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 of a

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 or the !--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 of hydrocarbon

reservoir fluids prior to being transferred off"site 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 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 of the 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 of achieving 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 combustor that 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 of a pilot flame during operation:

c. A continuous pilot flame system that includes a thermocouple. 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 of the 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 of cost 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-labor costs such as office supplies. vehicle costs. and information

technology.

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

accumulating.

4. ror each piece of equipment identified in 2(3) through 2(1), please provide the cxpected life for

cach component. Any costs associated with maintenance ovcr the life of the unit should be

annualized and included as part or the 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 of the FIP. your prompt cooperation is appreciated. We request that

this infonllation be provided to the EPA within 14 calendar days of receipt 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 officer or agent of Petro·l-!unt certify as true. accurate, and complete

(he response to this information by signing the enclosed Statement ofCertification (Attachment A) and

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

make such representations on behalf of Petro·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 of the submitted inronllation. Attachment B specifies the assertion and substantiation

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

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

Freedom of Infonnation 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. If you do claim confidentiality, we request that yOll submit that portion of the 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 of this lellcr are not subject to the Paperwork Reduction Act of 1980. 44 U.S.C. §3501

el seq.

If the information requested in this letter has previously been submitted to the EPA, please let us know.

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

of my slaff, at 303-312-6649.

Q;?2~ Air Program

Enclosures

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

3

*Primed on ReqdeJ Paper
Attachment A

STATEMENT OF CERTIFICATION

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

submitted in this document and all attachmenls and that, based on my inquiry of those 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 of fine 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). If portions 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 of confidentiality. An)

document over which you make a claim of confidentiality 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 or notict, employing language such as "trade secret" or "proprit'ulr)" or "compan~

confidl:nti~I" and a d:-HC if any 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 of the procedures set forth by Section

114(c) ol'thc Clean Air Act (the Act). and 40 C.F.R. Pan 2. Allegedly confidcntial ponions 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 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 of privacy.

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. if yOll assert a CBI claim in responding to the attached leller. please spccjj'~ \\ hidl

p<mions of the 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. For each item or class of information 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? If the occurrence

of a 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 member ofthe public could obtain access to the information? Is the information of a

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 of the determination.

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

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

spcci fic nature of those 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

of this 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 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 CBI is not emission or effluent data.)

Please note that emission data. provided under Section 114 of Ihe 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) of any emission which has been cmitted by thc source

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

a. Infonnation necessary to determine the identity. amount, frequency, concentration, or other

characteristics (to the extent related to air quality) 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 of the manner and rate of operation of the source): and

b. A general description of the 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. or operation 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 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

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 Enforcement and Compliance Assurance (2201 A)

EPA 3/»F.()3oO()1 MaV 2003

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 help you understand your environmental oblIgations. Improve

compliance and find cost-ellectlVe ways fa comply through the use of pollutIOn preventIOn and other

InnovatIve technologieS.

Hotllnes, Helpllnes and

Clearinghouses

EPAsponsors approximately 89 free hodines and clearinghouses that provide convenlsnt assistance regarding

environmental requirements.

The National Environmental Compliance Assistance

Clearinghouse provides QuiCk access 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-Know Ac1

(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

EPA has several Internet sites that provide useful compliance assistance infomlation and materials for small

businesses. II you cIon't have access to the Internet at

your business, 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

OIlice 01 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 palt08rship with r.dustry, universities, and otherfederal

and slate agencies, EPA has established national Compliance Assistance Centers that provide Internet and "faxback"

assistance SONices for several industries with many small

buSInesses. The foIowing Compliance Assistance Genters

can be accessed through the Center's gateway at hnp:ll

wwwaSSlSlanCecerllers.netOfbycablflQlhepOOnenumbers

belOw Cine! at !heIr rtlspectJve websltes

Metal FiniShing

(1-80().AT-NMFRC 01 www.nmlrcorg)

Printing

(1-888-USPNEACorWNWpneac.org)

AutomotIve service and Repair

(1 .aa&GRN-UNK or www.ccar-greenMnk.org)

AgricUlture

(1~2155orWNW.epa.gov/agricUture)

Printed Wiring Board Manufacturing

(1-734-995-4911 OfWWW.pwtxc.org)

The Chemical Industry

(1·800-672-6048 Of WWWchemaIlJanc8.org)

The Transportation Industry

(1-888459-0656 or www.transource.org)

The Paints and Coatings Center

(1-800-28&6372or www.palntcenter.org)

Three new centers are under development for1he auto

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

Homcpage at http://wvvw,smalibiz-enviroweb.orgIstate,hlml.

Compliance Incentives

EPAprovides Incentives for environmental compliance, By

panicipating in compliance assistance programs or

voluntarily disclosing and promptly COITecting violations,

busr.esses may be eligible lor penalty waivers or reduclions. EPA tlas 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

(hnpJIWWw epa gov/compliance.lncent veslsrnaDbusrosss)

These do nol apply if an enforcement action has already

been initiated,

Commenting on Federal Enforcement

Actions and Compliance Activities

The Small Business Regu atory Enlorcement Fairness Act

tSBAEFA) estab IShed an ombudsman ("SBREFAOmb.Jds·

man", and 10 RegIOnal Fairness Boards 10 receIVe comments

lrum smal buSIneSSeS aOOUlledefal agcrocy ootorcemem

actIOnS The SBREFAOmbudsman WID amua Iy rate eaC'l

ageocy's responSIVeness 105ma!1 buSInesseS. II you beBeve

tnal you lad Wlthrn the Small BUSiness Admnstratlon's

dehmbon 01 a small buSIness (based on your NOrth American

Industry Classmcation System (NAICS) deSlQnatlOO, nlJO'lber

oj employees or annual recerptS. defined at 13C.F.A.

121,201: In most cases, ttus means a buSinesS wtItI 500 or

fewer employees), and wISh to corrvnem on federal enlorcement and compliance aetivrties, call1he SBREFA

Ombudsman'slOG-free number at 1-888-REG-FAIR (1-888-

734-3247).

Every small business that is the subject of an enforcem&rlt

or complIance action IS enlrtted to commem on the

Agency's aCllons withOut lear of retallatlOl'l EPA

employees are prohibited Irom USII'lQ enlorcement or any

other means of relaliatlQf1 aga ns1 any member Of lhe

regulated community because the regulated commUnity

prevlOllsly commented on its actlvitJes

Your Duty to Comply

II you receive compliance assistance or submit comments

to the SBREFAOmbudsman or Regional Fairness Boards,

you stili have the duty 10 comply with the law, InCluding

provldll1g timely responses to EPA In/ormation reQuests,

admlnlSlratlvo or CI"il complall1ts, other enforccment

Actions or 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

or the enVilonment under any 01 lhe enVlronmenlal statutes

11 enlorces, II1cludlng the fight 10 take emergency remedial

or emergency response actionS when appropriate, Those

deciSionS will be based 0fI the tacts in each Situation. The

SBREFA Ombudsman 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

without making a determft1lltion thatyourbusiness

or organlzstlon is II small business liS defined by

SectIon 222 of the Small Business Regulatory

Enforcement Filimess Act (SBREFA) or related

provisions.