(a)
The operator shall not cause waste or pollute land or water or damage the
aquatic life of the waters or allow extraneous matter to enter and damage any
mineral- or water- bearing formation.
(b) If the waters are polluted by the
drilling or production operations conducted by or on behalf of the operator,
and such waste by pollution damages or threatens to damage aquatic life,
wildlife or public or private property, the control and total removal of the
pollutant, wheresoever found, proximately resulting therefrom shall be at the
expense of the operator. Upon failure of the operator to control waste and
remove the pollutant, the Supervisor shall have the right to accomplish the
control and removal of the pollutant in accordance with any established
contingency plan for combating oil spills or by other means at the cost of the
operator. Such action shall not relieve the operator of any responsibility as
provided herein.
(c) The operator's
liability to third parties, other than for cleaning up the pollutant in
accordance with Paragraph (b) of this section, shall be governed by applicable
law.
The Operator shall comply with the following
requirements:
1. Waste Prevention
Including Pollutant
A. Liquid Disposal
(1) Oil in any form shall not be disposed of
into the waters.
(2) Liquid waste
materials containing substances which may be harmful to aquatic life or
wildlife, or injurious in any manner to life or property, shall be treated to
avoid disposal of harmful substances into the waters.
(3) Drilling mud containing oil shall not be
disposed of into the waters.
(4)
Detergents, surfactants or dispersants in harmful quantities shall not be
introduced into the waters without prior approval of the Supervisor.
B. Solid Waste Disposal
(1) Drill cuttings, sand and other solids
shall not be disposed of into the waters without prior approval of the
Supervisor.
(2) Mud containers and
other solid waste materials shall be incinerated or transported to shore for
disposal.
C. Production
Facilities
(1) All production facilities, such
as separators, tanks, treaters and other equipment shall be such as are
necessary to control the maximum anticipated pressures and production of oil,
gas and associated sulphur, and shall be maintained at all times in a manner
necessary to prevent waste and pollution.
(2) All platforms and structures shall be
curbed and connected by drains to a collecting tank or sump unless drip pans,
or equivalents, are placed under equipment from which a pollutant may spill
into the waters and piped to a tank or sump.
(3) The operator's personnel shall be
thoroughly instructed in the techniques of equipment maintenance and operation
for the prevention of waste and pollution. Non-operator personnel shall be
informed in writing, prior to executing contracts, of the operator's
obligations to prevent waste and pollution.
2. Inspections and Reports
The operator shall comply with the following waste and
pollution inspection and reporting requirements:
A. Waste and Pollution Inspections
(1) Manned facilities shall be inspected
daily.
(2) Unattended facilities,
including those equipped with remote control and monitoring systems, shall be
inspected at frequent intervals. The Supervisor may prescribe the frequency of
inspections for these facilities.
B. Waste and Pollution Reports
(1) All spills or leakage of oil and liquid
pollutants shall be recorded showing the cause, size of spill and action taken,
and the record shall be maintained and available for inspection by the
Supervisor or duly authorized representatives.
(2) All spills or leakage of oil and liquid
pollutants of one (1) barrel or more shall be reported orally to the Supervisor
or his authorized representative without delay and shall be confirmed in
writing to the Supervisor.
(3)
Operators shall notify each other upon observation of equipment malfunction or
waste and pollution resulting from another's operation.
3. Control and Removal
A. Corrective Action
Immediate corrective action shall be taken in all cases where
waste and pollution has occurred. Each operator shall have an emergency plan
for initiating corrective action to control and remove pollution and such plan
shall be filed and reviewed with the Supervisor. Corrective action taken under
the plan shall be subject to modification when directed by the
Supervisor.
B. Equipment
Standby waste and pollution control equipment shall be
maintained by or shall be immediately available to each operator at a land base
location. This equipment shall include containment booms, skimming apparatus
and approved chemical dispersants and shall be available prior to the
commencement of operations. The equipment shall be regularly inspected and
maintained in good condition for use. The adequacy of the equipment and the
location of land bases shall be approved by the Supervisor. The operator shall
notify the Supervisor of the location at which each item of equipment is
located for operations conducted on or for each lease. All changes in location
and equipment maintained at each location shall be approved by the
Supervisor.
