TELEPHONE CONTACT SUMMARY – 0210426.003.006

FROM: Karen Schaffner, RTI International

DATE OF CONTACT: February 23, 2010

ORGANIZATION CONTACTED:

American Petroleum Institute and Members

Participants:

Matt Todd, API Carol Butero, KinderMorgan Dirk Cockrum, KinderMorgan Rob Ferry, TGB Clay Freeberg, Chevron Bob Hermanson, BP Shari Keller, Shell John Lowe, Chevron

Jack McClure Bob Morehouse, ExxonMobil
Peter Weaver, ILTA

Other API members

Steve Shedd, EPA Karen Schaffner, RTI

SUMMARY OF CONTACT

The purpose of the conference call was to provide an update on the risk and technology review (RTR) project at EPA for the marine vessel load ing source category. In particular, the discussion focused on the RTR update; the startup, shutdown, and malfunction (SSM) vacature for the 40 CFR part 63, subpart A General Provisions; the Natural Resources Defense Council (NRDC) petition (dated J anuary 2009) to fix missing standards; and several other long-term issues related to marine vessels.

The original proposal for the RTR project was in Octobe r 2008, and EPA received comment that the NEI database analysis was not repres entative of the source category. EPA is reviewing the NEI and also looking at the Waterbor ne Commerce Statistics Center (WCSC) database. API members suggested that EPA c ontact states for more information regarding the facilities in the source cat egory.

Certain parts of the General Provisions related to SSM pro visions were vacated. EPA is reviewing rules to revise startup and shutdown provisions.2

The NRDC petition dated January 2009 identified two subcategorie s in the MVL rule that needed to be addressed: existing major sources with MVL em issions less than 10 or 25 tons per year (ton/yr) emissions, and existing offshore major sources. EPA is reviewing information on these subcategories and asked whether AP I has additional information on state regulations for MVL. EPA is currently negotiatin g the schedule for the RTR petition letter and the dates for proposal and promulgati on have not been finalized.

EPA is considering sending out a section 114 information col lection request (ICR) survey for the MVL source category to support the RTR project. EPA is currently working on a draft of the ICR survey. Industry will have an opportunity to review the survey and then EPA will send to approximately nine companies.

In addition to the RTR project, EPA is also looking at s everal long-term issues related to marine vessels but that may not necessarily be part of the MVL source category. EPA reviewed several of the issues and asked for input from API. EPA asked about tank vessel pressure relief when the vessel comes in to th e dock to unload and whether there are releases prior to connection and unloading of the vess el. EPA asked about wastewater issues related to nonsegregated ballast water. Some ves sels may still be conducting nonsegregated ballasting, and at some facilities, Valdez was mentioned, the facility collects nonsegregated ballast water and treats it through their wastewater system. API members noted that most vessels do not conduct nonsegregat ed ballasting. EPA asked about tank cleaning, whether this was conducted onsite or of fsite of the MVL facility, and whether vessels typically switch, or change, the commo dity loaded. API members noted that cleaning and degassing vessels would likely be conducted off site. API members

noted that use of dedicated vs. nondedicated vessels vari es from facility to facility. EPA also asked about lightering operations and noted that NES CAUM is working on a white paper related to this issue and noted that Delaware has a v apor balancing rule related to lightering. For inland barges, lightering is not typica lly done and would only occur in emergency situations where a barge was stuck. EPA asked a bout marine vessel leaks and vent losses while in-transit. There is an ORD study re lated to this topic. EPA asked whether MVL terminals own the vessels or owned by anot her party. API members noted that ownership of vessels varies across the industry.