FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative

FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative Entering Inspections and Evaluations into ICIS 12/20/2010 Purpose

This paper provides guidance to the regions for entering compliance inspections and evaluations into ICIS that are conducted for the FY 2011-2013 Energy Extraction Land Based Gas National Enforcement Initiative. The guidance includes:

 Background and rationale for entering inspections and evaluations into both ICIS and the official database of record (AFS, PCS, RCRAInfo), as well as compliance status and enforcement actions into the official databases of record  General ICIS Rules  ICIS Business Rules for entering inspections and evaluations  A table with various scenarios to show credit received, and methods to enter inspections and evaluations into ICIS

The information above will assist in mid- and end-of-year accounting. This paper also discusses various tracking and targeting tools that will be made available through the Online Tracking Information System (OTIS) to allow users to examine the universe of facilities (as known in national databases) with corresponding information about inspections, violations, SNC/HPV and enforcement. The information shown in OTIS focuses more on the targeting and transparency aspect of the program.

Background and Rationale for Entering Inspections/Evaluations into both ICIS and the Official Database of Record

There are two ACS commitments for the Energy Extraction Initiative that require collecting accurate data in ICIS for reporting purposes. These are:

 PBS-EE01 -- Number of evaluations/inspections conducted in any media at gas extraction and production sites (wells, compressor stations, gas plants) and at disposal sites (injection wells, lagoons, ponds, land application, etc.).

 PBS-EE03 -- Number of gas extraction and production sites (wells, compressor stations, gas plants) and associated disposal sites (e.g., injection wells, land application, etc.) "addressed" by enforcement or other regional actions where region has ensured compliance.

In order to show progress on the Initiative OECA needs to collect and report on these ACS commitments at mid-year and EOY. OECA also will use this information for targeting and program management purposes. As a result:

 The regions must enter all EPA inspections and evaluations associated with the Initiative into both the database of record (AFS, PCS, RCRAInfo) and ICIS. NOTE: Virtually all EPA inspections and evaluations are being entered to ICIS by the regions (see caveats below). If that is not the case, the regions must begin to enter the Energy Extraction inspections and evaluations into ICIS beginning October 1, 2010 (new fiscal year).

1 FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative Entering Inspections and Evaluations into ICIS 12/20/2010  By entering the inspections and evaluations into ICIS, OECA will be able to generate reports at mid-year and EOY listing all EPA inspections and evaluations conducted in all media programs that are associated with the Initiative. OECA also is building a “knowledge base” on the OTIS site, which will help regions and headquarters track and plan activities under the initiative.

 By entering compliance status data (violations, HPV, SNC) into the database of record, OECA will be able to better manage the initiative, as well as provide an informational and targeting tool that is updated monthly on OTIS through the knowledge base. 1. Regions also should enter the appropriate SIC or NAICS code with the site/facility data. 2. Please choose the appropriate code for the type of site/facility:  Crude Petroleum and Natural Gas – 1311; 211111  Natural Gas Liquids – 1321; 211112  Drilling Oil and Gas Wells – 1381; 213111  Oil and Gas Exploration Services – 1382; 213112 and 541360  Oil and Gas Field Services – 1389; 213112, 237120, and 238910 3. This information will facilitate accurate data integration on OTIS.

 The reports mentioned in the second bullet above would be used to collect information on the outcomes of the inspections/evaluations either: 1. Using a manual methodology similar to the FY 2008-2010 Storm Water Priority. A file will be sent with this guidance that provides the FY 2010 workbook used to collect the storm water information, or 2. Electronically by entering data in the ICIS Compliance Determination module.

General ICIS Rules * When entering inspections and evaluations or other compliance monitoring activities associated with the Initiative, the regions must select the “2011-- Energy Extraction – Land Based Gas Extraction and Production” item listed under the OECA National Priority drop down menu. * For multi-media inspections the regions need to continue to enter a separate inspection record for each media program inspected. * Regions need to follow the protocol used to add a facility if a specific facility/sites does not an have an FRS number. Many of the oil and gas well sites and associated disposal sites probably will not have an FRS number. * ICIS is the database of record for the following media programs (EPCRA, FIFRA, RCRA UST, TSCA, and CWA NPDES for states who have migrated to ICIS from PCS. Many UIC inspections are not entered into ICIS but are reported to the Office of Water UIC data base. * Regions must complete the Inspection Conclusion Data Sheet (ICDS) questions when entering EPA inspections or evaluations.

ICIS Business Rules The information below summarizes the current Business Rules associated with entering inspections and evaluations into ICIS. “Business Rules” are requirements the ICIS system uses

2 FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative Entering Inspections and Evaluations into ICIS 12/20/2010 to enforce entry of specific data. In this case, the Business Rules define specific requirements for what inspections and evaluations can be entered at the same facility and on the same day.

ICIS requires that the combination of following information must be unique for every inspection or evaluation entered in the database:

1. NPDES ID/Program Interest ID – May be an NPDES Permit or any other site record that is entered into ICIS. Entry of a site requires entry of a Name, Address, City, State, and Zip Code. Multiple sites may be associated with the same FRS Facility. This could occur when a single physical facility has multiple programmatic interests. 2. Compliance Monitoring Category – In ICIS, this means Conventional, Alternative, or Industrial User. 3. Compliance Monitoring Type – The specific type of inspection (e.g.: FCE, PCE). The list of Compliance Monitoring Types varies depending on the Statute. 4. Statute – Only one Statute can be entered for each inspection or evaluation (e.g.: CAA, CWA, etc.) However multiple Sections for the Statute may be entered. 5. Inspection/Evaluation End Date (Actual End Date) – Month, Day, Year the inspection/evaluation was conducted.

This means that for an inspection/evaluation to be entered into ICIS, one or more of the pieces of information listed above must be different. In other words, no inspection/evaluation record can be entered into ICIS if it is identical, for those five data elements, with another pre-existing inspection/evaluation record.

Table 1 below provides potential scenarios (not every scenario), credit received, and ICIS data entry requirements that could occur when regions enter inspections and evaluations into ICIS as for implementation of the Energy Extraction Land Based Oil and Gas Enforcement Initiative. These scenarios are based on information provided by Regions 3, 6, and 8 since they are actively involved in conducting inspections and evaluations under the Initiative (refer to Attachment 1).

Table 1

Potential Scenario Credit Received ICIS Requirements Multiple inspections and Inspections and evaluations ICIS Business Rules allow evaluations on the same day to would count toward the inspections/evaluations to occur on the different facilities and potentially ACS commitment. same day if they are associated with different companies. different facilities. Each entry would be counted as a separate inspection/evaluation. Inspections and evaluations at gas Single media inspections Single media inspections and plants and compressor stations, and evaluations would evaluations at these facilities can be e.g. Air (CAA Section 112 ®, 40 count toward the ACS entered into ICIS as long as they are at CFR Part 63 HH and HHH); commitment different facilities or on different days. CWA Section 402 or 404.

3 FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative Entering Inspections and Evaluations into ICIS 12/20/2010 Potential Scenario Credit Received ICIS Requirements Multiple inspections and Inspections and evaluations If multimedia inspections/evaluations evaluations conducted at a at the same well site for at conducted at a producing well site producing well site for more than multiple statutes would on the same day, they must be entered one statute, e.g., CWA, CAA, count toward the ACS as separate inspections/evaluations RCRA commitment (e.g.: CWA, CAA, etc.). Only one statute can be entered per inspection or evaluation. Inspections and evaluations Inspections and evaluations Each drilling pad that is inspected on conducted at more than one at the different well sites the same day at the same facility producing well site on the same operated either by the same would need to be associated with a day company or different separate facility name & address in companies would count order to be entered into ICIS. You toward the ACS cannot enter multiple inspections at commitment. Regions the same facility for the same statute should use a uniform (and type inspection). naming protocol for inspections conducted at well sites. Inspections and evaluations for Generally this would only Multiple Sections under a single more than one law/section at same count as one inspection or law/regulation can be entered on a facility on the same day evaluation since it does not single inspection/evaluation, but only frequently occur. one law/regulation (e.g.: CWA, CAA, However, if regions inspect etc.) can be entered for each or evaluate for more than inspection/evaluation at the same one law/section at the same facility on the same day. facility on the same day, separate inspection reports should be prepared and fully documented , e.g. CWA 402 and 404. Inspections and evaluations at Inspections and evaluations Each inspection or evaluation at a disposal sites associated with conducted at disposal sites disposal site would need to be producing well sites, e.g., associated with producing associated with a separate producing evaporation ponds, basins, UIC well sites count toward the well site with a facility name & wells, discharges to surface water, ACS commitment. The address in order to be entered into discharges to POTWs or examples provided may not ICIS. centralized water treatment encompass the entire list of (CWTs), etc. possible disposal sites.

Additional Information about Program System Data for use in OTIS (AFS, PCS, ICIS- NPDES, and RCRAInfo)

OECA expects that the OTIS Knowledge Base will provide two summary reports to be updated monthly. One report could provide standard time since last inspection, violation, SNC/HPV status, and enforcement actions for EPA and state activities that have been conducted over 5 years (inspections and enforcement) or 3 years (violations). Essentially, this is the same report shown in OTIS now, with a filter on facility SIC or NAICS code. OECA expects to develop a

4 FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative Entering Inspections and Evaluations into ICIS 12/20/2010 second report in OTIS to provide a fiscal year view of activities performed by the regional offices. The universe of facilities shown in this view again would be bound by the SIC/NAICS codes specified above. This new report will provide a running tally of what the region has done. It will only include data from the databases of record. OECA also is developing a new resource that brings in universe information from private business directories. Many of the facilities in this directory will not be in EPA databases of record. OTIS will be providing functionality to allow regions to compare the business directories to known, regulated facilities in the NPDES, CAA, and RCRA programs. It is important that if the region conducts activities at facilities that were previously unknown to EPA (meaning they are not in the databases of record), that an initial record be added to the appropriate database – which will allow tracking of inspection results, violation determinations, and enforcement.

5 FY 2011-2013 Energy Extraction (Land Based Gas) National Enforcement Initiative Entering Inspections and Evaluations into ICIS 12/20/2010 Attachment 1

The following information was provided by Regions 3, 6 and 8.

Region 3 Region 3 is currently developing a plan to conduct reconnaissance/inspections at drilling pads in various stages of completion. Additionally, we will continue to conduct evaluations when requested by cooperating federal or state agencies. We are not currently following a proactive plan or targeting scheme, inspecting facilities for compliance. Based on this experience we may face the following inspection scenarios:

Typical inspection at a drill pad, compressor station, gas plant, etc: - Multiple visits on the same day to different facilities and potentially different companies.

- gas plants and compressor stations more likely to be single media based on other regions experience: Air (CAA Section 112r or 40 CFR Part 63 HH and HHH, etc.; CWA Section 404, storm water, etc) - Drill pads may be multimedia based on current reconnaissance experience (404, storm water, air, etc.)

Atypical inspection but possible based on reconnaissance done to date: - more than one drilling pad/facility visited on the same day - inspecting and evaluating for more than one law/regulation at each facility on the same day - Because of the Total Dissolved Solids disposal issue in Region 3, the region could have inspections and cases at POTWs and other disposal sites.

Region 6

Region 6 inspects facilities for single media and could have multiple inspections on the same day for different companies. For example, Region 6 Air Toxics Program is currently inspecting a number of gas plants for violations of CAA Section 112r. The region has issued at least four AOs and intends to continue targeting gas plants based on its community based strategy. Typically these inspections do not have a water component. However, there are water issues at drilling pads; a completely different type of facility.

Region 6 may conduct multimedia inspections in FY2011 and have the same problems that Region 3 may have in counting multimedia inspections. That is, ICIS will only recognize one media for a multimedia inspection.

Region 8

Region 8 is also conducting single media inspections for the Air and UIC programs. The Air program is enforcing 40 CFR Part 63, Subparts HH, HHH, ZZZZ, etc. It is also conducting hundreds of inspections per year under the UIC program. Therefore, it too would have multiple inspections at different facilities, for different companies on the same day.