1

Kelly, Shaheerah

From: Patrick Flynn <Pflynn@resoluteenergy.com>

Sent: Thursday, November 20, 2014 12:50 PM

To: R9AirPermits

Cc: Patrick Flynn; dmallory@resolutenergy.com

Subject: Comments to Permit Application No. NU 05-01, McElmo Creek Unit, San Juan County, 

Utah

Attachments: MCU PSD, Comments to Draft Permit.pdf; MCU PSD, Redline of Proposed Prevention of 

Significant Deterioration Permit.pdf

Ms. Kelly,

Attached comments and a red‐line of the draft PSD permit amendment No. NU 05‐01 for the McElmo Creek Unit, San

Juan County, Utah. A hard copy will be hand delivered to the public meeting held tonight at the Aneth Chapter House

and mailed to EPA via certified mail. Please contact me with any questions.

Thanks ‐ Pat

Patrick E. Flynn

Vice President, Governmental & Corporate Affairs Resolute Energy Corporation

303.534.4600 (Office)

303.573.4886 X1145 (Direct)

303.941.0389 (Cell)

303.623.3628 (Fax)

pflynn@resoluteenergy.com

This e‐mail message and any attachments are for the sole use of the intended recipient(s) and may contain confidential,

privileged, and proprietary information of Resolute Energy Corporation. Any unauthorized review, use, disclosure or

distribution may be prohibited under law. If you are not the intended recipient, please contact the sender by reply E‐

mail of any erroneous transmission, and destroy the original E‐mail, any attachments, and all copies of the original

message. Thank you.










RESOLUTE NATURAL RESOURCES COMPANY – REDLINE OF PROPOSED REVISIONS TO THE DRAFT PSD 

PERMIT FOR THE MCELMO CREEK UNIT OIL PRODUCTION FACILITY – NOVEMBER 20, 2014

3513493.3

3513493.3

3513493.3

PROPOSED

PREVENTION OF SIGNIFICANT DETERIORATION

PERMIT ISSUED PURSUANT TO THE

REQUIREMENTS AT 40 CFR § 52.21

U.S. ENVIRONMENTAL PROTECTION AGENCY, REGION 9

PSD PERMIT NUMBER: NU 05-01

PERMITTEE: Resolute Natural Resources Company

1675 Broadway, Suite 1950

Denver, Colorado 80202

FACILITY NAME: McElmo Creek Unit Oil Production

Facility

FACILITY LOCATION: Section 31, Township 40 South, Range

25 East within the Four Corners Area 

on the Navajo Nation Indian Reservation 

near the city of Aneth, San Juan County, Utah

Pursuant to the provisions of the Clean Air Act (CAA), Subchapter I, Part C (42 U.S.C. § 7470, et. seq.), 

and the Code of Federal Regulations (CFR) Title 40, Section 52.21, the United States Environmental 

Protection Agency Region 9 (EPA) is issuing this amended Prevention of Significant Deterioration (PSD) 

air quality permit to Resolute Natural Resources Company (Resolute) for the McElmo Creek Unit Oil 

Production Facility as described herein, in accordance with the permit application (and plans submitted 

with the permit application), federal regulations governing the Prevention of Significant Deterioration of 

air quality (40 CFR § 52.21), and other terms and conditions set forth in this amended PSD Permit.

Failure to comply with any condition or term set forth in this amended PSD Permit is subject to 

enforcement action pursuant to Section 113 of the Clean Air Act. This permit does not relieve Resolute 

from the responsibility to comply with any other applicable provisions of the CAA (including applicable 

implementing regulations in 40 CFR Parts 51, 52, 60, 61 and 63), or other federal, tribal, and local 

requirements.

Per 40 CFR Section 124.15(b), this PSD Permit becomes effective 30 days after the service of notice of 

this final permit decision unless review is requested on the permit pursuant to 40 CFR Section 124.19.

Deborah Jordan Date

Director, Air Division
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ABBREVIATIONS & ACRONYMS

Act Clean Air Act [42 U.S.C. § 7401 et seq.] 

Applicant Resolute Natural Resources Company 

BACT Best Available Control Technology

BTU British thermal units

CAA Clean Air Act [42 U.S.C. § 7401 et seq.] 

CEMS Continuous Emissions Monitoring System 

CFR Code of Federal Regulations

CMS Continuous Monitoring System

CO Carbon Monoxide

CO2 Carbon Dioxide

DSCFM Dry standard cubic feet per minute

EPA United States Environmental Protection Agency

H2S Hydrogen Sulfide 

HHV Higher Heating Value 

Hr Hour

lb, lbs Pound, pounds

MCU Facility / Facility McElmo Creek Unit Oil Production Facility

min Minute

MMBTU Million British thermal units

MMCFD Million cubic feet per day

NAAQS National Ambient Air Quality Standards

NESHAP National Emission Standards for Hazardous Air Pollutants

NNEPA Navajo Nation Environmental Protection Agency

NOx Oxides of nitrogen

O2 Oxygen

Permittee / Owner or

Operator

Resolute Natural Resources Company, or the owner and/or operator of the 

McElmo Creek Unit Oil Production Facility

ppm Parts per million

PSD Prevention of Significant Deterioration

PTE Potential to Emit

SCF Standard cubic feet

SCFM Standard cubic feet permit minute

SO2 Sulfur Dioxide

SOx Oxides of sulfur 

tpy Tons per year

VOC Volatile Organic Compounds as defined in 40 CFR § 51.100(s)
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MCELMO CREEK UNIT OIL PRODUCTION FACILITY

PREVENTION OF SIGNIFICANT DETERIORATION PERMIT

PERMIT CONDITIONS

PROJECT DESCRIPTION

The McElmo Creek Unit Oil Production Facility (MCU Facility or Facility) is 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. The Facility is owned, in partnership with the Navajo 

Nation Oil and Gas Company, and operated by the Resolute Natural Resources Company. The Facility is 

on the McElmo Creek Unit oilfield, which includes field operations and a gas compression plant.

The field operations consist of approximately 90 producing wells where petroleum crude oil is recovered 

from producing strata, and brought to the surface to be stored at either a satellite or a tank battery. 

There are eleven satellites that function as testing facilities for producing wells and four tank batteries.

The gas compression plant serves tertiary oil recovery operations for the McElmo Creek Unit oilfield. 

The gas compression plant receives produced gas through a gathering system, pressures the gas up to a 

suitable working pressure, and re-injects the gas to maintain reservoir pressure in the oilfield. The 

natural gas is injected with produced water in a dual injection system. Due to varying water injection 

demands in the field, and to the number of wells being serviced at any time, the gas compression plant 

inlet volume can vary between 10 and 18 million standard cubic feet per day (MMSCFD). The Main Flare 

is located at the gas compression plant.

This PSD Permit amendment incorporates requirements of the federal Consent Decree that applies to 

the MCU Facility’s Main Flare (see United States v. Mobil Exploration and Producing U.S. Inc., Case No. 

2:05–CV–319, filed June 8, 2005), which include Best Available Control Technology (BACT) emission 

limitations for emissions of sulfur dioxide (SO2), nitrogen oxides (NOx), carbon monoxide (CO), and 

volatile organic compounds (VOC). Air pollution emissions associated with this permit amendment will 

not cause or contribute to violations of any National Ambient Air Quality Standards (NAAQS) or any 

applicable PSD increments for the pollutants regulated under the PSD permit.
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EQUIPMENT LIST

The following devices and activities are subject to this PSD Permit.

Unit ID Description

Main Flare One (1) air-assist flare, rated at 618,104 scf/hr, which combusts produced 

field gas in excess of the facility compression capacity

TEG Reboiler One (1) TEG Reboiler rated at 0.75 MMBtu/hr, which combusts purchased 

pipeline quality natural gas to provide heat to the Glycol Heater

Glycol Heater One (1) Glycol Heater (TEG regenerator), rated at 12 MMCFD, which 

provides inter-stage dehydration for the HOS-6 compressor

Gasoline Storage Tank One (1) 10,000 gallon nominal capacity gasoline storage tank that is used 

for refueling of vehicles

PERMIT CONDITIONS

I. PERMIT EXPIRATION

As provided in 40 CFR § 52.21(r), this PSD Permit shall become invalid if construction: 

A. is not commenced (as defined in 40 CFR § 52.21(b)(9)) within 18 months after the 

approval takes effect; or

B. is discontinued for a period of 18 months or more; or

C. is not completed within a reasonable time.

II. PERMIT NOTIFICATION REQUIREMENTS

The Permittee shall notify EPA Region IX by letter or by electronic mail of the: 

A. date construction is commenced, postmarked within 30 days of such date;

B. actual date of initial startup, as defined in 40 CFR § 60.2, postmarked within 15 days of 

such date;

C. date upon which initial performance tests will commence postmarked not less than 30 

days prior to such date. Notification may be provided with the submittal of the 

performance test protocol; and

D. date upon which initial performance evaluation of the continuous emissions monitoring 

system (CEMS) will commence in accordance with 40 CFR § 60.13(c), postmarked not 

less than 30 days prior to such date. Notification may be provided with the submittal of 

the CEMS performance test.

III. FACILITY OPERATION

A. At all times, including periods of startup, shutdown, shakedown, and malfunction, the 

Permittee shall, to the extent practicable, maintain and operate the Facility, including
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associated air pollution control equipment, in a manner consistent with good air 

pollution control practice for minimizing emissions. Determination of whether 

acceptable operating and maintenance procedures are being used will be based on 

information available to EPA, which may include, but is not limited to, monitoring 

results, opacity observations, review of operating maintenance procedures, and 

inspection of the Facility.

B. The operating staff with management authority at this Facility shall be advised of and be 

familiar with all the conditions of this PSD Permit.

IV. GENERAL MALFUNCTION REPORTING

A. The Permittee shall notify EPA at R9.AEO@epa.gov within two (2) working days 

following the discovery of any failure of air pollution control equipment or process 

equipment, or failure of a process to operate in a normal manner, which results in an 

increase in emissions above the allowable emission limits stated in Section IX of this 

permit.

B. In addition, the Permittee shall provide an additional notification to EPA in writing or 

electronic mail within fifteen (15) days of any such failure described under Condition 

IV.A. This notification shall include a description of the malfunctioning equipment or 

abnormal operation, the date of the initial malfunction, the period of time over which 

emissions were increased due to the failure, the cause of the failure, the estimated 

resultant emissions in excess of those allowed in Section IX, and the methods utilized to 

mitigate emissions and restore normal operations.

C. Compliance with this malfunction notification provision shall not excuse or otherwise 

constitute a defense to any violation of this permit or any law or regulation such 

malfunction may cause.

V. RIGHT OF ENTRY

A. EPA and its contractors, consultants, and agents shall have authority to enter the Facility 

at all reasonable times, and upon presentation of credentials, shall be permitted to:

1. Enter the premises where the Facility is located or where any records are 

required to be kept under the terms and conditions of this PSD Permit;

2. During normal business hours, have access to and to copy any records required 

to be kept under the terms and conditions of this PSD Permit;

3. Inspect any equipment, operation, or method subject to requirements in this 

PSD Permit; and

4. Sample materials and emissions from the Facility.

B. This provision in no way limits or otherwise affects any right of entry held by EPA 

pursuant to applicable federal, state, or local laws, regulations, or permits.
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VI. TRANSFER OF OWNERSHIP

In the event of any changes in control or ownership of the Facility, this PSD Permit shall be 

binding on all subsequent owners or operators. Within 14 days of any such change in control or 

ownership, the Permittee shall notify the succeeding owner or operator of the existence of this 

PSD Permit and its conditions by letter. The Permittee shall send a copy of this letter to EPA 

Region IX within thirty (30) days of its issuance.

VII. SEVERABILITY

The provisions of this PSD Permit are severable, and, if any provision of the PSD Permit is held 

invalid, the remainder of this PSD Permit shall not be affected.

VIII. ADHERENCE TO APPLICATION AND COMPLIANCE WITH OTHER ENVIRONMENTAL LAWS

The Permittee shall construct in accordance with this PSD Permit, the application on which this 

permit is based, and all other applicable federal, state, and local air quality regulations. This PSD 

Permit does not release the Permittee from any liability for compliance with other applicable 

federal, state, and local environmental laws and regulations, including the Clean Air Act.

IX. SPECIAL CONDITIONS FOR THE MAIN FLARE

A. Definitions

1. “CO2 Breakthrough” shall mean an event where a gas or fluid injected in the 

Facility’s oil field for the purpose of promoting the production of oil contacts a 

producing well and results in an increase in gas volume to compressor station 

equipment.

2. “Day” shall mean a calendar day, unless expressly stated to be a working day. In 

computing any period of time under Section IX of this PSD Permit, where the 

last day of such period would fall on a Saturday, Sunday, or federal holiday, the 

period shall run until the close of business on the next day that is not a 

Saturday, Sunday, or federal holiday.

3. “Facility” shall mean the Permittee’s McElmo Creek Unit Oil Production Facility 

and associated oil fields, located near Aneth, Utah, on the Navajo Nation Indian 

Reservation.

4. “Field Flares” shall mean the following flares at the Facility: (i) Tank Battery 

Flares at MCU Area 1 Battery, MCU Area 2 Battery, MCU Area 4 Battery, and 

MCU Area 6 Battery; and (ii) Satellite Flares at MCU Section 2, MCU Section 3, 

MCU Section 5, MCU Section 6, MCU Section 9, MCU Section 11, MCU Section 

17, MCU Section 19, MCU Section 32, and MCU Section 33.

5. “Flaring Incident” shall mean continuous or intermittent flaring at the Main 

Flare that results in the emissions of SO2 equal to, or greater than, five-hundred 

(500) pounds in any twenty-four (24) hour period; provided, however, that if 
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five-hundred (500) pounds or more of SO2 have been emitted in a twenty-four 

(24) hour period and the flaring continues into subsequent, contiguous, nonoverlapping twenty-four (24) hour period(s), each period of which results in 

emissions equal to, or greater than, five hundred (500) pounds of SO2, then only 

one Flaring Incident shall have occurred. Subsequent, contiguous, nonoverlapping periods are measured from the initial commencement of flaring 

within the Flaring Incident.

6.5. “Main Flare” shall mean the flare installed as part of the Facility’s former gas 

processing plant.

7.6. “Main Flare Emissions” shall mean the emissions from the Main Flare at fuel gas 

in the Main Flare’s pilot, (2) the closed drain and filter backwash operations, (3) 

CO2 Breakthroughs, (4) any Scheduled Maintenance, and (5) unscheduled 

maintenance of the Facility’s compressors.

8.7. “Malfunction” shall mean, for the purposes of reporting under Condition IX.I.3 

of this PSD Permit only, any sudden and unavoidable breakdown of process or 

pollution control equipment. CO2 Breakthroughs and Scheduled Maintenance 

of the Facility’s compressors are not Malfunctions.

9. “Root Cause” shall mean the primary cause of a Flaring Incident as determined 

through a process of investigation; provided, however, that if a Flaring Incident 

encompasses multiple releases of SO2, the “Root Cause” may encompass 

multiple primary causes.

10.8. “Scheduled Maintenance” shall mean work that is part of the routine work plan 

for the compressors located at the Facility's former gas processing plant. This 

work is typically planned and arranged on a set frequency, usually based on 

periods of time (e.g., daily, weekly or monthly) or on the operating hours of the 

equipment. Scheduled Maintenance shall not include work necessitated by the 

failure of a part of a compressor.

B. Air Pollution Control Equipment

1. The Main Flare shall be an automatic air-assisted flare system.

2. The Main Flare shall be operated with a variable speed fan. 

C. Emission Limitations

1. The Permittee shall not discharge or cause the discharge of emissions from the 

Main Flare into the atmosphere in excess of the following the emission 

limitations, based on a cumulative 365-day rolling total.

SO2 NOx CO VOC

60.0 tpy 13.4 tpy 73.0 tpy 95.4 tpy
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2. The Permittee shall calculate the 365-day rolling emissions totals for SO2, NOx,

CO, and VOC each day for the Main Flare.

3. The Permittee shall not use the Field Flares to circumvent the emission 

limitations in Condition IX.C.1.

4. All emissions during all modes of operation (including, but not limited to, 

emissions during periods of startup, shutdown, or malfunction) shall be used in 

determining compliance with the emission limitations in Condition IX.C.1.

5. Notwithstanding Paragraph IX.C.4., or any other condition of this Permit,

Permittee may assert, as an affirmative defense to an alleged violation of this 

Permit, that the alleged violation was due to a Malfunction. To qualify as a 

Malfunction, the Permittee has the burden of proof of demonstrating that:

a. The emissions in question were not the result of any CO2 Breakthroughs 

or any Scheduled Maintenance of the Facility’s compressors;

b. The emissions in question were caused by a sudden, unavoidable 

breakdown of process or pollution control equipment, beyond the 

control of Permittee, its contractors, or any entity controlled by 

Permittee;

c. The emissions in question (i) did not stem from activity or event that 

could have been foreseen and avoided, or planned for, and (ii) could not 

have been avoided by better operation and maintenance practices; 

d. To the maximum extent practicable, the air pollution control equipment 

or processes were maintained and operated in a manner consistent 

with good engineering practice for minimizing emissions; 

e. Repairs were made in an expeditious fashion;

f. The amount and duration of the emissions in question were minimized 

to the maximum extent practicable during periods of such emissions;

g. All possible steps were taken to minimize the impact of such emissions 

in question on ambient air quality;

h. All emission monitoring systems were kept in operation if at all possible;

i. The actions of Permittee, its contractors, or any entity controlled by 

Permittee in response to the emissions in question were documented 

by properly signed, contemporaneous operating logs, or other relevant 

evidence;

j. The emissions in question were not part of a recurring pattern indicative 

of inadequate design, operation, or maintenance; and
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k. Permittee properly and promptly notified EPA pursuant to the 

notification requirements of this Permit.

4.

D. Main Flare Operational Requirements

1. The Permittee shall install, operate and maintain an automatic air-assisted flare 

system on the Main Flare, pursuant to the provisions of 40 CFR § 60.18(c)(5) and 

(f)(6).

2. The Permittee shall operate and maintain the Main Flare in compliance with 40 

CFR § 60.18(c)(1), (c)(2), (c)(3)(ii), (c)(5), (d), (e), (f)(1) through (f)(4), and (f)(6).

3. The Main Flare shall be operated with a flame present at all times when 

emissions may be vented to them.

4. The Permittee shall comply with the following requirements for ensuring proper 

combustion efficiency:

a. The Main Flare shall be operated with a variable speed fan.

b. The net heating value air assist dilution parameter (NHVdil) shall be 

greater than or equal to 24.4 BTU/ft2, calculated as follows:

DF = Qvg X Diam (Eqn 1) Qvg + Qs + Qpremix air + Qperimeter air

NHVdil = NHVvg X DF (Eqn 2)

where:

DF = Dilution factor, feet (ft).

Qvg = Volumetric flow rate of the flare vent gas, scfm.

Qs = Cumulative volumetric flow of total steam, scfm.

Qpremix air = Cumulative volumetric flow of premix assist air, scfm 

Qperimeter air = Cumulative volumetric flow of perimeter assist air, scfm. 

Diam = Diameter of the flare vent gas release stack, ft.

NHVvg = Net heating value of flare vent gas, BTU/scf. 

NHVdil = Net heating value air assist dilution parameter.

5.4. The Permittee shall also perform any necessary operations to minimize 

emissions so that emissions are at or below the emission limits specified in this 

Permit.

E. Monitoring, Testing, and Emissions Calculations

1. The Permittee shall use the following requirements to determine compliance 

with the emission limitations in Condition IX.C.1 for the Main Flare.
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a. The Permittee shall measure and record the H2S concentration in the 

field gas at the Facility in each calendar month at the inlet to the 

Facility’s former gas processing plant where the Main Flare is located.

b. The Permittee shall continuously measure and record the volume of gas 

combusted in the Main Flare.

c. The Permittee shall install, operate and maintain continuous monitoring 

systems on the Main Flare for the usage of pilot gas and purge gas 

(other than nitrogen or other inert gas) by the Main Flare, in standard 

cubic feet per minute (SCFM). Readings shall be taken at least once 

every 5 minutes and the average hourly values shall be recorded on an 

hourly and daily basis.

d.c. Each and every calendar day, the Permittee shall calculate and record 

the daily emissions from the Main Flare based on the last recorded 

measurement of H2S concentration in the field gas at the Facility and 

that day’s recorded volume of gas combusted in the Main Flare.

e.d. Each and every calendar day, the Permittee shall calculate the 365-day 

rolling total of emissions of SO2, NOx, CO, and VOC for the Main Flare. 

Each 365-day rolling total shall be calculated using data from the 

previous 365 days. The Permittee shall maintain all records of actual 

operating data and calculations.

f.e. If the Permittee is unable to measure the volume of gas combusted in 

the Main Flare on any day, the volume of gas for that day shall be 

deemed to be equal to the daily average volume of gas combusted in 

the Main Flare based on the previous 12 months’ emissions data. 

However, the use of this daily average as substitute data neither 

relieves nor excuses the Permittee from complying with the sampling, 

data collection, and monitoring requirements.

2. The Permittee shall determine the net heating value of flare vent gas (NHVvg) 

using 40 CFR 60.18(f)(3).The Permittee shall use the following requirements to 

determine compliance with the operating limitations in Condition IX.D.4 for the 

Main Flare. The Permittee shall calculate and record the net heating value air 

assist dilution parameter of the field gas being combusted in the Main Flare as 

follows.

a. The Permittee shall continuously measure and record the following in 

the Main Flare:

(1) The volume of field gas combusted;

(2) The volume of perimeter assist air used; and

(3) If pre-mix assist air is used, the volume of premix assist air used.
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b. The flow rate monitoring systems must be corrected for the

temperature and pressure in standard conditions (i.e., a temperature of 20°C 

[68°F] and a pressure of 1 atm).

c. The Permittee shall automatically supply supplemental fuel to the Main 

Flare if the field gas does not have sufficient heating value.

d. Continuous pressure/temperature monitoring system(s) and 

appropriate engineering calculations may be used in lieu of a continuous 

volumetric flow monitoring systems provided the molecular weight of the gas is 

known. For assist air, use a molecular weight of 29 pounds per pound-mole. 

For flare vent gas, molecular weight must be determined using compositional 

analysis.

e. The Permittee shall install a monitoring system capable of calculating 

and recording the net heating value air assist dilution parameter of the field gas 

being combusted in the Main Flare in sixty-minute averages, rolled every five 

minutes.

f. The Permittee shall determine the net heating value of flare vent gas 

(NHVvg) using 40 CFR 60.18(f)(3).

3. The Permittee shall continuously monitor the Main Flare for the presence of a 

flare pilot flame using a thermocouple or any other equivalent device to detect 

the presence of a flame, which monitoring shall be conducted in accordance 

with 40 CFR 60.18(f)(2). The heat sensing monitoring device shall be operated 

at all times. The Main Flare shall be equipped with an alarm that informs 

Facility operators of any period when a pilot flame is not present in the flare and 

no gas shall be sent to the flare until a pilot flame is restored.

4. The Permittee shall operate the Main Flare with no visible emissions, except for 

periods not to exceed a total of 5 minutes during any 2 consecutive hours. EPA 

Test Method 22 in Appendix A of 40 CFR Part 60 shall be used to determine the 

compliance of flares with the visible emission provisions. The observation 

period is 2 hours and shall be used according to Method 22. The Permittee shall 

perform monthly visible emissions tests during a flaring event using Method 22.

F. Operation and Maintenance of Main Flare and Compressors

1. The Permittee shall at all times and to the extent practicable, including during 

periods of startup, shutdown, Malfunction, CO2 Breakthrough, Scheduled 

Maintenance, or unscheduled maintenance of the Facility’s compressors, 

operate and maintain the compressor station equipment and Main Flare in a 

manner consistent with good air pollution control practices for minimizing 

emissions.

2. The Permittee shall comply with the provisions of the Operations and 

Maintenance Plan in Appendix A of this PSD Permit. The Permittee’s failure to 
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comply with any requirement of the Operations and Maintenance Plan shall 

constitute a violation.

3. The Permittee shall follow the procedures for the inspection of the Facility’s 

compressors and associated equipment as set forth in the Life Cycle 

Maintenance Plan in the Operations and Maintenance Plan in Appendix A of this 

PSD Permit, and shall maintain inspection logs at the Facility documenting that 

these inspections have been conducted.

4. The Permittee shall maintain daily records at the Facility regarding operation of 

the Facility’s compressors on a Daily Plant Reading Form in the Operations and 

Maintenance Plan in Appendix A of this PSD Permit.

5. The Permittee shall maintain a supply of designated spare parts for the Facility’s 

compressors and associated equipment that includes all of the equipment on 

the Spare Parts List in the Operations and Maintenance Plan in Appendix A of 

this PSD Permit.

6. After using equipment on its Spare Parts List, the Permittee shall replace such 

equipment as expeditiously as possible. The Permittee shall place a purchase 

order for such equipment within 45 days after it is used.

7. The Permittee shall conduct training of Facility operators in accordance with the 

Training Program for Plant Operators in Section IV of the Operations and 

Maintenance Plan in Appendix A of this PSD Permit. The Permittee shall 

maintain records documenting that the training has been conducted.

8. The Permittee shall retain copies of inspection logs and other records required 

by Section IX.F (Operations and Maintenance of Main Flare and Compressors) of 

this PSD Permit.

9. The Permittee shall maintain inspection, maintenance and repair log(s) or other 

similar records and identify any occasion when the Permittee was unable to 

carry out its established maintenance procedures, with explanation.

9.10. Within 180 days of the effective date of this Permit, Permittee shall provide EPA 

with a modified Operations and Maintenance Plan that shall conform in all 

material respects with the applicable and appropriate substantive requirements 

of the Operation and Maintenance Plan set forth in the federal Consent Decree, 

taking into account the Facility’s current operations and equipment. EPA shall 

approve, deny, or propose modifications to the modified Operations and 

Maintenance Plan within 30 days of receipt. Upon approval by EPA, the 

modified Operations and Maintenance Plan shall be incorporated as Appendix A 

to the Permit and shall superseded and replace the existing Operations and 

Maintenance Plan under this Permit. 

G. Root Cause Analysis
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1. No later than 72 hours after an event first qualifies as a Flaring Incident, the 

Permittee shall notify by telephone, at (415) 947-8700, the Manager of the 

Air/TRI Enforcement Office, Enforcement Division of EPA Region IX, of such 

Flaring Incident. Telephone notification shall be followed by a detailed written 

notification to EPA, at the address in Condition X.C of this PSD Permit, made 

within seven (7) working days after the event first qualifies as a Flaring Incident.

2. For a Flaring Incident caused by Scheduled Maintenance or a CO2 Breakthrough, 

the Permittee shall submit a report to EPA, at the address in Condition X.C of 

this PSD Permit, no later than sixty (60) days following the end of such a Flaring 

Incident that sets forth the following information listed below. Except for those 

Flaring Incidents caused by Scheduled Maintenance or a CO2 Breakthrough, the 

Permittee shall conduct a Root Cause Analysis in accordance with the Root 

Cause Failure Analysis Program in Appendix B of this PSD Permit to evaluate the 

cause of each Flaring Incident and shall submit a report to EPA, at the address in 

Condition X.C of this PSD Permit, no later than sixty (60) days following the end 

of a Flaring Incident, that sets forth all of the following:

a. The date and time that the Flaring Incident started and ended. To the 

extent that the Flaring Incident involved multiple releases either within 

a twenty-four (24) hour period or within subsequent, contiguous, nonoverlapping twenty-four (24) hour periods, the Permittee shall set forth 

the starting and ending dates and times of each release;

b. An estimate of the quantity of SO2 that was emitted and the calculations 

that were used to determine that quantity;

c. The steps, if any, that the Permittee took to limit the duration and/or 

quantity of SO2 emissions associated with the Flaring Incident;

d. Except for those Flaring Incidents caused by Scheduled Maintenance or 

a CO2 Breakthrough, a detailed analysis that sets forth the Root Cause 

and all contributing causes of that Flaring Incident, to the extent 

determinable; however, if a Flaring Incident is caused by Scheduled 

Maintenance or CO2 Breakthrough, then the Permittee need only 

identify the Root Cause as Scheduled Maintenance or CO2 Breakthrough 

(whichever is applicable), and either (i) describe the nature of the work 

done for Scheduled Maintenance or (ii) identify the specific wells that 

most likely experienced the CO2 Breakthrough;

e. An analysis of the measures, including possible design, operational, and 

maintenance changes, that are available to reduce the likelihood of a 

recurrence of a Flaring Incident resulting from the same Root Cause or 

contributing causes in the future. If the Permittee concludes that 

corrective action(s) is (are) required under Section IX.H (Corrective 

Action) of this PSD Permit, the report shall include a description of the 

action(s) and, if not already completed, a schedule for its (their) 

implementation, including proposed commencement and completion 
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dates. If the Permittee concludes that corrective action is not required 

under Section IX.H (Corrective Action) of this PSD Permit, the report 

shall explain the basis for that conclusion;

f. To the extent that investigations of the causes and/or possible 

corrective actions still are under way on the due date of the report, a 

statement of the anticipated date by which a follow-up report fully 

conforming to the requirements of Conditions IX.G.2.d and IX.G.2.e of 

this PSD Permit will be submitted. Nothing in this Permit Condition shall 

be deemed to excuse the Permittee from its investigation, notification, 

reporting, and corrective action obligations in this PSD Permit for any 

Flaring Incident that occurs after the Flaring Incident for which the 

Permittee has requested an extension of time under this Permit 

Condition.

g. To the extent that completion of the implementation of corrective 

action(s), if any, is not finalized at the time of the submission of the 

report required under this Permit Condition, then, by no later than 

thirty (30) days after completion of the implementation of corrective 

action(s), the Permittee shall submit a report identifying the corrective 

action(s) taken and the dates of commencement and completion of 

implementation.

H. Corrective Action

1. In response to any Flaring Incident, the Permittee shall take, as expeditiously as 

practicable, such interim and/or long-term corrective actions, if any, as are 

consistent with good engineering practice to minimize the likelihood of a 

recurrence of the Root Cause and all contributing causes of that Flaring Incident.

I.G. Compliance Reporting

1. Within thirty (30) days following the end of each calendar semiannual period 

(i.e., January 1 to June 30, and July 1 to December 31), the Permittee shall 

submit to EPA a semiannual report.

2. All semiannual reports shall be signed and affirmed by a responsible official, and 

bearing the certification statement as follows:

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

information submitted in this document and all attachments and that this 

document and its attachments were prepared either by me personally or under 

my direction or supervision in a manner designed to ensure that qualified and 

knowledgeable personnel properly gathered and presented the information 

contained therein. I further certify, based on my personal knowledge or on my 

inquiry of those individuals immediately responsible for obtaining the 

information, that the information is true, accurate, and complete. I am aware 

that there are significant penalties for submitting false information, including 
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the possibility of fines and imprisonment for knowing and willful submission of a 

materially false statement.”

3. All semiannual reports shall include the following information:

a. A list of the rolling 365-day cumulative Main Flare emissions for each 

day in that semiannual period;

b. A list of each day in the semiannual period when the emissions limits 

that apply to the Main Flare were exceeded and, for each such day, the 

limit(s) exceeded and the amount(s) of excess emissions;

c. A list of all emissions for the semiannual period that the Permittee 

claims are attributable to Malfunctions;

d. A list of all emissions for the semiannual period that may be attributable 

to CO2 Breakthroughs, Scheduled Maintenance, or unscheduled 

maintenance of the Facility’s compressors;

e. The date(s) and time(s) during the semiannual period when the 

thermocouple or flow meter associated with the Main Flare was 

inoperative;

f. The date(s) and time(s) during the semiannual period when the 

Permittee failed to measure or record the H2S concentration in the field 

gas at the Facility or failed to continuously measure or record the 

volume of gas combusted in the Main Flare;

g. A certification that during the semiannual period the Permittee 

operated and maintained the compressor station equipment and Main 

Flare in a manner consistent with good air pollution control practices for 

minimizing emissions, and performed all of the obligations (including, 

but not limited to, inspection and training obligations) contained in the 

Operations and Maintenance Plan in Appendix A of this PSD Permit;

h. A certification that the Field Flares have not been used to circumvent 

the emission limits that apply to the Main Flare;

i. A list of total emissions from the Field Flares and the reason for Flaring; 

and

j. Any and all reports generated from the root cause analysis and 

corrective action program of Conditions IX.G and IX.H of this PSD 

Permit.

J.H. Recordkeeping Requirements
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1. The Permittee shall maintain a file of all records, data, measurements, reports, 

and documents related to operation of the Facility. All records shall be in a 

permanent form suitable for inspection.

2. The Permittee shall retain the following records at the facility for a period of at 

least five (5) years from the date of monitoring, sampling, measurement, or 

reporting. All applicable records shall be maintained at the nearest manned 

facility and shall be readily accessible.

a. Each 365-day rolling total for SO2, NOx, CO, and VOC emissions;

b. Emissions calculations of SO2, NOx, CO, and VOC for the Main Flare, 

which shall include the emission factors, operating data and other 

supporting documentation that the Permittee used to calculate 

emissions of each pollutant;

c. Monthly H2S concentration in the field gas at the Facility; 

d. Daily total volume of gas combusted in the Main Flare;

e. Gas throughput;

f. Records of gas analyses and testing;

g. Records of flare design for the Main Flare in accordance with 40 CFR 

60.18 (including whether the flare is steam-assisted, air-assisted, or 

non- assisted);

h. Semiannual reports required in Section IX.GI (Compliance Reporting), of 

this PSD Permit;

i. A written log of the monthly inspections of the Main Flare containing 

the following information for each inspection: (i) the date and time of 

the inspection, and the name of the observer; (ii) a description of any 

corrective actions taken and repairs made; and (iii) the date(s) of 

corrective actions and repairs;

j. Visible emission readings, heat content determinations, flowrate 

measurements, and exit velocity determinations made;

k. Periods when the pilot flame is absent or spark igniter(s) is inoperable; 

l. Any and all reports generated from the root cause analysis and 

corrective action program, which shall include the following: 

(1) Date, time and duration of flaring;

(2) Description of the event, including the flare(s) involved in the 

event and a discussion of the cause(s) and probable cause(s) of 

the event;
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(3) Confirmation that the flare(s) functioned properly, i.e., a flame 

was present and any visible emissions that occurred were in 

compliance with 40 CFR 60.18(f)(1);

(4) Corrective actions taken during the event; and

(5) A description of any actions taken to prevent or reduce the 

likelihood of similar future occurrences.

m.l. Inspection, maintenance and repair log(s) or other similar records; and

n.m. Any other records and reports required by this PSD permit.

X. AGENCY NOTIFICATION

A. Permit Applications & Permit-Related Requests.

The owner or operator shall submit permit applications, permit amendments, and other 

applicable permit information, which includes but not limited to installation of control 

equipment, replacement of an emissions unit, and changes that contravene permit 

terms, to:

Director, Air Division (Attn: AIR-3)

U.S. Environmental Protection Agency Region 9

75 Hawthorne Street

San Francisco, CA 94105

B. Submittals to Navajo Nation Environmental Protection Agency.

The owner or operator shall submit copies of all correspondence required by this PSD 

Permit to:

Navajo Nation Environmental Protection Agency

Air Quality Control Program and Operating Permits Program

P.O. Box 529

Fort Defiance, AZ 86504

C. Compliance Reporting.

Unless otherwise directed by the EPA or this PSD Permit, the owner or operator shall 

submit a copy of all test plans, reports, certifications, notifications, and other 

information pertaining to compliance with this PSD Permit to the following address. All 

notices and submissions shall be sent by certified mail, express mail, or similar overnight 

mail delivery with return receipt requested and addressed to:

Director, Enforcement Division (Attn: ENF-2-1) 

U.S. Environmental Protection Agency, Region IX

75 Hawthorne Street

San Francisco, California 94105
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All notices and submission made in accordance to Condition X.C.1 shall be deemed 

submitted on the date postmarked. All notices and submissions made in accordance to 

Condition X.C.1 shall be signed and affirmed by a responsible official, and bearing the 

certification statement as follows:

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

information submitted in this document and all attachments and that this document 

and its attachments were prepared either by me personally or under my direction or 

supervision in a manner designed to ensure that qualified and knowledgeable personnel 

properly gathered and presented the information contained therein. I further certify, 

based on my personal knowledge or on my inquiry of those individuals immediately 

responsible for obtaining the information, that the information is true, accurate, and 

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

information, including the possibility of fines and imprisonment for knowing and willful 

submission of a materially false statement.”