15 CAR § 275-503 – Exploration and production fluid gathering, handling, and transportation

(a) Definitions. As used in this section:
1. (1) "Class II fluids" means:
  1. (A) Produced water and/or other fluids brought to the surface in connection with drilling, completion, or fracture treatments, workover or recompletion and plugging of oil, natural gas, Class II or wells that are required to be permitted as water supply wells by the Oil and Gas Commission, enhanced recovery operations, or natural gas storage operations; or
  2. (B) Produced water and/or other fluids from subdivision (a)(1)(A) of this section, which prior to reinjection have been used on site for purposes integrally associated with well drilling, completion or fracture treatments, workover or recompletions or plugging oil, natural gas, Class II or wells that are required to be permitted as water supply wells by the Oil and Gas Commission, enhanced recovery operations, natural gas storage operations, or chemically treated or altered to the extent necessary to make them usable for purposes integrally related to well drilling, completion, workover or recompletions or plugging oil, natural gas, Class II or wells that are required to be permitted as water supply wells by the Oil and Gas Commission, enhanced recovery operations, natural gas storage operations, or commingled with fluid wastes resulting from fluid treatments outlined above, provided the commingled fluid wastes do not constitute a hazardous waste under the Resource Conservation and Recovery Act of 1976, 42 U.S.C. § 6901 et seq.;
2. (2) "Exploration and production fluid” means crude oil bottom sediments and all Class II fluids, to the extent those fluids are now or hereafter exempt from the provisions of Subtitle C of the Federal Resource Conservation Recovery Act of 1976, Pub. L. No. 94-580;
3. (3) "Exploration and production fluid transportation system" means any motor vehicle licensed for highway use on a public highway or used on a public highway, that is equipped for either carrying or pulling a transportation tank containing exploration and production fluids, from the point of any fluid generation or collection site to any subsequent off-site:
  1. (A) Storage facility;
  2. (B) Surface disposal facility; or
  3. (C) Injection well disposal facility;
4. (4) “Exploration and production fluid transporter” means an operator of an exploration and production fluid transportation system; and
5. (5) "Transportation tank" means an assembly, compartment, tank, or other container that is used for transporting or delivering exploration and production fluid.
(b)
1. (1) No person shall operate an exploration and production fluid transportation system without an exploration and production fluid transportation system permit.
2. (2) Application for which shall be made on forms prescribed by the Director of Production and Conservation.
3. (3) The application shall be executed under penalties of perjury and accompanied by an exploration and production fluid transportation system permit fee in the amount specified below.
(c)
1. (1) If the application does not contain all of the required information or documents, the director or his or her designee shall notify the applicant in writing.
2. (2) The notification shall specify the additional information or documents necessary to process the application, and shall advise the applicant that the application will be deemed denied unless the additional information or documents are submitted within thirty (30) days following the date of notification.
(d) The application shall, at a minimum, include:
1. (1) A permit fee of one hundred dollars ($100) per transportation tank;
2. (2) The name, address, and business and emergency telephone numbers of the proposed exploration and production fluid transporter, including Arkansas contact information if the transporter is located outside of the State of Arkansas;
3. (3) A brief description of the number and type of transportation tanks to be used in the system, specifying whether transportation tanks will be owned, leased, or otherwise arranged for, and including tank capacity and a manufacturer’s serial number or other identifying number for each transportation tank; and
4. (4) An entity organizational report on a form prescribed by the director.
(e)
1. (1) If the applicant satisfies all requirements of this section, the director shall issue an exploration and production fluid transportation system permit and permit sticker for each transportation tank.
2. (2) The exploration and production fluid transportation system permit shall be kept in the Arkansas office of the exploration and production fluid transportation system permit holder.
3. (3) The permit sticker shall be affixed to the back of the transportation tank and shall be kept visible and readable at all times.
(f) Exploration and production fluid transportation system permits are not transferable.
(g)
1. (1) Exploration and production fluid transportation system permits shall be renewed annually on July 1 of each year, commencing on July 1, 2010.
2. (2) Amended applications, including any additional permit fees, are required to be submitted within thirty (30) days of the addition of any transportation tanks to the exploration and production fluid transportation system.
(h) Exploration and production fluid transportation system recordkeeping requirements:
1. (1) Each exploration and production fluid transportation system permit holder shall maintain a record of all exploration and production fluids received, transported, delivered or disposed of, which shall include the:
  1. (A) Well lease or unit name;
  2. (B) Well or facility operator (fluid generator);
  3. (C) Date received;
  4. (D) Amount per pick up;
  5. (E) Type of fluid; and
  6. (F) Name and location of the permitted off-site:
(i) Temporary storage facility;
1. (ii) Permitted surface disposal facility; or
  1. (iii) Permitted injection well disposal facility; and
2. (2) Records shall be:
  1. (A) Maintained a minimum of three (3) years at the Arkansas office of the exploration and production fluid transportation system permit holder; and
  2. (B) Made available to Oil and Gas Commission staff for inspection during normal business hours.
    1. (i) Exploration and production fluid transportation system operating requirements:
3. (1) All transportation tanks and associated piping and valves must be kept in leak-free condition;
4. (2)
  1. (A) Exploration and production fluid transporters shall only transport exploration and production fluid to a permitted:
    1. (i) Well for reuse in the well drilling or well completion process;
    2. (ii) Off-site temporary storage facility;
    3. (iii) Surface disposal facility; or
    4. (iv) Injection well disposal facility.
  2. (B) Exploration and production fluid shall not be released or discharged onto the ground surface or into waters of the state unless otherwise authorized by the Division of Environmental Quality;
5. (3) All exploration and production fluids stored at a permitted temporary storage facility shall be contained in tanks or permitted temporary storage pits;
6. (4) Exploration and production fluid shall not be commingled or blended with nonexempt waste (such as used motor or compressor oil) under Subtitle C of the Federal Resource Conservation and Recovery Act of 1976; and
7. (5) All transportation tanks shall contain the name and phone number of the exploration and production fluid transporters in a legible manner.
(j) No person shall engage, employ, or contract with any other person except a permitted exploration and production fluid transporter to transport exploration and production fluids.
(k) Failure to comply with provisions of this section may result in revocation of the exploration and production fluid transportation system permit and/or the assessment of civil penalties in accordance with 15 CAR § 275-104.

Codification Notes: This section as promulgated prior to codification into the Code of Arkansas Rules provided as follows: "(Source: new rule January 22, 2009; amended October 24, 2009)"