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CSSSHB 128(RES) AM: "An Act relating to the disposal of wastes; giving the Alaska Oil and Gas Conservation Commission authority to regulate disposal in the annular space of an oil or gas well, or in the annular space of a water well associated with exploration and production of oil or gas, of drilling mud, cuttings, and nonhazardous drilling operation wastes, and exempting that disposal from the requirement of a waste disposal permit issued by the Department of Environmental Conservation; and establishing an exemption from the requirement of obtaining a waste disposal permit from the Department of Environmental Conservation for certain activities that yield solid and liquid waste material discharges and cooling water discharges."

00CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 128(RES) am 01 "An Act relating to the disposal of wastes; giving the Alaska Oil and Gas 02 Conservation Commission authority to regulate disposal in the annular space of 03 an oil or gas well, or in the annular space of a water well associated with 04 exploration and production of oil or gas, of drilling mud, cuttings, and 05 nonhazardous drilling operation wastes, and exempting that disposal from the 06 requirement of a waste disposal permit issued by the Department of 07 Environmental Conservation; and establishing an exemption from the requirement 08 of obtaining a waste disposal permit from the Department of Environmental 09 Conservation for certain activities that yield solid and liquid waste material 10 discharges and cooling water discharges." 11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 12 * Section 1. AS 31.05.030(e) is amended to read: 13  (e) The commission may regulate 14  (1) [,] for conservation purposes

01  (A) [(1)] the drilling, producing, and plugging of wells; 02  (B) [(2)] the shooting and chemical treatment of wells; 03  (C) [(3)] the spacing of wells; 04  (D) [(4)] the disposal of salt water, nonpotable water, and oil 05 field wastes; 06  (E) [(5)] the contamination or waste of underground water; 07  (F) [(6)] the quantity and rate of the production of oil and gas 08 from a well or property; this authority shall also apply to a well or property in 09 a voluntary cooperative or unit plan of development or operation entered into 10 in accordance with AS 38.05.180(p); 11  (2) the disposal of drilling mud, cuttings, and nonhazardous drilling 12 operation wastes in the annular space of an oil or gas well or in the annular space 13 of a water well associated with oil or gas exploration and production; in this 14 paragraph, a "nonhazardous drilling operation waste" means a waste, other than 15 a hazardous waste identified by the Environmental Protection Agency in 40 16 C.F.R., Part 261, its regulation identifying and listing hazardous wastes, associated 17 with the act of drilling an oil or gas well for exploratory or production purposes. 18 * Sec. 2. AS 46.03.100(d) is amended to read: 19  (d) This section does not apply to 20  (1) disposal, in the annular space of a well, of drilling mud, 21 cuttings, and nonhazardous drilling operation wastes under AS 31.05.030(e)(2); 22 or 23  (2) injection projects permitted under AS 31.05.030(h). 24 * Sec. 3. AS 46.03.100 is amended by adding a new subsection to read: 25  (f) Except as to discharges arising out of exploration and development drilling 26 for oil and gas resources, this section does not apply to 27  (1) discharges of solid or liquid waste material or water discharges that 28 will arise from 29  (A) the following activities if the discharge is incidental to the 30 activity, and the activity does not produce a discharge from a point source, as 31 that term is defined in regulations adopted under this chapter, directly into any

01 surface water of the state: 02  (i) mineral drilling, trenching, ditching, and similar 03 activities; 04  (ii) landscaping; 05  (iii) water well drilling, geophysical drilling, or coal bed 06 methane drilling; 07  (B) drilling, ditching, trenching, and similar activities associated 08 with facility construction and maintenance or with road or other transportation 09 facility construction and maintenance if the discharge is incidental to the 10 drilling, ditching, trenching, or similar activity, and the drilling, ditching, 11 trenching, or similar activity does not produce a discharge from a point source, 12 as that term is defined in regulations adopted under this chapter, directly into 13 any surface water of the state; however, the exemption provided under this 14 subparagraph does not relieve a person from obtaining a permit under (a) of 15 this section if the drilling, ditching, trenching, or similar activity will involve 16 the removal of the groundwater, stormwater, or wastewater runoff that has 17 accumulated and is present at an excavation site for facility, road, or other 18 transportation construction or maintenance; or 19  (C) bilge pumping, unless the bilge product pumped may be 20 expected to yield an oily sludge, emulsion, or sheen on the surface of any 21 water of the state; or 22  (2) cooling water discharges from a boat or vessel into any surface 23 water of the state.