UNITEIl STATES ENVIRONMENTAL I'ROTECTION AGENCV

REGION 8

1595 Wynkoop Street

DENVER, CO 80202-1129

I'hone 800-227-8917

http://www.epa.gov/region08

MAY 16 2012

Ref: 81'-AR

CER riFlED MAIL -RETURN RECEII'T REQUESTED & ELECTRONIC MAIL

Avon D. Cooper

HES Professional

Marathon Oil Company

3172 Highway 22 North

Dickinson, North Dakota 58061

RE: Request for Information Pertaining to Emissions

Control Equipment at Oil and Gas Production Facilities on

thl.' Fon Berthold Indian Rcscrvution

Dear Mr. COOpt'f.

As you know, the Environmental Protection Agem:y (EPA) is expediting the d(,.'vt..'lopm~nt ora

Reservation~specificFederal Implementation Plan (Fir) to establish federally enforceable requirements

to control volatile organic compound (VQe) emissions from oil and gas production activities (i.e.

storage tank and heater-treater emissions) within the exterior boundaries of the Fort Berthold Indian

Reservation (FBIR) in North Dakota. The EPA's action would require owners and operators of oil and

gas well production facilities to reduce VOCs released during the extraction and slOrage of hydrocarbon

reservoir fluids prior to being transferred ofl'site for sale or treatment.

As part of our effort to develop federally enforceable requirements under the FIP for oil and gas

prodllction li.t<;ilities. the EPA is evaluating VOC emission control technologies employed by operators

on the FBIR. The agency is requesting information that will allow us to determine the associated cost

impacts of the proposed emission control requirements.

This information request pertains to Marathon Oil Company's (Marathon's) operations on the FBIR.

Please submit the information requested below for Marathon's oil and gas exploration and production

facilities located on the FBIR:

I. Please provide the average cost incurred to develop a synthetic minor permit application for an

oil and gas exploration and prodw.:tion facility on the FBIR.

2. Pl~asl' PI'O\ iek Ill(: average COS I incun'!:d on an annual basis fell' eal'h of lhe following 1~ pes of

I.:ontrul equipment:
a. A pit Flare capable of achie\ ing 90l}o VOC destruction efficiency:

b. A utilil) nare that is manufacturer certified for 98% VOC destruction efficiency or compliant

with the requirements for such flares at 40 CFR 60. I8(b);

c. An enclosed combustor that is manufacturer certified for 98% VOC destruction efficiency;

d. An auto-ignition system that includes, an electronically controlled ignition device,

continuous recording device, malfunction alann, and remote notification system to ensure the

continued presence of a pilot flame during operation;

e. A continuous pilot flame system that includes a thennoeouplc. continuous recording device

malfunction alann. and remote notification system to ensure the continued presencc ofa pilot

flame: and

r. A \ apor rcco\ cr~ S)stem (VRU) for capturc and rccoyery ofstorage tan" gases.

3. 1>lcasc describe the source of the data and the methodology used in calculating items 2(a)

through 2«(). The average annual cost incurred should include, but is not limited to, the following

list of cost elements:

a. The total capital investment (TCI) cost. which includes but is not limited to. the capital cost

for the primary control device. auxiliary equipment and instrumentation. piping. perfonnance

testing. associated utilities. engineering and system design. freight. site preparation.

foundation. construction and field expenses. installation. etc.:

h. I he operation and maintenance (O&M) cost (equipment. pilot fuel. etc.):

c. The annualized labor costs such as salary and benefits associated with

lllonitoring/rccordkeeping/reporting requirements and O&M activities; and

d. The annualized non-labor costs such as office supplies, vehicle costs. and infonnation

technology.

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

accumulating.

4. For each piece of equipment identified in 2(a) Ihrough 2(t). please provide the expected life for

each component. Any costs associated with maintenance over the life of the unit should be

annualized and Included as part of the annual O&M costs reported.

5. Please prO' idc the a\erage cost associalcd \\ilh the sale ofreco\ crable product from a VRU.

Due to the expedited development ofthe FIP. your prompt cooperation is appreciated. We request that

this infonnation be provided to the EPA within 14 calendar days ofreceipt as indicated by the earlier of

certified receipt or electronic email for rhis letter. Electronic submission is preferred. Please submit

your response to Eric Wortman at wortman.eric@epa.gov.

We request that a duly authorized officer or agent of Marathol1 certify as true, accurate, and complete

the response to this information by signing the enclosed Statement of Certification (Attachment A) and

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

make such representations on behalf of Marathon.

Pursuant to 40 C.F.R. Part 2. Subpart B, Marathon is entitled to assert a business confidentiality claim

covering any part of the submitted information. Attachment B specifies the assertion and substantiation

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

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

Freedom of Information Act, 5 U.S.C. Section 552. Information subject to a business confidentiality

claim may only be made available to the public in accordance with 40 C.F.R. Part 2, Subpart B.

It is thl' EPA's understanding that the a\crag<.· emission control device cost dat:1 lor all or Mawthon's

Ith:ilities on the FBIR \\illlikel) not be entitl.:d to conlidentiallreatment as opposed to specilic cost dat~l

lor L"i.lch facilit). Ir) ou do claim cunlidcntialit). \\1,' rt'qllcst that yOlI submit that portion of thl' n..·...p()n~c

(onl) that spec:ilic portion for \\hich ~Oll an: claiming conlidcntial treatment) s.:paratel) from all other

information.

Also enclosed with this Request ror Information is a Small Business Regulatory Enforcement and

Fairness Act (SBREFA) inforn18tion sheet (sec Attachment C).

The requirements of this letter are not subject to the Paperwork Reduction Act of 1980. 44 U,S.C. *350 I

et seq.

Il'tht inlormation requested in this ktter has previously been submitted to the EPA. please kt LIS kno\\.

\\\: appreciate your cooperation in this maIler. If you have any questions please contact Eric Wortman.

of my staff. at 303-312-6649.

Da

Carl Daly, Director

Air Program

l:l1l'losun.'s

cc: Curtis Ryland, Operations Manager, Marathon Oil Company

o

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*Prin/ed Oil Recycled I'opel'
Attachment A

STATEMENT OF CERTIFICATlO

I certify under penalty of lav.., that I have personally examined and am familiar with the infonnation

submined in this document and all attachments and that. based on my inquiry of those individuals

immediately responsible for obtaining infonnation. I believe that the infomlation is true. accurate. and

complete. I am aware that there are significant penalties for submitting false infonnation. including the

possibility of fine or imprisonment.

Signature

ritle

Date
Attachment B

Confidential Business Information (CDI)

Assertion and Substantiation Requirements

1. Assertion Requirements

You may assert a business confidentiality claim covering all or part of the information requested in the

attached letter. as provided in 40 C.F.R. §2.203(b). Ifpol1ions ofa document have C131 dairns. then

please provide a redacted version that would remove any CB! infomuuion. To make a conlidcntiality

daim. ~lJbmit th~ n.:qul.:stcd infol'll'HHion and indil:a1L' that you arc making a claim of confidclltinlity. Any

document 0\ t:r which you make a claim uf conlidentiality should be marked by placing on or allaching

to thc intormation. at the time it is submilled to U.S. EPA. a cover sht:et. stamp~d or typed legend, or

other suitable form of notice employing language such as "trade secret" or "proprietary" or "company

confidential" and a date if any when the information should no longer be treated as confidential.

Information covered by such a claim will be disclosed by the United States Environmental Protection

Agency (U.S. EPA) only to the extent permitted and by means ofthe procedures set forth by Section

114(c) orthe Clean Air Act (the Act), and 40 C.F.R. Part 2. Allegedly confidential portions or otherwise

non-confidential documents should be clearly identified. U.S. EPA will construe the failure to furnish a

confidentiality claim with your response to the attached letter as a waiver of that claim, and the

information may be made available to the public without further notice to you.

PlL'asc segrt'gatc personnel. medical and similar liles ff()m yOlJr responses and include that information

on separate sheet(s) marked as "Personal Privacy lnfonnation" given that disclosure ofsuch information

to the general public may constitute an invasion of privacy.

2. Substantiation Requirements

All confidentiality claims are subject to U.S. EPA verification and must be made in accordance with 40

C.F.R. §2.208 which provides in part that you satisfactorily show that you have taken reasonable

measures to protect the confidentiality or the inlormation and that you intend to continue to do so: and

that thc information is not and has not bL'cn reasonably obtainable by Icgitilllatt: means without your

consent.

As explained above. it'you assert a CBl claim in responding to the attached Jetter. please specify which

portions of the information you consider confidential. You must be specific by page, parllgnlph, llnd

sentence when identifying the informlltion subject to your clllim. Any information not specilically

identified as subject to confidentiality claim may be disclosed to the public and a requestor without

further notice to you. For each item or class of information that you identify as being subject to CBI,

please answer the following questions, giving as much detail as possible:

a. For what period of time do you request that the infonnation be maintained as confidentiaL e.g..

until a certain date, until the occurrence ofa specified event, or pem1311ently'? lrthe occurrence

of a speci lie event wi II create thl' need for cunfidcntiality. plcase spt'cify that c:vent.

b. Illiormatioll slJbmitted to U.S. EPA becomes stale over lime. Why should the information yOll

claim as confidential be protected for the time period specilicd in your answer to question # I'!

c. What measures have you taken to protect the information claimed as confidential? I-lave you

disclosed the information to anyone other than a governmental body or someone who is bound
by an agreement not to disclose the infonnation further? Ifso. why should the infonnation still

be considered confidential?

d. Is the infonnation contained in any publicly available material such as the Internet. publicly

available databases, promotional publications, annual reports, or articles? Is there any means by

which a member of the public could obtain access to the infonnation? Is the infonnation of a

kind that you would customarily not release to the public?

c. lIas any govcrnmclllal body made a determination as to the confidentiality of the information? Ir

so. please 811ach a COP) ofthc determination.

f. For each category of infonna'ion claimed as confidential, explain with specificity why release of

the infonnation is likely to cause substantial hann to your competitive position. Explain the

specific nature of those hannful effects. why they should be viewed as substantial. and the causal

relationship between disclosure and such hamlful effects. How could your competitors make use

of this infonnation to your detriment?

g. I)() )OU assert that the information is submitted on a voluntary or a mandntory basis? Please

explain the rcason for your asscrtion. [fyou asscrt that the information is \oluntarily submillcd

inlonllation. explain \·vhethcr and why disclosure or the inlormation would tend 10 ksscn thc

8\nilnbility to U.S. EPA ofsimilar information in the future.

h. Any other issue you deem relevant (including, if pertinent reasons why you believe that the

infonnation you claim to be CBI is not emission or effluent data.)

Please note that emission data, provided under Section 114 ofthe Act. 42 U.S.C. § 7414. is not entitled

to confidential treatment under 40 C.F.R. Part 2. "Emission data" means, with reference to any source of

emission of any substance into the air.

InrOrtl13tion neeess<Jf) to determine the identity. amount. frequcncy. concentration. or other

characteristics (to the cxtc:nt related \() air quality) or an) emission which has bl.::cn ClllillCd by lhc source

(or or all) pollutnllt resulting from any cmission by the source). or any comhination ofthc foregoing:

a. Information necessary to detennine the identity. amount, frequency, concentration. or other

characteristics (to the extent related to air quality) of the emissions which, under an applicable

standard or limitation, the source was authorized to emit (including, to the extent necessary for

such purposes. a description of the manner and rate of operation of the source); and

b. A general description of the location and/or nature of the source to the extent necessary to

identif) the source and to distinguish it from other sources (including. to the extent necessary for

such purposes. a description ofthe device. installatioll. or operation constituting the source). 40

CF.R.**2.30 l(a)(2)(i)(A). (B) and (C).

Emission data includes. but is not limited to, service records stating the amount of refrigerant added to a

unit or reclaimed from a unit.

2
You bear the burden ofsubstantiating your confidentiality claim. Conclusory allegations will be given

little or no weight in the determination. In substantiating your CBI claim(s), U.S. EPA requires that )OLl

to brucket all text so daimcd and mark it "CBt". Information so designated will be disclosed by U.S.

EPA only to the extent allowed by, and by means orthe procedures set lorth in. 40 C.F.R. Part 2.

Subpart B. If you fail 10 claim the information as confidential, it may be made available to the public

without further notice to you.

o

.,
SEPA

United States

Envitonment.1 Protection

Agency

Attachment C

Office of Enforcemenl and Compliance Asaurance (2201 A)

EPA 300-F-03-001 May 2003

,

U. S. EPA Small Business Resources

I

,you own a small business, the United States Environmental Protection Agency (EPA) offers

a variety of compliance assistance and tools 10 assist you in complying with federal and state

environmenlallaws. These resources can help you understand yourenvironmental obligations. improve

compliance and find cost-effective ways to comply through the use of pollution prevention and other

Innovative technologies,

Hotllnes, Helpline" and

Clearinghouses

EPAsponsors approxlmatelv 89lree holllrlCS and clearing·

houses Iflat provtde convenient assIstance regarding

enwonm9r1l8) reqUirements.

The National Environmental Compliance Assistance

Clearinghouse provides quick access to oompllsnce

assistance tools, oonlaClS, and planned activities from lhe

U.S. EPA, states, and other compliance assistance

providers: httpJIwwH.epa.govldearinghouse

Pollution Prevention Clearlnghouae

httpJIwww.epa.govJopptintrllibraryJppicindex.htm

EPA's Small Business Ombudsman Hotline can

pro\llde a tisl 01 all the hotlmes and assist in determining the hotflne best meellng your needs:

(800) 368-5888

Emergency Planning and Community Right-Te-Know Act

(800) 424-9340

Netional Response Center (to reportoll and hazardOus

substance spills)

(800) 424-8802

Toxles Substances and Asbestos [nlormallon

(202) S54-14()4

safe OriNdng Water

(800)425-4791

Siratosphenc OzOfle and Refrfgentnts lnformatkMl

(800)296-1996

Clean Air Technology center

(919) 541-<lOOO

Wetlands Helpline

(800) 832-7828

EPA Websltes

EPA has S8vtlra! Intemel S'les ThaI prol/lde usefUl complIance aSSIstance InformatlOrl and matenals tor sma I

buSInesses. If you don't have access to tho Interne! at

your bUSiness, many public libreries provide access to the

Internetet minimal or no cost.

EPA's Home Page

http://www.epe.gov

Small Business Assistance Program

hftp-.JJwww.epa.govJttntsbap

Office of Enforcement and Compliance Assurance

httpJJwww,epa.gov/compllance

Compliance AssIstance Home Page

htIP:JIwww.epa.govfCompiiancelSSSlStance

Oflice 01 Regulatory Enlorcement

http://ww\.Y,epa,gov/oomp~ance/civiVindex.html

Office 01 Site Remediation Enforcement

http://ww\.Y.epa.gov/complianceicleanup

InnovoIIUve Programs lor EnvIronmental Performance

httpJIwww.epa.govlpartners

Small Business Ombudsmolln

_.sba goy/ombudsman

Oltlce of Enforcement and Compliance Assurance: hltp://www epa govfcompllance

6''iI --.,.- __hyIt.oo.olo ... .., ..._ .... _ ....... _
U.S. EPA SMALL BUSINESS RESOURCES

Compliance Assistance Centers

In partnership with industry, universities, and other federal

and state agenclos, EPA has esta~lshed national Compli.

ance Assistance Centels that prOVide Imemet and 'iaxback"

assistance services for several industries witt1 many srnall

businesses The lollowing Compliance Assistance Centers

can be accessed through the Center's gateway at hnpJI

www,assistancecenters.netorbycallingthephonenumbers

below and at their respective websites:

Metal Finishing

(1-800-AT·NMFRC or www.nmlrc.org)

Printing

(1-888· USPNEAC or www,pneac.org)

Automotive Service and Repair

(1-888-GRN-UNK or www.ccar-greenlink.org)

Agriculture

(1-888-663-2155 or www.epa.gov/agriculture)

Printed Wiring Board Manufacturing

(1-734-995-49110rwww.pwbrc.org)

The Chemical Industry

(1·800·672·6048 or www.chemalliance.org)

The Transportation Industry

(1·868·459-0656 or www.lranSOlJrce.org)

The Paints and Coatings Center

(1-800-286-6372 or www.paintcenter.org)

Three new centers are under development for the auto

salvage sectol, the construction Industry and US MOM!·

car' wrder waste Issues

State Agencies

Many state agencies have established compliance assis·

tance programs that provide on-site and other types 01

assistance. Contact your local state envitonmental agency

lor more Information. For assistance in reaching state

agencies, call EPA's Small Business Ombudsman at

(800)-368-5888 or vlsillhe Small Business Environmental

Homepage at http://wWw.smalibiz-enviroweb.orgistate.htmL

Compliance Incentives

EPA provkJes Incentives for environmentai compliance. By

parllclpallng In CQmpliance assistance programs or

VOlUnTarily diSClosing and promptly correcting Violations.

businesses may be eligible for penally waivers or reduc·

tions. EPA has two poliCies that potentially apply to small

businesses; The Audit Policy (http:tlwww.epa..Qov/compli·

ance/incentiveS/audltlng) and the Small Business Policy

(http;/lwww.epa.gov/compliancelincentlvesismallbusiness).

These do not apply if an enforcement action has already

been initiated.

Commenting on Federal Enforcement

Actions and Compliance Activities

The Srnall Business Regu,atory Enlorcement Fairness Act

ISBREFA) eslab,ished an ombudsman ("SBREFAOmbuds·

man") and 10 Regional Fairness Boards to receive comrnents

from small businesses about lederal agency enlorcement

actions. The SBREFA Ombudsman Will annually rate each

agerlcy's responsiveness to small businesses. II you believe

that you fall within Ihe Small Business Administration's

definitiOn of a small business (based on your North American

IndustryClassification System (NAICS) designalion, number

Of employees or annual receipts. defined at 13C.F.R.

121,201: In most cases, this means a business With 500 or

fewer employees). and Wish to comment on tederal enforce·

ment and compliance activities. call the SBREFA

Ombudsman's toll·free number at 1-888-REG·FAIR (1-688-

734·3247).

Every small business thaI Is Ihe subject of an enlorcement

or compliance action is entitled to comment on the

Agency's actions without fear of retaliation. EPA

employees are prohibited from uSing enforcement or any

other means 01 retaliation against any member of the

regulated community because the regulated community

previously commented on its activities

Your Duty to Comply

If you receive compliance assistance or subm t comments

10 the SBREFAOmbudsman or Rogtonlll Fairness Boards.

yOll 51111 h!lve the dUly to comply With the law. InCluding

prOViding timely responses to EPA rnformatlon requests,

administratIVe or Civil complaints, other enlorcement

actions or communications The assistance Informallon

and comment processes do not give you any new rights or

defenses in any enforcement action. These processes

also do not affect EPA's obligation to protect public health

orthe environment under any of the environmental statutes

it enforces, including the right 10 lake emergency remedial

or emergency response actions when appropriate. Those

decisions will be based on the facts in each situalion. The

SBREFAOmbudsman and Fairness Boards do nOl

participate in resolving EPA's enforcement actions Also,

remember that to preserve your (lghls, you need to comply

with all rules governing the enforcement process.

EPA is disseminating this Information to you

without making a determination thatyour business

or organIzation Is 8 small busIness as deffned by

SectIon 222 of the Small Business Regulatory

Enforcement Fairness Act (SBREFA) or related

provisIons.