SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal)

1. Identification of the Information Collection

1(a) Title of the Information Collection

NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal), 

EPA ICR Number 1788.10, OMB Control Number 2060-0417

1(b) Short Characterization/Abstract

The National Emission Standards for Hazardous Air Pollutants (NESHAP) for Oil and 

Natural Gas Production were proposed on February 06, 1998, and promulgated on June 17, 1999 

only for major sources. On July 8, 2005, a supplemental proposal was proposed for area sources 

with the final rule, effective date on January 03, 2007. The rule was subsequently amended in 

August 2012 to include emission sources for which standards were not previously developed. 

This ICR combines the burden associated with the original rule, ICR 1788.09, and those for the 

amendment, ICR 2440.02. The inclusion of the 2012 amended rule results in an increase in the 

number of major sources. These regulations apply to existing and new facilities that are both 

major and area sources. A major source of hazardous air pollutants (HAP) is one that has the 

potential to emit 10 tons or more of any single HAP or 25 tons or more of total HAP per year; 

an area source is one with the potential to emit less than this. New facilities include those that 

commenced construction, modification, or reconstruction after the date of proposal. This 

information is being collected to assure compliance with 40 CFR part 63, subpart HH.

In general, all NESHAP standards require initial notifications, performance tests, and 

periodic reports by the owners/operators of the affected facilities. They are also required to 

maintain records of the occurrence and duration of any startup, shutdown, or malfunction in 

the operation of an affected facility, or any period during which the monitoring system is 

inoperative. These notifications, reports, and records are essential in determining compliance, 

and are required of all affected facilities subject to NESHAP. 

Any owner/operator subject to the provisions of this part shall maintain a file of these 

measurements, and retain the file for at least five years following the date of such measurements, 

maintenance reports, and records. All reports are sent to the delegated state or local authority. 

In the event that there is no such delegated authority, the reports are sent directly to the U. S.

Environmental Protection Agency (EPA) regional office.

Over the next three years, an average of 3,735 respondents per year will be subject to the 

standard. This is comprised of 169 new sources and 3,566 existing sources; from this latter 

number, there are 3,141 sources that only maintain records, but do not submit reports. Of the 

new sources, 28 are major sources, 3 are area sources, and 138 are area sources that only 

maintain records. 
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The active (previous) ICR had the following Terms of Clearance (TOC):

When this ICR is renewed, EPA should review the respondent 

burden, universe, labor rates, and capital costs and ensure these 

estimates have been updated.

EPA has addressed each item of concern in the TOC by consulting with industry. 

EPA has updated the respondent universe and burden using the projected industry growth 

estimate from the previous ICR. Additionally, EPA has updated all labor rates and costs 

using the most recent information available. 

All of the oil and natural gas facilities in the United States are owned and operated by the 

oil and natural gas industry (the “Affected Public”). None of the facilities in the United States 

are owned by state, local, tribal or the Federal government. They are all privately-owned, forprofit businesses. The “burden” to the Affected Public is listed below in Table 1: Annual 

Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, 

Subpart HH) (Renewal). The burden to the “Federal Government” is attributed entirely to work 

performed by either Federal employees or government contractors and may be found below in

Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and Natural Gas Production

(40 CFR Part 63, Subpart HH) (Renewal).

2. Need for and Use of the Collection

2(a) Need/Authority for the Collection

The EPA is charged under Section 112 of the Clean Air Act, as amended, to establish 

standards of performance for each category or subcategory of major sources and area sources of 

hazardous air pollutants. These standards are applicable to new or existing sources of hazardous 

air pollutants and shall require the maximum degree of emission reduction. In addition, section 

114(a) states that the Administrator may require any owner/operator subject to any requirement 

of this Act to: 

(A) Establish and maintain such records; (B) make such reports; 

(C) install, use, and maintain such monitoring equipment, and use 

such audit procedures, or methods; (D) sample such emissions (in 

accordance with such procedures or methods, at such locations, at 

such intervals, during such periods, and in such manner as the 

Administrator shall prescribe); (E) keep records on control 

equipment parameters, production variables or other indirect data 

when direct monitoring of emissions is impractical; (F) submit 

compliance certifications in accordance with Section 114(a)(3); 

and (G) provide such other information as the Administrator may

reasonably require. 
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In the Administrator's judgment, HAP emissions from oil and natural gas production

cause or contribute to air pollution that may reasonably be anticipated to endanger public health 

or welfare. Therefore, the NESHAP were promulgated for this source category at 40 CFR part 

63, subpart HH.

2(b) Practical Utility/Users of the Data

The recordkeeping and reporting requirements in the standard ensure compliance 

with the applicable regulations which where promulgated in accordance with the Clean 

Air Act. The collected information is also used for targeting inspections and as evidence 

in legal proceedings.

Performance tests are required in order to determine an affected facility’s initial 

capability to comply with the emission standard. Continuous emission monitors are used to 

ensure compliance with the standard at all times. During the performance test a record of the 

operating parameters under which compliance was achieved may be recorded and used to 

determine compliance in place of a continuous emission monitor. 

The notifications required in the standard are used to inform the Agency or delegated 

authority when a source becomes subject to the requirements of the regulations. The reviewing 

authority may then inspect the source to check if the pollution control devices are properly 

installed and operated, leaks are being detected and repaired and the standard is being met. 

The performance test may also be observed.

The required semiannual reports are used to determine periods of excess emissions, 

identify problems at the facility, verify operation/maintenance procedures and for compliance 

determinations.

The information generated by the monitoring, recordkeeping and reporting requirements 

described in this ICR is used by the Agency to ensure that facilities affected by the NESHAP 

continues to operate the control equipment in compliance with the regulation.

3. Non-duplication, Consultations, and Other Collection Criteria

The requested recordkeeping and reporting are required under 40 CFR part 63, subpart

HH.

3(a) Non-duplication

If the subject standards have not been delegated, the information is sent directly to the 

appropriate EPA regional office. Otherwise, the information is sent directly to the delegated 

state or local agency. If a state or local agency has adopted its own similar standards to 

implement the Federal standards, a copy of the report submitted to the state or local agency can 

be sent to the Administrator in lieu of the report required by the Federal standards. Therefore, 

duplication does not exist.
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3(b) Public Notice Required Prior to ICR Submission to OMB

An announcement of a public comment period for the renewal of this ICR was published 

in the Federal Register (77 FR 63813) on October 17, 2012. No comments were received on the 

burden published in the Federal Register. 

3(c) Consultations

The Agency has consulted industry experts and internal data sources to project the 

number of affected facilities and industry growth over the next three years. The primary source 

of information as reported by industry, in compliance with the recordkeeping and reporting 

provisions in the standard, is the Online Tracking Information System (OTIS) which is operated 

and maintained by EPA's Office of Compliance. OTIS is EPA’s database for the collection, 

maintenance, and retrieval of all compliance data. The growth rate for the industry is based on 

our consultations with the Agency’s internal industry experts. 

Industry trade associations and other interested parties were provided an opportunity to 

comment on the burden associated with the standard as it was being developed and the standard 

has been previously reviewed to determine the minimum information needed for compliance 

purposes. In developing this ICR, we contacted: 1) the Independent Petroleum Association of 

America (IPAA), at (202) 857-4722; 2) the American Petroleum Institute (API), at (202) 682-

8319; and 3) the American Gas Association (AGA), at (202) 824-7000.

It is our policy to respond after a thorough review of comments received since the last 

ICR renewal as well as those submitted in response to the first Federal Register notice. In this 

case, no comments were received. 

3(d) Effects of Less Frequent Collection

Less frequent information collection would decrease the margin of assurance that 

facilities are continuing to meet the standards. Requirements for information gathering and 

recordkeeping are useful techniques to ensure that good operation and maintenance practices are 

applied and emission limitations are met. If the information required by these standards was 

collected less frequently, the proper operation and maintenance of control equipment and the 

possibility of detecting violations would be less likely.

3(e) General Guidelines

These reporting or recordkeeping requirements do not violate any of the regulations 

promulgated by OMB under 5 CFR part 1320, section 1320.5.

These standards require the respondents to maintain all records, including reports and 

notifications for at least five years. This is consistent with the General Provisions as applied to 

the standards. EPA believes that the five-year records retention requirement is consistent the 

Part 70 permit program and the five-year statute of limitations on which the permit program is 
5

based. The retention of records for five years allows EPA to establish the compliance history of 

a source, any pattern of non-compliance and to determine the appropriate level of enforcement 

action. EPA has found that the most flagrant violators have violations extending beyond five 

years. In addition, EPA would be prevented from pursuing the violators due to the destruction or 

nonexistence of essential records. 

3(f) Confidentiality

Any information submitted to the Agency for which a claim of confidentiality is made 

will be safeguarded according to the Agency policies set forth in Title 40, chapter 1, part 2, 

subpart B - Confidentiality of Business Information (CBI) (see 40 CFR 2; 41 FR 36902, 

September 1, 1976; amended by 43 FR 40000, September 8, 1978; 43 FR 42251, September 20, 

1978; 44 FR 17674, March 23, 1979).

3(g) Sensitive Questions

The reporting or recordkeeping requirements in the standard do not include sensitive 

questions.

4. The Respondents and the Information Requested

4(a) Respondents/SIC Codes

The respondents to the recordkeeping and reporting requirements are the oil and natural 

gas production industry. The United States Standard Industrial Classification (SIC) code for the 

respondents affected by the standards, and the corresponding North American Industry

Classification System (NAICS) codes are listed below for this source category. 

Standard (40 CFR Part 63, Subpart HH) SIC Codes NAICS Codes

Natural Gas Liquid Extraction 1321, 2819 211112

Crude Petroleum and Natural Gas Extraction 1311 211111

 

4(b) Information Requested

(i) Data Items

In this ICR, all the data that is recorded or reported is required by the NESHAP for Oil 

and Natural Gas Production (40 CFR Part 63, Subpart HH). 

A source must make the following reports:
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Notifications / Reports

Initial notification

63.775(b)(1), 63.9(b)(2) 

major source, 

63.775(c)(1) area source 

Notification of intent to construct/reconstruct

63.5(d), 63.9(b)(4) major 

source 63.9(b)(5) area 

source

Notification of actual startup date

63.9(b)(4), 63.9(b)(5)(ii) 

major source 63.9(b)(5) 

area source

Notification of date of CMS performance evaluation

63.775(b)(2), 63.8(e)(2), 

63.9(g)(1) major source

63.775 (c)(2) area source

Notification of intent to conduct a performance test

63.775(b)(3), 63.7(b), 

63.9(e) major source

73.775(c)(3) area source

Notification of compliance status

63.775(b)(4), 63.9(h), 

63.775(d), major source

63.775(c)(4) area source

Periodic reports

63.775(b)(5), 63.769(c), 

63.772(f) major source

63.775(c)(5) area source

Results of performance test 63.7(g), 63.10(d)(2)

Notification of change in compliance demonstration method for 

control device performance

63.772(f)

Notification of process change 63.775(f)

Startup, shutdown and malfunction reports

63.775(b)(6), 63.6(e)(3), 

63.10(d)(5) major source

63.775(c)(6) area source

Semiannual excess emissions and continuous monitoring system 

performance report 63.8(c)(8), 63.10(e)(3)

Semiannual HAP summary report 63.10(e)(3)

A source must keep the following records:

Recordkeeping

Record retention 63.10(b)(1), 63.774(b)(1)
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Recordkeeping

Copies of notifications and reports and supporting documentation 63.10(b)(2)(xiv)

Records of performance tests, other compliance demonstrations, 

and performance evaluations (area sources) 63.10(b)(2)(vii)-(ix) 

Record related to control equipment inspections (area sources) 63.774(b)(5-8) 

63.773(c)(7)

Records related to CMS (area sources) 63.10(b)(2)(vi), (x), (xi), 

63.10(c), 63.774(b)(3-4)

Records required if complying via process modification (area 

sources)

63.774(b)(10-11),

63.771(e) 

Records required if complying via benzene emission limit (area 

sources) 63.774(c)

Records related to equipment that is exempt or subject to other 

standards

63.764(e), 63.774(d) 

63.774(b)(9)

Startup, shutdown, or malfunction plan 63.6(e)(3), 63.762(d), 

63.8(c)(1)(iii)

Records of exempt glycol dehydration units 63.764(e)(1), 63.774(d)(1)

Records of exempt ancillary equipment and compressors 63.764(e)(2), 63.774(d)(2)

Records of glycol dehydration unit baseline operations 

(alternative standards)

63.771(e)(1), 

63.774(b)(10)

Records of conditions for which glycol dehydration unit baseline 

operations shall be modified to achieve 95% HAP emission 

reduction (alternative standards)

63.771(e)(2), 

63.774(b)(11)

Records to demonstrate that glycol dehydration unit operates 

under conditions for HAP reduction (alternative standards)

63.771(e)(3), 

63.774(b)(11)

Documentation of control device design analysis 63.769(c), 63.772(e)(4) 

Records relating to startup, shutdown, and malfunction periods; 

maintenance; compliance measurements; performance tests and 

evaluation; calibrations and adjustments

63.10(b)(2), 63.774(b)(2)

Records of periods when monitoring systems are not operating 

(breakdowns, repairs, startup, shutdown, malfunctions, etc.) 63.10(c), 63.774(b)(3)

Records of control device operating parameters – continuous and 

daily average (except flares) 63.774(b)(4)(i-ii)

Records of flare design, visible emissions, heat content, flowrate, exit velocity, pilot flame outages (flares only)63.774(b)(4)(i-ii), 

63.774(e)

Records of 365 days rolling average condenser efficiency

(condensers only)

63.774(b)(4)(ii)(B)

Records of flow indicator operation, flow detection, vent stream 63.774(b)(4)(iii)
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Recordkeeping

diversions

Records of inspections of seals or closure mechanisms, records of 

broken/changed/checked out seals/valves/locks 63.774(b)(4)(iv)

Records of unsafe-to-inspect parts 73.773(c)(7), 63.774(b)(5)

Records of difficult-to-inspect parts 63.773(c)(7), 63.774(b)(6)

Records of leak or defect detection and repair 63.769(c), 61.246, 

63.773(c)(7), 63.774(b)(7)

Records of inspections during which no leaks or defects were 

detected 63.773(c)(7), 63.774(b)(8)

Records of compliance with benzene emission limit (alternative 

standards) 63.774(c)

Site-specific performance evaluation test plan 63.7(c)(2), 63.8(d)(2), 

63.8(e)(3)(i)

Records of results of performance test 63.7(g)(3)

Continuous monitoring system quality control program 63.8(d)

Records of continuous monitoring system performance 63.10(c)

Electronic Reporting

Some of the respondents are using monitoring equipment that automatically records 

parameter data. Although personnel at the affected facility must still evaluate the data, internal 

automation has significantly reduced the burden associated with monitoring and recordkeeping at 

a plant site. 

Also, regulatory agencies in cooperation with the respondents continue to create reporting 

systems to transmit data electronically. However, electronic reporting systems are still not 

widely used. At this time, it is estimated that approximately 10 percent of the respondents use 

electronic reporting.

(ii) Respondent Activities

Respondent Activities

Read instructions.

Gather relevant information.

Perform initial performance test and repeat performance tests if necessary.

Write the notifications and reports listed above. 

Enter information required to be recorded above.

Submit the required reports developing, acquiring, installing, and utilizing technology and 
9

Respondent Activities

systems for the purpose of collecting, validating, and verifying information.

Develop, acquire, install, and utilize technology and systems for the purpose of processing and 

maintaining information.

Develop, acquire, install, and utilize technology and systems for the purpose of disclosing and 

providing information.

Adjust the existing ways to comply with any previously applicable instructions and 

requirements.

Train personnel to be able to respond to a collection of information.

Transmit, or otherwise disclose the information.

Currently, sources are using monitoring equipment that provides parameter data in an 

automated way (e.g., continuous parameter monitoring system). Although personnel at the 

source still need to evaluate the data, this type of monitoring equipment has significantly reduced 

the burden associated with monitoring and recordkeeping.

5. The Information Collected: Agency Activities, Collection Methodology, and 

Information Management

5(a) Agency Activities 

EPA conducts the following activities in connection with the acquisition, analysis, 

storage, and distribution of the required information.

Agency Activities

Observe initial performance tests and repeat performance tests if necessary.

Review notifications and reports, including performance test reports, and excess emissions 

reports, required to be submitted by industry.

Audit facility records.

Input, analyze, and maintain data in the Online Tracking Information System (OTIS). 

Maintain data in the Central DATA Exchange (CDX). 

5(b) Collection Methodology and Management

Following notification of startup, the reviewing authority could inspect the source to 

determine whether the pollution control devices are properly installed and operated. 
10

Performance test reports are used by the Agency to discern a source’s initial capability to comply 

with the emission standards. Data and records maintained by the respondents are tabulated and 

published for use in compliance and enforcement programs. The semiannual reports are used 

for problem identification, as a check on source operation and maintenance, and for compliance 

determinations.

Information contained in the reports will be required to be submitted electronically to 

EPA’s Central DATA Exchange (CDX) using the Electronic Reporting Tool. The Central Data 

Exchange (CDX) enables fast, efficient and more accurate environmental data submissions from 

state and local governments, industry and tribes to the Environmental Protection Agency (EPA) 

and participating program offices. EPA's CDX is the point of entry on the Environmental 

Information Exchange Network (Exchange Network) for environmental data submissions to the 

Agency. CDX works with both EPA program offices looking for a way to better manage 

incoming data, and stakeholders looking for a way to reduce burden from reporting 

requirements.

Information contained in the reports is entered into OTIS which is operated and 

maintained by EPA's Office of Compliance. OTIS is EPA’s database for the collection, 

maintenance, and retrieval of compliance data for approximately 125,000 industrial and 

government-owned facilities. EPA uses the OTIS for tracking air pollution compliance and 

enforcement by local and state regulatory agencies, EPA regional offices and EPA headquarters. 

EPA and its delegated authorities can edit, store, retrieve and analyze the data.

The records required by this regulation must be retained by the owner/operator for 

five years.

5(c) Small Entity Flexibility

A majority of the respondents are large entities (i.e., large businesses). However, the 

impact on small entities (i.e., small businesses) was taken into consideration during the

development of the regulation. Due to technical considerations involving the process operations 

and the types of control equipment employed, the recordkeeping and reporting requirements are 

the same for both small and large entities. The Agency considers these to be the minimum 

requirements needed to ensure compliance and, therefore, cannot reduce them further for small 

entities. To the extent that larger businesses can use economies of scale to reduce their burden, 

the overall burden will be reduced.

5(d) Collection Schedule

The specific frequency for each information collection activity within this request is 

shown in below Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural 

Gas Production (40 CFR Part 63, Subpart HH) (Renewal). 
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6. Estimating the Burden and Cost of the Collection

Table 1 documents the computation of individual burdens for the recordkeeping and 

reporting requirements applicable to the industry for the subpart included in this ICR. The 

individual burdens are expressed under standardized headings believed to be consistent with the 

concept of burden under the Paperwork Reduction Act. Wherever appropriate, specific tasks and 

major assumptions have been identified. Responses to this information collection are mandatory.

The Agency may not conduct or sponsor, and a person is not required to respond to, a 

collection of information unless it displays a currently valid OMB Control Number.

6(a) Estimating Respondent Burden

The average annual burden to industry over the next three years from these recordkeeping 

and reporting requirements is estimated to be 46,642 (Total Labor Hours from Table 1 below). 

These hours are based on Agency studies and background documents from the development of 

the regulation, Agency knowledge and experience with the NESHAP program, the previouslyapproved ICR, and any comments received.

6(b) Estimating Respondent Costs

(i) Estimating Labor Costs

This ICR uses the following labor rates: 

Managerial $121.44 ($57.83+ 110%) 

Technical $100.23 ($47.73 + 110%)

Clerical $50.51 ($24.05 + 110%)

These rates are from the United States Department of Labor, Bureau of Labor Statistics, March 

2012, “Table 2. Civilian Workers, by occupational and industry group.” The rates are from 

column 1, “Total compensation.” The rates have been increased by 110 percent to account for 

the benefit packages available to those employed by private industry.

(ii) Estimating Capital/Startup and Operation and Maintenance Costs

The type of industry costs associated with the information collection activities in the 

subject standard are both labor costs which are addressed elsewhere in this ICR and the costs 

associated with continuous monitoring. The capital/startup costs are one-time costs when a 

facility becomes subject to the regulation. The annual operation and maintenance costs are the 

ongoing costs to maintain the monitors and other costs such as photocopying and postage.
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(iii) Capital/Startup vs. Operation and Maintenance (O&M) Costs

Capital/Startup vs. Operation and Maintenance (O&M) Costs

(A)

Continuous 

Monitoring Device

(B)

Capital/Startup 

Cost for One 

Respondent

(C)

Number of 

New

Respondents

(D)

Total 

Capital/Startup 

Cost, (B X C)

(E)

Annual O&M 

Costs for One 

Respondent

(F)

Number of 

Respondents 

with O&M

(G)

Total 

O&M,

(E X F)

THC analyzer (major 

source) a $10,200 28 $285,600 $1,020 498 $507,960

Monitoring 

equipment (CMS) b, c $1,015 31 $31,465 $134 498 $66,732

Postage cost d NA 0 $0 $7.63 2,487 $18,976

Total $317,065 $593,668

a. Cost information for THC analyzer is from the EPA Air Pollution Control Cost Manual, January 2002, “Table 

4.12: Default Analyzer and Monitor Equipment Costs for CEMS ($).” EPA assumes all major sources utilize an 

organic monitoring device to measure the concentration level of organic compounds in the exhaust vent system. 

EPA estimates the cost for a TOC/HAP monitor based on the cost of a total hydrocarbon (THC) analyzer. 

b.We assume that all new major sources and 2 percent of new area sources are required to purchase CMS per year. 

c. We assume the average number of existing major sources (498) have O&M costs associated with CMS. 

d.We estimate an average of 2,423 responses (reports). 

The total capital/startup costs for this ICR are $317,065. This is the total of column D in 

the above table. 

The total operation and maintenance (O&M) costs for this ICR are $593,668. This is the 

total of column G. 

The average annual cost for capital/startup and operation and maintenance costs to 

industry over the next three years of the ICR is estimated to be $910,733. These are 

recordkeeping costs. 

(iv) Affirmative Defense/Root Cause Analysis/Malfunction Costs.

The EPA’s estimate for an affirmative defense and root cause analysis in the table below

is based on general experience to calculate the time and effort required of a source to review 

relevant data, interview plant employees, and reconstruct the events prior to a malfunction in 

order to determine primary and contributing causes. The level of effort also includes time to 

produce and retain the report in document form so that the source will have it available should 

EPA or state enforcement agencies ever request to review it.

The labor rates used for these costs are from the U. S. Department of Labor,
13

Bureau of Labor Statistics, March 2012, Table 2, Civilian Workers, by occupational and industry

group. The rates are from column 1, Total compensation. The rates have been increased by 110 

percent to account for the benefit packages available to those employed by private industry.

Personnel Number of 

Personnel

Time 

Requirement 

(hours)

Total 

Hours

Hourly Rate 

($/hr) Total

Technical Personnel 3 6 18 $100.23 $1,804

Managerial Personnel 2 6 12 $121.44 $1,457

Total 5 30 $3,261

6(c) Estimating Agency Burden and Cost

The only costs to the Agency are those costs associated with analysis of the reported 

information. EPA's overall compliance and enforcement program includes activities such as the 

examination of records maintained by the respondents, periodic inspection of sources of 

emissions, and the publication and distribution of collected information. 

The average annual Agency cost during the three years of the ICR is estimated to be 

$244,404. 

This cost is based on the average hourly labor rate as follows:

Managerial $62.27 (GS-13, Step 5, $38.92 + 60%) 

Technical $46.21 (GS-12, Step 1, $28.88 + 60%)

Clerical $25.01 (GS-6, Step 3, $15.63 + 60%)

These rates are from the Office of Personnel Management (OPM), 2012 General Schedule,

which excludes locality, rates of pay. The rates have been increased by 60 percent to account for 

the benefit packages available to government employees. Details upon which this estimate is 

based appear below in Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and 

Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal). 

6(d) Estimating the Respondent Universe and Total Burden and Costs

Based on our research for this ICR, on average over the next three years, approximately

3,566 existing respondents will be subject to the standard. It is estimated that an additional 169 

respondents per year will become subject; this estimate includes 28 major sources, 3 area 

sources, and 138 area sources that only keep records but do not submit reports. The overall 

average number of respondents, as shown in the table below, is 3,735 per year. 

The number of major source respondents was updated based on the NEI database, which 

was used during the development of the 2012 amendment to determine the MACT. The number 
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of area source respondent was derived from information in EPA ICR number 1788.09. 

The number of respondents is calculated using the following table that addresses the three 

years covered by this ICR. 

Number of Respondents

Year

(A)

Number of New

Respondents 1 & 2

(B)

Number of 

Existing

Respondents 3

(C)

Number of Existing

Respondents that keep 

records but do not 

submit reports 4

(D)

Number of 

Existing

Respondents That

Are Also New

Respondents 5

(E)

Number of 

Respondents

(E=A+B)

Major Area

Area Only 

Keep 

Records Major Area

1 28 3 138 470 2,927 3,003 25 3,566

2 28 3 138 498 3,068 3,141 25 3,735

3 28 3 138 526 3,209 3,279 25 3,904

Average 28 3 138 498 3,068 3,141 25 3,735

1

New respondents include sources with constructed or reconstructed affected facilities.

2 We assume that there are 141 new area sources and 28 new major sources for a total of 169.

3 We assume there are 3,068 existing area sources and 498 existing major sources.

4 We assume that 98 percent of area sources will only be required to maintain records. All major sources and 2 percent of area 

sources will maintain records and submit reports. 

5 We estimate 25 of the new major sources are existing facilities, while 3 new major sources are new facilities. 

Column D is subtracted to avoid double-counting respondents. As shown above, the 

average Number of Respondents over the three year period of this ICR is 3,735. 

The total number of annual responses per year is calculated using the following table: 

Total Annual Responses

(A)

Information Collection Activity

(B)

Number of 

Respondents 

(C)

Number of 

Responses

(D)

Number of Existing 

Respondents That 

Keep Records But Do 

Not Submit Reports

(E)

Total Annual Responses 

E=(BxC)+D

Affirmative Defense 13 1 N/A 13

Major sources

 Notification of 

construction/reconstruction 28 1 0 28

 Notification of actual startup 28 1 0 28
15

Total Annual Responses

 Notification of date of CMS 

performance evaluation 28 1 0 28

 Notification of date of 

performance test 28 1 0 28

 Notification of compliance 

status report 28 1 0 28

 Startup, shutdown, 

malfunction reports 526 2 0 1,052

 Semiannual periodic report 526 2 0 1,052

Area sources

 Notification of intent to 

construct 3 1 0 3

 Notification of actual startup 

date 3 1 0 3

 Notification of intent to 

conduct performance test 16 1 0 16

 Notification of date of CMS 

performance evaluation 16 1 0 16

 Notification of compliance 

status 16 1 0 16

 First periodic report 3 1 0 3

 Subsequent periodic reports 66 1 0 66

 Startup, shutdown, 

malfunction reports 12 10 0 120

Total 2,500

The number of Total Annual Responses is 2,500. 

The total annual labor costs are $4,520,905. Details regarding these estimates may be 

found below in Table 1. Annual Respondent Burden and Cost – NESHAP for Oil and Natural 

Gas Production (40 CFR Part 63, Subpart HH) (Renewal). 

6(e) Bottom Line Burden Hours and Cost Tables

The detailed bottom line burden hours and cost calculations for the respondents and the 

Agency are shown in Tables 1 and 2, respectively, and summarized below. 

(i) Respondent Tally

The total annual labor hours are 46,642 at a cost of $4,520,905. Details regarding these 

estimates may be found below in Table 1:Annual Respondent Burden and Cost – NESHAP for 

Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal). 
16

Furthermore, the annual public reporting and recordkeeping burden for this collection of 

information is estimated to average 19 hours per response.

The total annual capital/startup and O&M costs to the regulated entity are $910,733. The 

cost calculations are detailed in Section 6(b)(iii), Capital/Startup vs. Operation and Maintenance 

(O&M) Costs.

(ii) The Agency Tally

The average annual Agency burden and cost over next three years is estimated to be 

5,423 labor hours at a cost of $244,404. See Table 2 below: Average Annual EPA Burden and 

Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal). 

6(f) Reasons for Change in Burden

This ICR combines the requirements from the existing regulations and the 2012 

amendment, which are EPA ICR Numbers 1788.09 and 2440.02, respectively. The 2012 rule 

amended title 40, chapter I, part 63 subpart HH to include emission sources for which standards 

were not developed previously. This results in an increase in the number of affected major 

sources. The amendment did not affect the number of area sources. 

Several changes were made to this ICR: 1) A correction in the estimated number of 

respondents based on recent data obtained during development of the 2012 rule amendment; 

2) Inclusion of requirements associated with the 2012 amendment, including affirmative defense; 

and 3) Update to labor rates used in calculating burden estimates. These changes result in an 

overall decrease in the labor hours and costs and an increase in the total capital and O&M costs 

as currently identified in the OMB Inventory of Approved Burdens. The current OMB Inventory

adds the burdens from EPA ICR Number 1788.09 and 2440.02, thus double-counting the burden 

associated with several requirements. This ICR has been updated to remove any duplicates and 

to reflect the revised standard correctly. 

The EPA estimate for the required notification, reports and records, including the root 

cause analysis, associated with a single affirmative defense incident totals $3,261 and is based on 

the time and effort required for a source to review relevant data, interview plant employees, and 

document the events surrounding a malfunction that has caused an exceedance of an emission 

limit. The estimate also includes time to produce and retain records and reports for submission to 

the EPA. For the purpose of estimating the annual burden, the EPA is attributing a total of 39 

instances of affirmative defense over a three-year period across all sources in the category. The 

EPA is using this frequency because among the number of excess emission events reported by 

source operators, only a small number would be expected to result from a malfunction, and only 

a subset of excess emissions caused by malfunctions would result in the source choosing to 

assert affirmative defense. We therefore believe the number of instances in which source 

operators may be expected to avail themselves of the affirmative defense will be extremely

small. 
17

6(g) Burden Statement

The annual public reporting and recordkeeping burden for this collection of information 

is estimated to average 19 hours per response. “Burden” means the total time, effort, or financial 

resources expended by persons to generate, maintain, retain, or disclose or provide information 

to or for a Federal agency. This includes the time needed to review instructions; develop, 

acquire, install, and utilize technology and systems for the purposes of collecting, validating, and 

verifying information, processing and maintaining information, and disclosing and providing 

information; adjust the existing ways to comply with any previously applicable instructions and 

requirements; train personnel to be able to respond to a collection of information; search data 

sources; complete and review the collection of information; and transmit or otherwise disclose 

the information.

An agency may not conduct or sponsor, and a person is not required to respond to, a 

collection of information unless it displays a valid OMB Control Number. The OMB Control 

Numbers for EPA regulations are listed at 40 CFR part 9 and 48 CFR chapter 15.

To comment on the Agency's need for this information, the accuracy of the provided 

burden estimates, and any suggested methods for minimizing respondent burden, including the 

use of automated collection techniques, EPA has established a public docket for this ICR under 

Docket ID Number EPA-HQ-OECA-2012-0669. An electronic version of the public docket is 

available at http://www.regulations.gov/, which may be used to obtain a copy of the draft 

collection of information, submit or view public comments, access the index listing of the 

contents of the docket, and to access those documents in the public docket that are available 

electronically. When in the system, select “search,” then key in the docket ID number identified 

in this document. The documents are also available for public viewing at the Enforcement and 

Compliance Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, 

Room 3334, 1301 Constitution Ave., NW, Washington, DC. The EPA Docket Center Public 

Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding legal 

holidays. The telephone number for the Reading Room is (202) 566-1744, and the telephone 

number for the docket center is (202) 566-1752. Also, you can send comments to the Office of 

Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, 

Washington, DC 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID 

Number EPA-HQ-OECA-2012-0669 and OMB Control Number 2060-0417 in any

correspondence. 

Part B of the Supporting Statement

This part is not applicable because no statistical methods were used in collecting this 

information.
18

Table 1: Annual Respondent Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH)

(Renewal)

Burden item

(A) (B) (C) (D) (E) (F) (G) (H)

Technical 

Person 

hours per 

occurrence

No. of 

occurrences 

per 

respondent 

per year

Technical

Person 

hours per 

respondent 

per year

(C=AxB)

Respondents 

per year 

a

Technical 

personhours per 

year

(E=CxD)

Management 

person hours 

per year

(Ex0.05)

Clerical 

person 

hours 

per year

(Ex0.1)

Total 

Cost

Per Year b

1. Applications N/A

2. Surveys and studies N/A

3. Reporting requirements

 a. Read rule and instructions c4 1 4 169 676 33.8 67.6 $75,274.63

 b. Required activities N/A

 c. Create information N/A

 d. Gather existing information c8 1 8 169 1,352 67.6 135.2 $150,549.26

 e. Affirmative defense d18 1 18 13 234 156 0 $42,398.46

 Major sources

 i. Notification of 

construction/reconstruction c

2 1 2 28 56 2.8 5.6 $6,235.77

 ii. Notification of actual startup c2 1 2 28 56 2.8 5.6 $6,235.77

iii. Notification of date of CMS performance 

evaluation c

2 1 2 28 56 2.8 5.6 $6,235.77

 iv. Notification of date of performance test c2 1 2 28 56 2.8 5.6 $6,235.77

 v. Notification of compliance status report c4 1 4 28 112 5.6 11.2 $12,471.54

 vi. Startup, shutdown, malfunction reports e2 2 4 498 1,992 99.6 199.2 $221,815.18

 vii. Semiannual periodic report e2 2 4 498 1,992 99.6 199.2 $221,815.18

 Area sources

 i. Notification of intent to construct c2 1 2 3 6 0.3 0.6 $668.12
19

 ii. Notification of actual startup date 

c

11133 0.15 0.3 $334.06

iii. Notification of intent to conduct 

performance test c, 

f

212 16 32 1.6 3.2 $3,563.30

 iv. Notification of date of CMS performance 

evaluation c, 

f

212 16 32 1.6 3.2 $3,563.30

 v. Notification of compliance status 101 10 16 1608 16 $17,816.48

 vi. First periodic report 

g

4143 12 0.6 1.2 $1,336.24

 vii. Subsequent periodic reports 

g

212 66 132 6.6 13.2 $14,698.60

viii. Startup, shutdown, malfunction reports 

h

2 10 20 12 240 12 24 $26,724.72

Subtotal for Reporting Requirements 8,400 $817,972.11

4 Recordkeeping requirements

 a. Read instructions

 - Major source 

i

414 28 112 5.6 11.2 $12,471.54

 - Area source 

i

414 141 564 28.2 56.4 $62,803.09

 b. Plan activities 

 - Major source 161 16 28 448 22.4 44.8 $49,886.14

 - Area source

 i. Sources required to operate add-on 

controls

j

161 16 69 1,104 55.2 110.4 $122,933.71

 ii. Sources required to implement MP

k

414 138 552 27.6 55.2 $61,466.86

 c. Implement activities

 - Major source N/A

 - Area source

 i. Performance test

l

351 359 315 15.75 31.5 $35,076.20

 ii. Design analysis

l

121 12 61 732 36.6 73.2 $81,510.40

 iii. Control equipment leak monitoring 

j

326 69 414 20.7 41.4 $46,100.14

 iv. Operate and maintain CMS 

j, m

2 12 24 69 1,656 82.8 165.6 $184,400.57

 d. Develop record system 

 - Major source
20

 i. Control equipment c8 1 8 28 224 11.2 22.4 $24,943.07

 ii. Equipment inspection and monitoringn13 1 13 498 6,474 323.7 647.4 $720,899.32

 - Area source

 i. Startup, shutdown, malfunction plan l20 1 20 25 500 25 50 $55,676.50

 ii. Control equipment l8 1 8 9 72 3.6 7.2 $8,017.42

 e. Time to enter information

 - Major source

 i. Control equipment monitoring n, o 1 2 2 498 996 49.8 99.6 $110,907.59

ii. Control device CMS n, o, p 1 12 12 498 5,976 298.8 597.6 $665,445.53

iii. Equipment inspection and monitoring 

 n, o, p

1 12 12 498 5,976 298.8 597.6 $665,445.53

 - Area source

i Control equipment leak monitoring j, q1 2 2 69 138 6.9 13.8 $15,366.71

ii. CMS measurements j1 12 12 69 828 41.4 82.8 $92,200.28

 f. Time to train personnel

 - Major source c, l 8 1 8 28 224 11.2 22.4 $24,943.07

 - Area source c, l 16 1 16 3 48 2.4 4.8 $5,344.94

g. Maintain records (area source) j, s20 1 20 69 1,380 69 138 $153,667.14

h. Retain records of emission t1 1 1 3,141 3,141 157.05 314.1 $349,759.77

i. Retrieve records/reports j, u20 1 20 69 1,380 69 138 $153,667.14

Subtotal for Recordkeeping Requirements 38,242 $3,702,932.66

TOTAL LABOR BURDEN AND COST 

(rounded) 46,642 $4,520,905

Assumptions:

a

 We have assumed that on average there are 498 existing major sources and 3,068 existing area sources. We also assume that there are an additional 28 new major 

sources and 141 new area sources per year (with only 3 of the new area sources required to submit reports). In addition, there are 3,141 existing sources per year that 

are subject only to the recordkeeping requirement of this regulation over the three years of this ICR.

b

 This ICR uses the following labor rates: $121.44 per hour for Executive, Administrative, and Managerial labor; $100.23 per hour for Technical labor, and $50.51

per hour for Clerical labor. These rates are from the United States Department of Labor, Bureau of Labor Statistics, March 2012, Table 2. Civilian Workers, by 
21

occupational and industry group. The rates are from column 1, Total Compensation. The rates have been increased by 110 percent to account for the benefit packages 

available to those employed by private industry.

c

 This is a one-time only activity for each new facility, which comprised of 28 new major sources, 3 new area sources, and 138 new area sources that only maintain 

records, for a total of 169 new sources per year on average. The hours required to complete each activity is based on estimates from EPA ICR Number 1788.09. 

d

 We estimate 39 instances of affirmative defense over a 3 year period across all sources in the category, or a frequency of 13 instances per year. We estimate 18 

technical hours, 12 managerial hours, and no clerical hours are required for each instance of affirmative defense. 

e

 We have assumed that startup, shutdown, malfunction (SSM) reports may be included as part of the semiannual periodic reports. In addition, we estimate two hours 

are required to complete each report. There are 498 existing major sources that are subject to SSM and semiannual reports. 

f

 We have assumed that the requirements does not apply to sources located outside of an urbanized area (UA)/urban cluster (UC) plus offset boundary.

g

 We have assumed that 66 existing area sources (i.e., 2 percent of existing area sources) and 3 new area sources will complete this activity. 

h We have assumed that this report is only required if actions taken during SSM does not follow the SSM plan. We estimate 12 sources (0.4 percent of existing area 

sources) will complete this activity. 

i

 We have assumed that it will take each of the new sources (28 major and 141 area) four hours to read instructions.

j

 We have assumed that 66 existing area sources (e.g., 2% of existing area sources), and 3 new area sources will complete this activity.

k

 This applies to new area sources that only keep records (138 sources). 

l The estimated hours per activity and number of sources are based on estimates from EPA ICR Number 1788.09 and 2440.02. 

m

 We have assumed that it will take each respondent two hours twelve times per year to implement this activity.

n

 This applies to the 498 existing major sources.

o We assume that all of the major sources will each take one hour to enter information.

p We have assumed that each respondent will be required to enter information twelve times per year. 

q

 We have assumed that each respondent will be required to enter information two times per year.

r

 We have assumed that respondents will each take sixteen hour to train personnel.. 

s

 We have assumed that it will take 20 hours for each respondent to maintain records.

t

 We have assumed that all of the respondents that are subject only to the recordkeeping requirements (3,141 sources) will take one hour each year to process records of 

emissions.

u

 We have assumed that each respondent will take twenty hours once per year to retrieve records/reports.
22

Table 2: Average Annual EPA Burden and Cost – NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH)

 (Renewal)

Activity

(A) (B) (C) (D) (E) (F) (G) (H)

EPA 

personhours per 

occurrence

No. of 

occurrences 

per plant 

per year

EPA personhours per 

plant per 

year

Plants 

per year 

a

Technical 

personhours per 

year

Management 

personhours per 

year

Clerical 

personhours per 

year

Cost, $ b

(C=AxB) (E=CxD) (Ex0.05) (Ex0.1)

Major source

 Initial notification c2 1 2 28 56 2.8 5.6 $2,902.17 

 Preconstruction review application c4 1 4 28 112 5.6 11.2 $5,804.34 

 Performance test notification c

2 1

2 28 56 2.8 5.6 $2,902.17 

 Compliance status notification c4 1 4 28 112 5.6 11.2 $5,804.34 

 Startup, shutdown, malfunction reports d2 2 4 498 1,992 99.6 199.2 $103,234.40 

 Semiannual periodic reports e2 2 4 498 1,992 99.6 199.2 $103,234.40 

Area sources

 Notification of intent to construct 2 1 2 3 6 0.3 0.6 $310.95 

 Notification of actual startup date 2 1 2 3 6 0.3 0.6 $310.95 

 Notification of intent to conduct performance test f2 1 2 16 32 1.6 3.2 $1,658.38 

 Notification of date of CMS performance evaluation 2 1 2 16 32 1.6 3.2 $1,658.38 

 Notification of compliance status 4 1 4 16 64 3.2 6.4 $3,316.77 

 Periodic reports – new source g2 1 2 66 132 6.6 13.2 $6,840.83 

 Startup, shutdown, malfunction reports g, h 2 1 2 62 124 6.2 12.4 $6,426.24 

TOTAL ANNUAL BURDEN AND COST (rounded) 5,423 $244,404

Assumptions:

a

 We have assumed that on average there are 498 existing major sources and 3,068 existing area sources. We also assume that there are an additional 28 new major 

sources and 141 new area sources per year (with only 3 of the new area sources required to submit reports). In addition, there are 3,141 existing sources per year that 
23

are subject only to the recordkeeping requirement of this regulation over the three years of this ICR.

b

 This cost is based on the following labor rates which incorporates a 1.6 benefits multiplication factor to account for government overhead expenses: $62.27 

Managerial rate (GS-13, Step 5), $46.21 Technical rate (GS-12, Step 1), and $25.01 Clerical rate (GS-6, Step 3). These rates are from the Office of Personnel 

Management (OPM) 2012 General Schedule which excludes locality rates of pay.

c

 We have assumed that this is a one-time only activity for each facility.

d

 We have assumed that startup, shutdown, malfunction reports may be included as part of the semiannual periodic reports.

e

 We have assumed that each respondent will take two hours two times per year to complete the semiannual periodic reports.

f

 We have assumed that each of the respondents will take two hours once per year to complete requirements.

g

 We have assumed that the requirements does not apply to sources located outside of an urbanized area (UA)/urban cluster (UC) plus offset boundary.

h

 We have assumed that each respondent will take two hours once per year to review reports.