The Texas Commission on Environmental Quality and the Oil and Gas Industry

1. The Texas Commission on Environmental Quality and the Oil and Gas Industry An Overview

2. TCEQ Regulates: • Air • Waste • Water • Construction • Processing • Treating • Exploration • Production Texas Railroad Commission X

3. Air • Permits by Rule • Chapter 106 • 25 tpy of VOC or SO2 or PM10 • 250 tpy of CO or NOx • Standard Air Permits • Concrete Batch Plants, etc. • State Permits • PSD (Prevention of Significant Deterioration) • General Operating Permits – Federal • Site Operating Permits - Federal

4. NSR and Title V Perspective NSR Title V DM Minor PBR GOP Standard Permit State Permit SOP NNSR & PSD Federal Permit

5. Upset Conditions • Emission Events • Must notify regional office within 24 hours of discovery • For “affirmative defense” must include all information required in a timely manner • Submit “Final” report within 2 weeks • Some emission events result in enforcement action, depending on the cause and or quantity of the release.

6. Emission Inventories • Point sources • reported emissions by Industry • Area sources • TCEQ developed (Painting, gas stations, dry cleaners, etc. • Mobile sources • TCEQ developed (On-road and non-road) • Biogenic sources • TCEQ developed (trees, eatc.)

7. Point Sources • Major or minor source under §116.12 (New Source Review) • Dependent on potential to emit (PTE) PTE and actual emissions thresholds for regulated pollutants • Location of source • Attainment vs Non-attainment • Boilers and Heaters • Flares • Fugitives • Loading Operations

8. Permits by Rule Chapter 103.261/262 pertaining to Oil and Gas Facilities is currently being re-written to become more specific with regard to day-to-day operations • Topics to include: • Blowdowns • Degreasing, Lubrication • Tank Cleaning • Thief hatches

9. Common Air Violations • Failure to obtain authorization for equipment that requires permitting or Permit By Rule registration • Failure to operate the equipment as registered • Failure to submit reports in a timely manner

10. Waste • O&G waste generated on the drilling site is RRC jurisdiction • Industrial Hazardous waste • Solvents, etc. • Universal waste • Fluorescent light bulbs • Paint and paint related waste • Batteries • Mercury – containing Equipment • Pesticides

11. Common Waste Violations • Notification • Hazardous waste identification (Class 1,2 &3) • Generator Status • Annual waste Summary • Hazardous Waste Management • Tanks • Container Storage Area

12. Paperwork Violations • Hazardous waste determinations • Manifests • Annual waste summaries • Inspections • Container Storage Areas – weekly • Tanks- daily • Safety • Fire and Spill Equipment • Internal Communications or Alarm System • Letters to Police, Fire and Hospitals • Personnel Training • Emergency Reporting

13. Water • Public Water Systems • Serve 25 or more for at least 60 days per year • Waste water discharges • Discharge Monitoring Report (DMR) • NetDMR highly encouraged (replaced eDMR) • Multi-Sector General Permit • May be required if you have had a reportable spill at the site in the last 10 years

14. Common Water Violations • Microbiological Sampling • Inadequate or Non-Submittal of Disinfectant Level Quarterly and monthly Operating Reports • Inadequate Cross Connection Program • Non-Submittal of new facilities plans

15. Water violations, con’t • No annual inspection of storage tanks (including pressure tanks) • Disinfectant residual (lots of issues) • Low distribution water pressure • Un-locked facility fencing • Water Wells • Storage tanks

16. Storm Water Construction Permits • EPA – National Pollutant Discharge Elimination System (NPDES) • Oil and Gas Exploration and Production • TCEQ – Texas Pollutant Discharge Elimination System (TPDES) or Construction Storm Water Permit • O&G Processing and Treating • TXR150000

17. SW Construction Permits • Large construction site (>5 acres) • Require Notice of Intent • Storm water pollution prevention plan • Includes <5 acre sites that are part of a larger common plan of development • Small construction sites (<5 acres) • Require Storm water pollution prevention plan • Less than 1 acre, not regulated

18. Compliance Assistance • Small Business (<100 employees) • SBLGA Hotline 1-800-447-2827 • Site Visit Program • Environmentor Program • Large Businesses • Pollution Prevention and Education • SAV+ • Clean Texas Program • Environmental Management Systems • 512-239-3100

19. Other Programs • Dam Safety • PE required for drilling <500 ft. from dam • Portable “facilities” • Use registered sludge transporter • Water Rights (surface water) • Temporary permits <1 acre-foot. One year • Regional approval, not renewable

20. Andrews Borden Crane Dawson Ector Gaines Glasscock Howard Loving Martin Midland Pecos Reeves Terrell Upton Ward Winkler Region 7 counties

21. Contact information TCEQ Region 7 3300 N. “A” St. Bldg 4 Ste. 107 Midland, TX 79705 432 570-1359 Fax 432 570 4795 • Jeff Bertl, Regional Director • Alice Cone, Air Section Work Leader • Michael, Waste/Water Section Work Leader

22. Contact Information Janet Prim • Compliance Specialist • Small Business and Local Government Assistance • 432-620-6116 • jprim@tceq.state.tx.us

23. Contact Information Christine Hammit, PG IHW Investigator • Midland Regional Office • (432) 570-1359 • chammit@tceq.state.tx.us