3EPA
United State*
Environmental Protection
Agency
Off ice of
Solid Waste and
Emergency Response
DIRECTIVE NUMBER: 9441.03(83)
TITLE: Scope of Oil and Gas Waste Exemption in
§3001(b)(2)(A) of RCRA: "Iron Sponge" Process
APPROVAL DATE: 5-26-83
EFFECTIVE DATE: s-26-83
ORIGINATING OFFICE: osw
JP FINAL
D DRAFT
LEVEL OF DRAFT
DA Signed by AA or OAA
D B Signed by Office Director
DC Review & Comment
REFERENCE (other documents):
OSWER OSWER OSWER
VE DIRECTIVE DIRECTIVE Di
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PART 261 SUBPART A - GENERAL
DOC: 9441.03(83)
Key Words:
Regulations:
Subject:
Addressee:
Originator:
Source Doc:
Date:
Summary:
Iron Sponge, Exclusions
RCRA 3001(b)(2)(A)
Scope of Oil and Gas Waste Exemption in §3001(b)(2)(A) of RCRA:
"Iron Sponge" Process
Richard J. Nolan, Regional Counsel, Region VIII
Lisa K. Friedman, Acting Associate General Counsel, Solid Waste
and Emergency Response Division
#9441.03(83)
5-26-83
Pursuant to §3001(b)(2)(A), oil and gas wastes are exempt from the require-
ments of the hazardous waste regulatory program. Wastes from the iron sponge .
process, however, are substantially different from those covered under the oil
and gas exemption. Therefore, waste iron does not fall within the purview of
§3001(b)(2)(A), and it is subject to regulation as a hazardous waste.
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9441.03 (83)
.UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
MAY 25J983
MEMORANDUM
SUBJECT: Scope of Oil and Gas Waste Exemption
in Section 3001(b)(2)(A) of RCBAi
Iron Sponge" Process
PROM: Lisa K. Friedman
Acting Associate General Counsel
Solid Waste 6 Emergency Response
Division (LE-132S)
TO: Richard J. Nolan
Regional Counsel
Region VIII
QUESTION PRESENTED"
In your March 2, 19T3, memorandum to me, you asked
whether waste "iron sponge" generated during the sweetening
of natural gas is exempt from the requirements of the hazardous
waste regulatory program under Subtitle C of the Resource
Conservation and Recovery Act (RCRA), by virtue of the
exemption for oil and gas wastes in Section 3001(b ) ( 2) (-A).
ANSWER
Waste iron sponge is not within the Section 3001(b;(2}(A)
exemption and, therefore, is subject to the hazardous waste
regulatory program.
DISCUSSION
I. Factual Background -
Waste iron sponge is a material which is produced during
a natural gas sweetening process (hydrogen sulfide removal).
Its origin is best understood by reviewing the entire chain
of operations used to extract and refine natural gas for
transportation and sale.
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Natural gas i.a extracted from the ground by bringing
reservoir fluids to the surface. The gas may be extracted
in association with oil or frora a reservoir yielding
predoninantly gas. In any case, the gas generally is extracted
together with other gaseous or liquid substances contained in
the ground. The combined extracted material is passed through
a physical gas-liquid separator*o that the gas can be
separated from the unwanted liquid components or solids (e.g. ,
sand). (The separated liquids are typically returned to the
ground or discharged to impoundments.)
After physical extraction and separation/ the gas is
generally processed or treated to improve its transportability
and to achieve the quality required for commercial sale. If
the extracted and separated gas is "sour" (i.e«, it contains
hydrogen sulfide), it is refined ("sweetened") to separate
the hydrogen sulfide gases from the commercially sold gas.
This operation is typically performed prior to long-distance
transportation to reduce pipeline corrosion. The sweetening
process often includes a sulfur recovery operation,
In addition to the sweetening and sulfur recovery operations,
a natural gas processing plant often includes several other
manufacturing operations. These include dehydration and
dewpoint control of the sweetened gas, condensation stabilization/
and distillation (to separate various gases for commercial
sale).
The iron sponge process involves passing sour gas through
an absorption tower containing redwood chips coated with hydrated
ferric oxide (the "iron sponge"). The hydrogen sulfide-bearing
gas reacts with the hydrated ferric oxide to produce ferric
sulfide and residual water.
After three to four months, the iron sponge is "spent".
It is then floode^ with water, initiating a reaction which
produces hydrogen sulfide. The spent iron sponge is then
removed frora the absorption tower and is placed on the 'gfound,
where, with the increased exposure to oxygen, it generates
heat. The heat dries the wood chips, which begin to smolder.
The smoldering continues until the spent iron sponge is
reduced to ashes. The ashes are then generally disposed of
in a landfill. I/
I/ You have not asked ray opinion whether the spent iron sponge/
Is a hazardous waste prior to completion of treatment. I
have assur.ed for purposes of the question presented that it
is hazardous and would be subject to the hazardous waste
regulations unless exempted under Section 300l(b)(2)(A) of
RCRA. (Footnote Continued on Mext Page)
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II. Legal Background
The current statutory exemption for wastes resulting
froo the exploration* development and production of crude oil
or natural gas has its origins in EPA'a proposed hazardous
waste regulations, 43 Fed. Reg. 58946 (December 18, 1978).
Proposed 40 CFR t250.46 contained "special waste standards"
- reduced requirements for several types of wastes that are
produced in large volume and that SPA believed may be
relatively low in toxicity as compared to other haxardous
wastes. One of these 'special wastes* was "gas and oil
drilling auds and oil production brines." EPA did not define
this tern in its Decenber 18 proposal.
In the RCRA amendments of 1980, Congress exempted most
of these "special wastes" from regulation as hazardous wastes
pending further study by EPA. The oil and gas exemption
(Section 3001(a)(2)(A)) reads in relevant part as followst
(Footnote Continued from Previous Page)
As you know, it is the generator's responsibility to
determine, on a case-by-case basis, whether a waste is
hazardous. However, I can offer you some guidance to assist
you in reviewing such determinations.
The Office of Solid Waste has reviewed the technical
reports prepared by Camp, Dresser & HcKee on April 8, 1982
and submitted to Region VIII by Holland and Hart on behalf
of Gary Energy Corporation on November 22, 1932. It is
their opinion that, under the facts detailed in the
report, the iron sponge would probably be hazardous. Since
the spent iron sponge can generate considerable hydrogen .
sulfide if contacted with an acidic solution, it meets the
characteristic of reactivity under 40 CFR 5261.23(a){5).
Similarly, since i£ generates a great deal of heat when aixed
with water, which results in the dissociation of ferric
sulfide to release additional hydrogen sulfide,. it meets the
reactivity characteristic in §261.23(a)(4) as well.
It is possible, though less certain,, that the spent
iron sponge might also be ignitable in sense circumstances
under S261.21(a)(2). First, it is not a liquid and appears
to be capable in some cases of causing fire through absorption
of moisture. Second, it might be considered to burn "so
vigorously and persistently that it creates a hazard" through
persistent burning (e.g. , special fire fighting techniques
would be necessary to extinguish a fire) since the waste
reacts with water to produce heat.
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[D] rilling fluids/ produced waters, and
other vaates associated with the exploration,
development, or production of crude oil or natural
gas or qoothernal energy shall be subject only
to existing State or Federal regulatory programs
in lieu of subtitle C until at least 24 months
after the date of enactment of the Solid Waste
Disposal Act Amendments of 1980 and after
promulgation of the regulations in accordance with
subparagraphs (B) and (C) of this paragraph.
It is the sense of Congress that such State or
Federal programs should include, for waste disposal
sites which are to be closed, provisions requiring
at least the following: :.. . :':. . ;.:-,.''.
(i) The identification through surveying,
platting, or other measures, together with recordation
of such information on the public record, so as
to assure that the location where such wastes are
disposed of can be located*in the future ...; and
(ii) A chemical and physical analysis of a
produced water and a composition of a drilling fluid
suspected to contain a hazardous material, with
such information to be acquired prior to closure
and to be placed on the public record. [Emphasis added.]
Legislative history defining the term "other, wastes
associated" is sparse. The primary source is the Conference
Report, H.R. Rep. No. 96-1444, 96th Cong., 2d Seas. 32 (1980),
(hereinafter "Conf. Rep.*) which briefly explains:
The term 'other wastes associated" is specifically
included to designate waste materials intrinsically
derived from the primary field operations associated
with the exploration, development, or production of .
crude oil, natural gas, or geothermal energy. It'
would cover such substances as: hydrocarbon bearing
soil in and around the related facilities; drill
cuttings, materials (such as hydrocarbon water, sand
and emulsion) produced from a well in conjunction
with crude oil, natural gas, or geothenaal energy;
and the accumulated material (such as hydrocarbon,
water, sand, and emulsion) frota production separators,
fluid treating vessels, storage vessels, and
production impoundments.
The phrase "intrinsically derived from the primary
field operation"... is intended to differentiate
exploration, development and production operations
from transportation (from the point of custody
transfer or of production separation and dehydration)
and manufacturing operations.
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Floor statements on this exemption consist only of a
few brief statements supporting the exemption. They do not
define the exempted wastes. The speakers refer to muds and
brines and hot specifically to other associated wastes.
IV, Regulatory Status of Spent Iron Sponge .-:...... ..
Zt is ay conclusion, based upon the factual and legal
background set forth above, that waste iron sponge is not '
within the Section 3001(a)(2)(A) exemption.
The key words in the statute, "exploration, development,
or production", all relate to locating oil and gas deposits
of commercial value and extracting the oil and gas from
those deposits. The only wastes specifically listed in the
statute are "drilling fluids" and "produced water". These
are substances that were originally extracted from the ground
together with the desired oil or gas or that were injected
into the ground to enhance extraction of the oil or gas.
They do not result from any process other than physical
separation from the product. It is therefore reasonable to
conclude that "other wastes" should similarly be materials
extracted from the ground or injected into the ground to
enhance oil or gas recovery and .not wastes resulting from
subsequent processing and manufacturing.
The legislative history supports this conclusion. It
states that the term "other wastes* includes! hydrocarbon
bearing soil; drill cuttings; and materials such as hydrocarbon,
water, sand and emulsion that were "produced" from a well or
from production separators, fluid treating vessels _2/, storage
vessels, and production impoundments. Conf. Rep. at 32. Wastes
from the iron sponge process are substantially different from
these wastes. The iron sponge process goes beyond physical
2/ An argument migttt be made that the tern "material ... from
7.. fluid treating vessels" in the Conference Report includes
iron sponge used to treat sour gas. However, because the
statute..uses the term "fluid" only in conjunction with the
term "drilling fluids", I think the most reasonable interpretation
of the term "material ... from ... fluid treating vessels" is
that it refers to wastes from the treatment of drilling fluids
prior to their disposal or reintroduction into the well. 80
construed, this explicit reference to wastes from the treatment
of drilling fluids strengthens the argument that wastes fron
the treatment of the natural gas product (e.g. , iron sponge)
are not included in the Section 3001(a)(2)(A) exemption.
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separation of the gas from other produced materials or drilling
fluids to processing the gas through a chemically treated
material. It is thus a processing operation that is downstream
fron the production operations. The spent iron sponge waste
consists of materials extraneous to drilling fluids and
production waters; it consists of commercially manufactured,
chenically, treated wood chips :that -have been farther altered..
by reaction-with the natural
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