Document ID: EPA-R08-OAR-2023-0274-0004
Agency: epa
Document Type: Supporting & Related Material
Title: 
Posted Date: 2023-06-26T04:00Z

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 UNITED STATES ENVIRONMENTAL PROTECTION AGENCY
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REGION 8
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1595 Wynkoop Street
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Denver, CO   80202-1129
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Phone 800-227-8917
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www.epa.gov/region8

Ref: 8ARD-PM

Mr. Bernie Fox 
      Thunder Butte Petroleum Services, Chief Executive Officer
      Mandan, Hidatsa, and Arikara (MHA) Nation dba 
Thunder Butte Petroleum Services, Inc.
      Tribal Administration Building 
330 Main Street, P.O. Box 1227
New Town, North Dakota 58763 

Re:Application Incompleteness Determination for the Synthetic Minor New Source Review Permit Thunder Butte Petroleum Services, Inc., Crude Oil Topping Plant

Dear Mr. Bernie Fox:

The Environmental Protection Agency Region 8 has completed its review of Thunder Butte Petroleum Services, Inc.'s (TBPS) May 2, 2023 application for a tribal Synthetic Minor New Source Review permit (SMNSR). This action was requested in accordance with the Federal Minor New Source Review (MNSR) Permit Program in Indian Country at 40 CFR part 49 for a proposed modification at the existing TBPS Crude Oil Storage and Transfer Facility, located on the Fort Berthold Reservation in Ward County, North Dakota. TBPS is proposing to construct a crude oil Topping Plant and is requesting synthetic minor restrictions to maintain allowable emissions for the facility below the major source thresholds of the Title V Operating Permit Program (title V) at 40 CFR part 71 and the major source thresholds of the major New Source Review Program (NSR) at 40 CFR part 52.21.

Pursuant to 40 CFR 49.154(b) and (d) and 49.158, EPA has determined that the application submitted in support of permitting the proposed TBPS Topping Plant is incomplete. As drafted, the application discusses the integration of eight previously permitted crude oil storage tanks at the Crude Oil Storage Facility into the Topping Plant. Six of these tanks were most recently permitted in the tribal synthetic minor NSR permit SMNSR-TAT-000781-2021.002 issued in June 2022. As the current version of the application makes clear, these six tanks are proposed to be integrated into the Topping Plant operations and are integral to the successful operation of the proposed facility. In previous conversations with TBPS's consultant on December 8, 2022, EPA noted that if the intent was to integrate the six tanks into a Topping Plant, that it would require the entirety of the project to be integrated into and approved as one permitting action.  

Accordingly, Region 8 has determined that all activities listed in the June 2022 permit and the proposed Topping Plant application, as submitted, should be permitted in a single permit. As discussed in the 2009 Project Aggregation rule, the proposed Topping Plant and activities permitted in the June 2022 SMNSR permit are substantially related and as such, EPA is requesting the following: 

TBPS notify Region 8 by July 24, 2023 if it intends to proceed with the Topping Plant that incorporates the six tanks into its operations. 
If TBPS wishes to continue the Topping Plant project, Region 8 requests that TBPS stop all construction activities related to the June 2022 SMNSR permit until a permit is issued aggregating the six tanks and the Topping Plant. If EPA determines that an SMNSR is still appropriate for the Topping Plant, EPA will reopen the June 2022 permit to correct the material defect of omitting the Topping Plant from that permit and proceed to re-issue the permit according to the requirements of 40 CFR §49.159(a) and 40 CFR §49.159(e). This reopening and reissuing of an SMNSR permit will require a public notice and comment period under the provisions of 40 CFR §49.157.
If TBPS does not wish to continue with the Topping Plant project, construction on the six tanks under the June 2022 permit may continue. 

This permit action has been assigned to Mr. Donald Law and has been given permit number SMNSR-TAT-000781-2023.003. If you have any questions, or if you'd like to schedule a meeting to discuss this matter further, please contact him at Law.Donald@epa.gov or (303) 312-7015. A copy of the application provided by TBPS may be reviewed electronically online through Docket #EPA-R08-OAR-2023-0274 at https://www.regulations.gov. We look forward to hearing from you and working with you and your company as you consider pursuing the Topping Plant permit.

Sincerely,

Adrienne Sandoval
Director
Air and Radiation Division

cc:Chairman Mark Fox  -  MHA Nation
Mr. John Fredericks, Legal Counsel  -  MHA Nation
Mr. Edmund Baker, Environmental Director  -  MHA Nation
Ms. Lisa Lone Fight, Senior Scientific Advisor  -  MHA Nation
Mr. Kenny Lyson, Director  -  MHA Energy Department
Ms. Catherine Everett  -  MHA Energy Liaison