Federal Register, Volume 63 Issue 4 (Wednesday, January 7, 1998)

[Federal Register Volume 63, Number 4 (Wednesday, January 7, 1998)]
[Notices]
[Pages 846-877]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-245]

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ENVIRONMENTAL PROTECTION AGENCY

[FRL-5947-1]

Revised Draft National Pollutant Discharge Elimination System
(NPDES) General Permits for the Eastern Portion of Outer Continental
Shelf (OCS) of the Gulf of Mexico (GMG280000)

AGENCY: Environmental Protection Agency.

ACTION: Notice of Revised Draft (NPDES) General Permit Reissuance,
Notice to States of Mississippi, Alabama and Florida for Consistency
Review with approved Coastal Management Programs.

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SUMMARY: The Regional Administrator (RA) of EPA Region 4 (the
``Region'') is today proposing to revise in part Draft National
Pollutant Discharge Elimination System (NPDES) general permits for the
Outer Continental Shelf (OCS) of the Gulf of Mexico (General Permit No.
GMG280000), published at 61 FR 64876 on December 9, 1996 for discharges
in the Offshore Subcategory of the Oil and Gas Extraction Point Source
Category (40 CFR part 435, subpart A). The existing permit, jointly
issued by Regions 4 and 6 and published at 51 FR 24897 on July 9, 1986,
authorizes discharges from exploration, development, and production
facilities located in and discharging to all Federal waters of the Gulf
of Mexico seaward of the outer boundary of the territorial seas. Region
6 issued a final permit (General Permit No. GMG290000) for the Western
portion of the OCS of the Gulf of Mexico, published at 57 FR 54642 on
November 19, 1992 for facilities in Federal waters seaward of Louisiana
and Texas Waters. Today's version extends permit coverage to the
Central Planning Area, except specified areas of the Central Planning
Area which are designated as Areas of Biological Concern. Today's
proposed revised draft NPDES permits cover existing and new source
facilities in the Eastern Planning Area (Alternative B of the
Environmental Impact Statement (EIS)) with operations on Federal leases
occurring in water depths seaward of 200 meters, occurring offshore the
coasts of Florida and Alabama, and existing and new source facilities
in the Central Planning Area (Alternative A of the EIS), with
operations located in and discharging pollutants to federal waters in
lease blocks located seaward of the outer boundary of the territorial
seas offshore Mississippi and Alabama. The western boundary of the
coverage area is demarcated by Mobile and Viosca Knoll leases located
seaward of the outer boundary of the territorial seas from the coasts
of Mississippi and Alabama in the Central Planning Area; except
specific areas in the Central Planning Area which may be designated by
EPA as Areas of Biological Concern (See Fact Sheet and Draft
Environmental Impact Statement). The eastern boundary of the coverage
area is demarcated by the Vernon Basin leases north of the 26 deg.
parallel and in water depths seaward of 200 meters.
All permittees holding leases on which a discharge has taken place
within 2 years of the effective dates of the new general permits
(operating facilities) in these areas must file a written notice of
intent to be covered by either the new general permit for existing
sources or the new general permit for new sources within 60 days after
publication of the final determination on this action. Non-operational
leases, i.e., those on which no discharges have taken place in the 2
years prior to the effective date of the new general permits, are not
eligible for coverage under either general permit, and their coverage
under the old general permit will terminate on the effective date of
the new general permits. No NOI's will be accepted on non-operational
or newly acquired leases until such time as an exploration plan or
development production plan has been prepared for submission to EPA.
The notice of intent must contain the information set forth in 40 CFR
122.28(b)(2)(ii) and Section A.4 of the NPDES permit. In accordance
with Oil and Gas Extraction Point Source Category; Offshore Subcategory
Effluent Guidelines and New Source Performance Standards published at
58 FR 12454 on March 4, 1993, EPA Region 4 is making an Environmental
Impact Statement (EIS) available concurrently with the general permits
for review during the public comment period that addresses potential
impacts from facilities that may be defined as new sources in the
context of a comprehensive offshore permitting strategy. As set forth
in Section 2.4.2 of the EIS and information received, the Regional
Administrator has determined that the area in the Eastern Planning Area
shoreward of the 200 meter depth and certain designated areas in the
Central Planning Area includes extensive live bottom and other valuable
marine habitats and includes areas of biological concern, which should
be subject to more stringent review based on the ocean discharge
criteria under Section 403 of the Clean Water Act (CWA) and findings of
the EIS. Accordingly, individual permits will be issued for operating
facilities on lease blocks traversed by and shoreward of the 200 meter
water depth in the Eastern Planning Area and certain designated areas
of biological concern in the Central Planning Area. Owners or operators
of those leases will be notified in writing that an individual permit
is required. A brief statement of the reasons for this decision will be
provided, together with an application form and a deadline for filing
the application. If a timely application is received, general permit
coverage will continue and shall automatically terminate on the date
final action is taken on the individual NPDES permit application, in
accordance with 40 CFR 122.28(b)(3)(ii). No application will be
accepted for non-operational leases until such time as an exploration
plan or development production plan has been prepared for submission to
EPA. Owners of non-operational leases and operators who neither file a
notice of intent nor an individual permit application will lose
coverage under the old general permit on the effective date of the new
general permits.
As proposed, these NPDES general permits include BPT, BCT, and BAT

[[Page 847]]

limitations for existing sources and NSPS limitations for new sources
as recently promulgated in the effluent guidelines for the offshore
subcategory at 58 FR 12454 (March 4, 1993). The permits also address a
decision of the Ninth Circuit Court of Appeals by establishing limits
on cadmium and mercury and by removing references to Alternative
Toxicity Requests. In addition, the permits delete references to the
Diesel Pill Monitoring Program, incorporate a new limitation on garbage
discharges consistent with the regulations of the U.S. Coast Guard,
clarify the applicability of some of the permit's effluent limitations
and reporting requirements, establish aquatic toxicity limitations for
produced water, and include a reopener clause.

ADDRESSES: Persons wishing to comment upon or object to any aspects of
this permit reissuance or wishing to request a public hearing, are
invited to submit same in writing within forty-five (45) days of this
notice to the Office of Environmental Assessment, United States
Environmental Protection Agency, Region 4, Atlanta Federal Center, 61
Forsyth Street, S.W., Atlanta, GA 30303-3104, Attention: Ms. Lena
Scott.

DATES: Comments on this proposed action must be received by February
23, 1998.

FOR FURTHER INFORMATION: Contact Mr. Roosevelt Childress, Chief,
Surface Water Permits Section, telephone (404) 562-9279, or Mr. Larry
Cole, Environmental Engineer, telephone (404) 562-9307 or the following
address: Water Management Division, Surface Water Permits Section, U.S.
EPA, Region 4, Atlanta Federal Center, 61 Forsyth Street, S.W.,
Atlanta, GA 30303-3104.

SUPPLEMENTAL INFORMATION:

Procedures for Reaching a Final Permit Decision

Pursuant to 40 CFR 124.13, any person who believes any condition of
the permit is inappropriate must raise all reasonably ascertainable
issues and submit all reasonably available arguments in full,
supporting their position, by the close of the comment period. All
comments on the proposed revised NPDES general permits and the EIS
received within the 45-day period will be considered in the formulation
of final determinations regarding the permit reissuance. EPA will
consider all written comments submitted pursuant to this notice of
revised draft general permit, as well as all written comments submitted
pursuant to the December 9, 1996 draft general permit and all comments
received during the four (4) public hearings for the draft general
permit.
After consideration of all written comments and the requirements
and policies in the Act and appropriate regulations, the EPA Regional
Administrator will make determinations regarding the permit reissuance.
If the determinations are substantially unchanged from those announced
by this notice, the Administrator will so notify all persons submitting
written comments. If the determinations are substantially changed, the
Administrator will issue a public notice indicating the revised
determinations.
A formal hearing is available to challenge any NPDES permit issued
according to the regulations at 40 CFR 124.15 except for a general
permit as cited at 40 CFR 124.71. Persons affected by a general permit
may not challenge the conditions of a general permit as a right in
further Agency proceedings. They may instead either challenge the
general permit in court, or apply for an individual permit as specified
at 40 CFR 122.21 as authorized at 40 CFR 122.28, and then request a
formal hearing on the issuance or denial of an individual permit.
Additional information regarding these procedures is available by
contacting Mr. David M. Moore, Office of Regional Counsel at (404) 562-
9547.

Procedures for Obtaining General Permit Coverage

Notice of Intent (NOI) requirements for obtaining coverage for
operating facilities under both permits are stated in Part I Section
A.4 of the general permit. Coverage under the new general permit is
effective upon receipt of notification of inclusion from the Director
of the Water Management Division. EPA will act on the NOI within a
reasonable period of time.

Exclusion of Non-Operational Leases

These permits do not apply to non-operational leases, i.e., those
on which no discharge has taken place in the 2 years prior to the
effective dates of the new general permit. EPA will not accept NOI's
for such leases, and these general permits will not cover such leases.
Non-operational leases will lose coverage under the old general permit
on the effective date of the new general permits. No subsequent
exploration, development or production activities may take place on
these leases until and unless the lessee has obtained coverage under
one of the new general permits or an individual permit. EPA will not
accept NOI's or individual permit applications for non-operational or
new acquired leases until such time as an exploration plan or
development production plan has been prepared for submission to EPA.
The new permitting requirements for leases covered under the old
general permits are summarized in Table 1.

Table 1.--New Permitting Requirements for Leases Covered Under the Old General Permit
----------------------------------------------------------------------------------------------------------------
Coverage Date old general Type of permit
Lease location Discharge status requirements permit expires coverage
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Central Planning Area & Outside (1) Operational... File an NOI within Date EPA Notifies New General
200 meter Isobath in Eastern 60 days of Lessee of New Permit, except
Planning Area. effective date of Coverage Decision. near an Area of
new general Biological
permit. Concern.
(2) Leases With File NOI At Time Effective Date of New General
Imminent Projects. Exploration Plan New General Permit, except
or Development Permit. near an Area of
Production Plan Biological
Exists. Concern.
(3) Non- No NOI will be Effective Date of None.
Operational. accepted; New General
Ineligible for Permit.
General Permit
Coverage.

[[Page 848]]

Inside 200 meter Isobath in (1) Operational... File an individual Date EPA notifies Individual Permit.
Eastern Planning Area & certain permit lessee of
designated areas in the Central application Individual permit
Planning Area. within 120 days decision.
of effective date
of new general
permit.
(2) Lessees with File an Individual Effective date of Individual Permit.
Imminent Projects. Permit New General
Application when Permit.
Lessee has
Exploration Plan
or Development
Production Plan.
(3) Non- Ineligible For Effective Date of None.
Operational. General Permit New General
Coverage. Permit.
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State Water Quality Certification

Because state waters are not included in the area covered by the
OCS general permit, its effluent limitations and monitoring
requirements are not subject to state water quality certification under
CWA Section 401.

State Consistency Determination

This revised package will also serve as Region 4's requirement
under the Coastal Zone Management Act (CZMA) to provide all necessary
information for the States of Mississippi, Alabama and Florida to
review this action for consistency with their approved Coastal
Management Programs. A copy of the consistency determination on the
proposed activities will be sent to each affected State, along with
draft copies of the draft NPDES general permit, Fact Sheet, preliminary
Ocean Discharge Criteria Evaluation, and final Environmental Impact
Statement. Other relevant information is available upon request from
each State for their review. Comments regarding State Consistency are
invited in writing to the Office of Public Affairs, United States
Environmental Protection Agency, Region 4, Atlanta Federal Center, 61
Forsyth Street, S.W., Atlanta, GA 30303-3104, Attention: Ms. Lena
Scott.

Previous Public Hearings

Four (4) previous public hearings were held on the general permit
in January and February of 1997. The hearings were held on January 28,
1997 in Gulfport, Mississippi, January 29, 1997 in Gulf Shores,
Alabama, January 30, 1997 in Pensacola, Florida and February 4, 1997 in
St. Petersburg, Florida. Comments received in these hearings will be
used in the final determinations regarding permit reissuance.

Administrative Record

The proposed revised NPDES general permits, fact sheet, preliminary
403(c) determination, EIS and other relevant documents are on file and
may be inspected any time between 8:15 a.m. and 4:30 p.m., Monday
through Friday at the address shown below. Copies of the draft NPDES
general permits, fact sheet, preliminary 403(c) determination, EIS and
other relevant documents may be obtained by writing the U.S. EPA,
Region 4, Atlanta Federal Center, 61 Forsyth Street, S.W., Atlanta,
Georgia 30303-3104, Attention: Ms. Lena Scott, or calling (404) 562-
9607.
Robert F. McGhee,
Director, Water Management Division.

Table of Contents

I. Background Information On General Permits and Proposed Individual
Permits
A. Previous OCS General Permit
B. Discussion of three (3) Alternatives Examined by EIS
C. Conclusions from EIS and more information on Biological
Communities
D. Proposed Eastern Gulf of Mexico General Permits

(1) New Sources
(2) Existing Sources
(3) Application Procedures

E. Proposed Individual Permits
F. Basis for Extending General Permit Coverage into the Central
Planning Area
G. Description of Designated Areas of Biological Concern in the
Central Planning Area
H. Oil & Gas Activities Occurring in the Eastern Gulf of Mexico
II. Description of activity and facilities which are subject of
draft permits
III. Nature of Discharges from Oil and Gas Operations and Effluent
Limits
IV. Statutory Basis for Permit Conditions
A. Technology Bases

1. BPT Effluent Limitations for Existing Source General Permit
2. BAT and BCT Effluent Limitations and New Source Performance
Standards (NSPS)
3. Previous NPDES General Permit Limitations

B. Ocean Discharge Criteria
C. Section 308 of the Clean Water Act
V. Summary of New or Changed Permit Limitations and Conditions
A. Alternative Toxicity Requests
B. Cadmium and Mercury in Barite
C. New Sources
D. Free Oil
E. Produced Sand
F. Produced Water
G. Diesel Oil Prohibition
H. Water Quality-Based Effluent Limitations and Conditions
I. Aquatic Toxicity Limits & Testing Requirements for Produced
Water
J. Discharge Prohibition in Vicinity of Areas of Biological
Concern
K. Rubbish, Trash, and Other Refuse (MARPOL)
L. 24-hr Reporting Requirement
M. Reopener Clause
N. Clarifications
VI. Specific Permit Conditions
A. Determination of Discharge Conditions
B. Area and Depth-Related Requirements
C. Section 403(c) Requirements
VII. Other Legal Requirements
A. National Environmental Protection Act
B. Oil Spill Requirements
C. Ocean Discharge Criteria Evaluation
D. Coastal Zone Management Act
E. Marine Protection, Research, and Sanctuaries Act
F. Executive Order 12291
G. Paperwork Reduction Act
H. Regulatory Flexibility Act
I. References

Fact Sheet

I. Background Information Concerning General Permits and Proposed
Individual Permits

Section 301(a) of the Clean Water Act (the ``Act'') provides that
the discharge of pollutants is unlawful except in accordance with the
terms of an NPDES permit. The Regional Administrator has determined, on
the basis of the EIS and information received, that oil and gas
facilities seaward of the 200 meter water depth in certain parts of the
Eastern Planning Area and seaward of the outer boundary of the
territorial seas in the Central Planning Areas described in the
proposed NPDES general permits are more appropriately controlled by
general permits rather than individual permits, 40 CFR 122.28(c). This

[[Page 849]]

determination covers both existing sources and new sources.
Accordingly, two (2) NPDES general permits are being proposed: one
covering existing sources and the second covering new sources. This
decision is based on 40 CFR 122.28, 40 CFR 125 (Subpart M--Ocean
Discharge Criteria), Environmental Impact Statement and the Agency's
previous decisions in other areas of the Gulf of Mexico's Outer
Continental Shelf (OCS). As in the case of individual permits,
violation of any condition of a general permit constitutes a violation
of the Act that is enforceable under section 309 of the Act.
In accordance with 40 CFR 122.28(a)(4)(iii), any owner or operator
authorized by a general permit may request to be excluded from the
coverage of the general permit by applying for an individual permit.
The owner or operator shall submit an application under 40 CFR 122.21,
with reasons supporting the request, to the Director, Water Management
Division, Surface Water Permits Section, U.S. EPA, Atlanta Federal
Center, 61 Forsyth Street, S.W., Atlanta, GA 30303-3104.

A. Previous OCS NPDES General Permit

The Regional Administrator for EPA Region 4 is today proposing to
reissue in part the National Pollutant Discharge Elimination System
(NPDES) general permit for the Outer Continental Shelf of the Gulf of
Mexico (General Permit No. GMG280000) under Region 4 jurisdiction. This
previous permit, published at 51 FR 24897 (July 9, 1986), issued
jointly for the Eastern and Western Gulf of Mexico by Regions 4 and 6,
expired on July 1, 1991. Region 6 reissued a final existing permit for
the Western Portion of the Outer Continental Shelf (General Permit No.
GMG290000), published at 57 FR 54642 (November 19, 1992) with a
modification published at 58 FR 63964 (December 3, 1993). Region 4,
continued coverage under the previous OCS general permit to permittees
that requested to be covered before the previous general permit expired
on July 1, 1991. Region 4 proposed draft NPDES general permits for the
Eastern Gulf of Mexico at 61 FR 64876 on December 9, 1996, regulating
existing source and new source oil and gas OCS discharges. Today's
proposed Eastern Gulf of Mexico OCS revised general permits regulate
existing source and new source OCS discharges throughout the Gulf of
Mexico for offshore areas under the jurisdiction of Region 4.

B. Discussion of Three (3) Alternatives Examined by the Environmental
Impact Statement (EIS)

Since the promulgation of effluent guidelines and standards of
performance for new sources at 58 FR 12454 (March 4, 1993), EPA
regulations in 40 CFR 122.29(c) require that the issuance of an NPDES
permit to a new source be subject to environmental review provisions of
the National Environmental Policy Act (NEPA) as defined in 40 CFR Part
6, Subpart F. A Draft Environmental Impact Statement (EIS) has been
prepared by EPA. The EIS examined three (3) alternatives for permitting
exploration development and production phases of oil and gas
activities. Alternative A: Issuing two general permits, one for
existing sources and the other for new sources, that would cover the
entire EPA Region 4 jurisdictional area except areas under moratorium.
Alternative B: Issuing two general permits, one for existing sources
and the other for new sources, that would only apply to locations
seaward of the 200 meter isobath, and would exclude areas under
moratorium. Alternative C: EPA would not issue NPDES general permits
covering either existing sources or new sources and would handle all
future oil and gas activities occurring in EPA Region 4 jurisdictional
area by individual permits. Chapter 2 of the EIS should be reviewed for
a discussion of these three (3) alternatives. Chapter 3 of the EIS
discusses the affected environment and potential environmental
consequences of the three (3) alternatives. EPA, Region 4, plans to
issue shortly the final EIS.

C. Conclusions From EIS and Information Received on Biological
Communities in the Coastal Shelf and Shelf-Break Zone

The EIS reviews available data and studies on discharges from oil
and gas facilities and the potential for these discharges resulting in
impacts to benthic communities of short and long term duration. The EIS
concludes that because of the abundance and sensitivity of the
biological resources present from 200 meters of depth and shallower and
potential secondary impacts, individual permits for these areas which
incorporate permit stipulations on a case-by-case review would be more
protective of the numerous biological communities present in the 200
meter water depths or shallower, and help ensure compliance with
Section 403(c) of the CWA. Because areas of biological concern are more
abundant in water depths of 200 meters or shallower and potential for
environmental impacts is greater, Region 4 chose alternative B as its
preferred alternative as the permitting strategy for the Eastern Gulf
of Mexico. This alternative would have required individual permits to
be issued for activity occurring in water depths 200 meters of
shallower, off the coasts of Mississippi, Alabama and Florida. Based on
more complete information, Region 4 is adopting alternative A for the
Eastern Gulf of Mexico's Central Planning Area, which provides for
general permit coverage within the Central Planning Area, except in
certain designated areas specifically excluded from NPDES general
permit coverage identified as areas of biological concern. This
approach allows for case-by-case review of impacts in waters 200 meters
of depth and shallower in the Eastern Planning Area where less
information is available for the assessment of impacts, and in areas of
biological concern identified within the Central Planning Area where
more complete information regarding environmental impacts are
available. This strategy requires current or proposed oil and gas
operations in the Eastern Planning Area shoreward of the 200 meter
water depth and in certain designated areas of the Central Planning
Area to seek individual existing source or new source permits, as
appropriate.

D. Proposed Eastern Gulf of Mexico NPDES General Permits

These proposed draft Eastern Gulf of Mexico NPDES general permits
authorize discharges from exploration, development, and production
facilities (existing sources or new sources) discharging to Federal
waters of the United States of the Gulf of Mexico. Region 4's coverage
area for these general permits includes all discharges occurring in
leases located seaward of the 200 meter water depth for offshore,
Alabama and Florida in the Eastern Planning Area and discharges
occurring seaward of the outer boundary of the territorial seas
offshore Alabama and Mississippi in the Central Planning Area, as
explained in Part I Section A(1) of the general permit. These permits
do not cover areas included under Congressional or Presidential
moratorium for oil and gas activities in Federal waters.
40 CFR 122.29 requires that separate permits be issued for new
sources. Accordingly, two general permits will be issued for the area
seaward of the 200 meter depth in the Eastern Planning Area and seaward
of the outer boundary of the territorial seas in the Central Planning
Area: one for new sources, and the other for existing sources. These

[[Page 850]]

permits apply only to operating facilities; they do not apply to non-
operational leases.
(1) New Source General Permit
The RA has determined, in accordance with 40 CFR 122.28(c), that
the new source general permit will apply to all new sources, as that
term is defined at 40 CFR 122.2 as ``any building, structure, facility,
or installation from which there is or may be a discharge of
pollutants, the construction of which is commenced:
(a) After promulgation of standards of performance under section
306 of CWA which are applicable to such source, or
(b) After proposal of standards of performance in accordance with
section 306 of CWA which are applicable to such sources, but only if
the standards are promulgated in accordance with section 306 within 120
days of their proposal.''
If construction was commenced after March 4, 1993, the facility is
a new source. Because drilling rigs are moved from site to site for
several years and production platforms can be built on shore and
transported to an offshore site, the actual construction of the
equipment or facility can occur years before there is a discharge of
pollutants from that equipment or facility at a particular site.
Therefore, the definition of the ``construction'' of a new source must
be addressed. The regulations at 40 CFR 122.29(b)(4) state:
``(4) Construction of a new source as defined under 122.2 has
commenced if the owner or operator has:
(i) Begun, or caused to begin as part of a continuous on-site
construction program:
(A) Any placement, assembly, or installation of facilities or
equipment; or
(B) Significant site preparation work including clearing,
excavation or removal of existing buildings, structures, or facilities
which is necessary for the placement, assembly, or installation of new
sources facilities or equipment; or
(ii) Entered into a binding contractual obligation for the purchase
of facilities or equipment which are intended to be used in its
operation within a reasonable time. Options to purchase or contracts
which can be terminated or modified without substantial loss, and
contracts for feasibility engineering, and design studies do not
constitute a contractual obligation under the paragraph.''
EPA defines ``significant site preparation work'' as ``the process
of clearing and preparing an area of the ocean floor for purposes of
constructing or placing a development or production facility on or over
the site'' (50 FR 34619). Therefore, development and production wells
are new sources unless the site was cleared and prepared for the
purposes of constructing or placing a development or production
facility over that site before the promulgation of the effluent
guideline for the offshore subcategory on March 4, 1993. Exploration
activities are not considered significant site preparation work;
therefore sites where exploration has occurred are not considered
existing sources.
EPA regulations also define the term ``site'' at 40 CFR 122.2 as
``the land or water area where any facility or activity is physically
located or conducted, including adjacent land used in connection with
the facility or activity.'' EPA interprets the term ``water area'' to
mean the ``specific geographical location where the exploration,
development, or production activity is conducted, including the water
column and ocean floor beneath activities.'' Thus, if a new platform is
built at or moved from a different location, it will be considered a
new source when placed at the new site where its oil and gas activities
take place. Even if the platform is placed adjacent to an existing
platform, the new platform will still be considered a ``new source''
occupying a ``new water'' area, and therefore, a ``new site'' (50 CFR
34618).
(2) Existing Source General Permit
All other facilities must obtain coverage under the existing source
general permit. Existing sources are those facilities where significant
site preparation work has occurred, or development and production
activity has taken place, on or before March 4, 1993. These same
facilities, however, would become new sources if they moved to a new
water area to commence production or development activities.
Exploratory activities require existing source general permit coverage.
(3) Application Procedures
Permittees holding leases with operating facilities seaward of the
200 water meter depth in the Eastern Planning Area and seaward of the
outer boundary of the territorial seas in the Central Planning Area
(except designated areas of Biological Concern) will be required to
file a Notice of Intent, pursuant to 40 CFR 122.28(b)(2)(ii), to be
covered by either the new source general permit or the existing source
general permit, as applicable, within 60 days after publication of the
final determination on this action. Such notice fulfills the permit
application requirements under federal regulations. The permittee will
be covered under the appropriate new general permit (existing or new
source) upon receipt of notification of inclusion from the Director. A
discharger having coverage under the old general permit who fails to
timely submit such a notice is not authorized to discharge pursuant to
40 CFR 122.28(b)(2), and is no longer covered under the old general
permit.

E. Proposed Individual Permits

All lease blocks with operating facilities traversed by or
shoreward of the 200 meter isobath in the Eastern Planning Area and in
designated areas of biological concern in the Central Planning Area
(See Item G below for designated areas of biological concern and
Appendix B for map showing area) will be required to apply for and
obtain individual permits in order to discharge into U.S. waters. No
individual permits will be issued for non-operational leases until an
exploration plan or development production plan has been prepared for
submission to EPA. As with the general permits, there are two kinds of
individual permits that will be issued.
The first is an individual new source permit. The application
requirements for new sources are set forth at 40 CFR 122.21(k) and (l).
Prior to issuance of such permits, the law requires that an
Environmental Impact Statement (EIS) or Environmental Assessment (EA)
be prepared. In order to allow EPA to conduct that review, the
applicant must submit information as set forth in 40 CFR 6.604(b).

F. Basis for Extending General Permit Coverage Into the Central
Planning Area

Region 4, after review of more complete data, proposes to extend
general permit coverage into the Central Planning Area. Based on
current activity levels in the Central Planning Area (CPA), the Region
believes the CPA has been extensively surveyed for the location of
drilling and production sites and have been documented. Available
scientific survey literature of the Mississippi-Alabama shelf notes the
general lack of firm bottom substrate for attachment of bottom life,
high water column turbidity in much of the east-central inner shelf,
and a trend of increased water clarity and light penetration eastward
(Vittor, 1985). The Area is not normally under the influence of the
sub-tropical Loop Current that elsewhere stabilizes water temperature
more suitable to increased epifaunal diversity. It has also been
documented that the bottom area offshore Mississippi-Alabama
experiences substantial deposition of

[[Page 851]]

fine particle sediments eminating from cover rivers (Rabalais and
Boesch, 1987) that would tend to cover previously exposed hard
substrate. Features that Region 4 is now defining as Areas of
Biological Concern are pronounced in terms of topography and are fairly
well discernable by survey. Brooks and Giammona found predominately
soft sediments punctuated in some areas with rock outcrops and
topographic (the pinnacle trend) high features. The Region has added a
condition to the NOI requirements for applicants seeking general permit
coverage to provide photodocumentation and geohazards surveys in order
to allow approval of specific project sites in the Central Planning
Area after this data is reviewed.

G. Description of Designated Areas of Biological Concern in the Central
Planning Area

A. Southwest Rocks
Feature consists of two clusters of pitted shell and sandstone rock
outcrops measuring 23-30 feet across and 5-11 feet across, rising 3-5
feet above the bottom. Feature includes a gently sloping ridge with 3-5
feet of relief. The feature is in water depths of 66-72 feet,
approximately 10.5 miles south of Dauphin Island. Rocks bear epifaunal
encrustation mainly of barnacles, serpulid worms and bryozoans.
(Schroeder, 1988)
B. Southeast Banks
A rock rubble field consisting of irregularly shaped, pitted
sandstone slabs up to 2.5 x 2.3 x 0.7 feet in size. Rocks have
epifaunal encrustation. Feature includes two sites located in water
depths of 70 to 87 feet, 17 miles south of the Ft. Morgan peninsula.
(Schroeder, 1988)
C. 17 Fathom Hole
Feature is an uncharted, irregular bottom depression in 98-105 feet
of water. It is composed of an assortment of irregularly-shaped rock
rubble, shell and coarse sand. The feature is located approximately 23
miles south of the entrance to Mobile Bay. (Schroeder, 1988)
D. Pinnacle Trend
This feature occupies Viosca Knoll Lease Blocks 473-476, 521 and
522, 564-566, 609 and 610 within Region 4 jurisdiction. This is a
series of topographic irregularities with variable biotic coverage
along the Mississippi-Alabama shelf break, between the 40-80 meter
depth contours. The feature contains a variety of structure including
low-relief rocky structure to more dramatic pinnacle-shaped structures,
ridges, scarps and relict patch reefs. The structure provides
significant solid substrate for attachment by different invertebrate
organisms that vary in number and diversity. (MMS, 1997)
The RA will then make and publish a determination as to whether the
facility seeking a permit is a new source.
The second type of individual permit is for an existing source.
Applicants shall submit the information required by 40 CFR 122.21(f),
together with any additional information required to determine the
appropriate permit limits based on ocean discharge criteria under
Sec. 403 of the CWA.
Permittees holding leases shoreward of the 200 meter depth in the
Eastern Planning Area and in designated areas of biological concern in
the Central Planning Area will be given individual notice of the
requirement to apply for an individual permit, a brief statement of the
reasons therefore, a copy of the application form, and a deadline for
filing the application. No applications will be accepted for non-
operational or newly acquired leases until such time as an exploration
plan or development production plan has been prepared for submission to
EPA. All permittees with operational facilities, i.e., leases on which
a discharge has taken place within 2 years of the effective date of the
new general permits, who file a timely application will continue to be
covered under the old general permit until a final action has been
taken on the individual permit application.

H. Oil and Gas Activities in the Eastern Gulf of Mexico

Historically, activity in the Eastern Gulf of Mexico has been less
than that in areas west of Region's 4 jurisdiction. This was partly due
to the demand for natural gas and economics associated with drilling
costs necessary to reach the deep Norphlet and other producible
commercial formations. As the price and demand for natural gas
increases, along with the development of deep water drilling and
producing technology, exploration activities in this area will
continue. In 1991, an EPA Region 4 survey of the major oil companies
revealed that fifty (50) wells had been drilled in the eastern Gulf and
17 wells were producing. The producing wells were located either
offshore Alabama and Mississippi, with no producing wells located in
Federal waters offshore Florida. Additionally, the 1991 survey revealed
that there are only three facilities discharging produced water. These
facilities were located in the Mobile leasing area: one in Block 908
discharging approximately 2 barrels of produced water per day (BPD);
one in Block 990 discharging approximately 160 BPD; and one in Block
821 discharging approximately 240 BPD. A map of the area revealed that
these facilities are located in 15-20 meters of water. The survey
revealed that there were no current producing wells seaward of water
depths greater than 40 meters.

II. Description of Activity and Facilities Which Are Subject of
Draft Permits

The Oil and Gas Extraction Point Source Category (40 CFR 435--
Subpart A) includes facilities engaged in field exploration,
development and well production and well treatment. Exploration
facilities are fixed or mobile structures engaged in the drilling of
wells to determine the nature of potential hydrocarbon reservoirs. A
development facility is any fixed or mobile structure engaged in the
drilling and completion of productive wells, which may occur prior to,
or simultaneously with production operations. Production Facilities are
fixed or mobile structures engaged in well completion or used for
active recovery of hydrocarbons from producing formations.

III. Nature of Discharges From Oil and Gas Operations and Effluent
Limits

The proposed general permits will authorize the following
discharges to occur in the previously delineated coverage area:
drilling mud; drill cutting; produced water; well treatment fluids;
workover fluids; completion fluids; deck drainage, sanitary wastes;
domestic wastes, desalinization unit discharges, blowout preventer
fluid; fire control system test water; non-contact cooling water;
uncontaminated ballast water; uncontaminated bilge water; excess cement
slurry; and mud, cuttings and cement at the seafloor. The proposed
permits will authorize discharges from facilities engaged in field
exploration, development and well production and well treatment, for
offshore operations for both existing and new sources for leases in the
Eastern Gulf of Mexico.
The effluent guidelines include Best Available Technology
Economically Achievable (BAT) limitations for existing sources and New
Source Performance Standards (NSPS) that are based on the best
available demonstrated technology for new sources. New facilities have
the opportunity to install the best and most efficient production
processes and waste water treatment technologies. Therefore, Congress
directed EPA to consider the best demonstrated process

[[Page 852]]

changes, in-plant controls, and end-of-process control and treatment
technologies that reduce pollution to the maximum extent feasible for
implementation by new sources.
Upon its issuance in 1986, the existing general permit was
judicially challenged by various parties in Natural Resources Defense
Council v. EPA, 863 F.2d 1420 (9th Cir. 1988). Although the Court
affirmed EPA's permit decisions on most of the issues litigated, the
Court (1) invalidated the provisions that allowed for case-by-case
variances from toxicity limitations under the permit's alternate
toxicity request provisions, and (2) held that EPA should have provided
additional consideration to requiring the use of ``clean'' barite in
drilling fluids. Today's proposal responds to that decision.
In the reissuance of these NPDES general permits, EPA Region 4 is
responding to four legal or regulatory developments. The first legal
development is the decision of the Ninth Circuit Court on challenges to
the 1986 permit. All references to alternative toxicity limits are
eliminated from this permit and the use of clean barite is required for
drilling operations. The second regulatory development is the
promulgation of final BAT and NSPS guidelines for the offshore
subcategory (58 FR 12454). These NPDES general permits provide an
explanation of how the determination of new sources will be made and
incorporate the limitations and conditions set forth by the guidelines
for offshore exploration, development, and production waste streams.
The third and fourth regulatory developments are EPA's national policy
on water quality-based permit limitations (49 FR 9016) and the issuance
of pollution prevention regulations by the U.S. Coast Guard (33 CFR
151). The national policy is a strategy to control pollutants beyond
BAT in order to meet water quality standards by use of biological and
chemical methods to address toxic and nonconventional pollutants. The
U.S. Coast Guard regulations are incorporated into the permit to be
consistent with international regulations for the disposal of food and
incinerator wastes.
Comments on these draft NPDES general permits need not be limited
to those changes listed above. EPA is specifically soliciting
information to further characterize present and anticipated activities
on the eastern Gulf of Mexico OCS. EPA Region 4 may revise any
provisions of the permit in response to public comments when it issues
the final permit.

IV. Statutory Basis for Permit Conditions

Sections 301(b), 304, 306, 307, 308, 401, 402, 403 and 501 of the
Clean Water Act (The Federal Water Pollution Control Act Amendments of
1972, as amended by the Clean Water Act of 1977 and the Water Quality
Act of 1987), 33 U.S.C. 1311, 1314(b), (c) and (e), 1316, 1317, 1318
and 1361; 86 Stat. 816, Pub. L. 92-500; 91 Stat. 1567, Pub. L. 95-217;
101 Stat. 7 Pub. L. 100-4 (``the Act'' or CWA''), and the U.S. Coast
Guard Regulations (33 CFR Part 151), provide the basis for the permit
conditions contained in both the existing and new source general
permits. The general requirements of these sections fall into three
categories, which are described in sections A-C below.

4A. Technology Bases

1. BPT Effluent Limitations
The Act requires particular classes of industrial discharges to
meet effluent limitations established by EPA. EPA promulgated effluent
guidelines requiring Best Practicable Control Technology Currently
Available (BPT) for the Offshore and Coastal Subcategories of the Oil
and Gas Extraction Point Source Category (40 CFR Part 435, Subparts A
and D) on April 13, 1979 (44 FR 22069).
BPT effluent limitations guidelines require ``no discharge of free
oil'' for discharges of deck drainage, drilling muds, drill cuttings,
and well treatment fluids. This limitation requires that a discharge
shall not cause a film or sheen upon, or discoloration on, the surface
of the water or adjoining shorelines, or cause a sludge or emulsion to
be deposited beneath the surface of the water or upon adjoining
shorelines (40 CFR 435.11(d)). The BPT effluent limitation guideline
for sanitary waste required that the concentration of chlorine be
maintained as close to 1 mg/l as possible in discharges from facilities
housing ten or more persons. No floating solids are allowed as a result
of sanitary waste discharges from facilities continuously staffed by
nine or fewer persons or intermittently staffed by any number. A ``no
floating solids'' guideline also applies to domestic waste. BPT
limitations on oil and grease in produced water allowed a daily maximum
of 72 mg/l and a monthly average of 48 mg/l.
2. BAT and BCT Effluent Limitations and New Source Performance
Standards
As of March 31, 1989, all permits are required by section 301(b)(2)
of the Act to contain effluent limitations for all categories and
classes of point sources which: (1) Control toxic pollutants (40 CFR
401.15) and nonconventional pollutants through the use of Best
Available Technology Economically Achievable (BAT), and (2) represent
Best Conventional Pollutant Control Technology (BCT). BCT effluent
limitations apply to conventional pollutants (pH, BOD, oil and grease,
suspended solids, and fecal coliform). In no case may BCT or BAT be
less stringent than BPT.
BAT and BCT effluent limitations guidelines and New Source
Performance Standards (NSPS) for the Offshore Subcategory were proposed
on August 26, 1985 (50 FR 34592) and signed on January 15, 1993 (58 FR
12454, March 4, 1993). The new guidelines were established under the
authority of sections 301(b), 304, 306, 307, 308, and 501 of the Act.
The new guidelines were also established in response to a Consent
Decree entered on April 5, 1990 (subsequently modified on May 28, 1993)
in NRDC v. Reilly, D. D.C. No. 79-3442 (JHP) and are consistent with
EPA's Effluent Guidelines Plan under section 304(m) of the CWA (57 FR
41000, September 8, 1992). The proposed existing source general permit,
incorporates BAT and BCT effluent limitations based upon the more
stringent standards of the recently promulgated effluent guidelines or
previous general permit existing requirements, and incorporate
additional discharge restrictions based on environmental data. The
proposed new source general permit is based on the recently promulgated
NSPS based on the best available demonstrated technology, and
incorporate additional discharge restrictions based on environmental
data. Since the March 4, 1993 Offshore Effluent Guidelines and New
Source Performance Standards basically set BAT limitations equal to
NSPS, the proposed limitations, conditions, and monitoring requirements
for today's proposed existing source general permit and new source
general permit are identical.
3. Previous NPDES General Permit Limitations
Per Section 402(o)(1) of the Clean Water Act and 40 CFR 122.44(l),
when a permit is reissued the effluent limitations must be as stringent
as the final effluent limitations of the previous permit unless the
circumstances on which the previous permit was based have materially
and substantially changed since the time the permit was issued. Part IV
of the fact sheet discusses the new or changed permit limitations and
conditions. All the

[[Page 853]]

limitations of the proposed NPDES general permit are as stringent or
more stringent as the previous permit effluent limitations and
conditions. The Alternative Toxicity Requests (ATRs) language of the
previous permit, which allowed more toxic muds to be discharged after a
case-by-case review, were invalidated by the Ninth Circuit Court;
therefore, all references to the ATR process are deleted from this
proposed NPDES general permit.

B. Ocean Discharge Criteria

Section 403 of the Act requires that an NPDES permit for a
discharge into marine waters located seaward of the inner boundary of
the territorial seas (i.e., state and federal offshore waters) be
issued in accordance with guidelines for determining the potential
degradation of the marine environment. These guidelines, referred to as
the Ocean Discharge Criteria (40 CFR Part 125, Subpart M), and section
403 of the Act 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'' (49 FR 65942, October 3, 1980).
If EPA determines that the discharge will cause unreasonable
degradation, an NPDES permit will not be issued. If a definitive
determination of no unreasonable degradation cannot be made because of
insufficient information, EPA must then determine whether a discharge
will cause irreparable harm to the marine environment and whether there
are reasonable alternatives to on-site disposal. To assess the
probability of irreparable harm, EPA is required to make a
determination that the discharger, operating under appropriate permit
conditions, will not cause permanent and significant harm to the
environment during a monitoring period in which additional information
is gathered. If data gathered through monitoring indicate that
continued discharge may cause unreasonable degradation, the discharge
shall be halted or additional permit limitations established.
A preliminary Ocean Discharge Criteria Evaluation has been drafted.
Region 4 has determined that discharges occurring under the proposed
NPDES general permits, incorporating appropriate effluent limits and
monitoring requirements, will not cause unreasonable degradation for
existing and new source dischargers occurring in areas seaward of the
200-meter water depth in the Eastern Planning Area and seaward of the
outer boundary of the territorial seas in the Central Planning Area
(except in designated areas of biological concern).

C. Section 308 of the Clean Water Act

Under section 308 of the Act and 40 CFR 122.44(i), the Director
must require a discharger to conduct monitoring to determine compliance
with effluent limitations and to assist in the development of effluent
limitations. EPA has included several monitoring requirements in the
permit, as listed in the table in section VI.A of this fact sheet.

V. Summary of New or Changed Permit Limitations and Conditions

The following discussion is intended to provide a summary of the
parts of the proposed permit which are substantively different from the
1986 permit. For a detailed discussion of requirements and their bases,
please refer to Section VI of this fact sheet. Many of the new and
changed requirements result from promulgation of the final Effluent
Limitations Guidelines and New Source Performance Standards for the
Offshore Subcategory in March, 1993 (see 40 CFR Part 435, Subpart A).

A. Alternative Toxicity Requests

The existing OCS general permit contains a general toxicity
limitation on drilling fluids, prohibiting the discharge of fluids
having an aquatic toxicity LC50 value of less than 30,000 ppm of the
suspended particulate phase (SPP). Because the Regions believed that
some specific drilling operations might require the limited use of more
toxic drilling fluids, the permit also contained a procedure under
which an operator could submit an alternative toxicity request (ATR)
for approval by the Region. Region 4 did not approve any ATRs under the
existing general permit. Upon review, the Ninth Circuit Court
invalidated the ATR provisions of the current permit. Therefore, all
references to the ATR process are deleted from both proposed NPDES
general permits, making it consistent with the Court's decision.

B. Cadmium and Mercury in Barite

EPA Region 4 is implementing the selected option of the BAT/NSPS
effluent guidelines by limiting the amount of cadmium (Cd) and mercury
(Hg) discharged in drilling fluids to 3 mg of Cd/kg and 1 mg of Hg/kg
(dry weight) in the source barite used in drilling fluids. This
limitation also is consistent with the Ninth Circuit Court's decision
that operators should be required to use the cleanest source of barite
available. The limitations and monitoring requirements for cadmium and
mercury are the same for both the existing source and new source
general permits.
The toxic pollutants cadmium and mercury are found in barite which
is added to drilling fluids as a weighting agent. Different types of
barite deposits contain varying concentrations of toxic pollutants,
with bedded deposits (referred to as ``clean'') containing the lowest
metal levels, while vein deposits have much higher concentrations of
trace metals. The Agency, when the OCS Gulf of Mexico general permit
was first issued, decided not to impose limits on cadmium and mercury
because of incomplete information on the availability of clean barite
for all Gulf operations. However, the Ninth Circuit Court held invalid
the Agency's decision not to impose any limitations on cadmium and
mercury in discharged drilling fluids and stated that ``EPA should
provide in the Gulf of Mexico permit, as it did in the Alaska permit,
that clean barite should be used as long as it is available.'' The BAT/
NSPS limitations of this in both the existing source and new source
general permit are consistent with that decision.
A representative sample of the stock barite shall be monitored and
reported once for each well or once for each additional supply of
barite received while drilling a well. If subsequent wells are drilled
at a site, new analyses are not required for each well if no new
supplies of barite are received since the previous analysis.
The results for total mercury and cadmium shall be reported on the
monthly Discharge Monitoring Report (DMR) for each well drilled. If a
previous analysis is used in subsequent months or for subsequent wells,
the results of that analysis should be reported on the DMRs for the
later months and wells. If the supplier of the barite provides the
analysis to the operator, the concentration shall be reported on the
DMR with an indication that the information was provided by the
supplier. All reported analyses, whether performed by the permittee or
the supplier of the barite, shall be conducted by absorption
spectrophotometry (see 40 CFR Part 136, flame and flameless AAS) and
results expressed as mg/kg (dry weight) of barite.

C. New Sources Performance Standards (NSPS)

NSPS have been added to operations previously defined as new
sources in the fact sheet. In accordance with 58 FR 12456 of March 4,
1993, NSPS are based

[[Page 854]]

on the best available demonstrated technology. New plants have the
opportunity to install the best and most efficient production processes
and wastewater treatment technologies. Therefore, Congress directed EPA
to consider the best demonstrated process changes, in-plant controls
and treatment technologies that reduce pollution to the maximum extent
feasible. In addition, in establishing NSPS, EPA is required to take
into consideration the cost of achieving the effluent reduction and any
non-water impacts and energy requirements.

D. Free Oil

The existing NPDES general permit requires operators to use the
visual sheen test to monitor for free oil on the surface of the
receiving water when discharging muds and cuttings. This method can be
used only during daylight when weather and sea conditions are such that
observation of a sheen is possible. At all other times, discharge is
permitted provided that the operator used an alternate test, the static
(laboratory) sheen test, for monitoring for free oil. However, BAT and
NSPS effluent guidelines require the use of the static sheen test for
monitoring free oil at all times for discharges of muds and cuttings to
offshore waters. In these proposed NPDES general permits, Region 4 is
implementing the final effluent guidelines by requiring the static
sheen test as the monitoring requirement for detecting free oil in
drilling fluid and cuttings. The Region is requiring that this same
method be used for well treatment, completion, and workover fluid
discharges as well. In accordance with the final effluent guidelines,
free oil from deck drainage will continue to be monitored as in the
existing general permit by use of the visual sheen test. The Region
feels that the static sheen test is the appropriate test method for the
eastern Gulf of Mexico. Because the test is conducted prior to
discharge, it allows the operator to avoid potential costly violations
and affords more protection to the environment by requiring compliance
monitoring before the discharge has occurred. The test is to be
conducted in accordance with the methodology in the final effluent
guidelines (58 FR 12506; see permit Part IV.A.3). The number of times
that a sheen is observed shall be reported on the monthly DMR.

E. Produced Sand

The existing NPDES general permit requires operators to use the
visual sheen test to monitor for free oil on the surface of the
receiving water when discharging produced sand. This method can be used
only during daylight when weather and sea conditions are such that
observation of a sheen in the vicinity of the discharge is possible.
The final BAT and NSPS effluent guidelines for the offshore subcategory
prohibit the discharge of produced sand. EPA did not determine that the
prohibition is the ``best available'' or ``best demonstrated''
technology. However, onshore disposal is widely practiced throughout
the industry to meet the no free oil limitations either due to
economics (cost of onsite washing is comparable to cost of onshore
disposal), logistic considerations (scheduling or space requirements),
or because of the inability to reliably meet the no free oil limitation
even after washing. Region 4 is implementing the final guidelines by
prohibiting the discharge of produced sand under both general permits.

F. Produced Water

The existing NPDES general permit established an effluent oil and
grease limit for produced water of 48 mg/l monthly average and 72 mg/l
daily maximum. The final effluent guidelines have established BAT and
NSPS oil and grease limitations for produced water discharges of 29 mg/
l monthly average and 42 mg/l daily maximum. These limitations are
based on the use of gas flotation treatment technology which is
determined to be the best available technology economically achievable
for the offshore subcategory. Region 4 is implementing these
limitations in both NPDES general permits for the eastern Gulf of
Mexico OCS. Monitoring methods for this limitation are the same as
under the existing permit. Both the highest daily maximum concentration
and the monthly average concentration are reported on the monthly DMR.

G. Diesel Oil Prohibition

The existing OCS general permit contains provisions that
established the Diesel Pill Monitoring Program (DPMP), a 15-month study
to determine whether a diesel pill added to the mud system to free
stuck pipe could effectively be removed from a mud system after use.
Under the terms of the permit, the program was to last for one year
with a possible extension of up to one additional year. At the end of
the first year, EPA concluded that the DPMP had essentially reached its
limit for gathering data necessary for evaluating that issue, but found
some merit in extending the program for an additional 3-month period,
ending September 30, 1987.
After the DPMP had expired, the existing general permit prohibited
the discharge of drilling fluids containing diesel oil unless: (1) The
diesel oil was added as a pill in an effort to free stuck pipe, (2) the
pill and 50-barrel buffers on either side of the pill were removed from
the drilling fluid system, (3) the remaining fluid to be discharged met
the 30,000 ppm LC50 toxicity limitation, and (4) the discharge of the
remaining fluid caused no visible sheen on the surface of the receiving
water. Data collected under the DPMP showed that diesel could not
effectively be removed from a drilling fluids system after use of a
pill. A substantial amount of diesel oil remains in the drilling fluids
system even after the pill and 100 barrels of drilling fluids system
are removed. Therefore, the proposed permit no longer allows the
discharge of drilling fluids to which a diesel pill has been added,
even when the pill and a 50-barrel buffer on either side are removed
from the system. Under the proposed reissuance, all references to the
DPMP are deleted from the permit and discharge of muds to which diesel
oil has been added is prohibited. However, both the proposed NPDES
existing source general permit and NSPS general permit would allow the
discharge of drilling fluids where non-diesel oils and mineral oils
have been introduced to the mud system while drilling, provided that
the mud system meets the toxicity and free oil limitations before
discharge.

H. Water Quality-Based Effluent Limitations and Conditions

The CWA states ``* * * it is the national policy that the discharge
of toxic pollutants in toxic amounts be prohibited. * * * '' To ensure
that the CWA's prohibitions on toxic discharges are met, EPA has issued
a ``Policy for the Development of Water Quality-Based Permit
Limitations for Toxic Pollutants'' (49 FR 9016; March 9, 1984). This
national policy states that an ``integrated strategy consisting of both
biological and chemical methods to address toxic and nonconventional
pollutants'' will be used to control pollutants beyond BAT. For NPDES
permits, these strategies include numerical limits for toxic pollutants
to assure compliance with state standards and use of biological
techniques and available data on chemical effects to assess toxicity
impacts and human health hazards based on the general standard of ``no
toxic materials in toxic amounts.''
Based on available data, EPA has determined that there are
pollutants present in produced water discharges that have the potential
to cause toxic conditions in the receiving water or sediment in
violation of Section

[[Page 855]]

101(a)(3) of the CWA. Whole effluent biomonitoring is the most direct
measure of potential toxic effects that incorporates the effects of
synergism of effluent components. It is the national policy of EPA to
use toxicity tests to evaluate the toxic effects of a discharge upon a
receiving water (49 FR 9016, March 9, 1984). This proposed permit
establishes effluent limitations on the whole effluent toxicity of
produced water. Both the daily average and the monthly minimum toxicity
(96-hour LC50) value shall not be less than the limiting permissible
concentration at the edge of the mixing zone as defined in the Ocean
Discharge Criteria (40 CFR 125). The Ocean Discharge Criteria
incorporates the limiting permissible concentration definition of the
Ocean Dumping Criteria, which is ``0.01 of a concentration shown to be
acutely toxic to appropriate sensitive marine organisms in a bioassay''
(40 CFR 227.27). The mixing zone is defined under the Ocean Discharge
Criteria (40 CFR 125.121(c)) as the zone extending from the sea's
surface to the seabed and extending 100 meters in all directions from
the discharge point. Therefore, the toxicity limitation of these
permits require that the discharged effluent meet a toxicity limitation
of an LC50 greater than the effluent concentration at the edge of the
mixing zone times 0.01. The method for determining this toxicity
limitation on a case-by-case basis is described below.

I. Aquatic Toxicity Limits and Testing Requirements for Produced Water

For produced water discharges, the Region is using a discharge
model to predict the effluent concentration that will occur at the edge
of a 100-meter mixing zone in order to calculate site-specific toxicity
limitations. The model will use parameters provided by the operator
(maximum discharge rate, water depth, discharge pipe diameter, and
discharge pipe orientation) as input. All other input parameters are
based on available data for the eastern Gulf of Mexico. Given these
parameters, the Region will calculate a toxicity limitation for each
facility before discharges may occur. The methodology for determining
the toxicity limitation for produced water, including derivation of the
input parameters, is detailed below.
Because all future site-specific limitations cannot be anticipated
and commented on at this time, the Region is proposing the method by
which the toxicity limitations will be calculated. As part of this
method, the Region is establishing certain parameters of the variables
in the derivation as constant. These variables, or model input
parameters are discussed below. The Region solicits comments at this
time on the methodology for determining the effluent limitation and on
the selected input parameters. The Region will not be publicly noticing
all future produced water toxicity limitation determinations for the
duration of this permit.
To establish a facility's produced water toxicity limit, an
operator must submit the information requested at Appendix A of the
permit. The necessary information for input in the CORMIX model
consists of: maximum discharge rate, minimum receiving water depth,
discharge pipe location (depth and orientation with respect to the
seafloor), and discharge pipe opening diameter. Parameters that are
proposed to remain constant for CORMIX input include effluent density,
ambient current speed, and the water column density profile. The
information will be used by the Region as input for the CORMIX expert
system (v. 1.4; Doneker and Jirka, 1990) to determine the projected
effluent concentration at the edge of the mixing zone in order to
calculate the toxicity limitation. Each month, the operator is required
to demonstrate compliance with this toxicity limitation by conducting
toxicity tests using Mysidopsis bahia and sheepshead minnows to
determine the 96-hour LC50s.
The derivation/selection of the proposed constant parameters is
discussed below. The effluent density was determined from temperature
and salinity data submitted to the Louisiana Department of
Environmental Quality (DEQ) for produced water discharges to state
waters (Avanti Corporation, 1992). A density of 1,070.2 kg/m\3\
represents a produced water with a salinity of 100 ppt (approximately
the lower 33rd percentile of all DEQ data) and a temperature of 105
deg.F (approximately the upper 90th percentile of the DEQ data).
The current speed of 4 cm/sec represents the median of data
collected offshore Alabama using a current meter placed at a 10 meter
water depth in 30 meters of water (Texas A&M, 1991).
The water column density profile is based on data reported for
offshore Alabama in Temple et al. (1977). Temperature and salinity data
for the 7-and 14-meter contours were used to determine the average
surface density and the average density gradient. The average surface
density reported for the monitoring year was 1,023 kg/m\3\ and the
average density gradient was 0.163 kg/m\3\/m. For each discharge
modeled, the average surface density is used with a bottom density
calculated as: [1,023 + (water depth x 0.163)].
Due to limitations of the model with respect to allowable discharge
pipe orientation, CORMIX is used with an inverted density profile and
run as a mirror image of actual discharge scenarios. This inversion
method, described in the Ocean Discharge Criteria Evaluation (Avanti
Corp., 1993a), reverses the actual scenario of a dense discharge from
the surface to a scenario of a buoyant discharge from the bottom. All
density differentials are held constant.
Also, although CORMIX was determined to be the best model available
to predict discharges for OCS waters (LimnoTech and Wright, 1993), it
does underestimate far-field dilutions (Wright, 1993). In applying the
model to this permit, the Region is using an alternate method to
calculate the far-field dilution (the dilution that occurs after
initial mixing). For discharges that do not impact the bottom, Brook's
4/3 power law is used to determine the effluent dilution at the edge of
the mixing zone using input from CORMIX initial mixing projections.
The resulting projected effluent concentration at 100 meters is
used by EPA to calculate the toxicity limitation (0.01 x effluent
concentration = minimum LC50 limitation) for the outfall modeled. This
ensures that the discharge will not be acutely toxic beyond the
prescribed mixing zone. For example, using this methodology, for the
three outfalls currently discharging in the Mobile area, CORMIX (using
the 4/3 power law) projects dilutions of 83,721 for Block 908, 4,943
for Block 990, and 3,631 for Block 821. These dilutions result in
respective toxicity limitations of 1,200 ppm effluent; 20,000 ppm
effluent; and 27,500 ppm effluent. These limitations are minimum LC50
values for 96-hour tests. Other potential produced water discharges
occurring in the Gulf of Mexico would be subject to this produced water
toxicity limitation and will be determined upon initiation of a
produced water discharge and receipt of data requested by EPA in
Appendix A of the permit.
The testing protocols for determining the 96-hour LC50s are
provided in ``Methods for Measuring the Acute Toxicity of Effluents to
Freshwater and Marine Organisms'' (EPA/600/4-85/013 or the most recent
update). The test must be conducted using Mysidopsis bahia and
sheepshead minnows (Cyprinodon variegatus). The permittee (or contract
laboratory) shall prepare and submit a full report of the results
according to the Report Preparation

[[Page 856]]

Section of the EPA methods manual. The original reports shall be
retained for three (3) years pursuant to the provisions of part II.C.5
of the permit. The LC50s must be reported monthly, accompanied by a
copy of the full laboratory report.
Although the produced water itself may not greatly vary in quality
on the short term, many toxic chemicals such as biocides, corrosion
inhibitors, pipe descalers, and paraffin inhibitors are discharged in
produced waters and may affect the toxicity. The proposed permits
require operators to collect samples that are representative of the
discharge when these chemicals are being used. Logistically it may be
difficult for operators covered under these permits to collect and ship
additional effluent samples to be used for replacement water during the
biomonitoring test, so the proposed permits allow the permittees to
collect only one effluent sample to be used for all replicates in the
biomonitoring test. The proposed permits also allow operators to use
synthetic dilution water to minimize logistical and transportation
problems associated with sample collection.

J. Discharge Prohibition in Vicinity of Areas of Biological Concern

The NPDES General permit prohibits the discharges of drilling
fluids, drill cuttings and produced waters within 1000 meters from the
edge of an area of biological concern. The 1000 meter minimum distance
for discharge near areas of biological concern and no activity areas is
based on environmental study data that demonstrate the potential for
acute and chronic biological and ecological impacts due to exposure to
drilling fluids and produced water discharges at distances in the 1000-
2000 meter range. Environmental studies consistently and conclusively
demonstrate significant chemical and biological changes from drilling
fluids and cuttings discharges at distances within 500 meters and 2000-
3000 meters for frequent chemical occasional biological changes.
Chemical and biological impacts as a result of produced water
discharges are greatest in the 100-300 meter range and elevations of
chemical contaminants have been detected in the 1000-2000 meter range.

K. Rubbish, Trash, and Other Refuse (MARPOL)

Under Annex V to the International Convention for the Prevention of
Pollution from Ships, 1973 (MARPOL 73/78), the U.S. Coast Guard (USCG)
issued regulations on the disposal of domestic waste from all fixed or
floating offshore platforms and vessels engaged in exploration or
exploitation of seabed mineral resources (33 CFR 151). As specified by
33 U.S.C. 1901, those regulations apply to all navigable waters of the
U.S. (including the entire Gulf of Mexico), and are included in both
the existing source general permit and the new source general permit.
As proposed, these permits prohibit the discharge of ``garbage,''
including food wastes, from facilities located within 12 nautical miles
from nearest land. Comminuted food waste that is able to pass through a
screen with a mesh size no larger than 25 mm (approximately 1 inch) may
be discharged 12 or more nautical miles from the nearest land.
Incineration ash and non-plastic clinkers that can pass through a 25 mm
mesh screen may be discharged beyond 3 nautical miles from nearest
land. Otherwise ash and non-plastic clinkers may be discharged only
beyond 12 nautical miles from nearest land.
Under these general permits, these limitations, which are already
effective under the USCG regulations, will be incorporated for
consistency purposes. Because graywater discharges from dishwater,
showers, baths, laundries, and washbasins are not subject to these USCG
regulations, they will remain subject to the same requirements for
domestic waste as under the expired OCS general permit.

L. 24-Hour Reporting Requirement

The Region is proposing to clarify several specific situations
where discharges occur that require oral reporting under the 24-hour
reporting requirement. They include: the discharge of 1 barrel or more
of oil from any permitted waste stream (this does not include spills
reported to the National Response Center as regulated under Section 311
of the Clean Water Act), the discharge of muds or cuttings which do not
meet the 30,000 ppm toxicity limitation, and any discharge of oil-based
muds or cuttings. Under the proposed permits, a permittee must verbally
notify the Regional office within 24 hours of the time at which the
permittee becomes aware of the discharge. A written submission must
also be provided within 5 days of the time the permittee becomes aware
of the circumstances. The written submission must contain a description
of the noncompliance and its cause; the period of noncompliance,
including exact dates and times; and if the noncompliance has not been
corrected, the anticipated time it is expected to continue; and steps
taken or planned to reduce, eliminate, and prevent reoccurrence of the
noncompliance. The Regional Administrator may waive the written report
on a case-by-case basis if the oral report has been received within 24
hours. The 24-hour reporting number for Region 4 is located in Part
II.D.7 of the permit.

M. Reopener Clause

These permits shall be modified, or alternately, revoked and
reissued to comply with any effluent standard or limitation, or sludge
disposal requirement issued or approved under Sections 301(b)(2)(C) and
(D), 307(a)(2), and 405(d)(2)(D) of the Clean Water Act, as amended, if
the effluent standard or limitation, or sludge disposal 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 permits as modified or reissued under this paragraph shall also
contain any other requirements of the Act then applicable.
Further, the RA may at anytime require a general permit holder to
apply for an individual permit, as set forth in 40 CFR Section
122.28(b)(3).

N. Clarifications

The Region is taking this opportunity to clarify definitions, end
of well sampling requirements, and the visual and static sheen tests.
These clarifications are not new definitions; they are further
clarifications of the Agency's original intent of their application.
Boiler Blowdown
Existing: Discharges from boilers necessary to minimize solids
build-up in the boilers.
Clarification: Discharges from boilers necessary to minimize solids
build-up in the boilers, including vents from boilers and other heating
systems.
Completion Fluids
Existing: Any fluids used in a newly drilled well to allow safe
preparation of the well for production.
Clarification: Salt solutions, weighted brines, polymers and
various additives used to prevent damage to the wellbore during
operations which prepare the drilled well for hydrocarbon production.
These fluids prevent solid loss, prepare a well for production, provide
hydrostatic control and prevent formation damage.
Deck Drainage
Existing: All waste resulting from platform washings, deck
washings, and

[[Page 857]]

runoff from curbs, gutters, and drains, including drip pans and wash
areas.
Clarification: All waste resulting from platform washings, deck
washings, work area spills, rainwater, and runoff from curbs, gutters,
and drains, including drip pans and work areas.
Domestic Waste
Existing: Discharges from galleys, sinks, showers, and laundries
only.
Clarification: Discharges from galleys, sinks, showers, safety
showers, eye wash stations, and laundries.
Muds, Cuttings, and Cement at the Seafloor
Existing: Discharges that occur at the seafloor prior to
installation of the marine riser.
Clarification: Discharges that occur at the seafloor prior to
installation of the marine riser and during marine riser disconnect,
well abandonment and plugging operations.
Produced Sand
Existing: Sand and other solids removed from the produced waters.
Clarification: Slurried particles used in hydraulic fracturing, the
accumulated formation sands and scales particles generated during
production. Produced sand also includes desander discharge from the
produced water waste stream and blowdown of the water phase from
produced water treating systems.
Produced Water
Existing: Water and particulate matter associated with oil and gas
producing formations.
Clarification: Water (brine) brought up from the hydrocarbon-
bearing strata during the extraction of oil and gas, and can include
formation water, injection water, and any chemicals added downhole or
during the oil/water separation process.
Well Treatment Fluids
Existing: Any fluid used to enhance production by physically
altering oil-bearing strata after a well has been drilled.
Clarification: Any fluid used to restore or improve productivity by
chemically or physically altering hydrocarbon-bearing strata after a
well has been drilled. These fluids move into the formation and return
to the surface as a slug with the produced water. Stimulation fluids
include substances such as acids, solvents, and propping agents.
Workover Fluids
Existing: Any fluid used in a producing well to allow safe repair
and maintenance or abandonment procedures.
Clarification: Salt solutions, weighted brines, polymers and other
specialty additives used in a producing well to allow safe repair and
maintenance or abandonment procedures. These fluids prevent solid loss,
prepare a well for production, provide hydrostatic control and prevent
formation damage. Packer fluids, low solids fluids between the packer,
production string and well casing, are considered to be workover fluids
and must meet only the effluent requirements imposed on workover
fluids. High-solids drilling fluids used during workover operations are
not considered workover fluids by definition, and therefore must meet
drilling fluid effluent limitations before discharge may occur.
End of Well Sample
Existing: The end of well definition in the existing Gulf of Mexico
OCS general permit requires that a sample be taken at the point when
total well depth is reached. The original intent of the end of well
sample was to characterize the mud system just prior to being
discharged. It is now known that several weeks may pass after the well
has reached maximum drilled depth before the actual discharge of the
mud system. Formation evaluation (running logs, drill stem tests, etc.)
and completion operations such as setting pipe may all occur after
reaching total drilled depth while still using the same drilling fluid
used to drill the well. For this reason, the end of well sample
definition is being changed to read as below:
Changed: The sample taken no more than 48 hours prior to bulk
discharge and after any additives are introduced in order to best
characterize the mud systems being discharged.
The type of sample required is a grab sample, taken from beneath
the shale shaker, or if there are no returns across the shaker, then
the sample must be from a location that is characteristic of the
overall mud system to be discharged. An end of well sample, as a daily
minimum, must be taken no more than 48 hours prior to bulk discharge.
If any additional additives are introduced to the mud system during
this 48-hour period, then a new sample must be collected, analyzed, and
will be recorded as the end of well sample. The purpose of this sample
is to accurately characterize the mud system that is being discharged.
Static Sheen Test
The static sheen test may be used as an alternative method to
detect free oil in place of the visual sheen test at night or when
atmospheric or surface conditions prohibit the observer from detecting
a sheen (e.g., rough seas, rainy weather, etc.). The test shall be
conducted in accordance with the methodology presented in the permit at
Part IV.A.3.
Visual Sheen Test
The visual sheen test procedure is being added to the text in order
to clarify the test methodology: The visual sheen test is used to
detect free oil by observing the surface of the receiving water for the
presence of a sheen while discharging. A sheen is defined as a
``silvery'' or ``metallic'' sheen, gloss, or increased reflectivity;
visual color; iridescence; or oil slick on the surface. The operator
must conduct a visual sheen test only at times when a sheen could be
observed. This restriction eliminates observations at night or when
atmospheric or surface conditions prohibit the observer from detecting
a sheen (e.g., during rain or rough seas, etc.). Certain discharges can
only occur if a visual sheen test can be conducted.
The observer must be positioned on the rig or platform, relative to
both the discharge point and current flow at the time of discharge,
such that the observer can detect a sheen should it surface down
current from the discharge. For discharges that have been occurring for
at least 15 minutes previously, observations may be made any time
thereafter. For discharges of less than 15 minutes duration,
observations must be made both during discharge and 5 minutes after
discharge has ceased.

VI. Permit Conditions

A. Determination of Discharge Conditions

The determination of appropriate conditions for each discharge was
accomplished through:
(1) Consideration of technology-based effluent limitations to
control conventional pollutants under BCT,
(2) Consideration of technology-based effluent limitations to
control toxic and nonconventional pollutants under BAT,
(3) Consideration of technology-based effluent limitations to
control toxic and nonconventional pollutants under NSPS,
(4) Consideration of more stringent permit conditions of existing
general permit in accordance with Section 402(o)(1) of the Clean Water
Act.
(5) Evaluation of the Ocean Discharge Criteria for discharges in
the Offshore Subcategory (given conditions 1 thru 4 are in place).
EPA first determines which technology-based limits are required

[[Page 858]]

and then evaluates the effluent quality expected to result from these
controls. If water quality violations could occur as a result of
discharge, EPA must include water quality-based limits in the permit.
The permit limits will thus reflect whichever limits (technology-based
or water quality-based) are most stringent. Finally, an Ocean Discharge
Criteria Evaluation (ODCE) has been prepared to identify any additional
impacts created by these proposed discharges.
General area and depth related requirements and 403(c) flow rate
requirements are discussed in section VI.B. and VI.C of this fact
sheet. For convenience, these conditions and the regulatory basis for
each are cross-referenced by discharge in Table 2 below:

----------------------------------------------------------------------------------------------------------------
Statutory basis/
Discharge and permit conditions existing sources Statutory basis/new sources
----------------------------------------------------------------------------------------------------------------
Produced Water:
Monitor Flow (MGD)............... Sec. 308.............. Sec. 308.
Oil & Grease..................... BCT, BAT............... NSPS.
Whole Effluent Toxicity (WET).... Water Quality Standards Water Quality Standards.
>200 meters EPA--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
>1000 meters from Area of Sec. 403.............. Sec. 403.
Biological Concern--No
Unreasonable Degradation.
Well Treatment, Completion, &
Workover Fluids:
Monitor Frequency/Flow Rate...... Sec. 308.............. Sec. 308.
No Free Oil...................... BPT, BCT............... NSPS.
Oil & Grease..................... BAT.................... NSPS.
>200 meters EPA--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
Deck Drainage:
Monitor Frequency/Flow Rate...... Sec. 308.............. Sec. 308.
No Free Oil...................... BPT, BCT, BAT.......... NSPS.
>200 meters--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
Produced Sand:
No Discharge Allowed............. BCT, BAT............... NSPS.
Sanitary Waste (manned by 10 or
more):
Residual Chlorine................ BPT, BAT............... NSPS.
>200 meters EPA--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
Sanitary Waste (manned by 9 or less):
No Floating Solids............... BPT, BCT............... NSPS.
>200 meters EPA--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
Domestic Waste:
No Foam.......................... BAT.................... NSPS.
No Floating Solids............... BCT/BAT................ NSPS.
>200 meters EPA--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
Well Test Fluids:
Monitor Frequency/Flow Rate...... Sec. 308.............. Sec. 308.
No Free Oil...................... BCT, BAT............... BCT, BAT.
>200 meters EPA--No Unreasonable Sec. 403.............. Sec. 403, EIS.
Degradation.
Minor Wastes:
Desalination Unit Discharge, Blow
Out Preventer Fluids,
Uncontaminated Ballast Water,
Muds Cuttings & Cement at
Seafloor, Uncontaminated Sea
Water, Fire Test Water, Boiler
Blowdown, Excess Cement Slurry,
Diatomaceous Earth Filter Media,
Uncontaminated Fresh Water,
Noncontaminated Fresh Water
No Free Oil.................. BCT, BAT............... BCT, BAT.
>200 meters EPA--No Sec. 403.............. Sec. 403.
Unreasonable Degradation.
----------------------------------------------------------------------------------------------------------------

B. Area and Depth-Related Requirements

The discharge restrictions and requirements listed below are
necessary to ensure that unreasonable degradation of these areas will
not occur as discussed above in part III.B. of this fact sheet (Ocean
Discharge Criteria) and are largely unchanged from the 1986 permit to
the proposed permit. Discharge within the area described below the
26 deg. parallel is prohibited due to a order which establishes a
moratorium on drilling activity on leases in that area.
Pertaining to all discharges, these NPDES general permits only
provide coverage for discharges occurring:

--In water depths greater than 200 meters in the Eastern Planning
Area (as measured from mean low water).
--In waters seaward of the outer boundary of the territorial seas
in the Central Planning Area, except designated areas of biological
concern.
--For leases not under moratorium; which is currently areas above
the 26 deg. parallel.

C. Section 403(c) Requirements for Muds and Cuttings

Flow rates: In addition to restrictions on all discharges imposed
under section 403(c) of the Act and discussed in section III.B. of this
fact sheet, muds and cuttings discharges are limited to the following
maximum rates. These limitations are identical to those contained in
the 1986 general permit.
1,000 bbl/hr on total muds and cuttings. This limit was established
in the previous 1986 permit because reliable dispersion data are
available only up to this discharge rate and because this rate did not
represent any serious operational problem based on comments received
from the industry and discharge monitoring reports.

VII. Other Legal Requirements

National Environmental Policy Act

Under the direction of the National Environmental Policy Act
(NEPA), EPA and MMS entered into a Memorandum of Understanding to
coordinate efforts on environmental impact statements

[[Page 859]]

(EIS) for areas covered by new source performance standards before EPA
issues final permits covering discharges. EPA has completed a draft EIS
for this general permit and is accepting public comment on that
document. A final EIS will be prepared before issuance of the final
permit. EPA also will coordinate with MMS for complying with NEPA for
specific new source (production) projects.

Oil Spill Requirements

Section 311 of the Clean Water Act prohibits the discharge of oil
and hazardous materials in harmful quantities. Routine discharges that
are in compliance with NPDES permits are excluded from the provisions
of section 311. However, the permits do 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 that are covered by section 311 of the Act.

Endangered Species Act

The Endangered Species Act (ESA) allocates authority to, and
administers requirements upon, federal agencies regarding endangered
species of fish, wildlife, or plants that have been designated as
critical. Its implementing regulations (50 CFR Part 402) require the RA
to ensure, in consultation with the Secretaries of Interior and
Commerce, that any action authorized, funded or carried out by EPA is
not likely to jeopardize the continued existence of any endangered or
threatened species or adversely affect its critical habitat (40 CFR
122.49(c)). Implementing regulations for the ESA establish a process by
which agencies consult with one another to ensure that issues and
concerns of both the National Marine Fisheries Service (NMFS) and the
U.S. Fish and Wildlife Service (USFWS) collectively are addressed. The
NMFS and USFWS have responded to EPA's initiation of the coordination
process under the regulations set forth by section 7 of the Endangered
Species Act. The 36 species identified by NMFS and USFWS as threatened
or endangered species within the permit coverage area have been
assessed for potential effects from the activities covered by the
proposed permit in a biological assessment incorporated in the Draft
EIS. This biological assessment has been submitted to the NMFS and
USFWS along with the proposed permit for consistency review and
concurrence on the Region's finding of no adverse effect. The Region's
finding is appended to the EIS.

Ocean Discharge Criteria Evaluation

For discharges into waters located seaward of the inner boundary of
the territorial seas, the Clean Water Act at section 403, requires that
NPDES permits consider guidelines for determining the potential
degradation of the marine environment. The guidelines, or Ocean
Discharge Criteria (40 CFR part 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). After all available comments and information are reviewed,
the final 403 determination will be made.
A revised preliminary Ocean Discharge Criteria Evaluation (ODCE)
determination of no unreasonable degradation has been made by Region 4
based on an analysis by Avanti Corporation (1993a). The potential
effects of discharges under the proposed permit limitations and
conditions are assessed in this draft document available from Region 4.
The ODCE states that, based on the available information, the permit
limitations are sufficient to determine that no unreasonable
degradation should result from the permitted discharges.

Coastal Zone Management Act

The coverage area of the proposed general permit includes only
Federal waters of the eastern Gulf of Mexico. However, the State waters
of Florida, Alabama, and Mississippi are potentially affected by
activities covered under the permit. Therefore, the coastal zone
management plans of Florida, Alabama, and Mississippi have been
reviewed for consistency and consultation with the states for
consistency concurrence has been initiated. A consistency determination
for each state and the proposed permit have been submitted for state
review. The consistency determinations are appended to the EIS.

Marine Protection, Research, and Sanctuaries Act

No marine sanctuaries as designated by the Marine Protection,
Research, and Sanctuaries Act exist in the area to which the OCS permit
applies.

Executive Order 12291

The Office of Management and Budget has exempted this action from
the review requirements of Executive Order 12291 pursuant to section
8(b) of that order.

Paperwork Reduction Act

The information collection required by these permits 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).
All facilities affected by these permits must submit a notice of
intent to be covered under the eastern Gulf of Mexico OCS general
permit GMG280000. EPA estimates that it will take an affected facility
three hours to prepare the request for coverage.
All affected facilities will be required to submit discharge
monitoring reports (DMRs). EPA estimated DMR burden for the existing
permit to be 36 hours per facility per year. The DMR burden for these
proposed permits is expected to increase slightly due to the additional
reporting required for calculating the critical dilution for produced
water discharges. While this permit requires some increased monitoring
and reporting of that data, the DMR burden for the proposed permits is
estimated to increase slightly and facilities affected by this permit
reissuance were subject to similar information collection burdens under
the existing Gulf of Mexico OCS general permit that this proposed
reissuance will replace.

Regulatory Flexibility Act

After review of the facts presented above, I hereby certify,
pursuant to the provisions of 5 U.S.C. 605(b), that these proposed
general permits will not have a significant impact on a substantial
number of small entities. This certification is based on the fact that
the vast majority of the parties regulated by this permit 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). For those operators having fewer than 500
employees, this permit issuance will not have significant economic
impact. These facilities are classified as Major Group 13--Oil and Gas
Extraction SIC Crude Petroleum and Natural Gas.

Proposed Schedule for Permit Issuance

Draft Permit to Federal Register for Public Notice--January 2,
1998.
Close Comment Period--February 16, 1998.

[[Page 860]]

Dated: [Signature date]
Regional Administrator,
Regional Administrator, Region 4.

References

ASTM. 1990. Standard Guide for Collection, Storage,
Characterization, and Manipulation of Sediments for Toxicological
Testing. Under jurisdiction of ASTM Committee E-47 on Biological
Effects and Environmental Fate. ASTM Designation E 1391-90.
ASTM. 1992. Standard Guide for Conducting 10-day Static Sediment
Toxicity Tests with Marine and Estuarine Amphipods. Under
jurisdiction of ASTM Committee E-47 on Biological Effects and
Environmental Fate. ASTM Designation E 1367-92.
Avanti Corporation. 1992. Characterization of Data Collected from
the Louisiana Department of Environmental Quality Permit Files for
Development of Texas and Louisiana Coastal Subcategory NPDES General
Permits. Submitted to EPA Region 6, Water Management Division.
Avanti Corporation. 1993a. Ocean Discharge Criteria Evaluation for
the NPDES General Permit for the Eastern Gulf of Mexico--Draft.
Submitted to U.S. EPA Region 4, Water Management Division.
Avanti Corporation. 1993b. Biological Assessment for the NPDES
General Permit for Oil and Gas Exploration, Development, and
Production Activities on the Eastern Gulf of Mexico OCS. Submitted
to U.S. EPA Region 4, Water Management Division.
Doneker, R.L. and G.H. Jirka. 1990. Expert System for Hydrodynamic
Mixing Zone Analysis of Conventional and Toxic Submerged Single Port
Discharges (CORMIX1). Prepared by Cornell University for U.S. EPA,
Environmental Research Laboratory, Athens, GA. EPA/600/3-90/012.
Gannett Fleming, Inc. 1995. Draft Supplemental Environmental Impact
Statement For National Pollutant Discharge Elimination System
Permitting For Gulf of Mexico Offshore Oil and Gas Extraction. EPA
904/9-95-001A.
LimnoTech, Inc. and S. Wright. 1993. Recommendation of Specific
Models to Evaluate Mixing Zone Impacts of Produced Water Discharges
to the Western Gulf of Mexico Outer Continental Shelf. Prepared for
U.S. EPA, Region 6.
MMS. 1992. Outer Continental Shelf Natural Gas and Oil Resource
Management, Comprehensive Program 1992-1997, Proposed Final Summary
and Decision. U.S. Department of the Interior, MMS, Washington, DC.
Minerals Management Service. 1997. Gulf of Mexico Sales 169, 172,
175, 178, and 182: Central Planning Area Draft EIS. US Department of
the Interior, MMS, Gulf of Mexico OCS Region, New Orleans, LA
Schroeder, W.W., A.W. Shultz and J.J. Dindo. 1988. Inner-Shelf
Hardbottom Areas, Northeastern Gulf of Mexico. Trans. Gulf Coast
Assoc. of Geological Soc., 38:535-541.
Temple, R.F., D.L. Harrington, and J.A. Martin. 1977. Monthly
Temperature and Salinity Measurements of Continental Shelf Waters of
the Northwestern Gulf of Mexico, 1963-1965. NOAA Tech. Rep. SSRF-
707. 29 pp.
Texas A&M University. 1991. Mississippi-Alabama Continental Shelf
Ecosystem Study, Data Summary and Synthesis. Prepared for MMS Gulf
of Mexico OCS Region. MMS 91-0064.
Wright, S.J. 1993. Analysis of CORMIX1 and UM/PLUMES Predictive
Ability for Buoyant Jets in a Density-Stratified Flow. Prepared for
U.S. EPA Office of Wastewater Enforcement and Compliance.

GENERAL PERMIT TABLE OF CONTENTS

Part I. Requirements for NPDES Permits
Section A. Permit Applicability and Coverage Conditions
1. Operations Covered
2. Operations Excluded
3. General Permit Applicability
4. Notification Requirements
5. Termination of Operations
6. Intent to be Covered by a Subsequent Permit
Section B. Effluent Limitations and Monitoring Requirements
1. Drilling Fluids
2. Drill Cuttings
3. Produced Water
4. Deck Drainage
5. Produced Sand
6. Well Treatment Fluids, Completion Fluids, and Workover Fluids
7. Sanitary Waste (Facilities Continuously Manned by 10 or More
Persons)
8. Sanitary Waste (Facilities Continuously Manned by 9 or Fewer
Persons or Intermittently by Any Number)
9. Domestic Waste
10. Miscellaneous Discharges (Desalination Unit Discharge,
Blowout Preventer Fluid, Uncontaminated Ballast Water,
Uncontaminated Bilge Water, Mud, Cuttings, and Cement at the
Seafloor, Uncontaminated Seawater, Boiler Blowdown, Source Water and
Sand, and Diatomaceous Earth Filter Media)
Section C. Other Discharge Limitations
1. Floating Solids or Visible Foam
2. Halogenated Phenol Compounds
3. Dispersants, Surfactants, and Detergents
4. Rubbish, Trash, and Other Refuse
5. Areas of Biological Concern
Part II. Standard Conditions for NPDES Permits
Section A. Introduction and General Conditions
1. Duty to Comply
2. Penalties for Violations of Permit Conditions
3. Duty to Mitigate
4. Permit Flexibility
5. Toxic Pollutants
6. Civil and Criminal Liabilities
7. Oil and Hazardous Substance Liability
8. State Laws
9. Property Rights
10. Onshore or Offshore Construction
11. Severability
12. Duty to Provide Information
Section B. Proper Operation and Maintenance of Pollution Controls
1. Proper Operation and Maintenance
2. Need to Halt or Reduce not a Defense
3. Bypass of Treatment Facilities
4. Upset Conditions
5. Removed Substances
Section C. Monitoring and Records
1. Representative Sampling
2. Discharge Rate/Flow Measurements
3. Monitoring Procedures
4. Penalties for Tampering
5. Retention of Records
6. Record Contents
7. Inspection and Entry
Section D. Reporting Requirements
1. Planned Changes
2. Anticipated Noncompliance
3. Transfers
4. Monitoring Reports
5. Additional Monitoring by the Permittee
6. Averaging of Measurements
7. Twenty-four Hour Reporting
8. Other Noncompliance
9. Other Information
10. Changes in Discharges of Toxic Substances
11. Duty to Reapply
12. Signatory Requirements
13. Availability of Reports
Part III. Monitoring Reports and Permit Modification
Section A. Monitoring Reports
Section B. Permit Modification
Part IV. Test Procedures and Definitions
Section A. Test Procedures
1. Samples of Wastes
2. Drilling Fluids Toxicity Test
3. Static (Laboratory) Sheen Test
4. Visual Sheen Test
5. Produced Water Acute Toxicity Test
6. Retort Test
Section B. Definitions
Table 2. Effluent Limitations, Prohibitions, and Monitoring
Requirements for the Eastern Gulf of Mexico NPDES General Permit
(Existing Sources)
Table 3. Effluent Limitations, Prohibitions, and Monitoring
Requirements for the Eastern Gulf of Mexico NPDES General Permit
(New Sources)
Appendix A
Table A-1. CORMIX1 Input Parameters for Toxicity Limitation
Calculation
Appendix B. Map Identifying Areas of Biological Concern in the
Central Planning Area.

Authorization To Discharge Under the National Pollutant Discharge
Elimination System

In compliance with the Federal Water Pollution Control Act, as
amended (33 U.S.C. 1251 et seq.), operators of lease blocks located in
OCS Federal waters seaward of 200 meters in the Eastern Planning Area
and seaward of the outer boundary of the territorial seas in the
Central Planning Area with existing source or new source discharges
originating from exploration or development and production operations
are authorized to discharge to receiving waters in accordance with
effluent limitations, monitoring requirements, and other conditions set
forth in parts I, II, III, and IV hereof.
Operators of operating facilities within the proposed NPDES general

[[Page 861]]

permit area must submit written notification to the Regional
Administrator, prior to discharge, that they intend to be covered by
either the existing source general permit or the new source general
permit (See part I.A.3). Upon receipt of notification of inclusion by
the Regional Administrator, owners or operators requesting coverage are
authorized to discharge under either the existing source or new source
general permit. Operators of lease blocks within the general permit
area who fail to notify the Regional Administrator of intent to be
covered by this general permit are not authorized under the general
permit to discharge pollutants from their potential new or existing
source facilities. This permit does not apply to non-operational
leases, i.e., those on which no discharge has taken place in 2 years
prior to the effective date of the new general permits. EPA will not
accept Notice of Intents (NOI's) from such leases, and these general
permits will not cover such leases. Non-operational leases will lose
general permit coverage on the effective date of these new general
permits.
This permit shall become effective at [time], Eastern Standard
Time, on [Month, Day, 19 ]. Coverage under the old general permit
shall terminate on the effective date of this permit, unless the owner/
operator submits a notice of intent (NOI) to be covered within 60 days
thereafter, or an application for an individual permit within 120 days
thereafter. If an NOI is filed, coverage under the old general permit
terminates upon receipt of notification of inclusion by letter from the
Director of the Water Management Division, Region 4. If a permit
application is filed, the old general permit terminates when a final
action is taken on the application for an individual permit. This
permit and the authorization to discharge shall expire [time], Eastern
Standard Time, on 5 years from date of issuance.

Signed this [day] day of [month], Year.
Director, Water Management Division, EPA, Region 4.

Part I. Requirements for NPDES Permits

Section A. Permit Applicability and Coverage Conditions

1. Operations Covered
These permits establish effluent limitations, prohibitions,
reporting requirements, and other conditions for discharges from oil
and gas facilities engaged in production, field exploration, drilling,
well completion, and well treatment operations from potential new
sources and existing sources.
The permit coverage area includes Federal waters in the Gulf of
Mexico seaward of the 200 meter water depth for offshore Alabama and
Florida in the Eastern Planning Area, and seaward of the outer boundary
of the territorial seas for offshore Mississippi and Alabama in the
Central Planning Area. This permit only covers facilities located in
and discharging to the Federal waters listed above and does not
authorize discharges from facilities in or discharging to the
territorial sea (within 3 miles of shore) of the Gulf coastal states or
from facilities defined as ``coastal'' or ``onshore'' (see 40 CFR, part
435, subparts C and D).
2. Operations Excluded
Any operator who seeks to discharge drill fluids, drill cuttings or
produced water within 1000 meters of an area of biological concern is
ineligible for coverage under these general permits and must apply for
an individual permit.
Any operator with leases occurring below the 26 deg. parallel which
are currently under moratorium are excluded from inclusion under these
general permits.
No coverage will be extended under either of the new general
permits to non-operational leases.
3. General Permit Applicability
In accordance with 40 CFR 122.28(b)(3) and 122.28(c), the Regional
Administrator may require any person authorized by this permit to apply
for and obtain an individual NPDES permit when:
(a) The discharge(s) is a significant contributor of pollution;
(b) The discharger is not in compliance with the conditions of this
permit;
(c) A change has occurred in the availability of the demonstrated
technology or practices for the control or abatement of pollutants
applicable to the point sources;
(d) Effluent limitation guidelines are promulgated for point
sources covered by this permit;
(e) A Water Quality Management Plan containing requirements
applicable to such point source is approved;
(f) It is determined that the facility is located in an area of
biological concern.
(g) Circumstances have changed since the time of the request to be
covered so that the discharger is no longer appropriately controlled
under the general permit, or either a temporary or permanent reduction
or elimination of the authorized discharge is necessary.
The Regional Administrator may require any operator authorized by
this permit to apply for an individual NPDES permit only if the
operator has been notified in writing that a permit application is
required.
Any operator authorized by this permit may request to be excluded
from the coverage of this general permit by applying for an individual
permit. The operator shall submit an application together with the
reasons supporting the request to the Regional Administrator no later
than 180 days before an activity is scheduled to commence on the lease
block. When an individual NPDES permit is issued to an operator
otherwise subject to this permit, the applicability of this permit to
the owner or operator is automatically terminated on the effective date
of the individual permit.
A source excluded from coverage under this general permit solely
because it already has an individual permit may request that its
individual permit be revoked, and that it be covered by this general
permit. Upon revocation of the individual permit, this general permit
shall apply to the source after the notification of intent to be
covered is filed (see I.A.4, below).
4. Notification Requirements (Existing Sources and New Sources)
Written notification of intent (NOI) to be covered in accordance
with the general permit requirements shall state whether the permittee
is requesting coverage under the existing source general permit or new
source general permit, and shall contain the following information:
(1) The legal name and address of the owner or operator;
(2) The facility name and location, including the lease block
assigned by the Department of Interior, or if none, the name commonly
assigned to the lease area;
(3) The number and type of facilities and activity proposed within
the lease block;
(4) The waters into which the facility will be discharging;
(5) The date on which the owner/operator commenced on-site
construction, including:
(a) Any placement assembly or installation of facilities or
equipment; or
(b) The clearing, excavation or removal of existing structures or
facilities;
(6) The date on which the facility commenced exploration activities
at the site;
(7) The date on which the owner/operator entered into a binding
contract for the purchase of facilities or

[[Page 862]]

equipment intended to be used in its operation within a reasonable time
(if applicable);
(8) The date on which the owner/operator commenced development; and
(9) The date on which the owner/operator commenced production.
(10) Technical information on the characteristics of the sea bottom
within 1000 meters of the discharge point, including but not limited to
information regarding geohazards, topographical formations, live
bottom, and chemosynthetic communities.
(11) MMS photo documentation survey according to most current MMS
guidelines (NTL 88-3 or most current revision of Photodocumentation
Surveys), for facilities in less than 100 meters water depth in the
Central Planning Area.
All notices of intent shall be signed in accordance with 40 CFR
Sec. 122.22.
EPA will act on the NOI in a reasonable period of time.
For operating leases, the NOI shall be submitted within sixty (60)
days after publication of the final determination on this action. Non-
operational facilities are not eligible for coverage under these new
general permits. No NOI will be accepted from either a non-operational
or newly acquired lease until such time as an exploration plan or
development production plan has been prepared for submission to EPA.
Operators obtaining coverage under the existing source general permit
for exploration activities must send a new NOI for coverage of
development and production activities under the new source general
permit sixty (60) days prior to commencing such operations. All NOI's
requesting coverage should be sent by certified mail to: Director,
Water Management Division, U.S. EPA, Region 4, Atlanta Federal Center,
61 Forsyth Street, S.W., Atlanta, GA 30303-3104.
For drilling activity, the operator shall submit a Notice to Drill
(NTD) sixty (60) days prior to the actual move-on date. This NTD shall
contain: (1) the assigned NPDES general permit number assigned to the
lease block, (2) the latitude and longitude of the proposed discharge
point, (3) the water depth, and (4) the estimated length of time the
drilling operation will last. This NTD shall be submitted to Region 4
at the address above, by certified mail to: Director, Water Management
Division, U.S. EPA, Region 4, Atlanta Federal Center, 61 Forsyth
Street, S.W., Atlanta, GA 30303-3104.
In addition, a notice of commencement of operations (NCO) is
required to be submitted for each of the following activities: placing
a production platform in the general permit coverage area (within 30
days prior to placement); and discharging waste water within the
coverage area (within 30 days prior to initiation of produced water
discharges). The NCO required for discharging waste water shall be
accompanied by the information requested in Appendix A for calculation
of the toxicity limitation for produced water discharges. Within sixty
(60) days after produced water discharge begins, the permittee shall
perform adequate tests to establish a bbl/day estimate to be used in
the Cormix model. This information must then be provided to EPA.
All NOIs, NTDs, NCOs, and any subsequent reports required under
this permit shall be sent by certified mail to the following address:
Director, Water Management Division, U.S. EPA, Region 4, Atlanta
Federal Center, 61 Forsyth Street, S.W., Atlanta, GA 30303-3104.
5. Termination of Operations
Lease block operators shall notify the Director (at the address
above) within 60 (sixty) days after the permanent termination of
discharges from their facility.
6. Intent To Be Covered by a Subsequent Permit
This permit shall expire five (5) years from the effective date of
issuance. However, an expired general permit continues in force and
effect until a new general permit is issued. Lease block operators
authorized to discharge by this permit shall by certified mail notify
the Director, Water Management Division, U.S. EPA, Region 4, Atlanta
Federal Center, 61 Forsyth Street, S.W., Atlanta, GA 30303-3104, on or
before [6 months prior to the expiration date of the permit], that they
intend to be covered by a permit that will authorize discharge from
these facilities after the termination date of this permit on [month,
day of year].
Permittees must submit a new NOI in accordance with the
requirements of this permit to remain covered under the continued
general permit after the expiration of this permit. Therefore,
facilities that have not submitted an NOI under the permit by the
expiration date cannot become authorized to discharge under any
continuation of this NPDES general permit. All NOI's from permittees
requesting coverage under a continued permit should be sent by
certified mail to: Director, Water Management Division, U.S. EPA,
Region 4, Atlanta Federal Center, 61 Forsyth Street, S.W., Atlanta, GA
30303-3104.

Section B. Effluent Limitations and Monitoring Requirements

1. Drilling Fluids
The discharge of drilling fluids shall be limited and monitored by
the permittee as specified in both tables and below.

Note: The permit prohibitions and limitations that apply to
drilling fluids, also apply to fluids that adhere to drill cuttings.
Any permit condition that applies to the drilling fluid system,
therefore, also applies to cuttings discharges.
(a) Prohibitions
Oil-Based Drilling Fluids. The discharge of oil-based drilling
fluids and inverse emulsion drilling fluids is prohibited.
Oil-Contaminated Drilling Fluids. The discharge of drilling fluids
to which waste engine oil, cooling oil, gear oil or any lubricants
which have been previously used for purposes other than borehole
lubrication have been added, is prohibited.
Diesel Oil. Drilling fluids to which any diesel oil has been added
as a lubricant or pill may not be discharged.
No Discharge Near Areas of Biological Concern. For those facilities
within 1000 meters of an area of biological concern the discharge of
drilling fluids is not allowed.
(b) Limitations
Mineral Oil. Mineral oil may be used only as a lubricity additive
or pill. If mineral oil is added to a water-based drilling fluid, the
drilling fluid may not be discharged unless the 96-hr LC50 of the
drilling fluid is greater than 30,000 ppm SPP and it passes the static
sheen test for free oil.
Cadmium and Mercury in Barite. There shall be no discharge of
drilling fluids to which barite has been added if such barite contains
mercury in excess of 1.0 mg/kg (dry weight) or cadmium in excess of 3.0
mg/kg (dry weight).
The permittee shall analyze a representative sample of each supply
of stock barite prior to drilling each well and submit the results for
total mercury and cadmium in the Discharge Monitoring Report (DMR). If
more than one well is being drilled at a site, new analyses are not
required for subsequent wells, provided that no new supplies of barite
have been received since the previous analysis. In this case, the
results of the previous analysis should be used for completion of the
DMR.
Alternatively, the permittee may provide certification, as
documented by the supplier(s), that the barite being used on the well
will meet the above limits. The concentration of the mercury

[[Page 863]]

and cadmium in the barite shall be reported on the DMR as documented by
the supplier.
Analyses shall be conducted by absorption spectrophotometry (see 40
CFR Part 136, flame and flameless AAS) and the results expressed in mg/
kg (dry weight).
Toxicity. Discharged drilling fluids shall meet both a daily
minimum and a monthly average minimum effluent toxicity limitation of
at least 30,000 ppm, (v/v) of a 9:1 seawater:mud suspended particulate
phase (SPP) based on a 96-hour test using Mysidopsis bahia. The method
is published in the final effluent guidelines at 58 FR 12507.
Monitoring shall be performed at least once per month for both the
daily minimum and the monthly average minimum. In addition, an end-of-
well sample is required (see definitions). The type of sample required
is a grab sample, taken from beneath the shale shaker. Results of
toxicity tests must be reported on the monthly DMRs. Copies of the
laboratory reports also must be submitted with the DMRs.
Free Oil. No free oil shall be discharged. Monitoring shall be
performed prior to discharges and on each day of discharge using the
static (laboratory) sheen test method in accordance with the method
provided in Part IV.A.3, as published in the final effluent guidelines
(58 FR 12506). The discharge of drilling fluids that fail the static
sheen test is prohibited. The results of each sheen test must be
recorded and the number of observations of a sheen must be reported on
each monthly DMR.
Maximum Discharge Rate. All facilities are subject to a maximum
discharge rate of 1,000 barrels per hour. Average daily discharge rates
must be recorded and the monthly average discharge rate reported on the
monthly DMR in barrels/day (BPD).
(c) Monitoring Requirements
In addition to the above limitations, the following monitoring and
reporting requirements also apply to drilling fluids discharges.
Drilling Fluids Inventory. The permittee shall maintain a precise
chemical inventory of all constituents and their total volume or mass
added downhole for each well. Information shall be recorded but not
reported unless specifically requested by EPA.
Volume. Once per month, the total monthly volume (bbl/month) of
discharged drilling fluids must be estimated and recorded. The volume
shall be reported on the monthly DMR.
Oil Content. There is no numeric limitation on the oil content of
discharged drilling muds (except that muds containing any waste oil, or
diesel oil as a lubricity agent shall not be discharged). However, note
that the oil added shall not cause a violation of either the toxicity
or free oil limitations discussed above. The oil content of discharged
drilling fluids shall be determined once per day when discharging, on a
grab sample taken from the same mud system being observed for the
static sheen (free oil) test.
2. Drill Cuttings
The discharge of drill cuttings shall be limited and monitored by
the permittee as specified in both tables and below.

Note: The permit prohibitions and limitations that apply to
drilling fluids also apply to fluids that adhere to drill cuttings.
Any permit condition that applies to the drilling fluid system,
therefore, also applies to cuttings discharges. Monitoring
requirements, however, may not be the same.
(a) Prohibitions
Cuttings from Oil-Based Drilling Fluids. Prohibitions that apply to
drilling fluids, set forth above in B.1(a), also apply to drill
cuttings. Therefore, the discharge of cuttings is prohibited when they
are generated while using an oil-based or invert emulsion mud.
Cuttings from Oil Contaminated Drilling Fluids. The discharge of
cuttings that are generated using drilling fluids that contain waste
engine oil, cooling oil, gear oil or any lubricants which have been
previously used for purposes other than borehole lubrication is
prohibited.
Cuttings generated using drilling fluids which contain diesel oil.
Drill cuttings generated using drilling fluids to which any diesel oil
has been added as a lubricant may not be discharged.
Cuttings generated using mineral oil. The discharge of cuttings
generated using drilling fluids which contain mineral oil is prohibited
except when the mineral oil is used as a carrier fluid (transporter
fluid), lubricity additive, or pill.
No Discharge Near Areas of Biological Concern. For those facilities
within 1000 meters of an area of biological concern discharge of
drilling cuttings is not allowed.
(b) Limitations
Mineral Oil. Limitations that apply to drilling fluids also apply
to drill cuttings. Therefore, if mineral oil pills or mineral oil
lubricity additives have been introduced to a water-based mud system,
cuttings may be discharged if they meet the limitations for toxicity
and free oil.
Free Oil. No free oil shall be discharged. Monitoring shall be
performed prior to bulk discharges and on each day of discharge using
the static (laboratory) sheen test method in accordance with the method
provided in Part IV.A.3. The discharge of cuttings that fail the static
sheen test is prohibited. The results of each sheen test must be
recorded and the number of observations of a sheen must be reported on
each monthly DMR.
Toxicity. Discharged cuttings generated using drilling fluids with
a daily minimum or a monthly average minimum 96-hour LC50 of less than
30,000 ppm, (v/v) of a 9:1 seawater to drilling fluid suspended
particulate phase (SPP) volumetric ratio using Mysidopsis bahia shall
not be discharged.
(c) Monitoring Requirements
Volume. Once per month, the monthly total discharge must be
estimated and recorded. The estimated volume of cuttings discharged
(bbl/month) shall be reported on the DMR.
3. Produced Water
The discharge of produced water shall be limited and monitored by
the permittee as specified in both tables and below.
(a) Prohibitions
No Discharge Near Areas of Biological Concern. For those facilities
within 1000 meters of an area of biological concern discharge of
produced water is not allowed.
(b) Limitations
Oil and Grease. Produced water discharges must meet both a daily
maximum limitation of 42 mg/l and a monthly average limitation of 29
mg/l for oil and grease. A grab sample must be taken at least once per
month. The daily maximum samples may be based on the average
concentration of four grab samples taken within the 24-hour period. If
only one sample is taken for any one month, it must meet both the daily
and monthly limits. If more samples are taken, they may exceed the
monthly average for any one day, provided that the average of all
samples taken meets the monthly limitation. The gravimetric method is
specified at 40 CFR part 136. The highest daily oil and grease
concentration and the monthly average concentration shall be reported
on the monthly DMR.
Toxicity. Produced water discharges must meet a toxicity limitation
projected to be the limiting permissible

[[Page 864]]

concentration (0.01 x LC50) at the edge of a 100-meter mixing zone. The
toxicity limitation will be calculated by EPA based on each facility's
site-specific water column conditions and discharge configuration. The
methods for this determination are presented in Appendix A of this
permit using the Cornell Mixing Zone Expert System (CORMIX). The
CORMIX1 (Version 1.4), which is explained in Chapter 4, Section 4.4 of
the Ocean Discharge Criteria Evaluation will be used to evaluate the
toxicity of the produced water outfalls.
Compliance with the toxicity limitation shall be demonstrated by
conducting 96-hour toxicity tests each month using Mysidopsis bahia and
sheepshead minnows. The method is published in ``Methods for Measuring
the Acute Toxicity of Effluents to Freshwater and Marine Organisms''
(EPA/600/4-85/013). The results for both species shall be reported on
the monthly DMR. The operator shall also submit a copy of all
laboratory reports with the DMR.
(b) Monitoring Requirements
Flow. Once per month, an estimate of the total flow (bbl/month)
must be reported on the DMR.
4. Deck Drainage
The discharge of deck drainage shall be limited and monitored by
the permittee as specified in both tables and below.
(a) Limitations
Free Oil. No free oil shall be discharged. Monitoring shall be
performed on each day of discharge using the visual sheen test method
in accordance with the method provided at Part IV.A.4. The discharge of
deck drainage that fails the visual sheen test is prohibited. The
results of each sheen test must be recorded and the number of
observations of a sheen must be reported on each monthly DMR.
(b) Monitoring Requirements
Volume. Once per month, the monthly total discharge (bbls/month)
must be estimated and reported on the DMR.
5. Produced Sand
The discharge of produced sand is prohibited under this general
permit. Wastes must be hauled to shore for treatment and disposal.
6. Well Treatment Fluids, Completion Fluids, and Workover Fluids
The discharge of well treatment fluids, completion fluids, and
workover fluids shall be limited and monitored by the permittee as
specified in both tables and below.
(a) Limitations
Free Oil. No free oil shall be discharged. Monitoring shall be
performed prior to discharge and on each day of discharge using the
static (laboratory) sheen test method in accordance with the method
provided at Part IV.A.3. The discharge of well treatment, completion,
or workover fluids that fail the static sheen test is prohibited. The
results of each sheen test must be recorded and the number of
observations of a sheen must be reported on each monthly DMR.
Oil and Grease. Well treatment fluids, completion fluids, and
workover fluids discharges must meet both a daily maximum of 42 mg/l
and a monthly average of 29 mg/l limitation for oil and grease. A grab
sample must be taken at least once per month when discharging. The
daily maximum concentration may be based on the average of four grab
samples taken within the 24-hour period. If only one sample is taken
for any one month, it must meet both the daily and monthly limits. If
more samples are taken, they may exceed the monthly average for any one
day, provided that the average of all samples taken meets the monthly
limitation. The analytical method is the gravimetric method, as
specified at 40 CFR part 136.
Priority Pollutants. For well treatment fluids, completion fluids,
and workover fluids, the discharge of priority pollutants is prohibited
except in trace amounts. Information on the specific chemical
composition of any additives containing priority pollutants shall be
recorded.

Note: If materials added downhole as well treatment, completion,
or workover fluids contain no priority pollutants, the discharge is
assumed not to contain priority pollutants except possibly in trace
amounts.
(b) Monitoring Requirements
Volume. Once per month, an estimate of the total volume discharged
(bbls/month) shall be reported on the DMR.
7. Sanitary Waste (Facilities Continuously Manned by 10 or More
Persons)
The discharge of sanitary waste shall be limited and monitored by
the permittee as specified in both tables and below.
(a) Prohibitions
Solids. No floating solids may be discharged. Observations must be
made once per day, during daylight in the vicinity of sanitary waste
outfalls, following either the morning or midday meals and at the time
during maximum estimated discharge. The number of days solids are
observed shall be recorded.
(b) Limitations
Residual Chlorine. Total residual chlorine is a surrogate parameter
for fecal coliform. Discharges of sanitary waste must contain a minimum
of 1 mg residual chlorine/l and shall be maintained as close to this
concentration as possible. The approved analytical method is Hach CN-
66-DPD. A grab sample must be taken once per month and the
concentration reported.
(Exception) Any facility which properly maintains a marine
sanitation device (MSD) that complies with pollution control standards
and regulations under Section 312 of the Act shall be deemed in
compliance with permit limitations for sanitary waste. The MSD shall be
tested annually for proper operation and the test results maintained at
the facility. The operator shall indicate use of an MSD on the monthly
DMR.
(c) Monitoring Requirements
Flow. Once per month, the average flow (MGD) must be estimated and
recorded for the flow of sanitary wastes.
8. Sanitary Waste (Facilities Continuously Manned by 9 or Fewer Persons
or Intermittently by Any Number)
The discharge of sanitary waste shall be limited and monitored by
the permittee as specified in both tables and below.
(a) Prohibitions
Solids. No floating solids may be discharged to the receiving
waters. An observation must be made once per day when the facility is
manned, during daylight in the vicinity of sanitary waste outfalls,
following either the morning or midday meal and at a time during
maximum estimated discharge. The number of days solids are observed
shall be recorded.
(Exception) Any facility which properly maintains a marine
sanitation device (MSD) that complies with pollution control standards
and regulations under Section 312 of the Act shall be deemed in
compliance with permit limitations for sanitary waste. The MSD shall be
tested annually for proper operation and the test results maintained at
the facility. The operator shall indicate use of an MSD on the monthly
DMR.

[[Page 865]]

9. Domestic Waste
The discharge of domestic waste shall be limited and monitored by
the permittee as specified in both tables and below.
(a) Prohibitions
Solids. No floating solids shall be discharged. In addition, food
waste, comminuted or not, may not be discharged within 12 nautical
miles from nearest land.
(b) Limitations
Solids. Comminuted food waste which can pass through a 25-mm mesh
screen (approximately 1 inch) may be discharged 12 or more nautical
miles from nearest land.
(c) Monitoring Requirements
Solids. An observation must be made during daylight in the vicinity
of domestic waste outfalls following either the morning or midday meal
and at a time during maximum estimated discharge. The number of days
solids are observed must be recorded.
10. Miscellaneous Discharges
Desalination Unit Discharge; Blowout Preventer Fluid;
Uncontaminated Ballast Water; Uncontaminated Bilge Water; Mud,
Cuttings, and Cement at the Seafloor; Uncontaminated Seawater; Boiler
Blowdown; Source Water and Sand; Diatomaceous Earth Filter Media.
The discharge of miscellaneous discharges shall be limited and
monitored by the permittee as specified in both tables and below.
(a) Limitations
Free Oil. No free oil shall be discharged. Monitoring shall be
performed using the visual sheen test method once per day when
discharging on the surface of the receiving water or by use of the
static sheen method at the operator's option. Both tests shall be
conducted in accordance with the methods presented at IV.A.3 and
IV.A.4. Discharge is limited to those times that a visual sheen
observation is possible. The number of days a sheen is observed must be
recorded.
(Exception) Discharge is not restricted to periods when observation
is possible; however, the static (laboratory) sheen test method must be
used during periods when observation of a sheen is not possible, such
as at night or during inclement conditions.

Section C. Other Discharge Limitations

1. Floating Solids or Visible Foam
There shall be no discharge of floating solids or visible foam from
any source other than in trace amounts.
2. Halogenated Phenol Compounds
There shall be no discharge of halogenated phenol compounds as a
part of any waste streams authorized in this permit.
3. Dispersants, Surfactants, and Detergents
The facility operator shall minimize the discharge of dispersants,
surfactants, and detergents except as necessary to comply with the
safety requirements of the Occupational Safety and Health
Administration and MMS. This restriction applies to tank cleaning and
other operations which do not directly involve the safety of workers.
The restriction is imposed because detergents disperse and emulsify
oil, potentially increasing toxic impacts and making the detection of a
discharge of free oil more difficult.
4. Rubbish, Trash, and Other Refuse
The discharge of any solid material not authorized in the permit
(as described above) is prohibited.
This permit includes limitations set forth by the U.S. Coast Guard
in regulations implementing Annex V of MARPOL 73/78 for domestic waste
disposal from all fixed or floating offshore platforms and associated
vessels engaged in exploration or exploitation of seabed mineral
resources (33 CFR 151). These limitations, as specified by Congress (33
U.S.C. 1901, the Act to Prevent Pollution from Ships), apply to all
navigable waters of the United States.
This permit prohibits the discharge of ``garbage'' including food
wastes, within 12 nautical miles from nearest land. Comminuted food
waste (able to pass through a screen with a mesh size no larger than 25
mm, approx. 1 inch) may be discharged when 12 nautical miles or more
from land. Graywater, drainage from dishwater, shower, laundry, bath,
and washbasins are not considered garbage within the meaning of Annex
V. Incineration ash and non-plastic clinkers that can pass through a
25-mm mesh screen may be discharged beyond 3 miles from nearest land.
Otherwise, ash and non-plastic clinkers may be discharged beyond 12
nautical miles from nearest land.
5. Areas of Biological Concern
There shall be no discharge of drilling muds, drill cuttings and
produced water within 1000 meters of Areas of Biological Concern. If at
any time it is determined that a facility is located within 1000 meters
of an area of biological concern, the operator shall immediately cease
discharge from these outfalls in the area and shall file an application
for an individual permit as provided in 40 CFR 122.28(b)(3). The
operator may not resume discharging from these outfalls until an
individual permit has been issued.

Part II. Standard Conditions for NPDES Permits

Section A. Introduction and General Conditions

In accordance with the provisions of 40 CFR Part 122.41, et. seq.,
this permit incorporates by reference ALL conditions and requirements
applicable to NPDES permits set forth in the Clean Water Act, as
amended, as well as ALL applicable regulations.
1. Duty to Comply
The permittee must comply with all conditions of this permit. Any
permit noncompliance constitutes a violation of the Act and is grounds
for enforcement action or for requiring a permittee to apply and obtain
an individual NPDES permit.
2. Penalties for Violations of Permit Conditions--33 U.S.C. 1319(c)
(a) Criminal Penalties
(1) Negligent Violations. The Act provides that any person who
negligently violates permit conditions implementing Section 301,
302, 306, 307, 308, 318, or 405 of the Act is subject to criminal
penalties 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 both.
(2) Knowing Violations. The Act provides that any person who
knowingly violates permit conditions implementing Section 301, 302,
306, 307, 308, 318, or 405 of the Act is subject to criminal
penalties of not less than $5,000 nor more than $50,000 per day of
violation, or by imprisonment for not more than 3 years, or both.
(3) Knowing Endangerment. The Act provides that any person who
knowingly violates permit conditions implementing Section 301, 302,
303, 306, 307, 308, 318, or 405 of the Act and who knows at that
time that he is placing another person in imminent danger of death
or serious bodily injury is subject to a fine of not more than
$250,000 per day of violation for individuals or up to $1 million
for organizations, or by imprisonment for not more than 15 years, or
both.
(4) False Statements. The Act provides that any person who
knowingly makes any false material statement, representation, or
certification in any application, record, report, plan, or other
document filed or required to be maintained under the Act or who
knowingly falsifies, tampers with, or renders inaccurate, any
monitoring device or method required to be maintained under the Act,
shall upon conviction, be punished by a fine of not more than
$10,000, or by imprisonment for not more than 2 years, or by both.
If a conviction of a person is for a violation committed after a
first conviction of

[[Page 866]]

such person under this paragraph, punishment shall be by a fine of
not more than $20,000 per day of violation, or by imprisonment of
not more than 4 years, or by both. (See Section 309(c) of the Clean
Water Act.)
(b) Civil Penalties--33 U.S.C. 1319(d)
The Act provides that any person who violates a permit condition
implementing Section 301, 302, 306, 307, 308, 318, or 405 of the Act is
subject to a civil penalty not to exceed $25,000 per day for such
violation. A single operational upset which leads to simultaneous
violations of more than one pollutant parameter shall be treated as a
single violation.
(c) Administrative Penalties
The Act at Section 309 allows that the Regional Administrator may
assess a Class I or Class II civil penalty for violations of Section
301, 302, 306, 307, 308, 318, or 405 of the Act. A Class I penalty may
not exceed $10,000 per violation nor shall the maximum amount exceed
$25,000. A Class II penalty may not exceed $10,000 per day for each day
during which the violation continues except that the maximum amount
shall not exceed $125,000. An upset that leads to violations of more
than one pollutant parameter will be treated as a single violation.
3. Duty to Mitigate
The permittee shall take all reasonable steps to minimize or
prevent any discharge in violation of this permit which has a
reasonable likelihood of adversely affecting human health or the
environment.
4. Permit Flexibility
These permits may be modified, revoked and reissued for the causes
set forth at 40 CFR 122.62. The permits may be terminated for the
following reasons (see 40 CFR 122.62):
(a) Violation of any terms or conditions of this permit;
(b) Obtaining this permit by misrepresentation or failure to
disclose fully all relevant facts;
(c) A change in any condition that requires either a temporary or a
permanent reduction or elimination of the authorized discharge; or
(d) A determination that the permitted activity endangers human
health or the environment and can only be regulated to acceptable
levels by permit modification or termination.
The filing of a request for a permit modification, revocation and
reissuance, or termination, or a notification of planned changes or
anticipated noncompliance does not stay any permit condition.
5. Toxic Pollutants
Notwithstanding Part II.A.4, if any toxic effluent standard or
prohibition (including any schedule of compliance specified in such
effluent standard or prohibition) is promulgated under Section 307(a)
of the Act for a toxic pollutant which is present in the discharge and
that standard or prohibition is more stringent than any limitation on
the pollutant in this permit, this permit shall be modified or revoked
and reissued to conform to the toxic effluent standard or prohibition
and the permittee so notified.
The permittee shall comply with effluent standards or prohibitions
established under Section 307(a) of the Act for toxic pollutants within
the time provided in the regulations that established those standards
or prohibitions, even if the permit has not yet been modified to
incorporate the requirement.
6. Civil and Criminal Liability
Except as provided in permit conditions on ``Bypassing'' and
``Upsets'' (see II.B.3 and II.B.4), nothing in this permit shall be
construed to relieve the permittee from civil or criminal penalties for
noncompliance with permit conditions. Any false or misleading
representation or concealment of information required to be reported by
the provisions of the permit, the Act, or applicable CFR regulations,
which avoids or effectively defeats the regulatory purpose of the
permit may subject the permittee to criminal enforcement pursuant to 18
U.S.C. Section 1001.
7. 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 Clean Water Act.
8. 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 Clean Water Act.
9. Property Rights
The issuance of this permit does not convey any property rights of
any sort, any exclusive privileges, authorize any injury to private
property, any invasion of personal rights, nor any infringement of
Federal, state, or local laws or regulations.
10. Onshore or Offshore Construction
This permit does not authorize or approve the construction of any
onshore or offshore physical structure of facilities or the undertaking
of any work in any waters of the United States.
11. 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.
12. Duty to Provide Information
The permittee shall furnish to the Regional Administrator, within a
reasonable time, any information which the Regional Administrator 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 Regional
Administrator upon request, copies of records required to be kept by
this permit.

Section B. Proper Operation and Maintenance of Pollution Controls

1. 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 this permit. Proper operation and maintenance also
includes adequate laboratory controls and appropriate quality assurance
procedures. This provision requires the operation of backup or
auxiliary facilities or similar systems which are installed by a
permittee only when the operation is necessary to achieve compliance
with the conditions of this permit.
2. Need To Halt or Reduce Not a Defense
It shall not be a defense for a permittee in an enforcement action
that it would have been necessary to halt or reduce the permitted
activity in order to maintain compliance with the conditions of this
permit.
3. Bypass of Treatment Facilities
(a) Definitions
(1) Bypass means the intentional diversion of waste streams from
any portion of a treatment facility.

[[Page 867]]

(2) Severe property damage means substantial physical damage to
property, damage to the treatment facilities that causes them to become
inoperable, or substantial and permanent loss of natural resources that
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.
(b) 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 Section B.3(c) and 3(d) below.
(c) Notice
(1) Anticipated bypass. If the permittee knows in advance of the
need for a bypass, it shall submit prior notice, if possible at least
ten days before the date of the bypass.
(2) Unanticipated bypass. The permittee shall, submit notice of an
unanticipated bypass as required in Section D.7 (24-hour reporting).
(d) Prohibition of Bypass
(1) Bypass is prohibited and the Regional Administrator may take
enforcement action against a permittee for bypass, unless:
(a) Bypass was unavoidable to prevent loss of life, personal
injury, or severe property damage;
(b) There were no feasible alternatives to the bypass, such as the
use of auxiliary treatment facilities, retention of untreated wastes,
or maintenance during normal periods of equipment downtime. This
condition is not satisfied if adequate back-up equipment should have
been installed in the exercise of reasonable engineering judgement to
prevent a bypass that occurred during normal periods of equipment
downtime or preventive maintenance; and,
(c) The permittee submitted notices as required under Section
B.3(c).
(2) The Regional Administrator may approve an anticipated bypass
after considering its adverse effects, if the Regional Administrator
determines that it will meet the three conditions listed above in
Section B.3(d)(1).
4. Upset Conditions
(a) Definition
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.
(b) Effect of An Upset
An upset constitutes an affirmative defense to an action brought
for noncompliance with such technology-based permit effluent
limitations if the requirements of Section B.4(c) are met. No
determination made during administrative review of claims that
noncompliance was caused by upset, and before an action for
noncompliance, is final administrative action subject to judicial
review.
(c) Conditions Necessary for a Demonstration of Upset
A permittee who wishes to establish the affirmative defense of
upset shall demonstrate, through properly signed, contemporaneous
operating logs, or other relevant evidence that:
(1) An upset occurred and that the permittee can identify the
cause(s) of the upset;
(2) The permitted facility was at the time being properly operated;
(3) The permittee submitted notice of the upset as required by
Section D.7 below; and,
(4) The permittee complied with any remedial measures required by
Section A.3, above.
(d) Burden of Proof
In any enforcement proceeding, the permittee seeking to establish
the occurrence of an upset has the burden of proof.
5. Removed Substances
Solids, sewage sludges, filter backwash, or other pollutants
removed in the course of treatment or control of wastewaters shall be
disposed of in a manner such as to prevent any pollutant from such
materials from entering navigable waters. Any substance specifically
listed within this permit may be discharged in accordance with
specified conditions, terms, or limitations.

Section C. Monitoring and Records

1. Representative Sampling
Samples and measurements taken as required herein shall be
representative of the volume and nature of the monitored discharge.
2. Discharge Rate/Flow Measurements
Appropriate flow measurement devices and methods consistent with
accepted scientific practices shall be selected, maintained, and used
to ensure the accuracy and reliability of measurements of the volume of
monitored discharges. The devices shall be installed, calibrated, and
maintained to insure that the accuracy of the measurements is
consistent with the accepted capability of that type of device. Devices
selected shall be capable of measuring flows with a maximum deviation
of less than 10% from true discharge rates throughout the
range of expected discharge volumes.
3. 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 in Part IV, below.
4. Penalties for Tampering
The Clean Water Act provides that any person who falsifies, tampers
with, or knowingly renders inaccurate, any monitoring device or method
required to be maintained under this permit shall, upon conviction, be
punished by a fine of not more than $10,000 per violation, or
imprisonment for not more than 2 years, or both.
5. Retention of Records
The permittee shall retain records of all monitoring information,
including all calibration and maintenance records and all original
strip chart recordings for continuous monitoring instrumentation, and
copies of all reports required by this permit for a period of at least
3 years from the date of the sample, measurement, or report. This
period may be extended by request of the Regional Administrator at any
time. The operator shall maintain records at development and production
facilities for 3 years, wherever practicable and at a specific shore-
based site whenever not practicable.
6. Record Contents
Records of monitoring information shall include:
(a) The date, exact place, and time of sampling or measurements;
(b) The individual(s) who performed the sampling or measurements;
(c) The date(s) analyses were performed;
(d) The individual(s) who performed the analyses;
(e) The analytical techniques or methods used; and
(f) The results of such analyses.

[[Page 868]]

7. Inspection and Entry
The permittee shall allow the Regional Administrator or an
authorized representative, upon the presentation of credentials and
other documents as may be required by the law, to:
(a) Enter upon the permittee's premises where a regulated facility
or activity is located or conducted, or where records must be kept
under the conditions of this permit;
(b) Have access to and copy, at reasonable times, any records that
must be kept under the conditions of this permit;
(c) Inspect at reasonable times any facilities, equipment
(including monitoring and control equipment), practices, or operations
regulated or required under this permit; and
(d) Sample or monitor at reasonable times, for the purpose of
assuring permit compliance or as otherwise authorized by the Act, any
substances or parameters at any location.

Section D. Reporting Requirements

1. Planned Changes
The permittee shall give notice to Regional Administrator as soon
as possible of any planned physical alterations or additions to the
permitted facility. Notice is required only when:
(a) The alteration or addition to a facility permitted under the
existing source general permit may meet one of the criteria for
determining whether a facility is a new source in 40 CFR Part 122.29(b)
(58 FR 12454; final effluent guidelines for the offshore subcategory);
or
(b) The alteration or addition could significantly change the
nature or increase the quantity of pollutants discharged. This
notification applies to pollutants which are subject neither to
effluent limitations in the permit, nor to notification requirements
under 40 CFR 122.42(a)(1) (48 FR 14153, April 1, 1963, as amended at 49
FR 38049, September 26, 1984).
2. Anticipated Noncompliance
The permittee shall give advance notice to the Regional
Administrator of any planned changes in the permitted facility or
activity which may result in noncompliance with permit requirements.
3. Transfers
This permit is not transferable to any person. Any new owner or
operator shall submit a notice of intent to be covered under this
general permit according to procedures presented at Part I.A.3.
4. Monitoring Reports
See Part III.A of this permit.
5. Additional Monitoring by the Permittee
If the permittee monitors any pollutant more frequently than
required by this permit, using test procedures approved under 40 CFR
Part 136 or as specified in this permit, the results of this monitoring
shall be included in the calculation and reporting of the data
submitted in the DMR. Such increased monitoring frequency also shall be
indicated on the DMR.
6. Averaging of Measurements
Calculations for all limitations which require averaging of
measurements shall utilize an arithmetic mean unless otherwise
specified by the Regional Administrator in the permit.
7. Twenty-Four Hour Reporting
The permittee shall report any noncompliance which may endanger
health or the environment (this includes any spill that requires
reporting to the state regulatory authority). Information shall be
provided orally within 24 hours from the time the permittee becomes
aware of the circumstances. A written submission shall be provided
within 5 days of the time the permittee becomes aware of the
circumstances. The written submission shall contain a description of
the noncompliance and its cause; the period of noncompliance including
exact dates and times, and if the noncompliance has not been corrected,
the anticipated time it is expected to continue; and, steps taken or
planned to reduce, eliminate, and prevent recurrence of the
noncompliance. The director may waive the written report on a case-by-
case basis if the oral report has been received within 24 hours.
The following shall be included as information which must be
reported within 24 hours:
(a) Any unanticipated bypass which exceeds any effluent limitation
in the permit;
(b) Any upset which exceeds any effluent limitation in the permit;
(c) Violations of a maximum daily discharge limitation for any of
the pollutants listed by the Director in Part II of the permit to be
reported within 24 hours.
The reports should be made to Region 4 by telephone at (404) 562-
9746. The Regional Administrator may waive the written report on a
case-by-case basis if the oral report has been received within 24
hours.
8. Other Noncompliance
The permittee shall report all instances of noncompliance not
reported under Part II.D.7 at the time monitoring reports are
submitted. The reports shall contain the information listed at II.D.7.
9. Other Information
When the permittee becomes aware that it failed to submit any
relevant facts in a permit application, or submitted incorrect
information in a permit application or in any report to the Regional
Administrator, it shall promptly submit such facts or information.
10. Changes in Discharges of Toxic Substances
For any toxic pollutant that is not limited in this permit, either
as an additive itself or as a component in an additive formulation, the
permittee shall notify the Regional Administrator as soon as he knows
or has reason to believe that:
(a) Any activity has occurred or will occur which would result in
the discharge of such toxic pollutants on a routine or frequent basis,
if that discharge will exceed the highest of the ``notification
levels'' described at 40 CFR 122.42(a)(1)(i) and (ii);
(b) Any activity has occurred or will occur which would result in
any discharge of such toxic pollutants on a non-routine or infrequent
basis, if that discharge will exceed the highest of the ``notification
levels'' described at 40 CFR 122.42(a)(2)(i) an (ii).
11. Duty to Reapply
If the permittee wishes to continue an activity regulated by this
permit after the expiration date of this permit, the permittee must
submit an NOI to be covered or must apply for a new permit.
Continuation of expiring permits shall be governed by regulations at 40
CFR Part 122.6 and any subsequent amendments.
12. Signatory Requirements
All NOIs, applications, reports, or information submitted to the
Director shall be signed and certified as required at 40 CFR 122.22.
(a) All permit applications shall be signed as follows:
(1) For a corporation: By a responsible corporate officer. For the
purpose of this section, a responsible corporate officer means:
(i) A president, secretary, treasurer, or vice-president of the
corporation in charge of a principal business function, or any other
person who performs

[[Page 869]]

similar policy or decision making functions for the corporation; or,
(ii) The manager of one or more manufacturing, production, or
operating facilities employing more than 250 persons or having gross
annual sales or expenditures exceeding $25 million (in second-quarter
1980 dollars), if authority to sign documents has been assigned or
delegated to the manager in accordance with corporate procedures.
(2) For a partnership or sole proprietorship--by a general partner
or the proprietor, respectively.
(b) Authorized Representative. All reports required by the permit
and other information requested by the Regional Administrator shall be
signed by a person described above or by a duly authorized
representative of that person. A person is a duly authorized
representative only if:
(1) The authorization is made in writing by a person described
above;
(2) The authorization specifies either an individual or a position
having responsibility for the overall operation of the regulated
facility or activity, such as the position of plant manager, operator
of a well or a well field, superintendent, or position of equivalent
responsibility, or an individual or position having overall
responsibility for environmental matters for the company. A duly
authorized representative may thus be either a named individual or an
individual occupying a named position; and,
(3) The written authorization is submitted to the Regional
Administrator.
(c) Changes to Authorization. If an authorization under paragraph
(b) of this section 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 (b) of this section must be submitted to the Director prior
to or together with any reports, information, or application to be
signed by an authorized representative.
(d) Certification. Any person signing a document under this section
shall make the following certification: ``I certify under penalty of
law that this document and all attachments were prepared under my
direction or supervision in accordance with a system designed to assure
that qualified personnel properly gather and evaluate the information
submitted. Based on my inquiry of the person or persons who manage the
system, or those persons directly responsible for gathering the
information, the information submitted is, to the best of my knowledge
and belief, true, accurate, and complete. I am aware that there are
significant penalties for submitting false information, including the
possibility of fine and imprisonment for knowing violations.''
13. Availability of Reports
Except for data determined to be confidential under 40 CFR Part 2,
all reports prepared in accordance with the terms of this permit shall
be available for public inspection at the Regional Office. As required
by the Act, the name and address of any permit applicant or permittee,
permit applications, permits, and effluent data shall not be considered
confidential.

Part III. Monitoring Reports and Permit Modification

Section A. Monitoring Reports

The operator of each lease block shall be responsible for
submitting monitoring results for each facility within each lease
block. If there is more than one facility in each lease block
(platform, drilling ship, semi-submersible), the discharge shall be
designated in the following manner: 101 for the first facility; 201 for
the second facility; 301 for the third facility, etc.
Monitoring results obtained for each month shall be summarized for
that month and reported on a Discharge Monitoring Report (DMR) form
(EPA No. 3320-1), postmarked no later than the 28th day of the month
following the completed calendar month. (For example, data for January
shall be submitted by February 28.) Signed copies of these and all
other reports required by Part II.D shall be submitted to the following
address:

Director, Water Management Division, Clean Water Act Enforcement
Section, U.S. EPA, Region 4, Atlanta Federal Center 61 Forsyth Street,
S.W., Atlanta, GA 30303-3104

All laboratory reports submitted with DMRs should clearly indicate
the permit number, outfall number, and any other identification
information necessary to associate the report with the correct
facility, waste stream, and outfall.
If no discharge occurs during the reporting period, sampling
requirements of this permit do not apply. The statement ``No
Discharge'' shall be written on the DMR form. If, during the term of
this permit, the facility ceases discharge to surface waters, the
Regional Director shall be notified immediately upon cessation of
discharge. This notification shall be in writing.

Section B. Permit Modification

This permit shall be modified, or alternatively, revoked and
reissued, to comply with any applicable effluent standard or
limitation, or sludge disposal requirement issued or approved under
sections 301(b)(2)(C) and (D), 307(a)(2), and 405(d)(2)(D) of the Act,
as amended, if the effluent standard or limitation, or sludge disposal
requirement so issued or approved:
(a) Contains different conditions or is otherwise more stringent
than any conditions 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.

Part IV. Test Procedures and Definitions

Section A. Test Procedures

1. Samples of Wastes
If requested, the permittee shall provide EPA with a sample of any
waste in a manner specified by the Agency.
2. Drilling Fluids Toxicity Test
The approved sampling and test methods for permit compliance are
provided in the final effluent guidelines published at 58 FR 12507 on
March 4, 1993 as Appendix 2 to Subpart A of Part 435.
3. Static (Laboratory) Sheen Test
The approved sampling and test methods for permit compliance are
provided in the final effluent guidelines published at 58 FR 12506 on
March 4, 1993 as Appendix 1 to Subpart A.
4. Visual Sheen Test
The visual sheen test is used to detect free oil by observing the
surface of the receiving water for the presence of a sheen while
discharging. A sheen is defined as a ``silvery'' or ``metallic'' sheen,
gloss, or increased reflectivity; visual color; iridescence; or oil
slick on the surface (see 58 FR 12507). The operator must conduct a
visual sheen test only at times when a sheen could be observed. This
restriction eliminates observations at night or when atmospheric or
surface conditions prohibit the observer from detecting a sheen (e.g.,
during rain or rough seas, etc.). Certain discharges can only occur if
a visual sheen test can be conducted.
The observer must be positioned on the rig or platform, relative to
both the discharge point and current flow at the time of discharge,
such that the observer can detect a sheen should it surface down
current from the discharge. For discharges that have been occurring for
at least 15 minutes previously,

[[Page 870]]

observations may be made any time thereafter. For discharges of less
than 15 minutes duration, observations must be made both during
discharge and 5 minutes after discharge has ceased.
5. Produced Water Acute Toxicity Test
The method for determining the 96-hour LC50 for effluents is
published in ``Methods for Measuring the Acute Toxicity of Effluents to
Freshwater and Marine Organisms'' (EPA/600/4-85/013). The species to be
used for compliance testing for this permit are Mysidopsis bahia and
sheepshead minnows (Cyprinodon variegatus).

Section B. Definitions

1. Act means the Clean Water Act (CWA), as amended (33 U.S.C. 1251
et seq).
2. Administrator means the Administrator of EPA, Region 4, or an
authorized representative.
3. Areas of Biological Concern for waters within the territorial
seas (shoreline to 3-miles offshore) are those defined as ``no activity
zones'' for biological reasons by the states of Alabama, Florida or
Mississippi. For offshore waters seaward of three miles, areas of
biological concern include ``no activity zones'' defined by the
Department of the Interior (DOI) for biological reasons, or identified
by EPA in consultation with the DOI, the states, or other interested
federal agencies, as containing biological communities, features or
functions that are potentially sensitive to discharges associated with
the oil and gas industry. Areas of Biological Concern include, but are
not limited to, the following: Southwest Rock (30 deg.06.1' N,
88 deg.12.3' W), Southeast Banks (30 deg.00.9' N; 87 deg.57.1' W); 17
Fathom Hole (29 deg.55.6' N 88 deg.03.4' W) and lease blocks with
Pinnacle Trend Features. These areas are geographically and in greater
detail in Appendix B. EPA may, from time to time, identify additional
Areas of Biological Concern.
4. Applicable Effluent Standards and Limitations means all state
and Federal effluent standards and limitations to which a discharge is
subject under the Act, including, but not limited to, effluent
limitations, standards of performance, toxic effluent standards and
prohibitions, and pretreatment standards.
5. Average Daily Discharge Limitation means the highest allowable
average of discharges over a 24-hour period, calculated as the sum of
all discharges or concentrations measured divided by the number of
discharges or concentrations measured that day.
6. Average Monthly Discharge Limitation means the highest allowable
average of ``daily discharges'' over a calendar month, calculated as
the sum of all ``daily discharges'' measured during a calendar month
divided by the number of discharges measured that month. The limitation
may be the average of discharge rates or concentrations.
7. Batch or Bulk Discharge is any discharge of a discrete volume or
mass of effluent from a pit, tank, or similar container that occurs on
a one-time, infrequent, or irregular basis.
8. Blowout-Out Preventer Control Fluid means fluid used to actuate
the hydraulic equipment on the blow-out preventer or subsea production
wellhead assembly.
9. Boiler Blowdown means discharges from boilers necessary to
minimize solids build-up in the boilers, including vents from boilers
and other heating systems.
10. Bulk Discharge means any discharge of a discrete volume or mass
of effluent from a pit tank or similar container that occurs on a one-
time, infrequent, or irregular basis.
11. Bypass means the intentional diversion of waste streams from
any portion of a treatment facility.
12. Clinkers are small lumps of residual material left after
incineration.
13. Completion Fluids are salt solutions, weighted brines, polymers
and various additives used to prevent damage to the wellbore during
operations which prepare the drilled well for hydrocarbon production.
These fluids move into the formation and return to the surface as a
slug with the produced water. Drilling muds remaining in the wellbore
during logging, casing, and cementing operations or during temporary
abandonment of the well are not considered completion fluids and are
regulated by drilling fluids requirements.
14. Daily Average Discharge (also known as monthly average)
limitations means the highest allowable average daily discharge(s) over
a calendar month, calculated as the sum of all daily discharge(s)
measured during a calendar month divided by the number of daily
discharge(s) measured during that month.
15. Daily Discharge means the discharge of a pollutant measured
during a calendar day or any 24-hour period that reasonably represents
the calendar day for purposes of sampling. For pollutants with
limitations expressed in terms of mass, the daily discharge is
calculated as the total mass of the pollutant or waste stream
discharged over the sampling day. For pollutants with limitations
expressed in other units of measurement, the daily discharge is
calculated as the average measurement of the pollutant over the
sampling day. Daily discharge determination of concentration made using
a composite sample shall be the concentration of the composite sample.
When grab samples are used, the daily discharge determination of
concentration shall be the average (weighted by flow value) of all
samples collected during that sampling day.
16. Daily Maximum Discharge Limitations are the highest allowable
discharge rate or concentration measured during a calendar day.
17. Deck Drainage is all waste resulting from platform washings,
deck washings, deck area spills, equipment washings, rainwater, and
runoff from curbs, gutters, and drains, including drip pans and wash
areas.
18. Desalination Unit Discharge means waste water associated with
the process of creating freshwater from seawater.
19. Development Drilling means the drilling of wells required to
efficiently produce a hydrocarbon formation or formations.
20. Diatomaceous Earth Filter Media is the filter media used to
filter seawater or other authorized completion fluids and subsequently
washed from the filter.
21. Diesel Oil is the distillate fuel oil typically used in
conventional oil-based drilling fluids, which contains a number of
toxic pollutants. For the purpose of any particular operation under
this permit, diesel oil shall refer to the fuel oil present on the
facility.
22. Domestic Waste is the discharge from galleys, sinks, showers,
safety showers, eye wash stations, hand washing stations, fish cleaning
stations, and laundries.
23. Drill Cuttings are particles generated by drilling into the
subsurface geological formations including cured cement carried to the
surface with the drilling fluid.
24. Drilling Fluids are any fluids sent down the hole, including
drilling muds and any specialty products, from the time a well is begun
until final cessation of drilling in that hole.
25. End of Well Sample means the sample taken after the final log
run is completed and prior to bulk discharge.
26. Excess Cement Slurry means the excess mixed cement, including
additives and wastes from equipment washdown after a cementing
operation.
27. Existing Sources are facilities conducting exploration
activities and those that have commenced development or production
activities that were permitted as of the effective

[[Page 871]]

date of the Offshore Guidelines (March 4, 1993).
28. Free Oil is oil that causes a sheen, streak, or slick on the
surface of the test container or receiving water.
29. Garbage means all kinds of victual, domestic, and operational
waste ``generated during the normal operation of the ship and liable to
be disposed of continuously or periodically'' (see MARPOL 73/78
regulations).
30. Grab Sample means an individual sample collected in less than
15 minutes.
31. Graywater is drainage from dishwater, shower, laundry, bath,
and washbasin drains and does not include drainage from toilets,
urinals, hospitals, and drainage from cargo areas (see MARPOL 73/78
regulations).
32. Inverse Emulsion Drilling Fluids are oil-based drilling fluids
which also contain large amounts of water.
33. Live Bottom Areas are those areas that contain biological
assemblages consisting of such sessile invertebrates as sea fans, sea
whips, hydroids, anemones, ascideians sponges, bryozoans, seagrasses,
or corals living upon and attached to naturally occurring hard or rocky
formations with fishes and other fauna.
34. Maximum Hourly Rate is the greatest number of barrels of
drilling fluids discharged within one hour, expressed as barrels per
hour.
35. Muds, Cuttings, and Cement at the Seafloor means discharges
that occur at the seafloor prior to installation of the marine riser
and during marine riser disconnect, well abandonment, and plugging
operations.
36. National Pollutant Discharge Elimination System (NPDES) means
the national program for issuing, modifying, revoking and reissuing,
terminating, monitoring, and enforcing permits, and imposing and
enforcing pretreatment requirements under sections 307, 318, 402, 403,
and 405 of the Act.
37. New Source means any facility or activity of this subcategory
that meets the definition of ``new source'' under 40 CFR 122.2 and
meets the criteria for determination of new sources under 40 CFR
122.29(b) applied consistently with all of the following defintions:
(i) The term water area as used in the term ``site'' in 40 CFR 122.29
and 122.2 shall mean the water area and ocean floor beneath any
exploratory, development, or production facility where such facility is
conducting its exploratory, development or production activities, (ii)
the term significant site preparation work as used in 40 CFR 122.29
shall mean the process of surveying, clearing, or preparing an area of
the ocean floor for the purpose of constructing or placing a
development or production facility on or over the site.
38. No Activity Zones include those areas identified by MMS where
no structures, drilling rigs, or pipelines will be allowed. These zones
are identified as lease stipulations in U.S. Department of the
Interior, MMS, August 1990, Environmental Impact Statement for Sales
131, 135, and 137 Western, Central, and Eastern Gulf of Mexico.
Additional no activity zones may be identified by MMS during the life
of this permit, and by the States of Alabama, Mississippi and Florida
within their territorial waters (up to 3 miles offshore) where no
structures, drilling rigs, or pipelines will be allowed.
39. No Discharge Areas are areas specified by EPA where discharge
of pollutants may not occur.
40. Non-Operational Leases are those leases on which no discharge
has taken place within 2 years prior to the effective date of the new
general permits.
41. Operating Facilities are leases on which a discharge has taken
place within 2 years of the effective date of the new general permits.
42. Packer Fluids are low solids fluids between the packer,
production string, and well casing. They are considered to be workover
fluids.
43. Priority Pollutants are the 126 chemicals or elements
identified by EPA, pursuant to section 307 of the Clean Water Act and
40 CFR 401.15.
44. Produced Sand is sand and other solids removed from the
produced waters. Produced sand also includes desander discharge from
produced water waste stream and blowdown of water phase from produced
water treating systems.
45. Produced Water is water and particulate matter associated with
oil and gas producing formations. Produced water includes small volumes
of treating chemicals that return to the surface with the produced
fluids and pass through the produced water treating system.
46. Sanitary Waste means human body waste discharged from toilets
and urinals.
47. Severe Property Damage means substantial physical damage to
property, damage to the treatment facilities which cause them to become
inoperable, or substantial and permanent loss of natural resources
which can reasonably be expected to occur in the absence of a bypass.
Severe property damage does not mean economic loss caused by delays in
production.
48. Sheen means a silvery or metallic sheen, gloss, or increased
reflectivity; visual color; iridescence; or oil slick on the water
surface.
49. Source Water and Sand are the water and entrained solids
brought to the surface from non-hydrocarbon bearing formations for the
purpose of pressure maintenance or secondary recovery.
50. Spotting means the process of adding a lubricant (spot)
downhole to free stuck pipe.
51. Territorial Seas means the belt of the seas measured from the
line of ordinary low water along that portion of the coast which is in
direct contact with the open sea and the line marking the seaward limit
of inland waters, and extending seaward a distance of three miles.
52. Trace Amounts means that if materials added downhole as well
treatment, completion, or workover fluids do not contain priority
pollutants then the discharge is assumed not to contain priority
pollutants except possibly in trace amounts.
53. Uncontaminated Ballast/Bilge water means seawater added or
removed to maintain proper draft that does not come in contact with
surfaces that may cause contamination.
54. Uncontaminated Seawater means seawater that is returned to the
sea without the addition of chemicals. Included are (1) discharges of
excess seawater that permit the continuous operation of fire control
and utility lift pumps, (2) excess seawater from pressure maintenance
and secondary recovery projects, (3) water released during the training
and testing of personnel in fire protection, (4) seawater used to
pressure test piping, and (5) once through non-contact cooling water.
55. 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.
56. Well treatment fluids are any fluid used to restore or improve
productivity by chemically or physically altering hydrocarbon-bearing
strata after a well has been drilled. These fluids move into the
formation and return to the surface as a slug with the produced water.
Stimulation fluids include substances such as acids, solvents, and
propping agents.
57. Workover fluids are salt solutions, weighted brines, polymers,
and other specialty additives used in a producing well to allow safe
repair and

[[Page 872]]

maintenance or abandonment procedures. High solids drilling fluids used
during workover operations are not considered workover fluids by
definition and therefore must meet drilling fluid effluent limitations
before discharge may occur. Packer fluids, low solids fluids between
the packer, production string, and well casing are considered to be
workover fluids and must meet only the effluent requirements imposed on
workover fluids.
58. The term MGD means million gallons per day.
59. The term mg/l means milligrams per liter or parts per million
(ppm).
60. The term gu/l means micrograms per liter or part per billion
(ppb).

Existing Sources

Table 2.--Effluent Limitations, Prohibitions, and Monitoring Requirements for the Eastern Gulf of Mexico NPDES General Permit
--------------------------------------------------------------------------------------------------------------------------------------------------------
Monitoring requirement
Regulated & monitored Discharge limitation/ --------------------------------------------------------------------
Discharge discharge parameter prohibition Measurement Recorded/reported
frequency Sample type/method value
--------------------------------------------------------------------------------------------------------------------------------------------------------
Drilling Fluids.................... Oil-based Drilling No discharge..........
Fluids.
Oil-contaminated No discharge..........
Drilling Fluids.
Drilling Fluids to No discharge..........
Which Diesel Oil has
been Added.
Mercury and Cadmium in No discharge of Once per new source Flame and flameless mgHg and mg Cd/kg in
Barite. drilling fluids if of barite used. AAS.. stock barite.
added barite contains
Hg in excess of 1.0
mg/kg or Cd in excess
of 3.0 mg/kg (dry wt).
Toxicity ^{a............ 30,000 ppm daily Once/month Once/end Grab/96-hr LC50 using Minimum LC50 of tests
minimum. of well ^{b Mysidopsis bahia; performed and
30,000 ppm monthly Once/month. Method at 58 FR monthly average
average minimum. 12507. LC50.
Free Oil.............. No free oil........... Once/day prior to Static sheen; Method Number of days sheen
discharge. at 58 FR 12506. observed.
Maximum Discharge Rate 1,000 barrels/hr...... Once/day............. Estimate............. Max. hourly rate in
bbl/hr.
Mineral Oil........... Mineral oil may be
used only as a
carrier fluid,
lubricity additive,
or pill.
Drilling Fluids Record................ Once/well............ Inventory............ Chemical
Inventory. constituents.
Volume................ Report................ Once/month........... Estimate............. Monthly total in bbl/
month.
Within 1000 Meters of No discharge..........
an Areas of
Biological Concern
(ABC).
Drill Cuttings.....................
(4) Note: Drill cuttings are
subject to the same limitations/
prohibitions as drilling fluids
except Maximum Discharge Rate.
Free Oil.............. No free oil........... Once/day prior to Static sheen; Method Number of days sheen
discharge. at 58 FR 12506. observed.
Volume................ Report................ Once/month........... Estimate............. Monthly total in bbl/
month.
Produced Water..................... Oil and Grease........ 42 mg/l daily maximum Once/month ^{c......... Grab/Gravimetric..... Daily max. and
and 29 mg/l monthly monthly avg.
average.
Toxicity.............. Acute toxicity (LC50); Once/month........... Grab/96-hour LC50 Minimum LC50 for both
critical dilution as using Mysidopsis species and full
specified by the bahia and sheepshead laboratory report.
requirements at Part minnows (Method in
I.B.3(a) and Appendix EPA/600/4-85/013)..
A of this permit..
Flow (bbl/month)...... ...................... Once/month........... Estimate............. Monthly rate.
Within 1000 meters of No discharge..........
an Area of Biological
Concern (ABC).
Deck Drainage...................... Free Oil.............. No free oil........... Once/day when Visual sheen......... Number of days sheen
discharging ^{d. observed.
Volume (bbl/month).... ...................... Once/month........... Estimate............. Monthly total.
Produced Sand...................... No Discharge..........

[[Page 873]]

Well Treatment, Completion, and Free Oil.............. No free oil........... Once/day when Static sheen......... Number of days sheen
Workover Fluids (includes packer Oil and Grease........ 42 mg/l daily maximum discharging. Grab/Gravimetric..... observed.
fluids) ^{e. and 29 mg/l monthly Once/month........... Daily max. and
average. monthly avg.
Priority Pollutants... No priority pollutants ..................... Monitor added
materials.
Volume (bbl/month).... ...................... Once/month........... Estimate............. Monthly total.
Sanitary Waste (Continuously manned Solids................ No floating solids.... Once/day, in daylight Observation.......... Number of days solids
by 10 or more persons) ^{f. Residual Chlorine..... At least (but as close Once/month........... Grab/Hach CN-66-DPD.. observed
Flow (MGD)............ to) 1 mg/l. Once/month........... Estimate.............
Concentration
Sanitary Waste (Continuously manned Solids................ No floating solids.... Once/day, in daylight Observation.......... Number of days solids
by 9 or fewer persons or observed.
intermittently by any) ^{f.
Domestic Waste..................... Solids................ No floating solids; no Once/day following Observation.......... Number of days solids
food waste within 12 morning or midday observed.
miles of land; meal at time of
comminuted food waste maximum expected
smaller than 25-mm discharge.
beyond 12 miles.
Miscellaneous Discharges-- Free Oil.............. No free oil........... Once/day when Visual sheen......... Number of days sheen
Desalination Unit, Blowout discharging. observed.
Preventer, Fluid, Uncontaminated
Ballast/Bilge Water, Mud,
Cuttings, and Cement at the
Seafloor, Uncontaminated Seawater,
Boiler Blowdown, Source Water and
Sand, Diatomaceous Earth Filter
Media.
--------------------------------------------------------------------------------------------------------------------------------------------------------
^{a Toxicity test to be conducted using suspended particulate phase (SPP) of a 9:1 seawater:mud dilution. The sample shall be taken beneath the shale
shaker, or if there are no returns across the shaker, the sample must be taken from a location that is characteristic of the overall mud system to be
discharged.
^{b Sample shall be taken after the final log run is completed and prior to bulk discharge.
^{c The daily maximum concentration may be based on the average of up to four grab sample results in the 24 hour period.
^{d When discharging and facility is manned. Monitoring shall be accomplished during times when observation of a visual sheen on the surface of the
receiving water is possible in the vicinity of the discharge.
^{e No discharge of priority pollutants except in trace amounts. Information on the specific chemical composition shall be recorded but not reported
unless requested by EPA.
^{f Any facility that properly operates and maintains a marine sanitation device (MSD) that complies with pollution control standards and regulations
under Section 312 of the Act shall be deemed to be in compliance with permit limitations for sanitary waste. The MSD shall be tested yearly for proper
operation and test results maintained at the facility.

New Sources

Table 3.--Effluent Limitations, Prohibitions, and Monitoring Requirements for the Eastern Gulf of Mexico NPDES General Permit
--------------------------------------------------------------------------------------------------------------------------------------------------------
Monitoring Requirement
Regulated & monitored Discharge limitation/ --------------------------------------------------------------------
Discharge discharge parameter prohibition Measurement Recorded/reported
frequency Sample type/method value
--------------------------------------------------------------------------------------------------------------------------------------------------------
Drilling Fluids.................... Oil-based Drilling No discharge..........
Fluids.

[[Page 874]]

Oil-contaminated No discharge..........
Drilling Fluids.
Drilling Fluids to No discharge..........
Which Diesel Oil has
been Added.
Mercury and Cadmium in No discharge of Once per new source Flame and flameless mg Hg and mg Cd/kg in
Barite. drilling fluids if of barite used. AAS. stock barite.
added barite contains
Hg in excess of 1.0
mg/kg or Cd in excess
of 3.0 mg/kg (dry wt).
Toxicity ^{a............ 30,000 ppm daily Once/month Once/end Grab/96-hr LC50 using Minimum LC50 of tests
minimum. of well ^{b. Mysidopsis bahia; performed and
30,000 ppm monthly Once/month........... Method at 58 FR monthly average LC50
average minimum. 12507.
Free Oil.............. No free oil........... Once/day prior to Static sheen; Method Number of days sheen
discharge. at 58 FR 12506. observed.
Maximum Discharge Rate 1,000 barrels/hr...... Once/day............. Estimate............. Max. hourly rate in
bbl/hr.
Mineral Oil........... Mineral oil may be
used only as a
carrier fluid,
lubricity additive,
or pill.
Drilling Fluids Record................ Once/well............ Inventory............ Chemical constituents
Inventory.
Volume................ Report................ Once/month........... Estimate............. Monthly total in bbl/
month
Within 1000 Meters of No discharge..........
an Areas of
Biological Concern
(ABC).
Drill Cuttings
(4) Note: Drill cuttings are
subject to the same limitations/
prohibitions as drilling fluids
except Maximum Discharge Rate.
Free Oil.............. No free oil........... Once/day prior to Static sheen; Method Number of days sheen
discharge. at 58 FR 12506. observed.
Volume................ Report................ Once/month........... Estimate............. Monthly total in bbl/
month.
Produced Water..................... Oil and Grease........ 42 mg/l daily maximum Once/month ^{c......... Grab/Gravimetric..... Daily max. and
and 29 mg/l monthly monthly avg.
average.
Toxicity.............. Acute toxicity (LC50); Once/month........... Grab/96-hour LC50 Minimum LC50 for both
critical dilution as using Mysidopsis species and full
specified by the bahia and sheepshead laboratory report.
requirements at Part minnows (Method in
I.B.3(a) and Appendix EPA/600/4-85/013).
A of this permit.
Flow (bbl/month)...... ...................... Once/month........... Estimate............. Monthly rate.
Within 1000 meters of No discharge..........
an Area of Biological
Concern (ABC).
Deck Drainage...................... Free Oil.............. No free oil........... Once/day when Visual sheen......... Number of days sheen
discharging ^{d. observed.
Volume (bbl/month).... ...................... Once/month........... Estimate............. Monthly total.
Produced Sand...................... No Discharge..........
Well Treatment, Completion, and Free Oil.............. No free oil........... Once/day when Static sheen......... Number of days sheen
Workover Fluids (includes packer Oil and Grease........ 42 mg/l daily maximum discharging. Grab/Gravimetric..... observed.
fluids) ^{e. and 29 mg/l monthly Once/month........... Daily max. and
average. monthly avg.
Priority Pollutants... No priority pollutants ..................... Monitor added
materials.
Volume (bbl/month).... ...................... Once/month........... Estimate............. Monthly total.
Sanitary Waste (Continuously manned Solids................ No floating solids.... Once/day, in daylight Observation.......... Number of days solids
by 10 or more persons) ^{f. Residual Chlorine..... At least (but as close Once/month........... Grab/Hach CN-66-DPD.. observed.
Flow (MGD)............ to) 1 mg/l. Once/month........... Estimate............. Concentration.
......................

[[Page 875]]

Sanitary Waste (Continuously manned Solids................ No floating solids.... Once/day, in daylight Observation.......... Number of days solids
by 9 or fewer persons or observed.
intermittently by any) ^{f.
Domestic Waste..................... Solids................ No floating solids; no Once/day following Observation.......... Number of days solids
food waste within 12 morning or midday observed.
miles of land; meal at time of
comminuted food waste maximum expected
smaller than 25-mm discharge.
beyond 12 miles.
Miscellaneous Discharges-- Free Oil.............. No free oil........... Once/day when Visual sheen......... Number of days sheen
Desalination Unit, Blowout discharging. observed.
Preventer, Fluid, Uncontaminated
Ballast/Bilge Water, Mud,
Cuttings, and Cement at the
Seafloor, Uncontaminated Seawater,
Boiler Blowdown, Source Water and
Sand, Diatomaceous Earth Filter
Media.
--------------------------------------------------------------------------------------------------------------------------------------------------------
^{a Toxicity test to be conducted using suspended particulate phase (SPP) of a 9:1 seawater:mud dilution. The sample shall be taken beneath the shale
shaker, or if there are no returns across the shaker, the sample must be taken from a location that is characteristic of the overall mud system to be
discharged.
^{b Sample shall be taken after the final log run is completed and prior to bulk discharge.
^{c The daily maximum concentration may be based on the average of up to four grab sample results in the 24 hour period.
^{d When discharging and facility is manned. Monitoring shall be accomplished during times when observation of a visual sheen on the surface of the
receiving water is possible in the vicinity of the discharge.
^{e No discharge of priority pollutants except in trace amounts. Information on the specific chemical composition shall be recorded but not reported
unless requested by EPA.
^{f Any facility that properly operates and maintains a marine sanitation device (MSD) that complies with pollution control standards and regulations
under Section 312 of the Act shall be deemed to be in compliance with permit limitations for sanitary waste. The MSD shall be tested yearly for proper
operation and test results maintained at the facility.

Appendix A

Effluent concentrations at the edge of a 100-m mixing zone will
be modeled by EPA for each produced water outfall listed in an
operator's notice of commencement of production operations. This
projected effluent concentration will be used to calculate the
permit limitation for produced water toxicity (0.01 x projected
effluent concentration). The discharge will be modeled using each
facility's measured water column conditions and discharge
configurations as input for the CORMIX expert system for
hydrodynamic mixing zone analysis.
The notice of commencement of production operations will be
accompanied by a completed CORMIX input parameter table presented as
Table A-1. The input parameters required are the following.

Anticipated average discharge rate (bbl/day)
Water depth (meters)
Discharge pipe location in the water column (meters from surface or
bottom)
Discharge pipe orientation with respect to the prevailing current
(degrees; 0 deg. is coflowing)
Discharge pipe opening diameter (meters)

These parameters are site-specific parameters that the operator
must determine through monitoring or measurement and certify as true
to the best of their knowledge. All other input parameters for the
CORMIX model are established as the following.

Discharge density: 1070.2 kg/m\3\
Discharge concentration: 100%
Legal mixing zone: 100 meters
Darcy-Wiesbach constant: 0.2
Current speed: 5 cm/sec
Discharge pipe orientation: Coflowing with current
Linear water column density profile;
Surface density: 1,023.0 kg/m\3\
Density gradient: 0.163 kg/m\3\/m

The Region will conduct the model using the operator's input
parameters and report the toxicity limitation to the operator. If
the parameters supplied by the operator change during the life of
the permit (e.g., average discharge rate increases or decreases, a
change in discharge pipe orientation, etc.), the operator should
submit the new input parameters to the Region so that a new toxicity
limitation can be calculated.
Compliance with the toxicity limitation will be demonstrated by
conducting 96-hour toxicity tests using mysids (Mysidopsis bahia)
and sheepshead minnows (Cyprinodon variegatus) each month. The LC50
for each species will be reported on the DMR and a copy of the
complete laboratory report shall be submitted.

Table A-1. CORMIX1 Input Parameters for Toxicity Limitation Calculation
Permit number: GMG28 ____________
Company: ____________

[[Page 876]]

Contact name/Phone __________
number:
........................
________________________
_____
Lease block/number: ______________
Facility name: ____________

Parameter Units Units
Discharge Rate ____________ Average bbl/
day
Water depth ____________ meters
Discharge pipe location in the water column

_____________________
_________
(1) meters from ______
water surface, or ______
seafloor

Discharge pipe orientation with respect to the seafloor:

_____________________ degrees (90 deg. is
_________ directed toward
the surface)
(-90 deg. is
directed toward
the seafloor)
Discharge pipe opening
diameter:

_____________________ meters
_________

BILLING CODE: 6560-50-P

[[Page 877]]

[GRAPHIC] [TIFF OMITTED] TN07JA98.000

[FR Doc. 98-245 Filed 1-6-98; 8:45 am]
BILLING CODE 6560-50-C}}}}}}}}}}}}}}}}}}}}}}}}}}