Document ID: EPA-R08-OAR-2018-0658-0021
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2020-05-27T04:00Z

Air Pollution Control
Federal Title V Permit to Operate
Statement of Basis for Permit No. V-UO-002002-2017.01
                                       
                         Cobra Oil and Gas Corporation
                            Wolf Flat Tank Battery
                      Uintah and Ouray Indian Reservation
                              Uintah County, Utah

 Facility Information

 Location

Cobra Oil and Gas Corporation's (Cobra) Wolf Flat Tank Battery (Wolf Flat) is located on Indian country lands within the Uintah and Ouray Indian Reservation, in the northeastern part of the state of Utah, in Uintah County. Wolf Flat is located at NE/SW Section 15, Township 9S, Range 22E, Latitude 39.567442N, Longitude -109.751009W. The facility mailing address is:

Cobra Oil and Gas Corporation
2201 Kell Boulevard
Witchita Falls, Texas  76308

 Contact

Facility Contact:
Bobby Hess, Operations Supervisor
Cobra Oil and Gas Corporation
2201 Kell Boulevard
Wichita Falls, Texas  76308
(940) 716-5100
Email: bhess@cobraogc.com

Responsible Official:
Edward Winters, Environmental Health and Safety Coordinator
Cobra Oil and Gas Corporation
2201 Kell Boulevard
Wichita Falls, Texas  76308
(940) 716-5100
Email: edward@cobraogc.com

Tribal Contact:
Mike Natchees, Director, Air Quality Program
Ute Indian Tribe
P.O. Box 70
Fort Duchesne, Utah  84026
(435) 725-4950
Email: MikeN@utetribe.com
      

C.	Part 71 Permitting History

Wolf Flat's initial 40 CFR part 71 (Part 71) Title V operating permit was issued on November 28, 2018 (Permit # V-UO-002002-2017.00). The EPA received a request for a permit amendment as specified in 40 CFR 71.7 for Wolf Flat on April 1, 2019, requesting to operate as a small glycol dehydrator under   40 CFR part 63, subpart HH (Subpart HH) at a major source while also retaining the large glycol dehydration unit requirements. Since the requested change was during the public comment period, the permit was administratively amended on May 27, 2020, rather than undergoing a minor permit modification. The EPA has amended the Part 71 permit by adding requirements to the permit to allow the dehydration unit to operate at a major source as both small and large as defined by Subpart HH as it pertains to actual annual natural gas flowrate for limiting emissions in §63.765(b)(1)(iii). The operator has indicated the current operations and throughput vary at this dehydration unit and has asked for operational flexibility in the Part 71 permit. In addition, the EPA revised organizational division names and mail codes in the permit to reflect our recent realignment. The amendments constitute minor revisions in the permit and therefore can be classified as Administrative Permit Amendments under permit condition V.H and 40 CFR 71.7(d).

D.	Description of Operations

The Wolf Flat accepts natural gas fluids produced from two surrounding well sites via a gathering pipeline system. The fluid stream undergoes a separation process at the inlet to the tank battery in two onsite heater-treater separators that separate the stream into natural gas, condensate and produced water. The natural gas is then routed through a 10 million standard cubic foot per day (MMscfd) triethylene glycol (TEG) dehydrator and then routed to a sales line. The produced water is routed to two onsite produced water tanks, and the condensate is routed to two onsite natural gas condensate tanks. The produced water and condensate are then trucked off location for further processing or treatment

E.	Emission Points

Table 1 lists emissions units and emissions generating activities, including any air pollution control devices. The Title V Operating Permit Program at Part 71 allows the Permittee to separately list in the permit application units or activities that qualify as "insignificant" based on potential emissions below 2 tons per year (tpy) for all regulated pollutants that are not listed as hazardous air pollutants (HAPs) under section 112(b) and below 1,000 lbs/year or the de minimis level established under section 112(g), whichever is lower, for HAPs. However, the application may not omit information needed to determine the applicability of, or to impose, any applicable requirement. Units and activities that qualify as "insignificant" for the purposes of the Part 71 application are in no way exempt from applicable requirements or any requirements of the Part 71 permit.
      

Table 1  -  Emission Units and Emission Generating Activities
                                       
                                  Unit I.D.  
                                       
                                  Description
                                       
                               Control Equipment
                                    DEHY-1

                                     HTR-1

Valerus, 36" x 10'0" TEG Dehydrator, 10 MMscfd

Serial No. FG210255                             Installed: 2010

FlameCo, SB 18-12
Heater for Glycol Reboiler on DEHY-1, 0.500 MMBtu/hr*

Serial No. 1010-84                                Installed: 2/1/2011

                                    COMB-1
                          (not federally enforceable)
                                       
                                       
                                       
                                       
                                     None

                                    COMB-1
Valerus, FG211206, 48" Combustor

                                                               Installed: 2010
                                     None
                                     HTR-2
NatCo, SB 24-14 (IEU*)
Separator Heater, 1.000 MMBtu/hr 

Serial No. 1006-953                              Installed: 2/1/2011
                                     None
                                     HTR-3
NatCo, SB 24-14 (IEU)
Separator Heater, 1.000 MMBtu/hr 

Serial No. 1006-270                              Installed: 2/1/2011
                                     None
                                 TK-1 and TK-2
Two 400 bbl* Condensate Storage Tanks
                                     None
                                 PW-1 and PW-2
Two 400 bbl* Produced Water Storage Tanks
                                     None
                                      L-1
Condensate Truck Loadout (IEU)
                                     None
                                     FUG-1
Fugitive Emissions (IEU)
                                     None
IEU = Insignificant Emissions Unit; bbl = barrel; MMscfd = million standard cubic feet per day; MMBtu/hr = million British thermal units per hour.

F.	Potential to Emit 

Pursuant to 40 CFR 52.21, potential to emit (PTE) is defined as the maximum capacity of a stationary source to emit a pollutant under its physical and operational design. Any physical or operational limitation on the capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part of its design if the limitation, or the effect it would have on emissions, is federally enforceable. Independently enforceable applicable requirements are considered enforceable to the extent that the source is in compliance with the standard. In addition, beneficial reductions in non-targeted pollutants resulting from compliance with an independently enforceable applicable requirement may be counted towards PTE provided the emission reduction of the non-targeted pollutant is enforceable as a practical matter and compliance is being met. See the 1995 guidance memo signed by John Seitz, Director of the Office of Air Quality Planning and Standards titled, "Options for Limiting Potential to Emit of a Stationary Source under Section 112 and Title V of the Clean Air Act".
Cobra reported the emissions unit-specific PTE in their Part 71 permit application. 
The PTE in Table 2 are based on the applicable legally and practically enforceable requirements outlined in the draft permit. 

Table 2  -  Potential-to-Emit with Legally and Practically Enforceable Controls
                                       
                                     NOX*
                                      CO*
                                     VOC*
                                      PM*
                                     SO2*
                                    Benzene
                                  Total HAPs*
                                     CO2e*
                                    DEHY-1
                                       -
-
                                    159.69
                                       -
                                       -
                                     53.21
                                    101.60
                                     4277
                                    COMB-1
0.71
0.59
                                     0.01
                                     0.03
                                     0.00
                                     0.00
                                     0.00
                                      198
                                     HTR-1
0.21
0.18
                                     0.01
                                     0.06
                                     0.00
                                     0.00
                                     0.00
                                      232
                                     HTR-2
                                     0.43
                                     0.36
                                     0.02
                                     0.09
                                     0.00
                                     0.00
                                     0.01
                                      465
                                     HTR-3
                                     0.43
                                     0.36
                                     0.02
                                     0.09
                                     0.00
                                     0.00
                                     0.01
                                      465
                                 TK-1 and TK-2
                                       -
                                       -
                                     63.48
                                       -
                                       -
                                     0.03
                                     1.22
                                      173
                                 PW-1 and PW-2
                                       -
                                       -
                                     5.08
                                       -
                                       -
                                     0.03
                                     0.10
                                      277
                                      L-1
                                       -
                                       -
                                     0.38
                                       -
                                       -
                                       -
                                       -
                                       -
                                     FUG-1
                                       -
                                       -
                                     4.05
                                       -
                                       -
                                     0.00
                                     0.01
                                      153
                                     TOTAL
                                     1.78
                                     1.50
                                    232.75
                                     0.30
                                     0.01
                                     53.30
                                    103.16
                                     6242
*NOX = nitrogen oxide; CO = carbon monoxide; VOC = volatile organic compound; PM = particulate matter; SO2 = sulfur dioxide; HAP = hazardous air pollutant; CO2e = equivalent CO2. 

 Applicable Requirements Review

The following sections discuss the information provided by Cobra in their Part 71 application, certified to be true and accurate by the Responsible Official of this facility.

        40 CFR 52.21 - Prevention of Significant Deterioration 

The Prevention of Significant Deterioration (PSD) Permit Program at 40 CFR part 52 (Part 52) is a preconstruction review requirement of the Clean Air Act (CAA) that applies to proposed projects in areas classified as attainment, attainment/unclassifiable, or unclassifiable for the National Ambient Air Quality Standards (NAAQS) that are sufficiently large (in terms of emissions) to be a "major" stationary source or "major" modification of an existing stationary source. Source size is defined in terms of PTE, which is its capability at maximum design capacity to emit a pollutant, except as constrained by existing legally and practically enforceable conditions applicable to the source. A new stationary source or a modification to an existing minor stationary source is major if the proposed project has the PTE for any pollutant regulated under the Part 52 requirements in amounts equal to or exceeding specified major source thresholds, which are 100 tpy for 28 listed industrial source categories and 250 tpy for all other sources. The PSD Permit Program also applies to modifications at existing major sources that cause a "significant net emissions increase" at that source. Significance levels for each pollutant are defined in the PSD regulations at 40 CFR 52.21. 
 
According to information provided by Cobra in the initial Part 71 permit application, at the time of its construction, the Indian country lands within the Uintah and Ouray Indian Reservation were designated attainment, attainment/unclassifiable, or unclassifiable for all NAAQS and Wolf Flat was a minor source of emissions with respect to the PSD Permit Program, as the PTE did not exceed the major source thresholds of any criteria pollutants regulated under the PSD Permit Program. As such, the source was not subject to preconstruction permitting requirements of the PSD Permit Program. 
 40 CFR 49.166  -  Federal Major New Source Review Program for Nonattainment Areas in Indian Country
            
The Federal Major New Source Review (NSR) Program for Nonattainment (NA) Areas in Indian Country (NNSR Permit Program) at 40 CFR part 49 is a preconstruction review requirement of the CAA that applies to proposed projects that are sufficiently large (in terms of emissions) to be a "major" stationary source or "major modification" of an existing stationary source in an area that the EPA has designated nonattainment for a NAAQS (See 40 CFR 49.167). Similar to the PSD Permit Program, source size is defined in terms of PTE, but a new stationary source or a modification to an existing stationary source is major if the proposed project has the PTE for any pollutant regulated under the      40 CFR part 49 requirements in amounts equal to or exceeding specified major source thresholds defined in 40 CFR part 51, Appendix S.

On April 30, 2018, the EPA designated portions of the Indian country lands within the Uintah and Ouray Indian Reservation as marginal nonattainment for the 2015 ozone NAAQS, effective on August 3, 2018. Wolf Flat is located within that marginal ozone nonattainment area. Appendix S lists the marginal ozone nonattainment major source threshold for VOC or NOX emissions as 100 tpy. As such, although at the time of construction, Wolf Flat was considered a minor source with respect to the PSD Permit Program, it is now considered an existing major source for VOC with respect to the NNSR Permit Program. The preconstruction review requirements of the NNSR Permit Program would apply to any future proposed 
modification at Wolf Flat that exceeds 100 tpy of VOC or NOX emissions. Wolf Flat remains a minor source with respect to PSD for all other criteria pollutants. 

C. 	Source Determination

At 40 CFR 71.2, a major source is generally defined as any stationary source (or any group of stationary sources that are located on one or more contiguous or adjacent properties, and are under common control of the same person (or persons under common control)), belonging to a single major industrial grouping and that are a major source as described in the definition. On June 3, 2016, the EPA published a final rule clarifying when oil and natural gas sector equipment and activities must be deemed a single source when determining whether major source permitting programs (PSD and New Source Review preconstruction permit programs, and the Part 71 Permit Program) apply (81 FR 35622). By clarifying the term "adjacent," the rule specifies that equipment and activities in the oil and natural gas sector that are under common control will be considered part of the same source if they are located on the same surface site or on individual surface sites that share equipment and are within (1/4) mile of each other. 

According to information provided by Cobra in their initial Part 71 application, there are no surface sites with shared emissions equipment within (1/4) mile from the Wolf Flat facility. 
      
 40 CFR Part 60, Subpart A: General Provisions

This subpart applies to the owner or operator of any stationary source which contains an affected facility, the construction or modification of which is commenced after the date of applicability of any standard in 40 CFR part 60 (Part 60). The general provisions under subpart A apply to sources that are subject to the specific subparts of Part 60. 

As explained below, no emissions units operating at Wolf Flat are subject to Part 60; therefore, the General Provisions of Part 60 do not apply.
 40 CFR Part 60, Subpart Kb: Standards of Performance for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels) for which Construction, Reconstruction, or Modification Commenced After July 23, 1984
      
This subpart establishes requirements for controlling VOC emissions from storage vessels with a capacity greater than or equal to 75 cubic meters that are used to store volatile organic liquids for which construction, reconstruction, or modification commenced after July 23, 1984.
      
According to the information provided by Cobra in their Part 71 application, the condensate tanks, TK-1 and TK-2, at this facility are exempt from these requirements, pursuant to §60.110b(d)(4), because they store condensate prior to custody transfer and have a capacity of less than 10,000 bbls.

 40 CFR Part 60, Subpart KKK: Standards of Performance for Equipment Leaks of VOC from Onshore Natural Gas Processing Plants
      
This subpart establishes requirements for controlling fugitive VOC emissions from onshore natural gas processing plants. It applies to natural gas processing plants that commenced construction, reconstruction, or modification after January 20, 1984.

According to the information provided by Cobra in their Part 71 application, Wolf Flat is not a natural gas processing plant, therefore the facility is not subject to this subpart.
      
 40 CFR Part 60, Subpart LLL: Standards of Performance for SO2 Emissions From Onshore Natural Gas Processing for Which Construction, Reconstruction, or Modification Commenced After January 20, 1984, and on or Before August 23, 2011
      
This subpart applies to sweetening units and sulfur recovery units at onshore natural gas processing facilities. As defined in this subpart, sweetening units are process devices that separate hydrogen sulfide (H2S) and CO2 from a sour natural gas stream. Sulfur recovery units are defined as process devices that recover sulfur from the acid gas (consisting of H2S and CO2) removed by a sweetening unit.
      
According to the information provided by Cobra in their Part 71 application, neither sweetening nor sulfur recovery are performed at the facility. Therefore, this facility is not subject to this subpart.

 40 CFR Part 60, Subpart JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines
      
This subpart establishes emission standards and compliance requirements for the control of emissions from stationary spark ignition internal combustion engines (ICE) that commenced construction, modification, or reconstruction after June 12, 2006, and are manufactured on or after specified manufacture trigger dates. The manufacture trigger dates are based on the engine type, fuel used, and maximum engine horsepower.
      
According to the information provided by Cobra in their Part 71 application, there are no spark ignition ICE operating at the facility. Therefore, this facility is not subject to this subpart.

 40 CFR Part 60, Subpart OOOO: Standards of Performance for Crude Oil and Natural Gas production, Transmission, and Distribution
      
This subpart establishes emission standards for the control of VOC and SO2 emissions from affected facilities that commence construction, modification, or reconstruction after August 23, 2011. Affected facilities include, but are not limited to well completions, centrifugal compressors, reciprocating compressor, pneumatic controllers, storage vessels, and sweetening units.
      
According to the information provided by Cobra in their Part 71 application, the current equipment at Wolf Flat predates the applicability date for this subpart. Therefore, Wolf Flat is not subject to this subpart.

 40 CFR Part 60, Subpart OOOOa: Standards of Performance for Crude Oil and Natural Gas Facilities for which Construction, Modification or Reconstruction Commenced After September 18, 2015
      
This subpart establishes emission standards for the control of VOC and SO2 emissions from affected facilities that commence construction, modification, or reconstruction on or after September 18, 2015. Affected facilities include, but are not limited to well completions, centrifugal compressors, reciprocating compressors, pneumatic controllers, storage vessels and sweetening units.

According to the information provided by Cobra in their Part 71 application, the current equipment at Wolf Flat predates the applicability date for this subpart. Therefore, Wolf Flat is not subject to this subpart.

 40 CFR Part 63, Subpart A: National Emission Standards for Hazardous Air Pollutants for Source Categories, General Provisions

The requirements of 40 CFR part 63, subpart A apply to sources that are subject to the specific subparts of 40 CFR part 63. 

As explained below, the dehydrator operating at Cobra is subject to 40 CFR part 63, subpart HH; therefore, the General Provisions of 40 CFR part 63 apply.

 40 CFR Part 63, Subpart HH: National Emission Standards for Hazardous Air Pollutants from Oil and Natural Gas Production Facilities
      
This subpart establishes emission standards for the control of HAP emissions from affected units located at natural gas production facilities that process, upgrade, or store natural gas prior to the point of custody transfer, or that process, upgrade, or store natural gas prior to the point at which natural gas enters the natural gas transmission and storage source category or is delivered to a final end user. The affected units are glycol dehydration units, storage vessels with the potential for flash emissions and natural gas throughput greater than 79,500 liters per day (660 bbls/day), and the group of ancillary equipment and compressors intended to operate in volatile HAP service which is located at natural gas processing plants.
      
According to the information provided by Cobra in their Part 71 application, Wolf Flat is a major source of HAP, as defined in the subpart, and operates a glycol dehydration unit, as defined in the subpart. The operator has indicated the current operations and throughput vary at this unit and has asked for operational flexibility in the Part 71 permit. Therefore, this facility is subject to the major source requirements for large and small glycol dehydration units in this subpart.  
      
 40 CFR Part 63, Subpart ZZZZ (MACT ZZZZ): National Emission Standards for Hazardous Air Pollutants for Stationary Reciprocating Internal Combustion Engines
      
This subpart establishes emission standards and operating limitations for the control of HAP emissions from reciprocating and compression ignition engines (RICE).
      
According to the information provided by Cobra in their Part 71 application, there are no RICE operating at the facility. Therefore, this facility is not subject to this subpart.

 40 CFR Part 64: Compliance Assurance Monitoring
      
Pursuant to requirements concerning enhanced monitoring and compliance certification under the CAA, the EPA promulgated regulations to implement compliance assurance monitoring (CAM) for major stationary sources of air pollution, for purposes of Title V permitting that are required to obtain operating permits under Part 71. The rule requires owners or operators of such sources to conduct monitoring that provide a reasonable assurance of compliance with applicable requirements under the CAA. The effective date of this rule is November 21, 1997.
 CAM Applicability
      
According to 40 CFR 64.2(a), CAM applies to each pollutant specific emission unit (PSEU) located at a major source which is required to obtain a Part 71 permit if the unit satisfies all of the following criteria:
      
             The unit is subject to an emission limitation or standard for the applicable regulated air pollutant other than an emissions limitation or standard that is exempt under 
      40 CFR 64.2(b)(1); 
      
             The unit uses a control device to achieve compliance with any such limit or standard; and
            
             The unit has pre-control device emissions of the applicable regulated pollutant that are equal to or greater than 100 percent of the amount, in tpy, required for a source to be classified as a major Title V source.
            
 CAM Plan Submittal Deadlines
      
       Large PSEUs. A CAM plan submittal for all PSEUs with the PTE (taking into account control devices) of any one regulated air pollutant in an amount equal to or greater than 100% of the amount, in tpy, required for a source to be classified as a major source, is due at the following times:
            
 On or after April 20, 1998, if by that date, a Part 71 application has either:
                        
                   Not been filed; or 
                   Not yet been determined to be complete.
            
            
 On or after April 20, 1998, if a Part 71 permit application for a significant modification is submitted with respect to those PSEUs for which the requested permit revision is applicable; or
            
 Upon application for a renewed Part 71 permit and a CAM plan has not yet been submitted with an initial or a significant modification application, as specified above.
            
       Other PSEUs. A CAM Plan must be submitted for all PSEUs that are not large PSEUs, but are subject to this rule, upon application for a Part 71 renewal permit.

Based on the information provided by Cobra in their Part 71 application, dehydration unit DEHY-1 is a PSEU with pre-controlled emissions that equal or exceed 100% of the Title V major source HAP thresholds. However, DEHY-1 is subject to the major source requirements of 40 CFR part 63, subpart HH and thus meets the exemption criteria of §64.2(b)(1). Since no other PSEUs at the facility have pre-controlled emissions that exceed or equal 100% of the Title V major source thresholds, Wolf Flat is not subject to CAM requirements.

 EPA Authority

Title V of the CAA requires that the EPA promulgate, administer, and enforce a federal operating permit program when a state does not submit an approvable program within the time frame set by Title V or does not adequately administer and enforce its EPA approved program. On July 1, 1996 (61 FR 34202), the EPA adopted regulations codified at 40 CFR part 71 setting forth the procedures and terms under which the Agency would administer a federal operating permit program. These regulations were updated on February 19, 1999 (64 FR 8247) to incorporate the EPA's approach for issuing federal operating permits to stationary sources in Indian country.
      
As described in 40 CFR 71.4(a), the EPA will implement a Part 71 program in areas where a state, local, or tribal agency has not developed an approved Part 70 program. Unlike states, tribes are not required to develop operating permits programs, though the EPA encourages tribes to do so. See, e.g., Indian Tribes: Air Quality Planning and Management (63 FR 7253, February 12, 1998) (also known as the "Tribal Authority Rule"). Therefore, within Indian country, the EPA will administer and enforce a 
Part 71 federal operating permit program for stationary sources until a tribe receives approval to administer their own operating permit program.
      
 Use of All Credible Evidence

Determinations of deviations, continuous or intermittent compliance status, or violations of the permit are not limited to the testing or monitoring methods required by the underlying regulations or this permit; other credible evidence (including any evidence admissible under the Federal Rules of Evidence) must be considered by the Permittee and the EPA in such determinations.