1 Kelly, Shaheerah

From: R9AirPermits Sent: Friday, September 30, 2016 4:34 PM To: R9AirPermits Subject: McElmo Creek Unit Oil Production Facility Final PSD Permit Decision Attachments: Final MCU PSD Permit Public Information Sheet 30SEP2016.pdf

* * * PUBLIC NOTICE * * *

McELMO CREEK UNIT OIL PRODUCTION FACILITY

ANNOUNCEMENT OF FINAL PE RMIT DECISION OF A CLEAN AIR ACT PREVENTION OF SIGNI FICANT DETERIORATION PERMIT THAT REGULATES THE EMI SSION OF AIR POLLUTANTS

PSD PERMIT NO. NU 05-01

F INAL A GENCY A CTION : On September 30, 2016, the United States Environmental Protection Agency (EPA) Region 9 issued its final permit decision to amend the Prevention of Significant Dete rioration (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 Resolu te Natural Resources Company (Resolute). The mailing address for th e 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 CF R 52.21), to incorporate pollution limits, terms, and conditions for the already exis ting 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 includ e Best Available Control Technology (BACT) emission limitations for nitrogen oxides, car bon monoxide, sulfur 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 perm it action would not cause or c ontribute to violations of any National Ambient Air Quality Standards (NAAQS) or any applicable PSD increments. This permit action does not authorize any new construction or modifi cation of existing equipment at the MCU Facility.

P ROJECT D ESCRIPTION : On December 5, 2005, Mobil Exploration & Pr oducing 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 MC U Facility, an existing oil and gas production operation located within the Four Corners Area on the Navajo Nati on Indian Reservation near th e city of Aneth, San Juan County, Utah. ( See United States v. Mobil Ex ploration and Producing U.S. Inc. , Case No. 2:05–CV–319, filed June 8, 2005). Mobil provided supplemental informa tion in 2006 and 2007. Resolute acquired ownership of the MCU Facility in 2006, and submitted a revised PSD application dated Apr il 2008 for the Main Flare, as well as several supplements to the PSD application submitted to the EPA thereafter.

The PSD application was submitted to meet the requireme nts of the federal Consent Decree, which included analyzing the best availabl e control technology (BACT) for the Main Flare. Additiona lly, the applicant requested other updates to the existing PSD permit associ ated with equipment that had been shut down and2 removed from the MCU Facility site. The EPA i ssued 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 provided notice of and re quested public comment on a proposal to amend the PSD permit, and also announced a pub lic information meeting and public hearing for the proposed PSD permit to take place on November 20, 2014. Public notices rega rding the public comment 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 peri od on the EPA Region 9 website. We distributed the public notices to the necessary parties in accordance with 40 CFR part 124, including notices sent by mail and email on October 15, 2014. We notified affected government agencies, or ganizations, and public members for whom contact information was obtained through a numb er of different methods, including requests made directly to the EPA Region 9 through our website, contacts provided by the Navajo Nation Envi ronmental Protection Agency, and other parties known to the EPA Region 9 that may have an interest in this action base d on interest in previous actions within the Navajo Nation.

The administrative record for the proposed PSD perm it amendment was made available at the EPA Region 9’s Office. The proposed PSD permit amendment, Am bient Air Quality Impact Report and Fact Sheet (AAQIR/Fact Sheet), and other supp orting documents in the administra tive record were available through the EPA Region 9’s website. We also made the key doc uments available at the following public libraries and Navajo Nation chapter houses: Monticello Libr ary, 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 Chapte r House near Montezuma Creek, UT; Teec Nos Pos Chapter House, Teec Nos Pos, AZ; Mexican Water Chap ter House, Bluff, AZ; Sweetwater Chapter House, Sweetwater, AZ; and Dennehotso Chapter, Dennehotso, AZ.

We accepted public comments on the proposed PSD perm it amendment from October 15, 2014 until November 20, 2014. On November 20, 2014, the EPA held a formal public hearing at the Aneth Ch apter House, located in Aneth, UT, to receive oral and written comments on th e proposed PSD permit amendment. A court reporter was present at the hearing, as well as a Diné language interpreter for or al translation. Prior to the public hearing, the EPA held a public informa tion meeting to provide interested parties with additional information and an opportunity for informal discussi on on the proposed PSD permit amendment.

The EPA held a separate public comment period fr om September 30, 2015, through November 3, 2015, for the consultation process under the Natio nal Historic Preservation Act (NHPA) to accept public comments on potential impacts to historic properti es within the area of potential effect s (APE). The EPA determined that issuance of the amended PSD permit for the Main Flare will have no effect upon histor ic properties within the APE which consisted of the area within a 2 kilometers (1.2 miles) radius around the Main Flare. Cultural resources identified within the APE we re fifty (50) previously recorded archaeological 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 be impacted by our undertaking (i.e., issuance of the ame nded PSD permit for the Main Flare). EPA did not receive any objections from the Stat e Historic Preservati on Officers for Utah, Arizona, New Mexico, and Colorado, as well as the Tribal Hist oric Preservation Officer for the Navajo Nation Indian Reservation regarding the EPA’s determination. Additionally, th e EPA did not receive any comments from the public regarding the NHPA consultation.

F OR A DDITIONAL I NFORMATION : Key portions of the Administrative Re cord for this decision (including the final PSD permit, all public comments, the EPA’s res ponses to the public comment s, and additional supporting information) are available th rough a link at our website, http://www.epa.gov/caa-permitting/preventionsignificant-deterioration-ps d-permits-issued-region-9 , or at http://www.regulations.gov (Docket ID # EPA-R09- OAR-2014-0785).3 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 fr om 9:00 AM to 4:00 PM, at the EPA Region 9 address below. Due to building security pro cedures, please call Shaheerah Kelly at (415) 947-4156 to arrange a visit at least 72 hours in advance. Hard copi es 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) 947-4156

The final PSD permit amendment and the accompanying AAQIR/Fact Sheet are available for review and inspection at the Navajo Nation Environmental Protec tion 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 Chapter House, Mont ezuma 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, Sw eetwater, AZ, (928) 429-0977

 Dennehotso Chapter, Dennehotso, AZ, (928) 658-3300

The final PSD permit amendment and the accompanying AAQI R/Fact Sheet are also av ailable for review and inspection at Receptionist Desk of the following libraries:

 Monticello Library, Montic ello, UT, (435) 587-2281

 Blanding Library, Blanding, UT, (435) 678-2335

 Montezuma Creek Library, Mont ezuma Creek, UT, (435) 651-3309

 Bluff Library, Bluff, UT, (435) 672-9996

 La Sal Library, La Sal, UT, (435) 686-9936

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 th e attention of all persons who woul d be interested in this matter.

*** END OF ANNOUNCEMENT ***

Issued September 30, 2016Page 1 of 2 

### U.S. Environmental Protection Agency, Region 9



## PUBLIC INFORMATION S HEET

M C E LMO C REEK U NIT O IL P RODUCTION F ACILITY

F INAL PSD P ERMIT A MENDMENT N O

. NU 05

- 01

ACTION

• On September 30, 2016 , the United States Environmental Protection Agency (EPA)

, Region 9 issued a final Prevention of Significant Deterioration of Air Quality (PSD) permit amendment to the Resolute Natural Resources Company (Resolute) for the McElm o Creek Unit Oil Production Facility (MCU Facility)

.

BACKGROUND

• The MCU Facility is an oil and gas operation located near the city of Aneth, Utah, in the Four Corners area on the Navajo Nation Indian Reservation.

• The EPA Region 9 amended the PSD permit to :

o I ncorporate pollution limits, and terms and conditions for the 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, and terms and conditions include Best Available Control Technology (BACT) emission limitations for nitrogen oxides (NO x ), carbon monoxide (CO), sulfur dioxide (SO 2 ), and volatile organic compounds (VOCs).

o R emove and update other applicable requirements in the MCU Facility’s existing PSD permit due to equipment that has been shut down and removed from the site.

• Air pollution emissions for this permit action would not cause or contribute to violations of

an y 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.

• The EPA initially issued the PSD permit on February 2, 1987 , and amended the PSD permit on October 27, 1987, March 21, 1989, and April 19, 1991.

• The public comment period on the proposed PSD permit amendment began on October 15, 2014, and ended on November 20, 2014.Page 2 of 2 • The EPA held a formal public hearin g on November 20, 2014

, at the Aneth Chapter House, Aneth, UT

, to receive oral and written comments on the proposed PSD permit amendment

. Immediately p rior to the public hearing, EPA held a public information meeting.

• 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 the EPA’s determination that issuance of the amended PSD permit for the Main Flare will have no effect upon historic properties within the area of potential effects, which consisted of an area within a 2 k ilometers (1.2 miles) radius around the Main Flare. The EPA did not receive any objections from the State Historic Preservation Officers for Utah, Arizona, New Mexico, and Colorado, as well as the Tribal Historic Preservation Officer for the Navajo Nation regarding the EPA’s determination. Additionally, the EPA d id not receive any comments from the public regarding the NHPA consultation.

• After careful review of the comments submitted during the public comment and all pertinent regulations, the EPA issued a final PSD permit amendment to Resolute for the MCU Facili ty

on September 30, 2016

.

FOR MORE INFORMATION

• The final PSD permit amendment and most documents contained in the Administrative Record can be found at 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 )

• The Administrative Record for the final PSD permit amendment , which consists of the proposed and final PSD permits, and all data submitted by the applicant in support of the final permit , is also available at the EPA Region 9 ’s Office at 75 Hawthorne Street, San Francisco, California

, for public inspection Monday through Friday from 9:00 A.M. until 4:00 P.M., excluding legal holidays. Due to building security procedures, please call to

a rrange a visit 72 hours in advance. All public documents that are available in electronic form may be requested via e

- mail.

• For more information, contact Ms. Shaheerah Kelly at (415) 947

- 4156 or by e

- mail at R 9airpermits@epa.gov

.