### United States Environmental Protection Agency, Region 9

NHPA Project Description Summary

McElmo Creek Unit Oil Production Facility, PSD Permit No. NU 05

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## National Historic Preservation Act Section 106 Consultation Project Description Summary

McElmo Creek Unit Oil Production Facility

Proposed Amended Clean Air Act Prevention of Significant Deterioration Permit

PSD Permit No. NU 05

- 01

September 30, 2015

I NTRODUCTION

The United States Environmental Protection Agency

, Region 9 (EPA) is acting on a n application

for a n amendment to a Clean Air Act Prevention of Significant Deterioration (PSD) air quality permit , in accordance with the Clean Air Act and the PSD air qual ity regulations (40 CFR 52.21), for the gas flare (called the “ Main Flare ”) at the McElmo Creek Unit Oil Production

Fa cility (MCU Facility or Facility ), an existing oi l and gas production operation. Pursuant to

Section 106 of the National Histori c Preservation Act (NHPA)

, 54 U.S.C. §100101 et seq

. , and its implementing regulations at 36 CFR Part 800, prior to issuing the permit amendment , EPA is required to take into account the effects of its undertaking (e.g. issuance of a permit amendment ) on historic properties listed in or eligible for inclusion in the National Register of Historic Places.

Consultation with the State Historic Preservation Officer and/or the Tribal Historic Preservation

Officer is required for all undertakings that have the potential to affect historic properties. Section 106 consultations assess whether historic properties exist within an undertaking’s area of potential effect s (APE) and, if so, whether the undertaking will adversely affect such properties. The term “historic properties” means prehistoric or historic districts, sites, buildings, structures, or objects included in, or e ligible for inclusion in, the National Register of Historic Places maintained by t he Department of the Interior. The EPA is the lead feder al agency for this undertaking. As such, EPA must meet its NHPA Section 106 obligations for this project prior to issuing a final permit decision.

D ESCRIPTION OF THE U NDERTAKING

EPA’s undertaking

, as defined in 36 CFR 800.16(y) and which triggers the application of the

NHPA

, is the issuance of an amended PSD air quality permit (PSD Permit) for the Main Flare at
the MCU Facility

. While the Facility is an existing oil and gas production operation located on the McElmo Creek Unit oilfield in San Juan County, Utah, EPA’s action is focuses on the existing Main Flare

, which is used to control pollution from the operation of the MCU Facility

.NHPA Cultural Resources Summary McElmo Creek Unit Oil Production Facility, PSD Permit No. NU 05

- 01 Page 2 The MCU Facility is located in Section 31, Township 40 South, Range 25 East within the Four

Corners a rea on the Navajo Nation Reservation near the city of Aneth, San Juan County, Utah. (S ee Figure 1

. ) The MCU Facility is also locate d on the McElmo Creek Unit oilfield, which is one of four oilfield units in the greater Aneth oilfield on the Navajo Nation R eservation in southeastern Utah. (S ee Figure 2. )

Figure 1 : Location of McElmo Creek Unit Oil Production Facility

The MCU Facili ty started operation in the 1950s and was owned by Superior Oil at the time. Mobil Exploration and Producing U.S. Inc. (Mobil) purchased the Facility in 1984. Resolute Natural Resources Company (Resolute), in partnership with Navajo Nation Oil and Gas

Co mpany, acquired Mobil’s ownership interest in April 2006 and assumed operation of t he Facility on June 1, 2006.

The field operations located on the McElmo Creek Unit oilfield consist of approximately 90 producing wells where petroleum crude oil is recovered from producing strata, brought to theNHPA Cultural Resources Summary McElmo Creek Unit Oil Production Facility, PSD Permit No. NU 05

- 01 Page 3 surface to be stored at either a satellite or a tank battery. There are eleven satellites that function

as testin g facilities for producing wells and four tank batteries. T he gas compression plant is used to support tertiary recovery of crude oil in the McElmo Creek Unit oilfield , and includes the

Main Flare

.

EPA’s PSD Permit a ction is to incorporate pollution l i mits, terms, and conditions of a federal Consent Decree ( United States v. Mobil Exploration and Producing U.S. Inc. , Case No. 2:05

- CV

- 319, filed June 8, 2005) for the Main Flare at the MCU Facility’s gas compression plant. These pollution limits, terms, an d conditions include Best Available Control Technology (BACT) emission limitations for nitrogen oxides, carbon monoxide, sulfur dioxide, and volatile organic compounds for the Main Flare

.

Figure 2: Oil field U nits in the Aneth Oil Field

(Source: Resolute Natural Resources Company)NHPA Cultural Resources Summary McElmo Creek Unit Oil Production Facility, PSD Permit No. NU 05

- 01 Page 4 Additionally, EPA is amending the permit to remove certain equipment, and the applicab le permit requirements that apply because this equipment has been shut down and removed from

the site

. Other than the potential replac ement of a n existing fan to provide better pollution control

at the Main Flare , EPA’s amendments to the PSD permit do not authorize any new construction or modification of existing equipment at the MCU Facility.

On October 15, 2014, EPA issued the amend ed PSD Permit for public comment. A final permit decision will be issued following completion of the Agency’s NHPA Section 106 consultation

process.

A REA OF P OTENTIAL E FFECTS

Since the EPA’s permit action does not authorize any new construction or modification of existing equipment at the MCU Facility , other than potential replacement of a n existing fan at the Main Flare, this action is not expected to result in any new ground disturba nce or change in operations at the MCU Facility. As such, in cons ultation with the Navajo Nation Historic

Preservation Department (NNHPD) , the APE for this project consists of an area within a 2 km (1.2 miles) radius around the Main Flare as shown in Figure 3

.

Figure 3: Map of 2 km Area of Potential Effects for MCU Fa cility

H ISTORIC P ROPERTIES & C ULTURAL R ESOURCES WITHIN THE A REA OF P OTENTIAL E FFECTS

Resolute Natural Resources, LLC

, contracted with Dinétahdóó Cultural Resources Management (DCRM) to identify histo ric properties, as defined by the NHPA and its implem enting regulations, within the APE of 2 km of the Main Flare. DCRM’s assessment of historicNHPA Cultural Resources Summary McElmo Creek Unit Oil Production Facility, PSD Permit No. NU 05

- 01 Page 5 properties, dated September 2, 2015 (DCRM Report) , is provided as an attachment to this Cultural Resources Report document

.

Prior to conducting the fieldwork, DCRM examined records at the NNHPD office in Window Rock, Arizona, to determine whether cultural resources inventories had been performed within the project area. DCRM identified fifty (50) previously recorded archaeological sites within the

APE based upon a literature search conducted at the NNHPD records room. These specific sites

are described in the DCRM Report. None of these sites were determined to be listed in the National Register of Historic Places maintained by the Department of the Interior. Unde r the NHPA Section 106 and 36 CFR 60.4, cultural resources may be eligible for nomination to the National Register of Historic Places if they are more than 50 years old and “possess integrity of location, design, setting, material, workmanship, feeling, an d association.”

Between May 21 , 2015 and June 3, 2015, DCRM conducted fieldwork which consisted of

cultural resource assessments of the historic and in

- use properties within the APE. DCRM identified and evaluated thirteen (13) historic structur es and nin e (9) in

- use sites. These specific

historic structures and in

- use sites are provided in the DCRM Report. N one of these sites were determined to be in the National Register of Historic Places maintained by the Department of the

Interior.

C ONCLUSION

Based on the accompanying information and the opinions already offered by the NNHPD regarding this project, EPA has determined that issuance of the amended PSD Permit for the

Main Flare will have no effect up on historic properties within the APE.