Document 3JkLQ9zp6nEvvOM98Rkq3ZQ1n

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 September 16, 2020 TRANSMITTED VIA E-MAIL Mr. Harry S. Chen, Sr. SHE Advisor Nalco Company LLC 7701 90 HWY A Sugarland, TX 77478 harry.chen@ecolab.com Re: Administrative Order, Docket Number: CWA-06-2020-1794 Facility Permit Number: GMG29061F Dear Mr. Chen: Enclosed is an Administrative Order (AO) issued to Nalco Company LLC by the United States Environmental Protection Agency, Region 6 (EPA) for violation of the Clean Water Act (CWA), 33 U.S.C. 1251-1387. This AO requires Nalco Company LLC to comply with the provisions set forth in the attached AO for violations identified during a review of Discharge Monitoring Reports (DMRs) submitted to EPA. This AO does not assess a monetary penalty; however, it does require compliance with applicable federal regulations. The first compliance deadline is within thirty days of receipt of this AO. EPA is committed to ensuring compliance with the requirements of the National Pollutant Discharge Elimination System (NPDES) program, and my staff will assist you in any way possible. Please reference AO Docket Number CWA-06-2020-1794 and NPDES Permit Number GMG29061F in your response. EPA acknowledges that the COVID-19 pandemic may impact your business. If that is the case, please contact us regarding any specific issues you need to discuss. If you have any questions, please contact Ms. Kayla Woods, of my staff, at woods.kayla@epa.gov. Sincerely, Digitally signed by CHERYL SEAGER DN: c=US, o=U.S. Government, ou=Environmental Protection Agency, cn=CHERYL SEAGER, 0.9.2342.19200300.100.1.1=68001003651793 Date: 2020.09.16 14:00:44 -05'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Enclosure Cover Letter - Docket Number CWA-06-2020-1794 Page 2 of 2 ECC: Ramona Sanders, Chief Environmental Inspection and Enforcement Unit (EIEU) Bureau of Safety and Environmental Enforcement Gulf of Mexico OCS Office - MS GE466 Ramona.Sanders@bsee.gov UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 FINDINGS OF VIOLATION AND COMPLIANCE ORDER Docket Number: CWA-06-2020-1794; Facility Permit Number: GMG29061F STATUTORY AUTHORITY The following findings are made, and Order issued, under the authority vested in the Administrator of the United States Environmental Protection Agency ("EPA") by Section 309(a) of the Clean Water Act ("the Act"), 33 U.S.C. 1319(a). The Administrator of EPA delegated the authority to issue this Order to the Regional Administrator of EPA Region 6, who further delegated such authority to the Director of the Enforcement and Compliance Assurance Division. FINDINGS 1. Nalco Company LLC ("Respondent") is a "person," as that term is defined at Section 502(5) of the Act, 33 U.S.C. 1362(5), and 40 C.F.R. 122.2. 2. At all times relevant to this Order ("all relevant times"), Respondent owned or operated offshore oil and gas production and/or exploration facilities located in the Central and Western Portions of the Gulf of Mexico in the Outer Continental Shelf ("facilities"), and is, therefore, an "owner or operator" within the meaning of 40 C.F.R. 122.2. The mailing address for Respondent is 7701 90 HWY A, Sugarland, TX 77478. 3. At all relevant times, the facilities are "point sources" of "discharges" of "pollutants" to the receiving waters of the Gulf of Mexico, which is considered a "water of the United States" within the meaning of Section 502(12) and (14) of the Act, 33 U.S.C. 1362(12), (14), and 40 C.F.R. 122.2. 4. Because Respondent owns or operates facilities that act as point sources of discharges of pollutants to a water of the United States, Respondent and the facilities are subject to the Act and the National Pollutant Discharge Elimination System ("NPDES") program. 5. Under Section 301 of the Act, 33 U.S.C. 1311, it is unlawful for any person to discharge any pollutant from a point source to waters of the United States, except with the authorization of, and in compliance with, a NPDES permit issued pursuant to Section 402 of the Act, 33 U.S.C. 1342. 6. Section 402(a) of the Act, 33 U.S.C. 1342(a), provides that the Administrator of EPA may issue permits under the NPDES program for the discharge of pollutants from point sources to waters of the United States. Any such discharge is subject to the specific terms and conditions prescribed in the applicable permit. 7. Pursuant to Section 402(a) of the Act, 33 U.S.C. 1342(a), EPA issued the "Final NPDES General Permit for New and Existing Sources and New Dischargers in the Offshore Subcategory of the Oil and Gas Extraction Category for the Western Portion of the Outer Continental Shelf of the Gulf of Mexico" (GMG290000) ("permit"), which was reissued and took effect in its current form on October 1, 2017, 77 Fed. Reg. 61605. The permit authorizes discharges from new sources, existing sources, and new dischargers in the Offshore Subcategory of the Oil and Gas Extraction Point Source Category (40 C.F.R. Part 435, Subpart A) by operators of lease blocks located in Federal Waters of the Central and Western Portions of the Gulf of Mexico. The permit does not authorize discharges from facilities located in, or discharging to, the territorial seas of Louisiana or Texas or from facilities defined as "coastal," "onshore," or "stripper" (40 C.F.R. Part 435, Subparts C, D, and E). The permit does, however, authorize the discharge of produced water to the Central and Western portions of the Federal Waters of the Gulf of Mexico from wells located in lease blocks, and is available on the Internet at https://www.epa.gov/sites/production/files/2017- 09/documents/2017_final_gp_for_fr_091817.pdf. 8. Part I.B of the permit places certain limitations on the quality and quantity of effluent discharges by Respondent. The relevant discharge limitations are listed in Attachment A, which is incorporated by reference. 9. Part I of the permit requires Respondent to sample and test its effluent and monitor its compliance with permit conditions according to specific procedures in order to determine the facilities' compliance or noncompliance with the permit and applicable regulations. Part II.D of the permit requires Respondent to file with EPA certified Discharge Monitoring Reports ("DMRs") of the results of monitoring, and Noncompliance Reports when appropriate. Docket Number CWA-06-2020-1794 Page 2 of 2 10. A DMR review was conducted by representatives of EPA, for the monitoring period of April 1, 2017 to March 14, 2020. The certified DMRs filed by the Respondent to EPA show the respondent failed to meet the requirements outlined in the GMG290000 permit. Multiple violations were identified for the Respondent's facilities located in the central to western portion of the Gulf of Mexico. 11. Part II.D.4 of the permit was violated in that the Respondent failed to properly submit the DMRs following the II.C.7.b. quarterly monitoring periods. The DMR (non-receipt) violations are specified in Attachment B, which is incorporated by reference. Respondent must submit any missing DMRs and limit sets in order to meet the requirements outlined in Paragraph 13 of this Administrative Order. 12. Each violation of the conditions of the permit was a violation of Section 301 of the Act, 33 U.S.C. 1311. SECTION 309(a)(3) COMPLIANCE ORDER 13. Based on the foregoing Findings and pursuant to the authority of Section 309(a)(3) of the Act, EPA hereby orders Respondent to take the following action: A. Within thirty (30) days of the effective date of this Order, Respondent shall take such steps as necessary to comply with the effluent limitation provisions of the permit, as outlined in Attachment A. B. Within thirty (30) days of the effective date of this Order, Respondent must certify compliance with the terms and conditions of the permit. C. Within thirty (30) days of the effective date of this Order, Respondent shall provide EPA with a list of all mechanical, management and operational deficiencies and a narrative describing the specific actions taken to correct all cited violations. D. In the event it will take Respondent longer than thirty (30) days to achieve compliance, a listing of all noncompliance related deficiencies and a schedule for repair/correction for each deficiency shall be submitted to EPA for review and approval. E. Any approved compliance schedule will be incorporated and reissued in a future administrative order. F. To ask questions or comment on this matter, please contact Ms. Kayla Woods, of my staff, at 214-665-6482. G. Any information or correspondence submitted by Respondent to EPA under this Order shall be addressed to the following: Ms. Kayla Woods U.S. Environmental Protection Agency, Region 6 Water Enforcement Branch (ECDWE) 1201 Elm Street, Suite 500 Dallas, TX 75270 woods.kayla@epa.gov GENERAL PROVISIONS Respondent may seek federal judicial review of the Order pursuant to Chapter 7 of the Administrative Procedure Act, 5 U.S.C. 701-706, which states the scope of such review. Issuance of this Section 309(a)(3) Compliance Order shall not be deemed an election by EPA to forego any administrative or judicial, civil or criminal action to seek penalties, fines, or any other relief appropriate under the Act for the violations cited herein, or other violations that become known. EPA reserves the right to seek any remedy available under the law that it deems appropriate. Failure to comply with this Section 309(a)(3) Compliance Order or the Act can result in further administrative action, or a civil judicial action initiated by the United States Department of Justice. This Order does not constitute a waiver or modification of the terms or conditions of Respondent's NPDES permit which remain in full force and effect. Compliance with the terms and conditions of this Order does not relieve Respondent of its obligations to comply with any applicable federal, state, or local law or regulation. The effective date of this Order is the date it is received by Respondent. September 16, 2020 Date Digitally signed by CHERYL SEAGER DN: c=US, o=U.S. Government, ou=Environmental Protection Agency, cn=CHERYL SEAGER, 0.9.2342.19200300.100.1.1=68001003651793 Date: 2020.09.16 14:02:35 -05'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division ATTACHMENT A NPDES ID(s): GMG29061F Page 1 of 3 Discharge Drilling fluid All Drill Cuttings Environmental Protection Agency Effluent Limitations, Prohibitions and Monitoring Requirements Regulated & Monitored Parameter Discharge Limitations/ Prohibition Measurement Frequency Free Oil No free oil Toxicity 96-hr LC50 30,000 ppm daily min 30,000 ppm monthly avg. min. Discharge Rate Discharge Rate for controlled rate areas Mercury and cadmium Oil Based or Inverse Emulsion Drilling Fluids Oil Contaminated Drilling Fluids Diesel Oil Mineral Oil Non aqueous Based Fluids 1,000 barrels/hour No discharge of drilling fluids to which barite has been added, if such barite contains mercury in excess of 1.0 mg/kg or cadmium in excess of 3.0 mg/kg (dry weight) No Discharge No discharge No discharge of drilling fluids to which diesel oil has been added Mineral oil may be used only as a carrier fluid, lubricity additive, or pill No discharge except that which adheres to drill cuttings Free Oil Toxicity 96-hr LC50 Mercury and cadmium Cuttings generated using Oil Contaminated Drill Fluids Cuttings generated using drilling fluids to which Diesel Oil has been added Cuttings generated using drilling fluids to which Mineral Oil has been added No free oil No discharge of cuttings generated using drilling fluids which exhibit a toxicity of less than 30,000 ppm daily min. or 30,000 ppm monthly avg. min. No discharge. If generated using drilling fluids to which barite is added which contains mercury in excess of 1.0 mg/kg or cadmium in excess of 3.0 mg/kg No discharge No discharge Mineral oil may be used only as a carrier fluid, lubricity additive, or pill Once/week Once/month Once/end of well Once/month Once/hour Once/hour Once prior to drilling each well Once/week Monitoring Requirements Sample Type or Method Recorded Value(s) Static sheen Number of days sheen observed Grab 96-hr LC50 Grab 96-hr LC50 Grab 96-hr LC50 Estimate Max. hourly rate Measure Max. hourly rate Absorption Spectro-photometry mg mercury/kg barite mg mercury/kg barite Static sheen Number of days sheen observed ATTACHMENT A NPDES ID(s): GMG29061F Page 2 of 3 Discharge Environmental Protection Agency Regulated & Monitored Parameter Discharge Limitations/ Prohibition Stock Limits for Drill Cuttings Generated using Nonaqueous Based Drilling Fluids Polynuclear Aromatic Hydrocarbons (PAH) 0.00001 grams PAH per gram of base fluid Sediment Toxicity Ration of 10-day LC50s not to exceed 1.0 Discharge Limits for Cuttings Generated using Nonaqueous Based Drilling Fluids Deck Drainage Produced Water Produced Sand Biodegradation Rate Sediment Toxicity Formation Oil Base fluids Retained on Cuttings Free Oil Oil and grease Toxicity Free Oil Flow (bbl/day) No Discharge Biodegradation rate ratio not to exceed 1.0 Ratio of 4-day LC50s not to exceed 1.0 No Discharge 6.9% IO 9.4% ester No free Oil 42 mg/L daily max 29 mg/L monthly avg. 7-day min. NOEC and monthly avg. min. NOEC Monitor Monitor Well treatment fluids, completion fluids, workover fluids (includes packer fluids); and pipeline brine Free Oil Oil & Grease No free oil 42 mg/L daily max. 29 mg/L monthly avg. Measurement Frequency Once/year on each base fluid blend Once/year on each base fluid blend Once/year on each base fluid blend Once/month Once prior to drilling Once/week Once/day Once/day Once/month Rate Dependent Once/day Once/month Monitoring Requirements Sample Type or Method Recorded Value(s) PAH content of Oil by HPLC/UV, EPA Method 1654 [see 40 C.F.R. 435.11(u)] ASTM method E1367- 99 Modified ISO 11734:1995 gram PAH / gram stock base fluid Ratio of C16-C18 IO LC50 to stock base fluid LC50 Ratio of C16-C18 IO biodegradation to stock base fluid biodegradation GCMS RPE Retort Test Method Visual sheen Grab Grab Visual sheen Estimate Percent retained Number of days sheen observed Daily Max., monthly average Lowest NOEC for either species Number of days sheen observed Monthly Average Once/day Once/month Static sheen Grab Number of days sheen observed Daily max., Monthly average ATTACHMENT A NPDES ID(s): GMG29061F Page 3 of 3 Environmental Protection Agency Discharge Regulated & Monitored Parameter Sanitary waste continuously manned for 30 or more days by 10 or more persons Residual chlorine Solids Sanitary waste continuously manned for thirty or more days by 9 or fewer persons or intermittently by any number Domestic waste Miscellaneous discharges: Desalinization unit discharge; blowout preventer fluid; uncontaminated ballast water; uncontaminated bilge water; uncontaminated freshwater; mud, cuttings and cement as seafloor; uncontaminated seawater; boiler blowdown; source water and sand; diatomaceous earth filter media; excess cement slurry; bulk pipeline brine; transfer powder subsea wellhead preservation fluids; subsea production control fluid; umbilical steel tube storage fluid; leak tracer fluid; riser tensioner fluids; Solids Solids Free oil Toxicity Miscellaneous discharges of seawater and freshwater to which treatment chemicals have been added: excess seawater which permits the continuous operation of fire control and utility lift pumps, excess seawater from pressure maintenance and secondary recovery projects, water released during training of personnel in fire protection, seawater used to pressure test new and existing piping and pipelines, ballast water, once-through non-contact cooling water Treatment chemicals Discharge Rate Free oil Toxicity Hydrate Control Fluids (if discharged alone) Toxicity Cooling Water Intake Structure Non-Fixed and Fixed with Sea Chest Intake Screen Velocity Visual/remote Inspection Cooling Water Intake Structure Fixed without Sea Chest Intake Screen Velocity Visual/remote Inspection Entrainment Study Discharge Limitations/ Prohibition 1 mg/L (minimum) No floating solids No floating solids No floating solids or foam No free Oil Measurement Frequency Once/month Once/day Once/day Once/day Once/week 7-day NOEC < 50 mg/L (produced-specific NOEC for powder dye) Once/year Most stringent of: EPA label registration, maximum manufacturers recommended dose, or 500 mg/L Monitor No free oil Once/month Once/week 48-hour average min. NOEC and monthly average min. NOEC Rate Dependent 7-day NOEC (Product- specific NOEC) 0.5 ft/sec. Once/year Continuous Report 0.5 ft/sec. Once/month Continuous Report Once/month Monitoring Requirements Sample Type or Method Recorded Value(s) Grab Concentration Observation Number of days solids observed Observation Number of days solids observed Observation Number of days observed Visual sheen Number of days sheen observed Grab Lowest NOEC observed for either of the two species Estimate Visual sheen Grab Grab Measuring Device Observation Measuring Device Observation Monthly average Number of days sheen observed Lowest NOEC observed for either of the two species Lowest NOEC observed for either of the two species Maximum value Fish number Maximum value Fish number ATTACHMENT B NPDES ID(s): GMG29061F State: GM Major/Minor Indicator: Minor Violation Date: 04/01/2017 - 03/14/2020 Violation Type(s): DMR Non-Receipt Violation Environmental Protection Agency Integrated Compliance Information System (ICIS) DMR Non-Receipt Violations Report GMG29061F Created Date: 09/15/2010 Refresh Date: 09/03/2020 Report Version 1.5, Modified: 1/4/2017 Permittee Name: Permittee Address: Major/Minor Indicator: Compliance Track. Status: DMR Non Receipt Flag: RNC Tracking Flag: Nalco Company LLC 7701 HWY 90 A Sugarland, TX 77478 Minor On On On Primary SIC Code: Primary SIC Desc: Primary NAICS Code: Primary NAICS Desc: Cognizant Official: Cognizant Offcl. Ph.: Receiving Body: Permit Issued: Permit Effective: Permit Expired: Permit Status: 04/27/2018 04/27/2018 09/30/2022 Effective Facility Name: Facility Location: Violation Code D80 Monitoring Period End Date 09/30/2018 D80 09/30/2018 D80 09/30/2018 D90 09/30/2018 D90 09/30/2018 D80 09/30/2018 D90 09/30/2018 D80 09/30/2018 D80 09/30/2018 NALCO COMPANY LLC 7701 HWY 90 A SUGARLAND, TX 77478 Facility Information County: Region: 06 State-Region: FRS ID: 110070229250 Federal Facility Ownership: Type of Ownership: Permit Number GMG29061F ICIS Whole DMR and/or Individual Limit Set Non-Receipt Violations Limit Set 0001-DD Lease Area/Block Viosca Knoll-786 Parameter 82597 - Deck drainage, free oil Mon. Loc. 1 DMR Value C3 NODI Code C DMR Due Date 11/30/2018 DMR Submission Date 03/22/2019 GMG29061F GMG29061F 0001-MD 0001-MD Viosca Knoll-786 Viosca Knoll-786 04239 - Misc. free oil in Western GOM, OCS 51726 - Critical Dilution 1 C3 C 11/30/2018 03/22/2019 1 C3 C 11/30/2018 03/22/2019 GMG29061F 0001-MD Viosca Knoll-786 51938 - Miscellaneous Discharge Toxicity 1 C1 C 11/30/2018 03/22/2019 [Subsea Discharges] [Mysidopsis bahia] GMG29061F 0001-MD Viosca Knoll-786 51939 - Miscellaneous Discharge Toxicity 1 C1 C 11/30/2018 03/22/2019 [Subsea Discharges] [Menidia beryllina] GMG29061F GMG29061F GMG29061F GMG29061F 0001-MD 0001-MD 0001-MD 0001-MD Viosca Knoll-786 Viosca Knoll-786 Viosca Knoll-786 Viosca Knoll-786 51940 - Miscellaneous Discharges [Pipeline Brine] [Free Oil] 1 C3 C 11/30/2018 03/22/2019 51941 - Miscellaneous Discharges [Pipeline Brine] [Oil & Grease] 1 C3 C 11/30/2018 03/22/2019 TOP3E - NOEC Lethal Static Renewal 7 1 C3 C 11/30/2018 03/22/2019 Day Chronic Americamysis bahia TOP6B - NOEC Lethal Static Renewal 7 1 C3 C 11/30/2018 03/22/2019 Day Chronic Menidia menidia DMR Late Flag 5 2 7 9 9 9 9 P P D80 09/30/2018 GMG29061F 0001-MD Viosca Knoll-786 TPP3E - NOEC Sub-Lethal Static 1 C3 C 11/30/2018 03/22/2019 P Renewal 7 Day Chronic Americamysis bahia D80 09/30/2018 GMG29061F 0001-MD Viosca Knoll-786 TPP6B - NOEC Sub-Lethal Static 1 C3 C 11/30/2018 03/22/2019 P Renewal 7 Day Chronic Menidia menidia D90 09/30/2018 GMG29061F 0001-WF Viosca Knoll-786 04379 - Well fluids, oil & grease 1 C2 11/30/2018 03/19/2019 3 D90 09/30/2018 GMG29061F 0001-WF Viosca Knoll-786 04379 - Well fluids, oil & grease 1 C3 11/30/2018 03/19/2019 3 D80 09/30/2018 GMG29061F 0001-WF Viosca Knoll-786 82603 - Well fluids, free oil 1 C3 11/30/2018 03/19/2019 6 D80 06/30/2018 GMG29061F 0001-DD Viosca Knoll-786 82597 - Deck drainage, free oil 1 C3 08/30/2018 5 D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 04239 - Misc. free oil in Western GOM, 1 C3 08/30/2018 2 OCS D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 51726 - Critical Dilution 1 C3 08/30/2018 7 D90 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 51938 - Miscellaneous Discharge Toxicity 1 C1 08/30/2018 9 [Subsea Discharges] [Mysidopsis bahia] D90 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 51939 - Miscellaneous Discharge Toxicity 1 C1 08/30/2018 9 [Subsea Discharges] [Menidia beryllina] D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 51940 - Miscellaneous Discharges 1 C3 08/30/2018 9 [Pipeline Brine] [Free Oil] D90 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 51941 - Miscellaneous Discharges 1 C3 08/30/2018 9 [Pipeline Brine] [Oil & Grease] D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 TOP3E - NOEC Lethal Static Renewal 7 1 C3 08/30/2018 P Day Chronic Americamysis bahia D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 TOP6B - NOEC Lethal Static Renewal 7 1 C3 08/30/2018 P Day Chronic Menidia menidia D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 TPP3E - NOEC Sub-Lethal Static 1 C3 08/30/2018 P Renewal 7 Day Chronic Americamysis bahia D80 06/30/2018 GMG29061F 0001-MD Viosca Knoll-786 TPP6B - NOEC Sub-Lethal Static 1 C3 08/30/2018 P Renewal 7 Day Chronic Menidia menidia D90 06/30/2018 GMG29061F 0001-WF Viosca Knoll-786 04379 - Well fluids, oil & grease 1 C2 08/30/2018 3 D90 06/30/2018 GMG29061F 0001-WF Viosca Knoll-786 04379 - Well fluids, oil & grease 1 C3 08/30/2018 3 D80 06/30/2018 GMG29061F 0001-WF Viosca Knoll-786 82603 - Well fluids, free oil 1 C3 08/30/2018 6