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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 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 

FINAL AGENCY ACTION: On September 30, 2016, the 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 

(Resolute). 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, 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 permit action would not cause or contribute 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 modification of existing equipment at the MCU Facility.

PROJECT DESCRIPTION: 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 submitted a revised PSD application dated April 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 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 
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removed from the MCU Facility site. The EPA issued 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 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 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 period 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, organizations, and public members for whom contact 

information was obtained through a number of different methods, 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 Office. 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, Dennehotso, AZ. 

We accepted public comments 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 permit 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 determined 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 kilometers (1.2 miles) radius around the Main Flare. Cultural 

resources identified within the APE were 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 amended PSD permit for the Main Flare). 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 Indian Reservation 

regarding the EPA’s determination. Additionally, the EPA did not receive any comments from the public 

regarding the NHPA consultation. 

FOR ADDITIONAL INFORMATION: 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/preventionsignificant-deterioration-psd-permits-issued-region-9, or at http://www.regulations.gov (Docket ID # EPA-R09-

OAR-2014-0785). 
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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 address 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) 947-4156 

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 Chapter 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, AZ, (928) 429-0977 

 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) 686-9936 

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 the attention of all persons who would be interested in this matter. 

*** END OF ANNOUNCEMENT *** 

Issued September 30, 2016 
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U.S. Environmental Protection Agency, Region 9

PUBLIC INFORMATION SHEET

MCELMO CREEK UNIT OIL PRODUCTION FACILITY

FINAL PSD PERMIT AMENDMENT NO. 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 

McElmo 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 Incorporate 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 (NOx), carbon 

monoxide (CO), sulfur dioxide (SO2), and volatile organic compounds (VOCs). 

o Remove 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 

any National Ambient Air Quality Standards (NAAQS) or any applicable PSD increments. 

• This 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. 
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• The EPA held a formal public hearing on November 20, 2014, at the Aneth Chapter House, 

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

Immediately prior 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 kilometers (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 did 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 Facility 

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-significantdeterioration-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 

arrange 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 

R9airpermits@epa.gov.