The Montana Board of Oil and Gas Conservation (MBOGC) is a quasi-judicial body that is attached to the Department of Natural Resources and Conservation (DNRC) for administrative purposes only. The MBOGC regulates the oil and gas industry and seeks to prevent oil and gas operations from harming nearby land or underground resources. The Montana Legislature created the Montana Department of Environmental Quality (MDEQ) and the Montana Board of Environmental Review (MBER), and gave each specific duties. Under various environmental regulatory statutes, the MBER has the rulemaking authority. This includes establishing water quality standards, requirements to prevent significant degradation of water, and standards for treatment of wastes. The MDEQ administers the major environmental protection laws.

Contact

Montana Board of Oil and Gas Conservation
(Billings Office/Main Office)
2535 St. Johns Avenue
Billings, MT 59102
(406) 656-0040 (phone)
(406) 655-6015 (fax)

Produced Water Management Practices and Applicable Regulations

Montana 's rules and regulations are published in the Administrative Rules of Montana (ARM). The rules and regulations promulgated by the Montana Board of Environmental Review (MBER) and administered by the Department of Environmental Quality (MDEQ) are found in ARM, Title 17 (Various Chapters).

• Control and Cleanup (ARM Rule 36.22.1104)
  • Owners and operators must promptly control and clean up any leak, spill, escape, or discharge, regardless of the amount of produced water involved.

• Fencing, Screening, and Netting of Pits (ARM Rule 36.22.1223)
  • Open receptacles, earthen pits, or ponds that contain produced water with more than 15,000 parts per million total dissolved solids must be fenced.

• Disposal of Water (ARM Rule 36.22.1005)
  • Produced water containing 15,000 parts per million (ppm) or less total dissolved solids (TDS) may be retained and disposed of in any manner allowed by law that does not degrade surface waters or groundwater or cause harm to soils.
  • Produced water containing more than 15,000 ppm TDS must be disposed:
• By injection into an approved Class II injection well; or,
• Into board-approved lined or unlined earthen pits, if the operator can show on permit application Form 23 that the volume of water to be disposed of per pit will not exceed five barrels per day on a monthly basis and the produced water will not degrade any existing surface water or groundwater source or cause harm to soils.
• Produced water containing more than 15,000 ppm TDS may be temporarily retained in storage tanks or board-approved, lined earthen pits or ponds prior to injection.
• The earthen pits or ponds must be constructed and maintained in accordance with ARM Rule 36.22.1227.
• Discharges of produced water must comply with all applicable local, state, and federal water quality laws and regulations.

• Underground Injection Control Rules for Class II Wells (ARM, Title 36, Chapter 22, Subchapter 14)
  • Class II injection wells include those used to inject produced water for disposal or enhanced recovery projects.
  • An oil and gas operator must apply for a permit to inject, providing specific data about the company and other required information.
  • The proposal goes through a technical review as well as a public notice and hearing process.
  • The MBOGC may regulate volume and characteristics of the injectate as well as operational requirements or limitations for the well.
  • Each well must be tested at least every five years for mechanical integrity.
  • Operators are also required to monitor the wells, characterize the injectate, and submit periodic reports.

• Montana Pollutant Discharge Elimination System (MPDES) Permits
  • The MDEQ may issue general permits for oil well produced water discharges for beneficial use (ARM Rule 17.30.1341(f)).

• Coalbed Methane Rule and Produced Water Discharge (Amendment of ARM Rule 17.30.670 and ARM Rule 17.30.1202) — In the fall of 2005, the MBER proposed very restrictive water quality regulations that would have limited the ability of coal bed methane operators to produce the gas in Montana as well as in portions of Wyoming located upstream on rivers that flow into Montana. The final version of the regulations, which were adopted in March 2006, was more moderate than the proposal. The key elements of the final rule are listed below.
  • Numeric Standards for Electrical Conductivity (EC) and Sodium Adsorption Ratio (SAR)/Nondegradation
• EC and SAR are designated as " harmful " parameters. If a change in EC and SAR is deemed significant under the "harmful" category, then any applicant would need an authorization to degrade prior to discharging. (The "harmful" category is designed as a means to determine significant changes in existing quality rather than as a standard to protect uses.)
• The MDEQ cannot authorize a discharge exceeding 10% of the numeric standard without an authorization to degrade.
• Also, if the ambient water quality in the stream is 40% of the standard or above, no additional discharge could occur without an authorization to degrade.
• Reinjection
• The rules do not require reinjection of methane wastewater back into the ground.
• Permitting Calculation
• The MDEQ Permitting Division has the discretion of using single or combined calculation methods.
• The methods are flow-based dilution and 7Q10 flow.
• Technology-Based Effluent Limitations
• The rules do not require treatment of CBM produced water to an established set of effluent limits.
• The MBER has instructed the MDEQ to work with interested parties to develop effluent limitations to be incorporated into rules to be considered for initiation.
• Coal Bed Methane Federal, State, and Local Laws, Regulations, and Permits That May Be Required