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# OAR Box 1669 Prepped by Charmelle Mathews



### Document

Number: 

# g J95) II-E-1 7 Docket Number: 

# A-98-1 3

Printed 9/23/2008 9:36:49 AM

Sheet 85 of 110P. 2 

### k> 

### ? Q MEMORANDUM 

# A-%-1 3 

# ii- e - n TO : Marth aSmit h U.S . EPA/OAQPS/ESD/WCP G ES D Project

No . 96/0 5 FROM : Bern

d Hanek e and Gre g LaFla m Pacifi c Environmenta

l Services , Inc . (PES ) DATE : Augus t

24,199 9 P:\n81 9 SUBJECT : Meeting wit h GAT X and th e Independen

t Liqui d Terminal s Associatio n (ILTA) I . Purpos e Th e purpos e ofthi s meetm

g wa s to mee t

wit h GAT X an d th e ILT A t o discus s th e Model Plant s memo , an

d othe r issue s o f concer n regardin g th e Organi c Liquid s Distributio n (O.L.D. ) NESHAP . II . Locatio n and Dat

e U.S . Environmenta

l Protectio n Agenc y EPA/N C Mutua

l Building , 10t

h Floor Conferenc e Room Durham , Nort

h Carolin a Augus t 19,1999,1:0 0 p mt

o 3:0 0 pm III . Participants Ji mBailey , Houston Fuel Oil Termina l Compan y Bern d Haneke , PES , Inc . Gre g LaFlam , PES , Inc . Ush aMehra , GATX , Inc . Joh n Prokop , ILT

A Gar y Roesch , NOC O Energ

y Grou p Marth aSmith , OAQPS/ESD/WCP G IV . Discussio n Afte r th e participant s introduce d themselves , Mr . Prokop , ILTA , gav e abrie f overview ofth e ILTA , it s members , functions , an d purpose . H

e state d tha

t nationwide , ther

e ar e 500 ILT A membe r terminals , which accoun

t fo r ove r 12,00 0 storag e tank s an

d astorag e capacit

yP. 3

Memo-ILTA Meetin g Augus t24,199 9 Page 2 exceedin g 294-30 0 millio n barrels . Additionally , ILTA membe r facilitie s ar

e storin g over 3,00 0 differen

t chemica l products . He als o adde d tha t exclusiv e o f

majo r oi l companies , ther e ar e currentl y approximately 10 0 terminal s tha

t ar e no t par t ofth e ILTA . Mr . Proko p als o mentione d tha

t th e 15 9 ILT

A membe r terminal s ar

e distribute d amon

g th e followin g states : Californi a3 7 terminal s Illinoi s 2 7 terminal s Louisian a1 8 terminal s Ne w Yor k 1 5 terminal s Ne w Jersey 1 3 terminal s Washingto n 1 1 terminal s Texa s 3 8 terminals . Afte r th e brie f introductio n b y Mr . Prokop , Mr . LaFla mrequeste d t o kno w ho w many , or alternatively , wha

t percentag e ofth e ILTA membe r facilitie s ar

e majo r sources . Mr . Proko p referre d t o Ush aMehra , GATX , fo r areply . Ms . Mehr aan

d Mr . Prokop responde d tha t th e majo r sourc e statu s wa s ver

y muc h dependen

t upo n th e busines s activit

y o f aparticula

r year , and therefor

e an y fixed number , or

estimat e woul d b e ver

y difficul t to make . I t

wa s state d that ITL A member

facilitie s ar

e ver y flexible i n thei r

busines s practices , somethin g whic h Mr . Proko p referre d t o a s th e "distributio n miracle" . I t wa s estimate d b y th e ILTA representative s tha t afai r number o f majo r source s exis t

witbj n th e continenta

l U.S . Ms . Mehr aals o adde d that terminal s woul d desir

e to attai n MAC

T applicabilit

y criteri aon an

y given yea

r t o accomodate potentia l client s and thei r

organi c liquids . Survey Dat a Issue s Ms . Mehr anext

addresse d O.L.D . MAC T survey dataissues . Sh e mentione d tha

t onl y 1 3 percent ofth e respondents , o

r 3 2 facilitie s ar

e terminal s i

n SI C cod e 42 . Sh e als o mentione d tha t th e surve y databas e i s dominated by facilitie s wit h primar y SI C code s 2 8 and/o r

29 . Ms . Mehramentione d tha

t th e ILT A an d it s membe

r facilitie s ar

e ver y concerne d abou t

bein g "lumpe d i n wit

h th e bi g boys" . Th

e ILTA' s concern , voice d b y Ms . Mehra , wa s tha

t terminal s ar e no t a s profitabl e a s chemical/petrochemica l manufacturer s o

r petroleumrefinerie s an d woul d therefor

e carr y ahighe r burde n t o accomodat

e MAC T contro l costs . Th e ILTA state d tha

t i t believe s tha

t it s membe

r facilitie s cannot

b e lumpe d i n wit

h othe r SIC code s (primarily 28 , 29 ) a s busines s practice s ar e completel

y different . Th e ILTA therefor e request s asubcategorizatio n schem e fo r it s membe

r facilities . Additionally , Ms . Mehr amentione d tha

t she wa s hoping tha

t th e O.L.D.' s applicabilit

y criteri awil l requir e a facilit y t o hav e actua

l emission s totalin g 1 0 tp y fo r asingl e HAP , o

r 2 5 tpy fo r acombinatio n o f HAP . A simila

r schem e basin g applicabilit

y o n actua l emission s i s bein g use d in 4 0 CF R63 , subpar t Y (Marin e Vessel Loading MACT) . Th e EP A responde d tha

t i t ha d no t yet decide d o n a

^P. 4

Memo-ILT

A Meetin g Augus t24,199 9 Pag e 3 subcategorizatio n scheme , but tha t an y information sen

t t o i t b y th e ILT

A woul d b e evaluated . Additionally , th e EP

A state d tha

t i t di d no t see areaso n t o deviat

e fro mth e 10/25 tp y HA

P applicabilit

y criteria . Wastewate r Issues/Concern s The ILT A next mentione d tha

t based o n th e Decembe

r 199 8 roundtable , i t

wa s ver y concerne d wit

h th e wa y in which th e EP

A was proposin g t o regulat e O.L.D . derived/produce d wastewater . M s Mehrawa s aske d by amembe r ofth e EPA/PE S projec t

tea mwha t sh e consider s to b e th e mai n source s of O.L.D . derive d wastewater . A consultatio n between Ms . Mehra , Mr . Bailey , and Mr . Roesc h reveale d tha t th e principa

l source s o f

O.L.D . wastewater are :

• Tan

k cleaning s • Hydrostati c testwate r • Wate

r i n manifold area s • Condensatio n o f

wate r i n tanks . Ms . Mehr awen t o n t o sa y tha t thes e source s o f

wastewate

r ar e intermittent , an

d usuall y lo w i n volume . Furthermore , sh

e added , n o proces s wastewater s ar e generate d by O.L.D . operations . The ILT A als o mentione d tha

t ver y fe w terminal s actually hav e wastewate r treatmen t facilities , bu t tha t som e facilitie s trea

t wastewate

r generated b y clients . Therefore , ver y fe w ILTA membe r terminal s hav e RCR

A permit s to stor

e or trea t wastewate

r containin g hazardou s waste . Thi s practice , accordin g t o Ms . Mehra , i s not typica l fo r th e industry . Mos t

wastewate

r generate d b y O.L.D . operation s at terminal s i s shippe d offsit

e t o acommercia

l treatment , storage , an d disposa l facilit y (TSDF) . Ms . Smith , EPA , informed th e ILT A and it s representative s tha t th e EP A wa s no t plannin g on regulatin g wastewate r generate d b y O.L.D . operations . Ms . Smit h state d tha

t th e surve y di d no t yiel d enough usabl e information fo r th e EP A t o set MAC T floors fo

r HA P emission s fromwastewater . Sh e als o state d tha

t th e apotentia

l futur e regulatio n migh

t addres s wastewate r a t terminals . LDA RConcerns/Issue s Th e ILT A expresse d it s concern s regardin g th e unofficia l EP A positio n t o require instrumen t monitorin g a

t O.L.D . operations . The ILT A state d tha

t emission s fromequipmen

t at terminal s ar

e ver y lo w and do no t

warran t th e expensiv e instrumen

t monitorin g whic h th e EPA propose s t o requir

e fo r th e entire O.L.D . industry . Ms . Mehr astate d tha

t gasolin e distributio n terminal s ar

e no t require d to perfor

minstrumen

t momtoring , and tha

t gasolin e ha s a

n averag e • vapo r pressur e i n exces s o f

mos t liquid s handle d a

t O.L.D . terminals . 

# 3 it& >P. 5

Memo-ILTA Meetin g Augus t24,199 9 Pag e 4 A s an example , Mr . Ji mBailey , Houston Fue l Oi l Termina l Company , remarke d tha

t oftentime s th e EPA' s Metho d 2 1 wil l no t detec t leaks . Instead , leakin g equipment ca n ofte n b e spotte d visually , a s i s th e cas e fo r equipmen t handling crud

e oil . Furthemore , Mr . Bailey adde d tha t h e wa s require d t o perfor

mweekly instrument s usin g bot h Metho d 2 1 an d AV O (a s a conditio n o f

hi s operatin g permi t

fromth e Stat

e o f Texas) . Ms . Mehr astate d tha

t th e State s o f

Ne w Jersey , Texas , an d Californi arequire terminal s t o conduc t instrumen t monitorin g o n equipment . I n Texas , bot

h audiovisua

l an d instrument monitorin g ar

e conducte d du e t o Federa

l an d Stat e requirement s a s som

e facilities . Th e ILT A state d tha t i t wa s hoping t o avoi d thi s typ e of situatio n wit

h th e O.L.D . MACT . Ms . Smit h responde d b y statin g tha

t sh e i s no t oppose d t o AV O monitorin g o f equipment a t O.L.D . terminals , but , sh

e added , sh

e would nee d informatio n regardin g lea k frequencies an

d LDA Rprogram s a

t terminal s in th e U.S . Ms . Mehr aresponde d tha t she might b e abl e t o conduc t

aquic k survey o f LDA Rprogram s a

t terminals . Th e informatio n obtaine d fromthi s survey woul d b e forwarde d t o th e EP A fo r consideration . Th e informatio n provide d t o th e EP A woul d include :

• Operatin g condition s • Actua

l lea k rate s an d frequencies • Equipmen

t emissio n factor s commonl y used a t terminal s Ms . Mehr aals o adde d tha

t i t i s i n th e bes t

busines s interest s o f

terminal s to hav e minima

l equipment leaks . Th e ILTA informe d th e EP

A tha t terminal s ar

e allowe d b y thei r

customer s t o hav e a0.2 5 percen

t produc t loss . Thi s lo w percentag e doe s no t mak e i t i n th e bes t

interes t of a facilit y t o los e produc t

throug h equipmen

t leaks , transfe

r operations , o r

storag e tanks . Th e ILT A representative s wer

e als o questione d b y th e EPA/PE S projec t tea mo n th e us e o f compressor s a

t terminals . Compressor s wer e reporte d t o th e EPA i n O.L.D . service , bu t thei r specifi c function i s no t

known . Th e ILT

A representative s responde d tha t compressor s ar

e use d t o produc e compresse d air , whic h i s used to clea n lines , tes t

hoses , an d fo

r optimizin g boiler performance . The

y als o state d tha

t compressor s ar

e not use d t o directl y transfe

r organi c liquid s a t terminals . Propose d Rul e an

d Cutoff s Th e ILT A inquire d wha

t th e futur e O.L.D . MAC

T woul d regulate . I t

wa s informed tha

t th e followin g emissio n point s woul d potentially b e regulate d b y th e O.L.D . MACT :

• Storag e vessel s • Transfe

r operation s 

# 4P. 6

Memo-ILT

A Meetin g Augus t24,199 9 Page 5

• Container s (5 5 gallon s o r larger ) • Equipmen

t leaks . Mr . LaFla mstate d tha

t th e EP A wa s currentl

y considerin g HA

P percentag e cutoff

s i n lieu of a vapor pressur e cutoff s t o determin e whic

h liquid s woul d b e regulated . Ms . Mehr aoppose d thi s becaus e man

y client companie s do no t

provid e the mwit h complet e produc t infonnatio n ofthi s sort , rathe r the y provide range s o f

HAP . Therefore , sh e state d tha t i t woul d b e ver

y difficul t for ITL A membe r terminal s t o determin e which liquid s t o regulate , and when . Furthermore , sh e state d tha t i t woul d b e easie

r fo r facilitie s to compl

y wit h vapor pressure cutoff

s o r throughpu t cutoff s a s are use d i n cunen t

rules . Ms . Mehrawa s aske d b y th e EP A wha t sh e woul d conside

r a n acceptabl e transfe

r rac k o r busines s throughput . She di d no t hav e aread

y answe r bu t refene d t o variou s Stat

e rule s fo r guidance . Ms . Mehraals o mentione d tha t du e to busines s practices , a30-da y rollin g averag e o f throughput s woul d b e beneficial . Sh e was als o informed tha

t th e survey databas e use d b y th e EP A t o set MAC T floor s di d no t

yiel d an y usabl e transfe

r rac k throughputs . Conclusio n of

Meetin g The ILT A inquire d wha

t th e topic s o

f conversatio n woul d b e a

t th e nex t roundtabl e meeting , whic h i s t o b e hel d o n Octobe r 5,199 9 a t th e EP A i n RTP , Nort

h Carolina . Th e ILTA representative s were informed tha t likely topic s woul d include element s of adraf t rule , comment s o n th e Model Plant s memo , rul e impacts , and other issue s tha t ar e to b e determined . Th e EP A als o informed th e ILT

A tha t i t will b e sending out

a n informationa

l packag e t o th e stakeholde r group o n or

aroun d Septembe

r 15,1999 . Ms . Mehraproceede d t o summariz e th e majo r point s discusse d a

t th e meeting . Followin g this , th e meetin g wa s adjourned .



# 5P. 7

OL D - MAC T MEETIN

G EP A & ILT A AUGUS T 19,1999,1p.m . RTP , NC .

• ILT A Industr y overvie w - Joh

n Prokop , ILT

A

• OL D - MACT , Surve

y dataissue s - Ush aMehra , GAT X

• Proposa

l fo r categorizatio n of

OL D Regulatio n - Ush aMehra , GAT X

• Statu s o f

LDA Rflexibilities and wastewate r collectio n contro l issue s i n OL D Rul e - EP

A

• Miscellaneou s issue s

L:\WP5 1 \ENVIRO\AGENDA.DO C



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