### United States Environmental Protection Agency Region 8

Air Program

1595 Wynkoop Street
Denver, Colorado 80202

AIR POLLUTION CONTROL

TITLE V PERMIT TO OPERATE

In accordance with the provisions of title V of the Clean Air Act and 40 CFR part 71 and applicable rules

and regulations,

Samson Resources Company

Howard Salt Water Disposal Facility

is authorized to operate air emission units and to conduct other air pollutant emitting activities in

accordance with the permit conditions listed in this permit.

This source is authorized to operate at the following location:

Section 19, Township 34 North, Range 6 West

on the Southern Ute Indian Reservation

La Plata County, Colorado

Terms not otherwise defined in this permit have the meaning assigned to them in the referenced regulations. All terms and conditions of the permit are enforceable by EPA and citizens under the Clean

Air Act (CAA)

,

Callie A.Videtich, Director Date

Air Program

US EPA Region 8

### PAGE INTENTIONALLY LEFT BLANKAIR POLLUTION CONTROL

TITLE V PERMIT TO OPERATE Samson Resources Company Howard Salt Water Disposal Facility

Permit Number: V-SU-0051-10.00 Issue Date: October 28, 2010 Replaces Permit No.: N/A Effective Date: November 8, 2010

Expiration Date: November 8, 2015

The permit number cited above should be referenced in future correspondence regarding this facility.

Permit Issuance History

DATE OF

ISSUANCE TYPE OF

ACTION SECTION

NUMBER

AND TITLE DESCRIPTION OF ACTION

October 2010 Initial Permit

Issuance Permit V-SU-0051-10.00i TABLE OF CONTENTS

Abbreviations and Acronyms

................................................... ..................................................i i

LIST OF TABLES

................................................... ................................................... ................iii

I. Source Information and Emission Unit Identification

................................................... ..... 1

I.A. Source Information

................................................... ................................................ 1

I.B. Source Emission Points

................................................... .......................................... 3

II. Facility-Wide Requirements

................................................... .............................................. 4 II.A. General Recordkeeping Requirements

................................................... .............. 4 II.B. General Reporting Requirements

................................................... ....................... 4

II.C. Permit Shield

................................................... ................................................... ..... 5

III. Part 71 Administrative Requirements

................................................... ............................ 7 III.A. Annual Fee Payment

................................................... ........................................... 7 III.B. Annual Emissions Inventory

................................................... .............................. 9 III.C. Compliance Requirements

................................................... .................................. 9 III.D. Duty to Provide and Supplement Information .................................................. 1 1

III.E. Submissions

................................................... ................................................... ..... 11 III.F. Severability Clause

................................................... ............................................. 12

III.G. Permit Actions

................................................... ................................................... 12

III.H. Administrative Permit Amendments

................................................... ............... 12

III.I. Minor Permit Modifications

................................................... .............................. 13 III.J. Group Processing of Minor Permit Modificatio ns . ............................................ 14 III.K. Significant Permit Modifications

................................................... ..................... 15 III.L. Reopening for Cause

................................................... .......................................... 16 III.M. Property Rights

................................................... ................................................. 16 III.N. Inspection and Entry

................................................... ......................................... 16 III.O. Emergency Provisions

................................................... ....................................... 17 III.P. Transfer of Ownership or Operation

................................................... ............... 17 III.Q. Off Permit Changes

................................................... ........................................... 18 III.R. Permit Expiration and Renewal

................................................... ....................... 18

IV. Appendix

................................................... ................................................... ....................... 20 IV.A. Inspection Information

................................................... ..................................... 20ii

Abbreviations and Acronyms

AR Acid Rain ARP Acid Rain Program

bbls Barrels BACT Best Available Control Technology CAA Clean Air Act [42 U.S.C. Section 7401 et seq.] CAM Compliance Assurance Monitoring CEMS Continuous Emission Monitoring System CFR Code of Federal Regulations CMS Continuous Monitoring System

(includes COMS, CEMS and diluent monitoring) COMS Continuous Opacity Monitoring System

CO Carbon monoxide

CO 2 Carbon dioxide DAHS Data Acquisition and Handling System dscf Dry standard cubic foot dscm Dry standard cubic meter EIP Economic Incentives Programs EPA Environmental Protection Agency FGD Flue gas desulfurization gal Gallon GPM Gallons per minute

H 2 S Hydrogen sulfide

HAP Hazardous Air Pollutant

hr Hour

Id. No. Identification Number kg Kilogram

lb Pound MACT Maximum Achievable Control Technology

MVAC Motor Vehicle Air Conditioner Mg Megagram

MMBtu Million British Thermal Units

mo Month

NESHAP National Emission Standards for Hazardous Ai r Pollutants NMHC Non-methane hydrocarbons

NO

x Nitrogen Oxides

NSPS New Source Performance Standard

NSR New Source Review pH Negative logarithm of effective hydrogen ion co ncentration (acidity)

PM Particulate Matter

PM 10 Particulate matter less than 10 microns in diamet er ppm Parts per million PSD Prevention of Significant Deterioration

PTE Potential to Emit psi Pounds per square inch psia Pounds per square inch absolute RICE Reciprocating Internal Combustion Engine RMP Risk Management Plan scfm Standard cubic feet per minute SNAP Significant New Alternatives Program

SO 2 Sulfur Dioxide tpy Ton Per Year US EPA United States Environmental Protection Agen cy VOC Volatile Organic Compoundsiii LIST OF TABLES

Table 1. Emission Units ...........................

................................................... ...........................................3 Table 2. Insignificant Emission Units.............

................................................... ....................................31 

### I. Source Information and Emission Unit Identification

I.A. Source Information

Parent Company Name: Samson Resources Company

Plant Name: Howard Salt Water Disposal Facility

Plant Location: Section 19, Township 34 North, Range 6 West

Latitude: N 37.173272 Longitude: W 107.54037

Region: 8

State: CO

County: La Plata

Reservation: Southern Ute Indian Reservation

Tribe: Southern Ute Indian Tribe

Responsible Official: Mark Dalton, Attorney-in-Fact

SIC Code: 1311

AFS Plant Identification Number: 08-067-01107

Other Clean Air Act Permits: There are no other Federal Clean Air Act (CAA) pe rmits, such as PSD or minor NSR, issued to this facility.2

Description of Process:

The Howard Salt Water Disposal Facility is a salt w ater disposal facility for nearby oil and gas opera tions. A 691 horsepower Caterpillar 3412TA engine is curre ntly being used to power the generator at the facil ity until line power is installed and operational. Add itional facility equipment includes: four 1,000 bbl water tanks, one 300 gallon lube oil tank, one 500 gallon lube oil tank, one buried, open top 100 bbl sump/s lop tank, one 300 bbl slop tank, and one 500 gallon eth ylene glycol tank.

Natural gas flows into the facility through a pipel ine which runs through a meter and then a small unf ired separator before entering the engine which drives a generator to provide electrical power for the site . Bulk antifreeze and engine oil for the engine is stored onsite in 500 gallon and 300 gallon atmospheric tan ks, respectively.

Produced water flows into the site via pipelines an d trucks. Water goes through a 300 bbl atmospheric settling tank and then is pumped into the four 1,00 0 bbl atmospheric water tanks for storage until it is pumped down the pipeline to the injection well.

There are four electrical pumps on site. Used lubr icating oil that is used on the plungers for these pumps is collected in a 100 bbl atmospheric sump tank whi ch is periodically pumped out by a vacuum truck for disposal. Lube oil is stored onsite in a 500 gallo n atmospheric tank.3

I.B. Source Emission Points

Table 1 - Emission Units

Samson Resources Company, Howard Salt Water Disposa l Facility

Emission

Unit Id. Description Control Equipment

E-101 Caterpillar Reciprocating Engine, Model No. 3412TA, 691 site-rated bhp,

rich-burn, natural gas fired:

Serial No. 7DB01604 Insta lled 12/15/2008 None

Table 2 -- Insignificant Emission Units Samson Resources Company, Howard Salt Water Disposa l Facility

Emission

Unit ID Description

IE-1 1 - 500 gallon lubricating oil storage tank

IE-2 1 - 300 gallon lubricating oil storage tank

IE-3 1 - 500 ethylene glycol storage tank

IE-4

IE-5

IE-6

IE-7 4 – 1,000 bbl produced water storage tanks

IE-8 1 - 300 bbl slop tank
IE-9 1 - 100 bbl buried, open top sump/slop tank4 

### II. Facility-Wide Requirements

Conditions in this section of the permit (Section I I. Facility-Wide or Generic Permit Requirements) ap ply to all emissions units located at the facility, inc luding any units not specifically listed in Table 1 of

Section I.B. [40 CFR 71.6(a)(1)]

II.A. General Recordkeeping Requirements [40 CFR 71.6(a)(3)(ii) and 63.10(b)(3)]

The permittee shall comply with the following gener ally applicable recordkeeping requirements:

1. If the permittee determines that his or her station ary source that emits (or has the potential to emit

, without federally recognized controls) one or more hazardous air pollutants is not subject to a relevant standard or other requirement established under 40 CFR part 63, the permittee shall keep a record of the applicability determination on site at the source for a period of five (5) years after the determination, or until the source changes its operations to become an affected source, whichever comes first. The record of the applicabi lity determination shall include an analysis (or other information) that demonstrates why the permit tee believes the source is unaffected (e.g., because the source is an area source). [40 CFR 63.10(b)(3)]

II.B. General Reporting Requirements [40 CFR 71.6(a)(3)(iii)]

1. The permittee shall submit to the EPA Regional O ffice all reports of any required monitoring under this permit semi-annually. Reports shall be submitted by April 1 st and October 1 st of each year. The first report due on October 31, 2010 sha ll cover the period from the effective date of this permit through August 31 st , 2010. Thereafter, the report due on April 1 st shall cover the six-month period ending on the last day of February before th e report is due. The report due on October 1 st
shall cover the six-month period ending on the last day of August before the report is due. All instances of deviations from permit requirements sh all be clearly identified in such reports. All required reports shall be certified by a responsibl e official consistent with Section III.E. of this permit.

[Explanatory note: To help part 71 permittees meet reporting responsibilities, EPA has developed a for m “SIXMON” for six-month monitoring reports. The for m may be found on the EPA website at: http://www.epa.gov/air/oaqps/permits/p71forms.html ]

2. “Deviation” means any situation in which an emis sions unit fails to meet a permit term or condition. A deviation is not always a violation. A deviation can be determined by observation or through review of data obtained from any testing, m onitoring, or recordkeeping established in accordance with §71.6(a)(3)(i) and (a)(3)(ii). For a situation lasting more than 24 hours which constitutes a deviation, each 24 hour period is con sidered a separate deviation. Included in the meaning of deviation are any of the following:

(a) A situation where emissions exceed an emission limitation or standard;5

(b) A situation where process or emissions control device parameter values indicate that an emission limitation or standard has not been met; o r

(c) A situation in which observations or data coll ected demonstrate noncompliance with an emission limitation or standard or any work practic e or operating condition required by the permit.

3. The permittee shall promptly report to the EPA R egional Office any deviations from permit requirements, including those attributable to upset conditions as defined in this permit, the probable cause of such deviations, and any correcti ve actions or preventive measures taken. “Prompt” is defined as follows:

(a) Any definition of “prompt” or a specific timefr ame for reporting deviations provided in an underlying applicable requirement as identified in this permit; or

(b) Where the underlying applicable requirement fai ls to address the time frame for reporting deviations, reports of deviations will be submitted based on the following schedule:

(i) For emissions of a hazardous air pollutant or a toxic air pollutant(as identified in the applicable regulation) that continue for more t han an hour in excess of permit requirements, the report shall be made within 24 ho urs of the occurrence; (ii) For emissions of any regulated air pollutant, excluding a hazardous air pollutant or a toxic air pollutant that continue for more than t wo (2) hours in excess of permit requirements, the report shall be made within 48 ho urs; and (iii) For all other deviations from permit requirem ents, the report shall be submitted with the semi-annual monitoring.

(c) If any of the conditions in Sections II.B.3(b) (i) and (ii) above are met, the source shall

notify EPA by telephone (1-800-227-8917) or facsimi le (303-312-6064) based on the

timetables listed above. [Explanatory note: Notification by telephone or fa csimile must specify that this notification is a deviation repor t for a part 71 permit.] A written notice, certified consistent with Section III.E of this per mit, shall be submitted within 10 working days of the occurrence. All deviations reported un der this section shall also be identified in the 6-month report required above.

[Explanatory Note: To help part 71 permittees meet reporting responsibilities, EPA has developed a form “PDR” for prompt deviation reporting. The f orm may be found on the EPA website at: http://www.epa.gov/air/oaqps/permits/p71forms.html .]

II.C. Permit Shield [40 CFR 71.6(f)(3)]

1. Nothing in this permit shall alter or affect the following:

(a) The liability of a permittee for any violation of a pplicable requirements prior to or at the time of permit issuance;

(b) The ability of the EPA to obtain information un der Section 114 of the CAA; or6

(c) The provisions of Section 303 of the CAA (emerg ency orders), including the authority of

the Administrator under that section. [40 CFR § 71.6(f)(3)]7 

### III. Part 71 Administrative Requirements

III.A. Annual Fee Payment [40 CFR §71.6(a)(7) and 40 CFR §71.9]

1. The permittee shall pay an annual permit fee in acc ordance with the procedures outlined below.

[40 CFR § 71.9(a)]

2. The permittee shall pay the annual permit fee ea ch year no later than April 1 st . The annual fee due on April 1, 2011 shall be based on the period from 12/1/2009 through 12/31/2010. Thereafter the annual fee shall be based on the previous calendar year (January 1 st – December 31 st ).

[40 CFR § 71.9(h)]

3. The fee payment shall be in United States curren cy and shall be paid by money order, bank draft, certified check, corporate check, or electronic fun ds transfer payable to the order of the U.S. Environmental Protection Agency. [40 CFR § 71.9(k)(1)]

4. The permittee shall send fee payment and a compl eted fee filing form to:

For regular U.S. Postal Service mail For non-U.S. Postal Service express mail (FedEx, Airborne, DHL, and UPS)

U.S. Environmental Protection Agency U.S. Bank FOIA and Miscellaneous Payments Government Lockbox 979078

Cincinnati Finance Center U.S. EPA FOIA & Misc. P ayments
P.O. Box 979078 1005 Convention Plaza St. Louis, MO 63197-9000 SL-MO-C2-GL St. Louis, MO 63101

[40 CFR 71.9(k)(2)]

5. The permittee shall send an updated fee calculat ion worksheet form and a photocopy of each fee payment check (or other confirmation of actual fee paid) submitted annually by the same deadline as required for fee payment to the address listed i n Section III.E. of this permit.

[40 CFR 71.9(h)(1)]

[Explanatory note: The fee filing form “FF” and the fee calculation worksheet form “FEE” may be found on EPA website at: http://www.epa.gov/air/oaqps/per mits/p71forms.html]8

6. Basis for calculating annual fee:

(a) The annual emissions fee shall be calculated by multiplying the total tons of actual emissions of all “regulated pollutants (for fee cal culation)” emitted from the source by the presumptive emissions fee (in dollar s/ton) in effect at the time of calculation.

[40 CFR 71.9(c)(1)]

(i) “Actual emissions” means the actual rate of emi ssions in tpy of any regulated pollutant (for fee calculation) emitted from a part 71 source over the preceding calendar year. Actual emissions shall be calculate d using each emissions units actual operating hours, production rates, in-place control equipment, and types of materials processed, stored, or combusted during th e preceding calendar year.

[40 CFR 71.9(c)(6)]

(ii) Actual emissions shall be computed using metho ds required by the permit for determining compliance, such as monitoring or sourc e testing data.

[40 CFR 71.9(h)(3)]

(iii) If actual emissions cannot be determined usin g the compliance methods in the permit, the permittee shall use other federally rec ognized procedures.

[40 CFR 71.9(e)(2)]

[Explanatory note: The presumptive fee amount is re vised each calendar year to account for inflation, and it is available from EPA prior to the start of each calendar year.]

(b) The permittee shall exclude the following emiss ions from the calculation of fees:

(i) The amount of actual emissions of each regulate d pollutant (for fee calculation) that the source emits in excess of 4,000 tons per year ( tpy); [40 CFR 71.9(c)(5)(i)]

(ii) Actual emissions of any regulated pollutant (f or fee calculation) already included in the fee calculation; and [40 CFR 71.9(c)(5)(ii)]

(iii) The quantity of actual emissions (for fee cal culation) of insignificant activities [defined in §71.5(c)(11)(i)] or of insignificant em issions levels from emissions units identified in the permittee’s application pur suant to §71.5(c)(11)(ii).

[40 CFR 71.9(c)(5)(iii)]9

7. Fee calculation worksheets shall be certified as to truth, accuracy, and completeness by a responsible official. [40 CFR 71.9(h)(2)]

[Explanatory note: The fee calculation worksheet fo rm already incorporates a section to help you meet this responsibility.]

8. The permittee shall retain fee calculation works heets and other emissions-related data used to determine fee payment for 5 years following submitt al of fee payment. [Emission-related data include, for example, emissions-related forms provi ded by EPA and used by the permittee for fee calculation purposes, emissions-related spreadsheet s, and emissions-related data, such as records of emissions monitoring data and related support in formation required to be kept in accordance with §71.6(a)(3)(ii).] [40 CFR 71.9(i)]

9. Failure of the permittee to pay fees in a timely manner shall subject the permittee to assessment o f penalties and interest in accordance with §71.9(l). [40 CFR 71.9(l)]

10. When notified by EPA of underpayment of fees, t he permittee shall remit full payment within 30 days of receipt of notification. [40 CFR 71.9(j)(2)]

11. A permittee who thinks an EPA assessed fee is i n error and who wishes to challenge such fee, shall provide a written explanation of the alleged error to EPA along with full payment of the EPA

assessed fee. [40 CFR 71.9(j)(3)]

III.B. Annual Emissions Inventory [40 CFR 71.9(h)(1)and (2)]

The permittee shall submit an annual emissions repo rt of its actual emissions for both criteria pollut ants and regulated HAPs for this facility for the preced ing calendar year for fee assessment purposes. The annual emissions report shall be certified by a res ponsible official and shall be submitted each year to EPA by April 1 st starting the calendar year 2011. The annual emissi ons report shall be submitted to EPA at the address listed in Section III.E of this perm it.

[Explanatory note: An annual emissions report, requ ired at the same time as the fee calculation worksheet by §71.9(h), has been incorporated into t he fee calculation worksheet form as a convenience. ]

III.C. Compliance Requirements

1. Compliance with the Permit

(a) The permittee must comply with all conditions o f this part 71 permit. Any permit noncompliance constitutes a violation of the CAA an d is grounds for enforcement action; for permit termination, revocation and reissuance, or modification; or for denial of a permit renewal application. [40 CFR 71.6(a)(6)(i)]10

(b) It shall not be a defense for a permittee in an enforcement action that it would have been necessary to halt or reduce the permitted activity in order to maintain compliance with the conditions of this permit. [40 CFR 71.6(a)(6)(ii)]

(c) For the purpose of submitting compliance certif ications in accordance with Section III.C.3 of this permit, or establishing whether or not a pe rson has violated or is in violation of any requirement of this permit, nothing shall preclude the use, including the exclusive use, of any credible evidence or information, relevant to w hether a source would have been in compliance with applicable requirements if the appr opriate performance or compliance test or procedure had been performed.

[Section 113(a) and 113(e)(1) of the Act, 40 CFR 51 .212, 52.12, 52.33, 60.11(g), and 61.12]

2. Compliance Schedule

(a) For applicable requirements with which the sour ce is in compliance, the source will continue to comply with such requirements. [40 CFR 71.5(c)(8)(iii)(A)]

(b) For applicable requirements that will become ef fective during the permit term, the source shall meet such requirements on a timely basis. [40 CFR 71.5(c)(8)(iii)(B)]

3. Compliance Certifications

(a) The permittee shall submit to EPA a certificati on of compliance with permit terms and conditions, including emission limitations, standar ds, or work practices annually on April 1 st . The first certification of compliance shall cove r the period from the effective date of this permit through the end of August 2010. Thereafter, the certification of compliance shall be submitted annually by April 1 st , and shall cover the 12 month period ending on the last day of February of the calendar year in which the certification of compliance is due. The compliance certification sh all be certified as to truth, accuracy, and completeness by a responsible official consistent w ith §71.5(d). [40 CFR 71.6(c)(5)]

(b) The compliance certification shall be certified as to truth, accuracy, and completeness by a responsible official consistent with §71.5(d). [40 CFR 71.6(c)(5)]

(c) The certification shall include the following:

(i) Identification of each permit term or condition tha t is the basis of the certification;

(ii) The identification of the method(s) or other means used for determining the compliance status of each term and condition during the certification period, and11 whether such methods or other means provide continu ous or intermittent data. Such methods and other means shall include, at a mi nimum, the methods and means required in this permit. If necessary, the p ermittee also shall identify any

other material information that must be included in the certification to comply with section 113(c)(2) of the CAA, which prohibits knowi ngly making a false certification or omitting material information;

(iii) The status of compliance with each term and conditi on of the permit for the period covered by the certification shall be based on the method or means designated in Section III.C.3(c)(ii) above. The certification sh all identify each deviation and take it into account in the compliance certification;

(iv) Such other facts as the EPA may require to determin e the compliance status of the source; and

(v) Whether compliance with each permit term was contin uous or intermittent.

[40 CFR 71.6(c)(5)(iii)]

[Explanatory note: To help part 71 permittees meet reporting responsibilities, EPA has developed a reporting form for annual compliance certifications . The form may be found on EPA website at: http://www.epa.gov/air/oaqps/permits/p71forms.html ]

III.D. Duty to Provide and Supplement Information [40 CFR 71.6(a)(6)(v), 71.5(a)(3), and 71.5(b)]

1. The permittee shall furnish to EPA, within a rea sonable time, any information that EPA may request in writing to determine whether cause exist s for modifying, revoking, and reissuing, or terminating the permit, or to determine compliance with the permit. Upon request, the permittee shall also furnish to the EPA copies of records tha t are required to be kept pursuant to the terms of the permit, including information claimed to be con fidential. Information claimed to be confidential must be accompanied by a claim of conf identiality according to the provisions of 40 CFR part 2, subpart B. [40 CFR 71.6(a)(6)(v) and 40 CFR 71.5(a)(3)]

2. The permittee, upon becoming aware that any rele vant facts were omitted or incorrect information was submitted in the permit application, shall prom ptly submit such supplementary facts or corrected information. In addition, a permittee sh all provide additional information as necessary to address any requirements that become applicable aft er the date a complete application is filed, but prior to release of a draft permit. [40 CFR 71.5(b)]

III.E. Submissions [40 CFR 71.5(d), 71.6(c)(1) and 71.9(h)(2)]

1. Any document (application form, report, complian ce certification, etc.) required to be submitted under this permit shall be certified by a responsib le official as to truth, accuracy, and completeness. Such certifications shall state that based on information and belief formed after reasonable inquiry, the statements and information in the document are true, accurate, and complete.12

[Explanatory note: EPA has developed a reporting fo rm “CTAC” for certifying truth, accuracy and completeness of part 71 submissions. The form may be found on EPA website at: http://www.epa.gov/air/oaqps/permits/p71forms.html ]

2. Any documents required to be submitted under thi s permit, including reports, test data, monitoring data, notifications, compliance certifications, fee calculation worksheets, and applications for renewals and permit modifications shall be submitte d to:

Part 71 Permit Contact

Air Program, 8P-AR U.S. Environmental Protection Agency, 1595 Wynkoop Street Denver, Colorado 80202-1129

III.F. Severability Clause [40 CFR 71.6(a)(5)]

The provisions of this permit are severable, and in the event of any challenge to any portion of this permit, or if any portion is held invalid, the remaining pe rmit conditions shall remain valid and in force.

III.G. Permit Actions [40 CFR 71.6(a)(6)(iii)]

This permit may be modified, revoked, reopened, and reissued, or terminated for cause. The filing of a request by the permittee for a permit modification, revocation and reissuance, or termination, or of a notification of planned changes or anticipated nonc ompliance does not stay any permit condition.

III.H. Administrative Permit Amendments [40 CFR 71.7(d)]

1. The permittee may request the use of administrat ive permit amendment procedures for a permit

revision that:

(a) Corrects typographical errors;

(b) Identifies a change in the name, address, or ph one number of any person identified in the permit, or provides a similar minor administrative change at the source;

(c) Requires more frequent monitoring or reporting by the permittee;

(d) Allows for a change in ownership or operational control of a source where the EPA determines that no other change in the permit is ne cessary, provided that a written agreement containing a specific date for transfer o f permit responsibility, coverage, and liability between the current and new permittee has been submitted to the EPA;

(e) Incorporates into the part 71 permit the requir ements from preconstruction review permits authorized under an EPA-approved program, provided that such a program meets procedural requirements substantially equivalent to the requirements of §§71.7 and 71.813 that would be applicable to the change if it were s ubject to review as a permit modification, and compliance requirements substantially equivalen t to those contained in §71.6; or

(f) Incorporates any other type of change which EPA has determined to be similar to those listed above in subparagraphs (a) through (e) above.

[Explanatory note: If subparagraphs (a) through (e) above do not apply, please contact EPA for a determination of similarity prior to submitting you r request for an administrative permit amendment under this provision.]

III.I. Minor Permit Modifications [40 CFR 71.7(e)(1)]

1. The permittee may request the use of minor permi t modification procedures only for those

modifications that:

(a) Do not violate any applicable requirement;

(b) Do not involve significant changes to existing monitoring, reporting, or recordkeeping requirements in the permit;

(c) Do not require or change a case-by-case determi nation of an emission limitation or other standard, or a source-specific determination for te mporary sources of ambient impacts, or a visibility or increment analysis;

(d) Do not seek to establish or change a permit ter m or condition for which there is no corresponding underlying applicable requirement and that the source has assumed to avoid an applicable requirement to which the source would otherwise be subject. Such terms and

conditions include:

(i) A federally enforceable emissions cap assumed t o avoid classification as a modification under any provision of title I; and (ii) An alternative emissions limit approved pursua nt to regulations promulgated under Section 112(i)(5) of the CAA;

(e) Are not modifications under any provision of ti tle I of the CAA; and

(f) Are not required to be processed as a significa nt modification. [40 CFR 71.7(e)(1)(i)(A)]

2. Notwithstanding the list of changes ineligible f or minor permit modification procedures above, minor permit modification procedures may be used fo r permit modifications involving the use of economic incentives, marketable permits, emissions trading, and other similar approaches, to the extent that such minor permit modification procedur es are explicitly provided for in an applicable implementation plan or in applicable requirements p romulgated by EPA.

[40 CFR 71.7(e)(1)(i)(B)]14

3. An application requesting the use of minor permi t modification procedures shall meet the requirements of §71.5(c) and shall include the foll owing:

(a) A description of the change, the emissions resu lting from the change, and any new applicable requirements that will apply if the chan ge occurs;

(b) The source's suggested draft permit;

(c) Certification by a responsible official, consis tent with §71.5(d), that the proposed modification meets the criteria for use of minor pe rmit modification procedures and a request that such procedures be used; and

(d) Completed forms for the permitting authority to use to notify affected States as required under §71.8. [40 CFR 71.7(e)(1)(ii)]

4. The source may make the change proposed in its m inor permit modification application immediately after it files such application. After the source makes the change allowed by the preceding sentence, and until the permitting author ity takes any of the actions authorized by §71.7(e)(1)(iv)(A) through (C), the source must com ply with both the applicable requirements governing the change and the proposed permit terms and conditions. During this time period, the source need not comply with the existing permit ter ms and conditions it seeks to modify. However, if the source fails to comply with its proposed per mit terms and conditions during this time period, the existing permit terms and conditions it seeks t o modify may be enforced against it.

[40 CFR 71.7(e)(1)(v)]

5. The permit shield under §71.6(f) may not extend to minor permit modifications.

[40 CFR 71.7(e)(1)(vi)]

III.J. Group Processing of Minor Permit Modificatio ns . [40 CFR 71.7(e)(2)]

1. Group processing of modifications by EPA may be used only for those permit modifications:

(a) That meet the criteria for minor permit modific ation procedures under Section III.I of this permit; and

(b) That collectively are below the threshold level of 10 percent of the emissions allowed by the permit for the emissions unit for which the cha nge is requested, 20 percent of the applicable definition of major source in §71.2, or 5 tpy per year, whichever is least.

[40 CFR 71.7(e)(2)(i)]

2. An application requesting the use of group proce ssing procedures shall be submitted to EPA, shall meet the requirements of §71.5(c), and shall includ e the following:15

(a) A description of the change, the emissions resu lting from the change, and any new applicable requirements that will apply if the chan ge occurs;

(b) The source's suggested draft permit;

(c) Certification by a responsible official, consis tent with §71.5(d), that the proposed modification meets the criteria for use of group pr ocessing procedures and a request that such procedures be used;

(d) A list of the source's other pending applicatio ns awaiting group processing, and a determination of whether the requested modification , aggregated with these other applications, equals or exceeds the threshold set u nder subparagraph (a)(ii) above; and

(e) Completed forms for the permitting authority to use to notify affected States as required under §71.8. [40 CFR 71.7(e)(2)(ii)]

3. The source may make the change proposed in its m inor permit modification application immediately after it files such application. After the source makes the change allowed by the preceding sentence, and until the permitting author ity takes any of the actions authorized by §71.7(e)(1)(iv)(A) through (C), the source must com ply with both the applicable requirements governing the change and the proposed permit terms and conditions. During this time period, the source need not comply with the existing permit ter ms and conditions it seeks to modify. However, if the source fails to comply with its pro posed permit terms and conditions during this time period, the existing permit terms and conditio ns it seeks to modify may be enforced against it.

[40 CFR 71.7(e)(2)(v)]

4. The permit shield under §71.6(f) may not extend to group processing of minor permit

modifications. [40 CFR 71.7(e)(2)(vi)]

III.K. Significant Permit Modifications [40 CFR 71.7(e)(3)]

1. The permittee must request the use of significan t permit modification procedures for those

modifications that:

(a) Do not qualify as minor permit modifications or as administrative amendments;

(b) Are significant changes in existing monitoring permit terms or conditions; or

(c) Are relaxations of reporting or recordkeeping p ermit terms or conditions.

[40 CFR 71.7(e)(3)(i)]16

2. Nothing herein shall be construed to preclude th e permittee from making changes consistent with part 71 that would render existing permit complianc e terms and conditions irrelevant.

[40 CFR 71.7(e)(3)(i)]

3. Permittees must meet all requirements of part 71 for applications, public participation, and review by affected states and tribes for significant permi t modifications. For the application to be determined complete, the permittee must supply all information that is required by §71.5(c) for permit issuance and renewal, but only that informat ion that is related to the proposed change.

[40 CFR 71.7(e)(3)(ii), 71.8(d), and 71.5(a)(2)]

III.L. Reopening for Cause [40 CFR 71.7(f)]

1. The permit may be reopened and revised prior to expiration under any of the following

circumstances:

(a) Additional applicable requirements under the Ac t become applicable to a major part 71 source with a remaining permit term of 3 or more ye ars. Such a reopening shall be completed not later than 18 months after promulgati on of the applicable requirement. No such reopening is required if the effective date of the requirement is later than the date on which the permit is due to expire, unless the origi nal permit or any of its terms and conditions have been extended pursuant to §71.7(c) (3);

(b) Additional requirements (including excess emiss ions requirements) become applicable to an affected source under the acid rain program. Up on approval by the Administrator, excess emissions offset plans shall be deemed to be incorporated into the permit;

(c) EPA determines that the permit contains a mater ial mistake or that inaccurate statements were made in establishing the emissions standards o r other terms or conditions of the permit; or

(d) EPA determines that the permit must be revised or revoked to assure compliance with the applicable requirements.

III.M. Property Rights [40 CFR 71.6(a)(6)(iv)]

This permit does not convey any property rights of any sort, or any exclusive privilege.

III.N. Inspection and Entry [40 CFR 71.6(c)(2)]

Upon presentation of credentials and other document s as may be required by law, the permittee shall allow EPA or an authorized representative to perfor m the following:

1. Enter upon the permittee’s premises where a part 71 source is located or emissions-related activity is conducted, or where records must be kept under t he conditions of the permit;17

2. Have access to and copy, at reasonable times, an y records that must be kept under the conditions of the permit;

3. Inspect at reasonable times any facilities, equi pment (including monitoring and air pollution control equipment), practices, or operations regula ted or required under the permit; and

4. As authorized by the CAA, sample or monitor at r easonable times substances or parameters for the purpose of assuring compliance with the permit or a pplicable requirements.

III.O. Emergency Provisions [40 CFR 71.6(g)]

1. In addition to any emergency or upset provision con tained in any applicable requirement, the permittee may seek to establish that noncompliance with a technology-based emission limitation under this permit was due to an emergency. To do s o, the permittee shall demonstrate the affirmative defense of emergency through properly s igned, contemporaneous operating logs, or

other relevant evidence that:

(a) An emergency occurred and that the permittee ca n identify the cause(s) of the emergency;

(b) The permitted facility was at the time being pr operly operated;

(c) During the period of the emergency the permitte e took all reasonable steps to minimize

levels of emissions that exceeded the emissions sta ndards, or other requirements in this permit; and

(d) The permittee submitted notice of the emergency to EPA within 2 working days of the time

when emission limitations were exceeded due to the emergency. This notice must contain a description of the emergency, any steps taken to mitigate emissions, and corrective actions taken. This notice fulfills the requiremen ts for prompt notification of deviations.

2. In any enforcement preceding the permittee attem pting to establish the occurrence of an emergency has the burden of proof.

3. An “emergency” means any situation arising from sudden and reasonably unforeseeable events beyond the control of the source, including acts of God, which situation requires immediate corrective action to restore normal operation, and that causes the source to exceed a technologybased emission limitation under the permit due to u navoidable increases in emissions attributable to the emergency. An emergency shall not include n oncompliance to the extent caused by improperly designed equipment, lack of preventive m aintenance, careless or improper operation,
or operator error.

III.P. Transfer of Ownership or Operation [40 CFR 71.7(d)(1)(iv)]

A change in ownership or operational control of thi s facility may be treated as an administrative perm it amendment if the EPA determines no other change in this permit is necessary and provided that a writte n agreement containing a specific date for transfer o f permit responsibility, coverage, and liability be tween the current and new permittee has been submitted to EPA.18

III.Q. Off Permit Changes [40 CFR 71.6(a)(12) and 40 CFR 71.6(a)(3)(ii)]

The permittee is allowed to make certain changes wi thout a permit revision, provided that the followin g requirements are met:

1. Each change is not addressed or prohibited by th is permit;

2. Each change shall meet with all applicable requi rements and shall not violate any existing permit term or condition;

3. Changes under this provision may not include cha nges subject to any requirement of 40 CFR parts 72 through 78 or modifications under any provision of Title I of the CAA;

4. The permittee must provide contemporaneous writt en notice to EPA of each change, except for changes that qualify as insignificant activities un der §71.5(c)(11). The written notice must describe each change, the date of the change, any c hange in emissions, pollutants emitted, and any applicable requirements that would apply as a resul t of the change;

5. The permit shield does not apply to changes made under this provision; and

6. The permittee must keep a record describing all changes that result in emissions of any regulated air pollutant subject to any applicable requirement not otherwise regulated under this permit, and the emissions resulting from those changes.

7. The notice shall be kept on site and made available to EPA on request, in accordance with the general recordkeeping provision of this permit.

8. Submittal of the written notice required above shal l not constitute a waiver, exemption, or shield from applicability of any applicable standard or PS D permitting requirements under 40 CFR 52.21 that would be triggered by the replacement of any o ne emission unit, or by replacement of multiple

emission units.

III.R. Permit Expiration and Renewal [40 CFR 71.5(a)(1)(iii), 71.5(a)(2), 71.5(c)(5), 71.6(a)(11), 71.7(b), 71.7(c)(1), and 71.7(c)(3)]

1. This permit shall expire upon the earlier occurr ence of the following events:

(a) Five (5) years elapse from the date of issuance ; or

(b) The source is issued a part 70 or part 71 permi t under an EPA approved or delegated permit program. [40 CFR 71.6(a)(11)]

2. Expiration of this permit terminates the permitt ee’s right to operate unless a timely and complete permit renewal application has been submitted at le ast 6 months but not more than 18 months prior to the date of expiration of this permit. [40 CFR 71.5(a)(1)(iii)]19

3. If the permittee submits a timely and complete p ermit application for renewal, consistent with §71.5(a)(2), but EPA has failed to issue or deny th e renewal permit, then all the terms and conditions of the permit, including any permit shie ld granted pursuant to §71.6(f) shall remain in effect until the renewal permit has been issued or denied. [40 CFR 71.7(c)(3)]

4. The permittee’s failure to have a part 71 permit is not a violation of this part until EPA takes fi nal action on the permit renewal application. This pro tection shall cease to apply if, subsequent to the completeness determination, the permittee fails to submit any additional information identified as being needed to process the application by the dead line specified in writing by EPA.

[40 CFR 71.7(b)]

5. Renewal of this permit is subject to the same pr ocedural requirements that apply to initial permit issuance, including those for public participation, affected State, and tribal review.

[40 CFR 71.7(c)(1)]

6. The application for renewal shall include the cu rrent permit number, description of permit revisions and off permit changes that occurred duri ng the permit term, any applicable requirements that were promulgated and not incorporated into the permit during the permit term, and other information required by the application form. [40 CFR 71.5(a)(2) and 71.5(c)(5)]20 

### IV. Appendix

IV.A. Inspection Information

1. Driving Directions

To get to the Howard Salt Water Disposal Facility f rom Bayfield, CO: drive south on Buck Highway/County Road 521 approximately 3 miles to Co unty Road 523. Go south on County Road 523 for about 0.75 miles. Turn left (ea st) onto a dirt road and go about a half a mile, then turn left (north) and travel about 0.1 miles t o the facility. The facility is a little over a ha lf mile from County Road 523.

2. Global Positioning System (GPS):

Latitude: N 37.173272 Longitude: W 107.54037

3. Safety Considerations:

A site visit requires steel toe boots, hard hat, sa fety glasses, and hearing protection.