### U (TED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 

### 8 1595 Wynkoop Street DENVER. CO 80202-1129 Phone 800-227-8917 http://www.epa.gov/region08



## MAY J 

## 6 2012 Ref: 8P-AR
CERTIFIED MAIL -RETURN RECEIPT REQUESTED & ELECTRONIC MAIL 

### Da\id Clark**S;:II~t)** Ln\**ironmel1t~1 Dir~(;tor**  

### I-'elro-Ilullt. LLC 1601 Elm Street, Suile 3400 Dallas, Texas 75201
RE: Request for Information Pertaining 10 

### Emissions Control Equipment at Oil and Gas Production Facilities on 

### the Fort Berthold Indian Reservation Dear Mr. Clark,
As you kno\\. the Environmental Protection AgcnC) (EPA) is 

### c>l.pcdiling the development ofa**f{"·::'~r\alion·slX'cilic** 

### Ie-dewl hnpktnl'ntation 

### Plan (FIP) to 

### establish lcdcrall) cnforcl.'ubll.:.' requin:ml.'llh 10 

### control \olatik organil,; cmnpound {yael 

### \,.'missions from oil and gas prOdlH.'IIOn <lcti, iii\:::. (i,\"'. storage tank and heater-In:ater emissions) \\ithin 

### tIll: exterior boundaries

# orthe 

### !--ort Berthold Indian Reservation (FBIR) in North Dakota. The EPA's action would require owners and operators oroil and gas well production facilities to reduce

# vacs released during the extraction and storage ofhydrocarbon reservoir fluids prior to being transferred off"site 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 VOC emission control technologies employed by operators on the FBIR. The agency is requesting information that will allow us to determine the associated cost impacts ofthe proposed emission control requirements. rhis inlomultion request pertains to Petro-Hunt"s operations on the FBIR. Please submit the infonnation requested below for Petro-Hunt's oil and gas exploration and production facilities located on the FBIR:
I. 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 average cost incurred on an annual basis for each orthe following types of control equipment:

### a. A pit Flare capable ofachieving 90% VOC destruction efficiency: b. A 

### utility flarc that is manufacturer certified for 98% 

## vac destruction efficiency or compliant with the requirements for such flares at 

### 40 CFR 

### 60.I8(b): e. An enclosed combustorthat is manufacturer certified for 98% VOC destruction efficiency; d. An auto·ignition system that includes, an electronically controlled ignition device. continuous recording device, malfunction alarm, and remote notification system to ensure the continued presence ofapilot flame during operation: c. A 

### continuous pilot flame system that includes athermocouple. continuous recording device malfunction alarm. and remote notification system to ensure the continued presence ofa pilot flame: and f. i\ 

### vapor reco\er) s) stem (VRU) for capture and rcco\er) ofstomgc tan\... gases. 

### J. Please deserihe the source ofthe data and the mcthodology lIsed in calculating items 2(a) through 2(1). The average annual cost incurred should include, but is not limited to, the following list ofcost elements:

a. The total capital investment (TCI) cost. which includes hut is not limited to, the capital cost for the primary control device. auxiliary equipment and instrumentation, piping. performance testing. associated lJIilities, engineering and system design, freight. site preparation. foundation. construction and field expenses, installation, etc.: b. The operation and maintenance (O&M) cost (equipment. pilot fuel. etc.): c. The annualized labor costs such as salary and benefits associated wilh monitoring/recordkeeping/reporting requirements and O&M activities: and d. The annualized non-laborcosts such as office supplies. vehicle costs. and information technology. Cost elements for each type 

### ofcontrol equipment should not overlap to avoid duplicative cost from accumulating. 4. ror each piece ofequipment identified in 2(3) through 2(1), please provide the cxpected life for cach component. Any costs associated with maintenance ovcrthe life ofthe unit should be annualized and included as part 

## orthe annual O&M costs rcporled. 5.**Plea~l.: pr()vid~** **th~ 3\~ragc**  

### cosl associated \\ith the salc ofrcco\crahle prouuct 1"rom a \·RlJ.
Due to the expedited development ofthe FIP. your prompt cooperation is appreciated. We request that this infonllation 

### be provided to the EPA within 14 calendardays ofreceipt as indicated by the earlier of certified receipt or electronic email for this letter. Electronic submission is preferred. Please submit your response to Eric Wortman at wortman.ericuv.epa.gov.
We request that a duly authorized officeror agent ofPetro·l-!unt certify as true. accurate, and complete (he response to this information by signing the enclosed StatementofCertification (Attachment A) and returning it with the response. Such officeror agent must have sufficient knowledge and authority to make such representations on behalfofPetro·llunl.
Pursuant to 40 C.F.R. Part 2, Subpart B. Pelro·llunt is entitled to assert a business confidentiality claim co\cring any part ofthe submitted inronllation. Attachment B specifies the assertion and substantiation requirements for business confidentiality claims. Failure to assert such aelaim makes the submitted 

### 2information subject to public disclosure upon request and without further notice to you, pursuant to the Freedom ofInfonnation Act, 5 U.S.C. Section 552. Information 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 ofPetro-Hunt's facilities on the FBIR will likely not be entitled to confidential treatment as opposed to specific cost data for each facility. Ifyou do claim confidentiality, we request that yOll submit that portion ofthe fl:sponse (only that specitic portion for which you arc claiming confidential treHlment) separatel} 

### from all other inti.mnalion. 1\150**enclos~d** \\ith this Requesl for Information is 

### a Small Business Regulator} Enforcement and Faimess Act (SBREFA) information sheet 

### (sec Attachment C).
The requirements ofthis lellcr are not subject to the Paperwork Reduction Act of 1980. 44 U.S.C. §3501 elseq. Ifthe information requested 

### in this letter has previously been submitted to the EPA, please let us know. We appreciate your cooperation in this matter. 

### IfyOli have any questions please contact Eric Wortman. ofmy slaff, at 

### 303-312-6649.

# Q;?2~ Air Program

Enclosures

l.:L': Doug Ilansun. Dislrict SaICI) Courdinator. PI.'Lro-llullt, l.LC



### 3 

# *

Primedon 

### ReqdeJPaper

### Attachment A



### STATEMENT OF CERTIFICATION
Icertify under penalty oflaw that Ihave personally examined and am familiar with the information submitted in this document and all attachmenls and that, based on my inquiry ofthose individuals immediately responsible for obtaining infonnation. I 

### believe lhat the information is true, accurate, and complete. I 

### am aware that there are significant penalties for submitting false infonnation, including the possibility offine or imprisonment.

Signature

Title

Date

### Attachment B Confidenthll Business Information (CBI) Assertion and Substanthttion Requirements I. Assertion Requirements
You may assert a business confidentiality claim covering all or part orthe information requested in the attached letter, as provided in 40 C.F.R. §2.203(b). Ifportions ofa document have CI3I claims. then please provide a redacted version that would remove any CBI infonnation. To make a confidentiality claim. submit the requested infonnation and indicate that you are making a claim ofconfidentiality. An) document over which you make a claim ofconfidentiality should be marked by placing on or attaching to the infonnation. at the time it is submitted to U.S. EPA. a cover sheet. stamped or typed legend. or other suitable form ornotict, employing language such as "trade secret" or "proprit'ulr)" or**"compan~ confidl:nti~I"**  and a d:-HC ifany when the inlurm<ltion should no longer be treated as conlidcntial. Information covcn:d by such a claim will be disclosed by the United States Environmcntal Protection Agency (U.S. EPA) only to the extent permiltcd and by means ofthe procedures set forth by Section 

### 114(c) ol'thc Clean Air Act (the Act). and 40 C.F.R. Pan 2. Allegedly confidcntial ponions 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 personnel, medical and similar files from your responses and include that infonnation on separate sheet(s) marked as "Personal Privacy Information" given that disclosure ofsuch information to the general public may constitute an invasion ofprivacy.
2.**Sub~tantiation** Requirements
All confidentiality claims are subject to U.S. EPA verification and musl 

### be made in accordance with-l-O C.F.R. §2.208 which provides in part Ihat 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 information is not and has not been reasonably obtainable by legitimate means without your consent.
As explained above. ifyOll assert a CBI claim in responding to the attached leller. please**spccjj'~** \\hidl p<mions ofthe information you consider confidential. You must be sllecifil' by**p<l~e,** pantgn1llh, and**~l'n(elH'l'** \\hen idenlif)'jng the information subject to your claim. Any inlonnmion not**specificall~** identilied as subject to confidenlialil) claim may be disclosed to the public and a requestor \\ithout further notice to you. Foreach item or class ofinformation Ihat you identify as being subject to 

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

a. For what period oftime do you request lhat the information be maintained as confidential, e.g., until a certain date, until the occurrence ofa specified event, or permanently? Ifthe occurrence ofa specific event will create the need for confidentiality, please specify that event.
b. Information submitted to U.S. EPA becomes stale over time. Wh) should the infomlation )Oll claim as confidential be protected for the time period specified in your ans\\cr to qUl.'slion Ifl'!

c. What mea!sun:.:. haw yOll lal..(·n to protect lhe information c1ail11(·J as cunlidCnlial'! 

### 11a\

...· Oll disclosed the informatiun to <lnyon", other than <I govl:l'llmcnlal body or S01111.:011C \\ho is hOlmd

### 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 b) \\hich a memberofthe public could obtain access to the information? Is the information ofa kind that you would customarily not release to the public?

e. Has any governmental body made a determination as to the confidentiality ofthe information? If so. please attach a copy ofthe determination. f. For each category ofinformation claimed as confidential, explain with specificity why release of the information is likely to cause substantial harm to your competitive position. Explain the spccific nature ofthose harmful effects. why they should be viewed as substantial. and the causal relationship between disclosure and such harmful effects. 110\\1 could your compctitors make use ofthis infonnntiotl to yOUT detriment?
g. Do**~ou** 

### assert that Lhe infonllatioll is submitted on a \oluntary or a mandatory basis? Please explain the reason for your assertion. !fyou assert that the information is voluntarily submitted information, explain whether and why disclosure ofthe information would tend to lessen the availability to U.S. EPA ofsimilarinformation in the future. h. Any other issue you deem relevant (including. ifpertinent reasons why you believe that the information you claim to be CBI is not emission or effluent data.) Please note that emission data. provided under Section 114 ofIhe Act. 42 U.S.C. § 7414. is not entitled 10 

### conlidentialtreatmcnt under 40 C.F.R. P<lrt 2. "Emission data" means. with reference to any source of emission of**3l1~** 

### substance into the air. lnll.lrmation neecssary to determine the idcntity, amount. frequency, concentration, or other characteristics (to the extelll related to air quality) ofany emission which has been cmitted by thc source (or ofany pollutant resulting from any emission by the source), or any combination ofthe foregoing;

a. Infonnation necessary to determine the identity. amount, frequency, concentration, or other characteristics (to the extent related to airquality) ofthe emissions which, under an applicable standard or limitation. the source was authorized to emit (including. to the extent necessary for such purposes. <l description ofthe manner and rate ofoperation ofthe source): and b. A general description ofthe location and/or nature ofthe source 10 the extent necessar) 10**idcntif~** 

### the source and to distinguish it from other sources (including. to the extent**necessar~** 

### for such purposes. a description ofthe device. installation. oroperation constituting the source). 40 

### C.F.R. §§ 

### 2.30 l(a)(2)(i)(A), (8) and (C). Emission data includes, but is not limited to, service records stating the amount ofrefrigerant added to a unit orreclaimed from a unit.



### 2You bear the burden ofsubstantiating yourconfidentiality claim. Conclusory allegations will be given little or no weight in the detennination. In substantiating your CBI c1aim(s), U.S. EPA requires that you to bracket all text so claimed and mark it "CBI". Infonnation so designated will be disclosed by U.S. EPA only to the extent allowed by, and by means ofthe procedures set forth in. 40 C.F.R. Part 2. Subpart B. Ifyoll fail to claim the infonnation as confidential. it may be made available to the public \\ithollt further notice to you.



### 3

# SEPA United StBtltS Environmental Protection Agency Atlachmenl C

OffIce of Enforcementand Compliance Assurance (2201 A) EPA3/»F.()3oO()1 MaV2003


# u. S. EPA Small Business Resources 

# I f you own a small business, the United States Environmental Protection Agency (EPA) oHers a variety of compliance assistance and tools to assist you In complying with federal and slate environmental laws These resources can helpyou understandyourenvironmental oblIgations. Improve compliance and find cost-ellectlVe ways fa comply through the use of pollutIOn preventIOn and other InnovatIvetechnologieS. Hotllnes, Helpllnes and Clearinghouses EPAsponsors approximately89 free hodines and clearinghousesthat provide convenlsntassistance regarding environmental requirements. The National Environmental Compliance Assistance Clearinghouse provides QuiCkaccess to compliance aaslslance tools, contacts. and plAnned activities ftom the U.S. EPA, states. and other compliance assistance proYlClers: httpJIwww.epa.govldeannghouse Pollutlon Prevention Clearinghouse rntp:llwww.epa.gov/opptlnlrllibraryJpptcindex.htm EPA's Small BUllne

.. Ombudlman Hotline can provide a list 01 all the hot lines and assist in determining the holllne besl meeting your needs: (800) 368-5888 Emergency Planning and Community Right-To-KnowAc1 (800) 424-9346 Netional Response Center (to raportoll and hazardous substance spills) (800)424-8802 TOlCics SUbstances and Asbestos Information (202)554-'4()4 Safe Onnking Water (800)426-4791 Stratospheric Ozone and RefrigaranUi information (800)296-'996 Clean AIr Technology Center (919)541.QBOO WeUands Helpline 1000)832-_ EPA Websltes EPAhasseveral Internetsitesthat provide useful compliance assistance infomlation and materialsforsmall businesses. II you cIon't have accessto the Internetat yourbusiness, many public libraries provkle access to the Internet at minimal or no cosl. EPA's Home Page hllP:liwv.w.epa.gov SmatlBusinesl Assistance Program nttp:lIwww.&pa.gov1ltnlsb9p Office of Enlorcement and Compliance Assurance ht1f):Itwww.epa.gov/aJmPIianoe Compliance AssIstance Home Page http://www.epe..gov/complianc&lassistallOll OIlice01 Regulatory Enforcement hllp:/lwww.epa.gov/compHatlcelciviVInoex.html Office 01 Site Remediation Enforcement hnp:flwww.epa.gov/compliancatcleanup Innovlltivf! Programs lor Environmenlal Performllnce http/Mwwepa gov/partners Small Business Ombudsmen WWN.sba.gov/ombudsman

Offtee 01 Enlorcement and Comphance Assurance. hltp;/lwwv/.epa.govfcompliance**e.:~** 

# ...."'04'II00y0"

.

_ Soo/Co 

# _OII

oI

_

### u.s. EPA SMALL BUSINESS RESOURCES
Compliance Assistance Centers In palt08rshipwith r.dustry, universities, andotherfederal and slate agencies, EPAhasestablished national ComplianceAssistanceCentersthat provide Internetand"faxback" assistanceSONicesforseveral industrieswith manysmall buSInesses. ThefoIowing Compliance Assistance Genters can be accessed through the Center'sgatewayat hnp:ll wwwaSSlSlanCecerllers.netOfbycablflQlhepOOnenumbers belOwCine! at !heIr rtlspectJvewebsltes Metal FiniShing (1-80().AT-NMFRC01 www.nmlrcorg) Printing (1-888-USPNEACorWNWpneac.org) AutomotIve service and Repair (1 .aa&GRN-UNKorwww.ccar-greenMnk.org) AgricUlture**(1~2155orWNW.epa.gov/agricUture)** Printed Wiring Board Manufacturing (1-734-995-4911 OfWWW.pwtxc.org) The Chemical Industry (1·800-672-6048OfWWWchemaIlJanc8.org) The Transportation Industry (1-888459-0656orwww.transource.org) The Paints and Coatings Center (1-800-28&6372orwww.palntcenter.org) Three newcenters are underdevelopment for1he auto salvage sector, the construction industry, and U.S. Mexican borderwaste issues, State Agencies Many state agencies have established compliance assls, lance programs lhal prOVide on-Slle and other lypes 01 assistance Comact your local state environmental agency fOf more Information. For assistance In reachIng stale agenCies. call EPA's Small Business Ombudsman at (800)-368-5888 or"Isit the Small Business Environmental Homcpageat http://wvvw,smalibiz-enviroweb.orgIstate,hlml. Compliance Incentives EPAprovides Incentivesforenvironmental compliance, By panicipating in compliance assistance programsor voluntarilydisclosing and promptly COITectingviolations, busr.esses maybeeligible lorpenaltywaiversorreduclions. EPAtlas two policies thai potentially apply 10 small bUSinesses TheAudJl Policy (http://www.epa.go,,/compll' ance/lncent ves/aud lIng) and the Small BUSiness Policy (hnpJIWWwepa gov/compliance.lncentveslsrnaDbusrosss) These donol apply ifan enforcement action has already been initiated, Commenting on Federal Enforcement Actions and Compliance Activities The Small Business Regu atoryEnlorcement FairnessAct tSBAEFA) estab IShed an ombudsman ("SBREFAOmb.Jds· man", and 10 RegIOnal Fairness Boards 10receIVe comments lrumsmal buSIneSSeSaOOUlledefalagcrocy ootorcemem actIOnS The SBREFAOmbudsman WID amua Iy rate eaC'l ageocy's responSIVeness 105ma!1 buSInesseS. IIyou beBeve tnal you lad Wlthrn the Small BUSinessAdmnstratlon's dehmbon 01 a small buSIness(basedon your NOrth American IndustryClassmcation System (NAICS) deSlQnatlOO, nlJO'lber oj employees orannual recerptS. defined at 13C.F.A. 121,201: In mostcases, ttus means a buSinesS wtItI 500or feweremployees), andwIShto corrvnemonfederal enlorcementand compliance aetivrties, call1he SBREFA Ombudsman'slOG-freenumberat 1-888-REG-FAIR (1-888- 734-3247). Every small business that is the subjectofan enforcem&rlt or complIance action IS enlrtted tocommem on the Agency's aCllons withOut lear of retallatlOl'l EPA employees are prohibited Irom USII'lQ enlorcementor any other means of relaliatlQf1 aga ns1 any memberOf lhe regulated communitybecause the regulated commUnity prevlOllslycommented on itsactlvitJes
Your Duty to Comply II you receive compliance assistance or submitcomments to the SBREFAOmbudsman or Regional Fairness Boards, you stili have the duty 10 comply with the law, InCluding provldll1g timely responses to EPAIn/ormation reQuests, admlnlSlratlvoorCI"il complall1ts, otherenforccment Actionsor communications The aSSISlance Il)!ormatlon and comment processes do not give you any new ngll1S or defenses in any enforcement aCl10n These processes also do nol aHect EPAs obligation 10 proleCl publiC heallh orthe enVilonment under any 01 lheenVlronmenlal statutes 11 enlorces, II1cludlng the fight 10take emergency remedial oremergency response actionSwhen appropriate, Those deciSionS will be based 0fI the tacts in each Situation. The SBREFAOmbudsman and Fairness Boards do not palticipale In resolVing EPA's enforcement actions. Also, remember lhat to preserve )lour nghts, you need to comply witn all rules governing ttle enforcemenl process. EPA Is dfssemlmJtfng thlll Information to you withoutmakingadetermft1lltion thatyourbusiness ororganlzstlonis IIsmallbusiness liS definedby SectIon 222 of the Small Business Regulatory Enforcement Filimess Act (SBREFA) orrelated provisions.