Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 1 ENVIRON 

## 4 Regulatory Applicability

In this section of the permit application, we present the regulatory applicability determinations that have been made in support of the requested Title V and PSD permit for the Developer and

Discoverer Americas

. Both t he Developer and Discoverer Americas will be an exploratory OCS

source
, as this term is defined in 40 CFR § 55.2. 1 Because the se proposed OCS source s will operate beyond 25 miles of any state seaward boundary, regulatory a pplicability for the sources

is determined in accordance with 40 CFR § 55.3(c) , which means that state regulations will not
be applicable to the proposed OCS source s

. Instead, t he federal requirements listed in 40 CFR § 55.13 will be applicable to the Developer and Discoverer Americas

. Additional l y , pursuant to § 328 of the Clean Air Act (CAA)

, the emissions from vessels servicing or associated with an
OCS source shall be considered direct emissions from such a source while at the source and

while traveling t o and f ro m the source when within 25 mile s of the source . T herefore, in determining the potent ial to emit emissions for the Developer and Discoverer Americas , we have accounted for the ir respective support vessel emissions.



### 4.1 Prevention of Significant Deterioration

In accordance with 40 CFR § 5 5 .13(d), the PSD regulations of 40 CFR § 52.21 apply to the
OCS source s proposed with this permit application, the Developer and Discoverer Americas

. Each proposed OCS source is a “ new major stationary source” because it is new stationary source having the potential to emit 250 tpy or more of a PSD regulated pollutant. Because this application is for a new major stationary source , the potential to emit of each PSD regulated pollutant proposed to be emitted by the source was compared to respective PSD signi fican t
threshold amount s to determine which pollutants would be subject to PSD review

. As
documented in Table 4.1

- 1 below

, both the Developer and Discoverer Americas would have the potential to emit NO X emissions greater than 40 tpy , the pollutant’s PSD s ignifican t threshold

amount. T herefore, for each of these sources, PSD review is required for NO X

. The Developer is presented as Operating Scenario 1 ; the Discoverer Americas is Operating Scenario 2.

Table 4 .1

- 1 PSD Significance Analysis

Pollutant Opera ting Scenario 1
PTE (tpy) Operating Scenario 2
PTE (tpy) PSD Significance

Threshold (tpy) Subject to PSD
Review ? ( Y es/ N o)

NO
x 469.5 545.0 40 Yes

VOC 28.7 26.0 40 No

SO 2 0.4 0.3 40 No

CO 74.5 71.2 100 No

PM 2.5 9.1 8.0 10 No

1 Exploratory source or explora tory OCS source means any OCS source that is a temporary operation conducted for the sole purpose of gathering information. This includes an operation conducted during the exploratory phase to

determine the characteristics of the reservoir and formation a nd may involve the extraction of oil and gas. (40 CFR 55.2)Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 2 ENVIRON Pollutant Opera ting Scenario 1
PTE (tpy) Operating Scenario 2
PTE (tpy) PSD Significance

Threshold (tpy) Subject to PSD
Review ? ( Y es/ N o)

PM 10 9.2 8.1 15 No

PM 9.8 8.7 25 No

CO 2 e 2 41,457.5 36,210.4 75,000 No

H 2 S Negligible Negligible 10 No

Lead 0.0074 0.00 64 0.6 No

TRS 0.009 0.008 10 No

RSC 0.009 0. 008 10 No

Sulfuric Acid Mist 0.014 0. 012 7 No

Fluorides Negligible Negligible 3 No

Because the proposed OCS sou rces are subject to PSD review, BACT and ambient air quality analyses must be performed as part of this permitting effort. Please see Section 5 for a discussion of the BACT analyses that have been performed pursuant to the PSD regulations. Furthermore, p lease see Section 6 for a summary of the ambient air quality analysis that has
been performed in support of this permit application

.



### 4.2 New Source Performance Standards ( 40 CFR Part 60 )

4.2.1 Subpart Dc

– Standards of Performance for Small Industrial

- Commercial

In stitutional Steam Generating Units for Which Construction, Reconstruction, or Modification Commenced After June 9, 1989
Except for certain steam generating units associated with stationary combustion turbines and waste incinerators, this subpart applies to each steam generating unit for which construction, modification, or reconstruction is commenced after June 9, 1989 and that has a maximum design heat input capacity of 100 MMBtu/hr or less, but greater than or equal to 10 MMBtu/hr.

A steam generating uni t means a device that combusts any fuel and produces steam or heats water or heats any heat transfer medium. This term includes any duct burner that combusts fuel

and is part of a combined cycle system. This term does not include a process heater , which

means a device that is primarily used to heat a material to initiate or promote a chemical reaction in which the material participates as a reactant or catalyst

.

The Hot Oil Heater ( Emission Unit ID HTR) located on the Discoverer Americas heats a thermal
fluid that is used to transfer heat to cargo tanks on the vessel

. Th is oil

- fired heater has a heat input capacity equal to 17.4 MMBtu/hr , which is greater than the 10 MMBtu/hr applicability

threshold of this regulation, and the heater was cons tructed afte r the applicability date of Ju ne 9,

1989 . Therefore, the heater is an affected facility subject to applicable requirements of this regulation.

2 Greenhouse gas (carbon dioxide, nitrous oxide, methane, hydrofluorocarbons, perfluorocarbons, and sulfur hexafluoride) emissions expressed as carbon dioxide equivalent (CO 2 e).Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 3 ENVIRON Specifically, t he sulfur content of the oil used in the Hot Oil Heater ( Emission Unit ID HTR ) is
limited to 0.5 percent by weight (40 CFR 60.42c(d))

, and Statoil must maintain fuel certifications from the fuel supplier to demonstrate compliance with the fuel sulfur limits (40 CFR 60.42c(h)(1) )

. Statoil will also be required to submit initial notifications and semi

- annual reports of fuel certifications and monthly totals of fuel combusted in the cargo heater. The fuel oil to be

delivered to both drill vessels will be ultra

- low sulfur diesel ( ULSD )

, which will have a sulfur
content of 0.015 percent by weight or less

. As a result, this ULSD fuel for the heater will be compliant with the regulation’s 0.5 percent by weight sulfur limit. The PM emission standards of this regulation are not applicable to the Hot Oil Heater ( Emission Unit ID HTR) because the

heater has a maximum heat input less than 30 MMBtu/hr

, which is the threshold below which PM emission standards do not apply

.

The Developer is not equipped with any steam generating unit that could potentially be subject to this regulation

.



### 4.2.2 Subpart Kb

– Standards of Performance for Volatile Organic Liquid Storage Vessels for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984
Except for storage vessels with a capacity greater than or equal to 151 m 3 (39,890 gallons) storing a liquid wi th a maximum true vapor pressure 3 less than 3.5 kPa (0.508 pounds per square inch

- absolute (psia)) or with a capacity greater than or equal to 75 m 3 (19,812.9 gallons)

but less than 151 m 3 storing a liquid with a maximum true vapor pressure (TVP) less than 15.0 kPa (2.176 psia), this subpart applies to each storage vessel with a capacity greater than or equal to 75 m3 that is used to store volatile organic liquids (VOLs) for which construction, reconstruction, or modification commenced after July 23, 1984.

The storage vessels located on the Developer and Discoverer Americas that contain VOLs were constructed after the July 23, 1984 applicability date of this regulation

. Therefore, for each of these storage vessels, we have evaluated the vessel’s capacity a nd the maximum TVP of the material proposed to be stored in the vessel to determine whether subpart Kb is applicable.

T able 4.2

- 1 below summarize s the subpart Kb applicability determinations made for the VOL storage vessel s located on the Developer . As d ocumented in the table

, s ubpart Kb does not apply to any of the storage vessels on the Developer

.

3 Maximum true va por pressure means the equilibrium partial pressure exerted by the volatile organic compounds (as defined in 40 CFR § 51.100) in the stored VOL at the temperature equal to the highest calendar

- month average of the VOL storage temperature for VOL’s stored a bove or below the ambient temperature or at the local maximum monthly average temperature as reported by the National Weather Service for VOL’s stored at the ambient temperature, as

determined: (1) In accordance with methods described in American Petroleu m Institute Bulletin 2517, Evaporation Loss From External Floating Roof Tanks, (incorporated by reference

– see § 60.17); or (2) As obtained from standard reference texts; or (3) As determined by ASTM D2879

– 83, 96, or 97 (incorporated by reference

– see § 60.17); or (4) Any other method approved by the Administrator. (40 CFR 60.111b)Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 4 ENVIRON Table 4 .2

- 1 Summary of **Developer** VOL Storage Vessel Subpart Kb Applicability

Emissions

Unit ID Description Capacity (m 3 ) Service Max.
TVP (kPa) Subpart Kb Ap plicability Determination

FO ST Pontoon Fuel Oil Tank No.1 (P) 1,305 Diesel 0.0724 NOT APPLICABLE: Does not apply because capacity is
>151m 3 , but maximum TVP of liquid stored is <3.5 kPa. (40 CFR 60.110b(b)) Pontoon Fuel Oil Tank No. 2 (S) 1,305 Diesel 0.0724

Pontoon Fuel Oil Tank No. 3 (P) 875 Diesel 0.0724

Pontoon Fuel Oil Tank No. 4 (S) 875 Diesel 0.0724

FO SER ST Upper Hull Fuel Oil Tank No. 1 (P) 49 Diesel 0.0724 NOT APPLICABLE: Does not apply because capacity is
<75m 3 . (40 CFR 60.110b(a)) Upper Hull Fuel Oil Tank No. 2 (S) 57 Diesel 0.0724

FO SET ST Upper Hull Fuel Oil Tank No. 3 (P) 34 Diesel 0.0724

Upper Hull Fuel Oil Tank No. 4 (S) 35 Diesel 0.0724

FO E GEN ST Emergency Generator Fuel Oil Tank 8 Diesel 0.0724

WO ST Waste Oil Tank No. 1 (P) 35 Waste Oil 0.0724

Waste Oil Tank No. 2 (S) 35 Waste Oil 0.0724

AV ST Aviation Fuel Tank No. 1 3 Aviation Fuel 12.07

Aviation Fuel Tank No. 2 3 Aviation Fuel 12.07

Aviation Fuel Tank No. 3 3 Aviation Fuel 12.07

FO LB ST Life b oa t No. 1 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 2 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 3 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 4 Fuel Tank 0.2 Diesel 0.0724

FO MOB ST Fast Rescue Boat Fuel Tank 0.2 Diesel 0.0724

FO CMV ST Cement Unit F uel Oil Tank 2 Diesel 0.0724

Similar to the above T able 4.2

- 1 for the Developer

, T able 4.2

- 2 below summarizes the subpart Kb applicability determinations made for the VOL storage vessel s located on the D iscovere r Americas . As documented in the table

, s ubpart Kb does not apply to any of the storage vessels

on the Discovere r Americas

.

Table 4 .2

- 2 Summary of **D iscoverer Americas**  VOL Storage Vessel Subpart Kb Applicability

Emissions

Unit ID Description Capacity (m 3 ) Service Max
TVP (kPa) Subpart Kb Applicab ility
Determination

FO ST Deck 2 Fuel Oil Tank No. 1 (P) 2,591 Diesel 0.0724 NOT APPLICABLE: Does not apply because capacity is >151m3, but max TVP of liquid stored is <3.5 kPa. (40 CFR 60.110b(b)) Deck 2 Fuel Oil Tank No. 2 (S) 2,591 Diesel 0.0724Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 5 ENVIRON

Emissions

Unit ID Description Capacity (m 3 ) Service Max
TVP (kPa) Subpart Kb Applicab ility
Determination

Overflow Fuel Oil Tank No. 1 (P) 130 Diesel 0.0724 NOT APPLICABLE: Does not apply because capacity is >75 m3 but <151m3, but max TVP of liquid stored is <15.0 kPa. (40 CFR 60.110b(b))

FO SET ST Deck 1 Fuel Oil Tank No. 3 (P) 216 Diesel 0.0724 NOT APPLICA BLE: Does not apply because capacity is >151m3, but max TVP of liquid stored is <3.5 kPa. (40 CFR 60.110b(b)) Deck 1 Fuel Oil Tank No. 4 (S) 216 Diesel 0.0724

FO SER ST Deck 1 Fuel Oil Tank No. 5 (P) 108 Diesel 0.0724 NOT APPLICABLE: Does not apply b ecause capacity is >75 m3 but <151m3, but max TVP of liquid stored is <15.0 kPa. (40 CFR 60.110b(b)) Deck 1 Fuel Oil Tank No. 6 (S) 108 Diesel 0.0724

FO E GEN ST Emergency Generator Fuel Oil Tank 16 Diesel 0.0724 NOT APPLICABLE: Does not apply because capacity is
<75m 3 . (40 CFR 60.110b(a)) WO ST Waste Oil Tank No. 1 (P) 35 Waste Oil 0.0724

Waste Oil Tank No. 2 (S) 62 Waste Oil 0.0724

AV ST Aviation Fuel Tank 8 Aviation Fuel 12.07

FO LB ST Life b oat No. 1 Fuel Tank 0.2 Diesel 0.0724

Life b oat N o. 2 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 3 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 4 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 5 Fuel Tank 0.2 Diesel 0.0724

Life b oat No. 6 Fuel Tank 0.2 Diesel 0.0724

FO MOB ST Fast Rescue Boat Fuel Tank 0.2 Diesel 0.0724



### 4.2.3 Subpart IIII

– Standards of Performance for Stationary Compression Ignition Internal Combustion Engines

This subpart is applicable to manufacturers, owners, and operators of certain stationary compression ignition (CI) internal combust ion engines . The applicability of this subpart to a particular CI engine is dependent on the model year

, displacement , and intended use of the engine

. F or owners and operators , the e mission standards of the subpart apply to the following
fou r subcategori es of CI engines :

• Non

- e mergency engines;

• Emergency (non

- f ire p ump) engines;

• Emergency ( f ire p ump) engines; and

• Reconstructed engines.

Excluding fire pump stationary CI engines, this subpart applies to a stationary CI engine that was manufactured after Ap ril 1, 2006 and for which the owner or operator commencedOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 6 ENVIRON cons truction af ter July 11, 2005. For the purposes of this subpart, the date that construction

commences is the date the engine is ordered by the owner or operator.

First, the l ife b oat and f ast r escue b oat CI engines that are present on the Developer and

Discoverer Americas are not subject to this regulation. As documented by EPA

, l ife b oats and
f ast r escue b oats do not have stationary source aspects with respect to NO X emissions

because they are used for man overboard and emergency escape scenarios. 4 Only the stationary aspects of vessels attached to an OCS are subject to stationary source regulations.

D eveloper

T able 4.2

- 3 below summarizes the eng ines on the Developer that are subject to subpa rt IIII

because they were ordered after July 11, 2005 and manufactured after April 1, 2006.

Table 4 .2

- 3 Summary of **D eveloper**  Engines Subject to Subpart IIII

Emission

Unit ID Model Year Engine Rating

(hp) Cylinder Displacement

(L/cylinder) Engine Use

GEN

- 1 8/ 2006 6,651 17.0 Non

- Emergency

GEN

- 2 8/ 2006 6,651 17.0 Non

- Emergency

GEN

- 3 8/ 2006 6,651 17.0 Non

- Emergency

GEN

- 4 8/ 2006 6,651 17.0 Non

- Emergency

GEN

- 5 8/ 2006 6,651 17.0 Non

- Emergency

GEN

- 6 8/ 2006 6,651 17.0 Non

- Emergency

GEN

- 7 8/ 2006 6,651 17.0 No n

- Emergency

GEN

- 8 8/ 2006 6,651 17.0 Non

- Emergency

EGEN 11/ 2006 2,551 4.9 Emergency

CMU

- 1 10/ 2006 500 2.4 Non

- Emergency

CMU

- 2 9/ 2006 500 2.4 Non

- Emergency

Developer Main Generator Engines

In accordance with § 60 .4204(a) of this subpart

, because the ei ght main generator engines ( Emission Unit ID s GEN

- 1 through GEN

- 8) are pre

- 2007 non

- emergency CI engines with a displacement of greater than or equal to 10 L per cylinder and less than 30 L per cylinder, the engines must comply with the emission standards in 40 CFR 94.8(a)(1). Based on the applicable emission limitation equation found in § 94.8(a)(1)(ii) and the engine s having a maximum engine speed of 900 revolutions per minute (rpm), the eight main generator engines must comply with a NO X emission standa rd of 11.5 g/k W

- hr . Each of the se main engines has
been certified with an Engine International Air Pollution Prevention (EIAPP) Certificate, which

document s compliance with the NO X emission standard required by 40 CFR 94.8(a)(1).

4 Final Determination and Response to Comments: Outer Continental Shelf Air Permit OCS

- EPA

- R4006, Shell Offshore, Inc.Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 7 ENVIRON In accordance with § 60

. 4207(b) of this subpart, because the main generator engines have a displacement less than 30 L per cylinder, the engines must use diesel fuel that meets the requirements of 40 CFR 80.510(b) for nonroad diesel. The following is a summary of the

nonroad die sel requirements under 40 CFR 80.510(b): 15 ppm maximum sulfur content

, and a minimum cetane index of 40 or a maximum aromatic content of 35 volume percent.

Developer Emergency Generator Engine

In accordance with § 60.420 5 (a) of this subpart

, because the emergency generator engine ( Emission Unit ID EGEN) is a pre

- 2007 non

- fire pump emergency CI engine with a displacement less than 10 L per cylinder, the engine must comply with the following emission
standards contained in table 1 of subpart IIII.

• CO

– 11. 4 g/kW

- hr

• NO X – 9.2 g/kW

- hr

• PM

– 0.54 g/kW

- hr

• HC

– 1.3 g/kW

- hr

The emergency generator engine has been certified as a Tier 1 engine under 40 CFR 89.112

, meaning the engine has been certified to comply with the 9.2 g/kW

- hr Tier 1 emission standard
identifi ed in § 89.112 . Th erefore, the engine is in compli ance with the applicable emission

standards of this subpart

.

In accordance with § 60 .4207(b) of this subpart, because the emergency generator engine has a displacement less than 30 L per cylinder, the eng ine must use diesel fuel that meets the requirements of 40 CFR 80.510(b) for nonroad diesel. The following is a summary of the nonroad diesel requirements under 40 CFR 80.510(b): 15 ppm maximum sulfur content, and a
minimum cetane index of 40 or a maximum aromatic content of 35 volume percent.

Developer Cement Unit Engine s

In accordance with § 60.4204(a) of this subpart

, because the two cement unit engines ( Emission Unit IDs CMU

- 1 and CMU

- 2) are pre

- 2007 non

- emergency CI engines with a displacement less t han 10 L per cylinder, the engines must comply with the following emission
standards contained in table 1 of subpart IIII.

• CO

– 11.4 g/kW

- hr

• NO X – 9.2 g/kW

- hr

• PM

– 0.54 g/kW

- hr

• HC

– 1.3 g/kW

- hrOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 8 ENVIRON Both cement unit engines have been certified as Tier II engi nes under 40 CFR 94.8 , which incorporates more stringent emission standards for this size of engine than s ubpart IIII

.

In accordance with § 60 .4207(b) of this subpart, because the cement unit engines have a displacement less than 30 L per cylinder, the en gines must use diesel fuel that meets the requirements of 40 CFR 80.510(b) for nonroad diesel. The following is a summary of the nonroad diesel requirements under 40 CFR 80.510(b): 15 ppm maximum sulfur content, and a
minimum cetane index of 40 or a maxim um aromatic content of 35 volume percent.

Discoverer Americas

Table 4.2

- 4 below summarizes the engines on the Discoverer Americas that are subject to subpart IIII because they were ordered after July 11, 2005 and manufactured after April 1, 2006.

Table 4 .2

- 4 Summary of **Discoverer Americas** Engines Subject to Subpart IIII

Emission

Unit ID Model Year Engine Rating

(hp) Cylinder Displacement

(L/cylinder) Engine Use

GEN

- 1 3/ 2008 9,387 32.2 Non

- Emergency

GEN

- 2 3/ 2008 9,387 32.2 Non

- Emergency

GEN

- 3 3/ 2008 9, 387 32.2 Non

- Emergency

GEN

- 4 3/ 2008 9,387 32.2 Non

- Emergency

GEN

- 5 4/ 2008 9,387 32.2 Non

- Emergency

GEN

- 6 4/ 2008 9,387 32.2 Non

- Emergency

EGEN 2/ 2008 3,097 21.8 Emergency

ACOMP

- 1 1/ 2007 50 0.9 Emergency

ACOMP

- 2 1/ 2007 68 0.9 Emergency

D iscoverer Ame ricas Main Generator Engines

In accordance with § 60 .4204 (c)(1)(ii) of this subpart, because the six main engines ( Emission
Unit IDs GEN

- 1 through GEN

- 6) were installed prior to January 1, 2012 and are non

- emergency CI engines with a displacement of greate r than 30 L per cylinder and a maximum engine speed of 720 rpm , the engines must comply with a NO X emission standard of 12.1 g/kW

- hr

. Additionally, pursuant to § 60 .4204(c)( 4 ) , PM emissions from the engines must be reduced by 60% or more, or the engines m ust comply with a PM emission standard of 0.15 g/kW

- hr.

In accordance with § 60 .4207( d ) of this subpart, because the main generator engines have a displacement equal to or greater than 30 L per cylinder, the engines must use diesel fuel that

that meets a maximum per

- gallon sulfur content of 1,000 ppm.

Discoverer Americas Emergency Generator Engine
In accordance with § 60 .4205(b), because the emergency generator engine ( Emission Unit ID EGEN) is a post

- 2007 non

- fire pump emergency CI engine with a displace ment of greater thanOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 9 ENVIRON or equal to 10 L per cylinder and less than 30 L per cylinder , the engine must comply with § 60.4202(e)(1) of subpart IIII , which requires the engine to meet the emission limit ation s for new marine CI engines in 40 CFR 94.8. Because t he emergency generator engine is a post

- 2006 model year CI engine having a displacement of greater than or equal to 2 0 L per cylinder and

less than 25 L per cylinder , p ursuant to § 94.8 (a)(2) (i)

, the engine must comply with the following Tier 2 exhaust emi ssion standards

.

• CO

– 5.0 g/k W

- hr

• NO X – 9.8 g/k W

- hr

• PM

– 0.5 g/k W

- hr

In accordance with § 60 .4207(b) of this subpart, because the emergency generator engine has a displacement less than 30 L per cylinder, the engine must use diesel fuel that meets the

re quirements of 40 CFR 80.510(b) for nonroad diesel. The following is a summary of the nonroad diesel requirements under 40 CFR 80.510(b): 15 ppm maximum sulfur content, and a minimum cetane index of 40 or a maximum aromatic content of 35 volume percent.

D iscoverer Americas Emergency Air Compressor Engines

In accordance with § 60.4205(b), because the emergency air compressor engines ( Emission
Unit IDs ACOMP

- 1 and ACOMP

- 2) are 2007 non

- fire pump emergency CI engine s with a displacement of less than 10 L per cylinder, the engines must comply with § 60.4202(a)(2) of subpart IIII , which requires the engines to meet the emission limit ation s for new nonroad CI engines in 40 CFR 89.112 and 40 CFR 89.113. Because the emergency air compressor engines are 2007 model year CI engines having a rated horsepower of greater than or equal to 50 hp and less than 101 hp, table 1 in § 89.112(a) requires the engines to comply with the following Tier 2 exhaust emission standards.

• CO

– 5.0 g/k W

- hr

• NO X

– 7.5 g/k W

- hr

• PM

– 0.40 g/k W

- hr

Additionally, pursuant to § 89.11 3 (a) , t he emergency air compressor engines a re subject to the following exhaust opacity limits: <20% during the acceleration mode; <15% during the lugging mode; and <50% during the peaks in either the acceleration or l ugging modes.

In accordance with § 60 .4207(b) of this subpart, because the emergency air compressor engines have a displacement less than 30 L per cylinder, the engines must use diesel fuel that meets the requirements of 40 CFR 80.510(b) for nonroad diese l. The following is a summary of the nonroad diesel requirements under 40 CFR 80.510(b): 15 ppm maximum sulfur content, and a minimum cetane index of 40 or a maximum aromatic content of 35 volume percent.Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 10 ENVIRON 

### 4.2.4 Subpart JJJJ

– Standards of Performance for Stati onary Spark Ignition Internal Combustion Engines

This subpart is applicable to manufacturers, owners, and operators of stationary spark ignition (SI) internal combustion engines. Specifically, this regulation applies to owners and operators of stationary SI engines that commence construction after June 12, 2006, where the engine is
manufactured:

• On or after July 1, 2007, for engines with a maximum engine power greater than or equal to 500 hp (except lean burn engines with a maximum engine power greater th an or equal to 500 hp and less than 1,350 hp) ;

• On or after January 1, 2008, for lean burn engines with a maximum engine power greater than or equal to 500 hp and less than 1,350 hp ;

• On or after July 1, 2008, for engines with a maximum engine power less tha n 500 hp ; or

• On or after January 1, 2009, for emergency engines with a maximum engine po wer greater than 19 KW (25 hp ).

For the purposes of this subpart, the date that construction commences is the date the engine is ordered by the owner or operator.

The Developer and the Discoverer Americas will not be equipped with any stationary SI engines. Therefore, this subpart does not apply to any equipment on the vessels.



### 4.3 National Emission Standards for Hazardous Air Pollutants ( 40 CFR Part 61 )
The regulations contained in 40 CFR part 61 establish emission standards for certain source categorie s of HAP emissions

. The emission standard s under this part represent risk

- based

standards th at are intended to provide an ample margin of safety to protect public health. The following are the HAPs regulated under this part: asbestos, benzene, beryllium, coke oven emissions, inorganic arsenic, mercury, radionuclides, and vinyl chloride.



### 4.3.1 Subpart J

– National Emission Standard for Equipment Leaks (Fugitive Emission Sources ) of Benzene

This subpart appl ies to each of the following sources that is intended to operate in benzene service: pumps, compressors, pressure relief devices, sampling connection systems, open

ended valves or lines, valves, connectors, surge control vesse ls, bottoms receivers, and control devices or systems required by this subpart. In benzene service means that a piece of equipment either contains or contacts a fluid ( l iquid or gas) that is at least 10 percent benzene by weight as determined according to the provisions of 40 CFR § 61.245(d).

None of the types of fugitive component equipment listed above that will be located on the Developer or Discoverer Americas are intended to operate in benzene service . Therefore

, none of the equipment is subject t o this regulation on that basis . Additionally, note that the background information for this regulation indicates that the regulation applies to the petroleumOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 11 ENVIRON refining and chemical manufacturing industries, not the activities that occur on an explorat ory drilling vessel such as the Developer or Discoverer Americas

.



### 4.3.2 Subpart V

– National Emissio n Standard for Equipment Leaks (Fugitive Emission Sources)

This subpart appl ies to each of the following sources that is intended to operate in volatile

hazardous ai r pollutant (VHAP) service: pumps, compressors, pressure relief devices, sampling connection systems, open

- ended valves or lines, valves, connectors, surge control vessels, bottoms receivers, and control devices or systems required by this subpart. In VHA P service means that a piece of equipment either contains or contacts a fluid (liquid or gas) that is at least 10 percent by weight a VHAP as determined according to the provisions of § 61.245(d). A

VHAP means a substance that is regulated under 40 CFR pa rt 61 for which a standard for equipment leaks of the substance has been proposed and promulgated , such as b enzene and

v inyl chloride.

None of the types of fugitive component equipment listed above that will be located on the Developer or Discoverer Ameri cas are intended to operate in VHAP service

. Therefore, none of the equipment is subject to this regulation on that basis. Additionally, similar to the note above for 40 CFR part 61, subpart J, the background information for this regulation indicates tha t the regulation applies to the petroleum refining and chemical manufacturing industries, not the activities that occur on an exploratory drilling vessel such as the Developer or Discoverer

Americas

.



### 4.4 National Emission Standards for Hazardous Air Pollutant s for Source Categories ( 40 CFR Part 63 )
The regulations contained in 40 CFR part 63 establish emission standards for source categories of HAP emissions. A key component of regulatory applicability under this part is the distinction between a major source and an area source of HAPs. A major source is a stationary source

that emits or has the potential to emit considering controls, in the aggregate, 10 t py or more of

any HAP or 25 t py or more of any combination of HAPs. An area source is simply a source t hat is not a major source. The Developer and its associated support fleet will not have a combined potential to emit of 10 t py or more of any HAP or 25 t py or more of any combination of HAPs. Similarly, the D iscoverer Americas and its associated support fleet will not have a combined potential to emit of 10 t py or more of any HAP or 25 t py or more of any combination of HAPs

. Therefore, neither the Developer nor the Discoverer Americas will be a major source under this part. Instead, each of the drilling vessels will be a n area source

.



### 4.4.1 Subpart ZZZZ

– National Emission Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines

This subpart contains emission standards for s tationary reciprocating internal combustion

eng ines (RICE) located at major and area sources of HAP emissions.

Developer

The eight main generator e ngines (Emission Unit IDs GEN

- 1 through GEN

- 8)

, the emergency generator engine ( Emission Unit ID EGEN) , and the two cement unit engines ( Emission Unit IDsOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 12 ENVIRON CMU

- 1 and CMU

- 2) installed on the Developer are considered new RICE at an area source under this regulation because the engines were constructed after June 12, 2006.

Pursuant t o § 63.6590(c )(1) of this subpart, a new CI RICE located at an area source mu st comply with 40 CFR part 60, subpart IIII, and no further requirements apply for such engines under 40 CFR part 63. As discussed above, the noted CI engines located on the Developer are subject to the requirements of 40 CFR part 60, subpart IIII . There fore, t he engines will comply
with 40 CFR part 60

, s ubpart IIII , and they will not be subject to any further requirements under this subpart

.

Discoverer Americas

The six main generator engines (Emission Unit IDs GEN

- 1 through GEN

- 6 ), the emergency generat or engine ( Emission Unit ID EGEN )

, and the two emergency air compressor engines ( Emission Unit IDs ACOMP

- 1 and ACOMP

- 2 ) installed on the Discoverer Americas are considered new RICE at a n area source under this regulation because the engines were manufactur ed after June 12, 2006

.

Pursuant to § 63.6590(c)(1) of this subpart, a new CI RICE located at an area source must comply with 40 CFR part 60, subpart IIII, and no further requirements apply for such engines under 40 CFR part 63. As discussed above, the n oted CI engines located on the Discoverer

Americas are subject to the requirements of 40 CFR part 60, subpart IIII . Therefore, the engines will comply with 40 CFR part 60, subpart IIII, and they will not be subject to any further requirements under this s ubpart.



### 4.4.2 Subpart JJJJJJ

– National Emission Standards for Hazardous Air
Pollutants for Industrial, Commercial, and Institutional Boilers Area Sources
This regulation establishes emission standards for HAP s emitted from boilers located at area
sources of HA P emissions. A boiler is defined in § 63.11237 of this subpart as “ an enclosed device using controlled flame combustion in which water is heated to recover thermal energy in
the form of steam or hot water. ”

The Hot Oil Heater ( Emission Unit ID HTR) locat ed on the Discoverer Americas does not heat

water . Instead, th e heat transfer medium used in this heater is an oil

- based thermal fluid.

T herefore

, because the H ot Oil Heater ( Emission Unit ID HTR) is not a “boiler” under this subpart, it is not subject t o th e subpart

.



### 4.5 Control of Emissions from New and In

- Use Nonroad Compression Ignition Engines (4 0 CFR Part 89 )

40 CFR p art 89 regulates emissions from all nonroad CI engines, except as specified in 40 CFR 89.1(b). Ma rine engines 5 subject to 40 CFR p art 94 or marine engines with a rated power at or

5 Marine engine means a nonroad engine that is instal led or intended to be installed on a marine vessel. This includes a portable auxiliary marine engine only if its fueling, cooling, or exhaust system is an integral part of the

vessel. There are two kinds of marine engines:Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 13 ENVIRON above 37 kW (50 hp ) that are manufactured in calendar years in which the standards of 40 CFR

p art 94 are not yet applicable are specifically excluded from regulation under 40 CFR p art 89

per 40 CFR 89.1(b)(4)(i) and 40 CFR 89.1(b)(4)(iii) , respectively

.

Based on guidance provided by EPA in the preamble to 40 CFR 89

, 6 whether or not a drilling rig
is considered a marine vessel 7 depends on the propulsion capabilities of the rig. The Developer

and Discoverer Americ as have propulsion capabilities ; therefore, these drilling vessels are considered marine vessels under this subpart. Furthermore, because the Developer and
Discoverer Americas are marine vessels, the e ngines installed on these vessels are marine engines

.

T he model year and engine rating information for the marine engines installed on the Developer

and Discoverer Americas and the fast rescue boats located on the Developer and Discoverer

Americas indicate that the se marine engines are subject to 40 CFR pa rt 94. Therefore, pursuant to 40 CFR 89.1(b)(4)(i), the engines would not be subject to 40 CFR part 89. Based

on a review of the engine rating information (< 37 kW) for the engines installed on the lifeboat s located on the Developer and Discoverer Americ as
, these marine engines must comply with applicable requirements of 40 CFR part 89.



### 4.6 Control of Emissions from Marine Compression

- Ignition Engines ( 40 CFR
Part 94 )

T he provisions of this part apply to manufacturers (including post

- manufacture marinizers a nd dressers), rebuilders, and owners and operators of CI m arine engines t hat were manufactured (or that otherwise become new) on or after January 1, 2004 and that are rated at or above 37

kW ( 50 hp)

.

The main generator, emergency generator, cement unit , a nd fact rescue boat engines located

on the Developer and the main generator , emergency generator

, e mergency air compressor

, and fast rescue boat engines located on the Discoverer Americas are marine engines subject to requirements under this part. However

, in this permit application, we are addressing stationary source regulatory requirements only in detail . The noted main generator, emergency generator, cement unit, and emergency air compressor engines are considered part of a stationary source
when the Developer and Discoverer Americas are anchored to the sea floor

. T he detailed stationary source regulatory requirements for these engines are documented in this permit application under the 40 CFR part 60 , s ubpart IIII and 40 CFR part 63 , s ubpart ZZZZ sec tions

.

The life boat engines located on the Developer and Discoverer Americas are not subject to the requirements of this part because these marine engines are rated below 37 kW.

(1) Propulsion marine engine means a marine engine that moves a vessel through the water or directs the vessel’s

movement. (2) Auxiliary marine engine means a marine engine not used for propulsion. (40 CFR 94.2)

6 Control of Emissions of Air Pollution from New Marine Compression

- Ign ition Engines at or above 37kW; Final Rule (December 29, 1999)

7 Marine vessel has the meaning given in 1 U.S.C. 3, except that it does not include amphibious vehicles. The definition in 1 U.S.C. 3 very broadly includes every craft capable of being used a s a means of transportation on water. (40 CFR 89.2)Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 14 ENVIRON Statoil will comply with all requi rements as they apply to owners and opera tors of engines regulated by 40 CFR part 94. This specifically includes the General Enforcement Provisions and Prohibited Acts codified in 40 CFR 94 Subpart L.



### 4.7 Compliance Assurance Monitoring (40 CFR Part 64)

The Co mpliance Assurance Monitoring ( CAM) rul e requires a stationary source to monitor the operation and maintenance of emissions control devices in order to evaluate device performance and to report whether a source meets established emission limitations or standards. The CAM rule applies to a poll utant

- specific emissions unit that:

1. Is subject to an emission limitation or standard 8 for an applicable regulated air pollutant and the emission limitation or standard is not exempt under § 64.2(b)(1) or (2);

2. Uses a control device 9 to achieve compliance w ith the subject emission limitation or standard; and

3. Has pre

- control device potential emissions of the applicable regulated air pollutant equal to or greater than 100% of the amount, in tpy, required for a source to be classified as a major source ( e.g. , 1 00 tpy for § 302 of the CAA , 10 or 25 tpy of HAPs for § 112 of the
CAA ).

None of the emission s units installed on the Developer or Discoverer Americas are equipped
with a control device . Therefore , this regulation does not apply to the sources

.



### 4.8 Chemical Accident Prevention Provisions ( 40 CFR Part 68 )
The requirements of these regulations apply to the owners or operators of stationary sources that have more than a threshold quantity of a regulated substance, as determined under § 68.115, in order to preven t the accidental release of such substances. The regulated substances and their associated thresholds are listed in § 68.130 of 40 CFR part 68

.

According to § 68.10(f), the provisions of this part do not apply to an “ OCS source

, ” as this term
is define d in 40 CFR § 55.2 . T herefore

, 40 CFR part 68 does not appl y to the Developer or Discoverer Americas

.

8 Emission limitation or standard means any applicable requirement that constitutes an emission limitation, emission standard, standard of performance , or means of emission limitation as defined under th e Act. An emission limitation or standard may be expressed i n terms of the pollutant, expressed either as a specific quantity, rate or concentration of emissions ( e.g.
, lb of SO 2 per hour, lb of SO 2 per MMBtu of fuel input, k g of VOC per L of applied coat ing solids, or

ppmv of SO 2 ) or as the relationship of uncontrolled to controlled emissions ( e.g. , % capture and destruction efficiency

of VOC or % reduction of SO 2 ). [...] ( See 40 CFR § 64.1).

9 Control device means equipment, other than inherent process eq uipment, that is used to destroy or remove air pollutant(s) prior to discharge to the atmosphere. Note that, f or purposes of 40 CFR part 64, a control device does not include passive control measures that act to prevent pollutants from forming, such as th e use of seals, lids, or roofs to prevent the release of pollutants, use of low

- polluting fuel or feedstocks, or the use of combustion or other process design features or characteristics. ( See 40 CFR § 64.1).Outer Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 15 ENVIRON 

### 4.9 Protection of Stratospheric Ozone ( 40 CFR Part 82 )

4.9.1 Subpart F

– Recycling and Emissions Reduction
The purpose of this subpart is to reduce emissions of c lass I and class II refrigerants and their substitutes to the lowest achievable level by : (1) maximizing the recapture and recycling of such refrigerants during the service, maintenance, repair, and disposal of appliances and (2) restricting the sale of re frigerants consisting in whole or in part of a class I and class II o zone d epleting s ubstances in accordance with Title VI of the C AA . This subpart applies to any person servicing, maintaining, or repairing appliances, which includes air conditioners,
ref rigerators, chillers, and freezers.

Statoil will comply with all applicable provisions of this regulation as it relates to the servicing, maintenance, and repairing of appliances that are located on the Developer or Discoverer

Americas and that us e c lass I or II refrigerants.



### 4.10 Protection of Resources under the Endangered Species Act of 1973
The Endangered Species Act (ESA) of 1973, as amended, establishes a national policy designed to protect threatened and endangered species and the critical habitat upon which they depend. The ESA is administered by the U nited S tates Fish and Wildlife Service (FWS) and the National Oceanic and Atmospheric Administration ’s National Marine Fisheries Service (NMFS). Section 7 of the ESA governs interagency cooperation and con sultation. Under Section 7 of the ESA, federal permitting agencies consult with both the FWS and NMFS to ensure that activities permitted under their jurisdiction do not jeopardize the continued existence of threatened or endangered species and/or result in adverse modification or destruction of critical habitat.

Through a biological assessment or an informal consultation, the FWS and NMFS determine the
effect of a proposed action on a listed species or critical habitat. If either agency determines
that the proposed action would likely have an adverse e ffect on either a listed species or critical habitat, then a formal consultation is initiated. As a result of this process , the FWS and NMFS

may mak e recommendations to revise the proposed activities in order to minimize adverse impacts, although it remains the responsibility of the federal permitting agency to ensure that proposed activities do not impact threatened and endangered species.

In line with this process, the FWS and NMFS have been formally consulted in multiple instances by the U nited S tates D epartment of the Interior Bureau of Ocean Energy Management (BOEM), and historically the Minerals Management Service (MMS), for variou s actions in the Gulf of

Mexico

. The purpose of such consultations w as to assist BOEM and MMS in the preparation of several EIS assessing the impacts of the Gulf of Mexico OCS Oil and Gas Leasing Program,
which offers for lease those areas of the OCS in the G ulf of Mexico that may contain economically recoverable oil and gas resources. The lease sales provide qualified bidders the opportunity to bid upon and lease acreage in the G ulf of Mexico OCS in order to explore, develop, and produce oil and natural gas. The EIS that have been performed in relation to the
Gulf of Me xico OCS Oil and Gas Leasing Program provide analysis of the potential impacts of the proposed actions on marine, coastal, and human environments. As such, reliance on the results of past FWS and NMFS consultation (as described in the EIS) for the same le ase blocks that are covered by this permit application was deemed appropriate. Th e common lease blocksOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 16 ENVIRON addressed in this permit application and the EIS referenced herein are Lease Sales 2 13 and

22 2

. Note that the EIS referenced in this section are availa ble for review on the BOEM webpage at:

http://www.boem.gov/Environmental

- Stewardship/Environmental

Assessment/NEPA/nepaprocess.aspx

.



### 4.10.1 Lease Sales 2 13 and 2 22

– Central Planning Area

The proposed exploratory drilling activities are planned to occur within Lease S ale s 2 13 and

2 22

. The following two EIS document the impact reviews performed by MMS for a ctions within

these areas

.

• Gulf of Mexico OCS Oi l and Gas Lease Sales: 2007

- 2012 (Western Planning Area Sales 204, 207, 210, 215, and 218; Central Planning Area Sales 205, 206, 208, 213, 216, and 222) Final Environmental Impact Statement

, dated April 2007 (“April 2007 EIS”)

• Gulf of Mexico OCS Oil and Ga s Lease Sales: 2009

- 2012 (Central Planning Area Sales 208, 213, 216, and 222 Western Planning Area Sales 210, 215, and 218) Final Supplemental Environmental Impact Statement

, dated September 2008 (“September 2008 Supplemental EIS”)

A review of these two E IS found that the MMS consulted the NMFS and FWS on the proposed
lease sales and associated activities to be undertaken in the G ulf of Mexico as part of the OCS Oil and Gas Leasing Program: 2007

- 2012 5

- Year Program (“2007

- 2012 OCS Leasing Program ” )

. The N MFS Biological Opinion ( Appendix C

- 1 ), signed on June 29, 2007, concludes that the proposed lease sales and associated activities related to the 2007

- 2012 OCS Leasing Program are not likely to jeopardize the continued existence of threatened and endangered species under NMFS jurisdiction, or destroy or adversely modify designated critical habitat. The NMFS issued an Incidental Take Statement within the Biological Opinion, which contains reasonable and prudent measures with implementing terms and conditions to help minimize
take. These terms and conditions are specifically relevant to seismic operations, airborne and waterborne vessel collisions, and exposure to spilled oil.

The MMS engaged in informal consultation with the FWS and prepared and submitted a Biological Assessment (Appendix C

- 2 ) in relation to the 2007

- 2012 OCS Leasing Program

. On September 14, 2007

, t he FWS submitted a Letter of Concurrence regarding the Biological

Assessment (Appendix C

- 3 )

. The FWS concurred with the MMS determination that proposed
actions of the 2007

- 2012 OCS Leasing Program were not likely to adversely affect threatened or endangered species or designated critical habitat under FWS jurisdiction.

The Biological Assessment prepared by MMS analyzed a typical year of OCS act ivity rather than a typical lease sale (and, with regard to the Supplemental EIS included the 181 South Area, within which several proposed locations within this application lie). Therefore, MMS is to request concurrence letters annually from the NMFS and FWS to determine whether the information and analyses in the Biological Assessment and the associated consultations under
the ESA are still valid. According to the September 2008 Supplemental EIS, the most recentOuter Continental Shelf Title V and PSD Permit Application

Regulatory Applicability 4

- 17 ENVIRON written concurrence with the previously s ubmitted Biological Assessment was submitted by NMFS on July 24, 2008 . Additionally, a copy of the July 30, 2008 concurrence is provided in

A ppendix C

- 4

.

Following the Deepwater Horizon oil spill in 2010 and the subsequent reorganization of MMS,

the NMF S reinitiated ESA consultation of the effects of the 2007

- 2012 OCS Leasing Program
on ESA

- listed species and designated critical habitats. A January 24, 2011 letter from NMFS to

EPA (Appendix C

- 5 ) confirms that air emissions from OCS oil and gas exploratio n activities
were included in the NMFS B iological O pinion and reinitiating the ESA consultation does not pertain to air emissions from lease sale activities.

Statoil contacted the BOEM to request a list of any additional listings of endangered species or

critical habitats since the prior ESA consultations in 2007

- 2008. BOEM’s response (Appendix
C

- 6 ) indicates that no new species or habitats have been listed.



### 4.11 Emissions Sampling Ports , Continuous Monitoring Systems, and Source Testing Plan
EPA Region 4 in dicates t hat a complete PSD permit application for an OCS source should provide a “ description of all emission sampling ports, continuous monitoring systems, and proposed source testing plan. ” 10 S tatoil retains the Developer and Discoverer Americas and

ass ociated support fleet vessels on lease agreement. The drilling and support vessels are equipped with numerous diesel engines

, and Statoil is not aware of specific emissions sampling ports or continuous emissions monitoring systems that may already be in p lace for these engines

. Additionally, Statoil is not proposing to perform any source emissions testing on the Developer and Discoverer Americas , so we have not included a source testing plan with this permit application.

10 Prevention of Significant Deterioration Perm it Application Requirements EPA Region 4, Updated February 2010. http://www.epa.gov/region4/air/permits/ocspermits/PSDApplicationGuidelinesR4.pdf