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HomeMy WebLinkAboutDSHW-2025-002103 Brad R. Cahoon Shareholder brad.cahoon@dentons.com O 1+ (801) 415-3000 Dentons Durham Jones Pinegar P.C. 111 South Main Street, Suite 2400 Salt Lake City, Utah 84111 United States dentons.com April 17, 2025 Via Email dwmrcsubmit@utah.gov Douglas J. Hansen, Director Utah Division of Waste Management and Radiation Control Utah Department of Environmental Quality Attn: Bryan Watt; Nathan Nicolodemos PO Box 144880 Salt Lake City, UT 84114-4880 Re: EEI’s Application for E&P Waste Facility Temporary Permit Dear Director Hansen: This firm represents Environmental Energy Innovations, LLC (“EEI”) in responding to the public comments of Integrated Water Management, LLC (“IWM”) on EEI’s Exploration and Production (“E&P”) Waste Facility Temporary Permit (“Application”), which Application is pending before the Director. As set forth below, the Director should (i) approve and issue to EEI a temporary permit because the Application satisfies all applicable laws, and (ii) disregard IWM’s comments because they have no basis in law or fact. EEI’s General Response to IWM’s Comments: IWM’s comments fail from the start. Although IWM’s comments are directed to EEI’s Application, the substance of IWM’s comments are grounded in Senate Bill 159 (“SB 159”) that does not apply to the Application. SB 159 applies only to operations and permits for Class VII facilities, not temporary permits issued under Utah Admin. Code R315-321-4(8), like the Application that is currently pending before the Director. UAC R315-321-4(8) states, “If the director determines that a temporary permit is protective of human health and the environment a temporary permit may be issued to facilitate the owner’s or operator’s good faith transition from regulation under Rule R649-9 to regulation under Rule R315-321 or R315-322.”. In accordance with this rule, the Application demonstrates that a temporary permit for EEI is protective of human health and the environment and will allow EEI’s good faith transition to be regulated by the Director. IWM, however, does not confront the Application under this standard. On this basis alone, the Director should disregard IWM’s comments and approve the Application. IWM’s comments also fail for other reasons. EEI responds to each of IWM’s seven comments in sequence, with IWM’s seven comment headers restated in italics below, followed by EEI’s responses. IWM Comment No. 1: The Director is Prohibited Under S.B. 159 from Approving EEI’s Operation Plan or Temporary Permit. EEI Response: IWM argues that the Director cannot approve EEI’s operation plan or permit under Subsection 12(a) of SB 159 because EEI did not have an approved operation plan or permit in accordance with Subsection 12(b). But IWM misconstrues and misapplies SB 159. Section 12 of SB 159 states: (a) The director may not approve an operation plan or permit for a nonhazardous solid waste class VII landfill facility unless, based on the application, the operation plan and permit contain engineering plans and specifications for cell design that includes: (i) an impervious synthetic liner Douglas J. Hansen, Director April 17, 2025 Page 2 dentons.com SL_7778878.2 system that has hydraulic conductivity no greater than 1E-7 centimeters per second; or (ii) a clay liner system equivalent to a liner system described in Subsection (12)(a)(i). (b) A nonhazardous solid waste class VII landfill facility is considered to have an approved operation plan or permit for purposes of Subsection (12)(a) if the nonhazardous solid waste class VII landfill facility: (i) on January 1, 2025, was permitted by the Division of Oil, Gas, and Mining; and (ii) on or before May 7, 2025, obtains a temporary permit, as defined by rule made in accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, for the nonhazardous solid waste class VII landfill facility. (Emphasis added.) Under a plain reading of SB 159, Subsections 12(a) and (b) offer an applicant two different avenues for obtaining a class VII operation plan or permit. To obtain approval under subsection (a), the applicant must demonstrate “an impervious synthetic liner system that has hydraulic conductivity no greater than 1E-7 centimeters per second; or (ii) a clay liner system equivalent to a liner system described in Subsection (12)(a)(i).” Conversely, under Subsection (b), which operates as a grandfathering clause, by law the applicant already has an approved operation plan or permit if the Division of Oil, Gas and Mining (“DOGM”) permitted the facility before January 1, 2025, and the applicant obtained a temporary permit before May 7, 2025. EEI satisfies Subsection 12(a). EEI’s civil engineer has determined that the natural clay liner beneath EEI’s facility is equivalent to a synthetic liner described in Subsection (12)(a)(i): (Letter, dated April 10, 2025, from CIVCO Engineering, Inc. to EEI attached as Exhibit 1 hereto (“CIVCO April 2025 Letter”).) And IWM presents no evidence to the contrary. Even though SB 159 is inapplicable to the Application (as discussed above), the Director may approve the Application and the forthcoming class VII application because the natural clay liner beneath EEI’s facility is equivalent to a synthetic liner described in Subsection (12)(a)(i). Approving a temporary permit for EEI is protective of human health and the environment. In addition, SB 159 Subsection (b)(i) is written in error because DOGM does not permit and has never permitted any class VII landfill, only the Director permits landfills. But this defect in SB 159 is immaterial because EEI satisfies Subsection (a) as explained above. Douglas J. Hansen, Director April 17, 2025 Page 3 dentons.com SL_7778878.2 IWM Comment No. 2: EEI’s Facility is Not and Will Not Be in Compliance with the Act, or the Terms of the Temporary Permit. EEI Response: Without offering any evidence, IWM asserts that a temporary permit cannot comply with SB 159 because the facility has no synthetic liner or natural equivalent liner as required by Subsection 12(a). EEI incorporates its response to IWM Comment No. 1. To repeat, SB 159 does not apply to the Application and the EEI’s pending class VII application satisfies Subsection 12(a) because its natural clay liner is equivalent to the synthetic liner described in Subsection (12)(a)(i). Approving a temporary permit for EEI is protective of human health and the environment. IWM Comment No. 3: EEI’s Facility is Not and Will Not Be in Compliance with the Applicable Rules (“Standards for Design”), or the Terms of the Temporary Permit. EEI Response: IWM asserts that “[t]he owner or operator of a Class VII landfill shall comply with the requirements relating to the management of high liquid wastes set forth in Subsection R315-303-3(2).” R315-321-4(2)(c)…[t]he direct disposal of high liquid wastes in landfill cells is prohibited unless the owner or operator implements appropriate measures described in a high liquid waste management plan approved by the director and included in the plan of operation….” The Director’s proposed temporary permit for EEI on page 15 incorporates EEI’s “South Myton Bench Landfarm Plan of Operation.” EEI’s operations plan includes a detailed high liquid waste (“HLW”) management plan and procedures. (See EEI Cell #7 Landfill Application, at 12-13, 78-80.) There is no basis for the Director to reject EEI’s HLW management plan. IWM supplies no data or evidence that EEI has mismanaged HLW because none exists. There is no basis for the Director to deny EEI’s Application based on EEI’s HLW management plan or on grounds that EEI might commit a future violation. Approving a temporary permit for EEI is protective of human health and the environment. IWM Comment No. 4: EEI’s Operation is Not and Will Not Be in Compliance with the Applicable Rules (“Groundwater Monitoring Requirements” & “General Facility Requirements”), or the Terms of the Temporary Permit. EEI Response: IWM claims that EEI would be subject to “R315-308, the “’Groundwater Monitoring Requirements,’ and R315-302-2, the ‘General Facility Requirements’ for solid waste facilities. More specifically, R315-308-1 and R315-321-4(3) require EEI’s facility to have a groundwater monitoring system. In addition, R315-302-2(2), captioned ‘Plan of Operation,’ provides that each owner or operator shall develop and abide by a plan of operation approved by the director, and that the plan of operation include, among other things, ‘a description of maintenance of . . . groundwater monitoring systems.’ R315-302-2(2)(i).” But the law is not as stark as IWM suggests. R315-302-1(b)(vi)(A) allows the Director to waive groundwater monitoring “if a solid waste disposal facility is to be located over an area where the groundwater has a TDS of 10,000 mg/l or greater, or where there is an extreme depth to groundwater, or where there is a natural impermeable barrier above the groundwater, or where there is no groundwater, the director may approve, on a site specific basis, an alternative groundwater monitoring system at the facility or may wa[i]ve the groundwater monitoring requirement. If groundwater monitoring is wa[i]ved the owner or operator shall make the demonstration stated in Subsection R315- 308-1(3).” (Emphasis added.) R315-308-1(3) states: Groundwater monitoring requirements may be waived by the director if the owner or operator of a solid waste disposal facility can demonstrate that there is no potential for migration of hazardous constituents from the facility to the groundwater during the active life of the facility and the post- closure care period. This demonstration shall be certified by a qualified groundwater scientist and approved by the director, and [shall] be based upon: Douglas J. Hansen, Director April 17, 2025 Page 4 dentons.com SL_7778878.2 (a) site-specific field collected measurements, sampling, and analysis of physical, chemical, and biological processes affecting contaminant fate and transport; and (b) contaminant fate and transport predictions that maximize contaminant migration and consider impacts on human health and the environment. The Director may waive groundwater monitoring for EEI based on the data and analyses contained in EEI’s Class VII Application, Tab 11, Ground Water Analysis, and Tab 13 Snowshoe Permeability Report and the CIVCO April 2025 Letter. The data confirm that there is no groundwater, a natural impermeable clay barrier, and no basis to require fate and transport analysis. EEI has operated its landfarms with multiple approvals and renewals and oversight by the Utah Division of Oil, Gas and Mining (“DOGM”) beginning in 2011. DOGM approved the closure of EEI’s landfarm cells 1-5 and 9-12 on January 9, 2025. DOGM has never required any groundwater monitoring or synthetic liners because the EEI property has a natural clay barrier and no groundwater. The Director first permitted EEI’s cell #6 in 2012 and in 2023 issued a waste pile permit for EEI’s cell #7 for which EEI is now seeking from the Director a temporary permit and a class VII landfill permit. Like DOGM, the Director never required groundwater monitoring because there is a natural clay barrier and no groundwater. Based on the data, the Director should waive groundwater monitoring in approving EEI’s Application and Class VII Application. Approving a temporary permit for EEI is protective of human health and the environment. IWM Comment No. 5: EEI’s Recordkeeping is Not in Compliance with the Applicable Rules (“General Facility Requirements” & “Recordkeeping Requirements,”), or the Terms of the Temporary Permit. EEI Response: IWM again emphasizes, “[e]ach owner or operator shall maintain and keep, on-site or at a location approved by the director, the following permanent records: (a) a daily operating record, to be completed at the end of each day of operation, that shall contain: … (iv) results of groundwater and gas monitoring .… R315-302-2(3)(a)(iv).” EEI incorporates its response to IWM Comment No. 5. Because there is no basis to require groundwater monitoring, there is no basis to require corresponding recordkeeping. The Director should waive monitoring recordkeeping requirements in approving EEI’s Application and its Class VII Application. Approving a temporary permit for EEI is protective of human health and the environment. IWM Comment No. 6: The Cost to Close EEI’s Clay-lined Facility Will Exceed EEI’s Reclamation Bond. EEI Response: Without offering any evidence, IWM asserts that the costs to close EEI’s facility will exceed its reclamation bond. This is not true. UAC R315-321-4(8)(c) states that the “owner or operator of an existing exploration and production facility applying for a temporary permit under Subsection R315-321-4(8) shall provide financial assurance in an amount determined appropriate by the director. In calculating the appropriate financial assurance amount, the director may, but is not required to, rely on bond calculations performed by the Division of Oil, Gas, and Mining.” DOGM approved a $25,000 letter of credit for EEI, but EEI has updated its financial assurance for its cover and post-closure plan as part of the Application process. And importantly, the landfill material will not need to be removed upon closure because of the natural clay liner beneath EEI’s facility is equivalent Douglas J. Hansen, Director April 17, 2025 Page 5 dentons.com SL_7778878.2 to a synthetic liner described in Subsection (12)(a)(i). All that will be required to close the facility is a cover over the material , and the estimated financial assurance amount is adequate to cover this work. Approving a temporary permit for EEI is protective of human health and the environment. IWM Comment No. 7: Because EEI Has Ignored and Continues to Ignore the Various Rules for Handling High Liquid Waste, EEI’s Application for Temporary Permit Should be Denied.. EEI Response: Without any evidence, IWM claims that EEI ignores rules and permit requirements. EEI incorporates its response to IWM Comment No. 3. EEI has and will continue to follow all applicable rules and requirements. EEI has an excellent record of years of compliance. Approving a temporary permit for EEI is protective of human health and the environment. EEI respectfully requests that the Director issue the temporary permit. Very truly yours, Dentons Bradley R. Cahoon cc: bspeer@utah.gov jknudsen@utah.gov nanicolodemos@utah.gov mbanks@parrbrown.com Douglas J. Hansen, Director April 17, 2025 Page 6 dentons.com SL_7778878.2 Exhibit 1 CIVCO April 2025 Letter CIVCO Engineering, Inc. Civil Engineering Consultants PO Box 1758 * 1256 W 400 S, Suite 1 Vernal, Utah 84078 Phone (435)789-5448 * Fax (435)789-4485 Email: civco@civcoengineering.com April 10, 2025 ENVIRONMENT ENERGY INNOVATIONS PLEASANT VALLEY, UTAH Clay Liner Analysis The recent requirements are that either a synthetic liner with a permeability of 1.0E-7 cm/ sec is to be provided or an equivalent clay liner. Based on test holes for the area there is 50 feet of clay underlaying the area. The Snowshoe Report stated that the permeability of the underlaying clay layers equals 1.3E-6 cm/sec. As shown in Table 1 the following calculations were done to determine the extent of the thickness of clay needed to match the synthetic liner equivalence. •The first row shows a synthetic liner of 1 inch thickness. The 1-inch thickness was assumed as no mention to the thickness was noted in the new requirements. Typical pond liners are less than 0.1 inches thick, therefore the 1 inch thickness is conservative by a factor of 10.. •The second row shows that a clay liner 13 inches thick with a permeability of 1.3E-06 would provide equal protection as the 1-inch synthetic liner. •The third row shows that a 50 ft layer of clay (600 inches) would only need to have a permeability of 6.0E-6 to satisfy the requirements of the synthetic liner. Table 1 Mathematical Model For Alternative Clay Liner Synthetic Liner 1.00E-7 @ 1 inches 25,400,051 sec to permeate Clay Liner 1.30E-6 @ 13 inches 25,400,051 sec to permeate Clay Layers 6.00E-6 @ 600 inches 25,400,051 sec to permeate Therefore, it is my professional opinion that, the existing underlying clay satisfies the new requirements of providing either a synthetic liner with a permeability of 1.0E-7 cm/ sec is to be provided or an equivalent clay liner. Bret Reynolds, SE 4/10/2025