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-R4012, for Statoil Gulf Services, LLC (Statoil), DeSoto 

Canyon Drilling Exploration Project

Public Notice & August 9, 2013: 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, 2013: 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 Hearing: If there is a significant degree of public interest, a hearing will be held

September 16, 2013, from 5:30 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 proposed 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 Developer

drill rig or the Transocean Discoverer Americas drill ship, and associated crew 

and support vessels. Drilling operations may occur for up to180 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 Number

OCS-EPA-R4012 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 V 
program at 40 CFR part 71. The draft 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 

regulations 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 

east 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 sources in the Gulf of Mexico east of longitude 87.5°W.

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

agency for leasing and drilling approvals, as well as implementation of the 

Clean Air Act west of 87.5° longitude.

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

scenario drilling vessel and support vessels are summarized in the following 

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 63.32 60.08 100 No

NOX

1

484.26 559.72 40 Yes

VOC127.65 24.82 40 No

PM 10.63 10.16 25 No

PM10 9.81 9.39 15 No

PM2.5 9.51 9.14 10 No

SO2

1

0.37 0.32 40 No

CO2e 39,333.51 34,077.77 75,000 (subject to 

regulation threshold)

No

1 NOX and VOC are the measured precursors for the criteria pollutant ozone. NOX & SO2 are precursors for PM2.5.

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 NOX to control nitrogen oxides, ozone and PM2.5. 

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

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

vessels’ diesel engines.

Additional Information: The draft permit and preliminary determination/statement of basis documents 

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

Comments on the draft permit and 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