Source Determination

for Oil and Gas Extraction

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Overview

 Objective – Review approach to proposal for oi

source determination rule.

 Brief history of policy. 

 Recent court decisions.

 Proposal

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Brief History of Permitting

 Stationary Source is “any building, structure, faci

installation” which is all of the pollutant-emitting athat are

 Under common control Located on one or more contiguous or adjacent proper Belong to the same major industrial grouping (2-digit S

 1980 PSD Regulations – source must

 Carry out the purposes of PSD Approximate a “common sense notion of a plant” Avoid aggregating unless fit within terms building, struc

facility installation

 Also said we did not intend to encompass activities alo

line” operation such as power line or pipeline

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Brief History of Permitting (con

 Determining “source” a case-by-case ana In making these determinations we have:

 Evaluated contractual relationships to determ

whether common control exists

– Landfills and landfill gas-to-energy

 Included support facilities even if different SIC 

– Coal mines and power plants

 Considered sources to be “adjacent” if they ar

functionally interrelated

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Permitting Oil and Gas

 2007 – Memo “Source Determination for O

Gas Industries”

 Begin by determining whether individual surfa

are major

 Aggregate 2 or more surface sites only if unde

common control and are located in close prox

 2009 Memo- withdrew 2007 memo

 Examine all three criteria, make a case-by-cas

determination

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Oil and Gas Determinations

 Kerr-McGee Frederick Compressor Station

 Granted title V petition because Colorado did prov

adequate rationale for its source determination

 BP Florida River Compressor Station 

 EPA did not aggregate compressor station and we WEG Petition – settled

 Summit Petroleum

 EPA aggregated gas sweetening plant and wells f

permit

 Challenged in 6th Circuit

6th Circuit said we could not consider “interrelated

accessing adjacency

– Must be physically proximate to be considered “adjace

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Source Determination Rule

 Provide clarity for sources and permitting 

authorities

 Propose at the same time as the equipme

specific emissions standards (NSPS and 

 The pre-construction permit review process is 

less necessary if all significant individual pieceequipment are well-controlled

 At this time, propose only for oil and gas 

extraction

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Proposal

 Propose two options, stating a preference 

limited “aggregation” (Option 1)

 Option 1: Define “adjacent” as limited by prox

– Similar to Clean Air Act limitations on aggregation f

industry in toxics provisions

– Propose 1⁄4 mile as radius, take comment on other d– Consistent with Summit decision

 Option 2: Define “adjacent” as including a 

determination of functional interrelatedness

– Consistent with historic practice, practice for other i

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Questions?

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