Offshore and Oil & Gas NPDES permit no. GMG290000 transition from 1998 permit to the replacement permit

In Re: NPDES PERMIT NO. GMG290000

General Administrative Compliance Order

The following Findings are made, and Administrative Compliance Order issued, under the authority vested in the Administrator of the United States Environmental Protection Agency (EPA), by Sections 308(a) and 309(a) of the Clean Water Act ("the Act"), 33 U.S.C. §§ 1318(a) and 1319(a). The Administrator of EPA has delegated the authority to issue this Administrative Compliance Order to the Regional Administrator of EPA Region 6, who has further delegated this authority to the Director of the Compliance Assurance and Enforcement Division. Issuance of this Administrative Compliance Order is not "final agency action" and is subject to judicial review only in connection with an action to enforce its terms.

Findings

1. Section 402(a) of the Act, 33 U.S.C. § 1342(a), provides that the Administrator of EPA may issue permits under the National Pollutant Discharge Elimination System (NPDES) program for the discharge of pollutants from point sources to waters of the United States. Any such discharge is subject to the specific terms and conditions prescribed in the applicable permit.

2. Pursuant to Section 402(a) of the Act, EPA issued the "Final NPDES General Permit for New and Existing Sources and New Discharges in the Offshore Subcategory of the Oil and Gas Extraction Category for the Western Portion of the Outer Continental Shelf of the Gulf of Mexico," 63 FR 58722 (November 2, 1998) (GMG290000), which was modified April 19, 1999 [64 FR 19156], and December 18, 2001 [66 FR 65209]. The general permit authorizes discharges from new sources, existing sources, and new discharges in the Offshore Subcategory of the Oil and Gas Extraction Point Source Category (40 CFR 435, Subpart A) to operators of lease blocks in the Oil and Gas Extraction Point Source Category which are located in Federal waters of the Western Portion of the Gulf of Mexico (defined as seaward of the outer boundary of the territorial seas off Louisiana and Texas) to the Western Portion of the Federal Waters of the Gulf of Mexico ("the industry"), but only in accordance with the conditions of the permit. The permit does not authorize discharges from facilities located in or discharging to the territorial seas of Louisiana or Texas or from facilities defined as "coastal," "onshore," or "stripper" (see 40 CFR part 435, Subparts C, E, and E). The permit does, however, authorize the discharge of produced water to the Western portion of the Federal Waters of the Gulf of Mexico from wells located in lease blocks in the territorial seas of Louisiana and Texas.

3. As published on December 18, 2001 [66 FR 65209], EPA Region 6 again modified the permit to allow for discharges of drill cuttings generated using synthetic and other non-aqueous based drilling fluids and hydrostatic test water from pressure testing of existing pipelines. These permit modifications, effective February 16, 2002, impose new discharge limitations and standards for non-aqueous drilling fluids as specified below. Any further reference to "the Permit" in this Administrative Compliance Order shall refer to the modified permit published on December 18, 2001 [66 FR 65209].

4. The Permit expired on midnight of November 3, 2003, and is currently administratively continued pursuant to 40 CFR 122.6 and 5 U.S.C. 558(c), until the replacement permit is issued. Permittees covered under this permit are automatically granted administratively extended permit coverage. EPA is currently developing the replacement permit and anticipates issuance in the near future.

5. Respondents are "persons," as that term is defined at Section 502(5) of the Act, 33 U.S.C. § 1362(5), and 40 C.F.R. § 122.2.

6. At all relevant times, Respondents owned or operated offshore platforms in Federal waters of the Western Portion of the Gulf of Mexico (defined as seaward of the outer boundary of the territorial seas off Louisiana and Texas) (herein "the facilities") and were therefore "owners or operators" within the meaning of 40 C.F.R. § 122.2.

7. At all relevant times, the facilities were "point sources" subject to a "discharge" of "pollutant[s]" with its discharges to the receiving waters of the Gulf of Mexico, which are "waters of the United States" within the meaning of Section 502 of the Act, 33 U.S.C. § 1362, and 40 C.F.R. § 122.2.

8. Because Respondents owned or operated facilities that were point sources subject to discharges of pollutants to waters of the U.S., Respondents and the facilities were subject to the Act and the NPDES program.

9. Under Section 301 of the Act, 33 U.S.C. § 1311, it is unlawful for any person to discharge any pollutant from a point source to waters of the United States, except with the authorization of, and in compliance with, an NPDES permit issued pursuant to Section 402 of the Act, 33 U.S.C. § 1342.

10. Respondents' facilities are new sources, existing sources, and new discharges in the Offshore Subcategory of the Oil and Gas Extraction Point Source Category.

11. Respondents' unauthorized discharges of pollutants to waters of the U.S. are violations of Section 301 of the Act, 33 U.S.C. 1311.

12. Each violation of the conditions of the Administrative Compliance Order is a violation of Section 309 of the Act, 33 U.S.C. § 1319, or Section 301 of the Act, 33 U.S.C. § 1311, and may be subject to enforcement as set forth in Section 309 of the Act, 33 U.S.C. § 1319.

13. Given the large number of offshore oil and gas operators potentially subject to NPDES regulation in the Gulf of Mexico, it would be impractical for EPA to issue individual compliance orders to all permit violators or conduct "show cause" meetings to establish individual compliance schedules for all such violators. A general Administrative Compliance Order setting forth procedures for establishing such schedules will avoid delays attendant on such meetings and issuance of individual compliance orders. Each person requesting coverage under this Administrative Compliance Order will be assigned a Docket Number for tracking purposes.

Order

Based on these Findings and pursuant to the authority of Sections 308(a) and 309(a) of the Act, EPA HEREBY ORDERS Respondents to take the following actions:

A. Any person who is an NPDES operator in the Offshore Subcategory of the Oil and Gas Extraction Category for the Western Portion of the Outer Continental Shelf of the Gulf of Mexico who has discharged without an NPDES permit may request coverage under this Administrative Compliance Order by submitting a "Notice to Request Coverage under Administrative Compliance Order" (hereinafter "the Notice"), to EPA Region 6. All Notices shall be sent to:

U.S. EPA Region 6
Water Enforcement Branch (6EN-WT)
OCS Order (Attn: Taylor Sharpe)
P.O. Box 50625
Dallas, TX 75250

The Notices must be signed and certified by an "authorized official" [40 CFR 122.22]. The Notice is available on the internet at www.epa.gov/region6/offshore/ntrcuacso.pdf [Form has expired and is no longer available].

If the report is made by e-mail, the 24 hour report should include this statement and be submitted by an authorized official. Please note that only authorized officials as defined by the Permit may sign such documentation unless a delegation of authority letter has been sent to EPA Region 6.

C. Issuance of this Administrative Compliance Order shall not be deemed an election by EPA to forego any administrative, civil, or criminal action to seek penalties, fines, or any other relief appropriate under the Act for the violations cited herein. EPA reserves the right to seek any remedy available under the law that it deems appropriate for the violations cited.

D. Failure to comply with this Administrative Compliance Order or the Act can result in further administrative action, or a civil judicial action initiated by the U.S. Department of Justice. If the United States initiates a civil judicial action, Respondents will be subject to civil penalties of up to $32,500 per day per violation.

E. This Administrative Compliance Order expires thirty (30) days after the issuance of the replacement permit or December 31, 2005, whichever is sooner.

F. Respondents shall apply for permit coverage under the replacement general permit within thirty (30) days of the issuance of the replacement general permit, in accordance with instructions in that permit.

G. This Administrative Compliance Order is not an NPDES permit, and compliance with the terms and conditions of this Administrative Compliance Order does not relieve Respondents of their obligations to apply for and comply with any applicable permit, and comply with any applicable federal, state or local law or regulation.

H. This Administrative Compliance Order shall be effective on June 23, 2004.

__________________
Gerald Fontenot, P.E.
Acting Director
Compliance Assurance and Enforcement Division