WesternResource - Colorado Oil and Gas Conservation Commission

January 29, 2014
Director Matt Lepore
Colorado Oil and Gas Conservation Commission
1120 Lincoln Street, Suite 801
Denver, Colorado 80203
Submitted via email to: [email protected]
Director Lepore,
Please accept this letter from Western Resource Advocates (WRA) commenting on the Colorado Oil and
Gas Conservation Commission’s (COGCC) January 3, 2014 draft Policy on the Use of Modular Large
Volume Tanks in Colorado. WRA appreciates that the COGCC recognizes the growing use of modular
large volume tanks (MLVTs) and the potential hazard they may pose to public safety, health and the
environment without heightened attention to their proper design, siting, installation and oversight. We
also appreciate the opportunity to comment on the draft policy. WRA supports the COGCC’s draft
policy and strongly believes that MLVTs should only be used to store fresh water.
Founded in 1989, Western Resource Advocates (WRA) is a non-profit environmental law and policy
organization with a mission to protect the West’s land, air and water. We have a long history of
involvement with the COGCC with the goal of ensuring public health, our air and water, and the
environment are protected. Our interest in MLVTs is to ensure that the COGCC policy is sufficiently
protective of these same resources.
As stated in the draft policy, MLVT technology is emerging. The five catastrophic failures identified by the
COGCC illustrate that both the construction and use of MLVTs is not yet tried and true. Per the draft
policy the cause of failures have been wide-ranging and include:
• Liner seam failure
• Improper liner installation
• Steel weld failure
• Poor MLVT placement (one MLVT failed and caused an adjacent MLVT to fail) and
• Unsuitable or underprepared substrate.
According to data (Table 1) provided by Greg Deranleau, COGCC Oil and Gas Location Assessment
Supervisor, in a January 17, 2014 email, the volumes of fresh water released in the MLVT failures were
very large, more than three million gallons (nearly 10 acre-feet) in one failure. That is a tremendous
volume to be released over a very short period of time. To put it in perspective, that’s enough water
to cover the typical residential use (indoor and outdoor) of 20 Colorado families for an entire year
– released over just minutes. The impacts of such a rapid release of fresh water are extreme and
would be greatly exacerbated were MLVTs allowed to contain E&P waste or other potentially hazardous
fluids. Not only would physical safety and stream erosion and sedimentation be major concerns, but
contamination of soils, surface waters and groundwater resources would likely occur, requiring significant
mitigation and potentially impacting municipal and agriculture water supplies.
To clarify that MLVTs should be used only for fresh water storage WRA suggests slightly modifying the
draft policy language as follows (proposed additional text is underlined):
Appropriate Use of MLVT Technology
When used in accordance with this policy, COGCC considers a MLVT to be appropriate
technology to store fresh water to support Oil and Gas Operations. Storing or handling
E&P Wastes, including treated E&P Wastes and flowback during hydraulic fracturing
operations, or other non-fresh water fluids in a MLVT does not comply with Rule
907.a.(1) & (2).
Table 1: Catastrophic Modular Large Volume Tank Failures in Colorado
* Reported as barrels (bbls). Converted to gallons and acre-feet by Western Resource Advocates.
These five failures illustrate that extreme caution is necessary when using MLVTs. The draft policy
developed by the COGCC addresses the causes of these failures, encompassing design criteria, site
preparation and installation, and operations and contingency planning. Though MLVTs have failed
repeatedly, rather than limiting the use of MLVTs the COGCC is seeking to ensure that reasonable,
responsible and protective policies are in place to ensure their integrity.
Because these tanks are utilized multiple times, requiring them to be dissembled and reassembled at
different locations, and because of the magnitude of potential impacts, it is imperative that the structural
integrity of the tanks and liners is assured each time a tank is reassembled. We believe the draft COGCC
policy is well thought out towards this end, ensuring that MLVTs (including liners) are consistently
engineered, installed, and operated throughout the state - rather than haphazardly as would likely occur
without this guidance.
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WRA hopes the COGCC will adopt the draft policy as written (with the minor modification we’ve
suggested). Given recent catastrophic failures, we are especially supportive of the policy that MLVTs be
used only to store fresh water. Again, we thank the COGCC for their thoughtful and comprehensive
attention to this matter.
Sincerely,
Laura Belanger, P.E.
Water Resources Engineer
Western Resource Advocates
2260 Baseline Road, Suite 200
Boulder, CO 80302
720-763-3718
[email protected]
www.westernresources.org
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