By Mella Mcewen

22-08-04

While oil companies are increasing their focus on protecting workers, they are also increasing their focus on protecting the environment.

"There's an emphasis on cleaning pipeline releases and an overall growing awareness the industry has that it is cheaper to care for a problem in advance, or to take preventive measures," said Britt Byerly, president of Nova Safety & Environment, which works with pipeline companies, trucking and other transportation companies who have crude or chemical spills. "We clean, treat and dispose of the spills to regulators' satisfaction," he said.

Recent legislation called for increases in pipeline inspections, and Byerly said the use of technology like "smart pigs" is helping detect faults in pipelines before they result in spills or, worse, explosions. But, he noted, his customers not only want to take care of a problem before something happens but they want it done in a cost-effective way.
"In the industry today, there is more emphasis oncost-effective ways to deal with an issue," he said. "After all, it doesn't generate revenue, it costs revenue. But the emphasis is on taking care of the problem, on preventive measures and training of truck drivers and pipeline operators."

As Morris Burns, executive vice president of the Permian Basin Petroleum Association is quick to point out, members of the oil and gas industry are "environmentalists, too. We breathe the air, we eat the crops, we feed them to our children and grandchildren. But we want environmental regulations to be realistic and strike a balance between the environment and industry."

His association, along with the Independent Petroleum Association of America and the Texas Independent Producers and Royalty Owners Association, have been embroiled in a lawsuit against the Environmental Protection Agency over proposed changes to regulations regarding Stormwater Runoff and Spill Prevention, Control and Countermeasures.

Lee Fuller, vice president, government relations, with the IPAA, explained that the industry is arguing that the EPA is trying to regulate the industry under the wrong section of the Clean Water Act by adding what he called Phase II permits, permits for facilities on one to five acres. Phase I permits are for facilities on five acres or more.

"From a pragmatic standpoint, the effect of the permitting rules was not evident to the industry because most oil facilities are on five acres or less," Fuller said.

The industry is also arguing that the way the regulators are interpreting the rules is devastating to the process of permitting and building oilfield facilities. According to Fuller, the EPA has extended until next March oilfield exemptions and industry representatives are working with the agency and outside analysts on analyses of the impact of the new rules on the industry.

The lawsuit over stormwater runoff is still pending, but there was a recent partial settlement of litigation over spill prevention regulations, prompting the EPA to extend deadlines for the regulated industries to prepare and update spill prevention, control and countermeasure plans.

Under the new proposed deadlines, companies would have until August 17, 2005 to amend existing SPCC plans and until February 18, 2006 to implement those plans. Facilities that go into operation between August 16, 2002 and February 18, 2006 must prepare and implement SPCC plans by that February 18, 2006 deadline while facilities that go into operation after February 18, 2006 must have SPCC plans prepared and implemented before they begin operations.

Burns said he helped initiate a meeting with EPA Region 6 officials recently in Dallas in regards to the two issues and said he was pleased with the results.

"Anytime they don't tell you to go away and slam the door, it's good," he said. EPA officials and industry representative "got into good discussions," Burns said. "And another thing that impressed me is that they said Region 6 has the most oil and gas operations in the country and they want to take a leadership role in Washington because they work with oil and gas so closely."

The fact the EPA is willing to extend deadlines and talk with the industry, he said, means the agency is "truly looking at these changes" and how they could impact the industry.

Source: MyWestTexas