### Re: T & E Species E Species E Species/

Critical Habitat Consultation Critical Habitat Consultation Andrew Chew Andrew Chew to: Laura_Romin 08/03/2012 12:37 PM Cc: Dwight Mallory, larry_crist, Patrick Flynn
Hi Laura, Thank you for your prompt response. I'm writing to acknowledge receipt.
- Andrew

------------------------------------------- Andrew Chew, P.E. T: (415) 947-4197 | F: (415) 947-3579 | chew.andrew@epa.gov U.S. EPA, Region 9, Air Permits Office (AIR-3) | 75 Hawthorne St., San Francisco, CA 94105

08/03/2012 12:00:17 PM Hi Dwight, Thank you for your coordination with..

. From: <Laura_Romin@fws.gov> To: Dwight Mallory <Dmallory@resoluteenergy.com> Cc: "'laura_romin@fws.gov'" <laura_romin@fws.gov>, Andrew Chew/R9/USEPA/US@EPA, Patrick

Flynn <Pflynn@resoluteenergy.com>, <larry_crist@fws.gov> Date: 08/03/2012 12:00 PM Subject: Re: T&E Species/Critical Habitat Consultation

Hi Dwight, Thank you for your coordination with our office. The proposed action will not effect any threatened or endangered species, and we have no other concerns.
Laura. Laura Romin, Deputy Field Supervisor U.S. Fish and Wildlife Service Utah Field Office 2369 West Orton Circle West Valley, Utah 84119 Office Phone: 801-975-3330, ext. 142 Cell Phone: 801-554-7660 Email: laura

_ romin @ fws

. gov -----Dwight Mallory <Dmallory@resoluteenergy.com> wrote: ----- To: "'laura_romin@fws.gov'" <laura_romin@fws.gov> From: Dwight Mallory <Dmallory@resoluteenergy.com> Date: 08/02/2012 12:44PM cc: "Chew.Andrew@epamail.epa.gov" <Chew.Andrew@epamail.epa.gov>, Patrick Flynn <Pflynn@resoluteenergy.com> Subject: T&E Species/Critical Habitat Consultation

Ms. Romin,

As we discussed last week when we spoke last week, I am writing you in reference to a PSD permitapplication , submitted to U

. S

. EPA Region 9 on December 5

. 2005 , for the emergency flare at the

McElmo Creek Unit Gas Compression Facility , located near Aneth, Utah. Resolute Natural Resources Company acquired the MCU facility from Exxon Mobil in 2006 and we have been working with Region 9’s permitting staff to obtain issuance of the PSD permit since that time.

The emissions limits of 60 TPY S02; 73 TPY CO; 13.4 TPY NOx; and 95.4 TPY VOCs applicable to the flare are unchanged since the original PSD application was submitted ; and the flare’s actual emissions have decreased from the 29.2 tons S02; 66 tons CO; 12.1 tons NOx; and 90.6 tons VOC reported by EOM for 2005 to 26.7 tons SO2; 45.4 tons CO; 8.4 tons NOx; and 54.9 tons VOC for 2011.

A conservative SCREEN 3 model was submitted with the PSD application to estimate near-field impacts from the flare operating at 14.83 MMCFD for the entire year, or 7 times greater than the average rate for 2005. The results of the model showed that the flare did not cause or contribute to a violation of the National Ambient Air Quality Standards for NO2 or SO2 that were effective at the time of the PSD submittal. However, since that time, EPA promulgated new 1-hr NAAQS for NO2 and SO2, and requested that Resolute revise the modeling to account for the 1-hr NO2 and SO2 NAAQS.

The revised SCREEN 3 model demonstrated that the flare did not to cause or contribute to a 1-hour NO2 NAAQS violation, but showed that the maximum 1-hr SO2 impact for the flare exceeded the interim SIL of 3 ppb. At Region 9’s request, Resolute remodeled the SO2 emissions using EPA’s refined AEROMOD model and was able to effectively demonstrate that the flare does not cause or contribute to a 1-hour SO2 NAAQS violation.

Region 9 staff also requested that Resolute contact your office to review the T&E species and critical habitat consultation and allow you to comment on the revised modeling and potential impacts from the project. I have attached Appendix D of the original PSD application, which includes the original communication between Exxon Mobil and Henry Maddux at USFWS. Appendix D also includes communication with John Notar at NPS concerning impacts to Class I areas . As requested by Region IX, I have also contacted Mr. Notar to will allow him an opportunity to renew his comments on behalf of NPS .

Please review this information and respond with any questions or concerns USFWS may have . In addition to Appendix D of the PSD application, I have attached a map showing the location of the project. If you need additional information in order to respond, please let me know.

If you would like to speak with Region 9 staff, please contact Andrew Chew at (415) 947-4197.

Thanks again for your response on this.

Dwight E. Mallory
Environmental, Health & Safety CoordinatorResolute Energy Corporation

1675 Broadway, Suite 1950
Denver, CO 80202
Direct: 303-573-4886 X 1165
Cell: 970-302-8620
Email: dmallory @ ResoluteEnergy

. com

[attachment "APP D from EOM PSD Ap.pdf" removed by Laura Romin/R6/FWS/DOI] [attachment "MCU Class I Air.pdf" removed by Laura Romin/R6/FWS/DOI]