5 Colo. Code Regs. § 1002-84.28
The provisions of sections 25-8-202, 25-8-205(1), and 25-8-308(1)(h), C.R.S., provide the specific statutory authority for adoption of amendments to this regulation. The Commission also adopted, in compliance with section 24-4-203(4), C.R.S., the following statement of basis and purpose.
BASIS AND PURPOSE
Recognizing the importance of reclaimed water as a resource within the State of Colorado's Water Plan as a means to help offset the demand on other water resources, the Commission considered and adopted changes to Regulation 84 on August 10, 2020 to include Oil and Gas Operations as an approved use under use categories 2 and 3.
Oil and Gas Operations is a growing industry within Colorado and as the industry expands in Colorado, it is creating opportunities for municipalities, such as the City of Aurora, to provide alternative water supplies beyond those typically used by the industry. The Commission acknowledges the use of reclaimed water can help reduce the demand on other sources, such as groundwater and surface water, that can more readily be utilized for potable purposes. As such, the Commission is adopting several changes to Regulation 84 that will regulate the use of reclaimed water within Oil and Gas Operations processes. The changes are an important step toward furthering the goals of the State's Water Plan while ensuring the protection of public health and environment. The changes include several new definitions, new Additional Conditions to address the use of reclaimed water within Oil and Gas Operations, and new requirements to address user plans to comply for specific oil and gas operation sites.
The Commission has included two new definitions; one for the new use category of "Oil and Gas Operations" and one for "lay flat hose". The "Oil and Gas Operations" definition is meant to build continuity between regulations, and clarity on what is included in the new use category. "Lay flat hose" is a common hose used within the oil and gas industry that can be useful for Treaters to provide a temporary distribution system for users. Several new best management practices (Additional Conditions) have been introduced within the regulation surrounding how reclaimed water is used by approved Users. The new definitions were added to reflect references for the new requirements and approved industrial uses in Regulation 84.
Section 84.5 - Lay Flat Hose is a staple for industries to transport liquids quickly, efficiently, and timely for temporary events. Oil and gas operation's is a growing industry within Colorado that has unique demands on water such that they often require very large volumes of water for a short period of time, and disposal after usage removes the water from the natural water cycle. For instance, a site may need 9 - 12 million gallons of water over a period of 5 - 7 days to complete a single well. The demand for water to any given Oil and Gas Operations site ends up being temporary in nature; therefore, the infrastructure necessary to deliver the water also tends to be temporary in nature as opposed to more permanent infrastructure. The use of temporary lay flat hose helps to deliver the water supply, but also helps reduce road traffic and minimize environmental impacts that would result from the multitude of trips necessary to deliver large amounts of water over a short period.
Section 84.5 - The definition of Oil and Gas Operations replicates the definition adopted by the Colorado Oil and Gas Conservation Commission (COGCC) Rule 100 Series - Definitions. This develops continuity between the regulations, which will be helpful to all parties involved with this regulation, since COGCC regulations will oversee the disposal of used reclaimed water from Oil and Gas Operations Users.
Section 84.5 - The definition of Site was modified to include conveyance and storage, under the operational control of the user. This was necessary since temporary conveyance systems could be used by Oil and Gas Operations and other approved uses.
Section 84.9 Additional Conditions Required, was revised with the following modifications:
Section 84.9 (13) added an Additional Condition requiring advanced training of staff prior to their initial shift and annually thereafter. This is protective to the staff by informing them that reclaimed water was being used on site and the procedures they need to follow to be safe when working with reclaimed water. The training would include implementing Additional Conditions and the requirements in the User Plan to Comply (UPC).
Section 84.9 (16) The signage Additional Condition was modified by removing the phrase "to irrigate crops". This modification removes this narrow interpretation that this Additional Condition is only applicable "to irrigate crops". This Additional Condition can be applied to a majority of approved uses and can protect the public through notifications that reclaimed water is used at the location.
Section 84.9 (37) Additional Conditions for lay-flat hoses, couplings, and other appurtenances were created for lay flat hose deployment and usage. Lay flat hose will be installed in accordance to industry standards for integrity utilizing hydrostatic pressure testing procedures. The requirement includes cross-connection control methods be implemented when connecting to other water sources. The User is required to install and maintain leak detection equipment on the lay flat hose and perform daily inspection of the entire transmission line for spill prevention and countermeasure. The hose will be marked as non-potable water transmission line and signage, identifying the liquid being transmitted within the hose, is required at the mid-point of each section of hose or approximately every 350 feet. These requirements serve to notify the public, Users, and Treaters about the content within the hose. These preventive and notification requirements are industry standards that are required during installation of more permanent pipelines and applicable to temporary conveyance systems. The signage and labeling requirements protect the public by informing them of the contents of the hose and notifying them that it is non-potable water.
Section 84.9 (38) Additional Conditions for vehicles and tank trailers were created for hauling reclaimed water. The requirement includes cross-connection control methods that must be implemented when loading the tanker, labelling the tanker as containing non-potable water, and spill reporting requirement. These requirements will protect other water supplies that maybe accessed by the hauler and protect the public by notifying them of the contents in the tank. The potential for spills exists with any transfer or transportation operation, hence the requirement for reporting a spill as required by CRS § 25-8-601(2).
Section 84.9 (39) An additional Condition for delivery through temporary conveyances was created to reiterate the requirement that the conveyance system needs to comply with the definition of lay-flat hose. The conveyance shall be deployed utilizing the industry standards identified in the definition of lay-flat hose and the associated Additional Condition. This clarifies that the temporary conveyances shall be protect the environment by following the industry standards and that the public will be able to identify the contents in the conveyance.
Section 84.9 (40) An Additional Condition for disposal of reclaimed water was created for managing the disposal of reclaimed water from any storage, conveyance or other source. The User is required to dispose of reclaimed water in a manner that doesn't create a point source discharge of pollution into State Waters or is a reportable spill as specified in § 25-8-601(2) CRS. This requirement protects the environment and public by advising the User of the need to properly dispose of any excess reclaimed water or to obtain a permit for a point source discharge.
Section 84.9 (41) The Additional Condition for notification of conveyance deployment, usage, or removal requires the User to notify the Division and Treater when a temporary conveyance is being used or is being withdrawn for service. This notification allows the Treater to manage the reclaimed water by knowing when and where reclaimed water is used and to schedule compliance activities as necessary. The Division would receive the notification for use in scheduling their compliance activities.
Section 84.9 (42) The Additional Condition for analyzing reclaimed water for microbial characteristics upon delivery to the site and during storage on the site. Though any water received on-site is subjected to microbial analysis, this requirement will be protective of the infrastructure installed to the formation and the formation environment by reducing the risk of microbial contamination.
Section 84.10 was added to detail the responsibilities of the Treater and Site Manager of Oil and Gas Operation sites. The Treater is responsible for reviewing the User Plan to Comply (UPC) for completeness, accuracy, recordkeeping, inspections, and implementation of Additional Conditions. The Site Manager is responsible for adherence to NOA and UPC requirements. Specifying the responsibilities supports the overall hierarchal structure of Regulation 84 and clearly identifies accountability of the parties involved with managing reclaimed water.
Section 84.12 was added to provide specific requirements in the User Plan to Comply for Oil and Gas Operation sites. These include, contact information, description of how and where reclaimed water is used, cross-connection control requirements, hydrostatic testing requirements for temporary lay-flat hose or pipelines, and labelling requirements for temporary lay-flat hose or pipelines. This requirement was developed by modifying the requirements in Section 84.12 and adding details specific to Oil and Gas Operations. The baseline information is the same for all Users, however the specifics associated with conveyance systems and labeling temporary lay flat hose or pipelines is necessary to protect the environment and notify the public.
5 CCR 1002-84.28