OFFICE OF THE GOVERNOR 

STATE OF MONTANA 

BRIAN SCHWEITZER JOHN BOHLINGER L LT. GOVERNOR 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 of oil 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 December 2, 2005. 

In addition to these submissions, Montana is also withdrawing the previous submission 

of ARM 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 - December 6, 2002). Montana is 

also submitting an update to the incorporation by reference of ARM 17.B.1402, adopted 

by the Board on June 5,2003. 

This submission contains two copies of the Records of Adoption as required by 40 CFR 

Part 51, Appendix V. Also enclosed are two copies of SIP narrative replacement pages. 

If you have any questions concerning the contents of this 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 0 FAX: 406-444-5529 C WEBSITE: WWW.MT.GOV

STATE OF MONTANA 

RECORD OF ADOPTION - ARM 

In the matter ofthe adoption ofNew Rules I through VI, pertaining to oil and gas well 

facilities, and the amendment ofARM 17.8.743, pertaining to Montana air quality 

permits when required 

Date ofFinal Adoption by the Board ofEnvironmental Review: 

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 of general 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 of amended rule (published copy). 

,ilg(Cb 

Date: 
.M"ontana 

Board ofEnvironmental Review 


P. O. Box 200901 • Helena. MT 59620-0901 • (406) 444-2544 • Website: www.deq.state.tnt.1fS 

AGENDA 


BOARD OF ENVIRONMENTAL REVIEW 


FRIDAY, JULY 29, 2005 


METCALF BUILDING, CONFERENCE ROOM 111 


1520 EAST SIXTH A VENUE, 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 order they are scheduled. 

9:00A.M. 

I. ADMINISTRATIVE AGENDA ITEMS 

A. 	 Review and approve minutes of June 3, 2005, meeting. 

Draft Minutes 

ll. BRIEFING AGENDA ITEMS 

A. 	 CONTESTED CASE UPDATE: 

1. 	 Cases assigned to Hearing Officer Tom 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 the parties stipulated to a stay of contested 

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 

scheduling order. 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 of Lewistown 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 of Violations of the 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 various 
Board of Environmental 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 of Violation and Administrative Compliance 

and Penalty Order issued by DEQ relating to the alleged failure of Bar S Livestock, 

Inc. to comply with the requirements of the 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 October 5,2005. 

f. 	 In the matter of Violations of the Water Quality Act by ASARCO, Inc., (BER 

2005-09 WQ). The Board received a request 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 of septage 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 September 28,2005. 

1. 	 In the matter of the notice of Violation of the Opencut Mining Act by Mickelson 

Rock Products, LLC at the Tricon Pit #2, Mineral County (HER 2005-12 OC). 

DEQ issued a notice of violation and statement of proposed penalty for mining without a 

permit. Under the scheduling order, the hearing will probably be held in December 2005. 

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 of a 

public sewage system without a certified operator. Under the scheduling order, the 

final prehearing conference was set for November 7,2005. 

B. 	 OTHER BRIEFING ITEMS 
Board of Environmental Review 


July 29, 2005 


Page 3 of5 


1. 	 F AQs Update - The Board will be briefed on the status of updating the Board F AQs on 

the Web. 

Revised Frequently Asked Questions 


ill. ACTION AGENDA ITEMS 


A. 	NPRC PETITION FOR RULEMAKING 

On May 17, 2005, the Board received a 70-page petition from 17 entities, including Northern 

Plains Resource Council and Tongue & Yellowstone Irrigation District. The petition contains 

two components: (1) proposed adoption of new rules pertaining to treatment requirements for 

water from Coal Bed Methane (CBM) development; and (2) proposed amendment of ARM 

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 

Petition until the meeting on July 29, 2005. 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 or initiate rulemaking. Under Mont. 

Code Ann. Sec. 2-4-315, the Board's decision to deny the petition or to initiate rulemaking 

must be in writing and based on record evidence. 

Executive Summary 

Notice of Public Hearing on Proposed Amendment and Adoption 

Water Pollution Control Advisory Board Comment 

(., 	 Pinnacle Gas Resources Comments I 

Fidelity Exploration and Production Company Submittals 	 ~ 

! 

Comments Letter I 

r 

i 

Analysis of Petition 	 , 

~ 

Tom Osborne, HydroSolutions Inc. Draft Testimony ! 

Schafer Ltd. Analysis of Water Quality 

PowerPoint Presentation I

Petroleum Association of Wyoming Technical Review and Analysis t 

I B. 	 FINAL ACTION ON APPEALS ! 

1. In the matter of the 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, Jeff and 

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 

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

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 a 
Board ofEnvironmental Review 

July 29, 2005 

Page 4 of5 

Notice of Violation and Statement of Proposed 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 of Violations of the 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 

examiner or decide 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 or hear the 

case. 

D. 	 REMANDED CONTESTED CASE 

In the matter of the issuance of the 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 of review. 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 of the case, issued a scheduling 

order on June 17, 2005, setting a schedule for the parties to submit their positions 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 OF RULEMAKING 

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 affidavits 
Board of Environmental Review 

July 29, 2005 

Page 5 of5 

setting forth the grounds for requests for hearing, and by authorizing the Board to issue 

rules to extend public comment periods. 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 of Montana 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 of the law. 

Executive Summary 

Notice of Public 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 

On July 13,2005, the Board received a petition from the Montana Environmental Information 

Center and the Fort Belknap Indian Community Council. The petition 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 or initiate rulemaking. 

Executive Summary 

IV. GENERAL PUBLIC COMMENT 

Under this item, members ofthe public may comment on any public matter within the jurisdiction 

of the Board that is not otherwise on the agenda ofthe meeting. Individual contested case 

proceedings are not public matters on which the public may comment. 

V. ADJOURNMENT 

NOTE: Persons with disabilities who need an accommodation in order to participate in this meetin& should contact 

the Board Secretary at (406) 444·2544. 

c 
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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 17.8.744k 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 
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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) f the requirements of [NEW RULE

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 l 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 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 
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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 
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.. 

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 October 4, 2005, at 10:30 a.m., a public hearing will be held before Katherine Orr, 

presiding officer appointed by the Board of 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 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 Department of Environmental 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 of the proposed amendments and new air quality rules into 

Montana's State Implementation Plan. 

4) The proposed amendments and adoption of new air quality rules would affect the 

owners and operators of oil and gas well facilities that are required to obtain air quality 

permits from the Montana Department of Environmental Quality. 

5) Interested parties may review a copy of the proposed amendments and new air quality 

rules on the Internet at <http://www.deq.state.mt.us/dirllegallhearing.asp> or at the 

following locations: 

a) 	 Montana Department of Environmental Quality 


Air Resources Management Bureau 


Metcalf Building 


1520 E. Sixth Ave. 


Helena, Montana 59620-0901 


b) 	 Montana Department of Environmental Quality 


Airport Industrial Park IP-9, 1371 Rimtop Drive 


Billings, Montana 59105-1978 


c) 	 Missoula City-County Health Department 


301 West Alder 


Missoula, Montana 59802 


d) 	 Cascade City-County Health Department 


115 4th Street South 


Great Falls, Montana 59401 

e) 	 Custer County Sanitarian 


Custer County Courthouse 


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 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, 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 or before 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 

FAX TR.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 FOR LEGAL ADVERTISEl\':lJ.l:NT t 

(ARM 5016-032) 

Mes&age: Please publish the enclosed docu:m.ent in tho legal section ofyour nevvspaper on t 

Sunday,. Au~s.t 28,. 20OS. R.e1:U:ul tho original affidavit ofpublication and a copy ofthc 

billing &ta'texoent to the address beloW'. This request is in adaition to any regular m.a:iling of 

billing statements to the Montana Depart:tnent ofEnvironmental Quality generally. I 

Montana Departm.ent ofEnvironxnentat Quality 

..A.ir Resources Manageme.o:t Bureau I P.O. )3ox 200901 


Helena.,:rv.rr 59620-0901 
 I 

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

also e--lIlail the public notice to you. i 

Sincerely. I 

! ~ 

,~~ I 

I 

~ 

Air Quality Specialist 


Air Resources Manage:m.ent Bureau 


Montana Department of EnviroIl1:Ilental Quality 


E-m.aB: janbro-wn@rnt.gov 


Enclosure 

l-lcl.. """,. MT 596:20-0901 
P.O. Box 200901 Helena, MT 59620-0901 • 

Brian Schweitzer, 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 FOR LEGAL ADVERTISEMENT 

(ARM 5016-032) 

Message: Please publish the enclosed document in the legal section of your 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 any regular mailing of 

billing statements to the Montana Department of Environmental Quality generally. 

Montana Department ofEnvironmental Quality 


Air Resources Management Bureau 


P.O. Box 200901 


Helena, MT 59620-0901 


If you 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 

Air Resources Management Bureau 

Montana Department of Environmental 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 

FAX TRANSMrTTAL 

(406) 791-1436 

August 22, 2005 

Great Falls Tribune 

Class.ified. Ads 

205 RiverDx-. So. 

Great Falls, MT 59403 

E-Hla.il: pbasta@g:reatfal.gannert.com. 

RE: 	 PUBLIC NOTICE FOR. LEGAL ADVERTISEMENT 

(.AR.l.VI5016-033) 

Message: Please publish the enclosed doc'U:O).ent in the legal section ofyour newspaper on 

Sunday, Augn-s1: 28~ 20OS. Rc:¢uxn the original affidavit ofpnblication and a copy ofthc 

billln.g stateJnent to the address beloW". This request is in addition to any regular mailing of 

billing statements to the Montana Depa:rtwent ofEnvironm.ental Quality generally. 

Montana Depa:rtI:nent ofEnviro:r::u:nental Quality 

Air Resources Management Bureau 

P.O. Box 200901 


Helena. MT 59620-0901 


Ifyou have any que5Uo;QS regarding this notice, please call1D.e at (406) 444-9741. I will 

also e-mail the public notice to you. 

Sincerely.. 

JauBro'Wn 

~~~ 

Air Quality Specialist 

A.ir Resou:r-ces Management Bureau 

Montana Department ofEnvirotln"lental QualityE-mail; janbrown@mt.gov 

Enclosure 
=:r 

-y Montan;' Department of 

ENYI[RO 

P.O. Box 200901 Helena, MT 

ALQUiliTY Brian Schweitzer, Governor 

59620-0901 • (406) 444-2544 • www.deq.mLgov 

FAX TRANSMITTAL 

(406) 791-1436 

August 22, 2005 

Great Falls Tribune 

Classified Ads 

205 River Dr. So. 

Great Falls, MT 59403 

E-mail: pbasta@greatfal.gannett.com 

RE: 	 PUBLIC NOTICE FOR LEGAL ADVERTISEMENT 

(ARM 5016-033) 

Message: Please publish the enclosed document in the legal section of your 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 any regular mailing of 

billing statements to the Montana Department ofEnvironmental Quality generally. 

Montana Department ofEnvironmental Quality 


Air Resources Management Bureau 


P.O. Box 200901 


Helena, MT 59620-0901 


If you have any questions regarding this notice, please call me at (406) 444-9741. I will 

also e-mail the public notice to you. 

Sincerely, 

1wYv~ Ian Brown 

Air Quality Specialist 

Air Resources Management Bureau 

Montana Department ofEnvironmental Quality 

E-mail: janbrown@mt.gov 

Enclosure 

Enforcement Division • Permitting & Comptiance Di\'ision • Planning. Prevention & Assistance Division • Remediation Division 
3/3 

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 Independent Record 

Classified Ads 

317 Cruse Ave:. 

BeleDa,. MT 59604 

E-m.ai1: beY..allison@heienair.co:m. 

:RE: 	 PUBLIC NOTICE :FOR. LEGAL Al>VERTISE:M.ENT 

(ARM 5016-034) 

Message: Please publish the enclosed docu:m.ent in the legal .section ofyour newspaper 011 

Sunday, August 28, 2005. Ret:urn the original affidavit ofpUblication and a copy ofthe 

billing stat=.ent to the address beloW'. This request is in addition to any regular xnailing; of 

billing state:ments t-o the Montana Departxnent ofEnvirornnental Quality generally. 

Montana Deparanen.t ofEnvirorunental QUality 

Air R.esources Maoagetnent Bureau 

P.O. Box 200901 


Helena.. MT 59620-0901 


Ifyou have any questions regarding this notice. please call Ineat (406) 444-9741. I ~ 

also e-Inail the publie notice to you. 

Sincerely. 

Air 

J~ 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 Brian Schweitzer, Governor 

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

FAX TRANSMITTAL 

447-4052 

August 22, 2005 

Helena Independent Record 

Classified Ads 

317 Cruse Ave. 

Helena, MT 59604 

E-mail: bev.allison@helenair.com 

RE: 	 PUBLIC NOTICE FOR LEGAL ADVERTISEMENT 

(ARM 5016-034) 

Message: Please publish the enclosed document in the legal section of your newspaper on 

Sunday, August 28, 2005. Return the original affidavit of publication and a copy ofthe 

billing statement to the address below. This request is in addition to any regular mailing of 

billing statements to the Montana Department ofEnvironmental Quality generally. 

Montana Department of Environmental Quality 


Air Resources Management Bureau 


P.O. Box 200901 


Helena, MT 59620-0901 


If you have any questions regarding this notice, please call me at (406) 444-9741. I will 

also e-mail the public notice to you. 

Sincerely, 

C)y{/y,-~C(h~ 

Jant£:wn 

Air Quality Specialist 

Air Resources Management Bureau 

Montana Department of Environmental 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.se publish the enclosed docwnent in the legal section ofyour neJWSpaper on 

Monday" August 29. 2005. Retwn the original afiidavit ofpublication and a copy ofthe 

billing statem.en.t to the address belo"",_ This request is in addition to any regular lUailing of 

billing statements to the Montana Departm.ent ofEnviromne:ntal Quality generally. 

Montana Depa.rt:rnent ofEnviro=ental Quality 

AXr Resources Manage:rnent Bureau 

P.O. Box. 200901 

Helena, MT 59620-0901 

If'you havo any questions regarding tbis notice. please call1Ue at (406) 444-9741. I vvill 

also e-nurll the public notice to you. . 

Jan 

Smce:relY7 

~~ Brown 

Air Quality Specialist 

Air Resources Management Bureau 

Montana Department ofEnv:i:ronn"lental Quality 

E-lnail: janbrovvn@:mt.gov 

Enclosure 
51!..... 'f Montana Department of 

ENVJ[RONMENTALQlJ.II.~TY Brian Schweitzer, 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 FOR LEGAL ADVERTISEMENT 

(ARM 5016-035) 

Message: Please publish the enclosed document in the legal section of your newspaper on 

Monday, August 29, 2005. Return the original affidavit ofpublication and a copy ofthe 

billing statement to the address below. This request is in addition to any regular mailing of J 

billing statements to the Montana Department ofEnvironmental Quality generally. 

Montana Department of Environmental Quality 


Air Resources Management Bureau 


P.O. Box 200901 


Helena, MT 59620-0901 


If you have any questions regarding this notice, please call me at (406) 444-9741. I will 

also e-mail the public notice to you. 

Sincerely, 

Jan 

~~ Brown 

Air Quality Specialist 

Air Resources Management Bureau 

Montana Department of Environmental Quality 

E-mail: janbrown@mt.gov 

Enclosure 

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

P. 

* * * COMM IJ N I C A Tl 0 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 Brian Sclnveitzcr, Governor 

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

, 	

FAX TRANSMITTAL 

(406) 523-5221 

August: 22~ 200S 

The lYlissoulian 


Classified Ads 


500 So. Higgins 


lvfissoula.. MT 59807 


E-mail: legals@nrissoulian.coxn 


RE: 	 PUBLJC NOTJ:CE FOR LEGAL ADVERTISEMENT 


(.A.RM 5016-036) 


Messa.ge: Please publish the enclosed document in the legal section ofyour Dew'spaper on 

Sunday, AuguS1: 28. 20OS. Retw:n the original affidavit: o:fpublicatiOXl and a copy o:fthe 

billing statem.ent to the address. below. This :request is in addition to any regular :mailing of 

billing sta:te:roents to the Montana Department ofEnviromnental Quality generally. 

Montana Department ofEnvironInental Quality 

.AJ.J: Resom;ce$ Mat).agernent Bureau 

P.O. Box 200901 

Helena. MT 59620-0901 

Ifyou have any questions regarding this notice. please call m.e at (406) 444-9741. I will 

also e-m.ail the public notice to you. 

Sinceroly. 

Air 

1~~ Quality Specialist: 


Air Resources Manageznent Bureau 


Montana Departm.ent ofEnvironrneutal Quality 


E-mail: janbrown@mt.gov 


Enclosure 
.Y Montana Department of 

ENYI[]RONMENTALQUAlJrY Brian Schweitzer, Governor 

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

FAX TRANSMITTAL 

(406) 523-5221 

August 22, 2005 

The Missoulian 

Classified Ads 

500 So. Higgins 

Missoula, MT 59807 

E-mail: legals@missoulian.com 

RE: 	 PUBLIC NOTICE FOR LEGAL ADVERTISEMENT 

(ARM 5016-036) 

Message: Please publish the enclosed document in the legal section of your newspaper on 

Sunday, August 28,2005. Return the original affidavit of publication and a copy of the 

billing statement to the address below. This request is in addition to any regular mailing of 

billing statements to the Montana Department ofEnvironmental Quality generally. 

Montana Department of Environmental Quality 


Air Resources Management Bureau 


P.O. Box 200901 


Helena, MT 59620-0901 


If you have any questions regarding this notice, please call me at (406) 444-9741. I will 

also e-mail the public notice to you. 

Sincerely, 

%/v~J~lh~ 

JU:~ Air Quality Specialist 

Air Resources Management Bureau 

Montana Department of Environmental 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 

Board of 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, pertaining to 011 

and gas well facilities. 

2) Pursuant to senate 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 well facilities to drill 

and operate UP to 60 days prior to submitting an appli­ cation for an air Quality per­ mit. The proposed rules 

would require the owner or to Install and oper­
 . . rtaln speclfled air pol­
 control equipment
 mpl'( with certain air 


pollution control practices from the well completion date until the deciSion of 

the Montana Department of 

EnVironmental Quality on the permit application Is final. 

3) The Board will be accept· Ing publIC comment regard· Ing the Incorporation of the 

proposed amendments 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· 

ments and adoptIOn of new air Quality rules would affect the owners and opera­ tors of 011 and gas well faclll· 

ties that are required to obtain air Quality permits from 

the Montana Department of 

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 or at the followIng locations: 

a) Montana Department of 

Environmental Quality Air Resources Management Bureau 

Metcalf Building 1520 E. SIXth Ave. 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 west Alder 

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 

Air Resources Management Bureau 

Tamm~ Haar ,being first duly swam, deposes and says: That 

she is the principaclerk of The Billings Gazette, a newspaper of general circulation published daily in the City of Billings, in the County of Yellowstone, State 

of Montana, and has charge of the Advertisements thereof. 

~o\\ t) That the: S legal regarding: 

ARM 50 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~ below if certificatation 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 of the minimum rate charged any other 

advertiser for publication of advertisement, set in the same size type and published for the same number of insertions. I further 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 1arnlll~ , 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 

1 
dl Cascade CltV-County Health Department 115 4th Street South 

Great Falls, Montana 59401 

e) Custer County Sanitarian 

Custer County Courthouse 

1010 Main Street 

Miles City, Montana 59301 

6) The Department will 

make reasonable accommo­ dations for persons with 

disabilities who wish to par­ ticipate In thiS hearing or need.an alternative accessible format Of this notice. 

Please contact the Board 

Secreta 4(6) 444'2544, or email lat­ er than er 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. Written data. 

views or arguments may alSo be submitted to Board 

secretary. Board Of Environmental 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 

berftmt goy, no later than 

5:00 p.m., October 11, 2005. 

TO be guaranteed conSideration, written comments 

must be pOstmarked on or before that date. 8-28-05 

***** AFFIDAVIT OF PUBLICATION ***** 

The BILLINGS GAZETTE 


401 N. 28th 


Billings, MT 59101 


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 of general circulation of 

the County of Cascade, State of Montana, and that the deponent is the principal clerk 

of said 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 year first 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 OF PUBLICATION 

STATE OF MONTANA, 

County of Lewis & 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 , • . , Millis CitY 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) j tnter,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,m4ents !);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 

making , . II 1 PUblicatiOn(S)'~I}'-h £1. 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 of Publication 

STATE OF MONTANA 


County of Custer 


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 of general 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 of Montana, 

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 Matcalr Building,' 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) The Boan:l wlH 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.!MOIymirs and opera· 

tors 01 oil an,<;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 althe proposed IirnEm,dmenta 

and new air' quality rules on the 

Intemet' at ' 

<!Jtllrllwww deq state mt,usldirileg 

aVh...riog asp> or al !ha followlng 

J locations: 

VsEP 062005 . . tal Quality MT Dept Env\ron~n D\tison .' 8. Compliance \ 

Pennltling M nagement Bureau 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 Wesl Alder 

'Missoula, Montana 

'59802 . 

I

i. Cascade City·County Health 

l	 Department 

115 4th Sireel SoUth 

Great Falls, 

MOnlana 5940i . ,,-C 

Cu~er County Sanitarian ~,: .. :_ 

. .' Cusler ';",/;:.gunty , 

I ~. Coutttlouse·"~j.-'$(~{"': 1 

il010Mai~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:thls 1iearing 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) 444-43861 or submft· 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 

Put us to work for 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 


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 A TIACHED. WAS PRINTED AND PUBLISHED IN THE REGULAR AND ENTIRE ISSUE OF SAID <i g . 

PUBLIC NOTICE 

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. PERT AINING 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: ____....-:'--'-_ _=_ 0-,,-\.....:Q....J",---,:::......=-c

KalaRa J, Vanleuven 

PRINTED NAME 

PAGE 1 

OWNERS 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 

PUT US TO WORK FOR 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· FORE THAT DATE. #26&0199. AUGUST 2X, Z(x)5. 

* * * PROOF OF PUBLICATION* * * 

MISSOULIAN CLASSIFIED 

PUT US TO WORK FOR 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 Brian Schweitzer. Governor 

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

August 11, 2005 

Dear Interested Party 1APCAC Member 1Repository: 

RE: 	 PUBLIC HEARINGS 

10/3/05 - Review of Air Quality Permit Applications; and 

1014/05 - Permitting Requirements for Oil & Gas Well Facilities 

I have attached the initial notice of the public hearing on the proposed amendment 

of ARM 17.8.759, relating to review of air quality pennit applications and 

extension ofthe public comment period for certain pennit applications. The 

Montana Department ofEnvironmental Quality will conduct a public hearing on 

October 3,2005, to receive comments regarding these proposed amendments. 

(., 	 I have also attached the initial notice of the public hearing on the proposed 

amendment ofARM 17.8.743 and the proposed adoption of new rules pertaining 

to pennitting of oil and gas well facilities. The Montana Department of 

Environmental Quality will conduct a public hearing on October 4, 2005, to 

receive comments regarding these proposed amendments and proposed new rules. 

If you have questions regarding these notices, please e-mail or call me at (406) 

444-9741. 

Sincerely, 

Brown 

Air Quality Specialist 

Air Resources Management Bureau 

Montana Department 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 17.8.744 L 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 


DON ALLEN 


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 COUNTY APC 


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 


MONT ANA REFINING CO 


1900 10TH ST NE 


GREAT FALLS, 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 


CoWLEY HAUGHEY HANSON 


TOOLE AND DIETRICH PLLP 


POBOX 797 


HELENA, MT 59624-0797 


LAURA ACKERMANN 


DECKER COAL COMPANY 


POBOX 12 


DECKER, MT 59025-0012 


RON ANDERSON 


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 


GREG BROWN 


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 


BRIAN K CLIFTON M.S. RS. 


CITY COUNTY HEALTH DEPT 


115 4TH ST SOUTH 


GREAT FALLS, MT 59405 


BILL COURTNEY 


QUANECOLLC 


POBOX 7370 


SHERIDAN, WY 82801 


DON DAY 


STIMSON LUMBER CO 


875HWY2 S 


LIBBY, MT 59923 


JOE ALINE 


SHUMAKER TRUCKING 


PO BOX 1279 


GREAT FALLS, MT 59403 


TINA ANDERSON 


DEQ AIR QUALITY DIVISION 


1866 SOUTH SHERIDAN AVE 


SHERIDAN, WY 82801 


TIM BLUME 


US ARMY ENVIRONMENTAL 


729-19TH ST 4TH FLR RM 427 


DENVER, CO 80202-2500 


CHIP BREMER 


CITE 


PO BOX 12763 


RTP, NC 27709 


JOHN BRUEGGEMAN 


STATE REPRESENTATNE 


321 LAKEVIEW DR 


POLSON, MT 59860-9317 


WANDA BURGET 


POWDER RIVER COAL CO 


CALLER BOX 3034 


GILLETTE, WY 82717 


BRUCE CLARK 


GENESIS INC 


PO BOX 1660 


TROY, MT 59935 


DALE COCKRELL 


CHRISTENSEN MOORE 


COCKRELL 


PO BOX 7370 


KALISPELL, MT 59904-0370 


FRANK CROWLEY 


POWER BLOCK BLDG STE 300 


HELENA, MT 59624-1185 


BARB DOWSKI 


REG EH & 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 DWORAK DVM 


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 


SHERIDAN MEMORIAL 


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 S LAST 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 BANDANA BLVD 


ST PAUL, MN 55108 


TODD EVERTS 


EQC 


STATE CAPITAL ROOM 106­

DEADHEAD 


ROBERT D FOOTE 


EXXON MOBIL CORP 


607 EXXONRD 


BILLINGS, MT 59101 


RONALD GEHRKE 


BIG SKY MINING CO 


PO BOX 97 


COLSTRIP, MT 59323 


ALEXANDRA GORMAN 


WOMEN'S VOICES FOR THE 


EARTH 


POBOX 8743 


MISSOULA, MT 59807-8743 


RALPH HAMLER 


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 HUHT ANEN 


ROCKY MOUNTAIN LABS 


903 S 4TH ST 


HAMILTON, MT 59840 


JOHN W DUNCAN 


RR #1 PO BOX 33 


JOPLIN, MT 59531 


.J 

ELLEN ENGSTEDT 


MONT ANA 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 


PO BOX 283 


BELT, MT 59412 


LEIF GRIFFIN 
 J

SMURFIT -STONE CONTAINER 


CORP 


PO BOX 4707 


MISSOULA, MT 59806 


WILLIAM HARBRECHT 


WESTERN ENERGY COMPANY 


PO BOX 99 


COLSTRIP, MT 59323 


MARTIN HESTMARK 


US EPA-REGION VIII 8ENF T 


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 

ENVIRONMENTAL HEALTH 

Q~8 RIMROCK RD .. LlNGS, MT 59106 


DICK JUNTUNEN 


RESOURCE MGMT 


ASSOCIATES 


259 MCCLELLAN CREEK RD 


CLANCY, MT 59634 


JAKE KAMMERER R.S. 


RAVALLICOUNTYENV 


HEALTH 


215 S 4TH ST STE D 


HAMILTON, MT 59840 


PAT KIMMET 


CENEX 


PO BOX 909 


LAUREL, MT 59044-0909 


CHRIS KOLSTAD 


APCAC BOARD MEMBER 


HC74BOX49 


eDGER, MT 59456 


MITCHELL LEU 


PLUM CREEK - APCAC 


MEMBER 


PO BOX 160 


COLUMBIA FALLS, MT 59912 


CHERRY LONEY 


CASCADE CO HEALTH DEPT -­

REPOSITORY 


115 4TH ST S 


GREAT FALLS, MT 59401-3618 


MICHAEL MACHLER 


APCAC BOARD MEMBER 


771 TOPAZ AVE 


BILLlNGS, MT 59105 


DON MAY 


MAXIM TECHNOLOGIES lNC 


POBOX 2730 


MISSOULA, MT 59801 


~MCKENNA 

ETS lNTERNATIONAL 


1401 MUNICIPAL RD NW 


ROANOKE, V A 24012-1309 


DEAN JOHNSON 


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 S PACIFIC ST 


DILLON, MT 59725-2799 


LION TECHNOLOGIES lNC 


ATTN LIBRARY 


POBOX 700 


LAP A YETTE, NJ 07848 


RICHARD LONG 


US EPA REGION VIn 8P AR 


999 18TH ST STE 300 


DENVER, CO 80202-2405 


DEB MADISON 


FORT PECK TRIBES 


BOX 1027 


POPLAR, MT 59255 


GABRIEL MCAULIFFE 


SIERRA RESEARCH 


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 


CAL VlN KIDNEY 


WELLS FARGO 


877 W MAIN ST 5TH FLOOR 


BOISE, ID 83702 


JERRY D. KNUTSON 


WEST TECH SUPPLY & 


SERVICES 


PO BOX 80711 


BILLINGS, MT 59108 


CATHY LAUGHNER 


BROWNlNG KALECZYC 


POBOX 1697 


HELENA, MT 59624 


CARRIE LLOYD 


VETERANSAPFAIRS 


WILLIAMS ST 


FORT HARRISON, MT 59636 


MICHAEL J LUCIANO 


FARM HARVESTlNG OF 


EUREKA 


POBOX 1050 


EUREKA,MT 59917 


WAYNEMARCHWICK 


CENTRAL MT HEALTH DEPT 


305 W WATSON ST 


LEWISTOWN, MT 59457 


BRIAN MCHUGH 


MAXIM TECHNOLOGIES lNC 


618 S 25TH ST 


BILLlNGS, MT 59107 


WALTERLMCNUTT 


AG EQUIPMENT SALES 


110 12TH AVE SW 


SIDNEY, MT 59270 

ARNIE A MOHL 


A-I PAVING 


3131 HWY2E 


KALISPELL, MT 59901 


DARREL MYRAN 


WESTMORELAND RESOURCES 


INC 


BOX 449 


HARDIN,MT 59034 


DAVE NOELL 


APCAC BOARD MEMBER 


1318 BABCOCK CIRCLE 


BILLINGS, MT 59105 


TRACYOPP 


STONE ENERGY CORP 


950 17TH ST STB 2600 


DENVER, CO 80238 


JIM PARKER 


PPLMT 


1 WAREHOUSE RD 


COLSTRIP, MT 59323 


STEVE PILCHER 


POBOX 1715 


HELENA, MT 59624-1715 


DONQUANDER 


HOLLAND AND HART 


401 N 31ST ST STE 1500 


BILLINGS, MT 59101 


JEREMY RHODES 


341ST CES/CEV 


39 78TH STN 


MALMSTRM AFB, MT 59402­

HAL ROBBINS 


BISON ENGINEERING INC 


140011 TH AVE STE 3 


HELENA, MT 59601-4516 


PAT SAINDON 

PLANNING DNISION 

MT DOT - ENVIRONMENTAL ­

DEADHEAD 

HELENA,MT 

BOB MONTGOMERY 


WESTERN ENERGY CO 


POBOX99 


COLSTRIP, MT 59323 


ANNISSA NELSON 


TANKNOLOGY 


470 SCHROCK RD STE L 


COLUMBUS, OH 43229 


ANN O'HAGAN 


WCECINC 


1030 SOUTH AVE W 


MISSOULA, MT 59801 


OWEN ORNDORFF 


YELP 


1087 W RIVER ST STE 200 


BOISE, ID 83702 


DICK PAULSEN 


AMERICAN LUNG ASSN 


825 HELENA AVE 


HELENA, MT 59601 


ELLEN PORTER 


ROSEBURG FOREST 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 OF PLANT SERVICES 


1101 26TH ST S 


GREAT FALLS, MT 59405 


TIM MULLIGAN 


RISK MANAGEMENT DN 


POBOX 3767 


BUTTE, MT 59702 
 ,~ 

ALLEN NIPPLE 


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 


MIKE PHILBIN 


BLM 


5001 SOUTHGATE DR 


BILLINGS, MT 59101 


DAN POWERS J 

BUTTE/SB HEALTH DEPT 


25 WFRONTST 


BUTTE, MT 59701 


JIM RAMAKER 


POBOX 760 


CHOTEAU, MT 59422 


MIKE RINALDI RS 


ROSEBUD COUNTY 


SANITARIAN 


251 NO 17TH 


FORSYTH, MT 59327 


JOE RUSSELL 


FLATHEAD CTY HEALTH DEPT 


1035 1ST AVE W 


KALISPELL, MT 59901 


CURT SCRIBNER 

YELLOWSTONE ENERGY LT..J 

2215 FRONTAGE RD 


BILLINGS, MT 59101-7307 


7536 
WADE SELLERS JONSESSO PETE SIMONICH 

SUPERIOR ENTERPRISES BUTTE/SIL VER BOW PLAN COLSTRIP STEAM ELECTRIC 

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 SNOW RS 

WESTMORELAND RESOURCES MONT ANA DAKOTA UTILITIES DAWSON CITY SAl,{IT ARIAN 

PO BOX 449 400N 4THST 207 WBELL 

fLA}UD~,MT 59034 BISMARCK, ND 58501 GLENDIVE, MT 59330 

RICH SOUTHWICK PATRICIA SPENCER LYNNSTABENFELDT 

APCAC BOARD MEMBER ENVIRONMENT REPORTER MULTISTATE ASSOCIATES ~C 

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

TOWNSEND, MT 59644 WASH~GTON DC, DC 20037 ALEXANDRIA, VA 22314 

FRED STEELE RICK STEFANIC JODEESTE~ 

CSKT TRIBAL HEALTH BUREAU OF INDIAN AFFAIRS WELLS FARGO 


BOX 880 316 N 26TH ST 175 N 27 ST 


ST IGNATIUS, MT 59865 BILLINGS, MT 59101 BILLINGS, MT 59101 


STEPHEN BLANKENSHIP FORD SAM STEPHENSON STAN STERNBERG 

925 L ST STE 390 ARCO MT DOT - ENVIRONMENTAL 

SACRANIENTO, CA 95814 317 ANACONDA AVE MT DOT - ENVIRONMENTAL ­

BUTTE, MT 59701 DEADHEAD (; HELENA,MT 

FRED STIERS LARRY SVOBODA LILA TAYLOR 

CONOCO~C US EPA REGION VID-8P-AR BOX 595 KIRLEY RT 

PO BOX 30198 999 18TH ST STE 300 BUSBY, MT 59016 

BILL~GS, MT 59107-0198 DENVER, CO 80202-2405 

SHANNON THERRIAULT RAY TILMAN STEVE TURKIEWICZ 


CITY COUNTY HEALTH DEPT MONT ANA RESOURCES MONTANA AUTO DEALERS 


301 WALDER ST 600 SHIELDS AVE ASSN 


MISSOULA, MT 59802 BUTTE, MT 59701 501 N SANDERS ST 


HELENA, MT 59601 

BARR! TW ARDOSKI TONY TWEEDALE DARYLURAN 

MAXIM TECHNOLOGIES ~C MTCHEER WILLISTON BAS~ INST PIPEL 

POBOX 2730 404 E SPRUCE ST APT 2 PO BOX 131 

MISSOULA, MT 59806 MISSOULA, MT 59802-4655 GLENDIVE, MT 59330 

CALLIE VIDETICH STEVE WADE GERALD WAGNER 

US EPA REGION VIII-8P-AR BROWNING KALECZYC BERRY BLACKFEET TRIBAL 

999 18TH ST STE 300 & HOVEN PO BOX 2029 

DENVER, CO 80202-2466 PO BOX 1697 BROWN~G,MT 59417 

HELENA, MT 59624 

,"SYWAHL SCOTT WALKER .KEV~ K. WALSH 

EPA YELLOWSTONE CITY COUNTY ENVIRONMENTAL 

EPA-DEADHEAD 510 N BROADWAY CONSULTING 

BILL~GS, MT 59101 451 FREEDOM AVE 

BILL~GS, MT 59105 
JOHN WARDELL 

EPA 

EPA-DEADHEAD 

JIM ZABROCKl 


CUSTER CO SANITARIAN'S 


OFFICE -- REPOSITORY 


COURTHOUSE 


MILES CITY, MT 59301 


CENTURY COMPANIES INC 


BOX 739 


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 


FORT WORTH, TX 76102 


LARRYZINK 


MT SULPHUR & CHEMICAL CO 


PO BOX 31118 


BILLINGS, MT 59107 


FARMERS UNION OIL CO 


1000 SMELTER AVE 


BLACK EAGLE, Mr 59414 


MONTANA POWER CO 


PO BOX 38 


COLSTRIP, MT 59323 


STEVE D WRIGHT 

COLUMBIA FALLS ALUMINUM 

2000 ALUMINUM DR 

COLUMBIA FALLS, MT 5991~ 

CARBON COUNTY HEALTH 


DEPT 


BOX 466 


RED LODGE, MT 59068 


MONTANA MOTOR CARRIERS 


501 N. SANDERS ST #201 


HELENA, MT 59601-4552 


NORTHERN PLAINS RESOURCE 


COUNCIL 


2401 MONTANA AVE #200 


BILLINGS, MT 59101-2336 


Last edited by Barb, 8/1/05 
Montana DEQ - Legal Unit - Rule Notices With Hearing Page 1 of2 

Administrative Rules of Montana 

Notices of Proposed Rulemaking with Hearing 

... j 

Public Hearing Date Where Comment Due Date Purpose 

10:30 a.m. Room III, 1520 East 5:00 p.m. 

October 4, 2005 Sixth Avenue, Helena, October 11, 2005 

Montana 

1:30 p.m. Room 111, 1520 East 5:00 p.m. Proposed Amendment of 

October 3, 2005 Sixth Avenue, Helena, October 10, 2005 ARM 17.8.759 !Air 

Montana Quality - Reyjew of 

PennitApplif:atiQl1L 

MAR NoticeNQ. 17-228) 

10:30 a.m. Room 111, 1520 East 5:00p.m. 

August 3, 2005 Sixth A venue, Helena, August 10, 2005 

Montana 

1:30 p.m. Room 111, 1520 East 5:00 p.m. 

March 23,2005 Sixth A venue, 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 

1:30 p.m. Room 111, 1520 East 5:00p.m. 

January 14,2005 Sixth A venue, 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) 

Amended Notice of 

Proposed Amendment 

(Water Quality ­

Concentrated Animal 

Feeding ~erationsMAR Notice No. 17-227) 

Proposed Amendment of 

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 of the 

Hazardous Waste 

Progrnm - MAR Notice 

No. 17-224) 

Proposed Amendment of 

ARM 17.38.106 (Public 

Water SUllllly - Fees for 

Review of Public Water 

and Sewage System 

Plans and S~£i:fications 

- MAR NQticeNo.R 

223) 

8:30 a.m. Room 111, 1520 East 5:00p.m. Proposed Amendment of

January 14,2005 Sixth Avenue, Helena, February 4, 2005 ARM 17.30.1301,1304, 

Montana 1310, etc. (Water Quality 

- Concentrated Animal 

Feeding Qperations 

http://www.deq.state.mt.us/dirllegal/hearing.asp 8/4/2005

c 
• :If!"" 

Montana Department of 

1ENvIR(())NMENTALQUJS................TY Brian Schweitzer, 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 & Assistance Division • Remediation Division 
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 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 Brian Schweitzer, 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 of air 

quality rule ARM 17.8.743, and proposed new rules I through VI, 

pertaining to the permitting ofoil and gas well facilities. 

DATE: 	 September 29,2005 

, 


HB 521 REVIEW 


(Comparing Stringency of State and Local Rules 


to Any Comparable Federal Regulations or Guidelines) 


Sections 75-2-111 and 207, MCA, codify the air quality provisions ofHouse Bill 521, 

from the 1995 legislative session, by requiring the Board of Environmental Review to 

make certain written findings after a public hearing and public comment, prior to adopting 

a rule to implement the Clean Air Act ofMontana that is more stringent than a comparable 

federal regulation or guideline. 

In this proceeding, the Board is proposing to Amend ARM 17.8.743 and adopt New Rules 

I through VI, which provide generally that: 

• 	 The owner or operator of an oil and gas well facility for which a Montana air 

quality permit is required may wait until January 3, 2006, or until 60 days after 

the initial well completion date, whichever is later, before SUbmitting an 

application for the permit. 

• 	 The owner or operator may operate the oil or gas well facility until the 

Department's decision on the application is [mal, as long as the requirements of 

the New Rules are complied with. 

• 	 The owner or operator must install certain emission control equipment and 

comply with certain air pollution control practices for oil and gas wellhead 

equipment and oil and condensate storage tanks with a potential to emit volatile 

organic compound (VOC) vapors greater than 500 British thermal units per 

standard cubic foot (Btu/sct). 

Enforcement Division • Permitting 8< Compliance Division • Planning, Prevention 8< Alisistance Division • Remediation Division 
• The owner or operator must comply with certain restrictions in loading 

hydrocarbon liquids into transport vehicles, particularly ifVOC vapors exceed 

500 Btulscf, and with certain limitations on stationary internal combustion 

engines greater than 85 brake horsepower (BHP). 

• Oil and gas well facility operations must comply with the ambient air quality 

standards for hydrogen sulfide and other criteria pollutants. 

• Owners or operators ofoil and gas well facilities must inspect, repair, and keep 

certain records concerning those facilities. 

Federal regulations do not govern minor sources of emissions, but only major sources. 

The definition of "major source" found in 40 CFR 70.2 includes a provision forbidding the 

emissions of hazardous air pollutants (HAPs) from individual oil and gas wells to be 

aggregated when determining whether a major source title V permit will be required: 

[E]missions from any oil or gas exploration or production well (with its associated 

equipment) and emissions from any pipeline compressor or pump station shall not 

be aggregated with emissions from other similar units, whether or not such units 

are in a contiguous area or under common control, to determine whether such units 

or stations are major sources .... 40 CFR 70.2. 

Because federal regulations do not allow the aggregation of emissions from oil and gas 

wells when determining if the 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 

emissions by itself to require such a permit. Ifno title V permit is required, then the state 

rule and federal regulations are not comparable. 

Federal regulations for major sources ofnon-HAPs emissions, however, do not forbid 

aggregating oil and gas wells that are in a contiguous area or under common ownership. In 

that case, the federal regulation and the state rule are comparable and neither is more 

stringent than the other. 

It should be noted that the proposed New Rules include a grace period ofsixty days after 

the initial completion date before the application for an air quality permit must be 

submitted to the Department, which is different than the federal regulations for permitting 

oil and gas well facilities. Similarly, the proposed New Rules allow the oil and gas well 

facility to be operated without a permit until the Department makes a decision on the 

permit application, which also is not provided for in federal regulations. In neither of these 

differences is the state rule more stringent than the federal regulation. 

The New Rules do require the owner or operator to comply with certain emission control 

requirements during the grace period between initial well completion and the Department's 

permitting decision, while federal regulations do not require emission controls when a 

permit is not required. However, ifthe well never produces enough emissions to require a 

permit (i.e., if the well is dry or simply does not produce enough product), there will be no 

violation ifthe emission control requirements are not implemented. Ifthe well ultimately 

does require a permit, then it will be required to comply with the emission control 

..'\ 

"'fIIfIIIII 

2 
requirements anyway. In either case, the New Rules are not more stringent than the federal 

regulations. 

In sum, the proposed amendment and New Rules are not more stringent than any 

comparable federal regulations. 

HB 311 REVIEW 

(Assessing Impact on Private 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 or damaging 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 of private property in violation of the United States or Montana 

constitution. 

, 

Section 2-10-104, MCA, requires the Montana Attorney General to develop guidelines, 

including a checklist, to assist agencies in determining whether an agency action has taking 

or damaging 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. The proposed rule amendments would not: 

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

property; 

* 	 deprive any owner of all economically viable uses of private property; 

* 	 deny a fundamental attribute of private property ownership; 

* 	 require a private property owner to dedicate a portion of property or grant 

an easement; 

* 	 have a severe impact on the value of private property; or 

* 	 damage private property by causing a physical disturbance with respect to 

the property in excess ofthat sustained by the public 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 of Air Quality Rule ARM 17.8.743 and Adoption ofNew 


Rules I through VI 


MAR Notice No. 17-229 


PRIVATE PROPERTY ASSESSMENT ACT CHECKLIST 


DOES THE PROPOSED AGENCY ACTION HAVE TAKING OR DAMAGING IMPLICATIONS 


UNDER THE PRIVATE PROPERTY ASSESSMENT ACT? 


YES NO 

1. Does the action pertain to land or water management or environmental regulation 

affecting :grivate real2ropertyor water riZhts? 

X 

2. Does the action result in either a permanent or indefinite physical occupation of 

ppvate pro:gerty? 

X 

X 3. Does the action deErive the owner of all economically viable uses ofthe property? 

4. Does the action deny a fundamental attribute of ownership? (Ex.: right to exclude 

others; right to dispose of the property) 

X 

5. Does the action require a property owner to dedicate a portion ofproperty or to grant 

an easement? [If the answer is NO, skip questions 5a and 5b and continue with question 

6.] 

5a. Is there a reasonable, specific connection between the government requirement and 

legitimate state interests? 

5b. Is the government requirement roughly proportional to the impact ofthe proposed 

use ofthe property? 

X 

6. Does the action have a severe impact on the value ofthe property? (Consider 

economic impact, investment-backed expectations, and the character of the government 

X 

I action.) 

7. Does the action damage the property by causing some physical disturbance with 

respect to the property in excess of that sustained by the public generally? [If the answer 

X 

~""",-,a. Signature of Reviewer ~ 

I is NO, do not answer questions 7a - 7c.] 


7a. Is the impact of government action direct, Eeculiar, and significant? , 


7b. Has government action resulted in the property becoming practically inaccessible, 


waterlogged, or flooded? 


7c. Has government action diminished property values by more than 30% and 


necessitated the physical taking of adjacent property or property across a public way 


from the property in question? 


X Taking or damaging implications? (Taking or damaging implications exist if YES is 

checked in response to question 1 and also to anyone or more ofthe following questions: 

I 2,3,4,6, 7a, 7b, or 7c; or ifNO is checked in response to question 5a or 5b. 
Page 1 ofl 

, 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 effort to 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 of these clarifications is intended to waive any of the substantive 

requirements of the 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 behalf of Encore 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 PETROLEUM ASSOCIATION 

.." 	

~.-V'~---------------- PO Box 1186 Helena, MT 59624

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 


Exxon Mobil 


Pat Callahan 


NorthWestern Energy 


Mark Carter 

I"'fore Operating 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 


Terry Wisner 

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 of ARM 17.8.743 

Dear Ms. Wittenberg: 

The Montana Petroleum Association appreciates the opportunity to offer comment on 

the amendment to ARM 17.8.743. These amendments allow the oil and gas industry 

to get new wells under production before securing an air quality pennit. This effort 

will allow our industry to have a more accurate evaluation ofthe well's potential 

emissions before a pennit is issued. We submit the following comments for 

consideration in this rulemaking: 

1. 	 There should be some language in the proposed rules that allows flexibility on 

behalf of the DEQ to deal with changes in operation before the final pennit is 

issued. It is our belief that DEQ has the authority to authorize such alternative 

methods at this time, but we feel it would be better if some authorization was 

contained within this administrative rule. We seek to include a provision in 

the pennit application which authorizes operational flexibility to enable 

control technology methods to be modified without prior notice to the DEQ, 

provided that such modifications result in equally effective emissions control. 

The operational flexibility is necessary to address the types of activities 

occurring frequently in the early development stages ofoil and gas wellsites. 

2. 	 MP A would like to propose two modifications to proposed Rule n. Both 

modifications are for the purpose ofmaking the proposed new subchapter 

consistent with current pre-construction permitting requirements found in subchapter 7, 8, 9 and 10. The two suggestions are: 

A. 	Delete the following phrase (represented as a 'strikeout') in the first 

sentence ofRule II (1): "The requirements ofthis subchapter apply ... 

more than 25 tons/year (TPY) of any airborne pollutant that is regulated 

, 

under this chapter, 10 TPY or more ofinei'/idual hazareoas air pollutant 

(HAP), or 25 TPY or more of any combiBations ofHAPs." 

B. 	 Delete the last sentence (represented as a 'strikeout') in the last sentence 

ofRule n. 

For purposes of this rule, PTE is calcalatee '...,ithout regare to any air 

pollution control equipment usee at the facility. 
Page 2 

Montana Petroleum Association 

10111105 

J 

These two suggestions will correct the rule by making the applicability requirements consistent 

with the permit applicability requirements found in ARi\117 .8. 740 et. seq. Otherwise, the rules 

as proposed are more stringent than facilities of equivalent (emission) size. As proposed, the rule 

imposes requirements on oil and gas well facilities that would otherwise not be appropriate or 

legitimate for other facilities with the same emissions. 

3. 	 We are concerned with New Rule III (f) and this that the requirement on 85HP engines is too 


restrictive. The provisions are established to control lean bum (maybe a better term is Clean 


Bum) engines with oxidation catalysis at anything above 85 HP. By design lean bum (Clean 


Bum) engines have low emissions of air contaminates. 


Lean Bum engines typically emit 2 gmlHP*Hr NOx and 2 to 3 gm!HP*Hr CO. The addition of 

an oxidation catalysis will not reduce the emissions ofNOx. It will reduce CO, but at what cost 

to the operator. MPA asserts that the cost is much greater than the benefit ofreduced CO 

emissions. Consider the example below: 

Mathematical Example: 

At 85 HP 

85 Hp * 3 gmlHP*HR * 0.00965 (conversion factor) = 2.46 TN CO 

Additional cost $ OlTon ofCO reduced 

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. We have offered another mathematical example that would show what the HP would 

have to be on a lean bum engine to reach the 15 TN controL Please consider the following: 

To get to the 15 TIY trigger for control 

At 2 gmIHP*Hr CO 

15 TN I (2 ~*HR * 0.00965 (conversion factor)) =777 Hp 

At 3 gmIHP*Hr CO 

15 TN 1(3 gmIHP*HR * 0.00965 (conversion factor)) = 518 Hp 

The Montana Petroleum Association is eager to work with the DEQ to address these issues. Again, 

MPA greatly appreciates your efforts and we look forward to working with you as we develop 

Montana's vast resOUrces. 

Kind Regards, 

David A. Galt 

David A. Galt 

Executive Director 

Montana Petroleum Association 
Comments on the amendment to ARM 17.8.743 	 Page 1 of 1 

Brown, Jan 

From: Wittenberg, Joyce on behalf of 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 of the 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 per Year the owner or operator of an 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 per year is meant as a starting point for discussion and the VOC 

content in excess of 10% by weight 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. If you need further information. please feel 

free to contact me via email or at 405-228-8397. 

Sincerely 

Scott Wallace 

Devon Energy 

10/1712005 


c 
14'00 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 control field. 

A review 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 itself or 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 of the 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' 

of sources. 

An Employee Ovvned Company 
I 

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 determine the 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 of this subchapter apply . .. more than .25 tons/year 

(TPY) of any airborne pollutant that is regulated under this chapter,-4f) 

. TPY or more ohndi~~dual hazardousaJr poltutant (HAP), or 25 TP¥ or 

more 01 any oombinatioRs of HA~. " 

2. Delete the last sentence (represented as a 'strikeout') of Rule II. 

Por purposes of this 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 meaning provided in 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 
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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 

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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 
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5 . At the hearing the following people provided 

comments: Mr. David Galt from the Montana Petroleum 

Marketers Associationl 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 

Quanderl 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 Quanderl 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 

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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 
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~ 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 5 

TRANSCRIPT OF PROCEEDINGS 

Page 1 

BEFORE THE BOARD OF ENVIRONMENTAL REVIEW 

2 OF THE STATE OF MONTANA

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 COURT REPORTING 

(406) 443-2010 
TRANSCRIPT 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 

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LESOFSKI & WALSTAD COURT REPORTING 

(406) 443-2010 

TRANSCRIPT OF PROCEEDINGS 


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Page 3 Page 5

~ 1 or amend a rule, or a joint resolution reconunending 

taken: 

The following proceedings were had and testimony 

2 that an agency adopt, amend or repeal a rule. 

3 ********* 3 "The interim committees and the EQC welcome 

4 4 comments and invite members of the public to appear 

5 PRESIDING OFFICER: This hearing is 5 before them or to send written statements in order to 

6 called to order. Let the record show that it is 6 bring to their attention any difficulties with the 

7 10:33 a.m. on October 4,2005. This hearing is taking 7 existing or proposed rules. The mailing address is 

8 place in Room 111 ofthe Metcalf Building on Sixth 8 P.O. Box 201706, Helena, Montana 59620." And that's 

9 Avenue, Helena, Montana. This is the time and place 9 the end of that Notice of Function ofAdministrative 

10 set for the public hearing in the matter ofthe 10 Rule Review Committee. 


11 amendment of ARM 17.8.743 pertaining to air quality 
 11 Montana Code Annotated, another section that 

12 permits, when required, and adoption ofnew rules I 12 I'll go over here for purposes of compliance, 


13 through VI pertaining to oil and gas well facilities. 
 l3 2-4-302(2)(a), requires each agency, which includes 

14 My name is Katherine Orr. I am an assistant 14 boards, to create and maintain a list of interested 

15 attorney general for the State ofMontana. I've been 15 persons and the rulemaking subject or subjects in which 

16 assigned to be the hearing officer for this hearing. 16 each person on the list is interested. A person who 

17 I'm presiding over this public hearing. 17 submits a written comment or attends a hearing 

18 Copies of the public hearing on the proposed 18 regarding proposed agency rulemaking must be informed 

19 rulemaking are available on the table near the door for 19 of the list by the agency. 


20 anyone who has not received a copy. Anyone who wants 
 20 The Department of Environmental Quality 

21 to make a statement or submit written materials at this 21 maintains lists of persons interested in various areas 

22 hearing should fill out a Notice to Presiding Officer 22 ofrulemaking conducted by the Department and by the 

23 form, which is there by the door, and give it to me 23 Board of Environmental Review so that the Department 

I 24 before he or she speaks. The Notice to Presiding 24 can provide these persons with notice ofproposed . i 25 Officer forms are at the back of the room, as you can 25 rulemaking actions. 

Page 4 Page 6 i J4~-J. see. 1 On the table near the door are forms for 

2 Montana Code Annotated 2-4-302(7)(a) requires 2 interested persons to designate their areas ofinterest 

3 presiding officers at rule hearings to read the Notice 3 in rulemaking so the Department can notify them of 

4 ofFunctions of the Administrative Rule Review 4 proposed rulemaking actions in their areas of 

5 Committee. I am actually required to read this notice 5 interest. If you would like to be placed 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 of the forms and leave it on the table. 


8 "Administrative rule review is a function of 
 8 Notice of this hearing was contained in the 

9 interim committees and the Environmental Quality 9 Montana Administrative Register, Notice No. 17-229, 

10 Council. These interim committees and the EQC have 10 published on August 11,2005, in Issue No. 15 at page 

11 administrative rule review, program evaluation and 11 1479. The range ofpages for that particular issue are 

12 monitoring functions for executive branch agencies and 12 pages 1458 through 1531. The Notice stated that on 

13 the entities attached to agencies for administrative 13 October 4th at 10:30 in this location, a public hearing .J 14 purposes." In this case, the EQC has those functions 14 would be held to consider the proposed amendment and 

15 for the Department of Environmental Quality and for the 15 the new rules. The Notice ofhearing stated that 


16 Board ofEnvironmental Review. 
 16 interested persons could submit their data, views or 

17 "These interim committees and the EQC have 17 arguments either orally or in writing at this hearing. 

18 the authority to make recommendations to an agency 18 and that is what we are proposing to do today. 


19 regarding the adoption, amendment or repeal of a rule, 
 19 This hearing will close today, but comments 

20 or to request that the agency prepare a statement of 20 can be submitted in writing up to October 11 th of2005 

21 the estimated economic impact of a proposal. They also 21 by submitting those to the board secretary, Joyce 

22 may poll the members of the legislature to determine if 22 Wittenberg. If anyone is interested, I can provide her 

23 a proposed rule is consistent with the intent of the 23 address to you today. 

24 legislature or, during a legislative session, introduce 24 I will summarize the Notice, and I can see 

25 a bill repealing a rule or directing an agency to adopt 25 that the Department is here today to also do that, so 

.P",::"" ---~- .1'1

.) 

·w 3 (Pages 3 to 6) 

LESOFSKI & WALSTAD COURT REPORTING 

(406) 443-2010 
TRANSCRIPT OF PROCEEDINGS 

Page 7 

1 my summary will be brief. In the Notice, the Board of 

2 Environmental Review is proposing to adopt and amend 

3 air quality rules to allow the owner or operator of an 

4 oil and gas well facility to operate under different 

5 conditions, under different emissions rules, and with 

6 different timing requirements for obtaining a permit. 

7 The order ofpresentation by persons making 

8 statements will be first the Department, which will 

9 have the opportunity to summarize or otherwise explain 

10 the proposed rulemaking and its reasons for the 

11 proposed rules and to offer any supporting information; 

12 then secondly we'll take testimony from proponents, 

13 that is, people who are in favor ofthe rulemaking; 

14 third, we'll take testimony from persons opposed to the 

15 rulemaking; and then fourth, from anyone who wishes to 

16 make any other statement on the record. 

17 Today we have Sherron Walstad from Lesofski & 

18 Walstad Reporting, so that should help us keep an 

19 intact record. I think the best thing would be to come 

20 forward, and as you come forward, provide to me the 

21 form that you've filled out, and this sounds like a lot 

22 of clerical work on your part, but it does help me to 

23 see your name and who you represent, and that way we 

24 have that in the record. 

25 So at this time I would like the Department 

Page 8 

1 to come forward and provide a summary ofthe rules and 

2 any other comments it wishes to make. 

3 MR. HOHN: For the record, my name is 

4 Brian Hohn, lead air quality specialist with the Air 

5 Resources Management Bureau ofthe Department of 

6 Environmental Quality. I have prepared written 

7 testimony that mirrors 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 with both the regulated community and U.S. 

12 Environmental Protection Agency, the Department chose 

13 not to change any ofthe proposed rules until formal 

14 comments have been received. 

15 The Department has decided to recommend these 

16 amended rules and proposed new rules to be adopted as 

17 proposed in the MAR notice. Thank you. 

18 PRESIDING OFFICER: Any other 

19 proponents? 

20 MR. GALT: Madam Hearing Officer, for the 

21 record, my name is Dave Galt, and I represent the 

22 Montana Petroleum Association. 


23 I filled out your form and stand here in 


24 support ofthese rules, but I want to make a caveat. 


25 There isn't a spot on the form to say "with a few 


'.,'.-<~<."~.' ~<"'-''''~ '.." 

4 (Pages 7 to 10) 

Page 9 ~ 

1 Z~ changes and fine-tuning we support these rules." 

2 We have members from the petroleum industry 

3 here today to give you some specifics, and we also want ~ " 

,

~, 4 to let you know that we will be submitting formal 

5 written comments before 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 their work. I understand 

9 their workload and I appreciate very much the attention 

10 to detail that they've given this issue. Thank you. 

11 PRESIDING OFFICER: Thank you very much, 

12 Dave. Other proponents? 

13 MR. WALLACE: For the record, my name is 

14 Scott Wallace. I'm here representing Devon Energy. I, 

15 too, would like to thank you all for the opportunity to 

16 work, or for the regulated community to work with the 

17 agency in coming up with rules that make more sense for 

18 all of us. 

19 My specific comment concerns new rule 

20 No. III, subsection (f) concerning lean burn engines 

21 and additional controls on those lean bum engines. 

22 Lean bum engines, by definition, are 

23 low-emitting engines, and we want to ensure that the 

24 controls that are put forth within this permit shield 

25 are actually the controls that would be required under 

Page 10 J: 

1 full permit review. We feel that an oxidation catalyst 

2 on engines as low as 85 horse power is a bit extreme, 

3 and we'd like to work with the agency in coming up with 

4 something that makes more sense. 

5 PRESIDING OFFICER: Thank you. Are there 

6 any other proponents? 

7 MR. MUNGAS: For the record, my name is 

8 Mike Mungas. I represent Nance Petroleum Corporation, 

9 and I, as well, wish to thank the Department for !; 

10 allowing us to work together in the new rulemaking I~ 

11 process. Thank you for letting me be here today to 

12 testify. 

13 I propose an additional amendment to 

14 rule No. III, specifically, which would allow owners 

15 and operators ofoil and gas facilities who do submit a 

16 permit application to allow us to apply for a variety 

17 of operating scenarios which would provide the same 

18 level of emissions controls as any best available 

19 control technology would provide. This would allow us ~ 20 greater flexibility to streamline our operations in the I,' 

21 interim period while the permit is being reviewed by ~ 22 the division. "; 

23 PRESIDING OFFICER: In this rulemaking j 

24 proceeding, I'm sure that most people are aware, any 

25 comments must be addressed individually in the final 

1 ' "'''',"' .~ " ....• ..,­

LESOFSKI & W ALST AD COURT REPORTING 

(406) 443-2010 
. J 

..'<~ J 

.J 

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TRANSCRIPT OF PROCEEDINGS 

Page II Page 13 

notice. So I don't know, have you talked with the 1 require -- it would pull me into this particular 

Department about your suggestion? 2 regulation, and it just seems to me as a matter of 

MR. MUNGAS: We plan on submitting 3 consistency between all sources that there's no need to 

detailed comments, written comments for this, and we 4 include the hazardous air pollutant, the 10/25 numbers 

will talk to the Department regarding the specific 5 that we're familiar with. It needs to be included 

nature of what we'd like. 6 within the applicability determination ofthe proposed 

PRESIDING OFFICER: All right. Thank 7 rule. 

you. Any other proposal? 8 Again, it just seems an unnecessary 

MR. ROBBINS: Good morning. My name is 9 requirement compared to what the other requirements are 

Hal Robbins. I'm with Bison Engineering. We have 10 for other facilities. 

offices here in Helena and Billings. I have a few 11 My last comment relates to the exact same 

comments, technical comments, related to the proposed 12 rule, in which it goes on at the very end and says, 

rules. 13 "For purposes ofthis rule, potential to emit is 

The first one is more or less a clarification 14 calculated without regard to any air application 

question or issue. Just to make sure I understand it, 15 control equipment used at the facility." I guess I do 

I'm asking it rhetorically, not necessarily asking for 16 not understand the necessity for that particular 

a response as we speak. It appears to me from a 17 sentence in that for anyone else looking at whether or 

reading ofthe proposed regulations that it refers to 18 not a preconstruction permit is required and what needs 

example in new rule II, it says, "requirements ofthe 19 to be done for that, air pollution control equipment 

subchapter apply to" etc. 20 is, under certain circumstances, allowed to be 

I assume that by this subchapter, we're 21 considered in a facility's potential to emit. I 

talking a new subchapter. I gleaned that to be the 22 understand the restrictions on that definition, but 

case, because in new rule I it talks about definitions, 23 nonetheless, a facility is entitled, again, with 

which I would presume would have modified subchapter 24 restrictions, to allow the use of air pollution control 

(7) to which the regulation eventually leads you back 25 equipment in that calculation. It seems to me there's 

Page 12 

1 no reason that that courtesy could not be extended to 

That being the case, I note one minor 2 these facilities as welL 

deficiency which I presume will be clarified. There is 3 I will be following up my oral testimony with 

no definition for potential to emit in the new 4 written testimony to clarity. I hope, some ofmy 

subchapter; and in checking with the regulations, there 5 positions. 

are definitions for potential to emit in subchapters 6 PRESIDING OFFICER: Thank you, Hal. Any 

(7), (8), (9), (10) and (12), but there is no 7 other proponents? 

definition for potential to emit in subchapter (1), 8 MR. QUANDER: Good morning. My name is 

which refers to all the others. 9 Donald Quander. I'm a resident ofBillings, Montana. 

My second comment is related to the 10 I'm an attorney with the law firm of Holland & Hart, 

applicability discussion in new rule II in which it 11 and I'm one of the counsel ofEncore Acquisitions 

talks about skipping over dates, etc., about sources 12 Company, and my comments this morning are on their 

that have the potential to emit 25 tons per year being 13 behalf. I believe, Ms. Orr, that I did pass up a sheet 

applicable, as well as sources that emit 10 tons per 14 earlier with my information to you. 

year or 25 tons per year of hazardous air pollutants. 15 PRESIDING OFFICER: Thank you. 


It seems to me in reviewing that requirement 
 16 MR. QUANDER: We also support, with some 

for the 10 and 25, it's unnecessarily restrictive, and 17 reservations about the stringency ofthe proposed rule, 

I use a simple example. If I were a new source and the 18 we support the overall effort and the rule, and we 

only air pollutant that I emitted was xylene, to pick a 19 appreciate the effort that DEQ has made to work with 

pollutant out ofthe air, and that pollutant had the 20 the parties to create a rule that is workable. So I 

potential to emit, say, 20 tons per year, in reviewing 21 generally endorse the comments that MPA Executive 

the regulations, I would note that I do not need a 22 Director Dave Galt and other industrial and producer 

preconstruction permit under subchapter (7) -- (8), 23 companies have offered previously. I think we're on 

(9), or (10), for that matter -- and yet if I were, on 24 the right track if we're going to be able to have a 

the other hand, an oil and gas well facility, I would 25 workable rule. 

LESOFSKI & WALSTAD COURT REPORTING 

(406) 443-2010 

I 

1 

Page 14 

5 (Pages 11 to 14) 
TRANSCRIPT OF PROCEEDINGS 

Page J5 Page 17 !,'~ ,

1 I would like to emphasize one element that 1 day that you can submit your written comments to Joyce ,,J !

2 was referred to earlier in testimony, and that is the 2 Wittenberg, and her address is here at the Department. 

3 need for flexibility and administration of the rule, 3 Let me just give it to you now, since there are so many 1 4 particularly with respect 4 here who are going to be providing written comments. , to changing production levels 

5 and operating circumstances, both in applying the 5 Joyce Wittenberg, she's secretary of the Board of 

6 requirements that are being established for operators 6 Environmental Review at the Metcalf Building, 1520 East 

7 while permit applications are pending and prior to the 7 Sixth Avenue, and that's P.O. Box 200901, Helena, 

8 time that final permits are approved, and also in the 8 Montana 59620-0901. She also has a fax number, and

9 final permits themselves. 9 that is (406) 444-4386. You can e-mail your comments 

10 As was indicated earlier, we would recommend 10 to her, and that would be ber@mt.gov. 

11 that this explicitly include alternative operating 11 Let me check in the Notice itself. I have a 

12 scenarios that could be applied under varying operating 12 discrepancy in my little script about the actual 

13 conditions, so long as the basic protections are being 13 submission date. 

14 maintained and emission requirements are being met. We 14 Yes, it's October 11th. All right. Thank 

15 think that DEQ may have that flexibility at present as 15 you very much for coming. 

16 a general matter, both in its administration of these 16 (The hearing concluded at 

17 rules while applications are pending and in the final 17 11:05 a.m.) 

18 rules - excuse me, in the final pennits, but we believe 18 ***********

19 there would be a benefit to clarifying or confirming 19 

20 that with additional language in the rule that makes 20 

21 clear that an applicant can include in its application 21 

22 proposed alternative means of complying with these 22 

23 requirements, especially, for example, if production is 23 

24 declining during the course of that period, the 24 

25 controls required may be different. 25 

Page 16 Page 18 I~ J; 

1 We may want to institute different operations 1 CER TIFICA TE 

2 to meet the standards, and we would like to be sure 2 STATE OF MONTANA ) 

3 

4 

5 

6 

that there's no question that DEQ may permit those 

sorts of alternative operating scenarios as part of the 

permit application process in that interim period, and 

then that it may take that into account and include 

3 

4 

5 

6 

; 

COUNTY OF LEWIS AND CLARK ) 

I, SHERRON K. WALSTAD, Professional Court 

Reporter, Notary Public in and for the County of Lewis 

and Clark, State of Montana, do hereby certify: 7 such flexibility in the permits that are finally 7 That the foregoing hearing was taken before me at 

8 

9 

issued. 

Again, our sense is that probably the 

8 

9 

the time and place herein named, that the hearing 

proceedings were reported and transcribed by me with a I]r~ 10 Department has that flexibility and authority, but we 10 computer-aided transcription system, and that the 

11 believe it would be useful to specifically say so, and 11 foregoing pages contain a true record of the 

12 

13 

14 

15 

we will plan on visiting further with the Department in 

the next few days, and with others, and providing 

written comments with specific suggestion and language 

that might accomplish that. Thank you. 

12 

13 

14 

15 

16 

proceedings to the best of my ability. 

IN WITNESS WHEREOF, I have hereunto set my 

hand and affixed my notarial seal this day 

2005. 

16 PRESIDING OFFICER: Thank you. Are there 17 

17 any other proponents who wish to come forward? Are 18 

18 there any opponents? Is there anyone who would like to 19 

19 come forward and just, as a neutral matter, say SHERRON K. WALSTAD 

20 anything about the new rules or the amendment? 20 Court Reporter-Notary Public 

21 

22 

23 

Since there is no one who wishes to come 

forward, I'm going to close the hearing. As I said 

earlier, the written comment period 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 

• ''''~' ". "'«$ .<,M<, «_.,_.,..<M'_<~"_. __.c"'· '<c.• ~." ••. " 

25 

'.~*.d ... . ,.<.~--, ._, .... ,­ J 

6 (Pages 15 to 18) 

LESOFSKI & WALSTAD COURT REPORTING 

(406) 443-2010 
TRANSCRIPT OF PROCEEDINGS 

Page 1 

course 15:24 emitted 12: 19 asking 11:16,16 checking 12:5 "' A 

chose 8:12 court 1:1718:4,20 emphasize 15: 1 assigned 3: 16 ,-«bility 18: 12 

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adopt 4:255:27:2 o 12:1013:1116:23 13:22 established 15:6 back 3:25 11 :25 adopted 8:16 

comments 5:46:198:2 definitions 11:23 12:6 estimated 4:21 basic 15: 13 adoption 1:63:124:19 8:7,9,149:5,6 10:25 Department 2:64: 15 evaluation 4: 11 beginning 1: 13 affixed 18:14 11:4,4,12,12 14:12 5:20,22,23 6:3,25 7:8 eventually 11 :25 behalf 14:13 fJ agencies 4:12,13 14:21 16:1417:1,4,9 7:258:5,10,12,159:7 everyone's 4:6 believe 14:13 15:18 i agency 2:64:18,20,25 exact 13: 11 

! 

Commission 18:20 10:9 11:2,5 16:10,12 16:11 5:2,13,18,198:12 Committee 4:55:10 17:2 example 11:1912:18 benefit 15:19 9:1710:3 committees 4:9,10,17 DEQ 14:1915:1516:3 15:23 ber@mt.gov 17: 10 air 1:5 3:117:38:4,4 5:3 designate 6:2 excuse 15:18 best 7:19 10:18 18:12 12:15,19,2013:4,14 community 8:119:16 detail 9:5,10 executive 4: 12 14:21

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branch 4:12 concerning 9:20 directing 4:25 amended 8:16 

amendment 1:4 3: 11 Brian 8:4 concerns 9:19 Director 14:22 F ~ f9:20 18:1 •

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~-- -..­ LESOFSKI & WALSTAD COURT REPORTING 

(406) 443-2010 
i 

TRANSCRIPT OF PROCEEDINGS 

Page 2 

following 3: 1 14:3 

foregoing 18:7,11 

form 3:237:21 8:23,25 

formal 8: 13 9:4 

forms 3:25 6:1,7 

forth 9:24 

forward 7:20,20 8: 1 

16: 17,19,22 

fourth 7:15 

full 10: 1 

function 4:8 5:9 

functions 4:4,12,14 

further 16: 12 

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5:176:8,13,15,17,19 

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18:7,8 

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LESOFSKI & W ALST AD COURT REPORTING 

(406) 443-2010 

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TRANSCRIPT OF PROCEEDINGS 


Page 3 

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LESOFSKI & WALSTAD COURT REPORTING 

(406) 443-2010 
TRANSCRIPT OF PROCEEDINGS 

Page 4 


43:7 

4th 1:13 6:13 

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LESOFSKI & WALSTAD COURT REPORTING 

(406) 443·2010 

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"I 
AGENDA 

BOARD OF ENVIRONMENTAL REVIEW 

THURSDAY & FRIDAY, DECEMBER 1 & 2 

.METCALF BUll,DlNG,CONFERENCE ROOM 111 

1520 EAST SIXTH AVENUE, 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 order they are scheduled. Persons with disabilities who need 

an accommodation in order to participate in this meeting. should contact the Board Secretary at (406) 444-2544. 

DECEMBER 1 

1:30 PM. 

I. CBM RULEMAKING HEARlNG 

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 for the coal bed methane industry. 

n. GENERAL PUBLIC COM.MENT 

Under this item, members ofthe public may comment on any public matter within the jurisdiction ofthe 

Board that is not otherwise on the agenda ofthe meeting. Individual contested case proceedings are not 

public matters on which the public may comment. 

DECEMBER 2 

9:00 A.M. 

I. ADMINISTRATIVE AGENDA ITEMS 

A. 	 Review and approve minutes ofSeptember 30,2005, meeting. 

B. 	 Set 2006 Meeting Schedule; Budget Information. 

n. BRIEFING AGENDA ITEMS 

. A. CONTESTED CASE UPDATE: 

1. 	 Cases assigned to Hearing Officer Katherine Orr 

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). The Hearing Examiner, upon request of the parties, has vacated the 

hearing schedule placed the case on hold until further notice of one or more ofthe parties or 

. upon initiative ofthe Hearing Examiner. 

, 

b. In the matter ofthe Petition for Review ofBazardous Waste Final Permit No. MTHWP03-01 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 final decision of DEQ to issue a 

Hazardous Waste Final Permit to Flying J for its fonner refinery located near Cut Bank. 

Counsel for the parties stipulated to a stay of contested cas.e 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 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 October 25,2005. 

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 of Lewistown appealing assessment of 

$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. 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 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 of Violation and Administrative Compliance and Penalty Order 

issued by DEQ relating to the alleged failure of Bar S Livestock, Inc. to comply with the 

requirements of the general permit for the CAPo it operates near Shelby. The parties 

agreed on a schedule. Upon written request of the parties dated August 10, 2005, the 

scheduling order has been vacated by Hearing 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 December 7, 2005 to do this. 

e. In the matter of Violations of the Water Quality Act by ASARCO, Inc., (BER 2005-09 

WQ). The Board received a request 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. On August 24,2005, the 

Hearing Examiner issued a notice of Assumption of Jurisdiction and upon review of the 

Department's proposed hearing schedule, set a date for a Prehearing Conference of 

December 14, 2005 at which time' a date for the hearing will be determined. 

f. 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 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 hearing has been set for November. 22,2005. 

g. In the matter of the issuance of the Air Quality Permit for the Roundup Power Project, 

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 the 
Board of Environmental Review 

December 1 &2, 2005 

Page 3 of4 

record or to receive additional evidence. On July 29,.2005, the Board issued an Order Staying 

Contested Case Proceedings indefInitely. On August 24,2005, Hearing Examiner issued an 

Assumption ofJurisdiction referencing the Order Staying Contested Case Proceedings. 

B. 	 OTHER BRIEFING ITEMS 

1. 	 TMDL Update 

m. ACTION AGENDA ITEMS 

A. 	REPEAL, AMENDMENT OR ADOPTION OF FINAL RULES: 

1. 	 Amend ARM 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 ofthe proposed amendments with the 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 Department has prepared a draft fInal 

notice modifying the proposed amendments by incorporating' some of the public comments, and 

recommends adoption ofthe proposed amendments with the modifications. 

B. 	 JNITIAnON OF RULEMAKING AND APPOINTMENT OF HEARING OFFICER: 

, 	 The Department will propose that the Board concur in its recommendation to initiate rulemaking to: 

1. 	 Update rules adopted under the Metal Mine Reclamation Act (ARM 17.24.1 01, 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 penalty in 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 adopt federalreforms to the New Source 

Review permitting regulations as set forth. in 40 CFR 51.165 and 40 CFR 51.166. Portions ofthe ' 

federal rules vacated or remanded by the DC Circuit Court of Appeals Ruling of June 24, 2005, 

are not included in the proposal. 

C. 	 FINAL ACTION ON APPEALS: 

1. 	 In the matter of Violations of the 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 of proposed penalty, and cessation and abatement order for mining outside the permitted 

, 

boundary. Under the scheduling order, the fInal prehearing conference was set for October 3, 

2005. On August 24, 2005, the Hearing Examiner, Katherine Orr issued a notice of Assumption 

ofJurisdiction. The parties submitted a Stipulation for Dismissal on October 24, 2005. 
Board of Environmental Review 

December 1 & 2. 2005 

Page 4 of 4 

2. 	 In the matter of the 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 of violation and statement of proposed penalty for alleged mining without a pe.rmit. On 

October 19, 2005 the parties submitted an Administrative Order on Consent. 

3. 	 In the matter of Violations of the 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 of Violation and 

Administrative Compliance and Penalty Order for various alleged violations of the 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 

review prior to the December 2, 2005 meeting. 

4. 	 In the matter of the Denial of the Approval of Subdivision Plans of Sunnyside Orchards #1, 

Block 6, Lots 29, 30 and 31, Ravalli County, EQ # 05-2598 (BER 2005-15-SUB). On June 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 19,2005 to submit a proposed pre-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 

the Board will be evaluating an Order ofDismissaL . 

D. 	 NEW CONTESTED CASE APPEALS: 

1. 	 In the matter. of the request for hearing of Jay Gasvoda, d/b/a Gasvoda Construction, BER 

2005-17 OC, regarding the Notice of Violation and Statement of Proposed 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 of Violation and Statement of Proposed Penalty 

concerning an opencut mining operation. A First Prehearing Order was issued on November 7, 

2005'. The parties have until November 18, 2005 to propose a hearing schedule. 

2. 	 In the matter of the appeal by the Town of Ennis, 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 First Prehearing Order win be issued prior to the Board hearing. 

IV. GENERAL PUBLIC COMMENT 

Under this item, members of the public may comment on any public matter within the jurisdiction of the 

Board that is not otherwise on the agenda of the meeting. Individual contested case proceedings are not . 

public matters on which the public may comment. 

V. ADJOURNMENT 
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BEFORE THE MONTANA BOARD OF ~NVIRONMENTAL REVIEW 

BOARD MEETING 

)).LG.. "L 

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 a.m. 

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 

ORIGINAL 

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(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 

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rule 

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amendments on 

ARM 17.8.743. New rules 	will be codified in new

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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Shropshi~~, the specific imp~ct 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.i s 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 appl ie.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. 

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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 

LAURIE CRUTCHER, RPR 

406-442-8262 42 
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reporting, recordkeeping; arly of that will stay 

same. 

MS~ 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) ... '.. 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 

LAURIE CRUTCHER, RPR 

406-442-8262 43 
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Marble. ·.:Any further discussion? 

(NO response) 

CHAIRMAN RUSSELL: Seeing none, hearing 

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 

way I wanted it. 
 So those are the type of things

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 

406-442-8262 44
Brian Schweitzer, Governor 

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

December 20, 2005 

Dear Interested Party I APCAC Member I Repository: 

RE: 	 PUBLIC HEARING - Establishing a general registration system and 

applying that system to traditional oil and gas well facilities; and 

NOTICE OF ADOPTION - (1) Review of permit applications and 


extending public comment periods; and (2) Permits for oil and gas 


well facilities 


I have attached MAR Notice No. 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 that presently require an air quality pennit, and to apply that system to 

traditional oil and gas well facilities. The Montana Department ofEnvironmental 

Quality will conduct a public hearing on January 23, 2006, to receive comments 

regarding these proposed amendments. 

The notices of adoption are attached for (1) the amendment ofARM 17.8.759, 

pertaining to review ofpennit applications and extending public comment periods 

(MAR Notice No. 17-228); and (2) the amendment ofARM 17.8.743 and 

adoption of new rules pertaining to pennitting oil and gas well facilities (MAR 

Notice No. 17-229). 

If you have questions regarding these notices, please call me at (406) 444-9741. 

The notices may also be found on the 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 

Air Resources Management Bureau 

Montana Department of Environmental Quality 

E-mail: janbrown@mt.gov 

Enclosures 

Enforcement Division • Permitting & Compliance Division • Planning, Prevention & Assistance Division • Remediation Division 
2660­ I 

, 

~ 

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 

DECKER COAL COMPANY • 

• POBOX 12 


" DECKER, MT 59025-0012 


RON ANDERSON 


LINCOLN CTY HEALTH DEPT 


418 MINERAL AVE 


LIBBY, MT 59923 


BRAD BLACK 


APCAC BOARD MEMBER 


POBOX 1442 


LIBBY, MT 59923-1442 


JOAN BOWSHER 


CITY-COUNTY HEALTH DEPT 


POBOX 1723 


HELENA, MT 59624 


GREGBROWN 


CHS INC - LAUREL REFINERY 


PO BOX 909 


LAUREL, MT 59044-0909 


~OBIN BULLOCK 

ARCO 


317 ANACONDA ROAD 


BUTTE, MT 59701 


JIM CARLSON 


MISSOULA CITY-CO HEALTH 


- REPOSITORY 


301 WALDER 


MISSOULA, MT 59802-4123 


BRIAN K CLIFTON M.S. R.S. 


CITY COUNTY HEALTH DEPT 


115 4TH ST SOUTH 


GREAT FALLS, MT 59405 


BILL COURTNEY 


QUANECOLLC 


POBOX 7370 


SHERIDAN, WY 82801 


CNDAY 


'MSON LUMBER CO 


875HWY2S 


LIBBY, MT 59923 


JOE ALINE 


SHUMAKER TRUCKING 


POBOX 1279 


GREAT FALLS, MT 59403 


TINA ANDERSON 


DEQ AIR QUALITY DIVISION 


1866 SOUTH SHERIDAN AVE 


SHERIDAN, WY 82801 


TIM BLUME 


US ARMY ENVIRONMENTAL 


729-19TH ST 4TH FLR RM 427 


DENVER, CO 80202-2500 


CHIP BREMER 


CITE 


PO BOX 12763 


RTP, NC 27709 


JOHN BRUEGGEMAN 


STATE REPRESENTATIVE 


321 LAKEVIEW DR 


POLSON, MT 59860-9317 


WANDA BURGET 


POWDER RIVER COAL CO 


CALLER BOX 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 


FRANK CROWLEY 


POWER BLOCK BLDG STE 300 


HELENA, MT 59624-1185 


BARB DOWSKI 


REG EH & S MANAGER 


QWESTEH &S 


1855 S FLATIRON COURT 


BOULDER, CO 80301 


DON ALLEN 


WETA 


2301 COLONIAL DR STE 2A 


HELENA, MT 59601 


MARTIN BASTA 


CITY OF GT FALLS PUBLIC 


WORKS 


PO BOX 5021 


GREAT FALLS, MT 59403-5021 


RUSS BOSCHEE 


YELLOWSTONE COUNTY APC 


PO BOX 35052 


BILLINGS, MT 59107 


JEFF BRIGGS 


SMURFIT -STONE CONTAINER 


CORP 


PO BOX 4707 


MISSOULA, MT 59806 


LEE BRUNER 


PO BOX 2000 


BUTTE, MT 59702 


DEXTER BUSBY 


MONTANA REFINING CO 


1900 10TH ST NE 


GREAT FALLS, MT 59404-1955 


LORI CLARK 


FOREST SERVICE AIR 


QUALITY PROGRAM 


PO BOX 7669 


MISSOULA, MT 59807 


DAN CORTI 


U OF M ENVIRONMENTAL 


HEALTH 


BLDG 32 MS 9144 


MISSOULA, MT 59812 


CROWLEY HAUGHEY 


HANSON 


TOOLE AND DIETRICH PLLP 


PO BOX 797 


HELENA, MT 59624-0797 


RALPH DRIEAR 


HYDROMETRICS INC 


1116 HELENA FLATS 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 HAMIL TON, MT 59840 

HOUSTON, TX 77079 J 

NATHAN EKLUND ELLEN ENGSTEDT LAERICKSON 

SUMMIT ENVIROSOLUTIONS MONTANA WOOD PRODUCTS ASARCO TROY UNIT 

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 L UZENAC AMERICA 

STATE CAPITAL ROOM 106 - BOX 110 767 OLD YELLOWSTONE TR 

DEADHEAD HAYS, MT 59527 THREE FORKS, MT 59752 

ROBERT D FOOTE ALAN FRONBERG PEGGY FRUIT 


EXXON MOBIL CORP GLACIER ENGINEERING PC TOWN OF BROADUS 


607EXXONRD 1241ST AVE 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 SKY MINING CO PO BOX 283 ASSOC PO BOX 97 BELT, MT 59412 POBOX 1186 COLSTRIP, MT 59323 


HELENA, MT 59601 


ALAN GLUECKERT JENNIFER GOLDMAN ALEXANDRA GORMAN J 

MILES CITY LAUNDRY OIL & GAS ACCOUNTABILITY WOMEN'S VOICES FOR T 


POBOX 1409 PROJECT EARTH 


MILES CITY, MT 59301 POBOX 7193 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 BOX 278 


POBOX 4707 440 W LAUREL AVE VIRGINIA CITY, MT 59755 


MISSOULA, MT 59806 PLENTYWOOD, MT 59254 


WILLIAM HARBRECHT KATHY HARRIS PE ANNE HEDGES 

WESTERN ENERGY APCAC BOARD MEMBER MEIC 

COMPANY 2205 LIME KILN RD PO BOX 1184 

PO BOX 99 HELENA, MT 59601 HELENA, MT 59624 

COLSTRIP, MT 59323 

MARTIN HESTMARK LYNN HILL DAVID HRUBES 

US EPA-REGION VIII 8ENF T MSE-HKMINC EASTERN MONTANA 

99918TH ST STE 300 PO BOX 7010 PO BOX 36 

DENVER, CO 80202-2405 SHERIDAN, WY 82801 RICHEY, MT 59259 

JIM HUGHES ROSE HUGHES DIANNE HUHT ANEN 

DEQ-BILLINGS -- THE CONSULTING ROCKY MOUNTAIN LABS ~ 

REPOSITORY ENGINEERS 903 S 4TH ST 

1371 RIMTOP DR 36 S LAST CHANCE GUL STE A HAMILTON, MT 59840 

BILLINGS, MT 59105-1978 HELENA, MT 59601 
BRUCE HUNNER BRUCE JOHNSON DALE J JOHNSON 

RAVALLICOUNTYENV SUMMIT ENVIROSOLUTIONS ENVIRONMENTAL HEALTH 

ENFORCEMENT & INC 4748 RIMROCK RD (.; COMPLIANCE 1217 BANDANA BLVD BILLINGS, MT 59106 

215 S 4TH ST STE D ST PAUL, MN 55108 

DEAN JOHNSON RILEY JOHNSON DICK JUNTUNEN 

APCAC BOARD MEMBER NFIB RESOURCE MGMT 

BOX 131 491 SO PARK ASSOCIATES 

GLENDIVE, MT 59330 HELENA, MT 59601 259 MCCLELLAN CREEK RD 

CLANCY, MT 59634 

MICHAEL S KAKUK THOMAS KALLENBACH JAKE KAMMERER R.S. 

KAKUK LAW OFFICES PC FLUIDYNE INC & ELK GROVE RAVALLICOUNTYENV 

POBOX 747 DEVELOPMENT CO HEALTH 

HELENA, MT 59624-0747 155 ANNIE GLADE DR 215 S 4TH ST STE D 

BOZEMAN ,MT 59718-7691 HAMILTON, MT 59840 

BOB KELLY CAL VIN KIDNEY PAT KIMMET 


INTERTEC WELLS FARGO CENEX 


619 S W HIGGINS STE S 877 W MAIN ST 5TH FLOOR PO BOX 909 


. MISSOULA, MT 59803 BOISE,ID 83702 LAUREL, MT 59044-0909 

TOM KIRCHER JERRY D. KNUTSON CHRIS KOLSTAD 

STILLWATER MINING CO WEST TECH SUPPLY & APCAC BOARD MEMBER 

HC54 BOX 365 SERVICES HC 74 BOX 49 

NYE, MT 59061 PO BOX 80711 LEDGER, MT 59456 

BILLINGS, MT 59108 

'tARRY LAKNAR CATHY LAUGHNER MITCHELL LEU 


BEAVERHEAD COUNTY BROWNING KALECZYC PLUM CREEK - APCAC 


SANITARIAN POBOX 1697 MEMBER 


2 S PACIFIC ST HELENA, MT 59624 POBOX 160 

DILLON, MT 59725-2799 COLUMBIA FALLS, MT 59912 

LION TECHNOLOGIES INC CARRIE LLOYD CHERRY LONEY 

ATTN LIBRARY VETERANS AFFAIRS CASCADE CO HEALTH DEPT ­

POBOX 700 WILLIAMSST - REPOSITORY 

LAFAYETTE, NJ 07848 FORT HARRISON, MT 59636 115 4THST S 

GREAT FALLS, MT 59401-3618 

RICHARD LONG MICHAEL J LUCIANO MICHAEL MACHLER 

US EPA REGION VIII 8P AR FARM HARVESTING OF APCAC BOARD MEMBER 

999 18TH ST STE 300 EUREKA 771 TOPAZ AVE 


DENVER, CO 80202-2405 POBOX 1050 BILLINGS, MT 59105 


EUREKA, MT 59917 


DEB MADISON WAYNE MARCHWICK DON MAY 

FORT PECK TRIBES CENTRAL MT HEALTH DEPT MAXIM TECHNOLOGIES INC 

BOX 1027 305 W WATSON ST PO BOX 2730 

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 12TH AVE SW 3131HWY2E 


MALMSTROM AFB, MT 59402- SIDNEY, MT 59270 KALISPELL, MT 59901 
 J 

BOB MONTGOMERY TIM MULLIGAN DARREL MYRAN 


WESTERN ENERGY CO RISK MANAGEMENT DIV WESTMORELAND 


PO BOX 99 POBOX 3767 RESOURCES INC 


COLSTRIP, MT 59323 BUTTE, MT 59702 BOX 449 


HARDIN, MT 59034 

ANNISSA NELSON ALLEN NIPPLE DAVE NOELL 


TANKNOLOGY SPRING CREEK COAL CO APCAC BOARD MEMBER 


470 SCHROCK RD STE L POBOX 67 1318 BABCOCK CIRCLE 


COLUMBUS, OH 43229 DECKER, MT 59025-0067 BILLINGS, MT 59105 


TRACYOPP 	 OWEN ORNDORFF SANDI OLSEN STONE ENERGY CORP YELP DEQ 950 17TH ST STE 2600 	 1087 W RIVER ST STE 200 REM - DEADHEAD DENVER, CO 80238 	 BOISE, ID 83702 

JOE O'ROURKE JIM PARKER DICK PAULSEN 


FH STOLTZE LAND & PPLMT AMERICAN LUNG ASSN 


LUMBER 1 WAREHOUSERD 825 HELENA AVE 


BOX 1429 COLSTRIP, MT 59323 HELENA, MT 59601 


COLUMBIA FALLS, MT 59912 

MIKE PHILBIN 	 STEVE PILCHER

ELLEN PORTER J

BLM 	 ROSEBURG FOREST 

POBOX 1715 5001 SOUTHGATE DR 	 PRODUCTS 

HELENA, MT 59624-1715 BILLINGS, MT 59101 	 PO BOX 4007 


MISSOULA, MT 59806 


DANPOWERS DON QUANDER TIM QUARLES 

BUTTE/SB HEALTH DEPT HOLLAND AND HART THE RETEC GROUP INC 

25WFRONTST 401 N 31ST ST STE 1500 2048 OVERLAND AVE STE 101 

BUTTE, MT 59701 BILLINGS, MT 59101 BILLINGS, MT 59102 

JEREMY RHODES 	 RANDALL RICHERT JIM RAMAKER 341ST CES/CEV 	 CONOCO POBOX 760 39 78TH ST N 	 PO BOX 30198 CHOTEAU, MT 59422 MALMSTRM AFB, MT 59402- BILLINGS, MT 59101-0198 

7536 

MIKE RINALDI RS HAL ROBBINS CORRINE A ROSE RS 

ROSEBUD COUNTY BISON ENGINEERING INC TETON/PONDEROSA COUNTY 

SANITARIAN 1400 11TH AVE STE 3 BOX 610 

251 NO 17TH HELENA, MT 59601-4516 CHOTEAU, MT 59422 

FORSYTH, MT 59327 

JOE RUSSELL PAT SAINDON GERALD SCHLOSSER 

FLATHEAD CTY HEALTH PLANNING DIVISION SUPR OF PLANT SERVICE\.) 

DEPT MT DOT - ENVIRONMENTAL - 11 01 26TH ST S 

10351ST AVE W DEADHEAD GREAT FALLS, MT 59405 

KALISPELL, MT 59901 HELENA,MT 
CURT SCRIBNER 


YELLOWSTONE ENERGY LTD 


2215 FRONTAGE RD 


BILLINGS, MT 59101-7307 


JAGADEESANSETHURAMAN 


WHITING PETROLEUM 


1700 BROADWAY STE 2300 


DENVER, CO 80290 


JAYSKABO 


MONTANA DAKOTA 


UTILITIES 


400N4THST 


BISMARCK, ND 58501 


PATRICIA SPENCER 


ENVIRONMENT REPORTER 


BNA-123125TH ST NW S-382 


WASHINGTON DC, DC 20037 


RICK STEFANIC 


BUREAU OF INDIAN AFFAIRS 


316 N 26TH ST 


BILLINGS, MT 59101 


~ SAM STEPHENSON 


ARC0 


317 ANACONDA AVE 


BUTTE, MT 59701 


LARRY SVOBODA 


US EPA REGION VIII-8P-AR 


. 999 18TH ST STE 300 


DENVER, CO 80202-2405 


RAYTILMAN 


MONT ANA RESOURCES 


600 SHIELDS AVE 


BUTTE, MT 59701 


TONY TWEEDALE 


MTCHEER 


404 E SPRUCE ST APT 2 


MISSOULA, MT 59802-4655 


~EVEWADE 

. OWNING KALECZYC 


BERRY & HOVEN 


POBOX 1697 


HELENA, MT 59624 


WADE SELLERS 


SUPERIOR ENTERPRISES 


POBOX 128 


SUPERIOR, MT 59872 


PETE SIMONICH 


COLSTRIP STEAM ELECTRIC 


STATION 


PO BOX 38 


COLSTRIP, MT 59323 


DENNIS J SNOW RS 


DAWSON CITY SANITARIAN 


207WBELL 


GLENDIVE, MT 59330 


LYNN ST ABENFELDT 


MULTISTATE ASSOCIATES 


INC 


515KINGST 


ALEXANDRIA, VA 22314 


JODEE STEIN 


WELLS FARGO 


175 N 27 ST 


BILLINGS, MT 59101 


STAN STERNBERG 

MT DOT - ENVIRONMENTAL 

MT DOT - ENVIRONMENTAL ­

DEADHEAD 

HELENA,MT 

LILA TAYLOR 


BOX 595 KIRLEY RT 


BUSBY, MT 59016 


STEVE TURKIEWICZ 


MONTANA AUTO DEALERS 


ASSN 


501 N SANDERS ST 


HELENA, MT 59601 


DARYLURAN 


WILLISTON BASIN INST 


PIPEL 


POBOX 131 


GLENDIVE, MT 59330 


GERALD WAGNER 


BLACKFEET TRIBAL 


PO BOX 2029 


BROWNING, MT 59417 


JON SESSO 


BUTTE/SIL VER BOW PLAN 


CRTHSE 155 W GRANITE 


BUTTE, MT 59701 


DAVE SIMPSON 


WESTMORELAND 


RESOURCES 


PO BOX 449 


HARDIN, MT 59034 


RICH SOUTHWICK 


APCAC BOARD MEMBER 


173 COTTONWOOD RD 


TOWNSEND, MT 59644 


FRED STEELE 


CSKT TRIBAL HEALTH 


BOX 880 


ST IGNATIUS, MT 59865 


STEPHEN BLANKENSHIP 


FORD 


925 L ST STE 390 


SACRAMENTO, CA 95814 


FRED STIERS 


CONOCOINC 


PO BOX 30198 


BILLINGS, MT 59107-0198 


SHANNON THERRIAULT 


CITY COUNTY HEALTH DEPT 


301 WALDER ST 


MISSOULA, MT 59802 


BARRI TWARDOSKI 


MAXIM TECHNOLOGIES INC 


PO BOX 2730 


MISSOULA, MT 59806 


CALLIE VIDETICH 


US EPA REGION VIII-8P-AR 


99918TH ST STE 300 


DENVER, CO 80202-2466 


BETSY WAHL 

EPA 

EPA-DEADHEAD 
SCOTT WALKER 


YELLOWSTONE CITY 


COUNTY 


510 N BROADWAY 


BILLINGS, MT 59101 


LINDA WIEGERT 


MERIDIAN OIL INC 


801 CHERRY ST STE 700 


FORT WORTH, TX 76102 


LARRYZINK 


MT SULPHUR & CHEMICAL 


CO 


PO BOX 31118 


BILLINGS, MT 59107 


FARMERS UNION OIL CO 


1000 SMELTER AVE 


BLACK EAGLE, MT 59414 


MONTANA POWER CO 


PO BOX 38 


COLSTRIP, MT 59323 


KEVIN K. WALSH 


ENVIRONMENTAL 


CONSULTING 


451 FREEDOM AVE 


BILLINGS, MT 59105 


STEVE D WRIGHT 


COLUMBIA FALLS 


ALUMINUM 


2000 ALUMINUM DR 


COLUMBIA FALLS, MT 59912 


CARBON COUNTY HEALTH 


DEPT 


BOX 466 


RED LODGE, MT 59068 


MONTANA MOTOR 


CARRIERS 


501 N. SANDERS ST #201 


HELENA, MT 59601-4552 


NORTHERN PLAINS 


RESOURCE COUNCIL 


2401 MONTANA AVE #200 


BILLINGS, MT 59101-2336 


Last edited by JB, 12115/05 

JOHN WARDELL 

EPA 

EPA - DEADHEAD 

..J 

JIM ZABROCKI 


CUSTER CO SANITARIAN'S 


OFFICE -- REPOSITORY 


COURTHOUSE 


MILES CITY, MT 59301 


CENTURY COMPANIES INC 


BOX 739 


LE\VISTOWN, MT 59457 


MONTANA AUDUBON 


PO BOX 595 


HELENA, MT 59624 


PACK & COMPANY CONST 


PO BOX 8150 


KALISPELL, MT 59904-1150 


..J 
Montana DEQ - Legal Unit - Adopted Rule Notices Page 1 ofl 

DEPARTMENT OF ENVIRONMENTAL QUALITY 

QEQHQrne 

Administrative Rules of Montana 

Final Notice of Rulemaking 

Effective Purpose 

12/23/05 

12/23/05 

10/28/05 

Questions or Comments? 

Contact the Rule Coordinator at (406) 444-2630 

II'" t Updated: 15 Dec 2005 Privacy & Security Accessibility Contact Us ' ~', m gOY 

http://www.deq.mt.gov/dirllegalladoption.asp 12/16/2005
_____ 

(' 

-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 

rfceol 

/fc/Z 

1&{3 

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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 

Montana air quality permit under existing air quality rules. I

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. I

RESPONSE: The Board disagrees with the comment for the p

following reason. The Board believes that controls are I· 

appropriate for both rich-burn and lean-burn engines. The Board I 

Montana Administrative Register 24-12/22/05 

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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