IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION BCCA APPEAL GROUP, TEXAS ASSOCIAnON OF BUSINESS , AND TEXAS OIL AND GAS ASSOCIATION Plaintiffs,


### v. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, LISA P. JACKSON, in her official capacity as Administrator ofthe United States Environmental Protection Agency, and Lawrence E. Starfield, in his official capacity as Acting Regional Administrator for Region VI ofthe United States Environmental Protection Agency, Defendants. 

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SETTLEMENT AGREEMENT



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# - WHEREAS, Plaintiffs BCCA Appeal Group, Texas Association of Business, and Texas Oil and Gas Association (collectively "Plaintiffs"), filed a Complaint in this action on August 25, 2008, against Defendants the United States Environmental Protection Agency, the Administrator of the United States Environmental Protection Agency, and the Regional Administrator for Region VI ofthe United States Environmental Protection Agency (collectively "EPA"); and WHEREAS, Plaintiffs' Complaint alleges that EPA has. failed to perform nondiscretionary duties pursuant to Section 110(k)(1 )(B) and (k)(2) ofthe federal Clean Air Act ("CAA"), 42 U.S .C. 

### § 740l(k)(l)(B) and (k)(2), to take approval action on numerous Texas States

### Implementation Plan ("SIP") air quality revisions by the statutory deadline (collectively the " SIP Revisions"); and WHEREAS, Plaintiffs and EPA (collectively the "Parties") have entered into a Consent Decree that, when entered by the court, will govern the resolution ofcertain ofPlaintiffs' claims; and WHEREAS, in order to avoid protracted and costly litigation and to preserve judicial resources the Parties wish to implement this Settlement Agreement ("Agreement") to govern the resolution ofmatters not addressed in the Consent Decree; NOW, THEREFORE, the Parties, intending to be bound by this Agreement, hereby stipulate and agree as follows : 1. Concurrently with the lodging of the proposed Consent Decree, the Parties shall notify the court of this Agreement and request that this case be stayed in its entirety pending completion of, and subject to, the terms ofthe Consent Decree and this Agreement. 2. By the dates set forth in the Schedule

. attached 

### hereto as Exhibit A, EPA shall sign for publication in the Federal Register a notice(s) of final rulemaking to approve or disapprove,

. .,' in whole or in part, the SIP Revisions identified on that Exhibit. EPA shall promptly deliver the notice(s) to the Office of the Federal Register for publication

. EPA shall mail a copy of the notice(s) ofrulemaking to Plaintiffs within five' business days following signature. 3

. If EPA fails to take action as set forth in Paragraph 2, Plaintiffs ' sole remedy under this Agreement shall be the right to ask the court to lift the stay ofproceedings with regard to claims governed by this Agreement and establish a schedule for further proceedings. 4. The parties agree and acknowledge that before this Agreement is final, EPA must provide notice in the Federal Register and an opportunity for comment pursuant to CAA section113(g), 42 U.S.C. § 7413(g). EPA will expeditiously prepare such notice and forward it to the Office of Federal Register after execution of this Agreement. After this Agreement has undergone an opportunity for notice and comment, the Administrator of EPA ("Administrator") and/or the Attorney General, as appropriate, shall promptly consider any such written comments in determining whether to withdraw or withhold consent to this Agreement, in accordance with CAA section 113(g), 42 U.S.C. 

### § 7413(g)

. Once the Administrator and/or the Attorney General elect whether or not to withdraw or withhold their consent to this Agreement, EPA shall provide written notice to Plaintiffs as expeditiously as possible. This Agreement shall become final on the date that EPA provides such notice to Plaintiffs. IfEPA does not provide such notice within 90 days after notice of the Agreement is published in the Federal Register, Plaintiffs' sole remedy shall be the right to ask the Court to lift the stay ofproceedings with regard to the claims governed by this Agreement and establish a schedule for further proceedings. 5. The commitments of EPA in this Settlement Agreement are subject to the availability of appropriated funds. No provision of this Agreement shall be interpreted as or constitute a requirement that EPA obligate or pay funds in contravention ofthe Anti-Deficiency

< • • ' Act, 31 U.S.C. 

### § 1341, or any other applicable federal statute. 6. Nothing in this Agreement shall be construed to limit or modify the discretion accorded EPA by the Clean Air Act or by general principles of administrative law in taking the actions referred to in Paragraph 2. 7. Nothing in this Agreement shall be considered to limit or modify any discretion EPA may have to alter, amend, or revise the actions taken pursuant to Paragraph 2 of this Agreement.8. Nothing in this Agreement shall be construed as an admission of any issue offact or law, nor to waive or limit any claim or defense, on any grounds, related to any fmal action EPA may take pursuant to Paragraph 2 above. 9. Except as explicitly set forth in this Agreement, the Parties retain all rights, claims, and defenses they may otherwise have. 10. Any notices required or provided for by this Agreement shall be in writing, effective upon receipt, and sent to the following: For Plaintiffs: Matthew L. Kuryla Baker Botts LLP One Shell Plaza 910 Louisiana Street Houston, Texas 77002 telephone: (713).229-1234 email: matthew.kuryla@bakerbotts.com

For Defendants: Victoria Johnson United States Environmental Protection Agency Region VI Office ofRegional Counsel 1445 Ross Avenue, Suite 1200 Dallas, TX 75202-2733 telephone: (214) 665-8027 email: johnson.victoria®epa.gov
Scott Jordan, Attorney, Air and Radiation Law Office Office ofGeneral Counsel U.S. Environmental Protection Agency 1200 Pennsylvania Ave., NW. Washington, D.C. 20460 telephone: (214) 564-7508 email: jordan.scott@epa.gov 

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,Angeline Purdy Environmental Defense Section Environment and Natural Resources Division United States Department ofJustice P.O

. Box 23986 Washington, D.C. 20026-3986 Attn: DJ 

### # 90-5-2-4-16726 telephone: (202) 514-0996 Email: angeline.purdy@usdoj .gov

or such other person as either party may subsequently identify in writing to the other party. 11. The undersigned representatives ofeach Party certify that they are fully
authorized by the Party that they represent to bind that Party to the terms ofthis Agreement.



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# -SO AGREED:
For Plaintiffs
Matthew L. Kury a Baker Botts LLP One Shell Plaza 910 Louisiana Street Houston, Texas 77002 telephone: (713) 229-1234 fax: (713) 229-2714 matthew.kuryla@bakerbotts.com

# Dated:~

For Defendants 

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Angeline Purd Environmental ense Se ion United States Department of Post Office Box 23986 Washington, D.C. 20026-3986 telephone: (202) 514-0996 fax: (202) 514-8865 angeline.purdy@usdoj . gov

Dated:

_IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF TEXAS DALLAS DIVISION BCCA APPEAL GROUP, TEXAS ASSOCIATION OF BUSINESS, AND TEXAS OIL AND GAS ASSOCIATION Plaintiffs,

v. UNITED STATES ENVIRONMENTAL PROTECTION AGENCY, LISA P. JACKSON, in her official capacity as Administrator ofthe United States Environmental Protection Agency, and Lawrence E. Starfield, in his official capacity as Acting Regional Administrator for Region VI ofthe United States Environmental Protection Agency,
Defendants. § § 

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### § § Case No.3-08CVI491-G

EXHIBIT A TO SETTLEMENT AGREEMENT RULE ACTION DATE Public Participation Chapter 39, 55 (Rule Project No. 88030-039- November 30, 2009 AD and 99030-039-AD)(submittal of 12/15/95, as modified 7/22/98, 10/25/99). Emissions Event and Maintenance, Startup and Shutdown (MSS) October 31,2010 revisions to Chapter 101 Subchapter F 1993 Recodification ofChapter 116 October 31,2011 NSR Rules Revisions; 112(g) Revisions (Rule Project No. 98001- October 31, 2011 116-AI) (excepting those portions ofthe rule acted on at earlier dates with the flexible permit, qualified facilities, public participation, and permit renewals actions; see Exhibit 1 to Consent Decree in the above-captioned matter). Emergency and Temporary Orders (Rule Project No. 97142-035- December 31, 2012 AD), and Revisions to Provisions for Emergency Orders (Rule Project No. 2005-070-035-LS). 

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# -Air Permits (SB 766) - Phase I (Rule Project No. 99029A-116- December 31, 2012 AI). Air Permits (SB 766) - Phase II (Rule Project No. 99029B-116- December 31, 2012 AI).

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