Document EqVE6vdwqX8mw7eLeZk8pyvqR

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1201 ELM STREET, SUITE 500 DALLAS, TEXAS 75270-2102 December 8, 2021 TRANSMITTED VIA EMAIL Michael E. McCauley, General Operations Manager Arena Offshore, LP 2103 Research Forest Drive, Suite 200 The Woodlands, Texas 77380 mmccauley@arenaoffshore.com Re: Administrative Order, Docket Number: CWA-06-2022-1711 NPDES Permit: GMG290269 Dear Mr. McCauley: Enclosed is an Administrative Order (AO) issued by the United States Environmental Protection Agency, Region 6 (EPA) to Arena Offshore, LP (Arena) for violations of the Clean Water Act, 33 U.S.C. 12511387. This AO requires Arena to comply with the provisions set forth in the attached AO for violations identified during a review of effluent Discharge Monitoring Reports from October 1, 2019 to October 15, 2021. EPA requests that you immediately confirm receipt of this e-mail and the attached AO by a response e-mail to woods.kayla@epa.gov. 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-06-2021-1711 and NPDES Permit Number GMG290269 in your response. EPA acknowledges that the COVID-19 pandemic may impact your business and operations. If this is the case, please contact us regarding any specific issues you need to discuss. If you need additional time to respond to this AO or if you have any questions relating to this AO, please contact Ms. Kayla Woods of my staff, at (214) 665-6482. Sincerely, Digitally signed by Seager, Cheryl DN: cn=Seager, Cheryl, email=Seager.Cheryl@epa.gov Date: 2021.12.08 16:37:56 -06'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division ec: T.J. Broussard, Regional Environmental Officer t.j.broussard@bsee.gov U.S. ENVIRONMENTAL PROTECTION AGENCY - REGION 6 FINDINGS OF VIOLATION AND COMPLIANCE ORDER In the Matter of: Arena Offshore, LP Docket No.: CWA-06-2022-1711 NPDES No.: GMG290269 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 this authority to the Director of the Enforcement and Compliance Assurance Division. FINDINGS 1. Arena Offshore, LP (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, 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 2103 Research Forest Drive, Suite 200, The Woodlands, Texas, 77380. 3. At all relevant times, the facilities are considered "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 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 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. Effluent limitations, prohibitions, and monitoring requirements are listed in Table 1 of Appendix F. 9. Part I of the permit requires Respondent to sample and test its effluent and monitor 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-06-2022-1711 Page 2 of 3 10. A DMR file review was conducted by EPA for the monitoring period of October 1, 2019 to October 15, 2021. The certified DMRs filed by Respondent with EPA show discharges of pollutants from the facilities that exceed the permitted effluent limitations as specified in Part I.B.1. through 12 of the permit. 11. Permit violations included multiple exceedances of the effluent limitations of produced water and deck drainage established in Part I.B of the permit, such as oil and grease tests and free oil. The DMRs showed multiple violations which are specified in Attachment A, which is incorporated herein by reference, for permitted features (0048-DD, 0049-DD, 0059DD, 0126-DD, 0132-PR, 0148-DD, 0186-DD, 0195-PR, 0201-DD and 0201-PR). 12. Each instance in which Respondent discharged pollutants to waters of the United States in amounts exceeding the effluent limitations contained in the permit, is a violation of the permit and 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. B. Within thirty (30) days of the effective date of this Order, Respondent must certify compliance with the terms and conditions of the permit for violations in Attachment A. 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 violations cited in this Order. D. In the event Respondent believes complete correction of the violations cited herein is not possible within thirty (30) days of the effective date of this Order, Respondent shall submit a comprehensive written plan for the mitigation of the cited violations within the shortest possible time. Such plan shall describe in detail the specific corrective actions to be taken and why such actions are sufficient to correct the violations. The plan shall include a detailed schedule for the mitigation of the violations within the shortest possible time, as well as measures to prevent these similar violations from reoccurring. Any approved compliance schedule will be incorporated and reissued in a future administrative order. E. If you have questions or comment on this matter, please contact Kayla Woods of my staff, at (214) 665-6482. F. Any information or correspondence submitted by Respondent to EPA under this Order shall be addressed or emailed to the following: Ms. Kayla Woods Water Enforcement Branch (ECDWE) EPA, Region 6 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. December 8, 2021 Date Digitally signed by Seager, Cheryl DN: cn=Seager, Cheryl, email=Seager.Cheryl@epa.gov Date: 2021.12.08 16:35:23 -06'00' Cheryl T. Seager, Director Enforcement and Compliance Assurance Division Docket Number: CWA-06-2022-1711 Page 3 of 3 ATTACHMENT A NPDES ID(s): GMG290269 State: GM Major/Minor Indicator: Minor Violation Date: 10/01/2019 - 10/15/2021 Violation Type(s): Effluent Violation Environmental Protection Agency Integrated Compliance Information System (ICIS) Effluent Violations Report GMG290269 Created Date: 09/15/2010 Refresh Date: 10/15/2021 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: ARENA OFFSHORE, LP 2103 RESEARCH FOREST DRIVE, SUITE 200 THE WOODLANDS, TX 77380 Minor On On On Primary SIC Code: Primary SIC Desc: Primary NAICS Code: Primary NAICS Desc: Cognizant Official: Cognizant Offcl. Ph.: Receiving Body: 1311 Crude Petroleum And Natural Gas MICHAEL E. McCAULEY, CEO 281-210-3114 Permit Issued: Permit Effective: Permit Expired: Permit Status: 10/01/2017 10/01/2017 09/30/2022 Effective Facility Name: Facility Location: ARENA OFFSHORE, LP 2103 RESEARCH FOREST DRIVE, SUITE 200 THE WOODLANDS, TX 77380 Violation Code E90 Monitoring Period End Date 06/30/2021 E90 06/30/2021 E90 03/31/2021 E90 03/31/2021 E90 03/31/2021 E90 03/31/2021 E90 03/31/2021 E90 12/31/2020 Monitoring Period From 04/01/2021 to 06/30/2021 From 04/01/2021 to 06/30/2021 From 01/01/2021 to 03/31/2021 From 01/01/2021 to 03/31/2021 From 01/01/2021 to 03/31/2021 From 01/01/2021 to 03/31/2021 From 01/01/2021 to 03/31/2021 From 10/01/2020 to 12/31/2020 Limit Set 0126-DD 0195-PR 0048-DD 0049-DD 0148-DD 0186-DD 0201-DD 0059-DD Facility Information County: Montgomery FRS ID: Region: 06 Federal Facility Ownership: State-Region: Type of Ownership: ICIS Effluent Violations Lease Area/Block Parameter Mon. Loc. Value Type/ Stat. Base South Timbalier-151 82597 - Deck drainage, free oil 1 C3 QTRTOTAL Eugene Island-238 82599 - Produced water, oil and grease 1 C3 DAILY MX Eugene Island, South Addition-314 82597 - Deck drainage, free oil 1 C3 QTRTOTAL Eugene Island, South Addition-314 82597 - Deck drainage, free oil 1 C3 QTRTOTAL South Timbalier-151 82597 - Deck drainage, free oil 1 C3 QTRTOTAL South Timbalier-52 82597 - Deck drainage, free oil 1 C3 QTRTOTAL Eugene Island-252 82597 - Deck drainage, free oil 1 C3 QTRTOTAL Eugene Island-182 82597 - Deck drainage, free oil 1 C3 QTRTOTAL 110038060273 Reported Value/Units 3 d 48.4 mg/l 1 d 1 d 1 d 1 d 1 d 4 d DMR Non-Receipt Violations: Asterisks around a NODI Code (e.g. **X**) indicate the NODI code will not automatically resolve RNC. Schedule Violations: Schedule Type P - Permit, A - Administrative, J - Judicial Limit Value/ Units <= d <=42 mg/l <= d <= d <= d <= d <= d <= d Page 1 of 2 ATTACHMENT A NPDES ID(s): GMG290269 State: GM Major/Minor Indicator: Minor Violation Date: 10/01/2019 - 10/15/2021 Violation Type(s): Effluent Violation Environmental Protection Agency Integrated Compliance Information System (ICIS) Effluent Violations Report GMG290269 Violation Code E90 Monitoring Period End Date 09/30/2020 E90 03/31/2020 Monitoring Period From 07/01/2020 to 09/30/2020 From 01/01/2020 to 03/31/2020 Limit Set 0201-PR 0132-PR ICIS Effluent Violations Lease Area/Block Parameter Eugene Island-252 82599 - Produced water, oil and grease Eugene Island, South Addition-341 82599 - Produced water, oil and grease Mon. Loc. 1 1 Value Type/ Stat. Base C3 DAILY MX C3 DAILY MX Created Date: 09/15/2010 Refresh Date: 10/15/2021 Report Version 1.5, Modified: 1/4/2017 Reported Value/Units 92.3 mg/l 48.1 mg/l Limit Value/ Units <=42 mg/l <=42 mg/l DMR Non-Receipt Violations: Asterisks around a NODI Code (e.g. **X**) indicate the NODI code will not automatically resolve RNC. Schedule Violations: Schedule Type P - Permit, A - Administrative, J - Judicial Page 2 of 2