NVIC 07-87: Waterborne transport of oil field wastes

United States COMDTPUB P16700.4 Coast Guard NVIC 7-87 13 OCT 1987 NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 7-87 Electronic Version for Distribution Via the World Wide Web Subj: Guidance on Waterborne Transport of Oil Field Wastes

Guidance on Waterborne Transport of Oil Field Wastes — PURPOSE. The purpose of this circular is to:

a. Disseminate information to vessel/facility owners and operators, and other interested persons regarding acceptable methods of transporting oil field wastes generated by petroleum drilling and production operations, or the clean-up of waste pits. b. Provide acceptable equivalent standards and inspection guidance for certification under Title 46, Code of Federal Regulation (46 CFR), Subchapter D of previously uncertificated hopper barges based on restrictions of cargo, route, and loading (stability). c. Terminate an interim Letter of Authorization (LOA) program established by the Eighth Coast Guard District for hopper barges and establish a six (6) month period to allow industry sufficient time to bring these hopper barges into compliance with the equivalent standards.

Guidance on Waterborne Transport of Oil Field Wastes — BACKGROUND.

a. Various federal, state, and local regulatory agencies are upgrading their requirements governing the disposal of wastes from drilling or production operations and are requiring clean-up of waste pits used in earlier operations. This has resulted in increased interest in the methods by which these wastes may be transported by water. b. Oil field wastes may present a wide variety of potential hazards and/or have unique transportation and handling problems. Some wastes, when properly identified and handled, may pose relatively low combustibility hazards. However, federal statutes are based on environmental protection as well as vessel and personnel safety. Therefore, even though Coast Guard regulations do not specifically address the carriage of low hazard oil field wastes, the statutes regulating material containing any quantity of oil or other hazardous substances are applicable. c. As an interim measure, the Commander, Eighth Coast Guard District permitted the transportation of certain waste materials by uninspected vessels under an LOA. The wastes authorized for transportation under this program presented minimal flammability, explosive, and toxic hazards. Although the toxic hazards were slight, they could be significant to the environment in the large quantities generated by the drilling industry. The program was not applicable to general industrial wastes, material from oil or hazardous chemical spill clean-up, or clean-up of toxic waste dumps sites. Each operation was evaluated in view of local conditions and accepted on a case-by-case basis by the cognizant Coast Guard officials in accordance with the provisions of 46 CFR 30.15-1 permitting the acceptance of "equivalents." NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 7-87

Guidance on Waterborne Transport of Oil Field Wastes — STATUTORY AND REGULATORY APPLICABILITY.

a. Title 46, U.S. Code, Section 3301 (46 USC 3301) requires "tank vessels" to be inspected by the Coast Guard. As defined in 46 USC 2101(39), a tank vessel is a vessel that is constructed or adapted to carry, or that carries, oil or hazardous material in bulk as cargo or cargo residue. "Oil," for this purpose, includes oil of any type or in any form, including petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes except dredged spoil. "Hazardous material" means a liquid material or substance that is:

(1) Flammable or combustible;

(2) Designated a hazardous substance under Section 311(b) of the Federal Water Pollution Control Act (33 USC 1321); or

(3) Designated a hazardous material under Section 104 of the Hazardous Materials Transportation Act (49 USC 1803).

Vessels carrying most oil field wastes in bulk are subject to inspection since the wastes generally fall within one or more of the above categories; implementing regulations are contained in 46 CFR, Shipping. b.

Tank vessel regulations are contained in 46 CFR, Parts 30 through 40 (Subchapter D). c.

These materials may become subject to Coast Guard regulation while being transported on board vessels as "packaged hazardous materials" in accordance with 49 CFR Parts 171 through 176. d.

A Certificate of Financial Responsibility (COFR) (water pollution) is required by 33 CFR 130 on self-propelled vessels of more than 300 gross tons, and non-self-propelled barges of more than 300 gross tons which carry oil or hazardous substances as fuel or cargo.

Similarly, a vessel engaged in any segment of the transportation of oil produced from an offshore facility on the Outer Continental Shelf, when operating in the waters above submerged lands seaward from the coastline of a state or the waters above the Outer Continental Shelf, is required by 33 CFR 132 to obtain a COFR (Outer Continental Shelf). e.

Vessels classified as "oil tankers" of 150 gross tons or more, and other vessels of 400 gross tons or more operating beyond the outer limit of the territorial seas are required by 33 USC 1901-1911 to comply with the requirements of MARPOL 73/78, Annex I; the implementing regulations are contained in 33 CFR 151 155 and 157.

These regulations specify design and equipment standards and operating requirements to prevent oil pollution.

Under these regulations, petroleum in any form including crude oil, fuel oil, sludge, oil refuse, and refined products is classified as "oil." f.

Transfers of materials classed as oil, either between vessels, or between a vessel and shoreside facility are regulated by 33 CFR 154, 155 and 156. g.

Facilities which are used for the handling and storage of, and for vessel loading and discharging of any flammable or combustible liquid in bulk; any hazardous materials subject to the Dangerous Cargo Regulations; and any hazardous material subject to the NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 7-87 Hazardous Materials Regulations are required to be designated waterfront facilities.

Such facilities are regulated under 33 CFR, Part 126.

Guidance on Waterborne Transport of Oil Field Wastes — DISCUSSION.

a. The application of various vessel inspection regulations is determined by the classification of the product or cargo carried. Liquid bulk product carriage requirements and classifications are determined by cargo tables in 46 CFR, Subchapter D (Subpart 30.25) or Subchapter 0 (46 CFR 151.01-10; 46 CFR 151.05; 46 CFR 153, Table 1; 46 CFR 153, Appendix 1; 46 CFR 154, Table 4). Hazardous materials not listed must be evaluated by Commandant (G-MTH-1) prior to shipment. Products shipped as "packaged" cargoes are evaluated by the shipper who selects the proper shipping name from 49 CFR 172.101 or 49 CFR 172.102. A material may be shipped under one of the "not otherwise specified" (N.0.S.) categories unless otherwise prohibited from shipment. b. Oil field wastes are not specifically classified in the regulations. However, they should be treated as a hazardous material until otherwise identified. Enclosure (1) categorizes oil field materials. This listing is not considered inclusive of all the materials that may result from drilling or production operations. Ultimately, it is the shipper who must identify the material being shipped, its hazards, and determine the appropriate methods of transportation. c. Various methods have evolved for transporting these waste materials in compliance with the Coast Guard's regulations. The allowed methods are as follows:

(1) Transporting the materials in inspected vessels certificated for carrying oil or other hazardous materials. This is the preferred method of transportation. Standard tank barges inspected and certificated under 46 CFR, Subchapter D can be used for the transportation of most oil field wastes, except those which contain large amounts of sediment or other materials in suspension which are unpumpable.

(2) Transporting the materials as "packaged cargo." This method of transportation generally lends itself only to small quantities of materials, e.g., drill cuttings. Oil field wastes may be packaged and shipped in accordance with the provisions of 49 CFR, Parts 171 through 176.

(3) Transporting the material as a bulk product using portable tanks in accordance with the provisions of 46 CFR, Part 98. Only Marine Portable Tanks (MPT) can be filled or discharged while on board a vessel. Transfers of this type are considered to be bulk liquid transfers.

(4) Treatment of the materials so that they are no longer classified as oil or hazardous material nor required to be transported by certificated vessels. This is generally limited to the transportation of materials from a treatment facility to a disposal point. The shipper performs such tests and inspections as necessary to be assured that the transportation of the materials is no longer subject to regulations. d. In an effort to assist those persons or organizations desiring to transport oil field waste that is unpumpable by conventional methods, the Coast Guard has established standards NAVIGATION AND VESSEL INSPECTION CIRCULAR NO. 7-87 and inspection guidance that, if followed, will enable owners of hopper barges to comply with the applicable provisions of 46 CFR Subchapter D. Those standards are described in enclosure (2) and are deemed equivalent to 46 CFR, Subchapter D for the carriage of oil field waste in previously uncertificated hopper barges based on cargo, route, loading, structural, construction, and stability restrictions. Additional guidance is provided to ensure safe transfer of oil field waste and operation of the barges.

Guidance on Waterborne Transport of Oil Field Wastes — IMPLEMENTATION.

a. Persons or organizations desiring to transport oil field waste in previously uninspected hopper barges should review the information presented in this NVIC and its enclosures and determine which option they will use to continue the transport of oil field waste in compliance with the applicable statutes. b. All LOAs currently issued for hopper barges will expire no later than six (6) months after the publication date of this NVIC. Owners of vessels operating under an LOA may apply for a Certificate of Inspection as soon as possible, but not later than 90 days prior to the expiration of the LOA, in order to allow time for plan review, drydock, and hull inspections. LOAs with less than 90 days remaining to expiration may be extended a maximum of 3 months to allow time to complete inspection procedures. End: (1) Definition/Description of Oil Field Wastes (2) Equivalent Standards and Inspection Guidance for Certification of Open Hopper Barges Under Title 46, Code of Federal Regulations 46 (CFR), Subchapter D Non-Standard Distribution: C:e New Orleans (90); Baltimore (45); Alameda (40); Port Arthur, Honolulu, Puget Sound (35); Morgan City (30); Miami, Mobile, Long Beach (25); Norfolk, Jacksonville, Portland OR (20); Boston, Portland ME, Charleston, Anchorage, Galveston (15); Cleveland (12); Louisville, Memphis, Nashville, Paducah, Pittsburgh, St. Louis, Savannah, San Juan, Tampa, Buffalo, Chicago, Detroit, Duluth, Milwaukee, San Diego, Juneau, Valdez (10); Providence, Huntington, Wilmington, Corpus Christi, Toledo (5). C:m New York (70); Philadelphia (35); Houston (25); St. Ignace (5); Sturgeon Bay (4). D:l CG Liaison Officer MILSEALIFTCOMD (Code M-4E4), CG Liaison Officer RSPA (DHM-22), CG Liaison Officer JUSMAGPHIL (1). ZTC-68