[Federal Register Volume 60, Number 100 (Wednesday, May 24, 1995)]
[Notices]
[Pages 27508-27523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12370]



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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5209-1]


Final NPDES General Permit for Offshore Oil and Gas Operations on 
the Outer Continental Shelf (OCS) and State Waters of Alaska: Arctic 
NPDES General Permit (No. AKG284200)

AGENCY: Environmental Protection Agency.

ACTION: Notice of final NPDES general permit.

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SUMMARY: The Regional Administrator, Region 10, is issuing the final 
Arctic National Pollutant Discharge Elimination System (NPDES) general 
permit which will authorize offshore oil and gas stratigraphic test and 
exploration wells in the federal and state waters of the Beaufort and 
Chukchi Seas. Development and production wells are not authorized to 
discharge by this general permit.
    Notice of the draft Arctic general permit was published September 
20, 1995 (59 FR 48314-48324) and in two Alaskan newspapers. A brief 
description of the basis for the conditions and requirements of the 
proposed permit is given in the fact sheet published at the 
aforementioned Federal Register citation.
    The final permit which follows establishes effluent limitations, 
standards, prohibitions, and other conditions on discharges from 
facilities in the area of coverage. The conditions are based on 
material contained in the administrative record. Changes made in 
response to comments received during the public comment period are 
addressed in full in a document entitled ``Response to Comments 
Received on the Proposed Issuance of the Arctic General NPDES Permit.'' 
This document is being sent to all commenters and is available to other 
parties upon request at the address provided in this document.

DATES: The general permit shall become effective June 23, 1995.

ADDRESSES: Unless other wise noted in the permit, correspondence 
regarding this permit should be sent to Environmental Protection 
Agency, Region 10, Attn: Ocean Programs Section, WD-137, 1200 Sixth 
Avenue, Seattle, Washington, 98101.
    Administrative Record: The administrative record for the final 
permit is available for public review at EPA, Region 10, at the 
preceding address.

FOR FURTHER INFORMATION CONTACT: Anne Dailey, of Region 10, at the 
preceding address or telephone (206) 553-2110. Copies of the final 
general permit, the response to comments, and today's publication will 
be provided upon request from the Region 10 Public Information Center 
at 1-800-424-4EPA (4372) or 206-553-1200.

SUPPLEMENTARY INFORMATION:

Organization of This Notice

I. Introduction
II. Basis for Permit Conditions
III. Changes Made from Draft to Final Permit
IV. Other Legal Requirements
    A. Oil Spill Requirements
    B. Endangered Species Act
    C. Coastal Zone Management Act
    D. Marine Protection, Research and Sanctuaries Act
    E. State Water Quality Standards and State Certification
    F. Executive Order 12291
    G. Paperwork Reduction Act
    H. Regulatory Flexibility Act
V. References
    Appendix A: List of Changes from Draft to Final Permit

I. Introduction

    EPA issues this general permit pursuant to its authority under 
sections 301(b), 304, 306, 307, 308, 401, 402, 403, and 501 of the 
Clean Water Act and the U.S. Coast Guard regulations (33 CFR part 151). 
This permit authorizes discharges from oil and gas stratigraphic and 
exploratory wells in the area of coverage on the Alaskan Outer 
Continental Shelf and contiguous state waters in the Beaufort and 
Chukchi Seas. The area of coverage is defined as Federal waters of the 
Beaufort Sea and Chukchi Sea planning basins as defined by Minerals 
Management Service (MMS) (see U.S. Dept. of the Interior, 1992) and 
State waters contiguous to the landward boundary of the Beaufort Sea 
and Chukchi Sea planning basins.
    Public notice for the draft permit was published in the Federal 
Register on September 20, 1994 (59 FR 48314-48324) and in the Anchorage 
Times and [[Page 27509]] in the Arctic Sounder on September 20, 1994. 
The comment period was scheduled to close on November 21, 1994. In 
response to requests, the comment period was formally extended to close 
January 20, 1995. Public hearings were tentatively scheduled to be held 
in Barrow and Anchorage, Alaska but were canceled due to lack of 
interest.
    The following parties submitted written comments: Alaska and 
Inuvialuit Beluga Whale Committee, Alaska Oil and Gas Association, 
American Petroleum Institute, Baker Hughes Inteq, British Petroleum, 
Exxon Exploration Company, Marathon Oil Company, Charles Etok 
Edwardsen, Jr., James McCollough, M-I Drilling Fluids, National Marine 
Fisheries Service, Native Village of Point Lay, Alaska, North Slope 
Borough, Trustees for Alaska, U.S. Department of Energy, U.S. 
Department of the Interior, and Unocal Energy Resources Division.

II. Basis for Permit Conditions

    Section III of the fact sheet for the draft permit (59 FR 48315-
48317, September 20, 1995) is incorporated by reference, as 
supplemented and amended below. The fact sheet for the draft permit, 
the response to comments document, the final Ocean Discharge Criteria 
Evaluation, and the 401 Certification issued by the State of Alaska set 
forth the principal facts and the significant factual, legal, and 
policy questions considered in the development of the terms and 
conditions of the final permit.

III. Changes Made From Draft to Final Permit

    Changes have been made from the draft permit to the final permit in 
response to public comments received on the draft permit, the final 
consistency determination from the State of Alaska, and the final 401 
Certification from the State of Alaska. In developing the final permit, 
Region 10 has considered all comments received. Every attempt has been 
made to thoroughly respond to comments raised during the comment period 
in the response to comments document, which is available upon request. 
In some instances, minor wording changes have been made to the proposed 
permit language in order to clarify some points as a result of 
comments. In response to other comments, there have been substantive 
changes made to the permit.
    The following identifies several specific areas of change, among 
others, which have been embodied in the final permit: The mud plan 
requirements have been refined and clarified; toxicity testing 
requirements have been clarified; discharge restrictions have been 
placed on Omalik Lagoon, Naokok Pass, and Pingaorarok Pass; the areas 
requiring environmental monitoring have been revised and clarified; 
additional controls on sanitary wastes have been included, and a 
prohibition on the discharge of putrescible wastes has been added. Many 
comments were made regarding the Best Management Practices Plan 
requirements and several changes were made in response to comments. 
Appendix A to this notice identifies the changes made from the draft to 
the final permit. The detailed response to public comments is available 
upon request from the Region 10 Public Information Center at 1-800-424-
4EPA (4372), 1-206-553-1200, or from the address listed above.
IV. Other Legal Requirements

A. Oil Spill Requirements

    Oil spill requirements in the final permit have been modified to 
reflect Executive Order 12777 which implements provisions of the Oil 
Pollution Act of 1990. E.O. 12777 removed offshore facilities from 
jurisdiction under EPA and placed them under Department of Interior 
(DOI) jurisdiction. Specifically within DOI, Minerals Management 
Service has the responsibility.
    Offshore operators are now required to submit Oil Spill Contingency 
Plans to MMS for review. Additionally, operators in state waters are 
required to submit Oil Discharge Prevention and Contingency Plans to 
the Alaska Department of Environmental Conservation for review. With 
the new requirements, operators in federal or state waters are no 
longer required to develop Spill Prevention, Control, and Contingency 
(SPCC) plans under section 311 of the Act.

B. Endangered Species Act

    EPA has informally consulted with the U.S. Fish and Wildlife 
Service (USFWS) and the National Marine Fisheries Service (NMFS) 
pursuant to section 7 consultation of the Endangered Species Act (ESA). 
EPA has addressed ESA issues in the Final Ocean Discharge Criteria 
Evaluation (U.S. EPA, 1995a) and the Final Biological Evaluation (U.S. 
EPA, 1995b) for the area of coverage. Based upon information in the 
aforementioned documents, Region 10 concluded that this final permit is 
not likely to adversely affect any endangered or threatened species nor 
adversely affect its critical habitat. EPA requested comments from 
USFWS and the NMFS on this determination. Comments raised by the USFWS 
and NMFS have been addressed. Both agencies concurred in writing with 
EPA's determination of no adverse effect.

C. Coastal Zone Management Act

    The proposed permit and consistency determination were submitted to 
the State of Alaska for state interagency review at the time of public 
notice. The State of Alaska has concurred that the activities allowed 
by this permit are consistent with local and state Coastal Management 
Plans.

D. Marine Protection, Research and Sanctuaries Act

    No marine sanctuaries as designated by this Act exist in the 
vicinity of the permit areas.

E. State Water Quality Standards and State Certification

    The State of Alaska has certified pursuant to section 401 of the 
Clean Water Act that the discharges authorized in state waters by this 
permit comply with state water quality standards and regulations. All 
conditions and stipulations included in the certification have been 
included in the final permit.

F. Executive Order 12866

    The Office of Management and Budget has exempted this action from 
the review requirements of Executive Order 12866 pursuant to section 
8(b) of that order.

G. Paperwork Reduction Act

    EPA has reviewed the requirements imposed on regulated facilities 
in this draft general permit under the Paperwork Reduction Act of 1980, 
44 U.S.C. 3501 et seq. The information collection requirements have 
already been approved by the Office of Management and Budget (OMB) in 
submissions made for the NPDES permit program under the provisions of 
the Clean Water Act. In addition, the environmental monitoring 
requirements pursuant to section 403(c) of the Clean Water Act in Part 
II.B.4. of this permit are similar to the monitoring requirements that 
were approved by OMB for the previously issued Beaufort Sea II and 
Chukchi Sea general permits.

H. The Regulatory Flexibility Act

    After review of the facts presented in the notice of intent printed 
above, I hereby certify, pursuant to the provisions of 5 U.S.C. 605(b), 
that this general permit will not have a significant impact on a 
substantial number of small entities. This [[Page 27510]] certification 
is based on the fact that the regulated parties have greater than 500 
employees and are not classified as small businesses under the Small 
Business Administration regulations established at 49 FR 5024 et seq. 
(February 9, 1984). These facilities are classified as Major Group 13--
Oil and Gas Extraction SIC 1311 Crude Petroleum and Natural Gas.

    Dated: April 12, 1995.
Chuck Clarke,
Regional Administrator, Region 10.
V. References

U.S. Department of the Interior. 1992. Outer Continental Shelf 
Natural Gas and Oil Resource Management: Comprehensive Program 
(1992-1997). Proposed Final. Minerals Management Service.
U.S. EPA. Region 10. 1995a. Final Ocean Discharge Criteria 
Evaluation. Prepared with assistance from Tetra Tech, Inc. February 
1995.
U.S. EPA. Region 10. 1995b. Final Biological Evaluation. Prepared 
with assistance from Tetra Tech, Inc. February 1995.

Appendix A: List of Changes Made From the Draft to Final Permit

    Below is a list of final permit sections which have been modified 
since the draft permit was proposed. Along with each permit section 
identified below, the specific response to comment number and/or the 
certification stipulation which explains the rationale and basis for 
the change is noted.

Cover Page
    Response to comment 22
Part I.A.
    401 Certification, Stipulation 1
Part I.F.
    401 Certification, Stipulation 2
Part II.A.1.
    Footnote 1, 401 Certification, Stipulation 3
    Footnote 2, Response to comment 11(c)
    Footnote 3, 401 Certification, Stipulation 4
    Footnote 4, Response to comment 30(a)
Part II.A.1.c.
    Response to comment 11(c)
Part II.A.1.d.
    401 Certification, Stipulation 5 and Response to comment 12
Part II.A.1.e.
    Response to comment 12
Part II.A.1.g.
    Response to comment 13(a)
Part II.A.1.h.
    Response to comment 14(a)
Part II.A.1.k.
    Response to comment 8(d)
Part II.A.3.b.
    Response to comment 1(b) and 2
Part II.A.4.
    Response to comment 5(c)
Part II.B.
    Table, 401 Certification, Stipulation 6
    Footnote 2, Response to comment 11(c)
    Footnote 5, 401 Certification, Stipulation 7
    Footnote 7, 401 Certification, Stipulation 8
Part II.C.
    Response to comment 22
Part II.C.1.
    Response to comment 11(c)
Part II.D.
    Footnote 2, Response to comment 11(c) and 401 Certification, 
Stipulation 9
Part II.E.4.
    401 Certification, Stipulation 10
Part II.F.4.
    Update reference to current document
Part II.F.4.d.
    Response to comment 26(n)
Part II.F.5.
    401 Certification, Stipulation 11
Part II.F.6.
    401 Certification, Stipulation 12
Part III.F.
    401 Certification, Stipulation 13
Part VI.45.
    Response to comment 17
Part VI.49.
    401 Certification, Stipulation 8 and 10
Part VI.52.
    Response to comment 30(a)
Part VI.58.
    Response to comment 30(a)
Part VI.
    Definition numbers have been changed to reflect the additional 
definitions.
Part VII.
    A reference section is now included

Final NPDES General Permit, U.S. Environmental Protection Agency, 1200 
Sixth Avenue, Seattle, Washington 98101

AUTHORIZATION TO DISCHARGE UNDER THE NATIONAL POLLUTANT DISCHARGE 
ELIMINATION SYSTEM FOR OIL AND GAS EXPLORATION FACILITIES ON THE OUTER 
CONTINENTAL SHELF AND CONTIGUOUS STATE WATERS
    In compliance with the provisions of the Clean Water Act, 33 U.S.C. 
1251 et seq., the following discharges are authorized in accordance 
with this National Pollutant Discharge Elimination System (``NPDES''):

------------------------------------------------------------------------
                                                               Discharge
                        Discharge name                            No.   
------------------------------------------------------------------------
Drilling Fluid and Drilling Cuttings.........................       001 
Deck Drainage................................................       002 
Sanitary Wastes..............................................       003 
Domestic Wastes..............................................       004 
Desalination Unit Wastes.....................................       005 
Blowout Preventer Fluid......................................       006 
Boiler Blowdown..............................................       007 
Fire Control System Test Water...............................       008 
Non-Contact Cooling Water....................................       009 
Uncontaminated Ballast Water.................................       010 
Bilge Water..................................................       011 
Excess Cement Slurry.........................................       012 
Mud, Cuttings, Cement at Seafloor............................       013 
Test Fluids..................................................       014 
------------------------------------------------------------------------

    From oil and gas exploratory facilities in offshore areas (defined 
in 40 CFR part 435, subpart A), to all federal waters of the U.S. 
located in the Beaufort Sea and Chukchi Sea planning basins as defined 
by U.S. Department of Interior, Minerals Management Service (1992) and 
to all state waters contiguous to the Beaufort Sea and Chukchi Sea 
Minerals Management Service planning areas in accordance with effluent 
limitations, monitoring and reporting requirements, and other 
conditions set forth in Parts I through V herein. The discharge of 
pollutants not specifically set out in this permit is not authorized. 
Permittees who do not request and receive coverage under this general 
permit as described in Part I are not authorized to discharge to the 
specified waters unless an individual NPDES permit has been issued to 
the permittee by EPA, Region 10.
    This permit shall be modified or revoked at any time if, on the 
basis of any new data, the Director determines that such data would 
have justified the application of different permit conditions at the 
time of issuance. Permit modification or revocation will be conducted 
in accordance with 40 CFR 122.62, 122.63, and 122.64. In addition to 
any other grounds specified herein, this permit shall be modified or 
revoked at any time if, on the basis of any new data, the Director 
determines that continued discharges may cause unreasonable degradation 
of the marine environment in accordance with section 403(c) and as 
promulgated in 40 CFR part 125, subpart M.
    Under 40 CFR 122.44(c)(3), if an applicable standard or limitation 
is promulgated under sections 301(b)(2)(C) and (D), 304(b)(2), and 
307(a)(2) and that effluent standard or limitation is more stringent 
than any effluent limitation in the permit or controls a pollutant not 
limited in the permit, the permit shall be promptly modified or revoked 
and reissued to conform to that effluent standard or limitation.
    This permit shall become effective on June 23, 1995.
    This permit and the authorization to discharge shall expire at 
midnight on June 23, 2000.

    Signed this 12th day of April 1995.
Chuck Clarke,
Regional Administrator.

Table of Contents

I. Notification Requirements
    A. Requests for Coverage and Authorization to Discharge Under 
the General Permit
    B. Authorization to Discharge
    C. Notice of Intent to Commencement of Discharges
    D. Sites Requiring Environmental Surveys
    E. Termination of Discharges
    F. Submission of Requests for Coverage and Authorization, Notice 
of Intent to Commence Discharge, and Other Reports [[Page 27511]] 
    G. Changes from Authorization Under General Permit to 
Authorization Under an Individual Permit
II. Specific Limitations and Monitoring Requirements
    A. Drilling Mud and Drilling Cuttings (Discharge 001)
    B. Deck Drainage, Sanitary Wastes, and Domestic Wastes 
(Discharges 002-004)
    C. Miscellaneous Discharges (Discharges 005-013)
    D. Test Fluids (Discharge 014)
    E. General Discharge Limitations for All Waste Streams (001 
through 014)
    F. Best Management Practices Plan Requirement
III. Monitoring, Recording and Reporting Requirements
    A. Representative Sampling (Routine and Non-Routine Discharges)
    B. Reporting of Monitoring Results
    C. Monitoring Procedures
    D. Additional Monitoring by Permittee
    E. Records Contents
    F. Retention of Records
    G. Twenty-four Hour Notice of Noncompliance Reporting
    H. Other Noncompliance Reporting
    I. Changes in Discharge of Toxic Substances
IV. Compliance Responsibilities
    A. Duty to Comply
    B. Penalties for Violations of Permit Conditions
    C. Need to Halt or Reduce Activity not a Defense
    D. Duty to Mitigate
    E. Proper Operation and Maintenance
    F. Removed Substances
    G. Bypass of Treatment Facilities
    H. Upset Conditions
    I. Toxic Pollutants
    J. Planned Changes
    K. Anticipated Noncompliance
V. General Provisions
    A. Permit Actions
    B. Duty to Reapply
    C. Duty to Provide Information
    D. Other Information
    E. Signatory Requirements
    F. Availability of Reports
    G. Inspection and Entry
    H. Oil and Hazardous Substance Liability
    I. Property Rights
    J. Severability
    K. Transfers
    L. State Laws
    M. Reopener Clause
VI. Definitions and Acronmyms
VII. References
I. Notification Requirements

    This permit does not authorize the discharge of pollutants to 
waters of the United States until the following three requirements, 
which are set out in more detail in subparagraphs A. through C. below, 
are met. First, the permit applicant must send in a request to be 
covered by the permit and authorization to discharge. Second, the 
applicant must receive from EPA an authorization to discharge. Third, 
once authorized, the permittee must notify EPA of its intent to 
discharge at least seven days in advance of the discharge. Failure to 
comply with any of these requirements will vitiate any prior 
authorization to discharge under this general permit.

A. Requests for Coverage and Authorization to Discharge Under the 
General Permit

    Persons requesting coverage under this general permit shall provide 
to EPA written request to be covered by this permit at least 60 days 
prior to initiation of discharges. All requests for coverage and 
authorization to discharge under the general permit shall be provided 
to the Alaska Department of Environmental Conservation Joint Pipeline 
Regional Office in Anchorage. The request shall include the following 
information:
    1. Name and address of the permittee.
    2. Lease and block numbers of operations and discharges.
    3. Any discharge or operating conditions which will require special 
monitoring (Part II.A.4.).

B. Authorization to Discharge

    The permittee's discharges are not authorized until the permittee 
receives from EPA written notification that EPA has assigned a permit 
number under this general permit to operations at the discharge site. A 
permit number cannot be assigned until the following information is 
received. This information shall be provided to EPA in the request for 
coverage, if possible, but in no case less than 30 days prior to 
commencement of discharges.
    1. Name and location of discharge site, including lease block 
number and approximate coordinates.
    2. Range of water depths (below mean lower low water) in lease 
block, and depth of discharge.
    3. Initial date and expected duration of operations.

C. Notice of Intent to Commencement of Discharges

    The permittee shall notify EPA, Region 10, no later than 7 days 
prior to initiation of discharges from the facility and from each well. 
The notification shall include the exact coordinates (latitude and 
longitude) and water depth of the discharge site, and may be oral or in 
writing. The Certification of Planning for Drilling Muds (see Part 
II.A.1.f.) and the Best Management Practices Plan Certification (see 
Part II.F.1.) shall also be submitted no later than the notification of 
commencement of discharges. If notification is given orally, written 
confirmation must follow within 7 days.

D. Sites Requiring Environmental Surveys

    All operators that locate within the areas covered by this general 
permit shall submit to EPA copies of any exploration plans, biological 
surveys, and/or environmental reports required by the Regional 
Supervisor, Field Operations of the Minerals Management Service, State 
of Alaska, for the identification and/or protection of biological 
populations or habitats. Permittees shall notify Region 10 in writing 
when no exploration plan or environmental report will be sent.

E. Termination of Discharges

    The permittee shall notify EPA within 30 days following cessation 
of discharges from each well and from the discharge site. The 
notification may be provided in a DMR or under separate cover.

F. Submission of Requests for Coverage and Authorization, Notice of 
Intent to Commence Discharge, and Other Reports

    Reports and notifications required herein shall be submitted to the 
following addresses.
    All requests for coverage and authorization and notices of intent:

Director, Water Division, U.S. Environmental Protection Agency, Reg. 
10, Attn: Ocean Programs Section, WD-137, 1200 Sixth Avenue, Seattle, 
Washington 98101, (206) 553-1583
Alaska Department of Environmental Conservation, Pipeline Corridor 
Regional Office, Attn: Water Quality and Wastewater Programs, 411 West 
4th Ave., Suite 2C, Anchorage, Alaska 99501

    All monitoring reports and notifications of non-compliance:

Director, Water Division, U.S. Environmental Protection Agency, Reg. 
10, Attn: Water Compliance Section, WD-135, 1200 Sixth Avenue, Seattle, 
Washington 98101, (206) 553-6513

G. Changes from Authorization Under General Permit to Authorization 
Under an Individual Permit

    1. The Director may require any permittee discharging under the 
authority of this permit to apply for and obtain an individual NPDES 
permit when any one of the following conditions exist:
    a. The discharge(s) is (are) a significant contributor of 
pollution.
    b. The permittee is not in compliance with the conditions of this 
general permit. [[Page 27512]] 
    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 source.
    d. A Water Quality Management Plan containing requirements 
applicable to such point source is approved.
    e. The point sources 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, 
or
    (4) Require the same or similar monitoring.
    f. In the opinion of the Director, the discharges are more 
appropriately controlled under an individual permit than under a 
general NPDES permit.
    2. The Director may require any permittee authorized by this permit 
to apply for an individual NPDES permit only if the permittee has been 
notified in writing that an individual permit application is required.
    3. Any permittee authorized by this permit may request to be 
excluded from the coverage of this general permit by applying for an 
individual permit. The owner or operator shall submit an application 
together with the reasons supporting the request to the Director no 
later than 90 days after the effective date of the permit.
    4. When an individual NPDES permit is issued to a permittee 
otherwise subject to this general permit, the authorization to 
discharge under this general permit is automatically terminated on the 
effective date of the individual permit.

II. Specific Limitations and Monitoring Requirements

    During the effective period of this permit, operators authorized to 
discharge under the general permit are authorized to discharge the 
enumerated pollutants subject to the restrictions set forth herein. 
This permit does not authorize the discharge of any waste streams, 
including spills and other unintentional or non-routine discharges of 
pollutants, that are not part of the normal operation of the facility 
or any pollutants that are not ordinarily present in such waste 
streams. This permit does not authorize the discharge of any pollutants 
not specifically set out in Part II.A.1. of this permit.
    The operators shall limit discharges as specified in the permit 
below. All figures represent maximum effluent limits unless otherwise 
indicated. The permittee shall comply with the following effluent 
limits at all times unless provided for by this permit (e.g., 
unanticipated bypass) regardless of the frequency of monitoring or 
reporting required by other provisions of this permit.
A. Drilling Mud and Drilling Cuttings (Discharge 001)

1. Effluent Limitations and General Requirements
    The permittee may discharge drilling muds and drilling cuttings 
subject to the effluent limitations and related requirements set forth 
herein. Permittee shall limit and monitor the following parameters in 
accordance with Parts II.A.2.-4., II.E., III., and the requirements set 
out herein.

                                                       Effluent Limits and Monitoring Requirements                                                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Effluent characteristic        Discharge limitation      Measurement frequency       Sample type/method                 Reported value(s)           
--------------------------------------------------------------------------------------------------------------------------------------------------------
Toxicity......................  30,000 ppm SPP minimum...  See Part II.A.1.g.,k.....  Drilling Fluids Toxicity  96 hr LC50.                             
                                                                                       Test.                                                            
Flow rate/Water depth \1\                                                                                                                               
    0-5 meters................  No discharge.............  Hourly during discharge..  Estimate................  Maximum hourly rate.                    
    >5-20 meters..............  500 bbl/hr...............                                                                                               
    >20-40 meters.............  750 bbl/hr...............                                                                                               
    >40 meters................  1000 bbl/hr..............                                                                                               
Oil-based fluids..............  No discharge.............  Daily and before bulk      Grab/Static Sheen Test    Presence or absence.                    
                                                            discharges.                \2\.                                                             
Diesel oil \3\................  No discharge.............  Daily and before bulk      Grab/GC.................  Presence or absence.                    
                                                            discharges.                                                                                 
Free oil......................  No discharge.............  Daily and before bulk      Grab/Static Sheen Test    Number of days sheen observed.          
                                                            discharge.                 \2\.                                                             
Hg and Cd In barite...........  1 mg Hg/kg barite, 3 mg    Once per well............  AAS.....................  Concentrations (mg/kg, dry wt.).        
                                 Cd/kg barite.                                                                                                          
Total volume..................  (\4\)....................  Daily....................  Estimate................  Monthly total.                          
Mud plan......................  NA.......................  Prior Certification......  See Parts II.A.d.,e.,f..  NA.                                     
Chemical inventory............  NA.......................  Once/mud system..........  See Part II.A.i.........  NA.                                     
Chemical analysis.............  NA.......................  Once/mud system..........  See Part II.A.j.........  NA.                                     
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Maximum flow rate of total muds and cuttings into waters of given depths and under open water, broken ice, and stable ice conditions. A 9:1         
  predilution is required in open water, under-ice, and unstable or broken ice conditions.                                                              
\2\ For discharges during stable ice, below ice, to unstable ice or broken ice conditions, a water temperature that approximates surface water          
  temperatures after breakup shall be used.                                                                                                             
\3\ The measurement for diesel oil is daily if muds and cuttings fail static sheen test, before bulk discharges, and end-of-well.                       
\4\ Exploratory drilling discharges are limited to discharges from no more than five wells at a single drilling site. If a step-out or sidetracked well 
  is drilled from a previously drilled well hole, the step-out well is counted as a new well. Requests to discharge the wastes from more than five wells
  per site will be considered by the Director on a case-by-case basis.                                                                                  

    a. No discharge of oil-based muds. Permittee shall not discharge 
oil-based drilling muds (containing oil as the continuous phase with 
water as the dispersed phase).
    b. No discharge of diesel oil. Permittee shall not discharge water-
based drilling muds which have contained diesel oil or cuttings 
associated with any muds which have contained diesel oil. Compliance 
with the limitation on diesel oil shall be demonstrated by gas 
chromatography (GC) analysis of drilling mud collected from the mud 
used at the greatest well depth (``end-of-well'' sample) and of any 
muds or cuttings which fail the daily Static Sheen Test (Part II.A.1.c. 
below). In all cases, the determination of the presence 
[[Page 27513]] or absence of diesel oil shall be based on a comparison 
of the GC spectra of the sample and of diesel oil in storage at the 
facility. The method for GC analysis shall be that described in 
``Analysis of Diesel Oil in Drilling Fluids and Drill Cuttings'' 
(CENTEC, 1985) available from EPA, Region 10. Gas chromatography/mass 
spectrometry (GC/MS) may be used if an instance should arise where the 
operator and EPA determine that greater resolution of the drilling mud 
``fingerprint'' is needed for a particular drilling mud sample.
    The end-of-well analysis for diesel oil shall be done in 
conjunction with the end-of-well analyses required in Part II.A.1.j. 
The results and raw data, including the spectra, from the GC analysis 
shall be provided to the Director by written report (1) within 30 days 
of a positive result with the Static Sheen Test when a discharge has 
occurred, or (2) for the end-of-well analysis, within 45 days of well 
completion.
    c. No discharge of free oil. There shall be no discharge of free 
oil as a result of the discharge of drill cuttings and/or drilling 
muds. The permittee shall perform the Static Sheen Test on separate 
samples of drilling muds and cuttings on each day of discharge and 
prior to bulk discharges. The test shall be conducted in accordance 
with ``Approved Methodology'': Laboratory Sheen Tests for the Offshore 
Subcategory, Oil and Gas Extraction Industry `` which is appendix 1 of 
subpart A of 40 CFR part 435. For discharges during stable ice, below 
ice, to unstable ice or broken ice conditions, a water temperature that 
approximates surface water temperatures at breakup shall be used. The 
discharge of drilling muds or cuttings which fail the Static Sheen Test 
is prohibited.
    Whenever muds or cuttings fail the Static Sheen Test and a 
discharge has occurred in the past 24 hours, the permittee is required 
to analyze an undiluted sample of the material which failed the test to 
determine the presence or absence of diesel oil. The determination and 
reporting of results shall be performed according to Part II.A.1.b. 
above.
    d. Planned discharge of drilling muds and additives--Mud Plan. The 
permittee shall develop and have on-site at all times a written 
procedural plan for the formulation and control of drilling mud/
additive systems (hereafter ``the mud plan''). The mud plan must 
specify the mud/additive systems to be used. The plan shall be 
implemented during drilling operations.
    The mud plan shall be available to the Agency upon request. Prior 
to commencement of discharges from a given operation, the permittee 
shall provide EPA and ADEC with written certification that a mud plan 
does exist and is available to the agencies (See Parts I.C. and 
II.A.1.f. of the permit).
    At a minimum, the mud plan shall provide the following information:
    (1) Types of muds proposed for discharge, the well name, well 
number, NPDES permit number and mud types as basic plan identification 
for each well drilled.
    (2) Specific for use at each well and mud type, a list including 
commercial product names, descriptions of the products, and the maximum 
proposed discharge concentrations for each product. Concentrations 
shall be commonly stated in terms of ``lb/bbl,'' ``gal/bbl;'' although 
``% (wt)'' or ``% v/v'' (% volume oil/volume mud) may be appropriate in 
some instances. Each mud/additive system shall be clearly labelled with 
respect to mud type (e.g., KCl/polymer mud, freshwater lignosulfonate 
mud). Components of the basic mud shall be listed separately from 
specialty or contingency additives which may be used.
    (3) A record of the operator's determination of how discharge is 
expected to comply with the 30,000 ppm SPP toxicity limitation. 
Operator's determination must be based upon, but not necessarily 
limited to, the following criteria:
    (a) Estimate of worst-case cumulative discharge toxicity based on 
additive toxicity estimations or commercially calculated discharge 
toxicity estimations.
    (b) Estimations of discharge toxicity based on the use of mineral 
oil pills (and subsequent discharge of residual mineral oil 
concentrations (see Part II.A.1.g. below) must be estimated separately 
from the proposed mud/additive system.
    (c) Where possible, overall toxicity shall be minimized.
    (4) A clearly stated procedure for determining whether or not an 
additive not originally planned for or included in toxicity estimations 
above may be used and discharged.
    (5) An outline of the mud planning process which shall be 
consistent with other permit requirements. Names and titles of 
personnel responsible for the mud planning process shall be included.
    e. Drilling mud and additive formulations. Only those drilling 
muds, specialty additives, and mineral oil pills that meet the criteria 
of this permit and are contained in the operator's mud plan (see Part 
II.A.1.d. above) shall be discharged. In no case shall toxicity of the 
discharged mud exceed the toxicity limit of 30,000 ppm SPP (see Part 
II.A.1. above).
    f. Certification of planning for drilling mud discharge. For each 
well the operator shall submit written certification which states that 
a mud plan is complete, on-site, and available upon request. In 
addition, each certification shall identify the well it pertains to by 
well name, well number, and the NPDES permit number. The certification 
shall be submitted no later than the written notice of intent to 
commence discharge (see Part I.C.).
    If the operator elects to use a particular drilling mud/additive 
system on subsequent wells, the original mud plan may be re-used. 
Information identifying the plan (see Part II.A.1.d(1), above), 
however, must reflect use of the plan for the current well.
    g. Restrictions on the use of a mineral oil pill in drilling fluid. 
The discharge of residual amounts of mineral oil pills (mineral oil 
plus additives) is authorized by this permit provided that the mineral 
oil pill and at least a 50 bbl buffer of drilling fluid on either side 
of the pill are removed from the circulating drilling fluid system and 
not discharged to the waters of the United States. In the event that 
more than one pill is applied to a single well, the previous pill and 
buffer shall be removed prior to application of a subsequent pill. 
Residual mineral oil concentration in the discharged mud shall not 
exceed 2% v/v (API Retort Test) (see Part II.A.1.g.[9] below). The 
discharged mud must comply with all permit conditions, including no 
discharge of free oil.
    Should drilling mud containing residual mineral oil pill (after 
pill and buffer removal) be discharged, the following information shall 
be reported within 60 days of discharge:
    (1) Dates of pill application, recovery, and discharge;
    (2) Results of the Drilling Fluids Toxicity Test on samples of:
    (a) The mud before each pill is added and
    (b) The mud after removal of each pill and buffer (taken when 
residual mineral oil pill concentration is expected to be greatest)
    (3) Name of spotting compound and mineral oil products used;
    (4) Volumes of spotting compound, mineral oil, water, and barite in 
the pill;
    (5) Total volume of mud circulating prior to pill application, 
volume of pill formulated, and volume of pill circulated;
    (6) Volume of pill recovered, volume of mud buffer recovered, and 
volume of mud circulating after pill and buffer recovery;

[[Page 27514]]

    (7) Percent recovery of the pill (include calculations);
    (8) Estimated concentrations of residual spotting compound and 
mineral oil in the sample of mud discharged, as determined from amounts 
added and total mud volume circulating prior to pill application;
    (9) Measured oil content of the mud samples, as determined by the 
API retort method; and
    (10) An itemization of other drilling fluid specialty additives 
contained in the discharged mud.
    h. Mercury and cadmium content of barite. The permittee shall not 
discharge a drilling mud to which barite was added if such barite 
contained mercury in excess of 1 mg/kg or cadmium in excess of 3 mg/kg 
(dry weight basis). The permittee shall analyze a representative sample 
of stock barite once prior to drilling each well and submit the results 
for total mercury and total cadmium in the Discharge Monitoring Report 
upon well completion. If more than one well is drilled at a site, new 
analyses are not required for subsequent wells if no new supplies of 
barite have been received since the previous analysis. In this case, 
the DMR should state that no new barite was received since the last 
reported analysis. Operators may provide certification, as documented 
by the supplier(s), that the barite 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 atomic absorption spectrophotometry and results expressed 
as mg/kg (dry weight) of barite.
    i. Chemical inventory. For each mud system discharged, the 
permittee shall maintain a precise chemical inventory of all 
constituents added downhole, including all drilling mud additives used 
to meet specific drilling requirements. The permittee shall report the 
following for each mud system:
    (1) Base mud type (as identified in mud plan);
    (2) Name and total amount of each constituent in discharged mud;
    (3) The total volumes of mud created and added downhole; and
    (4) Maximum concentration of each constituent in the discharged 
mud.
    In addition, for each mud system discharged, the permittee shall 
report the following:
    (5) The total volumes of mud discharged; and
    (6) The estimated amount of each constituent discharged.
    j. Chemical analysis. The permittee shall analyze each discharged 
mud system containing a mineral oil lubricity and/or spotting agent. 
Samples shall be collected when the mineral oil additive concentration 
is at its maximum value. If no mineral oil is used, the analysis shall 
be done on a drilling mud sample collected from the mud system used at 
the greatest well depth. All samples shall be collected prior to any 
predilution. Each drilling mud sample shall be of sufficient size to 
allow for both the chemical testing described here and the toxicity 
testing described below in Part II.A.1.k.
    The chemical analysis shall include the following metals: Barium, 
cadmium, chromium, copper, mercury, zinc, and lead. The total 
concentration and total recoverable concentration shall be conducted on 
split samples and reported for each metal and shall be obtained by the 
methods given in 40 CFR part 136. The results shall be reported in 
``mg/kg of whole mud (dry weight),'' and the moisture content (percent 
by weight) of the original drilling mud sample shall be reported.
    In addition, permittees shall analyze mud samples for oil content 
(percent by weight and by volume). The analytical method shall be the 
retort distillation method for oil (American Petroleum Institute, 
Recommended Practice 13-1, 1990).
    Results of chemical analyses shall be submitted within 45 days 
following well completion. Results shall be submitted with the end-of-
well chemical inventory, see Part II.A.1.i., and shall identify the 
corresponding mud system from the end-of-well inventory.
    k. Toxicity test. If no mineral oil is used, the toxicity test 
shall be conducted monthly to determine compliance with the toxicity 
limit. At end-of-well, a sample shall be collected for toxicity 
testing. This sample can also serve as the monthly monitoring sample. 
The sample shall be a representative subsample of that collected for 
chemical analysis (see Part I.A.1.j.). The permittee shall complete a 
minimum of two toxicity tests on each mud system where a mineral oil 
lubricity or spotting agent is used. One sample shall be collected 
before applying the pill and one after removing the pill (see Part 
II.A.1.g.). The ``after pill'' sample test results can be used as the 
monthly monitoring sample. If the well is completed within 96 hours of 
collection of the ``after pill'' drilling mud sample, then these test 
results can also serve as the end-of-well test.
    The testing and reporting of results shall be in accordance with 
appendix 2 to subpart A of 40 CFR Part 435. Results of toxicity tests 
shall be reported on monthly DMRs. Full copies of the toxicity test 
reports shall be attached to the DMRs and be accompanied by an 
inventory of all base mud components and specialty additives present in 
the sampled mud (including concentrations of each). Results are due 
within 45 days following well completion.
2. Depth-Related Requirements
    The total drilling muds and drill cuttings discharge rate shall not 
exceed the following rates where depth is measured as meters from mean 
lower low water (MLLW): (a) 1000 bbl/hr in water depths exceeding 40 
meters, (b) 750 bbl/hr in water depths greater than 20 meters but not 
exceeding 40 meters, (c) 500 bbl/hr in water depths greater than 5 
meters but not exceeding 20 meters, and (d) discharge of muds and 
cuttings are prohibited between the shore (mainland and barrier 
islands) and the 5 meter isobath.
3. Area and Seasonal Restrictions
    a. Discharge is not authorized within 1000 meters of the 
Steffansson Sound Boulder Patch (near the mouth of the Sagavanirktok 
River) or between individual units of the Patch where the separation 
between units is greater than 2000 meters but less than 5000 meters. 
The Boulder Patch is defined as an area which has more than 10 percent 
of a one-hundred-square-meter area covered by boulders to which kelp is 
attached.
    b. Discharge is not authorized within Omalik Lagoon, Kasegaluk 
Lagoon or within 3 miles of the following passes of the Kasegaluk 
Lagoon: Kukpowruk Pass, Akunik Pass, Utukok Pass, Icy Cape Pass, 
Alokiakatat Pass, Naokok Pass, and Pingaorarok Pass.
    c. Discharge is prohibited within 1000 meters of river mouths or 
deltas during unstable or broken ice or open water conditions.
    d. During open-water conditions, discharge in the area from the 5 
to 20 meters isobaths as measured from MLLW shall be released no deeper 
than 1 meter below the surface of the receiving water.
    e. During unstable or broken ice conditions, the following 
conditions apply for discharges shoreward of the 20 meters isobath as 
measured from MLLW:
    (1) Discharge shall be prediluted to a 9:1 ratio of seawater to 
drilling muds and cuttings.
    (2) Environmental monitoring is required as specified in Part 
II.A.4. below.
    f. During stable ice conditions, unless authorized otherwise by the 
Director, the following conditions apply:
    (1) Discharges shall be to above-ice locations and shall avoid to 
the [[Page 27515]] maximum extent possible areas of sea ice cracking or 
major stress fracturing.
    (2) Predilution and flow rate restrictions do not apply.
4. Environmental Monitoring Requirements
    a. Purpose/areas to be monitored. Monitoring is required in the 
following areas which have been identified as requiring further 
information on the fate and, in some cases, the effects of discharged 
drilling muds. If the location authorized for discharge of drilling 
muds and drill cuttings is within 4000 meters of the following areas, 
then environmental monitoring is required:
    (1) Below-ice to water depths shallower than 20 meters as measured 
from MLLW,
    (2) The Steffansson Sound Boulder Patch (see Part II.A.3.a. of this 
permit for further definition),
    (3) The protected areas of Kasegaluk Lagoon and the seven 
identified passes (see Part II.A.3.b. for further definition),
    (4) Omalik Lagoon, or
    (5) River mouths or deltas during unstable or broken ice or open 
water conditions.
    b. Objectives. The objectives of the monitoring shall be to:
    (1) Monitor for discharge-related impacts,
    (2) Determine statistically significant changes in sediment 
pollutant concentrations and sediment toxicity with time and distance 
from the discharge
    (3) Monitor for discharge related impacts to the benthic community,
    (4) Assess whether any impacts warrant an adjustment of the 
monitoring program, and
    (5) Provide information for permit reissuance.
    The monitoring shall include, but not be limited to, relevant 
hydrographic, sediment hydrocarbon, and heavy metal data from surveys 
conducted before and during drilling mud disposal operations and up to 
at least one year after drilling operations cease.
    c. Detailed monitoring proposal. The Permittee shall submit a plan 
of study for the environmental monitoring program to EPA and ADEC for 
review with or prior to submission of the written request for 
authorization to discharge (Part I.B.). EPA and ADEC may require 
changes in the monitoring program's design. Copies of the study plan 
shall be sent concurrently to the North Slope Borough. The plan shall 
address:
    (1) The monitoring objectives,
    (2) Appropriate null and alternate test hypotheses,
    (3) A statistically valid sampling design,
    (4) All monitoring procedures and methods,
    (5) A quality assurance/quality control program,
    (6) A detailed discussion of how data will be used to meet, test 
and evaluate the monitoring objectives, and
    (7) A summary of the results of previous environmental monitoring 
as they apply to the proposed program plan.
    d. Reporting and data submission requirements. The Permittee shall 
analyze the data and submit a draft report by within 180 days following 
the completion of sample collection. Copies of the draft report shall 
be sent concurrently to ADEC and the North Slope Borough. The report 
shall address the environmental monitoring objectives by using 
appropriate descriptive and analytical methods to test for and to 
describe any impacts of the effluent on sediment pollutant 
concentrations, sediment quality, water quality and/or the benthic 
community. The report shall include all relevant quality assurance/
quality control (QA/QC) information, including but not limited to 
instrumentation, laboratory procedures, detection limits/precision 
requirements of the applied analyses, and sample collection 
methodology.
    EPA and ADEC will review the draft report in accordance with the 
environmental monitoring objectives and evaluate it for compliance with 
the requirements of the permit. If revisions to the report are 
required, the Permittee shall complete them and submit the final report 
to EPA and ADEC within two months of the Director's request. Copies of 
the final report shall be sent concurrently to the North Slope Borough. 
The Permittee will be required to correct, repeat and/or expand 
environmental monitoring programs which have not fulfilled the 
requirements of the permit.
    e. Modification of monitoring program.  monitoring program may be 
modified if EPA and ADEC, in consultation with the North Slope Borough, 
determine that it is appropriate. The modified program may include 
changes in (1) sampling stations, (2) sampling times, and/or (3) 
parameters.

B. Deck Drainage, Sanitary Wastes, and Domestic Wastes (Discharges 002-
004)

    Permittees shall limit and monitor discharges from deck drainage, 
sanitary wastes, and domestic wastes in accordance with Parts II.E., 
III, and the following requirements.

                                   Effluent Limits and Monitoring Requirements                                  
----------------------------------------------------------------------------------------------------------------
       Effluent             Discharge         Measurement      Sample type/                                     
    characteristic          limitation         frequency          method               Reported value(s)        
----------------------------------------------------------------------------------------------------------------
All Discharges (002-                                                                                            
 004):                                                                                                          
    Flow rate.........  NA...............  Monthly.........  Estimate........  Monthly average.                 
Deck Drainage (002)                                                                                             
 \1\                                                                                                            
    Free oil..........  No discharge.....  Daily, during     Visual/sheen on   Number of days sheen observed.   
                                            discharge.        receiving water                                   
                                                              \2\.                                              
Sanitary Wastes (003)                                                                                           
 \3\                                                                                                            
    Solids............  No floating        Daily...........  Observation \4\.  Number of days solids observed.  
                         solids.                                                                                
    Residual chlorine   As close as        Monthly.........  Grab \6\........  Concentration (mg/l).            
     \5\.                possible to but                                                                        
                         no less than,                                                                          
                         1.0 mg/l.                                                                              
    BOD...............  .................  Weekly \9\......  Grab                                               
        30 day average  30 mg/l..........  ................  ................  Monthly average.                 
        24-hr maximum.  60mg/l...........  ................  ................  Daily maximum.                   
    TSS...............  .................  Weekly \9\......  Grab                                               
        30 day average  30 mg/l..........  ................  Monthly average                                    
                                                              \10\                                              
        24-hr maximum.  60mg/l...........  ................  Daily maximum                                      
                                                              \10\                                              
Domestic Wastes (004):                                                                                          
                                                                                                                
[[Page 27516]]
                                                                                                                
    Floating solids...  No discharge.....  Daily...........  Observation \4\.  Number of days solid observed.   
    Foam..............  No discharge.....  Daily...........  Observation \4\.  Number of days foam observed.    
    All other domestic  No discharge \7\.  Daily...........  Observation \8\.  Number of days solids observed.  
     waste (garbage).                                                                                           
----------------------------------------------------------------------------------------------------------------
\1\ Area drains for either washdown water or rainfall that may be contaminated with oil and grease shall be     
  separated from those area drains that would not be contaminated. Any deck drainage which is commingled with   
  other wastes prior to discharge shall be subject at the point of discharge to the most stringent of the       
  limitations on the individual effluents.                                                                      
\2\ If discharge occurs during broken, unstable, or stable ice conditions, the sample type/method shall be      
  ``Grab/Static Sheen Test'' as described in appendix 1 to subpart A of 40 CFR part 435. For discharges during  
  stable ice, below ice, to unstable ice or broken ice conditions, a water temperature that approximates surface
  water temperatures after breakup shall be used.                                                               
\3\ Any facility using 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 the limitations for this    
  outfall until such time as the device is replaced or is found not to comply with such standards and           
  regulations. The MSD shall be tested yearly for proper operation and test results maintained at the facility. 
  In cases where sanitary and domestic wastes are mixed prior to discharge, and sampling of the sanitary waste  
  component stream is infeasible, the discharge may be sampled after mixing. In such cases, the discharge       
  limitations for sanitary wastes shall apply to the mixed waste stream.                                        
\4\ Monitoring by visual observation of the surface of the receiving water in the vicinity of the outfall(s),   
  shall be done during daylight at a time of maximum estimated discharge.                                       
\5\ This limitation applies only to M10 facilities. Under ice disposal of residual chlorine is not authorized   
  unless residual chlorine is reduced to a level to ensure compliance with the State of Alaska's Water Quality  
  criteria of 10 g/l residual chlorine.                                                                
\6\ Residual chlorine may be monitored according to test procedures approved under 40 CFR part 136 or using a   
  Hach Test Kit capable of measuring free chlorine in the range 0-3.5 mg/l with a sensitivity of 0.1 mg/l or    
  better.                                                                                                       
\7\ 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. Discharge of putrescible wastes is prohibited within and beyond 12 nautical miles of nearest    
  land.                                                                                                         
\8\ An observation shall be made during daylight by visual observation of the surface in the vicinity of        
  domestic waste outfalls following either the morning or midday meal at a time of maximum estimated discharge.9/
                                                                                                                
\9\ Based on weekly sampling and depending on the length of the calendar month, a total of 3-4 samples will be  
  analyzed per month. The reported 30 day average value shall be the average of all weekly samples taken during 
  the month. The highest value of all weekly samples shall be reported.                                         

C. Miscellaneous Discharges (Discharges 005-013).

    Permittee shall limit and monitor discharges from desalination unit 
wastes (005), blowout preventer fluid (006), boiler blowdown (007), 
fire control system test water (008), non-contact cooling waster (009), 
uncontaminated ballast water (010), bilge water (011), excess cement 
slurry (012), and mud, cuttings, and cement at the seafloor (013) in 
accordance with Parts II.E., III., and the following requirements.

                                                       Effluent Limits and Monitoring Requirements                                                      
--------------------------------------------------------------------------------------------------------------------------------------------------------
    Effluent characteristic        Discharge limitation      Measurement frequency       Sample type/method                 Reported value(s)           
--------------------------------------------------------------------------------------------------------------------------------------------------------
All Discharges (005-013):                                                                                                                               
    Flow rate (MGD)...........  NA.......................  Monthly..................  Estimate................  Monthly average.                        
    Free oil..................  No discharge.............  Once/discharge for         Visual/sheen on           No. of days sheen observed.             
                                                            intermittent or once/day   receiving.                                                       
                                                            for continuous                                                                              
                                                            discharges.                                                                                 
--------------------------------------------------------------------------------------------------------------------------------------------------------

    1. Bilge water (011) shall be processed through an oil-water 
separator prior to discharge. If discharge of bilge water occurs during 
broken, unstable, or stable ice conditions, the sample type/method used 
to determine compliance with the no free oil limitation shall be 
``Grab/Static Sheen Test.'' For discharges above stable ice, below ice, 
to unstable, or to broken ice, a water temperature that approximates 
surface water temperatures after breakup shall be used.
    2. The permittee shall maintain an inventory of the quantities and 
rates of chemicals (other than water or seawater) added to cooling 
water (009) and desalination (005) systems. The inventory shall be 
submitted with the monthly Discharge Monitoring Report.
D. Test Fluids (Discharge 014)

    Permittee shall limit and monitor test fluids in accordance with 
Parts II.E., III. and the following requirements.

                                   Effluent Limits and Monitoring Requirements                                  
----------------------------------------------------------------------------------------------------------------
       Effluent             Discharge         Measurement      Sample type/                                     
    characteristic          limitation         frequency          method               Reported Value(s)        
----------------------------------------------------------------------------------------------------------------
Volume (bbl)..........  NA...............  Once/discharge..  Estimate........  Total vol./test.\1\              
[[Page 27517]]
                                                                                                                
Free oil..............  No discharge.....  Once/discharge..  Grab/Static       Number of times sheen observed.  
                                                              Sheen Test \2\.                                   
Oil and grease........  42 mg/l daily      Once/discharge..  Grab............  Daily max. and monthly avg.      
                         max., 29 mg/l                                                                          
                         monthly avg..                                                                          
pH....................  6.5-8.5 \3\......  Once/discharge..  Grab............  Ph.                              
Oil-based fluids......  No discharge.....  Once/discharge..  Grab/GC.........  Presence or absence.             
----------------------------------------------------------------------------------------------------------------
\1\ Volume will be reported as the number of barrels of fluids sent downhole during testing and the number of   
  barrels discharged. The chemical composition of the fluids sent downhole will also be reported.               
\2\ For discharges during stable ice, below ice, to unstable ice or broken ice conditions, a water temperature  
  that approximates surface water temperatures after breakup shall be used. The static sheen test is presumed to
  cover the no visible sheen standard in the State of Alaska Water Quality Standards.                           
\3\ Any spent acidic test fluids shall be neutralized before discharge such that the Ph at the point of         
  discharge shall not be less than 6.5 or greater than 8.5.                                                     

E. General discharge limitations for all waste streams (001 Through 
014).

    1. Floating solids, visible foam, or oily wastes. There shall be no 
discharge of floating solids or visible foam in other than trace 
amounts, nor of oily wastes which produce a sheen on the surface of the 
receiving water.
    2. Surfactants, dispersants, and detergents. The discharge of 
surfactants, dispersants, and detergents shall be minimized except as 
necessary to comply with the safety requirements of the Occupational 
Health and Safety Administration and the Minerals Management Service. 
The discharge of dispersants to marine waters in response to oil or 
other hazardous spills are not authorized this permit. See also Part 
III.G.
    3. Applicable marine water quality criteria. There shall be no 
discharge of any constituent in concentrations which will result in an 
exceedence of applicable marine water quality criteria at the edge of a 
permitted mixing zone. Initial mixing in federal waters is defined at 
40 CFR 227.29.
    4. Rubbish, trash, and other refuse. The discharge of any solid 
material not authorized in the above permit is prohibited. Under U.S. 
Coast Guard regulations, discharges of garbage, including plastics, 
from fixed and floating platforms engaged in exploration of seabed 
mineral resources are prohibited with one exception -victual waste. 
Victual waste may be discharged beyond 12 nautical miles from nearest 
land if it has passed through a comminuter or grinder and can pass 
through a screen with openings no greater than 25 millimeters 
(approximately one inch). Discharge of putrescible wastes is prohibited 
within and beyond 12 nautical miles of nearest land.
    5. Other toxic and non-conventional compounds. There shall be no 
discharge of diesel oil, halogenated phenol compounds, trisodium 
nitrilotriacetic acid, sodium chromate or sodium dichromate.

F. Best management practices plan requirement.

    1. Implementation. The permittee shall develop and implement a Best 
Management Practices (BMP) Plan which achieves the objectives and the 
specific requirements listed below. The Plan shall be implemented as 
soon as possible but no later than 7 days prior to initiation of 
discharges from the facility and from each well.
    The permittee shall certify that its BMP Plan is complete, on-site, 
and available upon request to EPA and ADEC. This certification shall 
identify the well it pertains to by well name, well number, and the 
NPDES permit number and be signed by an authorized representative of 
the permittee. The certification shall be submitted no later than the 
written notice of intent to commence discharge (see Part I.C.) and the 
Certification of Planning for Drilling Mud (see Part II.A.1.f.).
    2. Purpose. Through implementation of the BMP Plan the permittee 
shall prevent or minimize the generation and the potential for the 
release of pollutants from the facility to the waters of the United 
States through normal operations and ancillary activities.
    3. Objectives. The permittee shall develop and amend the BMP Plan 
consistent with the following objectives for the control of pollutants.
    a. The number and quantity of pollutants and the toxicity of 
effluent generated, discharged or potentially discharged at the 
facility shall be minimized by the permittee to the extent feasible by 
managing each influent waste stream in the most appropriate manner.
    b. Under the BMP Plan, and any Standard Operating Procedures (SOPs) 
included in the Plan, the permittee shall ensure proper operation and 
maintenance of the treatment facility.
    c. The permittee shall establish specific objectives for the 
control of pollutants by conducting the following evaluations.
    (1) Each facility component or system shall be examined for its 
waste minimization opportunities and its potential for causing a 
release of significant amounts of pollutants to waters of the United 
States due to equipment failure, improper operation, natural phenomena 
such as rain or snowfall, etc. The examination shall include all normal 
operations and ancillary activities including material storage areas, 
site runoff, in-plant transfer, process and material handling areas, 
loading or unloading operations, spillage or leaks, sludge and waste 
disposal, or drainage from raw material storage.
    (2) Where experience indicates a reasonable potential for equipment 
failure (e.g., a tank overflow or leakage), natural condition (e.g., 
precipitation), or other circumstances to result in significant amounts 
of pollutants reaching surface waters, the program should include a 
prediction of the direction, rate of flow and total quantity of 
pollutants which could be discharged from the facility as a result of 
each condition or circumstance.
    4. Requirements. The BMP Plan shall be consistent with the 
objectives in Part 3 above and the general guidance contained in the 
publication entitled ``Guidance Document for Developing Best Management 
Practices (BMP)'' (EPA Document Number EPA 833-B-93-004, U.S. EPA, 
1993) or any subsequent revisions to the guidance document. The BMP 
Plan shall:
    a. Be documented in narrative form, and shall include any necessary 
plot plans, drawings or maps, and shall be developed in accordance with 
good [[Page 27518]] engineering practices. The BMP Plan shall be 
organized and written with the following structure:
    (1) Name and location of the facility or operation (including 
identification by latitude/longitude).
    (2) Statement of BMP policy.
    (3) Structure, functions, and procedures of the Best Management 
Practices Committee.
    (4) Specific management practices and standard operating procedures 
to achieve the above objectives, including, but not limited to, the 
following:
    (a) Modification of equipment, facilities, technology, processes, 
and procedures,
    (b) Reformulation or redesign of products,
    (c) Substitution of materials, and
    (d) Improvement in management, inventory control, materials 
handling or general operational phases of the facility.
    (5) Risk identification and assessment.
    (6) Reporting of BMP incidents.
    (7) Materials compatibility.
    (8) Good housekeeping.
    (9) Preventative maintenance.
    (10) Inspections and records.
    (11) Security.
    (12) Employee training.
    b. Include the following provisions concerning BMP Plan review:
    (1) Be reviewed by plant engineering staff and the plant manager.
    (2) Be reviewed and endorsed by the permittee's BMP Committee.
    (3) Include a statement that the above reviews have been completed 
and that the BMP Plan fulfills the requirements set forth in this 
permit. The statement shall be certified by the dated signatures of 
each BMP Committee member.
    c. Establish specific best management practices to meet the 
objectives identified in Part 3 this section, addressing each component 
or system capable of generating or causing a release of significant 
amounts of pollutants, and identifying specific preventative or 
remedial measures to be implemented.
    d. Establish specific best management practices or other measures 
which ensure that the following specific requirements are met:
    (1) Ensure proper management of solid and hazardous waste in 
accordance with regulations promulgated under the Resource Conservation 
and Recovery Act (RCRA) and the Alaska Solid Waste Management 
Regulations (18 AAC 60). Management practices required under RCRA 
regulations shall be referenced in the BMP Plan.
    (2) Reflect requirements within Oil Spill Contingency Plans 
required by the Minerals Management Service (see 30 CFR part 254). 
Permittees in state waters must also reflect the requirements within 
Oil Discharge Prevention and Contingency Plans as required by ADEC. 
Permittees may incorporate any part of such plans into the BMP Plan by 
reference.
    (3) Reflect requirements for storm water control under section 
402(p) of the Act and the regulations at 40 CFR 122.26 and 122.44, and 
otherwise eliminate to the extent practicable, contamination of storm 
water runoff.
    (4) Reflect the development and implementation of the Mud Plan (see 
Part II.A.1.d.) for the formulation and control of drilling mud 
systems.
    5. Documentation. The permittee shall maintain a copy of the BMP 
Plan at the facility and shall make the plan available to EPA and ADEC 
upon request. All offices of the permittee which are required to 
maintain a copy of the NPDES permit shall also maintain a copy of the 
BMP Plan.
    6. BMP Plan modification. The permittee shall amend the BMP Plan 
whenever there is a change in the facility or in the operation of the 
facility which materially increases the generation of pollutants or 
their release or potential release to the receiving waters. The 
permittee shall also amend the Plan, as appropriate, when plant 
operations covered by the BMP Plan change. Any such changes to the BMP 
Plan shall be consistent with the objectives and specific requirements 
listed above. All changes in the BMP Plan shall be reviewed by the 
plant engineering staff and plant manager and shall be reported to EPA 
and ADEC in writing.
    7. Modification for ineffectiveness. At any time, if the BMP Plan 
proves to be ineffective in achieving the general objective of 
preventing and minimizing the generation of pollutants and their 
release and potential release to the receiving waters and/or the 
specific requirements above, the permit and/or the BMP Plan shall be 
subject to modification to incorporate revised BMP requirements.

III. Monitoring, Recording and Reporting Requirements

A. Representative Sampling (Routine and Non-Routine Discharges)

     The Permittee shall collect all effluent samples from the effluent 
stream prior to discharge into the receiving waters. Samples and 
measurements shall be representative of the volume and nature of the 
monitored discharge.
    In order to ensure that the effluent limits set forth in this 
permit are not violated at times other than when routine samples are 
taken, the Permittee shall collect additional samples at the 
appropriate outfall(s), and analyze them for the parameters limited in 
Part I.A.-E. of this permit (as applicable for the wastestream), 
whenever any discharge occurs that may reasonably be expected to cause 
or contribute to a violation that is unlikely to be detected by a 
routine sample.
    The Permittee shall collect such additional samples as soon as 
possible after the spill or discharge. The samples shall be analyzed in 
accordance with paragraph C., below. In the event of an anticipated 
bypass, as defined in Part IV.G. of this permit, the Permittee shall 
collect and analyze additional samples as soon as the bypassed effluent 
reaches the outfall. The Permittee shall report all additional 
monitoring in accordance with paragraph D., below.

B. Reporting of Monitoring Results

    The Permittee shall summarize monitoring results each month on the 
Discharge Monitoring Report (DMR) form (EPA No. 3320-1). The Permittee 
shall submit reports monthly, postmarked by the 10th day of the 
following month. The Permittee shall sign and certify all DMRs, and all 
other reports, in accordance with the requirements of Part V.E. of this 
permit (``Signatory Requirements''). The Permittee shall submit the 
legible originals of these documents to the Director, Water Division, 
with copies to ADEC at the following addresses:

United States Environmental Protection Agency, Region 10, 1200 Sixth 
Avenue, WD-135, Seattle, Washington 98101
Alaska Department of Environmental Conservation, Pipeline Corridor 
Regional Office, Attn: Water Quality & Wastewater Programs, 411 W. 4th 
Ave., Suite 2C, Anchorage Alaska 99501

C. Monitoring Procedures

    Monitoring must be conducted according to test procedures approved 
under 40 CFR part 136, unless other test procedures have been specified 
in this permit.

D. Additional Monitoring by 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 Permittee shall include 
the results of this monitoring in the calculation and reporting of the 
data submitted in the DMR. The Permittee shall indicate on the DMR 
whenever it has performed [[Page 27519]] additional monitoring, and 
shall explain why it performed such monitoring.
    Upon request by the Director, the Permittee shall submit results of 
any other sampling, regardless of the test method used.

E. Records Contents

    All effluent monitoring records shall bear the hand-written 
signature of the person who prepared them. In addition, all records of 
monitoring information shall include:
    1. The date, exact place, and time of sampling or measurements;
    2. The names of the individual(s) who performed the sampling or 
measurements;
    3. The date(s) analyses were performed;
    4. The names of the individual(s) who performed the analyses;
    5. The analytical techniques or methods used; and
    6. The results of such analyses.

F. Retention of Records

    The Permittee shall retain records of all monitoring information, 
including, but not limited to, all calibration and maintenance records 
and all original strip chart recordings for continuous monitoring 
instrumentation, copies of all reports required by this permit, copies 
of DMRs, a copy of the NPDES permit, and records of all data used to 
complete the application for this permit, for a period of at least five 
years from the date of the sample, measurement, report or application, 
or for the term of this permit, whichever is longer. This period may be 
extended by request of the Director or ADEC at any time.
    A copy of the final permit shall be maintained at the drilling 
site.

G. Twenty-four Hour Notice of Noncompliance Reporting

    1. The Permittee shall report the following occurrences of 
noncompliance by telephone within 24 hours from the time the Permittee 
becomes aware of the circumstances:
    a. Any noncompliance that may endanger health or the environment;
    b. Any unanticipated bypass that results in or contributes to an 
exceedence of any effluent limitation in the permit (See Part IV.G., 
``Bypass of Treatment Facilities'');
    c. Any upset that results in or contributes to an exceedence of any 
effluent limitation in the permit (See Part IV.H., ``Upset 
Conditions''); or
    d. Any violation of a maximum daily discharge limitation for any of 
the pollutants listed in the permit .
    2. The Permittee shall also provide a written submission within 
five days of the time that the Permittee becomes aware of any event 
required to be reported under subpart 1 above. The written submission 
shall contain:
    a. A description of the noncompliance and its cause;
    b. The period of noncompliance, including exact dates and times;
    c. The estimated time noncompliance is expected to continue if it 
has not been corrected; and
    d. steps taken or planned to reduce, eliminate, and prevent 
reoccurrence of the noncompliance.
    e. The results of any monitoring data required under Paragraph 
III.A., above.
    3. The Director may, at his or her sole discretion, waive the 
written report on a case-by-case basis if the oral report has been 
received within 24 hours by the Water Compliance Section in Seattle, 
Washington, by telephone, (206) 553-1213.
    4. Reports shall be submitted to the addresses in Part III.B. 
(``Reporting of Monitoring Results'').

H. Other Noncompliance Reporting

    The Permittee shall report all instances of noncompliance, not 
required to be reported within 24 hours, at the time that monitoring 
reports for Part III.B. are submitted. The reports shall contain the 
information listed in Part III.G.2. of this permit.

I. Changes in Discharge of Toxic Substances

    The Permittee shall notify the Director and ADEC as soon as it 
knows, or has reason to believe:
    1. That any activity has occurred or will occur that would result 
in the discharge, on a routine or frequent basis, of any toxic 
pollutant that is not limited in the permit, if that discharge will 
exceed the highest of the following ``notification levels'':
    a. One hundred micrograms per liter (100 ug/l);
    b. Two hundred micrograms per liter (200 ug/l) for acrolein and 
acrylonitrile; five hundred micrograms per liter (500 ug/l) for 2,4-
dinitrophenol and for 2-methyl-4,6-dinitrophenol; and one milligram per 
liter (1 mg/l) for antimony;
    c. Five (5) times the maximum concentration value reported for that 
pollutant in the permit application in accordance with 40 CFR 
122.21(g)(7); or
    d. The level established by the Director in accordance with 40 CFR 
122.44(f).
    2. That any activity has occurred or will occur that would result 
in any discharge, on a non-routine or infrequent basis, of any toxic 
pollutant that is not limited in the permit, if that discharge will 
exceed the highest of the following ``notification levels'':
    a. Five hundred micrograms per liter (500 ug/l);
    b. One milligram per liter (1 mg/l) for antimony;
    c. Ten (10) times the maximum concentration value reported for that 
pollutant in the permit application in accordance with 40 CFR 
122.21(g)(7); or
    d. The level established by the Director in accordance with 40 CFR 
122.44(f).

IV. Compliance Responsibilities

A. Duty to Comply

    The Permittee shall comply with all conditions of this permit. Any 
permit noncompliance constitutes a violation of the Act and is grounds 
for enforcement action, for permit termination, revocation and 
reissuance, or modification, or for denial of a permit renewal 
application. The Permittee shall give reasonable advance notice to the 
Director and ADEC of any planned changes in the permitted facility or 
activity that may result in noncompliance with permit requirements.

B. Penalties for Violations of Permit Conditions

    1. Civil and Administrative Penalties. Sections 309(d) and 309(g) 
of the Act provide that any person who violates a permit condition 
implementing sections 301, 302, 306, 307, 308, 318, or 405 of the Act 
shall be subject to a civil or administrative penalty, not to exceed 
$25,000 per day for each violation.
    2. Criminal Penalties:
    a. Negligent Violations. Section 309(c)(1) of the Act provides that 
any person who negligently violates a permit condition implementing 
Sections 301, 302, 306, 307, 308, 318, or 405 of the Act shall be 
punished by a fine of not less than $2,500 nor more than $25,000 per 
day of violation, or by imprisonment for not more than 1 year, or by 
both.
    b. Knowing Violations. Section 309(c)(2) of the Act provides that 
any person who knowingly violates a permit condition implementing 
sections 301, 302, 306, 307, 308, 318, or 405 of the Act shall be 
punished by 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 by 
both.
    c. Knowing Endangerment. Section 309(c)(3) of the Act provides that 
any person who knowingly violates a permit condition implementing 
sections 301, 302, 303, 306, 307, 308, 318, or 405 of the Act, and who 
knows at that time that he thereby places another person in 
[[Page 27520]] imminent danger of death or serious bodily injury, 
shall, upon conviction, be subject to a fine of not more than $250,000 
or imprisonment of not more than 15 years, or both. A person that is an 
organization shall be subject to a fine of not more than $1,000,000.
    d. False Statements. Section 309(c)(4) of 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 this 
Act or who knowingly falsifies, tampers with, or renders inaccurate any 
monitoring device or method required to be maintained under this Act, 
shall be punished by a fine of not more than $10,000, or by 
imprisonment for not more than 2 years, or by both. Except as provided 
in permit conditions in Part IV.G., (``Bypass of Treatment 
Facilities'') and Part IV.H., (``Upset Conditions''), nothing in this 
permit shall be construed to relieve the Permittee of the civil or 
criminal penalties for noncompliance.

C. Need to Halt or Reduce Activity Not a Defense

    It shall not be a defense for the 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.

D. Duty to Mitigate

    The Permittee shall take all reasonable steps to minimize or 
prevent any discharge in violation of this permit that has a reasonable 
likelihood of adversely affecting human health or the environment.

E. Proper Operation and Maintenance

    The Permittee shall at all times properly operate and maintain all 
facilities and systems of treatment and control (and related 
appurtenances) that are installed or used by the Permittee to achieve 
compliance with 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 
back-up or auxiliary facilities or similar systems only when the 
operation is necessary to achieve compliance with the conditions of the 
permit.

F. Removed Substances

    Solids, sludges, filter backwash, or other pollutants removed in 
the course of treatment or control of water and wastewaters shall be 
disposed of in a manner such as to prevent any pollutant from such 
materials from entering navigable waters, except as specifically 
authorized in Part II.

G. Bypass of Treatment Facilities

    1. Bypass not exceeding limitations. The Permittee may allow any 
bypass to occur that does not cause effluent limitations to be 
exceeded, but only if it also is for essential maintenance to assure 
efficient operation. These bypasses are not subject to the provisions 
of paragraphs 2 and 3 of this Part.
    2. Notice.
    a. Anticipated bypass. If the Permittee knows in advance of the 
need for a bypass, it shall submit prior notice, if possible at least 
10 days before the date of the bypass.
    b. Unanticipated bypass. The Permittee shall submit notice of an 
unanticipated bypass as required under Part III.G. (``Twenty-four Hour 
Notice of Noncompliance Reporting'').
    3. Prohibition of bypass.
    a. Bypass is prohibited, and the Director or ADEC may take 
enforcement action against the Permittee for a bypass, unless:
    (1) The bypass was unavoidable to prevent loss of life, personal 
injury, or severe property damage;
    (2) 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 shall have 
been installed in the exercise of reasonable engineering judgment to 
prevent a bypass that occurred during normal periods of equipment 
downtime or preventive maintenance; and
    (3) The Permittee submitted notices as required under paragraph 2 
of this Part.
    b. The Director and ADEC may approve an anticipated bypass, after 
considering its adverse effects, if the Director and ADEC determine 
that it will meet the three conditions listed above in paragraph 3.a. 
of this Part.

H. Upset Conditions

    1. 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 Permittee meets the requirements of 
paragraph 2 of this Part. 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.
    2. Conditions necessary for a demonstration of upset. To establish 
the affirmative defense of upset, the Permittee shall demonstrate, 
through properly signed, contemporaneous operating logs, or other 
relevant evidence that:
    a. An upset occurred and that the Permittee can identify the 
cause(s) of the upset;
    b. The permitted facility was at the time being properly operated;
    c. The Permittee submitted notice of the upset as required under 
Part III.G., Twenty-four Hour Notice of Noncompliance Reporting; and
    d. The Permittee complied with any remedial measures required under 
Part IV.D., Duty to Mitigate.
    3. Burden of proof. In any enforcement proceeding, the Permittee 
seeking to establish the occurrence of an upset has the burden of 
proof.

I. Toxic Pollutants

    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 establish those standards or 
prohibitions, even if the permit has not yet been modified to 
incorporate the requirement.

J. Planned Changes

    The Permittee shall give notice to the Director and ADEC as soon as 
possible of any planned physical alterations or additions to the 
permitted facility whenever:
    1. The alteration or addition to a permitted facility may meet one 
of the criteria for determining whether a facility is a new source as 
determined in 40 CFR 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 that are subject neither to effluent limitations 
in the permit, nor to notification requirements under Part III.I.
    The Permittee shall give notice to the Director and ADEC as soon as 
possible of any planned changes in process or chemical use whenever 
such change could significantly change the nature or increase the 
quantity of pollutants discharged.

K. Anticipated Noncompliance

    The Permittee shall also give advance notice to the Director and 
ADEC of any planned changes in the permitted facility or activity that 
may result in noncompliance with this permit. [[Page 27521]] 

V. General Provisions

A. Permit Actions

    This permit may be modified, revoked and reissued, or terminated 
for cause. The filing of a request by the Permittee for a permit 
modification, revocation and reissuance, or termination, or a 
notification of planned changes or anticipated noncompliance, does not 
stay any permit condition.

B. Duty to Reapply

    If the Permittee intends 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.

C. Duty to Provide Information

    The Permittee shall furnish to the Director and ADEC, within the 
time specified in the request, any information that the Director or 
ADEC 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 or ADEC, upon request, copies of records required to be kept 
by this permit.
D. Other Information

    When the Permittee becomes aware that it failed to submit any 
relevant facts in a permit application, or that it submitted incorrect 
information in a permit application or any report to the Director or 
ADEC, it shall promptly submit the omitted facts or corrected 
information.

E. Signatory Requirements

    All applications, reports or information submitted to the Director 
and ADEC shall be signed and certified.
    1. All permit applications shall be signed as follows:
    a. For a corporation: by a responsible corporate officer.
    b. For a partnership or sole proprietorship: by a general partner 
or the proprietor, respectively.
    c. For a municipality, state, federal, or other public agency: by 
either a principal executive officer or ranking elected official.
    2. All reports required by the permit and other information 
requested by the Director or ADEC 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:
    a. The authorization is made in writing by a person described above 
and submitted to the Director and ADEC, and
    b. 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, position of equivalent 
responsibility, or an individual or position having overall 
responsibility for environmental matters for the company.
    3. Changes to authorization. If an authorization under Part V.E.2. 
is no longer accurate because a different individual or position has 
responsibility for the overall operation of the facility, a new 
authorization satisfying the requirements of paragraph V.E.2. must be 
submitted to the Regional Administrator and ADEC prior to or together 
with any reports, information, or applications to be signed by an 
authorized representative.
    4. Certification. Any person signing a document under this Part 
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.

F. Availability of Reports

    Except for data determined to be confidential under 40 CFR part 2, 
all reports prepared in accordance with this permit shall be available 
for public inspection at the offices of the state water pollution 
control agency and the Director and ADEC. As required by the Act, 
permit applications, permits, Best Management Practices Plans, Mud 
Plans, and effluent data shall not be considered confidential.

G. Inspection and Entry

    The Permittee shall allow the Director, ADEC, or an authorized 
representative (including an authorized contractor acting as a 
representative of the Administrator), upon the presentation of 
credentials and other documents as may be required by law, to:
    1. 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;
    2. Have access to and copy, at reasonable times, any records that 
must be kept under the conditions of this permit;
    3. Inspect at reasonable times any facilities, equipment (including 
monitoring and control equipment), practices, or operations regulated 
or required under this permit; and
    4. 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.

H. 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.

I. Property Rights

    The issuance of this permit does not convey any property rights of 
any sort, or any exclusive privileges, nor does it authorize any injury 
to private property or any invasion of personal rights, nor any 
infringement of federal, state or local laws or regulations.
J. Severability

    The provisions of this permit are severable. If any provision of 
this permit, or the application of any provision of this permit to any 
circumstance, is held invalid, the application of such provision to 
other circumstances, and the remainder of this permit, shall not be 
affected thereby.

K. Transfers

    This permit may be automatically transferred to a new Permittee if:
    1. The current Permittee notifies the Director at least 30 days in 
advance of the proposed transfer date;
    2. The notice includes a written agreement between the existing and 
new Permittees containing a specific date for transfer of permit 
responsibility, coverage, and liability between them; and
    3. The Director does not notify the existing Permittee and the 
proposed new Permittee of his or her intent to modify, or revoke and 
reissue the permit.
    If the notice described in paragraph 3 above is not received, the 
transfer is effective on the date specified in the agreement mentioned 
in paragraph 2 above. [[Page 27522]] 

L. 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.

M. Reopener Clause

    1. This permit shall be modified, or alternatively, revoked and 
reissued, to comply with any applicable effluent standard or limitation 
issued or approved under sections 301(b)(2)(C) and (D), 304(b)(2), and 
307(a)(2) of the Act, as amended, if the effluent standard, limitation, 
or requirement so issued or approved:
    a. Contains different conditions or is otherwise more stringent 
than any condition in the permit; or
    b. Controls any pollutant or disposal method not addressed in the 
permit.
    The permit as modified or reissued under this paragraph shall also 
contain any other requirements of the Act then applicable.
    2. This permit may be reopened to adjust any effluent limitations 
if future water quality studies, waste load allocation determinations, 
or changes in water quality standards show the need for different 
requirements.

VI. Definitions and Acronyms

    1. AAS means atomic absorption spectrophotometry.
    2. Average of daily values for 30 consecutive days means the 
average of the daily values obtained during any 30 consecutive day 
period.
    3. Ballast water means harbor, river, and seawater added or removed 
to maintain the proper ship stability when not loaded with cargo.
    4. BMP means Best Management Practices.
    5. bbl/hr means barrels per hour. One barrel equals 42 gallons.
    6. Bilge water means water which collects in the lower internal 
parts of the drilling vessel hull.
    7. Blowout preventer fluid means fluid used to actuate hydraulic 
equipment on the blowout preventer.
    8. Boiler blowdown means the discharge of water and minerals 
drained from boiler drums.
    9. Bulk discharge means the discharge of more than 100 barrels in a 
one-hour period.
    10. Bypass means the intentional diversion of waste streams from 
any portion of a treatment facility (see Part IV.G.).
    11. Cd means cadmium.
    12. Cooling water means once-through non-contact cooling water.
    13. Deck drainage means all waste resulting from deck washings, 
spillage, rainwater, and runoff from gutters, and drains including drip 
pans and work areas within facilities subject to this permit.
    14. Desalination unit wastes means wastewater associated with the 
process of creating freshwater from seawater.
    15. Diesel oil means the grade of distillate fuel, 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, which contains a number of toxic pollutants. 
For the purpose of this permit, diesel oil includes the fuel oil 
present at the facility.
    16. Domestic wastes means materials discharged from showers, sinks, 
safety showers, eye-wash stations, hand-wash stations, fish-cleaning 
stations, galleys, and laundries.
    17. Drill cuttings means the particles generated by drilling into 
subsurface geological formations and carried to the surface with the 
drilling fluid.
    18. Drilling fluid 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 suspended medium for solids, whether or not oil is present. An oil-
based drilling fluid has diesel oil, mineral oil, or some other oil as 
its continuous phase with water as the dispersed phase.
    19. Drilling Fluids Toxicity Test means a toxicity test conducted 
and reported in accordance with the following approved toxicity test 
methodology: ``Drilling Fluids Toxicity Test'' as defined in appendix 2 
to subpart A of 40 CFR part 435.
    20. Excess cement slurry means the excess cement including 
additives and wastes from equipment washdown after a cementing 
operation.
    21. Exploratory facilities means any fixed or mobile structure 
subject to subpart A of 40 CFR part 435 that are engaged in drilling of 
wells to determine the nature of potential hydrocarbon reservoirs (such 
as ice islands, gravel islands, concrete island drilling units).
    22. Fire control system test water means the water released during 
the training of personnel in fire protection and the testing and 
maintenance of fire protection equipment.
    23. Garbage means all kinds of victual, domestic, and operational 
waste, excluding fresh fish and part thereof, generated during the 
normal operation 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.
    24. GC means gas chromatography. GC/MS means gas chromatography/
mass spectrometry.
    25. A grab sample is a single sample or measurement taken at a 
specific time or over as short a period of time as is feasible.
    26. Hg means mercury.
    27. lb/bbl means pounds per barrel.
    28. Maximum means the highest measured discharge or pollutant in a 
wastestream during the time period of interest.
    29. Maximum hourly rate as applied to drilling mud, cuttings, and 
washwater means the greatest number of barrels of drilling fluids 
discharged within one hour, expressed as barrels per hour.
    30. MLLW means mean lower low water.
    31. MGD means million gallons per day.
    32. mg/kg means milligrams per kilogram.
    33. mg/l means milligrams per liter.
    34. Mineral oils means a class of low volatility petroleum product, 
generally of lower aromatic hydrocarbon content and lower toxicity than 
diesel oil.
    35. Mineral oil pills (also called mineral oil spots) are 
formulated and circulated in the mud system as a slug in attempt to 
free stuck pipe. Pills generally consists of two parts; a spotting 
compound and mineral oil.
    36. Minimum means the lowest measured discharge or pollutant in a 
wastestream during the time period of interest.
    37. Monitoring month means the period consisting of the calendar 
weeks which end in a given calendar month.
    38. Monthly average means the average of daily discharges over a 
monitoring month, calculated as the sum of all daily discharges 
measured during a monitoring month divided by the number of daily 
discharges measured during that month.
    39. MSD means marine sanitation device.
    40. Muds, cuttings, cement at sea floor means the materials 
discharged at the surface of the ocean floor in the early phases of 
drilling operations, before the well casing is set, and during well 
abandonment and plugging.
    41. M9IM means those offshore facilities continuously manned by 
nine (9) or fewer persons or only [[Page 27523]] intermittently manned 
by any number of persons.
    42. M10 means those offshore facilities continuously manned by ten 
(10) or more persons.
    43. No discharge of free oil means that waste streams may not be 
discharged when they would cause a film or sheen upon or a 
discoloration of the surface of the receiving water or fail the static 
sheen test defined in appendix 1 to 40 CFR part 435, subpart A.
    44. No discharge of diesel oil in drilling mud means a 
determination that diesel oil is not present based on a comparison of 
the gas chromatogram from an extract of the drilling mud and from 
diesel oil obtained from the drilling rig or platform. GC/MS may also 
be used.
    45. Oil-based drilling mud means a drilling mud with fossil-derived 
petroleum hydrocarbons as the continuous phase.
    46. Open water means less than 25 percent ice coverage within a one 
(1) mile radius of the discharge site.
    47. Plastics means any garbage that is solid material, that 
contains as an essential ingredient one or more synthetic organic high 
polymers, and that is formed or shaped either during the manufacture of 
the polymer or polymers or during fabrication into a finished product 
by heat or pressure or both. ``Degradable'' plastics, which are 
composed of combinations of degradable starches are either (a) 
synthetically produced or (b) naturally produced but harvested and 
adapted for use, are considered to be plastics. Naturally produced 
plastics such as crabshells and other types of shells, which appear 
normally in the marine environment, are not considered to be plastics.
    48. ppm means parts per million.
    49. Putrescible waste means waste capable of becoming rotting, 
rotten, or stinking.
    50. Sanitary wastes means human body waste discharged from toilets 
and urinals.
    51. Severe property damage means substantial physical damage to 
property, damage to the treatment facilities which causes 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.
    52. Sidetracked well means a new hole drilled from a main well to a 
different bottom hole location.
    53. Site means the single, specific geographical location where a 
mobile drilling facility (jackup rig, semi-submersible, or arctic 
mobile rig) conducts its activity, including the area beneath the 
facility, or to a location on a single gravel island.
    54. Slush ice occurs during the initial stage of ice formation when 
unconsolidated individual ice crystals (frazil) form a slush layer at 
the surface of the water column.
    55. SPP means suspended particulate phase.
    56. Stable ice means ice that is stable enough to support 
discharged muds and cuttings.
    57. Static Sheen Test means the standard test procedure that has 
been developed for this industrial subcategory for the purpose of 
demonstrating compliance with the requirement of no discharge of free 
oil. The methodology for performing the static sheen test is presented 
in Appendix 1 to Subpart A of 40 CFR part 435.
    58. Step-out well means a new hole drilled from a main well to a 
different bottom hole location.
    59. Test fluid means the discharge which would occur should 
hydrocarbons be located during exploratory drilling and tested for 
formation pressure and content. This would consist of fluids sent 
downhole during testing along with water and particulate matter from 
the formation.
    60. Toxicity as applied to BAT effluent limitations for drilling 
fluids and drill cuttings shall refer to the toxicity test procedure 
presented in Appendix 2 to Subpart A of 40 CFR 435.
    61. Unstable or broken ice conditions means greater than 25 percent 
ice coverage within a one (1) mile radius of the discharge site after 
spring breakup or after the start of ice formation in the fall, but not 
stable ice.
    62. 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 (see Part IV.H.).
    63. v/v means volume of oil/volume of mud (per API Retort Test).
    64. Victual waste means any spoiled or unspoiled food waste.
    65. Waste stream means any non-de minimis stream of pollutants 
within the Permittee's facility that enters any permitted outfall or 
navigable waters. This includes spills and other unintentional, non-
routine or unanticipated discharges.
    66. Water depth means the depth of the water between the surface 
and the seafloor as measured at mean lower low water (0.0).
    67. 24-hour composite sample means a flow-proportioned mixture of 
not less than 8 discrete aliquots. Each aliquot shall be a grab sample 
of not less than 100 ml and shall be collected and stored in accordance 
with procedures prescribed in the most recent edition of Standard 
Methods for the Examination of Water and Wastewater.
    68. 96-hr LC50 means the concentration of a test material that is 
lethal to 50 percent of the test organisms in a toxicity test after 96 
hours of constant exposure.

VII. References

CENTEC. 1985. Analysis of Diesel Oil in Drilling Fluids and Drill 
Cuttings. Attachment to a letter dated 4/22/95 from David F. 
Tompkins, Centec Analytical Services, to Janis Hastings, EPA Region 
10.
U.S. Department of Interior. 1992. Outer Continental Shelf Natural 
Gas and Oil Resource Management: Comprehensive Program (1992-1997). 
Proposed final. Minerals Management Service.
U.S. Environmental Protection Agency. 1993. Guidance Manual for 
Developing Best Management Practices (BMP). Office of Water. EPA 
833-B-93-004. October 1993. (Note--this can be obtained free of 
charge from the EPA Water Resource Center by calling 202/260-7786.)

[FR Doc. 95-12370 Filed 5-23-95; 8:45 am]
BILLING CODE 6560-50-P