US to exempt oil, gas construction sites from storm water permits

US to exempt oil, gas construction sites from storm water permits

Washington (Platts)--7Jun2006

The US Environmental Protection Agency Wednesday said it will publish a
final rule exempting construction activities at oil and gas sites from federal
permitting requirement for storm water discharges, except in very limited
instances.

The rule would be effective June 12. It implements an amendment to the
Clean Water Act included in the Energy Policy Act of 2005. The amendment
clarifies that uncontaminated storm water discharged from oil and gas field
activities does not require a National Pollutant Discharge Elimination System
permit.

The rule encourages voluntary application of best-management practices
for to minimize erosion and control sediment.

The debate over the issue stretches back over a decade. In 1990, EPA
issued a rule establishing permit requirements for certain storm water
discharges associated with construction activities that disturb five or more
acres. Two years later, EPA issued a memorandum stating that permitting
requirements included activities associated with oil and gas activities.

Several trade associations sued EPA contending that the memorandum was
unlawful because it was inconsistent with the Clean Water Act. The lawsuit
was dismissed by a federal court.

In 1999, EPA issued a rule that required a permit for storm water
discharges from small construction activities that disturb between one and
five acres. At the time, EPA suggested that few if any sites would be
affected. Subsequently, the agency said it was made aware that close to 30,000
oil and gas sites annually may be affected.

EPA postponed the permit authorization deadline, ultimately until June
12, 2006, to provide time for the agency to complete its evaluation and assess
appropriate procedures and methods for controlling storm water discharges.

The Energy Policy Act effectively excludes almost all oil and gas
exploration, production and transmission construction activities from the
NPDES permitting requirements, regardless of the amount of acreage disturbed.
The rule is also applicable to gas pipelines and associated infrastructure.

--Gerald Karey, gerry_karey@platts.com

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