## UNITED STATES ENVIRONMENTAL PROTECTION AGENCY Region 4 Atlanta, Georgia Permit to Construct and Operate Under the Outer Continental ShelfAir Regulations Permit No. 

### OCS-EPA-R4012-Ml In accordance with the provisions ofsection 328 ofthe CleanAirAct (CAA), 42 U.S.C. § 7627 and the implementing Outer Continental Shelf(OCS) AirRegulations at title 40 Code ofFederal Regulations (CFR) part 55, which incorporatebyreference the Prevention ofSignificant Deterioration ofAir Quality (PSD) regulations at 40 CFR § 52.21, and the Title V Operating Permit Programregulations at40 CFR part 71. Statoil GulfServices, LLC 2103 CityWestBoulevard, Suite 800 Houston, Texas 77042 is hereby authorized to construct and operate air emissions units and to conduct other airpollutant emitting activities at an OCS source at multiple sites within the GulfofMexico, within the areas defined inthis permit as the project location. Uponcommencing activities in the area defmed inthis permit as the project location, this OCS source and associated support vessels shall be constructed and operated in accordance with the terms and conditions set forth inthis permit. This permit originallybecame effective onNovember 27, 2013. This permit was modified onAugust 14, 2014. This permit shall expire on: November 27, 2018. This permit shall not relieve the owneroroperatorofthe responsibility to complyfully with all applicable provisions offederal and st



### 'ls-J'i-1'-/ Date Signed

Statoil OCS-EPA-R4012-M1 08/14114 Be rly

. Banister Director Air, Pesticides, andToxics Management Division

### 1 AUTHORITY The United States Environmental ProtectionAgency (EPA) issues this permit pursuant to section 328 of the CAA, 42 U.S.C. § 

### 7627, and the implementing OCS AirRegulations at 40 CFRpart 55, which incorporate byreference the PSDregulations at 40 CFR § 

### 52.21 and the Title V OperatingPermit Programregulations at40 CFRpart 71. This permit is basedupon application materials submitted to the EPAby Statoil GulfServices, LLC (Statoil) dated September 5, 2012, December7, 2012, January 28, 2013, and June 27, 2013, and, as revised, March 27, 2014; all supplemental submittals and information included inthe administrativerecord for this permit action; and upon the technical analysis performed bythe EPA.



### 2 APPLICANT Statoil GulfServices, LLC 2103 CityWestBoulevard, Suite 800 Houston, Texas 77042



### 3 PROJECT LOCATION Statoil's project is located in the OCS waters ofthe GulfofMexico. TheTransocean

### Discoverer Americas will operate in the DeSoto Canyon area leaseblocks 143, 187, 188, 230, 231, 625, 669,670, 671,715,716,759,760, and 804. The

### MaerskDeveloperwill operate inthe same DeSoto Canyon area or in any eastern GulfofMexico area locatedfurther from the BretonWilderness Class I area, east of longitude 87.5, west ofthe MilitaryMissionLine (86°41' west longitude), outside ofthe current Congressional moratoria area as specifiedbythe GulfofMexico Energy SecurityAct of2006, and not within 75 nautical miles ofthe state seawardboundary ofFlorida. Thenorthwest comeroflease block 143, the closest point withinthe specified leaseblocks to any state's shoreline, is located on OCS waters ofthe GulfofMexico east oflongitude 87.5 o W at latitude 28.85° N and longitude 86.42 oW.



### 4 PROJECT DESCRIPTION Statoil will operate either the Maersk

### Developer(Operating Scenario 1) or the Transocean

### Discoverer Americas (Operating Scenario 2) deepwater drilling vessel and its associated support vessels toperform exploratory drilling activities for approximately 180 days peryear at multiple locations listed in Section 3 above. Drilling operations are expected to occur for approximately five to ten years. This permit does not authorize the construction or establishment ofany permanent production facilities. Airpollutant emissions generated from the project include nitrogen dioxide (N02), carbon monoxide (CO), particulate matter (PM), particulate matter with an aerodynamic diameter less than or equal to 2.5 microns (PM2.s}, particulate matter with an aerodynamic diameter less than orequal to 10 microns (PMw), and sulfur dioxide (S02) (known as criteriapollutants), as well as otherregulated air pollutants including volatile organic compounds (VOC), oxides ofnitrogen (NOx), and greenhouse gases (GHG). VOC and NOx are the measuredprecursors for the criteriapollutant ozone, and NOx and S02are measured precursors for PM2.s.

2 Statoil OCS-EPA-R4012-M1 08/14/14GHG emissions for this project were calculated based on Global Warming Potential (GWP) factors from the GHG Reporting Rule at 40 CFR Part 98, Subpart A, Table A-1. The following GWP factors in Table A-1 as ofthe date ofthe original permit remain applicable to the unmodified terms ofthe permit (i.e, emissions related to the TransoceanDiscovererAmericas operating under Operating Scenario 2): GHG Pollutant GWP Factor 1 21 310 23,900 GWP factors currently in 40 CFR Part 98, Subpart A, Table A-1 and applicable to the modified permit terms related to the MaerskDeveloper and support vessel emissions are: GHG Pollutant GWP Factor 1 

### 25 298 22,800 Emissions are primarily released from the combustion ofdiesel fuel in the drilling vessel's main engines, as well as in engines that supplypower for drilling equipment and support vessels. Emissions are also released from other equipment such as storage tanks, and from activities such as vessel maintenance, cementing the wells, and the pumping ofheavy lubricating mud. Based on emissions estimates and the applicable permitting thresholds, both operating scenarios will have significant emissions ofNOx, and are considered major sources ofNOxwith respect to the PSD and title V regulations. Therefore, drilling operations conducted under either operating scenario are subject to the PSD and title V programs for NOx as the measured pollutant for criteriapollutants 

### NOz and ozone and as a precursor to 

### PMz.s. Based on stack testing data from October 2013 included in Statoil's permit modification application dated March 27, 2014, drilling under Operating Scenario 1 using the Developer also has emissions ofPMw, PMz.s, and VOC that meet or exceed the respective PSD significant emissionrates. In addition, either operating scenario will be considered an area source ofhazardous air pollutants pursuant to 40 CFR 63 subpart ZZZZ. Based on Statoil's original permit application dated September 5, 2012, 

### PMz.s will be emitted at close to its significant emission rate in Operating Scenario 2. Therefore, the EPA has also included a condition in the draft permit that limits theDiscovererAmerica's total filterable and condensable PMz.s emissions. TheDeveloper (Operating Scenario 1) is a self-powered, dynamicallypositioned semi-submersible drill rig constructed withpontoon structures below the water surface and columns supporting a platform above the surface. Rig positioning is achieved using a computer controlled sensor system and the vessel's propellers and thrusters. Therefore, the rig will not require the use oftowing or anchoring vessels as part ofthe support fleet. The rig is equipped with eight main generator engines to provide propulsion and electrical power, two cementing unit engines, an emergency generator, four life boats, a fast rescue boat (man overboard boat), and storage vessels for fuel and waste oil storage. Electric powered well logging (wireline) units, forklifts, and cranes are used on the rig. However, since the electric units do not have combustion

3 Statoil OCS-EPA-R4012-M1 08/14/14engines, they are not addressed as a separate source ofair emissions. Information regarding emissions units for the Developeris provided in Table 1below. The informationprovided in Tables 1 and 2 isfor description and identificationpurposes and does not establish operating limits. Permit conditions may limit operation to less than ratedcapacity.

Emissions Unit ID GEN-1 GEN-2 GEN-3 GEN-4 GEN-5 GEN-6 GEN-7 GEN-8 EGEN CMU-1 CMU-2 LB-1 LB-2 LB-3 LB-4 MOB-1

a Kilowatt b Horsepower 

### Table 

### !-DeveloperEmiSSions Units (Operatin!! Scenano 1) Description Manufacturer Displacement Rating Main Generator Engine 1 Main Generator Engine 2 Main Generator Engine 3 Main Generator Engine 4 Main Generator Engine 5 Main Generator Engine 6 Main Generator Engine 7 Main Generator Engine 8 Emergency Generator Engine Cement Unit Engine 1 Cement Unit Engine 2 Lifeboat 1Engine Lifeboat 2 Engine Lifeboat 3 Engine Lifeboat4 Engine Fast Rescue BoatEngine and Model (L/cylinder) (kW) 8 Wartsi1a 16V26A 17.0 4840 Wartsi1a 16V26A Wartsila 16V26A Wartsila 16V26A Wartsila 16V26A Wartsila 16V26A Wartsila 16V26A Wartsila 16V26A Caterpillar 3516B Caterpillar C15 Caterpillar C15 BUKH or similar BUKH or similar BUKH or similar BUKH or similar Steyr Motors or similar 17.0 17.0 17.0 17.0 17.0 17.0 17.0 4.9 2.4 2.4 4840 4840 4840 4840 4840 4840 4840 1902 373 373 22 22 22 22 122 Rating (hp)b 6651 6651 6651 6651 6651 6651 6651 6651 2551 500 500 29 29 29 29 163 Manufacture Date 8/2006 8/2006 8/2006 8/2006 8/2006 8/2006 8/2006 8/2006 11/2006 10/2006 9/2006 8/2007 8/2007 8/2007 8/2007 3/2007

TheDiscovererAmericas (Operating Scenario 2) is a dynamicallypositioned drillship. Similarto the Developer in Operating Scenario 1, this drillship is equipped with a computer controlled sensor system to automatically maintain the vessel's position and heading over a location using its propellers and thrusters. The drillship travels under the main generator engines' power to the next drill site and does not require towing or anchoring vessels as part ofthe support fleet. TheDiscovererAmericas ' equipment includes six main engines that power electrical equipment and serve as propulsion generators, an emergency generator, two emergency air compressors, two forklifts, six life boats, a fast rescue boat (man overboard boat), and storage vessels for fuel and waste oil. The ship is also equipped with electric-powered wireline units, cementingunits, and cranes. However, since these units do not have combustion engines, they are not addressed as separate sources ofair emissions. Information regarding emissions units for the DiscovererAmericas ofOperating Scenario 2 is provided in Table 2 below. 

### Table 2 

### -DiscovererAmericas Emissions Units (Operating Scenario 2) Emissions Description Manufacturer and Displacement Rating Rating Manufacture UnitiD Model (L/cylinder) (kW)a (hp)b Date GEN-1 Main Generator Engine 1 STX MAN 14V32/40 32.2 7000 9387 3/2008 GEN-2 Main Generator Engine 2 STX MAN 14V32/40 32.2 7000 9387 3/2008 GEN-3 Main Generator Engine 3 STX MAN 14V32/40 32.2 7000 9387 3/2008 GEN-4 Main Generator Engine 4 STX MAN 14V32/40 32.2 7000 9387 3/2008 GEN-5 Main Generator Engine 5 STX MAN 14V32/40 32.2 7000 9387 4/2008 GEN-6 Main Generator Engine 6 STX MAN 14V32/40 32.2 7000 9387 4/2008 EGEN Emergency Generator STX MAN 7L27/38 21.8 2309 3097 2/2008

4 Statoil OCS-EPA-R4012-Ml 08/14/14Emissions Description Manufacturer and Displacement Rating Rating Manufacture Unit ID Model (L/cylinder) (kW)a (hp)b Date Engine ACOMP- EmergencyAir Duetz F3L912 0.9 37 50 112007 1 Compressor Engine 1 ACOMP- Emergency Air Duetz F4L912 0.9 51 68 1/2007 2 CompressorEngine 2 FORK-1 Forklift Engine 1 Mitsubishi 3.3 (engine 37 50 2008 8MVKL.OAAD or total) similar FORK-2 Forklift Engine 2 Mitsubishi 3.3 (engine 37 50 2008 8MVKL.OAAD total) or similar LB-1 Lifeboat 1Engine BUKH or similar

--- 27 36 9/2006 LB-2 Lifeboat 2 Engine BUKH or similar



### --- 27 36 9/2006 LB-3 Lifeboat 3 Engine BUKH or similar

--- 27 36 8/2006 LB-4 Lifeboat4 Engine BUKH or similar



### --- 27 36 9/2006 LB-5 Lifeboat 5 Engine BUKHor similar



### --- 27 36 9/2006 LB-6 Lifeboat 6 Engine BUKH or similar



### --- 27 36 9/2006 MOB-1 Fast Rescue Boat Engine Steyr Motors or --- 158 212 9/2006 similar HTR Cargo Hold Heater



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

### --- Post 1989

a K1lowatt b Horsepower The drillships are supported byvarious vessels operating within 25 miles. Support vessels include crew boats and offshore support vessels (OSVs) that bring crew, supplies, and materials to the ship as needed during exploratory drilling activities. A representative vessel for each support vessel category, the crew boat Sybil Graham and the OSVPeyton Candies, was used to calculate the worst case potential emissions from the support fleet.



### 5 GENERAL CONDITIONS 5.1 Compliance 5.1.1 The permittee shall complywith all requirements of40 CFRpart 71,40 CFR § 52.21, 40 CFR part 55 and this permit. Failure to do so shall be considered a violation of section 111(e) ofthe CAA. All enforcement provisions ofthe CAA, including, but not limited to, the provisions ofsections 113, 114, 120, 303, and 304 ofthe CAA, shall apply to the OCS source and permittee. 5.1.2 The permittee must complywith all conditions ofthis permit. All terms and conditions ofthis permit are enforceable bythe EPA and citizens under the CAA. Anypermit noncompliance constitutes a violation ofthe CAA and is grounds for enforcement action; for permit termination, revocation and reissuance, ormodification; or for denial ofa permit renewal application. 5.1.3 It shall not be a defense for a permittee in an enforcement action that it would have been necessary to halt orreduce the permitted activity in order to maintain compliance with the conditions ofthis permit. [40 CFR §§ 55.8, 55.9(a), 55.9(b), 71.6(a)(6)(i), and 71.6(a)(6)(ii)]

5 Statoil OCS-EPA-R4012-M1 08/14114

### 5.2 Permit Shield Compliance with the terms and conditions ofthis permit shall be deemed compliance with the applicable requirements that are included and are specifically identified inthis permit. Nothing in this permit shall alter or affect the following:

• Theprovisions ofCAA section 303 (emergency orders), including the authority ofthe Administratorunderthat section; • Theliability ofan owner or operator ofa source for any violation ofapplicable requirements prior to or at the time ofpermit issuance; or • The ability ofEPA to obtain information from a source pursuant to CAA section 114. [40 CFR § 71.6(±)(1)] 

### 5.3 Other Credible Evidence Forthe purpose ofsubmitting compliance certifications in accordance with Condition 5.21 ofthis permit, or establishing whether ornot a person has violated oris in violation ofanyrequirement ofthis permit, nothing shall preclude the use, including the exclusive use, ofany credible evidence or information, relevant to whether a source would havebeen in compliance with applicable requirements ifthe appropriate performance or compliance test orprocedure had beenperformed. [CAA §§ 113(a) and 113(e)(1), 40 CFR §§ 60.11(g) and 61.12] 

### 5.4 Construction and Operation 5.4.1 As approved and conditionedbythis permit, all construction and operation, including equipment operations and maintenance ofthe OCS source and support vessels shall be in accordance with the data, specifications, drawings, exhibits, and assumptions included with the application and supportingmaterials submitted bythe permittee, which resulted inthis permit (application materials). This permit is valid onlyfor the specific processes and operations applied for and indicated in the application materials. Anyunauthorized deviation from the application materials, or from anyterm or condition ofthis permit may constitute grounds for revocation or enforcement actionby EPA. 5.4.2 Thepermittee shall properly operate and maintain the OCS source and support vessels, including all systems oftreatment and control (and related appurtenances) that are installed and used bythe permittee to achieve compliance with the terms and conditions ofthis permit. This provision includes the operation ofbackup or auxiliary facilities or similar systems when necessaryto minimize orprevent emissions in achieving compliance with the terms and conditions ofthepermit. [40 CFR § 52.21(r)(1)] 

### 5.5 Compliance and Other Requirements This permit does not relieve the permittee ofthe responsibilityto comply fully with applicable provisions ofany otherrequirements under federal law. [40 CFR § 55.6(a)(4)(iii)]

6 Statoil OCS-EPA-R4012-M1 08/14/145.6 Notification to Owners, Operators, and Contractors The permittee must notify all other owners oroperators, contractors, and the subsequent owners or operators associated with emissions from the OCS source and support vessels ofthe terms and conditions ofthis permit. [40 CFR § 55.6(a)(4)(iv)] 5.7 Expiration ofApproval to Construct and Permit Renewal 5.7.1 This approval to construct shall become invalid if: construction is not commenced within 18 months after the effective date ofthis permit, construction is discontinued for a period of 18 months or more, or construction is not completed within a reasonable time. The EPA may extend the 18-monthperiod upon a satisfactory showing that an extension isjustified. For the purposes ofthis permit, periods greater than 18 months between drilling campaigns are not considered to be a discontinuation ofconstruction. [40 CFR § 52.21(r)(2)] 5.7.2 This permit shall expire onthe expiration date onpage one ofthis permit. [40 CFR § 71.6(a)(2)] 5.7.3 Expiration ofthis permit terminates the permittee's right to operate unless a timely and complete permit renewal application has been submitted at least six (6) months, but not more than 18 months, priorto the date ofexpiration ofthis permit. Ifthepermittee submits a timely and complete renewal application, and the EPA does not take final action on the renewal application before the end ofthe term ofthis permit, the permittee's failure to have a permit is not a violation of40 CFRpart 71 until the permitting authority takes final action onthe renewal application. Suchprotection will cease to apply if, subsequent to the EPA's determination that the renewal application is complete, the permittee fails to submit bythe deadline specified in writing bythe EPA any additional information identified as beingneeded to process the application. [40 CFR §§ 71.5(a)(l)(iii), 71.7(b), and 71.7(c)(l)(ii)] 5.7.4 Ifthe permittee submits a timely and completepermit application for renewal, consistent with 40 CFR §§71.5(a)(l)(iii) and 71.5(a)(2), but the EPA does not take final action on the renewal application before the end ofthe term ofthis permit, then all the terms and conditions ofthis permit, including anypermit shield granted pursuant to 40 CFR § 71.6(£), shall remain in effect until EPA takes final action on the renewal application. [40 CFR §§ 71.7(c)(3) and 71.7(b)]

5.7.5 Renewal ofthis permit is subject to the same procedural requirements that apply to initial permit issuance, including those for public participation and affected State review. [40 CFR §71.7(c)(1)(i)]

7 Statoil OCS-EPA-R4012-M1 08/141145.7.6 An application to the EPA for renewal shall include all information required pursuant to 40 CFR § 71.5(c), as well as the current permit number, a description ofpermit revisions and off-permit changes that occurred during the permit term and were not incorporated into the permit during the permit term, any applicable requirements that were promulgated and not incorporated into the permit during the permit term, and other informationrequired bythe application form. [40 CFR §§ 71.5(a)(2) and 71.5(c)(5)] 5.8 Property Rights This permit does not convey anypropertyrights ofany sort, or any exclusive privilege. [40 CFR §71.6(a)(6)(iv)] 5.9 Inspections The permittee, by accepting this permit, specifically agrees to allow authorized EPA personnel, upon presentation ofcredentials or other documents as mayberequired bylaw and at reasonable times, access to the premises where the permitted activity is located or conducted orwhere anyrecords are required to bekept underthe terms and conditions ofthis permit to:

• Have access to and copy any records that mustbe kept under the conditions ofthe permit, including but not limited to, information relating to the OCS source, support vessels, monitoring data, or compliance or noncompliance with the permit; • Inspect the OCS source, support vessels, equipment, practices, or operationregulated or required under this permit; and • Sample or monitor any substances orparameters at any location reasonably necessary to assure compliance with this permit orEPA rules. Reasonable time may depend on the nature ofthe concern being investigated. [40 CFR §§ 71.6(c)(2) and 55.8] 5.10 Emergency Provisions In addition to any emergency orupset provision contained in any applicable requirement, the permittee may seek to establish that noncompliance with a technology-based emission limitationunder this permit was due to an emergency. An emergency constitutes an affirmative defense to an action brought for noncompliance with such technology-based emissions limitation. The permittee shall demonstrate the affirmative defense ofemergency through properly signed, contemporaneous operating logs, orother relevant evidence that:

• An emergency occurred and that the permittee can identifythe cause(s) ofthe emergency; • The permitted facility was at the timebeingproperly operated; • Duringthe period ofthe emergencythe permittee took all reasonable steps to minimize levels ofemissions that exceeded the emissions standards, or otherrequirements in this permit; and • The permittee submitted notice ofthe emergency to the EPA within two (2) working days of the time when emission limitations were exceeded due to the emergency. This notice must contain a description ofthe emergency, any steps taken to mitigate emissions, and corrective

8 Statoil OCS-EPA-R4012-M1 08/14/14actions taken. This notice fulfills the requirements ofCondition 5.17.2 ofthis permit, concerningprompt notification ofdeviations. [40 CFR §§ 71.6(g)(2), 71.6(g)(3), and 71.6(g)(5)] 5.11 Burden ofProoffor Emergencies In any enforcement proceeding, the permittee attempting to establish the occurrence ofan emergency has the burden ofproof. [40 CFR § 71.6(g)(4)] 5.12 Emergency Defined An "emergency" means any situation arising from sudden and reasonablyunforeseeable events beyond the control ofthe source, including acts ofGod, which situation requires immediate corrective action to restore normal operation, and that causes the source to exceed a technology-based emission limitation under the permit due to unavoidable increases in emissions attributable to the emergency. An emergency shall not include noncompliance to the extent caused byimproperlydesigned equipment, lack of preventive maintenance, careless or improper operation, or operator error. [40 CFR § 71.6(g)(l)] 5.13 Certification Requirement Any document required to be submitted underthis permit shall be certified by a responsible official as to truth, accuracy, and completeness. Such certifications shall state thatbased on information and belief formed afterreasonable inquiry, the statements and information inthe document are true, accurate, and complete. [40 CFR §§ 71.5(d), 71.6(c)(l), and 71.9(h)(2)] 5.14 Permit Actions This permit maybemodified, revoked, reopened, and reissued, orterminated for cause. The filing ofa request bythe permittee for a permit modification, revocation and reissuance, ortermination, or ofa notification ofplanned changes or anticipated noncompliance does not stay anypermit condition. [40 CFR § 71.6(a)(6)(iii)] 5.15 Reopening for Cause Thepermit shall be reopened bythe EPA and the permitrevised priorto expiration under any ofthe circumstances described in 40 CFR § 71.7(f). [40 CFR § 71.7(f)] 5.16 Recordkeeping Requirements In accepting this permit, the permittee understands and agrees that all information relating to this permitted source which is submitted to the EPA maybeused bythe EPA as evidence in any enforcement case involving thepermitted source arising under federal statutes, EPA rules, orrules enforceable bythe EPA.

9 Statoil OCS-EPA-R4012-Ml 08/141145.16.1 This permit or a copythereofshall bekept at the work site ofthe permitted activity. 5.16.2 Thepermittee shall furnish all records requiredbythis permit. 5.16.3 During enforcement actions, the retentionperiod for all records requiredbythis permit will be extended automaticallyuntil the permittee receives written notice from EPA that the permittee no longer needs to retain these records. 5.16.4 The permittee shall hold at the corporate offices ofStatoil GulfServices, LLC, located at 2103 CityWest Boulevard, Suite 800, Houston, Texas 77042, all records required by the permit, including, but not limited to, monitoring data and support information required bythe permit, copies ofall reports required bythis permit, and records ofall data used to complete the application for this permit. These materials shall beretained at least five years from the date ofthe sample, measurement, report, or application unless otherwise specified. Records ofall data used to complete the permit application must bekept for five years from the date ofthe application, unless otherwise specified. Support information includes all calibration and maintenance records and all original strip chart recordings for continuous monitoring instrumentation and copies ofall reports required bythe permit. [40 CFR §§ 71.6(a)(3)(ii)(B) and 55.8] 5.16.5 Records ofmonitoring information shall include:

• Date and time ofsampling ormeasurements; • Emissionunit or otherplace as defined in this permit; • Narne ofthe person who performed the sampling ormeasurements; • Operating conditions as existing at the time ofsample or measurement; • Date(s) the analyses were performed; • Results ofsuch analyses; and • Analytical techniques ormethods used. [40 CFR § 71.6(a)(3)(ii)(A)] 5.16.6 Whenrequested bythe EPA, the permittee shall furnish anyinformationrequiredby law which is needed to determine compliance withthe permit. Ifthe permitteebecomes aware that relevant facts were not submitted orwere incorrect in the permit application or in any report to the EPA, such facts or information shall be corrected promptly. [40 CFR §§ 71.5(b) and 55.8] All notifications, reporting or other communications relating to this permit shall be submitted to:

Chief Air & EPCRA Enforcement Branch Air, Pesticides and Toxics Management Division U.S. EPARegion 4 61 Forsyth Street, SW Atlanta, GA 30303

Statoil OCS-EPA-R4012-M1 08/14/14 10In addition, electronic copies ofthe above-referenced notifications and communications shall be submitted to the following individuals at their corresponding email address: Name David Lloyd Jason Dressler KellyFortin Lori Shepherd Email lloyd.david@epa.gov dressler.jason@epa.gov fortin.kelly@epa.gov lorinda.shepherd@epa.gov Phone 404-562-9216 404-562-9208 404-562-9117 404-562-8435 5.16.7 Thepermittee shall furnish to the EPA, within a reasonable time, any information that the EPA mayrequest in writing to determine whether cause exists for modifying, revoking, and reissuing, orterminating the permit, orto determine compliance with the permit. Upon request, the permittee shall also furnish to the EPA copies ofrecords that are required to bekeptpursuant to the terms ofthe permit, including information claimed to be confidential. Information claimed to be confidential mustbe accompanied by a claim ofconfidentiality according to the provisions of40 CFRpart 2, subpart B. [40 CFR §§ 71.6(a)(6)(v),71.5(a)(3), and 55.8] 5.17 General Reporting Requirements 5.17.1 Thepermittee shall submit to the EPAreports ofanyrequired monitoring for each six month reporting period from July 1 to December 31 and from January 1 to June 30, except that the first reportingperiod shall begin on the effective date ofthis permit and end on either June 30 or December 31, whichever occurs first. All reports shall be submitted to the EPA and shall bepostmarked bythe 30th day following the end ofthe reportingperiod. All instances ofdeviations from permitrequirements mustbe clearly identified in such reports. All required reports must be certified by a responsible official consistent with Condition 5.13. 5.17.2 Thepermittee shall promptlyreport to the EPA, bytelephone or facsimile, deviations from permit conditions, including those attributable to upset conditions as defined in this permit, the probable cause ofsuch deviations, and any corrective actions or preventive measures taken. Thereport shall bemade using the following numbers: Telephone: (404) 562-9194 Facsimile: (404) 562-9019 Attn: Air Permits Part 71 Deviation Report 5.17.3 For the purposes ofCondition 5.17.2 ofthepermit, prompt is defined as follows: 5.17.3.1 Any definition ofprompt or a specific time frame for reporting deviations provided in an underlying applicable requirement as identified in this permit. 5.17.3.2 Where the underlying applicable requirement fails to address the time frame for reporting deviations, reports ofdeviations will be submitted based on the following schedule:

11 Statoil OCS-EPA-R4012-M1 08/14114• For emissions ofa hazardous air pollutant or a toxic air pollutant (as identified in the applicable regulation) that continue for more than an hour in excess ofpermit requirements, the report mustbemade within 24 hours ofthe occurrence; • For emissions ofanyregulated pollutant excluding those referenced in the precedingbullet, that continue for more than two (2) hours in excess of permit requirements, the report mustbemade within 48 hours ofthe occurrence; or • For all other deviations from permit requirements, the report shall be submitted with the semi-annual monitoring report required in Condition 5.17.1. 5.17.4 Within 10 working days ofthe occurrence ofa deviation that requires 24-hr or 48-hr notification as provided in Condition 5.17.3.2 above, the permittee shall also submit a written notice, which shall include a narrative description ofthe deviation and updated information as listed below to the EPA, certified consistent with Condition 5.13 ofthis permit. When reporting excess emissions or permit deviations, including those that are required to be submitted for the first time with the semi-annual monitoring report, the permittee must report in writing the following information:

• OCS Source (Facility) Name; • OCS Air Permit Number; • CompanyName; • Date/Time when the deviation was discovered; • Date/Time when the event began (24-hour clock); • Date/Time when the event ended (24-hour clock); • Duration ofthe event: (hours: minutes) or days (total number ofhours, minutes or days, ifintermittent then include onlythe duration ofthe deviation); • Ifthe deviation was intermittent or continuous; • Briefdescription ofwhat happened and the cause, including information regarding the operating conditions during the deviation; • Identification ofthe emission unit(s) or source(s) involved in the event using the same identification number(s) and name(s) as in the permit; • Identification ofeach emission limit potentially exceeded during the event and the level ofexceedance, ifapplicable; • Whetherthe deviation was unavoidable; • Describe corrective action taken and action taken to prevent future recurrence; • Ifnot corrected, the anticipated time the deviation is expected to continue and steps being taken to reduce, eliminate, and prevent recurrence ofthe deviation; and • Certification: Based on information and beliefformed after reasonable inquiry, certify that the statements and information reported are true, accurate, and complete. 5.17.5 Forthe purposes ofConditions 5.17.1 through 5.17.6, deviation means any situation in which the permittee fails to meet a permit term or condition. A deviation is not always a violation. A deviation canbe determined byobservation orthrough review ofdata obtained from any testing, monitoring, orrecordkeepingrequired bythis permit. For a situation lasting more than 24 hours, each 24-hourperiod is considered a separate deviation. Included in the meaning ofdeviation are any ofthe following:

12 Statoil OCS-EPA-R4012-M1 08/14/14• A situation where emissions exceed an emission limitation or standard; • A situation where process or emissions control device parameter values indicate that an emission limitation or standard has notbeen met; • A situation in which observations or data collected demonstrate noncompliance with an emission limitation or standard or any work practice oroperating condition required bythe permit (including indicators ofcompliance revealed through parametermonitoring); and • A situation in which any testing, monitoring, recordkeeping orreporting required by this permit is not performed or not performed as required. 5.17.6 Ifrequested bythe EPA, the permittee shall provide a more detailed written report as requested to follow up on an excess emissions/deviation report. [40 CPR§§ 55.8, 71.6(a)(3)(i)(B), and 71.6(a)(3)(iii)] 

### 5.18 OffPermit Changes The permittee is allowed to make certain changes without a permit revision, provided that the following requirements are met:

• Each change is not addressed orprohibited bythis permit;

. • Each change shall meet all applicable requirements and shall not violate any existing permit term or condition; and • Each change maynot include changes subject to anyrequirement under anyprovision oftitle I ofthe Clean Air Act. 5.18.1 The permittee shall provide contemporaneous written notice to the EPA ofeach change underthis provision, except for changes that qualify as insignificant activities under 40 CPR§ 71.5(c)(ll). The written notice shall include the following:

• A description ofeach change; • Date ofthe change; • Any change in emissions; • List ofpollutants emitted; and • Any applicable requirements that would apply as a result ofthe change. 5.18.2 The permit shield in Condition 5.2 does not apply to changes made under this prOVISIOn. 5.18.3 Thepermittee shall keep a record describing all changes that result in emissions ofany regulated air pollutant subject to any applicable requirement not otherwise regulated under this permit, and the emissions resulting from those changes. [40 CPR §71.6(a)(12)] 

### 5.19 Operational Flexibility Thepermittee is allowed to make a limited class ofchanges under section 502(b)(10) ofthe Clean Air Act within this permitted facility without applying for a permit revision, provided the changes do not

13 Statoil OCS-EPA-R4012-Ml 08/14114exceed the emissions allowableunderthis permit (whether expressed therein as a rate ofemissions orin terms oftotal emissions) and are not title I modifications. This class ofchanges does not include changes that would violate applicablerequirements or changes that would contravene federally enforceable permit terms and conditions that are monitoring (including testmethods), recordkeeping, reporting, or compliance certification requirements. 5.19.1 Thepermittee is required to send a notice to EPA at least 7 days in advance ofany change made under this provision. The notice must describe the change, when it will occur and any change in emissions, and identify anypermit terms or conditions made inapplicable as a result ofthe change. Thepermittee shall attach each notice to its copy this permit. 5.19.2 Anypermit shield providedunder Condition 5.2 does not apply to changes made under this provision. [40 CFR §§ 71.2 and 71.6(a)(13)(i)] 

### 5.20 Combined Operating Scenarios In the event that more than one drilling vessel is constructed or operated during any compliance period, such as a 12-monthrolling average, any applicable condition ofthis permit, includingbut not limited to emission limits, fuel consumption limits, operating limits, and fee calculations, shall beprorated based onthe duration ofthe operation ofeach vessel during the compliance period. In no case does this condition allow for the simultaneous operation ofmore than one drilling vessel concurrentlywithin the leaseblocks specified in Section 3 underthe terms ofthis permit. [40 CFR § 55.6] 

### 5.21 Annual Compliance Certification Thepermittee shall submit to the EPA a certification ofcompliance withpermit terms and conditions, including emission limitations, standards, orwork practices, postmarkedbyFebruary 28 ofeach year and covering the previous calendar year except that the first certification shall cover the period from the effective date ofthis permit through December 31. The compliance certification shall be certified as to truth, accuracy and completeness by a responsible official consistent with Condition 5.13 ofthis permit. The certification shall include the following:

• Identification ofeach permit term or condition that is the basis ofthe certification; • Identification ofthe method(s) or othermeans used bythepermittee for determining the compliance status with each term and condition during the certificationperiod. Such methods and other means shall include, at a minimum, the methods and means required inthis permit. Ifnecessary, the permittee also shall identify any othermaterial information that mustbe included inthe certification to complywith section 113(c)(2) ofthe CAA, which prohibits knowinglymaking a false certification or omitting material information; • Status ofcompliance with each term and condition ofthe permit for the period covered by the certification, including whether compliance during the period was continuous or intermittent. The certification shall bebased onthe method ormeans designated above. The certification shall identify each deviation and take it into account inthe compliance certification; and • A summary ofNOx, CO, PM/PMto/PMz.s, S02, VOC, GHG, and HAP emissions intons per year emitted by each emissions unit regulated underthis permit during the duration ofthe

14 Statoil OCS-EPA-R4012-Ml 08/14/14reporting period based onrecorded data, such as actual fuel usage and actual hours of operation. [40 CFR §§71.6(c)(5), 55.6(a)(4) and 55.8] 

### 5.22 Compliance Schedule For applicable requirements with which the source is in compliance, the permittee will continue to comply with such requirements. For applicable requirements that will become effective during the permit term, the permittee shall meet such requirements on a timelybasis. [40 CFR §§ 71.6(c)(3) and 71.5(c)(8)(iii)(A) and (B)] 

### 5.23 Safe Shutdown As provided in 40 CFR § 55.9(c), ifthis OCS source is ordered to cease operation ofanypiece of equipment due to enforcement action taken bythe EPA, the shutdown will be coordinated bythe EPA with the DOl Bureau ofSafety and Environmental Enforcement, the United States Coast Guard, the permittee, and the operator to assure that the shutdown will proceed in a safe manner. No shutdown action will occuruntil after the EPA's consultation with these entities, but in no case will initiation of the shutdown be delayed bymore than 24 hours after the EPA consults with these agencies. The initiation ofthe shutdownprocess will not preclude well procedures necessaryto ensure safety. [40 CFR § 55.9(c)] 

### 5.24 Transfer ofOwnership In the event ofany changes in control or ownership ofthe OCS source, this permit shall bebinding on all subsequent owners and operators. Permittee shall notify the succeeding owner and operator ofthe existence ofthis permit and its conditions byletter, a copy ofwhich shall be forwarded to EPA Region 4. [40 CFR § 55.6(a)(4)(iv)] 

### 5.25 Severability The provisions ofthis permit are severable, and, in the event ofany challenge to anyportion ofthis permit or ifanyprovision ofthe permit is held invalid, the remainder ofthis permit shall remain valid and in force. [40 CFR §71.6(a)(5)] 

### 5.26 General Testing Requirements 5.26.1 In addition to the specific testing requirements contained in the emissionunit sections ofthis permit, the permittee shall comply with the generally applicable testing requirements in Conditions 5.26.2 through 5.26.10 whenever conducting a performance test required bythis permit unless specifically stated otherwise in this permit.

15 Statoil OCS-EPA-R4012-M1 08114/145.26.2 The permittee shall provide the EPA at least 30 days prior notice ofanyperformance test, except as otherwise specified inthis permit, to afford the EPA the opportunityto have an observerpresent. Ifafter the 30-day notice for an initially scheduled performance test, there is a delay in conducting the scheduledperformance test, the permittee shall notify the EPA as soon as possible ofany delayinthe original test date, eitherbyproviding at least seven (7) days priornotice oftherescheduled date ofthe performance test, orby arranging a rescheduled date with the EPA bymutual agreement. 5.26.3 The permittee shall submit to the EPA a source test plan 30 days prior to any required testing. The source test plan shall include and address the following elements:

• Purpose and scope oftesting; • Source description, including a description ofthe operating scenarios and mode of operation during testing and including fuel sampling and analysis procedures; • Schedule/dates oftesting; • Process data to be collected during the test and reported withthe results, including source-specific data identified in the emission unit sections ofthis permit; • Sampling and analysis procedures, specificallyrequesting approval for anyproposed alternatives to the reference test methods, and addressing minimum test length 

### (e.g., one hour, eight (8) hours, 24 hours, etc.) and minimum sample volume; • Sampling location description and compliance with the reference test methods; • Analysis procedures and laboratory identification; • Quality assurance plan; • Calibrationprocedures and frequency; • Sample recovery and field documentation; • Chain ofcustodyprocedures; • Quality assurance/quality control project flow chart; • Dataprocessing and reporting; • Description ofdata handling and quality control procedures; and • Report content and timing. 5.26.4 Onlyregular operating staffmay adjust the processes or emission control devices during or within two (2) hours priorto the start ofa source test. Any operating adjustments made during a source test that do not result in representative testing conditions mayrender the source test invalid. 5.26.5 For the duration ofeach test run (unless otherwise specified), the permittee shall record the following information:

• All data which is required to bemonitored during the test in the emissionunit sections ofthis permit; and • All continuous monitoring system data that is required to beroutinely monitored in the emissionunit sections ofthis permit for the emission unitbeingtested. 5.26.6 Each source test shall follow the reference test methods specified bythis permit and consist ofat least three (3) valid test runs conducted under normal operating conditions.

16 Statoil OCS-EPA-R4012-Ml 08/141145.26.7 Ifthe reference test method yields measured pollutant concentration values at an oxygen concentration other than specified inthe emission standard, the permittee shall correct the measured pollutant concentration to the oxygen concentration specified in the emission standard byusing the following equation:

Where: PCx= PCmx (21-X) (21-Y) PCx= Pollutant concentration at X percent; PCm= Pollutant concentration as measured; X = the oxygen concentration specified inthe standard; and Y = the measured average volumetric oxygen concentration. 5.26.8 Facilities for performing and observing the emission testing shall beprovided that meet the requirements of40 CFR § 60.8(e) and Reference Method 1 (40 CFR § 60, Appendix A). 5.26.9 Emission test reports shall be submitted to the EPA within 45 days ofcompleting any emission test required bythis permit along with items required to be recorded in Condition 5.26.5 above. 5.26.1OSource test emission data shall bereported as the arithmetic average ofall valid test runs and in the terms ofany applicable emission limit, unless otherwise specified inthe emission unit sections ofthis permit. [40 CFR §§ 71.6(a)(3) and 71.6(c)(1)] 

### 5.27 Fee Payment 5.27.1 No later than April 1 ofeach year, the permittee shall submit the following to the EPA:

• Full payment ofthe annual permit fee, as specified in Conditions 5.27.2 through 5.27.11; • An updated fee calculation worksheet form and a photocopy ofeach fee payment check (or other confirmation ofactual fee paid), as specified in Conditions 5.27.4 through 5.27.8; and • An annual emissions report ofactual emissions, as specified in Condition 5.27.6, for the preceding calendar year. 5.27.2 The fee payment shall be in United States currency and shall bepaid bymoney order, bank draft, certified check, corporate check, or electronic funds transferpayable to the order ofthe U.S. Environmental Protection Agency. 5.27.3 Thepermittee shall send fee payment and a completed fee filing form to either ofthe addresses listed below. Ifsent byRegularMail through U.S. Postal Service (USPS), send to: U.S. Environmental Protection Agency FOIA and Miscellaneous Payments

Statoil OCS-EPA-R4012-M1 08/14/14 17

### Cincinnati Finance Center PO Box 979078 St. Louis, MO 63197-9000 IfsentbyExpress Delivery (or when a physical address is required), send to: U.S. Bank Government Lockbox 979078 US EPA FOIA & 

### Misc. Payments 1005 Convention Plaza Mail Station SL-MO-C2GL St. Louis, MO 63101 Contact: Natalie Pearson (314-418-4087) 5.27.4 The permittee shall send an updated fee calculation worksheet form and a photocopy of each fee payment check (or other confirmation ofactual fee paid), submitted annually bythe date specified in Condition 5.27.1, to: Chief Air Permits Section Air, Pesticides and Toxics Management Division U.S. EPA Region 4 61 Forsyth Street, SW Atlanta, GA 30303 5.27.5 The annual emissions fee shall be calculated bymultiplying the total tons ofactual emissions ofall "regulated pollutants (for fee calculation)," emitted from the source by the presumptive emission fee (in dollars/ton) in effect at the time ofcalculation. The presumptive emission fee is revised each calendar year and is available from the EPA prior to the start ofeach calendar year. 5.27.5.1 "Actual emissions" means the actual rate ofemissions in tons peryear (TPY) ofany "regulated pollutant (for fee calculation)," as defined in 40 CFR § 

### 71.2, emitted from a part 71 source over the preceding calendar year. Actual emissions shall be calculated using each emissions unit's actual operatinghours, productionrates, in-place control equipment, and types of materials processed, stored, or combusted during the preceding calendar year. 5.27.5.2 Actual emissions shall be computed using methods required bythe permit for determining compliance, such as monitoring or source testing data. 5.27.5.3 Ifactual emissions cannotbe determined using the compliance methods in the permit, the permittee shall use other federally recognized procedures. 5.27.5.4 Thepermittee shall exclude the following emissions from the calculation of fees:

18 Statoil OCS-EPA-R4012-M1 08/14/14• The amount ofactual emissions ofeach regulated pollutant (for fee calculation) that the source emits in excess of4,000 tons per year; • Actual emissions ofanyregulated pollutant (for fee calculation) already included in the fee calculation; and • The insignificant quantities ofactual emissions not required to be listed or calculated in a permit application pursuant to 40 CFR § 71.5(c)(11). 5.27.6 The permittee shall submit an annual emissions report ofits actual emissions for the preceding calendar year. The annual emissions report shall be certified by a responsible official and shall be submitted each year to the EPA bythe date specified in Condition 5.27.1. The annual emissions report shall be submitted to the EPA at the address listed in Condition 5.27.3 ofthis permit. 5.27.7 Fee calculation worksheets shall be certified as to truth, accuracy, and completeness by a responsible official in accordance with Condition 5.13 ofthis permit. 5.27.8 The permittee shall retain in accordance with the provisions ofConditions 5.16.4 and 5.16.5 ofthis permit, all worksheets and othermaterials used to determine fee payments. Records shall be retained for five years following the year in which the emissions data is submitted. 5.27.9 Failure ofthe permittee to pay fees in a timely manner shall subject the permittee to assessment ofpenalties and interest. 5.27.1OThe permittee, when notified bythe EPA ofadditional amounts due, shall remit full payment within 30 days ofreceipt ofan invoice from the EPA. 5.27.11Ifthepermitteebelieves that an EPA-assessed fee is in error and wishes to challenge such fee, the permittee shall provide a written explanation ofthe alleged error to the EPA along with full payment ofthe EPA assessed fee. [40 CFR § 71.9]

19 Statoil OCS-EPA-R4012-M1 08/14/146 SPECIFIC CONDITIONS 6.1 Drill Site Notification 6.1.1 At least 10 days priorto entering the drill site, the permittee shall notify the EPA in writing, in accordance with Condition 5.16.7 ofthis permit, ofthe following information:

• The location ofthe proposed drill site, using coordinates in latitude/longitude and Universal Transverse Mercator grid system formats; • Theproposed date that the drilling vessel will enterthe leaseblock and commence construction or operation and the probable duration ofoperation at that location; and • The certification ofmaintenance and no physical changes required by Condition 6.5.1.1 (ifapplicable). 6.1.2 Not less than 24 hours prior to commencing construction or operation, the permittee shall notify the EPA ofany changes to information providedbythe permittee in Condition 6.1.1. This notification ofchanges maybe provided to the EPA electronically. [40 CFR §§ 71.6(a)(6)(v), 52.21 and 55.8] 6.2 SupportVessel Identification Thepermittee shall maintainrecords, in accordance with Condition 5.16, ofthe engine specifications and number ofhours operated within 25 miles ofthe drilling vessel for any support vessel used inplace ofthe 

### Peyton Candies (offshore support vessel) and/or the 

### Sybil Graham (crew boat). Theserecords, as well as engine emission factors and calculated mass emissions in tons per year ofregulated pollutant, shall be submitted as part ofthe Annual Compliance Certification in accordance with Condition 5.21. 6.2.1 Any offshore support vessel used inplace ofthe

### Peyton Candies shall meet Condition 6.20, and shall be selected to have worst case potential emissions less than those ofthe 

### Peyton Candies. 6.2.2 Any crew boat used inplace ofthe 

### Sybil Graham shall meet Condition 6.21, and shall be selected to have worst case potential emissions less than those ofthe 

### Sybil Graham. [ 40 CFR § 55.8] 6.3 Source-wide S02 Emission Limits Thepermittee shall not combust any diesel fuel with a sulfur content greater than 15 parts permillion (ppm) byweight (0.0015%), as determinedby Condition 6.3.1, in any diesel fueled emission unit onthe 

### Developer, the

### DiscovererAmericas, or any support vessel. 6.3.1 Thepermittee shall obtain a certification ofsulfur content for each shipment offuel from the fuel supplier (the certification must indicate the sulfur content was determined by an approved EPA method), orthe permittee shall obtainrepresentative fuel samples using one ofthe methods in40 CFR § 80.330 and shall determine the sulfur content of the fuel using one ofthe methods in40 CFR § 80.580.

20 Statoil OCS-EPA-R4012-M1 08/14/146.3.2 Priorto mobilizing the selected drilling vessel for activities covered bythis permit, the permittee shall determine and record the sulfur content ofthe diesel fuel on the drilling vessel and the support vessels using the procedures in Condition 6.3.1. 6.3.3 Thereafter, the permittee shall determine and record the sulfur content ofdiesel fuel on the drilling vessel and the support vessels using procedures in Condition 6.3.1 upon receiving each fuel shipment. 6.3 .4 The permittee shall provide the results ofall fuel sample analyses required by Conditions 6.3.2 and 6.3.3 with the Annual Compliance Certification required by Condition 5.21. [40 CFR §§ 52.21, 60.42c(h) subpart De, 71.6(a)(3), 71.6(c)(l), and 55.8] 

### 6.4 Discoverer Americas Source-Wide PM2.5 Emission Limits 6.4.1 The permittee shall not discharge or causethe discharge into the atmosphere 10 TPY or more oftotal filterable and condensable 

### PMz.s emissions from all emission units on the 

### DiscovererAmericas, including any support vessels operating within 25 miles and used in service ofthe drilling vessel, on a 12-monthrolling basis. 6.4.2 Compliance with this operating limit shall be demonstrated bycalculating total 

### PMz.s emissions in TPY from all emission units using monthly fuel consumption, as required byConditions 6.19 

### (DiscovererAmericas), 6.20.2 (OSVs), and 6.21.2 (crewboats), or hours ofoperation and verifiable equipment-specific emissions rates for total filterable and condensable 

### PMz.s emissions determined in accordance with compliance demonstration methods set forth in Condition 6.22, orbyusing the most accurate equipment specific emission rate that maybe obtained from amongthose included in the application, vendor data, ormanufacturer emissions certification, ifactual emissions rates are not available. The permittee shall calculate total 

### PMz.s emissions for the previous 12-monthperiod on a 12-monthrolling basis within 15 days following the end ofeach calendarmonth. 6.4.3 The permittee shall submit a written report in compliance with Condition 5.17.1 including the results ofthe 

### PMz.s limit calculations performed in accordance with Condition 6.4.2 for each 12-monthperiod completed in the report. [40 CFR §§ 52.21 and 71.6(a)(l), (a)(3) and (c)(l)] 

### 6.5 General Stack Test Requirements 6.5.1 Within 90 days ofthe start ofthe first campaign that the subject drilling vessel operates under this permit, the eight main engines (GEN-1 through GEN-8) ofthe

### Developer or the six main engines ofthe

### DiscovererAmericas (GEN-1 through GEN-6) shall have been stack tested under the requirements ofCondition 6.5 and Condition 5.26 within the previous 12 month period.

21 Statoil OCS-EPA-R4012-Ml 08/14114

### 6.5.1.1 If, after the initial stack tests, the drilling vessel discontinues drilling under the permit for more than 12 months, the permittee shall certifythat a continuous maintenance program has been conducted and that no physical changes that could impact emissions have occurred since the latest stack test, orthe permittee shall conduct a new stack test priorto restarting drilling operations in accordance with the general stack testing requirements set forth in Condition 5.26 and Conditions 6.5.2 through 6.5.6. 6.5.1.2 Ifa continuous maintenance program is selected from the options in Condition 6.5.1.1, the certification shall be included with the drill site notification required pursuant to Condition 6.1. Maintenance records shall bekept in accordance with the recordkeeping requirements set forth in Condition 5.16 6.5.2 Each stack test shall be conducted byusing stack testing data collected according to an EPA approved source test plan set forth in Condition 5.26. 6.5.3 Each stack test shall be conducted at three different loads spanning the expected range ofoperations. 6.5.4 At a minimum, each stack test run shall test for emissions ofCO, NOx, PMz.s, 

### PMw, VOC, and visible emissions at areference Oz or COz concentration. 6.5.5 During each test run, the permittee shall monitor and record the following information:

• Density ofthe fuel used (in lbs/gallon); • Heat content ofthe fuel used (in Btu/gallon); and • Electrical powerproduced (in kW-hr). 6.5.6 For each engine, each load, and each pollutant (CO, COz, NOx, PM, PMz.s, 

### PMw, VOC), the permittee shall determine emission rates in g/kW-hr. Pollutant test data obtained in accordance with Condition 6.5 or fuel usage monitoring data maybeused to calculate COz and PM. [40 CFR §§ 

### 52.21 and 71.6(a)(1), (a)(3) and (c)(l)] 6.6 Developer Main Generator Engines (GEN-1 through GEN-8) Emission and Operating Limits 

### 6.6.1 The permittee shall not discharge or cause the discharge ofemissions into the atmosphere in excess ofthe following from each ofthe main generator engines on a rolling 24-hour average basis: 6.6.1.1 NOx BACT Emission Limit: 12.0 g/kW-hr. 6.6.1.2 VOC BACT Emission Limit: 6.6.1.2.1 2.15 g/kW-hr for engine loads< 55%, or 6.6.1.2.2 1.73 glkW-hr for engines**loads~** 

### 55%.

Statoil OCS-EPA-R4012-M1 08/14/14 22

### 6.6.1.3 PMw 

### BACT Emission Limit: 6.6.1.3.1 0.50 glkW-hr for engine loads< 55%; or 6.6.1.3.2 0.26 g/kW-hr for engines**loads~** 

### 55%. 6.6.1.4 PM2.s BACT Emission Limit: 6.6.1.4.1 0.49 g/kW-hr for engine loads< 55%; or 6.6.1.4.2 0.26 g/kW-hr for engines**loads~** 

### 55%. 6.6.2 The permittee shall not discharge or cause the discharge ofemissions into the atmosphere in excess ofthe following from the eight main generator engines combined on a rolling 12-month total basis. 6.6.2.1 NOx BACT Emission Limit: 416.15 TPY. 6.6.2.2 VOC BACT Emission Limit: 66.12 TPY. 6.6.2.3 PMw 

### BACT Emission Limit: 12.81 TPY. 6.6.2.4 PM2.s BACT Emission Limit: 12.43 TPY. 6.6.3 The permittee shall use the following BACT workpractice standards: 6.6.3.1 Main generator engines with low NOx tuning design, including turbocharger, aftercooler, open crankcase ventilation system, and high injectionpressure fuel system; 6.6.3.2 Good combustionpractices based on the most recent manufacturer's specifications for these engines issued at the time that the engines are operating under this permit; 6.6.3.3 Diesel fuel with sulfur content less than or equal to 15 ppm byweight ultralow sulfur diesel; 6.6.3.4 Engines certified to 40 CFR part 94 Tier 1orbetter emissions standards; and 6.6.3.5 Additional enhanced work practice standards including, but not limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to engine-specific maintenance manuals.

23 Statoil OCS-EPA-R4012-M1 08/141146.6.4 Monitoring and Recordkeeping: Thepermittee shall monitorNOx, VOC, PMw, and PMz.s emissions at a determined reference Oz or COz concentrationbythe use ofan EPA-approved continuous emissions monitoring system, an EPA-approved parametric monitoringmethod, or withpriorwritten approval bythe EPA, an EPA approved stack testing emissions monitoringmethod or an alternative parametric monitoringmethod, pursuant to Condition 6.22. 6.6.5 Reporting: All informationrequired to be collected, recorded, ormaintained pursuant to Conditions 6.6 and 6.22 shall be submitted to EPAbythe permittee in accordance with the reporting specifications detailed in Conditions 5.17. [40 CFR §§ 52.21, 71.6(a)(1), 71.6(a)(3), and 71.6(c)(1)] 6.7 Developer Emergency Generator Engine (EGEN) Standards & Limits 6.7.1 Thepermittee shall use the following BACT Work Practice Standards: 6.7.1.1 An emergency generator engine with low NOx engine design, including turbocharger, aftercooler, open crankcase ventilation system, and electronic fuel injection; 6.7.1.2 Good combustion practices based on the mostrecent manufacturer's specifications for this engine issued at the time that the engine is operating underthis permit; 6.7.1.3 Diesel fuel with sulfur content less than or equal to 15 ppmbyweight ultralow sulfur diesel; 6.7.1.4 Engines certified to 40 CFRpart 89 Tier 1orbetter emission standards; and 6.7.1.5 Additional enhanced work practice standards including, butnot limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommendedmaintenance schedules, and providing access to engine-specific maintenance manuals. 6.7.2 Operating Limit: This engine shall be operated no more than 39 hours per year ofnonemergency, planned operation time on a rolling 12-month averagebasis. 6.7.3 Monitoring, Recordkeeping, and Reporting: 6.7.3.1 Thepermittee shall maintain a record ofhours ofoperation and sum such hours on a rolling 12-monthbasis in accordance with Condition 6.23. 6.7.3.2 All informationrequired to be collected, recorded, ormaintained pursuant to Conditions 6.7 and 6.23 shall be submitted to EPAbythe permittee in accordance withthe reporting specifications detailed in Condition 5.17. [40 CFR §§ 52.21, 71.6(a)(1), 71.6(a)(3), and 71.6(c)(l)]

24 Statoil OCS-EPA-R4012-M1 08/141146.8 Developer Cementing Unit Engines (CMU-1 and CMU-2) Standards & Limits 6.8.1 The permittee shall use the BACT workpractice standards: 6.8.1.1 Cementingunit engines with low NOx engine design, including turbocharger, aftercooler, open crankcase ventilation system, and electronic fuel injection; 6.8.1.2 Good combustion practices based onthe most recent manufacturer's specifications issued for these engines at the time that the engines are operatingunder this permit; 6.8.1.3 Diesel fuel with sulfur content less than or equal to 15 ppmbyweight ultralow sulfur diesel; 6.8.1.4 Engines certified to 40 CFRpart 94 Tier 2 orbetter emissions standards; and 6.8.1.5 Additional enhanced work practice standards including, but not limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to engine-specific maintenance manuals. 6.8.2 Operating Limit: These engines shall be operated no more than a combined total of300 hours per year on a rolling 12-month average basis. 6.8.3 Monitoring, Recordkeeping, and Reporting: 6.8.3.1 Thepermittee shall maintain a record ofhours ofoperation and sum such hours on a rolling 12-monthbasis in accordance with Condition 6.23. 6.8.3.2 All information required to be collected, recorded, ormaintained pursuant to Conditions 6.8 and 6.23 shall be submitted to EPA bythe permittee in accordance with the reporting specifications detailed in Condition 5.17. [40 CFR §§ 52.21, 71.6(a)(l), 71.6(a)(3), and 71.6(c)(l)] 6.9 Developer Life Boat Engines (LB-1 through LB-4) and Fast Rescue Boat Engine (MOB) Standards and Operating Limits 6.9.1 Operating Limit: These engines shall be operated no more than 12 hours for each unit per year ofnon-emergency, planned operation time on a rolling 12-monthtotal basis. 6.9.2 The permittee shall use good combustionpractices based onthe most recent manufacturer's specifications issued for these engines at the time that the engines are operating under this permit. 6.9.3 Monitoring, Recordkeeping, and Reporting:

25 Statoil OCS-EPA-R4012-M1 08/141146.9.3.1 The permittee shall maintain a record ofhours ofoperation and sum such hours on a rolling 12-monthbasis in accordance with Condition 6.23. 6.9.3.2 All information required to be collected, recorded, or maintained pursuant to Condition 6.9 and 6.23 shall be submitted to EPA bythe permittee in accordance with the reporting specifications detailed in Condition 5.17. [40 CFR §§ 52.21 and 71.6(a)(1), (a)(3) and (c)(1)] 6.10 Developer Non-engine Related Standards and Operating Limits 6.10.1 Source Identification: Cement and Barite Transfer Activities (CEMENT-BARITE) 6.10.1.1 As a BACT workpractice standard, the permittee shall use proper maintenance and operation ofthe enclosed pneumatic conveyance dust collector system based onthe most recent manufacturer's specifications for the system issued at the time that project activities are conducted under this permit. 6.10.1.2 Thepermittee shall vent all system exhaust under the ocean surface. 6.10.1.3 Thepermittee shall perform a daily visual check ofthe dust collector system and maintain a record ofdaily inspections and system maintenance. 6.10.2 Source Identification: Welding Activities (WELD) 6.10.2.1 As a BACT work practice standard, the permittee shall usebest managementpractices including, but not limited to, following the most recent manufacturer's specifications for all equipment used in welding operations issued at the time that project activities are conducted underthis permit. 6.10.2.2 Thepermittee shall maintain an accurate record ofthe types and quantity (inpounds) ofwelding rods used on a rolling 12-monthbasis for the purpose ofcalculating actual emissions pursuant to Condition 5.21. 6.10.3 Source Identification: Painting Activities (PAINT) 6.10.3.1 As BACT workpractice standards, the permittee shall usebest management practices that include, but are not limited to, the following:

6.10.3.1.1 Limit the amount ofpainting that is performed on the vessel; 6.10.3.1.2 Use ofpaint rollers instead ofsprayers where practical; 6.10.3.1.3 Use ofhigh volume, low pressurepaint sprayers with a minimum transfer efficiency of65%, operated within the manufacturer's recommended pressure range, and following the mostrecent manufacturer's specifications issued at the time that coating operations are conducted underthis permit;

26 Statoil OCS-EPA-R4012-M1 08/14/146.10.3 .1.4 Down spraying ofpaint where possible; 6.10.3.1.5 Use ofa containment system such as a shroud or a barrier around the section ofthe drillship beingpainted whenever practical to reduce airborne particulate matter; 6.10.3 .1.6 Proper storage ofcoatings and thinners in appropriately labeled, non-leaking containers; and 6.10.3 .1.7Thepermittee shall maintain and record the types and amounts (in gallons) ofcoatings and thinners used on a weeklybasis. 6.10.3.1.8 Maintenance ofMSDS information for all paints and thinners used while conductingpainting activities under this permit. 6.10.3 .2 The permittee shall record the following: 6.10.3.2.1 Types and quantity (in gallons) ofall paints and thinners used on a rolling 12-monthbasis; 6.10.3 .2.2 Method ofapplication (sprayed orrolled); and 6.10.3.2.3 Location wherepainting activity occurs (inside or outside). 6.10.4 Source Identification: Mud Degassing (MUD) 6.10.4.1 As a BACT work practice standard, the permittee shall use proper maintenance and operation ofthe mud degassing operations units in accordance with the most recent manufacturer's specifications for all equipment used in mud handling operations issued at the time that project activities are conducted underthis permit. 6.10.4.2 The permittee shall monitor and record the type ofmud used and throughput for each type on a rolling 12-monthbasis. 6.10.5 Source Identification: Fugitive Emissions (FUG) 6.10.5.1 As a BACT work practice standard, the permittee shall use good maintenance practices to minimize fugitive emissions from valves, pump seals, and flanges, including a daily visual inspection and prompt repair of leaking components. 6.10.5.2 The permittee shall visually inspect components daily and maintain the following information:

• Date ofinspection; • Type ofcomponent; • Method ofleak detection used; • Date and duration ofany leak detected from critical components; • Corrective action taken; • Date ofcorrective action;

27 Statoil OCS-EPA-R4012-M1 08/14/14• Date ofcomponent re-inspection; • Name ofperson inspecting equipment (printed); and • Signature ofperson inspecting equipment. 6.10.6 Source Identification: Storage Tank Emissions (FO CMV ST, FO MOB ST, FO SER ST 1 and 2, FO SET ST 3 and 4, FO ST 1through 4, FO LB ST 1through 4, FO EGEN ST, AV ST 1 through 3, WO ST 1 and 2) 6.10.6.1 As a BACT workpractice standard, the permittee shall use good maintenance practices in accordance with the mostrecent manufacturer's specifications for all storage tanks on the drilling vessel at the time that project activities are conducted underthis permit. 6.10.6.2 Thepermittee shall use a submerged fill system for tanks FO ST 1through 4 and FO SER ST 1 and 2. 6.10.6.3 The permittee shall use EPA's TANKS 4.0.9d program to calculate emissions for annual reporting. 6.10.6.4 The permittee shall maintain the following information:

• Storage tank ID; • Tank dimensions; • Fuel type stored; and • Capacity ofeach storage tank. [40 CFR §§ 52.21 and 71.6(a)(1), (a)(3) and (c)(l)] 6.11 Developer Fuel Consumption Limits 6.11.1 The drill rig is limited to an annual consumption of2,459,150 gallons ofdiesel fuel on a rolling 12-monthtotal basis. 6.11.2 In the event that

### Developer and 

### DiscovererAmericas are operated sequentially during any rolling 12-monthbasis, the fuel consumption limits in Conditions 6.11.1 and 6.19.1 shall beprorated based on daily vessel usage. Thepermittee shall not operate 

### Developer and 

### DiscovererAmericas concurrently within the lease blocks specified in section 3 ofthis permit. 6.11.3 Compliance with this operating limit will be demonstrated by calculating and maintaining a record ofmonthly fuel consumptionbased on information obtained pursuant to Condition 6.11.4 for the duration ofthe drilling campaign to obtain the annual fuel usage. 6.11.4 The permittee shall monitor and maintain a contemporaneous record ofthe following information:

• Number ofbarrels/gallons ofdiesel fuel on the rig at the start ofdrilling operations; • Date ofeach diesel fuel delivery; • Number ofbarrels/gallons ofdiesel fuel in each delivery; 28 Statoil OCS-EPA-R4012-M1 08/14/14• Name ofpersonrecording delivery (printed); • Signature ofrecorder; and • Number ofbarrels/gallons ofdiesel fuel onthe rig at the end ofeach month. [40 CFR §§ 52.21 and 71.6(a)(l), (a)(3) and (c)(l)] 

### 6.12 Discoverer Americas Main Generator Engines (GEN-1 through GEN-6) NOx Emission Limits 6.12.1 NOx BACT Emission Limit: The permittee shall not discharge or cause the discharge ofemissions into the atmosphere in excess of 12.7 g/kW-hr for each ofthe main generator engines on a rolling 24-hour averagebasis. 6.12.2 NOx BACT Work Practice Standards: 6.12.2.1 The permittee shall use main generator engines with low NOx engine design, including turbocharger, aftercooler, and high injection pressure. 6.12.2.2 The permittee shall use good combustion practices based on the manufacturer's current specifications for these engines. 6.12.2.3 Thepermittee shall use additional enhanced work practice standards as detailed in Section 5.3.1.16 ofthe September 2012 application (provided in the administrative record). These practices shall include, but are not limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to engine-specific maintenance manuals. 6.12.2.4 The permittee shall use an engine performance management and monitoring system that employs parametric or continuous emissions monitoring, such as described in Condition 6.22, to establish indicatorranges for maintenance evaluation and repair. 6.12.3 Compliance Demonstration Method: The permittee shall monitorNOx emissions bythe use ofan EPA-approved continuous emissions monitoring system, an EPA-approved parametric monitoring method, or, withprior written approval bythe EPA, an EPA approved stack testing emissions monitoring method, or, an alternativeparametric monitoring method, pursuant to Condition 6.22. 6.12.4 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.22. [40 CFR §§ 52.21, 71.6(a)(l), 71.6(a)(3), and 71.6(c)(l)] 

### 6.13 Discoverer Americas Emergency Generator Engine (EGEN) NOx Standards & 

### Limits 6.13.1 NOx BACT Work Practice Standards: 6.13.1.1 Thepermittee shall use an emergency generator engine with lowNOx engine design, including turbocharger, aftercooler, and high injection pressure. 

### 29 Statoil OCS-EPA-R4012-Ml 08/14/146.13.1.2 Thepermittee shall use good combustionpractices based onthe manufacturer's current specifications for this engine. 6.13.1.3 Thepermittee shall use additional enhanced work practice standards as detailed in Section 5.3.1.16 ofthe September2012 application (provided in the administrative record). These practices shall include, but are not limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to engine-specific maintenance manuals. 6.13.2 Operating Limit: This engine shall be operated no more than 41 hours per year ofnonemergency, planned operation time on a rolling 12-month average basis. 6.13.2.1 Compliance Demonstration Method: Compliance with the operating limit set forth in Condition 6.13.2 will be assured bymaintaining a record oftotal monthly operating hours, identifying and describing anyperiods of emergencyuse. 6.13.2.2 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.23. [40 CFR §§ 52.21, 71.6(a)(1), 71.6(a)(3), and 71.6(c)(1)] 6.14 Discoverer Americas Forklift Engines (FORK-1 and FORK-2) NOx Standards & Limits 6.14.1 NOx BACT Work Practice Standards: 6.14.1.1 Thepermittee shall use forklift engines with EPA rated interim Tier 4 or better engines. 6.14.1.2 The permittee shall use good combustion practices based on the manufacturer's current specifications for these engines. 6.14.1.3 Thepermittee shall use additional enhanced work practice standards as detailed in Section 5.3.1.16 ofthe September 2012 application (provided in the administrative record). These practices shall include, but are not limited to, specialized personnel training, having an equipmentmaintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to engine-specific maintenance manuals. 6.14.2 Operating Limit: These engines shall be operated no more than 237 hours per year for each engine on a rolling 12-month averagebasis. 6.14.2.1 Compliance Demonstration Method: Compliance with the operating limit set forth in Condition 6.14.2 will be assured bymaintaining a record oftotal monthly operatinghours.

30 Statoil OCS-EPA-R4012-M1 08/14/146.14.2.2 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.23. [40 CFR §§ 52.21, 71.6(a)(1), 71.6(a)(3), and 71.6(c)(1)] 6.15 Discoverer Americas Emergency Air Compressor Engines (ACOMP-1 and ACOMP-2) NOx Standards & Limits 6.15.1 NOx BACT Emission Limit: The permittee shall not discharge or cause the discharge ofemissions into the atmosphere in excess ofa combined 0.01 tons ofNOx per year on a rolling 12-monthtotal basis. 6.15.2 NOx BACT Work Practice Standards: 6.15.2.1 The permittee shall use emergency air compressor engines with low NOx engine design, includingturbocharger and aftercooler. 6.15.2.2 The permittee shall use good combustionpractices based on the manufacturer's current specifications for these engines. 6.15.2.3 The permittee shall use additional enhanced work practice standards as detailed in Section 5.3.1.16 ofthe September 2012 application (provided in the administrative record). Thesepractices shall include, but are not limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly engine inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to engine-specific maintenance manuals. 6.15.3 Operating Limit: These engines shall be operated no more than 3 hours per year for each engine ofnon-emergency, planned operation time on a rolling 12-month average basis. 6.15.3.1 Compliance Demonstration Method: Compliance with the operating limit set forth in Condition 6.15.3 will be assured bymaintaining a record oftotal monthly operating hours, identifying and describing any periods of emergencyuse. 6.15.3.2 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.23. [40 CFR §§ 52.21, 71.6(a)(l), 71.6(a)(3), and 71.6(c)(1)] 6.16 DiscovererAmericas Cargo Hold Heater (HTR) Standards & Limits 6.16.1 NOx BACT Work Practice Standards: 6.16.1.1 The permittee shall use good combustionpractices based on the manufacturer's current specifications for this unit.

Statoil OCS-EPA-R4012-M1 08/14/14 316.16.1.2 The permittee shall use additional enhanced work practice standards as detailed in Section 5.3.1.16 ofthe September 2012 application (provided in the administrative record). These practices shall include, but are not limited to, specialized personnel training, having an equipment maintenance specialist available at all times during drilling activities, conducting weekly inspections, adhering to manufacturer-recommended maintenance schedules, and providing access to a unit-specific maintenance manual. 6.16.2 Operating Limit: This unit shall be operated no more than 2 hours per year on a rolling 12-month average basis. 6.16.2.1 Compliance Demonstration Method: Compliance with the operating limit set forth in Condition 6.16.2 will be assured bymaintaining a record oftotal monthly operating hours. 6.16.2.2 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.23. [40 CFR §§ 52.21 and 71.6(a)(1), 71.6(a)(3) and 71.6(c)(l)] 

### 6.17 DiscovererAmericas Life BoatEngines (LB-1 through LB-6) NOx OperatingLimits 6.17.1 Operating Limit: These engines shall be operated no more than 12 hours for eachunit per year ofnon-emergency, planned operation time on a rolling 12-monthtotal basis. 6.17.2 Compliance Demonstration Method: Compliance with this operating limit will be assured bymaintaining a record oftotal monthly operating hours, identifying and describing anyperiods ofemergencyuse. 6.17.3 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.23. [40 CFR §§ 52.21 and 71.6(a)(1), 71.6(a)(3) and 71.6(c)(1)] 

### 6.18 Discoverer Americas FastRescue BoatEngine (MOB) NOx OperatingLimits 6.18.1 Operating Limit: This engine shall be operated no more than 12 hours per year ofnonemergency, planned operation time on a rolling 12-monthtotal basis. 6.18.2 Compliance Demonstration Method: Compliance with this operating limit will be assured bymaintaining a record oftotal monthly operatinghours, identifying and describing anyperiods ofemergencyuse. 6.18.3 Monitoring and recordkeeping shall be conducted in accordance with Condition 6.23. [40 CFR §§ 52.21 and 71.6(a)(l), (a)(3) and (c)(l)] 

### 6.19 DiscovererAmericas Fuel ConsumptionLimits 6.19.1 The drill rig is limited to an annual consumption of2,179,983 gallons ofdiesel fuel on a rolling 12-monthtotal basis.

32 Statoil OCS-EPA-R4012-M1 08/14/146.19.2 Compliance with this operating limit will be demonstrated bycalculating and maintaining a record ofmonthly fuel consumption based oninformation obtained pursuant to Condition 6.19.3 for the duration ofthe drilling campaign to obtain the annual fuel usage. 6.19.2.1 In the event thatDeveloper andDiscovererAmericas are operated sequentially during anyrolling 12-monthbasis, the emission limits in 6.11.1 and 6.19.1 shall beproratedbased on daily vessel usage. The permittee shall not operateDeveloper and DiscovererAmericas concurrently within the lease blocks specified in section 3 ofthis permit. 6.19.3 The permittee shall monitor and maintain a contemporaneous record ofthe following information:

• Number ofbarrels/gallons ofdiesel fuel onthe rig at the start ofdrilling operations; • Date ofeach diesel fuel delivery; • Number ofbarrels/gallons ofdiesel fuel in each delivery; • Name ofperson recording delivery (printed); • Signature ofrecorder; and • Number ofbarrels/gallons ofdiesel fuel onthe rig at the end ofeach month. [40 CFR §§ 52.21 and 71.6(a)(l), (a)(3) and (c)(1)] 6.20 Offshore SupportVessels OperatingLimits 6.20.1 Offshore support vessels like the Peyton Candies or any substitute OSV shall not exceed a total of2,570 hours per year on a rolling 12-monthtotal basis when within 25 miles ofthe drilling vessel. 6.20.2 Offshore support vessels like the Peyton Candies or any substitute OSV shall not exceed a total of621 ,468 gallons ofdiesel fuel peryear on a rolling 12-monthtotal basis when within 25 miles ofthe drilling vessel. 6.20.3 Offshore support vessels like the Peyton Candies or any substitute OSV shall not combust any diesel fuel with sulfur content greaterthan 0.0015 percent by weight. 6.20.4 Compliance with this operating limit will be demonstrated through the monitoring and recordkeeping conditions as set forth in Condition 6.24. [40 CFR §§ 52.21, 55.2, 55.6(a)(4), 71.6(a)(l), 71.6(a)(3), and 71.6(c)(l)] 6.21 Crew Boats OperatingLimits 6.21.1 Crew boats like the Sybil Graham or any substitute crewboat shall not exceed a total of 618 hours per year on a rolling 12-month total basis when within 25 miles ofthe drilling vessel. 6.21.2 Crew boats like the Sybil Graham or any substitute crew boat shall not exceed a total of 235,176 gallons ofdiesel fuel per year on a rolling 12-monthtotal basis when within 25 miles ofthe drilling vessel.

33 Statoil OCS-EPA-R4012-M1 08/14/146.21.3 Crewboats like the Sybil Graham or any substitute crew boat shall not combust any diesel fuel with sulfur content greaterthan 0.0015 percentbyweight. 6.21.4 Compliance with this operating limit will be demonstrated throughthe monitoring and recordkeeping conditions as set forth in Condition 6.24. [40 CFR §§ 52.21, 55.2, 55.6(a)(4), 71.6(a)(l), 71.6(a)(3), and 71.6(c)(l)] 6.22 Compliance Monitoring and Recordkeeping Requirements for Main Generator Engines In accordance with Condition 5.16, the permittee shall monitor and record NOx, 

### COz, CO, VOC, and PM/PM10/PMz.s emissions (at a determined reference 

### Oz concentration) from the main generator diesel engines (GEN-1 through GEN-8 onthe Developer and GEN-1 through GEN-6 ontheDiscoverer Americas) bythe use ofan EPA-approved parametric monitoring method as described in Condition 6.22.1, or an EPA-approved continuous emissions monitoring system described in Condition 6.22.2, or, with priorwritten approval bythe EPA, a stack testing emissions monitoring system as described in Condition 6.22.3, or a combination ofthese methods, as necessary for different pollutants or engines. 6.22.1 Parametric Monitoring (Compliance Monitoring Option #1) 6.22.1.1 Thepermittee shall properlymonitor and record emissions ofone ofmore ofthe subject regulated airpollutants (NOx, 

### COz, CO, VOC, and PM/PM10/PMz.s) from the main generator diesel engines specified in Condition 6.22 byusing a parametric monitoring system such as the Transocean Diesel Engines with Turbochargers (DEWT) monitoring system orits equivalent uponpriorwritten approval by EPA. 6.22.1.2 Thepermittee shall monitor and record the following parameters once every 30 seconds for 30 minutes twice a day:

• Charge Air Pressure (kPa) after air cooler; • Charge Air Temperature (Celsius) after air cooler; • Turbocharger RPM A&B (RPM); • Engine Air Inlet Pressure (kPa); • Engine Air Inlet Temperature (Celsius); • Engine Air Inlet Relative Humidity(%); • Generator Load (kW); and • Regulated pollutant Emission Concentrations (ppm) and 

### Oz or 

### COz concentration (%) 6.22.1.3 Thepermittee shall record the date and time ofthe most recent NOx analyzer calibration method used to calibrate and the results. 6.22.1.4 permittee shall determine the average emission rate ofthe monitored air pollutant (glkW-hr) for each engine from the emission rate results in each rolling 24-hourperiod, and total annual emissions inTPY on a 12-month rollingbasis. 6.22.2 Continuous Emissions Monitoring (Compliance Monitoring Option#2)

34 Statoil OCS-EPA-R4012-M1 08/14/146.22.2.1 The permittee shall install, calibrate, maintain, and operate a continuous emissions monitoring system with a plan approved bythe EPA to monitor and record emissions from the main generator engines specified in Condition 6.22. 6.22.2.2 The permittee shall obtain stack gas volumetric flow rates using a calibrated flow monitorthat records data on a continuous basis. 6.22.2.3 The permittee shall monitor and record engine electric power output in kWhr. 6.22.2.4 The quality assurance plan used bythepermittee for the certification and operation ofthe continuous emissions monitoring system shall bemade available to the EPA upon request. 6.22.2.5 The permittee shall determine the average emission rate in g/k:W-hr for each engine from the hourly emission rate results in each rolling 24-hourperiod, and total annual emissions in TPY on a 12-monthrolling basis. 6.22.3 Stack Testing Emissions Monitoring (Compliance Monitoring Option #3) 6.22.3.1 The permittee shall properlymonitor and record emissions from diesel engines specified in Condition 6.22 bycollecting stack testing data within the previous 12 months according to an EPA approved protocol and in accordance with Conditions 5.26 and 6.22.3.2 through 6.22.3.7. Data collected prior to issuance ofthis permit maybeused with EPA approval. After three annual/periodic stack tests ofthe same drilling vessel, stack test frequency maybereduced upon written approval bythe EPA. 6.22.3.2 Each stack test shall be conducted at three different loads spanning the expected range ofoperations. 6.22.3.3 During each test run, the permittee shall monitor and record the following information:

• Densityofthe fuel used in lbs/gallon; • Heat content ofthe fuel used in Btu/gallon; and • Electrical powerproduced in kW-hr. 6.22.3.4 The permittee shall prepare a graph ofengine load versus emission rates expressed in g/k:W-hr for each engine. Plot the engine load as the independent (or x) variable and the pollutant emission rates as the dependent (or y) variable for each load point tested. Construct the graphby drawing straight-line segments between each load point. Draw a horizontal line to the y-axis from the minimum load point tested. 6.22.3.5 The permittee shall use the load information with the graph ofengine load versus emission rates to determine the emission rate in g/k:W-hr for each engine load recorded. Linear interpolation shall beused to determine the

35 Statoil OCS-EPA-R4012-M1 08/14/14emission rate when the actual load falls between two tested load points. When the engine load exceeds the maximum load measured during the stack testing, the glk:W-hr emission rate obtained for the highest load point tested during the most recent stack test maybeused. Whenrecords of engine load are not available, the highest glk:W-hr emission rate calculated for all the load points tested during the most recent stack test maybe substituted. The average emission rate for each hour ofoperation from all individual emission rate results recorded during the hour will then be calculated. 6.22.3.6 Thepermittee shall determine the average emission rate in glk:W-hr for each engine from the hourly emission rate results in each rolling 24-hourperiod and total annual emissions in TPY on a 12-monthrollingbasis. [40 CFR §§ 52.21, and 71.6(a)(l), (a)(3) and (c)(l)] 

### 6.23 Compliance Monitoring and RecordkeepingRequirements for Emergency Generators, Small (<500 hp) Engines, and Cargo Hold Heater Pursuant to Conditions 6.7 through 6.10 and 6.13 through 6.18 and in accordance with Condition 5.16, the permittee shall monitor and maintain a contemporaneous record ofthe monthlyhours of operation ofthe emergency generator engines (EGEN onboth the drill rig Developer and the drillship DiscovererAmericas), the cargo hold heater ontheDiscovererAmericas, and the small on-board diesel engines (CMU-1 and CMU-2, LB-1 through LB-4, and MOB on theDeveloper and FORK-1 and FORK-2, ACOMP-1 and ACOMP-2, LB-lthrough LB-6 and MOB on the DiscovererAmericas). Hours ofoperation shall be recorded monthly from a non-resettable hour meter or, ifsuch a meter is not available, bymonitoring and maintaining a contemporaneous record ofthe following information:

• Unit ID; • Date/time equipment started; • Date/time equipment shut down; • Narne ofperson operating equipment (printed); and • Signature ofperson operating equipment. [40 CFR §§ 52.21, 55.8, and 71.6(a)(l), (a)(3) and (c)(l)] 

### 6.24 Compliance Monitoring and Recordkeeping Requirements for SupportVessel Engines In accordance with Condition 5.16, the permittee shall demonstrate compliance with support vessel operational limits pursuant to Conditions 6.20 and 6.21 bymaintaining a record ofsupport vessel operating time and diesel fuel use within a 25 mile radius ofthe drilling vessel and during standby time at the drilling vessel. The permittee shall monitor and maintain a contemporaneous record of the following information for vessels used in support ofthe permitted activities:

• Date/time entering the 25 mile radius; • Date/time exiting the 25 mile radius; • Sulfur content ofall fuel used in any engine as specified in Condition 6.3; • Gallons ofdiesel fuel on the support vessel entering the 25 mile radius; • Gallons ofdiesel fuel on the support vessel exiting the 25 mile radius. and • Gallons ofdiesel fuel loaded on to the support vessel within the 25 mile radius. [40 CFR §§ 52.21, 55.2, 55.6(a)(4), 55.8, and 71.6(a)(1), (a)(3) and (c)(1)] 36 Statoil OCS-EPA-R4012-M1 08/14/146.25 Reporting Requirements All information required to be collected, recorded, ormaintained pursuant to Conditions 6.3 through 6.21 shall be submitted to EPA bythe permittee in accordance with the reporting specifications detailed in Condition 5.17. [40 CFR § 71.6(a)(3)(iii) and 55.8] 6.26 New Source Performance Standards and National Emission Standardfor Hazardous Air Pollutants (HAP) Requirements 6.26.1 The main generator engines, emergency generator engine, and cementing unit engines on theDeveloper drill rig (Units GEN-1 through GEN-8, EGEN, CMU-1, and CMU-2) and the main generator engines, emergency generator engine, and forklift engines, on theDiscovererAmericas (GEN-1 through GEN-6, FORK-I, and FORK-2) are subject to 40 CFRpart 60, subpart IIII based on engine size, per cylinder displacement, and model year. Thepermittee shall demonstrate compliance with the applicable requirements through the following: 6.26.1.1 The permittee shall maintain documentation in accordance with Condition 5.16 that engines specified in Condition 6.26.1 were installed and configured according to manufacturer's specifications. 6.26.1.2 Thepermittee shall maintain records in accordance with Condition 5.16 of manufacturer data indicating compliance with EPA Tier standards, if applicable, to the engine. 6.26.1.3 The permittee shall operate and maintain the engines according to the manufacturer's written instructions orprocedures developed bythe permittee that are approved in writing bythe engine manufacturer. The permittee shall only change those settings that are approved bythe manufacturer. The permittee shall maintain records ofthe manufacturer's written instructions for operation and maintenance ofthe engine orthe procedures the permittee developed that are approved in writing bythe manufacturer in accordance with Condition 5.16. 6.26.1.4 Thepermitted engines shall not combust any diesel fuel that does not meet the requirements ofCondition 6.3. 6.26.2 The emergency generator and emergency air compressor engines onthe Discoverer Americas (EGEN, ACOMP-1, and ACOMP-2) are subject to 40 CFR part 60, subpart IIII based on the per cylinder displacement and model year. Thepermittee has been granted a technical exemption pursuant to 40 CFR § 55.7 from the emission standard certification requirement of40 CFR 60, subpart IIII and must comply with the following: 6.26.2.1 The permittee shall demonstrate compliance with alternate emissions standards as specified in Condition 6.15.

37 Statoil OCS-EPA-R4012-Ml 08/14/146.26.2.2 Thepermittee shall complywithrequirements defined in Conditions 6.26.1.1 through 6.26.1.4. 6.26.3 Based on engine model years and engineuse (summarized in Tables 1 and 2 of Section 4), the main generator engines, emergency generator engine, and cementing unit engines ontheDeveloper drill rig (Units GEN-1 through GEN-8, EGEN, CMU-1, and CMU-2) and the main generator engines, emergency generator engine, forklift engines, and emergency air compressor engines ontheDiscovererAmericas (GEN-1 through GEN-6, EGEN, FORK-I, FORK-2, ACOMP-1, and ACOMP-2) are subject to and shall complywith the applicable requirements of40 CFRpart 63, subpart ZZZZ. Thepermittee shall demonstrate compliance with subpart ZZZZ for each engineby demonstrating compliance with the applicable requirements of40 CFRpart 60, subpart IIII and Conditions 6.26.1 and 6.26.2.] 6.26.4 Compliance with the requirements ofCondition 6.26 shall be determined based upon recordkeeping required bythe Annual Compliance Certification set forth in Condition 5.21. 6.26.5 Anynew, modified, or reconstructed engine shall complywith all applicable NESHAP and NSPS, includingbut not limited to 40 CFRpart 60, subpart IIII and 40 CFRpart 63, subpart ZZZZ, or obtain a technical exemption under40 CFR § 55.7.

6.26.6 The permittee shall notify EPA prior to use ofany new, modified, or reconstructed engine intended to beused onthe drilling vessel orinreplacement ofan engine in Tables 1 and 2 ofSection 4 ofthis permit, and shall submit to EPA a reevaluation ofthe applicability ofpertinentNESHAP and NSPS regulations, as well as copies ofthe manufacturer engine certification to EPA standards. [40 CFR §§ 55.7, 55.8, 60 subpart IIII, 63 subpart ZZZZ, 71.6(a)(l), 71.6(a)(3) and 71.6(c)(l)]

38 Statoil OCS-EPA-R4012-Ml 08/14114