[Federal Register Volume 61, Number 140 (Friday, July 19, 1996)]
[Notices]
[Pages 37745-37747]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-18382]


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[[Page 37746]]


ENVIRONMENTAL PROTECTION AGENCY
[FRL-5533-8]


Proposed Issuance of the NPDES General Permit for Discharges From 
the Offshore Subcategory of the Oil and Gas Extraction Point Source 
Category to the Territorial Seas of Louisiana (LAG260000)

AGENCY: Environmental Protection Agency.

ACTION: Notice of Proposed NPDES General Permit Issuance.

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SUMMARY: The Regional Administrator of Region 6 today proposes to issue 
National Pollutant Discharge Elimination System (NPDES) general permit 
No. LAG260000 for existing source facilities and New Source facilities 
in the Offshore Subcategory of the Oil and Gas Extraction Point Source 
Category (40 CFR Part 435, Subpart A) located in and discharging to 
lease blocks in the Territorial Seas of Louisiana. The discharge of 
produced water to the Territorial Seas of Louisiana from Offshore 
Subcategory facilities located in the Outer Continental Shelf (OCS) 
waters off of Louisiana is also covered by this permit.
    As proposed, the permit limitations conform to Oil and Gas 
Extraction Offshore Subcategory Guidelines and contain additional 
requirements to assure that state water quality standards will be met 
and there will be no unreasonable degradation of the marine environment 
as required by Section 403(c) of the Clean Water Act. Specifically, the 
draft permit proposes to prohibit the discharge of drilling fluids and 
drill cuttings and prohibit the discharge of produced sand. Produced 
discharges water are limited for oil and grease, toxic metals and 
organics, and chronic toxicity. In addition, limits are placed on oil 
and grease and a requirement of no discharge of priority pollutants 
except in trace amounts for well treatment, completion, and workover 
fluids, and the requirement of No Free Oil is placed on a number of 
other waste discharges associated with oil and gas operations.

ADDRESSES: Comments should be sent to: Regional Administrator, U.S. 
Environmental Protection Agency, Region 6, 1445 Ross Avenue, Dallas, 
Texas 75202-2733.

DATES: Comments must be received by September 17, 1996.

FOR FURTHER INFORMATION CONTACT: Ms. Ellen Caldwell, U.S. Environmental 
Protection Agency, Region 6, 1445 Ross Avenue, Dallas, Texas 75202-
2733. Telephone: (214) 655-7513.
    A copy of the draft permit or an explanatory fact sheet may be 
obtained from Ms. Caldwell. In addition, the current administrative 
record on the proposal is available for examination at the Region's 
Dallas offices during normal working hours after providing Ms. Caldwell 
24 hours advanced notice.

SUPPLEMENTARY INFORMATION:

Regulated Entities

    Entities potentially regulated by this action are those which 
operate offshore oil and gas extraction facilities located in the Outer 
Continental Shelf of the western Gulf of Mexico.

------------------------------------------------------------------------
                                                Examples of regulated   
                 Category                             entities          
------------------------------------------------------------------------
Industry..................................  Offshore Oil and Gas        
                                             Extraction Platforms.      
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    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that EPA is now aware 
could potentially be regulated by this action. Other types of entities 
not listed in the table could also be regulated. To determine whether 
your [facility, company, business, organization, etc.] is regulated by 
this action, you should carefully examine the applicability criteria in 
Part I. Section A.1. of the rule. If you have questions regarding the 
applicability of this action to a particular entity, consult the person 
listed in the preceding FOR FURTHER INFORMATION CONTACT section.
    Section 301(a) of the Clean Water Act (CWA or the Act), 33 USC 
1311(a), renders it unlawful to discharge pollutants to waters of the 
United States in the absence of authorizing permits. CWA section 402, 
33 USC 1342, authorizes EPA to issue National Discharge Elimination 
System (NPDES) permits allowing discharges on condition they will meet 
certain requirements, including CWA sections 301, 304, 306, 401 and 
403. Those statutory provisions require that NPDES permits include 
effluent limitations requiring that authorized discharges (1) Meet 
standards reflecting levels of technological capability, (2) comply 
with EPA-approved state water quality standards, (3) comply with other 
state requirements adopted under authority retained by states under CWA 
section 510, 33 USC 1370 and (4) cause no unreasonable degradation to 
the territorial seas, waters of the contiguous zone or the oceans.
    Three types of technology-based effluent limitations must be 
included in the permits proposed here. With regard to conventional 
pollutants, i.e., pH, BOD, oil and grease, TSS, and fecal coliform, CWA 
section 301(b)(1)(E) requires effluent limitations based on ``best 
conventional pollution control technology'' (BCT). With regard to 
nonconventional and toxic pollutants, CWA section 301(b)(2) (A), (C) 
and (D) require effluent limitations based on ``best available 
pollution control technology economically achievable'' (BAT). For New 
Sources, CWA section 306 requires effluent limitations based on New 
Source Performance Standards (NSPS). Final effluent guidelines 
specifying BCT, BAT and NSPS for the Offshore Subcategory of the Oil 
and Gas Point Source Category (40 CFR 435, Subpart A) were issued 
January 15, 1993 and were published at 58 FR 12454 on March 4, 1993.

Other Legal Requirements

State Certification

    Under section 401(a)(1) of the Act, EPA may not issue an NPDES 
permit until the State in which the discharge will originate grants or 
waives certification to ensure compliance with appropriate requirements 
of the Act and State law. Section 301(b)(1)(C) of the Act requires that 
NPDES permits contain conditions that ensure compliance with applicable 
state water quality standards or limitations. The proposed permit 
contains limitations intended to ensure compliance with state water 
quality standards and has been determined by EPA Region 6 to be 
consistent with Louisiana's water quality standards and the 
corresponding implementation plan. The Region has solicited 
certification from the Louisiana Department of Environmental Quality.

Oil Spill Requirements

    Section 311 of the CWA, ``the Act'', prohibits the discharge of oil 
and hazardous materials in harmful quantities. Discharges that are in 
compliance with NPDES permits are excluded from the provisions of 
Section 311. However, the permit does not preclude the institution of 
legal action or relieve permittees from any responsibilities, 
liabilities, or penalties for other, unauthorized discharges of oil and 
hazardous materials which are covered by Section 311 of the Act.

Endangered Species Act

    The permit, as proposed, contains limitations to protect aquatic 
life. It is also much more stringent than the previous permit which 
covered discharges to the territorial seas of Louisiana (46 FR 20284 
published April 3, 1981). The Region finds that adoption

[[Page 37747]]

of the proposed permit is unlikely to adversely affect any threatened 
or endangered species or its critical habitat. EPA is seeking written 
concurrence from the National Marine Fisheries Service (NMFS) and the 
United States Fish and Wildlife Service (USFWS) on this determination.

Environmental Impact Statement

    EPA determined that issuance of the NPDES General Permit for 
Discharges from the Offshore subcategory of the Oil and Gas Extraction 
Category to the Territorial Seas of Louisiana was a major Federal 
action significantly affecting the quality of the human environment. 
Thus, pursuant to the National Environmental Policy Act of 1969 (NEPA) 
evaluation of the potential environmental consequences of the permit 
action in the form of an Environmental Impact Statement (EIS) was 
required.
    On February 12, 1993, the U.S. Environmental Protection Agency 
(EPA), Region 6, published a Notice of Intent in the Federal Register, 
to prepare an Environmental Impact Statement FEIS) on its proposed New 
Source NPDES General Permit for the Offshore Subcategory of the Oil & 
Gas Extraction Category to the Territorial Seas of the Gulf of Mexico 
off Texas and Louisiana. The 45-day public review and comment period 
ended on March 16, 1994. A public hearing to receive comments on the 
Draft EIS and NPDES permit was held March 16, 1994.
    Because the Draft EIS evaluated the NPDES general permits for oil 
and gas operations in the Territorial Seas of Texas and Louisiana, and 
all issues related to the Texas permit have not been resolved, EPA's 
Final EIS only covers the Louisiana NPDES general permit. The Final EIS 
will be made available for a 30-day review by interested agencies, 
environmental groups, and the public. Comments received on the Final 
EIS will be considered in EPA's Record of Decision, documenting the 
completion of the NEPA process and final decision of the Louisiana 
NPDES general permit.

Ocean Discharge Criteria Evaluation

    For discharges into waters of the territorial sea, contiguous zone, 
or oceans CWA section 403 requires EPA to consider guidelines for 
determining potential degradation of the marine environment in issuance 
of NPDES permits. These Ocean Discharge Criteria (40 CFR 125, Subpart 
M) are intended to ``prevent unreasonable degradation of the marine 
environment and to authorize imposition of effluent limitations, 
including a prohibition of discharge, if necessary, to ensure this 
goal'' (45 FR 65942, October 3, 1980). An Ocean Discharge Criteria 
Evaluation was conducted to determine compliance of this proposed 
permit with those criteria. Based on the terms and conditions of the 
territorial seas permit as it is proposed, EPA has determined that 
discharges authorized by the permit will not cause unreasonable 
degradation of the marine environment. Therefore, issuance of the 
permit will not violate Ocean Discharge Criteria promulgated under CWA 
403 (c).

Coastal Zone Management Act

    The proposed permit is more stringent than the general permit for 
New and Existing Sources in the Oil and Gas Extraction Category for the 
Western Portion of the Outer Continental Shelf of the Gulf of Mexico 
(GMG290000) which has been determined to be consistent with Louisiana's 
Coastal Zone Management Plan (CZMP). Since it covers similar operations 
as that permit and is more stringent, EPA has determined that the 
activities authorized by this proposed permit are consistent with the 
local and state Coastal Zone Management Plans. The proposed permit and 
consistency determination will be submitted to the State of Louisiana 
for interagency review at the time of public notice.

Marine Protection, Research, and Sanctuaries Act

    The Marine Protection, Research and Sanctuaries Act (MPRSA) of 1972 
regulates the dumping of all types of materials into ocean waters and 
establishes a permit program for ocean dumping. In addition the MPRSA 
establishes Marine Sanctuaries Program, implemented by the National 
Oceanographic and Atmospheric Administration (NOAA), which requires 
NOAA to designate ocean waters as marine sanctuaries for the purpose of 
preserving or restoring their conservation, recreational, ecological or 
aesthetic values. No marine sanctuaries designated under the Marine 
Research and Sanctuaries Act exist in the area to which this permit 
applies.

Executive Order 12866

    The Office of Management and Budget (OMB) has exempted this action 
from the review requirements of Executive Order 12866. It should be 
noted, however, that EPA in fact prepared a regulatory impact analysis 
in connection with its promulgation of the Guidelines, submitted it to 
the OMB, and included it in the public review. See 58 FR 12492. Each of 
the technology-based conditions in the proposed permit which will 
increase industry compliance costs was considered in that regulatory 
impact analysis and review.

Paperwork Reduction Act

    The information collection required by this permit has been 
approved by the Office of Management and Budget (OMB) under the 
provisions of the Paperwork
    Reduction Act, 44 U.S.C. 3501 et seq., in submission made for the 
NPDES permit program and assigned OMB control numbers 2040-0086 (NPDES 
permit application) and 2040-0004 (discharge monitoring reports).
    Since this permit is very similar in reporting and application 
requirements and in discharges which are required to be monitored as 
the Western Gulf of Mexico Outer Continental Shelf (OCS) general permit 
(GMG290000) the paperwork burdens are expected to be nearly identical. 
When it issued the OCS general permit, EPA estimated it would take an 
affected facility three hours to prepare the request for coverage and 
38 hours per year to prepare discharge monitoring reports. It is 
estimated that the time required to prepare the request for coverage 
and discharge monitoring reports for this permit will be the same.

Regulatory Flexibility Act

    The Regulatory Flexibility Act, 5 U.S.C. 601 et seq, requires that 
EPA prepare a regulatory flexibility analysis for regulations that have 
a significant impact on a substantial number of small entities. In 
promulgating the Guidelines, EPA prepared an economic impact analysis 
showing they would directly impact no small entities. See 58 FR 12492. 
Based on those findings, EPA Region 6 certifies, pursuant to the 
provisions of 5 USC 605(b), that the permit proposed today will not 
have a significant impact on a substantial number of small entities.

    Dated: April 18, 1996.
Oscar Ramirez,
Acting Director, Water Quality Protection Division, EPA Region 6.
[FR Doc. 96-18382 Filed 7-18-96; 8:45 am]
BILLING CODE 6560-50-P