Vol. 80 Friday, 

No. 181 September 18, 2015 

Part II 

Environmental Protection Agency 

40 CFR Parts 49, 51, 52, et al. 

Oil and Natural Gas; Proposed Rules and Notice 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56554 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

1 ‘‘Emission Standards for New and Modified 

Sources in the Oil and Natural Gas Sector,’’ signed 

August 18, 2015, http://www.epa.gov/airquality/

oilandgas/actions.html. 

2 ‘‘Source Determination for Certain Emission 

Units in the Oil and Natural Gas Sector,’’ signed 

August 18, 2015, http://www.epa.gov/airquality/

oilandgas/actions/html. 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Parts 49 

[EPA–HQ–OAR–2014–0606; FRL–9931–75– 

OAR] 

RIN 2060–AS27 

Review of New Sources and 

Modifications in Indian Country: 

Federal Implementation Plan for 

Managing Air Emissions from True 

Minor Sources Engaged in Oil and 

Natural Gas Production in Indian 

Country 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: The Environmental Protection 

Agency (EPA) is proposing a federal 

implementation plan (FIP) that would 

apply to new true minor sources and 

minor modifications at existing true 

minor sources in the production 

segment of the oil and natural gas sector 

that are locating or expanding in Indian 

reservations or in other areas of Indian 

country over which an Indian tribe, or 

the EPA, has demonstrated the tribe’s 

jurisdiction. The FIP would satisfy the 

minor source permitting requirement 

under the ‘‘Federal Minor New Source 

Review (NSR) Program in Indian 

Country’’ (referred to as the ‘‘Federal 

Indian Country Minor NSR rule’’). The 

FIP proposes to require emission 

limitations and other requirements from 

certain federal emission standards as 

written at the time of construction or 

modification for compression ignition 

and spark ignition engines, compressors 

(reciprocating and centrifugal), fuel 

storage tanks, fugitive emissions from 

well sites and compressor stations, 

glycol dehydrators, hydraulically 

fractured oil and gas well completions, 

pneumatic controllers in production, 

pneumatic pumps, process heaters and 

storage vessels. 

The EPA is also proposing several 

amendments to the Federal Indian 

Country Minor NSR rule, including 

adding new text regarding the purpose 

of the program, revising the program 

overview provision, establishing a 

compliance deadline of October 3, 2016, 

revising certain provisions to 

incorporate compliance with the FIP, 

revising the applicability provision to 

establish that sources are required to 

comply with the FIP unless they opt to 

obtain a source-specific permit or are 

otherwise required to obtain a sourcespecific permit, and revising the source 

registration provision. Also, we are 

revising the definition of Indian country 

to comport with a court decision that 

addressed EPA’s jurisdiction to 

implement the Federal Indian Country 

Minor NSR rule: Oklahoma Dept. of 

Environmental Quality v. EPA, 740 F.3d 

185 (D.C. Cir. 2014). This court decision 

also affects the definition of Indian 

country under the Federal Major New 

Source Review Program in Indian 

Country so we are changing the 

definition under the Federal Indian 

Country Major NSR rule as well. 

DATES: Comments. Comments must be 

received on or before November 17, 

2015. 

Public Hearing. The EPA will hold a 

public hearing on this proposed action. 

Details will be announced in a separate 

notice. 

ADDRESSES: Submit your comments, 

identified by Docket ID No. EPA–HQ– 

OAR–2014–0606, to the Federal 

eRulemaking Portal: http://

www.regulations.gov. Follow the online 

instructions for submitting comments. 

Once submitted, comments cannot be 

edited or withdrawn. The EPA may 

publish any comment received to its 

public docket. Do not submit 

electronically any information you 

consider to be Confidential Business 

Information (CBI) or other information 

whose disclosure is restricted by statute. 

Multimedia submissions (audio, video, 

etc.) must be accompanied by a written 

comment. The written comment is 

considered the official comment and 

should include discussion of all points 

you wish to make. The EPA will 

generally not consider comments or 

comment contents located outside of the 

primary submission (i.e., on the web, 

cloud or other file sharing system). For 

additional submissions, and general 

guidance on making effective 

comments, please visit http://

www2.epa.gov/dockets/commentingepa-dockets. 

Docket. All documents in the docket 

are listed in the www.regulations.gov 

index. Although listed in the index, 

some information is not publicly 

available, e.g., CBI or other information 

whose disclosure is restricted by statute. 

Certain other material, such as 

copyrighted material, will be publicly 

available only in hard copy. Publicly 

available docket materials are available 

either electronically in 

www.regulations.gov or in hard copy at 

the EPA Docket Center (EPA/DC), Room 

3334, EPA WJC West Building, 1301 

Constitution Ave. NW., Washington, 

DC. The 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 

Public Reading Room is (202) 566–1744, 

and the telephone number for the Air 

Docket is (202) 566–1742. 

FOR FURTHER INFORMATION CONTACT: Mr. 

Christopher Stoneman, Outreach and 

Information Division, Office of Air 

Quality Planning and Standards (C– 

304–01), Environmental Protection 

Agency, Research Triangle Park, North 

Carolina, 27711, telephone number 

(919) 541–0823, facsimile number (919) 

541–0072, email address: 

stoneman.chris@epa.gov. For questions 

about the oil and natural gas new source 

performance standards (NSPS) proposed 

action,1 please contact Mr. Bruce Moore, 

Sector Policies and Programs Division, 

Office of Air Quality Planning and 

Standards (E–143–01), Environmental 

Protection Agency, Research Triangle 

Park, North Carolina, 27711, telephone 

number (919) 541–5460, facsimile 

number (919) 541–4312, email address: 

moore.bruce@epa.gov. For questions 

about the proposed action on the oil and 

natural gas source determination,2

please contact Ms. Cheryl Vetter, Air 

Quality Policy Division, Office of Air 

Quality Planning and Standards (C504– 

03), Environmental Protection Agency, 

Research Triangle Park, North Carolina, 

27711, telephone number (919) 541– 

4391, facsimile number (919) 541–541– 

4312, email address: vetter.cheryl@

epa.gov. For questions about the 

applicability of this action to a 

particular source, please contact the 

appropriate EPA region: 

• EPA Region 5 (Illinois, Indiana, 

Michigan, Minnesota, Ohio, and 

Wisconsin)—Ms. Genevieve Damico, 

Air Permits Section, Environmental 

Protection Agency, Region 5, Chicago, 

Illinois 60604; telephone (312) 353– 

4761; fax (312) 385–5501; email address: 

damico.genevieve@epa.gov. 

• EPA Region 6 (Arkansas, Louisiana, 

New Mexico, Oklahoma, and Texas)— 

Ms. Bonnie Braganza, Air Permits 

Section, Multimedia Permitting and 

Planning Division, Environmental 

Protection Agency Region 6, Dallas, 

Texas 75202; telephone number (214) 

665–7340; fax number (214) 665–6762; 

email address: braganza.bonnie@

epa.gov. 

• EPA Region 8 (Colorado, Montana, 

North Dakota, South Dakota, Utah, and 

Wyoming)—Ms. Claudia Smith, Air 

Program, Mail Code 8P–AR, 

Environmental Protection Agency 

Region 8, Denver, Colorado 80202; 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56555 

telephone number (303) 312–6520; fax 

number (303) 312–6520; email address: 

smith.claudia@epa.gov. 

• EPA Region 9 (Arizona, California, 

Hawaii, Nevada, and Pacific Islands)— 

Ms. Lisa Beckham, Permits Office, Air 

Division, Air-3, Environmental 

Protection Agency Region 9, San 

Francisco, California 94105; telephone 

number (415) 972–3811; fax number 

(415) 947–3579; email address: 

beckham.lisa@epa.gov. 

• All other EPA regions—The permit 

reviewer for minor sources in Indian 

country for your EPA region. You can 

find the list of the EPA permit reviewers 

at: http://www.epa.gov/air/tribal/

tribalnsr.html. Scroll down to the 

heading, ‘‘Existing Source Registration,’’ 

and click on ‘‘Reviewing Authority’’ to 

access ‘‘Environmental Protection 

Agency’s Reviewing Authorities for 

Permits.’’ 

SUPPLEMENTARY INFORMATION: The 

information presented in this preamble 

is organized as follows: 

I. General Information 

A. What entities are potentially affected by 

this proposal? 

B. What should I consider as I prepare my 

comments to the EPA? 

C. Where can I get a copy of this document 

and other related information? 

II. Purpose 

A. Proposed Oil and Natural Gas FIP 

B. Proposed Amendments to the Federal 

Indian Country Minor NSR Rule 

III. Background 

A. Tribal Air Rule 

B. Federal Indian Country Minor NSR Rule 

C. General Permits and Permits by Rule for 

the Federal Minor New Source Review 

Program in Indian Country—Final Rules 

D. EPA Actions Affecting Oil and Natural 

Gas Minor Sources in areas covered by 

the Federal Indian Country Minor NSR 

Rule 

E. What is a FIP? 

F. Oil and Natural Gas Sector 

IV. Summary of Proposed Oil and Natural 

Gas FIP 

A. Overview 

B. What are the proposed FIP 

requirements? 

C. Site-Specific Permits 

V. Summary of Proposed Amendments to the 

Federal Indian Country Minor NSR Rule 

VI. Implementation Issues 

A. Requirements Relating to Threatened or 

Endangered Species and Historic 

Properties 

B. What is the effect of this FIP on other 

Indian Country FIPs? 

VII. Rationale for Proposed FIP 

A. Why are we choosing a FIP as an 

alternative to site-specific permits, 

general permits and permits by rule? 

B. How did we select which equipment to 

include in this proposed FIP? 

C. Why are we excluding existing sources 

from this proposed oil and natural gas 

FIP? 

D. Why is the EPA extending the 

permitting deadline for oil and natural 

gas true minor sources in areas covered 

by the Federal Indian Country Minor 

NSR rule? 

VIII. Statutory and Executive Order Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

B. Paperwork Reduction Act (PRA) 

C. Regulatory Flexibility Act (RFA) 

D. Unfunded Mandates Reform Act 

(UMRA) 

E. Executive Order 13132: Federalism 

F. Executive Order 13175: Consultation 

and Coordination with Indian Tribal 

Governments 

G. Executive Order 13045: Protection of 

Children from Environmental Health 

Risks and Safety Risks 

H. Executive Order 13211: Actions that 

Significantly Affect Energy Supply, 

Distribution, or Use 

I. National Technology Transfer and 

Advancement Act (NTTAA) 

J. Executive Order 12898: Federal Actions 

to Address Environmental Justice in 

Minority Populations and Low-Income 

Populations 

I. General Information 

A. What entities are potentially affected 

by this proposal? 

Entities potentially affected by this 

proposal consist of owners and 

operators of facilities included in the 

following source categories that are 

located, or planning to locate, in an 

Indian reservation or in another area of 

Indian country (as defined in 18 U.S.C. 

1151) over which an Indian tribe, or the 

EPA, has demonstrated that the tribe has 

jurisdiction where there is no EPAapproved program in place and that are 

subject to the requirements of the 

Federal Indian Country Minor NSR rule. 

TABLE 1—SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION

Industry category NAICS 

Code a Examples of regulated entities/description of industry category 

Oil and Gas Production/Operations .............................................. 21111 Exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; operation of separators, emulsion breakers, desilting equipment, and field gathering lines 

for crude petroleum and natural gas; and all other activities in 

the preparation of oil and gas up to the point of shipment 

from the producing property. 

Production of crude petroleum, the mining and extraction of oil 

from oil shale and oil sands, the production of natural gas, 

sulfur recovery from natural gas, and the recovery of hydrocarbon liquids from oil and gas field gases. 

Crude Petroleum and Natural Gas Extraction .............................. 211111 Exploration, development and/or the production of petroleum or 

natural gas from wells in which the hydrocarbons will initially 

flow or can be produced using normal pumping techniques or 

production of crude petroleum from surface shales or tar 

sands or from reservoirs in which the hydrocarbons are 

semisolids. 

Natural Gas Liquid Extraction ....................................................... 211112 Recovery of liquid hydrocarbons from oil and gas field gases; 

and sulfur recovery from natural gas. 

Drilling Oil and Gas Wells ............................................................ 213111 Drilling oil and gas wells for others on a contract or fee basis, 

including spudding in, drilling in, redrilling, and directional 

drilling. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56556 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

3 ‘‘Oil and Natural Gas Sector: Emission 

Standards for New and Modified Sources,’’ signed 

August 18, 2015, and ‘‘Source Determination for 

Certain Emission Units in the Oil and Natural Gas 

Sector,’’ signed August 18, 2015, http://

www.epa.gov/airquality/oilandgas/actions.html. 

4 Draft Control Techniques Guidelines for the Oil 

and Natural Gas Source Category, signed August 18, 

2015, http://www.epa.gov/airquality/oilandgas/

actions.html. 

5 ‘‘Source Determination for Certain Emission 

Units in the Oil and Natural Gas Sector,’’ signed 

August 18, 2015, http://www.epa.gov/airquality/

oilandgas/actions.html. 

TABLE 1—SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION—Continued 

Industry category NAICS 

Code a Examples of regulated entities/description of industry category 

Support Activities for Oil and Gas Operations ............................. 213112 Performing support activities on a contract or fee basis for oil 

and gas operations (except site preparation and related construction activities) such as exploration (except geophysical 

surveying and mapping); excavating slush pits and cellars, 

well surveying; running, cutting, and pulling casings, tubes, 

and rods; cementing wells, shooting wells; perforating well 

casings; acidizing and chemically treating wells; and cleaning 

out, bailing, and swabbing wells. 

Engines (Spark Ignition and Compression Ignition) for Electric 

Power Generation.

2211 ** Provision of electric power to support oil and natural gas production where access to the electric grid is unavailable. 

a North American Industry Classification System. 

This list is not intended to be 

exhaustive, but rather provides a guide 

for readers regarding entities likely to be 

potentially affected by this action. To 

determine whether your facility could 

be affected by this action, you should 

examine the applicability criteria in the 

final Federal Minor NSR Program in 

Indian Country (40 Code of Federal 

Regulations (CFR) 49.153), as well as the 

proposed FIP applicability in 40 CFR 

49.101. If you have any questions 

regarding the applicability of this action 

to a particular entity, contact the 

appropriate person listed in the FOR

FURTHER INFORMATION CONTACT section. 

B. What should I consider as I prepare 

my comments to the EPA? 

Submitting CBI. Do not submit this 

information to the EPA through 

regulations.gov or email. Clearly mark 

the part or all of the information that 

you claim to be CBI. For CBI 

information in a disk or CD ROM that 

you mail to the EPA, mark the outside 

of the disk or CD ROM as CBI and then 

identify electronically within the disk or 

CD ROM the specific information that is 

claimed as CBI. In addition to one 

complete version of the comment that 

includes information claimed as CBI, a 

copy of the comment that does not 

contain the information claimed as CBI 

must be submitted for inclusion in the 

public docket. Information so marked 

will not be disclosed except in 

accordance with procedures set forth in 

40 CFR part 2. Send or deliver 

information identified as CBI to only the 

following address: Ms. Tiffany Purifoy, 

c/o OAQPS Document Control Officer 

(Mail Code C404–02), U.S. EPA, 

Research Triangle Park, NC 27711, 

Attention Docket ID No. EPA–HQ– 

OAR–2014–0606. 

Coordination of Comments on Four 

Actions Affecting Oil and Natural Gas 

Sector. The EPA is proposing three rules 

that affect sources in the oil and natural 

gas sector. One is today’s proposed rule, 

the oil and natural gas FIP for new true 

minor sources and minor modifications 

at existing true minor sources for Indian 

country. The other two proposed rules 

are the 2015 proposed 40 CFR part 60, 

subpart OOOOa rulemaking, which 

updates the oil and natural gas NSPS, 

and the proposed rule addressing oil 

and natural gas source determinations 

for NSR purposes.3 In addition, the EPA 

is making available for public review 

and comment a draft Control 

Techniques Guidelines (CTG) for the Oil 

and Natural Gas Source Category 

document.4 We welcome comments on 

all four of these actions. To help us 

respond more efficiently to public 

comments on this proposal, we request 

that commenters submit comments 

addressing the oil and natural gas NSPS 

signed on August 18, 2015 to the docket 

for the oil and natural gas NSPS, Docket 

ID No. EPA–HQ–OAR–2010–0505. 

Please do not send comments on the 

proposed oil and natural gas NSPS to 

the docket for this proposed FIP. 

Comments addressing the 2015 

proposed oil and natural gas NSPS 

would include comments, for example, 

about the level of proposed control for 

the oil and natural gas NSPS. For this 

proposal, we request comments on the 

concept of relying on the oil and natural 

gas NSPS (and other applicable EPA 

rules) for the oil and natural gas FIP for 

Indian country. We request that 

comments on this concept and other 

comments applicable to this proposed 

FIP be submitted to the docket (Docket 

ID No. EPA–HQ–OAR–2014–0606). In 

addition, on September 18, 2015, the 

EPA proposed to amend 40 CFR parts 

51, 52, 70, and 71 to address major 

source determinations for oil and gas 

extraction facilities for NSR purposes.5

All comments related to source 

determinations for oil and gas extraction 

facilities should be addressed to Docket 

ID No. EPA–HQ–OAR–2013–0685. 

Finally, all comments on the draft oil 

and natural gas CTG document should 

be addressed to Docket ID No. EPA– 

HQ–OAR–2015–0216. 

We have incorporated by reference 

Docket ID No. EPA–HQ–OAR–2010– 

0505 and Docket ID No. EPA–HQ–OAR– 

2013–0685 into DOCKET ID No. EPA– 

HQ–OAR–2014–0606. Comments 

submitted to Docket ID No. EPA–HQ– 

OAR–2010–0505 and Docket ID No. 

EPA–HQ–OAR–2013–0685 will be part 

of the official record for this oil and 

natural gas FIP proposed action. 

Docket. The docket number for this 

action is Docket ID No. EPA–HQ–OAR– 

2014–0606. 

World Wide Web (WWW). In addition 

to being available in the docket, an 

electronic copy of this document will be 

posted on the WWW. Following 

signature, the EPA will post a copy of 

this document at: http://www.epa.gov/

airquality/oilandgas/actions.html, 

http://www.epa.gov/nsr (regulations and 

standards section of the NSR home 

page), and at: http://www.epa.gov/air/

tribal/tribalnsr.html (tribal NSR page). 

Preparing Comments. When 

submitting comments, remember to: 

• Identify the rulemaking by docket 

number and other identifying 

information (subject heading, Federal 

Register date and page number). 

• Respond to specific questions and 

link comments to specific CFR 

references when appropriate. 

• Explain why you agree or disagree 

and suggest alternatives. Include 

specific regulatory text that implements 

your requested changes. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56557 

6Two of the six rules are NESHAPs. Our basis for 

requiring compliance with NESHAPs in this rule 

that is designed to fulfill requirements of the 

Federal Indian Country Minor NSR rule is primarily 

to address criteria pollutants. These two NESHAPs 

control VOC and/or NOX. VOC and NOX are NSRregulated pollutants of concern in the Federal 

Indian Country Minor NSR rule. 

• Explain technical information and/ 

or data that you used to as the basis of 

your comment and provide references to 

the supporting information. 

• If you estimate potential costs or 

burdens, explain how you arrived at 

your estimate in sufficient detail to 

allow for it to be reproduced. 

• Provide specific examples to 

illustrate your concerns and suggest 

alternatives. 

• Explain your views as clearly as 

possible, avoiding the use of profanity 

or personal threats. 

• Make sure to submit your 

comments by the comment period 

deadline identified. 

C. Where can I get a copy of this 

document and other related 

information? 

In addition to being available in the 

docket, an electronic copy of this 

proposal will also be available on the 

WWW. Following signature by the EPA 

Administrator, a copy of this notice will 

be posted on the regulations and 

standards section of the NSR home page 

located at: http://www.epa.gov/nsr, on 

the tribal NSR page at: http://

www.epa.gov/air/tribal/tribalnsr.html, 

and at the oil and natural gas air 

pollution standards page at http://

www.epa.gov/airquality/oilandgas/

actions.html. 

II. Purpose 

A. Proposed Oil and Natural Gas FIP 

We are proposing a FIP for new true 

minor sources and minor modifications 

at existing true minor sources in the 

production segment of the oil and 

natural gas sector that are locating or 

expanding in an Indian reservation or in 

another area of Indian country over 

which a tribe, or the EPA, has 

demonstrated that the tribe has 

jurisdiction. The FIP would apply to 

new and modified true minor sources 

that are located or expanding in the 

referenced areas of Indian country 

designated as unclassifiable, attainment, 

or attainment/unclassifiable. It would 

not apply to new and modified true 

minor sources that are located or 

expanding in referenced areas of Indian 

country designated nonattainment. 

(Requirements for such areas would be 

addressed through site-specific minor 

NSR permitting and/or separate, 

reservation-specific FIPs.). 

This FIP would be used instead of 

site-specific permits to fulfill the EPA’s 

obligation under the Federal Indian 

Country Minor NSR rule to issue minor 

NSR preconstruction permits. The FIP 

would provide a streamlined, 

alternative approach addressing the 

permitting requirement, while also 

ensuring air quality protection through 

requirements that are unambiguous and 

legally and practicably enforceable. The 

FIP would reduce burden for sources 

and the Reviewing Authority and 

prevent delays in new construction due 

to the minor NSR permitting obligation. 

True minor sources in the oil and 

natural gas sector would be required to 

comply with the FIP instead of being 

required to obtain a minor source 

permit, unless a source chooses to opt 

out of the FIP and to obtain a sitespecific minor NSR permit instead. In 

addition, the Reviewing Authority could 

require a source to obtain a site-specific 

permit based on local or reservationspecific air quality concerns where the 

emissions from the source could cause 

or contribute to a National Ambient Air 

Quality Standards (NAAQS) or 

increment violation. To protect the 

NAAQS, the Reviewing Authority could 

regulate emissions from operations at 

the minor source not regulated by the 

proposed FIP or could require more 

stringent emission limitations for 

operations at the source regulated by the 

proposed FIP. 

In this FIP, we are proposing to 

require owners and operators of oil and 

natural gas production facilities to 

comply with six federal standards to 

reduce emissions of volatile organic 

compounds (VOC), nitrogen oxides 

(NOX), sulfur dioxide (SO2), particulate 

matter (PM, PM10, PM2.5), hydrogen 

sulfide (H2S), carbon monoxide (CO) 

and various sulfur compounds from: 

compression ignition and spark ignition 

engines, compressors (reciprocating and 

centrifugal), fuel storage tanks, fugitive 

emissions from well sites and 

compressor stations, glycol dehydrators, 

hydraulically fractured oil and gas well 

completions, pneumatic controllers in 

production, pneumatic pumps, process 

heaters and storage vessels. The 

proposed oil and natural gas FIP 

requires compliance with four NSPS 

and two national emission standards for 

hazardous air pollutants (NESHAP). 

These rules are listed in Table 2. 

TABLE 2—SIX FEDERAL RULES INCORPORATED BY REFERENCE IN THE PROPOSED OIL AND NATURAL GAS FIP FOR INDIAN

COUNTRY 6

40 CFR part and subpart Title of subpart Potentially affected sources in the 

production segment Location 

40 CFR part 63, subpart DDDDD .. National Emission Standards for 

Hazardous Air Pollutants for 

Major Sources: Industrial, Commercial, and Institutional Boilers 

and Process Heaters.

Process heaters ............................ http://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb41

7f5386519941a

47&mc=true&node=sp40.14.63.

ddddd&rgn=div6 

40 CFR part 60, subpart Kb .......... Standards of Performance for 

Volatile Organic Liquid Storage 

Vessels (Including Petroleum 

Liquid Storage Vessels) for 

Which Construction, Reconstruction, or Modification Commenced After July 23, 1984.

Fuel Storage Tanks ...................... http://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb4

17f5386519941a47&mc

=true&node=sp40.7.60.

k_0b&rgn=div6 

40 CFR part 60, subpart IIII ........... Standards of Performance for 

Stationary Compression Ignition 

Internal Combustion Engines.

Compression Ignition Internal 

Combustion Engines.

http://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9

cb417f5386519941a47&mc

=true&node=sp40.7.60.

iiii&rgn=div6 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56558 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

7 ‘‘Oil and Natural Gas Sector: Emission 

Standards for New and Modified Sources,’’ signed 

August 18, 2015, http://www.epa.gov/airquality/

oilandgas/actions.html. 

TABLE 2—SIX FEDERAL RULES INCORPORATED BY REFERENCE IN THE PROPOSED OIL AND NATURAL GAS FIP FOR INDIAN

COUNTRY 6—Continued 

40 CFR part and subpart Title of subpart Potentially affected sources in the 

production segment Location 

40 CFR part 60, subpart JJJJ ....... Standards of Performance for 

Stationary Spark Ignition Internal Combustion Engines.

Spark Ignition Internal Combustion Engines.http://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb417f5

386519941a47&mc=true&node

=sp40.7.60.jjjj&rgn=div6 

40 CFR part 60, subpart OOOOa 

(proposed).

Standards for New and Modified 

Sources in the Oil and Natural 

Gas Sector.

Storage Vessels, Pneumatic Controllers, Compressors (Reciprocating and Centrifugal), Hydraulically Fractured Oil and Gas 

Well Completions, Pneumatic 

Pumps and Fugitive Emissions 

from Well Sites and Compressor Stations.

http://www.epa.gov/airquality/

oilandgas/actions.html 

40 CFR part 63, subpart HH ......... National Emission Standards for 

Hazardous Air Pollutants from 

Oil and Natural Gas Production 

Facilities.

Glycol Dehydrators ....................... http://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb4

17f5386519941a4

7&mc=true&node=sp40.11.63.

hh&rgn=div6 

For purposes of this FIP, we are 

proposing that compliance with these 

rules would effectively satisfy the NSR 

requirements. Therefore, we are 

proposing that true minor oil and 

natural gas sources subject to these 

standards must comply with these 

standards as they currently exist and as 

they may be amended, except for those 

provisions that we specifically exclude. 

(This proposed FIP does not change the 

applicability of the specified standards, 

nor does it relieve sources subject to the 

standards from complying with them, 

independently of this FIP.) 

We are seeking comment on the 

concept of relying on these EPA 

standards as written at the time 

construction or modification of the 

source is begun for the requirements of 

the proposed oil and natural gas FIP. 

The purpose is to protect air quality in 

Indian reservations and in other areas of 

Indian country for which an Indian 

tribe, or the EPA, has demonstrated the 

tribe’s jurisdiction and are designated as 

attainment, unclassifiable, or 

attainment/unclassifiable. It is our 

intent that oil and natural gas sources in 

areas covered by the Federal Indian 

Country Minor NSR rule using the 

proposed FIP would be subject, for 

purposes of the proposed FIP, to any 

amendments to an NSPS or NESHAP, 

including any amendments to the oil 

and natural gas NSPS that become part 

of the final oil and natural gas NSPS as 

a result of the 2015 proposed oil and 

natural gas NSPS.7 Sources subject to 

this proposed FIP would be subject to 

any future changes made to these six 

underlying EPA standards only if they 

would otherwise be subject to those 

future changes. To help understand the 

requirements of this proposed oil and 

natural gas FIP, please see the 2015 

proposed oil and natural gas NSPS and 

the provisions for each of the six federal 

rules (i.e., four NSPS and two NESHAP) 

identified above. 

B. Proposed Amendments to the Federal 

Indian Country Minor NSR Rule 

Today’s action proposes several 

amendments to the Federal Indian 

Country Minor NSR rule. First, we are 

proposing to revise § 49.151(b)(1) to 

establish as one of the purposes of the 

Federal Minor NSR Program in Indian 

Country the incorporation of the FIP 

(§§ 49.101 through 105) for oil and 

natural gas production true minor 

sources located in an Indian reservation 

or in another area of Indian country over 

which an Indian tribe, or the EPA, has 

demonstrated that the tribe has 

jurisdiction. Also, to clarify the purpose 

of subpart C, we are proposing to revise 

the subpart heading. 

Second, we are proposing to revise 

§ 49.151(c)(1)(iii)(A) to conform the 

registration deadline to the proposed, 

extended permitting deadline in 

§ 49.151(c)(1)(iii)(B). 

Third, we are proposing to revise 

§ 49.151(c)(1)(iii)(B) to establish a 

deadline for when new and modified 

true minor sources in the production 

segment of the oil and natural gas sector 

that are located in an Indian reservation 

or in another area of Indian country over 

which an Indian tribe, or the EPA, has 

demonstrated that the tribe has 

jurisdiction or planning to locate in 

such areas must comply with the FIP in 

lieu of obtaining a minor NSR permit, 

unless the source opts for a site-specific 

minor NSR permit. If a source opts-out 

of the FIP, then we are proposing to 

extend the date for when the source 

must obtain a minor source permit. We 

are proposing to extend the deadline 

from March 2, 2016, to October 3, 2016. 

Fourth, we are proposing to revise 

§ 49.151(d)(1), (2) and (4) to incorporate 

compliance with the FIP. 

Fifth, we are proposing to revise 

§§ 49.153(a)(1)(i)(B) and (ii)(B) to 

establish that oil and natural gas 

production true minor sources are 

required to comply with the FIP, unless 

a source opts out of the FIP pursuant to 

§ 49.101(b)(2) or is required by the EPA 

to obtain a source-specific minor source 

permit pursuant to § 49.101(b)(3). 

Sixth, we are proposing to revise 

§§ 49.160(c)(1)(ii) and (iii), to add 

§ 49.160(c)(1)(iv) and to revise 

§ 49.160(c)(4). We are revising 

§ 49.160(c)(1)(ii) to conform the 

registration deadline to the extended 

permitting deadline in 

§ 49.151(c)(1)(iii)(B). For 

§ 49.160(c)(1)(iii) and § 49.160(c)(1)(iv), 

we are establishing that sources subject 

to the FIP still have to register with the 

Reviewing Authority, and we describe 

how to do that. For § 49.160(c)(4), we 

are proposing to clarify that submitting 

a registration form does not relieve a 

source of the requirement to comply 

with the FIP if the source (or any 

physical or operational change at the 

source) would be subject to any minor 

NSR rule. 

Finally, we are revising the definition 

of Indian country in § 49.152(d) to 

comport with a court decision that 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56559 

8 ‘‘Indian Tribes: Air Quality Planning and 

Management,’’ U.S. Environmental Protection 

Agency, 63 FR 7254, February 12, 1998, http://

www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98- 

3451.pdf. 

9See 40 CFR 49.4(a) and (d) and 63 FR at 7262– 

66, February 12, 1998. 

10See CAA section 301(a) and 63 FR at 7265, 

February 12, 1998. 

11Section 49.11(a) states that the EPA, ‘‘[s]hall 

promulgate without unreasonable delay such 

federal implementation plan provisions as are 

necessary or appropriate to protect air quality, 

consistent with the provisions of sections 301(a) 

and 301(d)(4), if a tribe does not submit a tribal 

implementation plan meeting the completeness 

criteria of 40 CFR part 51, Appendix V, or does not 

receive EPA approval of a submitted tribal 

implementation plan’’ (see 40 CFR 49.11(a)). 

12 ‘‘Review of New Sources and Modifications in 

Indian Country,’’ U.S. Environmental Protection 

Agency, 71 FR 48696, August 21, 2006, http://

www.gpo.gov/fdsys/pkg/FR-2006-08-21/html/06- 

6926.htm. 

13 ‘‘Review of New Sources and Modifications in 

Indian Country,’’ U.S. Environmental Protection 

Agency, 76 FR 38748, July 1, 2011, https://

www.federalregister.gov/articles/2011/07/01/2011- 

14981/review-of-new-sources-and-modifications-inindian-country. 

14The Federal Indian Country Minor NSR rule 

defines ‘‘Indian country’’ to include three categories 

of lands consistent with 18 U.S.C. 1151, i.e., Indian 

reservations, dependent Indian communities, and 

Indian allotments. The U.S. Court of Appeals for the 

District of Columbia Circuit vacated the rule with 

respect to non-reservation areas of Indian country 

(i.e., dependent Indian communities and Indian 

allotments) (Oklahoma Dept. of Environmental 

Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The 

court held that the state, not tribes or the EPA, has 

initial primary responsibility for implementation 

plans under CAA section 110 in non-reservation 

areas of Indian country in the absence of a 

demonstration of tribal jurisdiction by the EPA or 

a tribe. The rule, therefore, does not apply in nonreservation areas of Indian country unless a tribe or 

the EPA has demonstrated that a tribe has 

jurisdiction in a particular non-reservation area of 

Indian country. 

15To be eligible to develop and implement an 

EPA-approved program, under the Tribal Authority 

Rule a tribe must meet four requirements: (1) Be a 

federally-recognized tribe; (2) have a functioning 

government carrying out substantial duties and 

powers; (3) propose to carry out functions 

pertaining to air resources of the reservation or 

other areas within the tribe’s jurisdiction; and (4) 

be reasonably expected to be capable of carrying out 

the program. For more information go to: ‘‘Indian 

Tribes: Air Quality Planning and Management,’’ 

U.S. Environmental Protection Agency, 63 FR 7254, 

February 12, 1998, http://www.gpo.gov/fdsys/pkg/

FR-1998-02-12/pdf/98-3451.pdf. 

16Tribes can also establish permit fees under a 

tribal permitting program, as do most states. 

addressed EPA’s jurisdiction to 

implement the Federal Indian Country 

Minor NSR rule: Oklahoma Dept. of 

Environmental Quality v. EPA, 740 F.3d 

185 (D.C. Cir. 2014). This court decision 

also affects the definition of Indian 

country under the Federal Major New 

Source Review Program in Indian 

Country so we are changing the 

definition under the Federal Indian 

Country Major NSR rule in § 49.167. 

III. Background 

A. Tribal Authority Rule 

Section 301(d) of the Clean Air Act 

(CAA) authorizes the EPA to treat 

Indian tribes in the same manner as 

states and directs the EPA to promulgate 

regulations specifying those provisions 

of the CAA for which such treatment is 

appropriate. (42 U.S.C.§ 7601(d)(1) and 

(2)). It also authorizes the EPA, in 

circumstances in which the EPA 

determines that the treatment of Indian 

tribes as identical to states is 

inappropriate or administratively 

infeasible, to provide by regulation 

other means by which the EPA will 

directly administer the CAA. (42 U.S.C. 

§ 7601(d)(4)) Acting principally 

pursuant to that authority, on February 

12, 1998,8 the EPA promulgated what 

we refer to as the Tribal Authority Rule 

(TAR). (40 CFR 49.1–49.11). In the TAR, 

we determined that it was appropriate 

to treat tribes in the same manner as 

states for all CAA and regulatory 

purposes except a list of specified CAA 

provisions and implementing 

regulations thereunder. (40 CFR 49.4) 

Among those provisions of the CAA for 

which we determined that tribes will 

not be treated in the same manner as 

states are specific plan submittal and 

implementation deadlines for NAAQSrelated requirements, including the 

requirement under section 110(a)(2)(c) 

to submit a program, including a permit 

program as required in parts C and D of 

the CAA, to regulate the modification 

and construction of any stationary 

source as necessary to assure that the 

NAAQS are achieved. In the TAR, we 

also determined that we would not treat 

tribes in the same manner as states with 

respect to CAA section 110(a)(1) (State 

Implementation Plan (SIP) submittal) 

and CAA section 110(c)(1) (directing the 

EPA to promulgate a FIP ‘‘within 2 

years’’ after we find that a state has 

failed to submit a required plan, or has 

submitted an incomplete plan, or within 

2 years after we disapproved all or a 

portion of a plan), among other 

provisions.9

The TAR preamble clarified that by 

including CAA section 110(c)(1) on the 

§ 49.4 list, ‘‘EPA is not relieved of its 

general obligation under the CAA to 

ensure the protection of air quality 

throughout the nation, including 

throughout Indian country. The 

preamble confirmed that the ‘‘EPA will 

continue to be subject to the basic 

requirement to issue a FIP for affected 

tribal areas within some reasonable 

time.’’10 In the TAR, we thus exercised 

our discretionary authority under CAA 

§§ 301(a) and 301(d)(4) to establish a 

regulation providing that we would 

promulgate without unreasonable delay 

such FIP provisions as are necessary or 

appropriate to protect air quality (40 

CFR 40.11(a)). Section 49.11(a) provides 

that the EPA will promulgate a FIP as 

necessary or appropriate to protect tribal 

air quality within a reasonable time if 

tribal efforts do not result in adoption 

and approval of tribal plans or 

programs.11

On August 21, 2006, acting pursuant 

to that authority, we proposed the 

regulation: ‘‘Review of New Sources and 

Modifications in Indian Country’’ (i.e., 

Indian Country NSR rule).12 Within this 

regulation, the EPA proposed to protect 

air quality in areas covered by the 

Federal Indian Country Minor NSR rule 

by establishing a FIP program to 

regulate the modification and 

construction of stationary sources 

consistent with the requirements of 

section 110(a)(2)(c) of the CAA. We call 

this part of the Indian Country NSR rule 

the Federal Indian Country Minor NSR 

rule. Under the Federal Indian Country 

Minor NSR rule, we proposed to 

provide a mechanism for issuing 

preconstruction permits for the 

construction of new minor sources and 

certain modifications of major and 

minor sources in areas covered by the 

Federal Indian Country Minor NSR rule. 

In developing the rule, the EPA 

conducted extensive outreach and 

consultation along with a 7-month 

public comment period that ended on 

March 20, 2007. The comments 

provided detailed information specific 

to Indian country and the final Federal 

Indian Country Minor NSR rule 

incorporated many of the suggestions 

we received. We promulgated final rules 

on July 1, 2011,13 and the FIP became 

effective on August 30, 2011. 

B. Federal Indian Country Minor NSR 

Rule 

1. What is the Federal Indian Country 

Minor NSR Rule? 

The Federal Indian Country Minor 

NSR rule applies to new and modified 

minor stationary sources and to minor 

modifications at existing major 

stationary sources located in Indian 

country14 where there is no EPAapproved program in place. Tribes can 

elect to develop and implement their 

own EPA-approved program under the 

Tribal Authority Rule (TAR),15 but they 

are not required to do so.16 In the 

absence of an EPA-approved tribal 

program, the EPA implements the 

program. Alternatively, tribes can take 

administrative delegation of the federal 

program from the EPA and become the 

Reviewing Authority. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56560 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

17For oil and natural gas true minor sources, this 

date was extended to March 2, 2016. This notice 

proposes to extend it to October 3, 2016. For more 

information, see: ‘‘Review of New Sources and 

Modifications in Indian Country Amendments to 

the Registration and Permitting Deadlines for True 

Minor Sources,’’ 79 FR 34231, June 16, 2014, http:// 

www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014- 

14030.pdf. 

18A source may, however, be subject to certain 

monitoring, recordkeeping and reporting (MRR) 

requirements under the major NSR programs, if the 

change has a reasonable possibility of resulting in 

a major modification. A source may be subject to 

both the Federal Indian Country Minor NSR rule 

and the reasonable possibility MRR requirements of 

the major NSR program(s). 

19 If part of a tribe’s area of Indian country is 

designated as attainment and another part as 

nonattainment, the applicable threshold for a 

proposed source or modification is determined 

based on the designation where the source would 

be located. If the source straddles the two areas, the 

more stringent thresholds apply. 

20 In extreme ozone nonattainment areas, section 

182(e)(2) of the CAA requires any change at a major 

source that results in any increase in emissions to 

be subject to major NSR permitting. In other words, 

any changes to existing major sources in extreme 

ozone nonattainment areas are subject to a ‘‘0’’ tpy 

threshold, but that threshold does not apply to 

minor sources. 

21 Id. 

Beginning September 2, 2014,17 any 

new stationary source that will emit, or 

will have the potential to emit (PTE), a 

regulated NSR pollutant in amounts that 

will be: (a) Equal to or greater than the 

minor NSR thresholds, established in 

the Federal Indian Country Minor NSR 

rule; and (b) less than the amount that 

would qualify the source as a major 

source or a major modification for 

purposes of the Prevention of 

Significant Deterioration (PSD) or 

nonattainment major NSR programs, 

must apply for and obtain a minor NSR 

permit before beginning construction of 

the new source. Likewise, any existing 

stationary source (minor or major) must 

apply for and obtain a minor NSR 

permit before beginning construction of 

a physical or operational change that 

will increase the allowable emissions of 

the stationary source by more than the 

specified threshold amounts, if the 

change does not otherwise trigger the 

permitting requirements of the PSD or 

nonattainment major NSR program(s).18

In addition, among other things, the 

Federal Indian Country Minor NSR rule 

created a framework for the EPA to 

streamline the issuance of 

preconstruction permits to true minor 

sources by using general permits. 

2. What are the minor NSR thresholds? 

The ‘‘minor NSR thresholds’’ 

establish cutoff levels for each regulated 

NSR pollutant. If a source has a PTE in 

amounts lower than the thresholds, then 

it is exempt from the Federal Indian 

Country Minor NSR rule (see Table 3 

and 40 CFR 49.153) for that pollutant. 

New or modified sources that have a 

PTE in amounts that are: (1) Equal to or 

greater than the minor NSR thresholds; 

and (2) less than the major NSR 

thresholds (generally 100 or 250 tons 

per year (tpy)) are ‘‘minor sources’’ of 

emissions and subject to the Federal 

Indian Country Minor NSR rule 

requirements at 40 CFR 49.151 through 

161. 

TABLE 3—MINOR NSR THRESHOLDS FOR SOURCES IN INDIAN COUNTRY 19

Regulated NSR pollutant 

Minor NSR 

thresholds 

for nonattainment 

areas 

tpy) 

Minor NSR 

thresholds 

for attainment areas 

(tpy) 

CO .................................................................................................................................................................................... 5 10 

NOX .................................................................................................................................................................................. 20 5 10 

SO2 .................................................................................................................................................................................. 5 10 

VOC ................................................................................................................................................................................. 21 2 5 

PM .................................................................................................................................................................................... 5 10 

PM10 ................................................................................................................................................................................. 1 5 

PM2.5 ................................................................................................................................................................................ 0 .6 3 

Lead ................................................................................................................................................................................. 0 .1 0 .1 

Fluorides .......................................................................................................................................................................... NA 1 

Sulfuric acid mist ............................................................................................................................................................. NA 2 

H2S ................................................................................................................................................................................... NA 2 

Total reduced sulfur (including H2S) ............................................................................................................................... NA 2 

Reduced sulfur compounds (including H2S) ................................................................................................................... NA 2 

Municipal waste combustor emissions ............................................................................................................................ NA 2 

Municipal solid waste landfill emissions (measured as nonmethane organic compounds) ........................................... NA 10 

There may be sources that have 

emissions that are above the emission 

thresholds defined for a true minor 

source but which fall below the 

applicability levels for specific 

requirements referenced in the FIP. For 

example, the oil and natural gas sector 

NSPS, subpart OOOOa, includes a VOC 

threshold of 6 tpy for storage vessel 

applicability. In cases where a facility 

may have VOC emissions above 5 tpy 

but below 6 tpy, owners or operators 

would not be subject to the storage 

vessel provisions but would still be 

required under the proposed FIP to 

register with their appropriate regional 

office. 

3. What is a true minor source? 

‘‘True minor source,’’ under the 

Federal Indian Country Minor NSR rule, 

means a source that emits, or has the 

potential to emit, regulated NSR 

pollutants in amounts that are less than 

the major source thresholds under either 

the PSD Program at 40 CFR 52.21, or the 

Federal Major NSR Program for 

Nonattainment Areas in Indian Country 

at 40 CFR 49.166–49.173, but equal to 

or greater than the minor NSR 

thresholds in 40 CFR 49.153, without 

the need to take an enforceable 

restriction to reduce its PTE to such 

levels. A source’s PTE includes fugitive 

emissions, to the extent that they are 

quantifiable, only if the source belongs 

to one of the 28 source categories listed 

in part 51, Appendix S, paragraph 

II.A.4(iii) or 40 CFR 52.21(b)(1)(iii), as 

applicable. 

4. What is a general permit? 

The Federal Indian Country Minor 

NSR rule specified the process and 

requirements for using general permits 

to authorize construction and 

modifications at true minor sources as a 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56561 

22 ‘‘Review of New Sources and Modifications in 

Indian Country,’’ U.S. Environmental Protection 

Agency, 76 FR 38770, July 1, 2011, https://

www.federalregister.gov/articles/2011/07/01/2011– 

14981/review-of-new-sources-and-modifications-inindian-country. 

23 ‘‘General Permits and Permits by Rule for the 

Federal Minor New Source Review Program in 

Indian Country for Five Source Categories,’’ U.S. 

Environmental Protection Agency, 80 FR 25068, 

May 1, 2015, http://www.gpo.gov/fdsys/pkg/FR– 

2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf. 

24 ‘‘General Permits and Permits by Rule for the 

Federal Minor New Source Review Program in 

Indian Country,’’ 79 FR 41846, July 17, 2014, http:// 

www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/2014- 

16814.pdf. 

25The ‘‘General Permits and Permits by Rule for 

the Federal Minor New Source Review Program in 

Indian Country’’ was proposed on January 14, 2014 

(79 FR 2546). Proposed changes to the Federal 

Indian Country Minor NSR rule are on pages 79 FR 

2570–2572. Electronic copies are available in the 

docket and in the regulations and standards section 

of our NSR home page located at http://

www.epa.gov/nsr. 

26For more information, see: ‘‘Review of New 

Sources and Modifications in Indian Country 

Amendments to the Registration and Permitting 

Deadlines for True Minor Sources,’’ 79 FR 34231, 

June 16, 2014, http://www.gpo.gov/fdsys/pkg/FR2014-06-16/pdf/2014-14030.pdf. 

27For more information, see: ‘‘Managing 

Emissions from Oil and Natural Gas Production in 

Indian Country,’’ 79 FR 32502, June 5, 2014, http:// 

www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/2014- 

12951.pdf. 

streamlined permitting approach. A 

general permit, for purposes of this 

action, is a permit document that 

contains standardized requirements that 

multiple stationary sources can use. The 

EPA may issue a general permit for 

categories of emission units or 

stationary sources that are similar in 

nature, have substantially similar 

emissions, and would be subject to the 

same or substantially similar permit 

requirements.22 ‘‘Similar in nature’’ 

refers to size, processes, and operating 

conditions. The purpose of a general 

permit is to provide for protection of air 

quality, while simplifying the 

permitting process for similar minor 

sources. General permits offer a costeffective means of issuing permits and 

provide a quicker and simpler 

mechanism for permitting minor 

sources than the site-specific permitting 

process. 

5. What is a permit by rule? 

Like a general permit, a permit by rule 

is a standard set of requirements that 

can apply to multiple stationary sources 

with similar emissions characteristics. 

For purposes of this action, a permit by 

rule would differ from a general permit 

in that the EPA would codify a permit 

by rule directly into the Federal Indian 

Country Minor NSR rule. The process 

for a source to obtain coverage under a 

permit by rule is more streamlined 

compared to a standard general permit, 

or a site-specific permit. 

C. General Permits and Permits by Rule 

for the Federal Minor New Source 

Review Program in Indian Country— 

Final Rules 

On May 1, 2015, the EPA published 

a final rule, ‘‘General Permits and 

Permits by Rule for the Federal Minor 

NSR Program in Indian Country for Five 

Source Categories,’’ to simplify the CAA 

permitting process for certain smaller 

sources of air pollution commonly 

found in Indian country.23 In the action, 

the EPA finalized general permits for 

use in areas covered by the Federal 

Indian Country Minor NSR rule for new 

or modified minor sources in the 

following two source categories: Hot 

mix asphalt plants and stone quarrying, 

crushing and screening facilities. The 

EPA also finalized permits by rule for 

use in areas covered by the Federal 

Indian Country Minor NSR rule for new 

or modified minor sources in three 

source categories: Auto body repair and 

miscellaneous surface coating 

operations; gasoline dispensing 

facilities; and petroleum dry cleaning 

facilities. The EPA also took final action 

authorizing the use of general permits 

established under the program to create 

synthetic minor sources. 

On July 17, 2014, the EPA published 

a proposed rule, ‘‘General Permits and 

Permits by Rule for the Federal Minor 

NSR Program in Indian Country,’’ to 

simplify the CAA permitting process for 

certain other smaller sources of air 

pollution commonly found in Indian 

country.24 In the action, the EPA made 

available draft general permits for use in 

areas covered by the Federal Indian 

Country Minor NSR rule for new or 

modified minor sources in the following 

five source categories: Concrete batch 

plants; boilers; stationary spark ignition 

engines; stationary compression ignition 

engines; and sawmill facilities. The EPA 

also proposed a permit by rule for use 

in areas covered by the Federal Indian 

Country Minor NSR rule for new or 

modified minor sources in the graphic 

arts and printing operations source 

category. 

D. EPA Actions Affecting Oil and 

Natural Gas Minor Sources in Areas 

Covered by the Federal Indian Country 

Minor NSR Rule 

On January 14, 2014, the EPA 

published a proposed rule, ‘‘General 

Permits and Permits by Rule for the 

Federal Minor New Source Review 

Program in Indian Country,’’ 25 that 

included two proposed amendments 

that affected true minor sources in the 

production segment of the oil and 

natural gas sector. The proposed 

amendments were: (1) The extension of 

the deadline by which new true minor 

sources and minor modifications of 

existing true minor sources in the 

production segment of the oil and 

natural gas sector must receive minor 

NSR permits prior to commencing 

construction, from September 2, 2014, 

to March 2, 2016; and (2) an adjustment 

to the deadline by which existing true 

minor sources in the production 

segment of the oil and natural gas sector 

must register, from September 2, 2014, 

to March 2, 2016. On June 16, 2014, the 

EPA finalized those amendments as 

proposed.26

On June 5, 2014, the EPA published 

an advance notice of proposed 

rulemaking (ANPR).27 The purpose of 

the ANPR was to solicit broad feedback 

on the most effective and efficient 

means of implementing the Federal 

Minor NSR Program in Indian Country 

for sources in the production segment of 

the oil and natural gas sector. In it we 

discussed alternatives to site-specific 

permits for new and modified minor 

sources engaged in oil and natural gas 

production activities. The EPA 

requested comments on the alternative 

approaches and other aspects of 

managing air emissions from oil and 

natural gas sources in areas covered by 

the Federal Indian Country Minor NSR 

rule. The ANPR asked for public 

comment on: (1) The inclusion of 

existing minor source emissions in a 

FIP; (2) the advantages and 

disadvantages of available approaches 

(i.e., FIP, permit by rule, or general 

permit) to manage emission impacts 

from the sources in the production 

segment of the oil and natural gas sector 

in areas covered by the Federal Indian 

Country Minor NSR rule; (3) the 

activities and pollutants that warrant 

regulation; (4) the coordination of 

compliance between any approach 

selected and the Federal Minor NSR 

Program in Indian Country; and (5) the 

appropriate emission control 

requirements. 

We received 20 comments on the 

issues raised in the ANPR. Three 

comments were from tribes; one 

comment was from a federal 

government agency; three comments 

were from environmental groups; ten 

comments were from oil and natural gas 

companies or industry trade 

associations; and three comments were 

from anonymous commenters. The 

comments are summarized in a 

document entitled: ‘‘Summary of Public 

Comments for Managing Emissions: Oil 

and Natural Gas Production in Indian 

Country’’ and can be found in Docket ID 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56562 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

28 ‘‘Oil and Natural Gas Sector: Emission 

Standards for New and Modified Sources,’’ signed 

August 18, 2015, http://www.epa.gov/airquality/

oilandgas/actions.html. 

29 ‘‘Source Determination for Certain Emission 

Units in the Oil and Natural Gas Sector,’’ signed 

August 18, 2015, http://www.epa.gov/airquality/

oilandgas/actions.html. 

30For a more detailed discussion about the oil 

and natural gas sector, see the preamble to the 

ANPR at 79 FR 32505–32508, June 5, 2014. 

No. EPA–HQ–OAR–2011–0151, which 

has been incorporated by reference into 

the docket for this action, Docket ID No. 

EPA–HQ–OAR–2014–0606. 

We reviewed and carefully considered 

all the comments we received on the 

ANPR in developing this proposed FIP. 

Although not presented in a comment 

and response format, our consideration 

of the comments is evident throughout 

the discussions in this preamble. 

Commenters who wish their comments 

on the ANPR to also be considered in 

the development of the final FIP must 

resubmit those comments to the docket 

during the open public comment period 

for this proposed action. 

On September 18, 2015, the EPA 

proposed updates to the NSPS for the 

oil and natural gas sector.28 This 

proposed FIP adopts the standards from 

six federal rules, including the oil and 

natural gas NSPS (see Table 2). Future 

changes to these rules could affect 

requirements in the FIP because the 

proposed FIP adopts all or parts of these 

six federal emission standards, 

including future amendments. In 

addition, on September 18, 2015, the 

EPA proposed an oil and natural gas 

source determination rule.29 This action 

is also connected to this FIP as it would 

affect how oil and natural gas sources 

are defined for the purpose of major/

minor source determinations. 

E. What is a FIP? 

Under section 302(y) of the CAA, the 

term ‘‘Federal implementation plan’’ 

means ‘‘. . . a plan (or portion thereof) 

promulgated by the Administrator to fill 

all or a portion of a gap or otherwise 

correct all or a portion of an inadequacy 

in a SIP, and which includes 

enforceable emission limitations or 

other control measures, means or 

techniques (including economic 

incentives, such as marketable permits 

or auctions of emission allowances), and 

provides for attainment of the relevant 

national ambient air quality standard.’’ 

We interpret the reference to a ‘‘gap’’ 

in a SIP as including circumstances 

where a SIP does not apply (i.e., on most 

Indian reservations and other areas of 

Indian country over which an Indian 

tribe, or the EPA, has demonstrated that 

the tribe has jurisdiction) and the 

relevant tribe has not implemented an 

EPA-approved plan. SIPs do not apply 

in these areas. In these circumstances, 

CAA §§ 301(a) and 301(d)(4) and 40 CFR 

49.11(a) authorize the EPA to 

promulgate FIPs as are necessary or 

appropriate to protect air quality. 

The Federal Indian Country Minor 

NSR rule is an example of a FIP. In that 

rule, we identified a regulatory gap that 

could have the effect of adversely 

impacting air quality due to the lack of 

approved minor NSR permit programs 

to regulate construction of new and 

modified minor sources and minor 

modifications of major sources in areas 

covered by the Federal Indian Country 

Minor NSR rule. The EPA promulgated 

the FIP to ensure that air resources in 

areas covered by the Federal Indian 

Country Minor NSR rule are protected 

by establishing a preconstruction 

permitting program to regulate emission 

increases resulting from construction 

and modification activities that are not 

already regulated by the major NSR 

permitting programs. 

Because there are also no currently 

approved TIPs specifically applying to 

the issuance of general permits with 

respect to the reduction of emissions 

related to oil and natural gas production 

facilities, we believe a FIP is needed to 

protect air quality in areas covered by 

the Federal Indian Country Minor NSR 

rule. This proposed FIP would adopt 

legally and practicably enforceable 

requirements to control and reduce air 

emissions from oil and natural gas 

production. Therefore, in this rule, we 

propose to determine that it is necessary 

or appropriate to exercise our 

discretionary authority under sections 

301(a) and 301(d)(4) of the CAA and 40 

CFR 49.11(a) to promulgate a FIP to 

remedy an existing regulatory gap under 

the CAA with respect to oil and natural 

gas production operations in areas 

covered by the Federal Indian Country 

Minor NSR rule where there is no EPAapproved plan in place. 

F. Oil and Natural Gas Sector 

The oil and natural gas sector 

includes operations involved in the 

extraction and production of oil and 

natural gas, as well as the processing, 

transmission and distribution of natural 

gas.30 Specifically for oil, the sector 

includes all operations from the well to 

the point of custody transfer to an oil 

transmission pipeline or other means of 

transportation to a petroleum refinery. 

For natural gas, the sector includes all 

operations from the well to the final end 

user. The oil and natural gas sector can 

generally be separated into four 

segments: (1) Oil and natural gas 

production; (2) natural gas processing; 

(3) natural gas transmission and storage; 

and (4) natural gas distribution. 

The proposed oil and natural gas FIP 

focuses on the first segment, oil and 

natural gas production, because we 

believe the oil and natural gas 

production segment includes the 

majority of the true minor sources in the 

sector that would need to obtain a minor 

source permit in areas covered by the 

Federal Indian Country Minor NSR rule. 

The oil and natural gas production 

segment includes the wells and all 

related processes used in the extraction, 

production, recovery, lifting, 

stabilization, and separation or 

treatment of oil and/or natural gas 

(including condensate). Production 

components may include, but are not 

limited to, wells and related casing 

head, tubing head and ‘‘Christmas tree’’ 

piping, as well as pumps, compressors, 

heater treaters, separators, storage 

vessels, pneumatic devices and natural 

gas dehydrators. Production operations 

also include the well drilling, 

completion and workover processes and 

include all the portable non-selfpropelled apparatuses associated with 

those operations. Production sites 

include not only the sites where the 

wells themselves are located, but also 

include centralized gas and/or liquid 

gathering facilities where oil, 

condensate, produced water, and 

natural gas from several wells may be 

separated, stored, and treated. The 

production segment also includes the 

low to medium pressure, smaller 

diameter, gathering pipelines and 

related components that collect and 

transport the oil, natural gas and other 

materials and wastes from the wells or 

well pads. 

The natural gas production segment 

ends where the natural gas enters a 

natural gas processing plant. In 

situations where there is no processing 

plant, the natural gas production 

segment ends at the point where the 

natural gas enters the transmission 

segment for long-line transport. The 

crude oil production segment ends at 

the storage and load-out terminal which 

is the point of custody transfer to an oil 

pipeline or for transport of the crude oil 

to a petroleum refinery via trucks or 

railcars. The petroleum refinery is not 

considered part of the oil and natural 

gas sector. Thus, with respect to crude 

oil, the oil and natural gas sector ends 

at point of custody transfer where crude 

oil enters an oil transmission pipeline or 

other means of transportation to a 

petroleum refinery. 

Pollutants emitted from these 

activities that would be regulated 

through the proposed Federal Minor 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56563 

31Sour gas is natural gas with more than 5.7 

milligrams of H2S per normal cubic meters (0.25 

grains/100 standard cubic feet), see AP–42 

Compilation of Air Pollutant Emission Factors, 

Chapter 5.0 Introduction to Petroleum Industry, 

Section 5.3 Natural Gas Processing, available at: 

http://www.epa.gov/ttnchie1/ap42/ch05/final/

c05s03.pdf. 

32Proposed 40 CFR part 60, subpart OOOOa 

covers the emission sources covered under existing 

40 CFR part 60, subpart OOOO, as well as adding 

coverage of new and modified emission sources 

beyond those covered in existing 40 CFR part 60, 

subpart OOOO. These additional sources are 

hydraulically fractured oil well completions, 

pneumatic pumps and fugitive emissions from well 

sites and compressor stations. 

33This list includes centrifugal compressors, 

reciprocating compressors, pneumatic controllers, 

pneumatic pumps, fugitive emissions from 

compressor stations, storage vessels. It excludes 

sources located in the transmission and storage 

segment because they are not part of this FIP 

proposal, which focusses on production. 

NSR Program in Indian Country 

(regulated NSR pollutants) include: 

VOC, NOX, SO2, PM, PM10, PM2.5, H2S, 

CO and various sulfur compounds. 

Hydrogen sulfide and SO2 are emitted 

from production and processing 

operations that handle and treat sour 

gas.31

IV. Summary of Proposed Oil and 

Natural Gas FIP 

A. Overview 

This proposed oil and natural gas FIP 

would require owners and operators of 

new and modified existing minor 

sources in the oil and natural gas 

production segment that are located in 

areas covered by the Federal Indian 

Country Minor NSR rule to comply with 

six federal rules. One of the rules this 

FIP proposes to adopt is certain 

requirements of the proposed 40 CFR 

part 60, subpart OOOOa requirements.32

Requirements under proposed NSPS, 

subpart OOOOa that have been 

proposed include those requirements 

that involve oil and natural gas 

production.33

These six rules are listed in Table 2 

and provide requirements for: 

• Storage vessels; 

• Pneumatic controllers in 

production; 

• Compressors (reciprocating and 

centrifugal); 

• Hydraulically fractured oil and gas 

well completions; 

• Pneumatic pumps; 

• Fugitive emissions from well sites 

and compressor stations; 

• Glycol dehydrators; 

• Compression ignition and spark 

ignition engines; 

• Fuel storage tanks; and 

• Process heaters 

The six rules and the provisions of 

each that the proposed oil and natural 

gas FIP would reference are discussed in 

more detail in this section. The 

proposed FIP requirements cover 

emission limitations and standards, 

monitoring, and testing and 

recordkeeping and reporting. For 

purposes of this FIP, we are proposing 

that true minor sources subject to these 

adopted standards must comply with 

these standards, as they currently exist 

or as amended in the future, except for 

those provisions that we specifically 

exclude under the FIP (unless the 

source opts-out of the FIP and obtains 

a source-specific permit). The excluded 

provisions are listed below. (This FIP 

does not change the applicability of the 

specified standards, nor does it relieve 

sources subject to the standards from 

complying with them, independently of 

this FIP.) 

Also discussed in this section are 

proposed features of the FIP and 

proposed amendments to the Federal 

Indian Country Minor NSR rule. 

B. What are the proposed FIP 

requirements? 

We are proposing for purposes of this 

FIP, that owners and operators who 

determine that their new true minor 

source, or the modification of their 

existing true minor source, meets the 

applicability criteria of the proposed FIP 

must comply with all of the applicable 

and relevant requirements of the six 

federal rules listed in Table 2 above as 

written at the time construction or 

reconstruction of the source is begun, 

unless we exclude certain provisions as 

proposed below. In general, for this 

proposed FIP, we are proposing to 

exclude specific provisions of the rules 

because they are not relevant they 

would not apply to oil and natural gas 

production operations (e.g., emission 

points at natural gas processing plants) 

or they apply only to manufacturers and 

not owner/operators. 

For purposes of this FIP, we are 

proposing that true minor sources that 

are subject to 40 CFR part 63, subpart 

DDDDD (National Emission Standards 

for Hazardous Air Pollutants for Major 

Sources: Industrial, Commercial, and 

Institutional Boilers and Process 

Heaters), must comply with all of the 

applicable provisions of the standard as 

written at the time construction or 

reconstruction of the source is begun. 

For purposes of this FIP, we are 

proposing that true minor sources that 

are subject to part 60, subpart IIII— 

Standards of Performance for Stationary 

Compression Ignition Internal 

Combustion Engines, must comply with 

all of the applicable provisions of the 

standard as written at the time 

construction or reconstruction of the 

source is begun, except for the 

following: 

• § 60.4200(a)(1)—Am I subject to this 

subpart? (applies to manufacturers); 

• § 60.4200(b)—Not applicable to 

stationary ignition internal combustion 

engine being tested at an engine test 

cell/stand; 

• § 60.4200(c)—Am I subject to this 

subpart? (area sources and exemptions 

from Title V permits); 

• § 60.4201—What emission 

standards must I meet for nonemergency engines if I am a stationary 

compression ignition internal 

combustion engine manufacturer?; 

• § 60.4202—What emission 

standards must I meet for emergency 

engines if I am a stationary compression 

ignition internal combustion engine 

manufacturer?; 

• § 60.4203—How long must my 

engines meet the emission standards if 

I am a manufacturer of stationary 

compression ignition internal 

combustion engines?; 

• § 60.4210—What are my 

compliance requirements if I am a 

stationary compression ignition internal 

combustion engine manufacturer?; and 

• § 60.4215—What requirements 

must I meet for engines used in Guam, 

American Samoa, or the Commonwealth 

of the Northern Mariana Islands? 

For purposes of this FIP, we are 

proposing that true minor sources that 

are subject to part 60, subpart JJJJ— 

Standards of Performance for Stationary 

Spark Ignition Internal Combustion 

Engines, must comply with all of the 

applicable provisions of the standard as 

written at the time construction or 

reconstruction of the source is begun, 

except for the following: 

• § 60.4230(b)—Not applicable to 

stationary spark ignition internal 

combustion engines being tested at an 

engine test cell/stand; 

• § 60.4230(c)—Exemption for 

obtaining a Title V permit if owner or 

operator of an area source subject to this 

part; 

• § 60.4231 and § 60.4232—Emission 

standards for manufacturers; 

• § 60.4238 through § 60.4242— 

Compliance Requirements for 

Manufacturers; and 

• § 60.4247—Mobile source 

provisions that apply to manufacturers 

of stationary spark ignition internal 

combustion engines or equipment 

containing such engines. 

For purposes of this FIP, we are 

proposing that true minor sources that 

are subject to part 60, subpart Kb— 

Standards of Performance for Volatile 

Organic Liquid Storage Vessels, must 

comply with all of the provisions of the 

standard as written at the time 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56564 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

construction or reconstruction of the 

source is begun, except for the 

following: 

• § 60.112b(c)—Site-specific standard 

for Merck & Co., Inc.’s Stonewall Plant 

in Elkton, Virginia; and 

• § 60.117b(a) and (b)—Delegation of 

authority. 

For purposes of this FIP, we are 

proposing that true minor sources that 

are subject to proposed part 60, subpart 

OOOOa—Standards for New and 

Modified Sources in the Oil and Natural 

Gas Sector, must comply with all of the 

applicable provisions of the standard as 

written at the time construction or 

reconstruction of the source is begun, 

except for the following: 

• § 60.5365a(f)(3)—Equipment 

exemption at processing plant; 

• § 60.5365a(h)(4)—Existing sources 

constructed after August 23, 2011; 

• § 60.5370a(c)—Permit exemption; 

• § 60.5413a(a)(5)—Exemptions from 

performance testing—hazardous waste 

incinerator; 

• § 60.5420a(a)(2)(i)—Advance 

notification requirements for well 

completions; and 

• § 60.5420a(a)(2)(ii)—Advance 

notification requirements of well 

completions when subject to state 

regulation that requires advance 

notification. 

For purposes of this FIP, we are 

proposing that true minor sources that 

are subject to 40 CFR part 63, subpart 

HH—NESHAP from Oil and Natural Gas 

Production Facilities, must comply with 

all of the applicable provisions of the 

standard as written at the time 

construction or reconstruction of the 

source is begun, except for the 

following: 

• § 63.760(a)(2)—Facilities that 

process, upgrade or store hydrocarbon 

liquids; 

• § 63.760(b)(1)(ii)—Each storage 

vessel with the potential for flash 

emissions; 

• § 63.760(b)(1)(iii)—Equipment 

located at natural gas processing plants; 

• § 63.760(g)—Recordkeeping for 

major sources that overlap with other 

regulations for equipment leaks; 

• § 63.764(c)(2)–(3)—Requirements 

for compliance with standards for 

storage vessels and equipment at natural 

gas processing plants, respectively; 

• § 63.766—Storage vessel standards; 

and 

• § 63.769—Equipment leak 

standards. 

Additionally, we are proposing that 

prior to beginning construction, under 

proposed § 49.104, true minor sources 

are required to address procedures for 

assessing threatened and endangered 

species and historic properties. The 

proposed section provides two options: 

(1) A site-specific National 

Environmental Policy Act (NEPA) 

process has been completed for the 

specific oil and natural gas activity, and 

the owner/operator also meets all air 

quality-related requirements as 

specified by the decision document 

(Record of Decision or Finding of No 

Significant Impact) for its NEPA 

analysis (these requirements are 

typically implemented and enforced as 

conditions of an approved Surface Use 

Plan of Operations and/or Application 

for Permit to Drill); or (2) submittal of 

documentation to the EPA Regional 

Office (and to the tribe where the source 

is located/locating) demonstrating that 

the source has completed the screening 

processes specified for consideration of 

threatened and endangered species and 

historic properties and received a 

determination from the EPA stating that 

it has satisfactorily completed these 

processes. (The processes are contained 

in the following document: ‘‘Procedures 

to Address Threatened and Endangered 

Species and Historic Properties for New 

or Modified True Minor Oil and Natural 

Gas Production Sources in Indian 

Country Complying with the Oil and 

Natural Gas Minor Source Federal 

Implementation Plan,’’ http://

www.epa.gov/air/tribal/tribalnsr.html.) 

C. Site-Specific Permits 

We are proposing that owners and 

operators of new and modified true 

minor oil and natural gas sources that 

meet all of the following criteria must 

comply with the requirements 

contained in §§ 49.101 through 49.105 

of this proposed FIP, unless the owner 

or operator opts-out of the FIP and 

instead obtains a site-specific permit per 

proposed §§ 49.101(b)(2) and (3): 

• The facility is an oil and natural gas 

production facility as defined in 

proposed § 49.102; 

• The oil and natural gas production 

facility is located in areas covered by 

the Federal Indian Country Minor NSR 

rule as defined in § 49.152(d) as 

proposed to be amended in this action; 

• The oil and natural gas production 

facility is a new true minor source or a 

minor modification of an existing true 

minor source as determined under 

§ 49.153; 

• The oil and natural gas production 

facility begins construction or 

modification on or after October 3, 2016, 

the proposed extended permitting 

deadline date; and 

• The oil and natural gas production 

facility is not located in a designated 

nonattainment area (the proposed FIP 

would only apply to minor sources in 

the oil and natural gas sector locating or 

expanding in areas designated as 

unclassifiable, attainment, or 

attainment/unclassifiable). 

Sources covered by the Federal Indian 

Country Minor NSR rule that do not 

meet all of the criteria are, thus, not 

eligible to use the FIP and must, 

therefore, obtain a site-specific permit 

prior to beginning construction, on or 

after October 3, 2016. 

If a source owner/operator does not 

want to comply with the FIP, they have 

the option to apply for a site-specific 

permit instead to meet the obligation 

under 40 CFR 49.151(c)(1)(iii)(B) of the 

Federal Indian Country Minor NSR rule 

to obtain a permit prior to commencing 

construction of a new true minor source 

or modification of an existing true 

minor source. As part of the FIP, we are 

proposing specific rule language in 

§ 49.101(b)(2) to allow true minor 

sources proposing to construct on or 

after the proposed, extended deadline 

date of October 3, 2016, to opt-out of the 

default FIP if preferred by the owner or 

operator. We are proposing that an 

owner/operator of a source otherwise 

subject to the proposed FIP can opt out 

and seek a true minor source sitespecific permit under 40 CFR 

49.151(c)(1)(iii). 

We are also proposing that the EPA, 

or other Reviewing Authority, may 

require owners or operators to obtain a 

site-specific permit in lieu of complying 

with the proposed FIP to ensure 

protection of the NAAQS. Under 

§ 49.101(b)(3), we are proposing to 

specify that the Reviewing Authority 

may require an owner or operator of a 

source, in certain areas of Indian 

country proposing to construct on or 

after October 3, 2016, to apply for a sitespecific permit for a new true minor 

source or minor modification of an 

existing true minor source. In particular, 

the Reviewing Authority may determine 

that the source is not sufficiently 

controlled under the proposed FIP to 

protect the NAAQS in the area of the 

proposed project (e.g., if the measured 

design value for the area is close to or 

above the level of the NAAQS). In that 

circumstance, the Reviewing Authority 

can require the minor source to obtain 

a site-specific permit. The agency 

recommends at the time of registration, 

the owner/operator of all new sources or 

all sources scheduled for modification 

contact the Reviewing Authority for a 

review of the air quality status of that 

area, and the possibility of a 

requirement for a site specific permit. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56565 

V. Summary of Proposed Amendments 

to the Federal Indian Country Minor 

NSR Rule 

Today’s action proposes several 

amendments to the Federal Indian 

Country Minor NSR rule. First, we are 

proposing to revise § 49.151(b)(1) to add 

new text regarding the purpose of the 

Federal Minor NSR Program in Indian 

Country. The revised text indicates that 

the program satisfies the requirements 

of section 110(a)(2)(C) of the CAA by 

establishing a preconstruction 

permitting program for all new and 

modified minor sources (minor sources) 

and minor modifications at major 

sources located in Indian reservations 

and other areas of Indian country over 

which an Indian tribe, or the EPA, has 

demonstrated that the tribe has 

jurisdiction and where there is no EPAapproved plan in place and by 

establishing a FIP (§§ 49.101 to 49.105) 

for oil and natural gas production true 

minor sources located in such areas of 

Indian country. 

Second, we are proposing to revise 

§ 49.151(c)(1)(iii)(A) to conform the 

registration deadline to the proposed 

extended permitting deadline in 

§ 49.151(c)(1)(iii)(B). 

Third, we are proposing to revise 

§ 49.151(c)(1)(iii)(B) to establish a 

deadline by which new and modified 

true minor sources in the oil and natural 

gas sector that are located in or plan to 

locate in Indian reservations or other 

areas of Indian country over which an 

Indian tribe, or the EPA, has 

demonstrated that the tribe has 

jurisdiction must comply with the FIP 

in lieu of obtaining a minor NSR permit 

(or obtain a minor source permit if the 

source opts out of the FIP). We are 

proposing to extend the permitting 

deadline from March 2, 2016, to October 

3, 2016. 

Fourth, we are proposing to revise 

§ 49.151(d)(1), (2) and (4) to incorporate 

compliance with the FIP. We are 

proposing to revise § 49.151(d)(1) to 

indicate that if the owner/operator of a 

source begins construction of a new 

source or modification that is subject to 

this program after the applicable date 

(September 2, 2014, for all true minor 

sources, except oil and natural gas 

sources, and October 3, 2016, for oil and 

natural gas true minor sources) without 

applying for and receiving a permit 

pursuant to this program or complying 

with the FIP for oil and natural gas 

production, the owner/operator of the 

source will be subject to appropriate 

enforcement action. We are proposing to 

revise § 49.151(d)(2) to indicate that if 

you do not construct or operate your 

source or modification in accordance 

with the terms of your minor NSR 

permit or the FIP for oil and natural gas 

production, you source will be subject 

to appropriate enforcement action. We 

are proposing to revise § 49.151(d)(4) to 

indicate that issuance of a permit or 

compliance with the FIP for oil and 

natural gas production does not relieve 

the owner/operator of a source of the 

responsibility to comply fully with 

applicable provisions of any EPAapproved implementation plan or FIP or 

any other requirements under 

applicable law. 

Fifth, we are proposing to revise 

§§ 49.153(a)(1)(i)(B) and (ii)(B) to 

establish that oil and natural gas true 

minor sources are required to comply 

with the FIP, unless the owner/operator 

of a source opts-out or is otherwise 

required by the EPA to obtain a minor 

source permit. Existing 

§ 49.153(a)(1)(i)(B) requires the owner/

operator of a new source to determine 

whether the source’s PTE is equal to or 

greater than the corresponding minor 

NSR threshold. If it is, then the source 

is subject to the preconstruction 

requirements of the Federal Indian 

Country Minor NSR Permit rule for that 

pollutant. The proposed amendment 

adds a clause to the end of the 

paragraph stating that for oil and natural 

gas production sources, if the PTE for 

oil and natural gas production sources 

is equal to or greater than the 

corresponding minor NSR threshold, 

such sources shall instead comply with 

the requirements of proposed §§ 49.101 

to 49.105, unless the owner/operator of 

the source opts-out of the FIP pursuant 

to proposed § 49.101(b)(2) or is required 

by the EPA to obtain a source-specific 

minor source permit pursuant to 

proposed § 49.101(b)(3). 

Existing § 49.153(a)(1)(ii)(B) requires 

the owner/operator of modified sources 

to determine whether the increase in 

allowable emissions resulting from the 

modification would be equal to or 

greater than the minor NSR threshold 

for the pollutant being evaluated. If it is, 

the source is subject to the 

preconstruction requirements of the 

Federal Indian Country Minor NSR rule 

for that pollutant. The proposed 

amendment adds a clause to the end of 

the paragraph stating that, for oil and 

natural gas production sources, if the 

PTE for oil and natural gas production 

sources is equal to or greater than the 

corresponding minor NSR threshold, 

such sources shall instead comply with 

the requirements of proposed §§ 49.101 

to 49.105, unless the owner/operator of 

the source opts-out of the proposed FIP 

pursuant to proposed § 49.101(b)(2) or is 

required by the EPA to obtain a minor 

source permit pursuant to proposed 

§ 49.101(b)(3). 

Sixth, we are proposing to revise 

§§ 49.160(c)(1)(ii) and (iii), to add 

§ 49.160(c)(1)(iv) and to revise 

§ 49.160(c)(4). For § 49.160(c)(1)(ii), we 

are proposing to conform the 

registration deadline to the proposed 

extended permitting deadline in 

§ 49.151(c)(1)(iii)(B). For 

§ 49.160(c)(1)(iii), we are proposing 

language to indicate that if your true 

minor source is an oil and natural gas 

source, and you commence construction 

or modification of your source on or 

after October 3, 2016, you must report 

your source’s actual emissions (if 

available) as part of your permit 

application or registration of oil and 

natural gas production sources using a 

form provided by the EPA (‘‘Registration 

for New Oil and Natural Gas Minor 

Sources and Minor Modifications at 

Existing True Minor Oil and Natural Gas 

Sources,’’ http://www.epa.gov/air/tribal/ 

tribalnsr.html). Your permit application 

or registration form for oil and natural 

gas production sources will be used to 

fulfill the registration requirements 

described in § 49.160(c)(2). This 

registration should occur each time an 

existing true minor source that would be 

subject to the proposed FIP undergoes a 

modification. For § 49.160(c)(1)(iv), we 

are proposing to add a paragraph 

indicating that sources subject to the 

proposed FIP must still satisfy the 

requirement to register under the 

Federal Indian Country Minor NSR rule 

by using the registration form provided 

by the EPA that is tailored to the oil and 

natural gas sector rather than a permit 

application. The registration form 

contains the information required in 

§ 49.160(c)(2). After being reviewed by 

the permitting authority, completed 

registration forms will be available 

online on the EPA Regional Office Web 

sites. For § 49.160(c)(4), we are 

proposing to add language indicating 

that submitting a registration form does 

not relieve a source of the requirement 

to comply with the FIP for oil and 

natural gas production if the source or 

any physical or operational change at 

the source would be subject to any 

minor NSR rule. 

Finally, we are proposing to revise the 

definition of Indian country in § 49.152 

to comport with a court decision that 

addressed the EPA’s authority to 

implement the Federal Indian Country 

Minor NSR rule in areas covered by the 

Federal Indian Country Minor NSR rule: 

Oklahoma Dept. of Environmental 

Quality v. EPA, 740 F.3d 185 (D.C. Cir. 

2014). This court decision also affects 

the definition of Indian country under 

the Federal Major NSR Program in 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56566 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

34The NEPA regulatory requirements can be 

found at 40 CFR parts 1500–1508. 35The NEPA review process produces a decision 

document that is either a Record of Decision or a 

Finding of No Significant Impact. 

36NEPA regulatory requirements can be found at 

40 CFR parts 1500–1508. 

Indian Country so we are changing the 

definition under the Federal Indian 

Country Major NSR rule § 49.167. 

The Federal Indian Country Minor 

NSR rule and Federal Indian Country 

Major NSR rule currently define ‘‘Indian 

country’’ to include three categories of 

lands consistent with 18 U.S.C. 1151, 

i.e., Indian reservations, dependent 

Indian communities, and Indian 

allotments. The U.S. Court of Appeals 

for the District of Columbia Circuit 

vacated the rule with respect to nonreservation areas of Indian country (i.e., 

dependent Indian communities and 

Indian allotments) (Oklahoma Dept. of 

Environmental Quality v. EPA, 740 F.3d 

185 (D.C. Cir. 2014)). The court held 

that the states, not tribes or the EPA, 

have initial primary responsibility for 

implementation plans under CAA 

section 110 in non-reservation areas of 

Indian country in the absence of a 

demonstration of tribal jurisdiction by 

the EPA or a tribe. We are proposing to 

revise the definition of Indian country 

in §§ 49.152(d) and 49.167 to add a 

clause indicating that, for purposes of 

the Federal Indian Country Minor NSR 

rule and the Federal Indian Country 

Major NSR rule, references to Indian 

country include all Indian reservation 

lands where no EPA-approved program 

is in place and all other areas of Indian 

country where no EPA-approved 

program is in place and over which an 

Indian tribe, or the EPA, has 

demonstrated that a tribe has 

jurisdiction. 

These proposed changes will address 

the minor NSR permitting requirements 

for the affected sources, while reducing 

the permitting burden through a more 

efficient and effective means of 

implementing the requirements. 

VI. Implementation Issues 

A. Requirements Relating to Threatened 

or Endangered Species and Historic 

Properties 

1. Overview 

The Endangered Species Act (ESA) 

requires federal agencies to ensure, in 

consultation with the U.S. Fish and 

Wildlife Service and/or the National 

Marine Fisheries Service (the Services), 

that any action they authorize, fund, or 

carry out will not likely jeopardize the 

continued existence of any listed 

threatened or endangered species, or 

destroy or adversely modify the 

designated critical habitat of such 

species. 

The National Historic Preservation 

Act (NHPA) requires federal agencies to 

take into account the effects of their 

undertakings on historic properties— 

i.e., properties that are either listed on, 

or eligible for listing on, the National 

Register of Historic Places—and to 

provide the Advisory Council on 

Historic Preservation (the Council) a 

reasonable opportunity to comment on 

such undertakings. 

In developing the proposed FIP, EPA 

has considered issues regarding listed 

species and historic properties and has 

included provisions designed to ensure 

appropriate review of potential impacts 

on the protected resources. Although 

the individual coverage of each source 

that would operate under the FIP would 

not constitute a separate triggering 

action for ESA or NHPA purposes, we 

believe that the proposed FIP’s 

procedures relating to listed threatened 

or endangered species and historic 

properties provide an appropriate sitespecific means of addressing issues 

regarding potential impacts on those 

resources in connection with sources 

that could be covered under the FIP. We 

have provided two options, as described 

below, for sources to meet the proposed 

FIP’s requirements regarding these 

resources. 

a. Sources for Which a Prior ESA and/ 

or NHPA Assessment Has Been 

Completed 

In most of Indian country, oil and 

natural gas production activities cannot 

begin before an owner/operator has 

obtained an approved application for 

permit to drill (APD). This authorization 

will include a National Environmental 

Policy Act Review (NEPA) 34 review that 

is typically provided by certain agencies 

within the U.S. Department of the 

Interior—the Bureau of Land 

Management (BLM) and the Bureau of 

Indian Affairs (BIA), (herein after 

referred to as ‘‘Federal Land Managers 

(FLMs)’’ for simplicity).35 Under this 

review process, BLM is typically 

responsible for authorizing the mineral 

rights (i.e., permission to produce oil 

and/or natural gas) and BIA for 

authorizing surface activities (i.e., 

preparing the site for well-drilling 

activities and operating equipment for 

the production of oil and/or natural 

gas). (There are also cases where only 

one of these agencies will be involved 

or where another federal agency is 

involved as well.) Such APD 

authorizations are considered general 

triggering actions under the ESA and 

NHPA, and the FLMs will typically 

conduct review procedures to ensure 

that the requirements of these statutes 

are met. Frequently, these reviews occur 

in connection with an analysis 

performed by the appropriate FLM.36

Since an oil and gas exploration/

production site involves surface 

activities and accessing the mineral 

resource below, thereby potentially 

requiring an approval from both BLM 

and BIA, these agencies often enter into 

agreements where one agency takes the 

lead in the overall NEPA (and 

associated ESA and NHPA) review 

process (i.e., evaluations of the potential 

impacts regarding mineral rights and 

surface rights are combined). The lead 

agency may vary depending on the 

particular Indian reservation at issue. 

We believe that a majority of oil and gas 

activity in areas covered by the Federal 

Indian Country Minor NSR rule occurs 

on land within the jurisdiction of these 

agencies. This means that before an oil 

and natural gas owner/operator can 

begin construction under the FIP, the 

APD must be approved by the FLMs. As 

part of the NEPA review process, the 

following steps are generally performed: 

• For the ESA, impacts to threatened 

and endangered species and critical 

habitats are assessed through interaction 

with local U.S. Fish and Wildlife 

Service field offices, with appropriate 

measures put in place to protect those 

resources. These conditions are 

incorporated in the FLMs’ 

authorization. 

• For the NHPA, impacts to historic 

properties are evaluated by interaction 

with State and/or Tribal Historic 

Preservation Offices. Approval of an 

action will address any appropriate 

measures needed to protect a historic 

property (e.g., production equipment 

must be located a specified distance 

from a designated structure/road/etc.). 

The assessment(s) conducted by the 

FLMs will likely consider a facility’s air 

emissions with respect to well drilling, 

completion, well-pad construction 

activities and future operations and may 

require measures to reduce air 

emissions. In addition to any air 

pollution measures implemented 

through the FLM’s NEPA (and 

associated ESA and NHPA) review, our 

proposed FIP would require each source 

to comply with the six federal rules 

listed in Table 2 above in order to 

protect ambient air quality. The 

measures employed under the proposed 

FIP would require compliance with 

specific requirements from the NSPS 

and NESHAP control requirements for 

the following emission points: 

compression ignition and spark ignition 

engines, compressors (reciprocating and 

centrifugal), fuel storage tanks, fugitive 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56567 

37These procedures are available for sources 

potentially subject to this proposed FIP in a 

document entitled: ‘‘Procedures to Address 

Threatened and Endangered Species and Historic 

Properties for New or Modified True Minor Oil and 

Natural Gas Production Sources in Indian Country 

Complying with the Oil and Natural Gas Minor 

Source Federal Implementation Plan,’’ http://

www.epa.gov/air/tribal/tribalnsr.html. 

38 ‘‘General Permits and Permits by Rule for the 

Federal Minor New Source Review Program in 

Indian Country,’’ 79 FR 2546, January 14, 2014, 

http://www.gpo.gov/fdsys/pkg/FR-2014-01-14/pdf/

2013-30345.pdf. 

emissions from well sites and 

compressor stations, glycol dehydrators, 

hydraulically fractured oil and gas well 

completions, pneumatic controllers in 

production, pneumatic pumps, process 

heaters and storage vessels. We believe 

the reductions achieved through the 

required emission controls, by virtue of 

being protective of ambient air quality, 

are also protective of threatened and 

endangered species, their habitats and 

historic properties. 

Where the FLM(s) have concluded 

ESA and/or NHPA compliance as part of 

the APD process in connection with a 

particular source—whether as part of 

the FLM’s NEPA review or otherwise— 

the source would be able to rely on that 

prior review for compliance with the 

proposed FIP’s listed species (if prior 

ESA compliance has occurred) and 

historic properties (if prior NHPA 

compliance has occurred) requirements. 

No further assessment of impacts on 

these resources would be required by 

the proposed FIP as any such 

assessment would be duplicative of the 

prior work conducted by the FLM(s). 

We would require that documentation 

of completion of the APD process be 

provided before the owner/operator 

begins construction under the FIP. 

b. Sources for Which No Prior ESA and/ 

or NHPA Assessment Has Been 

Completed 

For oil and natural gas production 

activities that do not undergo ESA and/ 

or NHPA review as part of an 

authorization from the FLM(s), we 

propose that those facilities first 

complete screening procedures relevant 

to the particular resource that has not 

previously been reviewed before the 

owner/operator can begin construction 

under the proposed FIP. These 

screening procedures are similar to 

those currently in place for existing 

general permits and permits by rule in 

areas covered by the Federal Indian 

Country Minor NSR rule before the 

owner/operator can begin construction 

under the proposed FIP. Similar to our 

procedure for general permits and 

permits by rule, for the proposed FIP, 

once an owner/operator completes the 

screening procedures,37 they would 

submit documentation to the EPA 

Regional Office and receive written 

verification of completion before 

beginning construction. As we 

explained in the development of both 

the general permits and permits by rule 

for the ‘‘General Permits and Permits by 

Rule for the Federal Minor New Source 

Review Program in Indian Country,’’ 38

to ensure listed species and critical 

habitats and historic properties are 

protected, we developed a framework 

for those permitting mechanisms 

requiring the source owner/operator to 

identify and assess potential effects to 

protected resources before obtaining 

coverage. Requiring this assessment aids 

in identifying any concerns related to 

potential impacts on listed species/

critical habitat or historic properties 

early in the process when the greatest 

opportunities to mitigate or avoid any 

impacts—including changes to the 

facility’s location or footprint—are 

available. The EPA believes that 

requiring a similar process in the air 

quality permit by rule, the general air 

quality permit, this proposed FIP and 

the general stormwater permits, will 

streamline the process for all concerned: 

the applicants, the EPA, the tribes, and 

the Services. 

B. What is the effect of this proposed FIP 

on other Indian Country FIPs? 

The objectives of this proposed FIP 

are to fulfill the requirements of the 

Federal Indian Country Minor NSR rule 

to address the air quality impacts of new 

and modified true minor sources and to 

impose appropriate air pollution control 

requirements that protect the NAAQS, 

while providing an alternative to 

obtaining preconstruction approval 

through the NSR preconstruction 

permitting process. This proposed FIP 

does not replace any other FIPs 

promulgated under the CAA for oil and 

natural gas sector sources in areas 

covered by the Federal Indian Country 

Minor NSR rule. An oil and natural gas 

source in areas covered by the Federal 

Indian Country Minor NSR rule that is 

subject to another CAA FIP must also 

comply with this proposed FIP. 

Generally, in cases where emission 

sources are already subject to a CAA FIP 

with more stringent requirements than 

those established for equivalent 

emission sources under this proposed 

FIP, the more stringent requirements 

supersede the requirements in this 

proposed FIP. Conversely, if 

requirements for certain emission 

sources in this proposed FIP are more 

stringent than requirements for 

equivalent emission sources in another 

applicable CAA FIP, then the 

requirements in this proposed FIP 

supersede the requirements for 

equivalent emission sources in the other 

FIP. In some cases, other applicable 

CAA FIPs defer to less stringent 

requirements in other federal CAA rules 

to avoid duplicative requirements. 

Those cases would provide an exception 

to this general concept. 

In the case of the FIP for Oil and 

Natural Gas Well Production Facilities 

on the Fort Berthold Indian Reservation 

(FBIR FIP) at 40 CFR 49.4161–4168 (78 

FR 17836), we stated in the preamble to 

that rulemaking that the FBIR FIP is not 

a permitting program and does not 

exempt facilities from any federal CAA 

permitting requirements, which would 

include compliance with this proposed 

FIP, and PSD preconstruction 

permitting requirements at 40 CFR 

52.21, Federal Indian Country NSR 

permitting requirements for minor 

sources at 40 CFR 49.151, or federal 

Title V operating permit requirements at 

40 CFR part 71. The FBIR FIP does 

provide legal and practical 

enforceability for the use of VOC 

emission controls, and compliant 

emission reductions achieved can be 

taken into account in calculating 

potential VOC emissions when 

determining the applicability of CAA 

permitting requirements. However, 

facilities subject to the FBIR FIP may 

emit VOCs from emission sources not 

regulated under the FBIR FIP, and/or 

may emit other NSR-regulated 

pollutants not regulated by the FBIR FIP 

at levels above the minor source 

thresholds in the Federal Indian 

Country Minor NSR rule or the major 

source PSD thresholds at 40 CFR 52.21, 

thus triggering NSR permitting 

requirements. 

This proposed oil and natural gas FIP 

does not exempt facilities from 

complying with the FBIR FIP. The EPA 

recognizes that the VOC emission 

control requirements under the FBIR 

FIP are in some instances more stringent 

than the VOC emission reduction 

requirements of this proposed oil and 

natural gas FIP. For instance, the FBIR 

FIP requires up to 98 percent reduction 

of VOC emissions from storage tanks, 

while this proposed FIP, which relies on 

applicability under the 2015 proposed 

NSPS, subpart OOOOa, proposes to 

require 95 percent reduction of VOC 

emissions from storage vessels. To avoid 

duplicative requirements, the FBIR FIP 

specifies that facilities operating 

emission sources regulated under the 

FBIR FIP that are also subject to the 

storage vessel requirements under the 

2015 proposed NSPS, subpart OOOOa, 

must comply with the applicable 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56568 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

39True minor sources in Indian country in the oil 

and natural gas sector are also required to register 

under 40 CFR 14.160 and provide certain 

information about their new or modified operations. 

40 ‘‘General Permits and Permits by Rule for the 

Federal Minor New Source Review Program in 

Indian Country for Five Source Categories,’’ U.S. 

Environmental Protection Agency, 80 FR 25068, 

May 1, 2015, http://www.gpo.gov/fdsys/pkg/FR2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf. 

requirements of the 2015 proposed 

NSPS, subpart OOOOa for those 

emission sources, rather than the 

requirements for produced oil and water 

storage tanks in the FBIR FIP. The FBIR 

FIP also regulates VOC emissions from 

oil and natural gas well completions, 

well casing heads, and heater treaters at 

oil and natural gas production facilities, 

which are not currently regulated by 

NSPS subpart OOOO, and, thus, are not 

part of this proposed FIP. Hydraulically 

fractured oil well completions were 

proposed for regulation in the 2015 

proposed NSPS, subpart OOOOa signed 

on August 18, 2015. Therefore, a new or 

modified oil and natural gas well 

production facility that is subject to the 

FBIR FIP that would also be subject to 

this proposed FIP once final to meet the 

requirements of the Federal Indian 

Country Minor NSR rule would also 

need to comply with the FBIR FIP for 

casing head natural gas emissions and 

heater treater produced natural gas 

emissions. 

VII. Rationale for Proposed FIP 

A. Why are we choosing a FIP as an 

alternative to site-specific permits, 

general permits and permits by rule? 

In the ANPR, we asked for comment 

on three alternatives to site-specific 

permits: general permits, permits by 

rule, and FIPs. Although commenters on 

the ANPR differed in their opinions on 

the best approach, the alternative 

approach garnering the most support 

was a FIP. Commenters supported using 

a FIP because it would streamline the 

permitting approach, eliminate the need 

for preconstruction approval from the 

permitting authority and apply 

requirements directly to sources. 

Commenters also supported a FIP 

because appropriate control measures 

would be in place and would provide 

the EPA and tribes assurances that 

construction and modification activities 

would be adequately and appropriately 

regulated. Some commenters supported 

a FIP because it could apply to existing 

sources. One commenter argued against 

a FIP approach because a FIP does not 

afford the same level of opportunity for 

a regulatory authority or the public to 

review, provide input on, or object to 

sources’ coverage under a FIP as 

compared to a general permit. 

We committed to developing an 

alternative to site-specific permits 

primarily to avoid delays in new 

construction due to our inability to 

process hundreds of true minor source 

permits in an acceptable timeframe. A 

FIP provides a regulatory tool that 

protects air quality, streamlines 

implementation and compliance 

assurance, and meets the EPA’s 

obligation to permit minor NSR sources. 

The alternatives—site-specific permits, 

general permits and permits by rule—do 

not satisfy all of these concerns. 

Both a general permit and a permit by 

rule provide a more streamlined 

approach for authorizing construction 

and modification of a source compared 

to site-specific permitting. A FIP, 

however, has the advantage of not 

requiring a source to initiate advance 

review and obtain approval of coverage 

from the Reviewing Authority before 

beginning construction (as would a 

general permit), and it would reduce the 

resource burden on reviewing 

authorities associated with processing 

the potentially large volume of requests 

from true minor sources in the oil and 

natural gas production segment for 

coverage under a general permit. So, 

from those standpoints a FIP is 

preferable to a general permit. 

In comparison to a general permit, a 

FIP would provide less upfront scrutiny 

of an individual new construction or 

modification project and a citizen 

would not have the ability to object to 

a specific source gaining coverage. 

While we recognize these concerns, we 

believe that the proposed oil and natural 

gas FIP contains a robust set of emission 

control requirements and compliance 

monitoring and reporting provisions 

that will help ensure that a new or 

modified true minor source would not 

cause or contribute to a NAAQS or PSD 

increment violation.39 In addition, any 

citizen could enforce the provisions of 

a FIP, as that person can with respect to 

requirements of any other 

implementation plan or CAA 

requirement, by commencing a civil 

action in the district court in the 

judicial district in which the source is 

located. Citizens retain the right under 

CAA section 304(a)(1) to commence a 

civil action ‘‘against any person . . . 

who is alleged to have violated . . . or 

to be in violation of (A) an emission 

standard or limitation under this [Act] 

. . . .’’ The Administrator also would 

retain the ability to enforce the 

requirements of a FIP under section 

113(a)(1) of the CAA. 

Another streamlined method, the 

permit by rule approach, also lacks the 

upfront scrutiny found with a general 

permit. In the first set of permits by rule 

that the EPA has issued for use in areas 

covered by the Federal Indian Country 

Minor NSR rule, we established the 

process for individual sources to obtain 

coverage under the EPA’s permits by 

rule. It is a source notification process 

in which individual sources, unlike the 

general permit process, are not required 

to obtain the EPA’s review and approval 

of a permit application prior to 

beginning construction.40 In a manner 

similar to a FIP, a permit by rule 

establishes a set of requirements to 

which a source becomes subject when it 

obtains coverage under that permit by 

submitting a Notification of Coverage 

Form to the EPA, which the EPA then 

posts online. (For the sources subject to 

this proposed FIP, the EPA intends to 

post the registration forms that the EPA 

receives (see 40 CFR 49.160(c)). Thus, 

on the issue of public scrutiny, the FIP 

and the permit by rule approaches are 

essentially the same. The EPA prefers 

the FIP because it provides more 

certainty for affected sources than the 

permit by rule approach and, as 

discussed below, does not have any 

significant disadvantages as compared 

to the permit by rule approach. 

Unlike NSR general permits and 

permits by rule, which cannot be used 

to address existing sources, a FIP could 

extend to existing sources; this is a key 

distinction between general permits and 

permits by rule versus a FIP. However, 

this proposal does not contain 

requirements for existing sources. The 

EPA’s plan is to address existing 

sources, to the extent necessary, in the 

context of area- or reservation-specific 

FIPs designed to address areas or 

reservations with air quality issues 

(including nonattainment areas), as they 

arise, that are associated with oil and 

natural gas activities. Such FIP(s) will 

need to address, as necessary, 

requirements for existing sources, as 

well as additional requirements beyond 

those in this proposal for new and 

modified sources. 

B. How did we select which equipment 

to include in this proposed FIP? 

In determining which equipment to 

include in the proposed oil and natural 

gas FIP, we reviewed the EPA 

regulations that apply to emission units 

within the oil and natural gas 

production segment. We have relied 

substantially on analyses performed in 

support of the 2015 proposed NSPS, 

subpart OOOOa to help determine 

which emission units the EPA should 

consider regulating in the oil and 

natural gas sector in areas covered by 

the Federal Indian Country Minor NSR 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56569 

41 ‘‘Background Technical Support Document for 

the Proposed New Source Performance Standards, 

40 CFR part 60, subpart OOOOa,’’ http://

www.epa.gov/airquality/oilandgas/actions.html. 

rule as part of this proposed FIP.41 In 

addition to the production segment 

sources proposed to be covered under 

NSPS, subpart OOOOa, in today’s FIP, 

we are proposing requirements from 

existing EPA standards for three 

emission sources not covered by the 

NSPS, subpart OOOOa because they are 

present at oil and natural gas production 

sites and emit NOX and/or VOC: 

engines, process heaters and glycol 

dehydration units. Three of the six 

federal rules listed in Table 2 above 

regulate these sources of pollution, 

among others. Therefore, we determined 

that a combination of existing federal 

regulations and the 2015 proposed 

NSPS, subpart OOOOa provides a 

comprehensive and consistent 

regulatory approach for addressing true 

minor oil and natural gas production 

sources in areas covered by the Federal 

Indian Country Minor NSR rule. 

We have concluded that these federal 

regulations employ emission limitations 

that are technically and economically 

feasible, and cost effective because we 

have vetted the existing regulations via 

the public comment process and sources 

are currently complying with these 

federal standards, including new and 

modified sources in the oil and natural 

gas sector located in areas covered by 

the Federal Indian Country Minor NSR 

rule. The referenced NSPS are all 

promulgated pursuant to the EPA’s 

authority under CAA section 111. Under 

CAA section 111(a), the emission 

limitations for all the affected sources, 

except process heaters and glycol 

dehydrators, ‘‘reflect the degree of 

emission limitation achievable through 

the application of the best system of 

emission reduction which (taking into 

account the cost of achieving such 

reduction and any non-air quality health 

and environmental impact and energy 

requirements) the Administrator 

determines have been adequately 

demonstrated.’’ We refer to this level of 

control as the Best System of Emission 

Reduction (BSER). In determining 

BSER, we typically conduct a 

technology review that identifies what 

emission reduction systems exist and 

how much they reduce air pollution in 

practice. For each control system 

identified, we also evaluate its costs and 

other impacts. 

The NESHAP for process heaters and 

glycol dehydrators are promulgated 

pursuant to the EPA’s authority under 

CAA section 112. Under CAA section 

112(d)(3), the emission limitations for 

glycol dehydrators and process heaters 

at major sources of hazardous air 

pollutants (HAPs) reflect MACT. The 

MACT emission limitation for new 

sources cannot be less stringent than the 

emission control achieved in practice by 

the best-controlled similar source, 

without considering costs. In addition, 

under CAA section 112(d)(5), the 

emission reduction requirements for 

triethylene glycol dehydrators at area 

sources reflect ‘‘generally available 

control technology’’ (GACT). For GACT 

there is no statutory minimum level of 

emissions reduction for new or existing 

sources and costs can be considered. We 

are proposing that the oil and natural 

gas FIP require sources to comply with 

the applicable MACT (for glycol 

dehydrators and process heaters located 

at major sources of HAP) or GACT (for 

glycol dehydrators located at area 

sources of HAP) emission limitations. 

Because the individual HAP pollutants 

regulated from glycol dehydrators by the 

NESHAP (and to some degree from 

process heaters, as well) for oil and gas 

production sources are also VOC, which 

are regulated NSR pollutants, the 

proposed FIP would create enforceable 

VOC reduction requirements for glycol 

dehydrators and process heaters. HAPs 

would serve as a surrogate for VOC with 

respect to emission limitations, 

monitoring, testing and compliance. In 

addition, compliance with 40 CFR part 

63, subpart DDDDD MACT also 

provides beneficial reductions of nontargeted NSR pollutants, i.e., NOX. 

The rationale supporting the 

applicability, emission limitations, 

monitoring, recordkeeping, reporting, 

and other provisions for each of the six 

federal rules is found in the preambles 

and background documents for those 

rulemakings. The six federal rules are 

available on the Electronic Code of 

Federal Regulations at: http://

www.ecfr.gov/cgi-bin/

ECFR?page=browse. 

C. Why are we excluding existing 

sources from this proposed oil and 

natural gas FIP? 

This section provides a brief overview 

of some of the significant comments on 

the inclusion of existing sources in a 

FIP, followed by a discussion of the 

EPA’s rationale for why requirements 

for existing sources are not included in 

this proposed action. A complete 

summary of the comments on this and 

other issues we raised in the June 5, 

2014, ANPR, can be found in Docket ID 

No. EPA–HQ–OAR–2011–0151, which 

has been incorporated by reference into 

the docket for this action, Docket ID No. 

EPA–HQ–OAR–2014–0606. 

1. Comments in Favor of Regulation of 

Existing Sources 

In response to the ANPR the EPA 

issued on June 5, 2014 (79 FR 32502), 

several commenters expressed support 

for the regulation of existing sources 

under a minor source permitting 

program (i.e., a FIP) for oil and natural 

gas sources. Two commenters agreed 

with the ANPR that the cumulative 

impacts from existing sources could 

exceed that of large, new major sources. 

Some commenters voiced concerns 

about the impact of unregulated existing 

sources on the health and welfare of 

tribal members. One commenter 

asserted that there is substantial 

evidence demonstrating that existing oil 

and gas sources are responsible for 

considerable air pollution emissions 

within Indian country, noting that in 

response to the Federal Indian Country 

Minor NSR rule, Region 8 received 

approximately 6,300 registrations from 

existing minor sources in the oil and 

natural gas sector. The commenter 

asserted that regions like the Uintah 

Basin are already exceeding the ozone 

NAAQS, and even in regions where 

there are not yet NAAQS violations, 

emissions from oil and natural gas 

sources contribute to elevated ozone 

levels and HAP emissions. The 

commenter stated that the EPA’s 

approach must reduce emissions from 

existing sources in order for the EPA to 

meet its duty to protect public health 

and welfare, in addition to improving 

visibility impairment and nitrogen 

deposition in national parks and 

wilderness areas. Another commenter 

indicated that they could provide 

modeling and monitoring data to the 

EPA demonstrating air quality impacts 

to the National Park System. One 

commenter also argued that requiring 

existing source controls would reduce 

methane emissions and subsequent 

climate impacts. 

One commenter argued that the EPA 

must regulate existing sources to fulfill 

goals directed by the Obama 

administration, including 

recommendations from the Secretary of 

Energy’s Advisory Board that ‘‘measures 

should be taken to reduce emissions of 

air pollutants, ozone precursors, and 

methane as quickly as practicable.’’ One 

commenter asserted that the EPA has 

the statutory authority to implement 

regulations for existing oil and natural 

gas sources. One commenter expressed 

support for regulating existing sources, 

but stated that not all existing minor 

sources should be regulated in the same 

manner. Other commenters indicated 

that cost-effective controls are available 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56570 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

42 In the Federal Indian Country Minor NSR rule, 

EPA established a registration program that 

required owners and operators of existing true 

minor sources to file a one-time registration with 

the appropriate Reviewing Authority by March 1, 

2013. The EPA’s Region 8 Office has received about 

6,300 registrations from true minor sources in the 

oil and natural gas sector. This far exceeded the 

amount received from sources in any other 

category. 

43For more information, go to: http://

www.epa.gov/airquality/oilandgas/actions.html. 

44Bakken Pool means oil produced from the 

Bakken, Three Forks, and Sanish formations. 

45See, e.g., L. Gribovicz, WRAP, ‘‘Analysis of 

States’ and EPA Oil and Gas Air Emissions Control 

Requirements for Oil and Gas Emissions Control 

Requirements for Selected Basins in the Western 

United States (2013 Update),’’ Nov. 8, 2013, 

available at http://www.wrapair2.org/pdf/2013-11x_

O&G%20Analysis%20 

(master%20w%20State%20Changes%2011-08).pdf. 

46See Colorado Dept. of Public Health and 

Environment, Air Quality Control Commission Web 

site at http://www.colorado.gov/cs/Satellite/CDPHEAQCC/CBON/1251647985820. 

and should be applied to existing 

sources. 

2. Comments in Opposition of 

Regulation of Existing Sources 

In response to the ANPR the EPA 

issued on June 5, 2014 (79 FR 32502), 

many commenters objected to the 

regulation of existing sources. 

Commenters urged the EPA to prioritize 

development of a streamlined 

permitting process implementing the 

Federal Minor NSR Program in Indian 

Country and to not include existing 

sources. Several commenters provided 

legal arguments challenging the EPA’s 

authority to impose requirements on 

existing sources. Two commenters 

stated that the EPA has not 

demonstrated that there is a need to 

regulate existing sources on a national 

basis. The commenter further argued 

that the EPA must make a much more 

definitive showing of adverse air quality 

impacts to justify existing source FIP 

requirements, taking into account the air 

quality, mix of emissions, and 

characteristics of each area in which it 

seeks to impose existing source controls. 

Two commenters urged the EPA to 

develop an emissions inventory using 

emissions monitoring data prior to 

implementing a FIP. Five commenters 

asserted that the EPA must establish an 

attainment plan prior to regulating 

existing sources. The commenters urged 

that to regulate existing sources, the 

EPA must make a determination that 

regulation is needed to attain the 

NAAQS and develop an attainment plan 

for the nonattainment areas in which 

the sources are located, and only for the 

relevant nonattainment pollutants. 

Other commenters stated that the EPA 

must evaluate the need for any 

regulation of existing minor sources in 

each tribal area on a case-by-case basis. 

3. The EPA’s Approach in This 

Proposed Action on Existing Oil and 

Natural Gas Minor Sources in Indian 

Country 

While the focus of the minor source 

permitting program is on new and 

modified oil and natural gas sources, the 

EPA believes that managing emissions 

from existing oil and natural gas sources 

in some areas of Indian country also 

may be important. This is because of the 

significant existing activity associated 

with the oil and natural gas sector in 

some areas of Indian country and the 

resultant need to protect public health 

and the environment from those 

emissions. Addressing existing sources 

through a FIP could be especially useful 

in areas of Indian country for which 

surrounding state requirements apply to 

existing oil and natural gas sources 

located on lands that are within a state’s 

jurisdiction. In doing so, EPA would 

consider tribes’ views and interests, 

including any interest in promoting 

economic development. 

While EPA believes that it has the 

necessary authority to promulgate a FIP 

regulating existing sources, in this 

action, we are proposing a FIP that only 

applies to new and modified true minor 

sources in the production segment of 

the oil and natural gas sector. This 

proposed FIP for new and modified true 

minor sources in the oil and natural gas 

production segment locating or located 

in Indian reservations (and other areas 

of Indian country over which an Indian 

tribe, or the EPA, has demonstrated that 

the tribe has jurisdiction) would apply 

to all such areas designated attainment, 

unclassifiable, or attainment/

unclassifiable. It would not apply to any 

areas designated nonattainment. The 

Federal Indian Country Minor NSR rule 

allows us to manage minor source 

emission increases in Indian country 

and to ensure that new emissions do not 

cause or contribute to a NAAQS or PSD 

increment violation. We are concerned 

that the rapid growth of the oil and 

natural gas production segment in 

combination with existing exploration 

and production activities, could result, 

or in some cases already has resulted, in 

adverse air quality impacts, especially 

in light of the approximately 6,300 

existing true minor source registrations 

received in the EPA Region 8 Office for 

facilities in the oil and natural gas 

sector.42 However, we believe that the 

most appropriate means for addressing 

impacts from existing sources is through 

area- or reservation-specific FIPs and 

not through this proposed, national FIP. 

If we determine that it is ‘‘necessary or 

appropriate’’ to exercise our 

discretionary authority under sections 

301(a) and 301(d)(4) of the CAA and 40 

CFR 49.11(a) of our implementing 

regulations, we will publish a proposed 

area- or reservation-specific FIP that 

provides an opportunity for full public 

review and comment. At a minimum, 

the EPA or tribes will need to develop 

area-specific plans if and when areas of 

Indian country become nonattainment 

for ozone or other NAAQS pollutants. 

At that time, any such area that has oil 

and natural gas minor source activity 

may require additional controls on 

existing (and new and modified) sources 

in order to achieve attainment of the 

NAAQS. One source of information for 

control options will be the EPA’s CTGs 

for oil and natural gas activity that the 

EPA has made available for comment 

and will finalize in 2016.43

We believe that existing sources are 

best addressed through tailored, federal 

or tribal air quality plans because each 

basin producing oil and/or natural gas 

possesses different geological and 

meteorological characteristics and, thus, 

what primary fossil fuel resource is 

extracted can be very different in quality 

and type and the impacts from 

emissions associated with extraction 

activities can vary widely. For example, 

the predominant resource extracted 

from the Bakken Pool 44 is a light, 

volatile oil, while the primary resource 

extracted from the Uintah Basin is a 

heavy, thick oil. Each of these types, in 

many cases, call for different sets of 

control requirements that are best 

addressed through tailored plans versus 

a national FIP. 

We believe that through tailored plans 

a number of cost-effective emission 

reduction measures could be applied to 

existing emission units to balance new 

growth by mitigating the potential for 

adverse air quality impacts from overall 

increases in emissions. A number of 

state air pollution control agencies 

already regulate some existing 

emissions from this segment.45 For 

example, in February 2014, Colorado 

adopted additional regulations for oil 

and natural gas production operations 

that include such requirements as 

expanding nonattainment area 

pneumatic controller requirements 

statewide and reducing venting and 

flaring of gas streams at well sites, 

among other control strategies.46 In 

addition, these regulations determined 

leak detection and repair monitoring to 

be cost effective at oil and natural gas 

production facilities. Some technologies 

may even provide the industry with cost 

savings due to recovered product. For 

example, the EPA’s Natural Gas Star 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56571 

47See ‘‘Lessons Learned from Natural Gas STAR 

Partners; Installing Vapor Recovery Units on 

Storage Tanks,’’ available at http://epa.gov/gasstar/ 

documents/ll_final_vap.pdf on the EPA’s Natural 

Gas Star Web site: http://epa.gov/gasstar/

index.html. 

48For more information, go to: http://

www.epa.gov/airquality/oilandgas/pdfs/

20150114fs.pdf. 

49The white papers can be found at: http://

www.epa.gov/airquality/oilandgas. 

50 40 CFR part 60, subpart Kb: Standards of 

Performance for Volatile Organic Liquid Storage 

Vessels (Including Petroleum Liquid Storage 

Vessels) for Which Construction, Reconstruction, or 

Modification Commenced After July 23, 1984 (OMB 

Control No. 2060–0074); 40 CFR part 60, subpart 

IIII: Standards of Performance for Stationary 

Compression Ignition Internal Combustion Engines 

(OMB Control No. 2060–0590); 40 CFR part 60, 

subpart JJJJ: Standards of Performance for Stationary 

Spark Ignition Internal Combustion Engines (OMB 

Control No. 2060–0610); 40 CFR part 60, subpart 

OOOO: Standards of Performance for Crude Oil and 

Natural Gas Production, Transmission and 

Distribution (OMB Control No. 2060–0673); 40 CFR 

part 63, subpart DDDDD: National Emission 

Standards for Hazardous Air Pollutants for Major 

Sources: Industrial, Commercial, and Institutional 

Boilers and Process Heaters (OMB Control No. 

2060–0616) and 40 CFR part 63, subpart HH: 

National Emission Standards for Hazardous Air 

Pollutants from Oil and Natural Gas Production 

Facilities (OMB Control No. 2060–0417). 

program estimates that adding a vapor 

recovery unit to a storage tank could pay 

for itself in 3 to 37 months, and 

thereafter result in cost savings.47

D. Why is the EPA extending the 

permitting deadline for oil and natural 

gas true minor sources in areas covered 

by the Federal Indian Country Minor 

NSR rule? 

The EPA is proposing to extend the 

deadline to allow us sufficient time to 

develop an approach for permitting new 

and modified true minor oil and natural 

gas production sources in areas covered 

by the Federal Indian Country Minor 

NSR rule that is consistent and 

coordinated with the EPA’s overall 

approach to addressing emissions from 

this sector. Specifically, we have needed 

additional time to coordinate with the 

larger EPA effort to regulate methane 

and VOCs from the oil and natural gas 

sector. On January 14, 2015, as part of 

the Obama administration’s methane 

strategy, the EPA outlined a series of 

steps it plans to take to address methane 

and smog-forming VOC emissions from 

the oil and gas industry, in order to 

ensure continued, safe and responsible 

growth in U.S. oil and natural gas 

production.48 This commonsense 

strategy will reduce methane pollution 

from new sources in this rapidly 

growing industry, reduce ozone-forming 

pollutants from existing sources in areas 

that do not meet federal ozone health 

standards, and build on work that states 

and industry are doing to address 

emissions from existing sources 

elsewhere. 

We intend to ensure the approach that 

we use to permit true minor oil and 

natural gas sources in areas covered by 

the Federal Indian Country Minor NSR 

rule reflects the EPA technical expertise 

gained through the work that has and 

will be done to understand feasible 

control opportunities in the oil and 

natural gas sector. In particular, we are 

drawing on the knowledge gained 

through the development of the 

technical white papers released on April 

15, 2014, that address emerging data on 

VOCs and methane emissions from 

certain sources in the oil and natural gas 

sector, as well as techniques for 

mitigating those emissions.49 The white 

papers, and the comments we received 

on them, are helping us better 

understand the sector, including sources 

located in Indian country. We are also 

considering in this action the comments 

provided in response to the ANPR (79 

FR 32502, June 5, 2014) in which we 

sought feedback on the most effective 

and efficient means of implementing the 

Federal Minor NSR Program in Indian 

Country for sources in the oil and 

natural gas production segment of the 

oil and natural gas sector. 

VIII. Statutory and Executive Order 

Reviews 

A. Executive Order 12866: Regulatory 

Planning and Review and Executive 

Order 13563: Improving Regulation and 

Regulatory Review 

This proposed action is not a 

significant regulatory action and was, 

therefore, not submitted to the Office of 

Management and Budget for review. 

B. Paperwork Reduction Act (PRA) 

This action does not impose any new 

information collection burden under the 

PRA. OMB has previously approved the 

information collection activities 

contained in the existing regulations 

and has assigned OMB control number 

2060–0003. This action merely proposes 

to establish a FIP which serves as a 

mechanism for true minor sources in the 

production segment of the oil and 

natural gas sector locating or located in 

areas covered by the Federal Indian 

Country Minor NSR rule to satisfy the 

requirements of the Federal Indian 

Country Minor NSR rule in lieu of 

obtaining a site-specific minor source 

permit. Because it is intended as a 

substitute for a site-specific permit 

which would contain information 

collection activities in the Information 

Collection Request for Federal Indian 

Country Minor NSR rule issued in July 

2011, it would not impose any new 

obligations or enforceable duties on any 

state, local or tribal government or the 

private sector. In addition, the 

information collection activities 

contained in the 6 rules proposed to be 

part of the proposed FIP have also been 

previously approved by OMB.50

C. Regulatory Flexibility Act (RFA) 

I certify that this action will not have 

a significant economic impact on a 

substantial number of small entities 

under the RFA. In making this 

determination, the impact of concern is 

any significant adverse economic 

impact on small entities. An agency may 

certify that a rule will not have a 

significant economic impact on a 

substantial number of small entities if 

the rule relieves regulatory burden, has 

no net burden or otherwise has a 

positive economic effect on the small 

entities subject to the rule. The EPA 

analyzed the impact of streamlined 

permitting on small entities in the 

Federal Indian Country Minor NSR rule 

(76 FR 38748, July 1, 2011). The EPA 

determined that that action would not 

have a significant economic impact on 

a substantial number of small entities. 

This proposed action merely 

implements a particular aspect of the 

Federal Indian Country Minor NSR rule. 

We have, therefore, concluded that this 

action will have no net regulatory 

burden for all directly regulated small 

entities. 

D. Unfunded Mandates Reform Act 

(UMRA) 

This action does not contain any 

unfunded mandate, as described in 

UMRA, 2 U.S.C. 1531–1538, and does 

not significantly or uniquely affect small 

governments. The action imposes no 

enforceable duty on any state, local or 

tribal governments or the private sector. 

It simply provides one option for 

sources to comply with the Federal 

Indian Country Minor NSR rule. The 

Federal Indian Country Minor NSR rule 

itself imposes the obligation that true 

minor sources in areas covered by the 

Federal Indian Country Minor NSR rule 

obtain a minor source NSR permit and 

not this proposed FIP. This proposed 

FIP merely provides a vehicle for 

meeting that obligation. 

E. Executive Order 13132: Federalism 

This action does not have federalism 

implications. It would not have 

substantial direct effects on the states, 

on the relationship between the national 

government and the states, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56572 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

F. Executive Order 13175: Consultation 

and Coordination With Indian Tribal 

Governments 

This action has tribal implications. 

However, it will neither impose 

substantial direct compliance costs on 

federally recognized tribal governments, 

nor preempt tribal law. The EPA has 

conducted outreach on this rule via ongoing monthly meetings with tribal 

environmental professionals in the 

development of this proposed action. 

This action reflects tribal comments on 

and priorities for developing an 

approach for permitting true minor 

sources in the production segment of 

the oil and natural gas sector in areas 

covered by the Federal Indian Country 

Minor NSR rule. The EPA offered 

consultation on the ANPR to elected 

tribal officials and the following tribes 

requested a consultation, which was 

held on July 18, 2014, with the tribes 

and/or their representatives: MHA 

(Mandan, Hidatsa and Arikara) Nations 

(Three Affiliated Tribes), Ute Tribe of 

the Uintah and Ouray Reservation, and 

Crow Nation. 

At the consultation, the tribes present 

expressed a number of concerns 

regarding federal regulation of oil and 

natural gas activity in Indian country. 

Three main themes were expressed. 

First, the tribes expressed the concern 

that many areas of Indian country are 

facing difficult economic circumstances 

and are in need of economic 

development to improve the quality of 

life of tribal members; revenue from oil 

and natural gas activity in many areas 

provides that economic development. 

Second, in Indian country they 

indicated that oil and natural gas 

activity is already regulated by the 

federal government and that the EPA 

does not need to add to the burden. 

They expressed a wish to be able to 

manage their own resources without 

undue interference from the federal 

government. Finally, the tribes also 

expressed a need for greater resources so 

that they can implement their own 

environmental programs as they 

determine in their own lands. 

We believe that the FIP is directly 

responsive to the first two issues in that, 

for attainment and related areas, we are 

proposing a FIP to fulfill our CAA 

responsibilities to protect air quality in 

Indian country in a manner that: (1) 

Does not create an uneven playing field 

with respect to federal requirements in 

adjacent states where oil and natural gas 

sources face the same EPA 

requirements; and (2) minimizes the 

processing burden on oil and natural gas 

sources. We will continue to provide 

outreach to tribal environmental 

professionals and offer to consult with 

tribal leadership on this proposed 

action. 

G. Executive Order 13045: Protection of 

Children From Environmental Health 

Risks and Safety Risks 

This action is not subject to Executive 

Order (EO) 13045 because it is not 

economically significant as defined in 

EO 12866, and because the EPA does 

not believe the environmental health or 

safety risks addressed by this action 

present a disproportionate risk to 

children. 

H. Executive Order 13211: Actions That 

Significantly Affect Energy Supply, 

Distribution, or Use 

This action is not subject to Executive 

Order 13211, because it is not a 

significant regulatory action under 

Executive Order 12866. 

I. National Technology Transfer and 

Advancement Act (NTTAA) 

This action does not involve technical 

standards. 

J. Executive Order 12898: Federal 

Actions To Address Environmental 

Justice in Minority Populations and 

Low-Income Populations 

The EPA believes the human health or 

environmental risk addressed by this 

action will not have potential 

disproportionately high and adverse 

human health or environmental effects 

on minority, low-income or indigenous 

populations. This proposed rule 

implements certain aspects of the 

Federal Indian Country Minor NSR rule. 

Our primary goal in developing this 

program is to ensure that air resources 

in areas covered by the Federal Indian 

Country Minor NSR rule will be 

protected in the manner intended by the 

CAA. This action will help ensure air 

quality protection in areas covered by 

the Federal Indian Country Minor NSR 

rule, by including in a FIP a 

comprehensive set of control 

requirements for new and modified true 

minor source in the production segment 

of the oil and natural gas sector. In 

addition, through this proposed FIP, we 

seek to establish a mechanism that 

provides an effective and efficient 

method for implementing a 

preconstruction permitting program for 

true minor sources in areas covered by 

the Federal Indian Country Minor NSR 

rule that enables a streamlined process, 

which helps promote economic 

development by minimizing delays in 

new construction; and provides a 

process comparable to those programs 

operated outside of Indian county, 

which helps tribes compete for new oil 

and natural gas production in areas 

covered by the Federal Indian Country 

Minor NSR rule.. 

List of Subjects in 40 CFR Part 49 

Environmental protection, 

Administrative practices and 

procedures, Air pollution control, 

Incorporation by reference, Indians, 

Indians-law, Indians-tribal government, 

Intergovernmental relations, Reporting 

and recordkeeping requirements. 

Dated: August 18, 2015. 

Gina McCarthy, 

Administrator. 

For the reasons set forth in the 

preamble, EPA proposes to amend 40 

CFR part 49 as follows: 

PART 49—INDIAN COUNTRY: AIR 

QUALITY PLANNING AND 

MANAGEMENT 

■ 1. The authority citation for part 49 

continues to read as follows: 

Authority: 42 U.S.C. 7401, et seq. 

■ 2. Subpart C of part 49 is amended by 

adding a new undesignated center 

heading and §§ 49.101 to 49.105 to read 

as follows: 

Federal Implementation Plans for 

Tribes 

Sec. 

49.101 Introduction. 

49.102 Definitions. 

49.103 Delegation of authority of 

administration to Indian tribes. 

49.104 Requirements regarding threatened 

or endangered species and historic 

properties. 

49.105 Requirements. 

Federal Implementation Plans for 

Tribes 

§ 49.101 Introduction. 

What is the purpose of §§ 49.101 

through 49.105? (a) Sections 49.101 

through 49.105 adopt legally and 

practicably enforceable requirements to 

control and reduce emissions of volatile 

organic compounds, nitrogen oxides, 

sulfur dioxide, particulate matter (PM, 

PM10, PM2.5), hydrogen sulfide, carbon 

monoxide and various sulfur 

compounds from oil and natural gas 

production segment operations. 

(b) Am I subject to §§ 49.101 through 

49.105? You are subject to the 

requirement if you meet the following 

criteria: 

(1) Owners and operators of new true 

minor oil and natural gas sources or 

minor modifications at existing true 

minor oil and natural gas sources as 

determined pursuant to 40 CFR 

49.153(a) that meet the criteria specified 

in paragraphs (b)(1)(i) through (b)(1)(v) 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56573 

of this section, shall comply with the 

requirements of §§ 49.104 and 49.105, 

unless the owner or operator obtains a 

site-specific permit as specified in 

paragraph (b)(2) or (b)(3) of this 

paragraph. 

(i) The facility is an oil and natural 

gas production facility as defined in 

§ 49.102; 

(ii) The oil and natural gas production 

facility is located in Indian country as 

defined in § 49.102; 

(iii) The oil and natural gas 

production facility is a new true minor 

source or minor modification of an 

existing true minor source as 

determined under § 49.153; 

(iv) The oil and natural gas 

production facility begins construction 

or modification on or after October 3, 

2016; and 

(v) The oil and natural gas production 

facility is not located in a designated 

nonattainment area. 

(2) Owners and operators of facilities 

that meet the criteria specified in 

paragraphs (b)(1) of this section that 

choose to obtain a site-specific permit as 

specified in 40 CFR 49.155 before 

beginning construction are not required 

to comply with the requirements of 

§§ 49.101 to 49.105. 

(3) Owners and operators of facilities 

that meet the criteria specified in 

paragraph (b)(1) of this section that the 

Reviewing Authority requires to obtain 

a site-specific permit to ensure 

protection of the NAAQS as specified in 

40 CFR 49.155 before beginning 

construction are not required to comply 

with §§ 49.101 to 49.105. 

(c) When must I comply with 

§§ 49.101 through 49.105? Compliance 

with §§ 49.101 through 49.101 is 

required on or after October 3, 2016. 

§ 49.102 Definitions. 

As used in §§ 49.101 through 49.105, 

all terms not defined herein shall have 

the meaning given them in the Clean Air 

Act, in subpart A, and subpart OOOOa 

of 40 CFR part 60, in the Prevention of 

Significant Deterioration regulations at 

40 CFR 52.21, or in the Federal Minor 

NSR Program in Indian Country at 40 

CFR 49.152. The following terms shall 

have the specific meanings given them: 

Oil and natural gas production 

facility means a minor stationary source 

engaged in the extraction and 

production of oil and natural gas, as 

well as the processing, transmission and 

distribution of natural gas, including the 

wells and all related processes used in 

the extraction, production, recovery, 

lifting, stabilization, and separation or 

treatment of oil and/or natural gas 

(including condensate). Oil and natural 

gas production components may 

include, but are not limited to: wells 

and related casing head; tubing head 

and ‘‘Christmas tree’’ piping; pumps; 

compressors; heater treaters; separators; 

storage vessels; pneumatic devices; 

natural gas dehydrators; well drilling, 

completion and workover processes and 

portable non-self-propelled apparatuses 

associated with those operations; and 

low to medium pressure, smaller 

diameter, gathering pipelines and 

related components that collect and 

transport the oil, natural gas and other 

materials and wastes from the wells or 

well pads. 

Oil and natural gas well means a 

single well that extracts subsurface 

reservoir fluids containing a mixture of 

oil, natural gas, and water. 

Owner or operator means any person 

who owns, leases, operates, controls, or 

supervises an oil and natural gas 

production facility. 

Regional Administrator means the 

Regional Administrator of an EPA 

Region or an authorized representative 

of the Regional Administrator. 

§ 49.103 Delegation of authority of 

administration to Indian tribes. 

(a) What is the purpose of this 

section? The purpose of this section is 

to establish the process by which a 

Regional Administrator may delegate to 

a federally-recognized tribe the 

authority to assist the EPA with 

administration of this Federal 

Implementation Plan (§§ 49.101– 

49.105). This section provides for 

administrative delegation and does not 

affect the eligibility criteria under 40 

CFR 49.6 for treatment in the same 

manner as a state or a tribe’s ability to 

obtain approval of a tribal 

implementation plan under 40 CFR 

49.7. 

(b) How does a tribe request 

delegation? In order to be delegated 

authority to assist us with 

administration of this FIP, the 

authorized representative of a federallyrecognized tribe must submit a request 

to a Regional 

Administrator that: 

(1) Identifies the specific provisions 

for which delegation is requested; 

(2) Identifies the Indian Reservation 

or other areas of Indian country for 

which delegation is requested; 

(3) Includes a statement by the 

applicant’s legal counsel (or equivalent 

official) that includes the following 

information: 

(i) A statement that the applicant is a 

tribe recognized by the Secretary of the 

Interior; 

(ii) A descriptive statement that is 

consistent with the type of information 

described in § 49.7(a)(2) demonstrating 

that the applicant is currently carrying 

out substantial governmental duties and 

powers over a defined area; 

(iii) A description of the laws of the 

tribe that provide adequate authority to 

administer the Federal rules and 

provisions for which delegation is 

requested; and 

(iv) A demonstration that the tribal 

agency has the technical capability and 

adequate resources to administer the FIP 

provisions for which the delegation is 

requested. 

(c) How is the delegation of 

administrative authority accomplished? 

(1) A Delegation of Authority Agreement 

will set forth the terms and conditions 

of the administrative delegation, will 

specify the rule and provisions that the 

tribe shall be authorized to implement 

on behalf of the EPA, and shall be 

entered into by the Regional 

Administrator and the tribe. The 

Agreement will become effective upon 

the date that both the Regional 

Administrator and the authorized 

representative of the tribe have signed 

the Agreement. Once the delegation 

becomes effective, the tribe will be 

responsible, to the extent specified in 

the Agreement, for assisting us with 

administration of this FIP and shall act 

as the Regional Administrator as that 

term is used in these regulations. Any 

Delegation of Authority Agreement will 

clarify the circumstances in which the 

term ‘‘Regional Administrator’’ found 

throughout this FIP is to refer only to 

the EPA Regional Administrator and 

when it is intended instead to refer to 

the EPA Regional Administrator or a 

federally-recognized tribe. 

(2) A Delegation of Authority 

Agreement may be modified, amended, 

or revoked, in part or in whole, by the 

Regional Administrator after 

consultation with a tribe. 

(d) How will any Delegation of 

Authority Agreement be publicized? The 

Regional Administrator shall publish a 

notice in the Federal Register informing 

the public of any Delegation of 

Authority Agreement with a tribe to 

assist us with administration of all or a 

portion of this FIP and will identify 

such delegation in the Code of Federal 

Regulations. The Regional 

Administrator shall also publish an 

announcement of the Delegation of 

Authority Agreement in local 

newspapers. 

§ 49.104 Requirements regarding 

threatened or endangered species and 

historic properties. 

(a) What are sources required to do to 

address threatened or endangered 

species and historic properties? An 

owner/operator required to meet the 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56574 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

requirements contained in §§ 49.101 

through 49.105 to satisfy its obligation 

under § 49.151(c)(1)(iii)(B) shall meet 

paragraph (a)(1) or (2) of this section. 

(1) The owner/operator shall submit 

to the EPA Regional Office (and to the 

tribe where the source is located/

locating) documentation demonstrating 

that prior Endangered Species Act (ESA) 

and/or National Historic Preservation 

Act (NHPA) compliance has been 

completed by another federal agency in 

connection with the specific oil and 

natural gas activity operated under this 

FIP. The owner/operator must be in 

compliance with all measures required 

as part of that prior ESA and/or NHPA 

process. 

(2) The owner/operator shall submit 

to the EPA Regional Office (and to the 

tribe where the source is located/

locating) documentation demonstrating 

that it has completed the screening 

procedures specified for consideration 

of threatened and endangered species 

and/or historic properties and receive 

written confirmation from the EPA 

stating that it has satisfactorily 

completed these procedures. The 

procedures document, ‘‘Procedures to 

Address Threatened and Endangered 

Species and Historic Properties for New 

or Modified True Minor Oil and Natural 

Gas Production Sources in Indian 

Country Complying with the Oil and 

Natural Gas Minor Source Federal 

Implementation Plan,’’ August 13, 2015, 

Version 1.0, is incorporated by reference 

into this section with the approval of 

the Director of the Federal Register 

under 5 U.S.C. 552(a) and 1 CFR part 51. 

To view or download the document, go 

to http://www.epa.gov/air/tribal/pdfs/

procedures_for_esa_and_nhpa_for_ong_

sources_8-13-15.pdf. 

§ 49.105 Requirements. 

(a) For true minor sources that are 

subject to 40 CFR part 63, subpart 

DDDDD (National Emission Standards 

for Hazardous Air Pollutants for Major 

Sources: Industrial, Commercial, and 

Institutional Boilers and Process 

Heaters), for purposes of this FIP, 

sources must comply with all of the 

applicable provisions of the standard as 

written at the time construction or 

reconstruction of the source is begun. 

(b) For true minor sources that are 

subject to 40 CFR part 60, subpart IIII— 

Standards of Performance for Stationary 

Compression Ignition Internal 

Combustion Engines, for purposes of 

this FIP, sources must comply with all 

of the applicable provisions of the 

standard as written at the time 

construction or reconstruction of the 

source is begun, except for the 

following: 

(1) § 60.4200(a)(1)—Am I subject to 

this subpart? (applies to manufacturers); 

(2) § 60.4200(b)—Not applicable to 

stationary spark ignition internal 

combustion engines being tested at an 

engine test cell/stand; 

(3) § 60.4200(c)—Am I subject to this 

subpart? (area sources and exemptions 

from Title V permits); 

(4) § 60.4201—What emission 

standards must I meet for nonemergency engines if I am a stationary 

compression ignition internal 

combustion engine manufacturer?; 

(5) § 60.4202—What emission 

standards must I meet for emergency 

engines if I am a stationary compression 

ignition internal combustion engine 

manufacturer?; 

(6) § 60.4203—How long must my 

engines meet the emission standards if 

I am a manufacturer of stationary 

compression ignition internal 

combustion engines?; 

(7) § 60.4210—What are my 

compliance requirements if I am a 

stationary compression ignition internal 

combustion engine manufacturer?; and 

(8) § 60.4215—What requirements 

must I meet for engines used in Guam, 

American Samoa, or the Commonwealth 

of the Northern Mariana Islands? 

(c) For true minor sources that are 

subject to 40 CFR part 60, subpart JJJJ— 

Standards of Performance for Stationary 

Spark Ignition Internal Combustion 

Engines, for purposes of this FIP, 

sources must comply with all of the 

applicable provisions of the standard as 

written at the time construction or 

reconstruction of the source is begun, 

except for the following: 

(1) § 60.4230(b)—Not applicable to 

stationary spark ignition internal 

combustion engines being tested at an 

engine test cell/stand; 

(2) § 60.4230(c)—Exemption for 

obtaining a Title V permit if owner or 

operator of an area source subject to this 

part; 

(3) § 60.4231 and § 60.4232—Emission 

standards for manufacturers; 

(4) § 60.4238 through § 60.4242— 

Compliance Requirements for 

Manufacturers; and 

(5) § 60.4247—Mobile source 

provisions that apply to manufacturers 

of stationary spark ignition internal 

combustion engines or equipment 

containing such engines. 

(d) For true minor sources that are 

subject to 40 CFR part 60, subpart Kb— 

Standards of Performance for Volatile 

Organic Liquid Storage Vessels, for 

purposes of this FIP, sources must 

comply with all of the applicable 

provisions of the standard as written at 

the time construction or reconstruction 

of the source is begun, except for the 

following: 

(1) § 60.112b(c)—Site-specific 

standard for Merck & Co., Inc.’s 

Stonewall Plant in Elkton, Virginia; and 

(2) § 60.117b(a) and (b)—Delegation of 

authority. 

(e) For true minor sources that are 

subject to subpart OOOOa, Emission 

Standards for New and Modified 

Sources in the Oil and Natural Gas 

Sector, for purposes of this FIP, sources 

must comply with all of the provisions 

of the standard as written at the time 

construction or reconstruction of the 

source is begun, except for the 

following: 

(1) § 60.5365a(f)(3)—Equipment 

exemption at processing plant; 

(2) § 60.5365a(h)(4)—Existing sources 

constructed after August 23, 2011; 

(3) § 60.5370a(c)—Permit exemption; 

(4) § 60.5413a(a)(5)—Exemptions from 

performance testing—hazardous waste 

incinerator; 

(5) § 60.5420a(a)(2)(i)—Advance 

notification requirements for well 

completions; and 

(6) § 60.5420a(a)(2)(ii)—Advance 

notification requirements of well 

completions when subject to state 

regulation that requires advance 

notification. 

(f) For true minor sources that are 

subject to 40 CFR part 63, subpart HH— 

National Emission Standards for 

Hazardous Air Pollutants from Oil and 

Natural Gas Production Facilities, for 

purposes of this FIP, sources must 

comply with all of the applicable 

provisions of the standard as written at 

the time construction or reconstruction 

of the source is begun, except for the 

following: 

(1) § 63.760(a)(2)—Facilities that 

process, upgrade or store hydrocarbon 

liquids; 

(2) § 63.760(b)(1)(ii)—Each storage 

vessel with the potential for flash 

emissions; 

(3) § 63.760(b)(1)(iii)—Equipment 

located at natural gas processing plants; 

(4) § 63.760(g)—Recordkeeping for 

major sources that overlap with other 

regulations for equipment leaks; 

(5) § 63.764(c)(2)—(3)—Requirements 

for compliance with standards for 

storage vessels and equipment at natural 

gas processing plants, respectively; 

(6) § 63.766 Storage vessel standards; 

and 

(7) § 63.769 Equipment leak 

standards. 

■ 3. Section 49.151 is amended by 

revising paragraphs (b)(1), (c)(1)(iii)(A) 

and (B), and (d)(1), (2) and (4) to read 

as follows: 

§ 49.151 Program overview. 

* * * * * 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 56575 

(b) * * * 

(1) It satisfies the requirements of 

section110(a)(2)(C) of the Act by 

establishing a preconstruction 

permitting program for all new and 

modified minor sources (minor sources) 

and minor modifications at major 

sources located in Indian country and 

by establishing a Federal 

Implementation Plan (§§ 49.101 to 

49.105) for oil and natural gas 

production true minor sources located 

in Indian country. 

* * * * * 

(c) * * * 

(1) * * * 

(iii) * * * 

(A) If you own or operate an existing 

true minor source in Indian country (as 

defined in § 49.152(d)), you must 

register your source with the Reviewing 

Authority in your area by March 1, 

2013. If your true minor source is not an 

oil and natural gas source, as defined in 

§ 49.102, and you commence 

construction after August 30, 2011, and 

before September 2, 2014, you must also 

register your source with the Reviewing 

Authority in your area within 90 days 

after the source begins operation. If your 

true minor source is an oil and natural 

gas source, as defined in § 49.102, and 

you commence construction after 

August 30, 2011, and before October 3, 

2016, you must register your source 

with the Reviewing Authority in your 

area within 90 days after the source 

begins operation. You are exempt from 

these registration requirements if your 

true minor source is subject to § 49.138. 

(B) If your true minor source is not an 

oil and natural gas source, as defined in 

§ 49.102, and you wish to begin 

construction of a new true minor source 

or a minor modification at an existing 

true minor source on or after September 

2, 2014, you must first obtain a permit 

pursuant to §§ 49.154 and 49.155 (or a 

general permit/permit by rule pursuant 

to § 49.156, if applicable). If your true 

minor source is an oil and natural gas 

source, as defined in § 49.102, and you 

wish to begin construction of a new true 

minor source or a minor modification at 

an existing true minor source on or after 

October 3, 2016, you must either 

comply with the Federal 

Implementation Plan for oil and natural 

gas production sources located in Indian 

country (§§ 49.101 to 49.105) from the 

day you begin construction or opt out of 

those requirements pursuant to 

§ 49.101(b)(2) and obtain a minor source 

permit pursuant to §§ 49.154 and 49.155 

before beginning construction. 

Alternatively you may be required by 

the EPA, pursuant to § 49.101(b)(3), to 

obtain a minor source permit pursuant 

to §§ 49.154 and 49.155 before 

beginning construction. All proposed 

new sources or modifications are also 

subject to the registration requirements 

of § 49.160, except for sources that are 

subject to § 49.138. 

* * * * * 

(d) * * * 

(1) If you begin construction of a new 

source or modification that is subject to 

this program after the applicable date 

specified in paragraph (c) of this section 

without applying for and receiving a 

permit pursuant to this program or 

complying with the Federal 

Implementation Plan at §§ 49.101 to 

49.105 for oil and natural gas 

production, you will be subject to 

appropriate enforcement action. 

(2) If you do not construct or operate 

your source or modification in 

accordance with the terms of your 

minor NSR permit or the Federal 

Implementation Plan for oil and natural 

gas production at §§ 49.101 to 49.105, 

you will be subject to appropriate 

enforcement action. 

(3) * * * 

(4) Issuance of a permit or compliance 

with the Federal Implementation Plan 

for oil and natural gas production at 

§§ 49.101 to 49.105 does not relieve you 

of the responsibility to comply fully 

with applicable provisions of any EPAapproved implementation plan or 

Federal Implementation Plan or any 

other requirements under applicable 

law. 

* * * * * 

■ 4. Section 49.152 is amended by 

revising the introductory text of 

paragraph (d) and adding paragraph (4) 

to the definition of ‘‘Indian country’’ to 

read as follows: 

§ 49.152 Definitions. 

* * * * * 

(d) * * * 

Indian country, as defined in 18 

U.S.C. 1151, means the following as 

applied to this program: 

* * * * * 

(4) For purposes of this rule, 

references to Indian country include all 

Indian reservation lands where no EPAapproved program is in place and all 

other areas of Indian country where no 

EPA-approved program is in place and 

over which an Indian tribe, or the EPA, 

has demonstrated that a tribe has 

jurisdiction. 

* * * * * 

■ 5. Section 49.153 is amended by 

revising paragraphs (a)(1)(i)(B) and 

(a)(1)(ii)(B) to read as follows: 

§ 49.153 Applicability. 

* * * * * 

(a)* * * 

(1) * * * 

(i) * * * 

(B) Step 2. Determine whether your 

proposed source’s potential to emit for 

the pollutant that you are evaluating, 

(including fugitive emissions, to the 

extent they are quantifiable, only if the 

source belongs to one of the source 

categories listed pursuant to section 

302(j) of the Act), is equal to or greater 

than the corresponding minor NSR 

threshold in Table 1 of this section. If 

it is, you are subject to the 

preconstruction requirements of this 

program for that pollutant, except that 

oil and natural gas production sources 

shall instead comply with the 

requirements of the Federal 

Implementation Plan at §§ 49.101 to 

49.105, unless you opt-out of the 

Federal Implementation Plan pursuant 

to § 49.101(b)(2) in which case you are 

subject to the preconstruction 

requirements of this program for that 

pollutant or are required by the EPA to 

obtain a minor source permit pursuant 

to § 49.101(b)(3). If not, go to Step 3 

(paragraph (a)(1)(ii)(C) of this section). 

(ii) * * * 

(B) Step 2. Determine whether the 

increase in allowable emissions from 

the proposed modification (calculated 

using the procedures of paragraph (b) of 

this section) would be equal to or 

greater than the minor NSR threshold in 

Table 1 of this section for the pollutant 

that you are evaluating. If it is, you are 

subject to the preconstruction 

requirements of this program for that 

pollutant, except oil and natural gas 

production sources shall instead comply 

with the requirements of the Federal 

Implementation Plan at §§ 49.101 to 

49.105, unless you opt-out of the 

Federal Implementation Plan pursuant 

to § 49.101(b)(2) in which case you are 

subject to the preconstruction 

requirements of this program for that 

pollutant or are required by the EPA to 

obtain a minor source permit pursuant 

to § 49.101(b)(3). If not, go to Step 3 

(paragraph (a)(1)(ii)(C) of this section). 

* * * * * 

■ 6. Section 49.160 is amended by 

revising paragraphs (c)(1)(ii) and (iii), 

adding paragraph (c)(1)(iv) and revising 

paragraph (c)(4) to read as follows: 

§ 49.160 Registration program for minor 

sources in Indian country. 

* * * * * 

(c) * * * 

(1) * * * 

(ii) If your true minor source is not an 

oil and natural gas source, as defined in 

§ 49.102, and you commence 

construction after August 30, 2011, and 

before September 2, 2014, you must 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3

56576 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules 

register your source with the Reviewing 

Authority within 90 days after the 

source begins operation. If your new 

true minor source or minor modification 

of an existing true minor source is an oil 

and natural gas source, as defined in 

§ 49.102, and you commence 

construction after August 30, 2011, and 

before October 3, 2016, you must 

register your source with the Reviewing 

Authority within 90 days after the 

source begins operation. 

(iii) If your true minor source is not 

an oil and natural gas source, as defined 

in § 49.102, and you commence 

construction or modification of your 

source on or after September 2, 2014, 

and your source is subject to this rule, 

you must report your source’s actual 

emissions (if available) as part of your 

permit application and your permit 

application information will be used to 

fulfill the registration requirements 

described in § 49.160(c)(2). If your true 

minor source is an oil and natural gas 

source, as defined in § 49.102, and you 

commence construction or modification 

of your source on or after October 3, 

2016, you must report your source’s 

actual emissions (if available) as part of 

your permit application or registration 

of oil and natural gas production 

sources using a form provided by the 

EPA, ‘‘Registration for New True Minor 

Oil and Natural Gas Sources and Minor 

Modifications at Existing True Minor 

Oil and Natural Gas Sources’’ (available 

at: http://www.epa.gov/air/tribal/

tribalnsr.html or from EPA Regional 

Offices), and your permit application or 

registration for oil and natural gas 

production sources will be used to 

fulfill the registration requirements 

described in § 49.160(c)(2). 

(iv) Minor sources complying with 

§§ 49.101 to 49.105 for oil and natural 

gas production, as defined in § 49.102, 

must submit a registration form 30 days 

prior to beginning construction that 

contains the information in 

§ 49.160(c)(2). The form titled 

‘‘Registration for New True Minor Oil 

and Natural Gas Sources and Minor 

Modifications at Existing True Minor 

Oil and Natural Gas Sources’’ is 

available at: http://www.epa.gov/air/

tribal/tribalnsr.html or from EPA 

Regional Offices. This form is submitted 

instead of the application form required 

in § 49.160(c)(1)(iii). 

* * * * * 

(4) Duty to obtain a permit or comply 

with the Federal Implementation Plan 

for oil and natural gas production 

sources. Submitting a registration form 

does not relieve you of the requirement 

to obtain any required permit, including 

a preconstruction permit, or to comply 

with the Federal Implementation Plan 

for oil and natural gas production if 

your source or any physical or 

operational change at your source 

would be subject to any minor or major 

NSR rule. 

* * * * * 

■ 7. Section 49.167 is amended by 

revising the introductory text of 

paragraph (d) and adding paragraph 

(d)(4) to read as follows: 

§ 49.167 Definitions. 

* * * * * 

(d) Indian country, as defined in 18 

U.S.C. 1151, means the following as 

applied to this program: 

* * * * * 

(4) For purposes of this rule, 

references to Indian country include all 

Indian reservation lands where no EPAapproved program is in place and all 

other areas of Indian country where no 

EPA-approved program is in place and 

over which an Indian tribe, or the EPA, 

has demonstrated that a tribe has 

jurisdiction. 

* * * * * 

[FR Doc. 2015–21025 Filed 9–17–15; 8:45 am] 

BILLING CODE 6560–50–P 

mstockstill on DSK4VPTVN1PROD with PROPOSALS3