### ""'" 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 ofthe Fort Berthold Indian Reservation (FBIR) in North Dakota. The EPA's Dction would require owners and operators ofoil and gas well production facilities to reduce VOCs released during the extraction and storage ofhydrocarbon reservoir fluids prior to being transferred offsite for sale or treatment. As part ofour 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 ofIhe 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 ofthe following**t~ IX'~**  of control c.:quipment:

### a. A pit Flare capable ofachieving 90% VOC 

### destruction efficiency: b. A utility nare that is manufacturercenified for 98% VOC 

### destruction efficiency orcompliant with the requirements for such flares at 40 CFR 60.l8(b); c. An enclosed combustorthat is manufacturercenified 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 ofa 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 ofa pilot name: and f. 

### A \aporrecover) 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 ofcost 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. Ihe 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. COStelements for each type ofcontrol equipment should not overlap to avoid duplicative cost from accumulating. 4. For each piece ofequipment identified in 2(a) through 2(t). please provide the expected life for each component. Any costs associated with maintenance o\'er the lire ofthe unit should be annualiz.ed and included as part ofthe annual 

### O&M costs reponed. 5. Please provide the average cost associated with the sale ofrecoverable product from a VRU. 

### Due to the expedited development ofthe FIP, your prompt cooperation is appreciated. We request that this information be provided to the EPA within 14 calendardays ofreceipt as indicated by the earlierof certified receipt orelectronic 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 ofCertification (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 ofthe 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 ofthe 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 letterarc not subject 10 the Paperwork Reduction Act of 1980. 44 U.S.C. §3501 

### etseq. Ifthe infonnation requested in this letterhas previously been submitted to the EPA. please lei us kno\\. We appreciate your cooperation in this matter. Ifyou have any questions please contact Eric Wortman. or Iny 

### stall: m 

### 303-312-6649. Sincerel).

# ~2~ Air Program

Enclosures

3 

### @prill1edon Rt'{:rdecll'aperAllachment A



### STATEMENT OF CERTIFICATION Icertify under penalty oflaw that' have personally examined and am familiar with the infonnalion submitted in this document and all attachments and that, based 011 

### my inquiry ofthose 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 offine orimprisonment.

Signature

Title

DateAtlachmcnl 

## n
Confidenlial Business Informalion (CBI) Assertion and Subslanliation Requirements 1. Assenion Requirements
You may assen a business confidentiality claim covering all or pan ofthe 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 ofconfidentialit)

. An) document over which yOll make a claim ofconfidentiality 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 ofthe procedures set forth by Section 114(c) ofthe Clean Air Act (the Act), and 40 C.F.R. Part 2. Allegedly confidential portions ofotherwise 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 waiverofthat 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 ofprivac). 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 ofthe 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. ifyou 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. Foreach item or class ofinfonnation that you identify as being subjcct 10 CBI. please answerthe 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 ofa 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 bOlllldby 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 ofthe public could obtain access 10 the information? Is the information ofa kind that you would customarily not release to the public?

e. Has any governmental body made a detcnnination as to the confidentiality ofthe information? If so. please attach a copy ofthe determination. f. Foreach category ofinfonnation 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 ofthose 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 ofthis 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. Jfyou assert that the infonnation is voluntarily submitted information. explain whether and why disclosure ofthe information would tend to lessen the availability to U.S. EPA ofsimilar information in the future. h. Any other issue you deem relevant (including, ifpertinent 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 ofthe Act. 42 U.S.C. § 7414. is not entitled to confidentiallreatment under40 C.F.R. Part 2. "Emission data" means. with reference 10 any source of cmission ofan) substance into the air. Information ncccssary to determine the identity. amount. frequency, concentration. or other characteristics (to the extent related to air quality) ofany emission which has been emitted by the source (or ofany 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 ofoperation ofthe source): and b. A general description ofthe location and/or nature ofthe 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 ofthe device, installation, oroperation 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 ofrefrigerant added to a unit or reclaimed from a unit.



### 2You bear the burden ofsubstantiating yourconfidentiality 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. Ifyou 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 Enforcementand Compliance**Aasura~** (2201 A) EPA300-F..{J30001 May2003


# u. S. EPA Small Business Resources 

# I I you own a small business, the United Slates Environmental Protection Agency (EPA) offers avariety of compliance assistance and tools to assistyou in complying with federal and state environmental laws. These resources can helpyou understandyourenvironmental obligations. Improve compliance and find cost-effectIVe ways tocomply through fhe useof poUulion prevention and other Innovativetochnologles. Hotllnes, Helpllnes and Clearinghouse. EPAsponsors approximately89lree hotlines and clearing. housesthai provide convenientassistance regarding eIlVIronmental requirements. The National Environmental Compliance Assistance Clearinghouse provtdes QUickaccess to compliance assistanco tools, contacts. and planned activities from the U.S. EPA, states. and othercompliance 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-KnowAct (800) 424-9346 National Response center (to reportoil and hazardous substancespills) (800) 424-8BCt2 Toxlcs SUbstlncesand Asbeslos InlMmatlon (2(2)$4-1 d04 sale Onnking Wal0r (800}426-4791 Stratospheric Ozone and Refngerantslnformatlon (800)296-1996 Clean AirTechnok)gycenter (919)541<8Xl Wetlands Helpline (SOO)B32-7S28 EPA Websltes EPAhass8verallnlemetsllesthat provide useful compliance assistance information and matelials forsmall businesses. Ifyou don't have access tothe Internetat yourbusiness. manypublic librariesprovide accessto the Internet at minimal orno 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 partnershipwi1hi'ldustry, universlties. andotherfederal and state agencies, EPAhas estabished national Compliance AssistanceCenten; that provide Internetand assistanceservicestorseveral industrieswith manysmaO businesses. ThetoIowing CompianceAssIstancecenters can be accessedthrough theCenter's gatewayathr,pJI wwwasSIStancecenters.netofbycaftingthephonenumbers belowand attheir**res~\'e** webSll9S Metal Finishing (1-800-AT-NMFAC or wwwnmlrc,o/g) Printing (1-888-USPN EAC Ofwwwpneac,org) Automotive Service and Repair (1 -886-GAN-UNKorwww.ccar-greenlink.org) Agriculture (1-888-663-2155orWWW'.epa.gov/agric:utture) Printed Wiring Board Manufacturing (1-734-995-49'1orwww.pwOO:.org) The ChemlC81lndustry (1-800-6n-6048orwwwchemaDlanceo(9) TheTransportation Industry (1-688-459-0656orWWW'.ltansource.org) The Paints and Coatings Center (1-800-286-63norwww.pailllcernererg) Three newC811ters are underdevelopmentforthe auto salvage sector, lhe construction industry, and U.S. Mexican borderwaste 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 orVISit the Small Business EnVironmental Homepageat hnpJIwww.smaIlbiz-cnviroweb.orgIstate.htmL Compliance Incentives EPAprovidesincentivesforenviroomental compliance. By participating incompliance assistance programs or voluntarilydisclosing and promptlycorrectingVIOlations, businesses maybe eligibletor per'\81tywaiversorreductions. 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 ifan enforcement action hasalready been iniliated. Commenting on Federal Enforcement Actions .nd Compliance Activities The Small Business Aegu!8lcry Enforcement FaIrnessAct (SBAEFA) estab:ishedanombudsman ("SBREFAOmbJds man·\and 10 AegtOnal FllJrness Boards 10 rec8l

..e comments tram smal buSinesseS aboutfederal age"lCycnlorcamenl 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 orannual receipts. defined at13 C.F.A. 121.201: in moS! cases, this means a business with 500 or leweremployees), andwish to commenton lederalenforcement aod compliance activities. call lhe SBREFA Ombudsman's !OIl-free numberaI1-888-AEG-FAIR (1-888- 734-3247). Every small business thaI is lhe subject of an enforcement orcompliance aClion is entItled to comment on the Agency's aClIOOS Without fear 01 retafiatlOr'l EPA employees are prOhibited from USing enlorcemefltor any other means 01 retahatlQfl aga,nst anymember01 me fe9ulated community because the regUlated communITY preVIOUsly commented 00 its aCllVllles
Your Duty to Comply II you receive compliance assistance orSUbmItcommenls 10the SBAEFAOmbudsman or Regional Fairness Boards. you slill have the duty to comply with the law, inthJdlng providing timely responses to EPA Informalion reQuests. administrative orciVil complaints, other enlorccmcnt actions orcornmunlcallons 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 any01 lhe enVIronmental slatuteS II enlorces. IncfuOlng the fight to take emergency remedial oremergency response aetlOr'lswhen 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, rememberthat 10 preserve your nghts, you need10comply witn all rules governingthe enforcementprocess. EPA Is disseminating this Information to you -Mthoutmakinga detMnllJlJOOn thatyourbusinen ororganizationIsasmallbuslnes.s85 definedby**S~tlon** 222 of the Small BusinltSs Regulatory EnforcementFalmeu Act (SBREFA) or related provisions.