1148.1-1 (Adopted March 5, 2004)

RULE 1148.1. OIL AND GAS PRODUCTION WELLS

(a) Purpose The purpose of this rule is to reduce emissions of volatile organic compounds (VOCs) from the wellheads, the well cella rs and the handling of produced gas at oil and gas production facilities.

(b) Applicability This rule applies to onshore oil produci ng wells, well cellars and produced gas handling activities at onshore facilities where petroleum and processed gas are produced, gathered, separated, processed an d stored. Natural gas distribution, transmission and associated storage operati ons are not subject to the requirements
of this rule.

(c) Definitions For the purpose of this rule, the following definitions shall apply: (1) ABANDONED WELL is a well that has been certified by the California Department of Conservation, Divisi on of Oil, Gas and Geothermal Resources as permanently closed and non-operational. (2) FACILITY is any equipment orgroup of equipment or other VOCemitting activities, which are located on one or more contiguous properties within the District, in actual physical contact or separated solely by a public roadway or other public right-o f-way, and are owned or operated by the same person (or by persons unde r common control). Such abovedescribed groups, if noncontiguous, butconnected only by land carrying a pipeline, shall not be considered one facility. (3) OIL PRODUCING WELL is a we ll which produces crude oil. (4) PRODUCED GAS is organic compounds that are both gaseous at standard temperature and pressure and are associated with the production, gathering, separation or processing of crude oil. (5) SENSITIVE RECEPTOR is a school (kindergarten through grade 12), licensed daycare center, hosp ital, or convalescent home. (6) STUFFING BOX is a packing gland, chamber or “box” used to hold packing material compressed around a moving pump rod to reduce the escape of gas or liquid.Rule 1148.1 (cont.) (Adopted March 5, 2004)

1148.1-2 (7) TOTAL ORGANIC COMPOUNDS (TOC) is the concentration of gaseous organic compounds determined according to the test method in paragraph (g)(1). (8) VOLATILE ORGANIC COMPOUND is as defined in Rule 102. (9) WELL CELLAR is a lined or un lined containment surrounding one or more oil wells, allowing access to th e wellhead components for servicing
and/or installation of blow out prevention equipment. (10) WELLHEAD is an asse mbly of valves mounted to the casing head of an oil well through which a well is produ ced. The wellhead is connected to an oil production line and in some cases to a gas casing line.

(d) Requirements (1) The operator shall not allow a conc entration of a TOC greater than 500 ppm in the well cellar. (2) Effective July 1, 2004, the operator of an oil and gas production facility shall not allow any valve to be opene d at the wellhead unless a portable
container is used to catch and contai n organic liquid that would otherwise drop into the well cellar or onto the ground. Such container shall be kept closed to the atmosphere when it contai ns organic liquid and is not in use. (3) The operator of an oil and gas production facility shall not allow organic liquid to be stored in a well cella r. During periods of equipment maintenance, well plugging, abandonment operations, or well workover, the operator shall pump out or remove organic liquid that accumulates in the well cellar no later than two (2) days after the maintenance, drilling, well plugging, abandonment or workover activ ity at the well is completed. The operator may store organic liquid ina portable enclosed storage vessel provided the vessel is equipped with air pollution control equipment to
reduce the TOC emissions to less than 250 ppm outlet concentration according to the test method in paragraph (g)(1), except where safety requirements established in a written company safety manual or policy deem it impractical during maintena nce, plugging, abandonment, well workover or drilling operations. The operator shall conduct a TOC measurement according to the test method in paragraph (g)(1) at the time of filling, and weekly ther eafter to ensure that the system achieves the emission standard of 250 ppm.Rule 1148.1 (cont.) (Adopted March 5, 2004)

1148.1-3 (4) The operator of an oil and gas production facility shall pump out the organic liquid accumulated in the well cel lar immediately before a well is
steamed or after a wellhead is steam cleaned. (5) The operator of an oil and gas pr oduction facility shall pump out or remove organic liquid accumulated in the well cellar within five (5) calendar days, or by close of the follo wing business day if the well cellar is located within 100 meters of a sensitive receptor when the TOC concentration in the well cellar is gr eater than 250 ppm as determined by the test method in paragraph (g)(1). In lieu of the method in paragraph (g)(1), an operator may measure the depth of accumulate d organic liquid and pump-out the liquid when the de pth exceeds two (2) inches. The organic liquid depth may be measured using a “copper coat” gauge or any other measuring instrument determin ed to be acceptable by the Executive
Officer. (6) Effective January 1, 2006, the opera tor of an oil and gas production facility shall not allow natural gas or produced gas to be vented into the atmosphere. The emissions of pr oduced gas shall be collected and controlled using one of the following: (A) A system handling gas for fuel , sale, or underground injection; or (B) A device, approved by the Execu tive Officer, with a VOC vapor removal efficiency demonstrated to be at least 95% by weight per test method of paragraph (g)(2) or by demonstrating an outlet VOC concentration of 50 ppm according to the test method in paragraph (g)(1). If the control device us es supplemental natural gas to control VOC, it shall be equipped with a device that automatically shuts off the flow of natural gas inthe event of a flame-out or pilot
failure. (7) Except as Rule 1173 applies to components of produced gas handling equipment located within 100 meters of a sensitive receptor, the operator shall repair any gaseous leaks of 250 ppm TOC or greater by the close of the business day following the leak disc overy or take actions to prevent
the release of TOC emissions to the atmosphere until repairs have been completed. (8) Effective March 5, 2004, unless approved in writing by the Executive Officer, CARB, and USEPA as having no significant emissions impacts, no person shall:Rule 1148.1 (cont.) (Adopted March 5, 2004)

1148.1-4 (A) Remove or otherwise render ineffective a well cellar at an oil and gas production well except for purposes of abandonment to be certified by the California Department of Conser vation, Division of Oil, Gas and Geothermal Resources; or (B) Drill a new oil and gas produc tion well unless a well cellar is
installed for containment of fluids.

(e) Operator Inspection Requirements (1) Effective July 1, 2004, the operator shall visually inspect: (A) Any stuffing box not located in or above a well cellar daily; (B) Any stuffing box located in or above a well cellar weekly; or (C) Any stuffing box or produced ga s handling and control equipment located 100 meters or less from a sensitive receptor daily. Receptor distance shall be determined as the distance measured from the stuffing box or produc ed gas handling and control equipment to the property line of the nearest sensitive receptor. (2) Notwithstanding the requirements of subparagraphs (e)(1)(A) and (e)(1)(B), the operator shall perform monthly visual inspections of any stuffing box fitted with a stuffing box adap ter, a closed crude oil collection container, and a well shut off switch that will shut down the well when the
container is full. (3) Effective, July 1, 2004, except for well cellars listed under subdivision (h), the operator shall quarterly, perform an inspection of all well cellars according to the test method in paragraph (g)(1). (4) Within two (2) days of discovery of organic liquid leakage observed from the inspections pursuant to paragraph (e)(1)(A) or (e)(1)(B) and within 8 hours pursuant to paragraph (e)(1)(C ), the operator shall conduct an inspection of the stuffing box and well cellar according to the test method in paragraph (g)(1) or measure the organic liquid depth using a “copper coat” gauge or any other measuri ng instrument determined to be acceptable by the Executive Officer.

(f) Recordkeeping Requirements (1) The operator shall maintain all records that document the purchase and installation of the stuffing box adapter( s) to demonstrat e compliance withRule 1148.1 (cont.) (Adopted March 5, 2004)

1148.1-5 paragraph (e)(2) at the facility or f acility headquarters and such records shall be made available to the Executive Officer upon request. (2) The operator shall mainta in all records of inspec tion, repair and pump-outs required by this rule in a form appr oved by the Executive Officer at the facility or facility headquarters for a period of three years or a period of five years for a Title V facility and su ch records shall be made available to the Executive Officer upon request. (3) The operator shall maintain production records and other applicable information and documents sufficient to demonstrate eligibility for any exemption claimed pursuant to subdivis ion (h) and make them available to the Executive Officer upon request.

(g) Test Methods (1) Measurement of TOC or VOC c oncentrations shall be conducted according to the United States Environmental Protection Agency (USEPA) Reference Method 21 using anappropriate analyzer calibrated with methane. The analyzer shall becalibrated before inspection each day prior to use. For the purpose of demonstrating compliance with the TOC concentration requirements in paragr aphs (d)(1) and (d)(5), measurement
of the TOC concentrations shall be conducted at a distance of no more than three (3) inches above the orga nic liquid surface in the well cellar. (2) Determination of Efficiency of Emission Control Systems The control equipment efficiency of an emission control system, on a mass emissions basis, and the VOC concentrations in the exhaust gases, measured and calculated as carbon, sh all be determined by USEPA Test Methods 25, 25A, or District Me thod 25.1 - Determination of Total Gaseous Non-Methane Organic Emissions as Carbon or District Method
25.3 Determination of Low Concentr ation Non-Methane Non-Ethane Organic Compound Emissions from CleanFueled Combustion Sources, as applicable. US EPA Test Method 1 8, or ARB Method 422 shall be used to determine emissions of exempt compounds. (3) Laboratory Approval Sampling, analysis, and reporting shall be conducted by a laboratory that has been approved under the District Laboratory Approval Program (LAP)
for the cited District reference te st methods, where LAP approval is
available. For District reference test methods for which no LAP programRule 1148.1 (cont.) (Adopted March 5, 2004)

1148.1-6 is available, the LAP approval requ irement shall become effective one year after the date that the LAP program becomes available for that
District reference test method. (4) Equivalent Test Methods A person may use other methods to determine compliance with this rule provided it is demonstrated to be e quivalent and appr oved in writing by the Executive Officers of the District, the California Air Resources Board, and the Regional Administrator of the USEPA, or their designees.

(h) Exemptions (1) This rule shall not apply to well cellars associated exclusively with: (A) Oil and gas production wells that have been idle and out of operation for more than six months with no liquid leaks or accumulation of crude oil in the well cellar as indicated by production records. All provisions of this rule shall apply upon commencement of operation of the idle well. (B) Wells that have been certified as an abandoned well by the California Department of Conser vation, Division of Oil, Gas and
Geothermal Resources. (C) Water, gas or steam injection wells. (2) The provisions of paragraphs (d)(5), (d)(6) and (d)(7) shall not apply to any well or produced gas handling system undergoing maintenance and repair, well drilling and well ab andonment operations, provided the maintenance and repair, drilling or abandonment operation is conducted in
a manner that minimizes emissions to the atmosphere, and is consistent with the written company safety manual or policy. (3) The provisions of paragraph (d)(1), (d)(2) and (d)(5) shall not apply to any
well cellar used in emer gencies at oil production facilities, if clean-up procedures are implemented with in 24 hours after each emergency occurrence and completed with in ten (10) calendar days. (4) The provisions of paragraph (d)(6) of this rule shall not apply to oil and gas production wells in operation as of March 5, 2004, that produce no more than 1 barrel per day of oil or200 standard cubic feet per day of produced gas per facility, provided th at such production wells are not located within 100 meters of a sensitive receptor, and provided the production can be demonstrated fr om annual production records.Rule 1148.1 (cont.) (Adopted March 5, 2004)

1148.1-7 Demonstration of produced gas pr oduction shall be based on metered measurement of the gas.