Oil Field Fluid Recycling in Texas: Rule 8 Amendments

1. Oil Field Fluid Recycling in Texas: Rule 8 Amendments Sean AvittEnvironmental Permits & Support UnitMain Line: 512.463.3840

2. Oil and Gas Operators Need Water

3. Oil and Gas Fluid Recycling • Industry is exploring recycling and conservation options • New application of existing technology • Addressing logistical and cost challenges

4. Recycling Saves Water

5. Water Use Statistics • Oil & Gas are less than 1% of water use statewide • 83,000+ bbls of water for one horizontal completion • 50,000+ bbls / day can be recycled by these types of systems

6. FlowbackRecyclable Product

7. RRC Responsibility • Water Protection (Statewide Rule 8) • No person subject to RRC may cause or allow pollution of surface or subsurface water • No person may dispose of (or recycle) oil and gas waste except as authorized or permitted by RRC

8. RRC Encourages Recycling • Water Protection rules (Rule 8) and Commercial Recycling rules (Ch. 4, Subch. B) were amended to: • Reduce water use • Encourage recycling in the oil field • Authorize fluid recycling on lease • Streamline recycling permits

9. “Authorized” means allowed without permit– like TCEQ PBR Authorized fluid recycling

10. New Rule 8 Authorized Fluid Recycling • Non-Commercial Fluid Recycling (NCFR): • Recycling of fluid produced from an oil or gas well on a RRC lease or from a disposal well is authorized by rule • Recycling operations may be contracted out • May accept fluids from other oil and gas leases or operators

11. Rule 8 Authorized Reuse • Reuse as makeup water, or other use in the wellbore of an oil, gas or geothermal well • Reuse in any other manner pursuant to a permit issued by another state or federal agency • Any reuse if the water is distilled • No discharge to waters of the state without permit

12. Rule 8 Authorized Recycling Pits • Requirements for Non-Commercial Fluid Recycling (NCFR) pit: • Pit must be lined • Liner must be impermeable • Two feet of freeboard must be maintained • Pit must be emptied and inspected annually or have a Leak Detection System that is monitored monthly • Must be registered w/ District Office and have landowner permission

13. Fluid Recycling Expansion • 35 pit locations across Texas • 19 different oil and gas Operators • Only tracked through pit notification, so recycling expansion is probably greater

14. Fluid Recycling Expansion * Red markers only represent number of pits in county– not exact location.

15. Recyclable oil and gas Waste hauling

16. Hauling NCFR Waste • A Waste Haulers Permit (WHP) is not required for hauling oil and gas waste to a non-commercial fluid recycler • A WHP is not required for hauling recyclable product from a non-commercial fluid recycler for reuse • A WHP is required for hauling waste • From a NCFR facility for disposal • To any commercial recycling (Ch. 4, Subch. B) facility

17. Waste Haulers • Waste Haulers must haul non-solid waste in vehicles designed to transport non-solid waste

18. Chapter 4, Subchapter B Rule Amendments Permitted recycling

19. New Commercial Recycling Permit Rules • Classify types of permits by solids or fluids, and location and duration of facility • Set minimum requirements for application information • Set minimum provisions for permits

20. Fluid Recycling Permit Standards • Permits will prohibit speculative waste accumulation • All oil and gas waste and recyclable product should be stored in linedpermitted or authorized pits, or above-ground storage tanks.

21. Fluid Recycling Permit Standards • Water quality standards will be evaluated dependent on requested reuse • No minimum water quality standards if used in an oil or gas wellbore

22. Recycling Permit Application Requirements • Requirements vary dependent on facility type, but all require: • Location / Environmental Information • Facility Design and Construction • Facility Operations • Facility Monitoring • Facility Closure Plan & Financial Security • Notice

23. Location / Environmental Information • Location • Soil • Geology • Surface water • Ground water • Topography • Receptors Lat. 27d 45’ 23” Long.-98d 52’ 39”

24. Design & Operations Information Storage Tank Incoming waste tested and accepted Dimensions • Process Description • Process flow diagram • Chemicals, MSDS Processing Pad Storage Pit 6 in. thick concrete Chemicals Equipment Final testing prior to reuse Processing Equipment 500 500 500 • Storage and equipment detail • Stormwater mgmt plan • Facility security Tanks Office

25. Monitoring • Facility Inspection • Monitor wells • Storage, piping, Leak Detection Systems • Processing equipment • Quarterly Reports • Records of waste and sale • Lab results for treated waste

26. Financial Security & Notice • Financial Security Bond (Rule 78) • Bond must equal the cost of closure, if abandoned. • PE-sealed Closure Cost Estimate • Notification of surface and adjacent landowners • Published Notice • Notice of application in a newspaper of general circulation in the county with affidavit • Once a week for two consecutive weeks • 76th Legislative Session - H.B. 480

27. Thank you! Sean Avitt Environmental Permits & Support 512-463-2904 sean.avitt@rrc.state.tx.us