Abstract

In 1998, the U.S. Environmental Protection Agency ruled that wastes associated with exploration, development, and production of crude oil or natural gas were exempt from regulation under Subtitle C of the Resource Conservation and Recovery Act. Along with this ruling, the U.S. Environmental Protection Agency created lists of wastes related to oil and natural gas exploration, development, and production that were exempt from and not exempt from Subtitle C regulation. The key defining criteria as to whether a given waste is exempt or not exempt lies in the waste’s application to the exploration, development, or production of crude oil or natural gas. For a waste to be exempt, it must be unique to the oil and natural gas exploration, development, or production industry. This criterion has been applied and modified throughout its existence to exempt several groups of such wastes. The correct application of this exemption to offshore oil and natural gas exploration, development, or production is critical to successfully managing wastes associated with all aspects of offshore drilling. Too often, serious mistakes are made in offshore waste management due to a misunderstanding of the exemption. Although many types of offshore service company wastes are well associated with hydrocarbon exploration and production, those wastes have equally strong associations with other nonhydrocarbon industries. Many wastes commonly associated with offshore service companies are not exempt and pose detailed requirements for storage and disposal. Understanding exactly which wastes meet the exemption and which wastes do not is critical to continued, successful, and efficient offshore oil and gas exploration.