JTED TATES ENVIRO MENTAL PROTE TION AG

REGTO 8

1595 WYNKOOP STREET

DE. RR, 0 80202-1129

Pbooc 800-227-8917

h(tp://www.epa.go /regionO

DO KET 0.: CAA-08-2011-0024

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J{e pondent

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FIN LORDER

Pursuantt 40 .F.R.~ 2.l"(b)and_2.J8,ofEPAs onsolidated Rules ofPrac1ic ,th

Consent Agreement resolving thi' matter is hereby appro ed and incorporated by refer nee into

this hnal Ord r. The Respondent is bereby ORDERED LO comply with all of the tCIl11 r 1h

0115 111 Agrl:cn ~nt, dTccti c il11JU -diat Iy lIpon receipt by R spond I1t [thi 011 nt

Agrl.: m~nt and final rder.

Thi CO\.ll1 will ace pt til cl clTonic filing of the OBsent greemcnt in thi. matt r at this

time, however the Parties are to iiI the original Consent Agreement within seven day of

issuance of this rdef.

'I'll' Partics rc hereby ORDRR n t) mply with all orth terms [thi' I'd 'I"

ffective immediately lip n r ceipl by Pal1ies of this Ord r.

~O ORDERED THI __.!....-_ Day of ---l..=~~=::::"":"" --J 2011

fficer
UNITED STATES

ENVIRONMENTAL PROTECTION AGENCY

REGJON 8

Docket No. CM-Q8-2011-0024

In the Matter of:

PETRO-HUNT, LLC

Respondent.

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2011 AUG 29 MilO: 53

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ADMINISTRATIVE COMPLAiNT "

AND CONSENT AGREEMENT

AUTHORITY

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

this Administrative Complaint and Consent Agreement (Agreement) to PETRO-HUNT, LLC

(Respoodent) pursuant to Sections I 13(a)(3) and 113(d)(I) oftbe Clean Air Act (CAA or lhe Act), 42

U.S.C. § 7413(a)(3) and § 7413(d)(J). Tbe Administrator of the EPA has the authority to enter into this

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

A. STATUTORY AND REGULATORY BACKGROUND

1. On June 19, 1978, EPA promulgated the Prevention ofSigniticanl Deterioration (PSD) regulations

pursuant to Subtitle I, Part C of the Act. 43 Fed. Reg. 26403. EPA revised the PSD regulations on

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

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

2. Terms used in this Agreement that arc defined in the Act or in regulations promulgated pursuant to the

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

3. The emission sources to which this Agreement relates are in "Indian country" ali defined at 18 U.S.c.

§1151. The locations orthe emission sources are identified in Appendix A.

4. Section I65(a) ofthe Act, 42 U. S.C. §7475(a), and the PSD regulations implementing Part C at 40

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

modification of a major stationary source without a pennit which states that the major stationary source

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

5. 40 C.F.R. § 52.21(b)(5) delines a "stationary source" as, any building, stnlcture, racility or installation

which emits or may emit a regulated PSD pollutant.

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

source that emits, or has the potential to emit, 250 tons per year or morc of any regulated PSD pollutant.

7. On july 1,2011, EPA promulgated final rules titled "Review ofNew Sources and Modifications in

Indian Country." (Tribal Minor NSR Rule) 76 Fed. Reg. 38748-808 (July 1,2011) (to be codified at 40

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

otherwise major source that bas taken a restriction, enforceable as a legal and practicaJ mauer, so thut the

source's potential to emit is less than the amounts for major SOUfGeS.

8. This proceeding is governed by the Consolidated Rules ofPractice Governing the Administrafive

Assessment of Civil Pcnaltjes, and the Revocution, Termination or Suspcnsion ofPermits (Consol idatcd

Rule."') set forth at 40 C.F.R. Part 22. The U.S. Departmcnt ofJustice bas concurred with EPA Region

8's request for autboriwtion lO commence an administrative enforcement action in this matter.

9. This Agreement is voluntarily entered into by the EPA and the Rt::Spondcnt for the purpose of

simlittaneOll'~Jycommencing and concluding this matter, as authorized by 40 C.F.R. § 22.13(b), and

executed pursuant LO 40 C.P.R. § 22. 18(b)(2) aod (3) ofLhe Consolidated Rule'.

D. LNTROI)UCTORY)'ROVISIONS

I. 'Dus Agreement addresses u unique situation in thal the Respondenl is unable 10 obtain an effcctive

synthetic minorsource pennit from EPA plior to commencing consbuction hecause, pur-manl to the new

Tribal Millor NSR Rule, the auLhorily to issue such pcnniU:l begins August 30, 20 II.

2. This Agrccmtnt is entered into by EPA aod Respondellt to settle alleged violalions nnd ullow

Respondents lo comply 8S expeditiously as possible willi the requirements oflhe CAA. specifIcally PSD,

of certain Dakken Formnlion Oil and OKS Emission Sources (emission sources) ownt:d and/or opcrutcd

by Respondent,located within Ole exterior boundaries ofthe Pori Berthold Indian Reservation in North

Dakota as described in Appendix A.

3. Respondent admits Ute jurisdjcliouaJ allegations in this Agreemellt bllt docs not admit the specific

facrual allegations or legal conclusions made by the Complainant berem.

4. Respondent waives its rights to 0 bearing before any tribunal and to contc.<;t any issue of law or fact set

forth in this Agreement.

S. Complainwll asserts that setth::rucnt of this matter i.~ in lbc public interest. Complainant and Respondent

agree !.hal resolving this matter without furtbet' litigation anel without adjudication ofaoy issue of fact or

law is appropriate,

6. This Agreement, which includes Appendices A and B, upon incollJoration into a Final Order, applies to

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

successors aod assigns.

7. This Agreement CODtWnS alllcnns ofthe settlemcnt agreed to by the EPA and Respondent.

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C. ALLEGED VIOLATIONS

1. Respondent is a DELAWARE, r.f.f! cOIporatioo and therefore a "person" as defmed in section

302(c) Oflhc CAA. 42 U.S.C. § 7602(0).

2. Re.!o1'00denl owns andlor operates the emission sources described in Appendix A.

3. Complainant alleges that Respondent violated the eM by constructing each ofthe major stationary

sources identified in Appendix A, Table A~ I without first obtaining a PSD permit pursuant to 40 C.f.R+

§ 52.21.

D. IlJcQUIREMENTS UNIJER TillS AGR£JlMENT

The EPA and Respondent. by their undersigned representatives, hereby c:onselu atld agree as follows:

I. Permitting

a. Within one yeb! of the effective date Oflhis Agreement, for all existing Emission Sources listed

in AppendiX A, Table A-I, Respondent shall submit to EPA a complete syntbctic minorsource

pennjt application under EPA's Tribal Minor NSR Rule. If Respondent determines that an

cmi:;:;ion source was incorrectly included in Appendix A, Table A~I. it may notifY EPA of that

fact by October 14,2011. In this circumstance, Paragrapb F.l3 below shall apply.

b. By October 1,2011, Respondent sbaU submit to EPA a complete synthetic minorsource permit

application for New Emis.-<:ion Sources Listed in AppeDdL'C A, Table A-2 that will commence.

construction during the period starting August 31. 20J I, and cnding December 31, 2011.

c. fiy November 1,2011. Respondent shall submit to EPA a complete synthetic minor soutee

permit application for New Emission Sources listed in Appendix A. Tllble A·) that will

commence conljtruction dUling the period Slilrting Jnnunry 1,2012, and ending March 31. 2012.

d. By January 1,2012, Respondent shall submillo EPA a completc ~ynthctic minor source permit

application for New Emission Sources listed iu Appcndix A., Table A-4 Ihllt will COUUllenec

constructioll during the period starting April 1,2012, and ending June 30. 2012.

e. Any emission SOUI'CCS for which constnlctiou will commence aner June 30, 2012, arc nol Sllbjc.."C1

to this Agreement and Respondent must oblaill an effective synthetic minor source pennit from

EPA or comply with the provisions of 40 C.F.R. § 52.21 prior to commencing construction.

f. 1nc1usion of an emission source listed in Appendix A, Table A·2. A-3 or 1\..4 does not prechldc

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

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

construction prior to June 30, 2012,

g. Tfthose cmission sources listed ill Appendix A, Tables A-2. A-3, and/or A-4 do not commence

construction by June 30.2012, then they arc therefore not subject to Section 0 of litis

Agreement

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2. Control Requirements

a. For aU Existing Emission Sources listed in Appendix A, Table A-I, the Respondent shall comply

with the requirements of Appendix. B by no later than December 1,2011.

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

shall comply with the requirements of Appendix B upon start-up ofproduction. Emission

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

are not subject to the requirements ofIbis Agreement.

3. Notification

Respondent shall notify the EPA on the last business day of each month of aU ofthe emission

sources subjecllo tllis Agreement that commence construction in the previous month. Respondent shaJl

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

Appendix B and whether they have received an effective synthetic minor source permit. This notice

shaH also include a list of emissions sources that are removing a 98% control device and using a 90%

control device as outlined in Appendix B.

Unless otherwise specified herein, whenever Respondent's notification, submissions. or

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

following:

Cynthia J. Reynolds, Director

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

Air & Tox:ies Technical Enforcement Program

1595 Wynkoop St.

Denver, CO 80208-1129

reyno1ds.cynthia@epa.gov

E. CIVIL PENALTV

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

seclion 113(d)(l)(B) oftbe CAA, 43 U.S.C. §7413(d)(I)(B), EPA has detcrmined thnl.n appropriate

civil penalty to settle this action is the amount of $3,000 per emission source listed in Appendix A for a

totalof__ 53 SOflHCES $159,000

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

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

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

EPA's Regional Judicial Officer, that adopts this Administrative Complaint and Consent

Agreement. If the due date faJis on a weekend or legal federal holiday, then the due date

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becomes the neXl business day. Th~ dale the payment is made i!l considered to be the dare

processed by the Bank described below. Payments received by II :00 AM arc processed on the

next business day.

b. The paymentshall be made by remitting a cashier's orccrtificd check. including the name llnd

docket number ofthis case. for the euJeuJatcd amount, payable Lo uTreuliurer. UniLed Statc~ of

America.'" to:

CHECK PAYMENT:

US Ellvil'OnmentuJ Protection Agency

Fines and Penalties

Cincinnati Finance Center

PO Box 979077

St. Louis, MO 63197·9000

OVERNlOIH MAlt.:

U.S. Bank

1005 Convention Plllj'..l!:

Mail Stalioo SIrMO·C2GL

St. Llmis. MO 63101

Contact: Natalie Pear:-;ol1

314-418·4087

WIRE TRANSFRR:

Wire Transfers should be direcled to Ihe Fcdcrul Reservc Bank ofNew York

Federal Reserve Bank of New York

ABA 021 030004

Account- 68010727

SWIFT addrc" I'RNYUS33

33 Liberty Street

New York, NY 10045

-Field Tag 4200 of the F'cdwirc message s110uld read AD 6801727 Environmental Prolection

Agency

ACH (also known 85 REX or remiLtance express):

Automated Clearinghouse (ACH) ror rcccivjn~ US cucreocy

PNCBank

808 J7" Street:, NW

Washington, DC 20074

Contact BJcs.,e White 30 1·887·6548

ABA 051 036706, Troll..etioo Code 22· checking

EnviroomCDlal Protection Agency, ACCOWll 310006. CTX Format

s
ON-LINE PAYMENT:

'fhere is now an On Line Payment Option, aVililahte through the Dept. ofTreasury. This payment option

can he accessed from the information below:

www.pay.gov

Enter sfo 1.1 in th~ search field. Open form and complete required fields.

A copy ofthe cbeck, or wire transfer, shall be sent simultaneously to:

Alexis North (8ENF-AT)

U.S. EPA Regioo 8

Tcdmical EnforcemenL Progl1lm

1595 Wyokoop St.

Deover, CO 80202·) 129

and Tina Artemis

Regional Hearing Clerk (8RC)

U.S.lJI'A Region 8

1595 Wyokoop St.

Deover, CO 80202-1129

C. Payment oflhe penally in this munner docs not relieve RespOndenl of its obligation to comply

with the requirements ofthe eAA and its regulations.

K GENERAL PROVISIONS

1. The emissions controls required in Appendix B under this Agreement shall be considered "federally

enforceable" and. as applicable, "legally and practicably enforceable" for purposes of calcl1lutlng tbe

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

2. Failure by Respondent to timely apply for, and ultimately obtain, the synthetic minor pem1it for any

emission SOurce identified in this Agreement or to comply with the requirements of Sectiou 0 nnd

Appendix B shall render any release or satisfaction of liability afforded under this Agreement nu1J and

void as to that source.

3. Nothing in this Agreement shall be construed as ttwuiver by the EPA or any other federal entity arits

authority to seek costs or any appropriate penalty associated with any collection action instituted as a

result of Respondent's failure to perform pursuant to the terms of th.is Agreement.

4, Once the ltcspondcnt has received a synthetic minor source permit from EPA for the emission source

identified in Appendix A, and that pennit has become effective, the terms of that permit supersede this

Agreement.

5. For all Existing Emissjon Sources listed in Appendix A, Table A-I, Respondent's submission of n

complete synthetic minor source permit application will constitute compliance with the relevant CAl\.

provisions during Ihe period or lllis Agreement.

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

relevant CAA provisions requires that Respondent; a)obtains an effective syntlletic minor source permit;

b) is subject to an EPA approved Fede.rallmplemclltatiol1 Plan whieh allows for a pennit by rule; or c)

comp1ic~ with a new EPA applicable eM regulation that removes them from PSD applicability

7. Notwithstanding the terms oflbis Agreement, Lbe Respondent must meet any other applicable

requirements of1he Act or its implementing regulations.

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

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

MaLfunction shall be defined as any sudden, infrequent, and not reasonably preventable failure. of air

pollution control equipment, procc.c;s equipment, or a process to operate Ul a normal or usual manner,

caused by circumstances entirely beyond the control of lhe owner or operator, but shaH not include

Iailmes that arc caused in whole or in parl by poor mainlt.:nance or careless operation.

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

not covered by lhis Agreement, including any emission source listed by the Respondent in Appendix A.

10. Each uoder.c;ignerl representative ofthe EPA and Respondents (parties) to this Agreement certifiesthat

he or shc is fully lluthorized by Ule Party represented to bind the Party to the terms ami conditions orthis

Agreemcnt and to execute and legally bind that Parly to this Agreement.

II. The Parties agree to submit this Agreement' to the Regional Judicial Officer, with a request that it be

incorporated into a Filial Or·der.

12. 'nle terms, conditions, and compliance requirements of tills Agreement IDllY llot bc modiOed or amended

except upon the written agreement of both parties, and approval of i3 Regional Judicial Officer.

13. 1£ the Respondent., pursuant to Paragraph D.l.a, above, wishes to amend the list of emission source:; in

Appendjx A, Table A-l, itshall submiL those suggested changes to EPA for approvul. If.EPA agrees

wifh thc suggested chllnges, the Parties will submit an amended Agrecment to the Regional Judicial

Officcr for incorporation into a revised Final Order.

14. The effective date oflhis Agreement is the date that the Final Order is signed by the Regional Judicial

Officer.

15. This Agreement, upon incorporation into a Final Order by the Regiooa] Judieii31 Officer and fl111

satisl~tction by the Parties, shall be a complete, full und Gnal settlement of the violations alleged in this

Agreement.

16. Each Party shall bear ilS own costs and attorneys fees in connection with all issnes associated with lills

AgreemenL

7
UNITED STATE. ENVTR NEMENTAL

PRO C 'I IN A Y ION 8

Complainant.

dr d

Assistant Regional Ad 101 lra.tor

Office of Enforcemenl, C mpJiance and

EnVU'Oltmental Justioe

OMP

Rt.:spondcnl.

~JC~ 9~~ CHARLES R~~ON, VIC~-PRESIDENT F. Q.

NAME

TITLE. COMPANY

at : AOGUS'r 26, 2011

--------=:...-----

1601 ELM TREET

SUITE 31100

DALLAS, TEXAS 75201
Petro-Hunt, LLC

APPENDIX A

Table A-1 Existing Emission Sources (Commenced Construction by August 30,2011)

Casinghead Casinghead TanksITank TanksITank

Section Wellsite Gas Gas Battery Batt Control

Souroe Township Completion Controlled Control Control Device lnsl.

Name LalJlonQ Ran!le Date Captured Device Device Date

Ft Berthold No. 147-94-1A-12-1H, 2H 47.58782N 102,59483W S1-T147N-R94W 07-05-2010 Shut In Pit Flare Pit Flare 07...{)5-2C10

FtBerthold No. 147-94-2A-11-1H. 2H 47.58780N 102.61505W S2-T147N-R94W 02-26-201 i 37 MCFD Pit Flare Pit Flare 02-26-2011

Ft Berthold No. 147-94-3A-1Q-1H. 2H <7.58672N 102.63566W S3-T147N-R94W 12-28-2010 180 MCFD Pit Flare Pit Flare 12-28-2010

Ft Berthold No. 148-94-S0-04-1H.2H,3H.4H,5H <7.64685N 10n5665W S9-T148N-R94W 07-14-2010 91 MCFD Pit Flare Pit Flare 07-14-2010

Ft Berthold No. 148·94-170-oB-1H, 2H <7.63249N 102.67658W S17-T148N·R94W 02-12-2010 '39 MCFD Pit Flare VOC Combustor OB'()2-2011

Ft Berthold No. 148-94-22A-27-1H 47.63015N 102.63840W S22-T148N-R94W 06-18-2010 72 MCFO PIt Flare Pit Flare 06-18-2010

Ft Berthold No. 148-94-25A-36-1H 47.61593N 102.59425W S25-T148N-R94W 05-30-2010 120 MCFO Pit Flare Pit Flare 06-30-2010

Ft Berthold No. 148-94-35D-25-1H, 2H 47.S8904N 102.61495W S35-T148N-R94W 01-14-2011 124 MCFD Pit Flare Pit Flare 01-14-2011

Ft Berthold No. 148-95-27A-34-1H, 2H, 3H 47.61S99N 102.76360W S27-T'48N-R95W In ProQress NA NA NA NA

Ft Berthold No. 1SG-94-3B-10-1H. 2H 47.84636N 102.70209W S3·T150N·R94W In Progress NA NA NA NA

Ft Berthold No. 152-93-17C-Q8-1H 2H.3H,4H 47.97867N 102.61928W S17-T152N-R93W 04-05-2010 807 MCFD Piceline Pit Flare 04-05-2010

Ft Berthold No. 152-94-136-24-1H 47.99150N 102.65893W 813-T152N-R94W 0J.04-2011 251 MCFD fTrt Flare Pit Rare 03-04-2011

Ft Berthold No. 152-9<1-14C-11-1H 47.97857N 102.68213W 514-T152N-R94W 05-17-2011 724 MCFD Pit Flare Pit Flare 05-17-201'

Ft Berthold No. 152-94-22D-15-1H, 2H 47.9642BN 102.68840W S22-T'52N-R94W 02-21-2011 254 MCFD Pit Flare Pit Flare 02-21-2011

Ft Berthold No. 151-94-34C-27-1H, 2H 47.64651N 102.70231W 534-T151 N-R94W In Proaress NA NA NA NA

Ft Benhold No. 146-94-19D/30A-18/31 47.61950N 102.69933W S19-T'48N-R94W In Prooress NA NA NA NA

Wells lH. 2H, 3H; 1H. 2H

Ft Berthold No. 14S-95-23D-14-1H, 2H 4?61889N 102.74139W S23-T148N-R95W In Pro ress NA NA NA NA

Ft Berthold No. 148·95-26A-35-1H, 2H 47,61&41N 102.74120W S28-T148N-R95W In Pro ress NA NA NA NA
Petro-Hunt, LLC

APPENDIX A

Table A-2 New Emission Sources (Commencing Construction between August31 and December 31, 2011)

Expected

Section Commence

Source Township Construction

Name RanQe Date

Ft Berthold No. 148-94-28A-33-1H. 2H S28-T148N-R94W 11-01-2011

Ft Berthold No. 152-93-18B-19-1H, 2H, 3H S18-T152N-R93W 12-05-2011

Ft Berthold No. 14S-94-33D-28-4H, 5H S33-T148N-R94W 12-23-2011

Ft Berthold 147-94-3B-l0-3H, 4H 5H S03-T147N-94W 12-26-2011

Ft Berthold 14fi..94-270-22-2H S27-T148N-94W 12-28-2011

Ft BerthOld 148-94--29B-32·1H, 2H SZ9-T148-94W 12-28-2011

Table A-3 New Emission Sources (Commencing Construction between January 1 and March 31,2012)

Expected

Section Commence

Source TownshIp Construction

Name Ranqe Date

Ft Berthold No. 146-95-24C·1a-1H. 2H 524-T148N-R95W OH)6-2012

Ft Berthold No. 148-9S-25B·36-1H, 2H S25·T148N-R95W 01-09-2012

A Berthold No. 152-93-SG-10-1H. 2H 3H. 4H, 5H, 6H S9-T152N-R93W 01-09·2012

A Berthold No. 148-94-17C-6·3H, 4H. 5H S17-T148N-R94W 02-01-2012

Fl Berthold No. 1S0-94·3A-1D-3H, 4H. 5H S3-T150N-R94W 02-15-2012

Ft Berthold No. 148-95-2Z0-15-1H. 2H 3H S22-T148N-R95W 03-14-2012

Ft Berthold 148·S4-29A·32-3H. 4H. SH S29-T148-9<W 3-15-2012

Ft Berthold 148-94-30A...J1..JH S30-T148-94W 3-16-2012

Ft Berthold 148-94-30B-31-4H, 5H S30·T148-94W 3-1E-2012

Ft Berthold 148-94-1SG·18-4H. 5H S19-T148N-94W 3-17-2012
Petro..Hunt lLC

APPENDIX A

able A-4 ew Emission Sources (Commencing Constructio between April 1 and June 30, 2012)

Expected

Section Commence

Source Township Construction

Name Rance Date

Ft Berthold No. 148-94-33C-28-3H S33-T148N-H94W 04-21-2012

Ft Berthold No. 146-90-6B-7-1 H S6-T146N-R90W 05-01-2012

Ft Berthold No. 146-91-32G-29-1H S32·T146N·R91W 05-01-2012

Ft Berthold No. 146-91-33G-28-1H S33-T146N-R91W 05-01-2012

Ft Berthold No. 146-91-34G-27-1H S34-T146N-R91W 05-01-2012

Ft Berthold No. 148-94-21A-20-1H 2H,3H S21-T148N-R94W 05-05-2012

Ft Berthold No. 147-94-3B-10-3H. 4H, 5H 53-T147N-R94W 05-15-2012

Fl Berthold No. 152-93-170~8-5H, 6H, 7H S17-T152N-R93W 05-18-2012

Ft Berthold 148-95-23C-14-3H, 4H, 5H S23-T148N-95W 5-22-2012

Ft Berthold No. 14B-94-360-25-2H 536-T148N-R94W 06-03-2012

Ft Berthold No. 148-95-22C-15-4H, SH S22-T148N-R9SW 06-03-2012

Ft Berthold No. 148-95-27B-34-4H, 5H S27-T148N-R9SW 06-03-2012

Ft Berthold No. 148-95-26B-35-3h, 4H, SH S26-T148N-R95W 06-10-2012

FtBerthold No. 151-94-26B-35-1H, 2H 3H, 4H, 5H 826-T151 N-R94W 06-20-2012

Ft Berthold No, 152-93-190-18-4H SH. 6H, 7H S19-T152N·R93W 06-29-2012

Ft Berthold No. 148-94-20C-21-4H, 5H $20-T148N-R94W 06-29-2012

Ft Berthold No. 148-94-22B-27-3H, 4H. 5H S22-T148N-R94W 06-29-2012

Ft Berthold No. 148-95-13A-24-3H. 4H, 5H $13-T148-R94-W 6-29-2012

Fort Berthold 152-94-13A-24-2H 3H,4H S13-T152-R94-W 6-29-2012
Al'l'ENDIX B

EMISSION CONTROL REQUIREMENTS

A. Applicability

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

the Bakken Formation on the .FortBcl1hold Indian Reservation in North Dakota and target the control

of casinghead gas emissions (also known as treater gas) ani emissions from oil and prod~lced water

storage tanks (tanks).

n. COlltrol Requirements

AU casinghead ga's and tank emissions must he controlled or captured llpon start of production. Jf gas

gathering infrastructure is in place, casingheadgas shull be routed to II gas gathering pipoJioc as soon

as pmcticablc. When a pipeline is not available. casinghead gas is required to be roLlted to a control

system 01' device in the Control Sys[cm List below, The Control System List also applies to emwolls

from oil and produced water storage tanks. Capture or control devicesshall be operated at all times

when emissions may be vented La lhcm.

111e owner/operator shaH maintain and operate all air pollution control cquiplllel\1and 011 cquipmcill

employed to conlain and collect vapors and transport tilCD] to thc cmission control system or device,

in uccordancc with the manufacturer's recommendations and in a manner consistent with good air

pollution control practice for minimizing emissions.

Control System List

J. A ground pit flare (including, but not limited to pit nares, shop built flares or other similar

oillield type llares) or oUtcr 90% or greater DRE deVice. If a ground pit flarc is utilizcu. II

90% DRE to be assumed, This is considered the minimum le~l uf conLrol for tunk and trCaler

gas emissions at all times.

2. A vapor recovery unil or oil Slabilj~er thut is designed and operated to reduce the mass content

of vae and total hazardous air pollutant (HAP) emissions In the vapors vented to lhc device

by at !east95% by weight.

3. An enclosed combustion deviceappmpriatcly sized for the site's opcrating parameters and for

which the manufacturer represents will achieve 3 destruction efliciency of allcl1sl 95% or thc

vOCs with respeet to the volumetric l10wand BTU content ofthe sitc's waste gas stream. An

enclosed combustion device is operated inclUding, but not limited to the following:

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

excecd a total of 5 minutes during '"y 2 consecutive hours; Melhod 22 of 40 CFR

Appendix A .~hall he used to determine the compliance with this visible emission

provision.

11
• Owner/operator shall install an appropriate, reliable lelnpcrnture sensorllransmitter

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

scnsorltransmiller will!>e connected to the sito's Supervisory Control and Data

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

at a ::;pecified frequency and will be programmcdto trigger an alarm if temperatures

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

"continuous" monitoring c:qtlipment shall measure and record values at least once

every hour.

4. A utility flarc (using an open name wiltnut enclosure) that is designed and operated to reduce

the mass content ofVOC and total HAP emissions in the vapors vented to the device by at

lenst 98% by weight. A utility narc is any Dare Lhat is designed and operated in accordance

with the requiremCtlts of40 C.f.R § 60,18, RequiremellL'i of40 C.F.R § 60,1 Rinclude, but nrc

notlimiled to the following:

• Flare shall be designed and opernted with no visible emissions except for periods not

10 exceed a total of S minutes during HOY 2 consecutive hours;Melhod 22 of 40 CPR

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

provision;

• Flare shall be operated with a flame prescot at aU times;

• An owner/operator ha!> the chOice of adhering to either the heat content spccific8tloB

in paragrapb 110 C.F.R.. § 60.18(c)(3)(ii) aod the maximum tip velocity specifications

in puragntpb (c)(4) 01' adhering to the requiremcnts in 40 C,P.R, § 60,1 8(c)(3)(i);

• Flares used to comply with this section shall be steamassisted, lliNl.ssisted or

nonassiSl'cd;

• Owners/operators of flllrcs shall monitor the confrol dcvices to ensure that they IIrc

operated nnd maintained in eonforinunee with their designs;

• The presence of a Darc pilot flame shall be monitored using a thermocouplc or any

other equivalent device to delcct the presence of a flame,Continuous checks by an

operator to verify the existence of D visible flame or to ,verify proper operation of the

igniler may be used in lieu of a physical deviee,Por the purpose oflhis paragraph,

"continuous" monitoring equipment shall measure nnd record values at least nce

every hour.

• Por safety and air pollution conLrol purposes: ench flare must be eqllipped and

opcrated with an automatic ignitor or 11 continuous burning pilot, which must be

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

emergency purposes only.

5, Contini devices other Ulan those listed above may be utilized upon approval from UlO EPA,

C. I~cc(lrrlkec:pingRequirement:!

l. Owncrlopcftltorshall maintain control device tClllpCl'tllllre logs lor thrce years,

12
CERTIFICATE OF SF-RVICE

The undersigned cerlifies thalthe original orthe attached ORDER GRANTING

ELECTRONIC FILING OF CONSENT AGREEMENT ANI) FINAL ORUER in the matter

of PETRO·HUNT, LLC.; DOCKET NO.: CAA·08-2011·0024, W'dS filed with the Regional

Hearing Clerk on Angusl29. 2011.

Further. the undersigned ccrtilies that a true and correct copy of the document was

delivered to Jim Eppers, Enforcement Attorney, U. S. EPA - Region 8. 1595 Wynkoop Street.

Denver. CO 80202·1129. True and correct copics or the nforcmcmioncd documents were placed

in the United Stutes mail on August 29, 210 II. to:

Jeff I-lerman

Petru·Hant LLC

P.O. Box 935

Bismarck. ND 58502

And cmailcd to:

Elizabeth Whitsel

U. S. Environmental Protection Agency

Cincinnati Finance Center

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

Cincinnati. Ohio 45268

AuguSt 29. 2011 \_iA.4-~ Tina Ancmis

ParalcgallRcgiomli Ircaring lerk