055-4 Wyo. Code R. § 4-1
(a) These rules are intended to protect human health and the environment by avoiding contamination of the soils and underground and surface waters at drilling or producing locations. Applications to construct pits, provided for in these rules, shall be approved if the pit will not cause the contamination of surface or underground water, and endanger human health or wildlife. Approval by the Commission of applications for permits for reserve or produced water pits does not relieve the Owner or Operator of the obligation to comply with the applicable federal, local, or other state permits or regulatory requirements.
(b) The Commission exercises its regulatory authority over the construction, location, operation, and reclamation of oilfield pits within a lease, unit or communitized area which is used solely for the storage, treatment, and disposal of drilling, production and treater unit wastes. The following pits are subject to this regulation:
(c) Permits. In addition to the permits required by the Commission and the Bureau of Land Management, the following agencies may also have authorities over the management of oil field wastes:
(d) Oil and Gas Commission Pit Permits. No retaining pit or below-grade structure used for the containment of fluids, as defined in this section, shall be constructed unless Form 14A (Application for Permit to Construct and Use Earthen Pit for Retention of Produced Water) or 14B (Application for Permit to Construct and Use Earthen Pit for Temporary Use, or Reserve Pit), has been submitted to and approved by the Supervisor. The Commission shall not approve any application, either Form 14A or 14B until the applicant has demonstrated compliance with the requirements of the Split Estates Act, if the application is subject to the Split Estates Act, as contained within Chapter 3, Section 8(d) of these rules.
(e) Owners or Operators of produced water retaining pits in operation prior to June 1, 1984, may continue to use such pits as long as the operation conforms to the current requirements of new pits. Owners of existing pits shall be responsible for providing the information included on Form 14A upon request of the Supervisor.
(f) The Supervisor may administratively approve fieldwide or areawide applications covering the standardized construction and operation of earthen retaining pits.
(g) Optional Form 18 (Soil & Groundwater Information) is provided for the Owner's/Operator's use, if they choose, to supplement Forms 14A and 14B to record and document shallow groundwater and subsoil types when they drill shallow holes such as the rat hole, mouse hole or conductor on the drill site. Form 18 can be used to demonstrate that a well is not in a critical area where groundwater is at a depth of less than twenty feet (20') or in an area that has permeable subsoil.
(h) Centralized Pits. Owners or Operators must obtain approval of the Supervisor for the location, construction and closure of noncommercial centralized pits located within a lease, unit, or communitized area used for field operations. Requirements may be more stringent than individual reserve or produced water pits depending on pit size, waste type, migratory bird protective measures, mosquito control with the county weed and pest control board guidance in the county where operations are located, and location. Applicants, upon request of the Supervisor, shall provide additional notice, plats and plan views, and information relative to the location of water supplies, residences, schools, hospitals, or other structures where people are known to congregate, site security, groundwater monitoring and leak detection. These permits will be issued for a term of five (5) years and may be renewed at the discretion of the Supervisor.
(i) Emergency Pits. Prior to construction, permanent emergency pits must be approved on Form 14B (Application For Permit To Construct and Use an Earthen Pit for Temporary Use, or Reserve Pit). Within twenty-four (24) hours of the first business day after construction of a temporary emergency pit or use of a permanent emergency pit, the Owners or Operators shall verbally advise the Supervisor of the existence of the pit and of the estimated time it will be in use.
(j) Reserve Pits. Form 14B must be submitted and approved in conjunction with an Application for Permit to Drill (Form 1). Approval of this permit must be obtained before drilling commences. The staff must be provided at least one (1) working day to evaluate the location (for distance from surface waters, depth to useable ground water, soils, distance from human habitation, etc.) and to evaluate the fluids which potentially will be retained in the pit (for types of drilling and completion fluids proposed for use, for presence of salt sections, and for the length of time the pit will be in use, etc.). The Commission may request additional information to complete its evaluation. Owners and Operators using closed systems who wish to use a pit to receive drill cuttings must apply for and receive permission to construct on Form 14B.
(k) Permits are valid for a term of one (1) year from the date of issuance unless an extension has been approved for the Application for Permit to Drill (Form 1) and for as long as the permit conditions are met. Falsification of information on the application or filing of an incomplete application will result in automatic denial of the request.
(l) Workover and Completion Pits in Critical Areas. Approval of workover and completion pits proposed to be constructed in locations meeting the definition of pits in critical areas must be applied for and obtained on Form 14B prior to their construction and use.
(m) Application May be Done in the Following Manner:
(n) If the Owner or Operator complies with the approved Form 14B terms and conditions, no further approval to construct and use workover or completion pits will be required for those well sites. However, subsequent reporting, within thirty (30) days of completion of operations on Form 4 (Sundry Notice), is required each time a pit is constructed and used. Alternative reporting requirements such as annual reporting may be approved by the Supervisor.
(o) Workover and Completion Pits in Non-Critical Areas. Workover and completion pits proposed to be constructed in locations not meeting any of the criteria listed in the definition of Pits in Critical Areas, Chapter 1, Section 2(nn) of these rules, will require either:
(p) General Information for Workover and Completion Pits. Upon review of Form 14B applications, the Commission staff will evaluate well locations to determine if their proposed siting is in a critical area (for distances from surface waters, depth to useable groundwater, soils, distances from human habitation, etc.). In the event construction is approved, special precautions or operational restrictions may be required by the Supervisor at these well facilities in order to avoid contamination of groundwater and surface water at the well location.
(q) Workover Pits should retain only Resources Conservation and Recovery Act (RCRA) exempt wastes. Other wastes should be managed in tanks for later recycling, reuse, or proper disposal. Owners or Operators should design workover or completion procedures so that additives will be expended while correcting the down-hole problems. Workover and completion pits shall be open only for the duration of operations and must be closed within thirty (30) days after the operation is complete.
(r) Produced Water Pits. Form 14A must be submitted and approved prior to use of a produced water pit. The Commission may request additional information to determine if the proposed pit location meets the definition of Pits in Critical Areas, Chapter 1, Section 2(nn).
(s) Below Grade Structures (Tinhorns). For the purpose of its regulation, the Commission requires below grade structures (including tinhorns) used to receive oil, condensate, or produced water, to be applied for on Form 14A. Construction must be done in accordance with good engineering practice and the staff must be provided the opportunity to inspect prior to any use. A written monitoring program for all permitted below grade structures must be submitted and approved by the staff.
(t) Marking. The Owner/Operator shall mark each pit in a conspicuous place with his name and the legal description of the location of the pit and shall take all necessary means and precautions to preserve these markings. Exempted from this requirement are pits in close proximity to injection or producing wells marked in accordance with Chapter 3, Section 19.
(u) Location. When any retaining pit is located in an area with a high potential for communication between the pit contents and surface water or shallow ground water, or to provide additional protection to human beings when operations are conducted in close proximity to water supplies, residences, schools, hospitals, or other places where people are known to congregate, or to provide protection to livestock and wildlife, the Commission may require such modifications or changes in the Owner's/Operator's plans as it deems necessary including, but not limited to, running a closed system, lining the pit, installing monitoring systems and providing additional reporting, or any other reasonable requirement that will insure the protection of fresh water. In areas where ground water is less than twenty feet (20') below the surface, a closed system must be utilized for well drilling operations.
(v) Unlined pits shall not be constructed in fill. Pits of any kind shall not be constructed in drainages, or in the floodplain of a flowing or intermittent stream, or in an area where there is standing water during any portion of the year. Ground and surface water maps are available for review or consultation at the Commission, the U.S. Geological Survey (USGS), or the State Engineer's Office.
(w) Construction. Lining of pits with reinforced oilfield grade material, compatible with the waste to be received, will be required by the Supervisor or Commission under certain circumstances including, but not limited to, pits proposed to be constructed in areas defined as critical as well as on sites with sandy soils, shallow groundwater, in groundwater recharge areas, or sites immediately adjacent to the Green River or the Colorado River drainage and other sensitive environments or circumstances identified by the Commission. Pits proposed to be constructed in the Powder River Basin for percolation of water produced in association with the recovery of coalbed methane gas into shallow sands or aquifers may be considered by the Commission if the applicant can demonstrate their operation will comply with water quality standards of the Department of Environmental Quality. When required by Supervisor, the Commission staff will provide applicable information to the Department of Environmental Quality for their co-review. Pits constructed in fill or those used to retain oil base drilling muds, high-density brines, and/or completion or treating fluids must be lined. Pits constructed to retain produced water with a total dissolved solids concentration in excess of ten thousand milligrams per liter (10,000 mg/l) must be lined. The Supervisor, on a case by case basis, will determine if pits retaining water with a total dissolved solids concentration less than ten thousand milligrams per liter (10,000 mg/l) will be required to be lined. The Commission staff must be provided at least twenty-four (24) hours notice of commencement of construction and/or of closure of pits so that an inspection can be made. Additionally, the following construction standards for pits are required to be met or exceeded:
(x) Operation. Owners or Operators will take such reasonable measures to manage pits so that the pits are used solely for retention or disposal of fluids associated with the operation for which the pit was originally constructed and for which the permit was granted. Reserve pits cannot be used as production pits; separate pits must be constructed and permitted. Permits are granted taking into consideration the salinity, hydrocarbon content, pH, and other characteristics of the fluids which may be detrimental to the environment if they were to be directly applied to soils. Use of a pit by persons other than the Owner or Operator is prohibited unless approved by the Supervisor and by the Owner or Operator of the pit. Pits shall not receive, collect, store, or dispose of any wastes that are listed or defined as hazardous wastes and regulated under Subtitle C of RCRA, except in accordance with state and federal hazardous waste laws and regulations. The pit permit or approval is automatically canceled if these provisions are not met. See Appendix C of these rules for additional information.
(y) Unused commercial products shall not be disposed with exempt oilfield wastes. The commingling of any listed hazardous waste with the otherwise exempt pit contents may render the entire mixture a hazardous waste and results in closing the pit under the RCRA hazardous waste regulations. All reasonable efforts should be made to completely use commercial products. Products should be returned to the vendor if appropriate, or segregated from other wastes for management or disposal. Oil base muds must be segregated from water base drilling fluids because pit closure is complicated by their presence. Mixing and treating of oil based and water-based muds can be allowed with approval of the Supervisor. Rigwash may be routed to the reserve pit provided care is taken to avoid contamination of the pit contents by rig oil and other nonexempt wastes. See Appendix C of these rules for more information.
(z) Where feasible, Owners/Operators are encouraged to increase the use of solids removal equipment to minimize drilling fluid waste, where practical. The Commission encourages the recycling of drilling fluids and by administrative action approves the transfer of drilling fluids intended for recycling. When removed as a product for use in a drilling operation on another lease, drilling fluid is not classified as a waste. If federal leases are involved, the Owner or Operator must obtain the approval of the Bureau of Land Management (BLM). The Supervisor requires the following information be included on the Form 14B or on a Sundry Notice (Form 4) estimated volume, estimated date of transfer, mud recap, analyses which include at a minimum, pH, chlorides, and oil and grease. To protect shallow groundwater, drilling muds with chlorides testing in excess of 3,000 parts per million or those containing hydrocarbons cannot be used in drilling operations until after the surface casing has been set.
(aa) Trash and sanitary waste should be properly contained and hauled to approved disposal locations, not retained in or disposed of in pits on location or downhole. Owners/Operators should consult the county sanitarian and/or the Department of Environmental Quality regarding appropriate disposal of sanitary wastes.
(bb) All pits shall be fenced completely and for any produced water pit, workover, completions, or emergency pit found containing oil, sheens, condensate, other hydrocarbons or chemicals proven to be hazardous to public health, safety and welfare, or to wildlife, domestic animals, or migratory birds, the Owner or Operator shall have these fluids removed as soon as practical or in accordance with Chapter 4, Section 1(dd) of these rules. If timely fluid removal is not possible, the pit should be netted or otherwise secured in a manner that avoids the loss of wildlife, domestic animals, or migratory birds. Alternative methods of netting or securing pits may be authorized at the discretion of the Supervisor. See Appendix A for information relative to the Migratory Bird Treaty Act. Owners or Operators shall provide for devices on hydrogen sulfide flare stacks to discourage birds from perching. The Supervisor may make additional requests for security when operations are conducted in close proximity to residences, schools, hospitals, or other structures or locations where people are known to congregate. For reserve pits, see subsection (jj) of this section.
(cc) Blowdown, flare, and emergency pits cannot be used for long-term storage or disposal.
(dd) All retaining pits shall be kept reasonably free of surface accumulations of oil and other liquid hydrocarbon substances and shall be cleaned within ten (10) days after discovery of the accumulation by the Owner/Operator or notice from the Supervisor.
(ee) The Owner or Operator shall not pollute streams, underground water, or unreasonably damage or occupy the surface of the leased premises or other lands. At no time will the fluid contents of any pit be discharged or allowed to escape to the surface without prior approval through issuance of an NPDES permit by the Department of Environmental Quality (DEQ) and other required authorization. At no time will drilling fluids be discharged into live waters or into any drainages that lead to live waters of the state. If liquid products of wells cannot be treated or destroyed, or if the volume of such products is too great for disposal by the usual method of onsite natural evaporation and burial of solids, the Supervisor must be consulted and the liquids disposed of by an approved method.
(ff) Testing. For the purpose of its regulation of oilfield pits and wastes, the Commission recognizes and requires, when deemed appropriate, the following tests:
(gg) Soil borings and soil testing must be performed by an independent engineering or geotechnical soil testing company or laboratory according to sound engineering practice in accordance with established industry standards. The logs of all borings, together with associated laboratory testing to classify soils and to measure soil strength, permeability, and other related parameters shall be submitted to the Supervisor.
(hh) Sampling procedures are subject to review by the Supervisor because variations in sampling protocol allow differentiation of waste fluid compositions due to normal distribution.
(ii) Closure. If the pit is proposed to be closed through the usual method of onsite natural evaporation and subsequent burial of solids, if pit treatment procedures are going to be applied, or if closure plans have changed from the original proposal approved on Form 14A or 14B, or any time wastes are disposed off-site, a Sundry Notice (Form 4) must be submitted and approved prior to closure. Information relative to approved commercial disposal facilities is available from the DEQ Water Quality Division. Information relative to companies whose methods to chemically and/or mechanically treat pits have been approved by the Commission may be obtained from the agency. The Commission staff must be provided the opportunity to witness closure operations. Verbal notice at least twenty-four (24) hours prior to closure is required. Closure must be conducted in accordance with lease and landowner obligations and with local, state, and federal regulations:
(jj) For reserve pits containing oil, sheens, condensate, other hydrocarbons or chemicals proven to be hazardous to public health, safety and welfare, or to wildlife, domestic animals, or migratory birds, the Owner or Operator shall have these fluids removed as soon as practical. If fluid removal is not possible in a timely manner, the reserve pit shall be fenced completely and netted or otherwise secured at the time the rig substructure has been moved from the location in a manner that avoids the loss of wildlife, domestic animals, or migratory birds. Alternative methods of netting or securing pits may be authorized at the discretion of the Supervisor.
(kk) All trash, paper, and unused structures or equipment must be removed from the location upon completion of operations. With landowner consent, Owners/Operators may temporarily store equipment (such as drilling rigs) on a location while it awaits transfer. Reserve and produced water pits cannot be used for disposal of refuse, failed equipment parts, or unused chemicals. Proper closure of the pit is compromised by the inappropriate use of the pit for trash disposal and may result in revocation of the permit. Further, Owners/Operators are encouraged to choose chemical additives which are lower in toxicity or do not exhibit RCRA hazardous characteristics. See Appendix D for suggestions. Additionally, Owners/Operators are encouraged to refer to Material Safety Data Sheets provided by vendors as products are selected.
(ll) The Commission specifically prohibits the use of dispersants, wetting agents, surface reduction agents, surfactants, or other chemicals that destroy, remove, or reduce the fluid seal of a reserve pit and allow the fluids contained therein to seep, drain, or percolate into the soil underlying the pit.
(mm) Landfarming and landspreading must be approved by the DEQ. Jurisdiction over roadspreading or road application is shared by DEQ and the Commission. Roadspreading or road application is a process whereby wastes are incorporated into a roadbed, typically for beneficial use, with minimal environmental risk. The Commission is the agency responsible for permitting road applications of RCRA-exempt exploration and production wastes which include drilling fluids, produced water and produced water-contaminated soils, waste crude oil, sludges, and oil-contaminated soils inside the boundaries of a lease, unit, or communitized area. The roadspreading application shall include acceptable evidence of landowner consent and the information included on the Commission's Form 20. Landfarming, landspreading, and roadspreading shall be protective of human health and the environment and shall be performed in compliance with all other applicable State and Federal regulations and requirements.
(nn) The Commission may require testing of wastes and additional disposal requirements prior to closure of a pit if they have reason to believe exempt exploration and production wastes have been commingled with hazardous wastes, upon analysis of an Owner's/Operator's mud program, or in previously identified sensitive environments.
(oo) Commercial Treatment of Pits. Any person, corporation, or company desiring to chemically and/or mechanically treat pits in Wyoming must apply for and receive permission to do so from the Commission after a public hearing. Types of approved treatments include enhanced evaporation, solidification, centrifuging, etc. The Commission will approve those methods that can successfully demonstrate a capability to accomplish some or all of the following criteria:
(pp) An Operator or Owner wishing to treat pits for closure must submit to the Commission on a Sundry Notice (Form 4) a plan outlining the objectives that the treatment is designed to achieve (e.g., waste volume reduction, toxicity reduction/removal, chemical fixation, etc.). The Commission's approval will be based upon the selected method's demonstrated capability to achieve the objectives described in the sundry notice. Consideration must be given to applicable federal, local, or state permits or regulatory requirements when performing mechanical or chemical treatment of pit wastes. A list of approved methods and vendors is available from the Commission.
(qq) Reclamation. Reclamation of unused production pits or any other temporary retaining pits, including reserve pits, shall be completed in as timely a manner as climatic conditions allow. Production pit areas and reserve pits will be reclaimed after they have dried sufficiently following the removal of any oil, sheens, or other hydrocarbons, or if they contain chemicals harmful to wildlife, domestic animals and migratory birds, or if proven to be hazardous to public health, safety and welfare, and no later than one (1) year after the date of last use, unless the Supervisor grants an administrative variance for just cause and after Oil and Gas Conservation Commission staff inspection. Because their construction may be a benefit to landowners, pits used solely for the retention of water produced in association with the recovery of coalbed methane gas in the Powder River Basin may be left open with the approval of the Supervisor and subject to Chapter 3, Section 4(h)(ii) of these rules. A statement of acceptance which clearly indicates the surveyed location, precise size of the pit, and willingness on the part of the landowner to accept all future responsibility for the structure and its contents, accompanied by a current written cost estimate for pit closure prepared by a Wyoming registered professional engineer with expertise in surface pit remediation, must be provided to and accepted by the Supervisor. The landowner's signature on the statement of acceptance must be notarized.
(rr) Site rehabilitation should be in accordance with reasonable landowner's wishes, and/or resemble the original vegetation and contour of the adjoining lands. Where practical, topsoil must be stockpiled during construction for use in rehabilitation. All disturbed areas on state lands will be reseeded. Appendix F of these rules includes information on seeding. The Owner or Operator shall advise the Supervisor of the completion of reclamation of a production or reserve pit by submitting a Sundry Notice (Form 4).
(ss) One-Time Downhole Disposal. By formal order or by administrative action the Commission may approve of one-time disposal of a limited volume of fluid produced in the course of drilling operations from one specific well. This is not an operation designed for downhole disposal of drilling fluids from offsetting or additional wells. This application is not to be confused with the approval of a Class II well for underground disposal of water produced in association with the recovery of hydrocarbons under the Underground Injection Control Program. Disposal by injection shall not be initiated until such time as approval has been granted by the Commission.
(tt) An application for approval of reserve pit fluid injection shall demonstrate that water in the proposed disposal interval is in excess of ten thousand milligrams per liter (10,000 mg/l) total dissolved solids or has received an aquifer exemption under Chapter 4, Section 12 of these rules and that fresh water or Underground Sources of Drinking Waters (USDW) will not be influenced by the disposal operation. Data to support this finding shall include, but not be limited to, the following:
(uu) Upon completion of the work, the applicant must file a Sundry Notice (Form 4) summarizing the disposal operation.
(vv) The Commission or its staff may designate conditions other than those listed in this rule, as it deems necessary to ensure safe disposal of these fluids. The application shall be approved if the application for a permit is complete and if water in the proposed interval has total dissolved solids in excess of ten thousand milligrams per liter (10,000 mg/l) and fresh water or Underground Sources of Drinking Water will not be influenced by the disposal operation.
055-4 Wyo. Code R. § 4-1
Amended, Eff. 6/3/2015.