Qctober 15 2014 

Memorandum 

Subject: October 15, 2014 Meeting Between QEP Resources, Inc. and U.S. 

Environmental Protection Agency (EPA) 

From: 

Outreach 

Chris Stoneman, 

and Information 

Policy Advisor 

Division, 

~ ~ 

Office of Air Quality Planning and Standards (OAQPS) 

To: Docket- EPA-HQ-OAR-2011-0151 

This memorandum to docket provides a brief summary of the main discussion points 

made at the subject meeting during the comment period for the Advance Notice of 

Proposed Rulemaking (ANPR): "Managing Emissions from Oil and Natural Gas 

Production in Indian Country." (79 Federal Register 32502, June 5, 2104) 

Meeting details: 

When: October 15, 20 14; 10:00- 11 :30 a.m. ET 

Where: EPA Offices, RTP, NC 

Participants: Greg Green, EPA, OAQPS 

Laura McKelvey, EPA, OAQPS 

Chris Stoneman, EPA, OAQPS 

Mary Tom Kissell, EPA, OAQPS 

Ron LePlatt, QEP 

Mike Smith, QEP 

Dick Wilson, National Environmental Strategies, Inc. 

During the meeting, QEP provided an overview of several concerns they raised in their 

comments on the ANPR and in a previous meeting with the EPA. They also provided a 

handout, which is attached. The concerns QEP raised are: 

• Post-construction registration; 

• Allowing sources to establish federally enforceable limits for criteria and 

hazardous air pollutants; 

• Coverage and requirements of minor source program; 

• General conformity requirements for nonattainment areas; and 

• Regulation of existing sources. 

The EPA answered basic questions about the content of the ANPR. 

This memorandum will be filed in the docket for the ANPR and will be available for 

public review. 
Post constructionRegistrafion 

Necessary to provide for accurate emission estimates, determination of applicable requirements, and 

identification/sizing of emissions control equipment. Accurate emission estimates require well-specific 

production data and representative gas/liquid analysis data. 

Texas PBR for Oil and Gas Handling and Production Facilities (30 TAC 106.352): In the Barnett Shale, 

Registration is required either 90 days or 180 days after start of operation, depending on level of 

emissions. 

Wyoming site-specific permit program: Deadlines for installation of emissions control equipment and 

permit applications vary based on source, location within state, and type of facility (single well or multiwell pad). Example: 

o Condensate and oil tanks in Concentrated Development Area at single well facility 

o Emissions are based on first 30 days of production and a default decline factor of 0.6 

o Emissions are based on well-specific liquid analysis. Composite analyses data are 

acceptable only if WDEQ-specified requirements are met. 

o Within 60 days of first date of production (FDOP) tanks with emissions greater than 

presumptive BACT threshold are required to be controlled by at least 98%. 

o Application is due within 90 days of FDOP. 

Program should allow sources to establish federally enforceable limits for criteria and hazardous air 

pollutants 

Establishment of federally enforceable limits provides the ability of sources to reduce emissions and 

more effectively comply with NSPS and NESHAPs. Examples: 

CJ Condensate and oil tanks: Colorado's General Permit GP08 applies to tanks with actual 

uncontrolled or controlled VOC emissions equal to or less than 5.9 tpy. The General Permit 

establishes a federally enforceable emission limit. NSPS 0000 does not apply to tanks that are 

registered under GP08. 

" Dehydration units: Wyoming's site-specific permitting program allows federally enforceable 

controls to be considered when evaluating applicability of MACT standards. Dehydration units 

with controlled benzene emissions less than 1.0 tpy are subject only to limited requirements of 

Subpart HH. 

o Texas' PBR for O&G Handling and Production facilities does not require registration for those 

sources outside of the Barnett Shale. However, under the General Requirements of Chapter 106 

-Exemptions from Permitting, an owner or operator may voluntarily certify and register the 

maximum emission rates from facilities permitted by rule in order to establish federallyenforceable allowable emission rates. 
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secure minor status. State streamlined permitting programs treat true minor and synthetic 

minor sources equally. An Indian Country streamlined permitting program that includes 

synthetic minor sources would incentivize operators to voluntarily reduce emissions. 

Coverage and Requirements of Program 

The program should include all emission sources associated with the upstream (exploration and 

production) and midstream (gathering and gas processing) sectors of the industry. Similar to the 

upstream sector, the midstream sector (compressor stations, central gathering facilities, gas plants) 

requires a program that allows flexibility and timely permitting. The upstream and midstream sectors 

include similar emissions sources that are regulated by current NSPS (JJJJ, 0000) and NESHAP (HH, 

ZZZZ). 

Current NSPS and NESHAP for sources at oil and natural gas production facilities include control 

requirements at emission thresholds that in most cases are below uncontrolled emissions from new 

sources. It is recommended that current NSPS and NESHAP serve as a starting point for requirements of 

the program. 

General Conformity Requirements for Nonattainment Areas 

The General Conformity Rule ensures that the actions taken by federal agencies in nonattainment and 

maintenance areas do not cause, contribute, or increase the severity of NAAQS. Such actions include 

the Approval of Application to Drill (APD) and the granting of right-of-ways for oil and gas facilities. Per 

40 CFR 193 (d) a conformity determination is not required for the portion of an action that includes new 

or modified stationary sources that require a permit under the New Source Review program of the CAA. 

Sources that are included in and comply with the streamlined permitting program should be presumed 

to conform~ 

Regulation of Existing Sources 

The ANPR includes the suggestions that existing sources can be regulated through a FIP. USEPA has 

expressed a concern that it may not be able to issue permits for new development in areas with 

impaired air quality without addressing existing sources. Concerning existing sources: 

o New sources are subject to current NSPS and MACT standards that cause emissions to be far 

below existing sources. Allowing sources to voluntarily accept enforceable emissions limits 

below the requirements of those standards will encourage additional reductions. 

o Natural decline in oil and gas production rates at existing wells will cause emissions from those 

facilities will decline. 

o Because ofthe points above, overall emission trends for a given basin will show a decline 

without additional control of existing sources. 

o In order to develop an effective program for regulation of sources in basins with impaired air 

quality USEPA must first have a solid understanding ofthe sources, emissions profiles, and 

emission trends within those basins. 
o Tfii.ThS, US EPA, and operators snoul work t ogether to develOp that understanding for basins 

with impaired air quality. This work should occur outside ofthe streamlined permitting program 

for new sources. 

• After a clear understanding of issues within a basin is developed, additional required actions, 

including the control of existing sources, can be more effectively identified and implemented. 

Such actions will be more effective if operators have the flexibility to identify and implement 

specific opportunities for emissions reductions, as opposed to a rule requiring across-the-board 

reductions at all sources.