Recommendation to Adopt Water Quality Rules in Response to S.L. 2012-143

Recommendation to Adopt Water Quality Rules in Response to S.L. 2012-143 EVAN KANE, DWR KEN PICKLE, DEMLR JON RISGAARD, DWR 1

Session Law 2012-143 Ratified in July 2012 Created Mining & Energy Commission Updated statutory regulations of oil & gas activities Directed Environmental Management Commission, Commission for Public Health, and Mining & Energy Commission to adopt necessary rules by January 1, 2015 2

EMC Rulemaking Responsibilities Stormwater control for oil & gas exploration and development sites; Regulation of toxic air emissions from drilling operations; matters within its jurisdiction that allow for and regulate horizontal drilling and hydraulic fracturing for the purpose of oil and gas exploration and development. 3

Proposed EMC Water Quality Rule Revisions Adopt: 15A NCAC 2H .1030 New Stormwater rule Amend: 15A NCAC 2T Wastes not discharged to surface waters 2T .0113 Permitting by Regulation 2T .1001 Closed-loop recycle 2T .1501 Soil Remediation 15A NCAC 2U Reclaimed Water 2U .0113 - Permitting by Regulation 4

Public Comment Process Draft rules published online and in NC Register June 2, 2014 Press release Comments accepted June 2 through August 1, 2014 20 persons submitted written comments Public hearing in Sanford, July 1, 2014 ~80 attendees 15 speakers 5

Selected Public Comments & Recommendations - Stormwater Address commingling of stormwater with wastes Recommendation: Modify .1030(a)(3) to clarify any discharges other than stormwater must be covered by separate permit Require Public Hearings on Stormwater Permits for O&G sites Recommendation: Modify .1030(b)(3) to allow Director to request public comment on permit application Require severe weather prep and response plans as part of a new Stormwater Pollution Prevention Plan Recommendation: Modify .1030(b)(6) to require analog to NPDES Stormwater Pollution Prevention Plan 6

Selected Public Comments & Recommendations - Stormwater Require written certification of BMP construction and require inspection by DENR before operation Recommendation: Modify .1030(c)(3) to require submission of certification 3 days before spudding the well 1 rainfall insufficient as basis for design Recommendation: Modify .1030(c)(4) to use only P90 rainfall as basis for design (~1.5 ) Specify TSS threshold per storm, rather than average % removal Recommendation: No change Add skimming requirement for structural BMPs Recommendation: No change 7

Selected Public Comments & Recommendations - Stormwater Require self-inspections similar to Construction Stormwater General Permit Recommendation: Modify .1030(c)(7) to add self-inspections of BMPs during the clearing and grading phase Extend rule coverage beyond well pad Recommendation: Add new .1030(c)(8) to extend rule coverage to access/haul roads to well pad Self-inspection/self-monitoring insufficient Recommendation: No change; DENR authorized by statute to inspect Specify fines and penalties Recommendation: No change; penalties authorized by statute 8

Public Comments - 2T & 2U Revisions Support for proposed revisions Recommendation: Be happy! Don t allow re-use of flowback water for hydraulic fracturing Recommendation: No change 9

Public Comments - Other EMC should adopt regulations for air emissions from oil & gas operations Response: Federal air quality rules applicable to oil & gas already adopted by reference in the NC air quality rules Response: EMC briefed on air quality regulations in November 2013 Require/implement air monitoring Response: Monitoring station in Lee County established by DAQ in November 2013 Don t allow landfilling of wastes from oil and gas operations Response: Solid waste regulations & permits set requirements for acceptance of industrial wastes 10

Final Recommendation Adopt proposed 15A NCAC 2H .1030 with recommended text changes Adopt proposed 2T & 2U rule revisions with no text changes 11

Hearing Officer Comments/Questions for Staff 12