NMOCD PIT RULE

19.15.17 NMACEffective June 28, 2013

NMOCD Pit Rule

Case No. 14784 and 14785

Order No. R-13506-D

This rule covers all pits, closed-loop systems, below-grade tanks and sumps. Facilities under WQCC Discharge Plans are not exempt.

NMOCD Pit Rule

Major Changes 2009 – 2013 Below-grade tank now defined as > 5 bbl.

Capacity

Continuously flowing watercourse defined

Floodplain defined

New concept: “Life-form ratio” (re-vegetation)

More Changes2009 – 2013

New concept: “Low chloride fluids”

“Measurable” now defined

New concept: “Multi-well fluid management pit”

Definition of “significant watercourse” expanded and made more descriptive

Temporary pits may now be used for multiple wells

Still More Changes

Major Changes 2009 – 2013 Permit still required for pits, but below-grade tanks

are “registered” (district office)

Closed-loop systems require only notification of their use (district office)

Other than site-specific data may now be used to determine groundwater depth (modeling, cathodic well lithology)

Major Changes in the Pit Rule

Major Changes 2009 – 2013 Time limits for action on a permit now imposed on the

NMOCD

If using “low-chloride fluids” (<15,000 mg/L): A pit is now allowed where groundwater is at least 25

feet below the bottom of the pit Significant changes in setbacks

Below-grade tanks meeting standards now allowed where groundwater is at least 25 feet deep

Even More Major Changes

Major Changes 2009 – 2013 A temporary pit (on-lease) or burial trench (on lease)

may receive waste from another temporary pit (on-lease)

Soil beneath a BGT or drying pad shall be remediated to 600 mg/kg chlorides

Containments of only untreated fresh water are not temporary pits for the purposes of the rule

ALL PITS AND BELOW-GRADE TANKSSUMPS, CLOSED LOOP SYSTEMS

GENERAL REQUIREMENTS

NMOCD Pit Rule

19.15.17.9 Permit Application and Registration

Form C-144 is to be used to apply to the division for a permit to construct or use a pit or to register a below-grade tank May be filed by itself or included as an attachment to

a permit application for the facility where the pit or below-grade tank will be located

NMOCD Pit Rule

Pit construction requires a permit issued by the division. All pits must be lined.

The division may issue a single permit for all pits associated with a single APD.

Below-grade tanks installed after June 28, 2013 must be registered with the appropriate division office.

Closed-loop systems and sumps do not require a permit or registration, but the district office must be notified on the APD or C-103, or applicable BLM form of use of a closed-loop system.

NMOCD Pit Rule

Siting Requirements for Excavated Material Newly-excavated (non-contaminated) Distance from a continuously flowing, or significant

watercourse 100 feet or greater Distance from a lakebed, sinkhole or playa lake 200

feet or greater Distance from a wetland 100 feet or greater Outside a 100-year floodplain

19.15.17.11 Design and Construction Specs

General for pits, closed-loop systems, BGT’s, and sumps Must adequately contain liquids and solids

Topsoil must be stripped and stockpiled

Signs for pits and BGT’s must be present. Well signs are sufficient

Pits must be fenced to deter unauthorized access

Chain link (6 feet high) with barbed wire (2 strands) on top if pit located within 1,000 feet of an occupied permanent residence, school, hospital, institution or church

Permanent pits, MWFM pits, and open top tanks must be netted

NMOCD Pit Rule

19.15.17.12 Operational RequirementsGeneral

Prevent contamination of fresh water and protect public health and the environment

Recycle, reuse, reclaim or dispose of all drilling fluids according to division rules

No hazardous waste in a pit, closed-loop system, BGT or sump

Liner integrity compromised above the fluid level, repair or replace within 48 hours

Liner integrity compromised below the fluid level, remove all fluid above the leak within 48 hours and notify the district office in accordance with 19.15.29

NMOCD Pit Rule

Operational RequirementsGeneral (cont’d)

Inject or withdraw liquids in a manner that prevents damage

Prevent collection of surface water run-on

Maintain oil-absorbent boom to control unanticipated releases

NMOCD Pit Rule

19.15.17.14 Emergency Actions Permit not required

Emergency pits are to be constructed, to the extent possible given the emergency, in a manner consistent with the Pit Rule

Notify the district office ASAP

Emergency pits to be used only for the duration of the emergency

If longer than 48 hours, obtain district office approval

Close within 48 hours after use unless time period extended by district office

COLLECTION, RETENTION OR STORAGE OF PRODUCED WATER OR BRINE, AND NOT A

TEMPORARY PIT

PERMANENT PITS

NMOCD Pit Rule

Permanent Pit Used for collection, retention or storage of produced

water or brine

In use for a relatively longer period of time

Special construction requirements

Regulated by the Santa Fe office

Must be inspected on a regular basis

Siting Requirements for Permanent or MWFMP

Groundwater depth 50 feet or greater from bottom of pit

Distance from a continuously-flowing watercourse 300 feet or greater

Distance from any other significant watercourse 200 feet or greater

Distance from a permanent residence, school, hospital, institution or church 1,000 feet or greater

Siting Requirements for Permanent or MWFMP

Distance from a spring or fresh water well used for stock watering 500 feet or greater

Outside incorporated municipal boundaries unless municipality specifically approves

Outside defined municipal fresh water fields unless municipality specifically approves

Distance from a wetland 500 feet or greater

Outside an area overlying a subsurface mine

Outside an unstable area

Outside a 100-year floodplain

NMOCD Pit Rule

Temporary Pit Drilling or workover pit

May be used for one or more wells

Must be located at one of the associated drilling locations

Must be closed within six months from the date the operator releases the rig from the first well using the pit

INCLUDES DRILLING OR WORKOVER PITS, TO HOLD LIQUIDS AND MINERAL SOLIDS.

MAY BE USED FOR ONE OR MORE WELLS

TEMPORARY PITS

NMOCD Pit Rule

Temporary Pits (District office) Construction shall follow applicable liner mfg.

requirements

Permit application shall include: Operating/Maintenance procedures Closure plan Hydrogeologic data In the absence of groundwater data, operator can

provide a reasonable determination of groundwater depth approved by the appropriate district office

NMOCD Pit Rule

Temporary Pits (continued)

Operators may have standard pit designs approved by the OCD district office

These standard plans may then be incorporated, by reference, in multiple APD’s

Applications sent to the appropriate district office

Low vs. Non-Low Chloride Fluids

Temporary Pit Siting Requirements 19.15.17.10

Low-Chloride FluidsWater-based, <15,000 mg/L of

ChloridesNon-Low-Chloride Fluids

Groundwater must be greater than 25 feet below the bottom of the pit.

Groundwater must be greater than 50 feet below the bottom of the pit.

Must be located more than 100 feet from any continuously flowing watercourse, or any other significant watercourse.

Must be located more than 300 feet from any continuously flowing watercourse, or any other significant watercourse.

Must be located more than 300 feet from an occupied permanent residence, school, hospital, institution, or church.

Must be located more than 300 feet from an occupied permanent residence, school, hospital, institution, or church.

Must be located more than 200 feet from a spring or fresh water source.

Must be located more than 500 feet from a spring or fresh water source.

Low vs. Non-low Chloride Fluids

Temporary Pit Siting 19.15.17.10

Low-Chloride FluidsWater-based, <15,000 mg/L of

ChloridesNon-Low-Chloride Fluids

Must be located outside incorporated municipal boundaries, and outside of a defined municipal fresh water field unless agreed to by the municipality

Must be located outside incorporated municipal boundaries, and outside of a defined municipal fresh water field unless agreed to by the municipality

Must be located more than 100 feet from a wetland.

Must be located more than 300 feet from a wetland.

Must be located outside an area overlying a subsurface mine.

Must be located outside an area overlying a subsurface mine.

Must be located outside of an unstable area.

Must be located outside of an unstable area.

Must be located outside any 100-year floodplain.

Must be located outside any 100-year floodplain.

NMOCD Pit Rule

Design and Construction Specs – SpecificTemporary Pits

Must confine liquids and prevent releases

Foundations and interior slopes must be properly constructed

Must have a geomembrane liner, 20-mil LLDPE or equivalent

Minimize liner seams and orient them up and down, not across a slope

NMOCD Pit Rule

Design and Construction Specs – SpecificTemporary Pits (Cont’d)

Avoid excessive stress and strain

Geotextile underliner required where needed

Edges anchored in trench at least 18 inches deep

Protect from any fluid force or mechanical damage

Prevent run-on of surface water using berm, ditch proper sloping or other diversion

NMOCD Pit Rule

Design and Construction Specs – SpecificTemporary Pits (Cont’d)

Pit volume limited to 10 acre feet including freeboard (2 feet)

The part of a temporary pit used to vent or flare gas does not require a liner.

No free-standing liquids on the unlined portion

NMOCD Pit Rule

Operational RequirementsSpecific – Temporary Pits

To contain only drilling, completion or workover fluids and solids

No miscellaneous solid waste or debris

Remove any visible layer of oil from the surface immediately after cessation of drilling or workover operation

At least 2 feet of freeboard

NMOCD Pit Rule

Operational RequirementsSpecific – Temporary Pits (cont’d)

Daily inspection while the rig is on location

Weekly inspection thereafter, so long as liquids remain in the pit

Free liquids removed from a drilling or workover pit within 60 days after rig release

Free liquids removed from a pit used for cavitation within 48 hours after completing cavitation

(MWFMP)STORAGE, TREATMENT AND RECYCLING OF

STIMULATION FLUIDS AND FLOW-BACK WATER DURING DRILLING AND

COMPLETION OF MULTIPLE WELLS

MULTI-WELL FLUID MANAGEMENT PITS

Multi-Well Fluid Management Pit (MWFMP)

Storage, treatment and recycling of stimulation fluids and flow-back water during the drilling and completion of multiple wells

No waste disposal

May be located either on- or off- location

Remain in use until all wells associated with the permit are completed

Applications include a list of wells to be associated with the MWFMP

Requests for additional wells will go to hearing

NMOCD Pit Rule

Multi-Well Fluid Management Pits (District Office) Construction shall follow applicable liner mfg. requirements

Permit application (Form C-144) shall include: Operating and maintenance procedures A list of wells, with approved applications to drill, that will be

associated with the pit Closure plan Hydrogeologic data In the absence of groundwater data, operator can provide a

reasonable (district-approved) determination of groundwater depth

NMOCD Pit Rule

Multi-Well Fluid Management Pits (continued)

Standard designs may be used and incorporated by reference

Applications sent to the appropriate district office

NMOCD Pit Rule

Design and Construction Specs – SpecificMulti-Well Fluid Management Pits

Designed to confine liquids and prevent releases

Properly constructed foundation

Slopes no steeper than 2H:1V

Levee’s outside grade no steeper than 3H:1V

Anchor trench for liners required

Double-lined (60-mil HDPE, or 30-mil PVC) with leak detection

NMOCD Pit Rule

Design and Construction Specs – SpecificMulti-Well Fluid Management Pits

Orient thermally-sealed seams up and down, not across slopes

Leak detection system as specified in 19.15.17.11.J (8) or a division-approved alternative (district office)

Surface water run-on to be prevented

Multi-Well Fluid Management Pits

Operational Requirements

Contains only stimulation fluids, produced water used for stimulation and drilling, and flow back from multiple wells

No visible layer of oil (see definitions)

At least 3 feet of freeboard

Weekly inspections to include leak detection system

Remove all fluids within 60 days from cessation of stimulation operations associated with the MWFMP

(BGT)

BELOW-GRADE TANKS

NMOCD Pit Rule

Below-Grade Tanks Registered with the OCD district office Form C-144 Registration shall include:

Operating and maintenance procedures Closure plan Hydrogeologic data Reasonable (district-approved) determination of

groundwater depth Standard designs may be submitted and incorporated

by reference

Siting Requirements for a Below-Grade Tank

Distance from a continuously flowing or significant watercourse, lakebed, sinkhole, wetland or playa lake greater than 100 feet

Distance from a spring or fresh water well used for public or livestock consumption greater than 200 feet

Groundwater depth greater than 25 feet below the bottom of the excavation containing the BGT

NMOCD Pit Rule

Design and Construction Specs – SpecificBelow-Grade Tanks

Made of a material that is resistant to the tanks contents and to damage from sunlight

Properly constructed foundation Level base Free of rocks, sharp edges, or irregularities

Constructed to prevent surface water run-on and overflow

NMOCD Pit Rule

Design and Construction Specs – SpecificBelow-Grade Tanks (cont’d)

Options(a) Double-walled construction not required if the tank’s side

walls are visible and the bottom of the tank is elevated a minimum of 6 inches and the underlying ground is lined and sloped toward a location that is visible

(b) If side walls are not visible, double-walled with leak detection required

(c) A division-approved alternative (district office)

NMOCD Pit Rule

Design and Construction Specs – SpecificBelow-Grade Tanks (cont’d)

No retrofit required for single-walled BGT’s, that have visible sidewalls, existing prior to June 16, 2008 so long as they demonstrate integrity

Single-walled BGT’s existing prior to June 16, 2008, whose sidewalls are not visible, must be retrofitted or closed

NMOCD Pit Rule

Operational RequirementsSpecific – Below-Grade Tanks

No fluid run-on or run-off No measurable layer of oil Monthly inspections Document integrity annually Freeboard adequate to prevent overtopping Repair or close if integrity is lost Inspect for contamination under a BGT during work

required for compliance with this rule

NMOCD Pit Rule

Operational RequirementsSpecific – Sumps

Visually inspect annually Promptly repair or replace if necessary Maintain records of inspections See sump definition

BURIAL & RECLAMATION

CLOSURE

Closure, In-Place or Trench Burial

Groundwater depth 25 feet or greater below the bottom of the pit (must meet standards set forth in Table II)

Distance from a continuously flowing watercourse 100 feet or greater

Distance from any other significant watercourse, lakebed, sinkhole or playa lake 200 feet or greater

Distance from an occupied permanent residence, school, hospital, institution or church 300 feet or greater

Distance from a spring or water well used for stock watering 300 feet or greater

Siting for Closure, In-Place or Trench Burial

Outside incorporated municipal boundaries and outside of a defined municipal fresh water field unless the municipality specifically approves

Distance from a wetland 300 feet or greater

Outside the area overlying a subsurface mine

Outside an unstable area

Outside a 100-year floodplain

Table I and Table II Closure Criteria

Table I lists criteria for soils beneath Below-Grade Tanks, Drying Pads Associated with Closed-Loop Systems and Pits where contents are removed.

Table II lists closure criteria for burial trenches and waste left in place in Temporary Pits Depth to protectable water Chloride, TPH, BTEX, Benzene analyses

Table I Closure Criteria

Table II Closure Criteria

NMOCD Pit Rule

Design and Construction Specs – SpecificBurial Trenches

Properly constructed foundation

Geotextile under the liner if needed

Geomembrane liner, 20-mil LLDPE or equivalent

Orient seams up and down, not across, slopes

Secure the outer edges

NMOCD Pit Rule

19.15.17.13 Closure and Site Reclamation

Where wastes are destined for off-site facilities

Must have approved closure plan in place

Remove all contents, including liners

Test soils beneath the liner 5-point composite sample Additional delineation may be required if sample analysis exceeds

Table I of 19.15.17.13 NMAC If sample analysis does not exceed these parameters, backfilling may

commence

Closure and Site Reclamation

Burial in place or temporary pit/lined trench burial Must have approved closure plan in place

Remove and dispose of all free liquids

Remaining pit contents must be stabilized or solidified

Mixing ratio maximum is 3:1 clean soil to contents

5-point composite sample of contents, after stabilization

If concentration of contaminants does not exceed Table II of 19.15.17.13 NMAC, operator may continue with closure

If concentration exceeds Table II parameters, closure must proceed in accordance with 19.15.17.13.C (dig and haul)

NMOCD Pit Rule

Closure and Site Reclamation Burial in place or temporary pit/lined trench burial

Fold outer edges of the liner to overlap the waste

Install a geomembrane (20-mil LLDPE) cover on top

Cover this with a 4-foot uncontaminated soil cover as described in 19.15.17.13.H(3)

Re-vegetate the location in accordance with 19.15.17.13.H(5)

Closure and Site Reclamation

Burial in place or temporary pit/lined trench burial

If the operator has transferred the wastes and the liner to a burial trench or another temporary pit, a 5-point composite sample must be taken under the original temporary pit

Sample must be analyzed for the constituents shown in Table I of 19.15.17.13 NMAC

Additional delineation may be required by the district office if levels are exceeded

If contaminant levels are not exceeded, operator may begin backfilling

NMOCD Pit Rule

Closure Notice Surface owner notification is required for any in-place or

trench burial

Notify surface owner at least 72 hours, but not more than one week, prior to closure operation

Include well name, API number and location

Certified mail, return receipt requested

Retain this proof of notification

NMOCD Pit Rule

Closure Notice The appropriate district office must be notified of any

in-place or trench burial closure

Notify verbally, and in writing at least 72 hours, but not more than one week prior to closure operation

The NMOCD Santa Fe office (Environmental Bureau) must be notified of any cessation of operations at a permanent pit at least 60 days prior to cessation and a proposed schedule for closure must be provided

NMOCD Pit Rule

Closure Notice

Onsite burial on private land requires a deed notice to be filed with the appropriate county clerk

NMOCD Pit Rule

Closure Report and Burial Identification

Document all closure activities on a C-144

Due within 60 days of closure completion

Plat showing the location of the temporary pit used for closure, or the location of an onsite burial to be included on C-105

Steel marker to be placed at the center of an onsite burial

Closure Timing

Permanent pit – within 60 days of cessation of operations

Temporary pit – within 6 months from the date of rig release from the first well using the pit

Drying pad – within 6 months from the date of rig release

Below-Grade Tanks – liquids removed and disposed of within 60 days of cessation of operations – closure within 6 months

MWFMP – within 6 months of cessation of stimulation operations on all associated wells

Reclamation

Pits, trenches, drying pads, below-grade tanks, areas associated with a closed-loop system

Reclaim to a safe and stable condition

So that former location blends with the surrounding area

Restore to the condition that existed prior to oil and gas operations

Contouring and re-vegetation per 19.15.17.13.H(5)

Alternatives to the contouring and re-vegetation requirements must be approved by the district office and the surface owner.

Reclamation

Soil covers for closures shall be the background thickness of topsoil or one foot whichever is greater

Chloride level for the soil beneath a BGT or drying pad shall be less than 600 mg/kg per EPA method 300.0

Chloride level for the soil cover for burial in place or trench burial shall be at least 4 feet of uncontaminated soil with chloride concentration less than 600 mg/kg per EPA method 300.0

Soil covers shall be contoured to prevent erosion

Reclamation and Re-vegetation

Reclaimed as nearly as practicable to their original condition

Contour topsoil and subsoil to achieve erosion control

Re-seed in the first favorable growing season

Reclamation complete when life-form ratio of 50%, and total plant cover of 70% of pre-disturbance levels is achieved excluding noxious weeds

These requirements shall be superseded by other federal or tribal agencies if those requirements equal or exceed those specified in this rule

EXCEPTION HANDLED BY SANTA FEVARIANCE HANDLED BY DISTRICT OFFICE

EXCEPTIONS & VARIANCES

NMOCD Pit Rule

19.15.17.15 Exceptions and Variances “Exception” means authorization from the

division’s Santa Fe office to depart from the requirements of 19.15.17 NMAC.

“Variance” means authorization from the appropriate division district office to depart from the requirements of 19.15.17 NMAC. A variance may not be obtained where exceptions are required specifically by a provision of 19.15.17 NMAC.

NMOCD Pit Rule

Exceptions and Variances The Commission made a conscious effort to specify, in

the rule, whether a particular departure from the rule was an exception or a variance

Generally: Any departure from a requirement concerning permanent pits must be approved by the Santa Fe office

Generally: Any departure from any other requirement can be approved by the appropriate OCD district office

NMOCD Pit Rule

Exceptions and Variances In the few instances where the rule does not specify, it

is safe to assume that a departure is a variance, and can be handled by the district office

The district office may deem such a departure to be significant enough that it requires an exception

Specific procedures listed in rule to apply for exception or variance

NMOCD Pit Rule

19.15.17.16 Permit Approvals, Conditions, Denials, Revocations, Suspensions, Modifications or Transfers Division shall determine an application

administratively complete or provide written notice as to deficiencies within 30 days of receipt

If no written notice is received, operator may assume application is administratively complete. This does not mean the permit is approved.

NMOCD Pit Rule

19.15.17.16 Permit Approvals, Conditions, Denials, Revocations, Suspensions, Modifications or Transfers The division has a total of 60 days to approve, deny or

approve with conditions the application

If no action is taken by the division within 60 days, application is deemed denied

Operator may apply for a hearing

NMOCD Pit Rule

19.15.17.16 Permit Approvals, Conditions, Denials, Revocations, Suspensions, Modifications or Transfers The division may impose conditions for approval

The division must notify the operator in writing if application is denied

The operator may apply for a modification of a permit

NMOCD Pit Rule

19.15.17.16 Permit Approvals, Conditions, Denials, Revocations, Suspensions, Modifications or Transfers The division may revoke, suspend or impose additional

conditions upon discovery that the operator is in material breach of any applicable statutes or rules

Operator to be notified by certified mail, return receipt requested of any intended revocation, suspension or imposition of additional conditions

Operator may request a hearing on this matter within 10 days after receipt of such notification

NMOCD Pit Rule

19.15.17.16 Permit Approvals, Conditions, Denials, Revocations, Suspensions, Modifications or Transfers Permits shall not be transferred without division

approval

Division approvals shall be by written statement

Written statements include e-mail

NMOCD Pit Rule

Thank you for your time and attentionIf you have questions:

Hobbs District Office: 575-393-6161 Artesia District Office: 575-748-1283 Aztec District Office: 505-334-6178 Ed Martin: 505-476-3470