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E 11 Oil Ex ioration and Production Wastes_ Initiative Scg2e,of,the Project Calfforf,da is the country's fourM Wmpst oil producer, with sixteen counties that produce crude oil, 45,597 producing oil wells and 311.5 million barrels of oil produced in 1999 (CDC, 2000). Oil production in California generates significant amounts of waste each year, which is mostly managed as non -hazardous solid waste under the E&P exemption discussed in the Regulatory Background section of this document. A review of available published data indicated that E&P wastes might contain constituents of concern to U.S. EPA and DTSC. Therefore, the scope of the initiative was to characterize E&P wastes, with a view towards determining any hazardous waste characteristics and, based on the data obtained, determine if E&P wastes are being managed properly in California in accordance with standards imposed under Federal and State laws. Due to limitations of the study, the primary focus was placed on characterizing those E&P wastestreams that, if found to be hazardous, would present a greater threat to public health and the environment. Other, smaller volume wastestreams associated with the oil production industry remain of interest to DTSC and may be addressed in a future study. Key terms and concepts related to oil production and used throughout this report are summarized below. . =191augn Oil exploration encompasses activities undertaken to identify and access geological formations that contain oil. A common example of such an activity is drilling, or the creation of a wellbore that perforates the ground and reaches the subsurface strata that house an oil reservoir. Drilling for both oil and natural gas employs similar techniques and is accomplished by use of equipment that can cut through soil and rock. A multi-component structure called the drilling rig (see Figures 1 and 2) is set up and used to control and operate the downhole drilling equipment. Drilling fluid (also called drilling mud) is pumped through the drilling pipe connected to a rotary cutting device, called the drilling bit. The purpose of the drilling fluid is to lubricate the bit as it cuts through the soil, prevent the wellbore from caving in, and float the soil and rock cuttings up to the ground surface. Locations where drilling takes place are referred to as drilling sites, and are the sources of drilling wastes. Statewide Qp_Mplignge Division, 020