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HomeMy WebLinkAbout20142684.tiff • COLORADO %IS/ Department of Public •"•%' Health&Environment Dedicated to protecting and improving the health and environment of the people of Colorado August 18, 2014 RECEIVED Mr. Bruce Clabaugh, M.S., R.S. Manager, Environmental Protection AUG 2 2 2014 Waste Management 5500 S. Quebec Street, Suite 250 WELD COUNTY Greenwood Village, CO 80111 COMMISSIONERS RE: Applicability of the Solid Waste Regulations to the Proposed Commercial Exploration and Production Waste Treatment and Recycling Operations at Buffalo Ridge Landfill SW-WLD-BRL 1.1 Mr. Clabaugh, The Hazardous Materials and Waste Management Division ("the Division") of the Colorado Department of Public Health and Environment ("the Department") appreciates the opportunity to provide an overview of the applicability of the Regulations Pertaining to Solid Waste Sites and Facilities, 6 CCR, 1007.2, Part 1 ("the Solid Waste Regulations") to the proposed commercial oil and gas exploration and production waste ("E&P waste") treatment and recycling facility next to the Buffalo Ridge Landfill. The Division met with the Colorado Oil and Gas Conservation Commission ("COGCC"), representatives of Waste Management, and the Colorado Attorney's General Office ("the AGO") on March 3, 2014 to discuss the proposed operations. The Division's subsequent coordination with the COGCC and the AGO led to the regulatory interpretations provided below. Waste Management is proposing to construct and operate a commercial E&P waste treatment and recycling facility adjoining the Buffalo Ridge Landfill located at 11655 WCR 59 in Keensburg, CO. It is the Division's understanding that the proposed facility will be located outside Buffalo Ridge Landfill's Certificate of Designation ("CD") boundary. Waste Management presented six scenarios, using a block flow diagram, for treatment and recycling of E&P water and semi-solids. Each scenario is provided below: 1. Solidification of E&P slurries and either beneficial use or disposal of the solidified matrix at the Buffalo Ridge landfill; 2. Recycling of E&P generated oil/water slurries with the solids removed for beneficial use or disposal, and the water either recycled for beneficial uses or deep well injection. The oil removed in this scenario will be sold as crude oil; 3. Recycling E&P generated high oil content slurries with the oil separated and sold as crude oil, the solids beneficially used or disposed of in the Buffalo Ridge landfill and the water recycled for beneficial uses or disposed of via deep well injection; 4. Recycling E&P produced water to remove solids and processed for beneficial use or for disposal at the Buffalo Ridge Landfill, the water treated for disposal via deep well injection or recycled for oil and gas production uses, and the oil and water slurry sent through the process identified in #2 above; Comrrwfocal,ofa CC ?LOAD\-r6H11 Il�-r� 2014-2684 S-27—ZOH 31919/20/4 TL- OS8 at 5. Treating E&P generated drilling fluid to separate oil and water to be sent to the oil/water slurry process in #2 above, drilling fluids recycled for reuse by oil and gas operators, and solids removed for beneficial use or disposal in the landfill; and 6. Treating E&P generated oily solids for beneficial use or land application. The Hazardous Materials and Waste Management Division's regulatory authority or the Colorado Oil and Gas Conservation Commission Authority? The Division provides regulatory oversight for the commercial disposal, treatment and recycling of E&P waste. However, the Division currently holds/a Meihoranda of Understanding with the COGCC in which the Divisioh`defers to the OGCC for the regulation of disposal of E&P wastes at Class II commercial injection well disposal sites, including OGCC regulation of E&P wastes placed in surface structures appurtenant to such wells, prior to disposal of Class II wastes down the well (collectively, "downhole disposal"). After consulting with the COGCC and AGO, the Division finds that commercial treatment, disposal or recycling activity occurring at Waste Management's proposed commercial facility will be subject to the Solid Waste Regulations, except when the purpose of the final storage is solely for downhole disposal in a Class II injection well. COGCC wilt retain regulatory authority for the Buffalo Ridge E&P waste disposal facility if downhole injection, and the treatment for downhole injection are the only activities occurring onsite. The Division will provide regulatory oversight, using the Solid Waste Act and Regulations, for all other commercial disposal scenarios presented. Applicable Solid Waste Regulations to Waste Management's Proposed Operations E&P Waste Impoundments Sections 1, 2, 3, 8 and 17 of the Solid Waste Regulations provide requirements for the disposal, treatment and recycling of E&P waste. If Waste Management proposes to use waste impoundments for storage as part of the recycling activities, the impoundments would be subject to Section 8 of the Solid Waste Regulations. Waste Management does not propose to utilize waste impoundments for the disposal of E&P liquids, so Section 17, Exploration and Production Waste Impoundments of the Solid Waste Regulations is not applicable to the Buffalo Ridge facility. Recycling and Benefidal Use t Section 8.5, Industrial Recycling Operations, provides operational requirements for E&P recycling facilities, and Section 8.6 provides beneficial use requirements for potential beneficial uses of solid waste. Section 8.5.5(8) requires E&P waste recycling facilities to submit a design and operations plan ("D&O Plan") for review and approval prior to accepting E&P waste for recycling because E&P wastes are considered liquid or leachable. Section 8.6 does not specifically address the beneficial use requirements for E&P waste except that Section 8.6.2 provides "performance and storage standards" that any beneficial use should meet. The Division considers beneficial uses of E&P waste on a case-by-case basis and Waste Management should submit a beneficial use plan to the Division for review and approval prior to beneficially using commercially treated E&P waste. Colorado Revised Statutes 5 30-20-102(5) exempts solid waste recycling facilities from the requirement to obtain a CD when they are operated for the purposes of recycling provided that the facility does not contaminate groundwater as a result of recycling, create off-site odors, and the facility meets the turnover rates specified by the Solid Waste Regulations. Therefore, the Division requests that any facility recycling liquid or leachable wastes submit a D&0 Plan that meets the minimum operational standards of Section 8 and the applicable engineering design and operation requirements of Sections 2 and 3 of the Solid Waste Regulations. 4300 Cherry Creek Drive S., Denver, CO 80246-1530 P 303-692-2000 www.colorado.gov/cdphe * c o a H r rl7 John W. Hickenlooper,Governor I Larry Wolk,MD,MSPH, Executive Director and Chief Medical Officer CO Treatment for Disposal Sections 2 and 3 of the Solid Waste Regulations apply to,those solid waste sites that commercially accept E&P waste for treatment and/or disposal. The applicability of specific requirements of Sections 2 and 3 depends on the type of treatment or disposal conducted at the facility. According to the block flow diagram provided to the Division, final disposal of the waste accepted at the Buffalo Ridge E&P waste facility will occur through recycling or in the existing permitted Buffalo Ridge solid waste landfill if material cannot be recycled. Therefore, there are requirements in Sections 2 and 3 that may not be applicable. However, the facility should be designed to be as protective of public health and environment as those requirements in Sections 2 and 3. The Division cannot determine if the proposed facility will be operated primarily as a disposal operation or a recycling operation because the block flow diagram does not present total quantities to be recycled and disposed of using each scenario. Also, the Division only provides a "recycling determination" after reviewing a D&O plan for facilities managing liquid or leachable materials. Waste Management should provide a D&O Plan and a beneficial use plan to the Division for review so the Division can determine if the facility will be operated for the purposes of recycling. Alternatively, Waste Management may obtain a CD from Weld County and provide both E&P waste disposal and recycling services under the CD. The Division recommends that Waste Management contact the State Engineer's Office of the Colorado Department of Natural Resources to verify if proposed beneficial uses comply with state water laws. The State Engineer's Office can be reached at 303. 866-3581. Please contact David Snapp at 303-692-3425 or Charles Johnson at 303-692-3348 if you have questions regarding this letter. Sincerely, o Da napp Charles G. John n, ager Environmental Protection Specialist Solid Waste and Mat 'als Management Program Solid Waste and Materials Management Program Hazardous Materials and Waste Management Hazardous Materials and Waste Management Division Division CC: Heather Barbare, Weld County Dept. of Public Health and Environment Greg Deranleau, Colorado Oil and Gas Conservation Commission Matt Lepore, Colorado Oil and Gas Conservation Commission David Kreutzer, Colorado Attorney General's Office Mari Deminski, Colorado Attorney General's Office Jake Matter, Colorado Attorney General's Office -*Weld-county Commissioners Adams County Commissioners Attachement: CDPHE and COGCC MOU Regarding the Disposal of Eligible Wastes at Commercial Class II Injection Wells * co' e 4300 Cherry Creek Drive S., Denver, CO 80246-1530 P 303-692-2000 www.colorado.gov/cdphe H John W. Hickenlooper, Governor I Larry Wolk,MD,MSPH, Executive Director and Chief Medical Officer CO a+ V %1I/ .. I OCT 12 2000 S IATEAI,, MEMORANDUM OF UNDERSTANDING Between the Hazardous Materials and Waste Management Division and the Colorado Oil and Gas Conservation Commission Regarding the Disposal of Eligible Wastes at Commercial Class II Injection Wells WHEREAS, the Oil and Gas Conservation Commission ("OGCC") has regulatory authority over the disposal of exploration and production wastes ("E&P wastes") from oil and gas operations, pursuant to §§ 34-60-105 and 106, C.R.S.; and WHEREAS, pursuant to § 34-60-106(9), C.R.S., the OGCC has authority to regulate Class II injection wells for the purpose of protecting underground drinking water supplies; and WHEREAS, the Environmental Protection Agency and the OGCC have entered into a Memorandum of Agreement that grants the OGCC primacy over Class II injection wells pursuant to 42 U.S.C. §300h-1(b); and WHEREAS, pursuant to the Solid Waste Disposal Sites and Facilities Act, §30-20- 100.5 et seq., the Hazardous Materials and Waste Management Division ("the Division") in the Department of Public Health and Environment has regulatory authority over disposal of solid waste; and WHEREAS, pursuant to § 30-20-101(6)(b)(VI), C.R.S. the term "solid waste" includes E&P wastes when such wastes are deposited at a commercial solid waste facility; and WHEREAS, the term "Class Ii wastes" includes those E&P wastes that have been brought to the surface in connection with natural gas storage operations or conventional oil and natural gas production, which may be commingled with waste waters from gas plants which are an integral part of production operations provided those waters are not classified as hazardous waste at the time of injection. Class II wastes shall be the only E&P wastes eligible for disposal into a Class II well; and WHEREAS, there exist in this state commercial solid waste disposal facilities that include the use of Class II injection wells for the disposal of Class II wastes, with incidental processing or disposal of E&P wastes; CONSEQUENTLY, the OGCC and the Division may have overlapping regulatory authority regarding the disposal of E&P wastes at commercial solid waste facilities with Class II injection wells. NOW,THEREFORE, the OGCC and the Division agree as follows: 1. The Division will defer to OGCC regulation of disposal of E&P wastes at Class II commercial injection well disposal sites, including OGCC regulation of E&P wastes placed in surface structures appurtenant to such wells, prior to disposal of Class II wastes down the well (collectively, "downhole disposal"). k 2. The OGCC shall determine which E&P wastes may be eligible for disposal into a Class II injection well as a Class 1l waste. 3. The Division will exercise its authority under the Solid Waste Disposal Sites and . Facilities Act ("Solid Waste Act") regarding disposal of E&P wastes at commercial disposal sites, other than downhole disposal. OGCC will defer to such regulation. 4. Nothing herein affects the authority of any local governing body having jurisdiction to require a Certificate of Designation ("CD") under the Solid Waste Act. 5. If a local governing body having jurisdiction requires a CD for surface facilities related to downhole disposal, the Division will be the point of contact for communications with the city or county. The Division will promptly forward a copy of the CD application to the OGCC for review. The Division and the OGCC agree to meet the time frames for review set out in § 30-20-103(2) and (3) of the Solid Waste • Act, and to determine the state regulatory agency that will provide oversight for the CD application. The state regulatory agency providing oversight for the CD application shall provide the opportunity for public comment required by§ 30-24- 1.03(1). When the OGCC exercises oversight over the CD application, the Division will defer to the OGCC's evaluation of the environmental impacts of such disposal 6. The Division does not have authority over disposal of E&P wastes at non- commercial facilities. 7. APPROVALS Department of Natural Resources Department of Public Health and Environment Richard Griebling, Direct Howard Roitman, Di r Oil and Gas Conservati ommission Hazardous Materials and Waste Management Division Date: /a -O , —G,"O Date: i --S - Hello