Page 1 of 4 * * * PUBLIC NOTICE * * *

McELMO CREEK UNIT OIL PRODUCTION FACILITY

ANNOUNCEMENT OF FINAL PERMIT DECISION OF A CLEAN AIR ACT PREVENTION OF SIGNIFICANT DETERIORATION PERMIT THAT REGULATES THE EMISSION OF AIR POLLUTANTS

PSD PERMIT NO. NU 05

- 01

F INAL A GENCY A CTION : On September 30, 2016 , t he United States Environmental Protection Agency (EPA) Region 9 issued its final permit decision to amend the Prevention of Significant Deterioration (PSD) permit for the McElmo Creek Unit Oil Production Facility (MCU Facility), an existing oil and gas production operation

. The MCU Facility is owned and operated by the Resolute Natural Resources Company (Reso lute)

. The mailing address for the facility is P.O. Box 100130, Aneth, UT 84510. The facility is located in Section 31, Township 40 South, Range 25 East within the Four Corners Area on the Navajo Nation Indian Reservation near the town of Aneth, San Juan County, Utah.

The EPA amended the PSD permit, in accordance with PSD regulations (40 CFR 52.21), to incorporate pollution limits, terms, and conditions for the already existing Main Flare at the MCU Facility pursuant to a federal Consent Decree ( United States v. Mobil Exploration and Producing U.S. Inc. , Case No. 2:05

– CV

– 319, filed June 8, 2005). These pollution limits, terms , and conditions include Best Available Control Technology (BACT) emission limitations for nitrogen oxides, carbon monoxide, sulf ur dioxide, and volatile organic compounds. Additionally, the EPA amended the PSD permit to remove and update other applicable requirements in the MCU Facility’s PSD permit due to equipment that has been shut down and removed from the site. Air pollution emissions as a result of this permit action would not cause or contribute to violations of any National Ambient Air Quality Standards (NAAQS) or any applicable PSD increments. T his permit action does not authorize any new construction or modification of existing equipment at the MCU Facility

.

P ROJECT D ESCRIPTION : On December 5, 2005, Mobil Exploration & Producing U.S., Inc. (later ExxonMobil Production Company) submitted a PSD permit application to the EPA Region 9 pursuant to a federal Consent Decree for the already existing Main Flare at the MCU Facility, an existing oil and gas production operation located within the Four Corners Area on the Navajo Nation Indian Reservation near the city of Aneth, San Juan County, Utah. ( See United States v. Mobil Exploration and Producing U.S. Inc.

, Case No. 2:05

– CV

– 319, filed June 8, 2005)

. Mobil provided supplemental information in 2006 and 2007. Resolute acquired ownership of the MCU Facility in 2006, and submit ted a revised PSD application dated April 2008 for the Main Flare , as well as several supplemen ts to the PSD application submitted to the EPA thereafter.

The PSD application was submitted to meet the requirements of the federal Consent Decree, which included analyzing the best available control technology (BACT) for the Main Flare. Additionally, the applicant requested other updates to the existing PSD permit associated with equipment that had been shut down and removed from the MCU Facility site. The EPA issuedPage 2 of 4 the existing PSD permit on February 2, 1987, and amended the PSD permit on October 27, 1987, March 21, 1989, and April 19, 1991.

On October 15, 2014, the EPA provi ded notice of and requested public comment on a proposal
to amend the PSD permit, and also announced a public information meeting and public hearing for the proposed PSD permit to take place on November 20, 2014

. Public notices regarding the public commen t period were published in the Navajo Times
, Farmington Daily Times

, Cortez Journal , and San Juan Record on October 15

- 17, 2014

. We also announced the public comment period on the EPA Region 9 website. We distributed the public notices to the necessary p arties in accordance with 40 CFR part 124, including notices sent by mail and email on October 15, 2014. We notified affected government agencies, organizations, and public members for whom contact information was obtained through a number of different me thods, including requests made directly to the EPA Region 9 through our website, contacts provided by the Navajo Nation Environmental Protection Agency, and other parties known to the EPA Region 9 that may have an interest in this action based on interest in previous actions within the Navajo Nation.

The administrative record for the proposed PSD permit amendment was made available at the EPA Region 9’s O ffice. The proposed PSD permit amendment, Ambient Air Quality Impact Report and Fact Sheet (AAQIR/Fact Sheet), and other supporting documents in the administrative record were available through the EPA Region 9’s website. We also made the key documents available at the following public libraries and Navajo Nation chapter houses: Monticello Library, Monticello, UT; Blanding Library, Blanding, UT; Montezuma Creek Library, Montezuma Creek, UT; Bluff Library, Bluff, UT; La Sal Library, La Sal, UT; Aneth Chapter House

, Aneth, UT; Red Mesa Chapter House near Montezuma Creek, UT; Teec Nos Pos Chapter House, Teec Nos Pos, AZ; Mexican Water Chapter House, Bluff, AZ; Sweetwater Chapter House, Sweetwater, AZ; and Dennehotso Chapter, D ennehotso, AZ.

We accepted public commen ts on the proposed PSD permit amendment from October 15, 2014 until November 20, 2014. On November 20, 2014, the EPA held a formal public hearing at the Aneth Chapter House , located in Aneth, UT

, to receive oral and written comments on the proposed PSD pe rmit amendment. A court reporter was present at the hearing, as well as a Diné language interpreter for oral translation. Prior to the public hearing, the EPA held a public information meeting to provide interested parties with additional information and an opportunity for informal discussion on the proposed PSD permit amendment.

The EPA held a separate public comment period from September 30, 2015

, through November 3, 2015

, for the consultation process under the National Historic Preservation Act (NHPA) to accept public comments on potential impacts to historic properties within the area of potential effects (APE). The EPA d etermined that issuance of the amended PSD permit for the Main Flare will have no effect upon historic properties within the APE which consisted of the area within a 2 k ilometers (1.2 miles) radius around the Main Flare. Cultural resources identified within the APE were f ifty (50) previously recorded arc haeological sites, thirteen (13) historic structures, and nine (9) in

- use sites. None of these sites were listed in the National Register of Historic Places maintained by the Department of the Interior. The EPA determined that such properties would not b e impact ed by our undertaking (i.e., issuance of the amended PSD p ermit for the Main Flare ). EPA did not receive any objections from the State Historic Preservation OfficersPage 3 of 4 for Utah, Arizona, New Mexico, and Colorado, as well as the Tribal Historic Prese rvation Officer for the Navajo Nation Indian Reservation regarding the EPA’s determination. Additionally, the EPA did not receive any comments from the public regarding the NHPA consultation.

F OR A DDITIONAL I NFORMATION : Key portions of the Administrative Record for this decision (including the final PSD permit, all public comments, the EPA’s responses to the public comments, and additional supporting information) are available through a link at our website, http://www.epa.gov/caa

- permitting/prevention

- significant

- deterioration

- psd

- permits

- issued

region

- 9

, or at http:// www.regulations.gov (Docket ID # EPA

- R09

- OAR

- 2014

- 0785 ).

Hard copies of the final permit and the EPA’s responses to the public comments, and the Administrative Record for this action, may also be viewed in person, Monday through Friday from 9:00 AM to 4:00 PM, at the EPA Region 9 addres s below. Due to building security procedures, please call Shaheerah Kelly at (415) 947

- 4156 to arrange a visit at least 72 hours in advance. Hard copies of the final permit and the EPA’s responses to the public comments are available upon request at the following:

E

- mail: R9airpermits@epa.gov

U.S. Mail: Shaheerah Kelly (AIR

- 3) U.S. EPA Region 9 75 Hawthorne Street San Francisco, CA 94105

- 3901

Phone: (415) 9 47

- 4156

The final PSD permit amendment and the accompanying AAQIR/Fact Sheet are available for review and inspection at the Navajo Nation Environmental Protection Agency, Fort Defiance, AZ, ( 928) 871

- 7692 and the following Navajo Nation chapter house locations:

• Aneth Chapter House, Aneth, UT, (435) 651

- 3525

• Red Mesa Chapte r House
, Montezuma Creek, UT, (928) 656

- 3679

• Teec Nos Pos Chapter House, Teec Nos Pos, AZ, (928) 656

- 3662

• Mexican Water Chapter House, Bluff, AZ, (928) 429

- 0986

• Sweetwater Chapter House, Sweetwater, A Z, ( 928) 429

- 0 977

• Dennehotso Chapter, Dennehotso, AZ, (928) 658

- 3300

The final PSD permit amendment and the accompanying AAQIR/Fact Sheet are also available for review and inspection at Receptionist Desk of the following libraries:

• Monticello Library, Monticello, UT

, (435) 587

- 2281

• Blanding Library, Blanding, UT, (435) 678

- 2335

• Montezuma Creek Library, Montezuma Creek, UT, ( 435) 651

- 3309

• Bluff Library, Bluff, UT, ( 435) 672

- 9996

• La Sal Library, La Sal, UT, (435) 686

- 9936Page 4 of 4 The contact information above may also be used to request copies of other portions of the administrative record for this action.

Please bring the foregoing notice to the attention of all persons who would be interested in this
matter.

*** END OF ANNOUNC EMENT ***

Issued September 30, 2016