SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

Approval and Promulgation of Federal Implementation Plan for Oil and Natural Gas Well Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, and Arikara Nation),

North Dakota (Renewal)

Part A of the Supporting Statement

1. Identification of the Information Collection

(a) Title and Number of the Information Collection.

Federal Implementation Plan for Oil and Natural Gas Well Production Facilities; Fort Berthold

Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North Dakota (Renewal)

EPA tracking number 2478.02

, OMB Control Number 2008

- 0001

. (b) Short Characterization.

This ICR covers information collection requirements in the final Federal Implementation Plan

(FIP) for Oil and Natural Gas Well Production Facilities ; Fort Berthold Indian Reservation (Mandan,

Hidatsa, and Arikara Nation) , North Dakota ( 4 0 CFR P art 49 , S ubpart K, §§ 49. 4161 through 49. 4168 )

,

herein referred to as the Fort Berthold Indian Reservation Federal Implementation Plan ( FBIR FIP )

. The

information collected will be used by the EPA and delegated tribal agencies to determine the compliance

status of sources subject to the rule.

On March 22, 2013 ( 78 FR 17858 ), the EPA promulgated a final FIP for oil and natural gas well

production sources operating on the FBIR which addressed volatile organic compound ( VOC ) emissions

from well completions, recompletions, and production and storage operations. The standards in the

FBIR FIP apply to any person who owns or operates an existing (constructed or modified on or after

August 12, 2007), new, or modified oil and natural gas production fa cility that is located on the FBIR

and producing from the Bakken Pool 1 with one or more oil and natural gas wells, any one of which a

well completion or recompletion operation is/was initiated on or after August 12, 2007.

The potential respondents are ow ners or operators of oil and natural gas production facilities

found throughout the FBIR. For the purposes of the FBIR FIP, an oil and natural gas production facility

consists of all the air pollution emitting units and activities located on or integrally connected to one or

more oil and natural gas wells that are necessary for production operations and storage operations

. An

oil and natural gas well is a single well that extracts subsurface reservoir fluids containing a mixture of

1 The Bakken Pool is defined as a compilation of crude oil formations consisting of Bakken, S p anish and Three Forks

formations.2 oil, natural gas, and w ater. A well completion or recompletion means the process that allows for the

flowback of oil and natural gas from newly drilled or re

- fractured wells to expel drilling and reservoir

fluids and tests the reservoir flow characteristics, which may vent produced hydrocarbons to the

atmosphere via an open pit or tank. A well completion or recompletion operation means any oil and

natural gas well completion with hydraulic fracturing occurring at an oil and natural gas production

facility. The completion d ate is considered the date that construction at an oil and natural gas production

facility has commenced. The recompletion date is considered the date that a modification has occurred

at an oil and natural gas production facility.

In general, o wners or operators are required to maintain records of all oil and natural gas well

completions and recompletions, required monitoring, and rule compliance. The FBIR FIP also requires

annual reports containing information for each oil and natural gas production f acility, including a

summary of all required records identifying each oil and natural gas well completion or recompletion

conducted during the reporting period, and a summary of all instances where construction or operation

was not performed in compliance with the requirements of the FBIR FIP during the reporting period.

These reports and records are esse ntial in determining compliance and are required of all sources subject

to the FBIR FIP

. The Office of Management and Budget (OMB) approved the currently active ICR without any

“Terms of Clearance.”

2. Need For and Use of the Collection

(a) Need/Authority for the Collection

. The EPA is charged under Sections 301(a) and 301(d)(4) of the Clean Air Act (CAA) to

promulgate regulations as necessary to protect tribal air resources. P romulgating the FBIR FIP

addresses an important initial step to fill a regulatory gap between state and federal requirements with

regard to controlling volatile organic compound ( VOC ) emissions from oil and natural gas production

o perations on the FBIR. There is no other federal rule, including the recently finalized New Source

Performance Standards ( NSPS ) and National Emissions Standards for Hazardous Air Pollutants

( NESHAP ) for the Oil and N atural Gas Sector (NSPS OOOO and NESHAP HH) 2 , that establishes air

pollution control regulations for the particular oil and natural gas production operations that exist on the

FBIR. This is in contrast to oil and natural gas operations off the Reservation, which are governed by

the North Dakot a Department of Health ( NDDoH ) regulations and North Dakota Industrial

Commissions ( NDIC ) regulations within the State of North Dakota’s jurisdiction . Consistent with the

2 “Oil and Natural Gas Sector: New Source Performance Standar ds and N ational Emission Standards for Hazardous Air Pollutants Review, Final Rule” Federal Register 77:159 (16 August 2012) p. 49490.3 regulatory structure that exists off th e FBIR, and NSPS OOOO, the FBIR FIP has requirements for VOC

emissions control and reductions, monitoring, recordkeeping

, and reporting.

In addition, section 114(a) states that the Administrator may require any owner or operator

subject to any requirement of this Act to:

• e stablish and maintain such records;

• make such reports; install, use, and mai ntain such monitoring

equipment;

• and use such audit procedures, or methods;

• sample such emissions (in accordance with such procedures or

methods, at such locations, at such inter vals, during such periods,

and in such manner as the Administrator shall prescribe);

• keep records on control equipment parameters, production

variables or other indirect data when direct monitoring of

emissions is impractical;

• submit compliance certifica tions in accordance with Section

114(a)(3); and

• provide such other information as the Administrator may

reasonably require.

(b) Use/Users of the Data.

These records and reports are necessary for the EPA Administrator (or the tribal agency if

delegated) to : (1) confirm compliance status of stationary sources; (2) identify any stationary sources

not subject to the requirements and identify stationary sources subject to the regulations; and (3) ensure

that the stationary source control requirements are being achieved. The information would be used by

the EPA or tribal e nforcement personnel to: (1) i dentify stationary sources subject to the rules; (2)

ensure that appropriate control technology is being properly applied; and (3) ensure that the emission

control devices are being properly operated and maintained on a continuous basis. Based on the

reported information, the EPA Administrator (or the delegated tribe) can decide which stationary

sources, records or processes should be inspected.

3. Nondupli cation, Consultations, and Other Collection Criteria

(a) Nonduplicatio n.

The EPA does not anticipate a significant additional burden on the respondents due to potentially

duplicative recordkeeping or reporting requirements. Because the FBIR FIP applies to sources located4 in Indian country, other federal agencies may also have jurisdiction on the FBIR. The EPA reviewed

other federal regulations and discussed potentially applicable requirements to the respondents with staff

from other federal entities to de termine if and when the possible duplication of information collection

exists. The EPA has identified potentially minor duplicative recordkeeping and reporting requirements

with other federal regulations; however, we have determined that some sources may not be subject to the

duplicative requirement or the duplication does not result in a significant burden to the respondents.

T he U.S. Department of Interior (DOI) h as established regulations that may apply to the

respondents of the FBIR FIP. DOI jurisdiction differs from the EPA’s jurisdiction under the CAA in

that t he applicability of DOI regulations is dependent on the lease status of the land where the facility is

located . While DOI re gulations do apply to a large majority of the respondents, oil and natural gas

production facilities on the FBIR that are not operating on a federal or Indian oil and natural gas lease

are not subject to DOI regulations

. Therefore, certain requirements of the FBIR FIP are only potentially

duplicative as DOI regul ations may not apply to all sources subject to the FBIR FIP.

T he FBIR FIP at § 49.4166(a) requires owners and operators to measure the barrels of oil

produced according to the methods specified in the Bureau of Land Management (BLM) Onshore Order

#4

, which also specifies that records of this measurement be kept for six years. 3 This information is

reported on a monthly basis to the Office of Natural Resources Review (ONRR ) through Form

OGAR

- A. 4

, 5 T he FBIR FIP also requires recordkeeping of the barre ls of oil produced (see

§ 49.4167(a)(1 ) )

. Additionally, the FIP requires owners and operators to keep records of the volume of

produced natural gas sent to the control device (see § 49.4167(a)(2)), which is reported to the ONRR on

a monthly basis through Form OGAR

- B

. 6 Although the FBIR FIP requires similar recordkeeping, the

information collected is not required to be submitted in the annual report. This information would also

be necessary to be kept by the respondents as standard industry pract ice regardless of the FBIR FIP in

order to determine applicability to federal CAA permitting requirements. Therefore, these potentially

duplicative recordkeeping requirements do not impose any additional burden on the respondents and are

not included as p art of this ICR

. The FBIR FIP requires owners and operators of oil and natural gas production facilities to submit

an annual report each year (see § 49.4168(b)). As part of the annual report, the respondents are required

to provide information about the date, time, duration and location of well completion and recompletion

3 US Department of the Interior’s Bureau of Land Management at 43 CFR part 3160, in the “ Onshore Oil and Gas Operations; Federal and Indian Oil & Gas Leases; Onshore Oil and Gas Order No. 4; Measurement of Oil.”

4 US Department of Interior’s Office of Natural Resources Revenue at 30 CFR 1210, “Forms and Reports”

. 5 Oil and Gas Operating Report, Part A

– Well Production, OMB Control Number 1012

- 0004

. 6 Oil and Gas Operating Report, Part B

– Product Disposition, OMB Control Number 1012

- 0004.5 operations performed during the reporting period, as well as the first date of production for each oil and

natural gas well. The EPA has determined that the location of well completion and recompletion

operations and the first date of production are also required to be reported to the BLM within 30 days

following completion operations through Form 3160

- 4. 7 However, the EPA believes this potentially

duplicative information request i s extremely minimal and does not pose a significant burden to the

respondents. Although, the EPA would accept a copy of the submitted Form 3160

- 4 in lieu of any

duplicated information required in the annual report for the FBIR FIP, we anticipate it will be easier for

the respondents to separately include the location of the well completion or recompletion and first date

of production with the other information submitted in the annual report. The EPA has determined that

the FBIR FIP requirements to report t he date, time, and duration of flowback and venting during

completion and recompletion operations are not duplicative of any other DOI re quirements that require

similar information during the production phase ( i.e.

, as opposed to the completion phase requi rements

in the FBIR FIP).

T he EPA asserts that any potentially duplicative recordkeeping or reporting requirements of the

FBIR FIP are necessary for the Agency to ensure compliance with the rule. We also note that the

potential for duplication only exist s for facilities subject to DOI requirements, which may not apply to

all facilities on the FBIR depending on the land lease status of the facility. The information submitted to

BLM and ONRR is not publicly available and it would be extremely resource inten sive for the federal

agencies to share such a small component of information relative to the total information the EPA is

requesting under this ICR. Furthermore, much of the information collected under this ICR is a

customary and usual business practice f or the respondents. The oil and natural gas industry maintains

their own records of production operations as part of routine business operations. The recordkeeping

and reporting requirements in the FBIR FIP have been minimized to the greatest extent prac ticable while

still ensur ing compliance with the rule as an effort to reduce the regulatory burden on the respondents.

Additionally, the FBIR FIP at §49.4164(f) exempts sources subject to the storage tank control

requirements of NSPS OOOO from the requirements of the FBIR FIP for the same affected equipment ;

therefore, there is no duplication with other EPA regulations

. (b) Public Notice Required Prior to ICR Submission to OMB.

An announcement of a public comment period for the renewal of this ICR was published in

the Federal Register ( 80 FR 70200 ) on November 13 , 201 5

. One comment was received during the

7 Well Completion or Recompletion Report and Log, OMB Control Number 1004

- 0137.6 comment period however, upon review, this comment was determined to be non

- substantive and

unrelated to the renewal of this ICR.

(c) Consulta tions.

The Agency has consulted i ndustry experts and internal data sources in the development and

implementation of the FBIR FIP and ICR. The primary source of information for the renewal of this

ICR are the annual reports, which are submitted by industry to the EPA in compliance with the

recordkeeping and reporting provisions in the FIP

. These annual reports contain information on the

date, time, duration, and location of well completion and recompletion operations and were used to

calc ulate an industry growth rate for the purposes of th e ICR. In the development stage, the EPA

reviewed existing state and industry standards, and consulted with the Three Affiliated Tribes of the

Mandan, Hidatsa, and Arikara Nation, industry , and state and feder al agencies

. The EPA held numerous

workshops to provide industry and other interested parties an opportunity to comment on all aspects of

the FBIR FIP and ICR including technical operations, burden and costs, and the permitting process.

Specific informati on concerning industry growth and costs associated with the ICR were obtained from

the following companies:

Organization Contact Person

Enerplus Resources Corporation Tony Lucero

EOG Resources, Inc. Curtis Rice

QEP Resources, Inc. Craig Brown

Slawson Exploration Company, Inc. Ray Gorka

WPX Energy, Inc. Jodell Mizoue

XTO Energy, Inc. John McMichael

Additionally, the EPA consulted with its own internal industry experts to verify the accuracy of the

burden and costs numbers generated for the renewal of this ICR.

(d) Effects of Less Frequent Collection.

Respondents must monitor all specified criteria at each affected facility and maintain these

records for five years

. The required reporting frequency to the EPA has been established to minimize

the burden on owners and ope rators of affected facilities.7 (e) General Guidelines

. This collection of information is consistent with all OMB guidelines established by OMB at

5 CFR P art 1320, S ection 1320.5.

(f

) Confidentiality.

All information submitted to the EPA for which a claim of confidentiality is made will be

safeguarded according to the EPA policies set forth in Title 40, Chapter 1, Part 2, Subpart B

--
Confidentiality of Business Information (see 40 CFR 2; 41 FR 36902, September 1, 1976; amended by

43 FR 39999, September 28, 1978; 43 FR 42251, September 28, 1978; 44 FR 17674, March 23, 1979).

(g) Sensitive Questions.

This section is not applicable because this ICR does not involve matters of a sensi tive nature.

4. The Respondents and the Information Requested

(a) Respondents/ NAICS Codes

. Potential respondents under the FBIR FIP are owner s or operator s constructing, modifying or

operating an oil and natural gas production facility producing from the Bakken Pool with one or more

oil and natural gas wells, for any one of which completion or recompletion operations are/were

performed on or after August 12, 2007, that is located on the FBIR

. The North American Industry

Classification System (NAICS) code for the oil and natural gas industry potentially subject to the FBIR

FIP is 211111 ( Crude Petroleum and Natural Gas Extraction ).

(b) Information Requested

. (i) Data Items, Including Recordkeeping Requirements.

Recordkeeping

Maintain records of t he measured barrels of oil produced at the oil and natural gas production facility each time the oil is unloaded from the produced oil storage tanks

. 49.4167(a)(1)

Maintain records of t he volume of produced natural gas sent to each enclosed combustor, utility flare, and pit flare

. 49.4167(a)(2)

Maintain records of t he volume of natural gas emissions from the produced oil storage tanks and produced wa ter storage tanks sent to each enclosed combustor, utility flare, and pit flare

. 49.4167(a)(3)

Maintain records of each oil and natural gas well completion operation and recompletion operation

. 49.4167(a)(4)

Maintain records of t he w ritten, site

- specific designs, operating instructions, operating procedures and maintenance schedules f or each enclosed combustor, utility flare, and pit flare

. 49.4167(a)(5)(i)

Maintain records of all required monitoring of operations f or each enclosed combustor, utility flare, and pit flare

. 49.4167(a)(5)(ii)

Maintain records of any deviations from the operating parameters specified by the written site

specific designs, operating instructions, and operating procedures

. 49.4167(a)(5)(iii)

Maintain records of any instances in which the pilot flame is not present, auto ignition system is not functioning, or the monitoring equipment is not functioning in the enclosed combustor, the utility flare, or the pit flare

. 49.4167(a)(5)(iv)

Maintain records of any instances in which a recording device installed to record data from the enclosed combustor, utility flare, or pit flare is not operational

. 49.4167(a)(5)(v)8 Recordkeeping

Maintain records of any time periods in which visible smoke emissions are observed emanating from the enclosed combustor, utility flare, or pit flare

. 49.4167(a)(5)(vi)

Maintain records to demonstrate compliance with the use restrictions for pit flares

. 49.4167(a)(6)

Maintain records of any instances in which any closed

- vent system or control device was bypassed or down, the reason for each incident, its duration, and the corrective actions taken and any preventative measures adopted to avoid such bypasses or downtimes

. 49.4167(a)(7)

Maintain records of t he d ocumentation of all produced oil storage tank and produced water storage tank ins pections required in § 49.4166(e ) and ( f )

. 49.4167(a)(8)

Records retention requirements

. 49.4167(b), 49.1467 (c)
Notifications and Reporting

Each owner and operator must submit an annual report containing the information specified in

49.4168 (b)(1) through (4)

. 49.4168(b)

(ii) Respondent Activities.

Respondent Activities

Read instructions.

Gather relevant information.

Enter information required to be recorded above.
Submit the required reports

. Develop, acquire, install, and utilize technology and systems for the purpose of collecting, validating,
and verifying information

. Develop, acquire, install, and utilize technology and systems for the purpose of processing and
maintaining information.
Train personnel to be able to respond to a collection of information.
Completing and reviewing the collection of information

. Transmit, or otherwise disclose the information.

5. The Information Collected

– Agency Activities, Collection Methodology, and Information

Management

(a) Agency Activities.

The Agency activities associated with the FBIR FIP are to review, analyze, and maintain the

annual reports required to be submitted by industry. Section 6(c) provides further detail into the Agency

activities related with the FBIR FIP.

(b) Collection Methodology and Management

. Data and records maintained by the respondents are tabulated for internal u se in compliance and

enforcement pr ograms of the EPA or delegated tribal agency

. Records may be maintained by the

respondents in hard copy or electronic format to allow flexibility and reduce the burden. As a further

effort to minimize the reporting burden, the FBIR FIP allows for the electronic submittal of annual

reports via email to r8airreportenforcement@epa.gov . The FBIR FIP also allows owners/operators to

submit one report for all of their affected facilities, thus reducing the burden for multiple reports.9 Additionally, owners/operators are allowed to submi t their annual reports required by the FBIR FIP at

the same time as any required annual reports under the Title V operating permit program. The EPA

Region 8 will continue to work with owners/operators to streamline the recordkeeping and reporting

process whenever possible.

(c) Small Entity Flexibility.

Minimizing the information collection burden for all sizes of organizations is a continuing effort

for the EPA. T he impact on small entities (i.e., small businesses) was taken into consideration during

the development of the regulation. The EPA has tried to reduce the impact of this rule on small entities

by the selection of highly cost

- effective controls and specifying monitoring requirements that are the

minimum to insure compliance.

(d) Collection Schedule

. The specific frequencies for each information collection activity within this request are shown in

Exhibit 1 a, Exhibit 1b, and Exhibit 1c: Respondent Burden of Reporting and Recordkeeping

Requirements

.

6. Estimating the Burden and Cost of the Collection

( a) Estimating Respondent Burden.

Exhibit 1a, Exhibit 1b, and Exhibit 1c document the c alculation of individual burdens for the

recordkeeping and reporting requirements applicable to the respondents for the FBIR FIP included in

this ICR for each of the next three years. The table below contains a summary of the respondent burden

labor hours detailed in Exhibit 1a, Exhibit 1b, and Exhibit 1c.

Year Total Annual Labor Burden

(hours)

1 37,995

2 44,436

3 50,951

Total 133,382

3

- Year Average 44,461

(b) Estimating Respondent Costs

.

The respondent costs for the information collection activities in the FBIR FIP are presented in

Exhibit 1a, Exhibit 1b, and Exhibit 1c

. The total cost for each respondent activity includes labor costs,

capital/startup costs, and operations and maintenance costs.10 (i ) Estimating Labor Costs

.

This ICR uses the following labor rates:

Managerial $65.92

Technical $50.69

Clerical $25.13

These rates are from the Employer Costs for Employee Compensation published by the

Department of Labor, Bureau of Labor and Statistics

, September 2015, “Table 2. Civilian Workers, by

occupational and industry group.” (Source: http://www. bls.gov/ne ws.release/ecec.toc .htm ). The rates

are the total compensation rates and include the base rate for wages and salaries, as well as benefits such

as paid leave, insurance, and retirement savings. The table below contains a summary of the respondent

labor costs detailed in Exhibit 1a, Exhibit 1b, and Exhibit 1c.

Year Total Annual Labor Cost ($)

1 $1,866,699

2 $ 2,183,104

3 $ 2,503,205

Total $ 6,553,008

3

- Year Average $ 2,184,336

( ii) Estimating Capital and Operations and Maintenance (O&M) Costs

. Capital /startup and O&M costs associated with the FBIR FIP result from the requirement to

monitor and record proper operation of the control device through the use of an auto igniter or

continuous pilot flame, each equipped with a remote notification syste m, malfunction alarm, and

continuous recording device. These costs were also included in the EPA’s preliminary cost analysis,

which concluded the FBIR FIP was not a significant regulatory action under Executive Order 12866. 8

T he capital/startup costs and O&M costs specific to the auto igniter and continuous pilot flame were

provide d to the EPA by operators subject to the FBIR FIP. The se initial capital/startup costs and O&M

costs include d the costs for the continuous pilot flame or auto igniter, in addit ion to the costs for the

remote notification system, malfunction alarm, and continuous reco rding device. Since the EPA

obtained information that an auto igniter or continuous pilot flame is typically already included with the

8 The technical support document for the FBIR FIP includes a more detailed explanation of the preliminary cost analysis for

this action . It can be found in the docket for this rule, Docket ID: EPA

- R08

- OAR

- 2012

- 0479, which can be accessed at: http:// www.regulations.gov

.11 control device, the EPA belie ves the estimated capital/startup and O&M costs are conservative

overestimates. Furthermore, the annual capital/startup and O&M costs are expected to decline due to

group discounts on equipment and increasing familiarity with the system components by the operators.

The initial capital/startup costs were annualized over the expected lifetime of the equipment . Since the

estimated lifetime of the equipment exceeds the 3

- year period covered by this renewal ICR, those initial

annualized capital/startup costs are included for each year of this renewal . The table below shows the

expected capital/startup costs and O&M costs for this ICR.

Capital/Startup vs. Operation and Maintenance (O&M) Costs

(A)

Continuous Monitoring

Device (B)

Capital/ Startup Cost

for One Respondent (C)

Average

Annual

Number of Respondents (D)

Average

Annual Capital/Startup

Cost, (B×C) (E)

Annual O&M

Costs for One Respondent a (F)

Average

Number of Respondents

with O&M b (G)

Total O&M,

(E×F)

Auto igniter or continuous pilot flame, each equipped with remote notification, malfunction alarm, and data recording device $ 3,470 926 $ 3,213,220 $ 5,002 926 $ 4, 631,852

Assumptions:

a O&M costs reflect operation and maintenance of an auto igniter or continuous pilot flame, which is typically included as part of the control device

. Therefore, the above costs are a conservative overestimation of actual costs.

b Capital/Startup and O&M costs for continuous control device monitoring were already included in the cost analysis for the FBIR FIP, as detailed in the technical support document for the rule.

The average annual capital/startup costs for this ICR are $ 3,213,220 . This is the total of column D in the

above table

. The average annual operation and maintenance (O&M) costs for this ICR are $ 4,631,852

.

This is the total of column G

. Combined, t he average annual cost for capital/startup and operation and

maintenance costs to industry during the three year period of the ICR is estimated to be $ 7,845,072

. (c) Estimating Agency Burden and Co st

.

Because the information collection requirements were developed as an incidental part of FIP

development under Section 301 of the CAA, no costs can be attributed to the development of the

information collection requirements. Since reporting and r eco rdkeeping requirements on many of the

respondents are potentially required under the ope rating permits rule in 40 CFR P art 71, no additional

operational costs will be incurred by the f ederal g overnment for these sources

. Examination of records

to be maintained by the respondents will occur incidentally as part of the periodic inspection of sources

that is part of the EPA’s overall com pliance and enforcement program and therefore is not attributable to

the ICR. T he only co sts that the Federal G overnment will incur are user costs associated with the

analy sis of the reported information as presented in Exhibit 2a, Exhibit 2b, and Exhibit 2c

. This cost is

based on the average hourly labor rate as follows:12 Managerial $93.20 (GS

- 14, Step 5, $58.25 + 60%)

Technical $69.60 (GS

- 13, Step 1, $43.50 + 60%)

Clerical $35.20 (GS

- 7, Step 3, $22.00 + 60%)

These rates are from the Office of P ersonnel Management ( OPM), 2016 General Schedule,

which includes locality rates of pay for the EPA Region 8 employees in the Denver, Colorado

. The rates

have been increased by 60 percent to account for the benefit packages available to government

employees

. The table below contains a summary of the agency labor costs detailed in Exhibit 2a,

E xhibit 2b, and Exhibit 2c

.

Year Agency Total Annual Labor

Cost ($)

1 $ 61,446

2 $ 72,024

3 $ 82,602

Total $ 216,072

3

- Year Average $ 72,024

(d) Estimating the Respondent Universe and Total Burden and Costs

.

It was estimated that an average of 790 facilities will be subject to the FBIR FIP requirements in

the first year, 926 in the second year, and 1,062 in the third year durin g the 3

- year period of this ICR.

These numbers are based on information provided by oil and natural gas operators in the required annual

reports for reporting years 2012, 2013, and 2014 as well as information from consent agreements and

final orders 9 (CAFOs) finalized in August 2011

. The EPA believes this is an overestimation for future

development and that the number of fa cilities (respondents) will decline as lease spacing li mitations for

drilling are met. For the FBIR FIP , the components of the total annual responses attributable to this ICR

are recordkeeping and reporting of an average of 926 entities by 10 owner/operat ors over the 3

- year

period.

The number of total annual responses for the FBIR FIP is estimated as: 2,778 total respondents

from 10 operators over the three year period. The average number of annual responses is 926.

Year Annual Number of Respondents

1 790

9 The FBIR CAFOs are inclu ded in the docket for this rule , Docket ID: EPA

- R08

- OAR

- 2012

- 0479, which can be accessed at: http://www.regulations.gov

.13 2 926 (1 36 new)

3 1,062 (136 new)

Total 2,778

(e) Bottom Line Burden Hours and Cost Tables

. (i) Respondent tally

. The bottom line respondent burden hours and costs, presented in Exhibit 1a, Exhibit 1b, and

Exhibit 1c are calculated by adding person

- hours per year down each column for technical, managerial,

and clerical staff, and b y adding down the cost column

. The average annual burden for the

recordkeeping and reporting requirements for the 10 owners and operators that are subject to the FIP is

44,461 person

- hours, with an annual average cost of $ 10,029, 408

. (ii) The Agency tally

. The average annual EPA cost is $ 72,024 for an average of 1,065 hours for the FBIR FIP

. The

bottom line Agency burden hours and costs presented in Exhibit 2a, Exhibit 2b, and Exhibit 2c are

calculated by adding person

- hours per year down each column for technical, managerial, and clerical

staff, and by adding down the cost column.

(iii) Va riations in the annual bottom line

. This section does not apply since no significant variation is anticipated.

(f) Reasons for Change in Burden

. For both the respondent and the EPA , t here is an increase in the total estimated labor burden and

total esti mated annual costs as currently identified in the OMB Inventory o f Approved Burdens. There

is an increase of 14,806 hours in the total estimated respondent burden compared with the ICR currently

approved by OMB. This increase is due to the anticipated ind ustry growth projected to occur over the

next three year period of this ICR. In the initial creation of this program, the capital/O&M costs were

annualized over 10 years. This is the second ICR package and it will cover years 4, 5, and 6 of this 10

year pe riod. The annual estimates over 10 years, along with the anticipated industry growth, explain for

the increase in cost. The anticipated industry growth comes from an estimated annual increase of 136

facilities each year

. Additionally, the EPA updated the respondent and the a gency labor costs to reflect

current rates referenced from the Bureau of Labor Statistics and the Office of Personnel Management

.14 (g) Burden Statement

.

The burden for this ICR is summarized in the table below.

Burden Average

Annu al

Number of Responses Average

Annual

Labor

Burden (hours) Average Annual Costs

Labor Costs Capital

Costs O&M Costs Total

Annual

Costs

Respondent 926 44,461 $ 2,184,336 $ 3,213,220 $ 4, 631, 852 $ 10,029, 408

Agency NA 1,065 $ 72,024 $0 $0 $ 72,024

The annual public reporting and recordkeeping burden for this collection of information is

estimated to average 48 hours per response

. Burden means the total time, effort, or financial resources

expended by persons to generate, maintain, retain, or disclo se or provide informati on to or for a f ederal

agency

. This includes the time needed to review instructions; develop, acquire, install, and utilize

technology and systems for the purposes of collecting, validating, and verifying information, processing

and maintaining information, and disclosing and providing information; adjust the existing ways to

comply with any previously applicable instructions and requirements; train personnel to be able to

respond to a collection of information; search data sources; complete and review the collection of

information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor,

and a person is not required to respond to, a collection of information unless it displa ys a valid OMB

Control Numb er

. The OMB Control Numbers for the EPA re gulations are listed at 40 CFR Part 9 and

48 CFR C hapter 15.

To comment on the Agency's need for this information, the accuracy of the provided burden

estimates, and any suggested methods for minimizing responden t burden, including the use of automated

collection techniques, EPA has established a public docket for this ICR under Docket ID Number EPA

R08

- OAR

- 2012

- 0479 , which is available for online viewing at www.regulatio ns.gov , or in person

viewing at the Office of Environmental Information Docket in the EPA Docket Center (EPA/DC), EPA

West, Room 3334, 1301 Constitution Avenue, NW, Washington, D.C. The EPA Docket Center Public

Reading Room is open from 8:30 a.m. to 4:30 p .m., Monday through Friday, excluding legal holidays.

The telephone number for the Reading Room is (202) 566

- 1744, and the telephone number for the OEI

Docket is (202) 566

- 1752. An electronic version of the public docket is available

at www.regulations.gov . This site can be used to submit or view public comments, access the index

listing of the contents of the public docket, and to access those documents in the public docket that are

available electronically. When in the system, select “search,” then key in the Docket ID Number15 identified above. Also, you can send comments to the Office of Information and Regulatory Affairs,

Office of Management and Budget, 725 17 th Street, NW, Washington, D.C. 20503, Attention: Des k

Officer for EPA. Please include the EPA Docket ID Number EPA

- R08

- OAR

- 2012

- 0479 and OMB

Control Number 2008

- 0001 in any correspondence.

Part B of the Supporting Statement

This section is not applicable because statistical methods are not used in data co llection

associated with the final rule.(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K)Person-Hoursper OccurrenceNumber ofOccurences perRespondent perYearPerson-Hoursper Respondentper Year (A*B)Respondentsper YearTechnicalPerson-Hoursper Year(C*D)ManagerialPerson-Hoursper Year(0.05*E)Clerical PersonHours per Year(0.10*E)Capital/StartupCostaO&M Costa,iLabor CostbTotal Cost per YearContinous pilot or auto-ignition system with continousmonitoring/recordingc24 1 24 790 18,960 948 1,896 $3,470 $5,002 $1,071,221 $7,763,903.54A. Read InstructionsExisting sourcesd1 0.1 0.1 654 65 3 7 $0 $0 $3,695 $3,695New affected sourcese1 0.1 0 136 14 1 1 $0 $0 $768 $768B. Required ActivitiesMeasure barrels of oil producedf0 1 0 790 0 0 0 $0 $0 $0 $0Volume of produced natural gas sent to control devicef0 1 0 790 0 0 0 $0 $0 $0 $0Volume of natural gas emissions sent to control device 1 1 1 790 790 40 79 $0 $0 $44,634 $44,634Well completion and recompletion operations 2 1 2 790 1,580 79 158 $0 $0 $89,268 $89,268Control device monitoring and deviations 8 1 8 790 6,320316 632 $0 $0 $357,074 $357,074Restricted use of pit flaresg0.5 0.1 0 790 40 2 4 $0 $0 $2,232 $2,232Closed-vent system or control device not operatingg0.5 0.1 0 790 40 2 4 $0 $0 $2,232 $2,232Produced oil and water storage tank inspections 4 1 4 790 3,160 158 316 $0 $0 $178,537 $178,537Records retention requirements0.25 1 0 790 198 10 20 $0 $0 $11,159 $11,159C. Train Personnel31,166 1,558 3,117 $3,470 $5,002A. Read InstructionsB. Required ActivitiesAnnual reporth20 0.1 2 937 1,874 94 187 $0 $0 $105,879 $105,879C. Create informationD. Gather existing informationE. Write report1,874 94 187 $0 $033,040 1,652 3,304 $3,470 $5,002fBurden for recordkeeping of measured barrels of oiland produced natural gas vented to flare is covered under another ICR for OMB Control Number 1012-0004.aCapital and O&M Costs are per respondent (1 respondent = 1 oil and natural gas production facility)1. APPLICATIONS (Not Applicable)2. SURVEY AND STUDIES (Not Applicable)Included in 5BIncluded in 5BIncluded in 5B3. ACQUISITION, INSTALLATION, AND UTILIZATION OF TECHNOLOGY AND SYSTEMS4. RECORDKEEPING REQUIREMENTS5. REPORTING REQUIREMENTSIncluded in 3$689,599$105,879$1,866,699Recordkeeping Requirement Subtotal35,840$8,453,502Reporting Requirement Subtotal$105,8792,155Included in 4A$8,472$0$8,472bCosts are based on September 2015 Bureau of Labor Statistics, Employer Costs for Employee Compensationtotal compensation index which includes wages, salaries, and benefits. Costs are estimated using thefollowing hourly rates: technical at $51, managementat $66, and clerical at $25. (Source: http://www.bls.gov/news.release/ecec.toc.htm)Exhibit 1a. Year 1 Respondent Burden of Reporting and Recordkeeping RequirementsFederal Implementation Plan for Oil and Natural Gas Well Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North DakotaYeardExisting sources in Year 1 are estimated to be 654oil and natural gas facilities. This number was calculated using the initial estimated number of existing sources subject to the FIP in August 2012 of309 facilities, and adding the number of new facilities reported tothe EPA in the 2012-2014 annual reports.gRecordkeeping only required under specific circumstances which are not expected to occur regularly ateach facility. The number of occurences per respondent per year has been reduced to 0.1 to reflect this assumption.hThe rule allows each owner/operator to submit a combined annual report for all of their respective facilities in 1 submittal once per year. Currently there are 10 known owners/operators subject to the FIP requirements. Therefore, we have reduced the number ofoccurences per respondent per year to 0.1 to conservatively account for 1 submittal per each owner/operator for all of facilities subject to the FIP.iO&M costs were adjusted from 2012 dollars to 2015 dollars for the ICR renewalTOTAL REPORTING AND RECORDKEEPING LABOR AND COST37,995$8,559,381eNew sources for Year 1 are estimated to be 136 oiland natural gas facilities. The new facilities estimated in the initial ICR was 157. The average number of new facilities reported to EPA in the 2012-2014 annual reports was 115. The average of these twonumbersis 136.cAnnual total capital investment costs were determined using cost information and the appropriate CRFfactor for the life expectancy of equipment provided by 2 of the FBIR operators. Additionaly, annualO&M cost specific to auto-ignition systems and continuouspilot flame systems were provided by the 2 operators. There is no "purchase of services component" cost for the monitoring requirements in this FIP.Exhibit 1b. Year 2 Respondent Burden of Reportingand Recordkeeping Requirements(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K)Person-Hoursper OccurrenceNumber ofOccurencesperRespondentPerson-HoursperRespondentper YearRespondentsper YearTechnicalPerson-Hoursper Year(C*D)ManagerialPerson-Hoursper Year(0.05*E)Clerical PersonHours perYear (0.10*E)Capital/StartupCostaO&M Costa,iLabor CostbCost per YearContinous pilot or auto-ignition system with continousmonitoring/recordingc24 1 24 926 22,224 1,111 2,222 $3,470 $5,002 $1,255,634 $9,100,474A. Read InstructionsExisting sourcesd0 0 0 790 0 0 0 $0 $0 $0 $0New affected sourcese1 0.1 0 136 14 1 1 $0 $0 $768 $768B. Required ActivitiesMeasure barrels of oil producedf0 1 0 926 0 0 0 $0 $0 $0 $0Volume of produced natural gas sent to control devicef0 1 0 926 0 0 0 $0 $0 $0 $0Volume of natural gas emissions sent to control device 1 1 1 926 926 46 93 $0 $0 $52,318 $52,318Well completion and recompletion operations 2 1 2 926 1,852 93 185 $0 $0 $104,636 $104,636Control device monitoring and deviations 8 1 8 926 7,408370 741 $0 $0 $418,545 $418,545Restricted use of pit flaresg0.5 0.1 0 926 46 2 5 $0 $0 $2,616 $2,616Closed-vent system or control device not operatingg0.5 0.1 0 926 46 2 5 $0 $0 $2,616 $2,616Produced oil and water storage tank inspections 4 1 4 926 3,704 185 370 $0 $0 $209,272 $209,272Records retention requirements 0.25 1 0 926 232 12 23 $0 $0 $13,080 $13,080C. Train Personnel36,452 1,823 3,645 $3,470 $5,002A. Read InstructionsB. Required ActivitiesAnnual reporth20 0.1 2 1,094 2,188 109 219 $0 $0 $123,620 $123,620C. Create informationD. Gather existing informationE. Write report2,188 109 219 $0 $038,640 1,932 3,864 $3,470 $5,002$0$8,472aCapital and O&M Costs are per respondent (1 respondent = 1 oil and natural gas production facility)TOTAL REPORTING AND RECORDKEEPING LABOR AND COST$10,027,94544,436$2,183,104Federal Implementation Plan for Oil and Natural GasWell Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North DakotaIncluded in 3$8,472Year1. APPLICATIONS (Not Applicable)2. SURVEY AND STUDIES (Not Applicable)3. ACQUISITION, INSTALLATION, AND UTILIZATION OF TECHNOLOGY AND SYSTEMSIncluded in 4A4. RECORDKEEPING REQUIREMENTSRecordkeeping Requirement Subtotal$9,904,32541,9195. REPORTING REQUIREMENTS$803,851Included in 5BIncluded in 5BIncluded in 5BfBurden for recordkeeping of measured barrels of oiland produced natural gas vented to flare is covered under another ICR for OMB Control Number 1012-0004.gRecordkeeping only required under specific circumstances which are not expected to occur regularly ateach facility. The number of occurences per respondent per year has been reduced to 0.1 to reflect this assumption.hThe rule allows each owner/operator to submit a combined annual report for all of their respective facilities in 1 submittal once per year. Currently there are 10 known owners/operators subject to the FIP requirements. Therefore, we have reduced thenumber of occurences per respondent per year to 0.1to conservatively account for 1 submittal per eachowner/operator for all of facilities subject to the FIP.iO&M costs were adjusted from 2012 dollars to 2015 dollars for the ICR renewalReporting Requirement Subtotal$123,6202,516$123,620cAnnual total capital investment costs were determined using cost information and the appropriate CRFfactor for the life expectancy of equipment provided by 2 of the FBIR operators. Additionaly, annualO&M cost specific to auto-ignition systems andcontinuous pilot flame systems were provided by the2 operators. There is no "purchase of services component" cost for the monitoring requirements in this FIP.dExisting sources in Year 2 are estimated to be 790oil and natural gas facilities based on Year 1 numbers. There is no cost for existing sources to readinstructions because it is covered under the prioryear.eNew sources for Year 2 are estimated to be 136 oiland natural gas facilities. The new facilities estimated in the initial ICR was 157. The average number of new facilities reported to EPA in the 2012-2014 annual reports was 115. The average of thesetwo numbers is 136.bCosts are based on September 2015 Bureau of Labor Statistics, Employer Costs for Employee Compensationtotal compensation index which includes wages, salaries, and benefits. Costs are estimated using thefollowing hourly rates: technical at $51,management at $66, and clerical at $25. (Source:http://www.bls.gov/news.release/ecec.toc.htm)Exhibit 1c. Year 3 Respondent Burden of Reportingand Recordkeeping Requirements(A) (B) (C) (D) (E) (F) (G) (H) (I) (J) (K)Person-Hoursper OccurrenceNumber ofOccurencesperRespondentPerson-HoursperRespondentper YearRespondentsper YearTechnicalPerson-Hoursper Year(C*D)ManagerialPerson-Hoursper Year(0.05*E)Clerical PersonHours perYear (0.10*E)Capital/StartupCostaO&M Costa,iLabor CostbCost per YearContinous pilot or auto-ignition system with continousmonitoring/recordingc24 1 24 1,062 25,488 1,274 2,549 $3,470 $5,002 $1,440,047 ############A. Read InstructionsExisting sourcesd0 0 0 926 0 0 0 $0 $0 $0 $0New affected sourcese1 0.1 0 136 14 1 1 $0 $0 $768 $768B. Required ActivitiesMeasure barrels of oil producedf0 1 0 1,062 0 0 0 $0 $0 $0 $0Volume of produced natural gas sent to control devicef0 1 0 1,062 0 0 0 $0 $0 $0 $0Volume of natural gas emissions sent to control device 1 1 1 1,062 1,062 53 106 $0 $0 $60,002 $60,002Well completion and recompletion operations 2 1 2 1,0622,124 106 212 $0 $0 $120,004 $120,004Control device monitoring and deviations 8 1 8 1,062 8,496 425 850 $0 $0 $480,016 $480,016Restricted use of pit flaresg0.5 0.1 0 1,062 53 3 5 $0 $0 $3,000 $3,000Closed-vent system or control device not operatingg0.5 0.1 0 1,062 53 3 5 $0 $0 $3,000 $3,000Produced oil and water storage tank inspections 4 1 4 1,062 4,248 212 425 $0 $0 $240,008 $240,008Records retention requirements0.25 1 0 1,062 266 13 27 $0 $0 $15,000 $15,000C. Train Personnel41,803 2,090 4,180 $3,470 $5,002A. Read InstructionsB. Required ActivitiesAnnual reporth20 0.1 2 1,251 2,502 125 250 $0 $0 $141,360 $141,360C. Create informationD. Gather existing informationE. Write report2,502 125 250 $0 $044,305 2,215 4,431 $3,470 $5,002$0$8,472aCapital and O&M Costs are per respondent (1 respondent = 1 oil and natural gas production facility)TOTAL REPORTING AND RECORDKEEPING LABOR AND COST$11,500,20450,951$2,503,205Federal Implementation Plan for Oil and Natural GasWell Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, and Arikara Nation), North DakotaIncluded in 3$8,472Year1. APPLICATIONS (Not Applicable)2. SURVEY AND STUDIES (Not Applicable)3. ACQUISITION, INSTALLATION, AND UTILIZATION OF TECHNOLOGY AND SYSTEMSIncluded in 4A4. RECORDKEEPING REQUIREMENTSRecordkeeping Requirement Subtotal$11,358,84348,0745. REPORTING REQUIREMENTS$921,798Included in 5BIncluded in 5BIncluded in 5BfBurden for recordkeeping of measured barrels of oiland produced natural gas vented to flare is covered under another ICR for OMB Control Number 1012-0004.gRecordkeeping only required under specific circumstances which are not expected to occur regularly ateach facility. The number of occurences per respondent per year has been reduced to 0.1 to reflect this assumption.hThe rule allows each owner/operator to submit a combined annual report for all of their respective facilities in 1 submittal once per year. Currently there are 10 known owners/operators subject to the FIP requirements. Therefore, we have reduced the numberof occurences per respondent per year to 0.1 to conservatively account for 1 submittal per each owner/operator for all of facilities subject to the FIP.iO&M costs were adjusted from 2012 dollars to 2015 dollars for the ICR renewalReporting Requirement Subtotal$141,3602,877$141,360cAnnual total capital investment costs were determined using cost information and the appropriate CRFfactor for the life expectancy of equipment provided by 2 of the FBIR operators. Additionaly, annualO&M cost specific to auto-ignition systems andcontinuous pilot flame systems were provided by the2 operators. There is no "purchase of services component" cost for the monitoring requirements in this FIP.dExisting sources in Year 3 are estimated to be 926oil and natural gas facilities based on Year 2 numbers. There is no cost for existing sources to readinstructions because it is covered under the prioryear.eNew sources for Year 3 are estimated to be 136 oiland natural gas facilities. The new facilities estimated in the initial ICR was 157. The average number of new facilities reported to EPA in the 2012-2014 annual reports was 115. The average of these twonumbers is 136.bCosts are based on September 2015 Bureau of Labor Statistics, Employer Costs for Employee Compensationtotal compensation index which includes wages, salaries, and benefits. Costs are estimated using thefollowing hourly rates: technical at $51,management at $66, and clerical at $25. (Source:http://www.bls.gov/news.release/ecec.toc.htm)Exhibit 2a. Year 1 Agency Burden and Cost(A) (B) (C) (D) (E) (F) (G) (H)EPA HoursperOccurrenceNumber ofOccurencesperRespondentEPA HoursperRespondentper YearRespondentsper YearEPATechnicalHours perYear (C*D)EPAManagerialHours perYear (0.05*E)EPA ClericalHours perYear (0.10*E)EPA Cost perYearaREPORTING REQIUREMENTSReview annual reportsb1 1 1 790 790 40 79 $61,446790 40 79Activity - Year 1$61,446909Federal Implementation Plan for Oil and Natural GasWell Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, andArikara Nation), North DakotaTotal Annual HoursbAssumes 790 oil and natural gas production facilities will submit annual reports in Year 1.aCosts are based on January 2016 Office of Personnel Management salary table for General Schedule (GS)federal employees including locality payment of 22.93% for the Denver,Colorado area and have been increased by 60% to account for benefit packages. Costs are estimated using the following rates: technical at $70, management at $93, and clerical at $35.Exhibit 2b. Year 2 Agency Burden and Cost(A) (B) (C) (D) (E) (F) (G) (H)EPA HoursperOccurrenceNumber ofOccurencesperRespondentEPA HoursperRespondentper YearRespondentsper YearEPATechnicalHours perYear (C*D)EPAManagerialHours perYear (0.05*E)EPA ClericalHours perYear (0.10*E)EPA Cost perYearaREPORTING REQIUREMENTSReview annual reportsb1 1 1 926 926 46 93 $72,024926 46 93Federal Implementation Plan for Oil and Natural GasWell Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, andArikara Nation), North DakotabAssumes 926 oil and natural gas production facilities will submit annual reports in Year 2.Total Annual Hours$72,0241,065aCosts are based on January 2016 Office of Personnel Management salary table for General Schedule (GS)federal employees including locality payment of 22.93% for the Denver,Colorado area and have been increased by 60% to account for benefit packages. Costs are estimated using the following rates: technical at $70, management at $93, and clerical at $35.Activity - Year 2Exhibit 2c. Year 3 Agency Burden and Cost(A) (B) (C) (D) (E) (F) (G) (H)EPA HoursperOccurrenceNumber ofOccurencesperRespondentEPA HoursperRespondentper YearRespondentsper YearEPATechnicalHours perYear (C*D)EPAManagerialHours perYear (0.05*E)EPA ClericalHours perYear (0.10*E)EPA Cost perYearaREPORTING REQIUREMENTSReview annual reportsb1 1 1 1,062 1,062 53 106 $82,6021,062 53 106Federal Implementation Plan for Oil and Natural GasWell Production Facilities; Fort Berthold Indian Reservation (Mandan, Hidatsa, andArikara Nation), North DakotabAssumes 1,062 oil and natural gas production facilities will submit annual reports in Year 3.Total Annual Hours$82,6021,221aCosts are based on January 2016 Office of Personnel Management salary table for General Schedule (GS)federal employees including locality payment of 22.93% for the Denver,Colorado area and have been increased by 60% to account for benefit packages. Costs are estimated using the following rates: technical at $70, management at $93, and clerical at $35.Activity - Year 3