Outer Continental Shelf Title V and PSD Permit Application

Introduction 1-1 ENVIRON 

## 1 Introduction

Statoil Gulf Services, LLC (Statoil) is apply ing for a Title V and Prevention of Significant Deterioration (PSD) permit from the United States Environmental Protection Agency (EPA) Region 4 for the operation of either the Maersk Developer ( Developer ) or Transocean
Discoverer Americas ( Discoverer Americas ) dynamically positioned deep water drilling vessel and associated support fleet in the eastern Gulf of Mexico beyond 25 miles of any state’s seaward boundary.

Specifically, Statoil is proposing to utilize one of these two deep water drilling vessels to conduct exploratory drilling (NAICS category 211111 and SIC code 1311) in its DeSoto Canyon lease blocks, which are located east of the 87 degree, 30 minute Longitude on the Outer Continental Shelf (OCS) of the Gulf of Mexico. Figure 1 shows the location of these lease blocks (Desoto Canyon lease blocks 143, 187, 188, 230, 231, 625, 669, 670, 671, 715, 716, 759, 760, and 804). Please be advised the Bureau of Ocean Energy Management (BOEM) has awarded lease blocks 625, 669, 670, 671, 715, 716, 759, 760, and 804 to Statoil; however, formal execution of these leases is currently pending.

Each lease block is approximately five kilometers by five kilometers. Statoil proposes to use

either the Developer or Discoverer Americas deep water drilling vessel and associated support fleet to perform exploratory drilling for up to 180 days per year in multiple locations within its DeSoto Canyon lease blocks. The permitting of the Developer is presented in this application as Operating Scenario 1, and the Discoverer Americas is presented as Operating Scenario 2.
Mobilization of either the Developer or Discoverer Americas and associated support fleet is expected to begin July 1, 2013. Statoil expects to perform drilling exploration operations in its DeSoto Canyon lease blocks for approximately 5 to 10 years. At this time, Statoil does not have any plans to establish any permanent production platforms in the proposed exploration areas; however, if opportunities are later discovered, then such facilities will be appropriately permitted.

This permit application seeks to obtain a permit under PSD regulations in accordance with 40 Code of Federal Regulations (CFR) 55.13(d)(2) and 40 CFR 52.21 and, therefore, we have included in this permit application all of the information and analysis required by 40 CFR 52.21. Additionally, this application seeks to obtain a Title V operating permit in accordance with 40 CFR 55.13(f)(2) and 40 CFR 71, the federal Title V operating permit program.

The remainder of this permit application is organized as follows. Section 2 – Process Description provides a detailed process descripti on of the proposed drilling activities associated with each of the two operating scenarios proposed with this permit application, i.e., the Developer (Operating Scenario 1) and Discoverer Americas (Operating Scenario 2). Section 3 – Emission Source Description presents a discu ssion of the emission sources and potential-toemit (PTE) emission rate calculation basis for each proposed emission source by operating scenario. Section 4 – Regulatory Applicability documents the regulatory applicability determinations performed for each emissions unit proposed with this permit application. Section 5 – BACT Determination documents the best available control technology (BACT) analyses that have been performed pursuant to PSD regulations. Section 6 – Air Quality Impact Analysis provides a summary of the Class I and Class II ambient air quality modeling methodology andOuter Continental Shelf Title V and PSD Permit Application

Introduction 1-2 ENVIRON results, as well as the additional impacts anal ysis, that are required by PSD regulations. Appendix A includes the completed permit application forms for each proposed operating scenario, as required by 40 CFR 71. Appendix B contains detailed emissions calculations documenting the potential emissions associated with each operating scenario. Appendix C includes documentation associated with the Environmental Impact Statements (EIS) that support the issuance of the proposed permit. Appendix D presents the BACT cost effectiveness analyses that were performed in support of the BACT determinations identified in this permit application. Finally, Appendix E documents the ambient air quality analysis that has been performed for the proposed permit.

Lastly, Statoil does not consider any information included in this application to contain trade secrets or commercial or financial information which is exempt from disclosure under 5 United States Code (U.S.C.) § 552(b)(4).