### OFFICE OF THE GOVERNOR STATE OF MONTANA

BRIAN SCHWEITZER JOHN BOHLINGER LT. GOVERNOR 

# L

GOVERNOR



### October 16, 2006

Robert 

### E. Roberts Regional Administrator USEPA, Region 

### B 999 1Bth Street, Suite 500 Denver, Colorado B0202-2466 

### Dear Mr. Roberts:
Montana is submitting revisions to its State Implementation Plan (SIP). This submission contains revisions to the following rules: ARM 17.B.743 

### (with the exception of 17.B.743(1)(c)), 

### and New Rules I-VI, codified as ARM 17.B.1601, 17.B.1602, 17.B.1603, 17.B.1604, 17.B.1605, 

### and 17.B.1606, 

### pertaining to the regulation ofoil and gas well facilities, and ARM 17.B.759, 

### pertaining to Montana air quality permit applicability. The Montana Board of Environmental Review (Board) adopted these new rules and rule amendments on December2, 2005. In addition to these submissions, Montana is also withdrawing the previous submission ofARM 17.B.743(1)(c) 

### regarding the applicability of incinerators in the Montana air pollution permit program rules. ARM 17.B.743(1

### )(c) was inadvertently included in the submission dated May 2B, 

### 2003 (Board approval date

- December6, 2002). Montana is also submitting an update to the incorporation by reference ofARM 17.B.1402, 

### adopted bythe Board on June 5,2003. This submission contains two copies ofthe Records ofAdoption as required by 40 CFR Part 51, Appendix V. Also enclosed are two copies of SIP narrative replacement pages. Ifyou have any questions concerning the contents ofthis submission, please direct them to Debra Wolfe, Montana Department of Environmental Quality at (406) 444-7916. Sincerely,

Enc.

STATE CAPITOL" P.O. Box 200801 0 HELENA. MONTANA 59820-0801 TELEPHONE: 406-444-3111 FAX: 406-444-5529 C WEBSITE: WWW.MT.GOV 0

## STATE OFMONTANA

RECORD OFADOPTION
- ARM

In

### the matterofthe adoption ofNewRules I through VI, pertainingto oil and gas well facilities, and the amendmentofARM 17.8.743,pertainingto Montanaairquality permits when required

Date ofFinal Adoption bythe Board ofEnvironmentalReview:


## December 2, 2005

# RECORD OF ADOPTION Regulatory Actions TABLE OF CONTENTS (1) BER agenda granting rulemaking authority. (2) MAR notice for proposed rulemaking. (3) Public notice statement. (4) Memorandums to newspapers ofgeneral circulation. (5) Affidavits of publication including news clipping. (6) MAR notice to Interested Parties, APCAC, 

# & repositories, including address list. (7) MAR notice on the state electronic access system. (8) Department testimony. (9) Department HB 311 and 521 analysis. (10) Written public testimony. (11) Hearings officer report 

# &transcript. (12) BER agenda fron1 rule adoption meeting. (13) Transcript from BER rule adoption meeting. (14) Final MAR to notice to Interested Parties, APCAC, 

# & repositories, including address list. (15) Final MAR posted on the state electronic access system. (16) Final MAR notice ofamended rule (published copy). 

# ,ilg(Cb
Date:

### .M"ontana 

# Board ofEnvironmental

# Review

P. O. Box200901 • Helena. MT 59620-0901 • (406) 444-2544 • Website: www.deq.state.tnt.1fS AGENDA BOARD OFENVIRONMENTAL REVIEW FRIDAY, JULY 29, 2005 METCALF BUILDING, CONFERENCE ROOM 111 1520 EAST SIXTH AVENUE, HELENA, MONTANA
NOTE: Individual agendaitems are not assigned specific times. Forpublic noticepurposes, the Boardwill begin the meeting at the time specified. However, the Board might not address the specific agenda items in the orderthey are scheduled. 9:00A.M. I. ADMINISTRATIVEAGENDAITEMS A. Review and approve minutes ofJune 3, 2005, meeting. Draft Minutes ll. BRIEFINGAGENDA ITEMS A. CONTESTED CASE UPDATE: 1. Cases assigned to Hearing OfficerTom Bowe
a. In the matter of CR Kendall Corporation's request for a hearing to appeal DEQ's decision to deny a minor permit amendment under the Metal Mine Reclamation Act (BER 2002-09 MM). CR Kendall and DEQ have jointly requested additional time to submit a proposed schedule. The Hearing Examiner has granted the requests. b. In the matter of the Petition for Review of Hazardous Waste Final Permit No. MTHWP-03-01 issued to Flying J Petroleums, Inc. (BER 2003-14 HW). Flying J has requested a hearing Under the Montana Hazardous Waste Act to review the fmal decision of DEQ to issue a Hazardous Waste Final Permit to Flying J for its former refinery located near Cut Bank. Counsel for theparties stipulated to a stay ofcontested case proceedings while they discussed the terms of an order that could resolve this case. However, the case was not settled and the parties proposed a schedule for contested case proceedings. On April 5, 2005, the Hearing Examiner issued a schedulingorder. The final prehearing conference was set for January 10, 2006.
c. In the matter of Violations of the Montana Water Quality Act by the City of Lewistown Wastewater Treatment Plant (BER 2004-15 WQ). On October 20, 2004, the Board received a letter from the City Manager ofLewistown appealing $11,608 in administrative penalties for violations of the Water Quality Act. On September 21, 2004, DEQ had issued an Administrative Penalty Order for six discharges of sewage into Big Spring Creek. The parties proposed a schedule for contested case proceedings on March 1, 2005, and the Hearing Examiner issued a scheduling order. The final prehearing conference was set for October 12, 2005. d. In the matter ofViolations ofthe Montana Public Water Supply Laws by Darwin Simac d/b/a Jackson Creek Saloon, Montana City, Jefferson County (BER 2005­ 05 PWS). The Board received a request for hearing on January 31,2005, regarding a Notice of Violation and Administrative Compliance and Penalty Order for variousBoard ofEnvironmental Review July 29, 2005 Page 2 of5 violations of the Montana Public Water Supply Laws. The parties agreed on a . schedule. Under the scheduling order, the hearing is set to begin on August 23,2005.
e. In the Matter of Violations of the Montana Water Quality Act by Bar S Livestock, Inc., Toole County, Montana (BER-2005-06 WQ). Bar S Livestock, Inc. requested a hearing on the Notice ofViolation and Administrative Compliance and Penalty Order issued by DEQ relating to the alleged failure ofBar S Livestock, Inc. to comply with the requirements ofthe general permit for the CAFO it operates near Shelby. The parties agreed on a schedule. Under the scheduling order the hearing is set to begin on October5,2005. f. In the matter of Violations ofthe Water Quality Act by ASARCO, Inc., (BER 2005-09 WQ). The Board received arequest for hearing regarding an Administrative Penalty Order issued by DEQ for the alleged failure to pay annual permit fees on the MGWPCS permit for discharges from the Paymaster Mine Adit located in Lewis and Clark County. DEQ claims ASARCO should have paid permit fees for a permit that ASARCO argues should have been terminated in 2002. The parties requested until July 19, 2005 to submit a schedule or settlement papers and the Hearing Examiner granted the request. g. In the matter of Violations of the Opencut Mining Act by Kenneth Mikesell, d/b/a Mikesell Gravel Mine, Meagher County (BER 2005-10 OC). DEQ issued a notice of violation, statement of proposed penalty, and cessation and abatement order. In 1980, a permit was issued for an opencut gravel mine that would disturb 4 acres. An inspection in 2002 found about 20 acres of surface had been disturbed. Despite repeated requests, Mr. Mikesell did not submit an application to amend the permit and an additional bond, and was ordered to cease mining outside the 4-acre 

# J permitted area. Under the scheduling order, the fmal prehearing conference was set for October 3,2005. h. In the matter of the application by Patty Irvine, d/b/a Marks Environmental Service, for renewal ofseptage disposal license (HER 2005-11 SW). DEQ denied license renewal by order dated March 29, 2005. The renewal was denied because the business is not being operated in compliance with septage disposal laws and rules. Alleged violations included the failure to maintain records, disposing of septage on land without first obtaining the written approval of the landowner and DEQ, and disposing of septage without a license. Under the scheduling order, the final prehearing conference was set for September28,2005.
1. In the matter ofthe notice ofViolation ofthe Opencut Mining Act by Mickelson Rock Products, LLC at the Tricon Pit #2, Mineral County (HER 2005-12 OC). DEQ issued anotice ofviolation and statement ofproposedpenalty for mining without a permit. Under the scheduling order, the hearing will probablybeheld inDecember2005. J. In the matter of Violations of the Montana Operator Certification and Public Water Supply Laws by Richard Kelly at the Ten Mile-Pleasant Valley Lagoons, Lewis and Clark County (BER 2005-13 PWS). The Board received a request for hearing on May 17, 2005, regarding the Notice of Violation and Administrative Compliance and Penalty Order issued by DEQ for the operation ofa public sewage system without a certified operator. Under the scheduling order, the final prehearing conference was set for November 7,2005. B. OTHER BRIEFING ITEMSBoard ofEnvironmental Review July 29, 2005 Page 3 of5
1. FAQs Update

- The Board will be briefed on the status ofupdating the Board FAQs on theWeb. Revised Frequently Asked Questions ill. ACTION AGENDAITEMS A. NPRC PETITIONFORRULEMAKING On May 17, 2005, the Boardreceived a 70-page petition from 17 entities, includingNorthern Plains Resource Council and Tongue & Yellowstone Irrigation District. Thepetition contains two components: (1) proposed adoption ofnewrules pertaining to treatment requirements for water from Coal Bed Methane (CBM) development; and (2) proposed amendment ofARM 17.30.670 pertaining to nondegradation requirements for electrical conductivity (EC) and sodium adsorption ratio (SAR), flow-based permitting, and the non-severability of these provisions. The Board received comments about the petition at its public meeting on June 3, 2005. The Petitioners agreed to extend the time for the Board to makes its decision on the Petitionuntil the meeting on July 29, 2005. Under Mont. CodeAnn. Sec. 2-4-315 and Model Rule 2, the Board will hear presentations by the petitioners and other interested persons regarding whether the Board should deny the petition or initiate rulemaking. Under Mont. Code Ann. Sec. 2-4-315, the Board's decision to deny the petition or to initiate rulemaking mustbe in writing andbased onrecord evidence. Executive Summary Notice ofPublic Hearing on Proposed Amendment and Adoption WaterPollution Control Advisory Board Comment Pinnacle Gas Resources Comments 

# (., I FidelityExploration and Production Company Submittals

### ~ 

### ! Comments Letter 

# I

r i Analysis ofPetition 

### ,**~** Tom Osborne, HydroSolutions Inc. Draft Testimony 

# ! Schafer Ltd. Analysis ofWater Quality 

# I PowerPoint Presentation Petroleum Association ofWyoming Technical Review and Analysis 

## t 

# I B. FINALACTION ON APPEALS 

# ! 1. In the matter ofthe request for bearing of Nature View Estates, Missoula County, 

## I
, under Mont. Code Ann. § 76-4-126 (BER 2004-16 SUB). On November 3, 2004, the 

## r Board received a letter from the law fum representing the subdivision applicants, Jeffand Kori Hollenback. By letter dated October 4, 2004, the Missoula City-County Health 

# ! Department stated that the subdivision couldn't be approved because of water supply deficiencies. The parties have filed a Stipulation for Dismissal stating that the parties 

# I
have reached a settlement. A proposed order dismissing the case will be presented to the 

### , Board for approval. 2. In the matter of Violation of the Montana Strip and Underground Mine Reclamation Act by Westmoreland Resources, Inc. at the Absaloka Mine, Big Horn County (BER 2005-01 SM). Request for hearing was received on January 3, 2005, on aBoard ofEnvironmental Review July 29, 2005 Page 4 of5
Notice ofViolation and Statement ofProposed Penalty dated December 13, 2004. The , Department contends that Westmoreland (WRI) failed to regrade to the approved postmining topography and assessed a penalty of$800 for the violation. By letter dated January 31, 2005, DEQ gave notice to the Crow Coal Regulatory Program of the case. The Tribe did not file a motion to intervene. The parties have stipulated to suspension of the abatement order as long as there is no immediate danger to health or safety. Prehearing conferences were conducted on May 18 and June 15, 2005, and the parties requested more time to attempt to reach a settlement. July 6, 2005, was set as the date to submit settlement papers or a proposed schedule for further proceedings. On July 6, the Board received a stipulation to dismiss the case. A proposed order to dismiss the case will be presented for Board approval. C. NEW CONTESTED CASES 1. In the matter ofViolations ofthe Openeut Mining Act by Century Companies, Inc. at the Bergh Pit, Plentywood, Sheridan' County (HER 2005-14 

## oq. Request for hearing was received on June 14, 2005, on a Notice of Violation and Statement of Proposed Penalty relating to the alleged failure to complete reclamation on time. The parties requested until August 23, 2005, to pursue settlement. Standing Interim Hearing Examiner Tom Bowe granted the request. The Board may appoint a permanent hearing examinerordecide to hear the case. 2. In the matter of the request for hearing of Sunnyside Orchards, Ravalli County, under Mont. Code Ann. § 76-4-126 (HER 2005-15 SUB). On June 29, the Board received a letter from Cleatus Johnson, a subdivision applicant, appealing the denial of his subdivision application by Ravalli County. By letter dated June 7, 2005, the Ravalli County Environmental Health Department stated that the subdivision application could not be approved because additional information was required to be provided by the applicant. The application was therefore denied pending submittal of the additional information. The Board may appoint a permanent hearing examiner to decide orhear the case. D. REMANDED CONTESTED CASE In the matter ofthe issuance ofthe Air Quality Permit for the Roundup Power Project, Permit No. 3182-00 (BER 2003-04 AQ). On April 19, 2005, the Montana Supreme Court issued an opinion concluding that the Board, which conducted the contested case hearing on June 4-6, 2003, had not applied the correct standard ofreview. Additional information was provided in the memorandum with attachments included in the Board packets for the Board meeting on June 3, 2005. The Supreme Court returned the case to the District Court on June 6, 2005. The District Court remanded the case to the Board by Order filed June 15, 2005. Tom Bowe, appointed hearing examiner for administration ofthe case, issued a scheduling order on June 17, 2005, setting a schedule for the parties to submit theirpositions concerning the procedure on remand. The Board may decide whether to make a new decision based on the record or to receive additional evidence. The Board may set a schedule for further proceedings. E. INITIATION OFRULEMAKING The Department will propose that the Board concur in its recommendation to initiate rulemaking to: 1. Implement House Bill 581, which amends the Clean Air Act of Montana by modifying public COllUllent periods for certain air quality permits and the filing deadline for affidavitsBoard ofEnvironmental Review July 29, 2005 Page 5 of5 setting forth the grounds for requests for hearing, and by authorizing the Board to issue rules to extendpublic commentperiods. The new legislation was effective on July 1,2005. , Executive Summary Notice ofPubJic Hearing on Proposed Amendment 2. Implement Senate Bill 95, which amends the Clean Air Act ofMontana to require the Board to adopt rules concerning air quality permit applications and air emission control requirements for certain oil or gas well facilities. The new legislation is effective on January 1,2006. It is necessary to initiate rulemaking in order to have rules in place by the effective date ofthe law. Executive Summary Notice ofPublic Hearing on Proposed Amendment and Adoption F. STANDING INTERIM HEARING EXAMINER The Board will designate a new standing interim hearing examiner and will reassign all current and new contested cases. G. MEIC PETITION FOR RULEMAKING OnJuly 13,2005,the Boardreceived a petition from the Montana Environmental Information Centerandthe FortBelknap Indian Community Council. Thepetition requests that the Board initiate rulemaking to amend ARM 17.24.116 pertaining to reclamation plans for metal mine permits. Under Mont. Code Ann. Sec. 2-4-315 and Model Rule 2, the Board will hear presentations by the petitioners and other interested persons regarding whether the Board should deny the petition orinitiate rulemaking. Executive Summary IV. GENERAL PUBLIC COMMENT Under this item, members ofthe public may comment on any public matter within thejurisdiction ofthe Board that is not otherwise onthe agenda ofthe meeting. Individual contested case proceedings are not public matters on which the public may comment. V. ADJOURNMENT
NOTE: Persons with disabilities who needan accommodation in ordertoparticipate in this meetin& shouldcontact theBoardSecretary at (406) 444·2544.



# c

### -1479­



### BEFORE THE BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA In the matter of the amendment} NOTICE OF PUBLIC HEARING ON of ARM 17.8.743 

### pertaining to } PROPOSED AMENDMENT AND Montana air quality permits - } ADOPTION when required/ and adoption of) new rules I through VI ) (AIR QUALITY) pertaining to oil and gas well) facilities ) TO: All Concerned Persons
1. 

### On October 4/ 2005/ 

### at 10:30 

### a.m./ the Board of Environmental Review will hold a public hearing in Room 111/ 

### Metcalf Building/ 1520 

### East Sixth Avenue/ Helena/ Montana, to consider the proposed amendment and adoption of the above-stated rules. 2. The Board will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this notice. If you require an accommodation, contact the Board no later than ' 5:00 

### p.m., September 23, 2005, 

### to advise us of the nature of the accommodation that you need. Please contact the Board Secretary at P.O. Box 200901, 

### Helena, Montana 59620-0901; 

### phone (406) 444­ 2544; 

### fax (406) 444-4386; 

### or email ber@mt.gov

. 3. The rule proposed to be amended provides as follows, stricken matter interlined, new matter underlined: 17.8.743 

### MONTANA AIR QUALITY PERMITS--WHEN REQUIRED (1) 

### Except as provided in ARM 

### 17.8.744 k 

# aae 17.8.745 

### and [NEW RULE II), a person may not construct, install, modify, or operate any of the following without first obtaining a Montana air quality permit issued by the department: (a) through (5) remain the same. AUTH: 75-2-111, 75-2-204, 

### MCA

IMP: 75-2-211, 

### MCA 4. The proposed new rules provide as follows: NEW RULE I DEFINITIONS For the purposes of this subchapter, the following definitions apply: (1) "Emissions minimizing technology" means a technology that reduces the amount of volatile organic compound (VOC) emissions from oil and gas well facilities through the use of resource recovery as fuel for process units or technology that results in significantly lower emissions of VOCs through the use of vapor capture and introduction into a pipeline. (2) "Initial well completion date" has the meaning provided in 75-2 211(2) 

### (b), MCA. (3) "Oil and gas well facility" has the meaning provided 15-8/11/05 MAR 

### Notice No. 17-229

### -1480­

in 75-2-103(13), MCA. AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE II APPLICABILITY AND COORDINATION WITH MONTANA AIR QUALITY PERMIT RULES (1) The requirements of this subchapter apply to oil and gas well facilities that were completed after March 16, 1979, or that were modified after March 16, 1979, and that have the potential to emit (PTE) more than 25 tons per year (TPY) of any airborne pollutant that is regulated under this chapter, 10 TPY or more of any individual hazardous air pollutant (HAP), or 25 TPY or more of any combination of HAPs. For the purposes of this rule, PTE is calculated without regard to any air pollution control equipment used at the facility. (2) Notwithstanding (1) the requirements of [NEW RULE f 

### III] do not apply until July I, 2006, to oil and gas well facilities completed prior to January 3, 2006. (3) The owner or operator of an oil and gas well facility shall submit to the department an application for a Montana air quality permit, pursuant to ARM 17.8.748, no later than January 3, 2006, or within 60 days after the initial well completion date for the facility, whichever is later. (4) An owner or operator who complies with the requirements of this subchapter may construct, install, or use equipment necessary to complete or operate an oil or gas well facility without a permit until the department's decision on the \ application is final.**~** 

### AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE III EMISSION CONTROL REQUIREMENTS (1) The owner or operator of an oil and gas well facility shall install and operate the following air pollution control equipment and comply with the following air pollution control practices: (a) volatile organic compound (VOC) vapors greater than 500 British thermal units per standard cubic foot (BTU/scf) from oil and gas wellhead equipment must be routed to a gas pipeline, or, if a gas pipeline is not located within a 1/2 mile of the oil and gas well facility, VOC vapors greater than 500 BTU/scf must be captured and routed to emissions minimizing technology or to a smokeless combustion device equipped with an electronic ignition device or a continuous burning pilot system; (b) VOC vapors greater than 500 BTU/scf from oil and condensate storage tanks with the PTE of 15 TPY or greater must be captured and routed to a gas pipeline or if a gas pipeline l 

### is not located within a 1/2 mile of the oil and gas well facility, VOC vapors greater than 500 BTU/scf from storage tanks with the PTE of 15 TPY must be captured and routed to emissions minimizing technology, or to a smokeless combustion device equipped with an electronic ignition device or a continuous 

## \ burning pilot system; 

# .....­ MAR Notice No. 17-229 15 8/11/05

### -1481­

(c) hydrocarbon liquids must be loaded into transport vehicles using submerged fill technology; (d) VOC vapors greater than 500 BTU/scf from loading transport vehicles with the PTE greater than 15 TPY must be captured and routed to a gas pipeline, or, if a gas pipeline is not located within a 1/2 mile of the oil and gas well facility, VOC vapors greater than 500 BTU/scf from loading transport vehicles with a PTE greater than 15 TPY must be routed to emissions minimizing technology, or to a smokeless combustion device equipped with an electronic ignition device or a continuous burning pilot system; (e) stationary internal combustion engines of rich burn design greater than 85 brake horsepower (BHP) must be equipped with nonselective catalytic reduction or its equivalent to control air emissions; (f) stationary internal combustion engines of lean burn design greater than 85 BHP must be equipped with oxidation catalytic reduction or its equivalent to control air emissions; and (g) oil and gas well facility operations must comply with the ambient air quality standards for hydrogen sulfide and other criteria pollutants. (2) The owner or operator of an oil and gas well facility shall operate the air pollution control equipment and comply with the air pollution control practices required in (1) from the initial well completion date for the facility until the department decision on the permit application is final. AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE IV INSPECTION AND REPAIR REQUIREMENTS (1) The owner or operator of an oil and gas well facility shall inspect all VOC piping components for leaks each calendar month. Leak detection methods may incorporate the use of sight, sound, or smell. (2) The owner or operator shall make the first attempt to repair any leaking VOC equipment within five days after the leak is detected. (3) Any leaking VOC equipment must be repaired as soon as practicable, but no later than 15 days after the leak is initially detected, unless the repair is technically infeasible without a facility shutdown. Such equipment shall be repaired before the end of the first facility shutdown after the leak is initially detected. AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE V RECORDKEEPING REQUIREMENTS (1) The owner or operator of an, oil and gas well facility shall record, and maintain onsite or at a central field office, a record of each monthly inspection. (2) Inspection records must include, at a minimum, the 15-8/11/05 MAR Notice No. 17-229 

# L

### -1482­

following information: (a) the date the inspection; (b) the findings of the inspection; (c) the leak determination method used; (d) any corrective action taken; and (e) the inspector's name and signature. (3) All of inspection and repair must be kept as a permanent business record for at least five years, be lable for inspections, and be submitted to the department upon request. AUTH: 75 2 111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE VI DELAYED EFFECTIVE DATE (1) The requirements of [NEW RULES I through V] are not effective until January 1, 2006.AUTH: 75-2-111, 75-2-211, MCA IMP: 75-2-211, MCA REASON: Senate Bill 95, passed by the 2005 Montana Legislature and codified as 75 2-103 and 75-2-211, MCA, of the Clean Air Act of Montana, allows the owners or operators oil and gas well facil s to drill and operate up to 60 days prior to submitting an appl ion for an air quality permit. Section 75-2-211(2) (d), MCA, also states that the Board shall establish air emission control requirements at oil and gas well faci until the Department issues a decision on a permit appl ion for the facility. If the oil and gas well facility compl with these requirements, SB 95 allows the facility to continue to operate until Department's decision on the permit application is final. The Board is proposing to adopt and amend air quality to allow the owner or operator of an oil and gas well facility, that otherwise requires an air quality permit, to operate the facility up to 60 days prior to submitting an application an air quality permit. The proposed rules would require the owner or operator to install and operate certain specified air pollution control equipment and comply with certain air pollution control practices from the well completion date of the oil and gas well facility until the Department's decision on the air quality permit application is final. Currently, the owners or operators of oil and gas well facilities with the potential to emit more than 25 TPY of any criteria pollutant or 10 TPY or more of any single hazardous air pollutant (HAP) are red to obtain an air quality permit before constructing the well. The proposed new and amended rules would allow the owner or operator of an oil and gas well facility completed January 3, 2006, to construct and operate equipment essent to complete the well up to 60 days prior to submitting an application for an air quality permit. This would allow for a more accurate evaluation of the well's potential emissions a. permit is issued, and would avoid MAR Notice No. 17 229 15-8/11/05

## • -1483­

lengthy and costly permit processes for wells that may not actually operate beyond the completion date. Accordingly, ARM 17.8.743 would be amended to exclude oil and gas well facilities from the requirement sUbmitting an application for a Montana air quality permit 180 days prior to construction. New Rule I would define the phrases used in the new rules, based on definitions of the same phrases in 75-2-103(13) and 75­ 2-211 (2) (b), MCA. New Rule II would specify the potential to emit permitting threshold for oil and gas well facilities and would require the owner or operator of oil and gas well facilities completed or modified after March 16, 1979, to submit an application for a permit within 60 days after the completion date of the well or by January 3, 2006, whichever is later. New Rule II also would allow oil and gas well facilities completed prior to January 3, 2006, to delay compliance with New Rule III until July 1, 2006. This would allow owners and operators of existing oil and gas wells sufficient time to retrofit those existing wells with appropriate emissions control technology if necessary. New Rule III would contain the requirements for controlling emissions of VOCs and HAPs from oil and gas well facilities until the Department I 

### s decision on the air quality permit application is final. While it is reasonably necessary to allow oil and gas well facilities to complete the well drilling prior to requiring submittal of an quality permit application, it is equally necessary to require the well facility to operate appropriate air pollution control equipment until its air quality permit becomes final. Under current air quality permitting requirements, sources of air pollution are required to install and operate "best available control technology" (BACT) in order to protect public health and the environment. The specific air pollution control requirements contained in New Rule III mirror the requirements contained in recently issued permits for oil and gas well facilities and therefore constitute presumptive BACT with which the well facilities will have to comply until facility specific requirements are established through the permit. New Rule IV would contain requirements to conduct monthly leak detection inspections and repair any detected leaks. New Rule V would contain recordkeeping requirements concerning leak detection and repair. New Rule VI provides that the effective date of the new rules would be January 1, 2006. 5. Concerned persons may submit their data, views or arguments, either orally or in writing, at the hearing. Written data, views or arguments may also be submitted to the Board Secretary at Board of Environmental Review, 1520 E. Sixth. Avenue, P.O. Box 200901, Helena, Montana, 59620 0901i 

### faxed to (406) 444-4386i 

### or emailed to ber@mt.gov, no later than 5:00 p.m., October 11, 2005. To be guaranteed consideration, mailed comments must be postmarked on or before that date. 15-8/11/05 MAR Notice No. 17-229 

# c

### -1484



# ..

6. 

### Katherine Orr, attorney for the Board, or another attorney for the Agency Legal Services Bureau, has been designated to preside over and conduct the hearing. 7. The Board maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the list shall make a written request that includes the name and mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding: air quality; hazardous waste/waste oil; asbestos control; water/wastewater treatment plant operator certification; solid waste; junk vehicles; infectious waste; publ water supplies; public sewage systems regulation; hard rock (metal) mine reclamation; major facility siting; opencut mine reclamation; strip mine reclamation; subdivisions; renewable energy grants/loans; wastewater treatmept or safe drinking water revolving grants and loans; water quality; CECRA; underground/above ground storage tanks; MEPA; or general procedural rules other than MEPA. Such written request may be mailed or delivered to the Board Secretary at Board of Environmental Review, 1520 E. Sixth Ave., P.O. Box 200901, Helena, Montana 59620-0901; faxed to (406) 444 4386; emailed to ber@mt.gov; or may be made by completing a request form at any rules hearing held by the Board. 8. The bill sponsor notice requirements of 2-4-302, MCA, apply and have been fulfilled.**~** 

### Reviewed by: BOARD OF ENVIRONMENTAL REVIEW

David M. 

### BY: Joseph W. Russell 

### DAVID M. RUSOFF JOSEPH W. RUSSELL, M.P.H., Rule Reviewer Chairman Certified to the Secretary of State August 1, 2005.

MAR Notice No. 17 229 15-8/11/05

### PUBLIC NOTICE ARM 

### 5016-032
1) On October4, 2005, at 10:30 a.m., apublic hearing will be held before Katherine Orr, presiding officer appointed by the Board ofEnvironmental Review, in Room 111 ofthe Metcalf Building, 1520 East 6th 

### Ave., Helena, Montana, to consider the amendment of ARM 17.8.743 and the adoption ofnew rules I through VI, pertaining to oil and gas well facilities. 2) Pursuant to Senate Bill 95, enacted by the 2005 Montana Legislature, the proposed rule amendments and new rules would allow.owners or operators of oil and gas well facilities to drill and operate up to 60 days prior to submitting an application for an air quality permit. The proposed rules would require the owner or operator to install and operate certain specified air pollution control equipment and comply with certain air pollution control practices from the well completion date until the decision of the Montana Department ofEnvironmental Quality on the permit application is final. 3) The Board will be accepting public comment regarding the incorporation of the proposed amendments and new air quality rules into the existing Montana administrative rules and on the inclusion ofthe proposed amendments and new air quality rules into Montana's State ImplementationPlan. 4) The proposed amendments and adoption of new air quality rules would affect the owners and operators ofoil and gas well facilities that are required to obtain air quality permits from the MontanaDepartment ofEnvironmental Quality. 5) Interestedparties mayreview a copy ofthe proposed amendments and new air quality rules onthe Internet at <http://www.deq.state.mt.us/dirllegallhearing.asp> orat the following locations: a) MontanaDepartment ofEnvironmental Quality AirResources Management Bureau MetcalfBuilding 1520E. Sixth Ave. Helena, Montana 59620-0901 b) MontanaDepartment ofEnvironmental Quality Airport Industrial Park IP-9, 1371 Rimtop Drive Billings, Montana 59105-1978 c) Missoula City-CountyHealth Department 301 West Alder Missoula, Montana 59802 d) Cascade City-CountyHealth Department 115 4th 

### Street South Great Falls, Montana 59401

### e) Custer County Sanitarian Custer CountyCourthouse 1010Main Street Miles City, Montana 59301 6) The Department will make reasonable accommodations for persons with disabilities who wish to participate in this hearing or need an alternative accessible format ofthis notice. Please contact the Board Secretary at (406) 444-2544, or email ber@mt.gov.no laterthan 5p.m., September 23, 2005, to advise us ofthe accommodation needed. 7) Interested parties may submit their data, views, or arguments concerning the proposed amendments either 

### in writing, or orally at the hearing. Written data, views or arguments may also be submitted to Board Secretary, Board ofEnvironmental Review, 1520 E. Sixth Avenue, P.O. Box 200901, Helena, Montana, 59620-0901; faxed to (406) 444­ 4386; or submitted electronically via email addressed to ber@mt.gov, no later than 5:00 p.m., October 11, 2005. To be guaranteed consideration, written comments must be postmarked on orbefore that date.P. 

### * * 

## * COMMUNICATION RESULT REPORT ( AUG. 22. 2005 9: 10AM) 

## * * ;( FAX HEADER: DEQ/PCD/AWMB TRANSMITTED/STORED: AUG. 22. 2005 9:09AM •• E MODE OPTiON

. ADDRESS RESULT PAGE 

## i I**~-----** 

### ---------------- 

## ------------- ---------------------------­

# ~ MEMORY TX 11505141814066571345 OK 3/3 

## I 

# I I 

# I I**~**



## ---------------------------------------------------------------------------------------------------- i REASON FOR 1) ERROR UP LINE BUSy f: E HANQ OR FAIL E-2) 12-3:) NO_

.. ANSW€R E-4) NO FACSIM[LE. CONNECTION 

# I I**~**

# I t

(406) 444-2544 FAXTR.A.NS:MITTAL (406) 657-1345 

# t 

# I i
Billings Gazette ClassUied Ads 401 N. Broadway Billings,. MT 59107-6300 

## [ E-m.a.il: legals@billingsgazette.co:m

. BE: PUBLlC NOTl:CE FORLEGAL ADVERTISEl\':lJ.l:NT 

# t (ARM 5016-032) Mes&age: Pleasepublish the enclosed docu:m.ent in tho legal section ofyournevvspaper on 

## t Sunday,.**Au~s.t** 28,. 20OS. R.e1:U:ul tho original affidavit ofpublication and a copyofthc billing &ta'texoent to the addressbeloW'. Thisrequest is in adaition to anyregularm.a:iling of billing statementsto the MontanaDepart:tnent ofEnvironmental Qualitygenerally. 

# I

MontanaDepartm.ent ofEnvironxnentat Quality ..A.irResources Manageme.o:t Bureau 

# I P.O. )3ox 200901 Helena.,:rv.rr 59620-0901 

# I
I:Cyou have any questions regardingthis notice, please call =e at (406) 444-974:1. I 'Will 

# I also e--lIlail the publicnotice to you. 

# i Sincerely. 

# I !**~**

# ,~~ I I**~** Air Quality Specialist Air Resources Manage:m.ent Bureau MontanaDepartment ofEnviroIl1:Ilental Quality E-m.aB:janbro-wn@rnt.gov Enclosure l-lcl

.. """,. MT 596:20-0901P.O. Box 200901 Helena, MT 59620-0901 • BrianSchweitzer,Governor (406) 444-2544 • www.deq.mt.gov 

### FAX TRANSMITTAL (406) 657-1345 August 22, 2005
Billings Gazette Classified Ads 401 N. Broadway Billings, MT 59107-6300 E-mail: legals@billingsgazette.com 

### RE: PUBLIC NOTICE FORLEGAL ADVERTISEMENT (ARM 5016-032) Message: Pleasepublish the enclosed document inthe legal section ofyour newspaper on Sunday,August 28, 2005. Return the original affidavit ofpublication and a copy ofthe billing statement to the address below. This request is in addition to anyregularmailing of billing statements to the MontanaDepartment ofEnvironmental Quality generally.
MontanaDepartment ofEnvironmental Quality AirResources Management Bureau P.O. Box 200901 Helena, MT 59620-0901
Ifyou have any questions regarding this notice, please call me at (406) 444-9741. I will also e-mail the public notice to you. Sincerely,

# \3~~**Jafs~wn** Air Quality Specialist AirResources Management Bureau MontanaDepartment ofEnvironmental Quality E-mail:janbrown@mt.gov
Enclosure

Enrorccment Di\'lSlOIl • Permitting & Compliance Dh'ision • PI4Inning, Pre\'cntion & As:s-istance Dh'ision • Renu:diatlon Division---- 

### ---- ------- P.

x 

### * I COMMUNICATION RESULT REPORT AUG. 22.21)05 9: l1AM ) I 

### * *' FAX HEADER: DEQ/PCD/AWMB TRANSMITTED/STORED : AUG. 22. 2005 9: lOAM 

### E MODE OPT ION ADDRESS RESULT PAGE

MEMORY TX 115051413'4067911436 OK 3/3 

### '

RE FOR ERROR 1) HANG UP OR LlNE FAIL E- ) BIJ$Y 3) NO AN$WE R E ) NO FACSIMIL CONNECTION**~on1:aD.a** Depar1:ID.ent: 

## lENvmONMENTAM... 0:1' 

## AlLJiTY
P_O. Box 2001>0**~** ;a:ele

...... , l'-'lT 5962.0-0901 (406) 44

....-2544 FAXTRANSMrTTAL (406) 791-1436 August 22, 2005

GreatFalls Tribune Class.ified. Ads 205 RiverDx-. So. GreatFalls,MT 59403 E-Hla.il: pbasta@g:reatfal.gannert.com

. RE: PUBLIC NOTICE FOR.LEGAL ADVERTISEMENT (.AR.l.VI5016-033) Message: Pleasepublish the encloseddoc'U:O).ent in the legal section ofyournewspaperon Sunday, Augn-s1:**28~** 20OS. Rc:¢uxn the original affidavit ofpnblication and a copy ofthc billln.g stateJnent to the addressbeloW". Thisrequest is in addition to anyregularmailing of billing statements to the MontanaDepa:rtwent ofEnvironm.ental Quality generally. MontanaDepa:rtI:nent ofEnviro:r::u:nental Quality AirResources ManagementBureau P.O. Box 200901 Helena. MT 59620-0901 Ifyou have anyque5Uo;QSregardingthis notice, please call1D.e at (406) 444-9741. I will also e-mail thepublic notice to you. Sincerely

..

# ~~~ JauBro'Wn Air Quality Specialist A.irResou:r-ces Management Bureau MontanaDepartment ofEnvirotln"lental QualityE-mail;janbrown@mt.gov Enclosure

# =:r 

# -y Montan;' Department of 

# ENYI[RO

P.O. Box 200901 Helena, MT 

# ALQUiliTY BrianSchweitzer,Governor
59620-0901 • (406) 444-2544 • www.deq.mLgov 

### FAX TRANSMITTAL (406) 791-1436 August 22, 2005

Great Falls Tribune Classified Ads 205 RiverDr. So. Great Falls, MT 59403 E-mail: pbasta@greatfal.gannett.com 

### RE: PUBLIC NOTICE FORLEGAL ADVERTISEMENT (ARM 5016-033) Message: Please publish the enclosed document inthe legal section ofyournewspaperon Sunday,August28, 2005. Return the original affidavit ofpublication and a copyofthe billing statement to the address below. Thisrequest is in addition to anyregular mailing of billing statements to the MontanaDepartment ofEnvironmental Quality generally.
MontanaDepartment ofEnvironmental Quality AirResources ManagementBureau P.O. Box 200901 Helena, MT 59620-0901
Ifyouhave anyquestions regarding this notice, please call me at (406) 444-9741. I will also e-mail thepublic notice to you. Sincerely,

# 1wYv~ IanBrown AirQuality Specialist AirResources Management Bureau MontanaDepartment ofEnvironmental Quality E-mail:janbrown@mt.gov
Enclosure

Enforcement Division • Permitting & Comptiance Di\'ision • Planning. Prevention & Assistance Division • Remediation Division3/3 P. '" '" '" COMMUNICATION RESULT REPORT ( AUG. 22. 2005 9: 13AM ) ): '" '" FAX HEADER: DEQ/PCD/AWMB 9:**~** 1AM ADDRESS RESULT PAGE 11505 14184474052 OK

REA FOR ERROR -1) HAN3 UP R LINE FAIL E-2) BUSY -3) NO

.. ANSW E 4) NO FACS1M[LE CONNECTION

l'\((on.t:an.a Depart:D:l.ent: of 

## lENvntONMENTAL ALITY
aelena, l\.IT 596%0-0901 (406) 444-2.544

August 22p 2005

Helena IndependentRecord Classified Ads 317 CruseAve:. BeleDa,.MT 59604 E-m.ai1: beY

..allison@heienair.co:m

. :RE: PUBLIC NOTICE :FOR.LEGAL Al>VERTISE:M.ENT (ARM 5016-034) Message: Pleasepublishthe enclosed docu:m.ent in the legal .section ofyournewspaper 011 Sunday, August 28, 2005. Ret:urn the original affidavit of pUblication and a copyofthe billing stat=.entto the addressbeloW'. This request is in addition to anyregularxnailing; of billing state:mentst-o the Montana Departxnent ofEnvirornnental Quality generally. MontanaDeparanen.t ofEnvirorunental QUality Air R.esources Maoagetnent Bureau P.O. Box 200901 Helena..MT 59620-090 1 Ifyouhave any questions regarding this notice. please call Ineat (406) 444-9741. I**~** also e-Inail thepublie notice to you. Sincerely.

# J~ Air Quality Specialist Air Resources.Management Bureau Montana: Departt:nent ofEnvirolllllentaj Quality E-:rnail:jallbl.-o"l--vn@1nt.gov Enclosure

# ~**~** 

# =1!...
Montana Department of 

# ENVlRO 

# NT QUALITY BrianSchweitzer,Governor
P.O. Box 200901 • Helena, MT 59620-0901 • (406) 444-2544 • www.deq.mt.gov 

### FAX TRANSMITTAL 447-4052 August 22, 2005

HelenaIndependent Record ClassifiedAds 317 Cruse Ave. Helena, MT 59604 E-mail: bev.allison@helenair.com 

### RE: PUBLIC NOTICE FORLEGAL ADVERTISEMENT (ARM 5016-034) Message: Pleasepublish the enclosed documentin the legal section ofyour newspaper on Sunday,August 28, 2005. Return the original affidavit ofpublication and a copyofthe billing statementto the addressbelow. This request is in addition to anyregularmailing of billing statements to the Montana DepartmentofEnvironmental Quality generally.
MontanaDepartment ofEnvironmental Quality AirResources ManagementBureau P.O. Box 200901 Helena, MT 59620-0901
Ifyou have any questions regardingthis notice, please call me at (406) 444-9741. I will also e-mailthe public notice to you. Sincerely,

# C)y{/y,-~C(h~ Jant£:wn 

### AirQuality Specialist AirResources ManagementBureau MontanaDepartmentofEnvironmental Quality E-mail:janbrown@mt.gov
Enclosure

Enforcement**Oivt~.oll** • Permitting & Compliance Dh'ision • Planning, Prevention &**As~istance** DiVision • Remediation Division-- 

### ----------------------- 

## ---------- P. 

### :( * * COMMUNICATION RESULT REPORT ( AUG. 22. 2005 9: 14AM ) t :( 

### * FAX HEADER: DEQ/PCD/AWMB**:.** ANSMI TTED/STORED : AUG. 22. 2005 9: 12N

... , \E MODE OPTION ADDRESS RESULT PAGE

# ~ 462 MEMORY TX 11505141814062346687 OK 3/3

RE FOR ERROR -1) HANG I)P OR LINE FAi!.. E -2) y

3)**NO~** ANSWER E 4) FACSIMlLE CONNECTION

NIont:a.:u.a Dep.a.r1:n:ient: of 

## .ENVIRONMENTAL ALITY

P.O. 80"': ':U.to901 Helena. lVJ:T 59620-090:1 (406) 444-2:544 FAX TRANSMITTAL (406) 234-6687 August 22

.. 200S

Miles City Star Classified Ads

. 13 No. 6 th Miles City, MT 59301 E-nlail: roilestar@:r;nidrivers.com

. RE: PUBLIC NOTICE FOR. LEGAL ADVER.TISE'MENT (A.RM 5016-(35) Message: Plea.sepublish the enclosed docwnent in the legal section ofyourneJWSpaper on Monday" August 29. 2005. Retwn the original afiidavit ofpublication and a copy ofthe billing statem.en.t to the addressbelo"",

_ This request is in additionto any regularlUailing of billingstatementsto the MontanaDepartm.ent ofEnviromne:ntal Qualitygenerally. Montana Depa.rt:rnent ofEnviro=ental Quality AXr Resources Manage:rnent Bureau P.O. Box. 200901 Helena, MT 59620-0901 If'you havo any questionsregarding tbis notice. please call1Ue at (406) 444-9741. I vvill also e-nurll the publicnotice to you. . Smce:relY7

# ~~ Jan Brown Air Quality Specialist AirResources ManagementBureau Montana Department ofEnv:i:ronn"lental Quality E-lnail:janbrovvn@:mt.gov Enclosure

# 51!..... 

# 'fMontana Department of

# ENVJ[RONMENTALQlJ.II.~TY BrianSchweitzer,Governor
P.O. Box 200901 • Helena, MT 59620-0901 • (406) 444-2544 • www.deq.mt.gov 

### FAX TRANSMITTAL (406) 234-6687 August 22, 2005
Miles City Star Classified Ads 13 No. 6th 

### Miles City, MT 59301 E-mail: milestar@midrivers.com 

### RE: PUBLIC NOTICE FORLEGAL ADVERTISEMENT (ARM 5016-035) Message: Pleasepublishthe enclosed document in thelegal sectionofyournewspaperon Monday,August 29, 2005. Return the original affidavit ofpublication and a copyofthe billing statement to the address below. This request is in additionto any regularmailing of 

# J billing statements to the MontanaDepartment ofEnvironmental Quality generally.
MontanaDepartment ofEnvironmental Quality AirResources Management Bureau P.O. Box200901 Helena, MT 59620-0901
Ifyouhave any questions regardingthis notice, please call me at (406) 444-9741. I will also e-mail thepublic noticeto you. Sincerely,

# ~~ JanBrown Air Quality Specialist AirResources ManagementBureau MontanaDepartment ofEnvironmental Quality E-mail:janbrown@mt.gov
Enclosure

Enforcement i>ivisioo • Permitting & CompHancc Dh-ision • Planning. l'rc,,"cntion & Assistance Division • Remediation Division3/3 P. 

### * * * C OMMIJ N I C A Tl0 N RES U L T REP 0 R T ( AUG. 22. 2005· 9: 16AM) 

### * * * FAX HEADER: DEO/PCD/AWMB TRANSMITTED/STORED: AUG. 22. 2005 9: 13AM ·.E MODE OPTION· ADDRESS RESULT PAGE "------



### ----------- --- -----­ MEMORY TX 11505141814065235221 OK

'

REASON H E.RROR E HANG UP OR LINE FAIL £-2) BUBV E NO_ ANSWER E·-4) NO FACSIMILE CONNECTION 

# y 

# ..**~** I\-Ion:t.a:na Depar1:lDIJ.en,1: of 

## ENVlIRONMENTAlLQUAllTY BrianSclnveitzcr,Governor P.O. :aox 20090" Helena, MT S962:0-0S>01 (406) 444-2544 

# , FAXTRANSMITTAL (406) 523-5221 August:**22~** 200S

ThelYlissoulian Classified Ads 500 So. Higgins lvfissoula.. MT 59807 E-mail: legals@nrissoulian.coxn RE: PUBLJC NOTJ:CE FORLEGAL ADVERTISEMENT (.A.RM 5016-036) Messa.ge: Pleasepublishthe enclosed document in the legal section ofyourDew'spaper on Sunday,AuguS1: 28. 20OS. Retw:nthe original affidavit: o:fpublicatiOXl and a copy o:fthe billing statem.ent to the address. below. This :requestis in additionto anyregular:mailingof billing sta:te:roentsto theMontanaDepartment ofEnviromnental Quality generally. Montana Department ofEnvironInental Quality .AJ.J: Resom;ce$ Mat).agernent Bureau P.O. Box 200901 Helena. MT 59620-0901 Ifyouhave any questionsregarding this notice. please callm.e at (406) 444-9741. I will also e-m.ailthepublic notice to you. Sinceroly.

# 1~~ AirQuality Specialist: Air Resources Manageznent Bureau MontanaDepartm.ent ofEnvironrneutal Quality E-mail:janbrown@mt.gov Enclosure

# .Y Montana Department of 

# ENYI[]RONMENTALQUAlJrY BrianSchweitzer,Governor
P.O. Box 200901 Helena, MT 59620-0901. • (406) 444-2544 • www.deq.mt.gov 

### FAX TRANSMITTAL (406) 523-5221 August 22, 2005

TheMissoulian Classified Ads 500 So. Higgins Missoula, MT 59807 E-mail: legals@missoulian.com 

### RE: PUBLIC NOTICE FORLEGALADVERTISEMENT (ARM 5016-036) Message: Pleasepublishthe enclosed document in the legal section ofyournewspaperon Sunday,August28,2005. Return the original affidavit ofpublication and a copyofthe billing statement to the address below. This request is in addition to anyregularmailing of billing statements to the MontanaDepartment ofEnvironmental Quality generally.
MontanaDepartment ofEnvironmental Quality AirResources Management Bureau P.O. Box 200901 Helena, MT 59620-0901
Ifyou have anyquestions regarding this notice, pleasecall me at (406) 444-9741. I will also e-mail thepublic notice to you. Sincerely,

# %/v~J~lh~**JU:~** Air Quality Specialist AirResources ManagementBureau MontanaDepartment ofEnvironmental Quality E-mail:janbrown@mt.gov
Enclosure

Enforcement ))i\ision • I)crmitting & CnlUllliance I»)"ision •**I'lannlng~** Prevention & Assistance DiVision • Remediation Division

## Karen M. Vaughan 

# ,

Ad Number: 2843393

PUBUCNonCE ARM 5016..Q32 1) On October 4, 2005, at 10:30 a.m., a publiC hearing will be held before Katherine Orr, presiding officer appointed by the Boardof Environmental Review, In Room 111 of the Metcalf Building, 1520 East 6th Ave., Helena, Montana, to consider the amendment of ARM 17.8.743 and the adoptJon of new rules I through VI, pertainingto 011 and gas well facilities. 2) Pursuanttosenate Bill 95, enacted by the 2005 Montana Legislature, the pro­ posed rule amendments and new rules would allow owners or operators of oil and gas wellfacilitiestodrill and operate UP to 60 days priorto submittinganappli­ cationforan airQuality per­ mit. The proposed rules would require theowneror**to** Install andoper­

. . rtaln speclfledair pol­ control equipment mpl'( with certain air pollution control practices from the well completion date until the deciSion of the Montana Departmentof EnVironmental Quality on the permit application Is final. 3) The Board will be accept· Ing publIC comment regard· IngtheIncorporationofthe proposedamendments and new air Quality rules Into the existing Montana ad· minlstratlve rules and on the inclusion Of the pro­ posed amendments and new air Quality rules Into Montana'S state Implemen­ tation Plan. 4l The proposed amend· mentsandadoptIOn ofnew air Quality rules would affect the owners and opera­ tors of011 and gaswell faclll· ties thatare requiredtoobtain airQuality permitsfrom the Montana Departmentof Environmental Quality. 5) Interested parties may reo view a copy Of the pro­ posed amendments and new air Quality rules on the Internet at hUp'//www elea state mt flS/dtrtlegafl hear1na asp oratthefollowIng locations: a) Montana Department of Environmental Quality Air Resources Management Bureau Metcalf Building 1520E. SIXthAve. Helena, Montana 59620-0901 bl Montana Department of Environmental Quality Airport Industrial park IP·9, op Drive Montana 59105-1978

ula CitY-County Department 301 westAlder Missoula, Montana 59802 

### ***** 

### AFFIDAVIT OF PUBLICATION ***** 

# R£C£IV£D The BILLINGS GAZETTE 401 N.28th 

## AUG 3 1 2005 Billings, MT 59101 MT Dept. Environmental Quality 

## Phone: (406) 657-1212 Fax: (406) 657-1345 Permitting &Compliance Divison AirResources Management Bureau

### Tamm~ 

## Haar ,being first duly swam, deposes and says: That she is the principaclerkofThe Billings Gazette, a newspaperofgeneral circulation published daily in the City of Billings, in the County of Yellowstone, State of Montana, and has charge ofthe Advertisements thereof.**~o\\** t) That the:

## S legal regarding: ARM50 16-032 a true copy of which is hereto annexed, was published in said newspaper on the following dates:

# visa,

.**<"iS~q5** Making all 

# , publication(s)**~r~** belowifcertificatation for the State of Montana.**~I** hereby certity that I have read sec. 18-7-204 and 18-7-205, MCA, and subsequent revisions, and declare that the price or rate charged the State of Montana for the publication for which claim is made in the attached papers In the amount of $ 47.75 is not in excess ofthe minimum rate charged any other advertiserfor publication ofadvertisement, set in the same size type and published for the same number of insertions. Ifurther certify that this claim is correct

### '-.'"j;,p~Ym,", 0'

# ce,,"

# h'"00'

# b'M",,'''''

STATEFM*'iTANA County Y owstone On this day of Aug 29,2005, before me, the**undersi8f'le.d...a~~.fr** the State of Montana, perscnally appeared 

### 1**arnlll~** 

### , known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed same. IN WITNESS WHERE, F. I have hereunto set my hand and affixed my notarial seal the day 

## """'" 'CS'_bOY, writt,,".**~**

Page 1 1dl Cascade CltV-County Health Department 115 4th Street South Great Falls, Montana 59401 e) CusterCounty Sanitarian CusterCounty Courthouse 1010 Main Street Miles City, Montana 59301 6) The Department will make reasonable accommo­ dations for persons with disabilitieswhowishto par­ ticipate In thiS hearing or need.an alternativeaccessible format Of this notice. Please contact the Board Secreta 4(6) 444'2544, oremail lat­ er than er 23, 2005. to advise us ofthe accommodation needed. 7) Interested parties may submit their data, vIews. or arguments concerning the proposed amendments either In writing. or orally at the hearing. Written data. views or arguments may alSo be submitted to Board secretary. Board Of Environmental Review, 1520E. Sixth Avenue, P.O. BOX 200901, Helena, Montana, 59620­ 0901; faxed to (406) 444­ 4386; orsubmittedelectronIcallyvia email addressed to berftmtgoy, no later than 5:00 p.m., October 11, 2005. TO be guaranteedconSideration, written comments must be pOstmarked on or beforethatdate. 8-28-05 

### ***** 

### AFFIDAVIT OF PUBLICATION ***** 

## The BILLINGS GAZETTE 401 N. 28th Billings, MT59101 Phone: (406) 657-1212 Fax: (406) 657-1345

Page 2

# ,**~n[** ,1'(, 

## 30 U!JJ hUt)

1,1 ,- i .'::

AFFIDAVIT OF PUBLICATION THE GREAT FALLS TRIBUNE 205 RIVER DR S GREAT FALLS, MT 59405

Phone: (406) 791-1444 Toll Free (800) 438-6600

Janel Brandon, being first duly sworn deposes and says that GREAT FALLS TRIBUNE COMPANY is a corporation duly incorporated under the laws of the State of Delaware, that the said GREAT FALLS TRIBUNE COMPANY is the printer and publisher of the GREAT FALLS TRIBUNE, a daily newspaper ofgeneral circulation of the County of Cascade, State of Montana, and that the deponent is the principal clerk ofsaid GREAT FALLS TRIBINE COMPANY, printer of the GREAT FALLS TRIBUNE, and that the advertisement here to annexed

.....
PUBLIC NOTICE

- ARM

- 5016-033

Has been correctly published ONE time in the regular and entire issue of said paper on the following dates:

AUGUST 28TH 2005

On this 29TH of AUGUST 2005, before me the undersigned, a Notary Public of the State of Montana, personally appeared Janel Brandon, known to me to be the person whose name is subscribed to the within instrument and acknowledged to me that she executed the same. In witness whereof. I have hereunto set my hand and affixed my Notarial Seal the day and yearfirst above written.

Terri E VanLieshout

______ Print Name
Signature NOTARY PUBLIC for the State of Montana Residing in Cascade County My commission expires: : 08114109,",**uiU:ffr.lg~,~,** .., ,:,,15<10 6. ,9il<!h,Alle"'"

,**I-Jliller,ja:~Mpntc\** !;:btMRm,anli

,Alrpqrt**I~** . • :**l~I"!ng~:: f,~,'C)NW!SS\>,**  , ,'601" es

MlssQu'la**,.I1)"Q~!loa~e.Q.uY** U5,41h,StrlilliltSout \ i**~rfl~tJ,aII,S,** tv;o

,**ercQpler~ourr 'dlJst~rGo\JnlY**  Co!1rthotlS8'1 ,;il',U",;., ' 

# f' 

# f'\

AFFIDAVIT OFPUBLICATION

STATE OFMONTANA, County ofLewis & 

### Clark, Sharon L. Dietrich Being duly sworn, deposes and says:

That she is the principal clerk of the Independent Record a newspaper of general circulation published daily in the City of Helena, in the County of Lewis & Clark, State of Montana, and has charge of the advertisement thereof: That the Public Notice

- ARM 5016-034



### '""191 '

### 6'Ma!n Sfreet:'fl"li! ' "p"',i.: "j. , iI: \t , •

. , MillisCitY**lVIao!£iriif59~0~:~:"** 

## ,F·· '"

.:",'.:,',':: ','

f erThe,**[;lI!~~rtHiEln'~Wll.tfna~e** reiulOflable**ae9~r!.ir.no .:.** 
,!:Ill,**t,tOI1'I!:f(t~trI!O"l,I~Uh.~Ct,IS!\9.IIIt,le~.WhO'WISh',to** pa tlclPliltE! In, !nls\I'!Q!l,fln lOr**.(I~e!l,,'o** ble format of**'~ls** 0**,t1~e,** Please**$ecrel~ry·an~q6)~~J·2544,** or em 09' la!8r than 5'p.m:,'September 23; 2005.'tpiadvlS& us oltHe**accommoda,tloo(l'eede~<"** i,;:, Cr..'**',~"** ':" k' i

,,:7)jtnter,esteJ1l: pafJles,milY s,lJbl'll,lt

### 1h"'r, dp,ta, yler'S" or**ar9ume~tsconclll'!!'f1g** tt:1' proposed**!lmef)~merts** , elthe," tn:!¥.r1i!"Ig" or**or~"y.lj.t** ,tt)e**"earl~! Wrlt!~f1** **~!lt!l"** IIlewlS or arguments, mav!.lspl:/9 I!t,tljrr'tted tq Bpard ,se,creta!)'! BoardorenvlrOOlTl"n,'\C\llfl,**e.v,.I~~** ..**:~520, ~,** Sllith"AyeoufiI, p,.a
.. Box**2Qq9~l,** i**t1elenik~ortana,** .:5,$162,**0\,Q90~** j',faxel1," to;.(4,Q6),**~~.~,' :4;~a,** **a~'rikll(.l, tml~ed** **.~I'C;tfl?,n!g!lI!1(vj§,\lf'l)alllllddr~6~;!fto** till

. in( 'oll, no**lat'tthan~:Opp;jn; ¢~ober'l**  ",2005,1'0begliaran":**'~~i!id 9ons1d~f:~,.tjlc&'** **Wr'lt~',** rrS1om,m4 ents !);I,U,ISt be DoSt,**rna'r~e'd** on ot,j:lefOfErfhat'**ate~-':''''''''!>,1;,,,,,,,,,,~,** Aug,ust 26. 200s.' -"":, 

### ,'r; ;;,. a true copy of which is hereto annexed, was published in said newspaper on the following dates: viz.: August 28,2005



### , . II 1

## PUblicatiOn(S)'~I}'-h £1. making 

### In a •

## <'f/~

'Subscribed and sworn to before me this 30 day of August ,2005.

r the State of Montana Printed Name: Shirley E. Gorsage Residing at Helena, Montana My commission expires 1-15-06 

### (NOTARIAL SEAL)**'""'cr'_(~."""",** ...**_""'""~","."wy:.'''''''\h~I<''''''~~~''''''7'",I,..."...::w ""'ft~",.""-"-,_,,,,,",_-~-·"-~~'--·**  .

# RECE[\fED Affidavit ofPublication

STATE OFMONTANA CountyofCuster

Jan Dawson, being duly sworn on her oath, says that she is and during the time hereinafter mentioned, has been the principal clerk of the printer of the MILES CITY STAR, a daily newspaper ofgeneral circulation, printed and published at Miles City, in said County and State. That the Public Notice ARM 5016-035, a printed and
true copy of which, cut from the columns of said
newspaper, is hereto attached, and made a part hereof,

was printed and published in said newspaper, in the regular and entire issue of every number of the paper during the period and time of publication, on the following dates, to-wit: August 29,2005.

Subscribed and sworn to before me this

## _2~q!...f_""

# __ ,2005

Daniel S. Hance, Notary Public for the state ofMontana, residing at Miles City. My Commission Expires November 12,2005. 

# ,

,

, PUBUC NOTICE ARM 5016-035 1)On October

..., 2oo5;8t 10;30 : a.m., a pUblic healing will be held ' before Katherine Orr, presiding olli- i car appointed by Ihe Boan:l 01 I Environmental Review, in Room 

## I :'111- of the MatcalrBuilding,' 1'520 ,**~""17;8.**-'43-and. the.•deptlon of new' ru/e$ I IilroUgh VI, perlliining 10 011 and gIllS well.facilities. '.' >.?Y ,**~ ~.~:';**  2) Pursuant- 10 .$<Inlita Bill 95, enacted liy**theY:2a6~** Montana**Legislatu(~.** tHe; prqp.osed rule tIlmeOdmetils,arnl'ne¥i'.rbles would ,,'­ if ••••• oil d

would reqUire tor to insl!11'**,~. ~!e**  certain specified '. alt;**:po!I"lfo~** control equipment $ridcompl}-Wilh certain**.aI~I'9!'~.·~fr~.'e~~~.,!"'"** ,the wall complelicn date until the I' decision

. of the**~f1N9..t)!M._.-** a .' Depertment of**Eri)/l!~l'Ital** "**Qu~,,!.** ,Ih,Jl"I"'R&J!I>I tliih is

### L(In_~',~~::;';~;)1 

### - •

3)TheBoan:lwlH be**1·.Ii<;~t regan:lilg~!~~**  ; • ration 01 the prOP,OS'i!;;!'it\!lnd. j I ments and new air quality ru/e$ intO' 

# I**~:~~~t~Wt;~~~~;i**

new ntana's Stat 4) The ameri.dfiients and adoption of;'r;>ew airiqU81ity rules would aIIect.!MOIymirsandopera· tors01 oilan,<;I**~~I~ftjeS ~at**  are requireil. ·tojP.btaln. ,&lr quality permits •• from. the' Montana Departm.ni oi En;'Ironmental 

# :**OuaI~·t:,{**

# ..**E,'~":·** 5) Interested pertl8$ may review a copy altheproposed IirnEm,dmenta and new air'quality rules on the Intemet' at ' <!Jtllrllwwwdeq state mt,usldirileg aVh

...riog asp> or al !ha followlng Jlocations: 

## VsEP 062005

. . tal Quality MT Dept**Env\ron~n** D\tison .' 8.Compliance \ Pennltling M nagementBureau Air Resources a

Montana Department of Environmentat Quality Air

.. Re$!)urces Manage m' e n t Bureau Metcalf Building

# pf~f.~X~"';:~~;}~1ci~~~~a i , f Montaoa**De~lrtine~i'jj** of t\**Envirt?n~entaJ** Quality j"_::.',-;f' I**:!~;"** ;" Airport**·j~'1ndustrial** , •. ", Park Ip:ii, 1371**~.** -'Frrmtop'Dn'-'e

. Billings,'" Montana " 59105·)978**MissoulaCity.c;,6~ty** Health Department ",- -.:'<" 1301 WeslAlder 'Missoula, Montana '59802

. I 

### i

. Cascade City·County Health l Department 115 4th SireelSoUth Great Falls, MOnlana 5940i

. ,,-C**Cu~er** County Sanitarian**~,:**..:_

. .' Cusler ';",/;:.gunty ,
I**~. Coutttlouse·"~j.-'$(~{"':**  1 il010**Mai~Si~¥;j'** 

### I' Miles.,-City,)tqi1\>!11j1 ,**~93O,1** I 'I**,.;,~'\'i:-i.'!l(~. '"·'·'''.ii::;''.f:;';iw.l',lli;i',,'):~:.'.1** **;'-\'6i,rn;~~~;i4r~iTiQi(e,"'a~'"** 

### i sonable accomT'ldations for per· 

### i

. sons**wltll>JIlIsabi~s** who WISh to**~**

participale'ln:thls1iearing or need**~. aHemat~e;accessible**  format of thIS· notice.

."Please contact!ha i Board Sacrel;;oj at (406) 444· I 2544, or emaU, !Str@mI goy. no· I later than 5 p,m., September 23, -I : 2005. 10 advise us

## .?! the accom· 

### I
! modatioo·needed.-" ,::.

­ T)**Inte~e~'** pirties'\i,ay submft Iheir data," vlews,:.or,:'argumenls conceming ,itie.pidj:rOsed ameOd· I

- ments eithetjn-writlng, or orally al I the hearing. Written data, viewS or**~:** arguments may iilso be submitted 

# I

_to Board Secretary, Board .of

.

Environmental Review. 1520 E,

. Sixth 'Avenue, P.O. Box 200901, ,] Helena, Montana,.:59620-0901; ,**~** taxed-\o (4(16) 444-43861orsubmft· I (dted' '&I.eotrOrilC811y -via email 1­ "addressed to ber@mtgoy, no laler

. lhan5:00 p.",•• October 11. 2005.

_ To be'- guaranteed consideration.

. :
..rIt!Ein.comments must be posI. , f,mallce<l,on.or before !hal**,dat~·i.'-""**\,_,**\lp.u~** A,ug6s(291**~):;,,~:.~~':!:** j ,TO 

# , * * * Proof of Publication* * * Missoulian Classified Putus to work foryou 500 South Higgins Avenue Missoula, MT 59801 Phone: (406) 721-6200 Toll Free: 1-800-332-6212 Fax: (406) 523-5221 Email: classified@missoulian.com 

# Amy WnltteFIRST DULY SWORN DEPOSES AND SAYS. THAT THE ABOVE NAMED IS A REPRESENTATIVE OF THE

MISSOULIAN. THE PUBLISHERS OF THE MISSOULlAN, A DAILY NEWSPAPER OF GENERAL CIRCULATION, PRINTED AND PUBLISHED IN THE CITY OF MISSOULA, COUNTY OF MISSOULA, STATE OF MONTANA, AND THAT THE SUBJOINED pOP:

# f: WHICH AS PRINTED IS HERETO ATIACHED. WAS PRINTED AND PUBLISHED IN THE REGULAR AND ENTIRE ISSUE OF SAID 

# <i g
.

PUBLICNOTICE

ARM S016-OJ6 I) ON OCTOBER 4. 2005. AT 10:30 A.M

.. A PUBLIC HEARING WILL BE HELD BEFORE KATHERINE ORR. 

# QRESlDlNG OFFICER AI'· INTED BY THE BOARD F ENVIRONMENTAL RE· lEW.' IN ROOM I (I OF THE METCALF BUILDING, 1520 EAST 6TH AVE" HELENA. MONTANA. TO CONSlDER THE AMEND· MENT OF ARM 17.8.743 AND THE ADOPTION OF NEW RULES I THROUGH VI. PERTAINING TO OIL AND GAS WELL FACILITIES.

2) PURSUANT TO SENATE BILL 95. ENACTED BY THE 2005 MONTANA LEGISLATURE, THE PROPOSED RULE AMENDMENTS AND NEW RULES WOULD ALLOW OWNERS OR OPERATORS OF OIL AND GAS WELL FACILITIES TO DRILL AND OPERATE UP TO 60 DAYS PRIOR TO SUBMITTING AN APPLICATION FOR AN AIR QUALITY PERMIT. THE PROPOSED RULES WOULD REQUIRE THE OWNER OR OPERATOR TO INSTALL AND OPERATE CERTAIN SPECIFIED AIR POLLUTION CONTROL EQUIPMENT AND COMPLY WITH CERTAIN AIR POLLUTION CONTROL PRACTICES FROM THE WELL COMPLETION DATE UNTIL THE DECISION OF THE MONTANA DEPART­ MENT OF ENVIRONMENTAL QUALITY ON THE PERMIT APPLICATION IS FINAL.

3) THE BOARD WILL BE ACCEPTING PUBLIC COMMENT REGARDING THE lNCORPORATION OF THE PROPOSED AMENDMENTS AND NEW AIR QUALITY RULES INTO THE EXISTING MONTANA ADMINISTRATIVE RULES AND ON THE IN· CLUSION OF THE PROPOSED 

# d ENDMENTS AND NEW ",R QUALITY I<l'LES INTO

,NTANA'S STATE IMI'LENTATION PLAN. 4) THE PROPOSED AMENDMENTS AND ADOPTION OF NEW AIR QUALITY RULES WOULD AFFECT THE AD NUMBER: 2680199
STATE OF MONTANA

COUNTY OF MISSOULA

ON SEP 1. 2005, BEFORE SAID STATE, PERSONALLY ME TO BE THE PERSON WHOSE NAME IS SUBSCRIBED TO THE WITHIN INSTRUMENT AND ACKNOWLEDGED TO ME THAT SHE EXECUTED THE SAME

NOTARY PUBLIC FOR THE ST,ATE OF MtTANA 

# B RESIDINGATMISSOULA,MONTANA**l-~" ~C"\o**  MY COMMISSION EXPIRES:

____....-:'--'-

_ _=_ \.....:Q....J",---,:::......=-c 0-,,- KalaRa J, Vanleuven PRINTED NAME

PAGE 1OWNERS AND OPERATORS OF OIL AND GAS WELL FACILITIES THAT ARE RE· QUIRED TO OBTAIN AIR QUALITY PERMITS FROM THE MONTANA DEPART· MENT OF ENVIRONMENTAL QUALITY.

5) INTERESTED PARTIES MAY REVIEW A COpy OF THE PROPOSED AMEND· MENTS AND NEW AIR QUALITY RULES ON THE INTERNET AT I I !DIRt AT THE**'tL:';O~W"'I~N'f;~"'>** LOt CATIONS:

A) MONTANA DEPART· MENTOF

ENVIRONMENTAL QUAL!· TY

AIR RESOURCES MAN· AGEMENT

BUREAU METCALF BUILDING 1520 E. SIXTH AVE. HELENA. MONTANA 5961{)-()WI

B) MONTANA DEPART· MENTOF

ENVIRONMENTAL QUALITY

AIRPORT INDUSTRIAL PARK IP-9,

!371 RIMTOP DRIVE BILLINGS. MONTANA**59!O5-197~** C) MISSOULA CITY· COUNTY

HEALTH DEPARTMENT 301 WEST ALDER MISSOULA. MONTANA 59l!H2

D) CASCADE CITY· COUNTY HEALTH

DEPARTMENT 115 4TH STREET SOUTH GREAT FALLS, MONTANA 594()!

E) CUSTER COUNTY SANITARIAN

CUSTER COUNTY COURT· HOUSE

1010 MAIN STREET MILES CITY. MONTANA 59301

6) THE DEPARTMENT WILL MAKE REASONABLE ACCOMMODATIONS FOR PERSONS WITH DISABILITIES WHO WISH TO PARTICIPATE IN THIS HEARING OR NEED AN ALTERNATIVE ACCESSIBLE FORMAT OF THIS NOTICE. PLEASE CONTACT THE BOARD SECRETARY AT (406) 444-2544, OR EMAIL BER@MT.GOV, NO LATER THAN 5 P.M.. SEPTEMBER 23. 2005, TO ADVISE US OF THE ACCOMMODATION NEEDED

7) INTERESTED PARTIES MAY SUBMIT THEIR DATA, VIEWS, OR ARGUMENTS CONCERNING THE PROPOSED AMENDMENTS EITHER IN WRITING, OR ORALLY AT THE HEARING. WRITl'EN DATA, VIEWS OR ARGUMENTS MAY ALSO BE SUBMITTED TO BOARD SECRETARY, BOARD OF ENVIRONMENTAL REVIEW. 152() E, SIXTH AVENUE. P.O. BOX 200901, HELENA. 

### * * * 

### PROOF OF PUBLICATION* * * 

## MISSOUUAN CLASSIFIED PUTUS TO WORKFOR YOU 500 SOUTH HIGGINS AVENUE MISSOULA, MT 59801 PHONE: (406) 721-6200 TOLL FREE: 1-800-332-6212 FAX: (406) 523-5221 EMAIL: CLASSIFIED@MISSOULIAN.COM

PAGE 2

# ,

MONTANA, 59620·0901; FAXED TO (406) 444·43R6; OR SUBMfiTTED ELECTRON· ICALLY VIA EMAIL AD· DRESSED TO BER@MTGOV, NO LATER THAN 5:00 P.M, OCTOBER II, 2005. TO BE G U A RAN TEE D CONSIDERATION, WRITTEN COMMENTS MUST BE POSTMARKED ON OR BE· FORETHAT DATE.

#26&0199. AUGUST 2X, Z(x)5. 

### * * * 

### PROOF OF PUBLICATION* * * 

## MISSOULIAN CLASSIFIED PUTUS TO WORKFOR YOU 500 SOUTH HIGGINS AVENUE MISSOULA, MT 59801 PHONE: (406) 721-6200 TOLL FREE: 1-800-332-6212 FAX: (406) 523-5221 EMAIL: CLASSIFIED@MISSOULIAN.COM

Page 3 

# c

# •!II"'"
Montana Department of 

# JENVIRONMENTALQUAI.JTY BrianSchweitzer.Governor
P.O. Box 200901 Helena, MT 59620-0901 (406) 444-2544 www.deq.mt.gov


### August 11, 2005

DearInterested Party 1

### APCAC Member 1

### Repository: 

### RE: PUBLICHEARINGS 10/3/05

- 

### Review ofAirQualityPermitApplications; and 1014/05

- 

### PermittingRequirements for Oil & 

### GasWell Facilities
I have attached the initial notice ofthe public hearing on theproposed amendment ofARM 17.8.759, relating to review ofair qualitypennit applications and extension ofthepublic commentperiod for certainpennit applications. The MontanaDepartment ofEnvironmental Quality will conduct apublic hearing on October3,2005,to receive commentsregarding these proposed amendments. 

# (., I have also attached the initial notice ofthe publichearing on theproposed amendment ofARM 17.8.743 and the proposed adoption ofnew rules pertaining to pennitting ofoil and gas well facilities. TheMontanaDepartment of Environmental Qualitywill conduct a public hearing on October4, 2005, to receive comments regarding these proposed amendments and proposed newrules.
Ifyou have questions regarding these notices, please e-mail orcall me at (406) 444-9741. Sincerely,

Brown Air Quality Specialist Air Resources ManagementBureau MontanaDepartment ofEnvironmental Quality E-mail:janbrown@mt.gov

Enclosures

Enforcement Division • Permitting & Compliance Division • Planning, Prevention & Assistance Division • Remediation Division

### -1479­

BEFORE THE BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA In the matter of the amendment) NOTICE OF PUBLIC HEARING ON of ARM 17.8.743 pertaining to ) PROPOSED AMENDMENT AND Montana air quality permits - ) ADOPTION when required, and adoption of) new rules I through VI ) (AIR QUALITY) pertaining to oil and gas well) facilities ) TO: All Concerned Persons 1. On October 4, 2005, at 10:30 a.m., the Board of Environmental Review will' hold a public hearing in Room 111, Metcalf Building, 1520 East Sixth Avenue, Helena, Montana, to consider the proposed amendment and adoption of the above-stated rules. 2. The Board will make reasonable accommodations for persons with disabilities who wish to participate in this public hearing or need an alternative accessible format of this riotice. If you require an accommodation, contact the Board no later than 

# , 5:00 p.m., September 23, 2005, to advise ,us of the nature of the accommodation that you need. Please contact the Board Secretary at P.O. Box 200901, Helena, Montana 59620-0901; phone (406) 444­ 2544; fax (406) 444-4386; .or email ber@mt.gov

. 3. The rule proposed to be amended provides as follows, stricken matter interlined, new matter underlined: 17.8.743 MONTANA AIR QUALITY PERMITS--WHEN REQUIRED (1) Except as provided in ARM 17.8.744L 

# aaa 17.8.745 and [NEW RULE II], a person may not construct, install, modify, or operate any of the following without first obtaining a Montana air quality permit issued by the department: (a) through (5) remain the same. AUTH: 75-2-111, 75-2-204, MCA

IMP: 75-2-211, MCA 4. The proposed new rules provide as follows: NEW RULE I DEFINITIONS For the purposes of this subchapter, the following definitions apply: (1) "Emissions minimizing technology" means a technology that reduces the amount of volatile organic compound (VOC) emissions from oil and gas well facilities through the use of resource recovery as fuel for process units or technology that results in significantly lower emissions of VOCs through the use of vapor capture and introduction into a pipeline. (2) "Initial well completion date" has the meaning provided in 75-2-211 (2) (b), MCA. (3) "Oil and gas well facility" has the meaning provided 15-8/11/05 MAR Notice No. 17-229

### 1480­

in 75-2-103(13), MCA. AUTH: 75-2-111, 75-2 211, MCA

IMP: 75-2-211, MCA NEW RULE II APPLICABILITY AND COORDINATION WITH MONTANA AIR QUALITY PERMIT RULES (1) The requirements of this subchapter apply to oil and gas well facilities were completed after March 16, 1979, or that were modified after March 16, 1979, and that have the potential to emit (PTE) more than 25 tons per year (TPY) of any airborne pollutant that is regulated under this chapter, 10 TPY or more of any individual hazardous air pollutant (HAP), or 25 TPY or more of any combination of HAPs. For purposes of this rule, PTE calculated without regard to any air pollution control equipment used at the facility. (2) Notwithstanding (1), the requirements of [NEW RULE III] do not apply until July 1, 2006, to oil and gas well ilities completed prior to January 3, 2006. (3) The owner or operator of an oil and gas well facility shall submit to the department an application for a Montana quality permit, pursuant to ARM 17.8.748, no later than January 3, 2006, or within 60 days ter the initial well completion date for the facility, whichever is later. (4) An owner or operator who complies with the requirements of this subchapter may construct, install, or use equipment necessary to complete or operate an oil or gas well facJ. ·**~ity** 

### .Witr:.outf.a Plermit until the department I 

### s decision on . "\ appl J.catJ.on J.S J.na.**~** 

### AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE III EMISSION CONTROL REQUIREMENTS (1) The owner or operator of an oil and gas well facility shall install and operate the following air pol ion control equipment and comply with the following air pollution control practices: (a) volatile organic compound (VOC) vapors greater than 

## sao British thermal units per standard cubic foot (BTU/scf) from and gas wellhead equipment must be routed to a gas pipeline, or, if a gas pipeline is not located within a 1/2 mile of the 1 

### and gas well facility, VOC vapors greater than 

## sao BTU/scf must be captured and routed to emissions minimizing technology or to a smokeless combustion device equipped with an electronic ignition device or a continuous burning pilot systemi (b) VOC vapors greater than 

## sao BTU/scf from oil and condensate storage tanks with the PTE of 15 TPY or greater must captured and routed to a gas pipeline, or if a gas pipeline is not located within a 1/2 mile of the oil and gas well ty, VOC vapors greater than 

## sao BTU/scf from storage tanks PTE of 15 TPY must be captured and routed to emissions minimizing technology I 

### or to a smokeless combustion device equipped with an electronic ignit device or a continuous " burning pilot systemi**~** 

### MAR Notice No. 17-229 15-8/11/05

### -1481­

(c) hydrocarbon liquids must be loaded into transport vehicles using submerged fill technology; (d) VOC vapors greater than 500 BTU/scf from loading transport vehicles with the PTE greater than 15 TPY must be captured and routed to a gas pipeline, or, if a gas pipeline is not located within a 1/2 mile of the oil and gas well facility, VOC vapors greater than 500 BTU/scf from loading transport vehicles with a PTE greater than 15 TPY mU$t be routed to emissions minimizing technology, or to a smokeless combustion device equipped with an electronic ignition device or a continuous burning pilot system; (e) stationary internal combustion engines of rich burn design greater than 85 brake horsepower (BHP) must be equipped with nonselective catalytic' reduction or its equivalent to control air emissions; (f) stationary internal combustion engines of lean burn design greater than 85 BHP must be equipped with oxidation catalytic reduction or its equivalent to control air emissions; and (g) oil and gas well facility operations must comply with the ambient air quality standards for hydrogen sulfide and other criteria pollutants. (2) The owner or operator of an oil and gas well facility shall operate the air pollution control equipment and comply with the air pollution control practices required in (1) from the initial well completion date for the facility until the department decision on the permit application is final. AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE IV INSPECTION AND REPAIR REQUIREMENTS (1) The owner or operator of an oil and gas well facility shall inspect all VOC piping components for leaks each calendar month. Leak detection methods may incorporate the use of sight, sound, or smell. (2) The owner or operator shall make the first attempt to repair any leaking VOC equipment within five days after the leak is detected

.. (3) Any leaking VOC equipment must be repaired as soon as practicable, but no later than 15 days after the leak is initially detected, unless the repair is technically infeasible without a facility shutdown. Such equipment shall be repaired before the end of the first facility shutdown after the leak is initially detected. AUTH: 75-2-111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE V RECORDKEEPING REQUIREMENTS (1) The owner or operator of an oil and gas well facility shall record, and maintain onsite or at a central field office, a record of each monthly inspection. (2) Inspection records must include, at a minimum, the 15-8/11/05 MAR Notice No. 17-229

### 1482­

following information: (a) the date of the inspection; , (b) the findings of the inspection;**~** 

### (c) the leak determination method used; (d) any corrective action taken; and (e) the inspector's name and signature. (3) All records of inspection and repair must be kept as a permanent business record for at least five years, be available for inspections, and be submitted to the department upon request. AUTH: 75-2 111, 75-2-211, MCA

IMP: 75-2-211, MCA NEW RULE VI DELAYED 'EFFECTIVE DATE (1) The requirements of [NEW RULES I through V] are not effective until January 1, 2006.AUTH: 75-2-111, 75-2-211, MCA IMP: 75-2-211, MCA REASON: Senate Bill 95, passed by the 2005 Montana Legislature and codified as 75-2-103 and 75-2-211, MCA, of the Clean Air Act of Montana, allows the owners or operators of oil and gas well facilities to drill and operate up to 60 days prior to submitting an application for an air quality permit. Section 75-2-211(2) (d), MCA, also states that the Board shall establish air emission control requirements at oil and gas well facilities ,**~** 

### until the Department issues a decision on a permit application**~** 

### for the facility. If the oil and gas well facility complies with these requirements, SB 95 allows the facility to continue to operate until the Department's decision on the permit application is final. The Board is proposing to adopt and amend air quality rules to allow the owner or operator of an oil and gas well facility, that otherwise requires an air quality permit, to operate the facility up to 60 days prior to submitting an application for an air quality permit. The proposed rules would require the owner or operator to install and operate certain specified air pollution control equipment and comply with certain air pollution control practices from the well completion date of the oil and gas well facility until the Department's decision on the air quality permit application is final. Currently, the owners or operators of oil' and gas well facilities with the potential to emit more than 25 TPY of any criteria pollutant or 10 TPY or more of any single hazardous air pollutant (HAP) are required to obtain an air quality permit before constructing the well. The proposed new and amended rules would allow the owner or operator of an oil and gas well facility completed after January 3, 2006, to construct and operate equipment essential to complete the well up to 60 days prior to submitting an application for an air quality permit. This would allow for a more accurate evaluation of the well's potential emissions before a permit is issued, and would avoid

## ~ MAR Notice No. 17-229 15-8/11/05

### -1483

lengthy and costly permit processes for wells that may not actually operate beyond the completion date. Accordingly, ARM 17.8.743 would be amended to exclude oil and gas well facilities from the requirement of submitting an application for a Montana air quality permit 180 days prior to construction. New Rule I would define the phrases used in the new rules, based on definitions of the same phrases in 75-2-103(13) and 75­ 2-211 (2) (b), MCA. New Rule II would specify the potential to emit permitting threshold for oil and gas well facilities and would require the owner or operator of oil and gas well facilities completed or modified after March 16, 1979, to submit an application for a permit within 60 days after the completion date the well or by January 3 1 

### 2006, whichever is later. New Rule II also would allow oil and gas well facilities completed prior to January 3, 2006, to lay compliance with New Rule III until July I, 2006. This would allow owners and operators of existing oil and gas wells sufficient time to retrofit those existing wells with appropriate emissions control technology if necessary. New Rule III would contain the requirements for controlling emissions of VOCs and HAPs from oil and gas well facilities until the Department IS 

### deci.sion on the air quality permit application is final. While it is reasonably necessary to allow oil and gas well facilities to complete the well drilling prior to requiring submittal of an air quality permit application, it is equally necessary to require the well facility to operate appropriate air pollution control equipment until its air quality permit becomes final. Under current air quality permitting requirements, sources of air pollution are required to install and operate "best available control technology" (BACT) in order to protect public health and the environment. The specific air pollution control requirements contained in New Rule III mirror the requirements contained in recently issued permits for oil and gas well facilities and therefore constitute presumptive BACT with which the well facilit s will have to comply until facility specific requirements are established through the permit. New Rule IV would contain requirements to conduct monthly leak detection inspections and repair any detected leaks. New Rule V would contain recordkeeping requirements concerning leak detection and repair. New Rule VI provides that the effective date of the new rules would be January I, 2006. 5. Concerned persons may submit their data, views or arguments, either orally or in writing, at the hearing. Written data, views or arguments may also be submitted to the Board Secretary at Board of Environmental Review, 1520 E. Sixth Avenue, P.O. Box 200901, Helena, Montana, 59620-0901; faxed to (406) 444-4386; or emailed to ber@mt.gov/ no later than 5:00 p.m., October II, 2005. To be guaranteed consideration, mailed comments must be postmarked on or before that date. 15-8/11/05 MAR Notice No. 17-229

### 6. Katherine Orr, attorney for the Board, or another " attorney the Agency Legal Services Bureau, has**been~** 

### designated to preside over and conduct the hearing. 7. The Board maintains a list of interested persons who wish to receive notices of rulemaking actions proposed by this agency. Persons who wish to have their name added to the I t shall make a written request that includes the 'name and mailing address of the person to receive notices and specifies that the person wishes to receive notices regarding: air quality; hazardous waste/waste oil; asbestos control; water/wastewater treatment plant operator certification; solid waste; junk vehicles; infectious waste; public water suppl ; public sewage systems regulation; hard rock (metal) mine reclamation; major facility siting; opencut mine reclamation; strip mine reclamation; subdivisions; renewable energy grants/loans; wastewater treatment or sa drinking water revolving grants and loans; water quality; CECRA; underground/above ground storage tanks; MEPA; or general procedural rules other than MEPA. Such written request may be mailed or delivered to the Board Secretary at Board of Environmental Review, 1520 E. Sixth Ave., P.O. Box 200901, Helena, Montana 59620-0901; faxed to (406) 444­ 4386; emailed to ber@mt.gov; or may be made by completing a request form at any rules hearing held by Board. 8. The bill sponsor notice requirements of 2-4-302, MCA, apply and have been fulfilled.**~** 

### Reviewed by: BOARD OF ENVIRONMENTAL REVIEW

M. Rusoff 

### BY; Joseph W. Russell 

### DAVID M. RUSOFF JOSEPH W. RUSSELL, M.P.H., Rule Reviewer Chairman Certified to the Secretary of State August 1, 2005.

MAR Notice No. 17-229 15-8/11/05

### GAIL ABERCROMBIE MONTANA PETROLEUM

### ~SOC

. BOX 1186 HELENA, MT 59624-1186 DONALLEN WETA 2301 COLONIAL DR STE 2A HELENA, MT 59601
MARTIN BASTA CITY OF GT FALLS PUBLIC WORKS POBOX 5021 GREAT FALLS, MT 59403-5021 RUSS BOSCHEE YELLOWSTONE COUNTYAPC POBOX 35052 BILLINGS, MT 59107
JEFF BRIGGS SMURFIT-STONE CONTAINER CORP esBOX4707**··~SOULA,** 

### MT 59806 LEE BRUNER PO BOX 2000 BUTTE, MT 59702

DEXTER BUSBY MONTANA REFINING CO 1900 10TH ST NE GREATFALLS, MT 59404-1955
LORICLARK FOREST SERVICE AIR QUALITY PROGRAM POBOX 7669 MISSOULA, MT 59807 DAN CORTI U OF M ENVIRONMENTAL HEALTH BLDG 32 MS 9144 MISSOULA, MT 59812 CoWLEYHAUGHEY HANSON TOOLE AND DIETRICH PLLP POBOX 797 HELENA, MT 59624-0797 LAURA ACKERMANN DECKER COAL COMPANY POBOX 12 DECKER, MT 59025-0012
RONANDERSON LINCOLN CTY HEALTH DEPT 418 MINERAL AVE LIBBY, MT 59923
BRAD BLACK APCAC BOARD MEMBER POBOX 1442 LIBBY, MT 59923-i442
JOAN BOWSHER CITY-COUNTY HEALTH DEPT POBOX 1723 HELENA, MT 59624
GREGBROWN CHS INC

- LAUREL REFINERY POBOX 909 LAUREL, MT 59044-0909
ROBIN BULLOCK ARCO 317 ANACONDA ROAD BUTTE, MT 59701
JIM CARLSON MISSOULA CITY-CO HEALTH-­ REPOSITORY 301 WALDER MISSOULA, MT 59802-4123 BRIANK CLIFTONM.S. RS. CITY COUNTY HEALTH DEPT 115 4TH ST SOUTH GREAT FALLS, MT 59405
BILL COURTNEY QUANECOLLC POBOX 7370 SHERIDAN, WY 82801
DONDAY STIMSON LUMBER CO 875HWY2 S LIBBY, MT 59923 JOE ALINE SHUMAKERTRUCKING PO BOX 1279 GREATFALLS, MT 59403
TINA ANDERSON DEQ AIR QUALITY DIVISION 1866 SOUTH SHERIDANAVE SHERIDAN, WY 82801
TIM BLUME US ARMY ENVIRONMENTAL 729-19TH ST 4TH FLRRM 427 DENVER, CO 80202-2500
CHIP BREMER CITE PO BOX 12763 RTP, NC 27709
JOHNBRUEGGEMAN STATE REPRESENTATNE 321 LAKEVIEW DR POLSON, MT 59860-9317
WANDABURGET POWDERRIVER COAL CO CALLERBOX 3034 GILLETTE, WY 82717
BRUCE CLARK GENESIS INC PO BOX 1660 TROY, MT 59935
DALE COCKRELL CHRISTENSENMOORE COCKRELL PO BOX 7370 KALISPELL, MT 59904-0370 FRANK CROWLEY POWERBLOCK BLDG STE 300 HELENA, MT 59624-1185

BARB DOWSKI REGEH & S MANAGER QWEST EH&S 1855 S FLATIRON COURT BOULDER, CO 80301

### RALPH DRIEAR HYDROMETRICS INC 1116 HELENA FLATS RD KALISPELL, MT 59901
LINDA J DWORAKDVM APCAC BOARD MEMBER POBOX 1663 HAiyHLTON, MT 59840
LAERICKSON ASARCO TROY UNIT POBOX 1660 TROY, MT 59935
WILLIAM E FLYNN LUZENAC AMERICA 767 OLD YELLOWSTONE TR THREE FORKS, MT 59752
PEGGY FRUIT TOWN OF BROADUS POBOX 659 BROADUS, MT 59317
ALAN GLUECKERT MILES CITY LAUNDRY POBOX 1409 MILES CITY, MT 59301
ELLAGUTZKE SHERIDANMEMORIAL HOSPITAL 440 W LAUREL AVE PLENTYWOOD, MT 59254 KATHY HARRIS PE APCAC BOARD MEMBER 2205 LIME KILN RD HELENA, MT 59601
LYNN HILL MSE-HKMINC POBOX 7010 SHERIDAN, WY 82801
ROSE HUGHES THE CONSULTING ENGThrnERS 36 SLAST CHANCE GUL STE A HELENA, MT 59601 VIC DUGAN EXXONMOBIL 13501 KATY FREEWAY CORPEMCC-L3-536 HOUSTON, TX 77079 NATHAN EKLUND SUMMIT ENVIROSOLUTIONS INC .1217 BANDANABLVD ST PAUL, MN 55108 TODD EVERTS EQC STATE CAPITAL ROOM 106­ DEADHEAD
ROBERT D FOOTE EXXONMOBIL CORP 607 EXXONRD BILLINGS, MT 59101
RONALD GEHRKE BIG SKYMINING CO PO BOX 97 COLSTRIP, MT 59323
ALEXANDRA GORMAN WOMEN'S VOICES FORTHE EARTH POBOX 8743 MISSOULA, MT 59807-8743 RALPHHAMLER MADISON COUNTY POBOX 278 VIRGINIA CITY, MT 59755
ANNE HEDGES MEIC POBOX 1184 HELENA, MT 59624
DAVID HRUBES EASTERN MONTANA POBOX 36 RICHEY, MT 59259
DIANNE HUHTANEN ROCKY MOUNTAIN LABS 903 S 4TH ST HAMILTON, MT 59840 JOHN W DUNCAN RR#1 POBOX 33 JOPLIN, MT 59531 

# .J
ELLENENGSTEDT MONTANA WOOD PRODUCTS PO BOX 1149 HELENA, MT 59624-1149
JAMES FLANSBURG HAYS LODGE POLE SCHOOLS BOX 110 HAYS, MT 59527
ALANFRONBERG GLACrnRENGThrnERINGPC 124 1ST AVE S STE 17 GREAT FALLS, MT 59401
JOHN GERHART POBOX283 BELT, MT 59412 

# J LEIF GRIFFIN SMURFIT-STONE CONTAINER CORP PO BOX 4707 MISSOULA, MT 59806 WILLIAM HARBRECHT WESTERNENERGY COMPANY PO BOX99 COLSTRIP, MT 59323
MARTINHESTMARK US EPA-REGION VIII 8ENFT 999 18TH ST STE 300 DENVER, CO 80202-2405
JIM HUGHES DEQ-BILLINGS

-- REPOSITORY 1371 RIMTOP DR BILLINGS, MT 59105-1978
BRUCE JOHNSON**~** 

### SUMMIT ENVIROSOLUTION INC 1217 BANDANA BLVD ST PAUL, MN 55108

### DALE J JOHNSON ENVIRONMENTALHEALTH

### Q~8 RIMROCK RD

.. LlNGS, MT 59106
DICKJUNTUNEN RESOURCE MGMT ASSOCIATES 259 MCCLELLAN CREEKRD CLANCY, MT 59634 JAKE KAMMERERR.S. RAVALLICOUNTYENV HEALTH 215 S 4TH ST STE D HAMILTON, MT 59840 PAT KIMMET CENEX PO BOX 909 LAUREL, MT 59044-0909
CHRIS KOLSTAD APCACBOARDMEMBER HC74BOX49 eDGER, MT 59456

MITCHELL LEU PLUM CREEK

- APCAC MEMBER POBOX 160 COLUMBIA FALLS, MT 59912 CHERRY LONEY CASCADE CO HEALTHDEPT

-­ REPOSITORY 115 4TH ST S GREAT FALLS, MT 59401-3618 MICHAEL MACHLER APCACBOARD MEMBER 771 TOPAZ AVE BILLlNGS, MT 59105
DON MAY MAXIMTECHNOLOGIES lNC POBOX 2730 MISSOULA, MT 59801

# ~MCKENNA ETS lNTERNATIONAL 1401 MUNICIPAL RD NW ROANOKE, V A 24012-1309 DEANJOHNSON APCAC BOARD MEMBER BOX 131 GLENDIVE, MT 59330
MICHAEL S KAKUK KAKUK LAW OFFICES PC POBOX 747 HELENA, MT 59624-0747
BOB KELLY lNTERTEC 619 S W HIGGlNS STE S MISSOULA, MT 59"803
TOM KIRCHER STILLWATER MINlNG CO HC54 BOX 365 NYE, MT 59061
LARRY LAKNAR BEAVERHEAD COUNTY SANITARIAN 2 SPACIFIC ST DILLON, MT 59725-2799 LION TECHNOLOGIES lNC ATTN LIBRARY POBOX 700 LAPAYETTE, NJ 07848
RICHARD LONG US EPAREGION VIn 8P AR 999 18TH ST STE 300 DENVER, CO 80202-2405
DEB MADISON FORTPECK TRIBES BOX 1027 POPLAR, MT 59255
GABRIEL MCAULIFFE SIERRARESEARCH 1801 J ST SACRAMENTO, CA 95814
WILLIAM MCLAUGHLIN 341 CES/CEVC 3978THSTN MALMSTROM

### APB, MT 59402­ 7536 RILEY JOHNSON NFIB 491 SO PARK HELENA, MT 59601
THOMAS KALLENBACH FLUIDYNE lNC & 

### ELK GROVE DEVELOPMENT CO 155 ANNIE GLADE DR BOZEMAN, MT 59718-7691 CALVlNKIDNEY WELLS FARGO 877 W MAIN ST 5TH FLOOR BOISE, ID 83702
JERRYD. KNUTSON WEST TECH SUPPLY & 

### SERVICES POBOX 80711 BILLINGS, MT 59108 CATHYLAUGHNER BROWNlNGKALECZYC POBOX 1697 HELENA, MT 59624
CARRIE LLOYD VETERANSAPFAIRS WILLIAMS ST FORTHARRISON, MT 59636
MICHAELJ LUCIANO FARM HARVESTlNG OF EUREKA POBOX 1050 EUREKA,MT 59917 WAYNEMARCHWICK CENTRALMT HEALTH DEPT 305 W WATSON ST LEWISTOWN, MT 59457


### BRIAN MCHUGH MAXIM TECHNOLOGIES lNC 618 S 25TH ST BILLlNGS, MT 59107
WALTERLMCNUTT AGEQUIPMENT SALES 110 12TH AVE SW SIDNEY, MT 59270

### ARNIE A MOHL A-I PAVING 3131 HWY2E KALISPELL, MT 59901
DARRELMYRAN WESTMORELAND RESOURCES INC BOX449 HARDIN,MT 59034 DAVE NOELL APCAC BOARDMEMBER 1318 BABCOCKCIRCLE BILLINGS, MT 59105
TRACYOPP STONE ENERGY CORP 950 17TH ST STB 2600 DENVER, CO 80238
JIM PARKER PPLMT 1WAREHOUSE RD COLSTRIP, MT 59323
STEVEPILCHER POBOX 1715 HELENA, MT 59624-1715

DONQUANDER HOLLAND ANDHART 401 N 31ST ST STE 1500 BILLINGS, MT 59101
JEREMYRHODES 341ST CES/CEV 39 78TH STN MALMSTRMAFB, MT 59402­
HALROBBINS BISONENGINEERING INC 140011TH AVE STE 3 HELENA, MT 59601-4516
PAT SAINDON PLANNING

### DNISION MTDOT

- ENVIRONMENTAL

­ DEADHEAD HELENA,MT BOB MONTGOMERY WESTERNENERGY CO POBOX99 COLSTRIP, MT 59323
ANNISSA NELSON TANKNOLOGY 470 SCHROCKRD STE L COLUMBUS, OH 43229
ANN O'HAGAN WCECINC 1030 SOUTHAVE W MISSOULA, MT 59801
OWEN ORNDORFF YELP 1087 W RIVER ST STE 200 BOISE, ID 83702
DICKPAULSEN AMERICANLUNG ASSN 825 HELENAAVE HELENA, MT 59601
ELLENPORTER ROSEBURGFOREST PRODUCTS PO BOX 4007**MISSOU~A,** 

### MT 59806
TIM QUARLES THE RETEC GROUP INC 2048 OVERLAND AVE STE 101 BILLINGS, MT 59102
RANDALL RICHERT CONOCO POBOX 30198 BILLINGS, MT 59101-0198
CORRINE A ROSE RS TETONIPONDEROSA COUNTY BOX 610 CHOTEAU, MT 59422
GERALD SCHLOSSER SUPR OFPLANT SERVICES 1101 26TH ST S GREAT FALLS, MT 59405 TIMMULLIGAN RISKMANAGEMENT 

### DN POBOX 3767 BUTTE, MT 59702

# ,~ ALLENNIPPLE SPRING CREEK COAL CO PO BOX 67 DECKER, MT 59025-0067
SANDI OLSEN DEQ REM

- DEADHEAD

JOE O'ROURKE FH STOLTZE LAND & LUMBER BOX 1429 COLUMBIA FALLS, MT 59912
MIKEPHILBIN BLM 5001 SOUTHGATE DR BILLINGS, MT 59101
DANPOWERS 

# J BUTTE/SB HEALTHDEPT 25 WFRONTST BUTTE, MT 59701

JIM RAMAKER POBOX 760 CHOTEAU, MT 59422

MIKERINALDIRS ROSEBUD COUNTY SANITARIAN 251 NO 17TH FORSYTH, MT 59327 JOE RUSSELL FLATHEAD CTY HEALTHDEPT 1035 1STAVE W KALISPELL, MT 59901
CURT SCRIBNER YELLOWSTONE ENERGY

# LT..J 2215 FRONTAGE RD BILLINGS, MT 59101-7307 7536

### WADE SELLERS JONSESSO PETE SIMONICH SUPERIORENTERPRISES BUTTE/SIL VERBOWPLAN COLSTRIP STEAMELECTRIC 

### Q:0XI28 CRTHSE 155 W GRANITE STATION

.. ERIOR, MT 59872 BUTTE, MT 59701 PO BOX 38 COLSTRIP, MT 59323 DA VE SIMPSON JAYSKABO DENNIS J SNOWRS WESTMORELANDRESOURCES MONTANA DAKOTA UTILITIES DAWSON CITY SAl,{ITARIAN POBOX449 400N4THST 207 WBELL**fLA}UD~,MT** 

### 59034 BISMARCK, ND 58501 GLENDIVE, MT 59330
RICH SOUTHWICK PATRICIA SPENCER LYNNSTABENFELDT APCAC BOARD MEMBER ENVIRONMENT REPORTER MULTISTATEASSOCIATES**~C** 

### 173 COTTONWOOD RD BNA-I231 25TH ST NW S-382**515~GST** 

### TOWNSEND, MT 59644 W**ASH~GTON** 

### DC, DC 20037 ALEXANDRIA, VA 22314
FRED STEELE RICKSTEFANIC**JODEESTE~** 

### CSKT TRIBAL HEALTH BUREAU OF INDIAN AFFAIRS WELLS FARGO BOX 880 316N 26TH ST 175 N 27 ST ST IGNATIUS, MT 59865 BILLINGS, MT 59101 BILLINGS, MT 59101
STEPHENBLANKENSHIP FORD SAM STEPHENSON STAN STERNBERG 925 L ST STE 390 ARCO MT DOT

- ENVIRONMENTAL SACRANIENTO, 

### CA 95814 317 ANACONDAAVE MTDOT

- ENVIRONMENTAL

­ BUTTE, MT 59701 DEADHEAD 

# (; HELENA,MT FRED STIERS LARRY SVOBODA LILA TAYLOR**CONOCO~C** 

### US EPA REGION VID-8P-AR BOX 595 KIRLEYRT POBOX30198 999 18TH ST STE 300 BUSBY, MT 59016**BILL~GS,** 

### MT 59107-0198 DENVER, CO 80202-2405
SHANNONTHERRIAULT RAY TILMAN STEVE TURKIEWICZ CITY COUNTY HEALTH DEPT MONTANA RESOURCES MONTANA AUTO DEALERS 301 WALDERST 600 SHIELDS AVE ASSN MISSOULA, MT 59802 BUTTE, MT 59701 501 N SANDERS ST HELENA, MT 59601 BARR! TW ARDOSKI TONYTWEEDALE DARYLURAN MAXIM TECHNOLOGIES**~C** 

### MTCHEER WILLISTON**BAS~** 

### INST PIPEL POBOX 2730 404 E SPRUCE STAPT 2 POBOX 131 MISSOULA, MT 59806 MISSOULA, MT 59802-4655 GLENDIVE, MT 59330
CALLIE VIDETICH STEVE WADE GERALD WAGNER US EPA REGION VIII-8P-AR BROWNINGKALECZYC BERRY BLACKFEETTRIBAL 999 18TH ST STE 300 & 

### HOVEN PO BOX 2029 DENVER, CO 80202-2466 POBOX 1697**BROWN~G,MT** 

### 59417 HELENA, MT 59624 ,"SYWAHL SCOTT WALKER

.**KEV~** 

### K. WALSH EPA YELLOWSTONE CITY COUNTY ENVIRONMENTAL EPA-DEADHEAD 510N BROADWAY CONSULTING**BILL~GS,** 

### MT 59101 451 FREEDOM AVE**BILL~GS,** 

### MT 59105

### JOHNWARDELL EPA EPA-DEADHEAD

JIM ZABROCKl CUSTER CO SANITARIAN'S OFFICE

-- REPOSITORY COURTHOUSE MILES CITY, MT 59301 CENTURY COMPANIES INC BOX739 LEWISTOWN, MT 59457

MONTANA AUDUBON PO BOX 595 HELENA, MT 59624

PACK & 

### COMPANY CONST POBOX8150 KALISPELL, MT 59904-1150 LINDA WIEGERT MERIDIAN OIL INC 801 CHERRY ST STE 700 FORTWORTH, TX 76102
LARRYZINK MT SULPHUR & 

### CHEMICAL CO PO BOX 31118 BILLINGS, MT 59107
FARMERS UNION OIL CO 1000 SMELTERAVE BLACKEAGLE, Mr 59414

MONTANA POWER CO PO BOX 38 COLSTRIP, MT 59323 STEVE D WRIGHT COLUMBIAFALLS ALUMINUM 2000 ALUMINUM DR COLUMBIAFALLS, MT**5991~** 

### CARBON COUNTY HEALTH DEPT BOX466 RED LODGE, MT 59068
MONTANA MOTORCARRIERS 501 N. SANDERS ST #201 HELENA, MT 59601-4552

NORTHERN PLAINS RESOURCE COUNCIL 2401 MONTANAAVE #200 BILLINGS, MT 59101-2336

Last edited by

### Barb, 8/1/05

### MontanaDEQ

- Legal Unit

- RuleNotices With Hearing Page 1of2

Administrative Rules ofMontana 

# Notices ofProposed Rulemaking with Hearing



# ... j

PublicHearingDate Where CommentDueDate Purpose 10:30 a.m. Room III, 1520 East 5:00 p.m. October4, 2005 Sixth Avenue, Helena, October 11, 2005 Montana

1:30p.m. Room 111, 1520 East 5:00p.m. ProposedAmendmentof October 3, 2005 Sixth Avenue, Helena, October 10, 2005 ARM 17.8.759 !Air Montana Quality

- Reyjew of PennitApplif:at iQl1L MARNoticeNQ. 17-228)

10:30 a.m. Room 111, 1520East 5:00p.m. August 3, 2005 Sixth Avenue, Helena, August 10, 2005 Montana

1:30p.m. Room 111, 1520 East 5:00p.m. March 23,2005 Sixth Avenue, Helena, March 30, 2005 Montana

10:30 a.m. Room 35, Metcalf 5:00p.m. March 3, 2005 Building, 1520 East March 10, 2005 Sixth Avenue, Helena, Montana

1:30p.m. Room 111, 1520East 5:00p.m. January 14,2005 Sixth Avenue, Helena, January 21, 2005 Montana Proposed Amendment of ARM 17.8.743, New Rules 1-VI (bjr Quality

­ Oil and Gas Well Facilities=:MAR Notice No.17-229)

AmendedNoticeof Proposed Amendment (Water Quality

­ Concentrated Animal Feeding**~erations** MAR Notice No. 17-227) Proposed Amendmentof ARM 17.8.504,505,514 (Air Quality

- Air Quality Pennit AI!lllication,**~eration** and Ollen Burning Fees

- MAR Notice No. 17-226) Proposed Amendment of ARM 17.8.102,103,202, etc. (Air QualityIncomoration By Reference

-**~AR** Notice No. 1 L::?:?$) Proposed Amendment of ARM 17.53.102, 105, etc. (Hazardous WasteAuthorization ofthe Hazardous Waste Progrnm

- MARNotice No. 17-224) Proposed Amendment of ARM 17.38.106 (Public Water SUllllly

- Fees for ReviewofPublic Water and Sewage System Plans and**S~£i:fications**

- MARNQticeNo.R 223) 5:00p.m. ProposedAmendment of Room 111, 1520 East 8:30 a.m. Sixth Avenue, Helena, February 4, 2005 ARM 17.30.1301,1304, January 14,2005 1310, etc. (WaterQuality Montana

- Concentrated Animal Feeding Qperations



### 8/4/2005 

### http://www.deq.state.mt.us/dirllegal/hearing.asp 

# c

# •:If!"" Montana Department of 

# 1ENvIR(())NMENTALQUJS.

...............TY BrianSchweitzer,Governor P.O. Box 200901 Helena, MT 59620-0901 (406) 444-2544 www.deq.mt.gov

DEPARTMENT OF ENVIRONMENTAL QUALITY TESTIMONY IN THE MATTER OF AMENDMENT OF AIR QUALITY RULES PERTAINING TO OIL AND GAS WELL FACILITIES October 4, 2005
For the record, my name is Brian Hohn. I am an Environmental Specialist in the Montana Department of Environmental Quality's Air Resources Management Bureau. I am here to present testimony for the Department.
Senate Bill 95, passed by the 2005 Montana Legislature and codified as 75-2-103 and**75-2-~11,** MCA, of the Clean Air Act of Montana, allows the owners or operators of oil and gas well facilities to drill and operate up to 60 days prior to submitting an application for an air quality permit. Section 75-2-211(2) (d), MCA, also states that the Board shall establish air emission control requirements at oil and gas well facilities until the Department issues a decision on a permit application for the facility. If the oil and gas well facility complies with these requirements, SB 95 allows the facility to continue to operate until the Department's decision on the permit application is final. The Board is proposing to adopt and amend air quality rules to allow the owner or operator of an oil and gas well facility, that otherwise requires an air quality permit, to operate the facility up to 60 days prior to submitting an application for an air quality permit. The proposed rules would require the owner or operator to install and operate certain specified air pollution control equipment and comply with certain air pollution control practices from the well completion date of the oil and gas well facility until the Department's decision on the air quality permit application is final. Currently, the owners or operators of oil and gas well facilities with the potential to emit more than 25 TPY of any criteria pollutant or 10 TPY or more of any single hazardous air pollutant (HAP) are required to obtain an air quality permit before constructing the well. The proposed new and amended rules would allow the owner or operator of an oil and gas well facility completed after January 3, 2006, to construct and operate equipment essential to complete the well up to 60 days prior to submitting an application for an air quality permit. This would allow for a more accurate evaluation of the well's potential emissions before a permit is issued, and would avoid lengthy and costly permit processes for wells that may not actually operate beyond the completion date. Accordingly, ARM 17.8.743 would be amended to exclude oil and gas well facilities from the requirement of submitting an application for a Montana air quality permit 180 days prior to construction.
New Rule I would define the phrases used in the new rules, based on definitions of the same phrases in 75-2 103 (13) and 75-2-211 (2) (b) , MCA.
New Rule II would specify the potential to emit permitting threshold for oil and

# ~ gas well facilities. New Rule II would require the owner or operator of oil and gas well facilities completed or modified after March 16, 1979, to submit an

EnforcementDivision • Permitting & Compliance Division • Planning,Prevention & AssistanceDivision • Remediation Divisionapplication for a permit within 60 days after the completion date of the well or by January 3, 2006, whichever is later.
New Rule II also would allow oil and gas well facilities completed prior to January 3,2006, to delay compliance with New Rule III until July 1,2006. This would allow owners and operators of existing oil and gas well facilities sufficient time to retrofit those existing wells with appropriate emissions control technology if necessary. New Rule III would contain the requirements for controlling emissions of VOCS and HAPs from oil and gas well facilities until the Department's decision on the air quality permit application is final. While it is reasonably necessary to allow oil and gas well facilities to complete the well drilling prior to requiring submittal of an air quality permit application, it is equally necessary to require the well facility to operate appropriate air pollution control equipment until its air quality permit becomes final. Under current air quality permitting requirements, sources of air pollution are required to install and operate "best available control technology" (BACT) in order to protect public health and the environment. The specific air pollution control requirements contained in New Rule III mirror the requirements contained in recently issued permits for oil and gas well facilities and therefore constitute presumptive BACT with which the well facilities will have to comply until facility specific requirements are established through the permit.
New Rule IV would contain requirements to_, conduct monthly leak detection inspections and repair any detected leaks.
New Rule V would contain recordkeeping requirements concerning leak detection and repair. New Rule VI provides that the effective date of the new rules would be January 1, 2006.
Jane Amdahl, DEQ staff attorney, has prepared a HB 521 review, comparing stringency of state and local rules to any comparable federal regulations, and a HB 311 review, assessing impact on private property. In regard to the HB 521 review, the proposed new rule would not make the state rules more stringent than comparable federal regulations or guidelines. Therefore, no further HB 521 analysis is required.
In regard to the HB 311 review, the present proposed action involves rules affecting use of private real property for operation of air pollutant sources, and the Board has discretion legally not to take the action. Therefore, the Private Property Assessment Act applies to this proposed rulemaking, and completion of an Attorney General's Private Property Assessment Act Checklist is required. This checklist was completed. Based upon completion of the checklist, the proposed rulemaking does not have taking or damaging implications, and no further HB 311 assessment is required.
In addition to the MAR notice, the proposed amendment was publicly noticed in five daily newspapers in Montana and was mailed to the Department's interested parties list and the Air Pollution Control Advisory Council. The Department recommends adoption of the amendment to ARM 17.8.743 and New Rules I through VI as proposed in the Montana Administrative Register.



### 2

# •!If!"" 

# 'f Montana Department of 

# ENVIRONMENTAL QUALITY BrianSchweitzer,Governor P.O. Box 200901 • Helena, MT 59620-0901 (406) 444-2544 • www.deq.mt.gov



### OFFICE MEMORANDUM
TO: Board ofEnvironmental Review

# ::,~~ FROM: Jane B. Amdahl, DEQ StaffAttorney
SUBJECT: House Bill 521 and House Bill 311 review for proposed amendment ofair qualityrule ARM 17.8.743, and proposed newrules I throughVI, pertaining to the permitting ofoil and gas well facilities.
DATE: September 29,2005



# , HB 521 REVIEW (Comparing StringencyofState and Local Rules to Any Comparable Federal Regulations or Guidelines) Sections 75-2-111 and 207, MCA, codify the air qualityprovisions ofHouse Bill 521, from the 1995 legislative session, byrequiringthe Board ofEnvironmental Reviewto make certain written findings after a public hearing andpublic comment,priorto adopting a rule to implementthe Clean AirAct ofMontanathat is more stringent than a comparable federal regulation orguideline.
In this proceeding, the Board isproposing to AmendARM 17.8.743 and adopt NewRules I through VI, which provide generally that:

• The owner or operatorofan oil and gas well facility for which a Montana air qualitypermitisrequired may wait until January 3, 2006, oruntil 60 days after the initial well completion date, whicheveris later, before SUbmitting an applicationfor thepermit.

• The owner or operatormay operate the oil orgas well facility until the Department's decision onthe application is [mal, as long as therequirements of the NewRules are complied with.

• The owner oroperatormustinstall certain emission control equipmentand complywith certain 

### airpollution control practices for oil and gaswellhead equipment and oil and condensate storage tanks with apotentialtoemit volatile organic compound (VOC) vapors greaterthan 500 Britishthermal units per standard cubic foot (Btu/sct).

Enforcement Division • Permitting 8< Compliance Division • Planning,Prevention 8< Alisistance Division • Remediation Division

### • The owneroroperatormust comply with certain restrictions in loading hydrocarbon liquids into transport vehicles, particularlyifVOC vapors exceed 500 Btulscf, and with certain limitations on stationary internal combustion enginesgreaterthan 85 brake horsepower (BHP).

• Oil and gas well facility operations must comply withthe ambient air quality standards for hydrogen sulfide and other criteria pollutants.

• Owners or operators ofoil and gas well facilities must inspect, repair, and keep certainrecords concerningthose facilities. Federal regulations do not govern minorsources ofemissions, but onlymajor sources. The definition of"major source" found in 40 CFR 70.2 includes a provision forbidding the emissions ofhazardous airpollutants (HAPs) from individual oil and gas wells to be aggregated when determining whether a major source title V permitwill 

### be required: [E]missions from any oil orgas exploration orproduction well (with its associated equipment) and emissionsfrom anypipeline compressor orpump station shall not be aggregated with emissions from other similar units, whetherornot such units are in a contiguous area orunder commoncontrol, to determine whether such units or stations are major sources .... 40 CFR70.2.
Because federal regulations do not allowthe aggregation ofemissions from oil and gas wells when determining ifthe wells should be considered to be a major source ofHAPs requiring a title V permit, it is unlikely any single well will produce sufficient HAPs emissionsby itselfto require such apermit. Ifno title V permit is required, thenthe state rule and federal regulations are not comparable. Federalregulations for major sources ofnon-HAPs emissions, however, do not forbid aggregating oil and gas wells that are in a contiguous area orunder common ownership. In that case, the federal regulation and the staterule are comparable and neither is more stringentthanthe other. 

### Itshould be noted that theproposed NewRules include a graceperiod ofsixtydays after the initial completion date before the application for anairquality permit must be submitted to theDepartment, which is different than the federal regulations for permitting oil and gas well facilities. Similarly, theproposedNewRules allowthe oil and gas well facility to be operated without a permituntil the Department makes a decision onthe permit application, which also is notprovided for in federal regulations. In neither ofthese differences is the state rule more stringentthan the federal regulation. TheNewRules do require the owner oroperator to comply with certain emission control requirements during the grace period between initial well completion andthe Department's permittingdecision, while federal regulations do not require emission controlswhen a permit is not required. However, ifthe well neverproduces enough emissions to require a permit (i.e., ifthe well is dry or simply doesnotproduce enoughproduct), there will be no violation ifthe emission control requirements are not implemented. Ifthe well ultimately does require apermit, then it will berequired to complywith the emission control ..'\ 

### "'fIIfIIIII

2

### requirements anyway. Ineithercase, the NewRules are not more stringentthan the federal regulations.
In sum, the proposed amendment and NewRules arenotmore stringent than any comparable federal regulations.
HB 311 REVIEW (Assessing Impact onPrivate Property) Sections 2-10-101 through 105, MCA, codify House Bill 311, the Private Property Assessment Act, from the 1995 legislative session, by requiring that, prior to taking an action that has taking or damaging implications for private real property, a state agency must prepare a taking or damaging impact assessment. Under Section 2-10-103(1), MCA, "action with taking ordamaging implications" means:

a proposed state agency administrative rule, policy, or permit condition or denial pertaining to land or water management or to some other environmental matter that if adopted and enforced would constitute a deprivation ofprivate property in violation ofthe United States or Montana constitution.


# , Section 2-10-104, MCA, requires the Montana Attorney General to develop guidelines, including a checklist, to assist agencies indeterminingwhether an agency action has taking ordamaging implications. The present proposed action involves a rule potentially affecting use of private real property. I've completed an.Attorney General's Private Property Assessment Act Checklist, which is attached to this memo. Theproposed rule amendments would not: 

## * result in either a permanent or indefinite physical occupation of private property; 

## * deprive any owner ofall economicallyviable uses ofprivate property; 

## * deny a fundamental attribute ofprivateproperty ownership; 

## * require a private property owner to dedicate a portion ofproperty or grant an easement; 

## * have a severe impact onthe value ofprivateproperty; or 

## * damage private property by causing a physical disturbance with respect to thepropertyinexcess ofthat sustained by thepublic generally. Based upon completion of the attached Attorney General's Checklist, the proposed rulemaking does not have taking or damaging implications, and no further House Bill 311 assessment is required.

3

### Name ofProject: Proposed Amendment ofAir Quality Rule ARM 17.8.743 and Adoption ofNew Rules I through VI MARNoticeNo. 17-229
PRIVATE PROPERTY ASSESSMENT ACT CHECKLIST DOES THE PROPOSED AGENCY ACTION HAVE TAKING ORDAMAGING IMPLICATIONS UNDER THE PRIVATE PROPERTY ASSESSMENTACT?
YES NO 1. Does the action pertainto land orwatermanagement orenvironmental regulation affecting :grivate real2ropertyorwaterriZhts? X


### 2. Does the action result in either a permanent or indefinite physical occupation of ppvatepro:gerty? X


### 3. Does the action deErive the owner ofall economically viableuses ofthe property? X 

### 4. Does the action deny a fundamental attribute ofownership? (Ex.: right to exclude others; rightto dispose ofthe property) X


### 5. Does the action require a property ownerto dedicate a portion ofproperty orto grant an easement? [Ifthe answer is NO, skip questions 5a and 5b and continue with question 6.] 5a. Is there a reasonable, specific connectionbetweenthe governmentrequirement and legitimate state interests? 5b. Is the governmentrequirementroughlyproportional to the impact oftheproposed use ofthe property? X



### 6. Does the action have a severe impact onthe value oftheproperty? (Consider economic impact, investment-backed expectations, and the characterofthe government X 

## I action.) 7. Does the action damage the propertyby causing some physical disturbance with respect to theproperty in excess ofthat sustained bythe public generally? [Ifthe answer X

# ~""",-,a.**~** Signature ofReviewer 

## I isNO, do not answer questions 7a

- 7c.] 7a. Is the impact ofgovernment action direct, Eeculiar, and significant? 

# , 7b. Has government action resulted inthe propertybecoming practically inaccessible, waterlogged, or flooded? 7c. Has government action diminished property values bymore than 30% and necessitated the physical taking ofadjacent property orproperty across a public way from the property inquestion? X 

### Taking ordamaging implications? (Taking ordamaging implications exist ifYES is checked in response to question 1 and also to anyone ormore ofthe following questions:
I 

### 2,3,4,6, 7a, 7b, or 7c; orifNO is checked in response to question 5aor5b.

### Page 1ofl

, Brown, Jan
From: Homer, Charles Sent: Tuesday, October 11 , 2005 10:39 AM To: Brown, Jan Subject: FW: Comments on Amendment to ARM 17.8.743 (SB 95)

-----Original Message----­ From: Don Quander [mailto:DQuander@hollandhart.com] 

### Sent: Tuesday, October 11, 2005 10:04 AM 

### To: DEQ BER Cc: gabarnes@encoreacq.com; Arthur, Dan; dbockelmann@a!l-lIc.com; Homer, Charles; Hohn, Brian 

### Subject: Comments on Amendment to ARM 17.8.743 (5B 95)

. Secretary to the Board of Environmental Review:

Please file the attached comments of Encore Acquisition Company with respect to the proposed amendment to ARM 17.8.743 (implementing SB 95).
Ifthere are any questions, please contact me at this e-mail address or at 406-252-2166.
Thank you for your assistance. (, Donald W. Quander



### 10/1112005

# .~ Ms. Joyce Wittenberg, Secretary Board of Environmental Review 1520 East Sixth Avenue Helena, Montana 59620-0901 Via: E-mail to ber@mt.gov Re: Comments on Proposed Amendment to ARM 17.8.743 (SB 95 implementation) Members of the Board: Encore Acquisition Company ("Encore") appreciates the opportunity to offer these written comments with respect to the proposed amendment to ARM 17.B.743, which is intended to implement the requirements of 58 95, as adopted by the 2005 Montana Legislature. These comments supplement the oral testimony presented on behalf of Encore at the hearing in this matter conducted on October 4, 2005.



# , First, Encore wishes again to thank the staff of the Department of Environmental Quality ("DEQ") for its discussions with affected parties and its effort to shape a rule that implements the intentions of 58 95 in a practical manner. The Montana legislature sought through 58 95 to avoid a costly disruption to Montana's oil and gas economy, while also assuring air quality protection. Encore shares the view that, ultimately, a balancing of these objectives probably can be best achieved for oil and gas well facilities through a registration program, rather than through application of the procedures associated with the State's "preconstruction" air permitting program. However, DEQ has made a good effortto develop a set of protective procedures that will address these concerns in the interim, and Encore accordingly supports the adoption of the present rule, subject to some additional clarification. Specifically, Encore recommends that DEQ's authority to implement the program with flexibility be clarified. Generally speaking, Encore believes that DEQ has authority to provide for alternative conditions or controls for changing operational circumstances. DEQ has included in permits alternative operating scenarios, including changes in equipment and operating practices, which serve to provide equivalent control and air quality protection. It would be appropriate, however, to remove any uncertainty about that flexibility by making specific provision in the present rules. Encore requests the following, additional language be included in the proposed rules:

• At the end of Rule II, insert a new subsection as follows: "(5) An owner or operator may revise or amend its permit application to address changing circumstances at its all and gas well facility before the department's decision on the permit is final by filing with the department a written description of proposed changes that complies with the requirements of this subchapter."

• At the end of Rule III, insert a new subsection as follows: "(3) The owner or operator of an oil and gas well facility may provide In Its application for alternative operating scenarios and emission control equipment or practices that address changes In production and operations, provided that the emission limitations or controls are at least as protective as those required In (1), and the department may approve such alternative operating scenarios, equipment and practices in a Montana air quality permit Issued for the facility."


### Neither ofthese clarifications is intended to waive any ofthe substantive requirements ofthe proposed rules, but rather to clarify: 1) the applicant's ability to 

### revise its filed permit application while still pending to reflect changing

### circumstances at the facility (e.g., a change in production levels); and 2) the DEQ's authority to accept applications and issue permits under these rules that include alternative but equally protective controls or limitations for changing operations.
Encore will continue to work with the DEQ and other parties to establish and implement sound rules for oil and gas well facilities, and will work with DEQ and other parties to develop a more efficient registration system for such facilities. Respectfully submitted October 

### 11, 2005, on behalfofEncore Acquisition Company through its undersigned counsel. 

# S) Q..,JJ. (,Q.

# Q~ Donald W. Quander Holland 

### & Hart, 

### LLP Suite 1500 401 North 

### 31 st Street Billings, MT 59101 

### (406) 252-2166 

# J

# .MPfi VlONTANA PETROLEUMASSOCIATION
.." PO Box 1186 Helena, MT 59624

# ~.-V'~---------------- David A. Galt Executive Director OFFICERS Cole Chandler, President Klabzuba Oil & Gas Leland Griffin, Vice President Montana Refining Company Ralph Spence, Jr., Treasurer Spence Accounts BOARD OF DIRECTORS Jerome Anderson Anderson & Baker Law Office Bill Ballard Ballard Petroleum Holdings LLC Phil Boydston Burlington Resources Colby Branch Crowley Law Firm Bruce Brodie ExxonMobil Pat Callahan NorthWestern Energy Mark Carter I"'foreOperating LP**~nEvans**

Oilfield Consultants, Inc. Bob Fisher Bal/ard Petroleum Holdings, LLC Leland Griffin Montana Refining Company Terry Holzwarth Nance Petroleum Corp. Jay Kieke Devon Energy Corp. Pat Kimmet CHS Inc. Jack King Hancock Enterprises Dave Schaenen DLD Enterprises Keith Tiggelaar WBI Holdings, Jnc. Bruce Williams Fidelity Exploration & Production Mike Wirkowski ConocoPhillips TerryWisner Jefferson Energy Trading, LLc 406-442-7582.fax 406-443-7291



### October 10, 2005

Ms. Joyce Wittenberg Board ofEnvironrnental Review P.O. box 200901 Helena, MT 59620-0901 Subject: Amendment ofARM 17.8.743

DearMs. Wittenberg:
TheMontana Petroleum Association appreciates the opportunityto offer comment on the amendment to ARM 17.8.743. These amendments allow the oil and gas industry to get new wells underproductionbefore securing an airqualitypennit. This effort will allow ourindustryto have a more accurate evaluation ofthewell'spotential emissions before a pennit is issued. We submit the following comments for consideration in this rulemaking:
1. There shouldbe some language in

### theproposedrules that allows flexibility on behalfofthe DEQ to deal with changes in operationbefore the final pennit is issued. It

### is ourbeliefthat DEQ has the authority to authorize such alternative methods at this time, but we feel it would bebetterifsome authorization was contained within this administrative rule. We seek to include a provision in thepennit application which authorizes operational flexibility to enable control technologymethods to bemodified withoutpriornotice to theDEQ, provided that suchmodifications result in equally effective emissions control. The operational flexibility is necessaryto address the types ofactivities occurring frequently in the earlydevelopment stages ofoil and gas wellsites.
2. MPA would like to propose two modifications to proposedRule 

## n. Both modifications are for the purpose ofmaking the proposed new subchapter consistent with currentpre-constructionpermitting requirements found in 

### subchapter7, 8, 9 and 10. The two suggestions are: A.

### Delete the following phrase (represented as 

### a 'strikeout') in 

### the first sentence ofRule II (1): "Therequirements ofthis subchapter apply

... more than 25 tons/year (TPY) ofanyairbornepollutantthat is regulated 

# , under this chapter, 10 TPY ormore ofinei'/idualhazareoas airpollutant (HAP), or25 TPY ormore ofany combiBations ofHAPs." 

### B. Deletethe last sentence (represented as a 'strikeout') in the last sentence ofRule

## n. Forpurposes ofthis rule, PTE is calcalatee '...,ithout regare to any air pollution control equipment usee at the facility.Page 2 Montana Petroleum Association 10111105 

# J Thesetwo suggestions will correct therulebymakingthe applicabilityrequirements consistent with the permit applicabilityrequirements found in ARi\117.8.740 et. seq. Otherwise, the rules as proposed are more stringentthan facilities ofequivalent (emission) size. As proposed, therule imposes requirements on oil and gas well facilities that would otherwisenotbe appropriate or legitimate for other facilities with the same emissions.
3. We are concerned with New Rule III (f) and this that the requirement on85HP engines is too restrictive. Theprovisions are established to control leanbum (maybe a betterterm is Clean Bum) engines with oxidation catalysis at anything above 85 HP. Bydesign leanbum (Clean Bum) engines have low emissions ofair contaminates. Lean Bumengines typically emit 2 gmlHP*HrNOx and 2 to 3 gm!HP*Hr CO. The addition of an oxidation catalysis will notreduce the emissions ofNOx. 

### Itwill reduce CO, but at whatcost to the operator. MPA asserts that the cost is much greaterthan the benefit ofreduced CO emissions. Considerthe example below: Mathematical Example: At 85 

### HP 85 Hp * 3 gmlHP*HR * 0.00965 (conversion factor) = 

### 2.46 

### TN CO Additional cost $ 

### OlTon ofCOreduced Oxidation Catalysis on 85 HP unit costing approximately$15K 85 Hp 

## * 3 gmlHP*HR

## * 0.00965 (conversion factor) 

## * 0.1 (90% reduction) = 

### 0.25 

### TN CO Additional cost $ 

### 6787/Ton ofCO reduced. This represents a significant cost and we feel is excessive. Wehave offered anothermathematical example that would showwhat theHP would have to be on a leanbum engine to reach the 15 

### TN controL Please considerthe following: 

### To getto the 15 TIY

### triggerfor control At 2 gmIHP*Hr CO 

### 15 TNI(2**~*HR** 

## * 0.00965 (conversion factor)) 

## =777 Hp At 3 gmIHP*HrCO 

### 15 TN1(3 gmIHP*HR

## * 0.00965 (conversionfactor)) = 

### 518 Hp
TheMontanaPetroleum Association is eager to workwiththe DEQ to address these issues. Again, MPA greatly appreciates yourefforts andwe look forward to working withyou as we develop Montana's vast resOUrces.
KindRegards, 

# David A. Galt

David A. Galt ExecutiveDirector MontanaPetroleum Association

### Comments onthe amendment to ARM 17.8.743 Page 1of 1

Brown, Jan
From: Wittenberg, Joyce on behalfof DEQ BER Sent: Monday, October 17, 200510:58 AM To: Brown, Jan Subject: FW: Comments on the amendment to ARM 17.8.743

-----Original Message----­ 

### From: Wallace, Scott [mailto:Scott.Wallace@dvn.com] 

### Sent: Tuesday, October 11, 2005 10:30 AM 

### To: 

### DEQ BER Cc: Montana Petroleum Association 

### Subject: Comments on the amendment to ARM 17.8.743
Dear Reviewer.
Devon Energy wishes to provide the following comments for consideration on the amendment to ARM 17.8.743. Devon worked on the development ofthe comments provided by the Montana Petroleum Association and wishes to support those comments as well. In addition to the MPA comments, Devon would like to provide this additional information for consideration.
New Rule IV Inspection and Repair Requirements (;, The new provision should allow insignificant sources to be exempted from inspection and repair requirements as defined within the section. Please note that it is the job of industry to keep the gas in the pipeline and therefore all operators have systems to ensure that noticeable leaks are repaired as soon as possible. However, a prescribed system may go against company policy and require burdensome record keeping for insigni.ficant sources of emissions. We would like to propose the following new language for New Rule IV: (1) Where the calculated site VOC fugitive emissions exceed 2 Tons perYear the owner oroperator ofan oil and gas well facility shall inspect all piping components with a VOC content in excess of 10% by weight for leaks each calendar month

...... The proposed change would allow insignificant sources to continue with in-place monitoring and it better defines which piping needs to be monitored. The 2 tons peryear is meant as a starting point for discussion and the VOC content in excess of 10% byweight is utilized by several federal inspection and maintenance programs including NSPS KKK for on shore gas plants.
Thank you for the opportunity to provide these and other comments. Ifyou need further information. please feel free to contact me via email or at405-228-8397. Sincerely Scott Wallace
Devon Energy



### 10/1712005 

# c14'00 11TH AVENUE • HELENA, MT 59601 • 406-442-5768 FAX 406-449-6653 • E-MAIl: bison@bison-eng.com • www.bison-eng.com

## ,-,"".,-~6tA~'.:.....AD 

## iii this 

## II

- day of October 11, 2005 

# R£CEIV£D**~** OCT 1 3 Z005 '7

___c'Clock

__ M. Joyce Wittenberg Board Secretary Board of Environmental Review 1520 E. Sixth Avenue PO Box 200901 Helena, MT 59620;.0901 RE:Public Comments

- MAR Notice No. 17,.229

. .

. . . The following comments are offered regarding the proposed amendment.and adoption of rules pertaining to air quality permits for oil and gas well facilities. A public hearing was held 

### em this ' matter on October 4, 2005, at" which oral testimony was offered. This document represents written follow-up to that testim'ony. '

. By way of,introduction .1 have been involved with air pollution permitting and regulatory analysis for over 30 years. Bison Engineering, Inc. has been involved in the business for over 25 years and has represented many industrial and. governmental organizations involved in the air " pollution controlfield. 

## Areview of the proposed regulations' and amendments has been conducted. On balance,. I am

.in favor of the proposed Jules and thek**un~erlying** intent. To -accomplish this intent and to maintain consistency with other related regulations, the following

.discussion is offered. Following this discussion are several specific recOmmendations to the language of the Board's

.proposal. Discussion. 

### 1. It appears that proposedNEW RULES I through VI are intended to be codified as a new subchapter to the air quality rules [the .air quality rules are found in Administrative Rules

. of Montana (ARM), .Title 17, Chapter 8]. If.that is the case, then it is noted that the

.proposed new sub..;chapter does not contain a definition of "potential to emit.» I believe' that it is important that such a definition be either in the sub-chapter itselfor referenced to another**~ocation.** The reason is that the term "potential to emit" (PTE) is a critical term

. used to identify which facilities need or dO.not need an .air" quality·permit. The need for a permit is part and parcelofthe intent and requirements ofthe proposed rules:
2. NEW RULEII outlines which facilities are subjt3ct to this new**sub-chapter.~n** general, tbe sub-chapter is intended.tbapply to oil and gas well facilities that need (or will need) an air quality permit as further described ill Sub-chapter 7. A review of both the proposed

. <rule and the requirements for an air quality permit specified in Sub-chapter 7 yield an inconsistency. The inconsistency is one in which the new-subchapter makes certain' oil and gas well facilities subject to permitting requirements that would not be present for any other 'facility whose emissions could be identical. This creates an unintended, I presume, burden on the oil and gas industry. In other words, a permit is required (via the new rule) forfacilities that would not otherwise require a permit if it were any other class' ofsources.

An Employee Ovvned CompanyI Page 2

The language that creates this inconsistency is found at the end of the first sentence in NEW RULE 

### 11(1). The proposed rule. requires, effectively, an air quality permit under Sub-chapter 7 if the facility emits more than 10 tons/year of any hazardous air pollutant. The same requirement,

.however, is not found in Sub-chapter 7 itself. As a result, suggest that this additional requirement be removed per the recommendation below. 3. Helatedto the discussion above, there is another inconsistency between the proposed new sub-chapter and the actual requirements for pre-construction permits found in Subchapter 7 (and elsewhere). The proposed rule in the last sentence of paragraph (1) states effectively that any emissions reductions that occur from the use of air pollution control equipment may not be used to determinethe PTE of a facility. This is important because it is thePTE of a facility that dictates whether the proposed sub-chapter applies .tothe subject facility at all. It is clearly understood that there are several important caveats to the use of an air pollution control device in the definition of PTE within Sub-chapters 7, 8,9, 10 and 12. However, the proposed jc:mguage for the new sub-chapter unfairly prehibits the· use of the equipment that is otherwise offered to any non-uoil and gas well facility." As a matter. of fairness· and consistency, it seems appropriate that this restriction be removed

.

. :Specific recommendations are provided below. Recommendations. 1. Delete the following phrase (represented as a Istrikeout') in the first sentence of Rule 11(1): ,"The requirements ofthis subchapterapply

. .. more than .25 tons/year (TPY) ofany airborne pollutant that is regulated under this chapter,-4f)

. TPY or more**ohndi~~dual** hazardousaJrpoltutant (HAP), or25 TP¥ or

more 01 any oombinatioRs of**HA~.** " 2. Delete the last sentence (represented as a 'strikeout') of Rule II. Porpurposes ofthis rule, PTE is oalcuJatod ltIitf:/out regard 

## to any air polJ·ution oontrol equipment used

### at the moility. 3. Reference the definition of PTE in Rule I as follows: (4) "Potential to Emit" (PTE) has the meaningprovidedin ARM 17.8.740(13).·

, Thank you for the opportunity to present this testimony_ Sincerely, BISON ENGINEERING, INC. 

# 1/.4£J9JJ2 '

Harold

## W. -Robbins**~President**MAR No•.,. No. \

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16 17 18 19

21 22 23 24

26 27 BEFORE THE BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA



### In the matter of the amendment ) PRESIDING OFFICER REPORT 

### of ARM 17.8.743 pertaining to ) Montana air quality permits ) when required, and adoption of ) new rules I-VI pertaining to ) oil and gas well facilities )
INTRODUCTION
1 . 

### On October 4, 2005, I presided over and conducted the public hearing held in Room 111 of the Metcalf Building, 1520 East Sixth Avenue, Helena, Montana, to take public
comment on the above-captioned proposed amendment to ARM 17.8.743. The amendments allow the owners or operators of oil and gas well facilities to get new wells under production up to 60 days prior to submitting an application for an air quality permit. Air and emission control requirements apply until the Department issues a decision on a permit application for a facility. These amendments and rules implement Senate Bill 95 that is codified at Mont. Code Ann. 

### §§ 75-2-103 and 75-2-211. Notice of the hearing was contained in the 2005 Montana Administrative Register (MAR) No. 15, MAR Notice No. 17-229, published on August II, 2005. A copy of the notice is attached to this report. (Attachments are provided in the same order as they are referenced in this report.) 2. The hearing began at 10:30 a.m. and concluded at 11:45 a.m. The Court Reporter, Sherron Walstad of the

PRESIDING OFFICER REPORT PAGE 1

### 5

10

15

20

251 2
3 

### 4

6 7 8 9

11 12 13 14

16 17 18 19



### 21 22 23 24

26 27 reporting service of Lesofski and Walstad in Helena, MT recorded the hearing. 3 . 

### I announced that persons at the hearing would be given an opportunity to submit their data, views, or arguments concerning the proposed action, either orally or in writing. At the hearing, I identified and summarized the MAR notice, stated that copies of the MAR notice were available in the hearing room, and read the Notice of Function of Administrative Rule Review Committee as required by Mont. Code Ann. § 

### 2 4-302(7) (a). I addressed the rulemaking interested persons list and the opportunity to have names placed on that list. I recited the authority to make the proposed rule, announced the opportunity to present matters at the hearing or in writing, as stated in the MAR notice, and explained the order of presentation. At the conclusion of the hearing I announced that the proposed rulemaking was expected to be considered by the Board at it's meeting on December 2, 2005. SUMMARY OF HEARING 4 . 

### Mr. Brian Holm, an Environmental Specialist with the Air Resources Management Bureau of the Department of Environmental Quality (DEQ) gave a brief statement that the Department was recommending that the amended rules and proposed new rules be adopted as proposed in the MAR notice. He also submitted a written statement, which is attached to this report. Mr. Holm stated that DEQ recommends adoption of the proposed rule amendments.

PRESIDING OFFICER REPORT PAGE 2

### 5

10

15

20

25 

# , 1 2 3 4

6 7 8 9

11 12 

# , 13 14

16 17 18 19

21 22 23 24

26
27 

### 5 . 

### At the hearing the following people provided
comments: Mr. David Galt from the Montana Petroleum Marketers Association l 

### Mr. Scott Wallace from Devon Energy I 

### and Mr. Mike Mungas from the Nance Petroleum Corporation. Mr. Harold Robbins from Bison Engineering I 

### and Mr. Donald Quander l Esq'l 

### Counsel for Encore Acquisitions Co. All persons who testified also submitted written comments that

are attached. Mr. Mungas requested that owners and operators of oil and gas companies who submit a permit application be allowed a variety of operating scenarios which would be at the same level of emission controls as any BACT would provide. SUMMARY OF WRITTEN MATERIALS 6 . 

### Mr. 

### Holm/s written comments describing the reasons for adopting the amendments and new rules are attached to this report. After the hearing l 

### written comments were received from Mr. Donald Quander l 

### Mr. David Galt, Mr. Scott Wallace, and Mr. Harold Robbins. The written comments of these individuals are appropriately summarized in the comment section of the Not of Amendment and Adoption, which is attached. Mr. Holm also submitted with his written statement a memorandum from DEQ staff attorney, Jane B. Amdahl, with HB 521 and HB 311 reviews of the proposed amendments and a Private Property Assessment Act Checklist. Ms. Amdahl's memorandum is attached to this report.

PRESIDING OFFICER REPORT PAGE 35



### 10

15

20

25 1 2 

### 3 4

6 7 8 9

11 12 13 14



### 16 17 18 

### 19

21 22 

### 23 24

26 27 7 . 

### HB 521 does not apply to propose amendment and

new rules because they are not more stringent than any comparable federal regulations. Therefore, no further HB 521 analysis is required. 8 . 

### With respect to HB 311 (the Private Property Assessment Act, Mont. Code Ann. §§ 

### 2-10-101 through 105), the State is required to assess the taking or damaging implications a proposed rule affecting the use of private real property. This rulemaking affects the use of private real property. A Private Property Assessment Act Checklist

was prepared, which shows that the proposed amendment and new rules do not have taking or damaging implications. Therefore, no further assessment is required. 9 . 

### No other written comments were received. The period to submit comments ended at 5 p.m. on October 11, 2005. PRESIDING OFFICER COMMENTS 

### 10. The Board has jurisdiction to adopt, amend, and repeal rules for the administration, implementation, and enforcement of the Clean Air Act of Montana. Mont. Code Ann.
§§ 

### 75-2-111, 75-2 211. 11. House Bill 521 (1995), generally provides that the Board may not adopt a rule that is more stringent than comparable federal regulations or guidelines, unless the Board makes written findings after public hearing and
comment. The proposed amendments are not more stringent than

PRESIDING OFFICER REPORT PAGE 4

### 5

10

15

20

25**~** 

### 1 a comparable federal regulation or guideline. Therefore 2 written findings are not necessary. 3 

### 12. House Bill 311 (1995), the Private Property 4 Assessment Act, codified as Mont. Code Ann. § 

### 2-10-101 through -105, provides that a state agency must complete a 6 review and impact assessment prior to taking an action with 7 taking or damaging implications. The proposed amendments 8 affect real property. A Private Property Assessment Act 9 Checklist was prepared in this matter. The proposed amendments do not have taking or damaging implications. 11 Therefore, no further HB 311 assessment is necessary. 12 13. The procedures required by the Montana 13 Administrative Procedure Act, including public notice,

## ~ 14 hearing, and comment, have been followed. 14. The Board may adopt the proposed rule amendment and 16 new rules, or reject them, or adopt the rule amendment and 17 new rule with revisions not exceeding the scope of the public 18 notice. 19 15. Under Mont. Code Ann. § 

### 2-4-305(7), for the rulemaking process to be valid, the Board must publish a 21 notice of adoption within six months of the date the Board 22 published the not of proposed rulemaking in the Montana 23 Administrative Register, or by February II, 2006. 24 Dated this day of November, 2005.

26 KATHERINE J. ORR 27 Presiding Officer

PRESIDING OFFICER REPORT PAGE 5TRANSCRIPT OFPROCEEDINGS
Page 1 

## BEFORE THE BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA 2 

# n 4 

### 3

\ :J 

## In the matter of the amendment of 5 

## ARM 17.8.743 pertaining to Montana) air quality permits

- when ) 6 

## required, and adoption of new rules I through VI pertaining to 7 

## oil and gas well facilities. 8 

## Public Hearing

9 

## TRANSCRIPT OF PROCEEDINGS 10

., 11

· -J 

### d""-. ,t. 

# ,1t.t2 13 On the 4th day of October, 2005, beginning at 

# J 14 10:33 a.m., a hearing in the above referenced matter 15 was held in Room 111 of the Metcalf Building, 1520 East 16 

## Sixth Avenue, Helena, Montana. The presiding officer 17 was Katherine Orr, and the court reporter was Sherron 18 Walstad. 

# iJ 19 

## 20

. .! 

# I 21 * * * * * * * * * 22 

## 23 24 

# J 25 

# J

# ~~~~~~~====~==,-~~'''"-=.---=...

# '''"'===~~ LESOFSKI & WALSTAD COURTREPORTING (406) 443-2010TRANSCRIPT OF PROCEEDINGS
Page 2 

### 1 

## A P PEA RAN C E S 2 3 

## PRESIDING OFFICER: 4 

### 5 

## KATHERINE ORR Special Assistant Attorney General 6 

## Agency Legal Services Montana Department of Justice 7 

## Helena, Montana 8 

### 9 

### 10 11 

### 12 13 14 15 16 

### 17 18 19 20 21 22 

### 23 24 

### 25 I

...1

LESOFSKI & WALSTAD COURT REPORTING (406) 443-2010TRANSCRIPT OF PROCEEDINGS



# U

· " '.' 

## '1

I



# n U

'1 Page 5 Page 3

# ~ 1 oramend a rule, orajointresolutionreconunending taken: The following proceedings were had and testimony 2 that an agency adopt, amend orrepeal a rule. 3 

### ********* 3 "The interim committees andthe EQC welcome 4 4 comments and invite members ofthe public to appear 5 PRESIDINGOFFICER: This hearing is 5 before them orto send written statements in orderto 6 called to order. Let the record showthat it is 6 bringto their attention any difficulties with the 7 10:33 a.m. on October4,2005. This hearingis taking 7 existing orproposedrules. The mailingaddress is 8 place in Room 111 ofthe MetcalfBuildingon Sixth 8 P.O. Box201706, Helena, Montana 59620." And that's 9 Avenue, Helena, Montana. This is the time and place 9 the end ofthat Notice ofFunction ofAdministrative 10 set forthe publichearingin the matter ofthe 10 Rule ReviewCommittee. 11 amendment ofARM 17.8.743 pertaining to airquality 11 Montana Code Annotated, another section that 12 permits, whenrequired, and adoption ofnewrules I 12 I'll go overhere for purposes ofcompliance, 13 through VIpertainingto oil and gas well facilities. l3 2-4-302(2)(a), requires eachagency, which includes 14 Myname is Katherine Orr. I am an assistant 14 boards, to create and maintain a list ofinterested 15 attorney general for the State ofMontana. I've been 15 persons and therulemaking subject orsubjects in which 16 assigned tobe the hearing officerfor this hearing. 16 eachperson on the list is interested. A person who 17 I'mpresidingoverthis public hearing. 17 submits a written comment orattends a hearing 18 Copies ofthepublichearingonthe proposed 18 regardingproposed agencyrulemakingmust be informed 19 rulemaking are available on the table nearthe doorfor 19 ofthe list bythe agency. 20 anyone who has not received a copy. Anyone who wants 20 The Department ofEnvironmental Quality 21 to make a statement orsubmit written materials at this 21 maintains lists ofpersons interested invarious areas 22 hearing should fill out aNotice to PresidingOfficer 22 ofrulemakingconductedby the Department and bythe 23 form, which is there bythe door, and give it to me 23 Board ofEnvironmental Review sothat the Department 24 before he orshe speaks. The Notice to Presiding 24 can provide these persons withnotice ofproposed I . i 25 Officerforms are at the backoftheroom, as you can 25 rulemakingactions.
Page 4 Page 6 

# i**J4~**-J. see. 1 On the table nearthe door are forms for 2 MontanaCode Annotated 2-4-302(7)(a)requires 

### 2 interestedpersons to designate theirareas ofinterest 3 presiding officers at rule hearings to read theNotice 3 inrulemaking so the Departmentcan notify them of 4 ofFunctions ofthe Administrative Rule Review 4 proposedrulemaking actions in theirareas of 5 Committee. I amactuallyrequired toread this notice 5 interest. Ifyou would like tobeplaced on a 6 verbatim, so with everyone's indulgence, I will now 6 rulemaking interested-persons list, please complete one 7 read this notice. 7 ofthe forms and leave it onthe table. 8 "Administrativerule review is a function of 8 Notice ofthis hearing was contained in the 9 interim committees and the Environmental Quality 9 MontanaAdministrative Register,NoticeNo. 17-229, 10 Council. These interim committees and the EQC have 10 published on August 11,2005,in IssueNo. 15 atpage 11 administrative rule review, program evaluation and 11 1479. The range ofpages for that particularissue are 12 monitoring functions for executivebranch agencies and 12 pages 1458 through 1531. The Notice stated that on 13 the entities attached to agencies for administrative 13 October4that 10:30in this location, apublic hearing 

# .J 14 purposes." Inthis case, the EQC has those functions 14 would be held to considertheproposed amendment and 15 for the Department ofEnvironmental Quality and for the 15 the newrules. TheNotice ofhearing stated that 16 BoardofEnvironmental Review. 16 interestedpersons could submit their data, views or 17 "These interim committees and the EQC have 17 arguments eitherorallyorin writingat this hearing. 18 the authority to make recommendations to an agency 18 and that is what we are proposingto do today. 19 regardingthe adoption, amendment orrepeal ofa rule, 19 This hearingwill close today, but comments 20 orto request that the agencyprepare a statement of 20 can be submitted in writing up to October 11th of2005 21 the estimated economic impact ofa proposal. They also 21 bysubmittingthose to the board secretary, Joyce 22 maypoll the members ofthe legislature to determine if 

### 22 Wittenberg. Ifanyone is interested, I canprovide her 23 a proposed rule is consistent withthe intent ofthe 23 address to you today. 24 legislature or, during a legislative session, introduce 24 I will summarize theNotice, and Ican see 25 abill repealing a rule ordirecting an agency to adopt 25 that the Departmentis here today to also do that, so 

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# ·w 3 (Pages 3 to 6) LESOFSKI & WALSTAD COURT REPORTING (406) 443-2010TRANSCRIPT OF PROCEEDINGS
Page 7 1 my summary will bebrief. In theNotice, the Board of 2 Environmental Review is proposingto adopt and amend 3 airquality rules to allow the owneroroperatorofan 4 oil and gas well facility to operate underdifferent 5 conditions, underdifferent emissions rules, and with 6 different timingrequirements forobtaining a permit. 7 The orderofpresentationbypersons making 8 statements will be first the Department, which will 9 have the opportunityto summarizeorotherwise explain 10 the proposedrulemaking and its reasons for the 11 proposedrules andto offer any supportinginformation; 12 then secondlywe'll take testimony from proponents, 13 that is, people who are in favor oftherulemaking; 14 third, we'll take testimony from persons opposed to the 15 rulemaking; and then fourth, from anyone whowishes to 16 makeanyother statementon the record. 17 Today we have Sherron Walstad from Lesofski & 18 Walstad Reporting, so that should help us keep an 19 intactrecord. I think the best thingwouldbe to come 20 forward, and as you come forward, provide to me the 21 form that you've filled out, andthis sounds like a lot 22 ofclerical work onyourpart, butitdoes helpme to 23 see yourname andwhoyou represent, andthat waywe 24 have that in the record. 25 So at this time I would likethe Department
Page 8

1 to comeforward andprovide a summary oftherules and 2 any othercomments it wishes to make. 3 MR. HOHN: Forthe record, myname is 4 BrianHohn, lead airquality specialist with the Air 5 Resources Management Bureau ofthe Department of 6 Environmental Quality. I haveprepared written 7 testimony thatmirrors comments contained in the 8 statement ofreasonable necessity, and I have 9 additional comments that I'd like to make. 10 Although the Department has had informal 11 discussions withboththeregulated communityand U.S. 12 Environmental ProtectionAgency, the Departmentchose 13 not to change any ofthe proposedrules until formal 14 comments havebeen received. 15 The Departmenthas decidedto recommendthese 16 amendedrules andproposednewrules to be adopted as 17 proposedinthe MARnotice. Thank you. 18 PRESIDINGOFFICER: Any other 19 proponents? 20 MR. GALT: Madam HearingOfficer, for the 21 record, myname is Dave Galt, and I represent the 22 MontanaPetroleumAssociation. 23 I filled outyour form and standhere in 24 support oftheserules, butI want to make a caveat. 25 There isn't a spoton the form to say "with a few**'.,'.-<~<."~.' ~<"'-''''~**  '

.. " 4 (Pages 7 to 10) Page 9**~ Z~**  1 changes and fine-tuning we support theserules." 2 We have members from thepetroleumindustry

### ~ 3 here today to give you some specifics, and we also want " ,**~,** 4 to letyou knowthat we will be submittingformal 5 written commentsbefore that deadline to detail and 

### l 6 explain those specific comments. 

# i '1 7 We also want to thank the Department of**~** 8 Environmental Quality for theirwork. I understand 9 their workload and I appreciate verymuch the attention 10 to detail that they've given this issue. Thankyou. 11 PRESIDINGOFFICER: Thank you very much, 12 Dave. Otherproponents? 13 MR. WALLACE: Fortherecord, myname is 14 ScottWallace. I'mhererepresentingDevonEnergy. I, 15 too, would like to thankyou all for the opportunity to 16 work, orfortheregulated communityto work with the 17 agencyincomingup withrules that makemore sense for 18 all ofus. 19 My specific comment concerns newrule 20 No. III, subsection (f) concerningleanburnengines 21 and additional controls onthose leanbum engines. 22 Lean bum engines,by definition, are 23 low-emittingengines, andwe want to ensure that the 24 controls that areput forth withinthis permit shield 25 are actually the controls that wouldbe requiredunder
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1 full permit review. We feel that anoxidationcatalyst 2 on engines as lowas 85 horse poweris a bit extreme, 3 and we'd like to work with the agencyin comingup with 4 somethingthat makes more sense. 5 PRESIDINGOFFICER: Thankyou. Are there 6 any otherproponents? 7 MR. MUNGAS: Forthe record, myname is 8 Mike Mungas. I representNancePetroleumCorporation, 9 and I, as well, wish to thankthe Department for 

## !; 10 allowingus to worktogetherinthe newrulemaking**I~** 11 process. Thankyou for lettingme be here today to 12 testify. 13 I propose an additional amendmentto 14 ruleNo. III, specifically, whichwould allow owners 15 and operators ofoil and gas facilities who do submit a 16 permit application to allowus to apply for a variety 17 ofoperatingscenarios whichwouldprovide the same 18 level ofemissions controls as anybest available 19 control technology wouldprovide. This would allowus

## ~ 20 greaterflexibility to streamline ouroperations inthe I,' 21 interimperiodwhile the permit is beingreviewedby**~** 22 the division. "; 23 PRESIDINGOFFICER: In this rulemaking j 24 proceeding, I'm sure that mostpeople are aware, any 25 commentsmust be addressed individually in the final 1 ' "'''',"'**.~** " ....• 

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Page II Page 13 notice. So I don't know, haveyou talkedwiththe 1 require

-- it wouldpull me into this particular Department about yoursuggestion? 2 regulation, and itjust seems to me as a matterof MR. MUNGAS: Weplanon submitting 3 consistencybetweenall sources that there's no needto detailed comments, written comments forthis, and we 4 include thehazardous airpollutant, the 10/25 numbers will talk to theDepartmentregardingthe specific 5 that we're familiar with. It needs to be included nature ofwhat we'd like. 6 withinthe applicabilitydetermination oftheproposed PRESIDINGOFFICER: All right. Thank 7 rule. you. Anyotherproposal? 8 Again, itjust seems an unnecessary MR. ROBBINS: Goodmorning. Myname is 9 requirement compared to what the otherrequirements are Hal Robbins. I'mwithBisonEngineering. Wehave 10 for other facilities. officeshere in Helena and Billings. Ihave a few 11 Mylast commentrelates to the exact same comments, technical comments, related to theproposed 12 rule, in which it goes on at the veryendand says, rules. 13 "Forpurposes ofthis rule, potential to emit is The first one is more orless a clarification 14 calculatedwithoutregard to anyair application question orissue. Just to make sure I understand it, 15 control equipment used at the facility." I guess I do I'm askingitrhetorically, not necessarilyaskingfor 16 not understand the necessity for thatparticular a response as we speak. It appears to me from a 17 sentence in that for anyone else lookingat whetheror readingoftheproposedregulations that it refers to 18 not a preconstructionpermit isrequired andwhatneeds example innewrule II, it says, "requirements ofthe 19 to be done for that, airpollution control equipment subchapter applyto" etc. 20 is, undercertain circumstances, allowed to be I assume thatbythis subchapter, we're 21 considered in a facility's potential toemit. I talkinga new subchapter. I gleaned that to be the 22 understand the restrictions onthat definition,but case, because in newrule I it talks about definitions, 23 nonetheless, a facility is entitled, again, with which I wouldpresumewould have modified subchapter 24 restrictions, to allowthe use ofairpollution control (7) to which the regulation eventuallyleads youback 25 equipment in that calculation. It seems to methere's
Page 12 1 no reason that that courtesycould not be extendedto Thatbeingthe case, I noteone minor 2 these facilities as welL deficiencywhich I presume will be clarified. There is 3 I will be followingup my oral testimonywith no definition forpotential to emit in the new 4 written testimonyto clarity. Ihope, someofmy subchapter; and in checkingwiththe regulations, there 5 positions. are definitions for potential to emit in subchapters 6 PRESIDINGOFFICER: Thankyou, Hal. Any (7), (8), (9), (10) and (12), but there is no 7 otherproponents? definition forpotential to emit in subchapter (1), 8 MR. QUANDER: Goodmorning. Mynameis whichrefers to all the others. 9 Donald Quander. I'm a resident ofBillings, Montana. Mysecond comment is related to the 10 I'm an attorneywiththe lawfirm ofHolland & Hart, applicability discussion innewrule IIinwhich it 11 and I'm oneofthe counsel ofEncoreAcquisitions talks about skippingoverdates, etc., about sources 12 Company, and my comments this morning are ontheir thathave the potential to emit 25 tons peryearbeing 13 behalf. Ibelieve, Ms. Orr, that I didpassup a sheet applicable, as well as sources that emit 10 tons per 14 earlierwithmyinformation to you. yearor25 tons peryear ofhazardous airpollutants. 15 PRESIDINGOFFICER: Thankyou. It seems to me inreviewingthatrequirement 16 MR. QUANDER: We also support, with some for the 10 and 25, it's unnecessarilyrestrictive, and 17 reservations about the stringency ofthe proposedrule, I use a simple example. IfI were a new source and the 18 we supportthe overall effort and the rule, and we onlyairpollutantthatI emittedwas xylene, to picka 19 appreciatethe effortthat DEQhas made to workwith pollutant outofthe air, andthatpollutanthad the 20 thepartiesto create a rule thatis workable. So I potential to emit, say, 20tons peryear, inreviewing 21 generallyendorse the comments that MPAExecutive the regulations, I wouldnote that I do not need a 22 DirectorDave Galt and otherindustrial andproducer preconstructionpermitundersubchapter (7)

-- (8), 23 companieshave offeredpreviously. I thinkwe're on (9), or (10), for that matter

-- andyet ifI were, on 24 theright track ifwe're goingtobe able to have a the otherhand, an oil andgas well facility, I would 25 workablerule.

LESOFSKI & WALSTAD COURTREPORTING (406) 443-2010 

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5 (Pages 11 to 14)TRANSCRIPT OF PROCEEDINGS
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# ,,J ! 1 daythat you can submit yourwritten comments to Joyce 1 Iwould like to emphasize one element that 2 Wittenberg, andheraddress is here at the Department. 2 was referred to earlierin testimony, and that is the 3 Letmejust give ittoyou now, since there are somany 3 need for flexibility andadministration ofthe rule, 1
, 4 here who are goingto beprovidingwritten comments. 4 particularly withrespect to changingproduction levels 5 and operatingcircumstances, both in applying the 5 Joyce Wittenberg, she's secretary ofthe Boardof 6 Environmental Review at the MetcalfBuilding, 1520East 6 requirements that arebeingestablishedfor operators 7 Sixth Avenue, and that's P.O. Box 200901, Helena, 7 while permit applications are pendingand priorto the 8 Montana 59620-0901. She also has a faxnumber, and 8 time that final permits are approved, and also inthe 9 that is (406) 444-4386. You can e-mail yourcomments 9 final permits themselves. 10 to her, andthat would be ber@mt.gov. 10 As was indicated earlier, we wouldrecommend 11 Letme checkin theNotice itself. I have a 11 thatthis explicitly include alternative operating 12 discrepancy in my little script about the actual 12 scenarios that couldbeapplied undervarying operating 13 submission date. 13 conditions, so long as the basicprotections are being 14 maintained andemissionrequirements are beingmet. We 14 Yes, it's October 11th. All right. Thank 15 thinkthat DEQmayhave that flexibility atpresent as 15 you very much for coming. 16 a general matter, bothinits administration ofthese 16 (The hearingconcluded at 17 11:05 a.m.) 17 rules while applications arepending and in the final 18 *********** 18 rules

- excuseme, inthe final pennits, but we believe 19 there would be a benefit to clarifying orconfirming 19 20 that with additional language in the rule thatmakes 20 21 clear that anapplicant can include inits application 21 22 proposed alternative means ofcomplyingwith these 22 23 requirements, especially, for example, ifproduction is 23 24 decliningduring the course ofthatperiod, the 24 25 controls requiredmaybe different. 25

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1 Wemay want to institute different operations 1 CERTIFICATE 2 tomeet the standards, and we would like to be sure 2 STATE OF MONTANA ) 3 4 5 6 that there's no question that DEQ maypermit those sorts ofalternative operatingscenarios as part ofthe permit applicationprocess in that interimperiod, and then that itmaytake that into account and include 3 4 5 6 ; COUNTY OF LEWIS AND CLARK ) I, SHERRON K. WALSTAD, Professional Court Reporter, NotaryPublic in and for the County ofLewis and Clark, State ofMontana, dohereby certify: 7 such flexibility in thepermits that are finally 7 That the foregoing hearing was taken before me at 8 9 issued. Again, oursense is that probablythe 8 9 the time and place herein named, that the hearing proceedings were reported and transcribed by me with a I]

# r~ 10 Departmenthas that flexibility and authority, but we 10 computer-aided transcription system, and that the 11 believeit wouldbeuseful to specifically say so, and 11 foregoing pages contain atrue record ofthe 12 13 14 15 we will plan onvisiting further with the Department in the next few days, and with others, andproviding written commentswith specific suggestion and language that might accomplish that. Thankyou. 12 13 14 15 16 proceedings to the best ofmy ability. IN WITNESS WHEREOF, Ihavehereunto setmy hand and affixed my notarial seal this day 2005. 16 PRESIDING OFFICER: Thankyou. Are there 17 17 any otherproponents who wish to come forward? Are 18 18 there any opponents? Is there anyone who wouldlike to 19 19 come forward andjust, as a neutral matter, say SHERRON K. W ALSTAD 20 anythingabout the newrules orthe amendment? 20 Court Reporter-Notary Public 21 22 23 Since there is no one who wishes to come forward, I'm goingto close the hearing. As I said earlier, the written commentperiod is up through 21 22 23 My Commission Expires 1111/06 Ii I' 24 October 11th, and I guess I should talk about the 24 25

'"'' specific deadline there. It's up to 5:00 p.m. on that

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" .," '-' "",,',,>, " LESOFSKI & WALSTAD COURT REPORTING (406) 443·2010**~~~" ~** 

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### AGENDA BOARD OFENVIRONMENTALREVIEW THURSDAY & FRIDAY, DECEMBER 1 & 2 .METCALFBUll,DlNG,CONFERENCE ROOM 111 1520EAST SIXTHAVENUE, HELENA, MONTANA NOTE: Individual agenda items are not assigned specific times. For public notice purposes, the Board will begin the meeting at the time specified: However, the Board might not address the specific agenda items in the orderthey are scheduled. Persons with disabilities who need an accommodation in orderto participatein this meeting. should contacttheBoard Secretary at (406) 444-2544. DECEMBER 1 1:30 PM. I. CBMRULEMAKINGHEARlNG The Board will hold a hearing to take written and oral comment on proposed amendments to ARM 17.30.670 and 17.30.1202 pertaining to nondegradation requirements for electrical conductivity and sodium adsorption ratio and defmitions for technology-based effluent limitations and the adoption of new water quality Rules 

### I through 

### X pertaining to 

### minimum technology-based controls and treatment requirements forthe coal bedmethane industry. 

## n. GENERAL PUBLIC COM.MENT Underthis item, members ofthe public maycomment on any public matterwithin thejurisdiction ofthe Boardthat 

### is not otherwise on the agenda ofthe meeting. Individual contested case proceedings are not publicmatters on which the public maycomment. DECEMBER2 9:00A.M. I. ADMINISTRATIVEAGENDAITEMS A. Review and approveminutes ofSeptember30,2005,meeting. B. Set2006 Meeting Schedule; BudgetInformation. 

# n. BRIEFINGAGENDAITEMS

.A. CONTESTED CASEUPDATE: 1. Cases assignedtoHearing Officer Katherine Orr

a. In the matter of CR Kendall Corporation's request for a hearing to appealDEQ's decision to deny a minor permit amendment under the Metal Mine Reclamation Act (BER 2002-09 MM). The Hearing Examiner, upon request ofthe parties, has vacated the hearing scheduleplaced the case on hold until further notice ofone ormore ofthe parties or

. upon initiative oftheHearing Examiner.



# , b. In the matter ofthePetition forReview ofBazardous WasteFinal Permit No. MTHWP03-01 issued to Flying J Petroleums,Inc. (BER 2003-14 HW). Flying J has requested a hearing under the MontanaHazardous WasteActto reviewthefinal decision ofDEQto issue a Hazardous Waste Final Permit to Flying J for its fonner refinerylocated near Cut Bank. Counsel for the parties stipulated to a stay ofcontested cas.e proceedings while they discussed the terms ofan order that could resolve this case. However, (the case was not settled and the parties proposed a schedule for contested case proceedings. On April 5, 2005, the Hearing Examiner issued a scheduling order. The fmal prehearing conference was set for January 10,Board of Environmental Review**Dec~mber** 1 & 2, 2005 Page 2 of4 2006. On August 23, 2005, the Hearing Examiner, Katherine 

### Orr, issued a notice of

# ....J Assumption of Jurisdiction retaining all deadlines except the discovery deadline, which was extended until October25,2005.

c. In the matter of Violations of the' Montana Water Quality Act by the City of Lewistown WastewaterTreatmentPlant (BER2004-15 WQ). On October20,2004,the Board received a letter from the City Manager of Lewistown appealing assessment of $11,608 in administrative penalties for violations ofthe Water Quality Act. On September 21, 2004, DEQ had issued an Administrative Penalty Order for six discharges of sewage into Big Spring Creek. The parties proposed a schedule for contested case proceedings on March 1,2005, and the Hearing Examiner issued a scheduling order. The fInal Prehearing Conference was set for October 12,2005. The parties have requested a stay ofproceedings pending settlement discussions. The interim dates in the scheduling order have been vacated by the Hearing Examiner, Katherine Orr until October 7, 2005. The Heru:ing Examiner has requested the parties to fIle a proposed scheduling order by November 15, 2005. It is expected that the parties will ask for an extension to fInalize the details of a supplemental environmental project (SEP). d. In the Matter ofViolations of the Montana Water Quality Act by Bar S Livestock, Inc., Toole County, Montana (BER-2005-06 WQ). Bar S Livestock, Inc. requested a hearing on the Notice of Violation and Administrative Compliance and Penalty Order issued by DEQ relating to the alleged failure ofBar S Livestock, Inc. to comply with the requirements of the general permitfor the CAPo it operates near Shelby. The parties agreed on a schedule. Upon written request of the parties dated August 10, 2005, the scheduling orderhas been vacated byHearing Examiner, Katherine Orr, pending settlement**~** discussions up to October 7, 2005. At this time, the case will be submitted as settled or a ."", revised hearing schedule will be developed. On October 7, 2005, the parties requested that they be given more time to fInalize the settlement documents. The Hearing Examiner have given the parties until December7, 2005 to do this.
e. In the matter ofViolations ofthe Water QualityAct byASARCO, Inc., (BER 2005-09 WQ). The Board received a requestforhearing regarding an Administrative Penalty Order issued by DEQ for the alleged failure to pay annual permit fees on the MGWPCS permit for discharges from the Paymaster Mine Adit located in Lewis and Clark County. DEQ claims ASARCO should have paid permitfees for a permitthatASARCO argues should have been terminated in 2002. The parties requested until July 19, 2005, to submit a schedule or settlementpapers and the Hearing Examiner granted the request. On August 24,2005, the Hearing Examiner issued a notice ofAssumption ofJurisdiction and upon review ofthe Department's proposed hearing schedule, set a date for a Prehearing Conference of December 14, 2005 atwhichtime'a date for the hearingwill be determined. f. In the matter of Violations ofthe Montana Operator Certification and Public Water Supply Laws by Richard Kelly at the Ten Mile-Pleasant Valley Lagoons, Lewis and ClarkCounty (BER 2005-13 PWS). The Boardreceived a request for hearing on May 17, 2005, regarding the Notice ofViolation and Administrative Complian.ce and Penalty Order issued.by DEQ for the alleged operation of a public sewage system without a certified operator. Under the scheduling

. order, the fmal prehearingconference was· set for November 7, 2005

.. A pre-hearing conference was held on November 14, 2005 and a contested case hearinghas been set for November.22,2005. g. In the matter ofthe issuance ofthe Air QualityPermitfor the RoundupPowerProject, Permit No. 3182-00 (BER 2003-04 AQ). On June 6, 2005, the Montana Supreme Court '" remanded an appeal to the District Court. On June 15,2005, the district Court remanded the .." case to the Board. The Board was to decide whether to make a new decision based on theBoard of Environmental Review December 1 &2, 2005 Page 3 of4 record orto receive additional evidence. OnJuly29,.2005, the Board issued an Order Staying Contested Case Proceedings indefInitely. On August 24,2005, Hearing Examiner issued an Assumption ofJurisdictionreferencing the Order Staying Contested CaseProceedings. B. OTHERBRIEFING ITEMS 1. TMDL Update 

## m. ACTIONAGENDAITEMS A. REPEAL, AMENDMENTORADOPTION OFFINALRULES: 1. AmendARM 17.8.759 pertaining to review ofpermit applications and extending public comment periods. Presiding Officer Katherine Orr conducted the public hearing on October 3, 2005. Several interested parties submitted written public comments. The Department has prepared a draft fInal notice modifying the proposed amendments by incorporating some of the public comments, and recommends adoption oftheproposed amendments withthe modifications. 2. Amend ARM 17.8.743 and adopt New Rules I through VI pertaining to air quality permit applications and air emission control requirements for certain oil or gas well facilities. Presiding Officer Katherine Orr conducted ,the public hearing on October 4, 2005. Several interested parties submitted written public comm,ents. The Departmenthas prepared a draft fInal notice modifying the proposed amendments by incorporating'some ofthe public comments, and recommends adoption ofthe proposed amendments withthemodifications. B. JNITIAnONOFRULEMAKING ANDAPPOINTMENT OF HEARING OFFICER: 

# , TheDepartment will propose that theBoard concurin its recommendation to initiaterulemaking to: 1. Update rules adopted underthe Metal Mine Reclamation Act (ARM 17.24.101, et seq.) and the Strip and Underground Mine Reclamation Act (ARM 17.24.301, et seq.) to HB 428 and 429 enacted by the 2005 Montana Legislature. HB 428 streamlines and makes uniform the enforcement procedures applicable to state mining laws, including the Metal Mine Reclamation Act and the Strip and Underground Mine Reclamation Act. HB 429 amended sixteen environmental laws, including the Metal Mine Reclamation Act and the Strip and Underground Mine Reclamation Act, to provide standardized penalty factors that must be considered in determining a penaltyin an enforcement action. 2. Amend ARM 17.8.504, 17.8.505, and 17.8.744 and adopt New Rules I through IX to establish a registration system for certain facilities that presently require an air quality permit. The proposed new rules would establish a general registration system and would establish rules that apply the system to oil and gas well facilities. 3. Amend ARM Title 17, Chapter 8, subchapters 8 and 9 to adoptfederalreforms to the New Source Reviewpermitting regulations as set forth. in 40 CFR 51.165 and 40 CFR51.166. Portions ofthe ' federal rules vacated orremanded by the DC Circuit Court ofAppeals Ruling ofJune 24, 2005, are notincluded in theproposal. C. FINAL ACTION ON APPEALS: 1. Inthe matter ofViolations ofthe Opencut Mining Act 

### by Kenneth Mikesell, d/b/a Mikesell Gravel Mine, Meagher County (HER 2005-10 

## oq. DEQ issued a notice of violation, statement ofproposedpenalty, and cessation and abatementorderformining outside thepermitted 

# , boundary. Under the scheduling order, the fInal prehearing conference was set for October 3, 2005. On August 24, 2005, the HearingExaminer, Katherine Orr issued a notice ofAssumption ofJurisdiction. The parties submitted a Stipulation forDismissal on October24, 2005.Board of Environmental Review December 1 & 2. 2005 Page 4 of 4 2. In the matter ofthe notice of Violation of the Opencut Mining Act by Mickelson Rock Products, LLC at the Tricon Pit #2, Mineral County (BER 2005-12 OC). DEQ issued a notice ofviolation and statement ofproposed penalty for alleged mining without a pe.rmit. On October 19, 2005 the parties submitted an Administrative Order on Consent. 3. In the matter ofViolations ofthe Montana Public Water Supply Laws by Darwin Simac d/b/a Jackson Creek Saloon, Montana City, Jefferson County (BER i005-05 PWS). The Board received a request for hearing on January 31,2005, regarding a Notice ofViolation and Administrative Compliance and Penalty Order for various alleged violations ofthe Montana Public Water Supply Laws. The parties agreed on a schedule. Under the scheduling order, a hearing was held on August 23,2005, before the Hearing Examiner, Katherine Orr. An Order of Recommended Findings of Fact and Conclusions of Law will be issued for the Board's reviewpriorto the December2, 2005 meeting. 4. In the matter oftheDenial oftheApproval ofSubdivision Plans ofSunnyside Orchards #1, Block6, Lots 29, 30 and 31, Ravalli County, EQ # 05-2598 (BER2005-15-SUB). OnJune 29, the Board received a letter from Cleatus Johnson, a subdivision applicant, appealing the denial of his subdivision application for failure to submit adequate application information. Hearing Examiner Katherine Orr issued a First Prehearing Order on August 17, 2005, requesting the parties to propose a hearing schedule by August 29, 2005. Upon application to the Hearing Examiner, the parties have until September 19,2005to submit aproposedpre-hearing and hearing schedule. On September 16, 2005 the parties requested an additional 60 days until November 18, 2005 to submit an agreed schedule. The parties have been ordered to submit a proposed prehearing and hearing schedule by November 18, 2005. The appellant has withdrawn his appeal and theBoard will be evaluating an Order ofDismissaL

. D. NEW CONTESTED CASE APPEALS: 1. In the matter.ofthe request for hearing ofJay Gasvoda, d/b/a Gasvoda Construction, BER 2005-17 OC, regarding theNotice ofViolation and StatementofProposed Penalty issued by DEQ on September 14, 2005. On October 6, 2005, the Board received the appeal letter from 

### Mr. Gasvoda appealing the issuance of a Notice ofViolation and Statement of Proposed Penalty concerning an opencut mining operation. A First Prehearing Order was issued on November 7, 2005'. The partieshave untilNovember 18, 2005topropose a hearing schedule. 2. In the matter ofthe appeal by the Town ofEnnis, BER 2005-18 WQ, regarding MPDES Permit No. MT0030732. On October 6, 2005, the Board received notice from Ralph Hernandez, Mayor, that the Town of Ennis appeals its .MPDES permit for its wastewater discharge system, which was recently issued by DEQ. A First Prehearing Order was issued on November 7, 200S,. The parties**hav~** until November 18,2005 to propose a hearing schedule. 3. In the matter of the appeal by Westmorland Resources Inc., BER 2005-19 SM (strip mining), appealing the issuance of a Notice of Violation and Statement of Proposed Penalty. A FirstPrehearing Order winbe issued priorto the Boardhearing. IV. GENERALPUBLIC COMMENT Underthis item, members ofthe publicmay comment on any public matter within thejurisdiction ofthe Boardthat is not otherwise on the agenda ofthe meeting. Individual contested case proceedings are not

. public matters on which thepublic may comment. V. ADJOURNMENT

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### BEFORE THE MONTANA BOARD OF**~NVIRONMENTAL** 

### REVIEW

BOARD MEETING 

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### June 3, 2005



### TRANSCRIPT OF PROCEEDINGS

Heard at Room 111 of the Metcalf Building 1520 

### East sixth Avenue Helena, Montana December 2, 2005 9:00 

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BEFORE CHAIRMAN JOSEPH RUSSELLi BOARD MEMBERS HEIDI KAISER, GAYLE SKUNKCAP, BILL ROSSBACH, ROBIN SHROPSHIRE, and DON MARBLE

PREPARED BY: LAURIE CRUTCHER, RPR COURT REPORTER, NOTARY PUBLIC P.O. BOX 1192 

### HELENA, MT 59624 (406) 442-8262 

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### 21 22 23 24 (Response) CHAIRMAN RUSSELL: opposed. (No response) CHAIRMAN RUSSELL: The next item on**th~** 

### agenda is executive Agenda Item summary for III(A) (2), action on and rule that is amendments on New rules will be codified in new ARM 17.8.743. subchapter ARM 17,

_ TitIe 17, Chapter 8. Tom. MR. LIVERS:**Mr~** 

### Chairman, you'll get a chance to hear from Mr. Homer on this one. MR. HOMER: Mr. Chairman, members of the Board, I'm not sure I introduced myself last time. I'm Charles Homer, and I'm with the Air Resource Management Bureau, the Technical support section. The Board held a hearing on this rule on october 4th, and again, comments were received from the public. The Department has prepared a draft notice of final adoption addressing those
comments. I'll quickly go through those. One comment requested that a definition of "potential to emit" be added. That was done. It is the same definition that we used throughout

our program for all permitted sources. One comment also said that we needed to clarify exactly which facilities this applied to.

LAURIE CRUTCHER, RPR 406-442-8262 39 ,". '..

### There was language in New Rule 2 that potentially indicated that sources of less than 25 ton per year had to get a permit. That's incorrect, so that language was removed. The other comments that were not addressed were to change the horsepower cutoff for engines in which we would require**controls,~and** 

### to change the requirements for leak detection testing. If I may give a slight background, this implements Senate Bill 95 passed in the last session. What this does is apply a special permitting process for traditional oil and gas wells. We currently require most facilities to get a permit before they begin construction. Senate Bill 95 allowed traditional oil and gas wells to drill and construct the well head prior
to submitting their application. This was to avoid them having to get permits for wells that

came in below permitting thresholds that were completely dry. Senate Bill 95 required the Board to adopt rules governing their operation from the time of completion until a permit is issued, so these requirements were reflective of what the permits will ultimately be required of the

LAURIE CRUTCHER, RPR 406-442-8262 40

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### the Board may have. CHAIRMAN RUSSELL: Are there questions for Mr. Homer? (No response) CHAIRMAN RUSSELL: Is there anyone 

### in the public that would like to speak to this matter relating to this action? MR. GALT: Mr. Chairman, members of the Board, far the record, my name 

### is Dave Galt. I'm Executive Director of the Montana Petroleum Association. MPA wants to thank the Department for working hard on these rules 

### since the Legislature closed. They're very important to the oil industry. I will admit we have a little anxiety with some of the wording, but we're going
to work that out in the upcoming registration rules that are also on your agenda today, and would urge their passage. Thank you. CHAIRMAN RUSSELL: Anyone else? (No response) MS. SHROPSHIRE: I'm just curious. This would be for you probably. Any estimates of the impact of this? MR. HOMER: Mr. Chairman, Ms.

LAURIE CRUTCHER, RPR 406-442-8262 41--- ----- 

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### of this ruYe should be relatively minor. It/was to address issues having to do with permitting of new facilities. It would reduce the number of permits that we would have to issue, but what it would be reducing is those permits we'd be issuing for facilities that ultimately would not require a permit. The requirements contained in th.is rule that apply until the permit is issued are reflective of the standards we're establishing under BACT currently, so we see no difference in the standards that are applie.d. MS. SHROPSHIRE: If you were to permit something or not permit it, the emissions would have been the same anyway? MR. HOMER: Mr. Chairman, Ms. Shropshire, under the requirements**her~,** 

### it doesn't change who has to get a permit.**-~~** 

### Facilities still have to obtain**theTr;-~perln.Tt -,** **--and--~-'** 

### still have to comply with BACT. What this does is say that you can wait, but during that interim, you have to apply the same type of controls that your permit will generally require. So we don't

see any change in the controls that are required,

or the number of permits that are issued, or
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### SHROPSHIRE: So you don't think that there will be an increase of air pollutants from this? MR. HOMER: Mr. Chairman, Ms. Shropshire, no, 

### the controls will remain the same. CHAIRMAN RUSSELL: Anything else? (No response)



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### CHAIRMAN RUSSELL: Katherine, do you have anything to add? MS. ORR: I don't, Mr. Chairman. CHAIRMAN RUSSELL: Hearing no further requests from the audience, I would entertain motion to adopt the amendments with the change, certainly with the change that was requested, the Hearing Examiner's report, the 521 and 311 analysis pre.sented by the Department, and the comments, and the responses to comments. Do I have a motion? MR. .ROSSBACH: So moved. CHAIRMAN RUSSELL: It's moved by Mr. Rossbach. Is there a second? MR. MARBLE: Second. CHAIRMAN RUSSELL: Seconded by Don



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none, all those in favor, signify by saying aye. (Response) CHAIRMAN RUSSELL: Opposed. (No response) MS. SHROPSHIRE: Can we take a quick break? CHAIRMAN RUSSELL: Let's take a break. (Recess taken) CHAIRMAN RUSSELL: I'm going to get started. I want to make a general comment, specifically to the air program and to Tom. Several weeks ago, I asked for some information
out of the air program, and specifically to Brandon Watne and Nancy, and it was a big task. It was Air's data from every PM site in Flathead County as far as back as possible,**an~** 

### in less than two days, I had the information exactly the So those are the type of things way I wanted it. that just makes me excited to be part of this So thank you very much. And I mean I asked for quarterly data out of every site as £ar back as possible, and I had it so fast that I was
LAURIE CRUTCHER, RPR 44 406-442-8262BrianSchweitzer,Governor P.O. Box 200901 Helena, MT 59620-0901 (406) 444-2544 • www.deq.mt.gov



### December 20, 2005
DearInterested Party I 

### APCAC Member I 

### Repository:
RE: PUBLICHEARING

- Establishing a general registration system and applying that system to traditional oil and gas well facilities; and NOTICE OFADOPTION

- (1) Review ofpermit applications and extendingpublic comment periods; and (2) Permits for oil and gas well facilities
I have attachedMARNoticeNo. 17-238, the notice ofpublic hearing on the proposed amendment ofARM 17.8.504, 17.8.505, 17.8.744, and 17.8.1204, and the adoption ofnew rules to establish a general registration system for certain facilities thatpresentlyrequire an airqualitypennit, and to applythat system to traditional oil and gas well facilities. The MontanaDepartment ofEnvironmental Qualitywill conduct apublic hearing on January 23, 2006, to receive comments regarding theseproposed amendments. The notices ofadoption are attached for (1) the amendment ofARM 17.8.759, pertaining to review ofpennit applications and extending public commentperiods (MAR

### Notice No. 17-228); and (2) the amendment ofARM 17.8.743 and adoption ofnew rules pertaining to pennitting oil and gas well facilities (MAR Notice No. 17-229).
Ifyou have questions regarding these notices, please call me at (406) 444-9741. The notices mayalso be found onthe DEQ website by going to the following and then clicking on the appropriate link: http://www.deq.mt.gov/dir/legal/index.asp. Sincerely,

Jan Brown Air Quality Specialist AirResources ManagementBureau MontanaDepartment ofEnvironmental Quality E-mail:janbrown@mt.gov

Enclosures

Enforcement Division • Permitting & Compliance Division • Planning, Prevention & Assistance Division • Remediation Division

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### BEFORE THE BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA In the matter of the amendment) of ARM 17.8.743 pertaining to ) Montana air quality permits - ) when required, and adoption of) new rules I-VI pertaining to ) oil and gas well-facilities ) NOTICE OF AMENDMENT AND ADOPTION
(AIR QUALITY)

TO: All Concerned Persons 1. On August 11, 2005, the Board of Environmental Review published MAR Notice No. 17-229 regarding a notice of public hearing on the proposed amendment and adoption of the above stated rules at page 1479, 2005 Montana Administrative Register, issue number 15. 2 . The Board has amended ARM 1 7 . 8 . 743 and adopted new rules III (17.8.1603), IV (17.8.1604), V (17.8.1605), and VI (17.8.1606) exactly as proposed and has adopted new rules I (17.8.1601) and II (17.8.1602) as proposed, but with the following changes: NEW RULE I (17.8.1601) DEFINITIONS For the purposes of this subchapter, the following definitions apply: (1) through (3) remain as proposed. (4) "Potential to**~mit** 

### (PTE)" means the maximum capacity of a facility or emitting unit, within physical and operational design, to emit a oollutant. Any physical or operational limitation on the caoacity of the facility or emitting unit to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, is treated as part of its design only if the limitation'or the effect it would have on emissions is federally enforceable. 'Secondary emissions are not considered in determining potential to emit. NEW RULE II (17.8.1602) APPLICABILITY AND COORDINATION WITH MONTANA AIR QUALITY PERMIT RULES (1) The requirements of this subchapter apply to oil and gas well facilities that were completed after March 16, 1979, or that were modified after March 16, 1979, and that have the potential to emit (PTE)' more than 25 tons per year (TPY) of any airborne pollutant that is regulated under this chapter, 10 TPY or more of any individual har:ardous air pollutant (HAP), or 25 TPY or more of any eombination of IIl'.tPS. For the purposes of this, rule, PTE: is calculated '.dthout regard to any air pollution control equipment used at the facility. (2) through (4) remain as proposed. 3. The following comments were received and appear with the Board's responses:
24-12/22/05 Montana Administrative Register

### 2661­

COMMENT NO.1: Comments on proposed ru.les from several entities dealt with allowing flexibility the rul,es f?r the

# J Department to deal with changing operating scenarlOS In application and permit review process. RESPONSE: Currently an entity that submits an application for a Montana air quality permit may request a change or an amendment to the application at any time prior to Department issuing a decision on the application. In addition! sources may request some operational flexibility built into their permits! and the Department has the authority to include this operational -flexibility in the permit. Therefore! the Board pelieves this issue is address in the existing rules and no change lS necessary. COMMENT NO.2: Comments were received on the language in New Rule II. The commentor requested a change to the proposed rule by deleting the· reference to hazardous air pollutants (HAPS) in New Rule II(l). RESPONSE: The Board agrees with the comment and has amended the proposed rule to reflect the change. Currently an oil and gas well facility with the potential to emit less than 25 tons per year of any pollutant is not required to obtain a Montana quality permit under existing air quality rules. The rule was not intended to make the requirement for oil and gas well facilities more stringent than the existing rules for air pollution sources in Montana. Should an oil and gas well facili have potential emissions above the 10/25 tons per year , HAP level, a Title V permit would be required.**~** 

### COMMENT NO.3: 

### Comments received recommended the Board delete the language that excludes the use of control equipment in determining potential to emit in New Rule II. RESPONSE: The Board agrees with the comment and has amended the proposed rules to reflect the change. With the addition to the proposed rules a definition of "potential to emit" (PTE) and clarification in the proposed rules that air pollution control equipment can be considered in the PTE determination only if the requirements are federally enforceable! the need to further clarify the limitation on. control equipment in the proposed rules is not necessary and that language has been deleted. COMMENT NO.4: 

### One commentor stated that the requirement in New Rule 111(1) (f) for oxidation catalytic reduction on leanburn engines greater than 85 brake horsepower (BHP) is too restrictive. The commentor stated that! by design! lean-burn engines have low emissions and that addition of oxidation catalytic reduction wi not reduce emissions of nitrogen oxides. The commentor stated that oxidation catalytic reduction will reduce carbon monoxide emissions but only at a cost that is much greater than the benefit. RESPONSE: The Board disagrees with the comment for the following reason. The Board believes that controls. are**.~** 

### appropriate for both rich-burn and lean-burn engines. The Board**~** 

### Montana Administrative Register 24-12/22/05

### -2662­ 

# , believes that it is technically feasible to install control equipment on engines of ther design. The five-year annualized cost is less for the rich-burn design engines due to the larger reduction in pollutants from the lean-burn design engines, but neither design is economically infeasible. Also, the owner or operator of an oil or gas well facility may request alternative operating schedules through the permit application, to allow the control equipment requirement to be changed. COMMENT NO.5: One commentor asked why the proposed rule does not include a definition of "potential to emit". The same commentor also asked if these proposed rules were intended to be an entirely new subchapter in the Montana air quality rules or were going to be incorporated into an existing subchapter. RESPONSE: The Board intends to place these rules in a new subchapter of the Montana air quality rules. The Board agrees with the commentor that a definition of "potential -to emit" should be included in the rules. The proposed rules have been amended and now are consistent with other air quality rules. COMMENT NO.6: One commentor expressed concern about the inspection and leak repair requirements section of the proposed rules being burdensome on small operating units and not in keeping with current company policy. RESPONSE: The Board finds that the proposed requirement to inspect all piping components is in keeping with current permitting requirements and believes that this provision protects public health and the environment and is not overly burdensome. Reviewed by: BOARD OF ENVIRONMENTAL REVIEW

/ s/ DAVID RUSOFF 

### By: 

## /s/ JOSEPH W. RUSSELL 

### DAVID RU$OFF JOSEPH W. RUSSELL, M.P.H. Rule Reviewer Chairman Certified to the Secretary of State, December 12, 2005.

24-12/22/05 Montana Administrative Register

### -2660­ 

# , BEFORE THE BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA In the matter of the amendment) NOTICE OF AMENDMENT AND of ARM 17.8.743 pertaining to ) ADOPTION Montana air quality permits - ) when required, and adoption of) new rules I-VI pertaining to ) (AIR QUALITY) oil and gas well facilities ) TO: All Concerned Persons 1. On August 11, 2005, the Board of Environmental Review published MAR Notice No. 17-229 regarding a notice of public hearing on the proposed amendment and adoption of the abovestated rules at page 1479, 2005 Montana Administrative Register, issue number 15. 2 . The Board amended ARM 1 7 . 8 . 743 and adopted new rules III (17.8.1603), IV (17.8.1604), V (17.8.1605), and VI (17.8.1606) exactly as proposed and has adopted new rules I (17.8.1601) and II (17.8.1602) as proposed, but with the following changes: NEW RULE I (17.8.1601) DEFINITIONS For the purposes of this subchapter, the following definitions apply: (1) through (3) remain as proposed. (4) "Potential to emit (PTE) II 

### means the maximum capacity of a facility or emitting unit, within physical and operational design, to emit a pollutant. Any physical or operational limitation on the capacity of the facility or emitting unit to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, is treated as part of its design only if the limitation or the effect it would have on emissions is federally enforceable. Secondary emissions are not considered in determining potential to emit. NEW RULE II (17.8.1602) APPLICABILITY AND COORDINATION WITH MONTANA AIR QUALITY PERMIT RULES (1) The requirements this subchapter apply to oil and gas well facilities that were completed after March 16, 1979, or that were modified after March 16, 1979, and that have the potential to emit (PTE) more than 25 tons per year (TPY) of any airborne pollutant that is regulated under this chapter, 10 TPY or more of any individual hasardous air pollutant (HAP), or 25 TPY or more of any combination of HAPS. For the purposes of this rule, PTE is calculated**~vithout** 

### regard to any air pollution control equipment used at the facility. (2) through (4) remain as proposed. 3. The following comments were received and appear with the Board's responses:
24-12/22/05 Montana Administrative Register

### 2661

COMMENT NO.1: Comments on the proposed rules from several ent ies dealt with lowing flexibility in the rules for the \ Department to deal with changing operating scenarios in the

### ~ application and permit review process. RESPONSE: Currently an entity that submits an application for a Montana air quality permit may request a change or an amendment to the application at any time prior to the Department issuing a decision on the application. In addition, sources may request some operational flexibility built into their permits, and the Department has the authority to include this operational -flexibility in the permit. Therefore, the Board pelieves this issue is addressed in the existing rules and no change is necessary. COMMENT NO.2: Comments were received on the language in New Rule II. The commentor requested a change to the proposed rule by deleting the reference to hazardous air pollutants (HAPS) in New Rule 11(1). RESPONSE: The Board agrees with the comment and has amended the proposed rule to reflect the change. Currently an oil and gas well facility with the potential to emit less than 25 tons per year of any pollutant is not required to obtain a Montana air quality permit under existing air quality rules. The rule was not intended to make the requirement for oil and gas well facilities more stringent than the existing rules for air pollution sources in Montana. Should an oil and gas well facility have potential emissions above the 10/25 tons per year**~** 

### HAP level, a Tit V permit would be required.**~** 

### COMMENT NO.3: Comments received recommended the Board delete the language that excludes the use of control equipment in determining potential to emit in New Rule II. RESPONSE: The Board agrees with the comment and has amended the proposed rules to reflect the change. With the addition to the proposed rules of a definition of "potential to emit" (PTE) and clarification in the proposed rules that air pollution control equipment can be considered in the PTE determination only if the requirements are federally enforceable, the need to further clarify the limitation on control equipment in the proposed rules is not necessary and that language has been deleted. COMMENT NO.4: One commentor stated that the requirement in New Rule 111(1) (f) for oxidation catalytic reduction on leanburn engines greater than 85 brake horsepower (BHP) is too restrictive. The commentor stated that, by design, lean-burn· engines have low emissions and that addition of oxidation catalytic reduction will not reduce emissions of nitrogen oxides. The commentor stated that oxidation catalytic reduction will reduce carbon monoxide emissions but only at a cost that is much greater than the benefit. RESPONSE: The Board disagrees with the comment for the following reason. The Board believes that controls are**.~** 

### appropriate for both rich-burn and lean-burn engines. The Board**.~** 

### Montana Administrative Register 24-12/22/05

### -2662­

believes that it is technically feasible to install control equipment on engines of either design. The five-year annualized cost is less for the rich burn design engines due to the larger reduction in pollutants from the lean-burn design engines, but neither design is economically infeasible. Also, the owner or operator of an oil or gas well facility may request alternative operating schedules through the permit

. application, to allow the control equipment requirement to be

changed. COMMENT NO.5: One commentor asked why the proposed rule does not include a definition of "potential to emit". The same commentor also asked if these proposed rules were intended to be an entirely new subchapter in the Montana air quality rules or were going to be incorporated into an existing subchapter. RESPONSE: The Board intends to place these rules in a new subchapter of the Montana air quality rules. The Board agrees with the commentor that a definition of "potential -to emit" should be included in the rules. The proposed rules have been amended and now are consistent with other air quality rules. COMMENT NO.6: One commentor expressed concern about the inspection and leak repair requirements section of the proposed rules being burdensome on small operating units and not in keeping with current company policy. 

# , RESPONSE: The Board finds that the proposed requirement to inspect all piping components is in keeping with current permitting requirements and believes that this provision protects public health and the environment and is not overly burdensome. Reviewed by: BOARD OF ENVIRONMENTAL REVIEW



### /s/ DAVID RUSOFF 

### By: / s / JOSEPH W. RUSSELL 

### DAVID RUSOFF JOSEPH W. RUSSELL, M.P.H. Rule Reviewer Chairman Certified to the Secretary of State, December 12, 2005.

24-12/22/05 Montana Administrative Register

# I

LAURA ACKERMANN DECKERCOAL COMPANY • 

### • POBOX 12 " DECKER,MT 59025-0012
RON ANDERSON LINCOLN CTYHEALTHDEPT 418 MINERAL AVE LIBBY, MT59923
BRAD BLACK APCAC BOARD MEMBER POBOX 1442 LIBBY, MT59923-1442
JOANBOWSHER CITY-COUNTYHEALTHDEPT POBOX 1723 HELENA, MT 59624
GREGBROWN CHS INC

- LAUREL REFINERY PO BOX 909 LAUREL,MT59044-0909

# ~OBIN BULLOCK ARCO 317 ANACONDA ROAD BUTTE, MT59701
JIM CARLSON MISSOULA CITY-CO HEALTH

- REPOSITORY 301 WALDER MISSOULA, MT 59802-4123 BRIAN K CLIFTON M.S. R.S. CITY COUNTY HEALTHDEPT 115 4TH ST SOUTH GREAT FALLS, MT59405
BILL COURTNEY QUANECOLLC POBOX7370 SHERIDAN,WY 82801
CNDAY 'MSONLUMBER CO 875HWY2S LIBBY, MT 59923 JOE ALINE SHUMAKERTRUCKING POBOX 1279 GREAT FALLS,MT59403
TINAANDERSON DEQ AIR QUALITYDIVISION 1866 SOUTH SHERIDANAVE SHERIDAN, WY 82801
TIM BLUME US ARMY ENVIRONMENTAL 729-19TH ST 4TH FLRRM427 DENVER, CO 80202-2500
CHIPBREMER CITE POBOX 12763 RTP, NC 27709
JOHN BRUEGGEMAN STATE REPRESENTATIVE 321 LAKEVIEWDR POLSON, MT59860-9317
WANDA BURGET POWDERRIVERCOAL CO CALLERBOX 3034 GILLETTE,WY 82717
BRUCE CLARK GENESIS INC POBOX 1660 TROY,MT 59935
DALE COCKRELL CHRISTENSEN MOORE COCKRELL PO BOX 7370 KALISPELL, MT 59904-0370 FRANKCROWLEY POWERBLOCKBLDG STE 300 HELENA, MT 59624-1185

BARB DOWSKI REGEH & S MANAGER QWESTEH &S 1855 S FLATIRON COURT BOULDER, CO 80301 DONALLEN WETA 2301 COLONIALDRSTE 2A HELENA,MT59601
MARTINBASTA CITY OFGTFALLS PUBLIC WORKS PO BOX5021 GREATFALLS, MT59403-5021 RUSS BOSCHEE YELLOWSTONE COUNTYAPC POBOX 35052 BILLINGS,MT 59107
JEFFBRIGGS SMURFIT-STONE CONTAINER CORP PO BOX4707 MISSOULA, MT 59806 LEE BRUNER PO BOX2000 BUTTE, MT 59702

DEXTERBUSBY MONTANA REFINING CO 1900 10TH ST NE GREATFALLS,MT59404-1955
LORI CLARK FORESTSERVICE AIR QUALITYPROGRAM PO BOX7669 MISSOULA, MT 59807 DAN CORTI U OFM ENVIRONMENTAL HEALTH BLDG 32 MS 9144 MISSOULA,MT 59812 CROWLEYHAUGHEY HANSON TOOLE AND DIETRICHPLLP POBOX797 HELENA, MT 59624-0797 RALPH DRIEAR HYDROMETRICSINC 1116 HELENAFLATS RD KALISPELL,MT 59901

# \
VIC DUGAN LINDAJ DWORAKDVM JOHN W DUNCAN EXXONMOBIL APCAC BOARD MEMBER RR#1 PO BOX 33 13501 KATY FREEWAY CORP- PO BOX 1663 JOPLIN,MT 59531 EMCC-L3-536 HAMILTON, MT 59840 HOUSTON, TX 77079 

# J NATHAN EKLUND ELLENENGSTEDT LAERICKSON SUMMIT ENVIROSOLUTIONS MONTANA WOOD PRODUCTS ASARCO TROYUNIT INC PO BOX 1149 PO BOX 1660 1217 BANDANA BLVD HELENA, MT 59624-1149 TROY,MT 59935 ST PAUL, MN 55108 TODD EVERTS JAMES FLANSBURG WILLIAM E FLYNN EQC HAYS LODGE POLE SCHOOLS LUZENAC AMERICA STATE CAPITAL ROOM 106

- BOX 110 767 OLD YELLOWSTONE TR DEADHEAD HAYS, MT 59527 THREEFORKS, MT 59752
ROBERTD FOOTE ALAN FRONBERG PEGGYFRUIT EXXON MOBIL CORP GLACIERENGINEERINGPC TOWN OFBROADUS 607EXXONRD 1241STAVE S STE 17 PO BOX 659 BILLINGS, MT 59101 GREAT FALLS, MT 59401 BROADUS, MT 59317
DAVID GALT RONALD GEHRKE JOHN GERHART MONTANA PETROLEUM BIG SKYMINING CO PO BOX 283 ASSOC PO BOX97 BELT,MT 59412 POBOX 1186 COLSTRIP,MT 59323 HELENA, MT 59601 ALAN GLUECKERT JENNIFERGOLDMAN ALEXANDRA GORMAN 

# J
MILES CITYLAUNDRY OIL & 

### GAS ACCOUNTABILITY WOMEN'S VOICES FORT POBOX 1409 PROJECT EARTH MILES CITY,MT 59301 POBOX7193 PO BOX 8743 BOZEMAN,MT 59771 MISSOULA, MT 59807-8743 LEIF GRIFFIN ELLA GUTZKE RALPH HAMLER SMURFIT-STONE CONTAINER SHERIDAN MEMORIAL MADISON COUNTY CORP HOSPITAL PO BOX278 POBOX4707 440 W LAUREL AVE VIRGINIA CITY, MT 59755 MISSOULA, MT59806 PLENTYWOOD, MT 59254 WILLIAMHARBRECHT KATHY HARRIS PE ANNE HEDGES WESTERNENERGY APCAC BOARDMEMBER MEIC COMPANY 2205 LIME KILNRD PO BOX 1184 PO BOX99 HELENA,MT 59601 HELENA, MT 59624 COLSTRIP,MT 59323 MARTIN HESTMARK LYNN HILL DAVID HRUBES US EPA-REGION VIII 8ENFT MSE-HKMINC EASTERN MONTANA 99918TH ST STE 300 PO BOX 7010 PO BOX36 DENVER, CO 80202-2405 SHERIDAN, WY 82801 RICHEY, MT 59259
JIM HUGHES ROSE HUGHES DIANNE HUHT ANEN DEQ-BILLINGS

-- THE CONSULTING ROCKYMOUNTAIN LABS**~** 

### REPOSITORY ENGINEERS 903 S 4TH ST 1371 RIMTOPDR 36 S LAST CHANCE GUL STEA HAMILTON,MT 59840 BILLINGS,MT 59105-1978 HELENA,MT 59601

### BRUCE HUNNER BRUCE JOHNSON DALE J JOHNSON RAVALLICOUNTYENV SUMMIT ENVIROSOLUTIONS ENVIRONMENTALHEALTH ENFORCEMENT & 

### INC 4748 RIMROCKRD 

# (.; COMPLIANCE 1217BANDANA BLVD BILLINGS, MT 59106 215 S4THSTSTED STPAUL, MN 55108 DEANJOHNSON RILEYJOHNSON DICKJUNTUNEN APCAC BOARD MEMBER NFIB RESOURCE MGMT BOX 131 491 SOPARK ASSOCIATES GLENDIVE, MT 59330 HELENA, MT 59601 259 MCCLELLAN CREEKRD CLANCY, MT59634 MICHAEL S KAKUK THOMAS KALLENBACH JAKE KAMMERERR.S. KAKUK LAW OFFICES PC FLUIDYNE INC & 

### ELKGROVE RAVALLICOUNTYENV POBOX747 DEVELOPMENT CO HEALTH HELENA, MT 59624-0747 155 ANNIE GLADE DR 215 S 4TH STSTE D BOZEMAN ,MT 59718-7691 HAMILTON, MT59840 BOB KELLY CALVIN KIDNEY PAT KIMMET INTERTEC WELLS FARGO CENEX 619 S W HIGGINS STE S 877 W MAIN ST 5THFLOOR PO BOX909

.MISSOULA, MT59803 BOISE,ID 83702 LAUREL,MT 59044-0909

TOM KIRCHER JERRYD. KNUTSON CHRIS KOLSTAD STILLWATERMINING CO WESTTECH SUPPLY & 

### APCAC BOARD MEMBER HC54 BOX 365 SERVICES HC 74 BOX 49 NYE, MT59061 PO BOX 80711 LEDGER, MT59456 BILLINGS, MT 59108 'tARRYLAKNAR CATHYLAUGHNER MITCHELLLEU BEAVERHEAD COUNTY BROWNING KALECZYC PLUM CREEK

- APCAC SANITARIAN POBOX 1697 MEMBER 2 SPACIFIC ST HELENA,MT59624 POBOX 160 DILLON,MT59725-2799 COLUMBIAFALLS, MT59912 LIONTECHNOLOGIES INC CARRIE LLOYD CHERRYLONEY ATTN LIBRARY VETERANS AFFAIRS CASCADE COHEALTHDEPT

­ POBOX700 WILLIAMSST

- REPOSITORY LAFAYETTE, NJ 07848 FORTHARRISON,MT59636 115 4THSTS GREATFALLS,MT 59401-3618 RICHARD LONG MICHAEL J LUCIANO MICHAEL MACHLER US EPAREGIONVIII 8P AR FARMHARVESTING OF APCAC BOARD MEMBER 999 18TH STSTE 300 EUREKA 771 TOPAZAVE DENVER, CO 80202-2405 POBOX 1050 BILLINGS, MT59105 EUREKA, MT 59917 DEB MADISON WAYNE MARCHWICK DON MAY FORT PECKTRIBES CENTRAL MTHEALTH DEPT MAXIMTECHNOLOGIESINC BOX 1027 305 W WATSON ST POBOX2730 POPLAR, MT 59255 LEWISTOWN,MT 59457 MISSOULA, MT 59801**~RIEL** 

### MCAULIFFE BRIAN MCHUGH JOHN MCKENNA RRA RESEARCH MAXIM TECHNOLOGIES INC ETS INTERNATIONAL 1801 J ST 618 S 25TH ST 1401 MUNICIPAL RD NW SACRAMENTO, CA 95814 BILLINGS,MT 59107 ROANOKE, VA 24012-1309

### 7536 "WILLIAM MCLAUGHLIN WALTERLMCNUTT**ARL~IE** 

### A MOHL 341 CES/CEVC AG EQUIPMENT SALES A-I PAVING 3978THSTN 110 12THAVE SW 3131HWY2E MALMSTROMAFB, MT 59402- SIDNEY, MT 59270 KALISPELL, MT 59901 

# J
BOB MONTGOMERY TIM MULLIGAN DARREL MYRAN WESTERNENERGY CO RISKMANAGEMENTDIV WESTMORELAND POBOX 99 POBOX 3767 RESOURCES INC COLSTRIP, MT 59323 BUTTE, MT 59702 BOX449 HARDIN, MT59034 ANNISSA NELSON ALLEN NIPPLE DAVE NOELL TANKNOLOGY SPRING CREEKCOAL CO APCAC BOARD MEMBER 470 SCHROCKRD STE L POBOX 67 1318 BABCOCK CIRCLE COLUMBUS, OH43229 DECKER, MT 59025-0067 BILLINGS, MT 59105
TRACYOPP OWEN ORNDORFF SANDI OLSEN STONE ENERGY CORP YELP DEQ 950 17TH ST STE 2600 1087W RIVER ST STE 200 REM

- DEADHEAD DENVER, CO 80238 BOISE, ID 83702
JOE O'ROURKE JIM PARKER DICKPAULSEN FH STOLTZELAND & 

### PPLMT AMERICANLUNGASSN LUMBER 1WAREHOUSERD 825 HELENAAVE BOX 1429 COLSTRIP, MT 59323 HELENA, MT59601 COLUMBIA FALLS, MT59912 MIKE PHILBIN ELLENPORTER 

# J STEVE PILCHER BLM ROSEBURGFOREST POBOX 1715 5001 SOUTHGATE DR PRODUCTS HELENA, MT 59624-1715 BILLINGS, MT 59101 PO BOX4007 MISSOULA, MT59806 DANPOWERS DON QUANDER TIM QUARLES BUTTE/SB HEALTHDEPT HOLLAND AND HART THE RETEC GROUPINC 25WFRONTST 401 N 31ST ST STE 1500 2048 OVERLAND AVE STE 101 BUTTE, MT 59701 BILLINGS, MT 59101 BILLINGS,MT 59102
JEREMYRHODES RANDALL RICHERT JIMRAMAKER 341ST CES/CEV CONOCO POBOX760 39 78TH ST N PO BOX30198 CHOTEAU, MT59422 MALMSTRM AFB, MT 59402- BILLINGS, MT59101-0198 7536 MIKE RINALDI RS HAL ROBBINS CORRINE A ROSE RS ROSEBUD COUNTY BISONENGINEERINGINC TETON/PONDEROSA COUNTY SANITARIAN 1400 11THAVE STE 3 BOX 610 251 NO 17TH HELENA, MT 59601-4516 CHOTEAU,MT59422 FORSYTH, MT 59327 JOE RUSSELL PAT SAINDON GERALD SCHLOSSER FLATHEAD CTYHEALTH PLANNING DIVISION SUPROFPLANT SERVICE\.) DEPT MT DOT

- ENVIRONMENTAL

- 1101 26TH ST S 10351STAVE W DEADHEAD GREAT FALLS, MT 59405 KALISPELL, MT59901 HELENA,MT

### CURT SCRIBNER YELLOWSTONEENERGYLTD 2215 FRONTAGE RD BILLINGS, MT59101-7307
JAGADEESANSETHURAMAN WHITING PETROLEUM 1700 BROADWAY STE 2300 DENVER, CO 80290
JAYSKABO MONTANA DAKOTA UTILITIES 400N4THST BISMARCK,ND 58501 PATRICIASPENCER ENVIRONMENT REPORTER BNA-123125TH STNW S-382 

### WASHINGTONDC, DC20037
RICKSTEFANIC BUREAU OFINDIAN AFFAIRS 316 N26TH ST BILLINGS,MT 59101

# ~ SAM STEPHENSON ARC

### 0 317ANACONDA AVE BUTTE,MT59701
LARRY SVOBODA US EPAREGION VIII-8P-AR

.999 18THST STE 300 DENVER, CO 80202-2405
RAYTILMAN MONT ANA RESOURCES 600 SHIELDS AVE BUTTE, MT59701
TONYTWEEDALE MTCHEER 404 E SPRUCE STAPT 2 MISSOULA, MT 59802-4655**~EVEWADE**



### . OWNING KALECZYC BERRY & 

### HOVEN POBOX 1697 HELENA,MT59624 WADE SELLERS SUPERIORENTERPRISES POBOX 128 SUPERIOR,MT59872
PETE SIMONICH COLSTRIP STEAMELECTRIC STATION POBOX 38 COLSTRIP,MT59323 DENNIS J SNOWRS DAWSON CITY SANITARIAN 207WBELL GLENDIVE,MT59330
LYNN STABENFELDT MULTISTATEASSOCIATES INC 515KINGST ALEXANDRIA, VA 22314 JODEE STEIN WELLS FARGO 175 N 27 ST BILLINGS,MT59101
STAN STERNBERG MTDOT

- ENVIRONMENTAL MTDOT

- ENVIRONMENTAL

­ DEADHEAD HELENA,MT LILA TAYLOR BOX 595 KIRLEYRT BUSBY, MT59016

STEVE TURKIEWICZ MONTANAAUTO DEALERS ASSN 501 N SANDERS ST HELENA, MT 59601 DARYLURAN WILLISTONBASIN INST PIPEL POBOX 131 GLENDIVE, MT 59330 GERALD WAGNER BLACKFEETTRIBAL PO BOX 2029 BROWNING,MT59417 JON SESSO BUTTE/SILVERBOWPLAN CRTHSE 155W GRANITE BUTTE,MT 59701
DAVE SIMPSON WESTMORELAND RESOURCES PO BOX449 HARDIN, MT 59034 RICH SOUTHWICK APCAC BOARD MEMBER 173 COTTONWOODRD TOWNSEND,MT 59644
FRED STEELE CSKTTRIBAL HEALTH BOX 880 STIGNATIUS,MT59865
STEPHENBLANKENSHIP FORD 925 L ST STE 390 SACRAMENTO, CA 95814
FRED STIERS CONOCOINC PO BOX30198 BILLINGS,MT 59107-0198
SHANNON THERRIAULT CITYCOUNTYHEALTHDEPT 301 WALDERST MISSOULA, MT 59802
BARRI TWARDOSKI MAXIM TECHNOLOGIESINC PO BOX 2730 MISSOULA, MT 59806
CALLIE VIDETICH US EPAREGION VIII-8P-AR 99918TH STSTE 300 DENVER, CO 80202-2466

BETSYWAHL EPA EPA-DEADHEAD

### SCOTTWALKER YELLOWSTONE CITY COUNTY 510 N BROADWAY BILLINGS,MT59101 LINDAWIEGERT MERIDIAN OILINC 801 CHERRY ST STE 700 FORT WORTH, TX76102
LARRYZINK MT SULPHUR & 

### CHEMICAL CO PO BOX 31118 BILLINGS,MT 59107
FARMERS UNION OIL CO 1000 SMELTERAVE BLACKEAGLE,MT 59414

MONTANA POWER CO PO BOX 38 COLSTRIP,MT59323 KEVIN K. WALSH ENVIRONMENTAL CONSULTING 451 FREEDOM AVE BILLINGS,MT 59105 STEVE D WRIGHT COLUMBIA FALLS ALUMINUM 2000 ALUMINUM DR COLUMBIAFALLS,MT 59912
CARBON 

### COUNTYHEALTH DEPT BOX466 RED LODGE, MT 59068
MONTANAMOTOR CARRIERS 501 N. SANDERS ST#201 HELENA,MT 59601-4552
NORTHERN PLAINS RESOURCE COUNCIL 2401 MONTANA AVE #200 BILLINGS,MT 59101-2336

Lastedited by

### JB, 12115/05 

### JOHN WARDELL EPA EPA

- DEADHEAD 

# ..J JIM ZABROCKI CUSTERCO SANITARIAN'S OFFICE

-- REPOSITORY COURTHOUSE MILES CITY,MT 59301
CENTURY COMPANIES INC BOX 739 LE\VISTOWN, MT 59457

MONTANA AUDUBON POBOX595 HELENA, MT 59624

PACK & 

### COMPANYCONST PO BOX 8150 KALISPELL,MT 59904-1150 

# ..J

### MontanaDEQ

- Legal Unit

- Adopted RuleNotices Page 1ofl

DEPARTMENT OF ENVIRONMENTAL QUALITY QEQHQrne 

### AdministrativeRules ofMontana 

# Final Notice of Rulemaking

Effective Purpose 12/23/05

12/23/05

10/28/05



### Questions or Comments?

Contact the Rule Coordinatorat (406) 444-2630

II'" t Updated: 15 Dec 2005 Privacy & Security Accessibility Contact Us 

### '**~',** 

### m gOY



### 12/16/2005 

### http://www.deq.mt.gov/dirllegalladoption.asp_____ 

# ('

-2660­

BEFORE THB BOARD OF ENVIRONMENTAL REVIEW OF THE STATE OF MONTANA In the matter of the amendment) of ARM 17.8.743 pertaining to ) Montana air quality permits - ) When required, and adoption of) new rules**I~VI** pertaining to ) oil and gas well facilities ) TO: All Concerned Persons NOTICB OF AMENDMENT AND ADOPTION
(AIR QUALITY)

1. On August 11, 2005, the Board of Environmental Review published MAR Notice No. 17-229 regarding a notice of public hearing on the proposed amendment and adoption of the abovestated rules at page 1479, 2005 Montana Administrative Register, issue number 15. 2. The Board has amended ARM 17.8.743 and adopted new rules III (17.8.1603), IV (17.8.1604). V (17.8.1605), and VI (17.8

.. 1606) exactiy as proposed and has adopted new rules I (17.8.1601) and II (17.8.1602) as proposed, but with the following changes: NEW RULE I (17. B.1601) DEFINITIONS For the purposes of this subchapter, the following definitions apply: (1) through (3) remain as proposed. (4) "Potential to emit IPTE)" means the maximum capacity of a facility or emitting unit. within physical and operational design. to emit a pollutant. Any physical or operational limitation on the capacity of the facility or emitting unit to emit a pollutant. including air pollution control equipment and restrictions on hours of operation Qr on the type or amount of material combusted, stored. or processed. is treated as Part of its deaiqn only if the limitation or the effect it would have on emissions is federallY enforceaple, Secondary emissions are not considered in determining potential to emit" NEW RULE II 1:\7.8,1602) APPLICABILIty AND COORDINATION: WITH MONTANA AIR QUALITY PERMIT RULES (1) The requirements of

. this subchapter apply to oil and gas well facilities that were', completed after March 16, 1979, or that were modified after: : March 16, 1979. and that have the potential to emit (PTE) more" than 25 tons per year ITPY) of any airborne pollutant that is. regulated under this chspter, 19**~py** sr Mere ef say iaeivieual'**hiHta~s** air I'sl1\ll::anl; (IIAPl, ar as, 'FPY ar Mati'e af any eem&iftaMen af IY'.PB. Fsr U.e Iltlrllesell ef 1::1I1s rlile, PTE ill**ea~l;ee ~~iI;1Isut**  regati'e ta aAY air psHutleA senEral eEfHi:pllleftE lieee-at;-the faeility. (2) through (4) remain as proposed. 3. The following the Board's responses:
24-12/22/05 comments

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# i b I COMMENT NO.1: Comments on the proposed rules from several entities dealt with allowing flexibility in the rules for the Department to deal with changing operating scenarios in the application and permit review process. RESPONSE; Currently an entity that submits an application for a Montana air quality permit may request a change or an amendment to the application at any time prior to the Department issuing a decision on the application. In addition, sources may request some operational flexibility built into their permits, and the Department has the authority to include this operational flexibility in the permit. Therefore, the Board believes this issue ie addressed in the existing rules and no change is necessary. COMMENT NO.2: Comments were received on the language in New Rule II. The commentor**~equested** a change to the proposed rule by deleting the reference to hazardous air pollutants lHAPS) in New Rule 11(1). RESPONSE: The Board agrees with the comment and hae amended the proposed rule to**refle~t** the change. Currently an oil and gas well facility with the potential to emit less than 25 tons per year of any pollutant is not required to obtain a 

# I Montana air quality permit under existing air quality rules. The rule was not intended to make the requirement for oil and gas well facilities more stringent than the existing rules for air pollution sources in Montana. Should an oil and gas well 

# J facility have potential emissions above the 10/25 tons per year 

## ii, HAP level, a Title V permit would be required, 

### Ii COMMENT NO.3: Comments received recommended the Board delete the language that excludes the use of control equipment in determining potential to emit in New Rule II. RESPONSE: ThE!! Board agrees with the comment and has amended the proposed rules to reflect the change. With the 'I addition to the proposed rules of a definition of "potential to emit" (PTE) and clarification in the proposed rules that air pollution control equipment can be considered in the PTE determination only if the requirements are federally enforceable, the need to further clarify the limitation on control equipment 1n the proposed rules is not necessary and that language has been deleted. COMMENT NO.4; One commentor stated that the requirement in New Rule 111(1) If) for oxidation catalytic reduction on leanburn engines greater than 85 brake horsepower IEtHP) is too restrictive. The commentor stated that, by design, lean-burn engines have low emissions and that addition of oxidation catalytic reduction will not reduce emissions of nitrogen oxides. The commentor stated that oxidation catalytic reduction will r,educe carbon mO!loxide emissions but only at a cost that is much greater than the benefit. 

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p RESPONSE: The Board disagrees with the comment for the following reason. The Board believes that controls are I· appropriate for both rich-burn and lean-burn engines. The Board 

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believes that it is technically feasible to install control equipment on engines of either design. The five-year annualized cost is less for the rich-burn design engines due to the larger reduction in pollutants from the lean-burn design engines, but neither design is economically infeasible. Also, the owner or operator of an oil or gas well facility may request alternative operating schedules through the permit application, to allow the control equipment requirement to 'be changed. COMMENT NO.5: One commentor asked why the proposed rule does not include a definition of ·potential to emit". The same commentor also asked if these proposed rules were intended to be an entirely new subchapter in the Montana air quality rules or were going to be incorporated into an existing subchapter. RESPONSE, The Board intends to place these rules in a new subchapter of the Montana air quality rules. The Board agrees with the commentor that a definition of "potential to emit" should be included in the rules. The proposed rules have been amended and now are consistent with other air quality rules. COMMENT NO. 61 One commentor expressed concern about the inspection and leak repair requirements section of the proposed rules being burdensome on small operating units and not in keeping with current company policy. RESPONSE; The Board finds that the proposed requirement to inspect all piping components is in keeping with current permitting requirements and believes that this provision protects public health and the environment and is not overly burdensome. BOARD OF ENVIRONMENTAL REVIEW Reviewed by:
By: 

### lsi JOSEPH W. RUSSELL 11i!! DA VID RUSOFF JOSEPH W. RUSSELL, M.P.H. DAVID RUSOFF Chairman Rule Reviewer Certified to the secretary of State, December 12, 2005.

Montana Administrative 24-12/22/05

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BEFORE THE BOARD OF ENVIRONMENTAL REVI OF THE STATE OF MONTANA
matter of the amendment) NOTICE 17.8,759 pertaining to ) of permit applications ) All Concerned Persons August 11, 2005, the ronmental Review Notice NO. 17-228 regard notice of public

proposed amendment of

Montana Administrati

amended the -stated rule at ster, issue number proposed. but with
(1) through (4)**....~** ....**~**

talne I;ted

0 1;0 t

comments were received of any

with

Administrative Register