ITED TA ES ENVIRO ME TAL PROTECTlO

REGIO 8

1595 WYNKOOP TRE T

D VER, 0 H0202-1129

Phone 800-227-8917

bttp://ww .cpa.go /region08

DOCKET 0.: CAA-08-2011-0026

AGE CY

2011 UG 29 : 17

Q P EN R •

I Tn ..

R\;sp od lit

TTEROF:

OMP Y

)

)

)

)

)

)

)

)

Pursuant t 40 c.r.R. '22.13(b and 22.18, of EPA's onsolidated Rules or Practice, the

Consent Agreement resolving ihis matter i hereby approvt:d and incorporated by referen e into

thi ]'il1al rdcr. The Rcspondcnt is h reby RD' RED to comply with all oflhe term orth

nscnt Agrccl11 nt, ITcctivc immediately upon I' c ipt by Rcsp ndent of tlli' , n' nt

Agreement nd final rdcr,

This COLUt will ace pt the electronic filing ofthe onsent Agreement in this matter at this

time, how yer the Parties are to tile the origin I Con ent Agreement' ithin seven days of

is. u n c f this rdel'.

The Parties are hereby ORDERED to comply with all of the terms ofthi Order.

effective immediately upon receipt by Parties ofthis Order.

SO ORDERED Till c-:>6t-t!:t D.y of auF----' 2U II

Elyana R. in

Regional Judicial OnIcer
ADMINlSTRATIVE COMPLAINT

AND CONSENT AGREEMENT

)

)

)

)

UNlTED STATES

ENVIRONMENTAL PROTECTION AGENC)201J AUG 29 PH 3: /8

REGION 8

Docket No. CAA-08-20U-0026 - '. r,

! f:'JllJ" V ", l l- ..., fOol In the Matte[ of:

QEP ENERGY COMPANY

Respondent.

AUTHORITY

The United States Environmental Protection Agency, Region 8 (EPA or Complainant) is issuing

this Administrative Complaint and Consent Agreement (Agreement) 10 QEP Energy Company

(Respondent) pursuant to Sections 113(a)(3) and 113(dXI) ofthe Clean Air Act (CM or the Act), 42

U.S.C. § 7413(a)(3) and § 7413(dXI). The Administrator of U,e EPA has the authority to cnter into this

Agreement and that authority has been properly delegated to the undersigned EPA official.

A. STAnJTORY AND REGULATORY BACKGROUND

I. On June 19, 1978, EPA promulgated the Prevention of Significant Deterioration (PSD) regulations

pursuant to Subtitle 1. Part Coftbe Act. 43 .Fed. Reg. 26403. EPA revised the PSD regulations on

several occasioos including August 7, 1980 (45 Fed. Reg. 52676) and December 31,2002 (67 Fed. Reg.

80186). These regulations are codified at 40 C.F.R. Part 52.

2. Terms used in this Agreementthat are defined in the Act or in regulatiotlS promulgated pursuanllo the

Act shall have the meanings assigned to them therein, unless otherwise provided in this Agreement.

3. The emission sources to which this Agreement relates are in "Indian country" a.t:; defined at 18 U.S.C.

§1151. Tbe locations ofthe emission sources are identified in Appendix A.

4. Sectioo 165(a) ofthe Act, 42 U.S.C. § 7475(a), and the PSD regulations implementing Part C a140

C.F.R. § 52.21(a)(2)(iii), prohibit amajor stationary source from commencing construction or major

modification of a major stationary sourcc without a permit which states that the major stationary source

or modiJieatioo would meet the requirements of 40 C.F.R. § 52.21 G) through (r).

5. 40 C.F.R. § 52.2 I(b)(5) defines a "stationary source" as, any bwlding, structure, r>eility or installation

which emits or may emit a regulated PSD pollutant

6. 40 C.!'.R. § 52.21 (b)(I)(i)(b) defines a ''major stationary source" as, among other things, any stationary

source that cmits, or has the potential to emit, 250 tons per year or more of any regulated PSD poLlutant.

7. On July 1. 201 I, EPA promulgated final rules titled "Review ofNew Sources and Modifications in

1ndian Country." (fribal Minor NSR Rule) 76 Fed. Reg. 38748-808 (July 1,2011) (to he codified at 40

C.F.R. Parts 49 and 51). The final rules are elfective 00 August 30, 2011. 76 Fed. Reg. at 38748. Once
effective, the niles allow, among other things, for a synthetic minor source permit to be issued to an

otherwise major source that has taken n restriction, enforceable as a legal and practical matter, so lhat the

source's potential to emit is less than the amounts for major sources,

8. This proceeding is governed by the Consolidated Rilles ofPractice Governing the Administrative

Assessment ofCivil Penalties, and the Revocation, Tennination or Suspension ofPenuits (Consolidated

Rules) set forth at 40 C.F.R. Part 22. The U.S. Department ofJustice bas coucurred with EPA Region

8's request for authorization to commence an administrative enforcement action in lhis matter.

9. This Agreement is voluntarily entered into by the EPA and the Respondent for the purpose of

simultaneously conunencing and concluding this matter, a'l authorized by 40 C.F.R. § 22.13(b), amI

executed pursuant to 40 C.F.R. § 22.18(b)(2) and (3) of the Consolidated Rules.

B. INTRODUCl'ORY PROVISIONS

1. TIus Agreement addresses a unique situation in that the Respondent is unable to obtain an effective

synthetic minor sourcc pennit from EPA prior to commencing construction because, pursuant to the new

Tribal Minor NSR Rule, the authority to issue such pennits begins Augusl30, 2011.

2. TItis Agreement is entered into by EPA and Respondent to settle alleged violations and allow

Respondents to comply as expeditiously as possible with the requirements ofthe CAA, specifically PSD,

ofcertain Bakken Formation Oil and Gas Emission Sources (emission sources) owned and/or operated

by Respondent, localed within the exterior boundaries ofthe Fort Berthold Indian Reservation in North

Dakota as described in Appendix A.

3. Respondent' admits the jurisdictional allegations in this Agreement but does not admit the specific

factual allegations or legal conclusions made by the Complainant herein.

4. Respondent waives its rights to H hearing before any tribWlai and to contest any issue of law or facl sel

forth in this Agreement.

5. Complainant asserts that settlement oflhis matter is in the public interest. Complainant and Respondent

agree that resolving this matter wiihout further litigation and without adjudication ofany issue of fact or

law is appropriate.

6. This Agreement, which i.ncludes Appendices A and B, upon incorporation into a Final Order, applies to

and is binding upon EPA and upon Respondenl, and Respondent's officers, directors, employees, agents.

successors and assigns.

7. This Agreement contains all teans ofthe settlement agreed to by the EPA and Respondent.

2
C. ALLEGED VIOLATIONS

I. Respondent is a Texas corporation and theretore a "person" as defined in section 302(e) ofthe eM. 42

U.S.C. § 7602(e).

2. Respondent owns and/or operates tJle emission sources described in Appendix A.

3. Complainant alleges that Respondent violated the CAA by constructing each ofLhe major stationary

sources identified in Appendix A. Table A-I without first obtaining a P"O pemlit pursuant to 40 C.F.R.

§ 52.21.

D. REQUIREMENTS UNDER TillS AGREEMENT

The EPA and Respondent., by their undersigned representatives, bereby consent and agree as follows:

1. Pennitting

a Within one year oftbe effective date ofthis Agreement, for all Existing Emission Sources listed

in Appendix A. Table A-I, Respondent shall submit to EPA a cornplete synthetic minor soutee

permit application under EPA's Tribal M.hlOr NSR Rule. lfRespondent determines that an

emission source was incorrectly u\cluded in Appendix A, Table A-I, it !nay notify EPA of that

fact by October 14,2011. In this clrcwnstnnce, Paragraph F.13 below shaH apply.

b. By October 1. 2011, Respondent shall submit to EPA a complete synthetic minor source permit

application for New Emission Sources listed in Appendix A, Table A-2 that wiU commence

eonslnletion during the period starting August 31, 20 II, and ending December 31, 20 I!.

c. By November 1,2011, Respondent shall submit to EPA a complete synthetic minor source

pennil application for New Emission Sources listed in Appendix A, Table A-3 lhat will

commence construction during the period starting January 1,2012, WId ending March 31, 2012.

d. By January 1,2012, Respondent shall submit to EPA a complete synthetic minor source penni!

application for New Emission Sources listed in Appendix A, Table A-4 tbat will commence

construction during the period Slarting April 1,2012, and ending June 30, 2012.

c. Any emission sources for whicb construction will commence after June 3D, 2012, arc not subject

to this Agreement nnd Respondent must oblain an effeetive synthetic minor source pcrmilfrom

EPA or comply with the provisions of40 C.r-.R. § 52.21 prior to commencing construction.

f. [oC!USiOD ofan emission source listed in Appendix AI Table A-2, A-3 or A-4 docs nol preclude

Respondent from commencing construction ofthat emission source after the date specified in the

relevant Paragraph D.l.b,c, and d above. However, all such emission sources must commence

construction prior to June 30, 2012.

g. lfthosc emission sources listed in Appendix A. Tables A-2, A-3, and/or A-4 do not commence

construction by June 30, 2012, then they are therefore Dot subject to Section 0 ofthis

Agreement.

3
2. Control Requirements

a. For all Existing Emission Sources listed in Appendi.x A, Table A·l, the Respondent ~halJ comply

with. the requirements ofAppendix B by no later than December 1,201 1.

b. For all New Emission Sources listed in Appendix A, Tables A·2, A-3, and A-4 the Respondent

shaU comply with the requirements ofAppendix B UpOD start-up of production. Emission

sources that receive an effective synthetic minor source pennit before commencing construction

are not subject to the requirements ofthis Agreement.

3. Nolillcation

Respondent shaU notify the EPA on the last business day of each month of aJ I ofthe emission

sources subject to this Agreement that commence construction in the previous month. Respondent shall

also notify the EPA whether those emission sources are meeting the control requirements as required by

Appendix Band whether they have received an effective synthetic minor source penniL This notice

sball also include a list ofemissions sources that are removing a 98% control device and using a 90%

control device as outlined in Appendix B.

Unless otherwise-specified bercin, wbenever Respondent's notification, submissions, or

communication are required by this Agreement, they shall be made electronically or mailed to the

following;

Cymhia J. Reynolds, Director

U.S. EPA Region 8 (8ENF-AT)

Air & Toxics Technical Enforcement Program

1595 Wynkoop St.

Dcnver, CD 80208-1129

revnolds.cynthia@epa.gov

E. CIVD..PENALTY

t. Pursuant to an analysis ofthe facts and circumstances ofthis case with the statutory factors described in

seclion 113(d)(1)(B) ofthe CAA, 43 U.S.C. §7413(d)( 1)(8), EPA has determined that an appropriate

civil penalty to settle this action is the amount of$3,OOO per emission source listed in Appendix A tor a

totalof$38I,OOO.

2. Respondent consents to the issuance oia Final Order and consents for the purpose ofsettlement to the

payment ofthe civil penalty in the manner described below in this paragraph:

a.. Payment is due within 90 calendar days from the date ofthe Final Order, to be issued by the

EPA's Regional Judicial Officer, tbat adopts this Administrative Complaint nnd Consent

Agreement. lfthe due date falls on a weekend or legal federal holiday, then the due date

4
becomes the next business day. The date the payment is madc is considered to be the dute

processed by the Bank described below. Pa.yments received by 11 :00 AM are processed on the

next business day.

b. The payment shall be made by remitting a cashier"s or certified check, including the name and

docket number ofthis case, for the calcuJated tUDount, payable to "Treasurer. United States of

America,." to:

CHECK PAYMENT:

US Environmental Protection Agency

Fines and Penahies

Cincinnati Finance Center

PO Box 979077

SI. Louis, MO 63197-9000

OVERNIGHT MAIL:

U.. Bank

1005 Convention Plaza

Mail Stalion SL-MO-C2GL

SI. Louis, MO 63101

Contact: Natalie Pearson

314-418-4087

WIRE TRANSFER:

Wire Transfers should be directed to the Federnl Reserve Bank ofNew York

Federal Reserve Bank of New York

ABA 021 030004

Aceount 680 I0727

SWlFT address = FRNYUS33

33 Liberty Street

New York, NY 10045

Field Tag 4200 oflhe Fedwire message should read AD 6801727 Environmental Protection

Ageucy

ACH (also known as REX or remittance express):

Automated Clearinghouse (ACH) for receiving US cwrency

PNC Bank

808 17lJl Street, NW

Washingtou, DC 20074

Contact B Jesse White 301-887-6548

ABA = 051036706, TrallSlletion Code 22- checking

Environmental ProtccLioIl Agency, Account 310006, CTX Fonnat

s
ON-LINE PAYMENT:

There is now an On Line Payment Option, available through the Dept. ofTreasury. Tbis payment option

can be accessed from the information below:

www.pay.gov

Enter sfa 1.1 in me searcb field Open form and complete required fields.

A copy oflbe check, or wire ttansfer, sbaU be sent simultaneously to:

Alexis North (8ENF-A1')

U.S. EPA Region 8

Technical Enforcement Program

1595 Wynkoop St.

Dcnver, CO 80202·1129

and Tina Artemis

Region.1 Hearing Clerk (8RC)

U.S. EPA Region 8

1595 Wynkoop St.

Denver, CO 80202-1129

c. Payment oflhe penalty in this manner does not relieve Respondent arits Obligation to comply

with the requirements ofthe CAA and its rcguJations.

F. GENERAL PROVI IONS

1. The emissions controls required in Appendix 0 wIder this Agreement shall be considered ·'fcdera.lly

enforceable" and~ ilS applicable, "legally and practicably enforceable" for purposes of caJculating the

potential to emit for the emission sources covered under this Agreement.

2. FaiJurc by Respondent to Limely apply for. and ultimately obtain, the synthetic minor permit for any

emission source identified in this Agreemenl or to comply with the requirements ofSection 0 and

Appendix B shall render any release or salisfilction ofliability afforded under this Agreement null and

void as to thatsource.

J. Nothing in this Agreement sbaU be construed as a waiver by the EPA or any other federal entity Dfits

aulhority lO seek costs or any appropriate penalty associated wilh any collection action instituted as a

result ofRespondent's faiJure 10 perfonn pursuant to the tcnns ofthis Agreement

4. Once the Respondent has received a synthetic minor source permit from EPA for the emission source

identified i.n Appendix A. IUld that permit hus become co-cctive, the tenns oflhnt pcnnitsupersede this

Agreement

5. For all Existing Emission Sources listed in Appendix A, Table A·t. Respondent's submission of a

complete synthetic minor source pennit application will constitule compliance with the relevant eM

provisions during the period ofUris Agreement.

6
6. For all New Emission Sources listed in Appendix A, TablcsA·2, A-3, and A-4, compliance with the

relevant eAA provisions requires that Respondent; a)obtains an effective synthetic minor source pennit;

b) is subject to an EPA approved Federal Implementation Plan which allows for a permit by rulej or c)

complies willi a new EPA applicable CAA regulation that removes them from PSD applicability.

7. Notwithstanding the tenns oftb.is Agreement, the Respondent must meet any other applicable

requirements ofthe Act or its implementing regulations.

8. Respondent agrees tbat for any emission source operated without the controls required by this

Agreement, except for instances ofmalfunctioll, Respondent is in violation ofthis Agreement.

Malfunction shall be defined as any sudden, in.frequent, and not reasonably preventable failure of air

pollution control equipment, process equipment, or a process to operate in a normal or usual manner,

caused by circumstances entirely beyond the control ofthe owner or operator, but shall not include

failures that arc causcd in whole or in part by poor maintenance or careless operation.

9. Respondent agrees that any emission source whose actual emissions have exceeded 250 tons per year is

nol covered by this Agreement, including any emission somee listed by the Respondent in Appendix A.

1.0. Each undersigned representative ofllie EPA and Respondents (parties) to this Agreement certifies that

be or she is fully authorized by the Party represented to bind the Party to the terms and conditions ofthis

Agreement and to execute and legally bind that Party to th.is Agreement.

ll. The Parties agree to submit this Agreement to the Regional Judicial Officer, with a request tl18t it be

incorporated into a Final Order.

12. The lenns, conditions, and compliance requirements ofthis Agreement may not be modified or amended

except upon the wrinen agreement of both parlies, and approval ofa Regional Judicial Officer.

13. lfthe RC5pondcnt., pursuant to Pamgraph D.I.a, above, wishes to amend the list of emission SOurces in

Appendix. A, Table A-I, it shall submit those suggested changes to EPA for approval. lfEPA agrees

witb the suggested changes, the Parties will submit an amended Agreement to the Regional Judicial

Officcr for incorporation into a revised Final Order.

14. loe effective date ofthis Agreement is the date that the Final Order is signed by the Regional Judicial

Officer.

15. This Agreement, upon incorporation iuto a Final Order by the Regional Judicial Officer and full

satisfaction by the Paruesl shall be a complete, full and final settlement ofthe violations alleged in this

Agreement.

16. Each Party shall bear its own costs and attorneys fees in connection with all. issues associated with this

Agreement.

7
t: /h.+ .11

UNITED STAT ENVTRO MENTAL

PROTECTION AGENCY REGION 8,

Complainant.

/fU1UCC:W M. Gayd s11

Assistant Regional dministrator

Office ofEnforc m nt o:mpliance and

Environmental Justice

P ROY MP Y

Respondent.

y: ( ....

. B. tanley

President
APPENDIX A

EM15SIO SOURCE INVENTORY

TABLE A·l: Existing Emission Sources (commented c(lnstructlon by August 30.2011)

Wen Site casing H ~d [rank Baltl!ry

SOURCE Comple 11 COntrol! dor ( n,he-dlU iT~k 8attery Control O.,v1Ce

,oENT'FICAnON IJllltudl.' Longftude SEOlON TOWNSHIP RANGE D~ c..Plu~d cor'luoldmtl! (ontroloevice tnstall date

J-16-60 47.7"751S 102.505592 31 150 92 6/1{2010 apn,red lIfound :flare 'P.Jound Olt flare 11/01/11

1-16-61: 41.747291 -102.365626 6 149 92 9/~{20lD caJltlJred 'ltroutld~ tllll"" rumsnd olilliire 09/18/11

2-16-6E 47.74735S -102.366303 6 149 92 9/19/2010 C3lltU'eO gfound tlliire ground pltflare 09}18/11

1-4-51 47.587337 -102.435301 5 147 92 6/23f2011 ttlnlfoned KrOund Il.ite ,round ptl flare 11/14/11

2-4-5J 47.587386 -102.434169 5 147 92 7/5/20'11 controlled Rround p I flare KJ'ound pit flare 11/14/11

1-3-1SC 47.816000 -102.249930 18 150 90 10/7f2009 captured ,round pit flare &found pit flare 09/28/11

1-14-4C 47.833951 -102.204545 4 150 90 9/21{2010 aptured 'Rround pit flare Eround pil lfare 10/24/11

1l-l3-181; 41.804898 -102.251996 18 150 91 5/7f2010 Cllptured ground pit flare ,round ph flare 10/1S/11

1-4-8F 47.145836 -102.232235 8 149 90 12/17/2009 captured Rround ollllare around oil flare 10/14/11

1-1-'32C 47.n4689 -102.216086 32 150 90 2/6/2011 aptured Rround pit flare ground pit flare 10/08/11

l-l6-32C 47.761611 -102,116617 32 150 90 3/18f2011 caDl1,1re(l Rround alt flare RrOtIl1d ott flare 10/05/11

L-ll-18C 47.80S4A6 -10".251996 18 150 90 11/21/2.010 captlJrct! £round lilt Rare ground pit flare 10/21/11

2-16-3.2C 47.761725 -102,216617 32 ~49 90 S/30!2011 c;aph,ircd ground pit Rare ground pit lIare 10/05/11

1-8-29C 47.783313 -t02.215975 29 150 90 S/19/2011 c;aplUred wound pit flarl! ground ph: flare 10/12/11

1-4-23 47.945988 -102.44906"3 35 152 92 6/l{2010 allfured Braund pit flare ground pit lIare Ul30/11

1-4-21 47.965055 -102.451226 27 152 92 3/30{20U c;aptl,lred ground p fl~!e ground plt flare Ul30/11

1-7-6F 47.755261 -102.245428 6 149 91 S/30/20J1 Glplured Ilfound oi flare .f[round pil flare 09/25/11

1-16-328 41761652 -102.3413555 32 149 91 10/:/2011 captured vOUlIdplt <lre ground pJt are 09/15/11

l-l6-3ZB "l1.761n7 -102-34!555 32 149 91 1.0/1/2011 apturetl uoundpi are grol,lnd pet liar>! 09/15/11

3-16-328 047.761883 -102.343555 32 150 91 1011,/2.Q11 capwrell Rroood pi oil! ground pIt ",e 09/15/11

4-16-328 47.761766 -102.343.555 32 150 91 10/1/2Dll QlItured uoumlPlt are I!round lilt are 09/15/11

1-15-6f 47.741~5 -102.242185 6 150 90 8/27J1Dll aplured groundprt :lire ground pllllare 08/24/11

2-15-6~ 47.747045 -102.24-2357 6 150 90 9}8{2011 aDll,lred It"QtII\d lilt ~I! aroun!! pitR.re 08/24}U

TABLE A-2: New EmIssIon Sourc.es commenting construction between August 31, 2011 and Decembler 31 201 ) .. 1

&peeled

SOURCE COmmence

IDENTlFICAnON SECTION TOWNSHIP RANGE Construction Date

t-6-32G 32 148 92 12/15/11

2-6-32G 32 148 92 12/15/11

l-ll-BC 18 150 90 11/15/11

l-ll-8e 18 150 90 11/15/11

Z-8-6E 6 149 91 l!/15/11

t-8-6f 6 149 91 U/15/11

2-t·5F 5 149 90 11/15/11

lot-Sf 5 149 90 11/15/11

'I
TA.BlE A-3: New EmIssion Sources (commencIng construction between January 1, IOU and March 31, IOU)

3/11/12

3/11112

J 11 12

]/11/12

0]/15/12

03/15/12

.m

03/31112 In"''''

03/]1/12

00131/12

"

"

"

"

"

"

"

'"

"

'"

OJ

"

"

"

'"

"

"

"

"

"

"

"

El¢Ie(ltd

Comme"ce

RANGE COMtruetion O~le

11/12

1/11/11

1/11/12

2/u/12

2/11/12

>lUlU

>lUlU

2!U 12

3. 11 12

3/11/12

]/11/12 ". ".

""

'"

".""

... ""

,

""..

""

m

"....

""

... ""

""

'"

""

'"""

TOWNSHIP

"

"

"

"

"

,

"

,

"

,

"

"

,

"

,

"

"

"

"

"

"

"

semON

SOURCE

IDENTlflCAOON

2·16-J4

H&-3.6

t-I6-36

6-16-318

2-16-31&

1-12-SH

1-16-318

]..l6-Sf

4-15--318

i-16-SF

1·16-J111

4-16-31G

H2·SH

5-16-318

2-16-5F

3-16-]18

2-16-31G

m.t6-]1B

3·1&-31G

!H&-]llJ

1-1o-31G

1·1&-316
TABLE A-4: New Emission 50un;e$ (commencing construction betwt>en April!, 2012 and June 30, 20121

SOURCE

100000FICAnON

2-4-26E

1-4·26£

2-13·26£

3-13-26E

-=--l)·26E

5-U-Z6E

&-1l-26E

7·13-26E

8-13-26E

9-U-26E

lo-13·26E

11-l3-26£

ll·U-26E

2·.s-2~

1·27A

lo-5-1OE

3-5-3K

4·5-lor

4·1·28G

2·5-J:JC

75-IOE

3-1-286

.<-·ll-4E

H'·1JC

I-S-IOE

2-1-286

g..S-IOE:

1-12-<1[

1·1·28G

3-5-10(

U·5-WE

&-S-IDE:

1-4-1SE

I·S-llF

2-4-3SE

U-S-1O£.

4-<1-]SE

S-S-IOE

S-4.-l5E

1·4·26G

"cno' TOWNSHIP

,.

,.

,.

"

"

"

"

"

"

"

"

"

"

"

"

10

"10

"

"

10

"

•

"10

"10

•

"10

10

10

"

"

"

10

"10

"

"

"""'. """"""" RANGE Cooltructlon D.le

149 91 04/15/12

WJ 91 05/15/12

149 91 1S/12

16 91 0!>/15/1l

149 91 0S/15/12

1'9 91 OS/lS 12

149 91 0S/15/1l

149 91 0 15/12

149 91 0S/15/l1

149 91 05/15/12

149 91 05/15/ll

149 !H 05115/12

1"9 91 OS/IS 12

LSO 90 06/15/12

ISO 92 06/15/12

149 91 06/1S/12

150 90 06/IS/12

149 91 06115 2

1"8 92 06/15/12

150 90 IS 2

149 91 06/15/n

1"8 92 OWlS/n

149 91 06/15/12

LSO 90 06/15 12

U9 91 0Ei/l5/U

lQ 92 06/15/12

1"9 91 06/15/12

1t9 91 06/1S/11

148 92 06/15/12

149 91 OEi/15/U

149 91 OEi/15/U

1"9 91 D6/lS/12

U9 91 06/15/12

148 90 06/15 12

149 91 06/15/12

149 91 06/15/12

U9 91 06/15/12

149 91 06 15/11

1"9 91 15/12

IQ 92 06/15/12

II
TABLE A-4 conunued

up,,'"

""'''' (ommenUi

100000flUlnoN ,,,n,,,, UlWHSHIP ....., CDnlitnKtion DIOI'"

a-....1OE

'" '" " 6/29/1214.'1'>E " '" " 6/29/12

,~,.. " '" " 6/29/12

2·....10£

" '" " 6/29/12 ....,.. " '" " 6/25J/12

«-lOG " '" " 6~/12

!l-13·3D 3 ... " 6/2912

10.-13-30 , '" " 6f2<J/12

1l·l3-30 , '" " 6/'M112

12-13-30 , ... " "'"/U HHO , '" " f,J25J/U

1·13-30 , ... " 29/12

4·13-30 , '" " 9/12

2·13-30 , '" " 6/29/12

1·16-23G n '" " 6/29/12

2·16-13G n '" " 6/29/12

3-16-13G n '" " 6/19/12

4-16-2J;G " '" " 6/29/12

HHO ,

6-13·30

'" " '"

, '" " 6~/12

'~80 , '" " 6/29/12

'~30 , '" " 6/29/12

1·13-24G " ," " , 9/12

2·13-24G

" '" " 6/29/12

3-13-24G " '" " 6~1U

4--13-24G " '" " 6/29/12

1~!6-24G " '" " 6129 121

2·16-24G " ,.. " 6/19/12

3-1f.·24G " ,.. " 6/19/12

4-16-2((; " '" " 6/2'I/U

2-1£.21 11

'" " 6/19/12

3-16-21 " m " 9/12

2_14-328 " "0

" 6/1:9/12

1-14-328 " '" '" 6/29/tl

1:'-
APPENDIXB

EMISSION CONTROL REQULREMENTS

A. Applicability

These requirements apply to existing and new emission sources associated with oil production from

the Bakken Fonnation on the Fort Berthold Indilln Reservation in North Dakol<1 and target the control

of casinghead gas emissions (also known as treater gas) and emissions from oil and produced wnter

storage tanks (tanks).

B. Control Requirements

All casinghead gas and tank emissions must be controlled or captured upon start ofproduction. If

gas gathering infrastructure is in place, casinghead gas shall be routed [0 II gas gathering pipeline as

soon as practicable. When a pipeline is not available, casinghead gas is required to be routed to II

control system or device in the Control System List below. The Control System List also applit:s to

emissions from oil and produced water storage tanks. Capture or control devices shaJl be operated at

all times when emissions may be vented to them.

The owner/operator shall maintain and operate all nir pollution control equipment, and all ~quipment

employed to cOlltain and collect vapors and transport them to the emission control system or device,

in accordance with the manufacturer's recommcmlations and in a manner consistent with good air

pollution control practice for minimizing emissions.

Control System List

1. A ground pit nare (including, but /lot limited to pit flu res, shop buill flures or other similar

oilfield type flares) or other 90% or greater ORE device. If a ground pit flare is utilized, a

90% ORE \0 be assumed, This is considered the minimum level or comrol for U!nk und

treater gas emissions at all times.

2. A vapor recovery unit or oil stabilizer that is designed and operated to reduce the mass

content of voe and total hazardous air pollutant (HAl») emissions in the vapors vented to the

device by at least 95% by weight.

3, An enclosed combustion device appropriately sized for the site's operating parameters and

for whieh the manufacturer represents will achieve a destruction efficiency of at least 95% of

the VOCs with respect to the volumetric flow and BTU content of the site's waste gas

stream. An enclosed combustion device is operated including. but not limited to the

following:

• This device should be operated with no visible emissions except for periods not to

exceed a total of 5 minutes during nny 2 consecutive hours; Method 22 of40 CFR

Appendix A shall be used to determine the compliance with this visible emission

prOVISIon,

13
• Owner/opcrJtor shall install an appropriate. reliable temperature scnsorltransrniucr

that indicates continuous ignition of the pilot flame on the control device. The

sensor/transmitter will be connected to the site's Supervisory Control and Dam

Acquisition (SCADA) System. The SCADA system will record temperature readings

al ::I specified frequency and will be programmed to trigger an alarm iftemperatures

outside of a pre-programmed range are detected. For the purpose ofthis paragraph,

"continuous" monitoring equipment shall measure and record values at least once

every hour.

4. A utility flare (using an open flame without enclosure) that is designed and operated to

reduce the mass content ofvOC and total HAP cmissions in the vapors vented to the device

by at least 98% by weight. A utility flare is any flarc that is designed and operated in

accordance with the requirements of40 C.F.R § 60.18. Requirements of40 C.F.R § 60.18

include. but arc not limit~d to the rOJluwing:

• Flare shall be designed and operated with no visible emissions except for periods nOl

to exceed a total of 5 minutes during any 2 oonsecutive hours: Method 22 of40 CFR

Appendix A shall be used to determine the compliance with this visible emission

provision;

• Flare ,shall be operated with a Aame present at all limes;

• An owner/operator has the choice or adhering to either the heat content specifications

in paragraph 40 C.F.R. § 60. I8(c)(3)(ii) and the maximum tip velocity specifications

in paragrllph (c)(4) or adhering to the. requirements in 40 C.F.R. § 60.18(c)(3)(i);

• Flares used to comply with this section shall be steam-assisted, air-assisted or

nonassistcd;

• Owners/operators of flares shall monitor the control devices to ensure that they are

operated and maintained in confonnancc with their designs;

• The presence of a flare pilot flame shaH be monitored using a thennocouple or any

other equivalent device to detect the presence of n flame. Continuous checks by un

operator to verify the existence of a visible flame or to verify proper operation ofthe

igniter may be used in lieu of a physical device. For the purpose orthis paragmph,

"continuous" monitoring equipment shall measure and record values at least once

every hour.

• For safety und air pollution control purposes: each flare must be equipped and

operated with an automatic ignitor or a continuous burning pilot, which must be

maintained in good working order. This is required even ifthe flare is used for

emergency purposes only.

5. Control devices other than those listed above may be utilized upon approval from the EPA.

C. Recordkccping Requirements

I. Owner/operator shull maintain control device temperature logs for three )'ears.

14
CERTIfICATE Of SERVICE

The undersigned ccniJies that the original orthc <)lulched ORJ>ER GRANTrNG

ELECTlWNIC FILING OF CONSENT AGREEMENT AND FINAL ORDER in the

matterofQEl' ENERGY COMI'ANY, DOCKET NO.: CAA-08-2011-0026, was filed with

the Regional ffearing Clerk on August 29, 20 II.

Further. the undersigned certifies thm a true and correct copy of the document was

delivered 10 Jim Eppers. EnJbrcemcnl Anomey. U. . EPA - Region S. 1595 Wynkoop Street

Denver. CO 80202·1129. True and correct copies of the aforementioned documents were

plnccd in the United Stutes mail all August 29, 21011. to:

Eric L. Dady

Vice-President & General Counsel

QEI' Resources, Inc.

1050 17'" Street. Suite 500

Dellver. Co 80265

And cmailed to:

Elizabeth Whitsel

U. S. Environmental Protection Agency

Cincinnati finance Center

26 W. Martin Luther King Drive (MS-0002)

CincinmHi. Ohio 45268

AugUSl 29, 201 1 ~~Tina Artemjs

PamlcgallRcgionaJ IIc.:aring Clerk