Oil and Gas Extraction (Synthetic-Based Drilling Fluids)

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Proposed Rule

Fact Sheet; February 1999

This proposed rule would amend the technology-based effluent limitations guidelines and standards for the discharge of pollutants from oil and gas drilling operations associated with the use of synthetic-based drilling fluids (SBFs) and other non-aqueous drilling fluids into waters of the United States. This proposed rule would apply to existing and new facilities in the offshore subcategory and Cook Inlet portion of the coastal subcategory of the oil and gas extraction point source category.

Background

The Agency is proposing effluent limitations guidelines and new source performance standards to amend portions of the Offshore and Coastal Subcategories of the Oil and Gas Extraction Point Source Category under the authority of the Clean Water Act (33 U.S.C. 1251 et seq.). The regulations are also being proposed pursuant to a Consent Decree entered in NRDC et al. v. Browner, (D.D.C. No. 89-2980, January 31, 1992) and are consistent with EPA’s latest Effluent Guidelines Plan under section 304(m) of the CWA. (See 63 FR 47285, September 4, 1998.) The processes and operations that comprise the offshore and coastal oil and gas subcategories are currently regulated under 40 CFR Part 435, Subparts A (offshore) and D (coastal). The final rule is scheduled for December 2000.

Benefits

Controlling the discharge of SBFs as proposed would reduce the discharge of SBFs by 11.7 million pounds annually. Compliance with this proposed regulation would also result in a cost savings to industry of over $7.1 million (post tax, 1997 dollars) per year, primarily based on using more efficient recovery technologies. Further, allowing rather than prohibiting the discharge of SBFs would substantially reduce non-water quality environmental impacts. Compared to the zero discharge option, EPA estimates that allowing discharge will reduce air emissions of the criteria air pollutants by 450 tons per year, decrease fuel use by 29,000 barrels per year of oil equivalent, and reduce the generation of oily drill cutting wastes requiring off-site disposal by 212 million pounds per year.

Additional Information

For additional information contact our SBF industrial contact.