In re General Permit for Discharges from Oil & Gas Exploration, Development, & Production Facilities, Permit Number: LAG260000

70 So. 3d 101, 2010 La.App. 1 Cir. 1640, 2011 La. App. LEXIS 735, 2011 WL 2297790
CourtLouisiana Court of Appeal
DecidedJune 10, 2011
DocketNo. 2010 CA 1640
StatusPublished

This text of 70 So. 3d 101 (In re General Permit for Discharges from Oil & Gas Exploration, Development, & Production Facilities, Permit Number: LAG260000) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re General Permit for Discharges from Oil & Gas Exploration, Development, & Production Facilities, Permit Number: LAG260000, 70 So. 3d 101, 2010 La.App. 1 Cir. 1640, 2011 La. App. LEXIS 735, 2011 WL 2297790 (La. Ct. App. 2011).

Opinion

GUIDRY, J.

|gThe Louisiana Environmental Action Network (LEAN) appeals a judgment of the district court affirming a decision of the Louisiana Department of Environmental Quality (the LDEQ) to re-issue a National Pollutant Discharge Elimination System (NPDES)1 permit for discharge of pollutants from oil and gas production into the territorial seas of Louisiana2 as a Louisiana Pollutant Discharge Elimination System (LPDES)3 permit. The permit, [103]*103issued October 13, 2009, and effective January 1, 2010, governs the discharge of deck drainage; produced water; well treatment, completion, and workover fluids; treated sanitary and domestic waste; hydrostatic test wastewater; other miscellaneous discharges from oil and gas exploration, development, and production facilities located in the territorial seas of Louisiana; and the discharge of produced water to the territorial seas of Louisiana from oil and gas exploration, development, and production facilities located in the Outer Continental Shelf waters off the coast of Louisiana.

The original NPDES permit issued by the United States Environmental Protection Agency (EPA) in 1997 expired on December 3, 2002, but was administratively continued by the LDEQ, pending its review of the application for [^renewal of the permit.4 Opponents5 to the permit contend that the testing and monitoring requirements for the discharge of produced water imposed in the permit are insufficient to adequately insure that environmental costs are being minimized or avoided as much as possible consistent with the public welfare.6

The Louisiana Constitution mandates that “[t]he natural resources of the state, including air and water, and the -healthful, scenic, historic, and esthetic quality of the environment shall be protected, conserved, and replenished insofar as possible and consistent with the health, safety, and welfare of the people.” La. Const, art. IX, § 1. Moreover, applicable water quality regulations provide:

No substances shall be present in the waters of the state or the sediments underlying said waters in quantities that alone or in combination will be toxic to human, plant, or animal life or significantly increase health risks due to exposure to the substances or consumption of contaminated fish or other aquatic life. The numerical criteria (LAC [104]*10433:IX.1113.C.6) specify allowable concentrations in water for several individual toxic substances to provide protection from the toxic effects of these substances.

[4LAC 33:IX.1113.B.5.

As has been routinely held since the Louisiana Supreme Court’s landmark decision in Save Ourselves, Inc. v. Louisiana Environmental Control Commission, 452 So.2d 1152 (La.1984), a decision of the LDEQ must satisfy the issues of whether: (1) the potential and real adverse environmental effects of the proposed project have been avoided to the maximum extent possible; (2) a cost-benefit analysis of the environmental impact costs balanced against the social and economic benefits of the project demonstrate that the latter outweighs the former; and (3) there are no alternative projects or alternative sites or mitigating measures which would offer more protection to the environment than the proposed project without unduly curtailing non-environmental benefits to the extent applicable. See e.g. In re Belle Co., L.L.C., 00-0504, pp. 16-17 (La.App. 1st Cir.6/27/01), 809 So.2d 225, 238. Furthermore, as a public trustee, the LDEQ is duty-bound to demonstrate that it has properly exercised the discretion vested in it by making basic findings supported by evidence and ultimate findings that flow rationally from the basic findings; and it must articulate a rational connection between the facts found and the order, or in this case, the permit issued.7 See Save Ourselves, Inc., 452 So.2d at 1159-60.

When reviewing a decision of the LDEQ, the court may affirm or remand the case for further proceedings. The court may also reverse or modify an agency decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are: (1) in violation |fiof constitutional or statutory provisions; (2) in excess of the statutory authority of the agency; (3) made upon unlawful procedure; (4) affected by other error of law; (5) arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion; or (6) not supported and sustainable by a preponderance of the evidence as determined by the reviewing court. La. R.S. 49:964(G); see also La. R.S. 30:2050.21(F) (providing that the standard of review contained in La. R.S. 49:964(G) shall apply to an appeal of a final permit action).

The main concern raised in this matter is the fact that the permit does not provide for any direct testing of the sediments and marine life of the territorial seas to verify that no significant environmental impacts are being caused by produced water discharges. At the time the original NPDES permit was issued in 1997, there was no regulatory authorization of such discharges to the area of the territorial seas. However, at the time the LDEQ reviewed the NPDES permit for re-issuance as an LPDES permit, such regulated discharges had been allowed for several years under [105]*105the existing NPDES permit. The LDEQ maintains that the imposition of effluent limitations, monitoring requirements, and toxicity testing adequately address bioac-cumulation concerns. In replying to public comments raising concerns regarding the cumulative impact of discharges of produced water on the hypoxic zone,8 marine organisms, and sediment quality,9 the LDEQ issued the following responses:

A. Bioaccumulation was one of the factors considered in the establishment of water quality criteria. The nature of the discharges included in the general permit coupled with technically sound permit limits provide reasonable assurance for compliance with water quality standards of the receiving water bodies.
Produced water does not contain large amounts of oxygen demanding substances (mostly oil and grease and toxic pollutants), therefore limitations or monitoring requirements for biological | fioxygen demand, 5-day (BOD5) are not included in the general permit for produced water. Produced water has not been attributed to the “dead zone.” The dead zone is mostly attributed to a nutrient overload from the Mississippi River. A report published by John A. Veil, Todd A. Kim-mell, and Abbey C. Rechner of the Environmental Assessment Division, Argonne National Laboratory, in August 2005[,] looked at the dead zone and considered the contribution of produced water. The report provided this information: “It is also important to consider that offshore platforms discharge to open ocean environments that are subject to wind and wave action. Discharges that are made anywhere near the surface will receive abundant reoxygenation due to the natural processes. More than half of the platforms identified as discharging produced water to the hypoxic zone discharge at or above the surface of the ocean. About 93% of those platforms discharge in the top 20 feet of the water column. This should provide effective mitigation for some of the oxygen-demanding pollutants .... ”
B.

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Related

Save Ourselves, Inc. v. La. Environ. Cont. Com'n
452 So. 2d 1152 (Supreme Court of Louisiana, 1984)
In Re Belle Co., LLC
809 So. 2d 225 (Louisiana Court of Appeal, 2001)
In re West Pearl River Navigation Project
657 So. 2d 640 (Louisiana Court of Appeal, 1995)

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Bluebook (online)
70 So. 3d 101, 2010 La.App. 1 Cir. 1640, 2011 La. App. LEXIS 735, 2011 WL 2297790, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-general-permit-for-discharges-from-oil-gas-exploration-lactapp-2011.