### Independence Plaza 1050 

### 17thStreet, Suite 500 

### Denver, CO 80265 

### Tel 303 672 6900

-

### Fax 303 308 3610 

## QEP Field Services Company

May 31,2012 Mr. Eric Wortman US EPA Region 8 Airand Radiation Program, 8P-AR 1595 Wynkoop Street Denver, CO 80202

RE: Request for Information Pertaining to Emissions Control Equipment at Oil and Gas Production Facilities on the Fort Berthold Indian Reservation DearMr. Wortman: Enclosed please find QEP Energy Company's response to the subjectRequest for Information, dated May 16,2012. The information we are providing is based on availabledataat this time, given the time constraints of the request. The information is also based on ourcurrentknowledge ofapplicable Federal rules, and potential permitand pollution control requirements. Thoserules and requirements arecurrently in a transitional state and haveyet to be finalized, thus limiting, somewhat, the accuracy ofourestimates. Ifyou have any questions concerningthe enclosed information, please feel free to contactme.

Sr. Environmental Jngllleer

lenclosure: Table: Permitting and Control Device Cost Estimateon Fort Berthold Indian Reservation
Cc; Eric Dad)' Mall Thompson RandyJjudge Mike GriffisPermitting and Control Device Cost Estimate on Fort Berthold Indian Reservation

- QEP Energy Company 3(b,c,d) Operating and 4. Expected 5. Average revenue Maintenance, Annualized 3. Source of Data 

### & Life of associated with the sale of 3(a) Total Capital Labor, and Annualized Non- Sum of3(a) Calculation Equipment recoverable productfrom Cost Item Investment Cost' LaborCosts' and 3(b,c,d) Methodology (years) aVRU 

### 1. Synthetic Minor Permit $4500 $6000 Vendor invoices Application Prep, Annual (Permit (Annual Permit Compliance) $10,500 and engineering Compliance application prep.) analysis 2(a) Pit Flare $15,000 $5,000 $20,000 Vendor-provided 5 

## . (90% VOC Destruction Efficiency) information



# - 2(b) Utility Flare $45,000 $8,500 $53,500 Vendor-provided 10 (98% VOC Destruction Efficiency) information 2(c) Enclosed Combustor $43,000 $8,500 $51,500 Vendor-provided 10 (98% VOC Destruction Efficiency) information 2(d) Auto-ignition System (electronically controlled ignition Vendor-provided device, continuous recording $4,100 $1,500 $5,600 information 10 device, malfunction alarm, remote notification system) 

## •. 2(e) Continuous Pilot Flame System (thermocouple, continuous $4,500 $3,500 $8,000 Vendor-provided 10 recording device malfunction information alarm, remote notification system) $120,000 $10,000 $130,000 Vendor-provided 10 Reliable Information Not 2(f) Vapor Recovery System information Available All costs are per unitfor capitol costs and peryearfor operation and maintenance costs

I Includesthe capital costfor the primary control device, auxiliaryequipmentand instrumentation, piping, performancetesting, associated utilities, engineering and system design, freight, site preparation, foundation, construction and field e)(penses, installation, etc.
2 Includesthe operation and maintenancecosts (equipment, pilotfuel, etc.), the annualized laborcosts (salaryand benefits associated with monitoring!recordkeeping!reporting requirements and O&M activities), and the annualized non-laborcosts (office supplies, vehicle costs, and information technology). Gray-shaded fields are notapplicable