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Oil and Gas Extraction Sector Notebook ProjectI. INTRODUCTION TO THE SECTOR NOTEBOOK PROJECTI.A. Summary of the Sector Notebook Project

Environmental policies based upon comprehensive analysis of air, water andland pollution (such as economic sector, and community-based approaches)are becoming an important supplement to traditional single-media approachesto environmental protection. Environmental regulatory agencies are beginningto embrace comprehensive, multi-statute solutions to facility permitting,compliance assurance, education/outreach, research, and regulatorydevelopment issues. The central concepts driving the new policy direction arethat pollutant releases to each environmental medium (air, water and land)affect each other, and that environmental strategies must actively identify andaddress these interrelationships by designing policies for the "whole" facility.One way to achieve a whole facility focus is to design environmental policiesfor similar industrial facilities. By doing so, environmental concerns that arecommon to the manufacturing of similar products can be addressed in acomprehensive manner. Recognition of the need to develop the industrial

sector-based” approach within the EPA Office of Compliance led to thecreation of this document.The Sector Notebook Project was initiated by the Office of Compliance withinthe Office of Enforcement and Compliance Assurance (OECA) to provide itsstaff and managers with summary information for eighteen specific industrialsectors. As other EPA offices, states, the regulated community,environmental groups, and the public became interested in this project, thescope of the original project was expanded. The ability to designcomprehensive, common sense environmental protection measures for specificindustries is dependent on knowledge of several interrelated topics. For thepurposes of this project, the key elements chosen for inclusion are: generalindustry information (economic and geographic); a description of industrialprocesses; pollution outputs; pollution prevention opportunities; federalstatutory and regulatory framework; compliance history; and a description of partnerships that have been formed between regulatory agencies, the regulatedcommunity and the public.For any given industry, each topic listed above could alone be the subject of a lengthy volume. However, in order to produce a manageable document, thisproject focuses on providing summary information for each topic. Thisformat provides the reader with a synopsis of each issue, and references wheremore in-depth information is available. Text within each profile wasresearched from a variety of sources, and was usually condensed from moredetailed sources pertaining to specific topics. This approach allows for a widecoverage of activities that can be further explored based upon the referencesSector Notebook Project 1 October 2000

Oil and Gas Extraction Sector Notebook Project

listed at the end of this profile. As a check on the information included, eachnotebook went through an external document review process. The Office of Compliance appreciates the efforts of all those that participated in this processand enabled us to develop more complete, accurate and up-to-datesummaries. Many of those who reviewed this notebook are listed as contactsin Section IX and may be sources of additional information. The individualsand groups on this list do not necessarily concur with all statements within thisnotebook.

I.B. Additional InformationProviding Comments

OECA’s Office of Compliance plans to periodically review and update thenotebooks and will make these updates available both in hard copy andelectronically. If you have any comments on the existing notebook, or if youwould like to provide additional information, please send a hard copy andcomputer disk to the EPA Office of Compliance, Sector Notebook Project(2223-A), 401 M St., SW, Washington, DC 20460. Comments can also besent via the web page.

Adapting Notebooks to Particular Needs

The scope of the industry sector described in this notebook approximates thenational occurrence of facility types within the sector. In many instances,industries within specific geographic regions or states may have uniquecharacteristics that are not fully captured in these profiles. The Office of Compliance encourages state and local environmental agencies and othergroups to supplement or re-package the information included in this notebook to include more specific industrial and regulatory information that may beavailable. Additionally, interested states may want to supplement the"Summary of Applicable Federal Statutes and Regulations" section with stateand local requirements. Compliance or technical assistance providers mayalso want to develop the "Pollution Prevention" section in more detail. Pleasecontact the appropriate specialist listed on the opening page of this notebook if your office is interested in assisting us in the further development of theinformation or policies addressed within this volume. If you are interested inassisting in the development of new notebooks, please contact the Office of Compliance at (202) 564-2310.Sector Notebook Project 2 October 2000

Oil and Gas Extraction Introduction, Background, and ScopeII. INTRODUCTION TO THE OIL AND GAS EXTRACTION INDUSTRY

This section provides background information on the size, geographicdistribution, employment, production, sales, and economic condition of the oiland gas extraction industry. Facilities described within the document aredescribed in terms of their Standard Industrial Classification (SIC) codes.

II.A. Introduction, Background, and Scope of the Notebook

This industry sector profile provides an overview of the oil and gas industryas listed under SIC code 13. The SIC code 13 encompasses the oil and gasextraction process from the exploration for petroleum deposits up until thetransportation of the product from the production site. There are five majorgroups within SIC code 13:

SIC 1311

Crude petroleum and natural gas.

Establishments in this industryare primarily involved in the operation of oil and gas field properties.Establishments under this category might also perform exploration for crudeoil and natural gas, drill and complete wells, and separate the crude oil andnatural gas components from the natural gas liquids and produced fluids.

SIC 1321. Natural gas liquids.

This industry is comprised of establishmentsthat separate natural gas liquids from crude oil and natural gas at the site of production. Examples of these gases are propane and butane. Natural gasliquids producers that remove additional material at petroleum refineries areclassified under SIC code 29, and establishments that recover other salablecontaminants such as helium are classified under SIC code 28.

SIC 1381. Drilling oil and gas wells.

This industry is made up of establishments that drill wells on a contract or fee basis.

SIC 1382. Oil and gas field exploration services

. Establishments in thisindustry perform geological, geophysical and other exploration services for oiland gas on a contract or fee basis.

SIC 1389. Oil and gas field services, not elsewhere classified (NEC).

Establishments in this industry perform services on a contract or fee basis thatare not elsewhere classified. These include the preparation of drilling sites bybuilding foundations and excavating pits, the completion of wells andpreparation for production, and the performing of maintenance.While this notebook covers all of the SIC codes listed above, the diversenature of the industries will not allow a detailed description of each. Since theservice industries (SIC codes 1381, 1382, and 1389) and natural gas liquidsindustry (SIC code 1321) are tied to the economic, geographic, andSector Notebook Project 3 October 2000

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Environmental Protection Agency: oilgaspt1

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