Category Archives: ocean pollution

Oil and Gas Financial Journal: EPA issues NPDES permits for CA offshore oil and gas operations

http://www.ogfj.com/articles/2014/01/epa-issues-npdes-permit-that-includes-limited-chemical-disclosure-requirements-for-oil-and-gas-operations-offshore-california.html

January 22, 2014
Michael Weller and Jason Hutt
Bracewell & Giuliani LLP

Region 9 of the US Environmental Protection Agency recently made available the finalized National Pollutant Discharge Elimination System (NPDES) general permit applicable to discharges from oil and gas exploration facilities offshore Southern California. NPDES General Permit No. CAG280000 (2014 NPDES General Permit), issued under provisions of the Clean Water Act, authorizes discharges from exploration, development and production facilities located offshore of Southern California in accordance with specified effluent limitations, monitoring and reporting requirements and various other conditions.

The final 2014 NPDES General Permit includes certain new requirements that EPA indicates were added to address offshore hydraulic fracturing operations, including increases in the monitoring requirements associated with produced water discharges and new inventory and reporting requirements.

While operating offshore, waste streams generated by oil and gas operations are generally either treated and discharged via a NPDES permit or shipped back to shore for disposal. The 2014 NPDES General Permit authorizes discharges from 23 platforms operating offshore Southern California, including discharges of Drilling Fluids and Cuttings, Produced Water, Well Treatment, Completion and Workover Fluids, Bilge Water, and Water Flooding Discharges.

This reissuance of the 2004 NPDES general permit was initially proposed in 2012. During the public comment period, the U.S. Department of Interior, Bureau of Safety and Environmental Enforcement (BSEE), several California legislators and the California Coastal Commission (CCC) expressed interest in hydraulic fracturing operations offshore of California. To address the concerns raised over offshore hydraulic fracturing, EPA changed portions of the final general permit, adding new testing and reporting requirements.

Background
Section 301(a) of the Clean Water Act prohibits point source discharges of pollutants into navigable waters unless in compliance with a permit. To comply with the prohibition on point source discharges, businesses typically obtain CWA Section 402 permits from the state; however, because these operations are offshore, EPA issues the NPDES permits directly. Under the NPDES program, EPA may issue individual permits or general permits. The latter allows the Agency to authorize discharges from a large number of facilities engaged in the same activity. When EPA issues a general permit, a prospective permittee simply submits an application for coverage and then abides by the terms and conditions of the general permit.

Monitoring requirements
NDPES general permits typically contain monitoring requirements. In its response to public comments on the 2014 NDPES General Permit, EPA indicated that it has increased the mandatory Whole Effluent Toxicity or “WET” testing for produced water discharges from an annual to a quarterly requirement. EPA indicated that, because the chemicals used in hydraulic fracturing operations are “commonly commingled and discharged with produced water,” the mandatory tests applicable to produced water will address any concerns over discharges associated with hydraulic fracturing operations.

Inventory/reporting requirements
NPDES permits may also contain inventory and reporting requirements. In the 2004 version of this particular NPDES permit, EPA required that permittees maintain inventories and report drilling fluid constituents added downhole for all discharges of “Drilling Fluids and Cuttings.” In the 2004 version, the mandatory inventory and reporting requirement only applied to mud systems and there was no such requirement for “Well Treatment, Completion and Workover Fluids.”

The 2014 NDPES General Permit includes that same requirement for discharges of “Drilling Fluids and Cuttings.” However, the permittee must also now submit detailed information for discharges of “Well Treatment, Completion and Workover Fluids,” which includes chemicals used in hydraulic fracturing. Specifically, EPA added Part II.C.3 to the 2014 NPDES General Permit, which requires the permittee to:
1. maintain an inventory of the quantities and application rates of chemicals used to formulate well treatment, completion and workover fluids; and
2. if those fluids are discharged, report to EPA Region 9 the chemical formulation of the discharges and the discharge volume with the operators quarterly discharge monitoring reports.

The disclosures under the 2014 NDPES General Permit are not to the “public” and EPA has indicated that the inventory would be available to EPA where the Agency “deems it necessary to meet the purposes of the CWA. For example, in case of well failure or other accident resulting in an unexpected discharge, EPA may access such inventory in order to immediately assess emergency response needs.” It is not yet clear how the chemical formulations must be reported or to what extent trade secret protections are available.
The public comment period for the 2014 NPDES General Permit closed nearly one year ago on February 4, 2013. The effective date of the permit is March 1, 2014.

Michael Weller is member of the firm’s environmental and natural resources practice in Washington DC.
Jason Hutt is a partner in the firm’s Washington, DC office. He counsels clients on current and upcoming regulatory developments at the nexus of environmental and energy policy, with focused attention on natural gas development, including hydraulic fracturing.
Special thanks to Richard Charter

South Florida Sun Sentinel: Cuba presses ahead on offshore oil drilling

http://www.sun-sentinel.com/news/fl-bob-graham-cuba-drilling-20140120,0,5002666.story

By William E. Gibson, Washington Bureau
4:40 a.m. EST, January 21, 2014

WASHINGTON – Cuban officials are preparing to resume offshore oil drilling in deep waters as close as 50 miles from the Florida coast, posing a threat to the state’s beaches and marine life, former Gov. Bob Graham said Monday after a trip to Havana.

The Cubans, he said, are negotiating with energy companies from Angola and Brazil to drill exploratory wells along the maritime border where U.S. and Cuban waters meet, starting next year. Graham warned that if drilling in that area produces a major oil spill, the powerful ocean current known as the Gulf Stream would drag any slick north to the Florida Keys and along the coast to South Florida’s coral reefs and beachfront.

“If there were a spill of any significant size, without question it would impact Florida,” Graham said.

The former Florida governor and U.S. senator, who co-chaired a presidential commission on the 2010 Deepwater Horizon spill, said Cuba is aiming for high safety standards but may lack the capacity to contain a major spill.

“This is an inherently risky operation when you are drilling two or more miles under the ocean,” he said.

Graham went to Cuba along with staff members of the Council on Foreign Relations, a nonpartisan think tank, and met with Cuban energy and environmental leaders.

The Cubans, desperate for an economic lifeline, are convinced that crude oil worth billions of dollars is deposited near their shores, despite failed efforts to find it.

After spending nearly $700 million over a decade of exploration, energy companies from around the world all but abandoned the search last year. The initial results brought relief to environmentalists alarmed about the prospect of a spill and the complications of dealing with it amid the U.S. embargo of Cuba.

A floating rig built in China and operated by Repsol, a Spanish firm, found oil in waters north of Havana, but not enough to be worth the expense of extracting it. A Russian company, Zarubezhneft, also searched without success in shallow waters closer to shore.
But Cuba is determined to keep trying, Graham said, because of seismic testing that indicates sizable deposits north of the island.

“In fact, they have either made a commitment or are negotiating commitments for drilling in 10 additional blocks of the area north of the Cuban coast, and they hope to have some drilling started as early as 2015,” Graham said. “They are satisfied that these [seismic tests] show enough commercially promising oil deposits that they are proceeding forward aggressively.”

Their latest target, he said, is near the maritime border, midway between Cuba and Key West. That would push the exploration into deeper water closer to Florida – and increase the risk of a spill.

“What is contemplated is an area north of Cuba that could be 10,000 to 12,000 feet deep,” Graham said. “It could be considerably deeper. And the deeper it gets, the riskier it is.”
The Deepwater Horizon spill in the Gulf of Mexico was in water more than 5,000 feet deep. It spewed 210 million gallons of crude oil, causing billions of dollars of damage to five coastal states, slathering beaches, ruining the area’s tourist season, devastating its fishing industry and causing lasting harm to marine life.

Gulf currents carried part of the oil slick toward the Florida Keys, but an eddy shut it off, sparing South Florida from damage.

Oceanographers who study the currents share Graham’s concern.

“If you do have an oil spill anywhere north of Havana, in all likelihood you would end up with oil reaching the U.S. coast,” Frank Muller-Karger, a marine scientist at the University of South Florida said Monday. “If the oil reaches the coast, it’s a disaster. We have the largest coral reef in the continental U.S. there. It’s a tremendous wildlife resource, a fishing resource, a tourism resource, huge cities that depend on those beaches. So it would have a very big impact.”

To guard against disaster, the U.S. Coast Guard plans to skim, burn or spray chemical dispersants on any slick that forms in the Caribbean to stop it from reaching the Florida coast. The Coast Guard’s contingency plan also calls for placing floating booms along the entrance to marine sanctuaries and inlets to protect mangroves and hatching waters for fish and other wildlife.

But the task is complicated by the embargo and frosty relations between the countries, which could block U.S. companies from going to the site of a potential spill without Cuban permission.

Coast Guard and other U.S. officials have been meeting with counterparts from Cuba, Mexico, the Bahamas and Jamaica to confront these barriers and form a regional response plan.

“In terms of safety issues, their standards are high – in some instances they even exceed U.S. standards,” Graham said. “The question is their capability to meet those standards.”

wgibson@tribune.com or 202-824-8256

Special thanks to Richard Charter

Washington Examiner: Lawmakers spar over seismic testing for Atlantic Ocean drilling

http://washingtonexaminer.com/article/2541969

BY ZACK COLMAN | JANUARY 10, 2014 AT 2:04 PM

The National Oceanic and Atmospheric Administration warns that, “Increasing evidence suggests…
A long-awaited final federal study on the environmental impact of using seismic guns to search for oil and gas deposits off the Atlantic coast is due at the end of February, signaling future battles between Republicans and Democrats regarding offshore drilling.

The final environmental impact study on using seismic guns to explore for oil and gas from the Interior Department’s Bureau of Ocean energy Management has been five years in the making, and will be used to inform decisions on whether to open the Atlantic Ocean to offshore oil and gas drilling.

A seismic gun shoots compressed air into the water and reflects off the seabed to deliver information about whether oil and gas deposits lay beneath. Proponents say it reduces the costs and environmental damage of exploration, while opponents say the shots can deafen marine life, disrupt habitats and lead to eventual death.

While Democrats say the practice disturbs marine life, Republicans say it’s safe, noting that the federal government has never pinned a marine mammal death to seismic guns.
It’s a complicated matter, said Bureau of Ocean Energy Management Deputy Director Walter Cruickshank, who noted the environmental study has taken longer than usual.

“There’s a lot of species out there, a lot of ocean to cover, and we’re continuing to learn new things as we conduct this research,” he said during a Friday hearing in the House Natural Resources Subcommittee on Energy and Mineral Resources.

At its core, though, approval of seismic guns is a discussion of expanding offshore drilling, lawmakers noted at the hearing.

“There’s been a lot of talk about, ‘Let’s explore.’ But talk is cheap. Action is needed,” said Rep. Rob Wittman, R-Va., who noted the state’s Democratic Sens. Mark Warner and Tim Kaine, along with Democratic Gov.-elect Terry McAuliffe, support offshore drilling.

For now, the Obama administration’s current drilling plan that runs through 2017 blocks energy development in the Atlantic Ocean. Those Atlantic blocks were included in a draft of the president’s first five-year drilling plan, but he revised it following the April 2010 Deepwater Horizon disaster that killed 11 workers and spewed 4.2 million barrels of oil into the Gulf of Mexico.

Drilling supporters say wading into the Atlantic could be lucrative — an American Petroleum Institute report said it would provide 280,000 jobs and add $23.5 billion to the U.S. economy each year between 2017 and 2035.

If the federal government decides to offer oil leases in the Atlantic, it would likely come in the latter half of the next five-year drilling plan that would run through 2022, Cruickshank said.

Many Democrats hope that doesn’t happen.

They warned at the hearing that U.S. laws have not strengthened enough in the wake of the Deepwater Horizon incident — though Donald Boesch, a marine biologist who worked on a White House-convened independent commission evaluating the response to the spill, said federal regulations and industry have responded well.

Democrats maintained another spill would threaten tourism and fishing industries that support 200,000 jobs and bring in $11.8 billion annually, according to ocean conservation group Oceana.

Seismic testing would pose a risk to those industries too, said Boesch, who is president of the University of Maryland Center for Environmental Science.

“There’s legitimate concerns,” Boesch said. “It’s a matter of legitimate scientific controversy.”

The National Oceanic and Atmospheric Administration warns that, “Increasing evidence suggests that exposure to intense underwater sound in some settings may cause certain marine mammals to strand and ultimately die.” Oceana, citing federal projections, says seismic testing would injure 138,500 dolphins and whales through 2020.

“We should not be risking our fishing and tourism industries … because the energy companies want to get their hands on a quick oil buck,” said Rep. Rush Holt, D-N.J., the top Democrat on the subcommittee.

But Republicans and industry say seismic testing has greatly improved since its early use in the 1970s.

They also noted that none of the 60 “unusual mortality events” that killed marine life since 1991 and were documented by a federal working group were the result of seismic testing.

Suggestions of a link between seismic testing and marine mammal deaths “is likely a chimera,” said James Knapp, chairman of the department of earth and ocean sciences at the University of South Carolina.

Enhancements in seismic testing include the advent of 3D imaging, which witnesses credited with reducing environmental damage through curtailing exploration by drilling.

It also has helped shed light on the potentially vast resources available undersea. In the Gulf of Mexico, seismic testing revealed a resource basin five times larger than previously thought, Richie Miller, president of Spectrum Geo Inc., said during the hearing.
“We would expect the same thing just with this new technology off the East Coast,” he said.

Special thanks to Richard Charter

Offshore Energy Today: Center for Biological Diversity Calls for End of Offshore Fracking in California

http://www.offshoreenergytoday.com/center-for-biological-diversity-calls-for-end-of-offshore-fracking-in-california/

Posted on Nov 15th, 2013 with tags California, News, offshore fracking .

Citing the use of hazardous hydraulic fracturing chemicals and the release of oil industry wastewater off California’s coast, the Center for Biological Diversity yesterday called on the Coastal Commission to halt fracking for oil and gas in state waters and press for tighter regulation of fracking in federal waters.

In a letter delivered as commissioners meet this week in Newport Beach, the Center says hundreds of recently revealed frack jobs in state waters violate the Coastal Act. Some oil platforms are discharging wastewater directly into the Santa Barbara Channel, according to a government document.

“The Coastal Commission has the right and the responsibility to step in when oil companies use dangerous chemicals to frack California’s ocean waters,” said Emily Jeffers, a Center attorney. “Our beaches, our wildlife and our entire coastal ecosystem are at risk until the state reins in this dangerous practice.”

After noting seven risky chemicals used by oil companies fracking in California waters, the letter describes the duties of the Coastal Commission to protect wildlife, marine fisheries, and the environment. “Because the risk of many of the harms from fracking cannot be eliminated, a complete prohibition on fracking is the best way to protect human health and the environment,” the letter says.

At minimum, the Coastal Commission must take action under the Coastal Act to regulate the practice, including requiring oil and gas operators fracking in state waters to obtain a coastal development permit.

The letter also contains the Center’s analysis of chemicals used in 12 recent frack jobs in state waters near Long Beach. Drawing on data disclosed by oil companies, the Center found that at least one-third of chemicals used in these fracking operations are suspected ecological hazards. More than a third of these chemicals are suspected of affecting the human developmental and nervous systems.

The chemical X-Cide, used in all 12 offshore frack jobs examined by the Center, is classified as a hazardous substance by the federal agency that manages cleanup at Superfund sites. X-Cide is also listed as hazardous to fish and wildlife.

Oil companies have used fracking at least 200 times in waters off Long Beach, Seal Beach and Huntington Beach, as well as in federal waters in the Santa Barbara Channel. Fracking involves blasting massive amounts of water and industrial chemicals into the earth at pressures high enough to crack geologic formations and release oil and gas.

Approximately half the oil platforms in federal waters in the Santa Barbara Channel discharge all or a portion of their wastewater directly to the ocean, according to a Coastal Commission document. This produced wastewater contains all of the chemicals injected originally into the fracked wells, with the addition of toxins gathered from the subsurface environment.

The Center’s letter says that water pollution from fracking and oil operations in California’s waters poses risks to a wide range of threatened and endangered species, including Blue whales, sea otters, and Leatherback turtles.

Special thanks to Richard Charter

New Zealand: Protesters’ flotilla awaits drillship

http://www.stuff.co.nz/national/9410561/Protesters-flotilla-awaits-drillship

ELTON SMALLMAN

BEN CURRAN/Fairfax NZ

protestors
SPEAKING UP: Raglan residents at the car park in Manu Bay on Saturday, protesting against oil company Anadarko’s offshore drilling programme.

Oil Free Seas Flotilla
A flotilla of protesters is promising to defend the ocean from deep-sea oil exploration as an Anadarko vessel sets a course for their location.

The flotilla of ocean-going yachts, which include the Greenpeace yacht Vega, raced the drillship the Noble Bob Douglas to the site at the Romney Prospect, 110 nautical miles off the Raglan coast, at the weekend.

Greenpeace executive director Bunny McDiarmid, who was on one of the six boats, said they planned a peaceful protest where Anadarko will drill in 1500 metre of water in what will be New Zealand’s deepest well.

“Our objective is to faithfully defend our oceans and our coastline, defend our climate, defend out future generations against very risky and unnecessary deep-sea oil drilling,” she said.

Changes to the Crown Minerals Act, known as the Anadarko Amendment, limits protest activity in New Zealand’s Exclusive Economic Zone and requires all boats to remain 500m clear of drilling operations.

“Seeing as the ship is not here yet there is no restricted zone where we are. We’re just sailing off the coast of New Zealand in very beautiful water.”

The Oil Free Seas flotilla was a loose alliance who wanted to halt exploration and said coastal communities would suffer in a major spill. “The Raglan community and that coastline there would be in the direct path of any major oil spill if it should happen so they have a lot to lose.”

Former Green party leader Jeanette Fitzsimons was also on the flotilla and said Anadarko threatened her grandchildren’s right to a clean environment.

Anadarko’s drilling ship the Noble Bob Douglas was 50 nautical miles off New Plymouth last night and was due to depart overnight.

They will set up in the permitted area and corporate affairs manager Alan Seay expected everything to run smoothly.

“We respect their right to protest and I’d ask that they respect our right to go about our lawful business and respect the safety zone that will be around the Noble Bob Douglas,” he said. “I do understand that they are not allowed to interfere with that location that they must move off when the drillship arrives so we very much hope that that is what happens otherwise they will be interfering.”

Special thanks to Richard Charter