[Federal Register Volume 59, Number 114 (Wednesday, June 15, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-14553]


[[Page Unknown]]

[Federal Register: June 15, 1994]


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DEPARTMENT OF ENERGY

 

Compliance With the National Environmental Policy Act: Record of 
Decision for Continued Operation of Naval Petroleum Reserve No. 1 (Elk 
Hills), Tupman, CA

AGENCY: Department of Energy.

ACTION: Record of decision.

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SUMMARY: Pursuant to the Council on Environmental Quality regulations 
(40 CFR parts 1500-1508), which implement the procedural provisions of 
the National Environmental Policy Act (NEPA), and the U.S. Department 
of Energy National Environmental Policy Act regulations (10 CFR part 
1021), the Department of Energy, Office of Fossil Energy, is issuing a 
Record of Decision on the continued operation of Naval Petroleum 
Reserve No. 1, Kern County, California. The Department of Energy has 
decided to continue current operations at Naval Petroleum Reserve No. 1 
and implement additional well drilling, facility development projects 
and other activities necessary for continued production of Naval 
Petroleum Reserve No. 1 in accordance with the requirements of the 
Naval Petroleum Reserves Production Act of 1976 (Pub. L. 94-258). The 
final Supplemental Environmental Impact Statement, entitled ``Petroleum 
Production at Maximum Efficient Rate, Naval Petroleum Reserve No. 1 
(Elk Hills), Kern County, California (DOE/SEIS-0158),'' was released on 
September 3, 1993.

ADDRESSES: To receive a copy of the final Supplemental Environmental 
Impact Statement or Record of Decision, please contact Mr. James C. 
Killen, Director, Planning, Analysis, and Program Support Division, 
U.S. Department of Energy, Naval Petroleum Reserves in California, 
Tupman, California, 93276, (805) 763-6038.

FOR INFORMATION ON THE NATIONAL ENVIRONMENTAL POLICY ACT PROCESS: 
Contact Ms. Carol M. Borgstrom, Director, Office of National 
Environmental Policy Act Oversight, U.S. Department of Energy, 1000 
Independence Avenue, SW., Washington, DC, 20585, (202) 586-4600, or 
(800) 472-2756.

SUPPLEMENTARY INFORMATION: Naval Petroleum Reserve No. 1 (NPR-1) is a 
large oil and gas field of approximately 74 square miles (47,409 acres) 
located about 25 miles southwest of Bakersfield in Kern County, 
California. NPR-1, which was established by Executive Order in 1912 for 
National defense purposes, is jointly owned and operated by the Federal 
Government under the jurisdiction of the Department of Energy (DOE), 
and Chevron U.S.A. Inc. pursuant to a Unit Plan Contract that became 
effective in 1944. The Government has a 78 percent interest 
(approximately) in NPR-1 hydrocarbon production and Chevron's interest 
is approximately 22 percent. Currently, the Government's share of NPR-1 
oil production is sold on the open market, with proceeds deposited in 
the U.S. Treasury, and/or transferred to the U.S. Strategic Petroleum 
Reserve for storage as protection against future oil supply 
disruptions. NPR-1 natural gas production is either processed into 
natural gas liquids for sale on the open market, or reinjected into 
NPR-1 hydrocarbon reservoirs for pressure maintenance and/or enhanced 
oil recovery.
    NPR-1 was maintained in essentially a shut-in reserve status until 
the mid-1970's when Congress, in response to the Arab Oil Embargo of 
1973, passed the Naval Petroleum Reserves Production Act of 1976 (Pub. 
L. 94-258), which directed that NPR-1, the adjacent NPR-2, and NPR-3 in 
Wyoming, be produced for an initial period of 6 years at the maximum 
efficient rate. Under the Act, maximum efficient rate means the maximum 
rate of hydrocarbon production that optimizes economic return and 
ultimate hydrocarbon recovery. Public Law 94-258 also provided the 
President with the authority to continue production from the Reserves 
beyond the initial 6 years for an additional and unlimited number of 
increments of up to three years each. For each added period of 
production, the President must certify to Congress that it remains in 
the National interest to continue producing the Reserves. Currently, 
the Naval Petroleum Reserves are authorized for maximum efficient rate 
production through April 5, 1997.
    Approximately 700 million barrels of oil and 200 million gallons of 
natural gas liquids have been produced from NPR-1 hydrocarbon 
reservoirs since the field was opened up to full development in 1976. 
In 1992, NPR-1 became only the 13th domestic oil field to produce a 
cumulative total of 1 billion barrels of oil since its initial 
development began in 1912. Since 1976, revenues in excess of $15 
billion have been deposited into the U.S. Treasury from NPR-1 
operations. In 1988, NPR-1 hydrocarbon reserves were estimated to be 
approximately 524-831 million barrels of oil and 1,790-2,497 billion 
cubic feet of natural gas.
    In 1979, DOE published an Environmental Impact Statement (EIS) 
(DOE/EIS-0012) which described the existing environment at NPR-1 and 
analyzed the petroleum development activities that were anticipated at 
that time. The development activities described and evaluated included 
the drilling of approximately 350 new oil, gas and water wells; 
construction of two new Lease Automatic Custody Transfer facilities; 
construction of two gas facilities to process up to 700 million cubic 
feet per day of wet natural gas; construction of wastewater facilities 
capable of disposing of approximately 30,000 barrels per day of 
produced water; and construction of an additional 40,000 square feet of 
building space for administration and other support facilities. 
Implementation of these activities increased NPR-1's oil production to 
a peak level of approximately 181,000 barrels per day by July, 1981. 
Oil production at NPR-1 has declined since then to the current level of 
approximately 65,000 barrels per day. NPR-1 currently produces 
approximately 299-320 million cubic feet per day of natural gas and 
processes 379,000-456,000 gallons per day of natural gas liquids 
(propane, butane and natural gasoline).
    In an Environmental Assessment prepared in 1985 (DOE/EA-0261), DOE 
described the potential environmental impacts that could result from 
implementation of a pilot steamflood project of the Shallow Oil Zone at 
NPR-1. The Shallow Oil Zone pilot steamflood project subsequently was 
implemented and a large expansion of this project is proposed and 
analyzed in the final Supplemental Environmental Impact Statement 
(SEIS). In 1987, DOE prepared another Environmental Assessment (DOE/EA-
0334) which described the potential impacts that could result from the 
divestiture of NPR-1 and NPR-3. Implementation of this action would 
require a Congressional directive, which has not occurred.
    Primarily as a result of the need to drill additional oil, gas, and 
water wells at NPR-1, expand the Shallow Oil Zone steamflood project, 
expand natural gas operations, and reduce power costs and air pollution 
emissions by constructing a cogeneration facility, the decision was 
made to prepare a Supplement to the 1979 EIS to analyze the 
environmental impact of these and other proposed actions. Accordingly, 
DOE published a Notice of Intent announcing its decision in the Federal 
Register on April 4, 1988 (53 FR 10922). Pursuant to the Notice of 
Intent, three public scoping meetings were held in April 1988 and the 
issues and concerns raised by the public were used in the development 
of the SEIS. The basis for the SEIS is the April 1989 NPR-1 Long Range 
Plan, which describes a myriad of planned operations and development 
projects, maintenance activities, and environmental protection 
initiatives over the next 25-30 years. A description and evaluation of 
the existing NPR-1 environment also was provided in the SEIS to assess 
the level of impacts, if any, that resulted from the NPR-1 activities 
that were implemented following publication of the 1979 EIS.
    In May 1992, DOE published and distributed approximately 200 copies 
of the draft SEIS. A Notice of Availability of the draft SEIS and an 
announcement of a public hearing in Bakersfield, California on June 24, 
1992 was published in the Federal Register on June 5, 1992 (57 FR 
24038). Only one speaker provided oral testimony at the public hearing. 
DOE received 122 written comments from 13 government agencies and 
interested individuals during the 55-day comment period following 
publication of the Notice of Availability. DOE considered and responded 
to all comments on the draft SEIS in the development of the final SEIS. 
A transcript of the public hearing and all written comments on the 
draft SEIS were included in the final SEIS.
    The final SEIS on the proposed action was released in August 1993. 
A Notice of Availability of the document was published in the Federal 
Register on September 3, 1993 (58 FR 46969) which announced an 
incorrect due date for comments of October 18, 1993. An amended Notice 
of Availability subsequently was published in the Federal Register on 
September 17, 1993 (58 FR 48650) revising the due date to October 5, 
1993. Of eight comment letters received on the final SEIS, only the 
Environmental Protection Agency (EPA) and a local consultant commented 
on substantive issues. EPA reiterated concerns about the method used to 
compare impacts of the proposed action and alternatives, completion of 
the final Biological Opinion for the proposed action, ingestion of oil 
field chemicals by site wildlife, waste minimization, wetlands 
delineation, air quality, and sump closures, and recommended deferring 
expanding operations that may impact groundwater quality in the 
northeast portion of the site. EPA also recommended discussing in the 
Record of Decision the feasibility of re-entering shut-in wells as an 
option to drilling new wells to increase production. Michael R. Rector, 
a local water resources consultant, raised concerns about groundwater 
mining and com-mented that groundwater downdip from site produced water 
disposal wells should be analyzed for the presence of benzene, toluene 
and xylenes.
    With the exception of the comments regarding comparison of 
alternative action impacts, deferring operations in the northeast 
portion of the site, and the feasibility of re-entering shut-in wells, 
all concerns have been addressed in this Record of Decision under Major 
Environmental Impacts and Mitigation Action Plan.
    With regard to the comparison of alternatives, EPA commented that 
it stands by its earlier comment on the draft SEIS that impacts 
associated with the no action alternative should be the basis for the 
comparison of alternative action impacts. DOE maintains that the 
methodology used in the SEIS is the same, substantively, as that 
advocated by EPA. This is explained as follows. It is EPA's opinion 
that in comparing impacts between alternatives, the no action 
alternative should be the baseline for the comparison. For example, if 
no action has an impact of X, and the proposed action has an impact of 
X+Y, then comparisons of these two alternatives should state that the 
impacts of the proposed action are Y greater than no action. In 
contrast, the SEIS sometimes makes this comparison by stating that no 
action has an impact that is X less than the proposed action. DOE 
believes that either comparison satisfies the requirement under 40 CFR 
1502.14 ``* * * to present the environmental impacts of the proposal 
and the alternatives in comparative form, thus sharply defining issues 
* * *.''. Impacts from existing operations comprising no action are 
presented in detail in Sec. 3.0, ``Existing Environment.'' Impacts of 
the proposed action and the modified proposed action are presented in 
detail in Sec. 4.0, ``Environmental Impacts of the Proposed Action and 
Alternatives.'' A summary of the elements and impacts of no action, the 
proposed action, and the modified proposed action are presented in 
comparative form by Tables 2.0-1 and 2.0-2 in Sec. 2.0, 
``Alternatives.'' These tables, together with supporting text, result 
in a form that sharply contrasts differences between alternatives, as 
required.
    Regarding the comment on the northeast portion of the site, DOE is 
not proposing to expand operations that may impact groundwater quality 
in that area. The only activities planned in this area are remediation 
or facility repair and replacement projects that are designed to 
enhance the level of environmental protection. These projects are 
routinely evaluated for environmental impacts, including groundwater 
impacts, as a matter of standard practice prior to their 
implementation.
    The use of existing shut-in oil production wells for other purposes 
such as waterflood, gas injection or in the development of underlying/
overlying oil or gas zones can provide a significant capital savings 
and, therefore, is always given serious consideration at NPR-1. Prior 
to the formal abandonment of any shut-in wells, a determination is made 
that the well cannot serve any other useful purpose. Table 1.2-3 of the 
final SEIS indicates that 382 new wells would be completed through the 
year 2025 under the proposed action. In comparison, for this same time 
period, the proposed action would involve a total of 571 conversions of 
existing wells to a different use.

Alternatives Considered

    Three alternatives were evaluated in the SEIS: Proposed Action, No 
Action (Alternative 1), and Modified Proposed Action (Alternative 2). 
In addition, Alternative 3 (Nonsteamflood Tertiary Oil-Recovery 
Strategies) and two other alternatives were initially considered and 
dismissed from further evaluation.

Proposed Action

    The proposed action is to continue operating NPR-1 in accordance 
with the requirements of the Naval Petroleum Reserves Production Act of 
1976 by implementing the activities described in the 1989 NPR-1 Long 
Range Plan. This includes the operation and maintenance of all existing 
facilities; a program to drill, redrill, or deepen approximately 382 
wells, 148 of which would be for the phased 500-acre, 625 million 
British thermal units per hour Shallow Oil Zone steamflood project; a 
program to perform approximately 2,663 well remedial jobs as needed to 
ensure efficient operation and maintenance of approximately 2,697 
wells; a program to recycle produced water to the maximum extent 
technically and economically feasible for use as source water for 
waterflood operations; a program to abandon approximately 1,080 wells; 
construction and operation of approximately 46,250 horsepower of 
additional gas compression for gas-lift and gas-injection projects 
(37,500 horsepower gas; 8,750 horsepower electric); construction and 
operation of compression and processing facilities to compress, 
transport and process up to an additional 100-150 million cubic feet 
per day of gas (fourth gas plant); construction of new facilities and 
increased use of existing facilities to expand waterflood operations by 
approximately 106,000 barrels per day; construction and operation of a 
42-megawatt cogeneration facility; construction and operation of a 
170,000-220,000 gallon per day butane isomerization facility; a program 
to investigate, remediate, or otherwise manage numerous old inactive 
waste sites; a program to reclaim by 1998 approximately 1,045 acres of 
disturbed lands not needed for current or future NPR-1 operations; the 
permitting of third parties to construct, operate and maintain 
pipelines, conduct geophysical surveys and perform other necessary oil-
field related activities on NPR-1; and the continued implementation of 
a comprehensive environmental protection program.

Alternative 1: No Future Development (No Action)

    This alternative provides for continued production of NPR-1 by 
operating and maintaining existing wells and facilities only. It does 
not include any new development projects needed to enhance efficiency 
or off-set natural production declines (no new drilling, enhanced 
recovery, cogeneration, etc.). It does include all maintenance 
projects, facility development projects and environmental protection 
initiatives included in the proposed action that are necessary for 
maintaining the safety and quality of the NPR-1 environment.

Alternative 2: Proposed Action Excluding the Shallow Oil Zone 
Steamflood Expansion, Gas Processing Expansion, and Cogeneration 
Project (Modified Proposed Action)

    This alternative provides for all activities included in the 
proposed action, except that the 148-well, 500-acre Shallow Oil Zone 
steamflood expansion would not be implemented; expansion of NPR-1's gas 
processing capacity by 100-150 million cubic feet per day (fourth gas 
plant) would not be undertaken; and the 42-megawatt cogeneration plant 
would not be constructed.

Alternative 3: Nonsteamflood Tertiary Oil-Recovery Strategies

    This alternative provides for all of the activities included in the 
proposed action and implementation of nonsteamflood tertiary recovery 
techniques that have been carried out on a limited basis at other oil 
fields. Examples of these techniques include alkali surfactant polymer 
injection, micellar polymer injection, carbon dioxide injection and in-
situ combustion. Although these techniques may have potential in the 
long term, their implementation in NPR-1 hydrocarbon reservoirs cannot 
be considered by decision-makers in the reasonably foreseeable future 
due to limited technical data and unfavorable current and projected 
future economic conditions. For this reason, studies were not completed 
to scope these programs to the level of detail needed to address 
potential environmental impacts. Accordingly, this alternative was 
dismissed from further consideration in the SEIS.

Divestiture

    The possibility of selling the Government's interest in NPR-1 
(divestiture) was initially announced in the Notice of Intent to 
prepare this SEIS as an alternative in the context of continued 
operations and future development (53 FR 10922, April 4, 1988). 
Analysis of this alternative would have expanded on the 1987 
Environmental Assessment of Divestiture (DOE/EA-0334). This alternative 
is considered highly speculative in the absence of Congressional action 
and, therefore, was not developed in the SEIS.

EPA's Proposed Alternative (No Action followed by Proposed Action)

    In its comments on the draft SEIS, EPA recommended analysis of an 
additional alternative that would involve implementing the no action 
alternative for the near term and then proceeding with the proposed 
action at a later date. A brief analysis of this alternative was 
included in the final SEIS. The analysis indicated that ultimate 
hydrocarbon recovery losses of approximately 66 million barrels of oil 
and 132 billion cubic feet of natural gas would occur by deferring 
development activities at NPR-1 for a period of 10 years. Because this 
alternative would not allow DOE to meet the purpose and need for the 
proposed action, which is to produce NPR-1 at the maximum efficient 
rate in accordance with the Naval Petroleum Reserves Production Act of 
1976, it was dismissed from further consideration in the final SEIS.

Environmentally Preferred Alternative

    The environmentally preferred alternative is the no action 
alternative (Alternative 1). Habitat disturbance associated with this 
alternative is significantly less than for all other alternatives 
analyzed in the SEIS. Future impacts associated with continued NPR-1 
operations would diminish more rapidly under this alternative as NPR-
1's economic life would be reached much sooner than would occur under 
other alternatives (approximately 2000-2010). This alternative would 
require legislative redirection of DOE's current mission to produce 
NPR-1 in accordance with the Naval Petroleum Reserves Production Act of 
1976.

Decision:

    DOE has decided to continue current NPR-1 operations and implement 
additional well drilling, facility development projects and other 
activities necessary for continued production of NPR-1 in accordance 
with the requirements of the Naval Petroleum Reserves Production Act of 
1976 (Pub. L. 94-258).

Discussion and Justification of Decision

    Pursuant to the Naval Petroleum Reserves Production Act of 1976 and 
subsequent Presidential certifications, DOE is required to produce NPR-
1 at the maximum efficient rate through April 5, 1997. To continue to 
meet this mandate, continued and enhanced NPR-1 operations are 
necessary.
    The decision to produce the Naval Petroleum Reserves at the maximum 
efficient rate was initially authorized by Congress in 1976 to address 
emergency energy needs in response to the Arab oil embargo of 1973-
1974. At that time, the Naval Petroleum Reserves were administered by 
the Secretary of the Navy. Effective October 1, 1977, the DOE 
Organization Act (Pub. L. 95-91) transferred jurisdiction of the Naval 
Petroleum Reserves to the new DOE. NPR-1 oil production since 1976 has 
either been sold on the open market, transferred to the Department of 
Defense for national security purposes, or transferred to the Strategic 
Petroleum Reserve for storage in the event of future oil supply 
disruptions.
    In recent years, Congress has recognized other significant reasons 
for continued maximum efficient rate production of the Naval Petroleum 
Reserves. In addition to military preparedness and National defense 
reasons, the following issues were considered in the most recent 
extension of the Naval Petroleum Reserves Production Act:
    1. National economic impacts, including the direct effect on net 
Federal revenues and the broader effects on the economy;
    2. National energy strategy, reflecting the effects of oil import 
requirements in the absence of an extension; and
    3. Local and regional concerns, involving the effects of operating 
the Naval Petroleum Reserves on local economies and on upstream and 
downstream elements of the petroleum industry in the areas served by 
the Naval Petroleum Reserves.
    Selection of the no action alternative (Alternative 1) would not 
allow DOE to meet the statutory mandate to produce NPR-1 at the maximum 
efficient rate, and would result in ultimate recovery losses of up to 
500 million barrels of oil and more than 250 billion cubic feet of 
natural gas reserves. This represents a reduction of 58 percent of the 
remaining oil reserves and 20 percent of the remaining gas reserves, 
respectively. Under this alternative, the economic return on NPR-1 
investment would be greatly diminished in comparison to that of the 
proposed action.
    Selection of the modified proposed action alternative (Alternative 
2) would eliminate important facility projects including Shallow Oil 
Zone steamflooding, expanded gas processing, and cogeneration power 
production that are needed to ensure continued maximum efficient rate 
production at NPR-1, as required by the Naval Petroleum Reserves 
Production Act of 1976. As in the case of Alternative 1, implementation 
of Alternative 2 would not allow DOE to meet its statutory mandate.

Major Environmental Impacts and Mitigation Action Plan

    The environmental impacts that could result from implementation of 
the proposed action were summarized in Table 2.0-2 and analyzed in 
detail in Section 4.0 of the final SEIS. DOE believes that most of 
these impacts can either be eliminated or reduced to acceptable levels. 
Accordingly, a total of 88 mitigation commitments were made in the 
final SEIS to ensure impact levels would be minimized to the maximum 
extent possible. These mitigation commitments form the basis of the 
NPR-1 Mitigation Action Plan to reduce potential impacts from proposed 
action activities. The NPR-1 Mitigation Action Plan provides detailed 
activities, implementing organizations, activity milestone dates and 
mitigation monitoring protocol. Upon publication of the Record of 
Decision in the Federal Register, the Mitigation Action Plan will be 
made available for public review in reading rooms at the offices of the 
Naval Petroleum Reserves in California and DOE Headquarters in 
Washington, DC. The plan will also be provided to local libraries.
    As noted earlier, EPA and a private water resources consultant 
provided substantive comments on the final SEIS. EPA encouraged DOE to 
continue ongoing efforts to identify wetland resources on NPR-1. As 
detailed in the Mitigation Action Plan, a formal wetland delineation 
study of potential wetlands on NPR-1 will be conducted in 1994. This 
study will be coordinated with both the U.S. Army Corps of Engineers 
and EPA. If jurisdictional wetlands are identified, DOE will comply 
with the provisions of the Clean Water Act regarding wetland 
disturbances.
    As indicated in the final SEIS and associated Mitigation Action 
Plan, DOE is committed to remediating all inactive sumps and managing 
active sumps in accordance with Waste Discharge Requirements issued by 
the State of California's Central Valley Regional Water Quality Control 
Board. DOE is actively proceeding with plans to continue the 
remediation of historic produced water sumps. The Mitigation Action 
Plan also provides details (Mitigation Nos. WG-30 and WR-9) of a site-
wide sump closure plan that was approved in 1991 by the Central Valley 
Regional Water Quality Control Board. EPA will be provided a copy of 
this closure plan as suggested in their comment. DOE is permitted to 
sump wastewater at NPR-1 by Waste Discharge Requirements #58-491 and 
#68-262, which prohibit the release of wastewater into unlined sumps 
located on alluvial soils if the wastewater exceeds 1,000 parts per 
million total dissolved solids. Accordingly, wastewater sumps on or 
near alluvial soils have been lined or taken out of service. DOE will 
continue to ensure the integrity of the liners at these locations.
    DOE will complete a Groundwater Management Protection Plan for NPR-
1 in 1994. The management plan will include, among other components, a 
site-wide Groundwater Monitoring Plan. On September 28, 1993 DOE 
briefed the California Department of Water Resources, the California 
Central Valley Regional Water Quality Control Board and the Kern County 
Water Agency on the development of these groundwater plans. DOE 
acknowledged the need to better characterize groundwater in the 
northeast portion of NPR-1 due to its proximity to a subsurface water 
bank under development by the water agencies. DOE facilitated a 
discussion of their respective interests regarding the development of 
NPR-1 groundwater plans. Future data review and exchange activities 
were discussed, which DOE will honor. Continued interactions with these 
agencies will be given a high priority by DOE.
    The Groundwater Protection Management Plan will also address 
concerns raised by Mr. Rector regarding the withdrawal of waterflood 
source water and produced water injection activities on the south flank 
of NPR-1. DOE regularly monitors the quality of the source well water, 
including tests for volatile organics such as benzene, toluene, and 
xylenes as Mr. Rector suggested in his comment. Potential adverse 
impacts to the NPR-1 aquifer from groundwater withdrawal will continue 
to be monitored as well.
    Other concerns raised by EPA regard issues with the potential for 
major environmental impacts. Acknowledgement of these concerns is 
included in the following discussion of the major environmental impacts 
associated with the proposed action and the principal mitigation 
measures planned to minimize the impacts.

1. Potential Erosion from Construction Disturbances to 1,569 Acres On 
and Off NPR-1

    Soil Conservation Service erosion control/site-rehabilitation 
measures will be implemented in planning, design, and operational 
activities.

2. Slight Possibility of Subsidence and Induced Seismicity Due To 
Increased Withdrawal of Source Water From the Tulare Formation and Oil 
and Gas Withdrawal From Deep Producing Formations

    NPR-1 facilities will be designed in accordance with the latest 
edition of the Uniform Building Code and the recommendations of the 
NPR-1 Geotechnical and Earthquake Engineering Study.

3. Production of Drilling Wastes Associated With A 382-Well Drilling 
Program, 2,663 Remedials, and 1,080 Abandonments

    Drilling fluid additives utilized at NPR-1 will be limited to those 
that are included on the list of approved nonhazardous drilling fluid 
additives issued by the California Department of Health Service in 
1982.

4. 100,000-181,000 Barrels Per Day of Produced Wastewater Would Require 
Recycling or Disposal

    To the extent technically and economically feasible, produced water 
will be recycled for use as source water for waterflood operations.

5. Nonhazardous Solid Waste Quantities from Construction and Operations 
Would Increase Above the Current Volume of 24,000 Cubic Yards Per Year

    NPR-1 will establish and implement a waste minimization program to 
reduce the volume of all nonhazardous solid wastes.

6. Hazardous Waste From Construction and Operations Would Increase 
Slightly Above the Current Level of Approximately 19,800 Pounds Per 
Year

    Hazardous waste minimization reviews will be conducted for all 
proposed facility projects. State of California regulatory 
requirements, such as the Hazardous Waste Reduction and Management 
Review Act of 1989 (SB 14) will be followed. In addition, NPR-1 will 
comply with Executive Order 12856 (Federal Compliance with Right-to-
Know Laws and Pollution Prevention Requirements) which was signed on 
August 3, 1993. This order requires Federal agencies to the maximum 
extent possible to reduce, recycle and treat toxic chemical waste. As 
required by the Order, NPR-1 will report in a public manner toxic 
chemicals entering any wastestream from the facility, and will improve 
local emergency planning, response and accident notification 
procedures.

7. Fugitive Particulate Emissions from Construction Activities and 
Seismic Survey Disturbances on Approximately 8,349 Acres

    NPR-1 will develop and implement a particulate matter control plan.
    EPA also recommended that measures be implemented to ensure 
compliance with the requirements of EPA's emissions trading policy. It 
should be noted that all air permitting operations at NPR-1 are closely 
coordinated with the San Joaquin Valley Unified Air Pollution Control 
District to ensure compliance with applicable regulations. Accounting 
of emission reductions is a District staff function. These issues are 
closely monitored by the California Air Resources Board and Region IX 
of EPA.

8. Increases in Current Operational Emissions By A Maximum of 
Approximately 133.6, 124.2, 367.0, 0.7, 5.8, and 85.8 Pounds Per Hour 
of Reactive Organic Gas, Nitrogen Oxide, Carbon Monoxide, Sulfur 
Dioxide, Total Suspended Particulate, and Particulate Matter With 
Aerodynamic Diameters Less Than 10 Microns, Respectively, As the Result 
of Proposed New Sources

    New compressor engines will be equipped with low nitrogen oxide 
emission precombustion chambers. Steam generators, heaters, and 
cogenerators also will be equipped with appropriate low nitrogen oxide 
combustion technology. Anode beds will be watered frequently to reduce 
reactive organic gas emissions.
    EPA also inquired if, in the absence of a State Implementation 
Plan, whether the impacts of continued and proposed NPR-1 operations 
would be in conformity with the provisions of the Federal Clean Air 
Act. NPR-1 will operate either under locally mandated New Source Review 
regulations if the State Implementation Plan is approved by EPA, or 
under Federally mandated New Source Review regulations if the plan is 
not approved. Further, operations regulated under New Source Review 
would be exempt from the conformity provisions as outlined in the March 
1993 draft Rule (55 FR 13866). It should also be pointed out that in 
1994, EPA will review the local Air Pollution Control District's 
proposed Federal operating permit program. Even if EPA approves the 
operating permit program, EPA would still retain the authority to veto 
permits that are not issued in accordance with the approved program.

9. Oils, Chemical, and Produced Waters Could Inadvertently Spill and 
Degrade Groundwater

    All spills will be cleaned up as they are identified in accordance 
with the NPR-1 Spill Prevention, Control, and Countermeasure Plan.

10. Development of 1,569 Acres of Wildlife Habitat On and Off NPR-1 and 
Potential for Adverse Impacts To Wildlife From Inadvertent Harassment, 
Vehicle Mortality and Contact With Hydrocarbons and/or Oil-Field 
Chemicals

    Preactivity surveys will be conducted by qualified personnel prior 
to any construction, maintenance, clean-up, or other ground disturbance 
in undeveloped areas to minimize the amount of habitat disturbed and to 
avoid protected species and their habitat to the maximum extent 
possible. Disturbed habitats will be revegetated as part of an ongoing 
habitat reclamation program.
    In 1987, the U.S. Fish and Wildlife Service rendered a non-jeopardy 
Biological Opinion for the continued operation and development of NPR-1 
at the maximum efficient rate of production. On October 9, 1991, 
consultation for maximum efficient rate production was reinitiated by 
DOE for the SEIS, and by letter dated May 28, 1993 (received by DOE on 
June 7, 1993), the U.S. Fish and Wildlife Service issued a draft 
Biological Opinion for this action which also concluded non-jeopardy. 
This consultation is still in progress, and when it is completed DOE 
will comply with the requirements contained in the new Biological 
Opinion. The U.S. Fish and Wildlife Service indicated by letter dated 
April 12, 1993, that the 1987 Biological Opinion will remain in effect 
for all activities specifically described therein until the current 
consultation is complete. DOE will continue to comply with the 
requirements of the 1987 Biological Opinion until such time as they are 
superseded by new requirements in subsequent Biological Opinions.
    Most impacts associated with the proposed action of the SEIS and 
the 1993 draft Biological Opinion (including those associated with no 
action) were addressed in the 1987 Biological Opinion. For those 
proposed new activities that were not so addressed, DOE will not make 
any irreversible or irretrievable commitments of resources which would 
foreclose the formulation or implementation of any reasonable and 
prudent alternatives needed to avoid violating section 7(a)(2) of the 
Endangered Species Act until the impacts of these new activities have 
been subjected to review under section 7 of the Endangered Species Act. 
EPA recommended that no Record of Decision be issued until a new final 
Biological Opinion had been issued, and discussed the need to prepare 
additional National Environmental Policy Act documentation should the 
final Biological Opinion require modified operations not evaluated in 
the SEIS. DOE believes that the limitation on proceeding with new 
activities pending receipt of a final Opinion assures compliance with 
the Endangered Species Act. Furthermore, DOE commits to completing such 
documentation if required by the new Opinion.
    EPA also questioned what steps DOE will take to prevent ingestion 
of chemicals by threatened, endangered and other animal species on NPR-
1. DOE has in place a comprehensive program to prevent the ingestion of 
oil field chemicals by wildlife. This program includes, but is not 
limited to, adherence to the facility Spill Prevention Control and 
Countermeasure Plan; proper storage, handling and disposal of chemical 
containers; procuring bulk chemicals whenever possible to eliminate 
storage in the field; proper management of hazardous wastes in 
conforming 90-day storage facilities; prompt evacuation of oily fluids 
from structures; managing current waste disposal sites in accordance 
with permit requirements; and remediating historical waste disposal 
sites. These standard management practices all provide protection from 
ingestion of oil field chemicals by wildlife.
    To further reduce the potential for adverse impacts to listed 
species, DOE agrees to implement the following mitigation activities 
addressed in the May 28, 1993 draft Biological Opinion:

    a. Continue to implement an endangered species program, 
including the NPR-1 Wildlife Management Plan;
    b. Continue to conduct the endangered species worker education/
training program;
    c. Continue to conduct preactivity surveys as appropriate to 
minimize habitat disturbances and harm or mortality to listed 
species;
    d. To the extent feasible, avoid sensitive habitats such as San 
Joaquin kit fox dens, giant and Tipton kangaroo rat burrows, and 
burrows potentially utilized by blunt-nosed leopard lizards;
    e. Refrain from destroying San Joaquin kit fox dens that cannot 
be avoided until approval is obtained from the U.S. Fish and 
Wildlife Service;
    f. Continue to implement a habitat reclamation program to 
reclaim disturbed areas that are no longer needed for oil-field 
operations;
    g. Minimize off-road vehicle travel;
    h. Prohibit employees from bringing pets onto NPR-1;
    i. Clean up oil and chemical spills in accordance with the Spill 
Prevention Control and Countermeasure Plan.
    j. Continue to evaluate sumps and catch basins to identify 
potential hazards to wildlife and remediate these hazards to the 
extent feasible;
    k. Continue to evaluate and, to the extent feasible, remediate 
well cellar covers posing hazards to wildlife; and
    l. Continue to report to the U.S. Fish and Wildlife Service on 
an annual basis on the status of the endangered species program.

11. Potential Disturbance of Cultural Resources From Development of 
1,569 Acres On and Off NPR-1

    NPR-1 will develop and implement a cultural resource management 
plan for the protection of cultural resources.

12. Potential for Well Blowouts and Gas Explosions From Closed 
Compressor Facilities

    DOE will continue to conduct internal safety appraisals of all NPR-
1 facilities.

Unavoidable Adverse Impacts

    The unavoidable adverse impacts resulting from the proposed action 
that cannot be fully mitigated are as follows:
    1. Some soil erosion would occur, especially in areas of new 
construction if major storms occur before soil stabilization measures 
take effect.
    2. There is some potential for subsidence as the result of oil, 
gas, and water withdrawals from underlying geologic structures.
    3. Inadvertent releases of oil or other oil field chemicals that 
are not entirely recovered on a timely basis could, over a period of 
time, migrate into and degrade groundwater aquifers.
    4. Small net increases in the NPR-1 emissions of carbon monoxide 
and particulate matter could occur, resulting in minor increases in 
ambient concentrations of these pollutants in western Kern County.
    5. There would be unavoidable, long-term adverse impacts to a net 
of 74 acres of wildlife habitat on and off NPR-1 as a result of 
permanent construction disturbances. (See Table 2.2-1 on page 2-11 of 
the final SEIS.)
    6. The loss of habitat, potential exposure to hydrocarbons or other 
oil field chemicals and site activities may result in the death, injury 
and displacement of some plants and animals, including threatened and 
endangered species.
    7. There is a very small potential that produced wastewater 
disposed of into disposal wells and sumps might degrade off-site 
groundwaters.
    8. Increased consumption of energy and fresh water supplies would 
occur.

Conclusion

    The production of NPR-1 in accordance with the Naval Petroleum 
Reserves Production Act of 1976 continues to serve a vital role in 
National defense, U.S. Treasury revenues, and local, regional, and 
National economics. Until Congress and the President modify the mission 
of DOE with respect to the Naval Petroleum Reserves, DOE will continue 
to produce NPR-1 in the most efficient and environmentally responsible 
manner possible.

    Issued at Washington DC, this 25th day of February, 1994.
Marvin I. Singer,
Acting Assistant Secretary for Fossil Energy.
[FR Doc. 94-14553 Filed 6-14-94; 8:45 am]
BILLING CODE 6450-01-P