**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 I CR Number 1788.1 0 , 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 I CR 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 potenti al to emit 10 tons or more of an y 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 d ate 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 fa cilities. They are also required to maintain records of the occurrence and duration of an y startup, shutdown, or malfunction in the operation of an affected facility, or an y period during which the monitoring s ys tem is inoperative. These notification s, 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 directl y to the U

. S

. Environmental Protection Agency (EPA) regional office. Over the next three ye ars, an average of 3,735 respondents per ye ar 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 onl y 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 onl y maintain records.2

The active (previous) IC R had the following Terms of Clearance (TOC):
When this I CR 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 I CR. 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 b y the oil and natural gas industry (the “Affected Public”). None of the facilities in the United States are owned b y state, local, tribal or the Federal government. They are all privatel y - owned , for

pro fit 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). T he burden to the “Federal Government” i s attributed entirel y to work performed b y either F ederal employees or government contractor s 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. Inaddition, section 114(a) states that the Administrator may require any

owner/op erator 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 accordanc e 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 direc t monitoring of emissions is impractical; (F) submit compliance certifications in accordance with Section 114(a)(3); and (G) provide such other information as the Admini strator may reasonabl y require.3

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 sourc e category at 40 CFR part 63, subpart HH

. **2(b) Practical Ut ility/Users of the Data**  The recordkeeping and reporti ng 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 co mply

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 notificat i ons 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 prope rl y 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 fac ility , verify operation/maintenance procedures and for compliance determinations. The information generated by the monitoring, recordkeeping and reporting requirements described in this I CR 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** 
**- dup**  **lication** If the subject standards have not been delegated, the information is sent directl y to the appropriate EPA regional office. Otherwise, the information is sent directl y to the delegated state or local agency . If a state or local agency has adopt ed its own similar standards to implement the Federal standards, a cop y 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.4

**3(b) Public Notice Required Prior to ICR Submission to OMB** An announcement of a public comment period for the renewal of this I CR 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 i ndustry

experts and internal data sources to project the number of affected facilities and industry growth over the next three year s. 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 Sy stem (OTIS ) which is operated and maintained b y EPA's Office of Compliance. OTI S 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 I CR, w e 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 f irst Federal Regi ster n otice. 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 g ood operation and maintenance practices are applied and emission limitations are met. If the information required by these standards was collected less frequentl y, the proper operation and maintenance of control equipment and the possibility

of detecting violations would be less likely

. **3(e) General Guidelines**
T hese reporting or recordkeeping requirements do not violate any of the regulations promulgated b y 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

- ye ar records retention requirement is consistent the Part 70 permit program and the five

- ye ar statute of limitations on which the permit program is5

based. T h e retention of records for five ye ars allow s EPA to establish the compliance history of a source , an y pattern of non - compliance and to determine the appropriate level of enfor cement action. EPA has found that the most flagrant violators have violations extending beyond five ye ars. In addition, EPA would be prevented from pursuing the violators due to the destruction or nonexistence of essential records

. **3(f) Confidentialit y**  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**
T he 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 ( SI C ) code for the respondents affected b y the standards , and the corresponding North American Industry Classification Sy stem (NAI CS ) codes are listed below for this source category

.
**Standard (40 CFR**  **Pa rt 63**  **, S**  **ubpart 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 b y the NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH ). A source must make the following reports:6
**Notification s**  **/ 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), majo r 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 s ys tem performanc e 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)7 **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 gl yc ol 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 gl ycol deh ydration unit baseline operations (alternative standards) 63.771(e)(1), 63.774(b)(10) Records of conditions for which gl yc ol deh ydration 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 gl ycol deh ydration unit operates under conditions for HAP reduction (alternative standards) 63.771(e)(3), 63.774(b)(11) Documentation of control device design analy sis 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 sy stems 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, flow

rate, exit velocity , pilot flame outages (flares only) 63.774(b)(4)(i

- ii), 63.774(e) Records of 365 day s rolling average condenser efficiency (conden sers only) 63.774(b)(4)(ii)(B) Records of flow indicator operation, flow detection, vent stream 63.774(b)(4)(iii)8 **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 6 3.769(c), 61.246, 63.773(c)(7), 63.774(b)(7) Records of inspections during wh ich 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 sy stem qualit y control program 63.8(d) Records of continuous monitoring s ys tem performance 63.10(c) Electronic Reporting Some of the r espondents 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 recordke eping at a plant site. Also, regulatory

agencies in c ooperation with the respondents continue to create reporting sy stems to transmit data electronically . However, electronic reporting s ys tems are still not widely used. At this time, it is estimated th at approximately 10 percent of the respon dents 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 and9 **Respondent Activities** sy stems for the purpose of collecting, validating, and verifying information. Develop, acquire, install, and utilize technology and sy stems for the purpose of processing and maintaining information. Develop, acquire, install, and utilize technology and sy stems for the purpose of disclosing and providing info rmation. Adjust the existing way s to comply with an y 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 s ys tem). Although personnel at the source still need to evaluate the data, this type of monitoring equipment has significantl y reduced the b urden 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, analy sis, 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, anal yz e, and maintain data in the Online Tracking Information Sy stem (OTI S). 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 p roperl y installed and operated.10

Performance test reports are used b y the Agency to dis cern a source ’ s initial capability to compl y with the emission standard s
. 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.
In formation contained in the reports will be required to be submitted electronically to EPA’s Central DATA Exchange (CDX) using the Electronic Repo rting 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 In formation 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 lo oking for a way to reduce burden from reporting requirements.
In formation contained in the reports is entered into OTI S which is operated and maintained by

EPA's Office of Compliance. OT IS 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 OTI S for tracking air pollution compliance and enforcement b y local and state regulatory agencies, EPA regional offices and EPA headquarters. EPA and it s delegated a

uthorities can edit, store, retrieve and anal yz e the data. The records required b y this regulation must be retained by the owner/operator for five ye ars. **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 ty pes of control equi pment 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 entitie s. 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 belo w Table 1: Annual Respondent Burden and Cost

– NESHAP for Oil and Natural Gas Production (40 CFR Part 63, Subpart HH) (Renewal).11

**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 I CR. The individual burdens are expressed under standardized headings believed to be consistent with the concept of burden under the Paperwork Reduction A ct. Where ver 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 display s 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 requirement s is estimated to be 46 , 642 ( Total Labor Hours fr om Table 1 below ). T hese hours are based on Agency studies and background documents from the development of the regulation, Agency

knowledge and experience with the NESHAP program, the previousl y approved ICR, and an y comments received. **6(b) Estimatin g Respondent Costs**  **(i) Estimating Labor Costs** This I CR uses the following labor rates: Managerial $1 21

. 4 4 ($5 7

. 8 3 + 110%) Technical $ 100

. 23 ($4 7

. 73 + 110%) Clerical $ 50

. 5 1 ($2 4

. 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 b y 110 p ercent to account for the benefit packages available to those employed by private industry

. **(ii) Estimating Capital/Startup and Operation and Maintenance Costs** The ty pe of industry

costs associated with the information collection activ ities 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 su ch as photocop yi ng and postage.12 **(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 , 6 00 $1,020 498 $ 507,960 Monitoring equipment (CMS) b, c $1,015 31 $3 1 , 465 $134 498 $ 66 , 732 Postage cost d NA 0 $0 $7.63 2, 4 87 $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. W e assume that all new major sources and 2 percent of new area so urces 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 2,4 23 responses (repo rts). The total capital/startup costs for this I CR are $ 317,065 . This is the total o f column D in the above table. The total operation and maintenance (O&M) costs for this I CR 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 IC R 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 anal ys is 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 pri or 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 requ est 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 b y 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 $1 21.44 $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 anal ys is of the reported information. EPA's overall compliance and enforcement program i ncludes 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 year s of the ICR is estimated to be $ 244,404

. This cost is based on the average hourl y labor rate as follows: Managerial $ 6 2.27 (GS

- 13, Step 5, $ 3 8. 92 + 60% ) Technical $ 4 6

. 21 (GS

- 12, Step 1, $ 28. 88 + 60% ) Clerical $2 5.01 (GS

- 6, Step 3, $ 15. 63 + 60% ) These rates are from the Office of Personnel Management (OPM) , 20 1 2 General Schedule , which excludes locality , rates of pay

. The rates have been increased b y 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 I CR, on average over the next three ye ars, approximately 3,566 existing respondents will be subject to the standard. It is estimated that an additional 169 respondents per ye ar will become subject ; this estimate includes 2 8 major sources, 3 area sources, and 138 area sources that onl y 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 number14

of area source respondent was derived from information in EPA I CR number 1788.09. The number of respondents is calculated using the following table that addresses the three ye ars covered b y this ICR.
**Number of Respondents**

Year (A)

Number of Ne w Respondents 1 & 2 (B) Number of Existing Respondents 3 (C)

Number of Existing Respondents that k eep r ecords b ut d o n ot s ubmit r eports 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 2 8 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 2 8 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. C olumn 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 ye ar 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 2 8 1 0 2 8 Notification of actual startup 2 8 1 0 2 815 **Total Annual Responses** Notification of date of CMS performance evaluation 2 8 1 0 2 8 Notification of date of performance test 2 8 1 0 2 8 Notification of compliance status report 2 8 1 0 2 8 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 $ 4,52 0 ,9 05

. 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, respectivel y, and summarized below. **(i) Respondent Tally** The total annual labor hours are 46, 642 at a cost of $ 4,52 0 , 905

. Detai ls 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 I CR combines the requirements from the existing regulations and the 2012 amendment , wh ich are EPA I CR Number s 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 m ajor sources. The amendment did not affect the number of area sources. Several changes were made to this I CR: 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. The se changes result in an overall decrease in the labor hours and costs and an increase in the tota l capital and O&M costs as currently

identified in the O MB Inventory of Approved Burdens. The current OMB Inventory adds the burden s from EPA I CR Number 1788.09 and 2440.02, thus double

- counting the burden associated with several requirements. This ICR h as been updated to remove an y duplicates and to reflect the revised standard correctl y . The EPA estimate for the required notification, reports and records, including the root cause anal ys is, 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 pro duce 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 us ing this frequency because among the number of excess emission events reported b y source operators, onl y a small number would be expected to result from a malfunction, and onl y a subset of excess emissions caused b y malfunctions would result in the source choosing to assert affirmative defense. W e 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 b y persons to generate, maintain, retain, or disc lose or provide information to or for a Federal agency. This includes the time needed to review instructions; develop, acquire, install, and utilize technology and s ys tems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to compl y 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 responde nt burden, including the use of automated collection techniques, EPA has established a public docket for this I CR under Docket ID Number EPA

- HQ

- OECA

- 2012

- 0669

. An electronic version of the public docket is available at http://www.regulations.gov/ , which m ay 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 s ys tem , 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 holiday s. The telephone number for the Reading Room is (202) 566

- 1744, and the telepho ne number for the docket center i s (202) 566

- 17 52

. Also, you can send comments to the Office of In formation and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, DC 20503, Attention: Desk Officer for EPA. Please includ e 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**

**person**   ** hours per** **year (E=CxD)**  **Managem ent** 

**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 c 4 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 c 8 1 8 169 1,352 67.6 135.2 $150,549.26 e. Affirmative defense d 18 1 18 13 234 156 0 $4 2 , 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 c 2 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 c 2 1 2 28 56 2.8 5.6 $6,235.77 v. Notification of compliance status report c 4 1 4 28 112 5.6 11.2 $12,471.54 vi. Startup, shutdown, malfunction reports e 2 2 4 498 1,992 99.6 199.2 $221,815.18 vii. Semiannual periodic report e 2 2 4 498 1,992 99.6 199.2 $221,815.18 Area sources i. Notification of intent to construct c 2 1 2 3 6 0.3 0.6 $668.1219

ii. Notification of actual startup date c 1 1 1 3 3 0.15 0.3 $334.06 iii. Notification of intent to conduct performance test c, f 2 1 2 16 32 1.6 3.2 $3,563.30 iv. Notification of date of CMS performance evaluation c, f 2 1 2 16 32 1.6 3.2 $3,563.30 v. Notification of compliance status 10 1 10 16 160 8 16 $17,816.48 vi. First periodic report g 4 1 4 3 12 0.6 1.2 $1,336.24 vii. Subsequent periodic reports g 2 1 2 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 8,4**  **00 $81**  **7 ,**  **972 .**  **11** 4 Recordkeeping requirements a. Read instructions

- Major source i 4 1 4 28 112 5.6 11.2 $12,471.54

- Area source i 4 1 4 141 564 28.2 56.4 $62,803.09 b. Plan activities

- Major source 16 1 16 28 448 22.4 44.8 $49,886.14

- Area source i. Sources required to operate add

- on controls j 16 1 16 69 1,104 55.2 110.4 $122,933.71 ii. Sources required to implement MP k 4 1 4 138 552 27.6 55.2 $61,466.86 c. Implement activities

- Major source N/A

- Area source i. Performance test l 35 1 35 9 315 15.75 31.5 $35,076.20 ii. Design analysis l 12 1 12 61 732 36.6 73.2 $81,510.40 iii. Control equipment leak monitoring j 3 2 6 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 source20

i. Control equipment c 8 1 8 28 224 11.2 22.4 $24,943.07 ii. Equipment inspection and monitoringn 13 1 13 498 6,474 323.7 647.4 $720,899.32

- Area source i. Startup, shutdown, malfunction plan l 20 1 20 25 500 25 50 $55,676.50 ii. Control equipment l 8 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 , q 1 2 2 69 138 6.9 13.8 $15,366.71 ii. CMS measurements j 1 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 , s 20 1 20 69 1,380 69 138 $153,667.14 h. Retain records of emission t 1 1 1 3,141 3,141 157.05 314.1 $349,759.77 i. Retrieve records/reports j, u 20 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 $4,52**  **0 ,**  **905**

**Assu mptions:**  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: $1 21

. 44 per hour for Executive, Administrative, and Managerial labor; $ 100

. 2 3 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, by21

occupational and industry group. The rates are from c olumn 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 sourc es, 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 o f affirmative defense over a 3 year period across all sources in the category, or a frequency of 13 instances per year. We es timate 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 SS M 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 thi s 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) wi ll 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**  **person**   ** hours per** **occurrence No. of** 

**occurrences per plant**  **per year EPA person** 
****

**hours per plant per**  **year Plants** 

**per year a**  **Technical**

**person**   ** hours per** **year Managem**  **ent**

**person**   ** hours per** **year Clerical** 

**person**   ** hours per** **year Cost, $**  **b**

**(C=AxB) (E=CxD)**  **(Ex0.05) (Ex0.1)**  **Major source** Initial notification c 2 1 2 28 56 2.8 5.6 $2,902.17 Preconstruction review application c 4 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 c 4 1 4 28 112 5.6 11.2 $5,804.34 Startup, shutdown, malfunction reports d 2 2 4 498 1,992 99.6 199.2 $103,234.40 Semiannual periodic reports e 2 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 f 2 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 g 2 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**
**Assu mptions:**  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 that23

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 w hich incorporates a 1.6 benefi ts 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) 20 12 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.