94-23419. Draft NPDES General Permit for Offshore Oil and Gas Operations on the Outer Continental Shelf (OCS) and State Waters of Alaska: Arctic NPDES General Permit  

  • [Federal Register Volume 59, Number 181 (Tuesday, September 20, 1994)]
    [Unknown Section]
    [Page 0]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 94-23419]
    
    
    [[Page Unknown]]
    
    [Federal Register: September 20, 1994]
    
    
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    ENVIRONMENTAL PROTECTION AGENCY
    [FRL-5073-7]
    
     
    
    Draft NPDES General Permit for Offshore Oil and Gas Operations on 
    the Outer Continental Shelf (OCS) and State Waters of Alaska: Arctic 
    NPDES General Permit
    
    AGENCY: Environmental Protection Agency.
    
    ACTION: Notice of Draft NPDES General Permit.
    
    -----------------------------------------------------------------------
    
    SUMMARY: The Regional Administrator, Region 10, is proposing to issue a 
    draft National Pollutant Discharge Elimination System (NPDES) general 
    permit for oil and gas stratigraphic test and exploration wells on the 
    Alaskan Outer Continental Shelf and contiguous state waters. The 
    proposed Arctic general permit will authorize offshore oil and gas 
    stratigraphic test and exploration wells in the federal and state 
    waters of the Beaufort and Chukchi Seas. Development and production 
    wells are not authorized to discharge by this general permit.
        Unlike previous general permits for the Beaufort and Chukchi Seas, 
    the Arctic general permit will cover a geographic area not defined by 
    specific state and federal lease sale tracts. Rather, the area of 
    coverage includes the following:
    
    --Federal waters of the Beaufort Sea and Chukchi Sea planning basins as 
    defined by the Minerals Management Service (MMS) (see U.S. Dept. of the 
    Interior, 1992), and
    --State waters contiguous to the landward boundary of the Beaufort and 
    Chukchi Sea planning basins.
    
        The permit will authorize discharges from exploratory operations in 
    all areas offered for lease by the U.S. Department of the Interior's 
    Minerals Management Service (MMS) included in previous general permits 
    issued by EPA for the Beaufort and Chukchi Seas. This includes federal 
    lease sales 71, 87, 97, and 109; and state lease sales 36, 39, 43, and 
    43A, Federal/State lease sale BF; and ``contiguous state lease sales'' 
    which were covered by the modification for the Beaufort Sea II NPDES 
    general permit (54 FR 39574, September 27, 1989). Additional lease sale 
    areas not previously covered by a permit will include, but are not 
    limited to, the following: MMS federal lease sales 124 and 126; and 
    state lease sales 65 and 68.
        A brief description of the basis for the conditions and 
    requirements of the proposed permit is given in the fact sheet 
    published below.
    
    PUBLIC COMMENT PERIOD: Interested persons may submit written comments 
    on the draft general permit to the attention of the Director, Water 
    Division, at the address below. All comments should include the name, 
    address, and telephone number of the commenter and a concise statement 
    of the exact basis of any comment and the relevant facts upon which it 
    is based. Comments must be received by the regional office by November 
    21, 1994.
    
    PUBLIC HEARING: Public hearings on the proposed general permit are 
    tentatively scheduled to be held in Anchorage and Barrow, Alaska. The 
    Barrow hearing will be held at the North Slope Borough Assembly 
    Chambers on November 2, 1994, from 12 p.m. to 3 p.m. The Anchorage 
    hearing will be held at the Federal Building, Room 137, 710 ``C'' 
    Street, Anchorage, Alaska on November 3, 1994, from 12 p.m. until 4 
    p.m. Persons interested in making a statement at the hearing must 
    contact Debra Packard at the address below or at (206) 553-1266 by 4:00 
    p.m. on October 24, 1994.
        Either or both of the public hearings will be cancelled if 
    insufficient interest is expressed in them. Interested persons can 
    contact Debra Packard at (206) 553-1266 during the hours of 8:30 a.m. 
    and 4 p.m. PDT on October 25, 1994, to confirm that the hearings will 
    take place. At the hearings, interested persons may submit oral or 
    written statements concerning the draft general permit.
    
    ADMINISTRATIVE RECORD: The administrative record for the draft permit 
    is available for public review at EPA, Region 10, at the address listed 
    below.
    
    ADDRESSES: Public comments and requests for coverage should be sent to: 
    Environmental Protection Agency, Region 10, Attn: Ocean Programs 
    Section WD-137, 1200 Sixth Avenue, Seattle, Washington 98101.
    
    FOR FURTHER INFORMATION CONTACT:Anne Dailey or Eileen Hileman, both of 
    Region 10, at the address listed above or telephone (206) 553-2110 or 
    (206) 553-6513, respectively. Copies of the draft general permit and 
    today's publication will be provided upon request.
    
    FACT SHEET
    
    I. General Permits and Requests for Individual NPDES 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. Under EPA's regulations [40 CFR 122.28(a)(2)], EPA 
    may issue a single general permit to a category of point sources 
    located within the same geographic area if the regulated point sources:
    
    --Involve the same or substantially similar types of operations;
    --Discharge the same types of wastes;
    --Require the same effluent limitations or operating conditions;
    --Require similar monitoring requirements; and
    --In the opinion of the Regional Administrator, are more appropriately 
    controlled under a general permit than under individual permits.
    
        In addition, under EPA regulations [40 CFR 122.28(c)(1)], the 
    Regional Administrator shall issue general permits covering discharges 
    from offshore oil and gas facilities within the Region's jurisdiction. 
    Where the offshore area includes areas for which separate permit 
    conditions are required, such as areas of environmental concern, a 
    separate individual or general permit may be required by the Regional 
    Administrator. The Regional Administrator has determined that 
    exploratory oil and gas facilities operating in the area described in 
    this general NPDES permit are more appropriately controlled by a 
    general permit than by individual permits.
        Any owner and/or operator authorized to discharge under a general 
    permit may request to be excluded from coverage under the general 
    permit by applying for an individual permit as provided by 40 CFR 
    122.28(b). The operator shall submit an application together with the 
    reasons supporting the request to the Director, Water Division, EPA, 
    Region 10 (``Director''). A source located within a general permit 
    area, excluded from coverage under the general permit solely because it 
    already has an individual permit (i.e., a permit that has not been 
    continued under the Administrative Procedure Act), may request that its 
    individual permit be revoked, and that it be covered by the general 
    permit. Upon revocation of the individual permit, the general permit 
    shall apply. Procedures for modification, revocation, termination, and 
    processing of NPDES permits are provided by 40 CFR 122.62-122.64. 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.
    
    II. Covered Facilities and Nature of Discharges
    
    A. Types of Discharges Authorized
    
        The proposed general permit will authorize the following discharges 
    from exploratory offshore oil and gas operations: Drilling mud and 
    drilling cuttings; deck drainage; sanitary wastes; domestic wastes; 
    desalination unit wastes; blowout preventer fluid; boiler blowdown; 
    fire control system test water; non-contact cooling water; 
    uncontaminated ballast water; uncontaminated bilge water; excess cement 
    slurry; mud, cuttings, and cement at the seafloor; and test fluids. 
    Drilling muds and cuttings are the major pollutant sources discharged 
    from exploratory operations. Further description of discharges are 
    given in Part V below. When issued, the proposed general permit will 
    establish effluent limitations, standards, prohibitions, and other 
    conditions on the authorized discharges from the facilities covered.
    
    B. Types of Facilities Covered
    
        The general permit proposed today authorizes the discharge of 
    specific operational wastewaters from offshore exploratory oil and gas 
    operations located in federal and state waters. In order to be 
    authorized to discharge under this permit, the operator of such 
    exploratory operations must be registered with EPA as the NPDES 
    permittee. Development and production operations are not covered by 
    this general permit. Exploratory operations are defined as those 
    operations involving the drilling of wells to determine the nature of 
    potential hydrocarbon reserves. Exploration facilities covered by this 
    general permit are included in the Offshore Subcategory of the Oil and 
    Gas Extraction Point Source Category (40 CFR part 435, subpart A). 
    Under the proposed permit, the number of wells from which discharges 
    may occur is limited to a maximum of five at a single site.
    
    C. Areas Covered
    
        The area of coverage under previous general permits for offshore 
    oil and gas activities in Alaska was linked directly to federal or 
    state lease sales. For a variety of reasons, EPA is now planning to tie 
    the area of coverage to MMS planning basins and all contiguous state 
    waters. This method of defining the area of coverage will ensure that 
    all areas likely to be leased during the term of this general permit 
    will be covered. While the planning basins are generally larger than 
    the specific sale areas offered for lease by MMS, discharges under this 
    permit would occur in only those areas successfully leased. EPA 
    believes that this is a more practicable way of addressing the area of 
    coverage. Hence, areas covered by the proposed Arctic NPDES general 
    permit include the Beaufort Sea and Chukchi Sea planning basins as 
    defined by MMS (U.S. Department of the Interior, 1992), and state 
    waters contiguous to the landward boundary of the Beaufort Sea and 
    Chukchi Sea planning basins. The general permit does not authorize 
    discharges into any wetlands adjacent to the territorial waters of 
    Alaska or from facilities in the Onshore or Coastal Subcategories as 
    defined in 40 CFR Part 435.
    
    III. 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 (e), 1316, 1317, 1318 
    and 1361; 86 Stat. 816, Public Law 92-500; 91 Stat. 1567, Public Law 
    95-217; 101 Stat. 7, Public Law 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 the permit. The general requirements 
    of these Sections fall into three categories, which are described 
    below. A discussion of the basis for specific permit conditions follows 
    in Section V of this fact sheet.
    
    A. Technology-Based Effluent Limitations
    
    1. BPT Effluent Limitations
        The Act requires particular classes of industrial dischargers to 
    meet effluent limitations established by EPA. EPA promulgated effluent 
    limitations guidelines requiring Best Practicable Control Technology 
    Currently Available (BPT) for the Offshore Subcategory of the Oil and 
    Gas Extraction Point Source Category (40 CFR part 435, subpart A) 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 guidelines for sanitary waste require that 
    the concentration of chlorine be maintained as close to 1 milligrams/
    liter as possible in discharges from facilities housing ten or more 
    persons. For facilities continuously staffed by nine or fewer persons 
    or only intermittently staffed by any number of persons, the BPT 
    guideline for sanitary waste require no discharge of floating solids. A 
    ``no floating solids'' guideline also applies to domestic waste.
    2. BAT and BCT Effluent Limitations
        As soon as practicable but in no case later than 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 offshore oil and gas operations 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, 1992) 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). This permit incorporates BAT 
    and BCT effluent limitations based upon the BAT and BCT effluent 
    limitations guidelines.
        New Source Performance Standards (NSPS) are not incorporated in 
    this general permit. Per the guidelines, NSPS are not applicable to 
    exploratory oil and gas operations (58 FR 12457, March 4, 1993). 
    Exploratory operations are defined in the preamble to the guidelines as 
    ``new dischargers'' (rather than ``new sources'') on the basis that 
    they do not constitute ``significant site preparation''. NSPS do apply 
    to certain development and production, but not exploratory, operations.
        This will be the first oil and gas general permit issued by Region 
    10 incorporating the new effluent limitation guidelines. Offshore 
    exploratory oil and gas wastestreams for which there are new BAT and 
    BCT effluent guidelines include: Drilling fluids and cuttings, deck 
    drainage, sanitary waste, and domestic wastes. This permit incorporates 
    BAT and BCT effluent limitations from the guidelines for the 
    aforementioned wastestreams (see also Sections IV and V below). Based 
    upon EPA's best professional judgement, limitations on test fluids have 
    been established to reflect guidelines applicable to produced water.
        The new effluent guidelines do not specifically address other 
    wastestreams controlled by this permit (e.g., desalination unit wastes; 
    blowout preventer fluid; boiler blowdown; fire control system test 
    water; non-contact cooling water; uncontaminated ballast water; 
    uncontaminated bilge water; excess cement slurry; and muds, cuttings, 
    cement at seafloor). In the absence of effluent limitation guidelines 
    for these wastestreams, permit conditions must be established using 
    Best Professional Judgement (BPJ) procedures (40 CFR Sections 122.43, 
    122.44, and 125.3). As with previous oil and gas general permits issued 
    by Region 10, this permit incorporates BAT and BCT effluent limitations 
    based on the Agency's Best Professional Judgement.
        As required by Section 304(b)(2)(B) of the Act, in developing the 
    BPJ/BAT permit conditions, the Agency considered the age of equipment 
    and facilities involved, the process employed, the engineering aspects 
    of the application of various types of control techniques, process 
    changes, the cost of achieving such effluent reduction, non-water 
    quality environmental impact (including energy requirements), and such 
    other factors as the Director deemed appropriate.
        The types of equipment and processes employed in exploratory 
    drilling operations are well known to the Agency. Region 10 has issued 
    numerous general and individual permits for exploratory oil and gas 
    operations. The records for this permit and those earlier permits 
    thoroughly discuss the types of equipment, facilities and processes 
    employed in exploratory drilling operations.
        With regard to the engineering aspects of the application of 
    various types of control techniques, there are no BAT permit 
    limitations based on installation of control equipment. BAT permit 
    limitations based on the newly issued guidelines can be achieved 
    through product substitution for drilling muds and cuttings. Any costs 
    of achieving the effluent limitations and any non-water quality 
    environmental impacts were also evaluated by the Agency where the 
    guidelines are applicable. A discussion of such evaluations is 
    presented below with respect to any limitation where applicable.
        As required by Section 304(b)(4)(B) of the Act, the same factors as 
    in BAT are considered in determining BCT permit conditions, with one 
    exception. Rather than considering ``the cost of achieving such 
    effluent reduction,'' any BCT determination includes ``consideration of 
    the reasonableness of the relationship between the costs of attaining a 
    reduction in effluents and the effluent reduction benefits derived, and 
    the comparison of the cost and level of reduction of such pollutants 
    from publicly owned treatment works to the cost and level of reduction 
    of such pollutants from a class or category of industrial sources.'' 
    BCT effluent limitations cannot be less stringent than BPT; therefore, 
    if the candidate industrial technology fails the BCT ``cost test'', BCT 
    effluent limitations are set equal to BPT.
    
    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 be issued in accordance with guidelines for 
    determining the 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.'' (45 FR 65942, October 
    3, 1980)
        If EPA determines that the discharge will cause unreasonable 
    degradation, an NPDES permit will not be issued. If a determination of 
    unreasonable degradation cannot be made because of a lack of sufficient 
    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 must be halted or additional 
    permit limitations established.
        The Director has concluded that there is sufficient information to 
    determine that exploratory oil and gas facilities operating under the 
    effluent limitations and conditions in this general permit will not 
    cause unreasonable degradation of the marine environment pursuant to 
    the Ocean Discharge Criteria guidelines as long as discharge does not 
    occur shoreward of the 5 meter isobath (Tetra Tech, 1994a) as discussed 
    in Section V.B.4. of this fact sheet. Conditions imposed under Section 
    403(c) of the Act are discussed in Section V.B.4. below.
    
    C. State of Alaska Standards and Limitations
    
        All dischargers to State waters must ensure compliance with water 
    quality standards and with limitations imposed by the state as part of 
    its certification of NPDES permits under Section 401 of the Act. The 
    state waters of the Beaufort and Chukchi Seas have been classified by 
    the Alaska Department of Environmental Conservation (ADEC) as marine 
    waters with water use classes 2A through 2D (water supply; water 
    recreation; growth and propagation of fish, shellfish, other aquatic 
    life, and wildlife; and harvesting for consumption of raw mollusks or 
    other raw aquatic life). In the best professional judgement of Region 
    10, the requirements and discharge limitations in the proposed permit 
    will ensure compliance with the state water quality standards.
        In issuing this permit, EPA has considered Alaska's antidegradation 
    policy (18 AAC 70.010(c)). The exploratory discharges authorized under 
    this proposed permit are expected to have minimal impact because:
    
    --The relatively short duration of exploratory activities,
    --The intermittent nature of the discharges,
    --The limited areal extent of the discharges relative to the total area 
    of coverage, and
    --The controls placed on the discharges via the proposed NPDES permit.
    
    Given the above, and since the project is not expected to result in any 
    violations of state water quality criteria, EPA believes the project 
    complies with the state's antidegradation policy.
    
    D. Section 308 of the Clean Water Act
    
        Section 308 of the Act and 40 CFR 122.44(i) authorizes the Director 
    to 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 this 
    permit, as listed in the table below in Section V.
    
    IV. Summary of New or Changed Permit Conditions
    
        This section of the fact sheet is intended to provide readers with 
    a brief summary of the parts of the general permit which are 
    substantively different from the previous general permits for offshore 
    oil and gas exploratory activities in the Beaufort and Chukchi Seas. 
    For detailed discussion of the requirements and their bases, please 
    refer to Section V of this fact sheet. Many of the new and changed 
    requirements are a consequence of the final Effluent Limitations 
    Guidelines and New Source Performance Standards for the Offshore 
    Subcategory of the Oil and Gas Extraction Point Source Category 
    promulgated by EPA (see 40 CFR part 435, subpart A).
    
    Drilling Muds and Drilling Cuttings
    
    --Combination of wastestreams: In accordance with the guidelines, 
    drilling muds, drilling cuttings and washwater have been combined into 
    a single discharge wastestream called drilling fluids and drilling 
    cuttings (Discharge 001). Washwater had previously been combined with 
    drilling cuttings in a separate wastestream but washwater is now 
    covered as an intrinsic component of the drilling muds and cuttings 
    wastestream.
    --Discharge prohibitions: Under Section 403(c) of the Act, discharge of 
    drilling muds and cuttings is prohibited to waters shallower than 5 
    meters depth in accordance with computer modeling done in preparation 
    for this proposed permit. Previously discharge had been prohibited in 
    waters shallower than 2 meters.
    --Toxicity limit: A toxicity limit of a minimum of 30,000 ppm suspended 
    particulate phase (SPP) has been applied to the discharge in accordance 
    with the guidelines.
    --Oil content: In accordance with the guidelines, EPA has eliminated 
    the 10% by weight maximum oil limitation on cuttings in favor of the no 
    free oil limitation.
    --Barite: EPA has maintained the limitations on the mercury and cadmium 
    content of stock barite but has eliminated the case-by-case waiver 
    option present in previous permits. This waiver option has been 
    eliminated to ensure consistency with the effluent guidelines.
    --Mud Plan: EPA has included a requirement that a mud plan be developed 
    by operators to encourage operators to estimate in advance the toxicity 
    of the drilling muds and cuttings to ensure compliance with the 
    toxicity limitation. The individual NPDES permit recently issued to 
    Arco Alaska for operations in Cook Inlet contains a similar 
    requirement.
    --Area and Seasonal Restrictions: In addition to several continued 
    restrictions, based on Section 403(c) of the Act the proposed permit 
    also prohibits discharges within 3 miles of Kasegaluk Lagoon and its 
    passes.
    --Environmental monitoring: The requirements for environmental 
    monitoring are more specific and detailed. These changes reflect the 
    current level of specificity present in other NPDES permits issued by 
    Region 10.
    
    Domestic Wastes
    
    --Garbage (``All other domestic waste''): Under the Coast Guard 
    Regulations, discharges of garbage, including plastics, are prohibited 
    with one exception. Victual or food waste can be discharged with 
    restrictions. This requirement reflects the new offshore guidelines (58 
    FR 12506, March 4, 1993). Several definitions have been included to 
    clarify this new effluent parameter.
    
    Test Fluids
    
    --Oil and grease: Per EPA's best professional judgement and the new 
    guidelines, the oil and grease limitation on test fluids has been made 
    more stringent. The limitations are now 29 mg/l monthly average and 42 
    mg/l daily maximum.
    
    Discharge Limitations for All Wastestreams
    
    --Rubbish, Trash and Other Refuse: As proposed the permit will prohibit 
    the discharge of ``garbage'' including food wastes within 12 nautical 
    miles of nearest land. With restrictions, comminuted food waste may be 
    discharged further than 12 nautical miles from nearest land. Under the 
    proposed permit these limitations, which are already effective under 
    the Coast Guard regulations, will be incorporated into the Arctic 
    general permit for consistency purposes.
    
    Best Management Practice Plan Requirement
    
    --The proposed general permit requires permittees to develop and 
    implement a Best Management Practices (BMP) Plan which prevents or 
    minimizes the generation of pollutants, their release, and potential 
    release from the permitted facilities to the waters of the United 
    States.
    
    V. Specific Permit Conditions
    
    A. Approach
    
        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; and
        (3) evaluation of the Ocean Discharge Criteria for discharges, 
    assuming conditions in (1) and (2), above, were in place.
        Discussions of the specific effluent limitations and monitoring 
    requirements derived from (1) through (3) appear below in sections B. 
    through G. For convenience, these conditions and the regulatory basis 
    for each are cross-referenced by discharge in the following table:
    
    ----------------------------------------------------------------------------------------------------------------
                            Discharge and permit conditions                                  Statutory basis        
    ----------------------------------------------------------------------------------------------------------------
    Drilling Muds and Drilling Cuttings:                                                                            
        Toxicity limit............................................................  BAT.                            
        No diesel.................................................................  BAT.                            
        Cadmium & mercury in barite...............................................  BAT.                            
        No free oil...............................................................  BAT, BCT.                       
        No oil-based muds & cuttings..............................................  BAT, BCT.                       
        Chemical analysis.........................................................  Section 308.                    
        Inventory of added substances.............................................  Section 308.                    
        Monitoring volume discharged..............................................  Section 308.                    
        Mud plan..................................................................  Section 308.                    
        Flow rate limitations.....................................................  Section 403(c).                 
        Depth related limitations.................................................  Section 403(c).                 
        Area and seasonal requirements............................................  Section 403(c).                 
        Environmental monitoring requirements.....................................  Sect. 403(c), WQS.              
    Deck Drainage:                                                                                                  
        No free oil...............................................................  BAT, BCT, BPT.                  
        Monitor flow rate.........................................................  Section 308.                    
    Sanitary Wastes:                                                                                                
        No floating solids........................................................  BCT.                            
        Chlorine (facilities > 10 people).........................................  BCT.                            
        Monitor flow rate.........................................................  Section 308.                    
    Domestic Wastes:                                                                                                
        No foam...................................................................  BAT.                            
        No floating solids........................................................  BCT.                            
        All other domestic waste (garbage)........................................  BCT.                            
        Monitor flow rate.........................................................  Section 308.                    
    Miscellaneous Discharges (as defined in permit):                                                                
        No free oil...............................................................  BCT.                            
        Monitor flow rate.........................................................  Section 308.                    
    Test Fluids:                                                                                                    
        pH........................................................................  BCT.                            
        No free oil...............................................................  BCT.                            
        Oil and grease limit......................................................  BAT/BPJ.                        
        No discharge oil-based fluids.............................................  BAT.                            
        Monitor volume............................................................  Section 308.                    
    All Discharges:                                                                                                 
        No floating solids, foam or oily waste....................................  BCT.                            
        Surfactants, dispersants, and detergents..................................  BAT.                            
        Rubbish, trash and other refuse...........................................  BCT.                            
        Other toxic/non-conventional pollutants...................................  BAT/BCT.                        
        Best Management Practices Plan............................................  402(a)(1).                      
    ----------------------------------------------------------------------------------------------------------------
    
    B. Drilling Muds and Drill Cuttings
    
        The term ``drilling fluid'' generally includes all compositions of 
    fluids used to aid the production and removal of cuttings (particles 
    from geological formations) from a borehole in the earth. The essential 
    functions of drilling fluids are:
    
    --To carry cuttings to the surface,
    --To cool and clean drill bit,
    --To reduce friction in the borehole,
    --To maintain pressure balance between formation and borehole in 
    uncased sections of hole, and
    --To assist in collection and interpretation of information available 
    from cuttings, cores, electrical logs, etc.
    
        All drilling fluids fall into one of three classes: gas-based 
    (e.g., mist or foam), water-based, or oil-based. When the main 
    component of the drilling fluid is liquid (i.e., water or oil), it is 
    referred to as ``mud''. All of Region 10's previous permits address 
    only the discharge of muds, as gas fluids are not used in Alaskan 
    offshore or coastal drilling operations. As discussed below in 
    subsections 1 and 2, the discharge of oil-based muds (with oil as the 
    continuous phase and water as the dispersed phase) is prohibited 
    because they do not comply with the no free oil limitation.
        The Agency understands that non-petroleum hydrocarbon organic 
    liquids are being developed as an alternate to gas, water or 
    hydrocarbon (e.g., diesel or mineral) oil-based drilling muds. The 
    Agency invites comments on the applicability and feasibility of such 
    muds to exploratory drilling operations in the offshore Arctic.
    1. BCT Limitations on Drilling Muds and Cuttings
        Free oil and oil-based muds: No discharge of free oil is permitted 
    from the discharge of drilling mud and drill cuttings, based upon the 
    guidelines. The technology basis for this limitation is substitution of 
    water-based drilling fluids in place of oil-based muds, non-petroleum 
    oil-containing additives, and minimization of the use of mineral oil. 
    When this substitution is not possible, the guidelines contemplated 
    that the technology basis was also transportation and discharge 
    onshore. Free oil is being regulated under BAT as an ``indicator'' 
    pollutant for the control of toxic pollutants. Although it is not a 
    listed conventional pollutant, as is oil and grease, free oil is also 
    limited as a surrogate for oil and grease under BCT.
        The discharge of oil-based drilling fluids is prohibited since 
    discharge of oil-based fluids would violate the effluent limitations of 
    no discharge of free oil.
        Compliance with the free oil limitation will be monitored by use of 
    the Static Sheen Test (see 40 CFR part 435, appendix 1 to subpart A) 
    daily and before bulk discharges. Region 10 has required the use of the 
    Static Sheen Test in previous permits because visual observation of the 
    discharge for sheen upon the receiving water will not prevent 
    violations of the standard. This test is also appropriate for the harsh 
    weather and extended periods of darkness common in Alaska.
        Previous Region 10 permits have contained an oil content limitation 
    on drill cuttings. However, this approach has been rejected in favor of 
    the no free oil limitation contained in the guidelines. As discussed at 
    56 FR 10682 and 56 FR 10685 (March 13, 1991), the Agency rejected an 
    oil content limitation based on cuttings washing treatment technologies 
    because limitations on other parameters (diesel oil, free oil, and 
    toxicity) are sufficient to reduce toxics from drilling wastes. Because 
    the no free oil limitation is more stringent than the 10% by weight 
    limitation on the oil content of cuttings, this change does not invoke 
    antibacksliding provisions (see 40 CFR 122.44(l)(2)).
    2. BAT Limitations on Drilling Muds and Cuttings
        Toxicity: Region 10 is proposing to incorporate an effluent 
    toxicity limit of minimum 96-hour LC50 of 30,000 ppm suspended 
    particulate phase (SPP) on discharged drilling muds and cuttings. This 
    limit is designed to be a technology-based control on toxicity, as well 
    as toxic and nonconventional pollutants. The 30,000 ppm SPP limitation 
    is based on the Agency's evaluation that it constitutes an economically 
    and technically achievable level of performance and is both 
    technologically feasible and economically achievable and reflects BAT 
    level of control (U.S. EPA, 1993a) on a national basis. This limitation 
    is present in the general permit for the Western Gulf of Mexico (57 FR 
    54652, November 19, 1992). The toxicity limit is also present in a 
    recently issued individual NPDES permit for ARCO Alaska operations in 
    Cook Inlet.
        The purpose of this limitation is to encourage the use of water-
    based or other low toxicity drilling fluids and additives. This 
    toxicity criterion became BAT when the final effluent guidelines were 
    signed January 15, 1993 (58 FR 12469, March 4, 1993).
        The toxicity limit is an end-of-pipe discharge limit; and 
    represents a different approach to controlling this wastestream than 
    has been applied in previous general permits issued by Region 10. When 
    the Region issued its first general permits under the proposed 
    guidelines, it developed a case-by-case approach to limiting the 
    toxicity of discharged mud/additive systems as BPJ determination of BAT 
    until guidelines could be promulgated. Region 10 used the 30,000 ppm 
    SPP value as a criterion in evaluating available bioassay data for the 
    proposed discharges. The process of evaluating each mud/additive system 
    with respect to the discharge toxicity constituted BPJ determination of 
    BAT. Since the guidelines have now been promulgated with a toxicity 
    limitation for drilling muds and cuttings, Region 10 will be 
    discontinuing the mud preapproval process in favor of the end-of-pipe 
    limitation.
        Compliance with the drilling mud toxicity limit will be determined 
    by using the Drilling Fluids Toxicity Test (see appendix 2 to subpart A 
    of part 435, 58 FR 12507, March 4, 1993). At a minimum, monitoring is 
    to be done on a monthly basis for each well. When the end-of-well is 
    reached, a final bioassay analysis will be required (see Part II.A.1.k. 
    of permit). The last monthly bioassay may constitute the end-of-well 
    bioassay. If a mineral oil pill is required (Part II.A.1.g. of permit), 
    the mud shall be sampled for bioassay prior to application of the pill 
    and after removal of the pill. Complete bioassay reports are required 
    as part of the regulatory record for each well.
        Diesel oil: The discharge of drilling muds and cuttings which have 
    been contaminated by diesel oil is prohibited by the Agency, in 
    accordance with the offshore oil and gas effluent guidelines (58 FR 
    12469, March 4, 1993). The prohibition on the discharge of diesel oil 
    has been part of all of the general NPDES permits issued by Region 10 
    for the Offshore and Coastal Subcategories. Diesel oil, which is 
    sometimes added to a water-based mud system, is a complex mixture of 
    petroleum hydrocarbons, known to be highly toxic to marine organisms 
    and to contain numerous toxic and nonconventional pollutants. The 
    pollutant ``diesel oil'' is being used as an ``indicator'' of the 
    listed toxic pollutants present in diesel oil which are controlled 
    through compliance with the effluent limitation (i.e., no discharge). 
    The technology basis for this limitation is product substitution of 
    less toxic mineral oil for diesel oil.
        Mercury and Cadmium in Barite: In accordance with the offshore oil 
    and gas effluent guidelines (58 FR 12469, March 4, 1993), the proposed 
    permit contains limitations of 1 mg/kg mercury and 3 mg/kg cadmium in 
    barite. Barite is a major constituent of drilling muds. These 
    restrictions on drilling fluid influent are designed to limit the 
    discharge of mercury, cadmium, and other potentially toxic metals in 
    the drilling fluid effluent, since these metals can occur as 
    contaminants in some sources of barite. The justification for the 
    limitation under BAT is product substitution or transportation and 
    disposal of the waste onshore. That is, operators can substitute 
    ``clean'' barite, which meets the above limitations, for contaminated 
    barite, which does not meet the limitations. Numerous offshore 
    exploratory wells and the production wells drilled under permits 
    previously issued by Region 10 have been drilled subject to this 
    requirement. Chemical analyses have shown that the barite used has not 
    exceeded the limitations. Further discussion on the mercury and cadmium 
    limits in barite is presented in the offshore oil and gas guidelines 
    (58 FR 12479-80, March 4, 1993) and in the development document (U.S. 
    EPA, 1993a).
        EPA has eliminated a waiver provision for the barite limits which 
    was in the previous permits. The waiver stipulated that if a permittee 
    was unable to comply with the barite limitations due to the lack of 
    availability of barite which meets the limitation, then the permittee 
    could request a case-by-case waiver allowing the discharge of barite 
    which exceeded the limits (53 FR 37858, September 28, 1988). As a part 
    of the effluent guidelines development, EPA investigated the 
    availability of domestic and foreign supplies of barite to meet the 
    cadmium and mercury limits. The Agency also considered the potential 
    for the increased demand for clean barite stocks resulting from this 
    rule to cause a rise in the cost of barite. (See the Development 
    Document (U.S. EPA, 1993a) and the Economic Impact Analysis (U.S. EPA, 
    1993d) for detailed discussion on the availability and economic 
    availability.) EPA concluded that ``there are sufficient supplies of 
    barite capable of meeting the limits of this rule to meet the needs of 
    offshore drilling operations (58 FR 12480, March 4, 1993). Hence, the 
    waiver provision has not been included in this proposed general permit.
    3. Section 308 Documentation and Monitoring Requirements for Muds and 
    Cuttings
        The following reporting and discharge monitoring requirements are 
    based on Section 308 of the Act and 40 CFR 122.44(i). These 
    requirements serve to determine compliance with, or the possible future 
    need for, effluent limitations in the permit.
    
    --Chemical analysis
    --Chemical inventory
    --Monitoring volume discharged
    --Mud plan
    
        The requirement of a mud plan is new and is explained below. The 
    first three requirements have been present in previous NPDES general 
    permits for all coastal and offshore operations in Region 10. The 
    chemical analysis requirement has been expanded to require analysis of 
    total recoverable metal concentration, in addition to total metal 
    concentration. Analyses are to be conducted on split samples. This 
    requirement has been included to enable the Agency to better evaluate 
    the impact of metals in the mud discharges.
        Mud Plans: As previously noted, Region 10 plans to discontinue 
    authorization of mud/additive systems. Instead EPA is shifting the 
    responsibility of case-by-case evaluations from the Region to the 
    operator. Resources do not allow Region 10 to continue to perform case-
    by-case evaluations or to issue discharge authorizations for each 
    drilling mud/additive system. Hence, the proposed permit contains a 
    requirement that the permittee develop, have on-site, and available 
    upon request a plan for discharge of drilling muds and additives 
    (hereafter called ``mud plan''). This requirement is analogous to 
    analyses that the region has been performing in development of drilling 
    mud authorizations.
        The basis for the mud plan requirement is Section 308(a)(A) of the 
    Act which provides that EPA may require the permittee to establish and 
    maintain records and/or reports that will assist the Region to 
    determine compliance with other requirements and effluent limitations 
    of the permit. The mud plan is one component of the Best Management 
    Practices Plan (see Part II.F.4.d.(4) of the permit). The mud plan 
    requirement is also based upon the Pollution Prevention Act and its 
    policy of prevention, reduction, recycling, and treatment of wastes 
    (PPA Section 102(b)) through measures which include process 
    modification, materials substitution, and improvement of management 
    (PPA Section 107(b)(3)).
        The goal of requiring development of a mud plan is to ensure that 
    personnel on-site are knowledgeable about the information needed and 
    the methods required to formulate the mud/additive systems in order to 
    meet the effluent toxicity limit. Simply put, the mud plan is intended 
    to be a written guide to planning for, and using, a mud/additive system 
    in compliance with the permit.
        Region 10's case-by-case approach to evaluating discharge of mud/
    additive systems coupled with use of worst case cumulative toxicity 
    estimates as bases for authorization, has been conducive to the 
    discharge of muds with lower toxicity than elsewhere in the OCS. To 
    date Alaskan operators have demonstrated that thorough planning and 
    evaluation of mud/additive systems with respect to possible cumulative 
    toxicity does consistently result in discharge of muds that are less 
    toxic than the 30,000 ppm SPP limit.
        The mud plan is intended to demonstrate that the discharged mud/
    additive system for the well in question will meet the effluent limit 
    of 30,000 ppm SPP based on the following decision criteria:
    
    --Estimates of worst case cumulative discharge toxicity (either 
    calculated or actual toxicity test results);
    --Estimates of toxicity of discharged mud when a mineral oil pill has 
    been used; and
    --Use of less toxic alternatives where possible.
    
        The mud plan shall also include a clearly stated procedure for 
    dealing with situations in which additives not originally planned for 
    are needed at the ``last minute.'' This procedure should enable 
    drilling and mud personnel to determine whether an additive or mud 
    component may be added to the circulating mud system without 
    significant effect upon the discharge toxicity. Criteria for reaching 
    this type of ``last minute'' additive decision shall be clearly 
    specified in the mud plan.
        In addition to developing the mud plan, the operator is also 
    required to certify that the mud plan is complete, on-site, and 
    available upon request (see Part II.A.1.f. of the permit).
        Certification is due no later than submission of their written 
    notice of intent to commence discharge (see Part I.C. of the permit).
    4. Section 403(c) Requirements for Muds and Cuttings
        Depth-related Restrictions: Additional restrictions on these 
    discharges are necessary to ensure no unreasonable degradation of the 
    environment. The area of coverage includes water depths from 5 to about 
    3,000 meters deep. Discharge rate limitations on total muds and 
    cuttings have been established in the ocean discharge criteria 
    evaluation process in order to allow adequate dispersion of the 
    discharges. These maximum rates are:
    
    --No discharge in waters less than 5 meters deep,
    --500 bbl/hr for discharges into waters greater than 5 meters but not 
    more than 20 meters in depth,
    --750 bbl/hr for discharges into waters greater than 20 meters but not 
    more than 40 meters in depth, and
    --1,000 bbl/hr for discharges into waters greater than 40 meters in 
    depth.
    
        These limits are necessary because for any given discharge rate, 
    the dilution of drilling muds and cuttings is not as great in shallow 
    waters as in deeper waters. However, at any particular water depth, 
    greater dilution close to the discharge point will be achieved with a 
    lower discharge rate. These maximum rates will ensure that the water 
    quality standards will not be exceeded at the edge of the 100 meters 
    mixing zone (Tetra Tech, 1994a).
        Previous permits have allowed the discharge of drilling muds and 
    cuttings between 2 and 5 meters depth. However, computer modeling of 
    the dispersion of the drilling muds conducted for this permit in 2-5 
    meters depth did not perform adequately (Tetra Tech, 1994a). The 
    maximum depth of mud accumulation for these cases was 10-20 times 
    greater than the water depth. Mud accumulations of this magnitude would 
    effectively bury the drilling mud outfall, making any calculation of 
    dilution values meaningless. Accordingly, EPA is proposing zero 
    discharge of muds and cuttings in waters less than 5 meters deep.
        Areal Restrictions: Discharge of muds and cuttings are prohibited 
    in the following four areas:
        (a) Between the shore (mainland and barrier islands) and the 5 
    meters isobath,
        (b) within 1000 meters of river mouths or deltas during unstable or 
    broken ice or open water conditions,
        (c) Within 1000 meters of the Stefansson Sound Boulder Patch, and
        (d) Within 3 miles of Kasegaluk Lagoon or the passes of Kasegaluk 
    Lagoon.
        For the specific requirements, see Parts II.A.3. of the permit. In 
    accordance with 40 CFR 125.123 (c), the Director has prohibited these 
    discharges because the Region has determined they may cause 
    unreasonable degradation of the marine environment. Prohibition (a) has 
    changed from previous permits as described in the previous section of 
    this fact sheet. Prohibitions (b) and (c) are contained in the previous 
    Beaufort Sea NPDES general permits (49 FR 23734, June 7, 1984 and 53 FR 
    37846, September 28, 1988). This is the first time that a provision 
    concerning Kasegaluk Lagoon has been included in a general permit for 
    offshore oil and gas exploration since the area has never been covered 
    by an NPDES permit for exploratory oil and gas operations.
        With regard to (a) and (b) above, EPA has extensively studied the 
    nearshore zone of the Alaskan Beaufort Sea in several Ocean Discharge 
    Criteria Evaluations (Tetra Tech, 1994a; Jones & Stokes, 1983, 1984). 
    These evaluations have clearly shown that these nearshore areas provide 
    important feeding and migratory habitat for a large number of species 
    including fish, waterfowl, and mammals. Further, these areas provide 
    essential feeding and preferred habitat for species of major importance 
    for subsistence and commercial fisheries.
        Concerning (c) above, the proposed permit does not authorize 
    discharges within 1000 meters of the Stefansson Sound Boulder Patch as 
    defined by Dunton et al. (1982). The ``Patch'' is a rare and unique 
    biological community that is susceptible to adverse effects caused by 
    discharged drilling muds and cuttings.
        As noted in (d) above, the proposed permit restricts activity near 
    Kasegaluk Lagoon and its barrier island system. Specifically discharge 
    is prohibited within Kasegaluk Lagoon and in the waters within 3 miles 
    of the following passes intensively used by the beluga whales: 
    Kukpowruk Pass, Akunik Pass, Utukok Pass, Icy Cape Pass, and 
    Alokiakatat Pass. This restriction is in accordance with the North 
    Slope Borough's Coastal Management Program (NSB, 1988). The NSB 
    recognizes Kasegaluk Lagoon as a Candidate Area Meriting Special 
    Attention (AMSA) and imposes the above restrictions.
        Kasegaluk Lagoon extends for approximately 140 miles along the 
    Chukchi Sea coast. About 90 miles of the lagoon is south of Icy Cape 
    and the rest is north of Icy Cape. Kasegaluk Lagoon is located in state 
    waters of the Chukchi Sea and provides important habitat for spotted 
    seals and beluga whales. Beluga whales are known to feed, calve and may 
    molt in this lagoon (North Slope Borough, 1988; Frost and Lowry, 1993; 
    Tetra Tech, 1994a). Spotted seals also calve in Kasegaluk Lagoon (NSB, 
    1988). The lagoon also provides important feeding, migrating, and 
    rearing areas for marine and anadromous fish, as well as migratory 
    birds.
        Kasegaluk Lagoon, the barrier islands, and the nearshore waters 
    seaward of the barrier islands are an important subsistence area for 
    the villagers of Point Lay (NSB, 1988). Subsistence activities that 
    occur seasonally in the Kasegaluk Lagoon Candidate AMSA area include 
    egg gathering, waterfowl hunting, sealing, fishing, walrus hunting, and 
    whaling for belugas. This proposed permit and the Borough's management 
    program recognizes the importance of the area for marine mammals, 
    seabirds, and subsistence activities.
        Environmental Monitoring: Environmental monitoring is required in 
    two areas which are of particular concern to Region 10: discharge of 
    drilling muds and cuttings below-ice to water depths shallower than 20 
    meters and within 1000 meters of an area of biological concern (i.e., a 
    unique biological community or habitat). The Director has determined 
    that controlled discharges to these areas, in accordance with 40 CFR 
    125.123(a) and the limitations and conditions in the draft permit, will 
    not cause unreasonable degradation of the marine environment. 
    Environmental monitoring is required to verify that discharges to these 
    areas will not produce conditions in the future that would lead to 
    unreasonable degradation.
    
    C. Deck Drainage (Discharge 002)
    
        Deck drainage includes all waste resulting from deck washings, 
    spillage, rainwater, and run-off from gutters and drains including drip 
    pans and work areas. Oil and grease are the primary pollutants 
    identified in deck drainage. In addition to oil, various other 
    chemicals used in drilling operations may be present. Specific 
    conventional, toxic, and non-conventional pollutants found in deck 
    drainage are controlled by the prohibition on the discharge of free 
    oil. Deck drainage discharges are not continuous and can vary 
    significantly in volume.
        Free oil: EPA is controlling pollutants found in deck drainage by 
    the prohibition on the discharge of free oil. This limit is the current 
    BPT level of control and is also the appropriate level of control under 
    BCT and BAT. No free oil is permitted from the discharge of deck 
    drainage in accordance with the offshore oil and gas effluent 
    guidelines (58 FR 12506, March 4, 1993). Deck drainage was subject to 
    this limitation in the previous permits issued by Region 10 and past 
    practices have not resulted in violations of this limit.
        Compliance with the free oil limitation for deck drainage will be 
    by visual observation for a sheen on the receiving water as mandated by 
    the offshore oil and gas guidelines (58 FR 12506, March 4, 1993), 
    except under the conditions described below. The Static Sheen Test will 
    also be required for the monitoring of deck drainage during unstable or 
    broken ice and stable ice conditions. Use of the Static Sheen Test will 
    prevent a violation of the free oil limitation in those discharges most 
    likely to be contaminated with oil. This would not be possible with an 
    after-the-fact visual observation of a sheen on the receiving water. 
    This requirement is similar to requirements in the Region's previous 
    permits and will not result in any additional costs to the industry.
        Flow Rate: Flow rate is required to be estimated monthly. The basis 
    for this requirement is Section 308 of the Act.
    
    D. Sanitary Wastes (Discharge 003)
    
        The sanitary wastes from offshore oil and gas facilities are made 
    up of human body wastes from the toilets and urinals. The volume and 
    concentrations of these wastes vary widely with time, occupancy, 
    platform characteristics, and operational status (U.S. EPA, 1993a).
        Floating Solids: The prohibition on floating solids is mandated by 
    the offshore oil and gas guidelines for facilities intermittently 
    manned or continuously manned by fewer than 10 persons (58 FR 12470, 
    March 4, 1993). This requirement does not specifically apply to 
    facilities continuously manned by 10 or more persons (however, the 
    method of compliance with the residual chlorine limit effectively 
    limits floating solids for these facilities). Since previous permits 
    for exploratory operations in the Beaufort and Chukchi Seas have 
    prohibited the discharge of floating solids for all facilities 
    regardless of staffing, Region 10 is continuing the requirement in this 
    permit based upon antibacksliding provisions [40 CFR 122.44(l)(2)]. 
    This BCT prohibition on the discharge of floating solids is equivalent 
    to the current level of control for sanitary wastes in previous 
    permits.
        Residual Chlorine: Chlorine is regulated by the Agency in the 
    offshore oil and gas effluent guidelines as a conventional pollutant. 
    Chlorine is added to the wastestream to control fecal coliforms in the 
    discharge. Facilities continuously manned by 10 or more persons are 
    required to have a residual chlorine content of 1 milligram per liter 
    (and maintained as close to the limit as possible). This limitation has 
    been in previous Region 10 permits and is in the proposed permit as 
    well.
        For facilities with fewer than 10 persons or intermittently staffed 
    by any number of persons (i.e., M91M facilities), the proposed permit 
    prohibits the discharge of floating solids only, with no chlorine 
    limitation.
    
    E. Domestic Wastes (Discharge 004)
    
        Domestic wastes refers to materials discharged from sinks, showers, 
    laundries, safety showers, eyewash stations, and galleys. Because 
    domestic wastes do not contain fecal coliform, chlorination is not 
    required.
        Floating Solids: Under BCT, EPA is prohibiting the discharge of 
    floating solids. The limitation is included in the offshore oil and gas 
    guidelines (58 FR 12487, March 4, 1993) and is equivalent to the 
    current level of control for sanitary wastes in the previous permits.
        Visible Foam: Discharges of visible foam are prohibited under BAT 
    in the offshore oil and gas guidelines (58 FR 12487, March 4, 1993). 
    This limitation is equivalent to the current level of control for 
    domestic wastes in existing permits and past practices have not 
    resulted in violations of this limitation.
        All other domestic waste: This permit includes requirements 
    limiting the discharge of all other domestic waste (garbage) as 
    included in U.S. Coast Guard regulations at 33 CFR part 151. These 
    limitations are a new feature in EPA offshore oil and gas permits for 
    Beaufort and Chukchi Seas operators and reflect the offshore oil and 
    gas effluent guidelines (58 FR 12487, March 4, 1993). The requirements 
    on garbage are currently included in the most recent reissuance of the 
    Western Gulf of Mexico general permit (57 FR 54654, November 19, 1992).
        As proposed, the reissued permit will prohibit the discharge of 
    garbage including food wastes within 12 nautical miles from nearest 
    land. Comminuted food waste which 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 nearest land. 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 can only be discharged beyond 12 nautical miles 
    from nearest land.
        Since this BCT limitation already exists in Coast Guard regulations 
    and other NPDES permits, it will not result in any additional 
    compliance cost, or additional non-water quality environmental impacts. 
    There are no incremental costs associated with the limitation.
    
    F. Miscellaneous Discharges:
    
        Desalination unit wastes (005), blowout preventer fluid (006), 
    boiler blowdown (007), fire control system test water (008), non-
    contact cooling water (009), uncontaminated ballast water (010), 
    uncontaminated bilge water (011), excess cement slurry (012), and mud, 
    cuttings, and cement at the seafloor (013).
        No free oil: Region 10 has determined that no free oil shall be 
    discharged. The no free oil limitation is Region 10's best professional 
    judgement determination of BPT controls for these discharges. 
    Compliance with the free oil limitation for miscellaneous discharges 
    will be by visual observation for a sheen on the receiving water, 
    except for bilge water under the conditions described below. All of 
    these discharges have been subject to this limitation in the previous 
    permits issued by Region 10 and past practices have not resulted in 
    violations of this limit.
    
    G. Discharge 014 (Test Fluids)
    
        Limited volumes of formation waters which are encountered during 
    testing of the well are authorized for discharge as test fluids. 
    Formation waters are encountered during well testing and are similar in 
    composition to produced waters.
        Free oil: As previously discussed, no discharge of free oil is 
    permitted from discharges authorized by this permit. In previous 
    general permits, Region 10 has determined that the BCT effluent 
    limitations guideline of no discharge of free oil from the discharge of 
    deck drainage, drilling muds, drill cuttings, and well treatment fluids 
    should apply to other discharges, including test fluids. The no free 
    oil limitation is Region 10's best professional judgement determination 
    of BCT controls for the test fluids discharge. Operators have been 
    subject to a no free oil limitation in previous permits issued by 
    Region 10, and past practices have not resulted in violations of this 
    limitation. In accordance with Section 308, the Static Sheen Test will 
    be required for the monitoring of test fluids.
        Oil and grease: Although oil and grease is a conventional pollutant 
    subject to BCT, it also serves as BAT (i.e., as an indicator of toxic 
    pollutants) for produced water. Specifically, the toxic pollutants 
    which are controlled by limiting oil and grease include phenol, 
    naphthalene, ethylbenzene, and toluene (U.S. EPA 1993a). EPA has 
    determined that it is not technically feasible to control these toxic 
    pollutants individually so that the limitation on oil and grease 
    controls discharge these pollutants in produced water at the BAT level 
    (U.S. EPA 1993a).
        The promulgated BAT for oil and grease in produced water as 29 mg/l 
    monthly average and 42 mg/l daily maximum based upon the improved 
    operating performance of gas flotation technology (58 FR 12506, March 
    4, 1993). Based upon the chemical similarity of test fluids and 
    produced water, Region 10 Agency has determined that it is reasonable 
    to apply the produced water provisions to test fluids. Accordingly, the 
    proposed permit limits on oil and grease in test fluids are 29 mg/l 
    monthly average and 42 mg/l daily maximum.
        pH: The pH of discharged test fluids (which may have a 
    substantially different pH from that of the ambient receiving water) 
    has been limited to a range of 6.5-8.5 at the point of discharge. In 
    Region 10's best professional judgement, this limitation appropriately 
    equals a BPT level of control. No more stringent standard has been 
    identified by the Region at this time. Therefore, Region 10 is setting 
    a BCT effluent limitation for the pH of test fluids equal to that of 
    BPT. This limitation will ensure that pH changes greater than 0.2 pH 
    unit will not occur beyond the edge of the 100-meter mixing zone [40 
    CFR Sec. 125.121(c)]. This requirement has been and is routinely 
    complied with by operations under previous BPT permits and thus, 
    reflects no cost incremental to BPT.
    
    H. Other Discharge Limitations
    
        No Floating Solids, or Visible Foam, or Oily Wastes: Region 10 has 
    determined that the BCT effluent limitations guideline of no discharge 
    of floating solids from the discharge of sanitary wastes should apply 
    to all other discharges as well. Operators have been subject to a 
    visible foam limit and an oily waste limit in previous permits issued 
    by Region 10 and past practices have not resulted in violations.
        Surfactants, Dispersants, and Detergents: The draft permit contains 
    a provision that the discharge of surfactants, dispersants, and 
    detergents shall be minimized except as necessary to comply with the 
    safety requirements of the Occupational Health and Safety 
    Administration and the Minerals Management Service. These products 
    contain primarily nonconventional pollutants. This provision previously 
    appeared in the permits for the Beaufort Sea, Chukchi Sea, Norton 
    Sound, Bering Sea, and Cook Inlet.
        Rubbish, Trash, or Other Refuse: The discharge of any solid 
    material not authorized by this permit (as described above) is 
    prohibited. This permit includes limitations set forth by the U.S. 
    Coast Guard in 33 CFR part 151 for domestic waste disposal from all 
    fixed or floating offshore platforms and associated vessels engaged in 
    exploration of seabed mineral resources. These limitations, as 
    specified by Congress 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 larger than 25 
    mm, approximately 1 inch) may be discharged from operations located 12 
    nautical miles or more from land. Graywater, drainage from dishwater, 
    shower, laundry, bath and washbasins are not considered ``garbage'' 
    within the meaning of the Coast Guard regulations. Incineration ash and 
    non-plastic clinkers that can pass through a 25 mm mesh screen may be 
    discharged greater than 3 miles from the nearest land; otherwise, ash 
    and non-plastic clinkers can only be discharged beyond 12 nautical 
    miles from nearest land.
        Other Toxic and Non-conventional Compounds: Under the proposed 
    permit, prohibitions on discharges of the following pollutants are 
    retained: halogenated phenol compounds, trisodium nitrilotriacetic 
    acid, sodium chromate, and sodium dichromate. The class of halogenated 
    phenol compounds includes toxic pollutants, and sodium chromate and 
    sodium dichromate contain chromium, also a toxic pollutant. Trisodium 
    nitrilotriacetic acid is a nonconventional pollutant. The discharge of 
    these compounds was previously prohibited in the general permits for 
    the Beaufort Sea, Chukchi Sea, Norton Sound, Bering Sea, and Cook 
    Inlet.
    
    I. Best Management Practice Plan Requirement
    
        It is national policy that, whenever feasible, pollution should be 
    prevented or reduced at the source, that pollution which cannot be 
    prevented should be recycled in an environmentally safe manner, and 
    that disposal or release into the environment should be employed only 
    as a last resort and should be conducted in an environmentally safe 
    manner (Pollution Prevention Act of 1990, 42 U.S.C. 13101). Section 
    402(a)(1) authorizes EPA to include miscellaneous requirements in 
    permits on a case-by-case basis which are deemed necessary to carry out 
    the provisions of the Act. Best Management Practices (BMPs), in 
    addition to numerical effluent limitations, are required to control or 
    abate the discharge of pollutants in accordance with 40 CFR 122.44(k).
        Pursuant to Section 402(a)(1) of the Clean Water Act and Region 10 
    policy (EPA Region 10, 1992), development and implementation of a Best 
    Management Practices Plan is included as a condition of this NPDES 
    general permit.
        The proposed general permit requires the development and 
    implementation of a BMP Plan which prevents or minimizes the generation 
    of pollutants, their release, and/or potential release from the 
    facility to the waters of the United States through normal operations 
    and ancillary activities. Relevant operations and activities include 
    material storage areas, site runoff, storm water, in-plant transfer, 
    process and material handling areas, loading or unloading operations, 
    spillage or leaks, sludge and waste disposal, or drainage from raw 
    material storage.
        In addition to developing and implementing the BMP Plan, the 
    operator is also required to certify that the BMP Plan is complete, on-
    site, and available upon request (see Part II.F.1. of the permit). 
    Certification is required no later than submission of their written 
    notice of intent to commence discharge (see Part I.C. of the permit). 
    These certification requirements are similar to the requirements for a 
    mud plan.
        The BMP Plan must be amended whenever there is a change in the 
    facility or in the operation of the facility which materially increases 
    the potential for an increased discharge of pollutants. The BMP Plan 
    will become an enforceable condition of the permit; a violation of the 
    BMP Plan is a violation of the permit.
    
    VI. Other Legal Requirements
    
    A. Oil Spill Requirements
    
        Section 311 of the Act prohibits the discharge of oil and hazardous 
    materials in harmful quantities. Routine discharges specifically 
    controlled by the permit are excluded from the provisions of Section 
    311. However, this permit does not preclude the institution of legal 
    action or relieve permittees from any responsibilities, liabilities, or 
    penalties for other, unauthorized discharges of oil and hazardous 
    materials which are covered by Section 311 of the Act.
    
    B. 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 and habitat of such species that 
    have been designated as critical. Its implementing regulations (50 CFR 
    Part 402) require EPA to ensure, in consultation with the Secretary of 
    the Interior or 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)].
        In compliance with Section 7 of the ESA, an endangered species list 
    was requested by EPA and received from both the U.S. Fish and Wildlife 
    Service (USFWS) and the National Marine Fisheries Service (NMFS) for 
    the affected area. The following threatened, endangered and/or 
    candidate species are reported to potentially occur in the vicinity of 
    the discharges associated with oil and gas operations proposed by the 
    permit: arctic peregrine falcon, spectacled eider, stellars eider, and 
    bowhead whale.
        A draft biological evaluation was prepared by Tetra Tech under 
    contract to EPA to determine whether the discharges authorized by this 
    proposed general permit are likely to adversely affect any endangered 
    or threatened species or its critical habitat (Tetra Tech, 1994b). 
    Based upon the available information, it is not expected that the 
    exploratory oil and gas permitted discharges and related activities 
    will not adversely affect any of the listed species or their habitat.
        EPA has informally consulted with the USFWS and the NMFS pursuant 
    to Section 7 consultation of the Endangered Species Act. The EPA shared 
    the draft biological evaluation with USFWS at their request. Comments 
    raised by the USFWS have been addressed. EPA has forwarded the revised 
    document to both Services for their review. EPA will consider the 
    Services' comments in developing the final permit.
    
    C. Coastal Zone Management Act
    
        EPA has determined that the activities authorized by this general 
    permit are consistent with local and state Coastal Management Plans. 
    The proposed permit and consistency determination will be submitted to 
    the State of Alaska for state interagency review at the time of public 
    notice. The requirements for State Coastal Zone Management Review and 
    approval must be satisfied before the general permit may be issued.
    
    D. Marine Protection, Research and Sanctuaries Act
    
        No marine sanctuaries as designated by this Act exist in the 
    vicinity of the permit areas.
    
    E. State Water Quality Standards and State Certification
    
        Since state waters are involved in the proposed general permit 
    area, the provisions of Section 401 of the Act apply. In accordance 
    with 40 CFR 124.10(c)(1), public notice of the draft permit has been 
    provided to the State of Alaska agencies having jurisdiction over fish, 
    shellfish, and wildlife resources (see section II.C. above).
    
    F. Executive Order 12866
    
        The Office of Management and Budget has exempted this action from 
    the review requirements of Executive Order 12866 pursuant to Section 
    8(b) of that order.
    
    G. Paperwork Reduction Act
    
        EPA has reviewed the requirements imposed on regulated facilities 
    in this draft general permit under the Paperwork Reduction Act of 1980, 
    44 USC 3501 et seq. Most of the information collection requirements 
    have already been approved by the Office of Management and Budget (OMB) 
    in submissions made for the NPDES permit program under the provisions 
    of the Clean Water Act. In addition, the environmental monitoring 
    requirements pursuant to Section 403(c) of the Clean Water Act in Part 
    II.B.4 of this permit are similar to the monitoring requirements that 
    were approved by OMB for the previously issued Beaufort Sea II and 
    Chukchi Sea general permits (September 28, 1988, 53 FR 37846) and the 
    modification of the Beaufort Sea II NPDES general permit (September 27, 
    1989, 54 FR 39574). The final general permit will explain how the 
    information collection requirements respond to any OMB or public 
    comments.
    
    H. The Regulatory Flexibility Act
    
        After review of the facts presented in the notice of intent printed 
    above, I hereby certify, pursuant to the provisions of 5 USC 605(b), 
    that this general permit will not have a significant impact on a 
    substantial number of small entities. This certification is based on 
    the fact that the regulated parties 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). These facilities are classified as Major Group 13--Oil and 
    Gas Extraction SIC 1311 Crude Petroleum and Natural Gas.
    
        Dated: August 31, 1994.
    Chuck Clarke,
    Regional Administrator, Region 10.
    
    VII. References
    
    Bigham, G., L. Hornsby, and G. Wiens. 1984. Technical support 
    document for regulating dilution and deposition of drilling muds on 
    the Outer Continental Shelf. Prepared for U.S. Environmental 
    Protection Agency, Region 10, and Jones and Stokes Associates, 
    Bellevue, WA, by Tetra Tech, Inc. November 1984. 68 pp. plus 
    appendices.
    Dunton, K., E. Reimnitz, and S. Schonberg. 1982. An arctic kelp 
    community in the Alaskan Beaufort Sea. Arctic 35(4): 465-484.
    Frost, K.J. and L.F. Lowry. 1993. Distribution and Abundance of 
    Beluga Whales and Spotted Seals in the Chukchi Sea, Including Recent 
    Findings at Kasegaluk Lagoon. In, Alaska OCS Region Fifth 
    Information Transfer Meeting Conference Proceedings. U.S. Dept. of 
    the Interior, Minerals Management Service. OCS Study MMS 93-0043.
    Jones & Stokes Associates. 1983. Final ocean discharge criteria 
    evaluation, Diapir Field, OCS lease sale 71. Prepared for U.S. 
    Environmental Protection Agency, Region 10. March 21, 1983. 160 pp. 
    plus appendices.
    Jones & Stokes Associates. 1984. Final ocean discharge criteria 
    evaluation, Diapir Field, OCS lease sale 87 and state lease sales 
    39, 43, and 43a. Prepared for U.S. Environmental Protection Agency, 
    Region 10, July 24, 1984. 137 pp. plus appendices.
    North Slope Borough. 1988. North Slope Borough Coastal Management 
    Program.
    Tetra Tech, Inc. 1994a. Ocean discharge criteria evaluation for 
    Arctic state and federal waters. Draft. Prepared for the U.S. 
    Environmental Protection Agency, July 1994.
    Tetra Tech, Inc. 1994b. Effects of oil and gas exploration 
    activities in the area of coverage under the Arctic NPDES General 
    Permit on threatened and endangered species. Draft. Prepared for the 
    U.S. Environmental Protection Agency, March 1994. Revised by EPA on 
    8/8/94.
    U.S. Department of the Interior. 1992. Outer Continental Shelf 
    Natural Gas and Oil Resource Management: Comprehensive Program 
    (1992-1997). Proposed Final. Minerals Management Service.
    U.S. EPA. 1984. Final General NPDES Permits for Oil and Gas 
    Operations on the Outer Continental Shelf (OCS) and in State Waters 
    of Alaska; Bering Sea and Beaufort Sea; Notice. (49 FR 23734, June 
    7, 1984).
    U.S. EPA. 1985. Assessment of environmental fate and effects of 
    discharges from offshore oil and gas operations. EPA 440/4-85/002.
    U.S. EPA. 1988. Final General NPDES Permits for Oil and Gas 
    Operations on the Outer Continental Shelf (OCS) of Alaska: Beaufort 
    Sea II and Chukchi Sea; Notice. (53 FR 37846, September 28, 1988).
    U.S. EPA. 1989. Final Modifications of the NPDES General Permit for 
    Oil and Gas Operations on the Outer Continental Shelf (OCS) and 
    State Waters of Alaska; Beaufort Sea II. (54 FR 39574, September 27, 
    1989).
    U.S. EPA. 1993a. Development Document for Effluent Limitations 
    Guidelines and New Source Performance Standards for the Offshore 
    Subcategory of the Oil and Gas Extraction Point Source Category: 
    Final. Office of Water. EPA 821-R-93-003.
    U.S. EPA. 1993b. 40 CFR Part 135. Oil and gas extraction point 
    source category offshore subcategory effluent limitations guidelines 
    and new source performance standards. (58 FR 12454, March 4, 1993).
    U.S. EPA. 1993c. Response to Public Comments on Proposed Effluent 
    Limitations Guidelines and New Source Performance Standards for the 
    Offshore Subcategory of the Oil and Gas Extraction Point Source 
    Category (January 15, 1993). Offshore Rulemaking Record Document No. 
    VIII.B.(3)1, Volumes 151, 152, and 154 (Excerpts only).
    U.S. EPA. 1993d. Economic Impact Analysis of Final Effluent 
    Limitations Guidelines and Standards of Performance for the Offshore 
    Oil and Gas Industry. Office of Water. EPA-821-R-93-003.
    U.S. EPA, Region 10. 1992. Region 10 Guidance: Best Management 
    Practices Plans in NPDES Permits. June 1992.
    
    [FR Doc. 94-23419 Filed 9-19-94; 8:45 am]
    BILLING CODE 6560-50-P
    
    
    

Document Information

Published:
09/20/1994
Department:
Environmental Protection Agency
Entry Type:
Uncategorized Document
Action:
Notice of Draft NPDES General Permit.
Document Number:
94-23419
Pages:
0-0 (1 pages)
Docket Numbers:
Federal Register: September 20, 1994, FRL-5073-7