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ns I1l Agreem nt resolving this matt r is h reb approved and incorpoTat d by reference into

thi' inaJ rder. 11,' R"p nd nt i hereby RO'j itl 1111 Drlh term ofth~

, 10 nt gr m 'nl ff ,ti 'imm dial I up n r ipt Re t this (' 11 nl

This ourt \! '\1 etc pt the Ie tronjc filin ofihe onsent gr ment in thi' matter at thi'

time, 110\: e er th PUfli s' rc 1 fil th riginal os nl gre m I1t ithin se en day of

i ' 'umlCC of this rder.

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ADMINISTRATIVE COMPLAINT

Dakota·3 E&P Complluy, LLC AND CONSENT AGREEMENT

In Ihe Muller of:

UNl1'IlDSTATES

ENVIRONMENTAl. PROTECTION AGENCY

REGION 8

Docke'No. CAA-08-2011-0022

)

)

)

)

2DII AUG 29

•

~H 10: 32

1

,I - •

, I L

Respondent.

AUTHORITY

The United States Environmental Protection Agency, Region 8 (EPA or Complainant) is issuing

this Administrnlive Compillint and Consent Agreement (Agreement) to Dakota·) ll&P Company, LLC

(Responden') pursuan' to Section' 1I3(a)(3) and 113(dX I) of the Clean Air Act (CAA Or the Act), 42

U.S.C. § 7413(aX3) and § 7413(d)(I). The Administrator of 'he BPA has 'he au'huri'y '0 enter in,o this

Agreement and that authority has been properly delegated to the undersigned EPA official.

A. STATUTORY AND REGULATORY BACKGROUND

1. On June 19, 1978, EPA promUlgated the Prevention of Significant DeteriorJlion (PSD) regulations

punmalll (0 Subtitle I, Part C of the Acl. 43 Fed. Reg. 26403. EPA revised the PSO regulations on

sever:ll occasions including August 7, t980 (45 Fed. Reg. 52676) and December 31,2002 (67 Fed, Reg.

80186). These legulations are codified at 40 C.P.R. Part 52,

2. Tcnns used in this Agreement that are defined in the Act or in rcgulalion~ promulgated pUl1luanl to the

Act shall have lhe meanings llSsigned 10 Lhem therein. unless otherwise pl"Ovidcd in this Agreement

3. The emission sources to which this Agreement relates are in "Indian country" as defined al 18 U.S.C.

§1151. The tucnttollll of the emission sources arc identified tn Appendix A.

4. Section 165(0) of the Act, 42 U,S.C. § 7475(.), and 'he PSD regUlations implemen'ing Pan C at 40

C.P.R. § 52.21(a)(2)(iii), prohibit a major stationary source from commencing conSlnlction or major

modification of amajor stationary SOUlt:C without apennit which SUItes that the major stationary source

or modification would meel the requirements of 40 C.F.R. § 52,210) through (r).

5. 40 C.P,R. § 52.21(b)(5) defines a "stationary source" as, any building, structure t ftlcilily or installation

which emits or may emit a regulated PSD pOIJUUlIIl.

6. 40 C.F.R. § 52.21{b)(IXi)(b) defines a"major stationary source" as, tlIllong other lhjng~, any stationary

source thai emits. or has the potcntial to emit. 250 Lans per year or morc of nny regulated PSD pollucant.

7. On July 1,2011, EPA promulgated final rulcs titled "Review of New Sources and Modifications in

Indian Coun,ry." (Tribai Minor NSR Rule) 76 Fed. Reg. 38748·808 (july 1,2011) (to be codified ,,40

C.P.R. PlIrtS 49 and I). The finai rules are effective on August 30, 2011. 76 Fed. Re8. at 38748. Once
effective, the rules allow. among other things, for a synthetic minorsource pemtit 10 be issued to an

otherwise major source thHI hus taken a restriction, enforceable as a legal and practical maller, ~o lhar the

source's potential to emil is less than the amounts for major sources.

8. 'Illis proceeding is governed by the Consolidated Rule.'l of Practice Govcrning the Administrntive

Assessmcnt of Civil Penalties, Dnd the Revocation, Termination or Suspension of Pennits (Consolidated

Rules) Set f"11M llt 40 C.P.R. Ptl1122. The U,S. Department ofJustice hus concum.:d with EPA Region

8's requcst for Quthorization to commence an administrative enforcement uction in this mauer.

9. This Agn-cmcnt .. is volunturily enlered into by the BPA and tho Respondent for the purpose of

simultaneously commencing and concluding this muuer, as authori7,ed by 40 C,f,R, § 22,13(b), and

executed punuanllo 40 C.P.R. § 22.18(bX2) and (3) of the Consolidated Rules.

n. INTRODUCTORY PROVISIONS

I. This Agreement addressCll 0 unique situation in thut the Respondcnt is unable to obtain an effectlve

synthetic minor source pennit from EPA prior to commencing construction because, pursuant to the neW

Tribal Minor NSR Rule, the authority to issue such petmlts begins August 30,2011.

2. ntis Agreemellt is entered into by EPA nnd Respondent to settle alleged violations and allow

Respondents to comply as cxpeditiously os possible with the requirements of the CAA, specifically PSD,

of certain Dakken Ponnation Oil nnd Ons Emission Sources (emission sources) owned and/or operated

by Rcspondenl1 located within the exterior boundaries of the Fort Berthold Indinn Re.~orvation in North

Dakota as described in Appendix A.

3, Respondent admils the jurisdictionalllllegQtions in this Agreement but does not ndmit the specific

factual allegntlons or legul conclusion:; mode by tho Complainant herein.

4. Respondent waives its rights to a hewing before any tribunalnnd (0 contest any issue of law or fact set

forth in this Agreement.

5. Complainant usserts that settlement ofthis matter is In the public interest. Complainant and Respondenl

Itgrcc thut resolving this matter without further litigation and without udjudication of any issue of fact or

Jaw is appropriute.

6. 'ntis Agrccment, which includes Appendices A and B, upon incorpotation into a Pinol Order, applies to

and is binding upon EPA and upon Responden~ .md Respondent's officers, directors. employees, agents,

succcsson and assigns.

7, This Agreement contains aU lerms of the st:ulement lIgreed to by the EPA nod Respondent.

2
c. AI.LEGED VIOLATIONS

J. Respondent is 11 Delaware limited liability company and therefore 11 "person" .as defined in section 302(e)

of tlte CAA, 42 U.S.C. § 7602(0).

2. Respondent owns and/or operates the entission sources described in Appendix A.

3. Complainant alleges thut Respondent violated the CAA by constructing each of the major stationary

sources identified in Appendix A. Table A·) without first obUlining a PSD pennil pursunnllo 40 e.ER.

§ 52.21.

I). REQUIREMENTS UNDER TillS AGREEMENT

'Ole EPA and Respondent. by their undersigned representatives. hereby conseR! and agree 4Ul [ollows:

1. Pcrmilling

n. Wilhln one year of Ihe effective dale uf this Agreement, for all Existing Emission Suurces listed

in Appendilt A, Table A·l, Respondent shall submit 10 EPA a complete synthetic minorsource

pennil application under BFA's Tribal Minor NSR Rule. IfRespondent deteonincs that an

emission source was incorrectly included in Appendix A. Table A-I, it may notify EPA o( that

fact by October 14.2011. In this circumslance, P.ofllgraph p, 13 below shall apply,

b By October I, 2011. Respondent shull submit 10 EPA a complete synthetic minor source permit

application for New Emfssion Sources listed in Appcndbt A, Table A-2 that will commence

construction duting the period starting August 31. 2011, and ending December 31,2011,

c. By November I, 20J J. Respondent shall submit to EllA a complem synthetic minor source

pennit applicDtion for New Emission Sources listed in Appendix A. Table A-3 that will

commence con5uuclion during the period starting January 1,2012, and ending March 31, 2012.

d, By Janu4ll)' 1,2012, Respondent shall submit to EPA a complete synthetic minor source pennit

application for New Emission Sources listed in Appendix A, Table A~4 lhat will commence

construction dUring the pcriod starting April 1.2012, und cnding June 30, 2012.

c. Any emission sources fur which construction will commence afrer I11ne- 30. 2012, arc nol8ubjecl

10 this Agreement Dnd Respondent musr obtain an effective synthetic minor source pennit from

EPA or comply with the provisions of 40 c.P.R. § 52.21 prior to commencing construction.

r. Inclusion of 1\n emission source listed in Appendix A, Tnble A-2, A-3 or A·4 does not pl'eclude

Respondent from commencing contilt'uction of that emission source lifter the date specified in the

rclevant Paragraph D.I.b.c. and d above Ilowcvcr. all such omission sources must commence

construction prior to June 30, 2012.

g. If those emission sources listed in Appendix. A. Tables A-2, A-3. and/or A-4 do not commence

construction by lune 30. 2012, then they arc therefore not suhjeet to Section Dof this

Agreement.

3
2. Ganlml Requirements

a. Por all EJtisting Emlssion Sources listed in Appendi~ A, Table A-I. the Respondent shall comply

with the requirements of Apflcndi~ B by 110 later Ihnn December I, 2011.

b. Por all New EmiHslOIi Sources listed in Appendix A, Tables A·2, A-3. Itl\d A-4 Ihe Respondent

shull comply with the requirements of Appendix B upon staft-up of production, Emission

sources Lhal receive an efFective synthetic minor lIouree permit before commencing construction

are not subject to the rcquircmen\.S ofthis Agreement,

3. NotificatIon

Respondent shaH nOlify the EPA on the last business day of each month of all of the emission

sources subject to this Agreement that commence construction in the previous month. Respondent shall

also nOlify the EPA whether those emission sources arc meeting the control requirements as required by

Appendix 0 Dnd whether Ihey have received Ull effectivo syuthelic minor source permit. 11119 notice

shall also include a list of em.Issions SOUrce.ll Ihat al'C removing 0 98% control device and using u 90%

control deviee us oullined In Appendix B.

Unless othclwise specified herein, whenever Rcspondenl's notification, submissions, or

communication are required by this Agreement, they shull be made eleclronically or mulled to the

following:

Cynthia J. Reynolds. Director

U.S. EPA Region 8 (8ENP·AT)

Air & ToxIes Tcchniclll Enforcement Progrum

1595 Wynkoop SI.

Den,er, CO 80208·1129

revnolds,cynthia@cDu.gov

E. CIVIL PltNAL'!'Y

1. Pursuant to Itn analysis of the (nets and circumstances of this case with the statulory factors described in

,celion 113(d)OXB) of the CAA, 43 U.S.C. §7413(d)(IXBl, EPA has determined II", an appmpriate

civil penalty to setde this uCllon Is the amount of $31000 per emission source \lilted in AppendiX A for a

lotillof $228,000.. 00 wA il'./"

2. Respondent con&eJII.<; 10 the is.'tuanee of a Final Order and consenlS for the purpo~ ofsettlement to lhe

payment of Ihe civil penally in the manner described below in this paragraph:

D. Pnyment is due within 90 calendar days from the date of the Pinnl Order. to bo i5~ued by the

EPA's Regional JucUciul Orficer, Ihllt adopts Ihis Administrative Complainl and Consent

Agreelllent. If the due date falls on II weekend or legal federnl holiday, then the due dale

4
becomes the next business day, The date the payment is made is considered to be the date

processed by the Blink described below, Puyments !ef;:cived by 11:00 AM W'e processed on the

next business day,

b. The payment shall be mllde by remitting 8 cashier's or certified check, including the name and

docket number of Lhis case, for Lhe calculuted amount, payable to ''Treasurer, United Stules of

Amelicu," 10;

CHECK PAYMENT:

US Environmental Protection Agency

Fines and Penalties

Cincinnllti Finance Center

PO Bo. 979077

SI. Lou;s, MO 63197-9000

OVERNIGIIT MAIL:

U.S. llank

1005 Convention Pluza

Mail St"ion SL-MO-C2GL

SI. Louis, MO 63101

Contact: Nalalie Pearson

3t4-4 18-4087

WlRl! TRANSFER:

Wire Tronsfcrs should be directed to the Federal Reserve Bank of New York

Federal Reserve Bank or New York

ABA - 021030004

Account - 68010727

SWIFf address =FRNYUS33

33 Ubeny Street

New York. NY 10045

Field Tag 4200 of the Pedwire message should read AD 6801127 Environmental Pmrection

Agency

ACH (also known D.S REX or remittance express):

Automated Clearinghouse (ACH) for receiving US cul't'Cncy

~NC Daok

808 17· Street, NW

Washinglon. DC 20074

Contnct B Jesse While 301-887-6548

ABA;:: 051036706. Transaction Code 22· cheelcing

Environmental Protection Agency, Accounl310006. crx Fonmu
ON·LINE PAYMENT:

There is now an On Une Payment Option, avuilable through the Dept. ofTreasury. This payment option

can be accessed from the infonnation below:

www.pay.gov

Hillersfo J.l in the seurch field. Open form and complete required field!.

A cupy or the check, or wire transfer, shall be sellt simultaneously to:

Ale'i' N0l1h (SENP-AT)

U.S.BPA Region 8

Technical Enforcement Pl'Ogrum

1595 Wynkoop SI.

Den'er. CO S0202-1129

.tnd 'fino Artemis

Regional Hearing Clerk (8RC)

U.S, EPA Resion 8

1595 Wynkoop SI.

Oen'er. CO 80202-1129

c. Payment of the penalty in this manner does nm relieve Respondent of its obligation to comply

with the requirements of the CAA and its regulations.

F. GENERAL PROVISIONS

l. The emissions controls required in Appendix B under this Agreement shall be considered "federally

enforceable" and, llS applicable, "legally wld practicably enforceable" for pUJposcs of calculating the

potenlialto emit for the emission sources covered under this Agreement.

2. jlailure by Respondent to limely apply for, atld uhimately obtain, the synthetic minor permit for any

emillsion source idclHified in this Agreement or to comply wilh the requirements of Section 0 and

AppendiX Bshall rCllder uny release or satisfaction of Ultbillty afforded under tillS Agreement null and

void os to that source.

:1. Nothing in lhis Agreement shull be conslrUed os II waiver by the EPA or nny other federal entity of its

nuthority co seek costs or any appropri;.lte penalty associated with nny collection action instituted as a

rcsull of Respondent's failure to perform pursunnt to the terms of this Agreement.

4. Once lhe Respondent has received nsynthetic minor source permit [rom EPA for the emission source

identified in Appendix A, and thai permit has become effective, the tcnns of that petmi[ supersede this

Agreement.

5. PM ull Existing Bmisslon Sources listed in Appendix A, Tuble A-I, Respondent's submission or tl

complete synthetic minorsource pennit application will constitute compliance with the relevant CAA

prOVisions dUring the period of this Agreement.

6
6. For all New Emission Soun;es listed in Appendix A. Tables A-2, A·3. and A-4, compliance with the

relevant CAA provisions ~quires that Respondent: a)obtains an effective synthetic minorsource pClmit:

b) is subject to an EPA approved FederRIlrnplemenlotion PIon which nllows for a pennit by rule: or c)

complies with a new EPA applicable CAA regulation lIlat removes thorn from PSD applicability

7. Notwithstanding the Icons of Ih.is Agreement, the Respondent must meet any other applicable

requirements af Ihc Act or its implementing regulations,

8. Respondent agrees that for any emission source operated without the controls required by this

Agreement, except for illtit8nces of mnlfunction. Respondent is in violation of this Agreement.

MRlfunction shall be defined ali any sudden, infrequent, and not reasonably preventable fnilure of nir

pollution cOl1u'Ol equipment, process equipment, or 0process to operate in 8 norrnn( or usual mannor,

caused by circumstances entirely beyond the eoolrol of lhe owner or operator, but shall not include

failures that are caused in whole or in p1U1 by poor maintenance or careless operation,

9. Respondent agrees thUl any emission source who,e nctUt11 emissions have exceeded 250 tons per yeu is

not covered by this Agreement, including any emission source listed by the Respondent in AppendiX A.

10, Eaeh llndcr3igned reprcsenlative of the EPA nnd Respondents (parties) (0 Ulis Agreement certifies thal

he or she is fuJly uuthorized by the Party represented to bind the Party to the tenns nnd condilions of thili

Agreement and to execute nnd legally bind that Pnn,y to this Agreement.

11. Tbe Partics agree to submit this Agreement to the Regional Judicial OFficer. wilh urequest that it be

incorpol'Bted tn10 u Final Order.

12. The terms, conditions, nnd compliance requirements of this Agreement may not be modified or amended

execpt upon the written agreement of both parties, and approval of nRegional Judicial Officer.

13. if the Respondent, pursuanl to Paragraph 0.1.0., nbove, wishe." to amend Ule list of emission sources in

Appendix A, Tnhle A-I, it shall submit those suggested changes 10 EPA fOI' approval. 1f EPA ugrecs

with the suggeslec1 changes, the Pruties willliubmit all amended Agreement to the Regional Judicial

Officer for incarportltlon into a revised finnl Order.

14. The e£fective dote of this Agreement Is the dille that the Finnl Order is signed by the Regional Judicial

OFficer.

15. This Agreement, upon incorporution into a Final Order by the Regional Judicial Officer and full

Salisfaclion by the Pwties, shall be a complete, full \lnd finw settlement of Ihe viul:Hions alleged in this

Agreement.

16. Each Party shall bear ils own costs and attomeys Fees in connection with ull issues associated with this

Agreement.

1
ate: _-.J~~.11d.;..:.1l_---

UNITED STATES BNVIRONBMENTAL

PROTECTION A EN Y REGION 8,

omplainant.

Dakot -3 E&P Company, u.c.

Respondent.

~~I.;2'" William K. ~I, Vi e President

Dakota-3 E&P C mpany, LLC
. ppendi

Emmision ouce In

Table -J Existing

cnto

mi ioo S 0 te commenced con truction b Ul!U t 30 201 J

ISource 'lam Latitude longirnd Section, Townshjp. Well5ire Casinghead gas ICasinghead TaoksfT:mk Tan ksfTan k

(NAD 27) (. 02 Ran~e completion controlled or ..

O' conrrol Ba£ler~; Balt('~' control

datt" capturt"d d icc coutrol dC\'icc d "icc install date

OJ --:ATI1A~ IIALE .~·llm PAD 47.7309623 -102.634671 SEC. HJTI..9N·R93W 3'2/2009 Controlled Fln~ · one :'\,A

D3TA1" 2-1I1714A 1'1\0 47.6731214 -102.724526 SEC I T1411K·R95W :'ii2/2001J Controlled F13n: one NA

OJ TAT IJ-2H IQn PAD 47.7-'170985 -I02.~998 SEC. 2 T 1-I9N·R93W SflI2009 rontrolled Flan: · one :NA

03 I'ENN1NGTOl" 16-ISI1 1'.-\0 47.'r970SJ -I 02.429664 SEC IS T1S2N-R92W Sf1l2009 (ontrnUcd Flm: , one N·"

DJ .,USIA FOX 16-9H PAD 47.7:.l2399I ·102579016 SEC. 9 TI-I9~-R93W 911/2009 rontrolled Flare ·onc: :-,l'A

03 CROSS 2-13HPAD PAD -I7,.73(l~815 -102.65143 SEC IJ T1-l'lN-R'J4W 101111009 "'orrtrolled F'1:lre 'lone ~A

03 "IlATl-IAN IIALE4-25H PAD -17.7883526 -102.t\/i2134 SEC. 25 TlSON-R9-lW 12"" 2009 Controlled Fl.", 'onc NA

D3 PATRICI... CHARGINti 4-1511 PAD 4U3056111 ·102576313 ISEC 15 TI-l9N-R"lJ\V 31' 2010 IControlled Flare None ~A

03 CLARA 14-1711 PAD -I7.71114) ·102.61157 ISF.C 17TI-l9N·R91W 112/2010 Cor1Jrdlled Fhre None I'l,,,,,

U3 TAT 15-111 PAD -1774729 ·10252199 SEC. I TI49"-R9J\\' 11~12010 Comrl'lIed Flare KOlle :-I A

OJ BIRDSBrLL 1..... 16H PAD 47.71817 -\ 02.59086 SEC. ItI T149!'1-R9J'" 3012010 IConlrulled All'" IN,,",: NA

03 BRVNSEU 16-911 PAD 47.1\1951\ -102..1.5065 SEC. fJ T130i"-R92W 41112010 Controlled FI;rre Nom, NA

l}1 VAN 'lOOK· R S 16-411 PAD 47.8339495 -101..150615 SEC~ T1501'-R92W 41111011) Controlled Fhre INone NA

DJ t1IGII nAWK.l-9H PAD 41.7-1SS-l 102.46604 SEC 91"1-l91'\·R92W S!()!20,O IComrolled Flare , one N

03 OLSON 1-1211 PAD -l7.lS4696 -102.40131 ISEc.. I TlS0N-R92W !!'17/:!OI0 Controlled Flan: • Oll~ 1'1

DJ MORSETTE 35-161'1 PAD -:17.76411236 -102.6716')'1 SEC 26TlSON-R'J-lW 911/2010 Contmlled Flare lone NI',

OJ KYW 27-J4H 1'...0 477S7(llJ2 -102.705..t54 SEC. '17 TI50N-R'I4W 1J'26/2010 Controlled Ban: , Olle ;-.I,A

03 MASON 2-1 llll'AD 47_K4t\84 -102.42056 SEC. 2 TISON·R92W 1219/2010 IConrrolled FlaTC onc NA

OJ FBIR 13-2411 PAD -I7.1\1?79 .\ 0"10121 SEC. 13 TI50N-R91\V l'lell011 ControlJ~d Fl= Nooc- A

03 WELLS 32-29H PAD 47.7(,IS8 -102.60624 SEC 29 Tl50N·R,93W ! 15/2011 ConlNllcd Fl:ll'e None- A

D3 lIElllSA RUTH GRA1'.'T 33-3411 PAD 47TI027 ·I02..Sl)"lg9 SEC 33 TI50N-R9.lW 3f712011 COnirolled F1= Non~ , ',\

OJ STATE OF NO 10-311 PAD HlC!OO37 •t 02.4-1P'2 SEC 3 TI30N-R92W 31912011 Controlled FlilfC None- ;/\

03 SPOTTED RABBIT 14-2311 PAD "'.llt71l7 -11)2.'12292 ISEC. 1-1- Tl50N-R92W :;. 20f2011 Controlled flare :'lone NA

D3 BLACKff"-WK '5-34I1P~D 47.67458 -102.13297 SEC 34 Tt-l9N-R9:!W 32912011 COnlrolled FI= :-<onc ~IA

P~~,CKER34-2n~PAn H.674111 -102.56935 SEC. 27 T149N-R93W -1/4 120 II IConlrollcd Flare 1:-;011~ :-fA

OJ r-IANDAREE JIl-J IH PAD 4"' -890055 ·102.(.'9992 ISFC 30T150N-R91W .l-1lI120 11 Conlrolled Flare Il':nne NA

D3 BEAKS 36-351~ PAO 47.6830049 -102.516201 ISEC- 35 TI49N·R9.lW 422/2011 COlllrolled Flare Non~ NA

03 ELK \(...1111 PAD 47 111795J -102.#5803 SEC.16 T150N-R92\\' 4'25/2011 IControlled FI:m: I:-:olle N

03 SKUNI{ CREEK I-1m PAD 47.67213 -lOlA",)9S SEC. I TI.j8~~R9JW }'Tf>'2011 Controlled Flare None N

M,\"Dill' 13-14H PAD .I7811S78 .102.S1-l9M ISEC 13 TISON-R93W S'':!(1/2OJ r IControlied fun: None Ni

03 PACKll\'E!\U 15-3!i1 PAD 'P.67459 -102.47671 ISEC 32 TI49N·R9.:!W Sr"!2011 COnlmll"d Flan: IN071~ NA

D3 WOLF 21...~H PAD 47,7021718 -I 02.1)9~OIl9 SEt 17 T1-19:-'-R9-1-W 6~61201l Cllntrollcd Flare ~~ 1'I'A

OJ ADAM GOOD BEAR '5·2.~H PAD r.1l17)!! -IO:!.-l.J624 SEC 15 T150W.R92W 77''1011 Comr\lllc:d Flare lI'one NA

~nIA.."lIIAl1. 101'" PAD -+1 (1..1536.l -102.61~~6 ISECI4 TI48N·R9-lW 7 14I1()I I COI1lTOlIcd Flare I:-'-one- N'A

OJ BE..'lSON 3-9H 1'1\0 -+7.659175 -I02.539QJ(' SEC. <) TI~li)\.'-R9J\V 23/2011 iComn)lI~d F1Jrre I!'one N.

JOSEPII EAGLE 2·I Qll PAD ..17 -16339 -102.(,25861 Sr:.c. 19 T149N·R93W SIl/2lJll IControlled FllIre lI'one [N

D3 LUCY LONE FlGIIT l6-:2tl PAD -n.-OJ('35~ -102.& 62M ISEC.:2 Tl-lQN-R'4W &'2'2011 COnlrOlled Fl1Jre INtll\c IN

RUBIA 16-2411 PAl) 4771HQ53 10'1-/;'I6"lS9 SEC_14.TI49-R94\\ tlllf2011 ICommlied Fbre i\one

DJ MARV R SMInI j.llH rAD 4'" N46944 ·102..4 :1322 SEC; ISO'i-R91W l'I/'1.lJ2011 Controlled Flare None A

IFRALD IIALF J).21111 PAD 4-795803 -102711S.:4 SEC 3. T151lN'-R9-1\\' R15/201 I [Comrolled Flare NOlle 'A

To al Source Location: 40
Tabl A-2 New Emi ion OUTces (commencing construction between ugu (31, 2011 and 0 cmb T31 2011)

Source Identification Section, Township IExpected

Range !Commence

:Con truction

Date

BUFFALO 1-36H PAD ISEC. I Tl49N-R9JW 9/1/2011

BEAR DEN 24-13H2 PAD SEC. J3 TISON-R94W 9/6/2011

SPOTIED HORN 26-35H PAD :SEC. 26 Tl49W-R94W 9/812011

STEVENSON 15-8H PAD iSEC. 8 Tl49N-R93W 10/13120 II

SKUNK CREEK 23-14H PAD SEC. 14 T149N-R93W 1Oil7120 II

BLRD 30-JIH PAD SEC.30 T 15IN-R94W 11/1120] I

DELORESSAND29~2HPAD ISEC.29 Tl5IN-R94W 11/7/2011

CHARLES BLACKHAWK31-30HPAD ISEC.J I TL48N-R92W 11/812011

SWEETGRASS WOMAN 22-15H PAD ISEC.IS Tl50N-R94W 11/10/2011

BLACKHAWK 1-12H PAD SEC.I TI47N-R93W 11/1512011

ARIKARA 15-22H PAD SEC. 15 TI50N-R93W 11/] 7/20 11

GEORGE EVANS 11-2H PAD SEC. I I TI50N-R92W 11120/2011

BLUE BUITES 3-21 H PAD ISEC. 21 TI49N-R94W 1112412011

LANCE OWNER 26 PAD ISEC. 26 Tl50N-R94W 1112712011

NORTH JOHN ELK 28-27HC ISEC. 28 TI50N-R93W 11/2812011

PAUL PETER COFFEE 35H PAD SEC. 35 T148N-R93W 11/30/2011

WOUNDED FACE IS-15H PAD ISEC-IS T480N-R94W 12/1/2011

FETIIO 6-71-1 PAD EC.6T148N-R94W 12/41201 ]

BENSON 16-3H PAD EC. 3 TI49N-R94W 12/7/2011

GREY WOMAN 4-24H PAD iEC.24 T148N-R93W 1211212011

FOX 14-8H PAD ISEC. 8 TI49N-R93W 12/15/2011

MCKENZIE BAY 19-30H PAD SEC.19 Tl48N-R91 W 12116/2011

GOOD BIRD 36-25H PAD ISEC.36 TI48N-R93W 12/1812011

SARAH YELLOW WOLF 22-27H PAD ISEC. 22 TI49N-R91 W 1212012011

PATRICIA KELLY 2-1H PAD SEC.2 TI50N-R94W 12122/2011

PLENTY SWEETGRASS lS-19H PAD ISEC. 18 Tl49N-R94W 12123/2011

HIDATSA 23-26H PAD ISEC. 23 T150N-R93W 12/3112011

Total Source Locations: 28
Table "\-3 New Emissioll Sources (commencing comtruclion berween January 1,2012 and March 31. 2012)

Total Source Locallons: 6

Source Identification Section. Township. Range Expected

Commence

Construclion

Date

MANDAREE WARRJOR 14~IIH PAD SEC. I I T149N-R94\V 1/8/2012

INDEPENDENCE 2-351-1 PAD SEC2 Tt49N-R93W 1116/2012

WHITE FlNGERNAllS 9H PAD SEC.9 T149N-R91 IV 21712012

CORN STALK 20H PAD SEC.20 T149N-R94W 212012012

COYOTE NECKLACE 24-25H PAD SEC'4 T150N·R9JW 31712012

STI}JK GUN 7-2H PAD SEC. 7T150N-R9IW 3120/2012 .
Tablc A-4 New Emission Sources (commencing construction bel'\·n~en April 1. 2012 211d JUIIC 30, 2012)

Source Idcntific3tion Section, Township, Expected

R:tngc COmmence

ConSlruccion

D2u~

UTILE MO 2o-29H PAD SEC. 20 T148N·R91 W 4/20n012

MAGGIE OLD DOG 19-18H PAD SEC. 19 T150N·R9JW Sn012012

TOlal Source LocatIOns: 2
API'ENDIX n

EMISSION CONTROL REQUIREMENTS

A. ApplJcubl1ily

Thcse requirements apply to existing Ilnd new emission sources I1ssoclnted with oil productIon from

the llakken Fonnation on the Fort Berthold Indian Reservation in North Dakota and target lhe conlTOJ

of 1.:3singhead ga~ emissions (aJso known llS lreater gns) and emissions from oil and produced waler

storoge tanks (tanks),

ll. COlllrol Requirements

All casinghead gas and tl\nk emissions must be controlled or captured IIpon 51aft of production. If gas

~(ttbering infrasttuerurc is in place. casinghead gas shall be cOUled to II gas gathering pipeline lIS soon

as practicable. When II pipeline is not available, ca.'linghead gas is required 10 be roUled 10 n control

system or device In the Control System List oolow. The Control System List also applies to emission.'i

from oil and produced waler storage t3llks. Capture or control devices shall be operated at an times

when emissions may be vented to them.

111c owner/operatol' sh:;all maint:lin and operate till nir pollutiQn concrol equipmenl. lind nil equipment

employed to conlain l1lId collect vapoI'! and transport lhem to lhe emission control system or device..

in D<:cordaoce with me nUlOuracturer's rccommendolions and In nmanner consistent wilh good air

pollution control prncLicc for minimizing emissions.

Control Syslem List

I. A ground pil naro (including, but nOI limited 10 pit nltt'ts. shop buill flares or other sirrular

oilfield type nares) or ottler 90% or gre.lIer ORE devieo. IfII groUlld pit nQfC is utilized, a

90% ORE lO be ll$Humed. This is l,;ollsidcrtd the minimum level of control for 14Uk nnd lrco.ter

gns emissions al nil limes.

2. A vnpor recovery unit or oil stahiliwr that is designed and operated to reduce the mass content

ofVOC and tuwl hazardous air pollutant (HAP) emls~dons in the vapors vented 10 the devk:c

by 3t least 95% by weight

3. An enclosed combustion device appropriatcly sized for the site's oper.uing parameters and for

which the munufllclurer represcnlS will uchitwe a de~lruclion efficiency of tit lclI~t 95% of the

VOCs with respect 10 the volumetric flow and BTU conlent of the sit.e's waste. gas stream. An

enclosed combustion device is opc.nl.loo inclUding, bUI not Ihniled 10 tho following:

• This device shuuld be operJtoo wlU1llo visible emissions except for periods not to

exceed II {olol of 5 minutes during tmy 2 consccutive hours: Method 22 or 40 CPR

Appcndix A sholl be used Lo dClenmne the compliance whh this visible emission

provision.

II
• Owner/operatorshull insmll Rn appropriale, reUoble remperature sensor/lt:msmiuer

that indicate~ continuous ignition of the pilot flame on the control device. The

sensor/transmitter wiJI be connected 00 the site's Supervisory Controll:lRd Data

Acquisition (SCADA) System. The SCAOA system will record temperature readings

at Q specified frequency and will be programmed to trigger nn alann if lompcrarufOs

outside of 11 pre-programmed range are detl.'Cl.t:u. For tht: purpose of this paragraph,

'Icontinuous" monitoring equipment shall mctlSuro nnd record values III least alice

every hour.

4. A utility flare (using an open nome whhout enclosure) that is designed and operated to reduce

lhe mass contcnl of VOC and total HAP emissions in the vapors vented to the device by at

IcaM98% by weight. A utilit), flare is any fll1re Ihal iR designed and operated in llccordanee

with the requirementll of 40 C.F.R § GO.18. Requirements of 40 C.P.R § 60.18 include, hut arc

not limiled 10 the following:

• Flare shall be designed and operalccJ with no visible emissions except for periods not

10 exceed a towl uf 5 minutcs during uny 2 conllcculive hours; Method 22 of 400-1{

Appendix A shaH be used to delemlinc the compliance wilh Ihis visible emission

provision:

• Flare shall be operated wilh u flame present ot all times:

• An owncr/operJror has the choice of adhering 10 either (he heat contentspecification!'

in parngrapb 40 C.ER. § 60. 18(c)(3)(ii) and the tlWtimum tip velocity specifications

in paragraph (c}(4) or adhering to Ihe requiJ'cmenlS in 40 C.F.R. § 6O.18(cX3)(i);

• Flares u!ied to comply Wilh Ihis section shall be st.eatn-assisted. air-assisted or

llunBsslstedj

• Owners/operators of flares shall monitor the control devices to ensure that thcy arc

operalcd and maintained in conformance with their designs:

• The presence of a Dare pilot flame shall be monitored using a thennocouple or any

other equivalent device 10 detect the presence of 11 flame. Continuous checks by an

operator to verify the existence of 11 visible flame or (0 verify proper operation ofthe

igniter may be used in lieu ofII physiclI! device. For lhe purpose of this paragraph,

"continuous" monitoring equipmenl shall measure and record value.. at least ollce

every hour.

• roor safely and air pollution control purposes: each nOire must be equipped and

operated whh lin aulOnllltic ignitor or 11 continuous burning pilot, which muAt be

maintained in gond working order. This is required even if the nare is used for

emcrgency purposes only.

S. Control devices other thnn [hose U,lCd above may be utilizcd upon approvul from the EPA.

C. Rccllrdktepln~'Requirements

1. Owner/operator shull maintain contrul device temperature logs rOT three years.

12
CERTIFICATE OF SERVICE

The undersigned certifies thallhe original of the attached OIIDEI{ GRANTING

ELECTRONIC FILING OF CONSENT AGREEMENT AND FINAL ORDER in the

maller of DAKOTA-3 E&I' COMI'ANY, LLC.; DOCKET NO.: CAA-08-2011-0022, was

tiled with the Regional Hearing Clerk on August 29.2011.

Further, the undersigned certifies that a lrue and correct copy urthe document was

delivered to Jim Eppers. Enforcement Attonlcy, U. S. EPA - Region 8,1595 Wynkoop Str~cl.

Denver. CO 80202·1129. True and correct copies ofthe aforementioned documents were

placed in the United States mail on Augusl29, 2101 t, to:

William K. Stellzel

Vice President - Williston Basin

Dakota-] E&P Co" LLC.

A subsidiary of Williams Production RMT Co.. LLC.

1001 17'h St;eel. uite 1200

Denver, CO K0202

And cmailcd LO:

Eli7..abeth Whitsel

U. S. Environmental ProlcctionAgcncy

Cincinnati Finance Center

26 W. Martin Luther King Drive (MS-0002)

Cincinnati. Ohio 45268

August 29. 20 II ......k~a(.}itd~ Tina Artemis

Paralegal/Regional Ilcaring. Clerk