STATE OIL AND GAS BOARD

GOVERNING SUBMERGED OFFSHORE LANDS OPERATIONS

ADMINISTRATIVE CODE

CHAPTER 400-2-8 SAFETY AND ENVIRONMENT

TABLE OF CONTENTS

400-2-8-.01 Survey Of Shallow Hazards

400-2-8-.02 Notification Of Fire Or Blow Out

400-2-8-.03 Pollution Prevention And Control

400-2-8-.04 Operations Involving Hydrogen Sulfide

400-2-8-.05 Transportation Of Wastes Associated With Oil And Gas Operations

400-2-8-.01 Survey Of Shallow Hazards. Unless otherwise approved by the Supervisor, an operator shall conduct a survey of shallow hazards, natural and manmade, within a one-quarter- (1/4-) mile radius of the proposed installation or operation of any mobile drilling facility, platform, or fixed structure. Unless otherwise approved by the Supervisor, such survey shall include a magnetic survey, a sub-bottom profile, and a sparker or shallow seismic survey. The purpose of this survey is to document the location of specific areas on, and immediately underlying the waters floor that would not support a drilling or production facility; that may contain shallow hydrocarbons; and other conditions that could be a potential safety hazard. For this reason, the operator shall submit a summary report with drawings on eight-and-one-half (8½) inch X eleven (11) inch plats showing water depths and the location and aerial extent of all shallow hazards, including pipelines and other developments, with respect to the proposed operation. The report shall also include a listing of safety measures to accommodate any identified potential safety hazards that may occur as a result of the proposed operation. Two (2) copies of the shallow hazards report shall be submitted to the Supervisor with the application for a drilling permit as required by section (2) of Rule 400-2-2-.01,relating to Permitting of Wells, or in accordance with section (3) of Rule 400-2-6-.09, relating to Platforms and Fixed Structures, whichever is appropriate. If a new installation or operation is proposed in an area where an existing survey of shallow hazards has been conducted, then the Supervisor may require a new survey of shallow hazards.

Author: State Oil and Gas Board

Statutory Authority: Code of Ala. 1975, §§9-17-1, et seq.

History: New Rule: Filed April 11, 2000; effective May 16, 2000.

400-2-8-.02 Notification Of Fire Or Blow Out.

(1) The Supervisor shall be notified immediately of a fire or blow out that occurs at or is related to the operation of any well, production, processing, storage, or Class II injection facility, underground storage facility, offshore plant, used in operations including but not limited to drilling, completing, testing, recompletion or reworking, producing, processing, storing, injecting, or metering.

(2) Such report shall be made immediately to the Board and shall contain information pertaining to a description of the incident; location by offshore tract or section, extent of damage to life and environment, and corrective action taken.

(3) If deemed necessary by the agent of the Board upon investigation, Form OGB-27, Notification of Fire, Spill, Leak or Blow Out Incident Report, shall be submitted to the Board within ten (10) days.

(4) The operator shall immediately take the appropriate action to extinguish fires and bring blow outs under control. Additionally, the operator shall notify other appropriate governmental agencies of the incident.

Author: State Oil and Gas Board

Statutory Authority: Code of Ala. 1975, §§9-17-1, et seq.

History: New Rule: Filed April 11, 2000; effective May 16, 2000.

400-2-8-.03 Pollution Prevention And Control.

(1) The operator shall conduct oil and gas operations so as not to pollute in any way that would harm the environment, including plant and animal life and water resources. If pollution occurs, the operator shall immediately take the appropriate action to control and effectively remove the pollutant. Additionally, the operator shall notify other appropriate governmental agencies of the incident. If the waters are polluted by the drilling or production operations conducted by or on behalf of the operator, and such pollution threatens human life, wildlife and aquatic life, or damages public or private property, the control and effective removal of the pollutant shall be at the expense of the operator. Upon failure of the operator to control and remove the pollutant, the Supervisor shall have the right to accomplish the control and removal of the pollutant in accordance with any established contingency plan for combating oil spills or by other means at the cost of the operator. Such action shall not relieve the operator of any responsibility as provided herein.

(2) The operator’s liability to third parties, other than for cleaning up the pollutant in accordance with section (1) of this rule shall be governed by Section 9-17-19 of the Code of Ala. 1975.

(3) No liquid or solid substances resulting from any oil or gas drilling or production operation shall be discharged into the waters until seven (7) days after two (2) copies of appropriate permit(s) and written statement(s) of agreement with the appropriate governmental agencies approving such discharge(s) have been filed with the Supervisor.

(4) Rubbish and Debris.

(a) Materials, equipment, tools, containers, and other items used in offshore waters, which are of such shape, or configuration that they are likely to snag or damage fishing devices shall be handled and marked as follows:

1. All loose material, small tools, and other small objects shall be kept in a suitable storage area or a marked container when not in use and in a marked container before transport over offshore waters;

2. All cable, chain, or wire segments shall be recovered after use and securely stored until suitable disposal is accomplished;

3. Skid-mounted equipment, portable containers, spools or reels, and drums shall be marked with the owner's name prior to use or transport over offshore waters; and

4. All markings must clearly identify the owner and must be durable enough to resist the effects of the environmental conditions to which they may be exposed.

(b) Disposal of equipment, cables, chains, containers, or other materials into offshore waters is prohibited.

(c) Any of the items described in section (4)(a)1 of this rule that are lost overboard shall be recorded on the facility's operations report, as appropriate, and reported to the Supervisor.

(5) Class II Underground Injection Control Operations. Underground injection of brines or other fluids is subject to Rule 400-4-1-.01, et seq., relating to Rules and Regulations of the State Oil and Gas Board of Alabama Governing Class II Underground Injection Control Operations.

(6) Drilling and Production Facilities.

(a) Curbs, gutters, drip pans and drains shall be installed in deck areas in a manner necessary to collect all contaminants not authorized for discharge and maintained on all platforms, fixed structures, and mobile drilling facilities to collect and pipe all contaminants to a properly designed, operated and maintained sump system that will prevent discharge of such contaminants into the waters.

(b) All production facilities, such as separators, tanks, treaters, and other equipment, shall be such as are necessary to control the maximum anticipated pressures and production of hydrocarbons and associated sulfur; and shall be maintained at all times in a manner necessary to prevent pollution.

(c) The requirements of section (6)(a) and (b) of this rule shall not prohibit the discharge of certain substances, provided such discharge is approved in accordance with Rule 400-2-8-.03(3)

(d) The operator’s personnel shall be thoroughly instructed in the techniques of equipment maintenance and operation for the prevention of pollution. Other personnel shall be informed in writing, prior to executing contracts, of the operator’s obligations to prevent pollution.

(7) Inspection and Reports. The operator shall comply with the following pollution inspection and reporting requirements:

(a) Pollution Inspections.

1. Manned facilities shall be inspected daily.

2. Unattended facilities, including those equipped with remote control and monitoring systems, shall be inspected at frequent intervals. The Supervisor may prescribe the frequency of inspections for these facilities.

(b) Pollution Reports.

1. All spills or leakage of oil and liquid substances not approved for discharge shall be reported orally to the Supervisor or his representative within the following time limits:

(i) By noon of the next business day, if spill or leakage is less than one (1) gallon in the aggregate, or

(ii) Immediately, if spill or leakage is more than one (1) gallon in the aggregate. Within fifteen (15) days after reporting a spill or leakage required in (ii), Form OGB-27, Notification of Fire, Spill, Leak, or Blowout Incident Report shall be filed with the Supervisor describing the location, size, and cause of such spill or leakage, action taken, and the effectiveness of removal and cleanup operations.

2. The operator shall immediately take the appropriate action to clean up spills and repair leaks. Additionally, the operator shall notify other appropriate governmental agencies of the incident.

3. Operators shall notify each other upon observation of equipment malfunction or pollution resulting from another operator’s operation.

(8) Pollution Control Equipment and Materials. Pollution-control equipment and materials shall be maintained by, or shall be available to, each operator at an offshore location or at a shore base location. The equipment shall include containment booms, skimming apparatus, cleanup materials, chemical agents and other items needed for the existing environmental conditions, and shall be available prior to the commencement of drilling and production operations. The equipment and materials shall be inspected monthly and maintained in a state of readiness for use. A record of the inspections shall be maintained at the site at which the equipment is stored and maintained.

(9) Area Contingency Spill Response Plan. Unless previously filed with the Supervisor, an operator shall submit two (2) copies of the area contingency spill response plan that has been approved by the appropriate agency, or agencies, having such authority. Unless required otherwise, such plan shall be submitted to the Board within fifteen (15) days after it is approved, with an attached written statement verifying approval of said plan. Any modifications to the plan shall be submitted to the Supervisor.

Author: State Oil and Gas Board

Statutory Authority: Code of Ala. 1975, §§9-17-1, et seq.

History: New Rule: Filed April 11, 2000; effective May 16, 2000; Amended: Filed February 5, 2001; effective March 12, 2001.

400-2-8-.04 Operations Involving Hydrogen Sulfide. This rule shall apply to all operations that encounter or could reasonably expect to encounter oil or gas containing hydrogen sulfide. Preventative measures shall be taken to control the effects of hydrogen sulfide (H2S) at all operations where hydrogen sulfide concentrations in the system are equal to one hundred (100) parts per million (ppm) or more. Such operations shall include, but may not be limited to drilling, completion, recompletion or reworking, testing, producing, metering, cleansing, processing, storing, transporting, and injecting.

(1) Operator Responsibility.

(a) Each operator shall conduct operations in accordance with section (2) through (7), and (10) below. Section (8) requires each operator to file a Certificate of Compliance for each operation that encounters or could reasonably be expected to encounter oil or gas containing hydrogen sulfide.

(b) Any person or persons submitting an application for a change of operator pursuant to Rule 400-2-2-.05 for an existing sour gas well or platform shall comply with the requirements of this rule.

(c) Exemptions to section (2) through (7) may be obtained by filing a Certificate of Compliance with the Supervisor as directed under section (9) below.

(d) Variances to or waivers from the specifications of this rule may be granted by the Supervisor upon showing a good cause by the operator.

(2) Safety Program. A safety program shall be established and maintained to promote safety procedures. All personnel that are assigned, contracted, or employed shall be instructed as to hazards of hydrogen sulfide, including physiological responses and the application of first aid to victims of hydrogen sulfide exposure.

(3) Equipment and Materials. All equipment and materials that will be exposed, or can reasonably be expected to be exposed to hydrogen sulfide, shall be designed and maintained to resist damage caused by hydrogen sulfide stress cracking, embrittlement, or corrosion. The design shall be in accordance with applicable National Association of Corrosion Engineers (NACE) Standards.

(4) Warning Systems.

(a) Warning Signs and Security.

1. For an offshore facility, the operator shall post, where permitted by law, clearly visible warning signs on public streets or roads inside the radius of exposure.

2. For an offshore facility, the operator shall display clearly visible warning signs on at least two sides of the rig and at points of access to the rig or platform.

3. In populated areas such as towns and cities where the use of signs is not considered to be acceptable, an alternate warning plan may be approved upon written request to the Supervisor.

(b) Monitors and Alarms.

1. Unless otherwise approved by the Supervisor, each drilling, workover, testing, or offshore facility shall have a hydrogen sulfide monitoring system which activates visible alarms when the concentration of hydrogen sulfide exceeds ten (10) parts per million (ppm) in air and audible alarms when the concentration of hydrogen sulfide exceeds twenty (20) ppm in air. This system shall be capable of sensing a minimum of five (5) ppm in air.

(i) As a minimum, hydrogen sulfide sensors for offshore drilling and workover rigs shall be located at the rig floor, bell nipple, shale shaker, mud pits, and living quarters.

(ii) For drilling operations, this monitor and alarm system shall be on site and operational prior to penetrating the hydrogen sulfide bearing zone in accordance with the time specified in the contingency plan. Said equipment shall be on site and operational prior to commencing all other operations involving hydrogen sulfide.

2. The operator of each production well or platform shall install and maintain a monitor and alarm system at the well site or platform designed to detect the continuing escape of hydrogen sulfide.

3. The operator of each unplugged inactive well shall establish safety procedures, as approved by the Supervisor, which are designed to prevent the undetected continuing escape of hydrogen sulfide.

4. The operator of each production well, injection well, processing facility, or offshore plant facility shall install and maintain in operable condition safety devices to include automatic shutdown devices designed to prevent the undetected continuing escape of hydrogen sulfide. Safety devices shall be maintained within industry standards.

(c) Wind Direction Equipment. Wind direction equipment shall be installed at prominent locations on or near the drilling, workover, test, or offshore facility to indicate the wind direction at all times and the safe upwind areas in the event hydrogen sulfide becomes present in the atmosphere.

(d) Danger Signals. Danger signals consisting of signs and flags shall be displayed in a manner visible to all traffic approaching the facility. All signals shall be illuminated under conditions of limited visibility when in use. If illumination is not feasible, signals must be constructed of reflective material or covered with reflective paint so they will be readily visible from other light sources such as automobiles. Danger signals shall be displayed to indicate the following operational conditions and requirements:

1. The color green shall indicate possible danger, when the concentration of hydrogen sulfide is less than ten (10) parts per million (ppm) in air;

2. The color yellow shall indicate moderate danger, when the concentration of hydrogen sulfide reaches ten (10) ppm in air. If the concentration of hydrogen sulfide reaches twenty (20) ppm in air, breathing apparatuses shall be worn by all personnel and all non-essential personnel shall proceed to the safe briefing areas;

3. The color red shall indicate extreme danger, when the concentration of hydrogen sulfide reaches fifty (50) ppm in air. All non-essential personnel shall be evacuated, immediate notification shall be given to local civil authorities, and traffic in the immediate vicinity of the facility shall be diverted. The State Oil and Gas Board and other appropriate governmental agencies shall be notified as soon as possible when conditions of extreme danger exist.

(5) Training Requirements.

(a) Each operator whose operations are subject to this rule shall provide training of personnel responsible for his operations. An attendance list of these training sessions shall be maintained by the operator.

(b) The training of personnel shall include the following elements:

1. Safety precautions;

2. Operation of safety equipment and life support systems;

3. Corrective action and shutdown procedures;

4. Effect on metal components of the system.

(6) Personnel Safety Equipment.

(a) Breathing apparatuses shall be provided and be readily accessible. A minimum requirement shall be to provide self-contained breathing equipment for all personnel that could be exposed to hydrogen sulfide concentrations in excess of ten (10) parts per million (ppm) in air.

(b) A system of breathing air manifolds, hoses, and masks shall be provided on the rig floor for all drilling or workover operations or when hydrogen sulfide concentrations reach twenty (20) parts per million (ppm) in the air in all other operations. A rechargeable cascade air bottle system shall be provided to refill individual bottles of breathing air. Additional equipment such as a first aid kit, ear plugs, spectacle kits, portable hydrogen sulfide detectors, retrieval ropes and harnesses, chalk boards, note pads, bull horns, flashing lights, resuscitators, and a litter shall also be available.

(c) For drilling operations, the equipment specified in section (6)(a) and (6)(b) shall be on site and operational prior to penetrating the hydrogen sulfide bearing zone. Said equipment shall be on site and operational prior to commencing all other operations involving hydrogen sulfide.

(d) Explosion-proof ventilation devices shall be provided in critical work areas of the drilling, workover, test or plant facility and be multidirectional and capable of dispersing hydrogen sulfide vapors.

(e) If hydrogen sulfide is detected, frequent inspections of all areas of poor ventilation shall be made with a hydrogen sulfide detector instrument, and personal hydrogen sulfide detectors shall be made available to personnel.

(7) Contingency Plan.

(a) Operations that handle gas containing one hundred (100) parts per million (ppm) hydrogen sulfide or more in the system must formulate a contingency plan unless exempted under section (9). The contingency plan must be in place, as specified on Form OGB-24, Operator’s Certificate of Compliance for Operations involving Hydrogen Sulfide, prior to commencing the following operations:

1. Penetrating the hydrogen sulfide bearing zone during drilling operations;

2. Working over or recompleting a well in a hydrogen sulfide bearing zone;

3. Completing a temporarily abandoned well in a hydrogen sulfide bearing zone;

4. Testing or putting on permanent production a well that is completed in a hydrogen sulfide bearing zone;

5. Producing hydrocarbons bearing hydrogen sulfide into a sour flowline or sour gathering line;

6. Starting up a facility that will remove hydrogen sulfide from production;

7. Implementing any modification to an existing operation or facility, which increases the radius of exposure in a public area or results in a change of the applicable requirements of this rule.

(b) A contingency plan shall include the following items:

1. A plat covering the area of exposure or an area having a radius of one (1) mile, whichever is greater. The plat shall include the location of the well, facility, or corridor showing all good roads, residences, public areas and places, areas of low elevation where hydrogen sulfide might accumulate, the direction of prevailing winds, oil and gas wells, separators, heaters, corridors of gathering or pipeline systems, pumping stations, plants, transformer stations, and other manmade structures or features that may be of importance.

2. An index list of houses and places of business with telephone numbers and names and numbers of residents and employees as well as the identification of residents needing assistance in evacuation shall accompany the plan. This index list shall be limited to those houses and places of business located within a radius of one (1) mile or the radius of exposure, whichever is greater.

3. Information about the safety program established in section (2), the training requirements in section (5), the personnel safety equipment required in section (6), the location of briefing areas, and responsibilities of personnel during different operational conditions;

4. A description of the warning systems required in section (4) to include number, location, and detection limits of all monitors as well as the schedules for calibrating and testing said systems;

5. For drilling operations, a specification of the time at which the warning systems required in section (4) and the personnel safety equipment required in section (6) will be on site and operational;

6. Procedures to evacuate residences, businesses, and public places;

7. Procedures to divert traffic in the immediate vicinity and to notify the local civil authorities, the State Oil and Gas Board, and other appropriate governmental agencies;

8. Procedures to evacuate non-essential personnel from the well or facility in the event attempts to control the well or facility are unsuccessful;

9. A list including names, addresses, and telephone numbers of the closest hospitals, ambulance services, medical personnel, and other individuals or facilities that could assist in the event of an emergency;

10. The name, address, and telephone number of the individual in charge of administering the plan;

11. Any other information that the operator deems appropriate;

12. Other information deemed necessary by the Supervisor.

(c) The contingency plan shall be amended when any significant change in public exposure caused by public infringement of an existing radius of exposure requires such changes to be made. Otherwise, the contingency plan for each facility shall be reviewed and updated on an annual basis.

(d) Copies of the contingency plan shall be available for inspection by the Supervisor at the location indicated on Form OGB-24, Operator’s Certificate of Compliance for Operations Involving Hydrogen Sulfide and shall be provided to local civil authorities prior to commencing any one of the operations set forth in section (7)(a) and be readily available at the drilling, workover, test or plant facility.

(8) Certificate of Compliance.

(a) An Operator’s Certificate of Compliance for Operations Involving Hydrogen Sulfide, Form OGB-24, shall be filed in triplicate with the Supervisor for each facility or operation involving hydrogen sulfide subject to any requirement of this rule. A Certificate of Compliance may cover a single operation or multiple operations located within a field. The description of the type of operation indicated on Form OGB-24 must sufficiently define the facilities covered. Each operator shall maintain a current list of all operations covered by a Certificate of Compliance. Said list shall be available for inspection by the Supervisor upon request.

(b) The Certificate of Compliance shall certify that the operator has complied, or will comply, with the applicable requirements of this rule.

(c) For drilling operations, the Certificate of Compliance shall be filed with and approved by the Supervisor as a part of the application to drill. For facilities involving other types of hydrogen sulfide operation, as set forth in section (7)(a), the Certificate shall be filed with and approved by the Supervisor prior to commencing those operations.

(d) A new or amended Certificate of Compliance shall be required if there is a change in public exposure caused by public infringement of an existing radius of exposure resulting in a change in the applicable provisions of this rule, not described by the existing certificate. The operator shall file the new or amended certificate within thirty (30) days after an operator becomes aware of such infringement.

(e) A new or amended Certificate of Compliance shall be required if there is a modification of an existing operation or facility which increases the radius of exposure in a public area or results in a change in the applicable provisions of this rule not described by the existing Certificate. The operator shall file the new or amended Certificate at least thirty (30) days prior to initiating the operation or construction. Approval of the Certificate must be granted by the Supervisor prior to commencing that operation or construction.

(f) For drilling operations, the Certificate of Compliance submitted with the permit shall remain in effect through the completion, testing and well securing operations provided that the rig remains in place. If the rig is removed prior to these procedures, an amended Certificate accompanied by a schematic of the location showing the monitoring system and test equipment locations shall be submitted. The monitoring system and test equipment must be approved by the Supervisor prior to initiating test procedures.

(g) Each facility or operation for which a Certificate of Compliance has been approved shall be recertified by the operator on an annual basis. The recertification shall be filed with the Supervisor within thirty (30) days of the anniversary date of the most recently approved Certificate of Compliance for that facility or operation. Recertification is not required for operations containing less than one hundred (100) parts per million (ppm) hydrogen sulfide.

(9) Rule Exemptions. Exemptions from sections (2) through (7) may be obtained by filing the Certificate of Compliance as directed below:

(a) Each operator must determine the hydrogen sulfide concentration in the gaseous mixture in an operation or system.

1. Tests shall be made in accordance with standards as set by American Society for Testing and Methods (ASTM) Standard D-2385-66, or Gas Processors Association (GPA) Plant Operation Test Manual C-1, GPA Publication 2265-68, as revised, or other methods approved by the Supervisor.

2. Tests of vapor accumulation in storage tanks may be made with industry-accepted colorimetric tubes.

(b) To obtain an exemption from this rule, the radius of exposure must be determined, except in the cases of storage tanks, using the following Pasquill-Gifford equation, or by other methods satisfactory to the Supervisor:

For determining the radius of exposure:

X = ( (1.589) (mole fraction H2S) (Q) ) (.6258)

Where: X = radius of exposure in feet for 100 ppm H2S concentration

Q = maximum volume determined to be available for escape in standard cubic feet per day

H2S = mole fraction of hydrogen sulfide in the gaseous mixture available

for escape (i.e. for 1% H2S (volume basis), mole fraction is 0.01)

(c) The volume used as the escape rate in determining the radius of exposure shall be that specified below, as applicable:

1. The maximum daily volume rate of gas containing hydrogen sulfide handled by that system for which the radius of exposure is calculated.

2. For existing gas wells, the estimated maximum open flow potential shall be used.

3. For new wells drilled in developed areas, the escape rate shall be determined by using the estimated maximum flow potential of adjacent wells in the field.

4. The escape rate used in determining the radius of exposure shall be corrected to standard conditions of 14.65 pounds per square inch absolute (psia) and 60° F.

(d) For drilling of a well in an area where insufficient data exist to calculate a radius of exposure but where hydrogen sulfide may be expected, then a radius of exposure equal to one-half (1/2) mile shall be assumed. A lesser-assumed radius may be considered upon written request setting out the justification.

(e) Storage tanks which are utilized as part of a production operation and which are operated at or near atmospheric pressure are exempt from sections (2) and (4) through (7); however, where the vapor accumulation has a hydrogen sulfide concentration in excess of five hundred (500) parts per million (ppm), the storage tanks are exempt from sections (4), (6b, c, d, and e) and (7) only.

(f) Operations with a radius of exposure less than fifty (50) feet are exempt from sections (2) through (7) upon filing the Certificate of Compliance.

(g) Provided no public area is included within one-half (1/2) mile, operations with a radius of exposure greater than fifty (50) feet and less than one-half (1/2) mile are exempt from sections (4)(b) through (7) upon filing the Certificate of Compliance.

(h) Operations with a radius of exposure that either is greater than fifty (50) feet and includes a public area or is equal to or greater than one-half (1/2) mile are not eligible for an exemption under this.

(10) Well Testing Procedures. Well testing procedures for operations involving hydrogen sulfide shall be conducted in accordance with this section.

(a) Well testing shall be performed with a minimum number of personnel in the immediate vicinity of the location.

(b) During the test, the use of hydrogen sulfide detection equipment shall be intensified.

(c) All surface units and related equipment that will handle or be exposed to produced fluids containing hydrogen sulfide shall be designed for hydrogen sulfide service.

(d) All produced gases that are vented or flared shall be produced through a flare system that has been designed to gather and burn hydrogen sulfide gas safely. Flare lines shall be located at a distance that is sufficient to compensate for wind changes. The flare system shall be equipped with a pilot and an automatic igniter. Backup ignition for each flare shall be provided.

(e) Gases from stored test fluids shall be vented into a flare system.

(f) Testing operations in which produced gases are flared shall comply with permit regulations of other state and federal agencies.

Author: State Oil and Gas Board

Statutory Authority: Code of Ala. 1975, §§9-17-1, et seq.

History: New Rule: Filed April 11, 2000; effective May 16, 2000.

400-2-8-.05 Transportation Of Wastes Associated With Oil And Gas Operations.

(1) Certificate of Eligibility to Transport Wastes.

(a) No transporter shall transport wastes from a site until a Transporter's Certificate of Eligibility to Transport Wastes, Form OGB-25, has been approved by the Supervisor and an Organization Report, Form OGB-5, as prescribed in Rule 400-2-2-.04, has been filed with the Board. Said approval of a Transporter’s Certificate shall be for a two- (2-) year period, but may be renewed every two (2) years by filing a new Organization Report, Form OGB-5.

(b) If any transportation procedures are modified, then an amended Transporter's Certificate of Eligibility to Transport Wastes, Form OGB-25, shall be submitted for approval by the Supervisor.

(2) Revocation of Certificate of Eligibility to Transport Wastes. Whenever the transporter of wastes shall have failed to comply with all applicable laws and applicable rules and regulations of the Board, the applicable Transporter’s Certificate of Eligibility to Transport Wastes, Form OGB-25, shall be revoked. The Supervisor or Board shall provide written notice to the transporter of revocation and the transporter shall immediately discontinue transporting wastes until further notice from the Supervisor or Board.

(3) Wastes Manifest.

(a) Every shipment of wastes shall be accompanied by a Wastes Manifest, Form OGB-26.

(b) At the time of transport, the operator shall initiate the manifest by completing and signing Part I. After the transporter completes and signs Part II, the operator shall mail the appropriate copy to the Board within ten (10) days. All other copies shall accompany the waste shipment.

(c) Upon receipt of the wastes, the disposer shall complete and sign Part III of the manifest. The transporter shall then retain the transporter’s copy.

(d) Upon completion of the manifest, the disposer shall retain the disposer’s copy and mail the operator’s copy to the operator and original copy to the Board within ten (10) days.

(e) The operator, transporter, and disposer shall maintain file copies of the completed manifest for a period of at least three (3) years.

(f) Oil and gas operations from which wastes are transported out of state must comply with the manifest system requirements.

(4) Unit or Field-Wide Operations. In the case of unitized or field-wide operations where the transporting of wastes is confined to the geographical boundaries of the unit or field, the operator may be eligible for the following exemptions:

(a) When the operator also serves as the generator, transporter and disposer, the operator may request an exemption from the manifest system upon filing and receiving approval of the Transporter's Certificate of Eligibility to Transport Wastes, Form OGB-25.

(b) When the operator serves as the generator and disposer but contracts the transportation to another party, the operator may request an exemption from the manifest system upon the transporter filing and receiving approval of the Transporter's Certificate of Eligibility to Transport Wastes, Form OGB-25. The transporter shall be required to file a Transporter’s and Storer’s Monthly Report, Form OGB-16.

Author: State Oil and Gas Board

Statutory Authority: Code of Ala. 1975, §§9-17-1, et seq.

History: New Rule: Filed April 11, 2000; effective May 16, 2000.

Ed. Note: Previous Chapter 400-2 (Rules 400-2-X-.01 through 400-2-X-.09) Repealed and New Chapters 400-2-1 through 400-2-9 adopted in lieu thereof: Filed April 11, 2000.