vvEPA United States Environmental Protection Agency INFORMATION SHEET Final -January 2011 Regulating Petroleum Industry Wastewater Discharges in the United States and Norway In the U.S. and Norway, government policies encourage the responsible development of domestic energy sources. Petroleum exploration and development is closely regulated in each nation to protect public health and the environment. U.S. and Norway regulations strictly limit offshore petroleum industry discharges including drilling fluids or muds, drill cuttings, and produced water. This information sheet compares how the U.S. and Norway manage wastewater discharges from petroleum exploration, development and production in coastal and offshore waters. Comparisons here are generally focused on each nation's current wastewater discharge regulations. U.S. Regulations In the U.S., the Clean Water Act was enacted "to restore and maintain the chemical, physical, and biological integrity of the Nation's waters." The Clean Water Act prohibits the discharge of any pollutant into U.S. waters from petroleum activities or other sources, unless the discharge complies with specific requirements. Section 402 of the Clean Water Act authorizes the U.S. Environmental Protection Agency (EPA) to regulate industry discharges through National Pollutant Discharge Elimination System (NPDES) permits. NPDES permits must contain: numeric limits based on the technology available to control pollutants, without reference to the effect on the receiving water; and if needed, more stringent limits to control pollutants to meet the water quality standards of the receiving waters. EPA's NPDES regulations for the petroleum industry limit discharges into marine waters, with different restrictions for "coastal" and "offshore" waters. Coastal waters are landward of the inner boundary of the U.S. territorial seas. Offshore waters are seaward of the inner boundary of the U.S. territorial seas. Coastal discharge requirements are generally more stringent than offshore requirements. Section 403 of the Clean Water Act requires that NPDES permits in offshore waters comply with EPA's Ocean Discharge Criteria guidelines. EPA will issue an NPDES permit only if the Ocean Discharge Criteria Evaluation finds that the discharge will not cause unreasonable degradation of the marine environment. Norway Regulations In Norway, the Pollution Control Act regulations require petroleum activities to be carried out with the least possible risk of pollution. The Norway Climate and Pollution Agency regulates petroleum industry use of drilling fluids and muds, produced water, and chemicals, with water discharge permits. To further protect marine waters, Norway first introduced a "zero discharge" goal for petroleum activities (White Paper 58, 1996-1997). This goal was later refined to mean zero discharge of environmentally hazardous substances, using Best Available Techniques, and following the precautionary principle (White Paper 25, 2002/2003). An advisory cooperative group composed of government and industry representatives developed a common definition that identified relevant technologies to achieve zero discharge, and created a standard manner to report discharges. This advisory group found that a literal interpretation of the zero discharge goal was not economically feasible or environmentally beneficial. Norway defines zero environmentally harmful discharges as: • Zero discharge of all added environmentally hazardous chemicals classified as "red" or "black" in the national classification system1; • Zero harmful discharges from natural compounds and chemicals classified as "yellow" or "green". Norway established stricter requirements for drilling operations and produced water in areas north of the 68th parallel in the Barents Sea and Lofoten area (White Paper 38, 2003-2004). This document is for informational purposes only. For U.S. oil and gas regulations see 40 CFR Part 435. 1 ------- Discharge Restrictions - More Information U.S. Toxicity Testing Requirements Coastal Drilling fluids, drill cuttings, and dewatering effluent are prohibited from discharge in all coastal areas, except Cook Inlet. In Cook Inlet, discharges of water-based drilling fluids, drill cuttings, and dewatering effluent are limited to concentrations that pass a toxicity test2 on aquatic organisms. No discharge is allowed for non-aqueous (oil- based) drilling fluids, dewatering effluent, and drill cuttings associated with non-aqueous drilling fluids. Offshore For facilities located within 3 miles from shore, except Alaskan facilities, the discharge of drilling fluids and drill cuttings are prohibited by the Best Available Technology economically achievable and New Source Performance Standards. For facilities located beyond 3 miles from shore, and all Alaskan facilities, water-based drilling fluids and drill cuttings, as well as drill cuttings associated with non-aqueous drilling fluids, are limited to concentrations that pass an acute toxicity test2 on aquatic organisms. The discharge of non-aqueous (oil based) drilling fluids is prohibited. Norway Chemical Testing Requirements Norway chemical approval regulations1 focus on long-term effects of specific components, while U.S. requirements focus on the acute toxicity of drilling fluids. U.S. Ocean Discharge Criteria Evaluation Section 403 of the Clean Water Act requires an Ocean Discharge Criteria Evaluation on NPDES permits for discharges into the territorial sea, contiguous zone, and oceans to prevent unreasonable degradation of ocean waters. In EPA's Ocean Discharge Criteria Evaluation, unreasonable degradation is defined as: • Significant adverse changes in ecosystem diversity, productivity, and stability of the biological community within the area of discharge and surrounding biological communities; or • Threat to human health through direct exposure to pollutants or consumption of exposed aquatic organisms; or • Loss of aesthetic, recreational, scientific, or economic values, which are unreasonable in relation to the benefit derived from the discharge. EPA will issue an NPDES permit only if the Ocean Discharge Criteria Evaluation finds that the discharge will not cause unreasonable degradation of the marine environment (40 CFR Part 125 subpart M). U.S. and Norway Comparison Summary Direct comparisons of the U.S. and Norway offshore discharge regulations are difficult and complex. Both nations have robust and thorough regulatory regimes that aim to balance environmental protection with economic considerations in developing domestic energy. U.S. and Norway regulations continue to be refined based on environmental concerns, economics, and innovations in science and technology. Norway's "zero discharge" goal is not a numeric standard or a discharge level, but is instead a goal based on the precautionary principle and available technology. This is comparable to the U.S. goal to prevent unreasonable degradation of ocean waters. In the U.S., oil and gas NPDES permits limit discharges using both technology and water quality-based controls. NPDES permits must meet the requirements in the code of federal regulations (40 CFR Part 435). In addition, all permits for discharges in the territorial sea, contiguous zone, and oceans must comply with the Ocean Discharge Criteria. This document is for informational purposes only. For U.S. oil and gas regulations see 40 CFR Part 435. 2 ------- Comparison of U.S. and Norway Regulations for Petroleum Industry Wastewater Discharges Discharge Type U.S. Norway Water-based drilling fluids and associated drill cuttings Drilling fluids are used in the rotary drilling of wells to clean and condition the hole, to counter balance formation pressure, and transport drill cuttings to the surface. Drilling muds are a type of drilling fluid made of bentonite and other clays or polymers, and barite, mixed with oil or water. Muds help carry the other components in drillingfluids down the drill pipe and bring cuttings back up the well. Discharge of muds and cuttings allowed from entire well, subject to requirements below. Toxicity test requirements: Acute Suspended Particulate Phase toxicity tests2. Coastal - No discharge allowed, except Cook Inlet. In Cook Inlet, discharges require offshore effluent limits and acute toxicity tests2. Offshore - No discharge within 3 miles from shore, except in Alaska. Discharges beyond 3 miles from shore and Alaskan facilities within 3 miles from shore require numeric effluent limits, toxicity tests2. No free oil or diesel oil discharge, determined by Static Sheen Test. Mercury Img/kg, cadmium 3mg/kg dry weight maximum in stock barite. Alaska Water Quality Standards5 - Mercury 1.8ng/L acute, 0.94ng/L chronic, 0.051ng/L human health; cadmium 40ng/L acute, 8.8ng/L chronic; total aromatic hydrocarbons 10ng/L, total aqueous hydrocarbons 15|ag/L Toxicity, biodegradation, bioaccumulation test requirements: For all components in chemicals used offshore except "green" chemicals list . South of the 68th Parallel - Discharge of muds and cuttings allowed from the entire well. Some limitations, e.g., no discharge of solids containing >1% oil, by weight. Discharge permit for the chemicals in the drilling fluid is required. Only "green" and "yellow" chemicals allowed. No toxicity testing of used drilling fluids. Heavy metals in barite as low as possible. North of the 68th Parallel - Same requirements as south of 68th parallel. In addition, discharge of muds and cuttings allowed from only the "top hole"4 section of the well, if the discharge would not cause significant environmental impacts. All other cuttings or fluids must be re- injected or barged to shore. Non-aqueous (oil-based) drilling fluids Discharge not allowed. Discharge not allowed. Permit required for use of the chemicals in the drilling fluid. Drill cuttings associated with non-aqueous (oil-based) drilling fluids Drill cuttings are the particles generated by drilling into subsurface geologic formations and carried to the surface with the drilling fluids and muds. Coastal - No discharge allowed, except Cook Inlet. In Cook Inlet, if operators cannot comply due to technical limitations, discharges must meet offshore requirements and limits (see below). Offshore-Cuttings discharge must meet water-based drilling fluids and cuttings limits. Specific stock limitations and base fluid requirements apply . Toxicity, biodegradation, bioaccumulation test requirements: For all components in chemicals used offshore except "green" chemicals list3. South of the 68th Parallel - Oil-based and synthetic-based cuttings restriction: no discharge if base oil content is >1%. North of the 68th Parallel - No discharge allowed. Produced Water (Development & Production Only) Beneath oil and gas reservoirs is a natural water layer called formation water. During production operations, sea water is injected into the reservoirs to help force the oil to the surface. Produced water contains formation and injected water, oil, gas, and any chemicals added during the oil/water separation process. At the surface, produced water is treated to remove as much oil as possible, and then Coastal - No discharge allowed, except Cook Inlet. In Cook Inlet, discharges require oil and grease limits: 42mg/L maximum daily; 29mg/L monthly average. Offshore - Discharge allowed if oil and grease limits are achieved: 42mg/L maximum daily; 29mg/L monthly average. Re-injection not required. Toxicity, biodegradation, bioaccumulation test requirements: For all components in chemicals used offshore except "green" chemicals list3. South of the 68th Parallel - Discharge of "green" and "yellow" chemicals allowed. Oil in water < 30mg/L monthly average. Document zero harm (e.g., discharges of oil in water are well below 30mg/L) North of the 68th Parallel - Produced water This document is for informational purposes only. For U.S. oil and gas regulations see 40 CFR Part 435. ------- Discharge Type U.S. Norway discharged into the sea or injected back into the wells. discharges not allowed, except during operational deviations (maximum 5% produced water can be discharged). Sanitary and Domestic Wastes (including Food Waste) Coastal and Offshore - For facilities continuously manned by 10 people or more (M10): minimum Img/L residual chlorine. For facilities continuously manned by 9 people or less or intermittently manned (M9IM): no discharge of floating solids. Alaska Water Quality Standard5 - Total residual chlorine 13u.g/L acute, 7.5ug/L chronic; fecal coliform bacteria 14 FC/lOOmL acute, 43 FC/lOOmL chronic. South and North of the 68th Parallel - Discharge allowed. Discharge of food waste allowed after grinding. Cooling Water No federal standard for temperature. Alaska Water Quality Standard5 - Not to exceed 15°C or cause the weekly average to increase by more than 1°C. South and North of the 68 Parallel - Discharge allowed for exploration. Temperature increase assessment required for development and production (must achieve ambient temperature 100m from platform). Deck Drainage (including Detergents) Coastal and Offshore - No discharge of free oil, determined by presence of film, sheen or discoloration on surface of receiving water (visual sheen). Deck drainage contaminated with oil and grease must be processed through oil/water separator prior to discharge. Alaska Water Quality Standards5 - total aromatic hydrocarbons 10u.g/L, total aqueous hydrocarbons 15u.g/L Toxicity, biodegradation, bioaccumulation testing requirements: For all components in chemicals used offshore except "green" chemicals list3. South and North of the 68th Parallel - Discharge of "green" and "yellow" products allowed. Deck drainage contaminated with oil and grease must be processed through oil/water separator prior to discharge. Oil in water < 30mg/L monthly average. Bilge Water Coastal and Offshore - No discharge of free oil, determined by presence of film, sheen or discoloration on surface of receiving water (visual sheen). Bilge water must be processed with oil/water separator prior to discharge. South and North of the 68 Parallel - Bilge water must be processed with oil/water separator prior to discharge. Oil in water < 30mg/L monthly average. Blowout Preventer Fluids Hydraulic Fluids Well Treatment, Completion, and Workover Fluids Coastal - No discharge allowed, except Cook Inlet. In Cook Inlet, discharges require oil and grease limits: 42mg/L maximum daily; 29mg/L monthly average. Offshore - Discharge allowed. Oil and grease limits: 42mg/L maximum daily; 29mg/L monthly average. Alaska Water Quality Standards5 - total aromatic hydrocarbons 10u.g/L, total aqueous hydrocarbons 15u.g/L Toxicity, biodegradation, bioaccumulation test requirements: For all components in chemicals used offshore except "green" chemicals list3. ,th South and North of the 68 Parallel - Discharge of limited volumes of "green" and "yellow" products allowed. This document is for informational purposes only. For U.S. oil and gas regulations see 40 CFR Part 435. 4 ------- References 1 Norway follows the Oslo-Paris Convention of the Marine Environment of the North-East Atlantic (OSPAR) offshore screening chemical guidelines. This means that the components in the chemicals are tested for toxicity (on algae, shrimp, and juvenile fish), biodegradation and bioaccumulation. Based on this testing, Norway requires operators on the Norwegian Continental Shelf to classify chemicals used offshore as "green", "yellow", "red", or "black." Norway requires zero discharge of all added environmentally hazardous chemicals classified as "red" or "black". However, "red" chemicals may be discharged if an operator demonstrates no other options are available and an active search is underway for a replacement or substitution. This classification system is a risk assessment approach to help operators determine the chemicals and additives they are allowed to use offshore, based on ecotoxicological data in the OSPAR Harmonised Offshore Chemical Notification Format and hazardous chemicals on the priority list as outlined in White Papers 58 and 25. 2 Suspended Particulate Phase (SPP) toxicity test is an acute toxicity measurement used to determine levels of pollutant concentrations which can kill a certain percentage of organisms exposed to the suspended particulate phase of the drilling fluids and cuttings. The toxicity limit is expressed as a concentration of the SPP from a sample of drilling fluid that would kill 50% of marine organisms exposed to that concentration of the SPP, i.e., the lethal concentration, or LC50, of the discharge. Discharges of water-based drilling fluids and cuttings in offshore waters and Alaskan facilities, or cuttings associated with non- aqueous drilling fluids, must meet a minimum toxicity requirement: 96-hour LC50 of the SPP toxicity test must be 3% by volume (>30,000 parts per million). E.g., a discharge at a concentration of 3% or more should kill no more than half a test population of marine organisms continuously exposed 96 hours. 3 Chemicals on Norway's "green" list are those that Pose Little or No Risk ("PLONOR") to the marine environment, based on the Convention for the Protection of the Marine Environment of the North-East Atlantic. 4 "Top Hole" is typically defined as the well sections drilled before a conductor and riser are installed. The depth of the top hole varies with the total depth of the well and the integrity of the formations. In Norway, most top holes range from 100-700m deep. 5 Alaska Water Quality Standards (18 Alaska Administrative Code 70) apply to discharges within State waters. 6 Stock limitations (C16-C18 internal olefin, C12- C14 ester or C8 ester): Mercury Img/kg and cadmium 3mg/kg dry weight maximum in stock barite; Polycyclic Aromatic Hydrocarbons (PAH) < IxlO"5; Base fluid sediment toxicity ratio < 1.0; Biodegradation rate ratio < 1.0; acute toxicity tests; drilling fluid sediment toxicity ratio < 1.0; no discharge of diesel or formation oil. Base fluid retained on cuttings (C16-C18 internal olefin): 6.9g base fluid/lOOg wet drill cuttings. Base fluid (C12-C14 ester or C8 ester stock): 9.4g base fluid/lOOg wet drill cuttings. For More Information U.S. oil and gas extraction discharge limits are found in the Code of Federal Regulations, Title 40, Part 435 at: http://www.gpoaccess.gov/cfr/index.html EPA permits for oil and gas wastewater discharges in Alaska are found at: http://yosemite.epa.gov/rlO/water.nsf/NPDES+Per mits/CurrentAK822 Norway petroleum regulations are found at: http://www.ptil.no/regulations/category87.html This document is for informational purposes only. For U.S. oil and gas regulations see 40 CFR Part 435. ------- |