The utility contractor wanting to begin work in the environmental field encounters a whole level of complexity in dealing with regulations, health and safety requirements, permitting, and insurance needs. This chapter summarizes the basic requirements for contractors in the environmental field. Regulations The environmental industry has been regulated from its inception by federal and state agencies who are interested in protecting not only the environment, but the workers involved in investigations and cleanups. Because of this, environmental drillers are subject to numerous regulations that do not apply to utility drillers. These regulations, and the agencies themselves, present unique challenges to drillers working on environmental projects. This section of the handbook presents an overview of the regulations and some suggestions for working with regulators. Federal Regulations The U.S. regulations designed to protect the environment were first enacted in 1963 with the passage of the Clean Air Act. Over the ensuing decades, other regulations were passed controlling waste disposal activities, toxic substances, pesticides, and myriad other specific concerns. Table 1 lists the more prominent regulations enacted in the United States in the past three decades. Table 1: Federal Regulations Pertainiing to Environmental Protection
CleanAirActandAmendments(1963, 1970, 1977, 1992)Federal Water Pollution Control Act (1972)Resource Recovery Act (1970)Resource Conservation and Recovery Act (RCRA) (1976)Toxic Substances Control Act (1976)Occupation Safety and Health Act (OSHA) (1976 -1990)Clean Water Act Amendments (1977 -1990)Comprehensive Environmental Responsibility, Compensation and Liability Act(CERCIA) (1980)Hazardous and Solid Waste Amendments (1984)National Emission Standards for Hazardous Air Pollutants (1970, 1977)Superfund Amendments and Reauthorization Act (1986)
These regulations have been augmented by many state and local regulations. In each case, the intent of the regulations is to define and enhance protection for human health and the environment. Most federal regulations have flow-down clauses that allow states to take over some or all of the functions granted in federal laws. In some instances, states have enacted their own regulations that may be even more stringent than similar federal regulations. Drillers working on environmental projects need to be aware of the state and even local requirements in order to protect themselves from potential citations and fines. Drilling contractors will find that most engineering companies issuing requests for proposals will include clauses that require them to comply with all federal, state, and local regulations. In the case of contracts with federal or state agencies, there may be many pages of supplemental, applicable regulations. These regulations, although intimidating at first, can be successfully managed. The first step to compliance is to find a ready source of federal, state, and local laws and regulations. The local public library is a good source for federal and state laws. When bidding projects outside of the local area, the Internet is a good source of information. For example, linking to http://www.envirotech.org will let you gain access to a large database of federal and state regulations. A large part of the database is free access, and the Web site provides a powerful search engine to locate environmental laws within any region. Other important considerations are the licensing requirements for working both in and out of state. Environmental well drilling has been tightly controlled by most states. In many cases, a contractor will need to obtain a water well driller's license in order to drill environmental remediation wells. The fines for noncompliance are substantial, with some cases even including criminal prosecution. The following section discusses these requirements. Licensing Requirements State by State The environmental well drilling market has been dominated by vertical well drillers for nearly 20 years. During that time, regulations have been enacted in many states that establish stringent requirements to install environmental monitoring and remediation wells. Most states do not have regulations specific to horizontal systems, and group construction requirements for horizontal wells in with vertical wells. Many state environmental agencies will require either a variance to their existing permitting requirements or at least some detailed explanation about horizontal remediation systems before they will allow their construction. This means that the contractor must have a good working knowledge of both vertical and horizontal well systems, even in states that do not require driller licensing. In states that do require driller licensing, the test is generally comprehensive, covering a variety of topics. In some states, the tests are difficult since they are based on vertical well drilling technology. It helps to have experience in cable tool, hollow-stem auger, and rotary drilling techniques. Very often, a detailed resume of well drilling experience is required before a contractor can take a written test. Some states also require an interview before a qualifying board, prior to testing. Some states have reciprocity (e.g., Illinois) with other states. If a contractor already has been issued a water well driller's license in another state, he should inquire before applying to take a test. Table 2, found at the end of this chapter, is a state-by-state listing of licensing requirements. Although this list was comprehensive at the time of publication, the regulations can change at any time. Checking with the relevant regulatory authorities before bidding or drilling on a project is always recommended. Insurance Requirements Most environmental remediation projects are performed on sites with identified environmental contaminants that are known and to a certain extent quantified. All companies working on the site are typically required to carry environmental impairment insurance to protect them against claims for environmental damages that may result from their cleanup operations. The insurance requirements are described in the requests for proposal or in the contract documents. In the past, environmental insurance was difficult to obtain and expensive. This has changed in recent years with the appearance of major insurers in the market. It is now possible to get environmental impairment insurance for a reasonable cost. The key to obtaining the insurance is for the contractor to be well prepared to demonstrate his ability to understand and comply with environmental requirements. The best way to demonstrate an understanding of environmental requirements is to prepare and implement a good health and safety program. This program, when implemented, will provide the necessary documentation of training and medical surveillance. The plans developed as part of the program will demonstrate corporate knowledge and adherence to environmental regulations. It may be useful to obtain the services of a consultant to help prepare a health and safety program and help prepare for the preinsurance audit. The contractor's insurance broker can also help prepare for obtaining insurance. The environmental impairment insurers are becoming more competitive as more of them enter the market. Only two years ago, the only policies being written were on a claimsmade basis. Occurrence-based policies are now available, making this insurance more appropriate for environmental remediation projects. Regulations Enforcement One major difference between environmental drilling and utility drilling is the large number of regulatory agencies involved in the projects. A given project may have federal, state, regional and local regulations governing the work being performed. Often there will be more than one regulatory body from the federal or state governments. Projects have been let where OSHA is concerned with worker safety, EPA is concerned with environmental cleanup, the Corps of Engineers is concerned with wetlands encroachment, and the Fish and Wildlife Service is concerned with impacts on local flora and fauna. Any one of these organizations or their state and local counterparts can halt a project at any time. Typically, the client's project manager will handle regulatory issues, but the contractor should be prepared to protect his own interests as well. The best way to do this is to be prepared. If the field manager can quickly produce all the required documentation in a professional and straightforward manner, the agency site inspector is less likely to probe more deeply into the operation. Table 4 is a list of the documentation that should be on hand prior to entering an environmental job site. Table 2: State-by-State Licensing Requirements for Environmental Drilling
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