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...........t-.a.-="'-------ADMINlSTRATIVE COMPLAINT AND 0 E T GREEME T ENCY 

## 2 T.D T TE ENvmONMENTALPROTE TION

### A 1 Docket No. CAA-08-2011_ 0020 

### In lht: Matter of; ) ) 

### KODlAK OIL & 

### GAS (USA) INC. ) ) 

### Respondent. AUTHORITY The United Slnles Environmental Protection**Agency~** Region 8 (EPA or omplainanl) 

### is issuing 

### this Administrative Complaint and Consent

### Agreement (Agreemeot) to Kodiak Oil & Gas (USA) 

### Inc. (Respondent) 

### pursuant to Sections lI3(n)(3) Elod l13(d)(1) of

### the Clean AirAct (CAA or 

### theAcl), 42 U.S.C. §7413(a)(3) and § 7413(d)(J). The Administrator ofLhe EPA has Lbe 

### authority La 

### enter into this 

### Agreement and thai authority has beenpropedy delegated to tile 

### Wldcrsign dEPA offi inl. A. 'TATUTORY AND RE ULATORY BACK ROUND 

### 1. On June 19, 1978, EPA promulgated thePr vention 

### ofSignificant 

### Deterioration (P D) regulations pursuant to Subtitle I, Part C ofthe Act. 43 Fed. 

### Reg. 26403. EPArev1sed thePSD regulations on 

### several occa$ious including August 7, 1980 

### (45 

### Fed. Reg. 52676) 

### and December31 2002 

### (67 Fed. Reg. 80186). 

### Tllest: regulations are codified at 40 C.F.R. Part52. 2. Terms u ed in this Af,'1'cement that 

### arc defined in the Act

### or in regulations 

### prom\llgated pursuantto the 

### A lhetll 

### huv

.**Ul~** meanings

.. 

### signed to them therein, un! 55 otberwi e

### provided in 

### this Agreement. 3. The emission so rees to 

### which this Agreement relates arc in "Indian country" as defined at 18 U. §

### 11 51. The 

### location ofthe missiou SOLUces areidentified in 

### Appendix A. 4. Section l65(a) ofthe Act 42 U

..

### c. § 7475(a), and thePSD 

### regulations implementingPart C at 40 

### \f.l

. § 52.21**(a)(2)(iii)~** prohibit amajol' stationary sow'ce from commencing 

### construction ormajo

. modification ofa major stationary 

### source without

### a pelmit

### which states that

### the major stationary 

### source

r

### modification would meet the requirements of40 .f.R. 

### § 52.21 U) through (1'). 5. 40**~.F.R.** §52.21 (b)(5) defmcs a "stationary 

### source)' as, any 

### building1 •

### tructw'e, facility r**in~tallation** which emits or

### may emit a regulated PSD

### lJOUutaut. 6. 40 C.F.R. § 52.21 (b)(l)(i)(b) defines a**~'major** stationary source" as, amO/lg other things, any stationary 

### saurc Lual 

### t;mits rhas thepotential to mit 2 0tons pCI'

### year or mOl'e 

### ofanyregulated P 0 

### pollutant 7. On 

### July I 2011, 

### EPApromulgated 

### nnal rules 

### titled "Rcvic'f ofN 

### v ourccs and Modifi 

### ations 

### in 

### Indian Country." (Tribal 

### MinorNSR Rule) 76 

### Fed. Reg. 38748-808 (July 1,2011) (to be codified at40

.F.R. 

### urts 49 und 51). The 

### fmaJ rules are effecLive on ugu 

### l30, 2011.76 Fed. eg. at 38748. Once effective) the l1l1es allow, among oUler things, for a synthetic

### minor source permit to be issued to anotherwise major source that has taken arestriction, enforceable as alegal and practical matter, so that**th~** sourcc's potcntio.lto emil is Jess than thc amounts for major sources. 

### 8. This proceeding 

### is governed 

### by the Consolidated Rules ofPractice Governing the Admin.istrative AssessmentofCivilPenalties, and the Revocation, Termination or Suspension ofPemlits (Consolidated Rult=s) set fortb at 

### 40 C.F.R. Part 22. The

### U.S. Department ofJustice has concurred with 

### EPA Region 8's requl::st for authorization to commence an administrative enforcementaction in tbis matter. 

### 9. This Agreement is voluntarily entered into 

### by the 

### EPA and theRespondent for the purpose of simuhuneollsly commencing and conchldillg this matter, 

### as uuthorized 

### by 40 C.F.R. 

### §22.13(b), 

### and executed pursuant to 40 C.F.R. § 22.18(b)(2) and (3) ofthe Consolidated Rules. B. INTRODUCTOIlY PROVISIONS 

### 1. This Agreement addresses 

### aunique situation in that the Respondent is unable to obtain 

### an effective synlhttie mino!' sow'eepermit 

### from EPA 

### priolo to commencing construction because, pursuant to the new Tribal Minor

### NSRRule, the authority to issue such pennits begins August 

### 3D, 201 1. 2. This Agreement is entered into by

### EPA and Respondent 10 setlJe alleged violations and allow Respondents to comply as expeditimlsly as possible with the requirements ofthe

## eAA, specifically PSD, 

### ofcertain BakkenFormation Oil and Gas Emission Sources (emission soW'ccs) owned and/or operated by Respondent, located within the exteriorboundaries ortile Fort Berthold Indian Reservation in North Dakota as described in Appendix A. 

### 3. Respondent admits thejurisdictional allegations in this Agreement but does 

### not admit the specific factual allegations or legal conclusions made by the Complainal1l herein. 4. Respondent wuives its rights to uhearing before noy tribwlal and to contest ullY issue oflnw C)!' fact set. 

### forth in this Agreement. 5. Complainant asserts that settlement 

### ofthis matter is in the public interest. Complainantand Respondent agree thatresoJving litis matterwithout further litigation and without adjl1dication ofnny issue offactor law is appropriate. 6. This Agreement, which includes Appendices A and B, upon incorporation into aFinal Order, applies [0 

### and is binding 

### upon EPA and 

### upon Respondem, and Respondent's officers, directors, employees, agents, successors and assigns. 7. This Agreement contains all terms ofthe settlement agreed 

### to by the EPA and Respondent.

C. ALLEGED VIOLATIONS

21. Respondent is a Colorado corporation and therefore a "person" as defined in section 302(e) ofthe CAA, 

### 42

### U. .C. 

### § 7602«). 2. Respondent owns undlor operates the emission sources described 

### in Appendjx A. 3. Complainant alleges that Respondent violated the CAA by construcling each ofthe major stutionary sources identified in Appendix A. Table A-l without first obtaining a PSD permitpursuantto 40 C.F.R. § 

### 52.21. D. REQUIREMENTS UNDER THIS AGREEMENT 

### The EPA and Respondent, 

### by 

### U1Cir lUldel'signed represcntatives, hereby eonselll and ftgree as follows: I. Pcnnitting

a. Within one year ofthe effective date ofthis Agrcement, for all Existing Emission Sources listed in Appendix A. Table A·1. Respondent shall submit to EPA a complete synthetic minor source pemlit application under EPA '5 Tribal MinorNSR Rule. IfRespondent detcrmincs that an emission source was incorrectly included in Appendix A. Table A-I, it may notify EPA ofthut fact 

### by October 14. 2011. In this circwnslance. Paragraph F.13 below shall apply. b, By October 1,2011, Respondent shall submitto EPA Ii complete synthetic minor source permit application for New Emission Sources listed in Appendix A, Table A-2 that will commence constnlclloll during the period 5tartingAugus! 31, 2011, and ending Dccember 31, 201 

### J. c. By November 1, 2011, Respondent shall submit to EPA a complete synthetic minor source pennit application lorNew Emission Sources**Ii~tcd** in Appendix A, Table A-3 thut will commence construction during the period starting January 1,2012, and cnding March 31, 2012. d, Oy January 

### It 2012. Rcspondent shall submit to EPA a complete synthetic minor source permit application for New Emission Sources listed in Appendix A, Table A-4 that

### will commence construction during the period starting April 1, 2012, and ending Junc 30, 2012. e. Any emission sources for which construction will commence after ltme 30, 2012, arc not subject 10 this Agrccment and Respondent must obtain an effective synthetic minor source pennit from EPA or comply with the provisions of40 C.P.R. § 52.21 priorto commcncing construction. 

### f, Inclusion ofan emission tiource listed in Appendix A, TableA·2, A-3 or A-4 docs not prccillde Respondent from commencing construction ofthat emission source after the date specified in the relevant Paragraph D.l.b,e, and d above However, all such emission sources mllst commenceconstruction priorto June 30, 2012. g. Ifthosc emission sources listed in Appendix A, Tables A·2, A-3, and/or A-4 do not commence construction by JUlIe 30. 2012, then they arc thcreforenot subject to Section 0 ofthis Agreement.

### 2. Control Requiremems

a. 

### For all 

### ExistingEmission Sources listed in Appendix A, 

### Table A-I, 

### the Respondent shaJl comply with therequirements ofAppendix Bby no laterIhnn December 1,2011. b. Forall NewEmi5sion Sources listed in 

### Appendix A, Tablc5 A-2, A-3, and A-4 the Respondent shall comply with the rcquirements ofAppendix Rupon**slart~up** 

### ofproduction. Emission sources thatreceive tlO 

### effective synthetic minor source pennit beforecommencing construction arc not subject to lhe requirements ofthis Agreement. 3. 

### Notification Respondent shall notify the EPA on the last business day ofeach month ofall ofthe emission sources subject to this Agreement tllatcommenceconstruction in the previous month. Respondent shall also notify the EPA 

### whether Ihoseemission sourCeS are mecting 

### the control requirements as required by 

### Appendix 0 and whetherthey havereceived an effective synthetic minor source permit. This notice shHll also include alist ofemissions sources lhat are removing a98% control device and using 8 

### 90% control device as outlined in Appendix Jl 

### Unless othenvise specified herein, whenever Respondent's notification, submissions, or communication arc required by this Agreement, they Shllll 

### bemade: electronicallyormailed to the follOWing: CynthiaJ. 

### Reynolds, Director U.S. EPA Region H(8ENF-AT) 

### Ail' & 

### Taxies Technical Enforcement Progmm 1595 Wynkoop SI. Deover, CO 80208-1129 

### reyoolds.cynthill@epa.gov F.. ClVI.L PF.NALTY 

### 1. Pursuant to an amtlysis oftlle facls and circumstances ofthis case with the SUltUIOry 

### ractors described in section 113(d)(I)(B) ofthe CM, 43 U.S.C. §7413(d)(I)(B), EPA has detennined that an appropriate 

### civil penalty to settle this action is lhe amount of$3,000 peremission source listed in Appendix A for l1 lotal ofFifty-Seven Thousand Dollars ($57,000,00). 

### 2. Respondent consents to the issuance ofaFinal Order and consents for thepurpose ofseulementto the payment ofthe eivil penally in the mannerdescribed below in this paragraph:

a. Payment is due within 90 calendardays from the date oftheFinal Order, to be issued by the EPA's Regional Judicial Officer, thal adopts this Administrative Complaint and Consent Agreement. Iftlil: 

### due date ralls on aweekend or legal fedeml holiday, thenthc due dale becomes the next business day. TIledate the payment is made is considered to bethe date 4

### processed by the Bank described below. Payments reccived by 11 :00 AM arc processed on the next business day. b. The payment shall he made by remitting a cashier's orcertified check, including the name and docket nwnberofthis case, for Ihe ealc\llalCd amount, payable to "Treasurer, UnHed States or 

### America,,' 10: 

### CHECK PA

### YMENT: US Environmental ProtectionAgency 

### Fines and Pcnahics CincillJ]ati Finance Center 

### PO Box979077 SI. 

### Louis, MO 63197-9000 OVERNlGIITMAIL: U.S. Bank 1005 Convention Plaza M.i1 

### Station L·MO·C2GI. RI. 

### Louis, MO 6310I Contact: Natalie Pearson 

### 314-418-4087 WIRETRANSFER: 

### WireTransfers should 

### be direcled to 

### the Fcdcrul Reserve 

### Dank ofNew York Fedcml Reserve Dank ofNew YoLk ABA = 

### 021030004 Account 68010727 SWIFT

### address -FRNYUS33 

### 33 Liberty 

### Sirect Ncw York,NY 10045 Field Tag 4200 ofthe Fcdwire message should read AD 6801727 Environmental Protectioll Agency ACH (also known as REX orremittance express): Automated Clearinghouse (ACH) for receiving US currency 

### PNCBank 808 17mStreet, NIV Washington, 

### DC 20074 

### Contact BJesse While 301·887-6548 ARA = 

### 051036706, Transaction Coue 22- checking Environmental ProtectionAgency, Account31 0006, 

## eTX Format 

### ON-LINE PAYMENT: 

### There is now an On Line Payment Option, available: lhrough the Dept. ofTreasury. This paymcl1l 5

### option ean be accessed from the infomlation below: www.pay.gov Entersfo 1.1 in thc search field. Opcn form lind complete required fields. A copy ofthe check, OJ' 

### wire transfer, shall be sent simultancously to: Alexis North (8ENF-AT) 

### U.S. EPA Region 8 Technical Enforcement

### Program 1595 Wynkoop St. Denver, CO H0202-1129 and 

### Tinu Artemis Region.1 Hearing Clerk (8RC) U.S. EPA Region 8 1595 Wynkoop St. Denwr, CO 80202-1129

e. Payment afthepenalty in this manncrdoes not relieve Respondentofits obligalion to comply with the requirements ofthe

## eAA and its regulations. F. GENERAL 

### PROVISIONS I. Thc emissions controls required in Appendix Bunderthis Agreement shall bc considered "federally enforceable" and, as applicable, "legally (\nd practicablyenforceable" for purposes ofealcuhuillgthe potential to emit for the emission sources covered under this Agreement. 2. Failure by Respondent to timcly apply for, and uhimately obtain, the synthetic minor permit for any emission source identifieu in this Agreement or to comply with thc requiremcnts ofSection D and Appendix B shall render any release orsatisfaction ofliability afTordedunder tlus Agreement null and void as 

### to that source. 3. Nothing in this AgreementshaH be 

### construed as nwaiver by the BPA orany otberfederal entity ofits authority to seck costs or any appropriatepenalty associatedwitb any collection action instituted as n result ofRespondent's fuilure to perform pursuant to the tcnns ofthis Agreement. 4. Once the Respondenthas received asynthetic minor sourcepennit from EPA for the emission source identified in Appendix 

### At and that permit has bccomeeffectivc, the terms ofibat pernot supersedethis Agreement. 5. For all Existing Emission Sources listed in ApPlmdix A, Table A·I, Respondent's submission offt complete synthetic minor source permit application will 

### constitute compliance with the relevEmt CAA provisions during the period Oflhis Agreement.

6. ForallNew Emission Sources listed in Appendix A, Tables A-2, A-3, and A-4, compliancewith Ihe relevant CAA provisions requires that Respondent; a)obtains un effcctive synthetic minor source penniti b) is subject to an EPA approved Federal implementationPJan which allows for a permit 

### by nile; or c) 6

### complies with CI new EPA applicable CAA regulation that removes them from PSD applicability 

### 7, Notwithstanding the te1ms ofthis Agreement, the Respondentmust meet 

### allY other applicable requirements ofthe Act orits implementing regulations. 8. Respondent agrees that for any emission source operated without the conirols required by this Agreement, except

### for instances 

### ofmalfunclion, Respondent is inviolation 

### ofthisAgreement. Malfunction shall 

### be defincd as any sudden, infrequcnt, 

### and not reasonably preventablefailure 

### ofair pollutioncontrol equipment, process equipment, or aprocess to operate in a nonnal orusual manner, eauscd by circumstances entirely beyond the cOlllrol ofthe owneroropemtor, but shall not include failures that are caused in whole or in part by poor maintenance or careless operation. 

### 9. Respondent agrees that any emission source whose actual emissions have exceeded 250 tons per year is notcovered 

### by this Agreement, including any emission source listed by the Respondent in Appendix A. 

### 10. Eachundersigned representutive ofthe HPA Bnd RCJI,pondents (parties) tu this Agrecmenl certiOes that he orshe is fully 

### authorized by the Party represented to bind lhePartyto the terms and conditions ofthis Agreement and to execute and legally bind that Party to this Agreement. 

### JI. 

### ThePartics agrce to submit this Agreement to the Regional Judicial Officer, with areqllest that it be incorporated into 

### aFinal Order. 12. '11le tenus, conditions, and compliance requirements of

### tilis Agreemenl may not be modified oramended exceptupon the writtcn agreement ofboth parties. and approval ofaRegional Judicial Officer. 13. Ifthe Respondem, pursuant to Paragraph 

## n, 1.a, abovc, wishes to amend the list ofemission sources in Appendix A, Table**A~l.** 

### it shall submit those suggested changes to EPA for approval. IfEPA agree.\ with the suggested changes. the Parties will submit (111 

### umended Agreemcntto the Regional Judicial Officer for incorporation into arevised Final Order. 14. The effective date ofthis Agreement is the date that the rinal Orderis signed by the Regional Judicial OUieer, 15. This Agreement, \lpon incorporation into a Final Orderby the Regional Judicial Offieerand full sausfactionbythe Panics, shall be acomplcte, full and final settlemcntofthe violations alleged in this Agreement. 16. Each Party shall 

### bear

### jls own costs and attorneys 

### rees in connection with all issues associated with this Agreement. UNITED STATES ENVIRONEMENTAL PRUTECTION AGENCY REGION 8, Complainant.

7at : -.L,f---+.....::....:.-----

ODIA}{OIL 

### Re pondent. ( 

## c.

Date: 

### August 26 2011

### API'ENDlX A EMISSION SOURCE INVENTORY TableA·l ExistiDR Emission Sources (commenced construction by AURust

### 3D, 2011) Source Latitude Section, Well site Casinghead Casinghead TanksITank Tank.rrank Name and Township, completion gas gas control Battery Battery Longitude 

### Range date controlled device 

### control 

### control or captured device device 

### install date Moccasin 47.5891055 Sec. 34 Ground Pit Ground Pit Creek J6·34 T148N 4/2412009 Controlled 4/24/2009

Facility -101,4945916 R93W Flares Flares Twa Shields 47.73344722 Sec. 8 Controlled Ground Pit Ground Pit 617f2009 BUlle l6-8 -101.527730 TI49N 61712009 Captured(l) Flares(l) Flares

faciliw R92W Two Shields 47.67556111 Sec. 33 COiltrolled Ground Pit Ground Pit Butte t4-33 -102.462063 T149N 81912009 Capturcd(lj Flares(l) Flares 81912009

Facilitv R92W Charglng 47,544002 See, 22 Ground Pit Ground Pit Eagle 1-22 -102.376399 T147N 10/9/2009 Controlled FllU'Cli Flares 10/9/2009

Facility R92W TallBear 47.546564 Sec, 15 Ground Pit Ground Pit

16-15 TI47N 12/1312009 Controlled 1211312009 Facility -102.249838 R9IW**FI8rc,~** Flarcs Moccasin 4757461666 Sec. 3 Ground Pit Ground Pit Creek 16-3 T147N 2/1312010 Conlrolled 2/13/2010

FacilitY -101.4960833 R93W Flares Plares Moccasin 47,590189 Sec, 34 Ground Pit Ground Pit Creek 13-34 T1411N 615/2010 Controlled 61512010

FllCilily -102.523329 R93W :Flares Flares '1\\'0 Shields 47.70326 Scc.21 Controlled Ground Pit Ground Pit Butte 14-21 -102.46107 Tl49N 12111/2010 CapturedD} Flares(2) Flares 12/1112010

Facilitv R92W Two Sllields Sec. 24 Butlc ISkunk 47.7166 T149N Anticipate CapturedO ) Ground Pit Ground Pit Anticipate Creek 2-24 -102.519778 8/26/11 Flares!) Flares 8/26/11

Facility R92W (1) Gas became captured with pipeline installation 112111, gas is controlled with ground pit [Iare during treater or pipelinemalfunctions (2) Gas becllme captured wim pipeline installation 4/8/11, gas is controlled with ground pit flare during treater orpipelinemalfunctions (3) The wells atthis facility are waiting on completion, gas pipeline cUITCnlly installed for capture ofcasinghead gus, ground pitJlare will be used for conllal during treater or pipeline malfuncl;ons

9

### Tnble A-2 New Emission Sources (commencing construction between August 31, 20II and December 31, 2011) 

### Source Identification Section, Township, Range 

### Expected Commence Construction Date Skunk Creek 12·10 FacUlty Sec. 10, TI48N·R93W 9,01.2011 Skunk Creek2-8 FacililY Sec. 8. TI48N·R93W 11.01.2011 Charging Eltglc 15-22 Sec. 22, T147N·R92W 10.01.2011 FllclHty Chltrging Eagle 1$·14 Sec. 14, T147N-R92\V 12,01.2011 Fntilliv



### Table A-3 New Emission Sources (conmlencing 

### construction between January 1,2012 and**~ch** 31 2012) 

### Source Identification Section, Township. Range Expecled Commence Construction Date SkunkCreek 9-2Facility Sec. 2, T148N·R93W 3.01.2012 Moccasin Creek 16·26 SeC. 26, T148N-R93W 3.01.2012 Facilitv Two Shields Hulte S·7 Sec. 7, T149N·R92W 3.01.2012**~li!i'** TWo Shields 6utle]·24 Sec. 24, T149N-R93W 3,01.2012 Fl'Icllit ' Moccasin Creck H 4 Sec. 14 Tl47N-R93W 3.01.2012

Table A·4 New Emission Sources (commencing construction between April 1,2012 and June 30 2012) 

### Source Idcnlificnuon Seclion. Township. 

### Expected Commence 

### Ran.e Construction Dale Skunk Creek 13-18 Facility Sec.18, TI48N-R92W 04.01.2012

## c10

### APPENDIXB 

### EMISSION CONTROLREQUIREMENTS A. Applicability These requlremt:nts apply (0 existing and new emission sources BssocJated with oil production from the Bakken Fonnation on the FortBerthold Indian Reservation in NorthDakota Hnd target the control 

### ofcasinghead gas emissions (also known as treatergas) and emissions from oil andproduced water storage tanks (tanks). II. Control Requirements All casinghead gas and tank emissions must be conlrolled or captured \1pOn start ofproduction. If**gtl.~** gathering infrastructure is in place, casinghead gns shall be rouled 10 a**ga~** gathering pipeline as soon as practicable. When a pipeline is not available, casinghead gas is required Lo be routed to a 

### contl'ol system ordevice in lhe 

### Control Syslem List below. The Control System List also applies to emissions from oil and produced water storage tanks, Capture or control devices shall be operMcd at aillimcs when emissions mny be vented to them. The owner/opcratorshall mnintnin and operate all air pollution control equipment, and all etjuipmenl employed to contain Bnd collect vapors and transport them to the emission control system or devlce, in accordance with the manufacturer's recommendations and in a manner consistent with good ail' pollution controlpractice for minimizing emissions. Control System List 

### J. A ground pit flare (including, but 

### not limited to pit flarcs, shop built 

### flares or otber similar oilfield type flares) 

### or other 90% or greaterDRE device, Ifa ground pit flare is utilized, 

### a 

### 90% ORE to be assumed. This is cOllsidcrcd the minimum level ofcontrol for tank 

### lind treater gas emissions at all times. 2. Avapor recovery unit or oil stabilizer that is designed and operated to reduce the mass content. ofVOC and total hazardous 

### air pollutant (HAP) emissions ill the vnpors ,'ented to the device by at least95% by weight. 3. An enclosed combustion device appropriately sized for the site's operllting parameters and for which the mAnufacturer represents will achieve a uestruction efficiency ofat least95% of the VOCs with respect to tbe volumetric flow and BTU content ofthe site's wllste gas stream. An enclosed combustion device is operated inCluding, but not limited 10 the following:

• This device should be operated with no visible emissions except tor periods not to exceed a total of5 minutes during any 2 conseculive hours; Melhod 22 of40 CFR Appendix A shaH be used to determine the compliance with this visible emission provision,



### 1J• Owner/operator shall install an appropriate, reliable tempcrntUl'c scnsorllrnnsmitlcr thut indicates continuous ignition oflhe pilot flame on the control device. The sensor/transmitter' will be connected to the site's Supervisory Control and Dnta Acquisition (SCADA) System. The SCADA system will record temperature readings at a specified frequency and will be programmed to trigger an alarm iftclllpcraturcs outside ofa pre-programmed range are detected. For the purpose ofthis paragraph, "continuous" monitoring equipment shall measure arid record values Micas! once every hour. 4. A utility flare (using an open flame without enclosure) that is designed and operated to reduce the mass cOlllent of

### vae nnd lotal :HAP emissions in the VI\P0I'S vented to the device by at least 98% by weight. Autility flare is any narc that is designed and operatcd in f\ccordance with the rcquirements of40 C.F.R § 60.18. Requiremcnts of40 C.r-.R 

### § 60.18 include, bUI arc not limited to the following:

• Flare shall be designed and operated with no visible emissions exceptforperiods not to exceed Il totnl of5 minutes during any 2 conseculive hours; Method 22 of40 CFR Appendix A shall be used to detemline lbe compliancc with this visible cmission provision;

• Flare shall be operated with a flame pI'esent at

### all times;

• An owncr/operutor has the choice ofadbering to eitherthe helll content specifications in paragraph 40 C.F.R. § 60. t8(c)(3)(ii) and the maximum tip velocity specifications in plll11graph (c)(4) or adhering to the requirements in40 C.F.R. § 60.l8(c)(3)(i);

• Flares used to complywith this section shall be steam-assisled, air-assisted or nonassistedj

• Owners/operators offlares shall monitorthe control devices to ensure that they arc operated 

### and lllaimained in eonf01mance with their designs;

• The presence of8 flare 

### pilot flame shall 

### be monitored using 

### athermocouple orAny otherequivalent device to detect

### the presenceof

### aname. Continuous checks 

### by an operatorto verify lhe existence ofa visible name orto verify proper operation ofthe igniter may beused in Heu ofuphysical device. Forthe purpose ofthis paragraph, "conlinuous" monitoring equipment shall measure and record values at leastonce evel'Y hour.

• For safety and air pollution control purposes: each fiarc must be equipped and operated with 

### un automatic ignitor or

### ncontinuous bllrning pilot, which mllst 

### he maintained in good working order. This is required even iflhe narc is used for emergency purposes only. 5. C0I11r(l1 devices otherthan those listed 

### noon mny be milizcd upon appl'Qvlll from the EPA. C. H.ccOJ·dkeeping Rcquit'cments I. Owner/operator shull maintuin eonlro] device temperature logs for three years.

12

### CERTIFICATE OF SERVICE


### The undersigned cl..:rtifies thatthe originul orthe 

### attached ORDER GRANTING ELECTRONIC FILING OF CONSENT AGREEMENT AND FINAL ORDER in the matter ofKODIAK OIL & 

### GAS (USA), INC.; DOCKET NO.: CAA·08-2011·0020, was filed with the Regional He,aring Clerk on August 29. 20II. FW1her. the undersigned certifies Lhat a true and correct copy ofmc 

### document was 

### delivered tojim Eppers. Enforeemen' Attorney, U. S. EPA

- Region 8. 1595 Wynkoop Street. Denver. CO 80202·1129. True and correct copies orthe

### aforementioned documents were plnccd in the Uniled Stales mail 011 

### August29. 21011. to:
Cathleen M. 

### Osbom. Legal Cnunsel Kodiak Oil & 

### Gas Corp. l.A:gal Counsel 

### 1625 Broadway. Suite 250 Denver. CO 80202 

### And cmuilcd LO: 

### EI

### izabeth Whitsel U. S, Environmental Protection Agency Cincinnati Finance cnler 

### 26 W. Manin Luther King Drive (MS-0002) Cincinnati. Ohio 45268

Augus' 29. 2011 

# "itm .{).tlLm

# .J/2 Tina Artemis 

### Paralegal/Regional Hearing Clerk