[Federal Register Volume 67, Number 26 (Thursday, February 7, 2002)]
[Notices]
[Pages 5847-5848]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-3009]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Preparation of a Programmatic Environmental Assessment for 
Applications To Inject Outer Continental Shelf (OCS) Generated, 
Resource Conservation and Recovery Act (RCRA) Exempt Exploration and 
Production (E&P) Waste Into Salt Caverns and Caprock on Sulphur and 
Salt Lease OCS-G 9372, Main Pass Block 299

AGENCY: Minerals Management Service, Interior.

ACTION: Preparation of an Environmental Assessment and Notice of Public 
Scoping Meeting.

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SUMMARY: Minerals Management Service (MMS) is preparing a programmatic 
environmental assessment (EA) for applications from OCS oil and gas 
operators to inject OCS-generated, and RCRA-exempt, exploration and 
production (E&P) waste into salt caverns and caprock at Main Pass Block 
299. Main Pass Block 299 is located 16 miles offshore, east of 
Plaquemines Parish, Louisiana. Water depth at the proposed waste 
injection site is 210 feet.

FOR FURTHER INFORMATION CONTACT: Minerals Management Service, Gulf of 
Mexico OCS Region, 1201 Elmwood Park Boulevard, New Orleans, Louisiana 
70123-2394, Mr. Clay Pilie', telephone (504) 736-2443.

SUPPLEMENTAL INFORMATION: Freeport-McMoRan Sulphur LLC (Freeport) has 
presented the MMS Gulf of Mexico (GOM) Region with a detailed proposal 
to inject OCS-generated, RCRA-exempt E&P waste into the salt caverns 
and caprock (the rock formation overlying the salt dome, consisting of 
anhydrite, limestone, and sulphur ore) that underlies the existing Main 
Pass Block 299 sulphur and salt Lease OCS-G 9372.

[[Page 5848]]

RCRA-exempt E&P wastes are wastes from the exploration, development, 
and production of crude oil, natural gas, and geothermal energy that 
are exempted from regulation as hazardous wastes under RCRA Subtitle C 
(53 FR 25477) by a July 6, 1988, U.S. Environmental Protection Agency 
(EPA) regulatory determination. On March 22, 1993, EPA issued 
clarification of the 1988 determination (58 FR 15284). Only RCRA-exempt 
E&P wastes containing naturally occurring radioactive material in 
concentrations less than 30 picocuries per gram and exposure rates of 
less than 50 microroentgens per hour inclusive of background are 
proposed for injection at Main Pass Block 299.
    Use of Main Pass Block 299 for E&P waste injection would combine 
the production of salt (in the form of brine) and the use of the 
caverns created by salt production (and in the course of sulphur 
production, which was conducted on the lease) as well as the caprock 
overlying the salt dome for disposal of waste.
    Trinity Field Services, L.P. and Freeport have formed an alliance 
for the collection, transportation, handling, and disposal of OCS-
generated, RCRA-exempt E&P waste. E&P waste will be received in bulk or 
in cuttings boxes/portable tanks by offshore supply vessel or self-
propelled barge at Main Pass Block 299 from single and multiple 
offshore operating locations where the waste is generated. The waste 
will be either directly injected or injected after being temporarily 
stored and processed to extract recyclable materials or to enhance 
injection capability. In some cases, waste will be processed at 
existing onshore facilities (Fourchon, Venice, and Berwick/Morgan City, 
Louisiana) to remove hydrocarbons and/or other recyclable materials 
(primarily synthetic drilling fluids) and then taken to Main Pass Block 
299 for injection.
    The Main Pass Block 299 platform complex associated with the 
proposed waste disposal operations was constructed to support the 
development and production of sulphur and oil and gas reserves present 
in the formations above the Main Pass Block 299 salt dome structure. 
The facility is over a mile in length and is one of the largest 
structures in the GOM. Both drilling platforms PP1 and PP2 could be 
used to support the waste disposal activity. New equipment to be 
installed to accommodate waste injection will consist of a waste pump 
unit, air compressor, storage tanks, tank cleaning pumps, a tank 
cleaning vacuum system, waste pumps and dryers, and a waste air 
compressor, as well as additional piping on the platform. Sulphur 
production was discontinued in August 2000 due to unfavorable economics 
attributable to the combined effect of low sulphur prices and high 
natural gas prices (large volumes of natural gas are required to fire 
the boilers that heat the water injected into the formation in order to 
produce the sulphur and power the generators to produce electricity). 
Oil and gas resources are still being produced from Main Pass Block 
299.
    If Main Pass Block 299 is used, waste injection activities could 
span an anticipated 26 years starting in 2002. The anticipated volume 
of OCS-generated, RCRA-exempt E&P wastes that could be injected at Main 
Pass Block 299 is estimated to be 119 million barrels. The combined 
estimated disposal capacity of the caverns and barren/leached caprock 
is approximately 2.6 billion barrels. Freeport estimates the typical 
waste streams to be injected would consist of approximately 16 percent 
solids, 77 percent liquids, and 7 percent hydrocarbons. The EA will 
analyze information provided by Freeport with respect to disposal into 
the caprock and salt caverns underlying Main Pass Block 299. 
Alternatives will include the proposed action with additional 
mitigations and no action (i.e., disapproval of the applications). The 
analyses in the EA will examine the potential environmental effects of 
the activities described by Freeport and alternatives including the 
potential environmental benefits over current offshore waste management 
practices. Current offshore waste management practices for E&P wastes 
that do not meet the standards for overboard discharge in accordance 
with a National Pollutant Discharge Elimination System (NPDES) permit 
include onshore disposal or disposal offshore in waste injection wells 
(in accordance with MMS Notice to Lessees 99-G22). E&P wastes that do 
meet the standards for overboard discharge in accordance with a NPDES 
permit are typically discharged into OCS waters.
    Prior to considering applications for use of Main Pass Block 299 
for waste injection activities, MMS must be assured that all activities 
will be conducted in an environmentally safe manner, that all injected 
waste will remain in the caverns and caprock, and that operational 
activities, monitoring activities, closure procedures, hazards 
analysis, and safety and environmental plans are in place and found to 
be acceptable.
    In preparation for evaluating the applications, MMS has consulted 
with the following Federal, State, and private agencies: EPA , National 
Marine Fisheries Service, U.S. Fish and Wildlife Service, Department of 
Energy, State of Louisiana, State of Texas, Solution Mining Research 
Institute, and Sandia National Lab--Underground Storage Technology 
Department. MMS has also reviewed numerous documents and technical 
reports (e.g., approval of nonhazardous oil-field waste disposal 
applications in Texas conducted by the Texas Railroad Commission; Texas 
Proposed Statewide Rule 82--Cavern Disposal Regulations; Louisiana 
Draft Regulations, Statewide Order No. 29-M-2, ``E&P Waste Disposal in 
Solution-Mined Salt Caverns''; ``Preliminary Technical and Legal 
Evaluation of Disposing of Nonhazardous Oil Field Waste into Salt 
Caverns'' (Argonne National Laboratory); ``Geologic Site 
Characterization Requirements for Storage and Mining in Salt'' (Sandia 
Lab); and ``An Investigation of the Integrity of Cemented Casing Seals 
with Application to Salt Cavern Sealing and Abandonment'' (Solution 
Mining Research Institute)).
    A public scoping meeting will be held on February 21, 2002, from 
1:00 to 3:00 p.m. at the Minerals Management Service, Gulf of Mexico 
OCS Region, 1201 Elmwood Park Boulevard, Room 111, New Orleans, 
Louisiana. At the meeting, MMS and Freeport will provide information on 
the applications and the public will be given an opportunity to ask 
questions and provide input on issues that should be addressed in the 
EA. For more information regarding the Main Pass Block 299 waste 
disposal applications, please visit those documents at: http://www.temporarygomr.com/homepg/offshore/mp299/.
    Following completion of the programmatic EA, MMS will either issue 
a finding of no significant impact or prepare an environmental impact 
statement.
    Public Comments: MMS requests interested parties to submit comments 
regarding issues that should be addressed in the EA to the Minerals 
Management Service, Gulf of Mexico OCS Region, Office of Leasing and 
Environment, Attention: Regional Supervisor (MS 5410),1201 Elmwood Park 
Boulevard, New Orleans, Louisiana 70123-2394. Comments must be 
submitted no later than 30 days from the publication of this Notice.

    Dated: February 4, 2002.
Thomas A. Readinger,
Associate Director for Offshore Minerals Management.
[FR Doc. 02-3009 Filed 2-6-02; 8:45 am]
BILLING CODE 4310-MR-P