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6560.50

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 98

[EPA-HQ-OAR-2011-0417; FRL- XXXX-X]

RIN 2060-AP99

Mandatory Reporting of Greenhouse Gases: Petroleum and 

Natural Gas Systems: Revisions to Best Available Monitoring 

Method Provisions

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed Rule. 

SUMMARY: EPA is proposing to amend certain provisions 

related to best available monitoring methods in regulations 

for Petroleum and Natural Gas Systems of the Greenhouse Gas 

Reporting Rule. Specifically, EPA is proposing to extend 

the time period during which owners and operators of 

covered facilities would be permitted to use best available 

monitoring methods during 2011 without submitting a request 

to the Administrator for approval. In addition, EPA is 

proposing to expand the list of types of emissions sources 

for which owners and operators would not be required to 

submit a request to the Administrator to use best available 

monitoring methods for 2011 and extend the deadline by 

which owners and operators of covered facilities would 

request use of best available monitoring methods for beyond 
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2011. These proposed amendments are in response to a 

request for reconsideration of specific provisions.

DATES: Comments. Comments must be received on or before 

[INSERT THE DATE, 30 DAYS AFTER PUBLICATION OF THIS 

PROPOSED RULE IN THE FEDERAL REGISTER], unless a public 

hearing is held, in which case comments must be received on 

or before [INSERT THE DATE 45 DAYS AFTER PUBLICATION OF 

THIS PROPOSED RULE IN THE FEDERAL REGISTER]. 

Public Hearing. A public hearing will be held if 

requested. To request a hearing, please contact the person 

listed in the following FOR FURTHER INFORMATION CONTACT 

section by [INSERT DATE 7 DAYS AFTER DATE OF PUBLICATION OF 

THIS PROPOSED RULE IN THE FEDERAL REGISTER]. If requested, 

the hearing will be conducted on [INSERT DATE 15 DAYS AFTER 

DATE OF PUBLICATION OF THIS PROPOSED RULE IN THE FEDERAL 

REGISTER], in the Washington, DC area. EPA will provide 

further information about the hearing on its webpage if a 

hearing is requested.

ADDRESS: You may submit your comments, identified by 

docket ID No. EPA-HQ-OAR-2011-0417 by any of the following 

methods:

 Federal eRulemaking Portal: 

http://www.regulations.gov. Follow the online 

instructions for submitting comments.

E-mail: 

GHG_Reporting_Rule_Oil_And_Natural_Gas@epa.gov. 
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Include Docket ID No. EPA-HQ-OAR-2011-0417 in the 

subject line of the message.

 Fax: (202) 566–9744.

 Mail: Environmental Protection Agency, EPA Docket 

Center (EPA/DC), Mailcode 28221T, Attention Docket ID 

No. EPA-HQ-OAR–2011-0147, 1200 Pennsylvania Avenue, 

NW., Washington, DC 20460.

 Hand/Courier Delivery: EPA Docket Center, Public 

Reading Room, EPA West Building, Room 3334, Attention 

Docket ID No. EPA-HQ-OAR–2011-0147, 1301 Constitution 

Avenue, NW., Washington, DC 20004. Such deliveries 

are only accepted during the docket’s normal hours of 

operation, and special arrangements should be made for 

deliveries of boxed information.

Instructions: Direct your comments to Docket ID No. 

EPA-HQ-OAR-2011-0417, Mandatory Reporting of Greenhouse 

Gases: Petroleum and Natural Gas Systems. EPA's policy is 

that all comments received will be included in the public 

docket without change and may be made available online at 

http://www.regulations.gov, including any personal 

information provided, unless the comment includes 

information claimed to be confidential business information 

(CBI) or other information whose disclosure is restricted 

by statute. Do not submit information that you consider to 

be CBI or otherwise protected through 

http://www.regulations.gov or e-mail. The 

http://www.regulations.gov Web site is an “anonymous 

access” system, which means EPA will not know your identity 

or contact information unless you provide it in the body of 

your comment. If you send an e-mail comment directly to 
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EPA without going through http://www.regulations.gov your 

e-mail address will be automatically captured and included 

as part of the comment that is placed in the public docket 

and made available on the Internet. If you submit an 

electronic comment, EPA recommends that you include your 

name and other contact information in the body of your 

comment and with any disk or CD-ROM you submit. If EPA 

cannot read your comment due to technical difficulties and 

cannot contact you for clarification, EPA may not be able 

to consider your comment. Electronic files should avoid 

the use of special characters, any form of encryption, and 

be free of any defects or viruses.

Docket: All documents in the docket are listed in the 

http://www.regulations.gov index. Although listed in the 

index, some information is not publicly available, e.g., 

CBI or other information whose disclosure is restricted by 

statute. Certain other material, such as copyrighted 

material, will be publicly available for viewing at the EPA 

Docket Center. Publicly available docket materials are 

available either electronically in

http://www.regulations.gov or in hard copy at the EPA 

Docket Center, EPA/DC, EPA West Building, Room 3334, 1301 

Constitution Ave., NW., Washington, DC. This Docket 

Facility is open from 8:30 a.m. to 4:30 p.m., Monday 
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through Friday, excluding legal holidays. The telephone 

number for the Public Reading Room is (202) 566-1744, and 

the telephone number for the Air Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Carole Cook, Climate 

Change Division, Office of Atmospheric Programs (MC-6207J), 

Environmental Protection Agency, 1200 Pennsylvania Ave., 

NW., Washington, DC 20460; telephone number: (202) 343-

9263; fax number: (202) 343-2342; e-mail address: 

GHGReportingRule@epa.gov.

Worldwide Web (WWW). In addition to being available 

in the docket, an electronic copy of today's proposal will 

also be available through the WWW. Following the 

Administrator's signature, a copy of this action will be 

posted on EPA's greenhouse gas reporting rule Web site at 

http://www.epa.gov/climatechange/emissions/ghgrulemaking.ht

ml.

Additional information on Submitting Comments. To 

expedite review of your comments by Agency staff, you are 

encouraged to send a separate copy of your comments, in 

addition to the copy you submit to the official docket, to 

Carole Cook, U.S. EPA, Office of Atmospheric Programs, 

Climate Change Division, Mail Code 6207-J, Washington, DC 

20460, telephone (202) 343-9263, e-mail address: 

GHGReportingRule@epa.gov. 
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SUPPLEMENTARY INFORMATION: 

Organization of this document. The information 

presented in this preamble is organized as follows:

I. General Information

A. Does this Action apply to me?

B. Acronyms and Abbreviations

II. Background

III. Proposed Amendments to 40 CFR part 98

IV. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review 

and Executive Order 13563: Improving Regulation and 

Regulatory Review

B. Paperwork Reduction Act

C. Regulatory Flexibility Act

D. Unfunded Mandates Reform Act

E. Executive Order 13132: Federalism

F. Executive Order 13175: Consultation and Coordination 

with Indian Tribal Governments

G. Executive Order 13045: Protection of Children from 

Environmental Health Risks and Safety Risks

H. Executive Order 13211: Actions that Significantly 

Affect Energy Supply, Distribution, or Use

I. National Technology Transfer and Advancement Act

J. Executive Order 12898: Federal Actions to Address 

Environmental Justice in Minority Populations and LowIncome Populations

I. General Information

A. Does this Action apply to me?

These are proposed amendments to optional methods 

under an existing regulation. If finalized, these amended 

regulations could affect owners or operators of petroleum 
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and natural gas systems. Regulated categories and entities 

include those listed in Table 1 of this preamble: 

Table 1. Examples of Affected Entities by Category

Source 

Category NAICS Examples of affected facilities

Petroleum and 

Natural Gas 

Systems

486210 Pipeline transportation of 

natural gas.

221210 Natural gas distribution 

facilities.

211 Extractors of crude petroleum 

and natural gas.

211112 Natural gas liquid extraction 

facilities.

Table 1 of this preamble is not intended to be 

exhaustive, but rather provides a guide for readers 

regarding facilities likely to be affected by this action. 

Although Table 1 of this preamble lists the types of 

facilities of which EPA is aware that could be potentially 

affected by this action, other types of facilities not 

listed in the table could also be affected. To determine 

whether you are affected by this action, you should 

carefully examine the applicability criteria found in 40 

CFR part 98, subpart W or the relevant criteria in the 

sections related to petroleum and natural gas systems. If 

you have questions regarding the applicability of this 

action to a particular facility, consult the person listed 

in the preceding FOR FURTHER INFORMATION CONTACT section. 

B. Acronyms and Abbreviations 
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The following acronyms and abbreviations are used in 

this document. 

API American Petroleum Institute

AXPC American Exploration & Production Council

BAMM best available monitoring methods

CAA Clean Air Act

CBI confidential business information

CEC Chesapeake Energy Corporation

CFR Code of Federal Regulations

EO Executive Order

EPA U.S. Environmental Protection Agency

FR Federal Register

GHG greenhouse gas

IBR incorporation by reference

ICR information collection request

ISO International Organization for Standardization

MRR mandatory GHG reporting rule

OMB Office of Management and Budget

RFA Regulatory Flexibility Act

RIA Regulatory Impact Analysis

SBA Small Business Administration

SBREFA Small Business Regulatory Enforcement and 

Fairness Act

U.S. United States

UMRA Unfunded Mandates Reform Act of 1995

USC United States Code

II. Background 

The EPA published Subpart W: Petroleum and Natural Gas 

Systems of the Greenhouse Gas Reporting Rule on November 

30, 2010, 40 CFR Part 98, subpart W (75 FR 74458)(subpart 

W). Included in the final rule were new provisions that 
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were added in response to comments on the proposal allowing 

owners or operators the option of using best available 

monitoring methods(BAMM) for specified parameters in 40 CFR 

98.233. 

As stated in the preamble to the 2009 final rule (74 

FR 56260), CAA section 114 provides EPA broad authority to 

require the information required to be gathered under 

subpart W. As discussed in the preamble to the initial 

proposed rule (74 FR 16448, April 10, 2009), CAA section 

114(a)(1) authorizes the Administrator to require emissions 

sources, persons subject to the CAA, manufacturers of 

control or process equipment, or persons whom the 

Administrator believes may have necessary information to 

monitor and report emissions and provide such other 

information the Administrator requests for the purposes of 

carrying out any provision of the CAA. For further 

information about EPA’s legal authority, see the preamble 

to the April 2009 (74 FR 16448) proposal and October 2010 

(74 FR 56260) final rules for the Mandatory Reporting of 

Greenhouse Gases.

Following the publication of subpart W in the Federal 

Register, several industry groups requested reconsideration 

of several provisions in the final rule, including the 

provisions for BAMM. In a follow up action, EPA granted 
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reconsideration and extended specific BAMM deadlines in a 

rule that was promulgated on April 25, 2011 (76 FR 22825).

In further response to that request for 

reconsideration of specific BAMM provisions, EPA is seeking 

comment on several proposed amendments to the BAMM 

provisions in this proposal, including extension of the 

time period during which owners and operators of covered 

facilities with emissions sources listed in 40 CFR 

98.234(f)(2), (f)(3), (f)(4), and (f)(5)(iv) would be 

permitted to use BAMM during calendar year 2011 without 

having to request approval from the Administrator. 

Additionally, EPA is seeking comment on the proposed 

amendment to the BAMM provisions beyond 2011 outlined in 

this proposal which includes an initial submission of a 

notice of intent to request use of BAMM beyond 2011 

followed by a submission of a BAMM request consistent with 

40 CFR 98.234(f)(8)(ii) to the Administrator for approval 

to use BAMM beyond 2011.

III. Proposed Amendments to 40 CFR part 98 

Subpart W of the GHG reporting rule includes 

provisions allowing owners and operators of covered 

facilities to use BAMM in lieu of specified data input 

requirements for determining greenhouse gas emissions in 

certain circumstances for specified emissions sources. 
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Methods that constitute BAMM are: supplier data; monitoring 

methods currently used by the facility that do not meet the 

specifications of a relevant subpart; engineering 

calculations; and/or other company records. When using 

BAMM, the owner or operator must use the equations and 

calculation methods set forth in 40 CFR 98.233, but may use 

BAMM to estimate the parameters in the equations as 

specified in the rule. 

EPA carefully evaluated each emissions source outlined 

in subpart W, and the required calculation methodologies 

for determining greenhouse gas emissions from that 

emissions source. Based on this evaluation, EPA has 

identified the specific emission sources for which the use 

of BAMM would be appropriate. Those emission sources are 

categorized into the following four groups. 

Well-related emissions. This group of emissions 

sources includes those well-related data that cannot 

reasonably be measured according to the monitoring and 

QA/QC requirements of subpart W such as well testing, 

venting, and flaring, for example. 

Specified activity data. This group includes those 

activity data that cannot reasonably be obtained according 

to the monitoring and QA/QC requirements specified in 
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subpart W such as cumulative hours of venting, days, or 

times of operation, for example. 

Leak Detection and Measurement. This group includes 

those sources of emissions that require leak detection 

and/or measurement such as the measurement of equipment 

leaks from valves and connectors. 

Unique or Unusual Circumstances. These circumstances 

include emission sources not covered under the previous 

three categories for which the owner or operator of a 

covered facility is facing unique or unusual circumstances, 

such as data collection methods that do not meet safety 

regulations, technical infeasibility such as a compressor 

never having maintenance during the calendar year rendering 

the installation of a port or meter difficult, or legal 

issues rendering them unable to meet the requirements of 

subpart W. 

EPA is proposing the following amendments to subpart 

W: 

 Best available monitoring methods for well-related 

emissions. EPA is proposing to extend the time period 

for use of BAMM without EPA approval, by three months, 

such that owners and operators of facilities with 

emissions sources listed in 40 CFR 98.234(f)(2) would 

not be required to request approval by the 

Administrator to use BAMM between January 1, 2011 and 

December 31, 2011. 

 Best available monitoring methods for specified 

activity data. EPA is proposing to extend the time 
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period for use of BAMM without EPA approval, by three 

months, such that owners and operators of facilities 

with emissions sources listed in 40 CFR 98.234(f)(3) 

would not be required to request approval by the 

Administrator to use BAMM between January 1, 2011 and 

December 31, 2011.

 Best available monitoring methods for leak detection 

and measurement. EPA is proposing to allow owners and 

operators of facilities with emissions sources listed 

in 40 CFR 98.234(f)(4) to use BAMM between January 1, 

2011 and December 31, 2011 without having to request 

approval from the Administrator. 

 Best available monitoring methods for unique or 

unusual circumstances. EPA is proposing to allow 

owners and operators of facilities with emissions 

sources listed in 40 CFR 98.234(f)(5)(iv) to use BAMM 

between January 1, 2011 and December 31, 2011 without 

having to request approval from the Administrator. 

 Best available monitoring methods for use beyond 

December 31, 2011. EPA is proposing to revise the 

introductory sentence in 40 CFR 98.234(f)(8) by 

removing reference to extreme circumstances. In 

addition, EPA is proposing to amend 40 CFR 

98.234(f)(8)(i) such that owners and operators of 

facilities with emissions sources listed in 40 CFR 

98.234(f)(8) may submit a notice of intent to submit a 

request for BAMM beyond 2011 to EPA by December 31, 

2011. Facilities that submit a BAMM request 

consistent with 40 CFR 98.234(f)(8)(ii) by March 30, 

2012 who have also submitted a notice of intent by 

December 31, 2011 would automatically be granted BAMM 

through June 30, 2012. Facilities which submit such a 

notice of intent but do not follow up with a BAMM 

request by March 30, 2012 would not be allowed to use 

BAMM after December 31, 2011.

Following promulgation of subpart W on November 30, 

2010, industry groups sought reconsideration of several 

provisions in the final rule, including the provisions 

allowing owners and operators of facilities with emissions 
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sources listed in 40 CFR 98.234(f)(2), (f)(3),(f)(4), and 

(f)(5)(iv) to use BAMM. 

By letter dated January 31, 2011, Chesapeake Energy 

Corporation (CEC) and the American Exploration & Production 

Council (AXPC) stated that “BAMM should be allowed without 

EPA approval for entities reporting under subpart W for the 

entire first reporting year 2011 and for all data necessary 

to conduct the calculations required under the rule.” 

Also, by letter dated January 31, 2011, the American 

Petroleum Institute (API) stated that “[u]pon 

reconsideration, API requests that EPA provide pre-approval 

for (1) leak detection and measurement...” and also “[u]pon 

reconsideration, API requests that EPA allow BAMM to be 

used for the onshore production sector and activity data 

categories through December 31, 2011.” 

EPA met with several trade associations and companies 

that own or operate facilities subject to subpart W. 

During those meetings, several companies requested an 

extension of the BAMM provisions in order to complete 

initial equipment inventories and to secure internal 

resources to report data to EPA in accordance with the rule 

requirements. In particular, companies stated that a large 

number of data points that are necessary to determine 

greenhouse gas emissions using the calculation 
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methodologies outlined in subpart W are not currently 

tracked by internal company data systems and may not be 

managed by the company in such a way that would enable 

those data to be readily reported to EPA in a timely 

manner. 

By letter dated May 3, 2011 API submitted information 

to EPA regarding the number of sources for which 

information must be collected. The letter states that 

“[g]iven the extraordinary scope of Subpart W – both the 

hundreds of thousands of discrete sites and sources whose 

emissions must be quantified and reported and their broad 

geographic dispersion – compliance with the monitoring and 

reporting deadlines and the deadlines to apply for approval 

to extend the use of BAMM are not only unrealistic but 

infeasible.” The letter further states that “[t]he Onshore 

Petroleum and Natural Gas Production segment of the 

Petroleum and Natural Gas Systems source category (Onshore 

Production) alone covers hundreds of thousands [emphasis in 

original] of well sites along with tens of thousands of 

sites “associated with a well pad” (which is not defined or 

discussed in the rule). These sites are widely dispersed 

across hundreds of thousands of square miles in all of the 

oil and gas producing basins across the United States. The 

seven additional industry segments subject to subpart W 
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extend this coverage to tens of thousands of additional 

offshore platforms, onshore sites and facilities, and 

natural gas distribution sites. Within each of these 

industry segments, subpart W mandates that reporters 

monitor and determine emissions from multiple source types; 

for example, the Onshore Production portion of the rule 

covers 22 distinct source types. Each of these source 

types requires the collection of a broad variety of 

information, data points, analyses, models, and/or 

measurements to determine emissions and submit emission 

reports.”

The letter also states that “[t]he problems created by 

the large number of facilities that are subject to the rule 

are exacerbated by their wide geographic distribution. 

Unlike a chemical plant or a refinery, oil and natural gas 

operations are spread out over huge geographic areas and 

are typically not staffed at all times. Often there is no 

electricity, difficult access, and little existing 

infrastructure or communications ability at these disparate 

locations. Given this geographic dispersion of oil and 

natural gas facilities, installation of any additional 

equipment, monitors, and/or data acquisition and 

transmitting systems will be very challenging. Even 

traveling to each of these sites requires significant time 
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and effort. When this is combined with the specific 

monitoring methods demanded by the rule, reporters cannot 

realistically meet the rule’s BAMM extension application 

deadlines or have the full suite of required monitoring and 

recordkeeping systems in place by September 30.” 

For example, companies that own or operate facilities 

subject to subpart W, such as API members, and as discussed 

in API’s May 3, 2011 correspondence, the data collection 

systems that would be necessary to collect and process the 

numerous inputs required for subpart W are very complex. 

Because of the extensive, inter-related, complex nature of 

these data collection systems, many companies described the 

need for automatic BAMM for emissions sources that fall 

under 40 CFR 98.234(f)(5)(iv). For some sources, it would 

be nearly impossible to gauge in advance the exact nature 

of the BAMM that would be needed; for example, if one 

specific tank pressure measurement was not available and an 

alternate method was required to be used, a company or 

facility may not have had advance knowledge of that need 

and may not have prepared a specific BAMM request for that 

alternate measurement by the BAMM application deadline. 

Because EPA did not include specific BAMM provisions 

in the proposed rule for subpart W (75 FR 18609), companies 

did not have the opportunity to comment on BAMM timelines 
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and how those timelines would affect their facilities. 

Therefore, after evaluating the information provided, EPA 

has concluded that it is appropriate to propose extending 

the time period, to December 31, 2011, that owners and 

operators of covered facilities would be allowed to use 

BAMM without having to submit a request for approval from 

the Administrator. EPA believes these proposed amendments 

to the BAMM provisions are appropriate in order to provide 

sufficient time for companies to collect, prepare and 

submit data to EPA during the initial year of reporting. 

In this action, EPA is proposing to amend 40 CFR part 

98 subpart W to allow facilities with the emissions sources 

listed in 40 CFR 98.234(f)(2), (f)(3), (f)(4), and 

(f)(5)(iv) to automatically use BAMM, without EPA approval, 

for the entire 2011 reporting year. 

We are also proposing to amend 40 CFR 98.234(f)(8) for 

owners and operators who want to request to use BAMM beyond 

2011. In this proposal, owners or operators requesting to 

use BAMM beyond 2011 are required to electronically notify 

EPA by December 31, 2011 that they intend to apply for BAMM 

for unique or unusual circumstances such as data collection 

methods that do not meet safety, technical, or legal issues 

rendering them unable to meet the requirements of subpart 

W. Owners or operators must submit the full extension 
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request for BAMM by March 30, 2012. The full extension 

request must include a list of specific source categories 

and parameters at the facility for which the owner or 

operator is seeking to use BAMM. The full request must 

also include a description of the unique or unusual 

circumstances, including data collection methods that do 

not meet safety regulations, methods that are technically 

infeasible, or specific laws or regulations that conflict 

with each specific source for which BAMM is being 

requested. In addition, the full request must include 

supporting documentation of how and when the owner or 

operator will come into full compliance with subpart W, 

including but not limited to acquiring necessary services 

or equipment to comply with all of subpart W reporting 

requirements. The contents of the full BAMM request for 

post 2011 remain unchanged from the 2010 final rule (75 FR 

74508) with the exception that we are clarifying in this 

proposal that the circumstances under which BAMM may be 

requested beyond 2011 are not limited to concerns about 

safety, technical infeasibility or instances where meeting 

monitoring requirements under subpart W would conflict with 

specific laws or regulations. Other unique or unusual 

circumstances may be appropriate for requesting BAMM, if 

properly demonstrated. We are seeking comment only on 
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these amendments to 40 CFR 98.234(f)(8)(iv) which we have 

proposed to change and not other elements of the post 2011 

BAMM process. 

Further, we would note that the notice of intent, due 

December 31, 2011 to request BAMM post 2011 is intended for 

known issues (e.g., a monitoring requirement in the rule is 

counter to another federal, state or local regulation). 

EPA does not intend for the proposed amendments to 40 CFR 

98.234(f)(8) to lead to a submission of a notification of 

intent and a subsequent BAMM request consistent with 40 CFR 

98.234(f)(8)(ii) by a facility to cover that facility in 

the event that the facility might need BAMM in a future 

year (sometimes referred to as a “protective filing”). 

Submission of a BAMM request for these possible future 

issues (e.g, newly acquired operations) is covered under 40 

CFR 98.234(f)(1), which states “EPA reserves the right to 

review petitions after the deadline but will only consider 

and approve late petitions which demonstrate extreme or 

unusual circumstances.” EPA recognizes that it is not 

reasonable to predict all potential future issues and, as 

such, reserves the right to consider those BAMM requests in 

future years, without the reporter’s having to notify EPA 

by the December 31, 2011 notification of intent deadline 

described in 40 CFR 98.234(f)(8). 
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Once the owner or operator has notified EPA, by 

December 31, 2011, of their intent to apply for BAMM and 

has subsequently submitted a full extension request, by 

March 30, 2012, they can automatically use BAMM for the 

specific parameters identified in their request through 

June 30, 2012, regardless of the final determination by EPA 

on approval or denial of the BAMM request. This automatic 

extension would be necessary because under the proposed 

rule, facilities would have only been granted automatic 

BAMM through December 31, 2011. For facilities that are 

requesting BAMM for beyond 2011, BAMM must be extended 

automatically to provide EPA the time to review thoroughly 

the BAMM requests submitted for beyond 2011, while ensuring 

that the requesting facilities are not out of compliance 

with the rule during that review process. The owners and 

operators who apply for BAMM beyond 2011 must follow the 

requirements as stated in subpart W by July 1, 2012, unless 

EPA approves their BAMM extension request (due March 30, 

2012). Under the proposal, facilities that submit a notice 

of intent but do not follow up with a BAMM request 

consistent with 40 CFR 98.234(f)(8)(ii) by March 30, 2012 

cannot use BAMM after December 31, 2011. 

EPA is seeking comment on these proposed deadlines for 

BAMM beyond 2011. EPA recognizes that there may be 
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additional concerns related to BAMM for post 2011 that were 

raised in the petitions for reconsideration. Although EPA 

is aware of these concerns, we are not proposing amendments 

related to these concerns at this time. We are seeking 

comments only on the proposal to extend the BAMM deadlines 

(for both 2011 and post 2011) and to clarify that BAMM may 

be sought for unique or unusual (as opposed to “extreme”) 

circumstances, including data collection methods that do 

not meet safety regulations, technical infeasibility and 

instances where subpart W monitoring requirements would 

conflict with regulations. 

EPA is also re-numbering several paragraphs that were 

incorrectly numbered. 40 CFR 98.234(f)(8)(iii) is redesignated as 40 CFR 98.234(f)(8)(ii)(A). 40 CFR

98.234(f)(8)(iv) is re-designated as 40 CFR 

98.234(f)(8)(ii)(B). 40 CFR 98.234(f)(8)(v) is redesignated as 40 CFR 98.234(f)(8)(ii)(C). 40 CFR

98.234(f)(8)(v)(C) is re-designated as 40 CFR 

98.234(f)(8)(iii).

The Administrator has determined that this action is 

subject to the provisions of Clean Air Act (CAA) section 

307(d). See CAA section 307(d)(1)(V)(the provisions of 

section 307(d) apply to “such other actions as the 

Administrator may determine”). 
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IV. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review 

and Executive Order 13563: Improving Regulation and 

Regulatory Review 

This action is not a "significant regulatory action" 

under the terms of Executive Order 12866 (58 FR 51735, 

October 4, 1993) and is therefore not subject to review 

under Executive Orders 12866 and 13563 (76 FR 3821, January 

21, 2011). 

B. Paperwork Reduction Act

This action does not impose any new information 

collection burden. These amendments affect provisions in 

the rule related to best available monitoring methods, 

which is an optional provision and is not mandatory. 

Furthermore, the proposed amendments would significantly 

reduce the administrative burden on industry by removing 

the requirement to make a formal application to use best 

available monitoring methods in 2011. However, the Office 

of Management and Budget (OMB) has previously approved the 

information collection requirements contained in the 

existing regulations, 40 CFR 98 subpart W (75 FR 74458), 

under the provisions of the Paperwork Reduction Act, 44 

U.S.C. 3501 et seq. and has assigned OMB control number 

[2060-0651]. The OMB control numbers for EPA's regulations 
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in 40 CFR are listed in 40 CFR part 9. The ICR number for 

40 CFR part 98, subpart W is 2376.03. 

C. Regulatory Flexibility Act

The RFA generally requires an agency to prepare a 

regulatory flexibility analysis of any rule subject to 

notice and comment rulemaking requirements under the 

Administrative Procedure Act or any other statute unless 

the agency certifies that the rule will not have a 

significant economic impact on a substantial number of 

small entities. Small entities include small businesses, 

small organizations, and small governmental jurisdictions.

For purposes of assessing the impacts of this proposed 

rule on small entities, small entity is defined as: (1) a 

small business as defined by the Small Business 

Administration’s regulations at 13 CFR 121.201; (2) a small 

governmental jurisdiction that is a government of a city, 

county, town, school district or special district with a 

population of less than 50,000; and (3) a small 

organization that is any not-for-profit enterprise which is 

independently owned and operated and is not dominant in its 

field. 

After considering the economic impacts of today’s 

proposed rule on small entities, I certify that this action 

will not have a significant economic impact on a 
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substantial number of small entities. In determining 

whether a rule has a significant economic impact on a 

substantial number of small entities, the impact of concern 

is any significant adverse economic impact on small 

entities, since the primary purpose of the regulatory 

flexibility analyses is to identify and address regulatory 

alternatives “which minimize any significant economic 

impact of the rule on small entities.” 5 USC 603 and 604. 

Thus, an agency may certify that a rule will not have a 

significant economic impact on a substantial number of 

small entities if the rule relieves regulatory burden, or 

otherwise has a positive economic effect on all of the 

small entities subject to the rule. 

Based on these proposed amendments, certain companies 

would be granted additional time to use BAMM during 2011 

without being required to submit an application for 

approval to the Administrator. In addition, these proposed 

amendments increase the scope of the types of companies who 

would be granted the option to use BAMM in 2011 without 

being required to submit an application for approval to the 

Administrator. Finally, companies who choose to request 

BAMM for 2012 and beyond would be given additional time by 

which they would be required to submit their application to 

the EPA Administrator for approval. We have therefore 
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concluded that these proposed amendments will relieve 

regulatory burden for all affected small entities. We 

continue to be interested in the potential impacts of the 

proposed rule on small entities and welcome comments on 

issues related to such impacts.

D. Unfunded Mandates Reform Act

Title II of the Unfunded Mandates Reform Act of 1995 

(UMRA), 2 U.S.C. 1531–1538, requires Federal agencies, 

unless otherwise prohibited by law, to assess the effects 

of their regulatory actions on State, local, and Tribal 

governments and the private sector. Federal agencies must 

also develop a plan to provide notice to small governments 

that might be significantly or uniquely affected by any 

regulatory requirements. The plan must enable officials of 

affected small governments to have meaningful and timely 

input in the development of EPA regulatory proposals with 

significant Federal intergovernmental mandates and must 

inform, educate, and advise small governments on compliance 

with the regulatory requirements. 

The proposed rule amendments do not contain a Federal 

mandate that may result in expenditures of $100 million or 

more for State, local, and tribal governments, in the 

aggregate, or the private sector in any one year. Thus, 

the proposed rule amendments are not subject to the 
Page 27 of 36

requirements of section 202 and 205 of the UMRA. This rule 

is also not subject to the requirements of section 203 of 

UMRA because it contains no regulatory requirements that 

might significantly or uniquely affect small governments. 

The proposed amendments will not impose any new 

requirements that are not currently required for 40 CFR 

part 98, and the rule amendments would not unfairly apply 

to small governments. Therefore, this action is not 

subject to the requirements of section 203 of the UMRA. 

E. Executive Order 13132: Federalism

This action does not have federalism implications. It 

will not have substantial direct effects on the States, on 

the relationship between the national government and the 

States, or on the distribution of power and 

responsibilities among the various levels of government, as 

specified in Executive Order 13132. 

These amendments apply to an optional provision in the 

final rule for subpart W, which applies to petroleum and 

natural gas facilities that emit greenhouse gases. Few, if 

any, State or local government facilities would be 

affected. This regulation also does not limit the power of 

States or localities to collect GHG data and/or regulate 

GHG emissions. Thus, Executive Order 13132 does not apply 

to this action.
Page 28 of 36

F. Executive Order 13175: Consultation and Coordination 

with Indian Tribal Governments

This action does not have tribal implications, as 

specified in Executive Order 13175 (65 FR 67249, November 

9, 2000). The proposed rule amendments would not result in 

any changes to the current requirements of 40 CFR part 98 

subpart W. The amendments proposed in this rule only apply 

to optional provisions in 40 CFR part 98 subpart W. Thus, 

Executive Order 13175 does not apply to this action.

Although Executive Order 13175 does not apply to this 

action, EPA sought opportunities to provide information to 

Tribal governments and representatives during the 

development of the rule for subpart W promulgated on 

November 30, 2010. A summary of the EPA’s consultations 

with Tribal officials is provided in Sections VIII.D and 

VIII.F of the preamble to the 2009 final rule and Section 

IV.F of the preamble to the 2010 final rule for subpart W 

(75 FR 74485).

G. Executive Order 13045: Protection of Children from 

Environmental Health Risks and Safety Risks

EPA interprets Executive Order 13045 (62 FR 19885, 

April 23, 1997) as applying only to those regulatory 

actions that concern health or safety risks, such that the 

analysis required under section 5-501 of the Executive 
Page 29 of 36

Order has the potential to influence the regulation. This 

action is not subject to Executive Order 13045 because it 

does not establish an environmental standard intended to 

mitigate health or safety risks.

H. Executive Order 13211: Actions that Significantly 

Affect Energy Supply, Distribution, or Use

This action is not subject to Executive Order 13211 

(66 FR 28355, May 22, 2001), because it is not a 

significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act

Section 12(d) of the National Technology Transfer and 

Advancement Act of 1995 (“NTTAA”), Public Law No. 104-113, 

12(d) (15 U.S.C. 272 note) directs EPA to use voluntary 

consensus standards in its regulatory activities unless to 

do so would be inconsistent with applicable law or 

otherwise impractical. Voluntary consensus standards are 

technical standards (e.g., materials specifications, test 

methods, sampling procedures, and business practices) that 

are developed or adopted by voluntary consensus standards 

bodies. NTTAA directs EPA to provide Congress, through 

OMB, explanations when the Agency decides not to use 

available and applicable voluntary consensus standards. 
Page 30 of 36

This proposed rulemaking does not involve technical 

standards. Therefore, EPA is not considering the use of 

any voluntary consensus standards.

J. Executive Order 12898: Federal Actions to Address 

Environmental Justice in Minority Populations and LowIncome Populations

Executive Order 12898 (59 FR 7629, February 16, 1994) 

establishes Federal executive policy on environmental 

justice. Its main provision directs Federal agencies, to 

the greatest extent practicable and permitted by law, to 

make environmental justice part of their mission by 

identifying and addressing, as appropriate, 

disproportionately high and adverse human health or 

environmental effects of their programs, policies, and 

activities on minority populations and low-income 

populations in the United States. 

EPA has determined that this proposed rule will not 

have disproportionately high and adverse human health or 

environmental effects on minority or low-income populations 

because it does not affect the level of protection provided 

to human health or the environment because it is a rule 

addressing information collection and reporting procedures.
Mandatory Reporting of Greenhouse Gases: Petroleum and Natural Gas 

Systems: Revisions to Best Available Monitoring Method Provisions

Page 31 of 36

List of Subjects in 40 CFR Part 98

Environmental Protection, Administrative practice and 

procedures, Greenhouse gases, Air pollution control, 

Monitoring, Reporting and recordkeeping requirements. 

Date:

Lisa P. Jackson, 

Administrator.
Page 32 of 36

For the reasons discussed in the preamble, EPA 

proposes to amend 40 CFR part 98 as follows:

PART 98 [AMENDED]

1. The authority citation for part 98 continues to 

read as follows:

Authority: 42 U.S.C. 7401–7671q.

Subpart W [Amended]

2. Section 98.234 is amended as follows:

a. By revising paragraph (f)(2) introductory text. 

b. By revising paragraph (f)(3) introductory text. 

c. By revising paragraph (f)(4) introductory text. 

d. By revising paragraph (f)(5).

e. By removing and reserving paragraph (f)(6).

f. By removing and reserving paragraph (f)(7).

g. By revising paragraph (f)(8). 

§98.234 Monitoring and QA/QC Requirements

* * * * *

(f) * * *

(2) Best available monitoring methods for wellrelated emissions. During January 1, 2011 through December 

31, 2011, owners and operators may use best available 

monitoring methods for any well-related data that cannot 

reasonably be measured according to the monitoring and 
Page 33 of 36

QA/QC requirements of this subpart. These well-related 

sources are:

* * * * *

(3) Best available monitoring methods for specified 

activity data. During January 1, 2011 through December 31, 

2011, owners or operators may use best available monitoring 

methods for activity data as listed below that cannot 

reasonably be obtained according to the monitoring and 

QA/QC requirements of this subpart. These sources are:

* * * * *

(4) Best available monitoring methods for leak 

detection and measurement. During January 1, 2011 through 

December 31, 2011, owners or operators may use best 

available monitoring methods for sources requiring leak 

detection and/or measurement. These sources include:

* * * * *

(5) Requests for the use of best available monitoring 

methods.

(i) No request or approval by the Administrator is 

necessary to use best available monitoring methods between 

January 1, 2011 and December 31, 2011 for the sources 

specified in paragraph (f)(2) of this section. 

(ii) No request or approval by the Administrator is 

necessary to use best available monitoring methods between 
Page 34 of 36

January 1, 2011 and December 31, 2011 for sources specified 

in paragraph (f)(3) of this section. 

(iii) No request or approval by the Administrator is 

necessary to use best available monitoring methods between 

January 1, 2011 and December 31, 2011 for sources specified 

in paragraph (f)(4) of this section. 

(iv) No request or approval by the Administrator is 

necessary to use best available monitoring methods between 

January 1, 2011 and December 31, 2011 for sources not 

listed in paragraph (f)(2), (f)(3), and (f)(4) of this 

section.

(6) [Reserved]

(7) [Reserved]

(8) Requests for extension of the use of best 

available monitoring methods beyond 2011 for sources listed 

in paragraphs (f)(2), (f)(3), (f)(4), and (f)(5)(iv) of 

this section. The owner or operator must first provide the 

Administrator an initial electronic notification of intent 

to submit an extension request for use of best available 

monitoring methods beyond December 31, 2011 for unique or 

unusual circumstances which include data collection methods 

that do not meet safety regulations, a requirement being 

technically infeasible, or counter to other local, State, 

or Federal regulations. The owner or operator must follow-
Page 35 of 36

up this initial notification with an extension request

containing the information specified in 98.234(f)(8)(ii). 

Facilities that submit both a timely notice of intent and 

extension request consistent with 98.234(f)(8)(ii) can 

automatically use BAMM through June 30, 2012, for the 

specific parameters identified in their notification of 

intent and BAMM request regardless of whether the BAMM 

request is ultimately approved. Facilities that submit a 

notice of intent but do not follow up with a BAMM request

by March 30, 2012 cannot automatically use BAMM after 

December 31, 2011.

(i) Timing of Request. The initial electronic notice 

of intent to request BAMM must be submitted by December 31, 

2011. The completed extension request must be submitted to 

the Administrator no later than March 30, 2012. 

(ii) Content of request. Requests must contain the 

following information: 

(A) A list of specific source categories and 

parameters for which the owner or operator is seeking use 

of best available monitoring methods.

(B) A description of the unique or unusual 

circumstances, such as data collection methods that do not 

meet safety regulations, technical infeasibility, or 

specific laws or regulations that conflict with each 
Page 36 of 36

specific source for which an owner or operator is 

requesting use of best available monitoring methodologies. 

(C) A detailed explanation and supporting 

documentation of how and when the owner or operator will 

receive the services or equipment to comply with all of 

this subpart W reporting requirements.

(iii) Approval criteria. To obtain approval to use 

BAMM after June 30, 2012, the owner or operator must 

demonstrate to the Administrator’s satisfaction that the 

owner or operator faces unique or unusual circumstances 

such as data collection methods that do not meet safety

regulations, technical infeasibility, or legal issues 

rendering them unable to meet the requirements of this 

subpart.