NITED STATES ENVIRONMENTAL I'ROTECTION AGENCY

REGION 8

1595 Wynkoop Street

DENVER, CO 80202-1129

Phone 800-227-8917

http;//www.epa.gov/region08

MAY 16 2012

Rd': 8P-!\R

CERTIFIED MAIl. -RETURN RECEIPT REQUESTED & ELECTRONIC MAIl.

Curtis Rice

Sf. Environmental Specialist

EOG Resources, Inc.

600 17~ Street, Suite 1000

Denver, Colorado 80202

RE: Request for Infonnation Pertaining to Emissions

Control Equipment at Oil and Gas Production Fal:ilili\"'~ on

the Fon l3e.rthold Indian Reservation

Dear Mr. Rice.

As you know, the Environmental Protection Agency (EPA) is expediting the development of a

Reservation-specific Federal Implementation Plan (FIP) to establish federally enfofceable requirements

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

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

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

gas wel1 production facilities to reduce VOCs released during the extraction and storage of h) drocarbon

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

As part of our elTort to de\elop federally enforceable requirements under the FIP for oil and ga~

production lucilities. the EPA is evaluating VOC emission control technologies employed b) operators

on the FBIR. The agency is requesting infommtion that wil1 allow us to determine the associated cost

impacts of the proposed emission control requirements.

This information request pertains to EOG Resources's (EOO's) operations on the FBIR. Please submit

the information requested below for EOG's oil and gas exploration and production facilities located on

the FBIR:

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

oil and gas exploration and production lacility on the FBIR.

Pll'usc pro\ idt: the ll\crage cost incurred on an annual basis for cilch of tht' 10110\\ ing t~ pe~ of

I,;ontrol equipmcnt:
a. A pit Flare capable of achieving 90% VOC destruction efficiency;

b. A utility flare that is manufacturer certified for 98% VOC destruction efficiency or compliant

with the requirements for such flares at 40 CFR 60.18(b);

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

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

continuous recording device. malfunction alarm. and remote notification system to ensure the

continued presence of a pilot flame during operation:

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

malfunction alarm. and remote notification system to ensure the continued presence of a pilol

name: and

f. A vapor recovery system (VRU) for capture and recovery ofstorage tank gases.

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

through 2(1). The average annual cost incurred should include, but is not limited to, the following

list of cost elements:

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

for the primar) control device. auxiliary equipment and instrumentation. piping. performance

testing. associatcd utilities. engineering and s) stem design. freight. sitc preparation.

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

b. The operation and maintenance (O&M) cost (equipment, pilot fuel. etc.):

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

monitoringlrecordkeepinglreporting requirements and O&M activities; and

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

technology.

Cost elements for each typc of control equipment should not overlap to avoid duplicative cost from

accumulating.

4. For each piece of cquipmcnt identificd in 2(a) through 2(f). please provide the expected Ii fe for

e8l.:h componellt. Any costs associated with maintenance O\er tht: lire or the unit should be

annualized and included as part or the Hnnual O&M costs reponed.

5. Please provide the average cost associated with the sale ofrecoverable product from a VRU.

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

this information be provided to the EPA within 14 calendar days of receipt as indicated by the earlier of

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

your response to Eric Wortman at \..ortman.erie@epa.gov. - \\'c requcst that a dul) authorized officer or agent of EOG certify as true. accurate. and compietc the

rt:sponsc to this information by signing the enclosed Statement ofCertification (Attachment A) and

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

make such representations on behalf ofEOG.

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

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

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

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

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

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

It is the EPA's understanding that the average emission control device cost data for all ofEOG's

facilities on the FBIR will likely not be entitled to confidential treatment as opposed to specific cost data

for each facility. If you do claim confidentiality. we request that you submit that portion of the response

(only that specific portion for which you are claiming conlidentialtreatmcnt) separatel)' from all other

inlormation.

Also enclosed with this Rl"quest lor Information is a Small Rusiness Regul<ltor) Enforc~l11ent and

Fairness Act (SBREFA) infonnation sheer (sec Attachm~nt C).

The requirements of this letter are not subject to the Paperwork Reduction Act of 1980. 44 U.S.C. §3501

el seq.

If the information requested in this letter has previously been submitted to the EPA. please let us kno\\.

We appreciate your cooperation in this mattcr. If you have any questions please contact Eric Wortman.

ofmy stalT. at 303-312-6649.

Sincerely.

~2:6 Air Program

Enclosures

\.:'(,:: Da\ ill lung. Di\ ision Em ironl11l'nlal Manager. EO(j !h,'SOUfCl'S. Inc.

3

@primed on Recych-d }'oper
Attachmenl A

STATEMENT OF CERTIFICATION

I certify under penalty of law that I have personally examined and am familiar with the information

submitted in this document and all anachments and that. based on my inquiry of those individuals

immediately responsible for obtaining information. I believe that the information is true. accurate, and

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

possibility affine or imprisonment.

--

Signature

Title

Date
Attachment B

('onfidl'nti'll HU:!liness lnfonllation (CBI)

Assertion and Subst~'"tialion Requirements

I. Assl.:rlion Requircmcnts

You may assen a business confidentiality claim covering all or pan ofthc information requested in the

attached letter, as provided in 40 C.F.R. §2.203(b). If ponions of a document have CBI claims, then

please provide a redacted version that would remove any CBI infonnation. To make a confidentiality

claim, submit the requested infonnation and indicate that you are making a claim of confidentiality. Any

document over which you make a claim of confidentiality should be marked by placing on or attaching

to the infonnation, at the time it is submitted to U.S. EPA, a cover sheet. stamped or typed legend. or

other suitable form of notice employing language such as "trade secret" or "proprietary" or "comp<Hl)

contidl.:lHial" and a datl' irany when the information should no longer be treatcd as confidential.

Inl"ornHHion covered by such a claim will be disclosed by thc United States Environmental Protcl:tion

Agency (U.S. EPA) only to the extent permitted and by means ofthe procedures set fonh by Sel:tion

I 14(c) oCthe Clean Air Act (the Act). and 40 C.F.R. Pan 2. Allegedly confidential ponions ofOIhcm ise

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

confidentiality claim with your response to the attached letter as a waiver ofthat claim. and the

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

Please segregate personnel, medical and similar files from your responses and include that information

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

to thL' general puhlic may L'onstitutl: un invasion of privacy.

2. Sub!>tantiation Rcquir('m~nts

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

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

measures to protect the confidentiality of the information and that you intend to continue to do so; and

that the information is not and has not been reasonably obtainable by legitimate means without your

consent.

As explained above, if you assen a CBI claim in responding to the attached lener. please specify which

ponions of the infonnalion you consider confidential. You must be specific by page, p~lragntph.l,nd

:!lentenl'e \\ hen idelltif) ing Ihe information subject 10 your claim. Any infomlalion not spcL'ilicall~

identilil:c1 a:, subject 10 conlidenlialit) claim rna) be disclosed 10 the public and a requt:stor \\ithollt

further noticL' 10 )Oll. For each item or class of infonnation Ihat )OU idenlil) as being Sllbjl:l:1 to CUI.

please answer the following questions. giving as much delail as possible:

a. For what period oftimc do you request that thc inlormation be maintained as coniideillial, e.g..

until a certain dale, until the occurrence of a specified event, or pennancllIly? If the occurrence

of a specific event will create the need for confidentiality, please specify lhal event.

b. Infonnation submitted to U.S. EPA becomes stale over time. Wh) should Ihe infonnation )OU

claim as confidential be protected for the time period specified in ) our ans\\er 10 question I?

c. What measures have yOll laken to protect the inlormation claimed as confidential? Have yOll

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

be considered confidential?

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

available databases. promotional publicalions. annual reports. or articles? Is there any means by

\\hich a mcmber of the public could obtain access to the information? Is the information ofa

kind that you would customarily not release to the public?

e. lIas any governmental body made a detennination as to the confidentiality of the information? If

so. please attach a copy of the detemlination.

f. For each category of information claimed as confidential, explain with specificity why release of

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

spccific natLlre of those harmful effects. why they should be viewed as substantial. and the causal

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

of lhis information to your detriment?

g. Do you assert that the information is submitted on a voluntary or a mandatory basis? Please

explain the reason for your assertion. If you assert that the information is volunlarily submitlcd

infonnation, explain whether and why disclosure ofthe infonnation would tend to lessen the

availability to U.S. EPA ofsimilar information in the future.

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

information you claim to be CBI is not emission or emuent data.)

Please notc that emission data, provided under Section 114 of the Act. 42 U.s.c. 97414. is not entitled

to conlidcntial treatment under 40 C.F.R. Part 2. "Emission dala" means. with refercnce to any source of

emission of any substance into the air.

Information nccessary to determine the identity, amount, frcqucncy, concentration. or other

characteristics (to the extent related to air quality) orany emission which has been emitted by the source

(or of any pollutant resulting from any emission by the source), or any combination of the foregoing;

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

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

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

such purposes, a description of the manner and rate of operation of the source): and

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

idenlify the source and to distinguish it from Olher sources (including, to the extent ncccssary lor

such purposes, a description of the device, installation, or operation constituting the source). 40

C.F.R. §§ 2.30 l(a)(2)(i)(A), (8) and (C).

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

unit or reclaimed from a unit.

2
You bear the burden ofsubstantiating your confidentiality claim. Conclusory allegalions will be gi\ en

little or no weight in the dctennination. In substllnliating )our CBI claim(s). U.S. EPA requires thai ~Oll

to brad,",t all tl.:\1 so claimed and mar"- it "eBI". Inlorm<ltion so dl:signalcd will be discloSL'J b~ l.S

I P1\ onl~ (0 thl' l'-.;:h?nt a1l0\\ t..'d b). and b~ ffit..'''lI1S of tht' procl'durt..'s sct forth in. ..JU Ct- .R. Part ::!,

Subpart il. If yOll t~lilto claim Ihe inlonnalion as conlidcntial, it I1Ul) be made <.1\ <.Iilable 10 (he publil:

without further notice to you.

3
SEPA

United SbttH

Environmental Protecllon

Agency

Attachment C

Office of Enforeemenl and Compliance Aasurance (2201A)

EPA 300-F-03-001 May 2003

, u. S. EPA Small Business Resources

I

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

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

environmental laws. These resources can help you understand yourenvironmental obligations, improve

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

innovative technologies.

Hotllnes, Helpllnes and

Clearlnghou58s

EPA soonsors aporoxlmaloly 891rce hotIines and clearing·

houses thaI prnvlde convenlenl assIStance regardWlQ

6fWlronrnerMl requirements

Ttle National Environmental Compliance Assistance

Clearinghouse provides quICk access 10 comphllrlOO

assistance tools, contacts. and planned activities Irom the

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

providers: htlp:ltwww.epa.gov/clearinghouse

Pollullon Prevention Clearinghouse

htlp:llwww.epa.gov/opptintrl1ibrarylppicindex.htm

EPA's Small Business Ombudsman Hotline can

prOVide a Hst 01 all the hot lines and assist In determining the hOltlne besl meeting your needs:

(800) 368-5888

Emergency Planning end Community Righl-To-Know Act

(900) 424-9346

National Response center (to report 011 and hazardous

substance spills)

(800)424-8002

ToXles SUbstances and ASbeStosln'onnatlon

(202)554-1404

sale Drinking Water

(800)426-4791

StrBtospheric Ozone and Refrigerants lnformaUon

(BOO) 296-1996

Clean Air Technology Center

(910)541 {)BOO

Wetlands 11elpllne

(800)832,7628

EPA Websltes

EPAhaS severallnt&melsites lhat provide uselul compliance assislance informatIOn and matenal$ for small

bUSInesses. II you don't have access 10 the Inlernet3l

your buSiness many publIC libranes p'ovide access to the

Internet al minimal or no COSI

EPA's Home Plge

htl+J:/Iwww.epa.gov

Small Business Assistance Program

htlp:/Iwww.epa.govlItnIsoop

Olfice 0' Entorcement and Compliance Assurance

hltpilwww.epa.gov/compllanoe

Compliance Asslstanee Home Page

hnp:llwww.epa.govloompl~nc:elassistance

Ollice 01 Regulatory Enlorcement

hnp:llwww.epa.gov/c:on..4ltianoe/cMlIindell:.html

Office 01 Site Reme<llatlon Enforcemen1

http://w.Hw.epa.gov/compiianceicleanup

Innovative Programs 'or Environmental Performance

htlp:llwww.epa.gov/parlners

Small Business Ombudsman

www.sba.govtombudsman

OffIce of Enforcement and Compliance ASS\.Jrance. http://wwwepa gov/compliance

.... ~_~'~~.'~_~~J''''''~' ¥ __.....-e-Hl • _
u.s. EPA SMALL BUSINESS RESOURCES

Compliance Assistance Centers

In partnership with industry, universities. and othertederal

and state agencies. EPAhas established national Compll.

ance Assistance CenleJS thai provide Intemet and "taxba

aSSIstance SCrvlCeS for seyeral industnes with many small

buSinesseS The lOwIng Comp~ance AsSlstance CcnlCrs

can be accessed through the CefTle(s gateway al hr.pJI

wwwaSSlstancecenlers,netorbycanlOQmephonenumbers

belOw and atlhetr respective webSI1QS

Metal Finishing

(1-800-AT·NMFRC or www.nmIrc.org)

Printing

(l-888-USPNEAC rx www.pneac.org)

Automotl.... Service and Repair

(l-86&GAN-llNK or WWN.ccar-green~nk.org)

Agriculture

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

PrInted WIring Board Manufacturing

(1-734-995-491101WWWpwbrC.org)

The Chemicallndu.try

(1.80().672.0048 or www.chemalll8nce.org)

The Transportation Industry

(1·888-459-0656 orWWW.lransource.org)

The Paints and Coatings Center

(1-800-286-6372 orwww.paintcenter.org)

Three new centers are under development for Ihe auto

salvage sector, the construction industry, and U.S. Me.ican border wasta Issues

State Agencies

Many state agencies ha...e eSlablished compliance assistance programs that prO"'lde on·site and other types of

assistance. Conlact your local state en...ironmental agency

lor more Inlormation. For assistance in reachIng state

agencies, call EPA's Small Business Ombudsman at

(800)·368-5888 or ...isit the Small Business En...ironmental

Homepage at hnpJIwww.smalibiz-enviroweb.orgIstate.html.

Compliance Incentives

EPAprovides incentives lor environmental compliance. By

paniclpating in compliance assistance programs or

vOluntanly disclosing and promptly correctmg vlola11Ons,

buslflesses may be eligIble IOf penalty wai...ers or reductions EPA has twO po'ICies thaI potentially apply to small

businesses TheAudIt PolICY (http:/wwwepa.go... ·compl

anceilrlCenllVeSlaUd·llng) ana Ine Small BUSiness Policy

(hnpJlWWWepa,gcwlcompllance.lncentveSismaUbusllless)

These do nol apply il an enforcement action has already

been initiated.

Commenting on Federal Enforcement

Actions and Compliance Activities

The Small Buslf1ess Regu aIOf)' Enlorcement Fairness ACt

ISBREFAj estab,jshecl an omDudsman \"SBAEFAOmbuds·

man-) and 10 ReglOl'lal Fallness Boards te receIVe comments

trom small buSllleSSeS about ledE!ra! agency cnforcemefll

aetlOllS The SBAEFAOmbudsman ......gannuaJ/y rate each

agency's responSIVeness to small businesses. II you be5eve

lhat you la" within !he SmaliBuslness AdministratIOn'S

tJeflfVtIOn of a smaJI buSiness (based on your Nof'lh American

IodusttyCl8sslfication System (NAlCS) designation. nl.mber

01 employees or annual recetp(S, defined at 13 C.F.R.

121.201; in most cases, !his means a buslness wrttlSOO or

fewer employees). and wish to corrwnent onledera! enforcement and compliance aetivlties. call the SBAEFA

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

734-324'7).

Every small bUSiness mat Is lhe subject 01 an enlorce~nl

or compliance aCtion IS entitled to comment on the

Agency's aC1lons wlthOul fear of retaliatIOn EPA

employees are prohibIted Irom USIng enforcement or any

other means 01 retaliation aga,nst any member of the

regulated communl1y because the regulated community

pre"'lously commented on its actIVities

Your Duty to Comply

If you recei...e compliance assistance or submit comments

to the S8REFAOmbudsman or Regional Fairness Boards,

you 51111 have the duty to comply With the law. Including

prO"'ldlng timely responses to EPA Information requests

adm,nlstrallVe or cl... 11 complaints, other enforcement

aClionsor commUnications The assistance Inlormatlon

and comment processes do not give you any new rlghls or

defenses in any enforcement action. These processes

also do nol affect EPA's obligation to protect public health

or the environment under any of the environmental statutes

it enforces, indudlng the right to take emergency remedial

or emergency response actions when appropriate. Those

decisions will be based on the tacts in each situation. The

SBAEFA Ombudsman and Fairness Boards do not

participate in resolVIng EPA's enforcement actions. Also,

remember that to preserve your nghts, you need to comply

Wltn all rules goverl1lf'lQ the enforcement process

EPA 1$ dlul!m/natfng this Informatfon to you

without making a dettNmination that your business

or organlzetlon Is II small business as del/ned by

Section 222 of the Small Business RegullJtory

Enforcement Flllrne5S Act (SBREFA) or related

provisions.