Waste: The Achilles’ Heel of the Oil & Gas Industry

Offload area for water at a bulk solids treatment facility

How Targeting Waste Disposal Can Cripple the O&G Industry’s Stronghold

My time working as a waste specialist in the oil and gas industry has taught me one thing, they love to talk about energy independence, job creation, “minimizing risk” and their “commitment to sustainability.” Though often times they can’t even articulate what any of that truly means to them. The countless meetings I lead or participated in where I was essentially told “I do not need to know that, it is too much information” is astounding for an industry that wants to reduce risk but not listen to the expert in the room. But why? Because they don’t love talking about waste or acknowledging the fact they have no idea how to handle it or properly manage it. That’s because waste is the single biggest liability the industry faces—a ticking time bomb that, if effectively regulated and challenged, could make drilling, fracking, and refining financially unfeasible…. that is of course if the people start bringing attention to it.

The best part? They already know it. That’s why they’ve spent decades lobbying for loopholes, getting special exemptions, and downplaying the hazards of their own toxic sludge. But here’s the thing—the facts don’t lie, and neither do environmental laws like RCRA and CERCLA.

Let’s break it down: what O&G waste really is, where it goes, why it’s a massive legal and financial risk, and—most importantly—how environmental advocates can leverage this knowledge to cripple the industry’s worst practices.

What is Oil & Gas Waste?

When people think about pollution from oil and gas, they usually picture smokestacks and oil spills. But the waste that quietly seeps into groundwater, contaminates soil, and gets injected underground is far worse. The most common waste streams from oil and gas activities include:

  • Drilling Mud & Cuttings – Leftover rock and sludge. Given distinction by top hole and bottom hole drilling, with bottom hole drillings being soaked in toxic drilling fluids.

  • Produced Water – The ultra-briny, chemical-laden wastewater that flows up from deep underground.

  • Fracking Wastewater – A radioactive, carcinogenic cocktail that’s pumped back into the earth via underground injection control (UIC) wells.

  • Tank Bottom Sludge – The gunk scraped off storage tanks, often containing benzene, toluene, and heavy metals.

  • Contaminated Soil & Equipment – The stuff left behind after pipeline leaks, well blowouts, or just general incompetence.

  • NORM/TENORM Waste – Naturally occurring radioactive materials (NORM) that get concentrated into Technologically Enhanced Naturally Occurring Radioactive Materials (TENORM).

Each of these is a hazardous material by any sane definition. But the O&G industry gets a special pass.

The Great Hazardous Waste Exemption

Under the Resource Conservation and Recovery Act (RCRA), hazardous waste is strictly regulated. Unless, of course, you’re drilling for oil and gas.

That’s because in 1988, the EPA gave O&G an exemption, classifying their waste as "non-hazardous"—even when it clearly meets the criteria for hazardous waste under RCRA’s own definitions (EPA, 40 CFR Part 261).

So what does this mean? It means that instead of treating their waste with the same level of scrutiny as, say, a hospital or a chemical plant, oil and gas companies get to dump toxic byproducts with minimal oversight.

Examples of Hazardous-but-Exempt O&G Waste

  • Fracking Fluid Waste (contains benzene, a known carcinogen)

  • Oilfield Brine (potentially contains radium-226, a radioactive contaminant)

  • Drilling Sludge (contaminated with lead and arsenic)

By calling this “non-hazardous”, O&G companies sidestep strict disposal rules and reduce their liability. But improperly managed waste doesn’t magically stop being dangerous just because the EPA lets them call it something else.

Where Does This Waste Actually Go?

You’d think this stuff would go to highly regulated hazardous waste facilities, right? Wrong. Most people don’t realize that O&G waste ends up in places they’d never expect, including:

1. Bulk Solid Disposal Facilities

  • These are designed for "non-hazardous" industrial waste treatment before the waste is finally taken to a landfill.

  • Some states allow these facilities to accept radioactive waste, toxic drilling mud, and contaminated soil without classifying it as hazardous.

  • In states like Ohio and Pennsylvania, bulk disposal sites have taken in millions of tons of fracking waste, often leaking into nearby water sources due to spills or mishandling of waste at the facility.

2. Underground Injection Control (UIC) Wells

  • Deep wells where O&G waste is injected under pressure back into the earth.

  • These wells have been linked to earthquakes, groundwater contamination, and radioactive waste migration (USGS, UIC Wells & Induced Seismicity).

  • Under strict regulations by the EPA and general liabilities from the state

3. Radiation Disposal

  • O&G companies use landspreading—literally spreading hazardous waste on the ground and calling it “beneficial use.”. Now this method is not approved in every state and is not often industry standard anymore, but still occurs. The basic idea is that the waste is pre-treated and mixed with soil before application.

  • Some states allow TENORM (radioactive) waste to be placed in municipal landfills that aren’t designed to handle radiation as long as the levels are within the state approved range of “safe”. Now I will say many states and disposal companies take radiation seriously; however, it has not prevented issues from occurring in the past.

  • The safest disposal method for radiation waste is in a secure facility that is heavily concreted to eliminate risk of the waste permeating through the surface. These are often sited in areas that are not near the groundwater table.

4. Universal Waste Sites

  • Universal waste sites are meant for batteries, pesticides, and mercury-containing equipment.

  • Often this waste stream will remain on site because they do not have a proper outlet for it, or it is tossed into dumpsters meant for municipal waste.

The bottom line? Oil and gas waste isn’t being handled responsibly, and when it leaks, the consequences are catastrophic.

Why Waste is the Industry’s Biggest Weakness

Here’s the reality: the biggest legal, financial, and regulatory risk for oil and gas companies isn’t carbon emissions or pipeline protests—it’s waste liability.

1. RCRA & CERCLA Can Be Used Against Them

  • RCRA (Resource Conservation and Recovery Act) regulates hazardous waste handling (EPA RCRA Overview)

  • CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) holds polluters liable for cleanup costs (EPA Superfund Info)

  • Key Argument: O&G waste meets hazardous waste criteria, making it vulnerable to litigation and potential removal of its exemption.

2. Improper Disposal = Huge Lawsuits

  • Water contamination cases (e.g., Dimock, PA & Flint, MI) show how toxic waste can lead to multimillion-dollar settlements.

  • Hazardous waste mismanagement could lead to class-action lawsuits if states enforce radiation regulations more strictly.

3. The Industry Can’t Afford Full Compliance

  • If the O&G industry were forced to follow hazardous waste laws, disposal costs would skyrocket.

  • A single disposal well costs millions to operate properly—most states barely regulate them properly and rely on the advisement of the EPA. Often times many DEP’s have strong ties to the industry and will overlook risks with the promise from the facility operator that they will fix the problem.

Strategic Plan for Advocates

So how do we use this information to fight back against the industry?

1. Challenge O&G Permits During Public Comment Periods

  • Demand full RCRA compliance for waste disposal.

  • Request environmental impact assessments (EIA) for all disposal sites.

2. Push for State-Level Hazardous Waste Reclassification

  • Many states rely on federal exemptions. Advocates can lobby state agencies to classify O&G waste as hazardous.

3. Demand Transparency in Waste Disposal Data

  • Require mandatory public reporting of where O&G waste goes.

  • Push for radiation monitoring at landfills and UIC sites.

4. Use the Courts to Challenge Waste Handling Practices

  • Lawsuits under CERCLA can force O&G companies to pay for Superfund-level cleanup.

  • Citizen lawsuits under RCRA can pressure the EPA to reevaluate exemptions.

Conclusion: The Industry’s Biggest Dirty Secret

The O&G industry fears waste regulation more than climate policy. Why? Because waste can’t be offset, traded, or greenwashed. It’s a real, measurable liability—and if regulators, courts, and the public take it seriously, it could cripple the industry’s bottom line.

If you want to hit the O&G industry where it hurts, target their waste. The numbers, the science, and the law are on your side.

US Government and Regulatory Sources to learn more:

Resource Conservation and Recovery Act (RCRA) Overview

  1. Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) – Superfund

    • EPA CERCLA Overview

    • Governs cleanup of hazardous waste sites and holds polluters financially responsible.

  2. Underground Injection Control (UIC) Program

    • EPA UIC Program

    • Regulates injection wells used for oil & gas waste disposal.

  3. EPA Study on Oil & Gas Waste Exemption Under RCRA

  4. USGS Research on Induced Seismicity from Waste Injection Wells

    • USGS Induced Earthquakes

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