[Federal Register Volume 65, Number 72 (Thursday, April 13, 2000)]
[Notices]
[Pages 19891-19897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9091]


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ENVIRONMENTAL PROTECTION AGENCY

[FRL-6576-8]


Slotted Guidepoles at Certain Petroleum and Organic Liquid 
Storage Vessels

AGENCY: Environmental Protection Agency (EPA).

ACTION: Notice of storage tank emission reduction partnership program.

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SUMMARY: The United States Environmental Protection Agency (``EPA'') is 
today announcing an opportunity for the regulated community to 
participate in the Storage Tank Emission Reduction Partnership Program 
described in this notice.

DATES: Companies electing to participate in this program must submit a 
notice of intent by June 12, 2000, and an executed partnership 
agreement by December 11, 2000.

ADDRESSES: Both the notice of intent and executed partnership agreement 
should be sent to: Storage Tank Emission Reduction Partnership Program, 
Air Enforcement Division (Mail Code 2242A), U.S. Environmental 
Protection Agency, 1200 Pennsylvania Avenue, NW., Washington, DC 20460.

FOR FURTHER INFORMATION CONTACT: Mr. James K. Jackson, Air Enforcement 
Division (2242A), U.S. Environmental Protection Agency, 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 have exactly 
the same emissions effect as any other roof opening: they constitute a 
pathway for 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 the use of slotted guidepoles can exceed 
25,000 pounds per year. 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. 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). EPA previously determined and recently 
reaffirmed that uncontrolled slotted guidepoles do not comply with the 
``no visible gap'' requirement in NSPS Subparts Ka and Kb. See 65 FR 
2336 (January 14, 2000). In the interests of promoting fast, efficient 
and widespread emission reductions from slotted guidepoles, EPA is 
today offering to enter into agreements with those companies that have 
installed or will install controls to reduce their slotted guidepole 
emissions at NSPS Subpart Ka/Kb tanks.
    EPA solicited public comment on a proposed program that had been 
developed in cooperation with the American Petroleum Institute. 65 FR 
2391 (January 14, 2000). EPA discussed its proposal with State and 
Territorial Air Pollution Program Administrators/Association of Local 
Air Pollution Control Officials (STAPPA/ALAPCO) and received twelve 
comments (e.g., companies, trade associations and equipment vendors), 
all of which supported establishing a program. The more salient 
features of the Storage Tank Emission Reduction Partnership Program 
announced today are summarized below:
     Each company intending to participate must notify EPA of 
its intent to participate within 60 days and there identify each 
facility it intends to include under this program, using its unique EPA 
Identification Number.
     Participating companies must assess all of their NSPS 
Subpart Ka/Kb external floating roof tanks with slotted guidepoles and 
are encouraged to assess all of their NSPS Subpart Ka/Kb internal 
floating roof tanks with slotted guidepoles. See discussion infra.
     Acceptable slotted guidepole controls under this program 
are identified. See Appendix I. Use of such controls does not affect 
other regulatory obligations that may exist under state or federal law 
(e.g., to sample tank contents for compliance with other regulatory 
programs).
     EPA is not requiring that penalties be paid as a condition 
of program participation, but if a participating company fails to 
implement its agreed-to controls in a timely manner, stipulated 
penalties would be imposed.
     The terms and conditions for program participation are 
specified in the participation agreement that each participant must 
execute. See Appendix II and Appendix III.
     Each participating company must submit an executed 
participation agreement, including a complete Annex A, within 240 days. 
Annex A must provide a facility listing (using its EPA identification 
Number) that identifies its NSPS Subpart Ka/Kb external floating roof 
tanks with slotted guidepoles and those of its NSPS Subpart Ka/Kb 
internal floating roof tanks that it intends to include under this 
program. Annex A must also specify the controls that were or will be 
installed, as well as predict the emission reductions that will be 
achieved after these controls are installed.
    Today's final program incorporates certain technical changes that 
had been recommended by commenters, but it is essentially the same as 
the program that had been earlier proposed. The major points raised 
during the comment period are summarized and discussed below.
    Clarification of Facility Coverage: Some commenters expressed 
uncertainty as to whether participation could be on facility-by-
facility or operating division-by-operating division

[[Page 19892]]

basis. Program participation may be on any basis so long as all NSPS 
Subpart Ka and Kb storage vessels with slotted guidepoles at each 
identified facility are included. Accordingly and to be effective, both 
the notice of intent to participate and Annex A to the participation 
agreement must separately identify each of the facilities covered by 
name, address and EPA Identification Number.
    Additional Acceptable Control Options: Several Commenters suggested 
that two additional options be identified as acceptable for purposes of 
this program (i.e., replacing slotted guidepoles with solid guidepoles 
and installing flexible covers over the entire slotted guidepole). 
Based upon the information provided, EPA believes these alternatives 
eliminate visible gaps and can reduce emissions to a level comparable 
to that achievable with a pole float system. Both alternatives are now 
included in Appendix I.
    Although other control options may be suggested, interested parties 
should be aware that any such suggestion will require that showings be 
made, see APPENDIX-2, and that it be reviewed and approved by EPA 
before it can be relied upon by a participating company. To expedite 
EPA consideration, a complete copy of any request for an additional 
acceptable control option under APPENDIX I should also be sent to Sally 
Shaver, Director, Emission Standards Division, Office of Air Quality 
Planning and Standards, Research Triangle Park, NC 27711.
    Inclusion of Internal Floating Roof Tanks: Several Commenters 
questioned the environmental need for installing controls on slotted 
guidepoles at NSPS Subpart Ka/Kb internal floating roof tanks. EPA 
indicated in its notice of a proposed program that the views of the 
Office of Air Quality Planning and Standards (``OAQPS'') had been 
solicited on whether to exempt these fittings from otherwise applicable 
requirements. EPA has concluded that such an exemption would require 
notice and comment rulemaking, cf. 65 FR 2336 (January 14, 2000). 
Accordingly and for purposes of this program, participating companies 
are encouraged (but not required) to identify NSPS Subpart Ka/Kb 
internal floating roof tanks. If included, participants may elect to 
utilize a combination of deck fitting controls as the identified 
acceptable control, as permitted under APPENDIX-2.
    Newly Acquired Tanks: Some comments suggested that participating 
companies be permitted to include newly acquired tanks under this 
program (e.g., tanks acquired after executing and entering into a 
partnership agreement). EPA notes that such may be possible by a 
consensual amendment to the partnership agreement's Annex A. Factors 
that will then be considered by EPA include when the tank(s) were 
acquired, where they are located, whether controls on the newly 
acquired tank(s) had been installed and, if not, when they will be 
installed.
    Facilities with Controls Already Installed: It was suggested during 
the comment period that the program include simplified procedures for 
those facilities that previously installed identified, acceptable 
controls. EPA agrees. Simplified procedures are available for a 
facility that installed controls identified in Appendix I prior January 
14, 2000 on all its NSPS Subpart Ka/Kb external floating roof tanks 
with slotted guidepoles. To participate, a company must submit a notice 
of intent to participate within 60 days and a Certification and 
Agreement (as specified in Appendix III) within 240 days. Upon receipt, 
EPA will either sign and return the Certification and Agreement or 
identify deficiencies which must be corrected. If corrected within 30 
days, EPA will then sign and return the corrected Certification and 
Agreement.
    EPA believes that the above-described program is an inexpensive, 
efficient, cost-effective way to achieve immediate environmental 
improvements. EPA is encouraging companies and facilities to go beyond 
the terms of this agreement and to reduce emissions further by 
installing tank fitting controls whenever and wherever possible. For 
example, EPA urges companies to instal controls identified in Appendix 
I at non-NSPS Subpart Ka/Kb storage vessels, as well as at NSPS Subpart 
Ka/Kb tanks that are not under this program because they are not 
currently subject to equipment design requirements based on the 
materials stored and their vapor pressure(s). In addition to obvious 
environmental benefits and depending on individual circumstances, such 
may reduce reportable emissions and fees and create emission offsets/
credits.
    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, 64 FR 43255 (August 10, 1999). 
Thus, the requirements of section 6 of the Executive Order do not apply 
to this notice.

    Dated: April 4, 2000.
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.

[[Page 19893]]

    5. Solid Guidepole System: A solid guidepole; 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.
    6. Flexible Enclosure System: A flexible device that complete 
encloses the slotted guidepole and 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.
    7. 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.
    8. 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.
    Solid guidepole means a guidepole or gaugepole that does not 
have slots or holes through the wall of the pole at or above the 
level of the floating roof when it is at its 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 [Insert FR page citation and (April 13, 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 all of its NSPS Subpart Ka and Kb 
affected facilities \2\ that are subject to equipment design 
requirements \3\ and that have slotted guidepoles \4\ (hereinafter 
referred to as ``Tanks'') at each facility/location identified in 
Annex A.
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    \2\ NSPS Subpart Ka affected facilities are petroleum liquid 
storage vessels with a capacity of greater than 40,000 gallons that 
were constructed, reconstructed or modified after May 18, 1978, 40 
CFR 60.110a; NSPS Subpart Kb affected facilities are volatile 
organic liquid storage vessels with a capacity of greater than 40 
cubic meters that were constructed, reconstructed or modified after 
July 23, 1984, 40 CFR 60.110b.
    \3\ The equipment design requirements for floating roof tanks 
apply only to certain NSPS Subpart Ka and Kb affected facilities. 
See 40 CFR 60.112a and 60.112b.
    \4\ A slotted guidepole is 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.
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    c. It is submitting this executed Partnership Agreement to EPA 
within 240 days of the Program notice.
    d. Annex A (attached hereto and incorporated by reference 
herein) is a true, accurate and complete identification of:
    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 January 
14, 2000, the year of installation may be used; and
    iii. predicted emission reductions at each Tank that will instal 
controls hereunder.
    e. 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 
Appendix I-2.
    f. 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.
    g. 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

[[Page 19894]]

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 is not 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.
    (b). 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 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 received 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 authorized and expressly 
permitted by EPA policy and the Administrative Dispute Resolution 
Act of 1996). If an agreement on process and procedure is not 
reached within sixty (60) days from the date notice was received 
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

[[Page 19895]]

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: U.S. Environmental Protection 
Agency, Storage Tank Emission Reduction Partnership Program, 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:
    ____________
    ____________
    ____________
    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):
    ____________
    ____________
    ____________
    ____________
    EPA agrees to accept service from Participating by mail with 
respect to all matters relating to or arising under this Agreement 
at the address listed below (if different from Paragraph 23):
    ____________
    ____________
    ____________
    ____________
    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 EPA's receipt 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: ____________
    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.

[[Page 19896]]

    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.

Appendix III

Storage Tank Emission Reduction Partnership Certification and Agreement

CERTIFICATION

    ____________ (``Participating Company''), by ____________, a 
responsible corporate official of Participating Company, certifies 
that:
    1. Participating Company notified the United States 
Environmental Protection Agency (``EPA'') of its intent to 
participate in the Storage Tank Emission Reduction Partnership 
Program within 60 days of the Program notice announced at [insert FR 
page citation (April 13, 2000)].
    2. Participating Company assessed and evaluated all of its NSPS 
Subpart Ka and Kb affected facilities \1\ that are subject to 
equipment design requirements \2\ and that have slotted guidepoles 
\3\ (hereinafter referred to as ``Tanks'') at each facility/location 
identified in Annex A.
---------------------------------------------------------------------------

    \1\ NSPS Subpart Ka affected facilities are petroleum liquid 
storage vessels with a capacity of greater than 40,000 gallons that 
were constructed, reconstructed or modified after May 18, 1978, 40 
CFR 60.110a; NSPS Subpart Kb affected facilities are volatile 
organic liquid storage vessels with a capacity of greater than 40 
cubic meters that were constructed, reconstructed or modified after 
July 23, 1984, 40 CFR 60.110b.
    \2\ The equipment design requirements for floating roof tanks 
apply only to certain NSPS Subpart Ka and Kb affected facilities. 
See 40 CFR 60.112a and 60.112b.
    \3\ A slotted guidepole is 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.
---------------------------------------------------------------------------

    3. Annex A (attached hereto and incorporated by reference 
herein) is a true, accurate and complete identification of:
    i. each Tank; and
    ii. the year in which controls were installed at each Tank; and
    4. 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 
APPENDIX I-2.
    I certify under penalty of law that the foregoing and the 
attached, including Annex A, is true, accurate, and complete to the 
best of my knowledge, information and belief after reasonable 
inquiry.
    ____________
    [NAME]
    [TITLE]

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.
---------------------------------------------------------------------------

    \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.
---------------------------------------------------------------------------

    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 65 FR [insert 1st page number of FR this notice appears in] 
(April 13, 2000) (hereinafter referred to as ``Program notice'').
    Whereas Participating Company certified that it had complied 
with the requirements of the Storage Tank Emission Reduction 
Partnership Program.
    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. Participating Company's Certification was made by a 
``responsible official'' (i.e., the president, secretary, treasurer, 
or a vice-president of Participating Company, Participating 
Company's senior management representative(s) where such Tanks are 
located, or any other person who performs similar policy or 
decision-making functions for Participating Company.
    b. 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 properly operate and maintain all 
slotted guidepole controls identified on Annex A in the manner 
specified in Attachment 1 and shall include such controls and this 
requirement in federally enforceable permits issued by appropriate 
permitting authorities.
    4. Participating Company shall not seek or obtain emission 
reduction credits for emission reductions that result from 
installing slotted guidepole controls or from the work required 
under Paragraph 3 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.

EPA Undertakings

    5. Compliance with the requirements set forth herein 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.
    6. 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.

Miscellaneous Provisions

    7. 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:
    ____________
    ____________
    ____________
    ____________

[[Page 19897]]

    8. Annex A of this Participation Agreement may be modified only 
if EPA and Participating Company agree and consent to such 
modification in writing.
    9. 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.
    10. Each party shall bear its own costs, attorney's fees and 
disbursements in this matter.
    11. This document, including its Annex A, 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.

Reservation of Rights

    12. 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

    13. This Participation Agreement shall be effective when signed 
by both Participating Company and EPA.
    By:____________
    [Participating Company]
    Date:____________
    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.

[FR Doc. 00-9091 Filed 4-12-00; 8:45 am]
BILLING CODE 6560-50-U