Independence Plaza

1050 17th Street, 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

Air and 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

Dear Mr. Wortman:

Enclosed please find QEP Energy Company's response to the subject Request for Information, dated May

16,2012.

The information we are providing is based on available data at this time, given the time constraints of the

request. The information is also based on our current knowledge of applicable Federal rules, and

potential permit and pollution control requirements. Those rules and requirements are currently in a

transitional state and have yet to be finalized, thus limiting, somewhat, the accuracy of our estimates.

If you have any questions concerning the enclosed information, please feel free to contact me.

Sr. Environmental Jngllleer

lenclosure: Table: Permitting and Control Device Cost Estimate on Fort Berthold Indian Reservation

Cc; Eric Dad)'

Mall Thompson

RandyJjudge

Mike Griffis
Permitting 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 of 3(a) Calculation Equipment recoverable product from

Cost Item Investment Cost' Labor Costs' and 3(b,c,d) Methodology (years) a VRU

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 unit for capitol costs and per year for operation and maintenance costs

I Includes the capital cost for the primary control device, auxiliary equipment and instrumentation, piping, performance testing, associated utilities, engineering and system design, freight, site preparation, foundation,

construction and field e)(penses, installation, etc.

2 Includes the operation and maintenance costs (equipment, pilot fuel, etc.), the annualized labor costs (salary and benefits associated with monitoring!recordkeeping!reporting requirements and O&M activities), and

the annualized non-labor costs (office supplies, vehicle costs, and information technology).

Gray-shaded fields are not applicable