Tag Archives: Groundwater

Weakening Environmental Standards for Landfills

June 8, 2013:  On Thursday, the Senate’s Agriculture and Environment Committee approved a radically rewritten version of  Senate Bill 328 (Solid Waste Management Reform of 2013) in very short order.  The bill undoes  a number of environmental standards adopted in a  2007 rewrite of the state’s landfill permitting laws, weakening protections for  parks, wildlife refuges, wetlands,  endangered species habitat and sensitive or high quality surface waters. It also changes some longstanding environmental standards for landfill operation that predate the 2007 law.

A little history first. In 2006, the Department of Environment and Natural Resources (DENR) received  several  permit applications from private waste management companies proposing construction  of  new and  very large landfills in the coastal area of the state.  Reacting to the controversy over those landfill proposals, the N.C. General Assembly put a one-year moratorium on landfill permitting to allow time for a study of permitting standards.   After the study, the General Assembly adopted a major piece of legislation,  Session Law 2007-550, that set new landfill permitting standards, including setbacks from wildlife refuges, parks and gamelands;  increased   bonding requirements for landfill operators; and  stronger standards for leak prevention and detection. The bill also, for the first time, created a state solid waste disposal tax and dedicated the tax revenues to recycling programs and cleanup of contamination from old,  unlined landfills.

Waste management companies fought the solid waste disposal tax and opposed some of the new environmental standards.  A  Raleigh-based company, Waste Industries, U.S.A.,  sued to challenge the final law. (Some of the new landfill standards affected plans for a large Waste Industries landfill  near Dismal Swamp State Park and Dismal Swamp National Wildlife Refuge in Camden County.)   In 2012, the North Carolina Court of Appeals ruled against Waste Industries and upheld the law. Senate Bill 328  appears to be a new  effort by landfill developers and operators to legislatively undo many of the standards adopted in 2007 and change some  requirements that were in place long before  2007.

Senate Bill 328 changes specific to landfill design, construction and operation are described in more detail below.  Among the most important  would be repeal of several standards for denial of a landfill permit. The Department of Environment and Natural Resources (DENR) would no longer be able to deny a  permit because construction or operation of the landfill would cause significant damage to parks, wilderness areas, habitat for threatened and endangered species, critical fisheries habitat or other natural and historic areas of regional and statewide significance. (See Sec. 2). Instead,  a permit could be denied only if  the landfill would  be located in critical habitat for threatened or endangered species; in a historically or archaeologically sensitive site of more than local significance; or within 1500 feet of a national or state park, forest, wilderness area, recreation area, a segment of the Natural and Scenic Rivers system, a  National Wildlife Refuge, a wildlife preserve or management area, critical fisheries habitat, or other high quality waters. (See Section 3 of the bill).

The changes mean that DENR could  only consider location of the landfill itself and not impacts from construction and operation in making a permit decision. Removing those grounds for permit denial will also make it difficult for DENR to put conditions on construction and operation of the landfill to protect those natural resources.  As a result, the bill would leave some very sensitive   resources  vulnerable to damage from landfill construction and operation. With respect to habitat for threatened and endangered species,   failure to consider damage from construction and operation may make the bill inconsistent with requirements of the federal Endangered Species Act.

The bill also:

—  Repeals the requirement for  an environmental impact statement (EIS) for  new landfills.  (Section 3).   Repeal of this language would remove the EIS requirement in the solid waste statutes, but does not exempt local government landfill projects from the  State Environmental Policy Act (SEPA).  SEPA requires an EIS for any state-permitted project that  involves expenditure of public funds or use of public lands and may have a significant impact on the environment.  The odd result could be  an EIS for public projects, but not for commercial landfill projects that may be as large or larger.

— Eliminates the requirement for any buffer between a waste disposal unit (the actual landfill cell where solid waste is deposited) and wetlands.   The change could allow  waste disposal immediately adjacent to wetlands that are directly connected to surface waters.  (Section 3)

— Reduces the buffer required between landfills and national wildlife refuges, state parks, and gamelands managed by the N.C. Wildlife Resources Commission to 1500 feet. (Section 3).  The 2007 law required a buffer of five  miles from a National Wildlife Refuge, two miles from a state park, and one mile from state gamelands. Those buffer requirements reflected the recommendations of parks and wildlife officials,  but waste management companies saw the 2007 buffers as a legislative  attempt to kill specific landfill projects.

— Allows construction of a landfill in wetlands that fall outside federal Clean Water Act jurisdiction. (Section 3). Many court cases and law review articles have tried to clarify the line between federal and state wetland jurisdiction, but one possible result of the bill would be to allow  landfill construction in “isolated” wetlands  that  may not have a direct connection to surface waters,  but have a connection to groundwater.

— Eliminates the requirement for regular cleaning of leachate collection lines.  (Section 3).

— Raises the maximum landfill height from 250 feet to 300 feet, but creates additional closure and vegetative cover requirements for landfills of greater than 100 feet in height.  (Section 3).

—  Limits the landfill operator’s responsibility to assess  a release of landfill leachate  and take corrective action unless  leachate reaches the compliance boundary. (Section  5).   Leachate is water that  percolates through the  landfill, picking up contaminants from the waste material. Permits for waste disposal sites often allow  groundwater standards to be exceeded immediately  under a waste  disposal site as long as the groundwater meets all standards at a designated compliance boundary. For  landfills  permitted since 1983, the compliance boundary is generally 250 feet from the waste disposal site or 50 feet inside the property line (whichever is closer).  Corrective action requirements for landfills have been in place for many years and  always required the landfill operator to take steps to stop an ongoing leak or spill. The Senate Bill 328 language is so broad that it could be interpreted to excuse the operator from doing even that unless leachate actually reaches the compliance boundary. Excusing a landfill operator from corrective action to stop an ongoing  release of leachate  under any circumstances would likely be inconsistent with federal solid waste rules.

— Eliminates a requirement that vehicles carrying solid waste must be leak proof and instead requires only that  vehicles be “designed to be leak resistant”, changing a standard for transport of solid waste that has been in place for 25 years. (Section 7).

— Removes the minimum financial assurance requirement. Senate Bill 328 would still require financial assurance to cover closure of the landfill as well as assessment and cleanup of any spills or leak, but  removes the statutory floor of $2 million and gives DENR complete discretion to set the amount of the financial assurance.

One  part of the bill has impacts beyond landfill construction and operation. Section 6   would prevent  the Environmental Management Commission from reviewing state groundwater standards more often than every five years. Groundwater standards guide permitting of many  activities  that present a risk of groundwater contamination and provide the benchmark for  groundwater remediation.  Slowing the revision of groundwater standards may have unintended consequences for industry generally, since new research on health impacts sometimes provides support for a less stringent groundwater standard.

The bill makes other changes, but I will stop there. Senate Bill 328 will be on the Senate calendar for June 11.

Halliburton, Fracking and the N.C. Public Records Act

May 3, 2013: The Raleigh News and Observer  reports today on Halliburton’s opposition to a draft North Carolina rule on disclosure of chemicals used in hydraulic fracturing. The Mining and Energy Commission’s Environmental Standards Committee had approved the draft rule for consideration by the full commission today. Commission chair, Jim Womack, told committee members yesterday that the rule would not be taken up by the commission as planned because of objections from Halliburton lawyers.

State law (G.S. 113-391)  specifically directs the  Mining and Energy Commission  to adopt rules for:

“Disclosure of chemicals and constituents used in oil and gas exploration, drilling, and production, including hydraulic fracturing fluids, to State regulatory agencies and to local government emergency response officials, and, with the exception of those items constituting trade secrets, as defined in G.S. 66‑152(3), and that are designated as confidential or as a trade secret under G.S. 132‑1.2, requirements for disclosure of those chemicals and constituents to the public.” G.S. 113-391(a)(5)(h).

You can find more here  on protection of  trade secret information under the  confidentiality provisions of the N.C. Public Records Act.

The draft rule approved by the MEC’s Environmental Standards Committee would have required oil and gas operations to disclose all chemicals used in hydraulic fracturing fluid to the Department of Environment and Natural Resources soon after fracturing the well.  Under the draft rule, information considered to be a “trade secret” under the state’s Public Records Acts would not be disclosed to the public. Based on the news story and other accounts of the committee meeting on Thursday, Halliburton objects to disclosure of trade secret information even to state regulatory staff except in response to actual environmental harm or a specific health concern.

An earlier post talked about the implications of only requiring  disclosure of trade secret information to  regulators after environmental damage or health effects have occurred.  There are at least two potential problems: 1.  in the aftermath of an emergency (such as a spill, leak or fire),  it would take more time to get information to state and local emergency responders;  and 2. groundwater contamination may not be discovered for years after an undetected  leak or spill occurs and lack of complete state records on the chemicals used to fracture wells  will  make it difficult to identify the contamination source.

The current controversy over the chemical disclosure rule raises several legal and policy questions for DENR and the Mining and Energy Commission:

●   Would a rule allowing the operator to withhold trade secret information from state regulators be consistent with G.S. 113-391? The law clearly protects trade secret information from disclosure to the public, but seems to intend disclosure to state regulators and in some circumstances to local emergency response agencies.

●   Is there reason to protect oil and gas industry trade secrets to a greater degree than trade secret information from other industries? Many state agencies receive trade secret information  and the Public Records Act allows that  information to be protected from public disclosure. The Public Records Act does not allow other industries to withhold information  needed by  state regulators on the grounds that the information is a trade secret.

● What is the right balance between the industry’s interest in holding information on hydraulic fracturing chemicals very close and the state’s need to understand and address risks to surface water, groundwater and public health?

● Can the state meet its responsibilities with something less than full disclosure of the chemicals used to fracture oil and gas wells?

Update on Injection of Drilling Waste in North Carolina

On Thursday, the Senate Commerce Committee approved a new version of Senate Bill 76 (the Domestic Energy Jobs Act) after adopting several amendments.  One amendment  somewhat narrowed  language in Section 4 of the bill that would for the first time allow underground disposal of waste in North Carolina.  The official amendment text is not yet  on the General Assembly website, but as it was read in committee  the amendment would allow  injection of  hydraulic fracturing fluid “and water produced from subsurface extraction” of natural gas resources.   The new phrase refers to water  that flows back out of the well after fracturing and continues to be produced (in smaller amounts) as long as the well  produces gas. It is a mixture of hydraulic fracturing fluid and groundwater; the quality of the water depends on the makeup of the fracturing fluid and groundwater conditions.

Underground  disposal of  flowback water from a natural gas well requires a federal Underground Injection Control (UIC)  permit under the Safe Drinking Water Act.  (Injection of  fluid to fracture an oil or gas well is exempt from UIC permitting.)  Like many other states,  North Carolina has  received a delegation of authority  from EPA to issue injection well  permits.  Under N.C. G.S. 87-88(j), injection must be approved by the state’s Environmental Management Commission (EMC), which also has the authority to  adopt rules for well construction and injection.   Since state law   prohibits underground injection of  waste, the EMC has not adopted  standards for waste disposal wells.

To  keep  the delegated injection well permitting program,  North Carolina will have to assure EPA  that the change in state law will not allow contamination of underground drinking water supplies.  States that  permit  injection of flowback water from oil and gas operations (or other types of waste)  usually adopt some version of the  federal rule language  that prohibits injection into an underground source of drinking water if  it  could cause a violation of  federal drinking water standards or  health  problems. Those states  also  adopt specific rules on  location, construction and use of waste injection wells to make sure the general standard can be met.  For one example, see the  Texas rules for underground injection of water from drilling operations.

Questions that arose in committee discussion (with my additional comment in italics below):

Does the law require the water from a drilling operation to be reinjected on the same site?  Response  in committee – No.

     SmithEnvironment: Water from a drilling operation would not be injected into  an area that could produce gas; injection wells either go into an area off-site that doesn’t have a gas resource or  in some cases an old gas well that is no longer producing will  be converted to a disposal well.

Would the language allow injection of water from drilling operations in other states?  Response in committee — That is not the intent, but the language may need to be clarified.

Can the Mining and Energy Commission adopt rules on injection of water from drilling operations? Response in committee — Yes,  the Mining and Energy Commission has the authority to adopt rules.

     SmithEnvironment:   Under the state’s federally delegated injection well permitting program, the Environmental Management Commission  adopts rules for injection wells and also has permitting responsibility.  That hasn’t changed. The 2012 hydraulic fracturing legislation  gave the Mining and Energy Commission authority to regulate  production wells, but not waste disposal wells (which were still prohibited).

 

Underground Injection of Wastewater from Natural Gas Operations

Senate Bill 76 changes key provisions of  hydraulic fracturing legislation adopted by the N.C.  General Assembly just eight months ago.  Section 1 of the bill has already attracted attention because  it would allow  the Department of Environment and Natural Resources and the Mining and Energy Commission to begin issuing permits for hydraulic fracturing on March 1 2015 without any further action by the General Assembly – whether adequate fracking rules are in effect or not.

Section 4 of the bill has gotten less attention, but it  may  make  the most significant change in state environmental law.   N.C. law  has long prohibited underground injection of waste because of the risk of  contaminating drinking water supplies. (See  N.C.G.S. 143-214.2) The General Assembly amended the law  in 2012 to make it clear that fluids could be injected  to produce gas by hydraulic fracturing, but kept the prohibition on  injection of  waste.  As amended  by Session Law 2012-143, the law allows injection of  “hydraulic fracturing fluid for the exploration or development of natural gas resources”. Senate Bill 76  proposes to change the law again — this time in a way that appears to allow  underground disposal of wastewater from drilling operations. The  proposed language would allow injection of any “fluid associated with the exploration, production or development of natural gas resources”.

Since the Senate Bill 76 language does not put any limitations on injection of drilling  fluids (including drilling waste), it appears to be inconsistent with  federal Safe Drinking Water Act requirements.  U.S. Environmental Protection Agency rules under the Safe Drinking Water Act allow waste injection wells to be permitted only  where injection  can be done without contaminating groundwater that is suitable for drinking water supply.

Underground injection of drilling waste is a common practice in some oil and gas states, but DENR’s 2012  hydraulic fracturing study recommended against allowing underground injection of drilling waste in North Carolina.  Section 4 of the N.C. Oil and Gas Study talks about the conditions that could make underground injection of waste more risky here than in other gas producing states.  Among the reasons — North Carolina geology makes  it  more  difficult to insure that  waste injected into the  fractured bedrock of the shale region will not move into underground drinking water supplies.