Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II.

A Resolution of the Governing Board Adopting Proposed Rule 1148.1

— Oil and Gas Production Wells, and Proposed Amended Rule 222

— Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation IL

WHEREAS, the Governing Board finds and determines with certainty that the Proposed Rule 1148.1

— Oil and Gas Production Wells, and Proposed Amended Rule 222 Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant to Regulation II, are considered a “project” pursuant to the California Environmental Quality Act (CEQA); and

WHEREAS, the AQMD has had its regulatory program certified pursuant to Public Resources Code §21080.5 and has conducted CEQA review and analysis pursuant to such program (AQMD Rule 110); and

WHEREAS, AQMD staff has prepared a Draft Environmental Assessment (BA) pursuant to its certified regulatory program and CEQA Guidelines § 15252 setting forth the potential environmental consequences of Proposed Rule 1148.1 -Oil and Gas Production Wells; and Proposed Amended Rule 222

— Filing Requirements for Specific Emission Sources Not Requiring a Written Penmt Pursuant to Regulation II; and

WHEREAS, the Draft BA was circulated for public review, comments received have been responded to, and a Final BA has been prepared; and

WHEREAS, it is necessary that the adequacy ofthe Final EA, including the responses to comments, be determined by the Governing Board prior to its certification; and

WHEREAS, the AQMD is not required to prepare a Statement of Findings, a Statement of Overriding Considerations, or a Mitigation Monitoring Plan because the proposed project is not expected to generate significant adverse environmental impacts; and

WHEREAS, the AQMD Governing Board voting on proposed Rule 1148.1

— Oil and Gas Production Wells, and proposed amended Rule 222

— Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II, has reviewed and considered the Final EA including responses to comments; and
package for this meeting, and hereby find and determines that cost and employment

impacts are as set forth in that assessment; and

WHEREAS, the Governing Board has determined that Proposed Rule 1148.1 -

Oil and Gas Production Wells, and Proposed Amended Rule 222 -Filing Requirements

for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation

II, will result in increased costs to industry, yet are cost-effective as described in the

Socioeconomic Impact Assessment; and

WHEREAS, the Governing Board has actively considered the Socioeconomic

Impact Assessment and has made a good faith effort to minimize such impacts; and

WHEREAS, the Governing Board has determined that a need exists to adopt the

Proposed Rule 1148.1 — Oil and Gas Production Wells and Proposed Amended Rule

222 — Filing Requirements for Specific Emission Sources Not Requiring a Written

Permit Pursuant to Regulation II, to implement Control Measure FUG-05 of the 2003

AQMP and implement all control measures feasible to control VOC from oil wells and

well cellars at oil and gas production facilities; and

WHEREAS, the Governing Board of the South Coast Air Quality Management

District obtains its authority to adopt this proposed rule from Sections 39002, 40000,

40001,40440,40702, 41508, and 41700 ofthe California Health and Safety Code; and

WHEREAS, the Governing Board has determined that Proposed Rule 1148.1 -

Oil and Gas Production Wells, and Proposed Amended Rule 222 -Filing Requirements

for Specific Emission Sources Not Requiring a Written Permit Pursuant to RegulationII, as proposed is written or displayed so that its meaning can be easily understood by

the persons directly affected by it, and

WHEREAS, the Governing Board has determined that Proposed Rule 1148i -

Oil and Gas Production Wells, and Proposed Amended Rule 222 -Filing Requirements

for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation

II, as proposed is in harmony with, and not in conflict with or contradictory to, existing

federal or state statutes, court decisions, or regulations; and

WHEREAS, the Governing Board has determined that Proposed Rule 1148.1 -

Oil and Gas Production Wells, and Proposed Amended Rule 222 -Filing Requirements

for Specific Emission Sources Not Requiring a Written Permit Pursuant to RegulationH, as proposed does not impose the same requirements as any existing state or federal

2
q

g 

ursuant to Regulation II, as proposed references the following statutes which the AQMD hereby implements, interprets or makes specific: Health and Safety Code 4000 1(a) and (b) (air quality standards and air pollution episodes); 40702 (adoption of rules and regulations), 40440(a) (rules to carry out plan); 40440(b) (best available retrofit control technology); 4-920.5(c) (and other feasible controls), and Federal Clean Air Act Section 172(c)(I) (reasonably available control technology); and

WHEREAS, the Governing Board has determined that there is a problem that Proposed Rule 1148.1 -Oil and Gas Production Wells, and Proposed Amended Rule 222 -Filing Requirements for Specific Emisáion Sources Not Requiring

a Written

Permit Pursuant to Regulation II, will help alleviate, that is the basin does not meet the

ambient quality standards for ozone and the proposed rule will promote the attainment ofthis standard; and

WHEREAS, the Governing Board has determined that Proposed Rule 1148.1 - Oil and Gas Production Wells, and Proposed Amended Rule 222

— Filing Requirements for Specific Emission Sources Not Requiring

a Written Permit Pursuant to Regulation 11, should be adopted to implement Control Measure FUG-05 of the 2003 AQMP and implement all control measures feasible to control VOC emissions from oil wells and

well cellars at oil and gas production facilities; and

WHEREAS, a public hearing has been properly noticed in accordance with the provisions ofHealth and Safety Code Section 40725; and

WHEREAS, the Governing Board has held a public hearing in accordance with all provisions oflaw; and

WHEREAS, the Governing Board specifies the manager of Proposed Rule 1148.1

— Oil and Gas Production Wells, and Proposed Amended Rule 222

— Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant

to Regulation II, as the custodian of the documents or other materials which constitute

the record of proceeding upon which the adoption ofthis proposed rule is based, which

arc located at the South Coast Air Quality Management District, 21865 Copley Drive, Diamond Bar, California; and

WHEREAS, the Governing Board has determined that Proposed Rule 1148.1 - Oil and Gas Production Wells, and Proposed Amended Rule 222 -Filing Requirements for Specific Emission Sources Not Requiring a Written Permit Pursuant to Regulation II, should be adopted for the reasons stated in the StaffReport; and

3
Safety Code § 40726; and

NOW, THEREFORE, BE iT RESOLVED, that the Governing Board does

hereby certify that the Final EA for Proposed Rule 1148.1 -Oil and Gas Production

Wells, and Proposed Amended Rule 222 — Filing Requirements for Specific Emission

Sources Not Requiring a Written Permit Pursuant to Regulation II, was completed in

compliance with CEQA and Rule 110 provisions; and finds that the Final BA was

presented to the Governing Board, whose members reviewed, considered and approved

the information therein prior to acting on Proposed Rule 1148.1 - Oil and Gas

Production Wells; and Proposed Amended Rule 222 — Filing Requirements for Specific

Emission Sources Not Requiring a Written Permit Pursuant to Regulation II; and

BE IT FURTHER RESOLVED, that the Governing Board directs staffto work

with the California Department of Oil and Gas and Geothermal Resources to explore the

possibility of a memorandum of understanding for the joint inspection of well cellars

and coprdination of enforcement activities, and report back to the Board on the results

ofsaid discussions at the earliest practical date; and

BE IT FURTHER RESOLVED, that the Governing Board directs staff to

provide a status report to the Stationary Source Committee on Rule 1148.1

implementation and any new related data on emissions, inspection frequency, and other

information by September 2005, and any recommended changes to the rule as

appropriate; and

BE IT FURTHER RESOLVED, that the Governing Board does hereby adopt,

pursuant to the authority granted by law, Proposed Rule 1148.1 Oil and Gas

Production Wells, and Proposed Amended Rule 222 — Filing Requirements for Specific

Emission Sources Not Requiring a Written Permit Pursuant to Regulation 11, as set forth

in the attached and incorporated herein by reference.

AYES Antonovich, Burke, Carney, Craycraft, LaPisto-Kirtley, Perry.

Postmus, Silva, Verdugo-Peralta, Wilson, and Yates.

NOES None

ABSENT: Loveridge. — - r

:i 1

-

uJz ) C)Lt{

Date \IeJ)in*1. (lerL of the Bean

4
Amend Proposed Rule 1148.1 paragraph (d)(8) a.,fi’c*IJ ir .LJ(a’hfl( From: I,L tkt.. ocf 1

/ US’A 1vw

(81 Effective (date of adoption’). no person shall: v’o sjafcLmkw I rriC-k,

(A) Remove or otherwise render ineffective a well ceDar at an oil and gas

production well except fbr purooses of abandonment to be certified by the

California Dcnartxnent of Conservation. Division of Oil. Gas and

Geothermal Resources: or

(B) Drill a new oil and gas production well unless a well cellar is installed for

containment offluids.

To:

IQ

(A) Remove or otharwiso render ineffective a woll collar at on oil and aan

production well exocot for purnooco of ubandonnicnt to be certified by the

California Department of Coneorvution. Divicion of Oil. Gao andGoothcrinal Rocourcoc: or

(B’) Drill a now oiland gas production woll unloso a well collar is metalled for
Rule amendments since release ofProposed Rule 1148.1 included in your Board Package dated

March 5, 2004 are indicated by double-underline and double-strikethrough.

Amend PR 1148.1, paragraph (dX3) to read:

(3) The operator of an oil and gas production facility shall not allow organic liquid to

be stored in a well cellar. During periods of equipment maintenance, well

drilling, well p1uam abandonment operations, or well workover, the operator

shall pump out or remove organic liquid that accumulates in the well cellar no

later than two (2) days after the maintenauce drilling, well plu2mng.

abandonment or workover activity at the well is completed. The operator may

store organic liquid in a portable enclosed storage vessel provided the vessel is

equipped with air pollution control equipment to reduce the TOC emissions to

less than 250 ppm outlet concentration according to the test method in paragraph

(gX1)excent where safety reauircments established in a written company safety

manual or policy deem it impractical during maintenance. nlu2sinu.

abandonment. well workover otdiillin: operations. The operator shall conduct a

TOC measurement according to the test method in paragraph (g)(1) at the time of

filling, and weekly thereafter to ensure that the system achieves the emission

standard of 250 ppm.

Amend PR 1148.1, paragraph (dX5) to read:

(5) The operator of an oil and gas production facility shall pump out or remove

organic liquid accumulated in the well cellar within five (5) calendar days, or

withi4-eøss)v the çloe tjpl)pine bine çav if the well cellar is

located within 100 meters of a sensitive receptor whenA5 the TOC

concentration in the well cellar is greater than 250 ppm as determined by the test

method in paragraph (g)(l)—e. In lieu of the method in paragraoh (21(1L an

operator may rneasure(B) TIhe depth of accumulated organic liquidpump-out the liquid when the depth erceeds two (2) inches- if thc well collar is
Amend PR 1148.1, paragraph (dX7) to read:

(7) Except as Rule 1173 aoplies to components ofFer produced gas handling I

equipment located within 100 meters of a sensitive receptor, the operator shall

repair any gaseous leaks of 250 ppm TOC or greater by the close of the businessday followiiw the within 31 hour. ofleak discoveiy or take actions to prevent the

release ofTOC emissions to the atniosphere until repairs have been completed.

Amend PR 1148.1, paragraph (hX3) to read:

(3) The provisions of paragraph (dxl). (d(2 and (dX5) shall not apply to any well

cellar used in emergencies at oil production facilities, if clean-up procedures areimplemented within 24 hours after each emergency occurrence and completed

within ten (10) calendar days.

Add to the Resolution as the second and third to last paragraphs:

HE IT FURTHER RESOLVED, that the Governing Board directs staff to work with the California Department of Oil and Gas and Geothermal Resources to explore the possibility of a memorandum of understanding for the joint inspection of well cellars and coordination of enforcement activities, and report back to the Board on the results ofsaid

discussions at the earliest practical date.

BE IT FURTHER RESOLVED, that the Go’erning Board directs staff to provide a status report to the Stationary Source Committee on Rule 1148.1 implementation and any new related data by September 2005, and any recommended changes to the rule as appropriate.

-

Correct date on cover sheet of Final Environmental Assessment:

March 5, 2004

2
BOARD MEETING DATE: April 2, 2004 AGENDA NO. 1

MINUTES: Governing Board Monthly Meeting

SYNOPSIS: Attached are the Minutes of the March 5, 2004 meeting.

RECOMMENDED ACflON:

Approve Minutes of the March 5, 2004 Board meeting.

Saundra McDaniel,

Clerk of the Board

R1
FRIDAY, MARCH 5, 2004Notice having been duly given, the regular meeting of the South Coast Air Quality

Management District Board was held at District Headquarters, 21865 Copley Drive, Diamond Bar, California. Members present:

William A. Burke, Ed.D., Chairman

Speaker of the Assembly AppointeeSupervisor S. RoyWilson, Ed.D., Vice Chairman

County of Riverside

Supervisor Michael D. Antonovich (arrived at 9:15 a.m. and left at 11:30a.m.)

County of Los AngelesMs. Jane W. CameySenate Rules CommitLee AppointeeCouncilmember William S. Craycraft (left at 11:25a.m.

Cities of Orange County

Mayor Pro Tern Beatrice J. S. LaPisto-KirtleyCities of Los Angeles County - Eastern RegionCouncilmember Jan Perry

Cities of Los Angeles County — Western RegionSupervisor Bill PostmusCounty of San Bernardino

Supervisor James W. SilvaCounty of Orange

Ms. Cynthia Verdugo-Peralta

Governor’s Appointee

Councilmember Dennis R. Yates

Cities of San Bernardino County

Members absent:

Mayor Ronald 0. LoveridgeCities of Riverside County
Pledge of Allegiance: Led by 

Opening Comments

Dr. Barry R. Wpllerstein. Executive Officer. 1) Noted that staff would be

recommending a continuance of Agenda Item No. 36 (Annual RECLAIM Audit

Report for 2002 Compliance Year) to the April 2, 2004 Board meeting in order to

recheck data in the report. 2) Announced that former Los Angeles City

Councilman and AQMD Board Member Hal Bemson was in attendance with

respect to Agenda Item No. 14 (Annual Meeting of Brain Tumor and Air Pollution

Foundation).

(Mr. Antonovich arrived at 9:15 a.m

• Recognition of Former Board Member Leonard Pautitz

Chairman Burke. Presented a crystal dove award to Mr. Paulitz in

recognition and appreciation of his service on the AQMD Governing Board as

representative for the Cities of San Bernardino County for eleven-arid-a-half

years, a term of service marked by dedicated representation on behalf of his

constituents and by the persistence of improving the air quality for all residents of

Southern California.

• Report on the State of Air Quality

Ms. Lynn Terry, GARB Deputy Executive Officer, introduced Ms. Rajinder

Sahota, Air Pollution Specialist, who gave a slide presentation on the State of the

State’s Air Quality.

In summary, statewide air quality has improved: ozone, particulate matter,

and toxics exposures have declined; new areas attained the air quality standards

(six areas have met the federal 1-hour ozone standard and three areas have

attained the state ozone standards); less improvement occurred In inland valleys

for ozone and PMIO than in the coastal areas, which are close to attainment; and

improvement was made despite growth in population and vehicle miles traveled.

More emissions reductions are needed to meet the federal 8-hour standard,

which is more health protective, and attainment deadlines will be post-2010.

Chairman Burke suggested that GARB and AQMD staff develop a pilot

project with the goal of 2005 to improve air quality in the Inland Empire.
3. Set Public Hearings April 2, 2004 to Consider Amendments and/or Adoption to AQMD Rules and Regulations

Adopt Proposed Rule 1470 -Requirements for Stationary Diesel-fueled Internal Combustion and Other Compression Ignition Engines

Amend Rules 403 - Fugitive Dust, 1186 - PM1O Emission Reductions from Paved and Unpaved Roads and Livestock Operations, and 403.1 - Supplemental Fugitive Dust Control Requirements for Coachella Valley Sources

4. Execute Contract to Develop and Demonstrate Variable Gaseous Fueled Engine

5. Execute Contracts for AQIP Proposals Received During First Three Quarters of 2003 and Issue REP

6. Execute Contracts to Develop and Demonstrate Hydrogen Internal Combustion Engine Vehicles

7. Execute Contracts for FY 2002—03 Carl Moyer Memorial Air Quality Standards Attainment Program Using Carl Moyer and Clean Fuels Funds

8. Issue RFP to Purchase 84-Passenger CNG School Bus for School Bus Loaner Program and Authorize Staff to Transfer Ownership of Ford E450 Demonstration Bus to Transportation Foundation of Los Angeles

9. Approve Changes to Microturbine Program Funded by Rule 1309.1 - Priority Reserve Mitigation Fees

10. Execute Contract to Purchase Two Carbon Analyzers and Reallocate Remaining Funds Under PM2.5 Program

11. Execute Contracts to Purchase Various Laboratory Equipment for MATES-Ill and PAMS Programs

12. Execute Contract for Coachella Valley PM1C) Clean Streets Management Program
y 

Point No. 3, to reflect that his suggestion was that the District implement a points

incentive program as part of its RFP process to award additional points for trucks

making deliveries to District headquarters that utilize alternative fuels or install

particulate traps; and on page 3, Point No. 7, to reflect that he encouraged

District staff to hold regular meetings with each city within the four-county region.

ON MOTION OF MS. LaPISTO-KIRTLEY, SECONDED BY

DR. WILSON (Absent: Loveridge), THE BOARD APPROVED

AGENDA ITEM 1, WITH THE CORRECTIONS TO POINTS 3 &

7 AS NOTED ABOVE, AND ITEMS 2 THROUGH 13; AND

ADOPTED RESOLUTION NO. 04-3, DELEGATING

AUTHORITY TO THE TREASURER OF THE COUNTY OF

LOS ANGELES TO INVEST AND REINVEST FUNDS OF THE

SCAQMD, AS RECOMMENDED BY STAFF, BY THE

FOLLOWING VOTE:

AYES: Antonovich [except Items #5 & 7J, Burke, Camey,

Craycraft, LaPisto-Kirtley, Perry, Postmus, Silva,

Verdugo-Peralta [except Items #5(la&b) & 6],

Wilson (except Items #5(lb) & 12j, and Yates.

NOES: Verdugo-Perafta (on Item 5(la&b) only).ABSTAIN: Antonovich (on Items #5 & 7 only),

Verdugo-Peralta (on item #6 onlyj, and Wilson (on

Items #5(lb) & 12 only).

ABSENT: Loveridge.

14. Annual Meeting of Brain Tumor and Air Pollution Foundation

Dr. Wallerstein noted that an annual report, financial accounting, and

amendments to the Foundation’s bylaws were submitted for approval by the

Board, as the Foundation’s sole member.

Ms. Carney requested that future reports include a more detailed account

of how the funds were spent, and the type and status of the research; and she

suggested that a scientific panel be formed to advise on health studies.

Dr. Burke suggested that the Medical Director of Research give a presentation

before the Board.
ARTICLES OF INCORPORATION AND BYLAWS, AS RECOMMENDED BY STAFF.

15, Public Affairs Report

16 Hearing Board Report

17, Civil Filing and Civil Penalties Report18. Lead Agency Projects and Environmental Documents Received by AQMD

19. Rule and Control Measure Forecast

Status Report on Major Projects for Information Management Scheduled to Start During Last Six Months of FY 2003-04

FY 2003-04 Contract Activity

Report on Small Business Roundtable

Agenda Item No. 21 was withheld for discussion.

BOARD CALENDAR

Administrative Committee

25. Investment Oversight Committee

26 Legislative Committee

Mobile Source Committee

Stationary Source Committee

29. Technology Committee

30. Mobile Source Air PoIlutior Reduction Review Committee

ON MOTION OF MR. CRAYCRAFT, SECONDED BY MR. YATES, AND UNANIMOUSLY CARRIED (Absent: Loveridge) THE BOARD RECEIVED AND FILED AGENDA ITEMS 15 THROUGH 20, 22, AND 24 THROUGH 30, AS RECOMMENDED.
RECEIVE AND FILE AGENDA ITEM 21, AS

RECOMMENDED BY STAFF, WITH THE FOLLOWING

MODIFICATION:

Staff to foster and encourage more businesses within

each of the industries reflected in the report, so that

there is more competition within those industries.

THE MOTION WAS SECONDED BY MR. SILVAI AND

UNANIMOUSLY CARRIED (Absent: Loveridge)

PUBLIC HEARINGS34. Adopt Rule 1148.1 - Oil and Gas Production Operations and Amend Rule 222—

Filing Requirements for Specific Emission Sources Not Requiring a Written

Permit Pursuant to Regulation II

Dr. Laki Tisopulos, Assistant DEO of Planning, Rule Development, and

Area Sources, gave the staff report. An errata sheet was distributed by staff to

Board members and copies were made available to the public. The errata sheet

contained the following revisions in response to comments that staff received

from the Department of Oil, Gas and Geothermal Resources.

Amend PR 1148.1, subparagraph (d)(3) as follows:

(3) The operator of an oil and gas production facility shall not allow

organic liquid to be stored in a well cellar. During periods of

equipment maintenance, well drilling, well plugging, abandonment

operations, or well workover, the operator shall pump out or remove

organic liquid that accumulates in the well cellar no later than two

(2) days after the maintenance, drililno, well luoaino.

abandonment or workover activity at the well is completed. The

operator may store organic liquid in

a portable enclosed storage

vessel provided the vessel is equipped with air pollution control

equipment to reduce the TOC emissions to less than 250 ppm

outlet concentration according to the test method in paragraph

(g)(1). exceDt where safety reauirements established in a written

company safety manual or oolicv deem it impractical during

maintenance. Dluooino. abandonment well workover or drilling

operations. The operator shall conduct

a TOC measurement

according to the test method in paragraph (g)(1) at the time of
(5) The operator of an oil and gas production facility shall pump out or

remove organic liquid accumulated in the well cellar within five (5) calendar days, or within 21’ houm by the close of the following business day if the well cellar is located within 100 meters of

a

sensitive receptor, when .(A) the TOO concentration in the well

cellar is greater than 250 ppm as determined by the test method in paragraph (g)(1)-eL In lieu of the method in paragraph (g)(1). an

ocerator may measure 4B-Jthe depth of accumulated organic liquid and pump-out the iould when the deeth exceeds two (2) inches if the well collar is looitod within 100 motom of

a censitivo r000ptor. The organic liquid depth may be measured using

a “cooper coat”

gauge or any other measuring instrument determined to be

acceptable by the Executive Officer.

Amend PR 1148.1, subparagraph (d)(7) as follows:

• Except as Rule 1173 alles to components of .Fer produced gas handling equipment located within 100 meters of

a sensitive

receptor, the operator shall repair any gaseous leaks of 250 ppm TOC or greater by the close of the business day followino the itithin .21 hourn of leak discovery or take actions to prevent the release of TOO emissions to the atmosphere until repairs have been completed.

Amend PR 1148. 1 subparagraph (h)(3) as follows:

The provisions of paragraph (d)(1). fd)(2) and (d)(5) shall not apply

to any well cellar used in emergencies at oil production facilities, if clean-up procedures are implemented within 24 hours after each

emergency occurrence and completed within ten (10) calendar days.

Add to the Resolution as the second and third to last paragraphs:

BE IT FURTHER RESOLVED, that the Governing Board directs staff to work with the California Department of Oil and Gas and Geothermal Resources to exilore the possibility of

a memorandum of

understanding for the loint inspection of well cellars and coordination of

enforcement activities, and report back to the Board on the results of said

discussions at the earliest practical date.
aporonriate.

In response to Ms. Camey’s question to staff, Dr. Tisopulos confirmed that

the proposed $28.00 fee is for the additional time invested to implement

Rule 1148.1 and to partially recover the cost of an inspector inspecting the

facilities once a year.

Ms. Carney noted her desire to add to the last paragraph of the additional

Resolution language on the errata sheet, an analysis on the fee amount and the

need for the fee for facilities that currently do not have permits.

Chairman Burke suggested that the District absorb the cost the first year,

and noted his concern that the well operators should be responsible for the fee

without knowing if the fee amount is appropriate.

In response to Mr. Yates’ question to staff, Dr. Wallerstein confirmed that

the District may be facing a budget deficit of $12 million in the coming year, and

must significantly restructure in terms of the number of staff or revenues to theagency.

Dr. Wallerstein noted that the inspectors visited 185 oil well facilities

between February 2003 and September 2003, and upon review of the new

requirements, staff determined the fee is reasonable. However, the Board could

delay action on the $28.00 fee portion of Rule 222, pending action on the

FY 2004-05 budget and fee amendments, and upon review of the District’sinspection force arid the need to substantially reduce positions across the

agency.

Noting his displeasure of charging fees, Mr. Yates suggested that the

$28.00 fee be reviewed during the budget process and recommended that staffwork with the Department of Oil & Gas with regard to notification of violations or

leaks.

The public hearing was opened, and the Board heard testimony from the

following individuals:

PAUL FROST and RICHARD BAKER, California Department of Conservation,Division of Oil. Gas & Geothermal Resources (DOGGRI

Expressed concern with: (i) receiving three rule revisions with the same

date, without updated revision dates or comments, as well as receiving another

revision this morning; (ii) the burden/cost to capture and measure the gas in order
abandoned wells.

MARK SHEMARIA and IVAN TETHER , California Independent Petroleum Association (CIPA)

Commented that the emissions are overstated and obtained from old data, that the fee to fund an inspector is unfair, and that the revisions made within the

past 10 days may infringe upon the Health & Safety Code requirement on certain changes to rules.

DOGGR and CIPA recommended that the Board delay action on PR1 148.1 and PAR222 so that the working group, upon collecting and analyzing valid air emissions data, could formulate a rule that would result in better air

quality in Southern California.

Dr. Tisopulos clarified that the District used quantified emission factors obtained by CARB, and It is staff’s belief that the scientific figures are accurate.

Dr. Wallerstein noted that subsequent to the January 9, 2004 Board meeting, staff revised PR1148.1 to include subparagraph (d)(8), as follows, to address DOGGR’s concern:

18) Effective (date of adootion), no person shall:

(A) Remove or othe,wise render ineffective a well cellar at an oil

and gas production well except for Purposes of abandonment to be certified by the California Department of Conservation.

Division of Oil. Gas and Geothermal Resources: or

(B) Drill p new oil and gas production well unless a well cellar is

installed for containment of fluids.”

However, since Mr. Baker indicated he would need to discuss it further

with the industry representatives to determine it the provision is needed, staff indicated that subparagraph (d)(8) could be removed from the proposed rule, and distributed an errata sheet to that effect.

Dr. Tisopulos confirmed that Rule 1148.1 offers an exemption to facilities that produce less than one barrel a day or 200 cubic feet per minute, which must be monitored in order to implement the exemption. However, in lieu of measuring the gas rate, facilities may opt to measure the crude oil that is being produced which is less costly.
Dr. Wallerstein noted that two of the District’s sister agencies implemented

these regulations without many complaints; this Is part of the AQMP, and a court

ordered settlement that the Board consider and adopt the rule If feasible; andstaff relied on emissions inventory in. the AQMP which has been adopted by the

Board, GARB, and is now before the USEPA. Dr. Wallerstein noted that rules in

Ventura and Santa Barbara have not resulted in significant well abandonment,and that thoée rules do not have exemption levels as is proposed by District staff.

In addition, if it is. later discovered that the emissions were overestimated, the

Board could decrease the amount of the estimated emissions to one-third of the

current level and the rule would still remain valid, cost effective, and reduce more

emission reductions than previously adopted rules.

JAMES LEE. Omnibus Environmental

Expressed concerns regarding the rule language prohibiting the removal

or filling in of production well cellars, except for the purpose of abandonment; and

recommended its deletion. He also, indicated that as a consultant, he advises his

clients that oil wells are already addressed under AQMD Rule 1 173 (Control of

VOC Leaks and Releases from Components at Petroleum Facilities and

Chemical Plants).

ROBINA SUWOL, California Safe Schools

SHABAKA HERU, Community Coalition for Change, (CCC)

ZAHIRAH WASHINGTON. Natural Resources Defense Council (NRDC

Expressed support for PR1148.1 and urged the following changes:

(i) increase the distance requirement to 500 feet for oil and gas production

operations located near a sensitive, receptor; (ii) include hydrogen, sulfate, and

methane gas in the rule; (iii) cleanup of oil/gas leaks or removal of liquid from well

cellars within 24 hours of discovery; (iv) identify well locations to schools, parents,

and members of the community; and (v) AQMD commitment to frequent and high

priority inspections and monitoring. (Submitted written comments)

Ms. Carney recommended that language be added to subparagraph (d)(8)

that “no person shall remove a well cellar, except for purposes of abandonment.

unless approved by the Executive Officer. CARB and USEPA’

LYNN TERRY. California Air Resources Board

Indicated that “all feasible measures” is a requirement of the California

Clean Air Act and State planning process that the districts must adopt, and sheapologized for the lack of coordination in terms of the State agency

representatives bringing forth different messages to the Board.
release is threatened or occurs. (Submitted written comments)

Written Comments Submitted by: Brandon & Nicholas Baker

There being no further testimony, the public hearing was closed.

Ms. Verdugo-Peralta voiced her concerns with self-monitoring; and suggested that staff report back on the feasibility of inspections, the cost, and on the implementation of clean-up within 24 hours versus the next business day.

In response, Dr. Wallerstein suggested modifying the additional Resolution language contained in the errata sheet as follows:

BE IT FURTHER RESOL VED. that the Governing Board directs staff to provide a status report to the Stationary Source Committee on Rule 1148.1 implementation and any new related data on emissions. Insnection freauencv. and other information by September 2005. and

any recommended chanoes to the rule as appropriate.

In addition, .a new section could be added to PAR 222 to address the issue of the $28.00 fee as follows:

(fl Fees

(1 Oil roductlon well groups shall not be subject to registration. processing. and removal fees until July 2005.

To address Ms. Carney’s concern regarding the removal of well cellars, Dr. Wallerstein noted that subparagraph (d)(8) of Proposed Rule 1148.1 could be amended to read: uEfffive (date of adoption), unless aDDroved in writinp by the Executive Officer. CARB. and USEPA as havina no significant emission imDacts. no person shall...

ON MOTION OF MS. VERDUGO-PERALTA, SECONDED BY MS. CARNEY, AND UNANIMOUSLY CARRIED

(Absent: Loveridge), THE BOARD ADOPTED RESOLUTION NO. 04-4, ADOPTING RULE 1148.1 ANDAMENDING RULE 222, CERTIFIED THE FINAL ENVIRONMENTAL ASSESSMENT, AND APPROVED THE $28.00 FEE WITH THE UNDERSTANDING THAT THE
Add to the Resolution as the second and third to last

paragraphs:

BE IT FURTHER RESOLVED, that the Govemig

Board directs staff to work with the California Department of

Oil and Gas and Geothermal Resources to explore the

possibility of

a memorandum of understanding for the joint

inspection of well cellars and coordination of enforcement

activities, and report back to the Board on the results ofsaid

discussions at the earliest practical date.

BE IT FURTHER RESOLVED, that the Governing

Board directs staff to provide

a status reoort to the

Stationary Source Committee on Rule 1148.1

implementation and any new related data on emissions.

insDection freauency. and inspection data by Seoterg.r

2005, and any recommended changes to the rule as

appropriate.

Subparagraph (d)(3:

(3) The operator of an oil and gas production facility shall

not allow organic liquid to be stored in

a well cellar.

During periods of equipment maintenance, .çjj

drilling, well plupaina. abandonment ooerations. or

well workover, the operator shall pump out or remove

organic liquid that accumulates in the well cellar no

later than two (2) days after the maintenance, drilling.

well plugging, abandonment or workover activity at

the well is completed. The operator may store

organic liquid in a portable enclosed storage vessel

provided the vessel is equioped with air pollution

control equ,pment to reduce the TOC emissions to

less than 250 ppm outlet concentration according to

the test method in paragraph (g)(1). exceot where

safety reguirements established in

a written comoanv

safety manual or policy deem ft imoractical durina

maintenance. oluopina. abandonment. well workover

driIllng onerations. The operator shall conduct

a

TOC measurement according to the test method in
(5) The operator of an oil and gas production facility shall

pump out or remove organic liquid accumulated in the

well cellar within five (5) calendar days, or tilthin 21 howr by the close of the followina business day if the well cellar is located within 100 meters of

a sensitive

receptor, when IA) the TOC concentration in the well

cellar is greater than 250 ppm as determined by the

test method in paragraph (g)(1)i—o In lieu of the

method in paragraph (p)(1). an oDerator may

measure B—Tthe depth of accumulated organic liquid and Dump-out the liquid when the depth exceeds two (2) inches if the wall collar ic located within 100

motors -of

a concitivo receptor. The organic liquid depth may be measured using

a “copper coat” gauge

or any other measuring instrument determined to be

acceptable by the Executive Officer.

Subparagraph (d)(7):

(7) Exceot as Rule 1173 applies to camoonents of Fg produced gas handlin9 equipment loàated within 100

meters of

a sensitive receptor, the operator shall repair any gaseous leaks of 250 ppm TOC or greater by the dose of the business day following the within

34 hours of leak discovery or. take actions to prevent the release of TOC emissions to the atmosphere until repairs have been completed.

Subparagraph (d)(8):

“(8) Effective (date of adoption), unless approved in writing by the Executive Officer, CARB. and USEPA

as having no significant emissions impacts no

person shall:...”

Subparagraph (h)(3):

(3) The provisions of paragraph (d)(1 ). Id)(2) and (d)(5) shall not apply to any well cellar used in emergencies

at oil production facilities, if clean-up procedures are
31. California Air Resources Board Monthly Report (No Written Material - Transcripts

of the meetings are available at GARB’S web site, www.arb.ca.gov)

32. California Fuel Cell Partnership Steering Team Meeting

Amend Charter for Ethnic Community Advisory Group

ON MOTION OF DR. WlLSON DULY SECONDED, AND

UNANIMOUSLY CARRIED (Absent: Loveridge), THE

BOARD RECEIVED AND FILED AGENDA ITEMS 31 AND

32, AND APPROVED AGENDA ITEM 33, AMENDING THE

CHARTER FOR THE COMMUNITY ADVISORY GROUP,

AS RECOMMENDED.

(Mr. Craycraft left at 1125 a.m.)

Amend Rule 1132 - Further Control of VOC Emissions From High-Emitting Spray

Booth Facilities

Dr. Laki Tisopulos, Assistant DEO of Planning, Rule Devejopment, and

Area Sources, gave the staff report. An errata sheet was distributed by staff to

Board members and copies were made available to the public. The errata sheet

contained the following revisions to Proposed Rule 1132 and to the Resolution.

Amend subparagraph (d)(1) as follows:

1) Any combination of facility-wide measures at a composite

manufacturing facility that reduces VOC emissions by at least 65

percent effective July 1, 2004, from what would be emitted based

on othor appicablo r_Rule jj. requirements in effect as of

January 19, 2001, usage factors and aoproved emission factors.

demonstrated by use of the follgwina ecuation:

ft -jL fL

PelLern VOCRethii,:ujn ----—---———----———- - xIOO

fL. +YiU,
allowable monomer content of Rule 1162 as of January 19. 2001. and the notuafallowable method of resin/fiberglass acolication. ad

any associated vaoor suooressants and deoree of roll-out and

covered-cure used as ofJanuary 19,2001.

= the acoroved emission factor for the F” oel coat based on the

allowable monomer content of Rule 1162 as of January 19. 2001. and the actua!allowable method of ael coat application and dearer, afro!! cut and aoi’orwj aura used as ofJanuary 19, 2001.

the aooroved emission factor for the k” resin based on the

actual monomer content and the actual method of resin/fiberglass application and any associated vapor suooressants and dearee of

roll-out and covered-cure currently used.

Uj = the approved emission factor for the F” oel coat based on the

actual monomer content and the actual aelcoat acoilcation. Unified

&mlselon Factors icr Qnkrnat Non-AtomLlna Snrav

Anuilcatlen shell net bB used unless they are suncerted by

test results aenroved by the Executive Officer that

dómonstrts comollenca with the omission factors in

Attachment A actual mothad of eel oust arn3liostian and dagroo of roll out and ootorod cure for each aol coat currently ucod for each ad coat currently used.

Ii usage factor. bésed on the fraction of the F” resin used to the

total facility usage of all resins and ael coats durina the twelvemonth period prior to January 19.2001. as a monthly average.

fj = usaae factor, based on the fraction of the F” gel coat used to the

total facility usage of all resins and ael coats during the twelvemonth oer!od prior to January 19.2001. as a monthly average.

= usage factor, based on the fraction of the k” resin used to the

total fadiifr usage of all resins and gel coats during the latest twelve-month period, calculated as a monthly average.
manufacturing 

y 

p

y 

g

Add to the Resolution as the second to the last paragraph:

BE IT FURTHER RESOLVED, that the AQMD Governing Board

directs staff to conduct testing of eciuipment used in non-atomizedapplication of aelcoats to establish a better rance of operatina aarametersfor the eauipment, as appropriate, to further verify the validity and ensure

compliance with the emission factors included in Attachment A to Rule

1132. and return to the Board no later than December 31, 2004 to amend

Rule 1132 with chanaes, if any, to the emission factors and the inclusion of

operating parameters to ensure facility compliance.

The public hearing was opened, and the Board heard testimony from the

following individuals:

GARY DAVIS, Gold Shield Fiberglass

CURTIS COLEMAN, California Manufacturers & Technology AssociationSouthern California Air Quality Alliance

Expressed appreciation to staff for developing language for the six-month

extension on a portion of the rule (Davis) and for addressing the concern

regarding the exemption qualifications (Coleman).

Written Comments Submitted by;

American Composites Manufactures Association

There being no further testimony, the public hearing was closed.

ON MOTION OF DR. WILSON, SECONDED BY

MS. LaPISTO-KIRTLEY, AND UNANIMOUSLY CARRIED

(Absent: Camey, Craycraft, Loveridge, and Perry), THEBOARD ADOPTED RESOLUTION NO. 04-5, AMENDING

RULE 1132 AND CERTIFYING THE EXEMPTION FROM

CEQA REQUIREMENTS, AS RECOMMENDED BYSTAFF, WITH THE FOLLOWING MODIFICATIONS TO

THE RESOLUTION AND RULE:

Add to the Resolution as the second to the last paragraph:

“BE IT FURTHER RESOLVED. that the AQMD

Governing Board directs staff to conduct testing of

eauirnent used in non-atomized application of aelcoats to

establish a better range of operating parameters for the
of operating barameters to ensure facility compliance.

Amend subparagraph (d)(1) as follows.

Any combination of facility-wide measures at a

composite manufacturing facility that reduces VOC emissions by at least 65 percent effectWe July 1, 2004, from what would be emitted based on other

app!io3blo ule fi requirements in effect as of

January 19, 2001, usage factors arid aooroved

emission factors, demonstrated by use of the following eauation:

vi

- —!1 —

P’rceni VOC Redtictiou -s

where.

U1 the aooroved emission factor for the F, resin

based on the allowable monomer content of Rule

1162 as ofJanuary 19.2001, and the octualallowable

method at resin/fiberglass application, and any associated vapor suoaressants and deuree of roll-out

and covered-cure used as ofJanuary 19,2001.

lJj = the approved emission factor for the fh ael coat

based on the allowable monomer content of Rule

1162 as ofJanuary 19,2001. and the avlua!allowable

method of gel coat aaplication and-degree of rail cut andiiovcrd cure used as ofJanuary 19.2001.

= the approved emission factor for the & resin

based on the actual monomer content and the actual

method of resin/fiberalass aoolication and any associated vaoor suppressants and decree of roll-out

and covered-cure currently used.
results scareved by the Executive Officer that

demonstrate comaflance with the emission

factors in Attachment A aotuel mothed uf eel goat

aIJclisstior? and doeroc cf rail cut and eworod sure

or each eel coat -ourrcntlL’ uced for each cel coat

currently used.

11= usage factor. based on the fraction of the 1” resin

used to the total facility usaae of all resins and ael

coats durina the twelve-month enod prior to January

19. 2001. as a monthly average.

= usage factor, based on the fraction of thefi ael

coat used to the total facility usage of all resins and

oel coats during the twelve-month period pripr to

January 19.2001. as a monthly averaae.

= usaoe factor, based on the fraction of the km resin

used to the total facility usaae of all resins and aol

coats during the latest twelve-month neriod.

calculated as a monthly avera.

= usage factor. based on the fraction of the P resin

used to the total facility usaae of all resins and aol

coats during the latest twelve-month period.

calculated as a monthly average.In addition. eEffective January 1, 2002, the

composite manufacturing facility shall comply with all

of the following...”

36 Annual RECLAIM Audit Report for 2002 Compliance Year

AGENDA ITEM NO. 36 WAS CONTINUED TO THE

APRIL 2, 2004 BOARD MEETING, AS RECOMMENDED

BY STAFF.
item, the public hearing was closed.

MS. VERDUGO-PERALTA MOVED TO ADOPT

RESOLUTION NO. 04-6, APPROVING THE TECHNOLOGY

ADVANCEMENT OFFICE CLEAN FUELS PROGRAMANNUAL REPORT FOR 2003 AND ADOPTING THE CLEAN

FUELS PROGRAM PLAN FOR 2004, AS RECOMMENDED

BY STAFF, WITH THE FOLLOWING MODIFICATION

Staff directed to report back to the Board on the past,

present, and future renewable projects initiated under

the Clean Fuels Program.

THE MOTION WAS SECONDED BY MS. LaPISTO-KIRTLEY,

AND UNANIMOUSLY CARRIED (Absent: Craycraft,

Loveridge, and Perry).

(Mr. Antonovich left at 11:30 a.m,

OThER BUSINESS

38. Approve Expenditure of Clean Fuel Funds for Testing Gasoline-Hybrid Transit

Buses and Retrofits of Oceangoing Vessels

MS. CARNEY MOVED APPROVAL OF AGENDA ITEM

NO. 38. AS RECOMMENDED BY STAFF, WITH THEFOLLOWING AMENDMENT:

To include a provision to engage in a co-funded study

in conjunction with CARB.

THE MOTION WAS SECONDED BY DR. WILSON, AND

UNANIMOUSLY CARRIED (Absent: Antonovich, Craycraft,Loveridge, and Perry).

PUBLIC COMMENT PERIOD - (Public Comment on Non-Agenda items, Pursuant to

Government Code Section 54954.3)

There was no public comment on non-agenda items.
of the State of California ex rel SCAQMD v. BP West Coast Products, LLC, et al., LosAngeles Superior Court Case No. BC291876; Communities for a Better Environment

and Our Children’s Earth v. SCAQMD, U.S. District Court Case No. 03-CV-6985; and

United States Department of Transportation, at al. v. Public Citizen, at al, United States

Supreme Court Case No. 03-358.ADJOURNMENT

Following closed session, District Counsel Barbara Baird announced that a report

of actions taken by the Board in closed session would be filed with the Clerk of the

Boards, and the meeting was adjourned.

• The foregoing is a true statement of the proceedings held by the South Coast Air

Quality Management District Board on March 5, 2004.

Date Minutes Approved:

I I”

1’1_iLi: Qr. William A Burke, Chairman

Respectfully Submitted,ROSE JOAREZ

Senior Deputy Clerk

ACRONYMS

AQIP - Air Quality Investment Program

AQMP Air Quality Management Plan

ARB/CARB — California Air Resources Board

Cal/EPA —California Environmental Protection AgencyGARB — California Air Resources BoardCNG Compressed Natural Gas

EPA — Environmental Protection Agency

FY - Fiscal YearMATES — Multiple Air Toxics Exposure Study

MOU c Memorandum of Understanding

PAR - Proposed Amended Rule

PAMS - Photochemical Assessment Monitoring StationsPAR - Proposed Amended RulePM10 — Particulate Matter 10 microns

PM25’=Particulate Matter 2,5 mIcronsPPM - Parts per million

PR - Proposed Rule

RECLAIM - Regional Clean Air Incentives Market

RFP - Request for Proposals

TOC - Toxic Air Contaminant