OG&E 2012 Annual Report Download - page 40

Waste
OG&E’s and Enogex’s operations generate hazardous wastes that are
subject to the Federal Resource Conservation and Recovery Act of 1976
as well as comparable state laws which impose detailed requirements
for the handling, storage, treatment and disposal of hazardous waste.
For OG&E, these laws impose strict “cradle to grave” requirements on
generators regarding their treatment, storage and disposal of hazardous
waste. OG&E routinely generates small quantities of hazardous waste
throughout its system and occasional larger quantities from periodic
power generation related activities. These wastes are treated, stored
and disposed at facilities that are permitted to manage them.
In June 2010, the EPA proposed new rules under Federal Resource
Conservation and Recovery Act of 1976 that could alter the classification
of OG&E’s coal-fired power plants as conditionally exempt hazardous
waste generators and make the management of coal ash more costly.
The extent to which the EPA intends to regulate coal ash is uncertain
due to the fact that the new rules propose to regulate coal ash as a
hazardous waste or as a nonhazardous solid waste. In November 2010,
OG&E submitted written comments opposing the regulation of coal ash
as a hazardous waste while supporting its regulation as a nonhazardous
waste. The EPA continues to consider numerous comments received
on the proposal and has stated that no definitive timetable for issuing
a final rule regarding the regulation of coal ash can be provided.
The Company has sought and will continue to seek pollution
prevention opportunities and to evaluate the effectiveness of its waste
reduction, reuse and recycling efforts. In 2012, the Company obtained
refunds of $6.4 million from the recycling of scrap metal, salvaged
transformers and used transformer oil. This figure does not include the
additional savings gained through the reduction and/or avoidance of
disposal costs and the reduction in material purchases due to the reuse
of existing materials. Similar savings are anticipated in future years.
For Enogex, the Federal Resource Conservation and Recovery Act of
1976 currently exempts many natural gas gathering and field processing
wastes from classification as hazardous waste. However, these oil and
gas exploration and production wastes may still be regulated under state
law or the less stringent solid waste requirements of the Federal Resource
Conservation and Recovery Act of 1976. The transportation of natural gas
in pipelines may also generate some hazardous wastes that are subject
to the Federal Resource Conservation and Recovery Act of 1976 or
comparable state law requirements.
Water
OG&E’s and Enogex’s operations are subject to the Federal Water
Pollution Control Act of 1972, as amended (“Federal Clean Water Act”),
and analogous state laws and regulations. These laws and regulations
impose detailed requirements and strict controls regarding the discharge
of pollutants into state and Federal waters. The discharge of pollutants,
including discharges resulting from a spill or leak, is prohibited unless
authorized by a permit or other agency approval. The Federal Clean
Water Act and regulations implemented thereunder also prohibit dis-
charges of dredged and fill material in wetlands and other waters of
the United States unless authorized by an appropriately issued permit.
Existing cooling water intake structures are regulated under the Federal
Clean Water Act to minimize their impact on the environment.
With respect to cooling water intake structures, Section 316(b) of the
Federal Clean Water Act requires that their location, design, construc-
tion and capacity reflect the best available technology for minimizing
their adverse environmental impact via the impingement and entrain-
ment of aquatic organisms. In March 2011, the EPA proposed rules to
implement Section 316(b). On August 18, 2011, OG&E filed comments
with the EPA on the proposed rules. In June 2012, the EPA published
a Notice of Data Availability requesting additional comments on a num-
ber of impingement mortality-related issues based on new information
received during the initial public comment period. On July 11, 2012,
OG&E filed comments regarding the Notice of Data Availability. In July
2012, the EPA entered into a settlement agreement in a pending litiga-
tion matter, which extended the deadline by which the proposed rules
will be finalized to June 2013. In the interim, the state of Oklahoma
requires OG&E to implement best management practices related to the
operation and maintenance of its existing cooling water intake struc-
tures as a condition of renewing its discharge permits. Once the EPA
promulgates the final rules, OG&E may incur additional capital and/or
operating costs to comply with them. The costs of complying with the
final water intake standards are not currently determinable, but could
be significant.
Site Remediation
The Comprehensive Environmental Response, Compensation and
Liability Act of 1980 and comparable state laws impose liability, without
regard to the legality of the original conduct, on certain classes of persons
responsible for the release of hazardous substances into the environ-
ment. Because OG&E and Enogex utilize various products and generate
wastes that are considered hazardous substances for purposes of the
Comprehensive Environmental Response, Compensation and Liability
Act of 1980, OG&E and Enogex could be subject to liability for the costs
of cleaning up and restoring sites where those substances have been
released to the environment. At this time, it is not anticipated that any
associated liability will cause a significant impact to OG&E or Enogex.
For a further discussion regarding contingencies relating to environ-
mental laws and regulations, see Note 16 of Notes to Consolidated
Financial Statements.
38 OGE Energy Corp.