MINOR AND DE MINIMIS SOURCE PERMITTING IN UTAH
| Jurisdiction | United States |
(Nov 2007)
MINOR AND DE MINIMIS SOURCE PERMITTING IN UTAH
Holme Roberts & Owen LLP
Denver, Colorado
Minor Source Permitting
"It is a riddle wrapped in a mystery inside an enigma, but perhaps there is a key."
█ Winston Churchill, 1939 Radio Address.
[Page 3B-2]
Minor Sources -- Permit Types
█ For Permitting Purposes, There are Three Primary Types of Air Pollution Sources (determined by the amount of emissions)
█ Major Sources;
█ Subject to rigid federal programs and assumed to have a direct impact on air quality.
█ Non-Major Sources ("Minor Sources");
█ Generally considered small enough not to trigger most "Major Source" regulations, such as PSD or Operating Permit requirements, but large enough to potentially affect air quality. Subject to various degrees of state regulation. Very state specific.
█ Small Sources ("De Minimis Sources")
█ Generally considered small enough that these sources do not have a significant impact on air quality. Subject to little or no regulation. Very state specific.
State Minor Source Permitting Options
█ General Permits or Permits-by-Rule;
█ Standard set of terms and conditions for similar sources. Little or no customization for source and site conditions.
█ Application of Major Source Permit rules and/or Generic Permit rules;
█ Application is often more limited and selective than the application for Major Sources. Contains customized terms and conditions for source and site.
█ Specific Minor Source Permit Rules.
█ These specific permits may be "tiered", with requirements increasing as the volume of emissions increase and/or the source is located in or near a "sensitive" area. Contains customized terms and conditions for source and site.
[Page 3B-3]
Minor Source Permitting
█ "Reality is nothing more than a collective hunch."
█ Lily Tomlin in "The Search for Signs of Intelligent Life in the Universe."
UTAH-Major Source Def.
█ Major Sources Defined As Sources with:
█ Emissions in excess of 100 tons per year for Criteria (SOx, NOx, PM10, VOCs, CO & Ozone) pollutants, or
█ Emissions in excess of 10 tons per year for any specific Hazardous Air Pollutant ("HAP") or 25 tons per year of combined HAPs emissions.
█ Utah regulates approximately 188 HAPs.
[Page 3B-4]
UTAH's Minor Source Def.
█ Non-Major/Minor Sources are defined as sources with:
█ Emissions between 5 and 100 tons of Criteria pollutants, or
█ Emissions between 500 pounds and 10 tons per year of any specific HAP, or
█ Emissions between 1 ton and 25 tons per year for any combination of HAPs.
UTAH's De Minimis Source Def.
█ Small Sources, or De Minimis Sources, are defined as sources with:
█ Emissions of less than 5 tons of Criteria pollutants; and
█ Emissions of less than 500 lbs per year of any specific HAP, and emissions of less than 2000 lbs of any combination of HAPs.
█ See R307-401-9 for other requirements.
[Page 3B-5]
Utah's NOI and AO Regs.
█ Utah's air regulations require a Notice of Intent ("NOI") and Approval Order ("AO") prior to new construction or modifications to existing source, unless exempted.
█ R307-401-3 States that a person must follow the NOI and AO rules if the person intends to "(a) construct a new installation which will or might reasonably be expected to become a source or an indirect source of air pollution, or (b) make modifications or relocate an existing installation which will or might reasonably be expected to increase the amount or change the effect of, or the character of, air contaminants discharged, so that such installation may be expected to become a source or indirect source of air pollution, or (c) install a control apparatus or other equipment intended to control emissions of air contaminants."
█ Wording of this regulation is very liberal, and includes installation of pollution control devices.
█ Applies to Major and Minor sources. Small/De Minimis Sources are exempted at R307-401-9. Other exemptions include replacement-in-kind, pollution prevention projects, soil remediation, etc, although these exemptions require certain notice and verification requirements.
█ R307-401-5(1) states that "Except as provided in R307-401-9 through R307-401-17, any person subject to R307-401 shall submit a notice of intent to the executive secretary and receive an approval order prior to initiation of construction, modification or relocation. The notice of intent shall be in a format specified by the executive secretary."
[Page 3B-6]
Utah's AO/BACT Reg.
█ Utah law requires that Best Available Control Technology ("BACT") must be included in an Approval Order. R307-401-8(1) states:
█ "(1) The executive secretary will issue an approval order if the following conditions have been met: (a) The degree of pollution control for emissions, to include fugitive emissions and fugitive dust, is at least best available control technology. . . ."
UTAH's Major Source Reqs.
█ Generally speaking, Major Sources in Utah Require:
█ Filing a notice of intent ("NOI") with the Utah Division of Air Quality, and
█ Issuance of both an approval order ("AO") and operating permit, and
█ Application of NSR/PSD/BACT/MACT rules, and
█ Application of any other federally applicable rules.
█ Modifications can result in a historic Minor Source becoming a "Major Source."
█ See Interplanetary Compressor Station Intent to Approve ("ITA").
[Page 3B-7]
UTAH's Minor Source Reqs.
█ Non-Major or Minor Sources Require:
█ Filing of a NOI;
█ Issuance of an AO, but not an operating permit;
█ MACT standards generally do not apply, unless source is in non-attainment area, etc.,
█ BACT review and application is required, although much less formal than Major Source review.
█ BACT is included in the AO by identifying the control technology associated with the source's listed equipment. See Cisco Gas Processing Plant ITA, Para. 7.
█ Administrative requirements/timelines for NOIs for Non-Major/Minor Sources
█ Must submit fee, generally $1,900.
█ Turn around time for NOI review and AO issuance is 90 days.
█ Only 10 day comment period required in attainment areas, possibly shortening time to 60 or 70 days.
█ Current AOs out for comment are have 30 day comment periods.
█ Utah's NOI Form and Guide can be found at www.airqualitv.utah.gov/Permits/Permitting_Forms.htm#NOIGuide.
█ NOI should be submitted after consultation with UDAQ at pre-NOI meeting.
[Page 3B-8]
Modeling for Minor Sources in Utah
█ Emission modeling may be required for Minor Source Permits/AOs.
█ Modeling requirement dependent upon size of source and/or presence of other sources in the area.
█ UDAQ requires modeling approximately 75% of the time.
█ Often required due to formaldehyde emissions.
█ Modeling can be difficult because it is based upon emissions at property boundary, which generally is fairly close at oil and gas sites.
█ If modeling is required, UDAQ can provide the service for a fee or an independent modeler can be used.
█ UDAQ's modeling guidance is found at http://www.airquality.utah.gov/Planning/Modeling/NSR_Permit_Modeling/Modeling-Guidelines-PDF/UMG2000.pdf.
UDAQ's Natural Resource Related Concerns
█ Given larger number of natural resource-related permits, industry will probably be under more scrutiny.
█ See Oct. 18, 2007 ITA list.
█ UDAQ concerned that industry is not paying enough attention to glycol/dehydration emissions.
█ UDAQ's modeling and stack testing shows that many units should be permitted which industry has overlooked.
█ NESHAPs for Oil & Gas Production Facilities, Subpart HH, 40 CFR 63.760 to 63.779 , incorporated into recent Utah ITAs. See Skyline Compressor Station ITA.
█ Recent ITA's also include provisions regarding NESHAPs for Equipment Leaks of VOC from Onshore Natural Gas Processing Plants, Subpart KKK, 40 CFR 60.630 to 60.636. See Cisco Gas Processing Plant ITA.
[Page 3B-9]
UTAH's Reqs. for De Minimis Exemption
█ Small Source/De Minumis Exemption Registration
█ $500 registration fee.
█ Turn around time 2 to 4 weeks.
█ Registration is discretionary, unless located in certain more urbanized areas.
█ R307-401-9(3) states "The executive secretary will maintain a registry of sources that are claiming an exemption under R307-401-9. The owner or operator of a stationary source that is claiming an exemption under R307-401-9 may submit a written registration notice to the executive secretary."
█ Utah has no general permits/permits by rule for the natural resources industry.
Conclusion
"Make sure you have finished speaking before your audience has finished listening."
█ Dorothy Sarnoff
[Page 3B-11]
State of Utah
Department of Environmental Quality
Richard W. Sprott
Executive Director
DIVISION OF AIR QUALITY
M. Cheryl Heying
Director
JON M. HUNTSMAN, JR.
Governor
GARY HERBERT
Lieutenant Governor
DAQE-IN0132840003-07
October 5, 2007
Peg Young
Bill Barett Corporation
1099 18th Street, Suite 2300
Denver, Colorado 80202
| Re: | Intent to Approve: Modification to DAQE-AN3284001-06, Interplanetary Natural Gas |
| Compressor Station, to Add New Equipment and Increase Throughput, Carbon County -- CDS A; | |
| ATT; NSPS; MACT; HAPs Project Code: N013284-0003 |
The attached document is the Intent to Approve for the above-referenced project. Intent to Approves are subject to public review. Any comments received shall be considered before an Approval Order is issued.
Future correspondence on this Intent to Approve should include the engineer's name as well as the DAQE number as shown on the upper right-hand corner of this letter. Please direct any technical questions you may have on this project to Mr. Tad Anderson. He may be reached at (801) 536-4456.
Sincerely,
Rusty Ruby, Manager
Major New Source Review Section
RR:TA:kw
| cc: | Southeastern Utah District Health Department |
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