UNITED STATES ENVIRONMENTAL PROTECTION AGENCY

AIR, PESTICIDES & TOXICS MANAGEMENT DIVISION

61 Forsyth St., S. W.

Atlanta, Georgia 30303

FACT SHEET

- August 9 , 2013

ACTION: Preliminary Determination and Draft Outer Continental Shelf (OCS) Air

Permit

, OCS

- EPA

- R40 12 , for Statoil Gulf Services

, LLC ( Statoil )

, DeSoto

Canyon Drilling Exploration Project

Public Notice & August 9 , 201 3 : Publication in the Panama City News

Comment Period: Herald, Mobile Press Register, Pensacola News Journal, Florida Register,

emails to the OCS public notice list, www.regulations.gov , and the EPA

Region 4’s website at:

http://www.epa.gov/region4/air/permits/ocspermits/ocspermits.html

September 9 , 201 3 : Close of Public Comment Period

. If a public hearing is

held, the public comment period will automatically be extended to the close of

the public hearing.

Public H earing : If there is a significant degree of public interest, a hearing will be held

September 16 , 2013, from 5:3 0 pm

– 7: 00 pm at:

Bay County Public Library

898 W 11th St

Panama City, FL 32401

(850) 522

- 2119

.

If a public hearing is held, EPA staff will be available prior to the hearing,

from 4:00

- 5:30 pm to answer questions and provide additional information on

this proposed action during an informal public information session.

Project: Statoil has applied for an OCS air permit pursuant to section 328 of the Clean

Air Act (CAA) from EPA Region 4 . The pr oposed air permit will regulate

emissions from a proposed exploratory drilling operation within the DeSoto

Canyon lease area of the OCS. The proposed project will include mobilization

and operation of one of two deep water drilling vessels , the Maersk Deve loper

drill rig or the Transocean Discoverer Americas drill ship

, and associated crew

and support vessels . Drilling operations may occur for up to 1 8 0 days per year

within Statoil’s DeSoto Canyon lease blocks for a period of five to ten years

. The proposed project is for exploratory drilling only and does not include the

establishment of any permanent production platforms. If resource discoveries

are made during exploration activities, subsequent facilities including any

necessary production platforms would be permitted separately.

The EPA has completed review of Statoil’s application in addition to all

supplemental materials provided and is proposing to issue Permit N umber

OCS

- EPA

- R40 12 to Statoil for a multi

- year exploratory drilling program

subject to the terms and conditions described in the draft permit. This project is

considered a major source under the applicable Prevention of Significant

Deterioration (PSD) regulations 40 CFR part 52.21 and is subject to the title Vprogram at 40 CFR part 71. The dra ft permit incorporates applicable

requirements from the federal PSD and title V operating permit programs,

New Source Performance Standards (NSPS), and National Emission Standards

for Hazardous Air Pollutants (NESHAP) as required by the OCS air quality

reg ulations in 40 CFR part 55.

Project Location: Statoil proposes to conduct exploratory drilling at multiple sites within its

DeSoto Canyon lease blocks designated Lease Sale areas 213 and 222 . These

lease blocks (numbers 143, 187, 188, 230, 231, 625, 669, 670, 671, 715, 716,

759, 760, and 804) are located in OCS waters of the Gulf of Mexico east of

longitude 87.5 °, approximately 160 miles southeast of the mouth of the

Mississippi River and 200 miles southwest of Panama City, Florida The

northwest corner of lease block 143, the closest point within the specified lease

blocks to any state’s shoreline, is located on OCS waters of the Gulf of Mexico

e ast of longitude 87.5 o W at latitude 28. 85o N and longitude 86.42 o W

.

Authority: EPA Region 4 is the agency responsible for implementing and enforcing CAA

requirements for OCS sou rces in the Gulf of Mexico east of longitude 87.5° W.

The Department of Interior , Bureau of Ocean Energy Management, is the lead

a gency for lea sing and drilling approvals, as well as implementation of the

Clean Air Act west of 87.5 ° longitude

.

Emissions: The maximum potential ann ual emissions in tons per year for each operating

scenario drilling vessel and support vessel s are summarized in the fo llowing

table:

Potential to Emit for Regulated NSR Pollutants

Pollutant Scenario 1

( Developer )

Tons per Year Scenario 2

( Discoverer Americas )

Tons per Year Significant Emission

Rate

Tons per Year PSD Review

Required

CO 63.3 2 60. 08 100 No

NO X 1 484. 26 559.7 2 40 Yes

VOC 1 27.65 2 4.82 40 No

PM 10. 63 10.16 25 No

PM 10 9. 81 9.39 15 No

PM 2.5 9. 51 9.14 10 No

SO 2 1 0. 37 0.3 2 40 No

CO 2 e 39,333.5 1 34,077. 77 75,000 (subject to

regulation threshold) No

1 NO X and VOC are the measured precurs ors for the criteria pollutant o zone. NO X & SO 2 are precursors for PM 2.5

.

A full air quality impact analysis was performed for this operation. A

summary of the results of the air quality impact analysis is available in the

preliminary determination (see additional information below).

Control Technology: Statoil is required to apply Best Available Control Technology (BACT) for

emissions of NO X to control nitrogen oxides, ozone and PM 2.5

.

BACT for this project will include the use of engines with intake air cooling

and turbo chargers, good combustion and power management practices, andenhanced engine performance management and maintenance on the drilling

vessels’ diesel engines.

Additio nal Information: The draft permit and preliminary determination /statement of basis document s

that explain the permit conditions are available on EPA Region 4’s website at :

http://www.epa.gov/region4/air/permits/ocspermits/ocspermits.html

EPA Contact: For questions regarding the draft permit and public hearing, contact:

Lori Shepherd

Air Permits Section

Air, Pesticides and Toxics Management Division

U.S. EPA Region 4

61 Forsyth Street, SW

Atlanta, GA 30303

(404) 562

- 8435

Email: shepherd.lorinda@epa.gov

C omments on the draft permit an d requests for a public hearing should be addressed to :

U.S. EPA Region 4

Air Permits Section, APTMD

61 Forsyth Street, SW

Atlanta, GA 30303

Email: R4OCSpermits@epa.gov