of no unreasonable degradation cannot be made because of 
insufficient information, EPA must then determine whether a discharge 
will cause irreparable harm to the marine environment and whether there 
are reasonable alternatives to on-site disposal. To assess the 
probability of irreparable harm, EPA is required to make a 
determination that the discharger, operating under appropriate permit 
conditions, will not cause permanent and significant harm to the 
environment during a monitoring period in which additional information 
is gathered. If data gathered through monitoring indicate that 
continued discharge may cause unreasonable degradation, the discharge 
shall be halted or additional permit limitations established.
    A preliminary Ocean Discharge Criteria Evaluation has been drafted. 
Region 4 has determined that discharges occurring under the proposed 
NPDES general permits, incorporating appropriate effluent limits and 
monitoring requirements, will not cause unreasonable degradation for 
existing and new source dischargers occurring in areas seaward of the 
200-meter water depth.

C. Section 308 of the Clean Water Act

    Under section 308 of the Act and 40 CFR 122.44(i), the Director 
must require a discharger to conduct monitoring to determine compliance 
with effluent limitations and to assist in the development of effluent 
limitations. EPA has included several monitoring requirements in the 
permit, as listed in

[[Page 64883]]

the table in section VI.A of this fact sheet.

V. Summary of New or Changed Permit Limitations and Conditions

    The following discussion is intended to provide a summary of the 
parts of the proposed permit which are substantively different from the 
1986 permit. For a detailed discussion of requirements and their bases, 
please refer to Section VI of this fact sheet. Many of the new and 
changed requirements result from promulgation of the final Effluent 
Limitations Guidelines and New Source Performance Standards for the 
Offshore Subcategory in March, 1993 (see 40 CFR Part 435, Subpart A).

A. Alternative Toxicity Requests

    The existing OCS general permit contains a general toxicity 
limitation on drilling fluids, prohibiting the discharge of fluids 
having an aquatic toxicity LC50 value of less than 30,000 ppm of the 
suspended particulate phase (SPP). Because the Regions believed that 
some specific drilling operations might require the limited use of more 
toxic drilling fluids, the permit also contained a procedure under 
which an operator could submit an alternative toxicity request (ATR) 
for approval by the Region. Region 4 did not approve any ATRs under the 
existing general permit. Upon review, the Ninth Circuit Court 
invalidated the ATR provisions of the current permit. Therefore, all 
references to the ATR process are deleted from both proposed NPDES 
general permits, making it consistent with the Court's decision.

B. Cadmium and Mercury in Barite

    EPA Region 4 is implementing the selected option of the BAT/NSPS 
effluent guidelines by limiting the amount of cadmium (Cd) and mercury 
(Hg) discharged in drilling fluids to 3 mg of Cd/kg and 1 mg of Hg/kg 
(dry weight) in the source barite used in drilling fluids. This 
limitation also is consistent with the Ninth Circuit Court's decision 
that operators should be required to use the cleanest source of barite 
available. The limitations and monitoring requirements for cadmium and 
mercury are the same for both the existing source and new source 
general permits.
    The toxic pollutants cadmium and mercury are found in barite which 
is added to drilling fluids as a weighting agent. Different types of 
barite deposits contain varying concentrations of toxic pollutants, 
with bedded deposits (referred to as ``clean'') containing the lowest 
metal levels, while vein deposits have much higher concentrations of 
trace metals. The Agency, when the OCS Gulf of Mexico general permit 
was first issued, decided not to impose limits on cadmium and mercury 
because of incomplete information on the availability of clean barite 
for all Gulf operations. However, the Ninth Circuit Court held invalid 
the Agency's decision not to impose any limitations on cadmium and 
mercury in discharged drilling fluids and stated that ``EPA should 
provide in the Gulf of Mexico permit, as it did in the Alaska permit, 
that clean barite should be used as long as it is available.'' The BAT/
NSPS limitations of this in both the existing source and new source 
general permit are consistent with that decision.
    A representative sample of the stock barite shall be monitored and 
reported once for each well or once for each additional supply of 
barite received while drilling a well. If subsequent wells are drilled 
at a site, new analyses are not required for each well if no new 
supplies of barite are received since the previous analysis.
    The results for total mercury and cadmium shall be reported on the 
monthly Discharge Monitoring Report (DMR) for each well drilled. If a 
previous analysis is used in subsequent months or for subsequent wells, 
the results of that analysis should be reported on the DMRs for the 
later months and wells. If the supplier of the barite provides the 
analysis to the operator, the concentration shall be reported on the 
DMR with an indication that the information was provided by the 
supplier. All reported analyses, whether performed by the permittee or 
the supplier of the barite, shall be conducted by absorption 
spectrophotometry (see 40 CFR Part 136, flame and flameless AAS) and 
results expressed as mg/kg (dry weight) of barite.

C. New Sources Performance Standards (NSPS)

    NSPS have been added to operations previously defined as new 
sources in the fact sheet. In accordance with 58 FR 12456 of March 4, 
1993, NSPS are based on the best available demonstrated technology. New 
plants have the opportunity to install the best and most efficient 
production processes and wastewater treatment technologies. Therefore, 
Congress directed EPA to consider the best demonstrated process 
changes, in-plant controls and treatment technologies that reduce 
pollution to the maximum extent feasible. In addition, in establishing 
NSPS, EPA is required to take into consideration the cost of achieving 
the effluent reduction and any non-water impacts and energy 
requirements.

D. Free Oil

    The existing NPDES general permit requires operators to use the 
visual sheen test to monitor for free oil on the surface of the 
receiving water when discharging muds and cuttings. This method can be 
used only during daylight when weather and sea conditions are such that 
observation of a sheen is possible. At all other times, discharge is 
permitted provided that the operator used an alternate test, the static 
(laboratory) sheen test, for monitoring for free oil. However, BAT and 
NSPS effluent guidelines require the use of the static sheen test for 
monitoring free oil at all times for discharges of muds and cuttings to 
offshore waters. In these proposed NPDES general permits, Region 4 is 
implementing the final effluent guidelines by requiring the static 
sheen test as the monitoring requirement for detecting free oil in 
drilling fluid and cuttings. The Region is requiring that this same 
method be used for well treatment, completion, and workover fluid 
discharges as well. In accordance with the final effluent guidelines, 
free oil from deck drainage will continue to be monitored as in the 
existing general permit by use of the visual sheen test. The Region 
feels that the static sheen test is the appropriate test method for the 
eastern Gulf of Mexico. Because the test is conducted prior to 
discharge, it allows the operator to avoid potential costly violations 
and affords more protection to the environment by requiring compliance 
monitoring before the discharge has occurred. The test is to be 
conducted in accordance with the methodology in the final effluent 
guidelines (58 FR 12506; see permit Part IV.A.3). The number of times 
that a sheen is observed shall be reported on the monthly DMR.

E. Produced Sand

    The existing NPDES general permit requires operators to use the 
visual sheen test to monitor for free oil on the surface of the 
receiving water when discharging produced sand. This method can be used 
only during daylight when weather and sea conditions are such that 
observation of a sheen in the vicinity of the discharge is possible. 
The final BAT and NSPS effluent guidelines for the offshore subcategory 
prohibit the discharge of produced sand. EPA did not determine that the 
prohibition is the ``best available'' or ``best demonstrated'' 
technology. However, onshore disposal is widely practiced throughout 
the industry to meet the no free oil

[[Page 64884]]

limitations either due to economics (cost of onsite washing is 
comparable to cost of onshore disposal), logistic considerations 
(scheduling or space requirements), or because of the inability to 
reliably meet the no free oil limitation even after washing. Region 4 
is implementing the final guidelines by prohibiting the discharge of 
produced sand under both general permits.

F. Produced Water

    The existing NPDES general permit established an effluent oil and 
grease limit for produced water of 48 mg/l monthly average and 72 mg/l 
daily maximum. The final effluent guidelines have established BAT and 
NSPS oil and grease limitations for produced water discharges of 29 mg/
l monthly average and 42 mg/l daily maximum. These limitations are 
based on the use of gas flotation treatment technology which is 
determined to be the best available technology economically achievable 
for the offshore subcategory. Region 4 is implementing these 
limitations in both NPDES general permits for the eastern Gulf of 
Mexico OCS. Monitoring methods for this limitation are the same as 
under the existing permit. Both the highest daily maximum concentration 
and the monthly average concentration are reported on the monthly DMR.

G. Diesel Oil Prohibition

    The existing OCS general permit contains provisions that 
established the Diesel Pill Monitoring Program (DPMP), a 15-month study 
to determine whether a diesel pill added to the mud system to free 
stuck pipe could effectively be removed from a mud system after use. 
Under the terms of the permit, the program was to last for one year 
with a possible extension of up to one additional year. At the end of 
the first year, EPA concluded that the DPMP had essentially reached its 
limit for gathering data necessary for evaluating that issue, but found 
some merit in extending the program for an additional 3-month period, 
ending September 30, 1987.
    After the DPMP had expired, the existing general permit prohibited 
the discharge of drilling fluids containing diesel oil unless: (1) the 
diesel oil was added as a pill in an effort to free stuck pipe, (2) the 
pill and 50-barrel buffers on either side of the pill were removed from 
the drilling fluid system, (3) the remaining fluid to be discharged met 
the 30,000 ppm LC50 toxicity limitation, and (4) the discharge of the 
remaining fluid caused no visible sheen on the surface of the receiving 
water. Data collected under the DPMP showed that diesel could not 
effectively be removed from a drilling fluids system after use of a 
pill. A substantial amount of diesel oil remains in the drilling fluids 
system even after the pill and 100 barrels of drilling fluids system 
are removed. Therefore, the proposed permit no longer allows the 
discharge of drilling fluids to which a diesel pill has been added, 
even when the pill and a 50-barrel buffer on either side are removed 
from the system. Under the proposed reissuance, all references to the 
DPMP are deleted from the permit and discharge of muds to which diesel 
oil has been added is prohibited. However, both the proposed NPDES 
existing source general permit and NSPS general permit would allow the 
discharge of drilling fluids where non-diesel oils and mineral oils 
have been introduced to the mud system while drilling, provided that 
the mud system meets the toxicity and free oil limitations before 
discharge.

H. Water Quality-based Effluent Limitations and Conditions

    The CWA states ``* * * it is the national policy that the discharge 
of toxic pollutants in toxic amounts be prohibited * * *.'' To ensure 
that the CWA's prohibitions on toxic discharges are met, EPA has issued 
a ``Policy for the Development of Water Quality-Based Permit 
Limitations for Toxic Pollutants'' (49 FR 9016; March 9, 1984). This 
national policy states that an ``integrated strategy consisting of both 
biological and chemical methods to address toxic and nonconventional 
pollutants'' will be used to control pollutants beyond BAT. For NPDES 
permits, these strategies include numerical limits for toxic pollutants 
to assure compliance with state standards and use of biological 
techniques and available data on chemical effects to assess toxicity 
impacts and human health hazards based on the general standard of ``no 
toxic materials in toxic amounts.''
    Based on available data, EPA has determined that there are 
pollutants present in produced water discharges that have the potential 
to cause toxic conditions in the receiving water or sediment in 
violation of Section 101(a)(3) of the CWA. Whole effluent biomonitoring 
is the most direct measure of potential toxic effects that incorporates 
the effects of synergism of effluent components. It is the national 
policy of EPA to use toxicity tests to evaluate the toxic effects of a 
discharge upon a receiving water (49 FR 9016, March 9, 1984). This 
proposed permit establishes effluent limitations on the whole effluent 
toxicity of produced water. Both the daily average and the monthly 
minimum toxicity (96-hour LC50) value shall not be less than the 
limiting permissible concentration at the edge of the mixing zone as 
defined in the Ocean Discharge Criteria (40 CFR 125). The Ocean 
Discharge Criteria incorporates the limiting permissible concentration 
definition of the Ocean Dumping Criteria, which is ``0.01 of a 
concentration shown to be acutely toxic to appropriate sensitive marine 
organisms in a bioassay'' (40 CFR 227.27). The mixing zone is defined 
under the Ocean Discharge Criteria (40 CFR 125.121(c)) as the zone 
extending from the sea's surface to the seabed and extending 100 meters 
in all directions from the discharge point. Therefore, the toxicity 
limitation of these permits require that the discharged effluent meet a 
toxicity limitation of an LC50 greater than the effluent concentration 
at the edge of the mixing zone times 0.01. The method for determining 
this toxicity limitation on a case-by-case basis is described below.

I. Aquatic Toxicity Limits and Testing Requirements for Produced Water

    For produced water discharges, the Region is using a discharge 
model to predict the effluent concentration that will occur at the edge 
of a 100-meter mixing zone in order to calculate site-specific toxicity 
limitations. The model will use parameters provided by the operator 
(maximum discharge rate, water depth, discharge pipe diameter, and 
discharge pipe orientation) as input. All other input parameters are 
based on available data for the eastern Gulf of Mexico. Given these 
parameters, the Region will calculate a toxicity limitation for each 
facility before discharges may occur. The methodology for determining 
the toxicity limitation for produced water, including derivation of the 
input parameters, is detailed below.
    Because all future site-specific limitations cannot be anticipated 
and commented on at this time, the Region is proposing the method by 
which the toxicity limitations will be calculated. As part of this 
method, the Region is establishing certain parameters of the variables 
in the derivation as constant. These variables, or model input 
parameters are discussed below. The Region solicits comments at this 
time on the methodology for determining the effluent limitation and on 
the selected input parameters. The Region will not be publicly noticing 
all future produced water toxicity limitation determinations for the 
duration of this permit.
    To establish a facility's produced water toxicity limit, an 
operator must submit the information requested at Appendix A of the 
permit. The

[[Page 64885]]

necessary information for input in the CORMIX model consists of: 
maximum discharge rate, minimum receiving water depth, discharge pipe 
location (depth and orientation with respect to the seafloor), and 
discharge pipe opening diameter. Parameters that are proposed to remain 
constant for CORMIX input include effluent density, ambient current 
speed, and the water column density profile. The information will be 
used by the Region as input for the CORMIX expert system (v. 1.4; 
Doneker and Jirka, 1990) to determine the projected effluent 
concentration at the edge of the mixing zone in order to calculate the 
toxicity limitation. Each month, the operator is required to 
demonstrate compliance with this toxicity limitation by conducting 
toxicity tests using Mysidopsis bahia and sheepshead minnows to 
determine the 96-hour LC50s.
    The derivation/selection of the proposed constant parameters is 
discussed below. The effluent density was determined from temperature 
and salinity data submitted to the Louisiana Department of 
Environmental Quality (DEQ) for produced water discharges to state 
waters (Avanti Corporation, 1992). A density of 1,070.2 kg/m3 
represents a produced water with a salinity of 100 ppt (approximately 
the lower 33rd percentile of all DEQ data) and a temperature of 105 
deg.F (approximately the upper 90th percentile of the DEQ data).
    The current speed of 4 cm/sec represents the median of data 
collected offshore Alabama using a current meter placed at a 10 meter 
water depth in 30 meters of water (Texas A&M, 1991).
    The water column density profile is based on data reported for 
offshore Alabama in Temple et al. (1977). Temperature and salinity data 
for the 7- and 14-meter contours were used to determine the average 
surface density and the average density gradient. The average surface 
density reported for the monitoring year was 1,023 kg/m3 and the 
average density gradient was 0.163 kg/m3/m. For each discharge 
modeled, the average surface density is used with a bottom density 
calculated as: [1,023 + (water depth  x  0.163)].
    Due to limitations of the model with respect to allowable discharge 
pipe orientation, CORMIX is used with an inverted density profile and 
run as a mirror image of actual discharge scenarios. This inversion 
method, described in the Ocean Discharge Criteria Evaluation (Avanti 
Corp., 1993a), reverses the actual scenario of a dense discharge from 
the surface to a scenario of a buoyant discharge from the bottom. All 
density differentials are held constant.
    Also, although CORMIX was determined to be the best model available 
to predict discharges for OCS waters (LimnoTech and Wright, 1993), it 
does underestimate far-field dilutions (Wright, 1993). In applying the 
model to this permit, the Region is using an alternate method to 
calculate the far-field dilution (the dilution that occurs after 
initial mixing). For discharges that do not impact the bottom, Brook's 
4/3 power law is used to determine the effluent dilution at the edge of 
the mixing zone using input from CORMIX initial mixing projections.
    The resulting projected effluent concentration at 100 meters is 
used by EPA to calculate the toxicity limitation (0.01  x  effluent 
concentration = minimum LC50 limitation) for the outfall modeled. This 
ensures that the discharge will not be acutely toxic beyond the 
prescribed mixing zone. For example, using this methodology, for the 
three outfalls currently discharging in the Mobile area, CORMIX (using 
the 4/3 power law) projects dilutions of 83,721 for Block 908, 4,943 
for Block 990, and 3,631 for Block 821. These dilutions result in 
respective toxicity limitations of 1,200 ppm effluent; 20,000 ppm 
effluent; and 27,500 ppm effluent. These limitations are minimum LC50 
values for 96-hour tests. Other potential produced water discharges 
occurring in the Gulf of Mexico would be subject to this produced water 
toxicity limitation and will be determined upon initiation of a 
produced water discharge and receipt of data requested by EPA in 
Appendix A of the permit.
    The testing protocols for determining the 96-hour LC50s are 
provided in ``Methods for Measuring the Acute Toxicity of Effluents to 
Freshwater and Marine Organisms'' (EPA/600/4-85/013 or the most recent 
update). The test must be conducted using Mysidopsis bahia and 
sheepshead minnows (Cyprinodon variegatus). The permittee (or contract 
laboratory) shall prepare and submit a full report of the results 
according to the Report Preparation Section of the EPA methods manual. 
The original reports shall be retained for three (3) years pursuant to 
the provisions of part II.C.5 of the permit. The LC50s must be reported 
monthly, accompanied by a copy of the full laboratory report.
    Although the produced water itself may not greatly vary in quality 
on the short term, many toxic chemicals such as biocides, corrosion 
inhibitors, pipe descalers, and paraffin inhibitors are discharged in 
produced waters and may affect the toxicity. The proposed permits 
require operators to collect samples that are representative of the 
discharge when these chemicals are being used. Logistically it may be 
difficult for operators covered under these permits to collect and ship 
additional effluent samples to be used for replacement water during the 
biomonitoring test, so the proposed permits allow the permittees to 
collect only one effluent sample to be used for all replicates in the 
biomonitoring test. The proposed permits also allow operators to use 
synthetic dilution water to minimize logistical and transportation 
problems associated with sample collection.

J. Discharge Prohibition In Vicinity of Areas of Biological Concern

    The NPDES General permit prohibits the discharges of drilling 
fluids, drill cuttings and produced waters within 1000 meters from the 
edge of an area of biological concern. The 1000 meter minimum distance 
for discharge near areas of biological concern and no activity areas is 
based on environmental study data that demonstrate the potential for 
acute and chronic biological and ecological impacts due to exposure to 
drilling fluids and produced water discharges at distances in the 1000-
2000 meter range. Environmental studies consistently and conclusively 
demonstrate significant chemical and biological changes from drilling 
fluids and cuttings discharges at distances within 500 meters and 2000-
3000 meters for frequent chemical occasional biological changes. 
Chemical and biological impacts as a result of produced water 
discharges are greatest in the 100-300 meter range and elevations of 
chemical contaminants have been detected in the 1000-2000 meter range.

K. Rubbish, Trash, and Other Refuse (MARPOL)

    Under Annex V to the International Convention for the Prevention of 
Pollution from Ships, 1973 (MARPOL 73/78), the U.S. Coast Guard (USCG) 
issued regulations on the disposal of domestic waste from all fixed or 
floating offshore platforms and vessels engaged in exploration or 
exploitation of seabed mineral resources (33 CFR 151). As specified by 
33 U.S.C. 1901, those regulations apply to all navigable waters of the 
U.S. (including the entire Gulf of Mexico), and are included in both 
the existing source general permit and the new source general permit.
    As proposed, these permits prohibit the discharge of ``garbage,'' 
including food wastes, from facilities located within 12 nautical miles 
from nearest

[[Page 64886]]

land. Comminuted food waste that is able to pass through a screen with 
a mesh size no larger than 25 mm (approximately 1 inch) may be 
discharged 12 or more nautical miles from the nearest land. 
Incineration ash and non-plastic clinkers that can pass through a 25 mm 
mesh screen may be discharged beyond 3 nautical miles from nearest 
land. Otherwise ash and non-plastic clinkers may be discharged only 
beyond 12 nautical miles from nearest land.
    Under these general permits, these limitations, which are already 
effective under the USCG regulations, will be incorporated for 
consistency purposes. Because graywater discharges from dishwater, 
showers, baths, laundries, and washbasins are not subject to these USCG 
regulations, they will remain subject to the same requirements for 
domestic waste as under the expired OCS general permit.

L. 24-Hour Reporting Requirement

    The Region is proposing to clarify several specific situations 
where discharges occur that require oral reporting under the 24-hour 
reporting requirement. They include: the discharge of 1 barrel or more 
of oil from any permitted waste stream (this does not include spills 
reported to the National Response Center as regulated under Section 311 
of the Clean Water Act), the discharge of muds or cuttings which do not 
meet the 30,000 ppm toxicity limitation, and any discharge of oil-based 
muds or cuttings. Under the proposed permits, a permittee must verbally 
notify the Regional office within 24 hours of the time at which the 
permittee becomes aware of the discharge. A written submission must 
also be provided within 5 days of the time the permittee becomes aware 
of the circumstances. The written submission must contain a description 
of the noncompliance and its cause; the period of noncompliance, 
including exact dates and times; and if the noncompliance has not been 
corrected, the anticipated time it is expected to continue; and steps 
taken or planned to reduce, eliminate, and prevent reoccurrence of the 
noncompliance. The Regional Administrator may waive the written report 
on a case-by-case basis if the oral report has been received within 24 
hours. The 24-hour reporting number for Region 4 is located in Part 
II.D.7 of the permit.

M. Reopener Clause

    These permits shall be modified, or alternately, revoked and 
reissued to comply with any effluent standard or limitation, or sludge 
disposal requirement issued or approved under Sections 301(b)(2) (C) 
and (D), 307(a)(2), and 405(d)(2)(D) of the Clean Water Act, as 
amended, if the effluent standard or limitation, or sludge disposal 
requirement so issued or approved:
    a. Contains different conditions or is otherwise more stringent 
than any condition in the permit; or
    b. Controls any pollutant or disposal method not addressed in the 
permit.
    The permits as modified or reissued under this paragraph shall also 
contain any other requirements of the Act then applicable.
    Further, the RA may at anytime require a general permit holder to 
apply for an individual permit, as set forth in 40 CFR Section 
122.28(b)(3).

N. Clarifications

    The Region is taking this opportunity to clarify definitions, end 
of well sampling requirements, and the visual and static sheen tests. 
These clarifications are not new definitions; they are further 
clarifications of the Agency's original intent of their application.
Boiler blowdown
    Existing: Discharges from boilers necessary to minimize solids 
build-up in the boilers.
    Clarification: Discharges from boilers necessary to minimize solids 
build-up in the boilers, including vents from boilers and other heating 
systems.
Completion fluids
    Existing: Any fluids used in a newly drilled well to allow safe 
preparation of the well for production.
    Clarification: Salt solutions, weighted brines, polymers and 
various additives used to prevent damage to the wellbore during 
operations which prepare the drilled well for hydrocarbon production. 
These fluids prevent solid loss, prepare a well for production, provide 
hydrostatic control and prevent formation damage.
Deck drainage
    Existing: All waste resulting from platform washings, deck 
washings, and runoff from curbs, gutters, and drains, including drip 
pans and wash areas.
    Clarification: All waste resulting from platform washings, deck 
washings, work area spills, rainwater, and runoff from curbs, gutters, 
and drains, including drip pans and work areas.
Domestic waste
    Existing: Discharges from galleys, sinks, showers, and laundries 
only.
    Clarification: Discharges from galleys, sinks, showers, safety 
showers, eye wash stations, and laundries.
Muds, cuttings, and cement at the seafloor
    Existing: Discharges that occur at the seafloor prior to 
installation of the marine riser.
    Clarification: Discharges that occur at the seafloor prior to 
installation of the marine riser and during marine riser disconnect, 
well abandonment and plugging operations.
Produced sand
    Existing: Sand and other solids removed from the produced waters.
    Clarification: Slurried particles used in hydraulic fracturing, the 
accumulated formation sands and scales particles generated during 
production. Produced sand also includes desander discharge from the 
produced water waste stream and blowdown of the water phase from 
produced water treating systems.
Produced water
    Existing: Water and particulate matter associated with oil and gas 
producing formations.
    Clarification: Water (brine) brought up from the hydrocarbon-
bearing strata during the extraction of oil and gas, and can include 
formation water, injection water, and any chemicals added downhole or 
during the oil/water separation process.
Well treatment fluids
    Existing: Any fluid used to enhance production by physically 
altering oil-bearing strata after a well has been drilled.
    Clarification: Any fluid used to restore or improve productivity by 
chemically or physically altering hydrocarbon-bearing strata after a 
well has been drilled. These fluids move into the formation and return 
to the surface as a slug with the produced water. Stimulation fluids 
include substances such as acids, solvents, and propping agents.
Workover fluids
    Existing: Any fluid used in a producing well to allow safe repair 
and maintenance or abandonment procedures.
    Clarification: Salt solutions, weighted brines, polymers and other 
specialty additives used in a producing well to allow safe repair and 
maintenance or abandonment procedures. These fluids prevent solid loss, 
prepare a well for production, provide hydrostatic control and prevent 
formation damage. Packer fluids, low solids fluids between the packer, 
production string and well casing, are considered to be workover fluids 
and must meet only the effluent requirements imposed on workover

[[Page 64887]]

fluids. High-solids drilling fluids used during workover operations are 
not considered workover fluids by definition, and therefore must meet 
drilling fluid effluent limitations before discharge may occur.
End of Well Sample
    Existing: The end of well definition in the existing Gulf of Mexico 
OCS general permit requires that a sample be taken at the point when 
total well depth is reached. The original intent of the end of well 
sample was to characterize the mud system just prior to being 
discharged. It is now known that several weeks may pass after the well 
has reached maximum drilled depth before the actual discharge of the 
mud system. Formation evaluation (running logs, drill stem tests, etc.) 
and completion operations such as setting pipe may all occur after 
reaching total drilled depth while still using the same drilling fluid 
used to drill the well. For this reason, the end of well sample 
definition is being changed to read as below:
    Changed: The sample taken no more than 48 hours prior to bulk 
discharge and after any additives are introduced in order to best 
characterize the mud systems being discharged.
    The type of sample required is a grab sample, taken from beneath 
the shale shaker, or if there are no returns across the shaker, then 
the sample must be from a location that is characteristic of the 
overall mud system to be discharged. An end of well sample, as a daily 
minimum, must be taken no more than 48 hours prior to bulk discharge. 
If any additional additives are introduced to the mud system during 
this 48-hour period, then a new sample must be collected, analyzed, and 
will be recorded as the end of well sample. The purpose of this sample 
is to accurately characterize the mud system that is being discharged.
Static sheen test
    The static sheen test may be used as an alternative method to 
detect free oil in place of the visual sheen test at night or when 
atmospheric or surface conditions prohibit the observer from detecting 
a sheen (e.g., rough seas, rainy weather, etc.). The test shall be 
conducted in accordance with the methodology presented in the permit at 
Part IV.A.3.
Visual sheen test
    The visual sheen test procedure is being added to the text in order 
to clarify the test methodology: The visual sheen test is used to 
detect free oil by observing the surface of the receiving water for the 
presence of a sheen while discharging. A sheen is defined as a 
``silvery'' or ``metallic'' sheen, gloss, or increased reflectivity; 
visual color; iridescence; or oil slick on the surface. The operator 
must conduct a visual sheen test only at times when a sheen could be 
observed. This restriction eliminates observations at night or when 
atmospheric or surface conditions prohibit the observer from detecting 
a sheen (e.g., during rain or rough seas, etc.). Certain discharges can 
only occur if a visual sheen test can be conducted.
    The observer must be positioned on the rig or platform, relative to 
both the discharge point and current flow at the time of discharge, 
such that the observer can detect a sheen should it surface down 
current from the discharge. For discharges that have been occurring for 
at least 15 minutes previously, observations may be made any time 
thereafter. For discharges of less than 15 minutes duration, 
observations must be made both during discharge and 5 minutes after 
discharge has ceased.

VI. Permit Conditions

A. Determination of Discharge Conditions

    The determination of appropriate conditions for each discharge was 
accomplished through:
    (1) Consideration of technology-based effluent limitations to 
control conventional pollutants under BCT,
    (2) Consideration of technology-based effluent limitations to 
control toxic and nonconventional pollutants under BAT,
    (3) Consideration of technology-based effluent limitations to 
control toxic and nonconventional pollutants under NSPS,
    (4) Consideration of more stringent permit conditions of existing 
general permit in accordance with Section 402(o)(1) of the Clean Water 
Act.
    (5) Evaluation of the Ocean Discharge Criteria for discharges in 
the Offshore Subcategory (given conditions 1 thru 4 are in place).
    EPA first determines which technology-based limits are required and 
then evaluates the effluent quality expected to result from these 
controls. If water quality violations could occur as a result of 
discharge, EPA must include water quality-based limits in the permit. 
The permit limits will thus reflect whichever limits (technology-based 
or water quality-based) are most stringent. Finally, an Ocean Discharge 
Criteria Evaluation (ODCE) has been prepared to identify any additional 
impacts created by these proposed discharges.
    General area and depth related requirements and 403(c) flow rate 
requirements for are discussed in section VI.B. and VI.C of this fact 
sheet. For convenience, these conditions and the regulatory basis for 
each are cross-referenced by discharge in Table 2 below:

                                                     Table 2                                                    
----------------------------------------------------------------------------------------------------------------
     Discharge and permit                                                                                       
          conditions                  Statutory basis/existing sources            Statutory basis/new sources   
----------------------------------------------------------------------------------------------------------------
Drilling Muds & Cuttings:                                                                                       
    Flow Rate Limitations.....  Sec.  403...................................  Sec.  403                         
    Volume (bbl/day)..........  Sec.  308...................................  Sec.  308                         
    Toxicity of Drilling Muds.  BPJ/BAT.....................................  NSPS                              
    No Free Oil Discharge.....  BPT, BPJ/BCT, BPJ/BAT.......................  NSPS                              
    No Oil Based Fluids         BPT, BPJ/BCT, BPJ/BAT.......................  NSPS                              
     Discharge.                                                                                                 
    Mercury & Cadmium in        BAT.........................................  NSPS                              
     Barite.                                                                                                    
    > 200 meters--No            Sec.  403...................................  Sec.  403, EIS                    
     Unreasonable Degradation.                                                                                  
    > 1000 meters from Area of  Sec.  403...................................  Sec.  403                         
     Biological Concern--No                                                                                     
     Unreasonable Degradation.                                                                                  
Produced Water:                                                                                                 
    Monitor Flow (MGD)........  Sec.  308...................................  Sec.  308                         
    Oil & Grease..............  BCT, BAT....................................  NSPS                              
    Whole Effluent Toxicity     Water Quality Standards.....................  Water Quality Standards           
     (WET).                                                                                                     
    > 200 meters--No            Sec.  403...................................  Sec.  403, EIS                    
     Unreasonable Degradation.                                                                                  
    > 1000 meters from Area of  Sec.  403...................................  Sec.  403                         
     Biological Concern--No                                                                                     
     Unreasonable degradation.                                                                                  

[[Page 64888]]

                                                                                                                
Well Treatment, Completion, &                                                                                   
 Workover Fluids:                                                                                               
    Monitor Frequency/Flow      Sec.  308...................................  Sec.  308                         
     Rate.                                                                                                      
    No Free Oil...............  BPT, BCT....................................  NSPS                              
    Oil & Grease..............  BAT.........................................  NSPS                              
    > 200 meters--No            Sec.  403...................................  Sec.  403, EIS                    
     Unreasonable Degradation.                                                                                  
Deck Drainage:                                                                                                  
    Monitor Frequency/Flow      Sec.  308...................................  Sec.  308                         
     Rate.                                                                                                      
    No Free Oil...............  BPT, BCT, BAT...............................  NSPS                              
    > 200 meters--No            Sec.  403...................................  Sec.  403 , EIS                   
     Unreasonable Degradation.                                                                                  
Produced Sand:                                                                                                  
    No Discharge Allowed......  BCT, BAT....................................  NSPS                              
Sanitary Waste (manned by 10                                                                                    
 or more):                                                                                                      
    Residual Chlorine.........  BPT, BAT....................................  NSPS                              
    > 200 meters--No            Sec.  403...................................  Sec.  403 ,EIS                    
     Unreasonable Degradation.                                                                                  
Sanitary Waste (manned by 9 or                                                                                  
 less):                                                                                                         
    No Floating Solids........  BPT, BCT....................................  NSPS                              
    > 200 meters--No            Sec.  403...................................  Sec.  403, EIS                    
     Unreasonable Degradation.                                                                                  
Domestic Waste:                                                                                                 
    No Foam...................  BAT.........................................  NSPS                              
    No Floating Solids........  BCT/BAT.....................................  NSPS                              
    > 200 meters--No            Sec.  403...................................  Sec.  403, EIS                    
     Unreasonable Degradation.                                                                                  
Well Test Fluids:                                                                                               
    Monitor Frequency/Flow      Sec.  308...................................  Sec.  308                         
     Rate.                                                                                                      
    No Free Oil...............  BCT, BAT....................................  BCT, BAT                          
    > 200 meters--No            Sec.  403...................................  Sec.  403, EIS                    
     unreasonable Degradation.                                                                                  
Minor Wastes:                                                                                                   
    Desalination Unit                                                                                           
     Discharge,                                                                                                 
    Blow Out Preventer Fluids,                                                                                  
    Uncontaminated Ballast                                                                                      
     Water,                                                                                                     
    Muds Cuttings & Cement at                                                                                   
     Seafloor,                                                                                                  
    Uncontaminated Sea Water,                                                                                   
    Fire Test Water,                                                                                            
    Boiler Blowdown,                                                                                            
    Excess Cement Slurry,                                                                                       
    Diatomaceous Earth Filter                                                                                   
     Media,                                                                                                     
    Uncontaminated Fresh                                                                                        
     Water,                                                                                                     
    Noncontaminated Fresh                                                                                       
     Water                                                                                                      
    No Free Oil...............  BCT, BAT....................................  BCT, BAT                          
    > 200 meters--No            Sec.  403...................................  Sec.  403                         
     unreasonable degradation.                                                                                  
----------------------------------------------------------------------------------------------------------------

B. Area and Depth-Related Requirements

    The discharge restrictions and requirements listed below are 
necessary to ensure that unreasonable degradation of these areas will 
not occur as discussed above in part III.B. of this fact sheet (Ocean 
Discharge Criteria) and are largely unchanged from the 1986 permit to 
the proposed permit. Discharge within the area described below the 
26 deg. parallel is prohibited due to a order which establishes a 
moratorium on drilling activity on leases in that area.
    Pertaining to all discharges, these NPDES general permits only 
provide coverage for discharges occurring:

--In water depths greater than 200 meters (as measured from mean low 
water).
--For leases not under moratorium; which is currently areas above the 
26 deg. parallel.

C. Section 403(c) Requirements for Muds and Cuttings

    Flow rates: In addition to restrictions on all discharges imposed 
under section 403(c) of the Act and discussed in section III.B. of this 
fact sheet, muds and cuttings discharges are limited to the following 
maximum rates. These limitations are identical to those contained in 
the 1986 general permit. 1,000 bbl/hr on total muds and cuttings.
    This limit was established in the previous 1986 permit because 
reliable dispersion data are available only up to this discharge rate 
and because this rate did not represent any serious operational problem 
based on comments received from the industry and discharge monitoring 
reports.

VII. Other Legal Requirements

National Environmental Policy Act

    Under the direction of the National Environmental Policy Act 
(NEPA), EPA and MMS entered into a Memorandum of Understanding to 
coordinate efforts on environmental impact statements (EIS) for areas 
covered by new source performance standards before EPA issues final 
permits covering discharges. EPA has completed a draft EIS for this 
general permit and is accepting public comment on that document. A 
final EIS will be prepared before issuance of the final permit. EPA 
also will coordinate with MMS for complying with NEPA for specific new 
source (production) projects.

Oil Spill Requirements

    Section 311 of the Clean Water Act prohibits the discharge of oil 
and hazardous materials in harmful quantities. Routine discharges that 
are in compliance with NPDES permits are excluded from the provisions 
of section 311. However, the permits do not preclude the institution of 
legal action or relieve permittees from any responsibilities, 
liabilities, or penalties for other, unauthorized discharges of oil

[[Page 64889]]

and hazardous materials that are covered by section 311 of the Act.

Endangered Species Act

    The Endangered Species Act (ESA) allocates authority to, and 
administers requirements upon, federal agencies regarding endangered 
species of fish, wildlife, or plants that have been designated as 
critical. Its implementing regulations (50 CFR Part 402) require the RA 
to ensure, in consultation with the Secretaries of Interior and 
Commerce, that any action authorized, funded or carried out by EPA is 
not likely to jeopardize the continued existence of any endangered or 
threatened species or adversely affect its critical habitat (40 CFR 
122.49(c)). Implementing regulations for the ESA establish a process by 
which agencies consult with one another to ensure that issues and 
concerns of both the National Marine Fisheries Service (NMFS) and the 
U.S. Fish and Wildlife Service (USFWS) collectively are addressed. The 
NMFS and USFWS have responded to EPA's initiation of the coordination 
process under the regulations set forth by section 7 of the Endangered 
Species Act. The 36 species identified by NMFS and USFWS as threatened 
or endangered species within the permit coverage area have been 
assessed for potential effects from the activities covered by the 
proposed permit in a biological assessment incorporated in the Draft 
EIS. This biological assessment has been submitted to the NMFS and 
USFWS along with the proposed permit for consistency review and 
concurrence on the Region's finding of no adverse effect. The Region's 
finding is appended to the EIS.

Ocean Discharge Criteria Evaluation

    For discharges into waters located seaward of the inner boundary of 
the territorial seas, the Clean Water Act at section 403, requires that 
NPDES permits consider guidelines for determining the potential 
degradation of the marine environment. The guidelines, or Ocean 
Discharge Criteria (40 CFR part 125, subpart M), are intended to 
``prevent unreasonable degradation of the marine environment and to 
authorize imposition of effluent limitations, including a prohibition 
of discharge, if necessary, to ensure this goal'' (45 FR 65942, October 
3, 1980). After all available comments and information are reviewed, 
the final 403 determination will be made.
    A preliminary Ocean Discharge Criteria Evaluation (ODCE) 
determination of no unreasonable degradation has been made by Region 4 
based on an analysis by Avanti Corporation (1993a). The potential 
effects of discharges under the proposed permit limitations and 
conditions are assessed in this draft document available from Region 4. 
The ODCE states that, based on the available information, the permit 
limitations are sufficient to determine that no unreasonable 
degradation should result from the permitted discharges.

Coastal Zone Management Act

    The coverage area of the proposed general permit includes only 
Federal waters of the eastern Gulf of Mexico. However, the State waters 
of Florida, Alabama, and Mississippi are potentially affected by 
activities covered under the permit. Therefore, the coastal zone 
management plans of Florida, Alabama, and Mississippi have been 
reviewed for consistency and consultation with the states for 
consistency concurrence has been initiated. A consistency determination 
for each state and the proposed permit have been submitted for state 
review. The consistency determinations are appended to the EIS.

Marine Protection, Research, and Sanctuaries Act

    No marine sanctuaries as designated by the Marine Protection, 
Research, and Sanctuaries Act exist in the area to which the OCS permit 
applies.

Executive Order 12291

    The Office of Management and Budget has exempted this action from 
the review requirements of Executive Order 12291 pursuant to section 
8(b) of that order.

Paperwork Reduction Act

    The information collection required by these permits has been 
approved by the Office of Management and Budget (OMB) under the 
provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq., in 
submission made for the NPDES permit program and assigned OMB control 
numbers 2040-0086 (NPDES permit application) and 2040-0004 (discharge 
monitoring reports).
    All facilities affected by these permits must submit a notice of 
intent to be covered under the eastern Gulf of Mexico OCS general 
permit GMG280000. EPA estimates that it will take an affected facility 
three hours to prepare the request for coverage.
    All affected facilities will be required to submit discharge 
monitoring reports (DMRs). EPA estimated DMR burden for the existing 
permit to be 36 hours per facility per year. The DMR burden for these 
proposed permits is expected to increase slightly due to the additional 
reporting required for calculating the critical dilution for produced 
water discharges. While this permit requires some increased monitoring 
and reporting of that data, the DMR burden for the proposed permits is 
estimated to increase slightly and facilities affected by this permit 
reissuance were subject to similar information collection burdens under 
the existing Gulf of Mexico OCS general permit that this proposed 
reissuance will replace.

Regulatory Flexibility Act

    After review of the facts presented above, I hereby certify, 
pursuant to the provisions of 5 U.S.C. 605(b), that these proposed 
general permits will not have a significant impact on a substantial 
number of small entities. This certification is based on the fact that 
the vast majority of the parties regulated by this permit have greater 
than 500 employees and are not classified as small businesses under the 
Small Business Administration regulations established at 49 FR 5024 et 
seq. (February 9, 1984). For those operators having fewer than 500 
employees, this permit issuance will not have significant economic 
impact. These facilities are classified as Major Group 13--Oil and Gas 
Extraction SIC Crude Petroleum and Natural Gas.

Proposed Schedule for Permit Issuance

Draft Permit to Federal Register for Public Notice--December 6, 1996
Public Hearings dates and location
    --January 28, 1997--Biloxi, MS
    --January 29, 1997--Gulf Shores, Alabama
    --January 30, 1997--Pensacola, Florida
    --February 4, 1997--Tampa/St. Petersburg, Florida
Close Comment Period
    --February 14, 1997
Dated: [Signature date]
Regional Administrator
Regional Administrator, Region 4.

References

ASTM. 1990. Standard Guide for Collection, Storage, 
Characterization, and Manipulation of Sediments for Toxicological 
Testing. Under jurisdiction of ASTM Committee E-47 on Biological 
Effects and Environmental Fate. ASTM Designation E 1391-90.
ASTM. 1992. Standard Guide for Conducting 10-day Static Sediment 
Toxicity Tests with Marine and Estuarine Amphipods. Under 
jurisdiction of ASTM Committee E-47 on Biological Effects and 
Environmental Fate. ASTM Designation E 1367-92.

[[Page 64890]]

Avanti Corporation. 1992. Characterization of Data Collected from 
the Louisiana Department of Environmental Quality Permit Files for 
Development of Texas and Louisiana Coastal Subcategory NPDES General 
Permits. Submitted to EPA Region 6, Water Management Division.
Avanti Corporation. 1993a. Ocean Discharge Criteria Evaluation for 
the NPDES General Permit for the Eastern Gulf of Mexico - Draft. 
Submitted to U.S. EPA Region 4, Water Management Division.
Avanti Corporation. 1993b. Biological Assessment for the NPDES 
General Permit for Oil and Gas Exploration, Development, and 
Production Activities on the Eastern Gulf of Mexico OCS. Submitted 
to U.S. EPA Region 4, Water Management Division.
Doneker, R.L. and G.H. Jirka. 1990. Expert System for Hydrodynamic 
Mixing Zone Analysis of Conventional and Toxic Submerged Single Port 
Discharges (CORMIX1). Prepared by Cornell University for U.S. EPA, 
Environmental Research Laboratory, Athens, GA. EPA/600/3-90/012.
Gannett Fleming, Inc. 1995. Draft Supplemental Environmental Impact 
Statement For National Pollutant Discharge Elimination System 
Permitting For Gulf of Mexico Offshore Oil and Gas Extraction. EPA 
904/9-95-001A.
LimnoTech, Inc. and S. Wright. 1993. Recommendation of Specific 
Models to Evaluate Mixing Zone Impacts of Produced Water Discharges 
to the Western Gulf of Mexico Outer Continental Shelf. Prepared for 
U.S. EPA, Region 6.
MMS. 1992. Outer Continental Shelf Natural Gas and Oil Resource 
Management, Comprehensive Program 1992-1997, Proposed Final Summary 
and Decision. U.S. Department of the Interior, MMS, Washington, DC.
Temple, R.F., D.L. Harrington, and J.A. Martin. 1977. Monthly 
Temperature and Salinity Measurements of Continental Shelf Waters of 
the Northwestern Gulf of Mexico, 1963-1965. NOAA Tech. Rep. SSRF-
707. 29 pp.
Texas A&M University. 1991. Mississippi-Alabama Continental Shelf 
Ecosystem Study, Data Summary and Synthesis. Prepared for MMS Gulf 
of Mexico OCS Region. MMS 91-0064.
Wright, S.J. 1993. Analysis of CORMIX1 and UM/PLUMES Predictive 
Ability for Buoyant Jets in a Density-Stratified Flow. Prepared for 
U.S. EPA Office of Wastewater Enforcement and Compliance.

General Permit Table of Contents

Part I. Requirements for NPDES Permits
Section A. Permit Applicability and Coverage Conditions
    1. Operations Covered
    2. Operations Excluded
    3. General Permit Applicability
    4. Notification Requirements
    5. Termination of Operations
    6. Intent to be Covered by a Subsequent Permit
Section B. Effluent Limitations and Monitoring Requirements
    1. Drilling Fluids
    2. Drill Cuttings
    3. Produced Water
    4. Deck Drainage
    5. Produced Sand
    6. Well Treatment Fluids, Completion Fluids, and Workover Fluids
    7. Sanitary Waste (Facilities Continuously Manned by 10 or More 
Persons)
    8. Sanitary Waste (Facilities Continuously Manned by 9 or Fewer 
Persons or Intermittently by Any Number)
    9. Domestic Waste
    10. Miscellaneous Discharges (Desalination Unit Discharge, 
Blowout Preventer Fluid, Uncontaminated Ballast Water, 
Uncontaminated Bilge Water, Mud, Cuttings, and Cement at the 
Seafloor, Uncontaminated Seawater, Boiler Blowdown, Source Water and 
Sand, and Diatomaceous Earth Filter Media)
Section C. Other Discharge Limitations
    1. Floating Solids or Visible Foam
    2. Halogenated Phenol Compounds
    3. Dispersants, Surfactants, and Detergents
    4. Rubbish, Trash, and Other Refuse
    5. Areas of Biological Concern
Part II. Standard Conditions for NPDES Permits
Section A. Introduction and General Conditions
    1. Duty to Comply
    2. Penalties for Violations of Permit Conditions
    3. Duty to Mitigate
    4. Permit Flexibility
    5. Toxic Pollutants
    6. Civil and Criminal Liabilities
    7. Oil and Hazardous Substance Liability
    8. State Laws
    9. Property Rights
    10. Onshore or Offshore Construction
    11. Severability
    12. Duty to Provide Information
Section B. Proper Operation and Maintenance of Pollution Controls
    1. Proper Operation and Maintenance
    2. Need to Halt or Reduce not a Defense
    3. Bypass of Treatment Facilities
    4. Upset Conditions
    5. Removed Substances
Section C. Monitoring and Records
    1. Representative Sampling
    2. Discharge Rate/Flow Measurements
    3. Monitoring Procedures
    4. Penalties for Tampering
    5. Retention of Records
    6. Record Contents
    7. Inspection and Entry
Section D. Reporting Requirements
    1. Planned Changes
    2. Anticipated Noncompliance
    3. Transfers
    4. Monitoring Reports
    5. Additional Monitoring by the Permittee
    6. Averaging of Measurements
    7. Twenty-four Hour Reporting
    8. Other Noncompliance
    9. Other Information
    10. Changes in Discharges of Toxic Substances
    11. Duty to Reapply
    12. Signatory Requirements
    13. Availability of Reports
Part III. Monitoring Reports and Permit Modification
Section A. Monitoring Reports
Section B. Permit Modification
Part IV. Test Procedures and Definitions
Section A. Test Procedures
    1. Samples of Wastes
    2. Drilling Fluids Toxicity Test
    3. Static (Laboratory) Sheen Test
    4. Visual Sheen Test
    5. Produced Water Acute Toxicity Test
    6. Retort Test
Section B. Definitions
Table 2. Effluent Limitations, Prohibitions, and Monitoring 
Requirements for the Eastern Gulf of Mexico NPDES General Permit 
(Existing Sources)
Table 3. Effluent Limitations, Prohibitions, and Monitoring 
Requirements for the Eastern Gulf of Mexico NPDES General Permit 
(New Sources)
Appendix A
Table A-1. CORMIX1 Input Parameters for Toxicity Limitation 
Calculation

Authorization To Discharge Under the National Pollutant Discharge 
Elimination System

    In compliance with the Federal Water Pollution Control Act, as 
amended (33 U.S.C. 1251 et seq.), operators of lease blocks located in 
OCS Federal waters seaward of 200 meters with existing source or new 
source discharges originating from exploration or development and 
production operations are authorized to discharge to receiving waters 
in accordance with effluent limitations, monitoring requirements, and 
other conditions set forth in parts I, II, III, and IV hereof.
    Operators of operating facilities within the proposed NPDES general 
permit area must submit written notification to the Regional 
Administrator, prior to discharge, that they intend to be covered by 
either the existing source general permit or the new source general 
permit (See part I.A.3). Upon receipt of notification of inclusion by 
the Regional Administrator, owners or operators requesting coverage are 
authorized to discharge under either the existing source or new source 
general permit. Operators of lease blocks within the general permit 
area who fail to notify the Regional Administrator of intent to be 
covered by this general permit are not authorized under the general 
permit to discharge pollutants from their potential new or existing 
source facilities. This permit does not apply to non-operational 
leases, i.e., those on which no discharge has taken place in 2 years 
prior to the effective date of the new general permits. EPA will not 
accept Notice of Intents (NOI's) from such leases, and these general 
permits will not cover such leases. Non-operational leases will lose 
general

[[Page 64891]]

permit coverage on the effective date of these new general permits.
    This permit shall become effective at [time], Eastern Standard 
Time, on [Month, Day, 19  ]. Coverage under the old general permit 
shall terminate on the effective date of this permit, unless the owner/
operator submits a notice of intent (NOI) to be covered within 60 days 
thereafter, or an application for an individual permit within 120 days 
thereafter. If an NOI is filed, coverage under the old general permit 
terminates upon receipt of notification of inclusion by letter from the 
Director of the Water Management Division, Region 4. If a permit 
application is filed, the old general permit terminates when a final 
action is taken on the application for an individual permit.
    This permit and the authorization to discharge shall expire [time], 
Eastern Standard Time, on 5 years from date of issuance.

    Signed this [day] day of [month], Year.

Director, Water Management Division, EPA, Region 4.

Part I. Requirements for NPDES Permits

Section A. Permit Applicability and Coverage Conditions

1. Operations Covered
    These permits establish effluent limitations, prohibitions, 
reporting requirements, and other conditions for discharges from oil 
and gas facilities engaged in production, field exploration, drilling, 
well completion, and well treatment operations from potential new 
sources and existing sources.
    The permit coverage area includes Federal waters in the Gulf of 
Mexico seaward of the 200 meter water depth for offshore Mississippi, 
Alabama, and Florida. This permit only covers facilities located in and 
discharging to the Federal waters listed above and does not authorize 
discharges from facilities in or discharging to the territorial sea 
(within 3 miles of shore) of the Gulf coastal states or from facilities 
defined as ``coastal'' or ``onshore'' (see 40 CFR, part 435, subparts C 
and D).
2. Operations Excluded
    Any operator who seeks to discharge drill fluids, drill cuttings or 
produced water within 1000 meters of an area of biological concern is 
ineligible for coverage under these general permits and must apply for 
an individual permit.
    Any operator with leases occurring below the 26 deg. parallel which 
are currently under moratorium are excluded from inclusion under these 
general permits.
    No coverage will be extended under either of the new general 
permits to non-operational leases.
3. General Permit Applicability
    In accordance with 40 CFR 122.28(b)(3) and 122.28(c), the Regional 
Administrator may require any person authorized by this permit to apply 
for and obtain an individual NPDES permit when:

    (a) The discharge(s) is a significant contributor of pollution;
    (b) The discharger is not in compliance with the conditions of 
this permit;
    (c) A change has occurred in the availability of the 
demonstrated technology or practices for the control or abatement of 
pollutants applicable to the point sources;
    (d) Effluent limitation guidelines are promulgated for point 
sources covered by this permit;
    (e) A Water Quality Management Plan containing requirements 
applicable to such point source is approved;
    (f) It is determined that the facility is located in an area of 
biological concern.

    The Regional Administrator may require any operator authorized by 
this permit to apply for an individual NPDES permit only if the 
operator has been notified in writing that a permit application is 
required.
    Any operator authorized by this permit may request to be excluded 
from the coverage of this general permit by applying for an individual 
permit. The operator shall submit an application together with the 
reasons supporting the request to the Regional Administrator no later 
than 180 days before an activity is scheduled to commence on the lease 
block. When an individual NPDES permit is issued to an operator 
otherwise subject to this permit, the applicability of this permit to 
the owner or operator is automatically terminated on the effective date 
of the individual permit.
    A source excluded from coverage under this general permit solely 
because it already has an individual permit may request that its 
individual permit be revoked, and that it be covered by this general 
permit. Upon revocation of the individual permit, this general permit 
shall apply to the source after the notification of intent to be 
covered is filed (see I.A.4, below).
4. Notification Requirements (Existing Sources and New Sources)
    Written notification of intent (NOI) to be covered in accordance 
with the general permit requirements shall state whether the permittee 
is requesting coverage under the existing source general permit or new 
source general permit, and shall contain the following information:

    (1) the legal name and address of the owner or operator;
    (2) the facility name and location, including the lease block 
assigned by the Department of Interior, or if none, the name 
commonly assigned to the lease area;
    (3) the number and type of facilities and activity proposed 
within the lease block;
    (4) the waters into which the facility will be discharging;
    (5) the date on which the owner/operator commenced on-site 
construction, including:
    (a) any placement assembly or installation of facilities or 
equipment; or
    (b) the clearing, excavation or removal of existing structures 
or facilities;
    (6) the date on which the facility commenced exploration 
activities at the site;
    (7) the date on which the owner/operator entered into a binding 
contract for the purchase of facilities or equipment intended to be 
used in its operation within a reasonable time (if applicable);
    (8) the date on which the owner/operator commenced development; 
and
    (9) the date on which the owner/operator commenced production.
    (10) technical information on the characteristics of the sea 
bottom within 1000 meters of the discharge point.

    All notices of intent shall be signed in accordance with 40 CFR 
Sec. 122.22.
    EPA will act on the NOI in a reasonable period of time.
    For operating leases, the NOI shall be submitted within sixty (60) 
days after publication of the final determination on this action. Non-
operational facilities are not eligible for coverage under these new 
general permits. No NOI will be accepted from either a non-operational 
or newly acquired lease until such time as an exploration plan or 
development production plan has been prepared for submission to EPA. 
Operators obtaining coverage under the existing source general permit 
for exploration activities must send a new NOI for coverage of 
development and production activities under the new source general 
permit sixty (60) days prior to commencing such operations. All NOI's 
requesting coverage should be sent by certified mail to: Director, 
Water Management Division, U.S. EPA, Region 4, Atlanta Federal Center, 
100 Alabama Street, S.W., Atlanta, GA 30303-3104.
    For drilling activity, the operator shall submit a Notice to Drill 
(NTD) sixty (60) days prior to the actual move-on date. This NTD shall 
contain: (1) the assigned NPDES general permit number assigned to the 
lease block, (2) the latitude and longitude of the proposed discharge 
point, (3) the water depth, and (4) the estimated length of time the 
drilling operation will last. This NTD shall be submitted to Region 4 
at the address above, by certified mail to: Director, Water Management 
Division, U.S. EPA, Region 4, Atlanta Federal Center, 100

[[Page 64892]]

Alabama Street, S.W., Atlanta, GA 30303-3104.
    In addition, a notice of commencement of operations (NCO) is 
required to be submitted for each of the following activities: placing 
a production platform seaward of 200 meters (within 30 days prior to 
placement); and discharging waste water within the coverage area 
(within 30 days prior to initiation of produced water discharges). The 
NCO required for discharging waste water shall be accompanied by the 
information requested in Appendix A for calculation of the toxicity 
limitation for produced water discharges. Within sixty (60) days after 
produced water discharge begins, the permittee shall perform adequate 
tests to establish a bbl/day estimate to be used in the Cormix model. 
This information must then be provided to EPA.
    All NOIs, NTDs, NCOs, and any subsequent reports required under 
this permit shall be sent by certified mail to the following address: 
Director, Water Management Division, U.S. EPA, Region 4, Atlanta 
Federal Center, 100 Alabama Street, S.W., Atlanta, GA 30303-3104.
5. Termination of Operations
    Lease block operators shall notify the Director (at the address 
above) within 60 (sixty) days after the permanent termination of 
discharges from their facility.
6. Intent To Be Covered by a Subsequent Permit
    This permit shall expire five (5) years from the effective date of 
issuance. However, an expired general permit continues in force and 
effect until a new general permit is issued. Lease block operators 
authorized to discharge by this permit shall by certified mail notify 
the Director, Water Management Division, U.S. EPA, Region 4, Atlanta 
Federal Center, 100 Alabama Street, S.W., Atlanta, GA 30303-3104, on or 
before [6 months prior to the expiration date of the permit], that they 
intend to be covered by a permit that will authorize discharge from 
these facilities after the termination date of this permit on [month, 
day of year].
    Permittees must submit a new NOI in accordance with the 
requirements of this permit to remain covered under the continued 
general permit after the expiration of this permit. Therefore, 
facilities that have not submitted an NOI under the permit by the 
expiration date cannot become authorized to discharge under any 
continuation of this NPDES general permit. All NOI's from permittees 
requesting coverage under a continued permit should be sent by 
certified mail to: Director, Water Management Division, U.S. EPA, 
Region 4, Atlanta Federal Center, 100 Alabama Street, S.W., Atlanta, GA 
30303-3104.

Section B. Effluent Limitations and Monitoring Requirements

1. Drilling Fluids
    The discharge of drilling fluids shall be limited and monitored by 
the permittee as specified in both tables and below.

    Note: The permit prohibitions and limitations that apply to 
drilling fluids, also apply to fluids that adhere to drill cuttings. 
Any permit condition that applies to the drilling fluid system, 
therefore, also applies to cuttings discharges.
(a) Prohibitions
    Oil-Based Drilling Fluids. The discharge of oil-based drilling 
fluids and inverse emulsion drilling fluids is prohibited.
    Oil-Contaminated Drilling Fluids. The discharge of drilling fluids 
to which waste engine oil, cooling oil, gear oil or any lubricants 
which have been previously used for purposes other than borehole 
lubrication have been added, is prohibited.
    Diesel Oil. Drilling fluids to which any diesel oil has been added 
as a lubricant or pill may not be discharged.
    No Discharge Near Areas of Biological Concern. For those facilities 
within 1000 meters of an area of biological concern the discharge of 
drilling fluids is not allowed.
(b) Limitations
    Mineral Oil. Mineral oil may be used only as a lubricity additive 
or pill. If mineral oil is added to a water-based drilling fluid, the 
drilling fluid may not be discharged unless the 96-hr LC50 of the 
drilling fluid is greater than 30,000 ppm SPP and it passes the static 
sheen test for free oil.
    Cadmium and Mercury in Barite. There shall be no discharge of 
drilling fluids to which barite has been added if such barite contains 
mercury in excess of 1.0 mg/kg (dry weight) or cadmium in excess of 3.0 
mg/kg (dry weight).
    The permittee shall analyze a representative sample of each supply 
of stock barite prior to drilling each well and submit the results for 
total mercury and cadmium in the Discharge Monitoring Report (DMR). If 
more than one well is being drilled at a site, new analyses are not 
required for subsequent wells, provided that no new supplies of barite 
have been received since the previous analysis. In this case, the 
results of the previous analysis should be used for completion of the 
DMR.
    Alternatively, the permittee may provide certification, as 
documented by the supplier(s), that the barite being used on the well 
will meet the above limits. The concentration of the mercury and 
cadmium in the barite shall be reported on the DMR as documented by the 
supplier.
    Analyses shall be conducted by absorption spectrophotometry (see 40 
CFR Part 136, flame and flameless AAS) and the results expressed in mg/
kg (dry weight).
    Toxicity. Discharged drilling fluids shall meet both a daily 
minimum and a monthly average minimum effluent toxicity limitation of 
at least 30,000 ppm, (v/v) of a 9:1 seawater:mud suspended particulate 
phase (SPP) based on a 96-hour test using Mysidopsis bahia. The method 
is published in the final effluent guidelines at 58 FR 12507. 
Monitoring shall be performed at least once per month for both the 
daily minimum and the monthly average minimum. In addition, an end-of-
well sample is required (see definitions). The type of sample required 
is a grab sample, taken from beneath the shale shaker. Results of 
toxicity tests must be reported on the monthly DMRs. Copies of the 
laboratory reports also must be submitted with the DMRs.
    Free Oil. No free oil shall be discharged. Monitoring shall be 
performed prior to discharges and on each day of discharge using the 
static (laboratory) sheen test method in accordance with the method 
provided in Part IV.A.3, as published in the final effluent guidelines 
(58 FR 12506). The discharge of drilling fluids that fail the static 
sheen test is prohibited. The results of each sheen test must be 
recorded and the number of observations of a sheen must be reported on 
each monthly DMR.
    Maximum Discharge Rate. All facilities are subject to a maximum 
discharge rate of 1,000 barrels per hour. Average daily discharge rates 
must be recorded and the monthly average discharge rate reported on the 
monthly DMR in barrels/day (BPD).
(c) Monitoring Requirements
    In addition to the above limitations, the following monitoring and 
reporting requirements also apply to drilling fluids discharges.
    Drilling Fluids Inventory. The permittee shall maintain a precise 
chemical inventory of all constituents and their total volume or mass 
added downhole for each well. Information shall be recorded but not 
reported unless specifically requested by EPA.

[[Page 64893]]

    Volume. Once per month, the total monthly volume (bbl/month) of 
discharged drilling fluids must be estimated and recorded. The volume 
shall be reported on the monthly DMR.
    Oil Content. There is no numeric limitation on the oil content of 
discharged drilling muds (except that muds containing any waste oil, or 
diesel oil as a lubricity agent shall not be discharged). However, note 
that the oil added shall not cause a violation of either the toxicity 
or free oil limitations discussed above. The oil content of discharged 
drilling fluids shall be determined once per day when discharging, on a 
grab sample taken from the same mud system being observed for the 
static sheen (free oil) test.
2. Drill Cuttings
    The discharge of drill cuttings shall be limited and monitored by 
the permittee as specified in both tables and below.

    Note: The permit prohibitions and limitations that apply to 
drilling fluids also apply to fluids that adhere to drill cuttings. 
Any permit condition that applies to the drilling fluid system, 
therefore, also applies to cuttings discharges. Monitoring 
requirements, however, may not be the same.

(a) Prohibitions
    Cuttings from Oil-Based Drilling Fluids. Prohibitions that apply to 
drilling fluids, set forth above in B.1(a), also apply to drill 
cuttings. Therefore, the discharge of cuttings is prohibited when they 
are generated while using an oil-based or invert emulsion mud.
    Cuttings from Oil Contaminated Drilling Fluids. The discharge of 
cuttings that are generated using drilling fluids that contain waste 
engine oil, cooling oil, gear oil or any lubricants which have been 
previously used for purposes other than borehole lubrication is 
prohibited.
    Cuttings generated using drilling fluids which contain diesel oil. 
Drill cuttings generated using drilling fluids to which any diesel oil 
has been added as a lubricant may not be discharged.
    Cuttings generated using mineral oil. The discharge of cuttings 
generated using drilling fluids which contain mineral oil is prohibited 
except when the mineral oil is used as a carrier fluid (transporter 
fluid), lubricity additive, or pill.
    No Discharge Near Areas of Biological Concern. For those facilities 
within 1000 meters of an area of biological concern discharge of 
drilling cuttings is not allowed.
(b) Limitations
    Mineral Oil. Limitations that apply to drilling fluids also apply 
to drill cuttings. Therefore, if mineral oil pills or mineral oil 
lubricity additives have been introduced to a water-based mud system, 
cuttings may be discharged if they meet the limitations for toxicity 
and free oil.
    Free Oil. No free oil shall be discharged. Monitoring shall be 
performed prior to bulk discharges and on each day of discharge using 
the static (laboratory) sheen test method in accordance with the method 
provided in Part IV.A.3. The discharge of cuttings that fail the static 
sheen test is prohibited. The results of each sheen test must be 
recorded and the number of observations of a sheen must be reported on 
each monthly DMR.
    Toxicity. Discharged cuttings generated using drilling fluids with 
a daily minimum or a monthly average minimum 96-hour LC50 of less than 
30,000 ppm, (v/v) of a 9:1 seawater to drilling fluid suspended 
particulate phase (SPP) volumetric ratio using Mysidopsis bahia shall 
not be discharged.
(c) Monitoring Requirements
    Volume. Once per month, the monthly total discharge must be 
estimated and recorded. The estimated volume of cuttings discharged 
(bbl/month) shall be reported on the DMR.
3. Produced Water
    The discharge of produced water shall be limited and monitored by 
the permittee as specified in both tables and below.
(a) Prohibitions
    No Discharge Near Areas of Biological Concern. For those facilities 
within 1000 meters of an area of biological concern discharge of 
produced water is not allowed.
(b) Limitations
    Oil and Grease. Produced water discharges must meet both a daily 
maximum limitation of 42 mg/l and a monthly average limitation of 29 
mg/l for oil and grease. A grab sample must be taken at least once per 
month. The daily maximum samples may be based on the average 
concentration of four grab samples taken within the 24-hour period. If 
only one sample is taken for any one month, it must meet both the daily 
and monthly limits. If more samples are taken, they may exceed the 
monthly average for any one day, provided that the average of all 
samples taken meets the monthly limitation. The gravimetric method is 
specified at 40 CFR part 136. The highest daily oil and grease 
concentration and the monthly average concentration shall be reported 
on the monthly DMR.
    Toxicity. Produced water discharges must meet a toxicity limitation 
projected to be the limiting permissible concentration (0.01 x LC50) at 
the edge of a 100-meter mixing zone. The toxicity limitation will be 
calculated by EPA based on each facility's site-specific water column 
conditions and discharge configuration. The methods for this 
determination are presented in Appendix A of this permit using the 
Cornell Mixing Zone Expert System (CORMIX). The CORMIX1 (Version 1.4), 
which is explained in Chapter 4, Section 4.4 of the Ocean Discharge 
Criteria Evaluation will be used to evaluate the toxicity of the 
produced water outfalls.
    Compliance with the toxicity limitation shall be demonstrated by 
conducting 96-hour toxicity tests each month using Mysidopsis bahia and 
sheepshead minnows. The method is published in ``Methods for Measuring 
the Acute Toxicity of Effluents to Freshwater and Marine Organisms'' 
(EPA/600/4-85/013). The results for both species shall be reported on 
the monthly DMR. The operator shall also submit a copy of all 
laboratory reports with the DMR.
(b) Monitoring Requirements
    Flow. Once per month, an estimate of the total flow (bbl/month) 
must be reported on the DMR.
4. Deck Drainage
    The discharge of deck drainage shall be limited and monitored by 
the permittee as specified in both tables and below.
(a) Limitations
    Free Oil. No free oil shall be discharged. Monitoring shall be 
performed on each day of discharge using the visual sheen test method 
in accordance with the method provided at Part IV.A.4. The discharge of 
deck drainage that fails the visual sheen test is prohibited. The 
results of each sheen test must be recorded and the number of 
observations of a sheen must be reported on each monthly DMR.
(b) Monitoring Requirements
    Volume. Once per month, the monthly total discharge (bbls/month) 
must be estimated and reported on the DMR.
5. Produced Sand
    The discharge of produced sand is prohibited under this general 
permit.

[[Page 64894]]

Wastes must be hauled to shore for treatment and disposal.
6. Well Treatment Fluids, Completion Fluids, and Workover Fluids
    The discharge of well treatment fluids, completion fluids, and 
workover fluids shall be limited and monitored by the permittee as 
specified in both tables and below.
(a) Limitations
    Free Oil. No free oil shall be discharged. Monitoring shall be 
performed prior to discharge and on each day of discharge using the 
static (laboratory) sheen test method in accordance with the method 
provided at Part IV.A.3. The discharge of well treatment, completion, 
or workover fluids that fail the static sheen test is prohibited. The 
results of each sheen test must be recorded and the number of 
observations of a sheen must be reported on each monthly DMR.
    Oil and Grease. Well treatment fluids, completion fluids, and 
workover fluids discharges must meet both a daily maximum of 42 mg/l 
and a monthly average of 29 mg/l limitation for oil and grease. A grab 
sample must be taken at least once per month when discharging. The 
daily maximum concentration may be based on the average of four grab 
samples taken within the 24-hour period. If only one sample is taken 
for any one month, it must meet both the daily and monthly limits. If 
more samples are taken, they may exceed the monthly average for any one 
day, provided that the average of all samples taken meets the monthly 
limitation. The analytical method is the gravimetric method, as 
specified at 40 CFR part 136.
    Priority Pollutants. For well treatment fluids, completion fluids, 
and workover fluids, the discharge of priority pollutants is prohibited 
except in trace amounts. Information on the specific chemical 
composition of any additives containing priority pollutants shall be 
recorded.

    Note: If materials added downhole as well treatment, completion, 
or workover fluids contain no priority pollutants, the discharge is 
assumed not to contain priority pollutants except possibly in trace 
amounts.
(b) Monitoring Requirements
    Volume. Once per month, an estimate of the total volume discharged 
(bbls/month) shall be reported on the DMR.
7. Sanitary Waste (Facilities Continuously Manned by 10 or More 
Persons)
    The discharge of sanitary waste shall be limited and monitored by 
the permittee as specified in both tables and below.
(a) Prohibitions
    Solids. No floating solids may be discharged. Observations must be 
made once per day, during daylight in the vicinity of sanitary waste 
outfalls, following either the morning or midday meals and at the time 
during maximum estimated discharge. The number of days solids are 
observed shall be recorded.
(b) Limitations
    Residual Chlorine. Total residual chlorine is a surrogate parameter 
for fecal coliform. Discharges of sanitary waste must contain a minimum 
of 1 mg residual chlorine/l and shall be maintained as close to this 
concentration as possible. The approved analytical method is Hach CN-
66-DPD. A grab sample must be taken once per month and the 
concentration reported.
    (Exception) Any facility which properly maintains a marine 
sanitation device (MSD) that complies with pollution control standards 
and regulations under Section 312 of the Act shall be deemed in 
compliance with permit limitations for sanitary waste. The MSD shall be 
tested annually for proper operation and the test results maintained at 
the facility. The operator shall indicate use of an MSD on the monthly 
DMR.
(c) Monitoring Requirements
    Flow. Once per month, the average flow (MGD) must be estimated and 
recorded for the flow of sanitary wastes.
8. Sanitary Waste (Facilities Continuously Manned by 9 or Fewer Persons 
or Intermittently by Any Number)
    The discharge of sanitary waste shall be limited and monitored by 
the permittee as specified in both tables and below.
(a) Prohibitions
    Solids. No floating solids may be discharged to the receiving 
waters. An observation must be made once per day when the facility is 
manned, during daylight in the vicinity of sanitary waste outfalls, 
following either the morning or midday meal and at a time during 
maximum estimated discharge. The number of days solids are observed 
shall be recorded.
    (Exception) Any facility which properly maintains a marine 
sanitation device (MSD) that complies with pollution control standards 
and regulations under Section 312 of the Act shall be deemed in 
compliance with permit limitations for sanitary waste. The MSD shall be 
tested annually for proper operation and the test results maintained at 
the facility. The operator shall indicate use of an MSD on the monthly 
DMR.
9. Domestic Waste
    The discharge of domestic waste shall be limited and monitored by 
the permittee as specified in both tables and below.
(a) Prohibitions
    Solids. No floating solids shall be discharged. In addition, food 
waste, comminuted or not, may not be discharged within 12 nautical 
miles from nearest land.
(b) Limitations
    Solids. Comminuted food waste which can pass through a 25-mm mesh 
screen (approximately 1 inch) may be discharged 12 or more nautical 
miles from nearest land.
(c) Monitoring Requirements
    Solids. An observation must be made during daylight in the vicinity 
of domestic waste outfalls following either the morning or midday meal 
and at a time during maximum estimated discharge. The number of days 
solids are observed must be recorded.
10. Miscellaneous Discharges
    Desalination Unit Discharge; Blowout Preventer Fluid; 
Uncontaminated Ballast Water; Uncontaminated Bilge Water; Mud, 
Cuttings, and Cement at the Seafloor; Uncontaminated Seawater; Boiler 
Blowdown; Source Water and Sand; Diatomaceous Earth Filter Media
    The discharge of miscellaneous discharges shall be limited and 
monitored by the permittee as specified in both tables and below.
(a) Limitations
    Free Oil. No free oil shall be discharged. Monitoring shall be 
performed using the visual sheen test method once per day when 
discharging on the surface of the receiving water or by use of the 
static sheen method at the operator's option. Both tests shall be 
conducted in accordance with the methods presented at IV.A.3 and 
IV.A.4. Discharge is limited to those times that a visual sheen 
observation is possible. The number of days a sheen is observed must be 
recorded.
    (Exception) Discharge is not restricted to periods when observation 
is possible; however, the static (laboratory) sheen test method must be 
used during periods when observation of a sheen is not possible, such 
as at night or during inclement conditions.

[[Page 64895]]

Section C. Other Discharge Limitations

1. Floating Solids or Visible Foam
    There shall be no discharge of floating solids or visible foam from 
any source other than in trace amounts.
2. Halogenated Phenol Compounds
    There shall be no discharge of halogenated phenol compounds as a 
part of any waste streams authorized in this permit.
3. Dispersants, Surfactants, and Detergents
    The facility operator shall minimize the discharge of dispersants, 
surfactants, and detergents except as necessary to comply with the 
safety requirements of the Occupational Safety and Health 
Administration and MMS. This restriction applies to tank cleaning and 
other operations which do not directly involve the safety of workers. 
The restriction is imposed because detergents disperse and emulsify 
oil, potentially increasing toxic impacts and making the detection of a 
discharge of free oil more difficult.
4. Rubbish, Trash, and Other Refuse
    The discharge of any solid material not authorized in the permit 
(as described above) is prohibited.
    This permit includes limitations set forth by the U.S. Coast Guard 
in regulations implementing Annex V of MARPOL 73/78 for domestic waste 
disposal from all fixed or floating offshore platforms and associated 
vessels engaged in exploration or exploitation of seabed mineral 
resources (33 CFR 151). These limitations, as specified by Congress (33 
U.S.C. 1901, the Act to Prevent Pollution from Ships), apply to all 
navigable waters of the United States.
    This permit prohibits the discharge of ``garbage'' including food 
wastes, within 12 nautical miles from nearest land. Comminuted food 
waste (able to pass through a screen with a mesh size no larger than 25 
mm, approx. 1 inch) may be discharge when 12 nautical miles or more 
from land. Graywater, drainage from dishwater, shower, laundry, bath, 
and washbasins are not considered garbage within the meaning of Annex 
V. Incineration ash and non-plastic clinkers that can pass through a 
25-mm mesh screen may be discharged beyond 3 miles from nearest land. 
Otherwise, ash and non-plastic clinkers may be discharged beyond 12 
nautical miles from nearest land.
5. Areas of Biological Concern
    There shall be no discharge of drilling muds, drill cuttings and 
produced water within 1000 meters of Areas of Biological Concern. If at 
any time it is determined that a facility is located within 1000 meters 
of an area of biological concern, the operator shall immediately cease 
discharge from these outfalls in the area and shall file an application 
for an individual permit as provided in 40 CFR 122.28(b)(3). The 
operator may not resume discharging from these outfalls until an 
individual permit has been issued.

Part II. Standard Conditions for NPDES Permits

Section A. Introduction and General Conditions

    In accordance with the provisions of 40 CFR Part 122.41, et. seq., 
this permit incorporates by reference ALL conditions and requirements 
applicable to NPDES permits set forth in the Clean Water Act, as 
amended, as well as ALL applicable regulations.
1. Duty to Comply
    The permittee must comply with all conditions of this permit. Any 
permit noncompliance constitutes a violation of the Act and is grounds 
for enforcement action or for requiring a permittee to apply and obtain 
an individual NPDES permit.
2. Penalties for Violations of Permit Conditions--33 U.S.C. 
Sec. 1319(c)
(a) Criminal Penalties
    (1) Negligent Violations. The Act provides that any person who 
negligently violates permit conditions implementing Section 301, 302, 
306, 307, 308, 318, or 405 of the Act is subject to criminal penalties 
of not less $2,500 nor more than $25,000 per day of violation, or by 
imprisonment for not more than 1 year, or both.
    (2) Knowing Violations. The Act provides that any person who 
knowingly violates permit conditions implementing Sections 301, 302, 
306, 307, 308, 318, or 405 of the Act is subject to criminal penalties 
of not less than $5,000 nor more than $50,000 per day of violation, or 
by imprisonment for not more than 3 years, or both.
    (3) Knowing Endangerment. The Act provides that any person who 
knowingly violates permit conditions implementing Sections 301, 302, 
303, 306, 307, 308, 318, or 405 of the Act and who knows at that time 
that he is placing another person in imminent danger of death or 
serious bodily injury is subject to a fine of not more than $250,000 
per day of violation for individuals or up to $1 million for 
organizations, or by imprisonment for not more than 15 years, or both.
    (4) False Statements. The Act provides that any person who 
knowingly makes any false material statement, representation, or 
certification in any application, record, report, plan, or other 
document filed or required to be maintained under the Act or who 
knowingly falsifies, tampers with, or renders inaccurate, any 
monitoring device or method required to be maintained under the Act, 
shall upon conviction, be punished by a fine of not more than $10,000, 
or by imprisonment for not more than 2 years, or by both. If a 
conviction of a person is for a violation committed after a first 
conviction of such person under this paragraph, punishment shall be by 
a fine of not more than $20,000 per day of violation, or by 
imprisonment of not more than 4 years, or by both. (See Section 309(c) 
of the Clean Water Act).
(b) Civil Penalties--33 U.S.C. Sec. 1319(d)
    The Act provides that any person who violates a permit condition 
implementing Sections 301, 302, 306, 307, 308, 318, or 405 of the Act 
is subject to a civil penalty not to exceed $25,000 per day for such 
violation. A single operational upset which leads to simultaneous 
violations of more than one pollutant parameter shall be treated as a 
single violation.
(c) Administrative Penalties
    The Act at Section 309 allows that the Regional Administrator may 
assess a Class I or Class II civil penalty for violations of Sections 
301, 302, 306, 307, 318, or 405 of the Act. A Class I penalty may not 
to exceed $10,000 per violation nor shall the maximum amount exceed 
$25,000. A Class II penalty may not to exceed $10,000 per day for each 
day during which the violation continues except that the maximum amount 
shall not exceed $125,000. An upset that leads to violations of more 
than one pollutant parameter will be treated as a single violation.
3. Duty to Mitigate
    The permittee shall take all reasonable steps to minimize or 
prevent any discharge in violation of this permit which has a 
reasonable likelihood of adversely affecting human health or the 
environment.
4. Permit Flexibility
    These permits may be modified, revoked and reissued for the causes 
set forth at 40 CFR Sec. 122.62. The permits may be terminated for the 
following reasons (see 40 CFR 122.62):
    (a) Violation of any terms or conditions of this permit;

[[Page 64896]]

    (b) Obtaining this permit by misrepresentation or failure to 
disclose fully all relevant facts;
    (c) A change in any condition that requires either a temporary or a 
permanent reduction or elimination of the authorized discharge; or
    (d) A determination that the permitted activity endangers human 
health or the environment and can only be regulated to acceptable 
levels by permit modification or termination.
    The filing of a request for a permit modification, revocation and 
reissuance, or termination, or a notification of planned changes or 
anticipated noncompliance does not stay any permit condition.
5. Toxic Pollutants
    Notwithstanding Part II.A.4, if any toxic effluent standard or 
prohibition (including any schedule of compliance specified in such 
effluent standard or prohibition) is promulgated under Section 307(a) 
of the Act for a toxic pollutant which is present in the discharge and 
that standard or prohibition is more stringent than any limitation on 
the pollutant in this permit, this permit shall be modified or revoked 
and reissued to conform to the toxic effluent standard or prohibition 
and the permittee so notified.
    The permittee shall comply with effluent standards or prohibitions 
established under Section 307(a) of the Act for toxic pollutants within 
the time provided in the regulations that established those standards 
or prohibitions, even if the permit has not yet been modified to 
incorporate the requirement.
6. Civil and Criminal Liability
    Except as provided in permit conditions on ``Bypassing'' and 
``Upsets'' (see II.B.3 and II.B.4), nothing in this permit shall be 
construed to relieve the permittee from civil or criminal penalties for 
noncompliance with permit conditions. Any false or misleading 
representation or concealment of information required to be reported by 
the provisions of the permit, the Act, or applicable CFR regulations, 
which avoids or effectively defeats the regulatory purpose of the 
permit may subject the permittee to criminal enforcement pursuant to 18 
U.S.C. Section 1001.
7. Oil and Hazardous Substance Liability
    Nothing in this permit shall be construed to preclude the 
institution of any legal action or relieve the permittee from any 
responsibilities, liabilities, or penalties to which the permittee is 
or may be subject under Section 311 of the Clean Water Act.
8. State Laws
    Nothing in this permit shall be construed to preclude the 
institution of any legal action or relieve the permittee from any 
responsibilities, liabilities, or penalties established pursuant to any 
applicable State law or regulation under authority preserved by Section 
510 of the Clean Water Act.
9. Property Rights
    The issuance of this permit does not convey any property rights of 
any sort, any exclusive privileges, authorize any injury to private 
property, any invasion of personal rights, nor any infringement of 
Federal, state, or local laws or regulations.
10. Onshore or Offshore Construction
    This permit does not authorize or approve the construction of any 
onshore or offshore physical structure of facilities or the undertaking 
of any work in any waters of the United States.
11. Severability
    The provisions of this permit are severable. If any provision of 
this permit or the application of any provision of this permit to any 
circumstance is held invalid, the application of such provision to 
other circumstances, and the remainder of this permit, shall not be 
affected thereby.
12. Duty to Provide Information
    The permittee shall furnish to the Regional Administrator, within a 
reasonable time, any information which the Regional Administrator may 
request to determine whether cause exists for modifying, revoking and 
reissuing, or terminating this permit, or to determine compliance with 
this permit. The permittee shall also furnish to the Regional 
Administrator upon request, copies of records required to be kept by 
this permit.

Section B. Proper Operation and Maintenance of Pollution Controls

1. Proper Operation and Maintenance
    The permittee shall at all times properly operate and maintain all 
facilities and systems of treatment and control (and related 
appurtenances) that are installed or used by the permittee to achieve 
compliance with this permit. Proper operation and maintenance also 
includes adequate laboratory controls and appropriate quality assurance 
procedures. This provision requires the operation of backup or 
auxiliary facilities or similar systems which are installed by a 
permittee only when the operation is necessary to achieve compliance 
with the conditions of this permit.
2. Need to Halt or Reduce not a Defense
    It shall not be a defense for a permittee in an enforcement action 
that it would have been necessary to halt or reduce the permitted 
activity in order to maintain compliance with the conditions of this 
permit.
3. Bypass of Treatment Facilities
    (a) Definitions.
    (1) Bypass means the intentional diversion of waste streams from 
any portion of a treatment facility.
    (2) Severe property damage means substantial physical damage to 
property, damage to the treatment facilities that causes them to become 
inoperable, or substantial and permanent loss of natural resources that 
can reasonably be expected to occur in the absence of a bypass. Severe 
property damage does not mean economic loss caused by delays in 
production.
    (b) Bypass not exceeding limitations. The permittee may allow any 
bypass to occur that does not cause effluent limitations to be 
exceeded, but only if it also is for essential maintenance to assure 
efficient operation. These bypasses are not subject to the provisions 
of Section B.3(c) and 3(d) below.
    (c) Notice.
    (1) Anticipated bypass. If the permittee knows in advance of the 
need for a bypass, it shall submit prior notice, if possible at least 
ten days before the date of the bypass.
    (2) Unanticipated bypass. The permittee shall, submit notice of an 
unanticipated bypass as required in Section D.7 (24-hour reporting).
    (d) Prohibition of bypass.
    (1) Bypass is prohibited and the Regional Administrator may take 
enforcement action against a permittee for bypass, unless:
    (a) Bypass was unavoidable to prevent loss of life, personal 
injury, or severe property damage;
    (b) There were no feasible alternatives to the bypass, such as the 
use of auxiliary treatment facilities, retention of untreated wastes, 
or maintenance during normal periods of equipment downtime. This 
condition is not satisfied if adequate back-up equipment should have 
been installed in the exercise of reasonable engineering judgement to 
prevent a bypass that occurred during normal periods of equipment 
downtime or preventive maintenance; and,
    (c) The permittee submitted notices as required under Section 
B.3(c).

[[Page 64897]]

    (2) The Regional Administrator may approve an anticipated bypass 
after considering its adverse effects, if the Regional Administrator 
determines that it will meet the three conditions listed above in 
Section B.3(d)(1).
4. Upset Conditions
    (a) Definition. Upset means an exceptional incident in which there 
is unintentional and temporary noncompliance with technology-based 
permit effluent limitations because of factors beyond the reasonable 
control of the permittee. An upset does not include noncompliance to 
the extent caused by operational error, improperly designed treatment 
facilities, inadequate treatment facilities, lack of preventive 
maintenance, or careless or improper operation.
    (b) Effect of an Upset. An upset constitutes an affirmative defense 
to an action brought for noncompliance with such technology-based 
permit effluent limitations if the requirements of Section B.4(c) are 
met. No determination made during administrative review of claims that 
noncompliance was caused by upset, and before an action for 
noncompliance, is final administrative action subject to judicial 
review.
    (c) Conditions Necessary for a Demonstration of Upset. A permittee 
who wishes to establish the affirmative defense of upset shall 
demonstrate, through properly signed, contemporaneous operating logs, 
or other relevant evidence that:
    (1) An upset occurred and that the permittee can identify the 
cause(s) of the upset;
    (2) The permitted facility was at the time being properly operated;
    (3) The permittee submitted notice of the upset as required by 
Section D.7 below; and,
    (4) The permittee complied with any remedial measures required by 
Section A.3, above.
    (d) Burden of proof. In any enforcement proceeding, the permittee 
seeking to establish the occurrence of an upset has the burden of 
proof.
5. Removed Substances
    Solids, sewage sludges, filter backwash, or other pollutants 
removed in the course of treatment or control of wastewaters shall be 
disposed of in a manner such as to prevent any pollutant from such 
materials from entering navigable waters. Any substance specifically 
listed within this permit may be discharged in accordance with 
specified conditions, terms, or limitations.

Section C. Monitoring and Records

1. Representative Sampling
    Samples and measurements taken as required herein shall be 
representative of the volume and nature of the monitored discharge.
2. Discharge Rate/Flow Measurements
    Appropriate flow measurement devices and methods consistent with 
accepted scientific practices shall be selected, maintained, and used 
to ensure the accuracy and reliability of measurements of the volume of 
monitored discharges. The devices shall be installed, calibrated, and 
maintained to insure that the accuracy of the measurements is 
consistent with the accepted capability of that type of device. Devices 
selected shall be capable of measuring flows with a maximum deviation 
of less than 10% from true discharge rates throughout the 
range of expected discharge volumes.
3. Monitoring Procedures
    Monitoring must be conducted according to test procedures approved 
under 40 CFR Part 136, unless other test procedures have been specified 
in this permit in Part IV, below.
4. Penalties for Tampering
    The Clean Water Act provides that any person who falsifies, tampers 
with, or knowingly renders inaccurate, and monitoring device or method 
required to be maintained under this permit shall, upon conviction, be 
punished by a fine of not more than $10,000 per violation, or 
imprisonment for not more than 2 years, or both.
5. Retention of Records
    The permittee shall retain records of all monitoring information, 
including all calibration and maintenance records and all original 
strip chart recordings for continuous monitoring instrumentation, and 
copies of all reports required by this permit for a period of at least 
3 years from the date of the sample, measurement, or report. This 
period may be extended by request of the Regional Administrator at any 
time. The operator shall maintain records at development and production 
facilities for 3 years, wherever practicable and at a specific shore-
based site whenever not practicable.
6. Record Contents
    Records of monitoring information shall include:
    (a) The date, exact place, and time of sampling or measurements;
    (b) The individual(s) who performed the sampling or measurements;
    (c) The date(s) analyses were performed;
    (d) The individual(s) who performed the analyses;
    (e) The analytical techniques or methods used; and
    (f) The results of such analyses.
7. Inspection and Entry
    The permittee shall allow the Regional Administrator or an 
authorized representative, upon the presentation of credentials and 
other documents as may be required by the law, to:
    (a) Enter upon the permittee's premises where a regulated facility 
or activity is located or conducted, or where records must be kept 
under the conditions of this permit;
    (b) Have access to and copy, at reasonable times, any records that 
must be kept under the conditions of this permit;
    (c) Inspect at reasonable times any facilities, equipment 
(including monitoring and control equipment), practices, or operations 
regulated or required under this permit; and
    (d) Sample or monitor at reasonable times, for the purpose of 
assuring permit compliance or as otherwise authorized by the Act, any 
substances or parameters at any location.

Section D. Reporting Requirements

1. Planned Changes
    The permittee shall give notice to Regional Administrator as soon 
as possible of any planned physical alterations or additions to the 
permitted facility. Notice is required only when:
    (a) The alteration or addition to a facility permitted under the 
existing source general permit may meet one of the criteria for 
determining whether a facility is a new source in 40 CFR Part 122.29(b) 
(58 FR 12454; final effluent guidelines for the offshore subcategory); 
or
    (b) The alteration or addition could significantly change the 
nature or increase the quantity of pollutants discharged. This 
notification applies to pollutants which are subject neither to 
effluent limitations in the permit, nor to notification requirements 
under 40 CFR 122.42(a)(1) (48 FR 14153, April 1, 1963, as amended at 49 
FR 38049, September 26, 1984).
2. Anticipated Noncompliance
    The permittee shall give advance notice to the Regional 
Administrator of any planned changes in the permitted facility or 
activity which may result in noncompliance with permit requirements.

[[Page 64898]]

3. Transfers
    This permit is not transferable to any person. Any new owner or 
operator shall submit a notice of intent to be covered under this 
general permit according to procedures presented at Part I.A.3.
4. Monitoring Reports
    See Part III.A of this permit.
5. Additional Monitoring by the Permittee
    If the permittee monitors any pollutant more frequently than 
required by this permit, using test procedures approved under 40 CFR 
Part 136 or as specified in this permit, the results of this monitoring 
shall be included in the calculation and reporting of the data 
submitted in the DMR. Such increased monitoring frequency also shall be 
indicated on the DMR.
6. Averaging of Measurements
    Calculations for all limitations which require averaging of 
measurements shall utilize an arithmetic mean unless otherwise 
specified by the Regional Administrator in the permit.
7. Twenty-Four Hour Reporting
    The permittee shall report any noncompliance which may endanger 
health or the environment (this includes any spill that requires 
reporting to the state regulatory authority). Information shall be 
provided orally within 24 hours from the time the permittee becomes 
aware of the circumstances. A written submission shall be provided 
within 5 days of the time the permittee becomes aware of the 
circumstances. The written submission shall contain a description of 
the noncompliance and its cause; the period of noncompliance including 
exact dates and times, and if the noncompliance has not been corrected, 
the anticipated time it is expected to continue; and, steps taken or 
planned to reduce, eliminate, and prevent recurrence of the 
noncompliance. The director may waive the written report on a case-by-
case basis if the oral report has been received within 24 hours.
    The following shall be included as information which must be 
reported within 24 hours:
    (a) Any unanticipated bypass which exceeds any effluent limitation 
in the permit;
    (b) Any upset which exceeds any effluent limitation in the permit;
    (c) Violations of a maximum daily discharge limitation for any of 
the pollutants listed by the Director in Part II of the permit to be 
reported within 24 hours.
    The reports should be made to Region 4 by telephone at (404) 562-
9746. The Regional Administrator may waive the written report on a 
case-by-case basis if the oral report has been received within 24 
hours.
8. Other Noncompliance
    The permittee shall report all instances of noncompliance not 
reported under Part II.D.7 at the time monitoring reports are 
submitted. The reports shall contain the information listed at II.D.7.
9. Other Information
    When the permittee becomes aware that it failed to submit any 
relevant facts in a permit application, or submitted incorrect 
information in a permit application or in any report to the Regional 
Administrator, it shall promptly submit such facts or information.
10. Changes in Discharges of Toxic Substances
    For any toxic pollutant that is not limited in this permit, either 
as an additive itself or as a component in an additive formulation, the 
permittee shall notify the Regional Administrator as soon as he knows 
or has reason to believe that:
    (a) Any activity has occurred or will occur which would result in 
the discharge of such toxic pollutants on a routine or frequent basis, 
if that discharge will exceed the highest of the ``notification 
levels'' described at 40 CFR 122.42(a)(1) (i) and (ii);
    (b) Any activity has occurred or will occur which would result in 
any discharge of such toxic pollutants on a non-routine or infrequent 
basis, if that discharge will exceed the highest of the ``notification 
levels'' described at 40 CFR 122.42(a)(2) (i) and (ii).
11. Duty To Reapply
    If the permittee wishes to continue an activity regulated by this 
permit after the expiration date of this permit, the permittee must 
submit an NOI to be covered or must apply for a new permit. 
Continuation of expiring permits shall be governed by regulations at 40 
CFR Part 122.6 and any subsequent amendments.
12. Signatory Requirements
    All NOIs, applications, reports, or information submitted to the 
Director shall be signed and certified as required at 40 CFR 122.22.
    (a) All permit applications shall be signed as follows:
    (1) For a corporation: By a responsible corporate officer. For the 
purpose of this section, a responsible corporate officer means:
    (i) A president, secretary, treasurer, or vice-president of the 
corporation in charge of a principal business function, or any other 
person who performs similar policy or decision making functions for the 
corporation; or,
    (ii) The manager of one or more manufacturing, production, or 
operating facilities employing more than 250 persons or having gross 
annual sales or expenditures exceeding $25 million (in second-quarter 
1980 dollars), if authority to sign documents has been assigned or 
delegated to the manager in accordance with corporate procedures.
    (2) For a partnership or sole proprietorship--by a general partner 
or the proprietor, respectively.
    (b) Authorized Representative. All reports required by the permit 
and other information requested by the Regional Administrator shall be 
signed by a person described above or by a duly authorized 
representative of that person. A person is a duly authorized 
representative only if:
    (1) The authorization is made in writing by a person described 
above;
    (2) The authorization specifies either an individual or a position 
having responsibility for the overall operation of the regulated 
facility or activity, such as the position of plant manager, operator 
of a well or a well field, superintendent, or position of equivalent 
responsibility, or an individual or position having overall 
responsibility for environmental matters for the company. A duly 
authorized representative may thus be either a named individual or an 
individual occupying a named position; and,
    (3) The written authorization is submitted to the Regional 
Administrator.
    (c) Changes to Authorization. If an authorization under paragraph 
(b) of this section is no longer accurate because a different 
individual or position has responsibility for the overall operation of 
the facility, a new authorization satisfying the requirements of 
paragraph (b) of this section must be submitted to the Director prior 
to or together with any reports, information, or application to be 
signed by an authorized representative.
    (d) Certification. Any person signing a document under this section 
shall make the following certification:

    I certify under penalty of law that this document and all 
attachments were prepared under my direction or supervision in 
accordance with a system designed to assure that qualified personnel 
properly gather and evaluate the information submitted. Based on

[[Page 64899]]

my inquiry of the person or persons who manage the system, or those 
persons directly responsible for gathering the information, the 
information submitted is, to the best of my knowledge and belief, 
true, accurate, and complete. I am aware that there are significant 
penalties for submitting false information, including the 
possibility of fine and imprisonment for knowing violations.
13. Availability of Reports
    Except for data determined to be confidential under 40 CFR Part 2, 
all reports prepared in accordance with the terms of this permit shall 
be available for public inspection at the Regional Office. As required 
by the Act, the name and address of any permit applicant or permittee, 
permit applications, permits, and effluent data shall not be considered 
confidential.

Part III. Monitoring Reports and Permit Modification

Section A. Monitoring Reports

    The operator of each lease block shall be responsible for 
submitting monitoring results for each facility within each lease 
block. If there is more than one facility in each lease block 
(platform, drilling ship, semi-submersible), the discharge shall be 
designated in the following manner: 101 for the first facility; 201 for 
the second facility; 301 for the third facility, etc.
    Monitoring results obtained for each month shall be summarized for 
that month and reported on a Discharge Monitoring Report (DMR) form 
(EPA No. 3320-1), postmarked no later than the 28th day of the month 
following the completed calendar month. (For example, data for January 
shall be submitted by February 28.) Signed copies of these and all 
other reports required by Part II.D shall be submitted to the following 
address: Director, Water Management Division, U.S. EPA, Region 4, 
Atlanta Federal Center, 100 Alabama Street, S.W., Atlanta, GA 30303-
3104.
    All laboratory reports submitted with DMRs should clearly indicate 
the permit number, outfall number, and any other identification 
information necessary to associate the report with the correct 
facility, waste stream, and outfall.
    If no discharge occurs during the reporting period, sampling 
requirements of this permit do not apply. The statement ``No 
Discharge'' shall be written on the DMR form. If, during the term of 
this permit, the facility ceases discharge to surface waters, the 
Regional Director shall be notified immediately upon cessation of 
discharge. This notification shall be in writing.

Section B. Permit Modification

    This permit shall be modified, or alternatively, revoked and 
reissued, to comply with any applicable effluent standard or 
limitation, or sludge disposal requirement issued or approved under 
sections 301(b)(2) (C) and (D), 307(a)(2), and 405(d)(2)(D) of the Act, 
as amended, if the effluent standard or limitation, or sludge disposal 
requirement so issued or approved:
    (a) Contains different conditions or is otherwise more stringent 
than any conditions in the permit; or
    (b) Controls any pollutant or disposal method not addressed in the 
permit.
    The permit as modified or reissued under this paragraph shall also 
contain any other requirements of the Act then applicable.

Part IV. Test Procedures and Definitions

Section A. Test Procedures

1. Samples of Wastes
    If requested, the permittee shall provide EPA with a sample of any 
waste in a manner specified by the Agency.
2. Drilling Fluids Toxicity Test
    The approved sampling and test methods for permit compliance are 
provided in the final effluent guidelines published at 58 FR 12507 on 
March 4, 1993 as Appendix 2 to Subpart A of Part 435.
3. Static (Laboratory) Sheen Test
    The approved sampling and test methods for permit compliance are 
provided in the final effluent guidelines published at 58 FR 12506 on 
March 4, 1993 as Appendix 1 to Subpart A.
4. Visual Sheen Test
    The visual sheen test is used to detect free oil by observing the 
surface of the receiving water for the presence of a sheen while 
discharging. A sheen is defined as a ``silvery'' or ``metallic'' sheen, 
gloss, or increased reflectivity; visual color; iridescence; or oil 
slick on the surface (see 58 FR 12507). The operator must conduct a 
visual sheen test only at times when a sheen could be observed. This 
restriction eliminates observations at night or when atmospheric or 
surface conditions prohibit the observer from detecting a sheen (e.g., 
during rain or rough seas, etc.). Certain discharges can only occur if 
a visual sheen test can be conducted.
    The observer must be positioned on the rig or platform, relative to 
both the discharge point and current flow at the time of discharge, 
such that the observer can detect a sheen should it surface down 
current from the discharge. For discharges that have been occurring for 
at least 15 minutes previously, observations may be made any time 
thereafter. For discharges of less than 15 minutes duration, 
observations must be made both during discharge and 5 minutes after 
discharge has ceased.
5. Produced Water Acute Toxicity Test
    The method for determining the 96-hour LC50 for effluents is 
published in ``Methods for Measuring the Acute Toxicity of Effluents to 
Freshwater and Marine Organisms'' (EPA/600/4-85/013). The species to be 
used for compliance testing for this permit are Mysidopsis bahia and 
sheepshead minnows (Cyprinodon variegatus).

Section B. Definitions

    1. Act means the Clean Water Act (CWA), as amended (33 U.S.C. 1251 
et. seq.).
    2. Administrator means the Administrator of EPA, Region 4, or an 
authorized representative.
    3. Areas of Biological Concern for waters within the territorial 
seas (shoreline to 3-miles offshore) are those defined as ``no activity 
zones'' for biological reasons by the states of Alabama, Florida or 
Mississippi. For offshore waters seaward of three miles, areas of 
biological concern include ``no activity zones'' defined by the 
Department of the Interior (DOI) for biological reasons, or identified 
by EPA in consultation with the DOI, the states, or other interested 
federal agencies, as containing biological communities, features or 
functions that are potentially sensitive to discharges associated with 
the oil and gas industry.
    4. Applicable Effluent Standards and Limitations means all state 
and Federal effluent standards and limitations to which a discharge is 
subject under the Act, including, but not limited to, effluent 
limitations, standards of performance, toxic effluent standards and 
prohibitions, and pretreatment standards.
    5. Average Daily Discharge Limitation means the highest allowable 
average of discharges over a 24-hour period, calculated as the sum of 
all discharges or concentrations measured divided by the number of 
discharges or concentrations measured that day.
    6. Average Monthly Discharge Limitation means the highest allowable 
average of ``daily discharges'' over a calendar month, calculated as 
the sum of all ``daily discharges'' measured during a calendar month 
divided by the number of discharges measured that month. The limitation 
may be the average of discharge rates or concentrations.
    7. Batch or Bulk Discharge is any discharge of a discrete volume or 
mass

[[Page 64900]]

of effluent from a pit, tank, or similar container that occurs on a 
one-time, infrequent, or irregular basis.
    8. Blowout-Out Preventer Control Fluid means fluid used to actuate 
the hydraulic equipment on the blow-out preventer or subsea production 
wellhead assembly.
    9. Boiler Blowdown means discharges from boilers necessary to 
minimize solids build-up in the boilers, including vents from boilers 
and other heating systems.
    10. Bulk Discharge means any discharge of a discrete volume or mass 
of effluent from a pit tank or similar container that occurs on a one-
time, infrequent, or irregular basis.
    11. Bypass means the intentional diversion of waste streams from 
any portion of a treatment facility.
    12. Clinkers are small lumps of residual material left after 
incineration.
    13. Completion Fluids are salt solutions, weighted brines, polymers 
and various additives used to prevent damage to the well bore during 
operations which prepare the drilled well for hydrocarbon production. 
These fluids move into the formation and return to the surface as a 
slug with the produced water. Drilling muds remaining in the wellbore 
during logging, casing, and cementing operations or during temporary 
abandonment of the well are not considered completion fluids and are 
regulated by drilling fluids requirements.
    14. Daily Average Discharge (also known as monthly average) 
limitations means the highest allowable average daily discharge(s) over 
a calendar month, calculated as the sum of all daily discharge(s) 
measured during a calendar month divided by the number of daily 
discharge(s) measured during that month.
    15. Daily Discharge means the discharge of a pollutant measured 
during a calendar day or any 24-hour period that reasonably represents 
the calendar day for purposes of sampling. For pollutants with 
limitations expressed in terms of mass, the daily discharge is 
calculated as the total mass of the pollutant or waste stream 
discharged over the sampling day. For pollutants with limitations 
expressed in other units of measurement, the daily discharge is 
calculated as the average measurement of the pollutant over the 
sampling day. Daily discharge determination of concentration made using 
a composite sample shall be the concentration of the composite sample. 
When grab samples are used, the daily discharge determination of 
concentration shall be the average (weighted by flow value) of all 
samples collected during that sampling day.
    16. Daily Maximum discharge limitations are the highest allowable 
discharge rate or concentration measured during a calendar day.
    17. Deck Drainage is all waste resulting from platform washings, 
deck washings, deck area spills, equipment washings, rainwater, and 
runoff from curbs, gutters, and drains, including drip pans and wash 
areas.
    18. Desalination Unit Discharge means waste water associated with 
the process of creating freshwater from seawater.
    19. Development Drilling means the drilling of wells required to 
efficiently produce a hydrocarbon formation or formations.
    20. Diatomaceous Earth Filter Media is the filter media used to 
filter seawater or other authorized completion fluids and subsequently 
washed from the filter.
    21. Diesel Oil is the distillate fuel oil typically used in 
conventional oil-based drilling fluids, which contains a number of 
toxic pollutants. For the purpose of any particular operation under 
this permit, diesel oil shall refer to the fuel oil present on the 
facility.
    22. Domestic Waste is the discharge from galleys, sinks, showers, 
safety showers, eye wash stations, hand washing stations, fish cleaning 
stations, and laundries.
    23. Drill Cuttings are particles generated by drilling into the 
subsurface geological formations including cured cement carried to the 
surface with the drilling fluid.
    24. Drilling Fluids are any fluids sent down the hole, including 
drilling muds and any specialty products, from the time a well is begun 
until final cessation of drilling in that hole.
    25. End of well Sample means the sample taken after the final log 
run is completed and prior to bulk discharge.
    26. Excess Cement Slurry means the excess mixed cement, including 
additives and wastes from equipment washdown after a cementing 
operation.
    27. Existing Sources are facilities conducting exploration 
activities and those that have commenced development or production 
activities that were permitted as of the effective date of the Offshore 
Guidelines (March 4, 1993).
    28. Free Oil is oil that causes a sheen, streak, or slick on the 
surface of the test container or receiving water.
    29. Garbage means all kinds of victual, domestic, and operational 
waste ``generated during the normal operation of the ship and liable to 
be disposed of continuously or periodically'' (see MARPOL 73/78 
regulations).
    30. Grab Sample means an individual sample collected in less than 
15 minutes.
    31. Graywater is drainage from dishwater, shower, laundry, bath, 
and washbasin drains and does not include drainage from toilets, 
urinals, hospitals, and drainage from cargo areas (see MARPOL 73/78 
regulations).
    32. Inverse Emulsion Drilling Fluids are oil-based drilling fluids 
which also contain large amounts of water.
    33. Live Bottom Areas are those areas that contain biological 
assemblages consisting of such sessile invertebrates as sea fans, sea 
whips, hydroids, anemones, ascideians sponges, bryozoans, seagrasses, 
or corals living upon and attached to naturally occurring hard or rocky 
formations with fishes and other fauna.
    34. Maximum Hourly Rate is the greatest number of barrels of 
drilling fluids discharged within one hour, expressed as barrels per 
hour.
    35. Muds, Cuttings, and Cement at the Seafloor means discharges 
that occur at the seafloor prior to installation of the marine riser 
and during marine riser disconnect, well abandonment, and plugging 
operations.
    36. National Pollutant Discharge Elimination System (NPDES) means 
the national program for issuing, modifying, revoking and reissuing, 
terminating, monitoring, and enforcing permits, and imposing and 
enforcing pretreatment requirements under sections 307, 318, 402, 403, 
and 405 of the Act.
    37. New Source means any facility or activity of this subcategory 
that meets the definition of ``new source'' under 40 CFR 122.2 and 
meets the criteria for determination of new sources under 40 CFR 
122.29(b) applied consistently with all of the following defintions: 
(i) The term water area as used in the term ``site'' in 40 CFR 122.29 
and 122.2 shall mean the water area and ocean floor beneath any 
exploratory, development, or production facility where such facility is 
conducting its exploratory, development or production activities, (ii) 
the term significant site preparation work as used in 40 CFR 122.29 
shall mean the process of surveying, clearing, or preparing an area of 
the ocean floor for the purpose of constructing or placing a 
development or production facility on or over the site.
    38. No Activity Zones include those areas identified by MMS where 
no structures, drilling rigs, or pipelines will be allowed. These zones 
are identified as lease stipulations in U.S. Department of the 
Interior, MMS, August 1990, Environmental Impact Statement for

[[Page 64901]]

Sales 131, 135, and 137 Western, Central, and Eastern Gulf of Mexico. 
Additional no activity zones may be identified by MMS during the life 
of this permit, and by the States of Alabama, Mississippi and Florida 
within their territorial waters (up to 3 miles offshore) where no 
structures, drilling rigs, or pipelines will be allowed.
    39. No Discharge Areas are areas specified by EPA where discharge 
of pollutants may not occur.
    40. Non-Operational Leases are those leases on which no discharge 
has taken place within 2 years prior to the effective date of the new 
general permits.
    41. Operating Facilities are leases on which a discharge has taken 
place within 2 years of the effective date of the new general permits.
    42. Packer Fluids are low solids fluids between the packer, 
production string, and well casing. They are considered to be workover 
fluids.
    43. Priority Pollutants are the 126 chemicals or elements 
identified by EPA, pursuant to section 307 of the Clean Water Act and 
40 CFR 401.15.
    44. Produced Sand is sand and other solids removed from the 
produced waters. Produced sand also includes desander discharge from 
produced water waste stream and blowdown of water phase from produced 
water treating systems.
    45. Produced Water is water and particulate matter associated with 
oil and gas producing formations. Produced water includes small volumes 
of treating chemicals that return to the surface with the produced 
fluids and pass through the produced water treating system.
    46. Sanitary Waste means human body waste discharged from toilets 
and urinals.
    47. Severe Property Damage means substantial physical damage to 
property, damage to the treatment facilities which cause them to become 
inoperable, or substantial and permanent loss of natural resources 
which can reasonably be expected to occur in the absence of a bypass. 
Severe property damage does not mean economic loss caused by delays in 
production.
    48. Sheen means a silvery or metallic sheen, gloss, or increased 
reflectivity; visual color; iridescence; or oil slick on the water 
surface.
    49. Source Water and Sand are the water and entrained solids 
brought to the surface from non-hydrocarbon bearing formations for the 
purpose of pressure maintenance or secondary recovery.
    50. Spotting means the process of adding a lubricant (spot) 
downhole to free stuck pipe.
    51. Territorial Seas means the belt of the seas measured from the 
line of ordinary low water along that portion of the coast which is in 
direct contact with the open sea and the line marking the seaward limit 
of inland waters, and extending seaward a distance of three miles.
    52. Trace Amounts means that if materials added downhole as well 
treatment, completion, or workover fluids do not contain priority 
pollutants then the discharge is assumed not to contain priority 
pollutants except possibly in trace amounts.
    53. Uncontaminated Ballast/Bilge water means seawater added or 
removed to maintain proper draft that does not come in contact with 
surfaces that may cause contamination.
    54. Uncontaminated Seawater means seawater that is returned to the 
sea without the addition of chemicals. Included are (1) discharges of 
excess seawater that permit the continuous operation of fire control 
and utility lift pumps, (2) excess seawater from pressure maintenance 
and secondary recovery projects, (3) water released during the training 
and testing of personnel in fire protection, (4) seawater used to 
pressure test piping, and (5) once through non-contact cooling water.
    55. Upset means an exceptional incident in which there is 
unintentional and temporary noncompliance with technology-based permit 
effluent limitations because of factors beyond the reasonable control 
of the permittee. An upset does not include noncompliance to the extent 
caused by operational error, improperly designed treatment facilities, 
inadequate treatment facilities, lack of preventive maintenance, or 
careless or improper operation.
    56. Well treatment fluids are any fluid used to restore or improve 
productivity by chemically or physically altering hydrocarbon-bearing 
strata after a well has been drilled. These fluids move into the 
formation and return to the surface as a slug with the produced water. 
Stimulation fluids include substances such as acids, solvents, and 
propping agents.
    57. Workover fluids are salt solutions, weighted brines, polymers, 
and other specialty additives used in a producing well to allow safe 
repair and maintenance or abandonment procedures. High solids drilling 
fluids used during workover operations are not considered workover 
fluids by definition and therefore must meet drilling fluid effluent 
limitations before discharge may occur. Packer fluids, low solids 
fluids between the packer, production string, and well casing are 
considered to be workover fluids and must meet only the effluent 
requirements imposed on workover fluids.
    58. The term MGD means million gallons per day.
    59. The term mg/l means milligrams per liter or parts per million 
(ppm).
    60. The term ug/l means micrograms per liter or part per billion 
(ppb).

Existing Sources

              Table 2.--Effluent Limitations, Prohibitions, and Monitoring Requirements for the Eastern Gulf of Mexico NPDES General Permit             
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                          Regulated and                                         Monitoring requirement                                  
             Discharge                 monitored discharge    Discharge limitation/ ----------------------------------------------   Recorded/reported  
                                            parameter              prohibition       Measurement frequency    Sample type/method           value        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Drilling Fluids....................  Oil-based Drilling      No discharge.                                                                              
                                      Fluids.                                                                                                           
                                     Oil-contaminated        No discharge.                                                                              
                                      Drilling Fluids.                                                                                                  
                                     Drilling Fluids to      No discharge.                                                                              
                                      Which Diesel Oil has                                                                                              
                                      been Added.                                                                                                       

[[Page 64902]]

                                                                                                                                                        
                                     Mercury and Cadmium in  No discharge of         Once per new source    Flame and flameless    mg Hg and mg Cd/kg in
                                      Barite.                 drilling fluids if      of barite used.        AAS.                   stock barite.       
                                                              added barite contains                                                                     
                                                              Hg in excess of 1.0                                                                       
                                                              mg/kg or Cd in excess                                                                     
                                                              of 3.0 mg/kg (dry wt).                                                                    
                                     Toxicity a............  30,000 ppm daily        Once/month...........  Grab/96-hr LC50 using  Minimum LC50 of tests
                                                              minimum.               Once/end of well b...   Mysidopsis bahia;      performed and       
                                                             30,000 ppm monthly      Once/month...........   Method at 58 FR        monthly average     
                                                              average minimum.                               12507.                 LC50.               
                                     Free Oil..............  No free oil...........  Once/day prior to      Static sheen; Method   Number of days sheen 
                                                                                      discharge.             at 58 FR 12506.        observed.           
                                     Maximum Discharge Rate  1,000 barrels/hr......  Once/day.............  Estimate.............  Max. hourly rate in  
                                                                                                                                    bbl/hr.             
                                     Mineral Oil...........  Mineral oil may be                                                                         
                                                              used only as a                                                                            
                                                              carrier fluid,                                                                            
                                                              lubricity additive,                                                                       
                                                              or pill.                                                                                  
                                     Drilling Fluids         Record................  Once/well............  Inventory............  Chemical             
                                      Inventory.                                                                                    constituents.       
                                     Volume................  Report................  Once/month...........  Estimate.............  Monthly total in bbl/
                                                                                                                                    month.              
Drill Fluids (Continued)...........  Within 1000 Meters of   No discharge.                                                                              
                                      an Areas of                                                                                                       
                                      Biological Concern                                                                                                
                                      (ABC).                                                                                                            
Drill Cuttings.....................                                                                                                                     
(4)Note: Drill cuttings are subject                                                                                                                     
 to the same limitations/                                                                                                                               
 prohibitions as drilling fluids                                                                                                                        
 except Maximum Discharge Rate.                                                                                                                         
                                     Free Oil..............  No free oil...........  Once/day prior to      Static sheen; Method   Number of days sheen 
                                                                                      discharge.             at 58 FR 12506.        observed.           
                                     Volume................  Report................  Once/month...........  Estimate.............  Monthly total in bbl/
                                                                                                                                    month.              
Produced Water.....................  Oil and Grease........  42 mg/l daily maximum   Once/month c.........  Grab/Gravimetric.....  Daily max. and       
                                                              and 29 mg/l monthly                                                   monthly avg.        
                                                              average.                                                                                  
                                     Toxicity..............  Acute toxicity (LC50);  Once/month...........  Grab/96-hour LC50      Minimum LC50 for both
                                                              critical dilution as                           using Mysidopsis       species and full    
                                                              specified by the                               bahia and sheepshead   laboratory report.  
                                                              requirements at Part                           minnows (Method in                         
                                                              I.B.3(a) and Appendix                          EPA/600/4-85/013).                         
                                                              A of this permit.                                                                         
                                     Flow (bbl/month)......  ......................  Once/month...........  Estimate.............  Monthly rate.        
                                     Within 1000 meters of   No discharge.                                                                              
                                      an Area of Biological                                                                                             
                                      Concern (ABC).                                                                                                    
Deck Drainage......................  Free Oil..............  No free oil...........  Once/day when          Visual sheen.........  Number of days sheen 
                                                                                      discharging d.                                observed            
                                     Volume (bbl/month)....  ......................  Once/month...........  Estimate.............  Monthly total.       
Produced Sand......................  No Discharge.                                                                                                      
Well Treatment, Completion, and      Free Oil..............  No free oil...........  Once/day when          Static sheen.........  Number of days sheen 
 Workover Fluids (includes packer                                                     discharging.                                  observed.           
 fluids) e.                                                                                                                                             
                                     Oil and Grease........  42 mg/l daily maximum   Once/month...........  Grab/Gravimetric.....  Daily max. and       
                                                              and 29 mg/l monthly                                                   monthly avg.        
                                                              average.                                                                                  
                                     Priority Pollutants...  No priority pollutants  .....................  Monitor added          .....................
                                                                                                             materials.                                 
                                     Volume (bbl/month)....  ......................  Once/month...........  Estimate.............  Monthly total.       
Sanitary Waste (Continuously manned  Solids................  No floating solids....  Once/day, in daylight  Observation..........  Number of days solids
 by 10 or more persons) f.                                                                                                          observed.           
                                     Residual Chlorine.....  At least (but as close  Once/month...........  Grab/Hach CN-66-DPD..  Concentration.       
                                                              to) 1 mg/l.                                                                               
                                     Flow (MGD)............  ......................  Once/month...........  Estimate.                                   

[[Page 64903]]

                                                                                                                                                        
Sanitary Waste (Continuously manned  Solids................  No floating solids....  Once/day, in daylight  Observation..........  Number of days solids
 by 9 or fewer persons or                                                                                                           observed.           
 intermittently by any) f.                                                                                                                              
Domestic Waste.....................  Solids................  No floating solids; no  Once/day following     Observation..........  Number of days solids
                                                              food waste within 12    morning or midday                             observed.           
                                                              miles of land;          meal at time of                                                   
                                                              comminuted food waste   maximum expected                                                  
                                                              smaller than 25-mm      discharge.                                                        
                                                              beyond 12 miles.                                                                          
Miscellaneous Discharges--           Free Oil..............  No free oil...........  Once/day when          Visual Sheen.........  Number of days sheen 
                                                                                      discharging.                                  observed.           
    Desalination Unit Blowout                                                                                                                           
     Preventer Fluid                                                                                                                                    
    Uncontaminated Ballast/Bilge                                                                                                                        
     Water                                                                                                                                              
    Mud, Cuttings, and Cement at                                                                                                                        
     the Seafloor                                                                                                                                       
    Uncontaminated Seawater                                                                                                                             
    Boiler Blowdown                                                                                                                                     
    Source Water and Sand                                                                                                                               
    Diatomaceous Earth Filter Media                                                                                                                     
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
a Toxicity test to be conducted using suspended particulate phase (SPP) of a 9:1 seawater:mud dilution. The sample shall be taken beneath the shale     
  shaker, or if there are no returns across the shaker, the sample must be taken from a location that is characteristic of the overall mud system to be 
  discharged.                                                                                                                                           
b Sample shall be taken after the final log run is completed and prior to bulk discharge.                                                               
c The daily maximum concentration may be based on the average of up to four grab sample results in the 24 hour period.                                  
d When discharging and facility is manned. Monitoring shall be accomplished during times when observation of a visual sheen on the surface of the       
  receiving water is possible in the vicinity of the discharge.                                                                                         
e No discharge of priority pollutants except in trace amounts. Information on the specific chemical composition shall be recorded but not reported      
  unless requested by EPA.                                                                                                                              
f Any facility that properly operates and maintains a marine sanitation device (MSD) that complies with pollution control standards and regulations     
  under Section 312 of the Act shall be deemed to be in compliance with permit limitations for sanitary waste. The MSD shall be tested yearly for proper
  operation and test results maintained at the facility.                                                                                                

New Sources

              Table 3.--Effluent Limitations, Prohibitions, and Monitoring Requirements for the Eastern Gulf of Mexico NPDES General Permit             
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            Monitoring requirement                      
                                          Regulated and       Discharge limitation/ --------------------------------------------------------------------
             Discharge                 monitored discharge         prohibition                                                       Recorded/reported  
                                            parameter                                Measurement frequency    Sample type/method           value        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Drilling Fluids....................  Oil-based Drilling      No discharge.                                                                              
                                      Fluids.                                                                                                           
                                     Oil-contaminated        No discharge.                                                                              
                                      Drilling Fluids.                                                                                                  
                                     Drilling Fluids to      No discharge.                                                                              
                                      Which Diesel Oil has                                                                                              
                                      been Added.                                                                                                       
                                     Mercury and Cadmium in  No discharge of         Once per new source    Flame and flameless    mg Hg and mg Cd/kg in
                                      Barite.                 drilling fluids if      of barite used.        AAS.                   stock barite.       
                                                              added barite contains                                                                     
                                                              Hg in excess of 1.0                                                                       
                                                              mg/kg or Cd in excess                                                                     
                                                              of 3.0 mg/kg (dry wt).                                                                    

[[Page 64904]]

                                                                                                                                                        
                                     Toxicity a............  30,000 ppm daily        Once/month...........  Grab/96-hr LC50 using  Minimum LC50 of tests
                                                              minimum.               Once/end of well b...   Mysidopsis bahia;      performed and       
                                                             30,000 ppm monthly      Once/month...........   Method at 58 FR        monthly average     
                                                              average minimum.                               12507.                 LC50.               
                                     Free Oil..............  No free oil...........  Once/day prior to      Static sheen; Method   Number of days sheen 
                                                                                      discharge.             at 58 FR 12506.        observed.           
                                     Maximum Discharge Rate  1,000 barrels/hr......  Once/day.............  Estimate.............  Max. hourly rate in  
                                                                                                                                    bbl/hr.             
                                     Mineral Oil...........  Mineral oil may be                                                                         
                                                              used only as a                                                                            
                                                              carrier fluid,                                                                            
                                                              lubricity additive,                                                                       
                                                              or pill.                                                                                  
                                     Drilling Fluids         Record................  Once/well............  Inventory............  Chemical             
                                      Inventory.                                                                                    constituents.       
                                     Volume................  Report................  Once/month...........  Estimate.............  Monthly total in bbl/
                                                                                                                                    month.              
                                     Within 1000 Meters of   No discharge.                                                                              
                                      an Area of Biological                                                                                             
                                      Concern (ABC).                                                                                                    
Drill Cuttings.....................                                                                                                                     
(4)Note: Drill cuttings are subject                                                                                                                     
 to the same limitations/                                                                                                                               
 prohibitions as drilling fluids                                                                                                                        
 except Maximum Discharge Rate.                                                                                                                         
                                     Free Oil..............  No free oil...........  Once/day prior to      Static sheen; Method   Number of days sheen 
                                                                                      discharge.             at 58 FR 12506.        observed.           
                                     Volume................  Report................  Once/month...........  Estimate.............  Monthly total in bbl/
                                                                                                                                    month.              
Produced Water.....................  Oil and Grease........  42 mg/l daily maximum   Once/month c.........  Grab/Gravimetric.....  Daily max. and       
                                                              and 29 mg/l monthly                                                   monthly avg.        
                                                              average.                                                                                  
                                     Toxicity..............  Acute toxicity (LC50);  Once/month...........  Grab/96-hour LC50      Minimum LC50 for both
                                                              critical dilution as                           using Mysidopsis       species and full    
                                                              specified by the                               bahia and sheepshead   laboratory report.  
                                                              requirements at Part                           minnows (Method in                         
                                                              I.B.3(a) and Appendix                          EPA/600/4-85/013).                         
                                                              A of this permit.                                                                         
                                     Flow (bbl/month)......  ......................  Once/month...........  Estimate.............  Monthly rate.        
                                     Within 1000 meters of   No discharge..........                                                                     
                                      an Area of Biological                                                                                             
                                      Concern (ABC).                                                                                                    
Deck Drainage......................  Free Oil..............  No free oil...........  Once/day when          Visual sheen.........  Number of days sheen 
                                                                                      discharging d.                                observed.           
                                     Volume (bbl/month)....  ......................  Once/month...........  Estimate.............  Monthly total.       
Produced Sand......................  No Discharge.                                                                                                      
Well Treatment, Completion, and      Free Oil..............  No free oil...........  Once/day when          Static sheen.........  Number of days sheen 
 Workover Fluids (includes packer                                                     discharging.                                  observed.           
 fluids) e.                                                                                                                                             
                                     Oil and Grease........  42 mg/l daily maximum   Once/monthc..........  Grab/Gravimetric.....  Daily max. and       
                                                              and 29 mg/l monthly                                                   monthly avg.        
                                                              average.                                                                                  
                                     Priority Pollutants...  No priority pollutants  .....................  Monitor added                               
                                                                                                             materials.                                 
                                     Volume (bbl/month)....  ......................  Once/month...........  Estimate.............  Monthly total.       
Sanitary Waste (Continuously manned  Solids................  No floating solids....  Once/day, in daylight  Observation..........  Number of days solids
 by 10 or more persons) f.                                                                                                          observed.           
                                     Residual Chlorine.....  At least (but as close  Once/month...........  Grab/Hach CN-66-DPD..  Concentration.       
                                                              to) 1 mg/l.                                                                               
                                     Flow (MGD)............  ......................  Once/month...........  Estimate.                                   
Sanitary Waste (Continuously manned  Solids................  No floating solids....  Once/day, in daylight  Observation..........  Number of days solids
 by 9 or fewer persons or                                                                                                           observed.           
 intermittently by any) g.                                                                                                                              

[[Page 64905]]

                                                                                                                                                        
Domestic Waste.....................  Solids................  No floating solids; no  Once/day following     Observation..........  Number of days solids
                                                              food waste within 12    morning or midday                             observed.           
                                                              miles of land;          meal at time of                                                   
                                                              comminuted food waste   maximum expected                                                  
                                                              smaller than 25-mm      discharge.                                                        
                                                              beyond 12 miles.                                                                          
Miscellaneous Discharges--           Free Oil..............  No free oil...........  Once/day when          Visual sheen.........  Number of days sheen 
                                                                                      discharging.                                  observed.           
    Desalination Unit Blowout                                                                                                                           
     Preventer Fluid.                                                                                                                                   
    Uncontaminated Ballast/Bilge                                                                                                                        
     Water Mud, Cuttings, and                                                                                                                           
     Cement at the Seafloor.                                                                                                                            
    Uncontaminated Seawater.                                                                                                                            
    Boiler Blowdown                                                                                                                                     
    Source Water and Sand.                                                                                                                              
    Diatomaceous Earth Filter                                                                                                                           
     Media.                                                                                                                                             
--------------------------------------------------------------------------------------------------------------------------------------------------------
a Toxicity test to be conducted using suspended particulate phase (SPP) of a 9:1 seawater:mud dilution. The sample shall be taken beneath the shale     
  shaker, or if there are no returns across the shaker, the sample must be taken from a location that is characteristic of the overall mud system to be 
  discharged.                                                                                                                                           
b Sample shall be taken after the final log run is completed and prior to bulk discharge.                                                               
c The daily maximum concentration may be based on the average of up to four grab sample results in the 24 hour period.                                  
d When discharging and facility is manned. Monitoring shall be accomplished during times when observation of a visual sheen on the surface of the       
  receiving water is possible in the vicinity of the discharge.                                                                                         
e No discharge of priority pollutants except in trace amounts. Information on the specific chemical composition shall be recorded but not reported      
  unless requested by EPA.                                                                                                                              
f Any facility that properly operates and maintains a marine sanitation device (MSD) that complies with pollution control standards and regulations     
  under Section 312 of the Act shall be deemed to be in compliance with permit limitations for sanitary waste. The MSD shall be tested yearly for proper
  operation and test results maintained at the facility.                                                                                                

Appendix A

    Effluent concentrations at the edge of a 100-m mixing zone will be 
modeled by EPA for each produced water outfall listed in an operator's 
notice of commencement of production operations. This projected 
effluent concentration will be used to calculate the permit limitation 
for produced water toxicity (0.01 x projected effluent concentration). 
The discharge will be modeled using each facility's measured water 
column conditions and discharge configurations as input for the CORMIX 
expert system for hydrodynamic mixing zone analysis.
    The notice of commencement of production operations will be 
accompanied by a completed CORMIX input parameter table presented as 
Table A-1. The input parameters required are the following.

Anticipated average discharge rate (bbl/day)
Water depth (meters)
Discharge pipe location in the water column (meters from surface or 
bottom)
Discharge pipe orientation with respect to the prevailing current 
(degrees; 0 deg. is coflowing)
Discharge pipe opening diameter (meters)

    These parameters are site-specific parameters that the operator 
must determine through monitoring or measurement and certify as true to 
the best of their knowledge. All other input parameters for the CORMIX 
model are established as the following.

Discharge density: 1070.2 kg/m3
Discharge concentration: 100%
Legal mixing zone: 100 meters
Darcy-Wiesbach constant: 0.2
Current speed: 5 cm/sec
Discharge pipe orientation: Coflowing with current
Linear water column density profile;
    Surface density: 1,023.0 kg/m3
    Density gradient: 0.163 kg/m3/m

    The Region will conduct the model using the operator's input 
parameters and report the toxicity limitation to the operator. If the 
parameters supplied by the operator change during the life of the 
permit (e.g., average discharge rate increases or decreases, a change 
in discharge pipe orientation, etc.), the operator should submit the 
new input parameters to the Region so that a new toxicity limitation 
can be calculated.
    Compliance with the toxicity limitation will be demonstrated by 
conducting 96-hour toxicity tests using mysids (Mysidopsis bahia) and 
sheepshead minnows (Cyprinodon variegatus) each month. The LC50 for 
each species will be reported on the DMR and a copy of the complete 
laboratory report shall be submitted.

Table A-1.--CORMIX1 Input Parameters for Toxicity Limitation 
Calculation

Permit number: GMG28 ________
Company:

[[Page 64906]]

----------------------------------------------------------------------
Contact name/Phone number:
----------------------------------------------------------------------
Lease block/number:
----------------------------------------------------------------------
Facility name:
----------------------------------------------------------------------

                                                                        
            Parameter                              Units                
                                                                        
Discharge Rate                    ________ Average bbl/day              
Water depth                       ________ meters                       
                                                                        


Discharge pipe location in the water column
----------------------------------------------------------------------
meters from ________ water surface, or ________ seafloor

Discharge pipe orientation with respect to the seafloor:
----------------------------------------------------------------------
degrees (90 deg. is directed toward the surface); (-90 deg. is 
directed toward the seafloor)

Discharge pipe opening diameter:
----------------------------------------------------------------------
meters
[FR Doc. 96-31056 Filed 12-6-96; 8:45 am]
BILLING CODE 6560-50-P