Final NPDES General Permit for New and Existing Sources in the Offshore Subcategory of the Oil and Gas Extraction Category for the Western Portion of the Outer Continental Shelf of the Gulf of Mexico (GMG290000)

ENVIRONMENTAL PROTECTION AGENCY

[FRL-5533-9]

Final NPDES General Permit for New and Existing Sources in the

Offshore Subcategory of the Oil and Gas Extraction Category for the

Western Portion of the Outer Continental Shelf of the Gulf of Mexico

(GMG290000)

AGENCY: United States Environmental Protection Agency.

ACTION: Final issuance of NPDES general permit.

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SUMMARY: Region 6 of the United States Environmental Protection Agency

(EPA) today issues a National Pollutant Discharge Elimination System

(NPDES) General Permit for the Oil and Gas Extraction Point Source

Category in the Western Portion of the Outer Continental Shelf (OCS) of

the Gulf of Mexico. The permit authorizes discharges from New Sources

in the Offshore Subcategory of the Oil and Gas Extraction Point Source

Category (40 CFR Part 435, Subpart A) located in and discharging

pollutants to federal waters in lease blocks located seaward of the

outer boundary of the territorial seas of Louisiana and Texas as well

as produced water discharges to federal waters from New Source

facilities located in the territorial seas offshore of Louisiana and

Texas.

The New Source General Permit (GMG390000) is also being combined

with the existing NPDES general permit for the Western Gulf of Mexico

OCS general permit (GMG290000) since the conditions of the New Source

permit are essentially the same as those of the existing Western Gulf

of Mexico OCS general permit. The NPDES permit number of this combined

permit is hereby designated as GMG290000. The existing permit (58 FR

63964, December 3, 1993) authorizes discharges in the Offshore

Subcategory of the Oil and Gas Extraction Point Source Category (40 CFR

Part 435, Subpart A) from new dischargers and existing dischargers to

the Western Portion of the Outer Continental Shelf (OCS) of the Gulf of

Mexico. The effect of this action will be to expand the coverage of

GMG290000 to cover both New Sources and existing dischargers. The

combined permit's expiration date will be November 18, 1997, since that

is the expiration date of the existing General Permit for the Western

Gulf of Mexico OCS.

[[Page 41610]]

A modification of the permit is also proposed in this Federal

Register notice which will authorize new discharges of seawater and

freshwater to which treatment chemicals have been added. It is

necessary for operators to add corrosion inhibitors, scale inhibitors,

or biocides to seawater and freshwater used in many miscellaneous

processes offshore to ensure safe and efficient operation. The existing

permit does not authorize these discharges; therefore, they are

proposed to be authorized with this modification.

DATES: All limits and monitoring requirements pertaining to new sources

and all changes which affect existing and new dischargers shall become

effective September 9, 1996. Unchanged terms of the existing permit

which cover existing and new dischargers shall remain effective.

FOR FURTHER INFORMATION CONTACT: Ms. Ellen Caldwell, EPA Region 6, 1445

Ross Avenue, Dallas, Texas 75202, Telephone: (214) 655-7513.

SUPPLEMENTARY INFORMATION:

Regulated Entities

Entities potentially regulated by this action are those which

operate offshore oil and gas extraction facilities located in the Outer

Continental Shelf of the western Gulf of Mexico.

------------------------------------------------------------------------

Category Examples of regulated entities

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Industry.......................... Offshore Oil and Gas Extraction

Platforms.

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This table is not intended to be exhaustive, but rather provides a

guide for readers regarding entities likely to be regulated by this

action. This table lists the types of entities that EPA is now aware

could potentially be regulated by this action. Other types of entities

not listed in the table could also be regulated. To determine whether

your [facility, company, business, organization, etc.] is regulated by

this action, you should carefully examine the applicability criteria in

Part I. Section A.1. of the rule. If you have questions regarding the

applicability of this action to a particular entity, consult the person

listed in the preceding FOR FURTHER INFORMATION CONTACT section.

Pursuant to section 402 of the Clean Water Act (CWA), 33 U.S.C.

section 1342, EPA proposed and solicited public comment on an NPDES New

Source General Permit GMG390000 at 58 FR 53200 (October 14, 1993). This

permit was proposed in response to newly promulgated new source

performance standards and the new designation of new sources. Notice of

this proposed permit was also published in the Houston Post and New

Orleans Times Picayune on October 16, 1993. The comment period closed

on November 29, 1993.

Region 6 received written comments from the American Petroleum

Institute (API), Offshore Operators Committee (OOC), Shell Offshore

Inc., and Murphy Exploration and Production Company.

EPA Region 6 has considered all comments received. In some

instances minor wording changes were made in the final permit in order

to clarify some points as a result of comments or to correct

typographical errors. In response to the comments submitted on the

proposed New Source permit, the following substantive changes were made

in the final permit. The New Source general permit has been combined

with the existing Western Gulf of Mexico OCS general permit. Use of

diffusers, multi-port discharges, and the addition of seawater to the

produced water waste stream are allowed to obtain additional dilution

to achieve compliance with the permit's produced water toxicity limits.

The permit allows produced water to be discharged to OCS waters of the

Western Gulf of Mexico from facilities located in the Territorial Seas

of Texas and Louisiana. The maximum produced water discharge rate

within any 100 meter mixing zone is limited to 25,000 bbl/day, except

when the discharge is divided into multiple ports which are vertically

separated sufficiently to prevent the plumes from colliding. Discharge

of all garbage within 12 nautical miles from shore is prohibited and

the discharge of all garbage except comminuted edible food waste is

prohibited farther than 12 nautical miles from shore. A single grab

sample is allowed for oil and grease monitoring of the produced water

waste stream. The additional discharge of hydraulic fluids from the

sub-sea production wellhead assembly is allowed under the permit.

Permit language was also clarified regarding when a produced water

sample is to be collected for toxicity testing.

Several minor permit language changes were made to the proposed

permit which result from combining it with the existing OCS general

permit. Those changes are: the test methods to be used for radionuclide

monitoring were referenced in the permit, and well treatment,

completion, and workover fluids are to be monitored as produced water

when commingled in the produced water waste stream.

Several minor modifications, as discussed in the following

paragraph, were required in the existing Western Gulf of Mexico OCS

general permit (GMG290000) in order to combine the two permits. Given

the generally nonsubstantive nature of these minor permit changes,

Region 6 does not anticipate members of the public will wish to submit

adverse comments on this action. It is accordingly publishing these

minor changes as ``direct final'' modifications. If, however, Region 6

receives written notice within 30 days of this publication that any

person wishes to submit adverse comments on these changes, the

modifications will not take effect. In that event, the Region will

republish these modifications as a proposal, thus affording reasonable

opportunity for public comment. After 30 days, OCS operators covered by

the permits may thus wish to contact Ms. Caldwell at the above address

or telephone number to determine whether EPA has received adverse

comments on this minor modification action.

The following minor modifications were made in the existing OCS

permit. Permit language for drill cuttings limits and monitoring

requirements was clarified to show that toxicity monitoring is not

required on the cuttings, only on the associated drilling fluids. A

typographical error in the produced water oil and grease monitoring

requirements was corrected so that the permit allows the results of a

single grab sample or the arithmetic average of the results of four

grab samples to be reported. Language was clarified to show that the

only discharge from the territorial seas to the Outer Continental Shelf

allowed under the permit is produced water. The sum of produced water

discharges within the 100 meter mixing zone of greater than 25,000 bbl/

day are permitted as long as the discharge from any single discharge

port is not greater than 25,000 bbl/day and the permittee vertically

separates the discharge ports enough to prevent the effluent plumes

from colliding. Facilities which have not previously reported a

produced water flow on the discharge monitoring report are now required

to use the most recent monthly average flow to determine produced water

monitoring requirements for toxicity, naturally occurring

radionuclides, and bioaccumulation. Garbage and domestic waste

limitations were corrected to correspond with Coast Guard Regulations.

The biomonitoring permit language used in both the proposed New

Source OCS General Permit and the existing OCS general permit was

written prior to proposal of the existing OCS general permit on April

16, 1991. EPA Region 6 has revised the toxicity testing language

included in permits several times since the April 16, 1991 proposal.

[[Page 41611]]

In order to ensure that the test requirements and protocol permittees

use for produced water toxicity compliance monitoring is up to date,

the most recent revision of the toxicity testing language was included

in the final combined permit.

Proposed Permit Modification

At this time, EPA is also proposing to modify the permit to

authorize discharges of hydrotest and other seawater or freshwater to

which treatment chemicals or biocides have been added. The existing OCS

permit and proposed new source general permit both include

miscellaneous discharges of uncontaminated seawater and uncontaminated

freshwater. Both uncontaminated seawater and uncontaminated freshwater

are defined as water to which no chemicals have been added. In most

cases, where seawater or freshwater is used for hydrotesting piping,

non-contact cooling water, continuous operation of fire control or

utility pumps, pressure maintenance and secondary recovery, or ballast

water, operators add treatment chemicals to inhibit corrosion and

scaling, or biocides to prevent fouling. EPA recognizes that addition

of chemicals for these uses is necessary to safe and efficient

operations in the offshore environment and is therefore proposing to

authorize discharges containing them in the combined permit.

Permittees use a broad range of chemicals to treat sea water and

fresh water used in offshore operations. It is impossible to limit each

chemical used individually since more than one hundred different

chemicals are used. Also, if the permit were to limit specific

chemicals it could potentially halt the development and use of new more

beneficial treatment chemicals which would not be specifically listed

in the permit and for which discharge would therefore not be

authorized.

Best Available Technology Economically Achievable (BAT) limits

established by best professional judgement are proposed to be included

in the permit for these discharges. Many of the chemicals normally

added to treat seawater or freshwater, especially biocides, have

manufacturers recommended maximum concentrations. Additionally,

information obtained from offshore operators demonstrates that it is

unnecessary to use any of the treatment chemicals or biocides in

concentrations greater than 500 mg/l. The proposed technology based

limitations for treatment chemicals or biocides in miscellaneous

discharges of seawater or freshwater are the manufacturers maximum

recommended concentration but in no case greater than 500 mg/l.

Water quality based limits are included in the permit to ensure

compliance with Ocean Discharge Criteria promulgated under CWA section

403(c). Acute toxicity monitoring and limits of no acute toxicity are

proposed for the new discharges. The limits were developed using the

dilutions calculated at the edge of the mixing zone and an acute to

chronic ratio of ten to one. An acute toxicity test based on an

appropriate acute to chronic ratio is considered an equivalent test to

a chronic toxicity test. The ten to one acute to chronic ratio is the

normal ratio for most industrial effluents and has been used in other

NPDES permits where the effluent is highly diluted in the receiving

stream and an acute test is required in place of a chronic test. In

addition, the acute test is less burdensome to permittees because it is

less costly than a chronic test and because the acute test will be run

on less dilute effluent there is less chance for laboratory error. As

with produced water toxicity limits, tables have been included in the

permit from which permittees will obtain their critical dilution based

on their discharge rate, pipe diameter, and the water depth at which

they are discharging. Permittees will be required to conduct a 48-hour

acute toxicity test to determine compliance with the limit.

The discharge of free oil is proposed to be prohibited in these

discharges to help to prevent the discharge of toxic pollutants

contained in oil, which may contaminate these discharges and cause

unreasonable degradation of the marine environment. Ocean discharge

criteria (40 CFR 125.122) include ten factors which must be considered

in determining whether a discharge will cause unreasonable degradation

of the marine environment. One of the ten factors which must be

examined is the potential impacts on human health through direct and

indirect pathways. 40 CFR 110.4 defines quantities of oil which may be

harmful to public health or welfare of the United States as a discharge

which causes a sheen or discoloration on the receiving water. These

discharges are proposed to be limited to no free oil as measured using

the visual sheen test method.

Monitoring for toxicity is required in the permit based on the

discharge rate. As with produced water, larger discharges are required

to be monitored more frequently than small ones because they are less

dilute at the edge of the mixing zone and have a greater potential to

cause toxic effects. The proposed monitoring frequencies are:

------------------------------------------------------------------------

Discharge rate Toxicity testing frequency

------------------------------------------------------------------------

0-499 bbl/day....................... Once per year.

500-4,599 bbl/day................... Once per quarter.

4,600 bbl/day and above............. Once per month.

------------------------------------------------------------------------

The frequency of free oil monitoring is required to be once per

week. This is the same frequency as required for well treatment,

completion, and workover fluids and should not be too onerous since the

test method is simple and can be accomplished on site.

DATES: Comments on the proposed permit modification must be received by

October 8, 1996.

ADDRESSES: Comments on the proposed permit modification to add coverage

of the new miscellaneous discharges should be sent to: Regional

Administrator Region 6, U.S. Environmental Protection Agency, 1445 Ross

Avenue, Dallas, Texas 75202-2733.

FOR FURTHER INFORMATION CONTACT: Ms. Ellen Caldwell, Region 6, U.S.

Environ-mental Protection Agency, 1445 Ross Avenue, Dallas, Texas

75202-2733. Telephone: (214) 655-7513.

A copy of the proposed modified permit or a detailed fact sheet for

the modification (neither of which are included in this Federal

Register notice) may be obtained from Ms. Caldwell. In addition, the

current administrative record on the proposal is available for

examination at the Region's Dallas offices during normal working hours

after providing Ms. Caldwell 24 hours advanced notice.

Other Legal Requirements

Oil Spill Requirements

CWA section 311 prohibits the discharge of oil and hazardous

materials in harmful quantities. Discharges in compliance with NPDES

permit limits are excluded from this prohibition, but the final

combined permit neither precludes enforcement action for violations of

CWA section 311 nor relieves permittees from any responsibilities,

liabilities, or penalties for other unauthorized discharges of oil or

hazardous materials subject to CWA section 311.

Endangered Species Act

As explained at 58 FR 53203, EPA has found that issuance of the New

Source General Permit will not adversely affect any listed threatened

or endangered species or designated critical habitat and requested

written concurrence on

[[Page 41612]]

that determination from the National Marine Fisheries Service (NMFS).

The same determination was made and concurrence received from National

Marine Fisheries Service when the existing OCS general permit was

reissued on November 19, 1992 and modified on December 3, 1993. On

November 4, 1993, NMFS again provided such concurrence on the proposed

New Source General Permit for the Western Portion of the Gulf of Mexico

(GMG390000).

Ocean Discharge Criteria Evaluation

At 58 FR 41476 and 58 FR 63964 EPA Region 6 determined that

discharges in compliance with the modified Western Gulf of Mexico Outer

Continental Shelf general permit (GMG290000) would not cause

unreasonable degradation of the marine environment. Since the modified

existing general permit and the New Source General Permit are nearly

identical and EPA Region 6 has determined that neither permit will

cause unreasonable degradation of the marine environment, the Region

finds that issuance of the combined general permit will not cause

unreasonable degradation of the marine environment.

Environmental Impact Statement

EPA determined that issuance of the NPDES New Source General Permit

for the Western Portion of the Outer Continental Shelf of the Gulf of

Mexico was a major Federal action significantly affecting the quality

of the human environment. Thus, pursuant to the National Environmental

Policy Act of 1969 (NEPA) evaluation of the potential environmental

consequences of the permit action in the form of an Environmental

Impact Statement (EIS) was required. The Minerals Management Service

(MMS) had previously examined the environmental consequences in their

final EIS which was conducted for oil and gas lease sales 142 and 143

in the OCS Region of the Gulf of Mexico. EPA adopted that EIS and

prepared a Supplemental EIS (SEIS) to allow for additional

consideration and evaluation of potential impacts on air quality, water

quality, including radium in produced water, and cumulative effects.

The Draft SEIS and Final SEIS were completed in October 1993 and

December 1994, respectively. EPA considered all the information

gathered during that NEPA review including the impact analysis,

comments received on the Draft SEIS and Final SEIS, input received from

the scoping meeting and public hearings on the Draft SEIS and the

proposed NPDES permit, and other information provided by interested

parties during the SEIS process. Additionally, to address impacts

relative to applicable Federal and State regulatory statutes, programs,

and regulations, consultation was undertaken with the Advisory Council

on Historic Preservation, the U.S. Fish and Wildlife Service, the

National Marine Fisheries Service, and the Texas Natural Resource

Conservation Commission. Through this process EPA found no predicted

unacceptable or potentially significant adverse impacts, individually

or cumulatively, that were not subject to control through regulation or

mitigation. The Record of Decision for that process was prepared and

dated September 28, 1995. Based on that Record of Decision, EPA is

issuing the New Source general permit.

Coastal Zone Management Act

The Region found the proposed New Source General Permit consistent

with Louisiana's approved Coastal Zone Management Plan and submitted

that determination and a copy of the proposed permit to the Louisiana

Coastal Commission for certification. After informal consultation, the

Commission provided such certification on August 1, 1994. The

Commission also previously provided such certification for the

modification of the existing Western Gulf of Mexico Outer Continental

Shelf general permit on October 14, 1993.

Marine Protection and Sanctuaries Act

Pursuant to the Marine Protection and Sanctuaries Act, the National

Oceanographic and Atmospheric Administration has designated the Flower

Garden Banks, an area within the coverage of the OCS general permit, a

marine sanctuary. The OCS general permit prohibits discharges in areas

of biological concern, including marine sanctuaries. No change adopted

today affects that prohibition.

State Water Quality Certification

Because discharges to state waters are not covered by the combined

OCS general permit, its terms are not subject to state water quality

certification under CWA section 401.

Executive Order 12866

The Office of Management and Budget (OMB) has exempted this action

from the review requirements of Executive Order 12291 pursuant to

Section 8(b) of that order. Guidance on Executive Order 12866 contain

the same exemptions on OMB review as existed under Executive Order

12291. In fact, however, EPA prepared a regulatory impact analysis in

connection with its promulgation of the guidelines on which a number of

the New Source permit's and the existing permit's provisions are based

and submitted it to OMB for review. See 58 FR 12494.

Paperwork Reduction Act

The information collection required by this permit has been

approved by OMB under the provisions of the Paperwork Reduction Act in

EPA submissions for the NPDES program assigned OMB control numbers

2040-0086 (NPDES permit application) and 2040-0004 (discharge

monitoring reports). When it issued the existing OCS general permit,

EPA estimated it would take an affected facility three hours to prepare

a request for coverage and 38 hours per year to prepare discharge

monitoring reports. Likewise, when EPA proposed the New Source General

Permit it estimated the same amount of time needed to prepare requests

for coverage and discharge monitoring reports, since there would be few

differences between the requirements for the two different permits.

Changes made in the final combined permit will not add to the time

needed to fill out discharge monitoring reports or request coverage

under the permit.

Regulatory Flexibility Act

The Regulatory Flexibility Act requires that federal agencies

prepare a regulatory flexibility analysis for regulations that will

have a significant impact on a substantial number of small entities. In

promulgating the Offshore Subcategory New Source Performance Standards

on which many of today's New Source permit issuance is based, EPA

prepared an economic impact analysis showing they would directly impact

no small entities. See 58 FR 12492. Based on those findings and

pursuant to 5 U.S.C. Sec. 605(b), EPA Region 6 has certified that

issuance of this final permit will not have a significant impact on a

substantial number of small entities.

NPDES Permit GMG290000 is hereby combined with the proposed New

Source General Permit for the Western Gulf of Mexico Outer Continental

Shelf (Permit No. GMG390000) and is modified to read as it appears

below.

Authorization To Discharge Under the National Pollutant Discharge

Elimination System

In compliance with the Federal Water Pollution Control Act, as

amended (33 U.S.C. 1251 et seq. the ``Act''), operators of lease blocks

in the Oil and Gas Extraction Point Source Category which are located

in Federal waters of the Western Portion of the Gulf of Mexico

[[Page 41613]]

(defined as seaward of the outer boundary of the territorial seas off

Louisiana and Texas) are authorized to discharge to the Western Portion

of the Federal Waters of the Gulf of Mexico in accordance with effluent

limitations, monitoring requirements, and other conditions set forth in

Parts I, II, and III hereof. Also, operators of lease blocks located in

the territorial seas of Louisiana and Texas are authorized to discharge

produced water from those lease blocks to the Western Portion of the

Federal Waters of the Gulf of Mexico in accordance with effluent

limitations, monitoring requirements, and other conditions set forth in

Parts I, II, and III hereof.

Operators of lease blocks located within the general permit area

must submit written notification to the Regional Administrator that

they intend to be covered (See Part I.A.2). Unless otherwise notified

in writing by the Regional Administrator after submission of the

notification, owners or operators requesting coverage are authorized to

discharge under this general permit. Operators of lease blocks within

the general permit area who fail to notify the Regional Administrator

of intent to be covered by this general permit are not authorized under

this general permit to discharge pollutants from those facilities.

Operators who have previously submitted a written notification of

intent to be covered by this permit need not submit an additional

notification of intent to be covered.

Facilities which adversely affect properties listed or eligible for

listing in the National Register of Historic Places are not authorized

to discharge under this permit.

This permit shall become effective at Midnight Central Daylight

Savings Time on September 9, 1996.

This permit and the authorization to discharge shall expire at

midnight, Central Daylight Savings Time, November 18, 1997.

Signed this 18th day of April, 1996.

Oscar Ramirez,

Acting Director, Water Quality Protection Division, EPA Region 6.

Part I. Requirements for NPDES Permits

Section A. Permit Applicability and Coverage Conditions

1. Operations Covered

This permit establishes effluent limitations, prohibitions,

reporting requirements, and other conditions on discharges from oil and

gas facilities engaged in production, field exploration, developmental

drilling, well completion, and well treatment operations.

The permit coverage area consists of lease blocks located in and

discharging to Federal waters in the Gulf of Mexico seaward of the

outer boundary of the territorial seas offshore of Louisiana and Texas

and shall include lease blocks west of the western boundary of the

outer continental shelf lease areas defined as: Mobile, Viosca Knoll

(north part), Destin Dome, Desoto Canyon, Lloyd, and Henderson. In

Texas, where the state has mineral rights to 3 leagues, some operators

with state lease tracts are required to request coverage under this

Federal NPDES general permit. In addition, permit coverage consists of

produced water discharges to those Federal waters of the western Gulf

of Mexico from lease blocks located in the territorial seas of Texas

and Louisiana. This permit does not authorize discharges from

facilities discharging to the territorial seas of Louisiana or Texas or

from facilities defined as ``coastal'', ``onshore'', or ``stripper''

(see 40 CFR Part 435, Subparts C, D, and E).

2. Notification Requirements

Written notification of intent to be covered including the legal

name and address of the operator, the lease block number assigned by

the Department of Interior or the state or, if none, the name commonly

assigned to the lease area, and the number and type of facilities

located within the lease block shall be submitted at least fourteen

days prior to the commencement of discharge. If the lease block was

previously covered by this or another permit, the operator shall also

include the previous permit number in the notification. Additionally,

if an application for an individual permit for the activity was

previously submitted to EPA Region 6, the notice of intent shall

include the application/permit number of that application or the permit

number of any individual NPDES permit issued by EPA Region 6 for this

activity.

Permittees located in lease blocks that (a) are neither in nor

adjacent to MMS-defined ``no activity'' areas, or (b) do not require

live-bottom surveys are required only to submit a notice of intent to

be covered by this general permit. Permittees who are located in lease

blocks that are either in or adjacent to ``no activity'' areas or

require live bottom surveys are required to submit both a notice of

intent to be covered that specifies they are located in such a lease

block, and in addition are required to submit a notice of commencement

of operations.

Permittees located in lease blocks either in or immediately

adjacent to MMS-defined ``no activity'' areas, shall be responsible for

determining whether a controlled discharge rate is required. The

maximum discharge rate for drilling fluids is determined by the

distance from the facility to the ``no activity'' area boundary and the

discharge rate equation provided in Appendix A. The permittee shall

report the distance from the permitted facility to the ``no activity''

area boundary and the calculated maximum discharge rate to EPA with its

notice of commencement of operations.

For permittees located in lease blocks that require live-bottom

surveys, the final determination of the presence or absence of live-

bottom communities, the distance of the facility from identified live-

bottom areas, and the calculated maximum discharge rate shall be

reported with the notice of commencement of operations.

All notifications of intent to be covered and any subsequent

reports under this permit shall be sent to the following address:

Operations Support Office (6WQ-O), Region 6, U.S. Environmental

Protection Agency, 1445 Ross Ave., Dallas, TX 75202.

Operators who have previously submitted a written notification of

intent to be covered by this permit need not submit an additional

notification of intent to be covered.

3. Termination of Operations

Lease block operators shall notify the Regional Administrator

within 60 days after the permanent termination of discharges from their

facilities within the lease block.

4. Intent to be Covered by a Subsequent Permit

Lease block operators authorized to discharge by this permit shall

notify the Regional Administrator on or before May 19, 1997, that they

intend to be covered by a subsequent permit that will authorize

discharge from these facilities after the termination date of this

permit (November 18, 1997). The notification shall include the previous

permit number assigned to the lease block.

Section B. Effluent Limitations and Monitoring Requirements

1. Drilling Fluids

The discharge of drilling fluids shall be limited and monitored by

the permittee as specified in Table 2 of Appendix A and as below.

Special Note: The permit prohibitions and limitations that apply

to drilling fluids, also apply to fluids that adhere to drill

cuttings. Any permit condition that may apply to the

[[Page 41614]]

drilling fluid discharges, therefore, also applies to cuttings

discharges.

(Exception) The discharge rate limit for drilling fluids does

not apply to drill cuttings.

(a) Prohibitions

Oil-Based Drilling Fluids. The discharge of oil-based drilling

fluids and inverse emulsion drilling fluids is prohibited.

Oil Contaminated Drilling Fluids. The discharge of drilling fluids

which contain waste engine oil, cooling oil, gear oil or any lubricants

which have been previously used for purposes other than borehole

lubrication, is prohibited.

Diesel Oil. Drilling fluids to which any diesel oil has been added

as a lubricant may not be discharged.

(b) Limitations

Mineral Oil. Mineral oil may be used only as a carrier fluid

(transporter fluid), lubricity additive, or pill.

Cadmium and Mercury in Barite. There shall be no discharge of

drilling fluids to which barite has been added, if such barite contains

mercury in excess of 1.0 mg/kg (dry weight) or cadmium in excess of 3.0

mg/kg (dry weight). The permittee shall analyze a representative sample

of all stock barite used once, prior to drilling each well, and submit

the results for total mercury and cadmium in the Discharge Monitoring

Report (DMR).

If more than one well is being drilled at a site, new analyses are

not required for subsequent wells, provided that no new supplies of

barite have been received since the previous analysis. In this case,

the results of the previous analysis should be used on the DMR.

Alternatively, the permittee may provide certification, as

documented by the supplier(s), that the barite being used on the well

will meet the above limits. The concentration of the mercury and

cadmium in the barite shall be reported on the DMR as documented by the

supplier.

Analyses shall be conducted by absorption spectrophotometry (see 40

CFR Part 136, flame and flameless AAS) and the results expressed in mg/

kg (dry weight).

Toxicity. Discharged drilling fluids shall meet both a daily

minimum and a monthly average minimum 96-hour LC50 of at least 30,000

ppm in a 9:1 seawater to drilling fluid suspended particulate phase

(SPP) volumetric ratio using Mysidopsis bahia. Monitoring shall be

performed at least once per month for both a daily minimum and the

monthly average. In addition, an end-of-well sample is required for a

daily minimum. The type of sample required is a grab sample, taken from

beneath the shale shaker. Permittees shall report pass or fail on the

DMR using either the full toxicity test or the partial toxicity test as

specified at 58 FR 12512; however, if the partial toxicity test shows a

failure, all testing of future samples from that well shall be

conducted using the full toxicity test method to determine the 96-hour

LC50.

Free Oil. No free oil shall be discharged. Monitoring shall be

performed using the static sheen method once per week when discharging.

The number of days a sheen is observed must be recorded.

Discharge Rate. All facilities are subject to a maximum discharge

rate of 1,000 barrels per hour.

For those facilities subject to the discharge rate limitation

requirement because of their proximity to areas of biological concern,

the discharge rate of drilling fluids shall be determined by the

following equation:

R=10 [3 Log (d/15)+Tt]

Where:

R=discharge rate (bbl/hr)

d=distance (meters) from the boundary of a controlled discharge rate

area

Tt=toxicity-based discharge rate term [log (LC50 x 8 x 10-

-6)] / 0.3657

Drilling fluids discharges (based on a mud toxicity of 30,000

ppm) equal to or less than 544 meters from areas of biological

concern shall comply with the discharge rate obtained from the

equation above. Drilling fluids discharges which are shunted to the

bottom as required by MMS lease stipulation are not subject to this

discharge rate control requirement.

All discharged drilling fluids, including those fluids adhering to

cuttings must meet the limitations of this section except that

discharge rate limitations do not apply before installation of the

marine riser.

(c) Monitoring Requirements

Drilling Fluids Inventory. The permittee shall maintain a precise

chemical inventory of all constituents and their total volume or mass

added downhole for each well.

2. Drill Cuttings

The discharge of drill cuttings shall be limited and monitored by

the permittee as specified in Appendix A, Table 2 and as below.

(a) Prohibitions

Cuttings from Oil Based Drilling Fluids. The discharge of cuttings

that are generated while using an oil-based or invert emulsion mud is

prohibited.

Cuttings from Oil Contaminated Drilling Fluids. The discharge of

cuttings that are generated using drilling fluids which contain waste

engine oil, cooling oil, gear oil or any lubricants which have been

previously used for purposes other than borehole lubrication, is

prohibited.

Cuttings Generated Using Drilling Fluids which Contain Diesel Oil.

Drill cuttings generated using drilling fluids to which any diesel oil

has been added as a lubricant may not be discharged.

Cuttings Generated Using Mineral Oil. The discharge of cuttings

generated using drilling fluids which contain mineral oil is prohibited

except when the mineral oil is used as a carrier fluid (transporter

fluid), lubricity additive, or pill.

Cadmium and Mercury in Barite. Drill cuttings generated using

drilling fluids to which barite has been added shall not be discharged

if such barite contains mercury in excess of 1.0 mg/kg (dry weight) or

cadmium in excess of 3.0 mg/kg (dry weight).

Toxicity. Drill cuttings generated using drilling fluids with a

daily minimum or a monthly average minimum 96-hour LC50 of less than

30,000 ppm in a 9:1 seawater to drilling fluid suspended particulate

phase (SPP) volumetric ratio using Mysidopsis bahia shall not be

discharged.

(b) Limitations

Free Oil. No free oil shall be discharged. Monitoring shall be

performed using the static sheen test method once per week when

discharging. The number of days a sheen is observed must be recorded.

3. Deck Drainage

(a) Limitations

Free Oil. No free oil shall be discharged, as determined by the

visual sheen method on the surface of the receiving water. Monitoring

shall be performed once per day when discharging, during conditions

when an observation of a visual sheen on the surface of the receiving

water is possible in the vicinity of the discharge, and the facility is

manned. The number of days a sheen is observed must be recorded.

4. Produced Water

(a) Limitations

Flow Rate. Produced water discharges from all outfalls located

within 100 meters of each other shall not exceed 25,000 bbl/day. This

limitation includes any seawater which has been added to the produced

water waste stream.

(Exception) The combined flow from vertically separated discharges

within the same mixing zone may exceed 25,000 bbl/day if the discharge

ports are sufficiently vertically separated to prevent the discharge

plumes from colliding. Dispersion modeling to determine sufficient

separation between discharge ports shall be accomplished

[[Page 41615]]

using CORMIX1 with the input parameters and Brooks Equation as

described later in this permit. The produced water flow from a single

discharge point (including any added seawater) shall not exceed 25,000

bbl/day.

Oil and Grease. Produced water discharges must meet both a daily

maximum of 42 mg/l and a monthly average of 29 mg/l for oil and grease.

The sample type shall be either grab, or a 24-hour composite which

consists of the arithmetic average of the results of 4 grab samples

taken over a 24-hour period. If only one sample is taken for any one

month, it must meet both the daily and monthly limits. Samples shall be

collected prior to the addition of any seawater to the produced water

waste stream. The analytical method is that specified at 40 CFR Part

136.

Toxicity. The 7-day average minimum and monthly average minimum No

Observable Effect Concentration (NOEC) must be equal to or greater than

the critical dilution concentration specified in Table 1 of this

permit. Critical dilution shall be determined using Table 1 of this

permit and is based on the discharge rate most recently reported on the

discharge monitoring report, discharge pipe diameter, and water depth

between the discharge pipe and the bottom. Facilities which have not

previously reported produced water flow on the discharge monitoring

report shall use the most recent monthly average flow for determining

the critical dilution from Table 1 of this permit. The monthly average

minimum NOEC value is defined as the arithmetic average of all 7-day

average NOEC values determined during the month.

(Exception) Permittees wishing to increase mixing may use a

horizontal diffuser, add seawater, or may install multiple discharge

ports.

Permittees using a horizontal diffuser shall install the diffuser

designed so that the 7-day average minimum and monthly average minimum

No Observable Effect Concentration (NOEC) is equal to or greater than

the critical dilution concentration as calculated by the following

method.

The method for running CORMIX2 is as follows:

1 The horizontal diffuser predicted mixing shall be determined by

the permittee using the CORMIX2 model and the Brooks equation (defined

in Step 3, below) with the following input conditions:

Density Gradient=0.15 m

Ambient seawater density at diffuser depth=1017 kg/m3

Produced water density=1070 kg/m3

Current speed=10 cm/sec.

2 Calculate the near field dilution factor (S) at the end of the

impingement region, the calculated collapsed plume width (H), and

downstream distance where the impingement region ends (x) from the

CORMIX2 model.

3 Using the input conditions from Step 1 and calculated factors

from Step 2, above, calculate the far field dilution factor, Ci/C,

using the Brooks equation:

[GRAPHIC] [TIFF OMITTED] TN09AU96.001

where:

Ci=concentration at end of impingement

C=concentration at edge of 100 m mixing zone

H=collapsed plume width, in meters

A=4/3 power law dispersion parameter = 0.000453 m2/3/sec

u=current speed

x=downstream distance where impingement region ends (from step 1,

above)

t=travel time from end of impingement to 100 m, = (100m - x)/u and;

erf=the error function

4 The total dilution at the 100 m mixing zone is defined as the

product of the near-field dilution factor, S, found in step 2 and the

far-field dilution factor, Ci/C, calculated is Step 3.

Permittees shall state the calculated critical dilution

corresponding to that diffuser on the annual Discharge Monitoring

Report (DMR) with a certification that the diffuser is installed. The

CORMIX2 model runs shall be retained by the permittee as part of its

NPDES records.

Permittees using vertically aligned multiple discharge ports shall

provide vertical separation between ports which is consistent with

Table 1A of this permit. When multiple discharge ports are installed,

the depth difference between the discharge port closest to the sea

floor and the sea floor shall be the depth difference used to determine

the critical dilution from Table 1 of this permit. The critical

dilution value shall be based on the port flow rate (total flow rate

divided by the number of discharge ports) and based on the diameter of

the discharge port (or smallest discharge port if they are of different

styles).

When seawater is added to the produced water prior to discharge,

the total produced water flow, including the added seawater, shall be

used in determining the critical dilution from Table 1.

(b) Monitoring Requirements

Flow. Once per month, an estimate of the flow (MGD) must be

recorded.

Toxicity. The flow used to determine the frequency of toxicity

testing shall be the flow most recently reported on the discharge

monitoring report for the facility. Facilities which have not

previously reported produced water flow on the discharge monitoring

report shall use the most recent monthly average flow. The required

frequency of testing shall be determined as follows:

------------------------------------------------------------------------

Discharge rate Toxicity testing frequency

------------------------------------------------------------------------

0-499 bbl/day....................... Once per year

500-4,599 bbl/day................... Once per quarter

4,600 bbl/day and above............. Once per month

------------------------------------------------------------------------

Samples for monitoring produced water toxicity shall be collected

after addition of any added substances, including seawater that is

added prior to discharge, and before the flow is split for multiple

discharge ports. Samples also shall be representative of produced water

discharges when scale inhibitors, corrosion inhibitors, biocides,

paraffin inhibitors, well completion fluids, workover fluids, and/or

well treatment fluids are used in operations.

If the permittee has been compliant with this toxicity limit for

one full year (12 consecutive months), the required testing frequency

shall be reduced to once per year.

Bioaccumulation. Facilities which discharge more than 4,600 barrels

of produced water per day shall collect and monitor marine organism

tissue samples twice per year. The discharge rate used to determine

participation under these requirements shall be the flow most recently

reported to EPA Region 6 on the discharge monitoring report. Facilities

which have not previously reported produced water flow on the discharge

monitoring report shall use the most recently recorded monthly average

flow to determine if they are required to conduct bioaccumulation

monitoring. Marine organism edible tissue shall be monitored for the

following pollutants: Benzo (a) Pyrene, Fluorene, Bis (2-ethylhexyl)

Phthalate, Ethylbenzene, Toluene, Benzene, Phenol, Arsenic, Cadmium,

Mercury, Radium 226, and Radium 228. Three marine species, with five

adults from each of those species, shall be collected and sampled twice

annually from the receiving waters. Samples shall be collected within

100 meters downcurrent, from the point of discharge, at the time of

discharge of produced water. Organisms taken shall

[[Page 41616]]

include one species of mollusc, one species of crustacea, and one

species of nektonic fish. Species sampled for edible tissue shall be

from the following list:

------------------------------------------------------------------------

Crustacea Mollusc Nektonic Fish

------------------------------------------------------------------------

Blue Crab....................... Eastern Oyster.... Atlantic Croaker

Stone Crab...................... Clam Species...... Snapper Species

Shrimp Species.................. Mussel Species.... Grouper Species

------------------------------------------------------------------------

Sampling shall be conducted once during the summer months (June

through August) and once during the winter months (December through

February). Results shall be reported in the DMR for the reporting

period in which samples are collected and analyzed. Permittees newly

covered under this permit who discharge in excess of 4,600 bbl/day of

produced water shall commence bioaccumulation monitoring within two

years after the discharge exceeds 4,600 bbl/day. Permittees previously

covered by permit No. GMG290000 who did not participate in the EPA

Region 6 approved industry wide bioaccumulation study were required to

commence monitoring within 2 years of November 19, 1992.

Alternatively, operators required to conduct bioaccumulation

monitoring under this permit may participate in the EPA Region 6

approved industry-wide bioaccumulation monitoring study. Monitoring

conducted under the study shall constitute compliance with the

bioaccumulation monitoring requirements of Part I.B.4.(b) of this

permit for those permittees who participate in such a study.

Radioactivity. Produced water discharges shall be monitored for

Radium 226 and Radium 228 (See Part I.D.7). The flow used to determine

the frequency of radiation monitoring shall be the flow most recently

reported on the discharge monitoring report for the facility.

Facilities which have not previously reported produced water flow on

the discharge monitoring report shall use the most recently recorded

monthly average flow. The required frequency of testing shall be

determined as follows:

------------------------------------------------------------------------

Discharge rate Monitoring frequency

------------------------------------------------------------------------

0-499 bbl/day....................... Once per year.

500-4,599 bbl/day................... Once per quarter.

4,600 bbl/day and above............. Once per month.

------------------------------------------------------------------------

When the permittee has monitored for radioactivity for one full

year the required testing frequency shall be reduced to once per year.

5. Produced Sand

There shall be no discharge of produced sand.

6. Well Treatment Fluids, Completion Fluids, and Workover Fluids

(a) Limitations

Free Oil. No free oil shall be discharged. Monitoring shall be

performed using the static sheen test method once per day when

discharging and the facility is manned. The number of days a sheen is

observed must be recorded.

Oil and Grease. Well treatment, completion, and workover fluids

must meet both a daily maximum of 42 mg/l and a monthly average of 29

mg/l limitation for oil and grease. The sample type may be either grab,

or a 24-hour composite consisting of the arithmetic average of the

results of 4 grab samples taken within the 24-hour period. If only one

sample is taken for any one month, it must meet both the daily and

monthly limits. The analytical method is that specified at 40 CFR Part

136.

Priority Pollutants. For well treatment fluids, completion fluids,

and workover fluids, the discharge of priority pollutants is prohibited

except in trace amounts. Information on the specific chemical

composition of any additives containing priority pollutants shall be

recorded.

(Note) If materials added downhole as well treatment, completion,

or workover fluids contain no priority pollutants, the discharge is

assumed not to contain priority pollutants except possibly in trace

amounts.

(b) Monitoring Requirements

This discharge shall be considered produced water for monitoring

purposes when commingled with produced water.

7. Sanitary Waste (Facilities Continuously Manned by 10 or More

Persons)

(a) Prohibitions

Solids. No floating solids may be discharged. Observations must be

made once per day, during daylight in the vicinity of sanitary waste

outfalls, following either the morning or midday meals and at the time

during maximum estimated discharge.

(b) Limitations

Residual Chlorine. Total residual chlorine is a surrogate parameter

for fecal coliform. Discharge of residual chlorine must meet a minimum

of 1 mg/l and shall be maintained as close to this concentration as

possible. A grab sample must be taken once per month and the

concentration recorded (approved method, Hach CN-66-DPD).

(Exception) Any facility which properly operates and maintains a

marine sanitation device (MSD) that complies with pollution control

standards and regulations under section 312 of the Act shall be deemed

in compliance with permit limitations for sanitary waste. The MSD shall

be tested yearly for proper operation and the test results maintained

at the facility.

8. Sanitary Waste (Facilities Continuously Manned by 9 or Fewer Persons

or Intermittently by Any Number)

(a) Prohibitions

Solids. No floating solids may be discharged to the receiving

waters. An observation must be made once per day for floating solids.

Observation must be made during daylight in the vicinity of sanitary

waste outfalls following either the morning or midday meal and at a

time during maximum estimated discharge. The number of days solids are

observed must be recorded.

(Exception) Any facility which properly operates and maintains a

marine sanitation device (MSD) that complies with pollution control

standards and regulations under section 312 of the Act shall be deemed

to be in compliance with permit limitations for sanitary waste. The MSD

shall be tested yearly for proper operation and the test results

maintained at the facility.

9. Domestic Waste

(a) Prohibitions

Solids. No floating solids or foam shall be discharged.

(b) Monitoring Requirements

An observation shall be made once per day during daylight in the

vicinity of domestic waste outfalls following the morning or midday

meal and at a time during maximum estimated discharge. The number of

days solids are observed must be recorded.

10. Miscellaneous Discharges

Desalination Unit Discharge

Diatomaceous Earth Filter Media

Blowout Preventer Fluid

Uncontaminated Ballast Water

Uncontaminated Bilge Water

Mud, Cuttings, and Cement at the Seafloor

Uncontaminated Freshwater

Uncontaminated Seawater

[[Page 41617]]

Boiler Blowdown

Source Water and Sand

Excess Cement Slurry

(a) Limitations

Free Oil. No free oil shall be discharged. Discharge is limited to

those times that a visual sheen observation is possible unless the

operator uses the static sheen method. Monitoring shall be performed

using the visual sheen method on the surface of the receiving water

once per week when discharging, or by use of the static sheen method at

the operator's option. The number of days a sheen is observed must be

recorded.

(Exceptions) Uncontaminated seawater, uncontaminated freshwater,

source water and source sand, uncontaminated bilge water, and

uncontaminated ballast water may be discharged from platforms that are

on automatic purge systems without monitoring for free oil when the

facilities are not manned. Additionally, discharges at the seafloor of:

muds and cuttings prior to installation of the marine riser, cement,

and blowout preventer fluid may be discharged without monitoring with

the static sheen test when conditions make observation of a visual

sheen on the surface of the receiving water impossible.

Section C. Other Discharge Limitations

1. Floating Solids or Visible Foam

There shall be no discharge of floating solids or visible foam from

any source in other than trace amounts.

(Exception) For new sources, this limitation only applies to

miscellaneous discharges and domestic waste discharges.

2. Halogenated Phenol Compounds

There shall be no discharge of halogenated phenol compounds as a

part of any waste stream authorized in this permit.

3. Dispersants, Surfactants, and Detergents

The facility operator shall minimize the discharge of dispersants,

surfactants and detergents except as necessary to comply with the

safety requirements of the Occupational Safety and Health

Administration and the Minerals Management Service. This restriction

applies to tank cleaning and other operations which do not directly

involve the safety of workers. The restriction is imposed because

detergents disperse and emulsify oil, thereby increasing toxicity and

making the detection of a discharge of oil more difficult.

4. Garbage

The discharge of garbage (See Part II.G.32) is prohibited.

(Exception) Comminuted food waste (able to pass through a screen

with a mesh no larger than 25 mm, approx. 1 inch) may be discharged

when 12 nautical miles or more from land.

5. Area of Biological Concern

There shall be no discharge in Areas of Biological Concern,

including marine sanctuaries. The Flower Garden Banks has been

determined to be a Marine Sanctuary and is within the geographical area

covered under this permit.

Section D. Other Conditions

1. Samples of Wastes

If requested, the permittee shall provide EPA with a sample of any

waste in a manner specified by the Agency.

2. Drilling Fluids Toxicity Test

The approved test method for permit compliance is identified as:

Drilling Fluids Toxicity Test 58 FR 12453, Appendix 2.

3. Produced Water Toxicity Testing Requirements (7-day Chronic NOEC

Marine Limits)

The approved test methods for permit compliance are identified in

40 CFR Part 136 and published at 60 FR 53528.

(a) The permittee shall utilize the Mysidopsis bahia (Mysid shrimp)

chronic static renewal 7-day survival and growth test using Method

1007.0.

(b) The permittee shall utilize the Menidia beryllina (Inland

Silverside minnow) chronic static renewal 7-day larval survival and

growth test (Method 1006.0).

(c) When the testing frequency stated above is less than monthly

and the effluent fails the survival endpoint at the low-flow effluent

concentration (critical dilution), the permittee shall be considered in

violation of this permit limit and the frequency for the affected

species will increase to monthly until such time compliance with the

Lethal No Observed Effect Concentration (NOEC) effluent limitation is

demonstrated for a period of three consecutive months, at which time

the permittee may return to the testing frequency stated in Part

I.B.4.b of this permit. During the period the permittee is out of

compliance, test results shall be reported on the DMR for that

reporting period.

(d) This permit may be reopened to require chemical specific

effluent limits, additional testing, and/or other appropriate actions

to address toxicity.

(e) The permittee shall prepare a full report of the results of all

tests conducted pursuant to this section in accordance with the Report

Preparation Section of ``Short-Term Methods for Estimating the Chronic

Toxicity of Effluents and Receiving Waters to Marine and Estuarine

Organisms'', EPA/600/4-91/003, or the most current publication, for

every valid or invalid toxicity test initiated whether carried to

completion or not. The permittee shall retain each full report pursuant

to the provisions of Part II.C.3 of this permit. The permittee shall

submit full reports only upon the specific request of the Agency.

(f) In accordance with Part II.D.4 of this permit, the permittee

shall report on the DMR for the reporting period the lowest Whole

Effluent Lethality values determined for either species for the 30-Day

Average Minimum and 7-Day Minimum under Parameter No. 22414, and the

permittee shall report the results of the valid toxicity test as

follows:

1. Menidia Beryllina (Inland Silverside Minnow).

(A) If the Inland Silverside minnow No Observed Effect

Concentration (NOEC) for survival is less than the critical effluent

dilution, enter a ``1''; otherwise, enter a ``0''. Parameter No. TLP6B

on the Discharge Monitoring Report.

(B) Report the Inland Silverside minnow NOEC value for survival,

Parameter No. TOP6B on the Discharge Monitoring Report.

(C) Report the Inland Silverside minnow NOEC value for growth,

Parameter No. TPP6B on the Discharge Monitoring Report.

(D) Report the % coefficient of variation (larger of critical

dilution and control), Parameter No. TQP6B on the Discharge Monitoring

Report.

2. Mysidopsis Bahia (Mysid Shrimp).

(A) If the Mysid shrimp NOEC for survival is less than the critical

effluent dilution, enter a ``1''; otherwise, enter a ``0''. Parameter

No. TLP3E on the Discharge Monitoring Report.

(B) Report the Mysid shrimp NOEC value for survival, Parameter No.

TOP3E on the Discharge Monitoring Report.

(C) Report the Mysid shrimp NOEC value for growth, Parameter No.

TPP3E on the Discharge Monitoring Report.

(D) Report the % coefficient of variation (larger of critical

dilution and control), Parameter No. TQP3E on the Discharge Monitoring

Report.

4. Bioaccumulation Testing

The approved test methods for bioaccumulation testing of edible

fish tissue are:

[[Page 41618]]

Organics: Gas Chromatograph/Mass Spectrometric, Method Number 516,

Standard Methods for Examination of Water and Waste Water, 16th

Edition.

Metals: Electrothermal Atomic Absorption Spectrometry, Method

Number 304, Standard Methods for Examination of Water and Waste Water,

16th Edition.

5. Visual Sheen Test

The visual sheen test is used to detect free oil by observing the

surface of the receiving water for the presence of a sheen while

discharging. The operator must conduct a visual sheen test only at

times when a sheen could be observed. This restriction eliminates

observations when atmospheric or surface conditions prohibit the

observer from detecting a sheen (e.g., overcast skies, rough seas,

etc.).

The observer must be positioned on the rig or platform, relative to

both the discharge point and current flow at the time of discharge,

such that the observer can detect a sheen should it surface down

current from the discharge. For discharges that have been occurring for

a least 15 minutes previously, observations may be made any time

thereafter. For discharges of less than 15 minutes duration,

observations must be made during both discharge and at 5 minutes after

discharge has ceased.

6. Static Sheen Test

a. Scope and Application

The static sheen test is to be used as a compliance test for the

``no free oil'' requirement for discharges of drilling fluids; drill

cuttings; and well treatment, completion, and workover fluids. For all

other discharges with a ``no free oil discharge'' requirement except

deck drainage, the static sheen test is to be used as a compliance test

when it is not possible for the operator to accomplish a visual sheen

observation on the surface of the receiving water. This would preclude

an operator from attempting a visual sheen observation when atmospheric

or surface conditions prohibit the observer from detecting a sheen

(e.g., during rough seas, etc.). Free oil refers to any oil contained

in a waste stream that when discharged will cause a film or sheen upon

or a discoloration of the surface of the receiving water.

b. Summary of Method

15 ml samples of drilling fluids; well treatment, completion and

workover fluids, formation test fluids, or treated wastewater from

drilling fluid dewatering activities, or 15 gm (wet weight basis)

samples of drill cuttings or produced sand are introduced into ambient

seawater in a container having an air to liquid interface area of 1000

cm2 (155.5 in2). Samples are dispersed within the container

and observations made no more than one hour later to ascertain if these

materials cause a sheen, iridescence, gloss, or increased reflectance

on the surface of the test seawater. The occurrence of any of these

visual observations will constitute a demonstration that the tested

material contains ``free oil'', and therefore, results in a prohibition

on its discharge into receiving waters.

c. Interferences

Residual ``free oil'' adhering to sampling containers, the magnetic

stirring bar used to mix drilling Fluids, and the stainless steel

spatula used to mix drill cuttings will be the principal sources of

contamination problems. These problems should only occur if improperly

washed and cleaned equipment are used for the test. The use of

disposable equipment minimizes the potential for similar contamination

from pipets and the test container.

d. Apparatus, Materials, and Reagents

d.1 Apparatus

d.1.1 Sampling Containers--1 L polyethylene beakers and 1 L glass

beakers.

d.1.2 Graduated cylinder--100 ml graduated cylinder required only

for operations where predilution of mud discharges is required.

d.1.3 Plastic disposable weighing boats.

d.1.4 Triple-beam scale

d.1.5 Disposable pipets--25 ml disposable pipets.

d.1.6 Magnetic stirrer and stirring bar.

d.1.7 Stainless steel spatula

d.1.8 Test container--open plastic container whose internal cross-

section parallel to its opening has an area of 100050

cm2 (155.57.75 in2), and a depth of at least 13

cm (5 inches) and no more than 30 cm (11.8 inches).

d.2 Materials and Reagents

d.2.1 Plastic liners for the test container--Oil free, heavy duty

plastic trash can liners that do not inhibit the spreading of an oil

film. Liners must be of sufficient size to completely cover the

interior surface of the test container. Permittees must determine an

appropriate local source of liners that do not inhibit the spreading of

0.05 ml diesel fuel added to the lined test container under the test

conditions and protocol described below.

d.2.2 Ambient receiving water.

e. Calibration

None currently specified.

f. Quality Control Procedures

None currently specified.

g. Sample Collection and Handling

g.1 Sampling containers must be thoroughly washed with detergent,

rinsed a minimum of three times with fresh water, and allowed to air

dry before samples are collected.

g.2 Samples of drilling fluid to be tested shall be taken at the

shale shaker after cuttings have been removed. The sample volume should

range between 200 ml and 500 ml.

g.3 Samples of drill cuttings will be taken from the shale shaker

screens with a clean spatula or similar instrument and placed in a

glass beaker. Cuttings samples shall be collected prior to the addition

of any washdown water and should range between 200 g and 500 g.

g.4 Samples of well treatment, completion and workover fluids,

formation test fluids, and treated wastewater from drilling fluid

dewatering activities must be obtained from the holding facility prior

to discharge; the sample volume should range between 200 ml and 500 ml.

g.5 Samples must be tested no later than 1 hour after collection.

g.6 Drilling fluid samples must be mixed in their sampling

containers for 5 minutes prior to the test using a magnetic bar

stirrer. If predilution is imposed as a permit condition, the sample

must be mixed at the same ratio with the same prediluting water as the

discharged muds and stirred for 5 minutes.

g.7 Drill cuttings must be stirred and well mixed by hand in their

sampling containers prior to testing, using a stainless steel spatula.

h. Procedure

h.1 Ambient receiving water must be used as the ``receiving

water'' in the test. The temperature of the test water shall be as

close as practicable to the ambient conditions in the receiving water,

not the room temperature of the observation facility. The test

container must have an air to liquid interface area of

100050 cm2. The surface of the water should be no more

than 1.27 cm (\1/2\ inch) below the top of the test container.

h.2 Plastic liners shall be used, one per test container, and

discarded afterwards. Some liners may inhibit spreading of added oil;

operators shall determine an appropriate local source of liners that do

not inhibit the spreading of the oil film.

h.3 A 15 ml sample of drilling fluid, well treatment, completion

and workover fluids, formation test fluids, or treated wastewater from

drilling fluid

[[Page 41619]]

dewatering activities must be introduced by pipet into the test

container 1 cm below the water surface. Pipets must be filled and

discharged with test material prior to the transfer of test material

and its introduction into test containers. The test water-test material

mixture must be stirred using the pipet to distribute the test material

homogeneously throughout the test water. The pipet must be used only

once for a test and then discarded.

h.4 Drill cuttings should be weighed on plastic weighing boats; 15

gram samples must be transferred by scraping test material into the

test water with a stainless steel spatula. Drill cuttings shall not be

prediluted prior to testing. Also, drilling fluids and cuttings must be

tested separately. The weighing boat must be immersed in the test water

and scraped with the spatula to transfer any residual material to the

test container. The drill cuttings must be stirred with the spatula to

an even distribution of solids on the bottom of the test container.

h.5 Observations must be made no later than 1 hour after the test

material is transferred to the test container. Viewing points above the

test container should be made from at least three sides of the test

container, at viewing angles of approximately 60 deg. and 30 deg. from

the horizontal. Illumination of the test container must be

representative of adequate lighting for a working environment to

conduct routine laboratory procedures. It is recommended that the water

surface of the test container be observed under a fluorescent light

source such as a dissecting microscope light. The light source shall be

positioned above and directed over the entire surface of the pan.

h.6 Detection of a ``silvery'' or ``metallic'' sheen, gloss, or

increased reflectivity; visual color; or iridescence; or an oil slick,

on the water surface of the test container surface shall constitute a

demonstration of ``free oil''. These visual observations include

patches, streaks, or sheets of such altered surface characteristics

shall constitute a demonstration of free oil. If the free oil content

of the sample approaches or exceeds 10 percent, the water surface of

the test container may lack color, a sheen or iridescence, due to the

increased thickness of the film; thus, the observation for an oil slick

is required. The surface of the test container shall not be disturbed

in any manner that reduced the size of any sheen or slick that may be

present.

If an oil sheen or slick occurs on less than one-half of the

surface area after drilling muds or cuttings are introduced to the test

container, observations will continue for up to one hour. If the sheen

or slick increases in size and covers greater than one-half of the

surface area of the test container during the observation period, the

discharge of the material shall cease. If the sheen or slick does not

increase in size to cover greater than one-half of the test container

surface area after one hour of observation, discharge may continue and

additional sampling is not required.

If a sheen or slick occurs on greater than one-half of the surface

area of the test container after the test material is introduced,

discharge of the tested material shall cease. The permittee may retest

the material causing the sheen or slick. If subsequent tests do not

result in a sheen or slick covering greater than one-half of the

surface area of the test container, discharge may continue.

7. Radionuclide test

The approved test methods for monitoring produced water for

radionuclides are:

Radium 226: Method Number 7500-Ra C, Standard Methods for the

Examination of Water and Wastewater, Seventeenth Edition, APHA, AWWA,

and WPCF.

Radium 228: Method Number 7500-Ra D, Standard Methods for the

Examination of Water and Wastewater, Seventeenth Edition, APHA, AWWA,

and WPCF.

PART II. STANDARD CONDITIONS FOR NPDES PERMITS

Section A. General Conditions

1. Introduction

In accordance with the provisions of 40 CFR Part 122.41, et seq.,

this permit incorporates by reference ALL conditions and requirements

applicable to NPDES permits set forth in the Clean Water Act, as

amended (hereinafter known as the ``Act'') as well as ALL applicable

regulations.

2. Duty to Comply

The permittee must comply with all conditions of this permit. Any

permit noncompliance constitutes a violation of the Act and is grounds

for enforcement action or for requiring a permittee to apply and obtain

an individual NPDES permit.

3. Toxic Pollutants

a. Notwithstanding Part II.A.5, if any toxic effluent standard or

prohibition (including any schedule of compliance specified in such

effluent standard or prohibition) is promulgated under section 307(a)

of the Act for a toxic pollutant which is present in the discharge, and

that standard or prohibition is more stringent than any limitation on

the pollutant in this permit, this permit shall be modified or revoked

and reissued to conform to the toxic effluent standard or prohibition.

b. The permittee shall comply with effluent standards or

prohibitions established under section 307(a) of the Act for toxic

pollutants within the time provided in the regulations that established

those standards or prohibitions, even if the permit has not yet been

modified to incorporate the requirement.

4. Duty to Reapply

If the permittee wishes to continue an activity regulated by this

permit after the expiration date of this permit, the permittee must

apply for and obtain a new permit. The application shall be submitted

at least 180 days before the expiration date of this permit. The

Director may grant permission to submit an application less than 180

days in advance but no later than the permit expiration date.

Continuation of expiring permits shall be governed by regulations

promulgated at 40 CFR Part 122.6 and any subsequent amendments.

5. Permit Flexibility

This permit may be modified, revoked and reissued, or terminated

for cause in accordance with 40 CFR 122.62-64. The filing of a request

for a permit modification, revocation and reissuance, or termination,

or a notification of planned changes or anticipated noncompliance, does

not stay any permit condition.

6. Property Rights

This permit does not convey any property rights of any sort, or any

exclusive privilege.

7. Duty to Provide Information

The permittee shall furnish to the Director, within a reasonable

time, any information which the Director may request to determine

whether cause exists for modifying, revoking and reissuing, or

terminating this permit, or to determine compliance with this permit.

The permittee shall also furnish to the Director, upon request, copies

of records required to be kept by this permit.

8. Criminal and Civil Liability

Except as provided in permit conditions on ``Bypassing'' and

``Upsets'', nothing in this permit shall be construed to relieve the

permittee from civil or criminal penalties for noncompliance. Any false

or materially misleading representation or

[[Page 41620]]

concealment of information required to be reported by the provisions of

the permit, the Act, or applicable regulations, which avoids or

effectively defeats the regulatory purpose of the permit may subject

the permittee to criminal enforcement pursuant to 18 U.S.C. section

1001.

9. Oil and Hazardous Substance Liability

Nothing in this permit shall be construed to preclude the

institution of any legal action or relieve the permittee from any

responsibilities, liabilities, or penalties to which the permittee is

or may be subject under section 311 of the Act.

10. State Laws

Nothing in this permit shall be construed to preclude the

institution of any legal action or relieve the permittee from any

responsibilities, liabilities, or penalties established pursuant to any

applicable State Law or regulation under authority preserved by section

510 of the Act.

11. Severability

The provisions of this permit are severable, and if any provision

of this permit or the application of any provision of this permit to

any circumstance is held invalid, the application of such provision to

other circumstances, and the remainder of this permit, shall not be

affected thereby.

Section B. Proper Operation and Maintenance

1. Need to Halt or Reduce not a Defense

It shall not be a defense for a permittee in an enforcement action

that it would have been necessary to halt or reduce the permitted

activity in order to maintain compliance with the conditions of this

permit. The permittee is responsible for maintaining adequate

safeguards to prevent the discharge of untreated or inadequately

treated wastes during electrical power failure either by means of

alternate power sources, standby generators or retention of

inadequately treated effluent.

2. Duty to Mitigate

The permittee shall take all reasonable steps to minimize or

prevent any discharge in violation of this permit which has a

reasonable likelihood of adversely affecting human health or the

environment.

3. Proper Operation and Maintenance

a. The permittee shall at all times properly operate and maintain

all facilities and systems of treatment and control (and related

appurtenances) which are installed or used by permittee as efficiently

as possible and in a manner which will minimize upsets and discharges

of excessive pollutants and will achieve compliance with the conditions

of this permit. Proper operation and maintenance also includes adequate

laboratory controls and appropriate quality assurance procedures. This

provision requires the operation of backup or auxiliary facilities or

similar systems which are installed by a permittee only when the

operation is necessary to achieve compliance with the conditions of

this permit.

b. The permittee shall provide an adequate operating staff which is

duly qualified to carry out operation, maintenance and testing

functions required to insure compliance with the conditions of this

permit.

4. Bypass of Treatment Facilities

a. Bypass not exceeding limitations. The permittee may allow any

bypass to occur which does not cause effluent limitations to be

exceeded, but only if it also is for essential maintenance to assure

efficient operation. These bypasses are not subject to the provisions

of Parts II.B.4.b and 4.c.

b. Notice

(1) Anticipated bypass. If the permittee knows in advance of the

need for a bypass, it shall submit prior notice, if possible at least

ten days before the date of the bypass.

(2) Unanticipated bypass. The permittee shall, within 24 hours,

submit notice of an unanticipated bypass as required in Part II.D.7.

c. Prohibition of Bypass

(1) Bypass is prohibited, and the Director may take enforcement

action against a permittee for bypass, unless:

(a) Bypass was unavoidable to prevent loss of life, personal

injury, or severe property damage;

(b) There were no feasible alternatives to the bypass, such as the

use of auxiliary treatment facilities, retention of untreated wastes,

or maintenance during normal periods of equipment downtime. This

condition is not satisfied if adequate back-up equipment should have

been installed in the exercise of reasonable engineering judgement to

prevent a bypass which occurred during normal periods of equipment

downtime or preventive maintenance; and,

(c) The permittee submitted notices as required by Part II.B.4.b.

(2) The Director may allow an anticipated bypass after considering

its adverse effects, if the Director determines that it will meet the

three conditions listed at Part II.B.4.c(1).

5. Upset Conditions

a. Effect of an upset. An upset constitutes an affirmative defense

to an action brought for noncompliance with such technology-based

permit effluent limitations if the requirements of Part II.B.5.b. are

met. No determination made during administrative review of claims that

noncompliance was caused by upset, and before an action for

noncompliance, is final administrative action subject to judicial

review.

b. Conditions necessary for a demonstration of upset. A permittee

who wishes to establish the affirmative defense of upset shall

demonstrate, through properly signed, contemporaneous operating logs,

or other relevant evidence that:

(1) An upset occurred and that the permittee can identify the

cause(s) of the upset;

(2) The permitted facility was at the time being properly operated;

(3) The permittee submitted notice of the upset as required by Part

II.D.7; and,

(4) The permittee complied with any remedial measures required by

Part II.B.2.

c. Burden of proof. In any enforcement proceeding, the permittee

seeking to establish the occurrence of an upset has the burden of

proof.

6. Removed Substances

Solids, sewage sludges, filter backwash, or other pollutants

removed in the course of treatment or wastewater control shall be

disposed of in a manner such as to prevent any pollutant from such

materials from entering navigable waters. Any substance specifically

listed within this permit may be discharged in accordance with

specified conditions, terms, or limitations.

Section C. Monitoring and Records

1. Inspection and Entry

The permittee shall allow the Director, or an authorized

representative, upon the presentation of credentials and other

documents as may be required by the law to:

a. Enter upon the permittee's premises where a regulated facility

or activity is located or conducted, or where records must be kept

under the conditions of this permit;

b. Have access to and copy, at reasonable times, any records that

must be kept under the conditions of this permit;

c. Inspect at reasonable times any facilities, equipment (including

[[Page 41621]]

monitoring and control equipment), practices or operations regulated or

required under this permit; and

d. Sample or monitor at reasonable times, for the purpose of

assuring permit compliance or as otherwise authorized by the Act, any

substances or parameters at any location.

2. Representative Sampling

Samples and measurements taken for the purpose of monitoring shall

be representative of the monitored activity.

3. Retention of Records

The permittee shall retain records of all monitoring information,

including all calibration and maintenance records and all original

strip chart recordings for continuous monitoring instrumentation,

copies of all reports required by this permit, and records of all data

used to complete the application for this permit, for a period of at

least 3 years from the date of the sample, measurement, report, or

application. This period may be extended by request of the Director at

any time.

The operator shall maintain records at development and production

facilities for 3 years, wherever practicable and at a specific shore-

based site whenever not practicable. The operator is responsible for

maintaining records at exploratory facilities while they are

discharging under the operators control and at a specific shore-based

site for the remainder of the 3-year retention period.

4. Record Contents

Records of monitoring information shall include:

a. The date, exact place, and time of sampling or measurements;

b. The individual(s) who performed the sampling or measurements;

c. The date(s) and time(s) analyses were performed;

d. The individual(s) who performed the analyses;

e. The analytical techniques or methods used; and

f. The results of such analyses.

5. Monitoring Procedures

a. Monitoring must be conducted according to test procedures

approved under 40 CFR Part 136, unless other test procedures have been

specified in this permit or approved by the Regional Administrator.

b. The permittee shall calibrate and perform maintenance procedures

on all monitoring and analytical instruments at intervals frequent

enough to insure accuracy of measurements and shall maintain

appropriate records of such activities.

c. An adequate analytical quality control program, including the

analyses of sufficient standards, spikes, and duplicate samples to

insure the accuracy of all required analytical results shall be

maintained by the permittee or designated commercial laboratory.

6. Flow Measurements

Appropriate flow measurement devices and methods consistent with

accepted scientific practices shall be selected and used to ensure the

accuracy and reliability of measurements of the volume of monitored

discharges. The devices shall be installed, calibrated, and maintained

to insure that the accuracy of the measurements is consistent with the

accepted capability of that type of device. Devices selected shall be

capable of measuring flows with a maximum deviation of less than 10%

from true discharge rates throughout the range of expected discharge

volumes.

Section D. Reporting Requirements

1. Planned Changes

The permittee shall give notice to the Director as soon as possible

of any planned physical alterations or additions to the permitted

facility. Notice is required only when:

(1) The alteration or addition to a permitted facility may meet one

of the criteria for determining whether a facility is a new source in

40 CFR Part 122.29(b); or,

(2) The alteration or addition could significantly change the

nature or increase the quantity of pollutants discharged. This

notification applies to pollutants which are subject neither to

effluent limitations in the permit, nor to notification requirements

listed at Part II.D.10.a.

2. Anticipated Noncompliance

The permittee shall give advance notice to the Director of any

planned changes in the permitted facility or activity which may result

in noncompliance with permit requirements.

3. Transfers

This permit is not transferable to any person except after notice

to the Regional Administrator. The Regional Administrator may require

modification or revocation and reissuance of the permit to change the

name of the permittee and to incorporate such requirements as may be

necessary under the Act.

4. Discharge Monitoring Reports and Other Reports

The operator of each lease block shall be responsible for

submitting monitoring results for all facilities within each lease

block. The monitoring results for the facilities (platform, drilling

ship, or semisubmersible) within the particular lease block shall be

summarized on the annual Discharge Monitoring Report for that lease

block.

Monitoring results obtained during the previous 12 months shall be

summarized and reported on a Discharge Monitoring Report (DMR) form

(EPA No. 3320-1). In addition, the highest monthly average for all

activity within each lease block shall be reported. The highest daily

maximum sample taken during the reporting period shall be reported as

the daily maximum concentration.

If any category of waste (discharge) is not applicable for all

facilities within the lease block, due to the type of operations (e.g.,

drilling, production) no reporting is required; however, ``no

discharge'' must be recorded for those categories on the DMR. If all

facilities within a lease block have had no activity during the

reporting period then ``no activity'' must be written on the DMR.

Operators may list a summary of all lease blocks where there is no

activity on one DMR. All pages of the DMR must be signed and certified

as required by Part II.D.11 and returned when due.

5. Additional Monitoring by the Permittee

If the permittee monitors any pollutant more frequently than

required by this permit, using test procedures approved under 40 CFR

Part 136 or as specified in this permit, the results of this monitoring

shall be included in the calculation and reporting of the data

submitted in the Discharge Monitoring Report (DMR). Such increased

monitoring frequency shall also be indicated on the DMR.

6. Averaging of Measurements

Calculations for all limitations which require averaging of

measurements shall utilize an arithmetic mean unless otherwise

specified.

7. Twenty-Four Hour Reporting

a. The permittee shall report any noncompliance which may endanger

health or the environment. Any information shall be provided orally

within 24 hours from the time the permittee becomes aware of the

circumstances. A written submission shall be provided within 5 days of

the time the permittee becomes aware of the

[[Page 41622]]

circumstances. The report shall contain the following information:

(1) A description of the noncompliance and its cause;

(2) The period of noncompliance including exact dates and times,

and if the noncompliance has not been corrected, the anticipated time

it is expected to continue; and,

(3) Steps being taken to reduce, eliminate, and prevent recurrence

of the noncomplying discharge.

b. The following shall be included as information which must be

reported within 24 hours:

(1) Any unanticipated bypass which exceeds any effluent limitation

in the permit;

(2) Any upset which exceeds any effluent limitation in the permit;

and,

(3) Violation of a maximum daily discharge limitation for any of

the pollutants listed by the Director in Part II of the permit to be

reported within 24 hours.

c. The Director may waive the written report on a case-by-case

basis if the oral report has been received within 24 hours.

8. Other Noncompliance

The permittee shall report all instances of noncompliance not

reported under Parts II.D.4 and D.7 at the time monitoring reports are

submitted. The reports shall contain the information listed at Part

II.D.7.

9. Other Information

Where the permittee becomes aware that he failed to submit any

relevant facts in a permit application, or submitted incorrect

information in a permit application or in any report to the Director,

he shall promptly submit such facts or information.

10. Changes in Discharges of Toxic Substances

The permittee shall notify the Director as soon as it knows or has

reason to believe:

a. That any activity has occurred or will occur which would result

in the discharge, on a routine or frequent basis, of any toxic

pollutant listed at 40 CFR Part 122, Appendix D, Tables II and III

(excluding Total Phenols) which is not limited in the permit, if that

discharge will exceed the highest of the following ``notification

levels'':

(1) One hundred micrograms per liter (100 g/l);

(2) Two hundred microgram per liter (200 g/l) for acrolein

and acrylonitrile; five hundred micrograms per liter (500 g/l)

for 2,4-dinitro-phenol and for 2-methyl-4,6-dinitrophenol; and one

milligram per liter (1 mg/l) for antimony;

(3) The level established by the Director.

b. That any activity has occurred or will occur which would result

in any discharge, on a non-routine or infrequent basis, of a toxic

pollutant which is not limited in the permit, if that discharge will

exceed the highest of the following ``notification levels'':

(1) Five hundred micrograms per liter (500 g/l);

(2) One milligram per liter (1 mg/l) for antimony;

(3) The level established by the Director.

11. Signatory Requirements

All applications, reports, or information submitted to the Director

shall be signed and certified.

a. All permit applications shall be signed as follows:

(1) For a corporation--by a responsible corporate officer. For the

purpose of this section, a responsible corporate officer means:

(a) A president, secretary, treasurer, or vice-president of the

corporation in charge of a principal business function, or any other

person who performs similar policy or decision making functions for the

corporation; or,

(b) The manager of one or more manufacturing, production, or

operating facilities employing more than 250 persons or having gross

annual sales or expenditures exceeding $25 million (in second-quarter

1980 dollars), if authority to sign documents has been assigned or

delegated to the manager in accordance with corporate procedures.

(2) For a partnership or sole proprietorship--by a general partner

or the proprietor, respectively.

(3) For a municipality, State, Federal, or other public agency--by

either a principal executive officer or ranking elected official. For

purposes of this election, a principal executive officer of a Federal

agency includes:

(a) The chief executive officer of the agency, or

(b) A senior executive officer having responsibility for the

overall operations of a principal geographic unit of the agency.

b. All reports required by the permit and other information

requested by the Director shall be signed by a person described above

or by a duly authorized representative of that person. A person is a

duly authorized representative only if:

(1) The authorization is made in writing by a person described

above;

(2) The authorization specifies either an individual or a position

having responsibility for the overall operation of the regulated

facility or activity, such as the position of plant manager, operator

of a well or a well field, superintendent, or position of equivalent

responsibility, or an individual or position having overall

responsibility for environmental matters for the company. A duly

authorized representative may thus be either a named individual or an

individual occupying a named position; and,

(3) The written authorization is submitted to the Director.

c. Certification. Any person signing a document under this section

shall make the following certification:

``I certify under penalty of law that this document and all

attachments were prepared under my direction or supervision in

accordance with a system designed to assure that qualified personnel

properly gather and evaluate the information submitted. Based on my

inquiry of the person or persons who manage the system, or those

persons directly responsible for gathering the information, the

information submitted is, to the best of my knowledge and belief,

true, accurate, and complete. I am aware that there are significant

penalties for submitting false information, including the

possibility of fine and imprisonment for knowing violations.''

12. Availability of Reports

Except for applications, effluent data, permits, and other data

specified in 40 CFR 122.7, any information submitted pursuant to this

permit may be claimed as confidential by the submitter. If no claim is

made at the time of submission, information may be made available to

the public without further notice.

Section E. Penalties for Violations of Permit Conditions

1. Criminal

a. Negligent Violations

The Act provides that any person who negligently violates permit

conditions implementing section 301, 302, 306, 307, 308, 318, or 405 of

the Act is subject to a fine of not less $2,500 nor more then $25,000

per day of violation, or by imprisonment for not more than 1 year, or

both.

b. Knowing Violations

The Act provides that any person who knowingly violates permit

conditions implementing section 301, 302, 306, 307, 308, 318 or 405 of

the Act is subject to a fine of not less than $5,000 nor more than

$50,000 per day of violation, or by imprisonment for not more than 3

years, or both.

c. Knowing Endangerment

The Act provides that any person who knowingly violates permit

conditions implementing section 301, 302, 303, 306, 307, 308, 318, or

405 of the Act and

[[Page 41623]]

who knows at that time that he is placing another person in imminent

danger of death or serious bodily injury is subject to a fine of not

more than $250,000, or by imprisonment for not more than 15 years, or

both.

d. False Statements

The Act provides that any person who knowingly makes any false

material statement, representation, or certification in any

application, record report, plan, or other document filed or required

to be maintained under the Act or who knowingly falsifies, tampers

with, or renders inaccurate, any monitoring device or method required

to be maintained under the Act, shall upon conviction, be punished by a

fine of not more than $10,000, or by imprisonment for not more than 2

years, or by both. If a conviction of a person is for a violation

committed after a first conviction of such person under this paragraph,

punishment shall be by a fine of not more than $20,000 per day of

violation, or by imprisonment of not more than 4 years, or by both.

(See section 309.c.4 of the Clean Water Act)

2. Civil Penalties

The Act provides that any person who violates a permit condition

implementing section 301, 302, 306, 307, 308, 318, or 405 of the Act is

subject to a civil penalty not to exceed $25,000 per day for each

violation.

3. Administrative Penalties

The Act provides that any person who violates a permit conditions

implementing section 301, 302, 306, 307, 308, 318, or 405 of the Act is

subject to an administrative penalty, as follows:

a. Class I Penalty

Not to exceed $10,000 per violation nor shall the maximum amount

exceed $25,000.

b. Class II Penalty

Not to exceed $10,000 per day for each day during which the

violation continues nor shall the maximum amount exceed $125,000.

Section F. Additional General Permit Conditions

1. When the Regional Administrator May Require Application for an

Individual NPDES Permit

The Regional Administrator may require any person authorized by

this permit to apply for and obtain an individual NPDES permit when:

(a) The discharge(s) is a significant contributor of pollution;

(b) The discharger is not in compliance with the conditions of this

permit;

(c) A change has occurred in the availability of the demonstrated

technology or practices for the control or abatement of pollutants

applicable to the point sources;

(d) Effluent limitations guidelines are promulgated for point

sources covered by this permit;

(e) A Water Quality Management Plan containing requirements

applicable to such point source is approved;

(f) The point source(s) covered by this permit no longer:

(1) Involve the same or substantially similar types of operations;

(2) Discharge the same types of wastes;

(3) Require the same effluent limitations or operating conditions;

(4) Require the same or similar monitoring; and

(5) In the opinion of the Regional Administrator, are more

appropriately controlled under an individual permit than under a

general permit.

(g) The bioaccumulation monitoring results show concentrations of

the listed pollutants in excess of levels safe for human consumption.

The Regional Administrator may require any operator authorized by

this permit to apply for an individual NPDES permit only if the

operator has been notified in writing that a permit application is

required.

2. When an Individual NPDES Permit may be Requested

(a) Any operator authorized by this permit may request to be

excluded from the coverage of this general permit by applying for an

individual permit.

(b) When an individual NPDES permit is issued to an operator

otherwise subject to this general permit, the applicability of this

permit to the owner or operator is automatically terminated on the

effective date of this individual permit.

(c) A source excluded from coverage under this general permit

solely because it already has an individual permit may request that its

individual permit be revoked, and that it be covered by this general

permit. Upon revocation of the individual permit, this general permit

shall apply to the source.

3. Permit Reopener Clause

If applicable new or revised effluent limitations guidelines or New

Source Performance Standards covering the Offshore Subcategory of the

Oil and Gas Extraction Point Source Category (40 CFR 435) are

promulgated in accordance with sections 301(b), 304(b)(2), and

307(a)(2), and the new or revised effluent limitations guidelines or

New Source Performance Standards are more stringent than any effluent

limitations in this permit or control a pollutant not limited in this

permit, the permit may, at the Director's discretion, be modified to

conform to the new or revised effluent limitations guidelines.

Notwithstanding the above, if an offshore oil and gas extraction

point source discharge facility is subject to the ten year protection

period for new source performance standards under the Clean Water Act

section 306(d), this reopener clause may not be used to modify the

permit to conform to more stringent new source performance standards or

technology based standards developed under section 301(b)(2) during the

ten year period specified in 40 CFR Part 122.29(d).

The Director may modify this permit upon meeting the conditions set

forth in this reopener clause.

Section G. Definitions

All definitions contained in section 502 of the Act shall apply to

this permit and are incorporated herein by references. Unless otherwise

specified in this permit, additional definitions of words or phrases

used in this permit are as follows:

1. ``Act'' means the Clean Water Act (33 U.S.C. 1251 et. seq.),

as amended.

2. ``Administrator'' means the Administrator of the U.S.

Environmental Protection Agency.

3. ``Annual Average'' means the average of all discharges

sampled and/or measured during a calendar year in which daily

discharges are sampled and/or measured, divided by the number of

discharges sampled and/or measured during such year.

4. ``Applicable effluent standards and limitations'' means all

state and Federal effluent standards and limitations to which a

discharge is subject under the Act, including, but not limited to,

effluent limitations, standards or performance, toxic effluent

standards and prohibitions, and pretreatment standards.

5. ``Applicable water quality standards'' means all water

quality standards to which a discharge is subject under the Act.

6. ``Areas of Biological Concern'' means a portion of the OCS

identified by EPA, in consultation with the Department of Interior

as containing potentially productive or unique biological

communities or as being potentially sensitive to discharges

associated with oil and gas activities.

7. ``Blow-Out Preventer Control Fluid'' means fluid used to

actuate the hydraulic equipment on the blow-out preventer or subsea

production wellhead assembly.

8. ``Boiler Blowdown'' means discharges from boilers necessary

to minimize solids build-up in the boilers, including vents from

boilers and other heating systems.

9. ``Bulk Discharge'' any discharge of a discrete volume or mass

of effluent from a pit

[[Page 41624]]

tank or similar container that occurs on a one-time, infrequent or

irregular basis.

10. ``Bypass'' means the intentional diversion of waste streams

from any portion of a treatment facility.

11. ``Completion Fluids'' means salt solutions, weighted brines,

polymers and various additives used to prevent damage to the well

bore during operations which prepare the drilled well for

hydrocarbon production. These fluids move into the formation and

return to the surface as a slug with the produced water. Drilling

muds remaining in the wellbore during logging, casing, and cementing

operations or during temporary abandonment of the well are not

considered completion fluids and are regulated by drilling fluids

requirements.

12. ``Controlled Discharge Rates Areas'' means zones adjacent to

areas of biological concern.

13. ``Daily Discharge'' means the discharge of a pollutant

measured during a calendar day or any 24-hour period that reasonably

represents the calendar day for purposes of sampling. For pollutants

with limitations expressed in terms of mass, the daily discharge is

calculated as the total mass of the pollutant discharged over the

sampling day. For pollutants with limitations expressed in other

units of measurement, the daily discharge is calculated as the

average measurement of the pollutant over the sampling day. Daily

discharge determination of concentration made using a composite

sample shall be the concentration of the composite sample. When grab

samples are used, the daily discharge determination of concentration

shall be arithmetic average (weighted by flow value) of all samples

collected during that sampling day.

14. ``Daily Average'' (also known as monthly average) discharge

limitations means the highest allowable average of daily

discharge(s) over a calendar month, calculated as the sum of all

daily discharge(s) measured during a calendar month divided by the

number of daily discharge(s) measured during that month. When the

permit establishes daily average concentration effluent limitations

or conditions, the daily average concentration means the arithmetic

average (weighted by flow) of all daily discharge(s) of

concentration determined during the calendar month where C=daily

concentration, F=daily flow, and n=number of daily samples; daily

average discharge=

[GRAPHIC] [TIFF OMITTED] TN09AU96.002

15. ``Daily Maximum'' discharge limitations means the highest

allowable ``daily discharge'' during the calendar month.

16. ``Desalinization Unit Discharge'' means wastewater

associated with the process of creating freshwater from seawater.

17. ``Deck Drainage'' means any waste resulting from deck

washings, spillage, rainwater, and runoff from gutters and drains

including drip pans and work areas within facilities covered under

this permit.

18. ``Development Drilling'' means the drilling of wells

required to efficiently produce a hydrocarbon formation or

formations.

19. ``Development Facility'' means any fixed or mobile structure

that is engaged in the drilling of productive wells.

20. ``Diatomaceous Earth Filter Media'' means filter media used

to filter seawater or other authorized completion fluids and

subsequently washed from the filter.

21. ``Diesel Oil'' means the grade of distillate fuel oil, as

specified in the American Society for Testing and Materials Standard

Specification D975-81, that is typically used as the continuous

phase in conventional oil-based drilling fluids.

22. ``Director'' means the U.S. Environmental Protection Agency

Regional Administrator or an authorized representative.

23. ``Domestic Waste'' means material discharged from galleys,

sinks, showers, safety showers, eye wash stations, hand washing

stations, fish cleaning stations, and laundries.

24. ``Drill Cuttings'' means particles generated by drilling

into the subsurface geological formations including cured cement

carried to the surface with the drilling fluid.

25. ``Drilling Fluids'' means the circulating fluid (mud) used

in the rotary drilling of wells to clean and condition the hole and

to counterbalance formation pressure. A water-based drilling fluid

is the conventional drilling mud in which water is the continuous

phase and the suspending medium for solids, whether or not oil is

present. An oil based drilling fluids has diesel oil, mineral oil,

or some other oil as its continuous phase with water as the

dispersed phase.

26. ``End of well Sample'' means the sample taken after the

final log run is completed and prior to bulk discharge.

27. ``Environmental Protection Agency'' (EPA) means the U.S.

Environmental Protection Agency.

28. ``Excess Cement Slurry'' means the excess mixed cement,

including additives and wastes from equipment washdown, after a

cementing operation.

29. ``Exploratory Facility'' means any fixed or mobile structure

that is engaged in the drilling of wells to determine the nature of

potential hydrocarbon reservoirs.

30. ``Fecal Coliform Bacteria Sample'' consists of one effluent

grab portion collected during a 24-hour period at peak loads.

31. ``Grab sample'' means an individual sample collected in less

than 15 minutes.

32. ``Garbage'' means all kinds of food waste, wastes generated

in living areas on the facility, and operational waste, excluding

fresh fish and parts thereof, generated during the normal operation

of the facility and liable to be disposed of continuously or

periodically, except dishwater, graywater, and those substances that

are defined or listed in other Annexes to MARPOL 73/78

33. ``Graywater'' means drainage from dishwater, shower,

laundry, bath, and washbasin drains and does not include drainage

from toilets, urinals, hospitals, and cargo spaces.

34. ``Inverse Emulsion Drilling Fluids'' means an oil-based

drilling fluid which also contains a large amount of water.

35. ``Live bottom areas'' means those areas which contain

biological assemblages consisting of such sessile invertebrates as

seas fans, sea whips, hydroids, anemones, ascideians sponges,

bryozoans, seagrasses, or corals living upon and attached to

naturally occurring hard or rocky formations with fishes and other

fauna.

36. ``Maintenance waste'' means materials collected while

maintaining and operating the facility, including, but not limited

to, soot, machinery deposits, scraped paint, deck sweepings, wiping

wastes, and rags.

37. ``Maximum Hourly Rate'' means the greatest number of barrels

of drilling fluids discharged within one hour, expressed as barrels

per hour.

38. ``Muds, Cuttings, and Cement at the Seafloor'' means

discharges that occur at the seafloor prior to installation of the

marine riser and during marine riser disconnect, well abandonment

and plugging operations.

39. ``National Pollutant Discharge Elimination System'' (NPDES)

means the national program for issuing, modifying, revoking, and

reissuing, terminating, monitoring, and enforcing permits, and

imposing and enforcing pretreatment requirements, under section 307,

318, 402, and 405 of the Act.

40. ``New Source'' means any facility or activity that meets the

definition of ``new source'' under 40 CFR 122.2 and meets the

criteria for determination of new sources under 40 CFR 122.29(b)

applied consistently with all of the following definitions:

(a) The term ``water area'' as used in the term ``site'' in 40

CFR 122.29 and 122.2 shall mean the water area and ocean floor

beneath any exploratory, development, or production facility where

such facility is conducting its exploratory, development, or

production activities.

(b) The term ``significant site preparation work'' as used in 40

CFR 122.29 shall mean the process of surveying, clearing, or

preparing an area of the ocean floor for the purpose of constructing

or placing a development or production facility on or over the site.

41. ``No Activity Zones'' means those areas identified by the

Minerals Management Service (MMS) where no structures, drilling

rigs, or pipelines will be allowed. Those zones are identified as

lease stipulations in U.S. Department of Interior, MMS, August,

1990, Environmental Impact Statement for Sales 131, 135, and 137,

Western, Central, and Eastern Gulf of Mexico. Additional no activity

areas may be identified by MMS during the life of this permit.

42. ``Operational waste'' means all cargo associated waste,

maintenance waste, cargo residues, and ashes and clinkers from

incinerators and coal burning boilers.

43. ``Packer Fluid'' means low solids fluids between the packer,

production string and well casing. They are considered to be

workover fluids.

44. ``Priority Pollutants'' means those chemicals or elements

identified by EPA, pursuant to section 307 of the Clean Water Act

and 40 CFR 401.15.

45. ``Produced Sand'' means slurried particles used in hydraulic

fracturing, the accumulated formation sands, and scale particles

generated during production. Produced sand also includes desander

[[Page 41625]]

discharge from produced water waste stream and blowdown of water

phase from the produced water treating system.

46. ``Produced Water'' means the water (brine) brought up from

the hydrocarbon-bearing strata during the extraction of oil and gas,

and can include formation water, injection water, and any chemicals

added downhole or during the oil/water separation process.

47. ``Production Facility'' means any fixed or mobile structure

that is either engaged in well completion or used for active

recovery of hydrocarbons from producing formations.

48. ``Sanitary Waste'' means human body waste discharged from

toilets and urinals.

49. ``Severe property damage'' means substantial physical damage

to property, damage to the treatment facilities which cause them to

become inoperable, or substantial and permanent loss of natural

resources which can reasonably be expected to occur in the absence

of a bypass. Severe property damage does not mean economic loss

caused by delays in production.

50. ``Sheen'' means a silvery or metallic sheen, gloss, or

increased reflectivity, visual color or iridescence on the water

surface.

51. ``Source Water and Sand'' means water from non-hydrocarbon

bearing formations for the purpose of pressure maintenance or

secondary recovery including the entrained solids.

52. ``Spotting'' means the process of adding a lubricant (spot)

downhole to free stuck pipe.

53. ``Territorial Seas'' means the belt of the seas measured

from the line of ordinary low water along that portion of the coast

which is in direct contact with the open sea and the line marking

the seaward limit of inland waters, and extending seaward a distance

of three miles.

54. ``Trace Amounts'' means that if materials added downhole as

well treatment, completion, or workover fluids do not contain

priority pollutants then the discharge is assumed not to contain

priority pollutants, except possibly in trace amounts.

55. ``Uncontaminated Ballast/Bilge Water'' means seawater added

or removed to maintain proper draft.

56. ``Uncontaminated Freshwater'' means freshwater which is

discharged without the addition of chemicals; included are (1)

Discharges of excess freshwater that permit the continuous operation

of fire control and utility lift pumps, (2) excess freshwater from

pressure maintenance and secondary recovery projects, (3) water

released during training and testing of personnel in fire

protection, and (4) water used to pressure test new piping.

57. ``Uncontaminated Seawater'' means seawater which is returned

to the sea without the addition of chemicals. Included are (1)

Discharges of excess seawater which permit the continuous operation

of fire control and utility lift pumps (2) excess seawater from

pressure maintenance and secondary recovery projects (3) water

released during the training and testing of personnel in fire

protection (4) seawater used to pressure test piping, and (5) once

through noncontact cooling water which has not been treated with

biocides.

58. ``Upset'' means an exceptional incident in which there is

unintentional and temporary noncompliance with technology-based

permit effluent limitations because of factors beyond the reasonable

control of the permittee. An upset does not include noncompliance to

the extent caused by operational error, improperly designed

treatment facilities, inadequate treatment facilities, lack of

preventive maintenance, or careless or improper operation.

59. ``Well Treatment Fluids'' means any fluid used to restore or

improve productivity by chemically or physically altering

hydrocarbon-bearing strata after a well has been drilled. These

fluids move into the formation and return to the surface as a slug

with the produced water. Stimulation fluids include substances such

as acids, solvents, and propping agents.

60. ``Workover Fluids'' means salt solutions, weighted brines,

polymers, and other specialty additives used in a producing well to

allow safe repair and maintenance or abandonment procedures. High

solids drilling fluids used during workover operations are not

considered workover fluids by definition and therefore must meet

drilling fluid effluent limitations before discharge may occur.

Packer fluids, low solids fluids between the packer, production

string and well casing, are considered to be workover fluids and

must meet only the effluent requirements imposed on workover fluids.

61. The term ``MGD'' shall mean million gallons per day.

62. The term ``mg/l'' shall mean milligrams per liter or parts

per million (ppm).

63. The term ``g/l'' shall mean micrograms per liter or

parts per billion (ppb).

Appendix A

Table 1 (Sheet 1 of 5).--Produced Water Critical Dilution (Percent Effluent) Depth Difference Between Discharge

Pipe and Seafloor 0 to 4 Meters

----------------------------------------------------------------------------------------------------------------

Pipe diameter

---------------------------------------------------------------------

Discharge rate (bbl/day) > 0'' to > 3'' to > 5'' to > 7'' to > 9'' > 11''

3'' 5'' 7'' 9'' to 11'' to 16'' > 16''

----------------------------------------------------------------------------------------------------------------

0 to 500.................................. 0.17 0.17 0.17 0.17 0.17 0.17 0.04

501 to 1,000.............................. 0.45 0.40 0.40 0.40 0.40 0.40 0.08

1,001 to 2,000............................ 1.39 1.08 1.08 1.08 1.08 1.08 0.16

2,001 to 3,000............................ 1.66 1.39 1.32 1.32 1.32 1.32 1.32

3,001 to 4,000............................ 1.97 1.60 1.45 1.45 1.45 1.45 1.45

4,001 to 5,000............................ 1.94 1.77 1.55 1.55 1.55 1.55 1.55

5,001 to 6,000............................ 1.90 1.93 1.66 1.63 1.63 1.63 1.63

6,001 to 7,000............................ 1.86 2.07 1.78 1.70 1.70 1.70 1.70

7,001 to 8,000............................ 1.81 2.20 1.89 1.76 1.76 1.76 1.76

8,001 to 9,000............................ 1.77 2.32 1.99 1.81 1.81 1.81 1.81

9,001 to 10,000........................... 1.73 2.43 2.08 1.86 1.86 1.86 1.86

10,001 to 15,000.......................... 1.56 2.64 2.49 2.16 2.03 2.03 2.03

15,001 to 20,000.......................... 1.43 2.49 2.85 2.47 2.17 2.17 2.17

20,001 to 25,000.......................... 1.34 2.39 3.13 2.75 2.42 2.29 2.29

----------------------------------------------------------------------------------------------------------------

Table 1 (Sheet 2 of 5).--Produced Water Critical Dilution (Percent Effluent) Depth Difference Between Discharge

Pipe and Seafloor Greater Than 4 Meters to 6 Meters

----------------------------------------------------------------------------------------------------------------

Pipe diameter

---------------------------------------------------------------------

Discharge rate (bbl/day) > 0'' to > 3'' to > 5''to > 7'' to > 9'' to > 11''

3'' 5'' 7'' 9'' 11'' to 16'' > 16''

----------------------------------------------------------------------------------------------------------------

0 to 500.................................. 0.04 0.04 0.04 0.04 0.04 0.04 0.04

501 to 1,000.............................. 0.16 0.15 0.15 0.15 0.15 0.15 0.05

1,001 to 2,000............................ 0.42 0.37 0.37 0.37 0.37 0.37 0.10

[[Page 41626]]

2,001 to 3,000............................ 0.80 0.68 0.65 0.65 0.65 0.65 0.15

3,001 to 4,000............................ 1.40 1.15 1.04 1.04 1.04 1.04 0.19

4,001 to 5,000............................ 1.05 0.94 0.86 0.86 0.86 0.86 0.86

5,001 to 6,000............................ 1.15 1.02 0.93 0.92 0.92 0.92 0.92

6,001 to 7,000............................ 1.22 1.10 1.00 0.97 0.97 0.97 0.97

7,001 to 8,000............................ 1.21 1.17 1.06 1.01 1.01 1.01 1.01

8,001 to 9,000............................ 1.19 1.24 1.12 1.05 1.05 1.05 1.05

9,001 to 10,000........................... 1.17 1.30 1.17 1.09 1.09 1.09 1.09

10,001 to 15,000.......................... 1.09 1.56 1.41 1.28 1.23 1.23 1.23

15,001 to 20,000.......................... 1.02 1.75 1.59 1.45 1.33 1.33 1.33

20,001 to 25,000.......................... 0.96 1.69 1.76 1.59 1.46 1.40 1.40

----------------------------------------------------------------------------------------------------------------

Table 1 (Sheet 3 of 5).--Produced Water Critical Dilution (Percent Effluent) Depth Difference Between Discharge

Pipe and Seafloor Greater Than 6 Meters to 8 Meters

----------------------------------------------------------------------------------------------------------------

Pipe diameter

---------------------------------------------------------------------

Discharge rate (bbl/day) > 0'' to > 3'' to > 5''to > 7'' to > 9'' to > 11''

3'' 5'' 7'' 9'' 11'' to 16'' > 16''

----------------------------------------------------------------------------------------------------------------

0 to 500.................................. 0.04 0.04 0.04 0.04 0.04 0.04 0.04

501 to 1,000.............................. 0.07 0.07 0.07 0.07 0.07 0.07 0.07

1,001 to 2,000............................ 0.20 0.18 0.18 0.18 0.18 0.18 0.07

2,001 to 3,000............................ 0.35 0.32 0.31 0.31 0.31 0.31 0.10

3,001 to 4,000............................ 0.56 0.50 0.46 0.46 0.46 0.46 0.13

4,001 to 5,000............................ 0.85 0.74 0.67 0.67 0.67 0.67 0.17

5,001 to 6,000............................ 1.26 1.08 0.95 0.94 0.94 0.94 0.20

6,001 to 7,000............................ 0.78 0.71 0.66 0.65 0.65 0.65 0.65

7,001 to 8,000............................ 0.83 0.76 0.70 0.68 0.68 0.68 0.68

8,001 to 9,000............................ 0.89 0.80 0.74 0.71 0.71 0.71 0.71

9,001 to 10,000........................... 0.89 0.84 0.78 0.74 0.74 0.74 0.74

10,001 to 15,000.......................... 0.84 1.01 0.94 0.87 0.85 0.85 0.85

15,001 to 20,000.......................... 0.80 1.15 1.07 0.99 0.93 0.93 0.93

20,001 to 25,000.......................... 0.76 1.32 1.18 1.09 1.02 0.99 0.99

----------------------------------------------------------------------------------------------------------------

Table 1 (Sheet 4 of 5).--Produced Water Critical Dilution (Percent Effluent) Depth Difference Between Discharge

Pipe and Seafloor Greater Than 8 Meters to 12 Meters

----------------------------------------------------------------------------------------------------------------

Pipe diameter

---------------------------------------------------------------------

Discharge rate (bbl/day) >0'' to >3'' to >5'' to >7'' to >9'' to >11'' to

3'' 5'' 7'' 9'' 11'' 16'' >16''

----------------------------------------------------------------------------------------------------------------

0 to 500.................................. 0.04 0.04 0.04 0.04 0.04 0.04 0.04

501 to 1,000.............................. 0.07 0.07 0.07 0.07 0.07 0.07 0.07

1,001 to 2,000............................ 0.11 0.10 0.10 0.10 0.10 0.10 0.10

2,001 to 3,000............................ 0.14 0.13 0.13 0.13 0.13 0.13 0.13

3,001 to 4,000............................ 0.17 0.16 0.16 0.16 0.16 0.16 0.16

4,001 to 5,000............................ 0.33 0.31 0.29 0.29 0.29 0.29 0.11

5,001 to 6,000............................ 0.45 0.41 0.38 0.38 0.38 0.38 0.13

6,001 to 7,000............................ 0.61 0.55 0.50 0.49 0.49 0.49 0.15

7,001 to 8,000............................ 0.80 0.72 0.66 0.63 0.63 0.63 0.17

8,001 to 9,000............................ 1.06 0.94 0.85 0.80 0.80 0.80 0.19

9,001 to 10,000........................... 0.56 0.52 0.50 0.48 0.48 0.48 0.48

10,001 to 15,000.......................... 0.63 0.63 0.60 0.57 0.56 0.56 0.56

15,001 to 20,000.......................... 0.61 0.72 0.68 0.65 0.62 0.62 0.62

20,001 to 25,000.......................... 0.58 0.80 0.75 0.72 0.68 0.66 0.66

----------------------------------------------------------------------------------------------------------------

[[Page 41627]]

Table 1 (Sheet 5 of 5).--Produced Water Critical Dilution (Percent Effluent) Depth Difference Between Discharge

Pipe and Seafloor Greater Than 8 Meters to 12 Meters

----------------------------------------------------------------------------------------------------------------

Pipe diameter

---------------------------------------------------------------------

Discharge rate (bbl/day) >0'' to >3'' to >5'' to >7'' to >9'' to >11'' to

3'' 5'' 7'' 9'' 11'' 16'' >16''

----------------------------------------------------------------------------------------------------------------

0 to 500.................................. 0.04 0.04 0.04 0.04 0.04 0.04 0.04

501 to 1,000.............................. 0.07 0.07 0.07 0.07 0.07 0.07 0.07

1,001 to 2,000............................ 0.11 0.10 0.10 0.10 0.10 0.10 0.10

2,001 to 3,000............................ 0.14 0.13 0.13 0.13 0.13 0.13 0.13

3,001 to 4,000............................ 0.17 0.16 0.16 0.16 0.16 0.16 0.16

4,001 to 5,000............................ 0.21 0.20 0.19 0.19 0.19 0.19 0.19

5,001 to 6,000............................ 0.24 0.23 0.22 0.22 0.22 0.22 0.22

6,001 to 7,000............................ 0.28 0.26 0.25 0.25 0.25 0.25 0.25

7,001 to 8,000............................ 0.32 0.30 0.29 0.28 0.28 0.28 0.28

8,001 to 9,000............................ 0.36 0.34 0.32 0.31 0.31 0.31 0.31

9,001 to 10,000........................... 0.41 0.38 0.36 0.35 0.35 0.35 0.35

10,001 to 15,000.......................... 0.28 0.84 0.83 0.81 0.80 0.80 0.80

15,001 to 20,000.......................... 0.31 1.01 0.99 0.97 0.67 0.67 0.67

20,001 to 25,000.......................... 1.07 1.15 1.13 1.11 1.09 1.08 1.08

----------------------------------------------------------------------------------------------------------------

Table 1A.--Minimum Vertical Port Separation Distance to Avoid

Interference

------------------------------------------------------------------------

Minimum

separation

Port flow rate (bbl/day) distance

(m)

------------------------------------------------------------------------

0-500...................................................... 3.7

501-1000................................................... 4.5

1001-2000.................................................. 5.4

2001-5000.................................................. 6.4

5001-7000.................................................. 6.6

7001-10000................................................. 6.6

------------------------------------------------------------------------

Table 2.--Effluent Limitations, Prohibitions and Monitoring Requirements

--------------------------------------------------------------------------------------------------------------------------------------------------------

Monitoring requirement

Regulated and Discharge limitation/ --------------------------------------------------------------------

Discharge monitored discharged Prohibition Measurement

parameter frequency Sample type/ Method Recorded value(s)

--------------------------------------------------------------------------------------------------------------------------------------------------------

Drilling Fluid..................... Free Oil.............. No free oil........... Once week \1\........ Static sheen......... Number of days sheen

observed.

Toxicity \2\ 96-hr 30,000 ppm daily Once/month........... Grab................. 96-hr LC50.

LC50. minimum.

Once/end of well \3\. Grab................. 96-hr LC50.

30,000 ppm monthly Once/month........... Grab................. 96-hr LC50.

average minimum.

Discharge Rate........ 1,000 barrels/hour Once/hour \1\........ Estimate............. Max. hourly rate.

Discharge Rate for (see Figure 1). Once/hour \1\........ Measure.............. Max. hourly rate.

controlled discharge

rate areas \4\

Mercury and cadmium... No discharge of Once prior to Absorption........... mg mercury/kg barite.

drilling fluids to drilling each well Spectro-photometry... mg cadmium/kg barite.

which barite has been \6\

added, if such barite

contains mercury in

excess of 1.0 mg/kg

or cadmium in excess

of 3.0 mg/kg (dry

weight).

Oil Based or Inverse No discharge

Emulsion Drilling

Fluids.

Oil Contaminated No discharge

Drilling Fluids.

Diesel Oil............ No discharge of

drilling fluids to

which diesel oil has

been added

Mineral Oil........... Mineral oil may be

used only as a

carrier fluid

(transporter fluid),

lubricity additive,

or pill

Drilling Cuttings.................. Free oil.............. No free oil........... Once/week \1\........ Static sheen......... Number of days sheen

observed.

Toxicity \2\ 96-hr 30,000 ppm daily Once/month........... Grab................. 96-hr LC50.

LC50. minimum.

Once/end of well \3\. Grab................. 96-hr LC50.

30,000 ppm monthly Once/month........... Grab................. 96-hr LC50.

average minimum.

Drill Cuttings (Continued)......... Mercury and cadmium... No discharge of Once prior to Absorption........... mg mercury/kg barite.

cuttings generated drilling each well Spectro-photometry... mg cadmium/kg barite.

using drilling fluids \6\

to which barite has

been added, if such

barite contains

mercury in excess of

1.0 mg/kg or cadmium

in excess of 3.0 mg/

kg (dry weight).

[[Page 41628]]

Cuttings generated No discharge

using Oil Based or

Inverse Emulsion

Drilling Fluids.

Cuttings generated No discharge

using Oil

Contaminated Drilling

Fluids.

Cuttings generated No discharge

using drilling fluids

to which Diesel Oil

has been added.

Cuttings generated Mineral oil may be

using drilling fluids used only as a

to which Mineral Oil carrier fluid

has been added. (transporter fluid),

lubricity additive,

or pill

Deck Drainage...................... Free Oil.............. No free oil........... Once/day \7\......... Visual sheen......... Number of days sheen

observed.

Produced Water..................... Oil and grease........ 42 mg/l daily max., 29 Once/month........... Grab \8\............. Daily max., monthly

mg/l monthly average. average.

Toxicity.............. 7-day average min. Rate Dependent \16\.. Grab................. Lowest NOEC for

NOEC \9\ and monthly either of the two

average min. NOEC \9\ species.

Radium 226 and 228.... Monitor............... Rate Dependent \16\.. Grab................. pCi/liter.

Bioaccumulation \17\

Flow (MGD)............ 25,000 bbl/day \18\... Once/month........... Estimate............. Monthly Average.

Produced Sand...................... No Discharge

Well treatment fluids, completion Free oil.............. No free oil........... Once/day \1\......... Static sheen......... Number of days sheen

fluids, and workover fluids observed.

(includes packer fluids) \10\.

Oil & Grease.......... 42 mg/l daily max., Once/month........... Grab \8\............. Daily max., monthly

29 mg/l monthly avg average.

Sanitary waste \12\ continuously Residual chlorine \13\ 1 mg/l (minimum)...... Once/month........... Grab................. Concentration

manned by 10 or more persons. Solids................ No Floating Solids.... Once/day............. Observation.......... Number of days solids

observed.

Sanitary waste \12\ continuously Solids................ No floating solids.... Once/day............. Observation.......... Number of days solids

manned by 9 or fewer persons or observed.

intermittently by any number.

Domestic waste \14\................ Solids................ No floating solids or Once/day............. Observation \15\..... Number of days

foam. observed.

Miscellaneous discharges: Free oil.............. No free oil........... Once/week \11\....... Visual sheen......... Number of days sheen

Desalinization unit discharge; observed.

blowout preventer fluid;

uncontaminated ballast water;

uncontaminated bilge water;

uncontaminated freshwater; mud,

cuttings and cement at seafloor;

uncontaminated seawater; boiler

blowdown; source water and sand;

diatomaceous earth filter media;

excess cement slurry.

--------------------------------------------------------------------------------------------------------------------------------------------------------

\1\ When discharging.

\2\ Suspended particulate phase (SPP) with Mysidopsis bahia following approved test method. The sample shall be taken beneath the shale shaker; or if

there are no returns across the shaker then the sample must be taken from a location that is characteristic of the overall mud system to be

discharged.

\3\ Sample shall be taken after the final log run is completed and prior to bulk discharge.

\4\ See Appendix A, Discharge Rate Graph.

\5\ This information shall be recorded but not reported unless otherwise requested by EPA.

\6\ Analyses shall be conducted on each new stock of barite used.

\7\ When discharging and facility is manned. Monitoring shall be accomplished during times when observation of a visual sheen on the surface of the

receiving water is possible in the vicinity of the discharge.

\8\ May be based on the arithmetic average of four grab sample results in the 24 hr. period.

\9\ See Table 1, Appendix A.

\10\ No discharge of priority pollutants except in trace amounts. Information on the specific chemical composition shall be recorded but not reported

unless requested by EPA.

\11\ When discharging for muds, cuttings, and cement at the seafloor and blowout preventer fluid. All other miscellaneous discharges: when discharging,

discharge is authorized only during times when visual sheen observation is possible, unless the static sheen method is used. Uncontaminated seawater

uncontaminated freshwater, source water and source sand, uncontaminated bilge water, and uncontaminated ballast water from platforms on automatic

purge systems may be discharged without monitoring from platforms which are not manned.

\12\ Any facility which properly operates and maintains a marine sanitation device (MSD) that complies with pollution control standards and regulations

under section 312 of the Act shall be deemed to be in compliance with permit limitations for sanitary waste. The MSD shall be tested yearly for proper

operation, and test results maintained at the facility.

\13\ Hach method CN-66 DPD approved. Minimum of 1 mg/l and maintained as close to this concentration as possible.

\14\ The discharge of food waste is prohibited within 12 nautical miles from nearest land. Comminuted food waste able to pass through a 25 mm mesh

screen (approximately 1 inch) may be discharged more than 12 nautical miles from nearest land.

\15\ Monitoring shall be accomplished during daylight by visual observation of the surface of the receiving water in the vicinity of sanitary and

domestic waste outfalls. Observations shall be made following either the morning or midday meals at a time of maximum estimated discharge.

\16\ Once/year for discharges from 0 bbl/day to 499 bbl/day, once/quarter for discharges from 500 bbl/day to 4,599 bbl/day, and once/month for

discharges of 4,600 bbl/day and greater.

\17\ See Part I.B.4.(b) of this Permit.

\18\ Unless vertically separated in accordance with CORMIX1 modeling.

[FR Doc. 96-20243 Filed 8-8-96; 8:45 am]

BILLING CODE 6560-50-P