UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

REGION 8

1595 Wynkoop Street

DENVER, CO 80202-1129

Phone 800-227-8917

hnp:/Iwww.epa.gov/region08

MAY J 6 2012

ReI': 8P-i\R

CERTIFIED MAIL -RETURN RECEIPT REQUESTED & ELECTRONIC MAIL

Raymond Gorka

Environmental/Regulatory Analyst

Slawson Exploration Company, Inc.

1675 Broadway, Suite 1600

Denver. Colorado 80202

RE: Request for (nfannation Pertaining 10 Emissions

Control Equipment at Oil and Gas Production Facilities on

the Fort Berthold Indian Reservation

Dear Mr. Gorka,

As you know, the Environmental Protection Agency (EPA) is expediting the development of a

Reservation-specific Fcdcrallrnplementation Plan (FIP) 10 establish federally enforceable requirements

to control volatile organic compound (VOC) emissions from oil and gas production activities (i.e.

storage tank and heater-treater emissions) within the exterior boundaries of the Fort Berthold Indian

Reservation (FBI R) in North Dakota. The EPA's action would requin: ownl:rs and operators or oil and

gas \\l'll production t~l\;ilitil:s to rL'ducc VOCs rL'k'l\Sl'U during the extraction and ~toragc ofhydrm.:arbul1

l'L''iI.'l'\ oil' l1uids priol' to bl'ing Iranslcl'!'I."U otT sitl.' fur sail- or treatment.

As pan afoul' effon to develop federally enforceable requirements under the FIP for oil and gas

production facilities, the EPA is evaluating voe emission control technologies employed by operators

on the FBIR. The agency is requesting information that will allow us to detemline the associated cost

impacts ofthe proposed emission control requjrements.

This infonnation request pertains to Slawson Exploration Company's (Slawson's) operations on the

FBIR. Please submit the infonnation requested below for Slawson's oil and gas exploration and

production facilities located on the FBJR:

I. Pkase provide the average cost incurred to develop a synthetic minor pernlit application lor an

oil and gas cxploration and production facility on the FBIR.

2, Please provide the average cost incurred on an annual basis for each of the following types of

control equipment:
a. A pit Flare capable of achieving 90% voe destruction efficiency:

b. A utility flare that is manufacturer certified for 98% VOC destruction efliciency or compliant

with the requirements for such flares at 40 eFR 60.18(b);

c. An enclosed combustor that is manufacturer certified for 98% voe destruction efficiency:

d. An auto-ignition system that includes, an electronically controlled ignition device,

continuous recording device, malfunction alarm, and remote notification system to ensure the

continued presence of a pilot flame during operation;

e. A continuous pilot flame system that includes a thermocouple, continuous recording device

malfunction alarm. and remote notification system to ensure the continued presence of a pilot

namc: and

f. 1\ \apor recO\'cr) system (VRlJ) for capture and recovery ofstoragc tank gases.

3. Please d{.·scrih~ the source urthc daln and the methodology Llsed in calculating items 2(a)

through 2(1). Thc averagc annual cost incuITed should include. but is not limited to, the following

list of cost clements:

a. The total capital investment (TCI) cost, which includes but is not limited to. the capital cost

for the primary control device, auxiliary equipment and instrumentation, piping, performance

testing, associated utilities, engineering and system design, freight. site preparation,

foundation. construction and field expenses, installation. etc.;

b. The operation and maintenance (O&M) cost (equipment. pilot fuel. etc.):

c. The annualized labor costs such as salary and benefits associated with

monitoringlrecordkeepinglreporting requirements and O&M activities: and

d. The annualized non-labor costs such as office supplies. vehicle costs. and infornlation

technolog) .

Cost elements for each type of control equipment should not overlap to avoid duplicative cost from

accumulating.

4. For each piece of equipment identified in 2(a) through 2(f), please provide the expected life for

each component Any costs associated with maintenance over the life of the unit should be

annualized and included as part of the annual O&M costs reported.

5. Please pro\ ide the :.lVeragc cost as!'ociated with the sale of rcco\crahlc product from a VRLJ.

Due to the expedited development ofthe FIP. your prompt cooperation is appreciated. We request that

this infonnation be provided to the EPA within 14 calendar days of receipt as indicated by the earlier of

certified receipt or electronic email for this letter. Electronic submission is preferred. Please submit

your response to Eric Wortman at wortman.eric(@;epa.gov.

We request that a duly authorized officer or agent of Slawson certify as true. accurate. and complete the

response to this infonnation by signing the enclosed Statement ofCertification (Attachment A) and

returning it with the response. Such officer or agent must have sufficient knowledge and authority to

make such representations on behalf of Slawson.

PUr!'lUanl to 40 C.F.R. Part 2. Subpart 13. Slawson is entitled to asscrt a busincss conlidcntialit~ claim

cO\cring any part of the submilled information.l\llachment B specifics the assertion and substantiation

requirements for business conlidentiality claims. Failure to assert such a claim makes the submitted

2
information subject to public disclosure upon request and without further notice to you. pursuant to the

Freedom of Information Act. 5 U.S.C. Section 552. Information subject to a business confidentialit)

claim rna) only be made available to the public in accordance with 40 C.F.R. Part 2. Subpart B.

It is the EPA's understanding that the average emission control device cost datu for all ofSlawson's

facilities on the FBIR will likely not be entitled to confidential treatment as opposed to specilic cost data

for each facility. ffyou do claim confidentiality. we request that you submit thai portion of the response

(only that specific portion for which you are claiming confidential treatment) separately from all other

information.

Also enclosed with this Request for Information is a Small Business Regulatory Enforcement and

Fairness Act (SBREFA) infonnatiol1 sheet (see Attachment C).

rhl..' requin:mcl1l~ of this ICllcr an,' not subjcl,;t to thl..' I>apt'r\\ork Rcdllctiol1 Act of J980. -lot LJ .S.C'. *350 I

l'f H'Cf.

If the infom13tion requested in this leller has previously been submilled to the EPA. please let us kno\\.

We appreciate your cooperation in this matter. If you have any questions please contact Eric Wortman.

ormy staff, at 303-312-6649.

Carl

GJD~ Daly. Director

Air Program

Enclosures

cc: Khcm SUlhiwan, Permilling Agent, Slawson Exploration Company

Matt Houston, Rocky Mountain Division Operations Manager, Slawson Exploration Company

3
Attachment A

STATEMENT OF CERTIFICATION

I certify under penalty oflaw that I have personally examined and am familiar with the information

submitted in this document and all attachments and thaI. based on my inquiry of those individuals

immediately responsible for obtaining information. I believe that the information is true. accurate. and

c{)mplct~. I am 3\\arC that lhere are significanl penalties for submitting raise infonnation. including the

p{)<;~ibilil~ of line or imprisonment.

Signature

Title

Date
Atlachment 8

Confidential Business Information (COl)

Assertion and Substantiation Requirements

1. Assertion Requirements

You rna) assert a business confidentiality claim covering all or part of the infonnation requested in the

,lltJchl:d It..'1l1.'r. as pro\ idt.'d in 40 C.F.R. §2.203(b). If portions ora document hmt:' CBI claims. th~n

please prO\ ide a redacted version that \\ould remove an) eBl information. "0 make a contidt.'ntialit)

c1'lim. submit the reqlli:stcd infonnation and indicate that you are making <1 claim of confidential it) . 1\11)

document over which you make a claim of confidentiality should be marked by placing on or attaching

to the infonnation, at the time it is submined to U.S. EPA. a cover sheet. stamped or typed legend, or

other suitable foml of notice employing language such as "trade secret" or "proprietary" or "company

confidential" and a date ifany when lhe information should no longer be treated as confidential.

Information covered by such a claim will be disclosed by lhe United States Environmental Protection

Agency (U.S. EPA) only to the extent permined and by means of the procedures sct forth by Section

114(c) of the Clean Air Act (the Act), and 40 C.F.R. Part 2. Allegedly contidcntial portions orotherwis~

non·confidential documents should be clearly identified. U.S. EPA will construe the failure to furnish ,1

confidentiality claim \\ ith ) our response to the attached leuer as a wai\ er of that claim. and lht'

infonnation may be made available to the public without further notice to you.

Please segregate personnel, medical and similar files from your resJX>nses and include that infonnation

on separate sheet(s) marked as "Personal Privacy Infonnalion" given that disclosure ofsuch infonnation

to the general public may constitute an invasion of privacy.

2. Substantiation Requirements

All confidentiality claims are subject to U.S. EPA verification and must be made in accordancl: \\ ith 40

c.r.R. §2.208 which provides in pHl1 that you satistllctoril) sho\\ that you have taken rt'asonablc

llll::lSurt.'s to protl'Cllhe conlidl:ntialit) orlhe ill/ormatiun and that you intend to continll<..' to do so: and

that thl: inlimnCltion is not and has not been rl:tlsol1ably obtainabll: by kgitimatc ll'll.'allS without) our

(.:onscnl.

As explained above, if you assert a CBl claim in responding to the attached letter, please specify which

portions of the information you consider confidential. You must be specific by page, paragraph, and

sentence when identifying the information subjeci to your claim. Any infonnation nol specifically

idenlified as subject to confidentiality claim may be disclosed to the public and a requestor without

further notice to you. For each ilem or class ofinfonnation that you identify as being subject to CSI.

please answer the following questions. giving as much detail as possible:

a. For what period of time do you request thai the inlonnation be mainlained as confidential. ~.g ..

until a certain date, until the occurrence ofa specified event, or pennanently? If the occurrence

ora specific event will create the need for confidentiality. please specify that event.

b. Infonnation submitted to U.S. EPA becomes stalc over time. Why should the information you

claim as confidential be protected for the time period specified in your answer to question #I?

c, What measures have you taken to protect the information claimed as confidential? Have you

disclosed the information to anyone other than a governmental body or someone who is bound
by an agreemenl not 10 disclose the infonnalion further? If so. why should Ihe infornlalion still

be considercd confidential?

d. Is the infonnation contained in any publicly available material such as the Internet, publicly

available databases. promotional publications. annual reports, or articles? Is there any means by

which a member ofthe public could obtain acccss to the infonnation? Is the infonnation of a

kind that you would customarily not release to the public?

e. lias any govcrnmental body made a dctemlinalion as 10 the confidentiality oflhe information? If

so. rlease attach a cop~ of the dctermination.

!. For cach C3tCgor) of in tormation claimcd as conlidcntial. explain \\ith specilicit) \\h) rckasc of

the information is likely to cause Sllbstalltial harm 10 your competitive position. Explain Ihe

spccilic llature of those harmful effects, why they should be viewcd as substantial, and the causal

relationship between disclosure and such harmful effects. How could your competitors make usc

ofthis information to your detriment?

g. Do you assert that the infonnation is submitted on a voluntary or a mandatory basis? Please

explain the reason for your assertion. If you assert that the infornlation is voluntarily submitted

infonnation. explain whether and why disclosure ofthe infonnalion would tend to lessen the

availability to U.S. EPA ofsimilar information in the future.

h. An) olher issue you deem relevant (including. if pertinent reasons why )OU believe that the

infonnation you claim to be CBI is not emission or emuent data.)

Please note that emission data, provided under Section 114 ofthe Act. 42 U.S.C. § 7414, is not entitled

to confidential treatment under 40 C.F.R. Part 2. "Emission data" means, with reference to any source of

emission of any substancc into the air.

Information ncccssary to detcrmine the identity. amount. frequenc)'. concentration. or other

characteristics (to the cxtcnt related to air qual ity) 01" any emission which has bccn cmitted by the source

(or ol"an) pollutant n::-ulting frolll al1~ emission hy the source). or illl)' combination of the foregoing;

a. Infonnalion necessary to determine the idcnlit). amount. frequcnc). conecntration. or other

characteristics (to the extent rclated to air quality) of the emissions which. under an applicablc

standard or limitation. the source was authorized to emit (including, to the extent necessary for

such purposes, a description of the manner and ratc of operation ofthe source); and

b. A general description ofthe location and/or nature of the source to the extent necessary to

identify the source and to distinguish it from other sources (including. to the extent necessary for

such purposes. a description ofthe device, installation, or operation constituting the source). 40

C.F.R. §§ 2.30 l(a)(2Xi)(A). (B) and (C).

I"mission data includes. but is not limitcd to. service records stating thc amount of refrigerant added to a

unit or reclaimed from a unit.

2
You bear the burden ofsubstanliating your confidentiality claim. Conclusory allegations"" ill be gi\ 1:11

lillie or no "eight in the dctemlination. In substantiating your CSI c1aim(s), U.S. EPA requires that )OU

10 bracket all text so claimed and mark it "esl". Information so designated will be disclosed by U.S.

EPA only to the extent allowed by, and by means of the procedures set forth in, 40 C.F.R. Part 2,

Subpart B. If you fail to claim the information as confidential, it may be made available to the public

without further notice to you.

3
oEPA

United Stilt..

Environmental Protection

Agency

Altachmcnl C

otflce of Enforcement and Compliance AUUnll'lC8 (2201A)

EPA 300-F-030001 May 2003

u. S. EPA Small Business Resources

I

,you own a small bUSiness, the United Stales Environmental Protection Agency (EPA) offers

a variety of compliance assistance and tools to assist you in complying with federal and state

environmental laws. These resources can help you understand your environmental obligations, improve

compliance and find cost·elfective ways to comply through the use of pollution prevention and other

innovative technologies.

Hotllnes, Helpllnes and

Clearinghouses

EPAsponsors approximately 89lr98 hodines and cleannghouses that pI'OVlde convenienl as5lStaoce regarding

I!fWlrormenta! requwements

The National Environmental Comphnce Assistance

Clearinghouse provides QUick access to comP'iaJ'lCQ

assistance toots, contacts. and planned activities lrom the

U.S. EPA, SlaleS, and other compliance assistance

providers: tmp:llwww.epa.gov/clearinQl'louse

Pottutlon Prevention Clearinghouse

~;jIwww.epa.gov/opptintrllbralY/ppicindex.htm

EPA's Small Business Ombudsman Hotline can

provide a list of all the hoI hnes and assist In determining Ihe hoiline best meellng your needs:

(BOO) 368·5888

Emergency Planning and Community Righl·To-KnowAet

(800) 424-9346

National Response Center (to report oil and hazardoU5

substance spills)

(800) 424..fl802

Toxies SobstanoM and Asbestos lnfonnatlon

(202)554-1404

safe Drinking Water

(800) 426-4791

Stratospheric Ozone and Ref~tsInfonnetlon

(800) 296-1996

Clean Air Technology center

(919) 541.{l8OO

Wetlands Helpllne

(BOO) 832-7828

EPA Websltes

EPA has severallntemet sites that provide useful compli·

ance assistance informatIOn and matenalS lOt small

buSinesses. If you don't have access to the Intemel at

your buSiness, many public libranes provide access to the

Internet at mlnlmsl or no cost

EPA's Horne Page

hltp:llwww.epa.gov

Small Business Assistance Program

hnp:/lwww.epa.gow'ltrv'sbap

Office of Enfor~mentand Compliance Assurance

htlpJ/WYIw.epa.gov/comptiance

Compliance A.al.tance Home Page

hltp:liwww.epa.govlcomphancei8SSiStanc8

Office of Regulatory Enforcement

htlp:/lwww.epa·oov/complianceIClvllflr'!de_ hlml

Office of Site Remediation Enforcement

htlp·//WYIw.epa.gov/compiiancelcteanup

Innovative Programs for EnvlronmMtal Performance

hItpJ/www.epa.govlpartners

Small Business Ombudsman

www.sba.gov/ombudsman

Office of Enforcement and Compliance ASSl.rance; http://wwwepagovfcompJl8nce

R9I. "'Q1" _._.'__ 

... _
U.S. EPA SMALL BUSINESS RESOURCES

Compliance Assistance Centers

In pannelstup WIth IIldustsy, umver.il!leS, and other federal

and state ageoocs, EPA has establiShed national Comphance AssIstance Centers that proVIde Inlemet and iaxback'

assistance seMC8S fOf several industries with many small

businesses. The folloY.ing Compliance Assistance Centers

can be accessed through the Cente(s gateway at http}1

www.asstSW'Ce08flters,netor by ca~ing the phone numbers

below and at !heir respectlve websites:

Metal Finishing

(1-800-AT-NMFRC or www,nmIrc.org)

Printing

(1 ,686·USPNEAC Of wwwpneacorg)

Automotive Service and Repair

(l·888-GAN-UNK or""lwwccar.greenknk 0111)

Agriculture

(1-888-663-2155 or www,epa..gov/agncultureJ

Printed Wiring Board Manufacturing

(1-734-995-4911orwww,pwbrc.org)

The Chemlcallndu8try

(1-8Q0.6n-6048 or www.cnemaJliance.Ofg)

The Transportation Industry

(1-888-459-0656 or www.transource.Ofg)

The Paints and Coatings Center

(1-800-286·6372 or wwwpalntcenterOfg)

Three new centers are under development for the auto

salvage seclor.the construction Industry ami U S Mexican border waste Issues

State Agencies

Many state agencies have established comphance assistance programs that provide on-site ami other types of

assistance. Contact your local state environmental agency

10f more lnlormalion. For assistance in reaching Slale

agencies, call EPA's Small Business Ombudsman at

(800)-368-5888 or visit the Small Business Environmental

Homepage at hnp:llwww.smallblz-enviroweb.org!statehlml.

Compliance Incentives

EPA provides Incentives lor envllonmentaJ compliance. By

partlClpatLng In compliance aSSlstance programs or

voluntarily discloSing and promptly correcting VIOlations,

businesses may be eligible lor penalty waivers or reductions. EPA has two policies that potentially apply to small

businesses: TheAtJdft Policy (http://www.epa,gov/compti.

anceflflCentJveslaudlting) and the Small Business Policy

(http://www.epa.gov/compliancefncentlveslsmaJlbusiness).

These do not apply If an enforcement action has a,ready

been initiated,

Commenting on Federal Enforcement

Actions and Compliance Activities

The Small Business Regulatory Enforcement Falfness Act

(SBREFA) established an ombudsman rsBAEFAOmbudsman') and 10 Regional Fairness Boards to receive comments

from small busnesses about federal agency entorcement

actions, The SBREFA Ombudsman wiI annually rate each

agencys responSlVeOeSS to small businesses, If you beReve

mat you lall witI1ln the Small BuSiness AdnunrSltatlorl's

dehrntion of a smaK buSIness (based 00 your North Amencan

I stry ClassrtlCalJOO System (NAICSl deSIgnatIOn number

01 e~ees Of annuallscelp's. defuled al 13 C F R

121 201. In most cases thIS means a buSinesS ~,th 500 Of

fewer employees), and WISh to comment 00 feoelal enforcement and compll8f'lC8 activllleS, call the SBAEFA

Ombudsman's toII4ree numberal 1-886-AEG-FAIA(1-888-

734-3247),

Every small business lhal is the subject of an enforcement

or compliance action is entlUed to commen1 on the

Agency's actions without fear of retaliation. EPA

employees are prohibited from USing enlOfcement or any

other means of retaliation aga,nst any member of the

regulaTed community because the regulated communlly

previously commented on its activities

Your Duty to Comply

II you recelye compliance assistance or sutlm t comments

to tne SBAEFAOmbudsman or Reg,onal Fairness Boards

you stltl have the duty to comply With the law. Including

prOViding timely responses to EPA information reQuests,

administrative or cMI complaints, other enforcement

actions Of communications The aSSislance Information

and comment processes do nOt give you any new rights or

delenses in any enforcement aclion. These processes

also do not allect EPA's obligation to protect public heallh

orlhe environment under any olthe environmental statutes

it enforces, including the fight to take emergency remedial

or emergency response actions when appropriate Those

daclSlons Will be based On the facts in each Situation The

SBAEFAOmbudsman and Fairness Boards do nOl

panlclpate In resolVing EPA's entorcement actions Also,

remember lhal to preserve your nghts. you need to comply

wlIn all rules governing ltIe enforcement process.

EPA Is d/sstlmlnatfng this Information to you

wHhoutrTIlJlcing a det~l~tion that yourbusiness

or organization Is II small business 8S deffned by

Sectfon 222 of tIM Small Business Rttgu/atory

Enfo~ment FaIrness Act (SBREFA) or related

provfsJom,