""'" NITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION 8

1595 W) nkoop Street

DENVER. CO 80202-1129

Phone 800-227-8917

hnp://ww\\ .epa.govlregion08

MAY 16 2012

Ref: 8P-AR

CERTIFIED MAIL -RETUR RECEIPT REQUESTED & ELECTRONIC MAIL

Daniel R)an

Sr. Environmental Engineer

QEP Energy Company

1050 17" Street, Suite 500

Denver, Colorado 80265

RE: Request for Infomlation Pertaining to Emissions

Control Equipment at Oil and Gas Production Facilities on

the Fon Berthold Indian Reservation

Dcar Mr. Ryan.

.\'!o Oll klHm. Ihl..' I:m ironl1lcnw! Proll'clion Ag.ency (I.:PA) is ('xpcdiling the dl'\ l'lopnh:nl of <t

Rcser"a1ion·!o>pecilic Fedl..'rallmph:mcnt:.ltion Plan (FlP) to e!:>lablish Ii-'derall: CnfOfl:l.'abll..' n:quirl.'Jnl'nt...

to control volatile organic compound (yOe) emissions from oil and gas production aCli\ilics (i.e.

storage tank and heater-treater emissions) within the exterior boundaries of the Fort Berthold Indian

Reservation (FBIR) in North Dakota. The EPA's Dction would require owners and operators of oil and

gas well production facilities to reduce VOCs released during the extraction and storage of hydrocarbon

reservoir fluids prior to being transferred offsite for sale or treatment.

As part of our effort to develop federally enforceable requirements under the FIP for oil and gas

production facilities, the EPA is evaluating vac emission control technologies employed b) operator~

on the FBIR. The agency is requesting infonnation that will allow us to detcnnine the associated COSI

impacts of Ihe proposed emission control requirements.

This infomlation request pertains to QEP Energy Company's (QEP's) operations on the FBIR. Please

submit the infonnation requested below for QEP's oil and gas exploration and production facilities

located on the FBIR:

1. Please provide the average cost incurred to develop a synthetic minor permit application for an

oil and gas exploration and production facility on the FBIR.

2. Please provide the a\ erage cost incurred on an annual basis for each of the following t~ IX'~ of

control c.:quipment:
a. A pit Flare capable of achieving 90% VOC destruction efficiency:

b. A utility nare that is manufacturer cenified for 98% VOC destruction efficiency or compliant

with the requirements for such flares at 40 CFR 60.l8(b);

c. An enclosed combustor that is manufacturer cenified for 98% VOC destruction efficiency;

d. An auto-ignition system that includes, an electronically controlled ignition device.

continuous recording device, malfunction alann, and remote notification system to ensure the

continued presence of a pilot name during operation:

e. A continuous pilot name system that includes a thermocouple. continuous recording device

malfunction alaml. and remote notification system to ensure the continued presence of a pilot

name: and

f. A \ apor recover) system (VRU) for capture and recovery ofstorage tank gases.

3. Please describe the source ofthe data and the methodology used in calculating items 2(a)

through 2(f). The average annual cost incurred should include. but is not limited to. the following

list of cost elements:

a. The total capital investment (TCI) cosl. which includes bUI is nOllimited to. the capital cost

for the primar: control de\ ice. auxiliar) equipment and inslnunentation. piping. perfomlance

testing. associated utilities. engineering and s)stem design. freight. site preparation.

fOlilldation. construction and field expenses. installation. etc.:

h. I he operation and maintcnanee (O&~f) cost (equipment. pilot fuel. etc.):

c. rhe annualized labor costs such as salary and benefits associated with

monitoringlrecordkceping/reponing requirements and O&M activities; and

d. The annualized non-labor costs such as office supplies, vehicle costs, and infonnation

technology.

COSt elements for each type of control equipment should not overlap to avoid duplicative cost from

accumulating.

4. For each piece of equipment identified in 2(a) through 2(t). please provide the expected life for

each component. Any costs associated with maintenance o\'er the lire of the unit should be

annualiz.ed and included as part of the annual O&M costs reponed.

5. Please provide the average cost associated with the sale of recoverable product from a VRU.

Due to the expedited development of the FIP, your prompt cooperation is appreciated. We request that

this information be provided to the EPA within 14 calendar days of receipt as indicated by the earlier of

certified receipt or electronic email for this leller. Electronic submission is preferred. Please submit

your response to Eric Wortman at \\ortman.eric@epa.gov.

We rcqucstlhat a duly authorized officer or agent ofQEP certify as true. accurate. and complete the

response to this infonnation by signing the enclosed Statement of Certification (Attachment A) and

returning it with the response. Such officer or agent must have sufficient knowledge and authorit) to

make such representations on bchalfofQEP.

Pursuant to 40 C.F.R. Pan 2, Subpart B, QEP is entitled to assen a business confidentiality claim

covering any part of the submitted infonnation. Attachment B specifies the assenion and substantiation

requirements for business confidentiality claims. Failure to assert such a claim makes the submitted

2
infonnation subject to public disclosure upon request and without further notice to you, pursuant to the

Freedom oflnfonnation Act, 5 U.S.C. Section 552. (nfoonation subject to a business confidentiality

claim may only be made available to the public in accordance with 40 C.F.R. Part 2, Subpart B.

It is the EPA's understanding that the average emission control device cost data for all ofQEP's

facilities on the FBIR will likely not be entitled to confidential trealment as opposed to specilic cost data

roreach facilily.lf)ou do claim confidentiality. we request that you submit Ihat portion of the respons<..'

(onl~ Ihat specilic portion lor \\hich you an.' claiming. conlidential trcalment) ~cparatd~ from all olher

inlormation.

Also enclosed with this Request lor Information is a Small Business Regulatory EnJorccment and

Fairness Act (SBREFA) infonnation sheel (see Altachment C).

The requirements ofthis letter arc not subject 10 the Paperwork Reduction Act of 1980. 44 U.S.C. §3501

et seq.

If the infonnation requested in this letter has previously been submitted to the EPA. please lei us kno\\.

We appreciate your cooperation in this matter. If you have any questions please contact Eric Wortman.

or Iny stall: m 303-312-6649.

Sincerel).

~2~ Air Program

Enclosures

3

@prill1ed on Rt'{:rdecll'aper
Allachment A

STATEMENT OF CERTIFICATION

I certify under penalty of law that' have personally examined and am familiar with the infonnalion

submitted in this document and all attachments and that, based 011 my inquiry of those individuals

immediately responsible for obtaining information, I believe that the infonnation is true, accurate, and

completc. I am aware that thcre are significant penalties for submitting false information, including the

possibility of fine or imprisonment.

Signature

Title

Date
Atlachmcnl n

Confidenlial Business Informalion (CBI)

Assertion and Subslanliation Requirements

1. Assenion Requirements

You may assen a business confidentiality claim covering all or pan of the information requested in the

attached letter, as provided in 40 C.F.R. §2.203(b). Ifportions ofa document have CBI claims. then

please provide a redacted version that would remove any CSI information. To make a confidentiality

claim, submit the requested infonnation and indicate that you are making a claim of confidentialit) . An)

document over which yOll make a claim of confidentiality should be marked by placing on or attaching

to the information. at the lime it is submitted 10 U,S. EP/\. ,I co\'er sheet, stamped or tYPl.:J Icgl:nJ. or

uthl:r sllitabk rorm ol'noticl.: ,,'mploying lunguagl.: such as "trade sel.:ret" or "proprietary" or "co01l"an)

confidential" und a date irany whcn the intormalioll should no longer be treated as contidcllIial.

Information covered by such a claim will be disclosed by the United Stales Environmental ProICction

Agency (U.S. EPA) only to the extent pernlined und by means of the procedures set forth by Section

114(c) ofthe Clean Air Act (the Act), and 40 C.F.R. Part 2. Allegedly confidential portions of otherwise

non-confidential documents should be clearly identified. U.S. EPA will construe the failure to furnish a

confidentiality claim with your response to the attached letter as a waiver ofthat claim, and the

infonnation may be made available to the public without further notice to you.

Please segregate personncl. medical and similar files from your responses and include that infonnation

011 separate shect(s) marked as "Personal Privacy Infonnation" given that disclosure ofsuch infomlation

to thl.' gl.'nl.'ral public mn~ constitute an invasion of privac).

2. Sub~tantiation Requirements

All confidentiality claims are subject to U.S, EPA verification and must be made in accordance with 40

C.F,R. §2,208 which provides in part that you satisfactorily show that you have taken reasonable

measures to protect the confidentiality of the information and that you intend to continue to do so: and

that the infonnation is not and has not been reasonably obtainable by legitimate means without your

consent.

As explained above. if you assert a CBI claim in responding to Ihe attached letter. please specif) \\hich

ponio!1s oflhe infannation yOll consider conlidcnlial. You must be specitic by (luge, paragmph••tnl!

Sl'ntcnce when idl'ntifying Ihe information subject 10 your claim. Any infonnation not specifically

identified as subject to confidentiality claim may be disclosed 10 the public and a requestor without

funher notice 10 you. For each item or class of infonnation that you identify as being subjcct 10 CBI.

please answer the following questions, giving as much detail as possible:

a. For what period oftime do you request that the infonnation be maintained as confidential, e,g..

until a cenain date, until the occurrence ofa specified event, or pennanently? Ifthe occurrence

of a specific event will create the need for confidentiality. please spccify that event.

b. Infonnation submitted 10 U.S. EPA becomes stale 0\ er time. Wh) should the infi.lrmation yOU

claim as confidential be protected for the time period specified in your ans\\er to qlJestion # I?

C. What mcusurl.'S haw you taken to protCl:t Ihe intonnalion clClimcd as conlidcllIial? 11<1\ L' ) OLJ

disclosed the information to anyone other than a governmental body or somcone who is bOlllld
by an agreement not to disclose the information further? Ifso. why should the information still

be considered confidential?

d. Is the information contained in any publicly available material such as the Internet. publicly

available databases. promotional publications. annual reports. or articles? Is there any means by

which a member of the public could obtain access 10 the information? Is the information of a

kind that you would customarily not release to the public?

e. Has any governmental body made a detcnnination as to the confidentiality of the information? If

so. please attach a copy ofthe determination.

f. For each category of infonnation claimed as confidential. explain with specificity why release of

the information is likely to cause substantial harm to your competitive position. Explain the

specific nature of those hannful effects. why they should be viewed as substantial. and the causal

relationship bel\.\eCn disclosure and such hamlful effects. Ilow could your competitors make use

of this information to your dctriment?

g. Do )OU assert that thc information is submitted on a volulltary or a mandator) basis? 1)lease

explain the reason for your assertion. Jf you assert that the infonnation is voluntarily submitted

information. explain whether and why disclosure of the information would tend to lessen the

availability to U.S. EPA ofsimilar information in the future.

h. Any other issue you deem relevant (including, if pertinent reasons why you believe that the

information you claim to be CSI is not emission or emuent data.)

Please note that emission data. provided under Section 114 of the Act. 42 U.S.C. § 7414. is not entitled

to confidentiallreatment under 40 C.F.R. Part 2. "Emission data" means. with reference 10 any source of

cmission of an) substance into the air.

Information ncccssary to determine the identity. amount. frequency, concentration. or other

characteristics (to the extent related to air quality) of any emission which has been emitted by the source

(or of any pollutant resulting from any emission by the source), or any combination ofthe foregoing;

a. Information necessary to detennine the identity. amount. frequency, concentration, or other

characteristics (to the extent related to air quality) oflhe emissions which, under an applicable

standard or limitation. the source was authorized to emit (including. to the extent necessary for

such purposes. a description ofthe manner and rate of operation ofthe source): and

b. A general description of the location and/or nature of the source to the extcnt nccessar) to

id~lltil) the sourc~ and to distinguish it froll1 other sources (including. to lhc extcnt neccs:-.ary for

such purposes. a description of the device, installation, or operation constituting the source). 40

C.F.R. §§ 2.30 l(a)(2)(i)(A), (6) and (C).

Emission data includes, but is not limited to, service records stating the amount of refrigerant added to a

unit or reclaimed from a unit.

2
You bear the burden ofsubstantiating your confidentiality claim. Conclusory allegations will be given

linle or no weight in the determination. In substantiating your CBl c1aim(s). U.S. EPA requires that you

to bracket all text so claimed and mark it "CBI". Information so designated will be disclosed by U..

EPA only to the extent allowed by. and by means ofthe procedures set forth in. 40 C.F.R. Part 2.

Subpart B. If you fail to claim the information as confidential. it may be made aV'lilablc to the public

without further notice to you.

3
SEPA United States

Environmental Protection

Agency

Atlachment C

Office of Enforcement and Compliance Aasura~(2201 A)

EPA 300-F..{J30001 May 2003

u. S. EPA Small Business Resources

I

I you own a small business, the United Slates Environmental Protection Agency (EPA) offers

a variety of compliance assistance and tools to assist you in complying with federal and state

environmental laws. These resources can help you understand your environmental obligations. Improve

compliance and find cost-effectIVe ways to comply through fhe use of poUulion prevention and other

Innovative tochnologles.

Hotllnes, Helpllnes and

Clearinghouse.

EPAsponsors approximately 89lree hotlines and clearing.

houses thai provide convenient assistance regarding

eIlVIronmental requirements.

The National Environmental Compliance Assistance

Clearinghouse provtdes QUick accessto compliance

assistanco tools, contacts. and planned activities from the

U.S. EPA, states. and other compliance assistance

pr<Mclers: htT+J:JIwww.epa.govfClåhouse

Pollution Prevention Clearlnghouae

http:J'-.epa.govlopphntrllorary/pplcindex.htm

EPA's Small Bu,lness Ombudsman Hotline can

provide a list 01 all the hot lines and assist In determining the holllne best meeting your needs:

(BOO) 3SB·588B

Emergency Planning and Community Right·To-Know Act

(800) 424-9346

National Response center (to report oil and hazardous

substance spills)

(800) 424-8BCt2

Toxlcs SUbstlnces and Asbeslos InlMmatlon

(2(2) $4-1 d04

sale Onnking Wal0r

(800}426-4791

Stratospheric Ozone and Refngerantslnformatlon

(800)296-1996

Clean Air Technok)gy center

(919)541<8Xl

Wetlands Helpline

(SOO)B32-7S28

EPA Websltes

EPA has s8verallnlemet slles that provide useful compliance assistance information and matelials for small

businesses. If you don't have access to the Internet at

your business. many public libraries provide access to the

Internet at minimal or no cost

EPA's Home Page

http;/fwww.epa.gcl'tI

Small Business Assistance Program

hllp;/lwww.epa.gcl'tIlttrVsbap

Office of Enforcement and Compliance Assurance

hllp;/l'Nww.epa gov/compltance

Compliance Asar'tance Home Page

hllp:Jlwww.epa.govJcompllancelassistance

Office of Regulatory Enforcement

http://YJ'oNw.epa.goy/compliance/civillindex.html

Office of Site Remediation Enforcement

hnp:/lwww.epa.gov/complianc&!cleanup

Innovative Programs lor Environmental Performance

hnpltwwwepa gov.'partners

Small Business Ombudsman

www.sba.gov/ombodsman

Olflce of Enforcement and Compliance Assl;rance: http://1.'H'IVlepa gov/compllance

Q ==...........-...._ ......._----
U.S. EPA SMALL BUSINESS RESOURCES

Compliance Assistance Centers

In partnership wi1h i'ldustry, universlties. and otherfederal

and state agencies, EPAhas estabished national Compliance Assistance Centen; that provide Internet and

assistance servicestor several industries with many smaO

businesses. The toIowing Compiance AssIstance centers

can be accessed through the Center's gateway at hr,pJI

wwwasSIStancecenters.netofbycaftingthephonenumbers

below and at their res~\'e webSll9S

Metal Finishing

(1-800-AT-NMFAC or wwwnmlrc,o/g)

Printing

(1-888-USPN EAC Of wwwpneac,org)

Automotive Service and Repair

(1 -886-GAN-UNK or www.ccar-greenlink.org)

Agriculture

(1-888-663-2155 or WWW'.epa.gov/agric:utture)

Printed Wiring Board Manufacturing

(1-734-995-49'1orwww.pwOO:.org)

The ChemlC81lndustry

(1-800-6n-6048 or wwwchemaDlanceo(9)

The Transportation Industry

(1-688-459-0656 or WWW'.ltansource.org)

The Paints and Coatings Center

(1-800-286-63n or www.pailllcernererg)

Three new C811ters are under development for the auto

salvage sector, lhe construction industry, and U.S. Mexican border waste issues.

State Agencies

Many state agencies have established compliance assistance programs lhat provide on·site and othel types 01

assistance COnlecl your local stale erwlfonmentai agency

tor more IntO/mallon, For assistance In reaching stale

agencies, call EPA's Small BUSiness Ombudsman at

(800)-368-5888 or VISit the Small Business EnVironmental

Homepage at hnpJIwww.smaIlbiz-cnviroweb.orgIstate.htmL

Compliance Incentives

EPA provides incentives for enviroomental compliance. By

participating in compliance assistance programs or

voluntarily disclosing and promptly correcting VIOlations,

businesses may be eligible tor per'\81ty waivers or reductions. EPA has two policies that polentialty apply to smail

busrnesses; The Audit POlicy (hltP:Jlwww.epa.govtcompllante/lncentlveS/aud tlng) and the Small Busmess PolICY

(hnpJIWY.wepa gov/compllancelincentNeslsmalibuSiness)

These do not apply if an enforcement action has already

been iniliated.

Commenting on Federal Enforcement

Actions .nd Compliance Activities

The Small Business Aegu!8lcry Enforcement FaIrness Act

(SBAEFA) estab:ished an ombudsman ("SBREFAOmbJds

man·\ and 10 AegtOnal FllJrness Boards 10 rec8l..e comments

tram smal buSinesseS about federal age"lCy cnlorcamenl

aCllOOs The SBREFAOmbudsman WIll annua Iy raleeecn

agency's responsiveness to small buSIr.esseS.1t yeo beheve

thaI you !all within the Small BUSiness Admlnlstra1ton's

dellnitlOl1 01 a small bUSiness (based 00 your NOrlh Amencan

Induslry Class~lCatlon System (NAICS) deSlgnatlOl'1, number

of employees or annual receipts. defined at13 C.F.A.

121.201: in moS! cases, this means a business with 500 or

lewer employees), and wish to comment on lederalenforcement aod compliance activities. call lhe SBREFA

Ombudsman's !OIl-free number aI1-888-AEG-FAIR (1-888-

734-3247).

Every small business thaI is lhe subject of an enforcement

or compliance aClion is entItled to comment on the

Agency's aClIOOS Without fear 01 retafiatlOr'l EPA

employees are prOhibited from USing enlorcemeflt or any

other means 01 retahatlQfl aga,nst any member 01 me

fe9ulated community because the regUlated communITY

preVIOUsly commented 00 its aCllVllles

Your Duty to Comply

II you receive compliance assistance or SUbmIt commenls

10 the SBAEFA Ombudsman or Regional Fairness Boards.

you slill have the duty to comply with the law, inthJdlng

providing timely responses to EPA Informalion reQuests.

administrative or ciVil complaints, other enlorccmcnt

actions or cornmunlcallons The assislance Inlormatlon

and comment processes do not give you any new rights 01

delenses in any enforcement acllOn. These procllsses

also do not i;lNect EPA's obhgatlonlO plotect publiC heal1h

or the environment under any 01 lhe enVIronmental slatuteS

II enlorces. IncfuOlng the fight to take emergency remedial

or emergency response aetlOr'ls when appropriate. Those

deciSions will be based 00 the facls in each Situation. The

SBAEFAOmbudsman and Fairness Boards do not

participate in resolVing EPA's enforcement actions Also,

remember that 10 preserve your nghts, you need 10 comply

witn all rules governing the enforcement process.

EPA Is disseminating this Information to you

-Mthoutmaking a detMnllJlJOOn thatyourbusinen

or organization Is a small buslnes.s 85 defined by

S~tlon 222 of the Small BusinltSs Regulatory

Enforcement Falmeu Act (SBREFA) or related

provisions.