# Outer Continental Shelf Title V and PSD Permit Application DeSoto Canyon Drilling Exploration Project

Prepared for: Statoil Gulf Services, LLC

Prepared by: ENVIRON International Corporation Baton Rouge, Louisiana

Date: September 2012

Project Number: 26-27189A

### Outer Continental Shelf Title V and PSD Permit Application

i 

# Contents
Page 1 Introduction 1-1

2 Process Description 2-1
2.1 The Developer 2-1
2.2 The Discoverer Americas 2-4

3 Emission Source Description 3-1 3.1 General Emission Basis Information 3-2 3.1.1 Emission Factor Basis Development 3-2 3.1.2 Sulfur Compound Emissions 3-3
3.1.3 Fluoride Emissions 3-3 3.1.4 Startup, Shutdown, and Maintenance Emissions 3-4
3.2 Developer Emission Calculation Basis 3-4 3.2.1 Main Generator Engines 3-5 3.2.2 Cement Unit Diesel Engines 3-6 3.2.3 Emergency Generator Engines 3-7 3.2.4 Lifeboat Engines 3-8 3.2.5 Fast Rescue Boat Engines 3-9 3.2.6 Storage Vessels 3-10 3.2.7 Fugitive Component 3-12 3.2.8 Support Vessels 3.12 3.2.8.1 Offshore Support Vessel Engines 3-13 3.2.8.2 Crew Boat Engines 3-14 3.2.8.3 Drilling Mud 3-16
3.3 Discoverer Americas Emission Calculation Basis 3-16 3.3.1 Main Generator Engines 3-17 3.3.2 Emergency Generator Engine 3-19 3.3.3 Emergency Air Compressor Engines 3-20 3.3.4 Lifeboat Engines 3-21 3.3.5 Fast Rescue Boat Engines 3-22
3.3.6 Heaters 3-23 3.3.7 Storage Vessels 3-24 3.3.8 Fugitive Components 3-25 3.3.9 Support Vessels 3-26 3.3.9.1 Offshore Support Vessel Engines 3-27 3.3.9.2 Crew Boat Engines 3-28 3.3.9.3 Drilling Mud 3-30 3.4 Emergency Operations 3-30
3.4.1 Relief Wells 3-30
3.4.2 Diverters 3-31

### Outer Continental Shelf Title V and PSD Permit Application

ii Table of Contents (continued) Page 4 Regulatory Applicability 4-1 4.1 Prevention of Significant Deterioration 4-1 4.2 New Source Performance St andards - 40 CFR Part 60 4-2 4.2.1 Subpart Dc - Standards of Performance for Small Industrial-Commercial- 4-2 Institutional Steam Generating Units for Which Construction, Reconstruction, or Modification Commenced After June 9, 1989 4.2.2 Subpart Kb - Standards of Performanc e for Volatile Organic Liquid Storage 4-3 Vessels for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984 4.2.3 Subpart IIII - Standards of Performance for Stationary Compression 4-5 Ignition Internal Combustion Engines 4.2.4 Subpart JJJJ - Standards of Performanc e for Stationary Spark Ignition Internal

Combustion Engines 4-10 4.3 National Emission Standards for Hazardous Air Pollutants 40 CFR Part 61 4-10 4.3.1 Subpart J - National Emission Standard for Equipment Leaks of Benzene 4-10 4.3.2 Subpart V - National Emission Standard for Equipment Leaks 4-11 4.4 National Emission Standards for Hazardous Air Pollutants for Source Categories 4-11 4.4.1 Subpart ZZZZ - National Emission Standard for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines 4-11 4.4.2 Subpart JJJJJJ - National Emission Standar ds Hazardous Air Pollu tants for Industrial, Commercial, and Institutional Boilers Area Sources 4-12 4.5 Control of Emissions from New and In-U se Nonroad Compression Ignition Engines - 40 CFR Part 89 4-12 4.6 Control of Emissions from Marine Compre ssion-Ignition Engines - 40 CFR Part 94 4-13 4.7 Compliance Assurance Monitoring (40 CFR Part 64) 4-14 4.8 Chemical Accident Prevention Pr ovisions (40 CFR Part 68) 4-14 4.9 Protection of Stratospheric Ozone - 40 CFR 82 4-13 4.9.1 Subpart F - Recycling and Emissions Reduction 4-15 4.10 Protection of Resources under the Endangered Species Act of 1973 4-15 4.10.1 Lease Sales 213 and 222 - Central Planning Area 4-16 4.11 Emissions Sampling Ports, Continuous Moni toring Systems, and Source Testing Plan 4-17

5 BACT Analysis 5-1 5.1 BACT Analysis Procedure 5-1 5.2 Summary of BACT Determinations 5-2
5.2.1 Developer and Discoverer Americas Engines 5-3
5.2.2 Discoverer Americas Heater 5-4 5.3. NO x BACT Analysis for Large (<500 hp) Diesel Engines 5-5 5.3.1 Step 1 - Identify All Control Technologies 5-5 5.3.1.1 Selective Catalytic Reduction (SCR) 5-7 5.3.1.2 Low NO x Design (LND) 5-7 5.3.1.3 Ignition Timing Retard (ITR) and Intake Air Coolers (IAC) 5-8 5.3.1.4 High Injection Pressure (HIP) 5-8 5.3.1.5 Water Injection (WI) 5-8

### Outer Continental Shelf Title V and PSD Permit Application

iii Table of Contents (continued) Page 5.3.1.6 Tier 1 or Tier 2 Emission Standards per 40 CFR Part 89 or 40 CFR Part 94 (Tier 1 or 2) 5-8 5.3.1.7 Turbocharger with Aftercooler 5-9 5.3.1.8 Exhaust Gas Recirculation (EGR) 5-9 5.3.1.9 Engine Replacement and Cam Shaft Cylinder Kits 5-10
5.3.1.10 Fuel-Water Emulsions 5-10 5.3.1.11 Intake Air Humidification 5-10 5.3.1.12 Engine Derate 5-10 5.3.1.13 NOx Adsorbers 5-11 5.3.1.14 Lean NO x Catalyst (LNC)/Hydrocarbon SCR (HC-SCR) 5-11 5.3.1.15 CSNO x Emission Abatement System 5-11 5.3.1.16 Good Combustion Practice (GCP) 5-11 5.3.1.17 Utilizing a "New er" Drilling Vessel 5-11 5.3.2 Step 2 - Eliminate Technically Infeasible Options 5-12 5.3.2.1 Exhaust Gas Recirculation (EGR) 5-13 5.3.2.2 Water Injection/Fuel-Water Emulsions/Intake Air Humidification 5-13 5.3.2.3 Cam Shaft Retrofits 5-14 5.3.2.4 Engine Derate 5-14 5.3.2.5 NO x Adsorbers 5-14 5.3.2.6 Lean NO x Catalyst (LNC)/Hydrocarbon SCR (HC SCR) 5-15 5.3.2.7 CSNO x Emission Abatement System 5-15 5.3.2.8 Low NO x Design (LND/Engine Replacement for Developer Main Generator Engines
and Discoverer Americas Emergency Generator Engine 5-15 5.3.2.9 Selective Cataly tic Reduction (SCR) for Discoverer Americas Main Generator Engines 5-15 5.3.4 Step 4 - Evaluate Most Effective Control Options and Document Results 5-18 5.3.4.1 Selective Cataly tic Reduction (SCR) for Developer Main Generator Engines 5-18 5.3.4.2 Selective Cataly tic Reduction (SCR) for Developer Emergency Generator Engine 5-21 5.3.4.3 Selective Cataly tic Reduction (SCR) for Discoverer Americas Emergency Generator Engine 5-22 5.3.4.4 Engine Replacement/Tie r 2 Emission Standards for Discoverer Americas Main Generator Engines 5-23 5.3.4.5 Engine Replacement/Tie r 3 Emission Standards for Developer Emergency Generator Engine 5-24 5.3.4.6 Tier 1 Emission Standards for Discoverer Americas Main Generator Engines and Developer Emergency Generator Engine 5-25 5.3.4.7 Tier 2 Emission Standards for Developer Main Generator Engines and Discoverer
Americas Emergency Generator Engine 5-26 5.3.5 Step 5 - Select BACT 5-26 5.4 NO x BACT Analysis for Small (<500 hp) Diesel Engines 5-26 5.4.1 Sep 1 - Identify All Control Technologies 5-27 5.4.2 Step 2 - Eliminate Technically Infeasible Options 5-28 5.4.2.1 Exhaust Gas Recirculation (EGR) 5-29 5.4.2.2 Engine Replacement 5-29 5.4.2.3 Water Injection, Fuel-Water Emulsion s, and Intake Air Humidification 5-29 5.4.2.4 Cam Shaft Retrofits 5-29 5.4.2.5 Engine Derate 5-29

### Outer Continental Shelf Title V and PSD Permit Application

iv Table of Contents (continued) Page 5.4.2.6 NO x Adsorbers 5-30 5.4.2.7 Lean NO x Catalyst (LNC)/Hydrocarbon SCR (HC SCR) 5-30 5.4.2.8 CSNO x Emission Abatement System 5-30 5.4.3 Step 3 - Rank Remaining Control Tech nologies by Control Effectiveness 5-30 5.4.4 Step 4 - Evaluate Most Effective Control Options and Document Results 5-30 5.4.5 Step 5 - Select BACT 5-31

6 Air Quality Impact Assessment 6-1 6.1 Dispersion Model Selection 6-1 6.2 Model Application 6-3 6.2.1 Source Characterization 6-3 6.2.2 Modeling Scenario 6-4 6.2.3 Stack Parameters 6-6 6.2.4 Building Downwash (Prime Algorithm) 6-15 6.2.5 Receptor Locations 6-16 6.2.6 Meteorological Data 6-16 6.3 Project Impact Assessment 6-16 6.3.1 Criteria Pollutant Concentrations 6-17 6.4 Class I Air Quality Related Values Analysis 6-18 6.4.1 Model Selection 6-19 6.4.2 Modeling Procedures 6-19 6.4.3 Model Setup and Application 6-19 6.4.4 Averaging Periods 6-20 6.4.5 Chemical Transformations 6-20 6.4.6 Domain and Receptors 6-21 6.4.7 Emission Rates and Stack Parameters 6-21 6.4.8 Meteorological Data 6-21 6.4.9 AQRV Calculation Procedures 6-23 6.4.10 FLAG 2008 (CALPOST Method 8) 6-24 6.4.11 Analysis Results 6-24 6.5 Additional Impacts Assessment 6-26 6.5.1 Growth Analysis 6-26 6.5.2 Soil and Vegetarian Impacts 6-26 6.5.3 Local Visibility Impairment 6-26

### Outer Continental Shelf Title V and PSD Permit Application

v Table of Contents (continued)

Tables

3.2-1 Developer Emissions Units 3.2.1-1 Main Generator Engine Operating Parameters 3.2.1-2 Main Generator Engine Emission Factors 3.2.2-1 Cement Unit Engine Operating Summary 3.2.2-2 Cement Unit Engine Emission Factors 3.2.3-1 Emergency Generator Engine Operating Summary 3.2.3-2 Emergency Generator Emission Factors 3.2.4-1 Lifeboat Engine Operating Summary 3.2.4-2 Lifeboat Engine Emission Factors 3.2.5-1 Fast Rescue boat Engine Operating Summary 3.2.5-2 Fast Rescue boat Engine Emission Factors 3.2.6-1 Storage Vessel Inventory and Operating Summary 3.2.7-1 Fugitive Component Emissions 3.2.7-2 Fugitive Component Emission Factors 3.2.8.1-1 Offshore Support Vessel Engine Operating Summary 3.2.8.1-2 Offshore Support Vessel Engine Emission Factors 3.2.8.2-1 Crew Boat Engine Operating Summary 3.2.8.2-2 Crew Boat Engine Emission Factors 3.2.8.3-1 Drilling Mud Operating Summary and Emission Factors
3.3-1 Discoverer Americas Emissions Units 3.3.1-1 Main Generator Engine Operating Parameters 3.3.1-2 Main Generator Engine Emission Factors 3.3.2-1 Emergency Generator Engine Operating Summary 3.3.2-2 Emergency Generator Engine Emission Factors 3.3.3-1 Emergency Air Compressor Engine Operating Summary 3.3.3-2 Emergency Air Compressor Engine Emission Factors 3.3.4-1 Lifeboat Engine Operating Summary 3.3.4-2 Lifeboat Engine Emission Factors 3.3.5-1 Fast Rescue Boat Engine Operating Summary 3.3.5-2 Fast Rescue Boat Engine Emission Factors 3.3.6-1 Hot Oil Heater Operating Summary 3.3.6-2 Hot Oil Heater Emission Factors 3.3.7-1 Storage Vessel Inventory and Operating Summary 3.3.8-1 Fugitive Component Summary 3.3.8-2 Fugitive Component Emission Factors 3.3.9.1-1 Offshore Support Vessel Engine Operating Summary 3.3.9.1-2 Offshore Support Vessel Engine Emission Factors 3.3.9.2-1 Crew Boat Engine Operating Summary 3.3.9.2-2 Crew Boat Engine Emission Factors 3.3.9.3-1 Drilling Mud Operating Summary and Emission Factors

### Outer Continental Shelf Title V and PSD Permit Application

vi Tables (continued) 4.1-1 PSD Significance Analysis 4.2-1 Summary of Developer VOL Storage Vessel Subpart Kb Applicability 4.2-2 Summary of Discoverer Americas VOL Storage Vessel Subpart Kb Applicability 4.2-3 Summary of Developer Engines Subject to Subpart IIII 4.2-4 Summary of Discoverer Engines Subject to Subpart IIII
4.6-1 Discoverer Americas Marine Engine Rule Applicability
4.6-2 Developer Marine Engine Rule Applicability

5.2.1-1 Summary of BACT Determinations for Developer and Discoverer Americas Engines 5.3.1-1 EPA RBLSC NO x Control Technologies for Large (>500 hp) Diesel Engines 5.3.1-2 Other NO x Control Technologies for Diesel Engines 5.3.2-1 BACT Options Determined to be Techni cally Infeasible for Large (>500 hp) Diesel Engines 5.3.5-1 Summary of BACT Determinations for Developer and Discoverer Americas Large (>500 hp) Diesel Engines 5.4.1-1 EPA RBLSC NOx Control Technologie s for Small (<500 hp) Diesel Engines 5.4.1-2 Other NOx Control Technologies for Diesel Engines 5.4.5-1 Summary of BACT Determinations for Small (<500 hp) Diesel Engines on the Developer and Discoverer Americas

6.2.3-1 Developer Point Source Stack Parame ters Used in CALPUFF Modeling Analysis 6.2.3-2 Discoverer Americas Point Source Stack Parameters Used in CALPUFF Modeling Analysis 6.2.3-3 Volume Source Stack Para meters in Developer and Discoverer Americas Used in CALPUFF Modeling Analysis 6.2.3-4 Short-Term Emission Rates from Stacks Used in Developer CALPUFF Modeling Analysis 6.2.3-5 Short-Term Speciated Emission Rates from Stacks Used in Developer CALPUFF Modeling Analysis 6.2.3-6 Long-Term Emission Rates from Stacks Used in Developer CALPUFF Modeling Analysis 6.2.3-7 Long-Term Speciated Emission Rates from Stacks Used in Developer CALPUFF Modeling Analysis 6.2.3-8 Short-Term Emission Rates from Stacks Used in Discoverer Americas CALPUFF Modeling Analysis 6.2.3-9 Short-Term Speciated Emission Ra tes from Stacks Used in Discoverer Americas CALPUFF Modeling Analysis 6.2.3-10 Long-Term Emission Rates from St acks Used in Discoverer Americas CALPUFF Modeling Analysis 6.2.3-11 Long-Term Speciated Emission Rates from Stacks Used in Discoverer Americas CALPUFF Modeling Analysis 6.2.3-12 Short-Term Speciated Emission Rates from Volume Sources Used in Developer and Discoverer Americas CALPUFF Modeling Analysis 6.2.3-13 Long-Term Speciated Emission Rates from Volume Sources Used in Developer and Discoverer Americas CALPUFF Modeling Analysis

### Outer Continental Shelf Title V and PSD Permit Application

vii 6.3.1-1 Maximum Predicted Class II Concentrations 6.4-1 Nearest Distance to Class I Area from Proposed Project 6.4.11-1 Maximum Predicted Class I Concentrations 6.4.11-2 Predicted Class I Area Deposition Fluxes 6.4.11-3 Predicted Extinction Change fo r Breton Wilderness, Method 8, Maersk 6-4.11-4 Predicted Extinction Change for Breton Wilderness, Method 8, Transocean 6.4.11-5 Predicted Extinction Change for Breton Wilderness, Method 8, Summary 6.5.3-1 Level I Developer VISCREEN Analysis Input Parameters
6.5.3-2 Level I Discoverer Americas VI SCREEN Analysis Input Parameters 6.5.3-3 Level I Developer and Discoverer Amer icas VISCREEN Analysis Input Parameters 6.5.3-4 Level 1 Developer VISCREEN Results
6.5.3-5 Level 1 Discoverer Am ericas VISCREEN Results

Figures

Figure 1: Site Map Figure 2: Developer Figure 3: Discoverer Americas Figure 4: CALPUFF Modeling Domain

Appendices

Appendix A: Part 71 Forms

Appendix B: Calculations

Appendix C: EIS Documentation

Appendix D: BACT Analysis/Supporting Documentation

Appendix E: Air Quality Analysis Documentation