[Federal Register Volume 79, Number 187 (Friday, September 26, 2014)]
[Proposed Rules]
[Pages 57850-57852]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-22358]


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SUSQUEHANNA RIVER BASIN COMMISSION

18 CFR Part 806


Review and Approval of Projects

AGENCY: Susquehanna River Basin Commission.

ACTION: Notice of proposed rulemaking and public hearing.

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SUMMARY: This document contains proposed rules that would amend the 
regulations of the Susquehanna River

[[Page 57851]]

Basin Commission (Commission) to clarify the water uses involved in 
hydrocarbon development that are subject to the consumptive use 
regulations, as implemented by the Approval By Rule program.

DATES: Comments on these proposed rules may be submitted to the 
Commission on or before November 17, 2014. The Commission has scheduled 
a public hearing on the proposed rulemaking, to be held November 6, 
2014, in Harrisburg, Pennsylvania. The location of the public hearing 
is listed in the ADDRESSES section of this document.

ADDRESSES: Comments may be mailed to: Jason E. Oyler, Esq., Regulatory 
Counsel, Susquehanna River Basin Commission, 4423 N. Front Street, 
Harrisburg, PA 17110-1788, or by email to [email protected].
    The public hearing will be held on November 6, 2014, at 1:30 p.m., 
at the Pennsylvania State Capitol, Room 8E-B, East Wing, Commonwealth 
Avenue, Harrisburg, Pa. 17101. Those wishing to testify are asked to 
notify the Commission in advance, if possible, at the regular or 
electronic addresses given below.

FOR FURTHER INFORMATION CONTACT: Jason E. Oyler, Esq., Regulatory 
Counsel, telephone: 717-238-0423, ext. 1312; fax: 717-238-2436; email: 
[email protected]. Also, for further information on the proposed 
rulemaking, visit the Commission's Web site at www.srbc.net.

SUPPLEMENTARY INFORMATION:

Background and Purpose of Amendments

    The basic purpose of the regulatory amendments set forth in this 
proposed rulemaking is to clarify the water uses involved in 
hydrocarbon development that are subject to the consumptive use 
regulations, as implemented by the Approval By Rule (ABR) program.
    Currently, certain hydrocarbon development projects and 
unconventional natural gas development projects are subject to the 
Commission's consumptive water use regulations. The Commission is 
proposing changes to the definitions in 18 CFR 806.3 to clarify the 
water uses subject to regulation along with corresponding changes to 18 
CFR 806.22 pertaining to the ABR program. The Commission is also 
considering whether to increase the duration of approvals issued under 
the ABR program in 18 CFR 806.22(f)(10) and is seeking public comment 
regarding a longer term.
    The Commission is proposing a number of changes to the definitions 
in 18 CFR 806.3. The Commission proposes to clarify and expand the 
definition of ``hydrocarbon development'' to ``hydrocarbon development 
project.'' The new definition would retain the current language 
referring to ``the drilling, casing, cementing, stimulation and 
completion'' of oil and gas wells, and would add new language to cover 
all water-related activities and facilities on the drilling pad site as 
well as specific uses of water off the drilling pad site. On the 
drilling pad site, the definition would cover activities and facilities 
associated with the production, maintenance, operation, closure, 
plugging and restoration of wells or drilling pad sites that would 
require consumptive water usage. The revised definition contains an 
illustrative, but not exhaustive, list of water uses on the drilling 
pad site. Off the drilling pad site, the regulated uses would be water 
used for hydro-seeding, dust suppression, and hydro-excavation of 
access roads and underground lines, as well as tank cleanings, related 
to a drilling pad site or centralized impoundments. The Commission's 
jurisdiction under Sec.  806.22(f) would cease after all post-plugging 
restoration is completed according to applicable member jurisdiction 
regulations.
    The Commission also proposes to add a new definition of ``drilling 
pad site.'' This term is currently used in SRBC regulations, but is not 
defined. The Commission's intent with the proposed definition is to 
cover the physical four corners of the well site where drilling 
actually occurs or is intended to occur and not to activities and 
facilities off the pad site.
    The Commission has also proposed corresponding changes to the 
definition of ``project,'' ``unconventional natural gas development,'' 
and ``construction.'' The last sentence in the definition of 
``project'' is deleted in this proposal, as it is not necessary with 
the changes proposed to ``hydrocarbon development project.'' The 
definition of ``unconventional natural gas development'' is proposed to 
be amended to ``unconventional natural gas development project'' to 
match the ``hydrocarbon development project'' definition. As is 
currently the case, an ``unconventional natural gas development 
project'' remains a subset of the more broadly defined term 
``hydrocarbon development project.''
    The Commission also proposes changes to 18 CFR 806.22--Standards 
for consumptive uses of water. The Commission proposes changes to 
clarify 18 CFR 806.22(f)(1) and (f)(4). The term ``dust control'' in 18 
CFR 806.22(f)(4) has been replaced with the broader term ``other 
project related activity.'' In addition, changes are proposed to 18 CFR 
806.22(f)(11) and (f)(12) to reflect changes in the definitions as 
proposed. The Commission is proposing revisions to 18 CFR 806.22(f)(10) 
to note that the approvals under the ABR program shall be effective 
upon issuance by the Executive Director. In this subsection, the 
Commission is also considering whether to change the duration of 
approvals issued under the ABR program from 5 years to a longer term of 
up to 15 years and is specifically seeking public comment regarding 
such change. The Commission is also proposing changes to 18 CFR 
806.22(e)(7) to mirror subsection (f)(10). Nothing in the proposed 
rulemaking changes the existing overall regulatory structure between 
hydrocarbon development projects generally versus unconventional 
natural gas projects specifically.
    In addition, the Commission finds it necessary to revise the 
provisions of 18 CFR 806.15(e) to reflect proposed revisions in Sec.  
806.3.

List of Subjects in 18 CFR Part 806

    Administrative practice and procedure, Water resources.

    Accordingly, for the reasons set forth in the preamble, the 
Susquehanna River Basin Commission proposes to amend 18 CFR part 806 as 
follows:

PART 806--REVIEW AND APPROVAL OF PROJECTS

Subpart A--General Provisions

0
1. The authority citation for Part 806 continues to read as follows:

    Authority:  Secs. 3.4, 3.5(5), 3.8, 3.10 and 15.2, Pub. L. 91-
575, 84 Stat. 1509 et seq.

0
2. In Sec.  806.3:
0
a. Revise the definition for ``Construction;''
0
b. Adding, in alphabetical order, a definition of ``Drilling Pad 
Site;''
0
c. Removing the definition for ``Hydrocarbon development'' and adding 
in its place, in alphabetical order, the definition of ``Hydrocarbon 
development project;''
0
d. Revising the definition of ``Project;'' and
0
e. Removing the definition for ``Unconventional natural gas 
development'' and adding in its place, in alphabetical order, the 
definition of ``Unconventional natural gas development project.''
    The revisions and additions read as follows:


Sec.  806.3  Definitions.

* * * * *

[[Page 57852]]

    Construction. To physically initiate assemblage, installation, 
erection or fabrication of any facility, involving or intended for the 
withdrawal, conveyance, storage or consumptive use of the waters of the 
basin. For purposes of unconventional natural gas development projects 
subject to review and approval pursuant to Sec.  806.4(a)(8) of this 
part, initiation of construction shall be deemed to commence upon the 
drilling (spudding) of a gas well, or the initiation of construction of 
any water impoundment or other water-related facility to serve the 
project, whichever comes first.
* * * * *
    Drilling Pad Site. The area occupied by the equipment or facilities 
necessary for or incidental to drilling, production or plugging of one 
or more hydrocarbon development wells and upon which such drilling has 
or is intended to occur.
* * * * *
    Hydrocarbon development project. A project undertaken for the 
purpose of extraction of liquid or gaseous hydrocarbons from geologic 
formations, including but not limited to the drilling, casing, 
cementing, stimulation and completion of unconventional natural gas 
development wells, and all other activities and facilities associated 
with the foregoing or with the production, maintenance, operation, 
closure, plugging and restoration of such wells or drilling pad sites 
that require water for purposes including but not limited to, re-
stimulation and/or re-completion of wells, fresh water injection of 
production tubing, use of coiled tubing units, pumping, cement 
hydration, dust suppression, and hydro-seeding, until all post-plugging 
restoration is completed in accordance with all applicable member 
jurisdiction requirements. The project includes water used for hydro-
seeding, dust suppression and hydro-excavation of access roads and 
underground lines, as well as cleaning of tanks, related to a drilling 
pad site and centralized impoundments.
* * * * *
    Project. Any work, service, activity or facility undertaken, which 
is separately planned, financed or identified by the Commission, or any 
separate facility undertaken or to be undertaken by the Commission or 
otherwise within a specified area, for the conservation, utilization, 
control, development, or management of water resources, which can be 
established and utilized independently, or as an additional to an 
existing facility, and can be considered as a separate entity for 
purposes of evaluation.
* * * * *
    Unconventional natural gas development project. A hydrocarbon 
development project undertaken for the purpose of extraction of gaseous 
hydrocarbons from low permeability geologic formations utilizing 
enhanced drilling, stimulation or recovery techniques.
* * * * *
0
3. In Sec.  806.15, revise paragraph (e) to read as follows:


Sec.  806.15  Notice of application.

* * * * *
    (e) For applications submitted under Sec.  806.22(f)(13) of this 
part for a wastewater discharge source, the newspaper notice 
requirement contained in paragraph (a) of this section shall be 
satisfied by publication in a newspaper of general circulation in each 
area within which the water obtained from such source will initially be 
used for hydrocarbon development.
* * * * *
0
4. In Sec.  806.22, revise paragraphs (e)(7), (f)(1), (f)(4), (f)(10), 
(f)(11) introductory text, and (f)(12) to read as follows:


Sec.  806.22  Standards for consumptive uses of water.

* * * * *
    (e) Approval by rule for consumptive uses. (1) Except with respect 
to projects involving hydrocarbon development subject to the provisions 
of paragraph (f) of this section * * *
* * * * *
    (7) Approval by rule shall be effective upon issuance by the 
Executive Director to the project sponsor, shall expire 15 years from 
the date of such issuance, and supersede any previous consumptive use 
approvals to the extent applicable to the project.
* * * * *
    (f) Approval by rule for consumptive use related to unconventional 
natural gas and other hydrocarbon development projects.
    (1) Any unconventional natural gas development project subject to 
review and approval under Sec.  806.4(a)(8) of this part, or any other 
hydrocarbon development project subject to review and approval under 
Sec. Sec.  806.4, 806.5, or 806.6 of this part, shall be subject to 
review and approval by the Executive Director under this paragraph (f) 
regardless of the source or sources of water being used consumptively.
* * * * *
    (4) The project sponsor shall comply with metering, daily use 
monitoring and quarterly reporting as specified in Sec.  806.30 of this 
part, or as otherwise required by the approval by rule. Daily use 
monitoring shall include amounts delivered or withdrawn per source, per 
day, and amounts used per gas well or drilling pad site, per day, for 
well drilling, hydrofracture stimulation, hydrostatic testing, and 
other project-related activity. The foregoing shall apply to all water, 
including stimulation additives, flowback, drilling fluids, formation 
fluids and production fluids, utilized by the project. The project 
sponsor shall also submit a post-hydrofracture report in a form and 
manner as prescribed by the Commission.
* * * * *
    (10) Approval by rule shall be effective upon issuance by the 
Executive Director to the project sponsor, shall expire five years \*\ 
from the date of such issuance, and supersede any previous consumptive 
use approvals to the extent applicable to the project.
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    * Per the preamble to this proposed rulemaking, the Commission 
is considering a change of the duration of approval in this 
subsection from 5 years to a longer term of up to 15 years and is 
seeking public comment regarding the proposed change.
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    (11) In addition to water sources approved for use by the project 
sponsor pursuant to Sec.  806.4 or this section, a project sponsor 
issued an approval by rule pursuant to paragraph (f)(9) of this section 
may utilize any of the following water sources at the drilling pad 
site, subject to such monitoring and reporting requirements as the 
Commission may prescribe:
* * * * *
    (12) A project sponsor issued an approval by rule pursuant to 
paragraph (f)(9) of this section may utilize a source of water approved 
by the Commission pursuant to Sec.  806.4(a) of this part, or by the 
Executive Director pursuant to paragraph (f)(14) of this section, and 
issued to persons other than the project sponsor, provided any such 
source is approved for use in hydrocarbon development, the project 
sponsor has an agreement for its use, and at least 10 days prior to 
use, the project sponsor registers such source with the Commission on a 
form and in the manner prescribed by the Commission.
* * * * *

    Dated: September 12, 2014.
Stephanie L. Richardson,
Secretary to the Commission.
[FR Doc. 2014-22358 Filed 9-25-14; 8:45 am]
BILLING CODE 7040-01-P