[Federal Register Volume 65, Number 10 (Friday, January 14, 2000)]
[Notices]
[Pages 2391-2396]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-620]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6518-3]


Slotted Guidepoles at Certain Petroleum and Organic Liquid 
Storage Vessels

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of Proposed Storage Tank Emission Reduction Partnership 
Program and Request for Comments.

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SUMMARY: In today's Federal Register the Environmental Protection 
Agency (``EPA'') reaffirmed the applicability of certain NSPS Subpart 
Ka/Kb requirements to slotted guidepoles. EPA believes there are a 
substantial number of affected facilities with slotted guidepoles and, 
therefore, intends to establish a program for reducing their emissions 
in an expeditious, highly cost-effective manner. EPA solicits comments 
on the Storage Tank Emission Reduction Partnership Program described 
below.

DATES: Comments should be submitted by February 28, 2000.

ADDRESSES: Comments must be submitted to: Air Enforcement Division 
(Mail Code 2242A), Environmental Protection Agency, Ariel Rios 
Building, 1200 Pennsylvania Avenue, NW., Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Mr. James K. Jackson, Air Enforcement 
Division (2242A), Environmental Protection Agency, Ariel Rios Building, 
1200 Pennsylvania Avenue, NW., Washington, DC 20460, telephone (202) 
564-2002.

SUPPLEMENTARY INFORMATION: Slotted guidepoles are hollow poles with 
holes or ``slots'' that perforate the length of the pole and that are 
typically a foot-long and 1-2 inches wide. Where the pole passes 
through a floating roof, there is an opening in the roof and a gap 
between the pole and the roof. These holes, slots and gaps contribute 
to evaporative product losses and volatile organic compound (VOC) 
emissions. VOCs include a wide variety of hydrocarbons, some of which 
are hazardous air pollutants (e.g., benzene, toluene, xylene and ethyl 
benzene). Depending on the size, location and contents of a tank, 
uncontrolled emissions from slotted guidepoles can exceed 25,000 pounds 
per year. Relatively simple and inexpensive solutions exist to minimize 
these emissions and reduce evaporative losses.
    A substantial but undetermined number of NSPS Subpart Ka/Kb tanks 
have slotted guidepoles. EPA is aware of at least 70 such tanks at 10 
refineries in 4 EPA Regions, but the universe of all such tanks is much 
broader than refineries. They may be found at any facility that stores 
substantial quantities of volatile organic liquids, including petroleum 
products (e.g., refineries, gasoline distribution terminals, chemical 
plants and other facilities). Several EPA Regions have settled 
enforcement actions by requiring companies to install controls on their 
slotted guidepoles. EPA understands

[[Page 2392]]

that certain other companies have also installed slotted guidepole 
controls. In the interests of promoting fast, efficient and widespread 
emission reductions, EPA intends to offer and enter into agreements 
with companies that installed or will install controls to reduce 
slotted guidepole emissions at their NSPS Subpart Ka/Kb tanks. As under 
EPA's policy concerning voluntary disclosure, this opportunity will be 
available only to owners/operators of affected NSPS Subpart Ka/Kb 
facilities that are not currently the subject of an enforcement action 
based upon their use of slotted guidepoles. See Incentives for Self-
Policing: Discovery, Disclosure, Correction and Prevention of 
Violations, 60 FR 66706 (December 22, 1995).
    The American Petroleum Institute (``API'') has actively 
participated on this and related tank issues, suggesting that this 
matter could be resolved by establishing a cooperative emissions 
reduction program for tanks with slotted guidepoles. EPA engaged in 
discussions with API on the scope, appropriateness and terms of such a 
program, the result being the below-described program, appendices and 
related attachments.
    During our discussions with API an issue arose over the use of 
slotted guidepoles at internal floating roof tanks. API agreed that 
they should be included in the program but urged that no add on 
controls be required (as under the existing source Refinery MACT 
1). EPA's Office of Air Quality Planning and Standards 
(OAQPS) has been requested to: (1) identify and quantify the emissions 
from slotted guidepoles at internal floating roof tanks without add-on 
controls; (2) assess whether slotted guidepoles at internal floating 
roof tanks should be exempt from add on control requirements; and, if 
so, (3) decide whether a rulemaking is necessary and will be pursued to 
resolve the issue. If OAQPS commits to a rulemaking for these internal 
floating roof tanks, EPA may exclude them from this program. Comments 
are solicited on whether and what add-on controls could be installed at 
internal floating roof tanks with slotted guidepoles to reduce their 
evaporative product emissions.
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    \1\ New refinery tanks are subject to the same or similar 
slotted guidepole requirements as under NSPS Subpart Ka/Kb. Compare 
40 CFR 63.646(a), 63.119(b) and 63.119(c) with 40 CFR 60.112a(a) and 
60.112b(a). Since existing sources are not subject to these 
requirements, 40 CFR 63.646(c), the Refinery MACT is less stringent 
than NSPS Subparts Ka/Kb at such sources.
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    EPA believes the Storage Tank Emission Reduction Partnership 
Program will result in substantial emission reductions through 
installing low cost controls while avoiding the time and expense of 
litigation. Since these emission controls also reduce potentially 
significant evaporative product losses, EPA believes that the total 
annualized cost of controls (with product recovery credits) could be 
less than $0.
    EPA's proposal offers clear and consistent terms to reduce 
uncertainty, inform company decisions and eliminate the need for 
extended, individualized negotiations:
     The agreement would identify acceptable slotted guidepole 
controls. See APPENDIX I (Acceptable Controls for Slotted Guidepoles 
under the Storage Tank Emissions Reduction Partnership Program). EPA 
previously determined that floats and wipers (i.e., gasketed covers) 
complied with applicable control requirements under NSPS Subparts Ka 
and Kb. Based on information provided by API, EPA believes that several 
other approaches are as or more effective in reducing emissions and 
evaporative product loses and are, therefore, identified as being 
acceptable in APPENDIX I. Suggestions for and comments on other 
controls/approaches are solicited.
     The agreement would not require that penalties be paid as 
a condition of program participation. EPA believes that immediate 
emission reductions under this program would be preferable to 
initiating enforcement actions seeking penalties under the Clean Air 
Act. Nonetheless and if a participating company fails to implement its 
agreed-to controls in a timely manner, stipulated penalties under its 
agreement with EPA would be imposed. This program addresses federal 
requirements and federal enforcement only; states may have more 
stringent requirements.
     EPA would specify the terms and conditions for program 
participation through a standard participation agreement that each 
participant must execute. See APPENDIX II. Comments on the specific 
terms and conditions of that agreement are solicited, including the 
possible use of binding arbitration to resolve certain disputes if and 
to the extent such may then be permitted under the Alternative Dispute 
Resolution Act.
    To aid informed company decision making on whether to participate, 
EPA intends to establish a realistic implementation schedule based on a 
progression of activities:
    1. Each program participant will notify EPA of its intent to 
participate within 60 days of a final program notice. Such early 
registration will enable better resource planning and coordination by 
the Agency and participating companies.
    2. Participants must then assess all of their NSPS Subpart Ka/Kb 
tanks with slotted guidepoles. A company could withdraw from the 
program even after completing this assessment, but EPA anticipates that 
few will do so.
    3. Each company will be required to submit an executed 
participation agreement to EPA, including a complete Annex A, within 
240 days of the final program notice. Annex A would identify all that 
company's NSPS Subpart Ka/Kb tanks with slotted guidepoles, specify 
when acceptable controls were or will be installed on such tanks and 
predict emission reductions that will result from the installation of 
these controls. The accuracy of all information submitted to EPA will 
be certified by a responsible corporate official. Companies that 
already installed acceptable controls on some, many or all of their 
NSPS Subpart Ka/Kb affected facilities can participate in this program 
and benefit from its certainty and protections, provided such 
facilities are identified and included in Annex A.
    4. EPA will execute the participation agreement and issue an 
enforceable order incorporating the company-supplied Annex A if no 
deficiencies are identified (e.g., Annex A's schedule for installing 
controls is or will be consistent with applicable requirements under 
Section 113(a)(4) of the Clean Air Act at the time the order is 
issued).
    5. As required by the agreement and order, participating companies 
would then install controls as expeditiously as possible.
    EPA believes that the above-described program is the best, most 
cost-effective way to achieve immediate environmental improvement and 
significant progress in resolving this issue. Its terms, conditions and 
protections will be available only to those companies that elect to 
participate. If and as appropriate, nonparticipants may be subject to 
enforcement actions in which significant penalties would be sought for 
violations of NSPS Subparts Ka and Kb.
    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August 
10, 1999), requires EPA to develop an accountable process to ensure 
``meaningful and timely input by State and local officials in the 
development of regulatory policies that have federalism implications.'' 
``Policies that have federalism implications'' is defined in the 
Executive Order to include regulations and regulatory policies that 
have ``substantial direct effects on the

[[Page 2393]]

States, on the relationship between the national government and the 
States, or on the distribution of power and responsibilities among the 
various levels of government.''
    This notice does not have federalism implications. It will not have 
substantial direct effects on the States, on the relationship between 
the national government and the States, or on the distribution of power 
and responsibilities among the various levels of government, as 
specified in Executive Order 13132. It reaffirms and publicizes prior 
EPA determinations concerning the applicability of certain federal 
requirements to the regulated community. Thus, the requirements of 
section 6 of the Executive Order do not apply to this notice.
    Comments on the approach outlined above, as well as on the specific 
items and terms reflected in the following Appendices, are solicited. 
To be considered fully, comments must be received by February 28, 2000.

    Dated: December 23, 1999.
Eric V. Schaeffer,
Director, Office of Regulatory Enforcement, Office of Enforcement and 
Compliance Assurance.

Appendix I--Acceptable Controls for Slotted Guidepoles Under the 
Storage Tank Emissions Reduction Partnership Program

    1. Pole Float System--Each opening through the deck of the 
floating roof for a slotted guidepole shall be equipped with a deck 
cover, a pole wiper and a pole float. The deck cover shall also be 
equipped with a gasket between the cover and deck. The wiper or seal 
of the pole float shall be at or above the height of the pole wiper.
    2. Alternate Control Technologies and Combinations--The 
following will inform EPA's determination of whether an alternate 
control technology is acceptable for use under the Storage Tank 
Emissions Reduction Partnership Program. An alternate control 
technology must be shown to have an emission factor less than or 
equal to the emission factor for the above-identified control 
system. Tests to determine emission factors for an alternate control 
technology shall accurately simulate conditions representative of 
the conditions under which the technology will/would operate (e.g., 
wind, temperature and barometric pressure). Such tests may utilize 
the methods listed in American Petroleum Institute (API) Manual of 
Petroleum Measurement Standards, Chapter 19, Section 3, Part A (Wind 
Tunnel test Method for the Measurement of Deck-Fitting Loss Factors 
for External Floating-Roof Tanks) or Part E (Weight Loss Test Method 
for the Measurement of Deck-Fitting Loss Factors for Internal 
Floating-Roof Tanks).
    A combination of technologies and devices to control emissions 
from slotted guidepoles and deck fittings may be acceptable under 
the Storage Tank Emissions Reduction Partnership Program if such 
alternate emits no more than the above-identified control system 
plus the same combination of deck fittings (equipped as required 
under NSPS Subpart Kb), as determined using AP-42. The emissions 
from an alternate combination of control technologies and devices 
shall be determined using AP-42 and/or as specified above.
    3. Pole Sleeve System--Each opening through the deck of the 
floating roof for a slotted guidepole shall be equipped with a deck 
cover, a pole wiper and a pole sleeve. The deck cover shall be 
equipped with a gasket between the cover and the deck. The sleeve 
extends into the stored liquid.
    4. Internal Sleeve Emission Control System--An internal 
guidepole sleeve that eliminates the hydrocarbon vapor emission 
pathway from inside the tank through the guidepole slots to the 
outside air; a guidepole cover at the top of the guidepole; and a 
well cover positioned at the top of the guidepole well that seals 
any openings between the well cover and the guidepole (e.g., pole 
wiper), any openings between the well cover and any other objects 
that pass through the well cover, and any other openings in the top 
of the guidepole well.
    5. Covers on External Floating Roof Tanks--The external floating 
roof tank shall be (or have been) modified by installing a fixed 
roof mounted on the tank above its external floating roof. Each 
opening through the deck for a slotted guidepole shall have its 
lower edge below the surface of the stored liquid.
    6. Removal of Tank from Service and Surrender of Permits--Remove 
the tank from service storing liquids subject to NSPS Ka or Kb 
controls, surrender any and all operating permits for that tank to 
the appropriate state/local regulatory authority and represent to 
such authority that it will not be used to store petroleum liquids, 
as defined in 40 CFR 60.111a(b) that have a maximum true vapor 
pressure in the range defined in 40 CFR 60.112a(a), or volatile 
organic liquids, as defined in 40 CFR 60.111b(k), that have a 
maximum true vapor pressure in the range defined in 40 CFR 
60.112b(a).
    Definitions: Deck cover means a device which covers an opening 
in a floating roof deck. Some deck covers move horizontally relative 
to the deck (i.e., a sliding cover).
    Pole float means a float located inside a guidepole that floats 
on the surface of the stored liquid. The rim of the float has a 
wiper or seal that extends to the inner surface of the pole.
    Pole sleeve means a device which extends from either the cover 
or the rim of an opening in a floating roof deck to the outer 
surface of a pole that passes through the opening. The sleeve 
extends into the stored liquid.
    Pole wiper means a seal that extends from either the cover or 
the rim of an opening in a floating roof deck to the outer surface 
of a pole that passes through the opening.
    Slotted guidepole means a guidepole or gaugepole that has slots 
or holes through the wall of the pole. The slots or holes allow the 
stored liquid to flow into the pole at liquid levels above the 
lowest operating level.

Appendix II--Storage Tank Emission Reduction Partnership Agreement

    The United States Environmental Protection Agency (``EPA'') and 
____________ (``Participating Company''), the parties herein, desire 
to enter into and be bound by the terms of this Storage Tank 
Emission Reduction Partnership Agreement (``Partnership Agreement'' 
or ``Agreement'').
    Whereas Participating Company recognizes that reducing emissions 
from tanks and other storage vessels with slotted guidepoles 
1 can improve air quality while reducing evaporative 
product losses.
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    \1\ A guidepole (also referred to as a gaugepole, gauge pipe or 
stilling well) is a vertically oriented pipe or tube that is affixed 
to a tank and that passes through its floating roof. Slotted 
guidepoles are guidepoles with slots or holes that allow stored 
liquids to flow into the pole, thereby enabling representative 
samples to be collected from within the slotted guidepole.
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    Whereas Participating Company is committed to environmental 
improvement and the cost-effective reduction of emissions.
    Whereas EPA recognizes the value of cooperative emission 
reduction programs with industry.
    Whereas Participating Company desires to participate in the 
Storage Tank Emission Reduction Partnership Program announced by EPA 
at __________ Fed. Reg. __________ (2000) (hereinafter referred to 
as ``Program notice'').
    Now, therefore, in consideration of the above and the mutual 
undertakings of each to the other, EPA and Participating Company 
agree as follows:

Applicability

    1. The provisions of this Partnership Agreement shall apply to 
and be binding upon EPA and upon Participating Company, its 
officers, directors, agents, servants, employees, successors and 
assigns. Participating Company shall give notice of this Agreement 
to any successor in interest prior to the transfer of any ownership 
interest in any tank identified in Annex A.

Representations

    2(a). Participating Company represents that:
    a. It notified EPA of its intent to participate in the Storage 
Tank Emission Reduction Partnership Program within 60 days of the 
Program notice.
    b. It assessed and evaluated each of its NSPS Subpart Ka and Kb 
affected facilities 2 with slotted guidepoles 
(hereinafter referred to as ``Tanks'') and is submitting this 
executed Partnership Agreement to EPA within 240 days of the Program 
notice.
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    \2\ NSPS Subpart Ka applies to petroleum liquid storage vessels 
with a capacity of greater than 40,000 gallons that were 
constructed, reconstructed or modified after May 18, 1978; NSPS 
Subpart Kb applies to volatile organic liquid storage vessels with a 
capacity of greater than 40 cubic meters that were constructed, 
reconstructed or modified after July 23, 1984. The equipment design 
requirements for floating roof tanks subject to NSPS Subparts Ka and 
Kb are found at 40 CFR 60.112a and 60.112b.
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    c. Annex A (attached hereto and incorporated by reference 
herein) is a true, accurate and complete identification of:

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    i. Each Tank;
    ii. The date(s) by which controls were or will be installed at 
each Tank, provided that if controls were installed before 
__________ [the date of the Program notice] that date may be used; 
and
    iii. Predicted emission reductions such controls will achieve at 
each Tank.
    d. The controls identified in Annex A were either specified in 
Appendix I to the Program notice (Acceptable Controls for Tanks with 
Slotted Guidepoles Under the Storage Tank Emission Reduction 
Partnership Program), attached hereto and incorporated by reference 
herein, or expressly determined by EPA to be acceptable for purposes 
of the Storage Tank Emission Reduction Partnership Program under 
Paragraph 2 of Appendix I.
    e. The predicted emission reductions reflected in Annex A were 
calculated and derived through the proper use of either EPA's TANKS 
software (version 3.1 or later) or an alternative methodology 
expressly determined to be acceptable for this purpose by EPA.
    f. The undersigned is a duly authorized representative of 
Participating Company, with full powers to make these 
representations, enter into this Agreement and bind Participating 
Company to the terms hereof.
    (b). The undersigned EPA representative is authorized to enter 
into this Agreement and bind EPA to the terms hereof.

Participating Company Undertakings

    3. Participating Company shall install slotted guidepole 
controls on Tanks identified in Annex A as expeditiously as possible 
(e.g., when the Tank is next taken out of service) but not later 
than:
    a. Twenty-six (26) months after issuance of the Program notice; 
or
    b. One hundred and twenty months (120) of the Program notice if 
a Tank must be taken out of service in order to instal such 
controls, provided Annex A describes why such Tank(s) must be taken 
out of service and either identifies the date(s) by which 
appropriate interim controls will be installed (i.e., a self-
aligning float equipped with at least one wiper seal gasket that is 
maintained at or above the height of the pole wiper) or describes 
why such Tank(s) must be taken out of service in order to instal 
interim controls.
    4. Participating Company shall properly operate and maintain all 
slotted guidepole controls required under Paragraph 3 in the manner 
specified in Attachment 1 and shall include such controls and this 
requirement in federally enforceable permits issued by appropriate 
permitting authorities.
    5. Participating Company shall not seek or obtain emission 
reduction credits for emission reductions that result from 
installing slotted guidepole controls under Paragraph 3 or from the 
work required under Paragraph 4 of this section, nor shall it use 
such reductions to offset or net against other emission increases in 
any permitting or enforcement action required by or taken pursuant 
to state or federal law.
    6. Participating Company agrees and by entering into this 
Agreement consents to EPA's issuance of an order under and as 
specified in Paragraph 9.

EPA Undertakings

    7. Compliance with the requirements set forth herein, including 
Paragraphs 3-6, shall be deemed and will, therefore, constitute full 
settlement and satisfaction by EPA of those violations of the 
Standards of Performance for New Sources, Subparts Ka and Kb, that 
could be or could have been alleged in civil actions or proceedings 
brought by EPA or the United States concerning Participating 
Company's use of slotted guidepoles at Tanks identified in Annex A.
    8. Within sixty (60) days of its receipt of this Partnership 
Agreement, EPA will promptly review and either sign and return a 
fully executed copy of that Agreement to Participating Company or 
identify deficiencies in Annex A. If deficiencies identified by EPA 
are not corrected and a revised Annex A submitted within thirty (30) 
days of Participating Company's receipt of such identification by 
EPA, Participating Company's opportunity to participate under the 
Storage Tank Emission Reduction Partnership Program shall then cease 
and all its rights, expectations, obligations and undertakings (if 
any) under that program and this Agreement shall terminate and be 
deemed a nullity.
    9. If and after EPA executes this Agreement as specified in 
Paragraph 8, it will issue an order to Participating Company in the 
form provided at Attachment 2.

Publicity

    10. Participating Company may publicize that it is partnering 
with EPA under the Storage Tank Emission Reduction Partnership 
Program.
    11. Upon request, EPA will recognize and acknowledge 
Participating Company's participation under this Partnership Program 
and/or industry's leadership and assistance in identifying controls 
for slotted guidepoles.

Access and Inspection

    12. Without prior notice, any authorized representative of EPA 
(including a designated contractor), upon presentation of 
credentials where Tanks are located, may enter such location(s) at 
reasonable times to determine compliance with the requirements, 
terms and conditions of this Agreement. To make such a 
determination, EPA's authorized representative(s) shall have full 
and complete access to inspect, photograph, or videotape any Tank 
and to copy such records related to Participating Company's 
undertakings under this Agreement that EPA's representative(s) may 
deem necessary, provided such is consistent with EPA's authority 
under applicable laws, permits and regulations. Access under this 
Paragraph is subject to the normal health and safety requirements in 
effect at such locations. This Paragraph is in addition to, and not 
in limitation of, EPA's authority to investigate, inspect or enter 
premises pursuant to applicable laws, permits and regulations.

Force Majeure

    13. If any event occurs that causes or may cause a delay in 
Participating Company's compliance with Paragraphs 3 or 4 of this 
Agreement, Participating Company shall notify EPA within thirty (30) 
days after Participating Company becomes aware of such event. This 
notice shall reasonably describe the anticipated length of the 
delay, the reason(s) for the delay, measures Participating Company 
has taken and will take to prevent or minimize the delay, and the 
timetable by which these measures have been or will be implemented. 
Increased costs or expenses associated with the implementation of 
this Agreement shall not be the sole or primary basis for a change 
in its terms or an extension of time. Participating Company shall 
adopt reasonable measures to avoid or minimize any such delay.
    14. If the parties agree that the delay or anticipated delay in 
compliance with Paragraph 3 of this Agreement has been or will be 
caused by circumstances beyond the reasonable control of 
Participating Company and its contractors as under Paragraph 20, the 
time for performance hereunder shall be extended for a period no 
longer than the length of the delay caused by such circumstances. 
The parties shall also then seek to agree on the period of such 
extension as under Paragraph 20, but if they cannot so agree, the 
determination by EPA shall control unless Participating Company 
invokes the formal Dispute Resolution provisions of Paragraph 21.
    15. If EPA determines that such delay, anticipated delay or any 
identified portion thereof was caused by circumstances within the 
reasonable control of Participating Company and its contractors, 
Participating Company shall be in breach of this Agreement and 
subject to stipulated noncompliance penalties as set forth in 
Paragraph 16 unless Participating Company invokes the Dispute 
Resolution provisions of this Agreement (Paragraphs 20-21).

Stipulated Noncompliance Penalties

    16. If Participating Company fails to comply with the 
requirements of Paragraphs 3 (including Annex A), 4 or 5, it shall 
pay up to $1,000 per day for the first thirty (30) days of 
noncompliance and up to $2,500 per day for each day of noncompliance 
thereafter until compliance is demonstrated. Stipulated penalties 
are to be determined for each Tank, provided that stipulated 
penalties for all noncompliance occurring on the same day shall not 
exceed $10,000 per facility at which such noncompliance exists or 
occurs and $25,000 per participating company. Payment of stipulated 
penalties shall be by cashier's check, certified check or wire 
transfer, payable to ``Treasurer, United States of America'' and 
delivered to EPA.
    17(a). If any noncompliance with Paragraphs 3, 4 or 5 is 
discovered by Participating Company, it shall so notify EPA and 
provide a written statement describing such noncompliance by the 
last day of the month following the month in which such 
noncompliance was identified by Participating Company.
     If any noncompliance with Paragraphs 3, 4 or 5 is discovered by 
EPA, it shall so notify Participating Company and there describe 
such noncompliance.
    18. After an opportunity to informally resolve issues under 
Paragraph 20, EPA will

[[Page 2395]]

demand payment of such stipulated penalties as it determines are 
appropriate under the circumstance and permitted under Paragraph 16. 
Stipulated penalties shall be paid by the last day of the month 
following the month in which such demand is made unless 
Participating Company invokes the formal Dispute Resolution 
provisions of Paragraph 21.
    19. For any noncompliance that is or could be subject to 
stipulated noncompliance penalties hereunder, EPA expressly reserves 
the right to seek any other relief to which it may be entitled under 
law, including but not limited to specific performance of this 
Agreement, injunctive relief under the Act and such other relief as 
may be available under any federal statute or the common law.

Dispute Resolution

    20. Informal. If Participating Company disputes any 
determination made by EPA pursuant to Paragraphs 14-15 (Force 
Majeure), Paragraph 18 (Stipulated Noncompliance Penalties), 
Paragraphs 32-33 (Termination) or Appendix I (Alternate Control 
Technologies) but only if such alternate was requested by 
Participating Company, it shall send a written notice to EPA 
outlining the nature of the dispute/disagreement and requesting 
informal negotiations to resolve the dispute. Such period of 
informal negotiations shall not extend beyond thirty (30) days from 
the date when the notice was sent unless the parties expressly agree 
otherwise in writing.
    21. Formal. If informal negotiations are unsuccessful, either 
party may request and both parties shall then attempt to reach 
agreement on a process and procedure for resolving the dispute by 
formal means using a neutral third party. Such process and 
procedures may include, but need not be limited to, mediation, 
nonbinding arbitration and binding arbitration (but only if and to 
the extent binding arbitration is then permitted under the 
Administrative Dispute Resolution Act of 1996 and EPA policy). If an 
agreement on process and procedure is not reached within sixty (60) 
days from the date notice was sent under Paragraph 20 or as 
otherwise provided in this Agreement, either party may then assert 
whatever rights they may have hereunder in an appropriate federal 
court.

Notification

    22. All notices, records and submissions required under this 
Agreement shall be maintained where each Tank is located or where 
such Tank's records are normally maintained, provided they can be 
made available by facsimile (or otherwise) upon request during an 
inspection under Paragraph 12.
    23. All notices, submissions and certifications required of 
Participating Company under this Agreement shall be in writing and 
postmarked or hand delivered to:

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with copy to: U.S. Environmental Protection Agency, Air Enforcement 
Division--Station Source Enforcement Branch, Mail Code 2242A, 
Washington, DC 20460.
    All notices required of EPA and all EPA determinations under 
this Agreement shall be in writing and postmarked or hand delivered 
to:

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    24. Upon completion of its obligations and undertakings under 
this Agreement, Participating Company shall provide a written 
certification of its compliance with this Agreement to EPA, 
including a description of the work performed under Paragraph 3, the 
date such work was completed and an identification of such permit(s) 
that were or will be issued under Paragraph 4. Such certification 
shall be signed by a responsible official and contain the following 
language: I certify under penalty of law that the information 
contained in and accompanying this document (if applicable) is true, 
accurate, and complete to the best of my knowledge, information and 
belief after reasonable inquiry.
    For purposes of this Paragraph, a ``responsible official'' means 
the president, secretary, treasurer, or a vice-president of 
Participating Company, its senior management representative(s) where 
such Tanks are located, or any person who performs similar policy or 
decision-making functions for Participating Company.

Miscellaneous Provisions

    25. Participating Company agrees to accept service from EPA by 
mail with respect to all matters relating to or arising under this 
Agreement at the address listed below (if different from Paragraph 
23):

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    EPA agrees to accept service from Participating Company by mail 
with respect to all matters relating to or arising under this 
Agreement at the address listed below (if different from Paragraph 
23):

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    26. Annex A of this Participation Agreement may be modified only 
if EPA and Participating Company agree and consent to such 
modification in writing.
    27. This Agreement does not modify or affect in any way 
Participating Company's responsibility to achieve and maintain 
compliance with all other applicable federal, state and local laws, 
regulations and permits.
    28. Each party shall bear its own costs, attorney's fees and 
disbursements in this matter.
    29. This document, including its attached Annex A, Appendix I 
and Attachments 1 and 2, encompasses the entire agreement of the 
parties with respect to the subject matter hereof and totally 
supersedes all prior agreements and understandings, whether oral or 
in writing.

Termination

    30. When Participating Company has complied with Paragraph 3, is 
in compliance with Paragraph 4 and has certified compliance under 
Paragraph 24, Participating Company may notify EPA of its intent to 
terminate this Agreement. EPA may object to such termination only on 
the grounds that Participating Company has not complied with this 
Agreement.
    31. If EPA does not object to Participating Company's notice of 
intent to terminate, this Agreement will terminate ninety (90) days 
after the date of dispatch of such notice of intent to terminate. 
Notwithstanding such termination of this Participation Agreement, 
the obligations of Paragraphs 3, 4, 5 and 7 shall continue 
indefinitely.
    32. If EPA objects to Participating Company's notice of intent 
to terminate, it must do so in writing within sixty (60) days of its 
receipt of such notice. If EPA objects to Participating Company's 
notice of intent to terminate, Participating Company may invoke the 
Dispute Resolution provisions of this Agreement (Paragraphs 20-21). 
In resolving any dispute regarding termination of this Agreement, 
Participating Company shall have the burden of proving that it is, 
was and has been in compliance with this Agreement.
    33. If EPA determines that Participating Company is in material 
breach of this Agreement (e.g., evinces a pattern and practice of 
noncompliance with its terms and conditions), it shall give notice 
of such breach and may give notice of its intent to terminate this 
Agreement. If Participating Company objects to EPA's determination 
and/or notice of intent to terminate, Participating Company may 
invoke the Dispute Resolution provisions of this Agreement 
(Paragraphs 20-21). If then terminated, Participating Company's 
opportunity to participate under the Storage Tank Emission Reduction 
Partnership Program shall then cease and all its rights, 
expectations, obligations and undertakings (if any) under that 
program and this Agreement shall terminate and be deemed a nullity.

Reservation of Rights

    34. By entering into the Agreement, EPA understands that 
Participating Company neither agrees nor concedes that its use of 
slotted guidepoles without the controls specified in Appendix I 
violate or violated any Clean Air Act requirement. Similarly, 
Participating Company understands that EPA neither agrees nor 
concedes that Participating Company's prior use of slotted 
guidepoles without such controls was acceptable or excused in any 
way or on any basis whatsoever. With respect to any tank(s) other 
than a Tank identified in Annex A, each party reserves all rights 
they may have to contest or otherwise litigate any issue arising out 
of any use of slotted guidepoles.

Effective Date

    35. This Participation Agreement shall be effective when signed 
by both Participating Company and EPA.

By:--------------------------------------------------------------------
[Participating Company]
Date:------------------------------------------------------------------

[[Page 2396]]

By:--------------------------------------------------------------------
U.S. Environmental Protection Agency
Date:------------------------------------------------------------------

Attachment 1: Operating and Maintenance Requirements for Slotted 
Guidepole Controls Under the Storage Tank Emissions Reduction 
Partnership Program

    The sliding cover shall be in place over the slotted-guidepole 
opening through the floating roof at all times except when the 
sliding cover must be removed for access. If the control technology 
used includes a guidepole float, the float shall be floating within 
the guidepole at all times except when it must be removed for access 
to the stored liquid or when the tank is empty.
    Visually inspect the deck fitting for the slotted guidepole at 
least once every 10 years and each time the vessel is emptied and 
degassed. If the slotted guidepole deck fitting or control devices 
have defects, or if a gap of more than 0.32 centimeters (1/8 inch) 
exists between any gasket required for control of the slotted 
guidepole deck fitting and any surface that it is intended to seal, 
such items shall be repaired before filling or refilling the storage 
vessel with regulated material.
    Tanks taken out of hydrocarbon service, for any reason, do not 
have to have any controls in place during the time they are out of 
service.

Attachment 2: Form Compliance Order

United States Environmental Protection Agency

In The Matter of:
[Participating Company]
Respondent.

Storage Tank Emission Reduction Partnership Program
Agreement No. __________

Findings and Order

    Pursuant to Section 113(a)(3) of the Clean Air Act (``CAA''), 
consistent with the Storage Tank Emission Reduction Partnership 
Agreement identified above and entered into between the United 
States Environmental Protection Agency (``EPA'') and Respondent, and 
based upon available information, EPA hereby makes and issues the 
following Findings and Order:

Findings

    1. Respondent is a Participating Company under above-identified 
Storage Tank Emission Reduction Partnership Agreement.
    2. EPA promulgated New Source Performance Standards (``NSPS'') 
for Petroleum Liquid Storage Vessels and for Volatile Organic Liquid 
Storage Vessels, appearing in 40 CFR Part 60, Subparts Ka and Kb.
    3. Respondent owns or operates certain ``affected facilities'' 
under NSPS Subpart Ka and/or Kb that have or had floating roofs with 
slotted guidepoles, as identified in Annex A.

Order

    4. Respondent shall install, maintain and operate properly those 
controls specified in Annex A by the date(s) there indicated and 
shall include or seek to include such controls and this requirement 
in federally enforceable permits issued by appropriate permitting 
authorities.
    5. Respondent shall not seek or obtain emission reduction 
credits for emission reductions that result from its compliance with 
this order, nor shall it use such reductions to offset or net 
against other emission increases in any permitting or enforcement 
action required by or taken pursuant to state or federal law.
    6. Pursuant to Section 113(a) of the CAA, failure to comply with 
this Order may lead to a civil action to obtain compliance or an 
action for civil or criminal penalties.

    Issued this ________ day of ________, 2000.

U.S. Environmental Protection Agency.

[FR Doc. 00-620 Filed 1-13-00; 8:45 am]
BILLING CODE 6560-50-U