CMM Regulatory Compliance & Environmental Issues 3 — Questions and Answers
Question 1: The Mineral Leasing Act of 1920 grants the federal government authority to:
- Regulate mineral development on state-owned lands only
- Lease federally owned fossil fuels including oil, gas, and coal on public lands (Correct answer)
- Condemn private mineral rights for public use
- Set international royalty standards for offshore operations
Correct answer: Lease federally owned fossil fuels including oil, gas, and coal on public lands
The Mineral Leasing Act of 1920 established the framework for leasing federally owned oil, gas, coal, and other fossil fuel resources on public lands.
Question 2: Which regulation requires operators to control methane emissions from new and modified oil and gas facilities, including pneumatic controllers and storage vessels?
- EPA NSPS Subpart OOOO and OOOOa (Correct answer)
- OSHA Process Safety Management Standard
- RCRA Subtitle C Hazardous Waste Rules
- CERCLA National Contingency Plan
Correct answer: EPA NSPS Subpart OOOO and OOOOa
EPA's New Source Performance Standards (NSPS) Subpart OOOO and OOOOa set emission standards for methane and VOCs from new and modified oil and gas equipment.
Question 3: Under the Clean Water Act Section 404, a permit from the Army Corps of Engineers is required when an operator:
- Discharges produced water into a publicly owned treatment works
- Places dredge or fill material into waters of the United States (Correct answer)
- Installs a pipeline across state lines
- Applies for a new federal oil and gas lease
Correct answer: Places dredge or fill material into waters of the United States
CWA Section 404 requires an Army Corps permit before depositing dredged or fill material into waters of the United States, including wetlands.
Question 4: A 'Spill Prevention, Control, and Countermeasure' (SPCC) plan is required under which regulation, and for facilities storing more than how many gallons of oil?
- RCRA; more than 10,000 gallons total aboveground
- CWA Section 311; more than 1,320 gallons aboveground aggregate with risk to navigable waters (Correct answer)
- CERCLA; more than 5,000 gallons in any single tank
- SDWA; more than 500 gallons near an aquifer recharge zone
Correct answer: CWA Section 311; more than 1,320 gallons aboveground aggregate with risk to navigable waters
CWA Section 311 and 40 CFR Part 112 require an SPCC plan for facilities with aboveground oil storage capacity exceeding 1,320 gallons that could reasonably discharge to navigable waters.
Question 5: In federal offshore operations, which agency has primary jurisdiction over worker safety and environmental compliance under OCSLA?
- OSHA and EPA jointly with equal authority
- BSEE for safety and environmental enforcement; BOEM for leasing and resource management (Correct answer)
- Coast Guard for all OCS activities
- FERC for pipeline and processing facilities
Correct answer: BSEE for safety and environmental enforcement; BOEM for leasing and resource management
Following the Deepwater Horizon disaster, MMS was reorganized; BSEE handles safety/environmental enforcement while BOEM manages leasing and resource assessment on the OCS.
Question 6: What is the purpose of a 'Stormwater Pollution Prevention Plan' (SWPPP) under the EPA's NPDES Construction General Permit?
- To document the volume of produced water injected into disposal wells
- To identify and implement best management practices controlling stormwater runoff from construction sites (Correct answer)
- To certify that all wetland impacts have been mitigated on a 1:1 ratio
- To calculate air emissions from construction equipment exhaust
Correct answer: To identify and implement best management practices controlling stormwater runoff from construction sites
A SWPPP identifies potential pollutant sources and describes BMPs to prevent stormwater contamination during land-disturbing construction activities.
Question 7: Under the National Historic Preservation Act (NHPA) Section 106, federal agencies must consult with the State Historic Preservation Officer (SHPO) when:
- A project exceeds $1 million in federal funding regardless of location
- A federal undertaking may affect properties listed or eligible for the National Register of Historic Places (Correct answer)
- Any Native American tribe requests a consultation about cultural resources
- A company drills within 500 feet of a state or national park boundary
Correct answer: A federal undertaking may affect properties listed or eligible for the National Register of Historic Places
Section 106 requires federal agencies to consult with the SHPO (and THPO for tribal lands) before approving actions that could affect historic properties eligible for or on the National Register.
The Mineral Leasing Act of 1920 grants the federal government authority to: