[Federal Register Volume 73, Number 30 (Wednesday, February 13, 2008)]
[Rules and Regulations]
[Pages 8194-8197]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-2512]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 52

[EPA-R08-OAR-2007-1002; FRL-8521-5]


Approval and Promulgation of Air Quality Implementation Plans; 
State of Colorado; Regulation No. 7, Section XII, Volatile Organic 
Compounds From Oil and Gas Operations

AGENCY: Environmental Protection Agency (EPA).

ACTION: Direct final rule.

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SUMMARY: EPA is taking direct final action to approve a State 
Implementation Plan (SIP) revision submitted by the State of Colorado. 
On August 3, 2007, the Governor's designee submitted revisions to 
Colorado's Regulation No. 7, ``Emissions of Volatile Organic 
Compounds,'' Section XII, ``Volatile Organic Compounds (VOC) From Oil 
and Gas Operations.'' EPA is approving the revisions to Regulation No. 
7, Section XII. This action is being taken under Section 110 of the 
Clean Air Act.

DATES: This direct final rule is effective on April 14, 2008 without 
further notice, unless EPA receives adverse comment by March 14, 2008. 
If adverse comment is received, EPA will publish a timely withdrawal of 
the direct final rule in the Federal Register informing the public that 
the rule will not take effect.

ADDRESSES: Submit your comments, identified by Docket Number EPA-R08-
OAR-2007-1002, by one of the following methods:
     http://www.regulations.gov. Follow the on-line 
instructions for submitting comments.
     E-mail: [email protected] and [email protected].
     Fax: (303) 312-6064 (please alert the individual listed in 
the FOR FURTHER INFORMATION CONTACT if you are faxing comments).
     Mail: Callie A. Videtich, Director, Air and Radiation 
Program, Environmental Protection Agency (EPA), Region 8, Mailcode 8P-
AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129.
     Hand Delivery: Callie A. Videtich, Director, Air and 
Radiation Program, Environmental Protection Agency (EPA), Region 8, 
Mailcode 8P-AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129. Such 
deliveries are only accepted Monday through Friday, 8 a.m. to 4:30 
p.m., excluding Federal holidays. Special arrangements should be made 
for deliveries of boxed information.
    Instructions: Direct your comments to Docket ID No. EPA-R08-OAR-
2007-1002. EPA's policy is that all comments received will be included 
in the public docket without change and may be made available at http://www.regulations.gov, including any personal information provided, 
unless the comment includes information claimed to be Confidential 
Business Information (CBI) or other information whose disclosure is 
restricted by statute. Do not submit information that you consider to 
be CBI or otherwise protected through http://www.regulations.gov or e-
mail. The http://www.regulations.gov Web site is an ``anonymous 
access'' system, which means EPA will not know your identity or contact 
information unless you provide it in the body of your comment. If you 
send an e-mail comment directly to EPA, without going through http://www.regulations.gov your e-mail address will be automatically captured 
and included as part of the comment that is placed in the public docket 
and made available on the Internet. If you submit an electronic 
comment, EPA recommends that you include your name and other contact 
information in the body of your comment and with any disk or CD-ROM you 
submit. If EPA cannot read your comment due to technical difficulties 
and cannot contact you for clarification, EPA may not be able to 
consider your comment. Electronic files should avoid the use of special 
characters, any form of encryption, and be free of any defects or 
viruses. For additional information about EPA's public docket, visit 
the EPA Docket Center homepage at http://www.epa.gov/epahome/dockets.htm. For additional instructions on submitting comments, go to 
Section I. General Information of the SUPPLEMENTARY INFORMATION section 
of this document.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
whose disclosure is restricted by statute. Certain other material, such 
as copyrighted material, will be publicly available only in hard copy. 
Publicly available docket materials are available either electronically 
in http://www.regulations.gov or in hard copy at the Air and Radiation 
Program, Environmental Protection Agency (EPA), Region 8, 1595 Wynkoop 
Street, Denver, Colorado 80202-1129. EPA requests that if at all 
possible, you contact the individual listed in the FOR

[[Page 8195]]

FURTHER INFORMATION CONTACT section to view the hard copy of the 
docket. You may view the hard copy of the docket Monday through Friday, 
8 a.m. to 4 p.m., excluding Federal holidays.

FOR FURTHER INFORMATION CONTACT: Kerri Fiedler, Air and Radiation 
Program, Environmental Protection Agency (EPA), Region 8, Mailcode 8P-
AR, 1595 Wynkoop Street, Denver, Colorado 80202-1129, phone (303) 312-
6493, and e-mail at: [email protected].

SUPPLEMENTARY INFORMATION:

Table of Contents

I. General Information
II. What is the purpose of this action?
III. What is the State's process to submit these materials to EPA?
IV. EPA's Evaluation of the Regulation No. 7, Section XII, Revisions
V. Consideration of Section 110(l) of the CAA
VI. Final Action
VII. Statutory and Executive Order Reviews

Definitions

    For the purpose of this document, we are giving meaning to certain 
words or initials as follows:
    (i) The words or initials Act or CAA mean or refer to the Clean Air 
Act, unless the context indicates otherwise.
    (ii) The words EPA, we, us or our mean or refer to the United 
States Environmental Protection Agency.
    (iii) The initials NAAQS mean National Ambient Air Quality 
Standard.
    (iv) The initials SIP mean or refer to State Implementation Plan.
    (v) The word State means the State of Colorado, unless the context 
indicates otherwise.

I. General Information

A. What Should I Consider as I Prepare My Comments for EPA?

    1. Submitting CBI. Do not submit this information to EPA through 
http://regulations.gov or e-mail. Clearly mark the part or all of the 
information that you claim to be CBI. For CBI information in a disk or 
CD ROM that you mail to EPA, mark the outside of the disk or CD ROM as 
CBI and then identify electronically within the disk or CD ROM the 
specific information that is claimed as CBI. In addition to one 
complete version of the comment that includes information claimed as 
CBI, a copy of the comment that does not contain the information 
claimed as CBI must be submitted for inclusion in the public docket. 
Information so marked will not be disclosed except in accordance with 
procedures set forth in 40 CFR part 2.
    2. Tips for Preparing Your Comments. When submitting comments, 
remember to:
    I. Identify the rulemaking by docket number and other identifying 
information (subject heading, Federal Register date and page number).
    II. Follow directions--The agency may ask you to respond to 
specific questions or organize comments by referencing a Code of 
Federal Regulations (CFR) part or section number.
    III. Explain why you agree or disagree; suggest alternatives and 
substitute language for your requested changes.
    IV. Describe any assumptions and provide any technical information 
and/or data that you used.
    V. If you estimate potential costs or burdens, explain how you 
arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
    VI. Provide specific examples to illustrate your concerns, and 
suggest alternatives.
    VII. Explain your views as clearly as possible, avoiding the use of 
profanity or personal threats.
    VIII. Make sure to submit your comments by the comment period 
deadline identified.

II. What is the purpose of this action?

    In this action, we are approving revisions to Regulation No. 7, 
Section XII, for the control of VOC emissions from oil and gas 
operations. James B. Martin, the Executive Director of the Colorado 
Department of Public Health and Environment, submitted these revisions 
to us on August 3, 2007.
    We previously approved Regulation No. 7, Section XII, on August 19, 
2005 (see 70 FR 48652) as part of Denver's Early Action Compact (EAC) 
SIP for the 8-hour ozone standard. The purpose of the EAC SIP is to 
prevent exceedances of the 8-hour ozone standard in the Denver EAC 
area.\1\ Due to unanticipated growth of condensate tank emissions in 
the oil and gas sector, the State determined that the version of 
Regulation No. 7, Section XII, that we approved in 2005 needed to be 
revised. The version of Regulation No. 7, Section XII, submitted August 
3, 2007 requires a greater level of control of condensate tank 
emissions in the 8-hour ozone non-attainment area.
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    \1\ In April 2004, EPA designated the Denver area (Adams, 
Arapahoe, Boulder, Broomfield, Denver, Douglas, Jefferson, and parts 
of Larimer and Weld counties) as non-attainment for the 8-hour ozone 
standard, but deferred the effective date of the designation based 
on a commitment from the State of Colorado, the Regional Air Quality 
Council and others to implement ozone control measures sooner than 
required by the Clean Air Act. This commitment was contained in the 
Denver Early Action Compact (EAC). The non-attainment designation 
for the area became effective November 20, 2007, as a result of a 
violation for 2005-2007, which triggers requirements for future 
revisions to the attainment demonstration SIP for the Denver EAC 
area.
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III. What is the State's process to submit these materials to EPA?

    Section 110(k) of the CAA addresses our actions on submissions of 
SIP revisions. The CAA requires States to observe certain procedural 
requirements in developing SIP revisions. Section 110(a)(2) of the CAA 
requires that each SIP revision be adopted by a State after reasonable 
notice and public hearing. This must occur before a State submits the 
revision to us.
    The Colorado Air Quality Control Commission (AQCC) held public 
hearings for the revisions to Regulation No. 7, Section XII, on 
November 17, 2006, November 18, 2006, and December 17, 2006. The AQCC 
adopted the revisions on January 5, 2007. The revisions became State 
effective on March 4, 2007.
    We have evaluated the revisions to Regulation No. 7, Section XII, 
and have determined that the State met the requirements for reasonable 
notice and public hearing under section 110(a)(2) of the CAA.

IV. EPA's Evaluation of the Regulation No. 7, Section XII, Revisions

    Colorado's Regulation No. 7, Section XII, ``Volatile Organic 
Compound Emissions From Oil And Gas Operations,'' imposes emission 
control requirements on oil and gas condensate tanks located in the 
Denver EAC area, with the majority of affected facilities being located 
in southern Weld County. Among other things, Regulation No. 7, Section 
XII, includes definitions; required emission reductions for the high 
ozone season and rest of the year; numerous recordkeeping requirements 
for a spreadsheet to determine weekly and other periodic compliance; 
emission factors used to demonstrate compliance; reporting requirements 
for certain equipment if a construction or Title V permit is issued by 
the State; a methodology for approval of alternative emissions control 
equipment; requirements for gas-processing plants; requirements for 
controlling emissions from dehydration units; and a methodology for 
approval to develop testing methods and revised emission factors.
    The condensate tank requirements, along with other requirements 
applicable to oil and gas operations and natural gas fired 
reciprocating internal combustion engines, were initially promulgated 
in March 2004, and later

[[Page 8196]]

revised in December 2004. Colorado submitted these requirements to us 
as a SIP revision, which we approved on August 19, 2005 (see 70 FR 
48652). Colorado designed the emission limits in the 2004 revision of 
Regulation No. 7, Section XII, to achieve total condensate tank VOC 
emissions in the Denver EAC area during the summer ozone season of no 
more than 91.3 tons per day (tpd) as of May 1, 2007, and 100.9 tpd as 
of May 1, 2012. These daily values were relied on to demonstrate 
attainment of the 8-hour ozone standard in the modeling analysis, as 
part of the EAC SIP. However, because of unanticipated growth of 
condensate tank emissions, the State later determined that the emission 
limits in the 2004 version of Regulation No. 7 would be insufficient to 
meet these daily emission numbers. The 2007 revisions require a greater 
level of control of condensate tank emissions within the 8-hour ozone 
non-attainment area boundary. The State's goal remains to achieve the 
same daily emission targets for condensate tank VOC emissions.
    We note that the VOC emission reductions that are required by 
Regulation No. 7, Section XII, are achieved not by specific 
requirements on each condensate tank, but instead by overall or system-
wide emission reductions for each affected company's operations. As 
stated in Regulation No. 7, Section XII, the requirement to control 
emissions applies to owners or operators of condensate tanks with a 
cumulative total of 30 tons per year or more of VOC emissions. In 
practice, industry has controlled the condensate tank VOC emissions 
with flares or vapor recovery units, and Regulation No. 7, Section XII, 
requires these types of emission control devices to achieve 95% control 
efficiency.
    Revised Regulation No. 7, Section XII, raises the system-wide 
control requirements for the ozone season from the 47.5% VOC reduction 
requirement that applied from May 1, 2006, through September 30, 2006, 
to 75% from May 1 through September 30 of each year from 2007 through 
2011. For the period from May 1 through September 30 of each year, 
beginning with 2012, VOC emissions from condensate tanks must be 
reduced by 78% from uncontrolled actual emissions. Determination of 
compliance during the ozone season will be on a weekly basis. For the 
non-ozone season, the State revised the required reduction of 
condensate tank VOC emissions from 38% to 60% in 2007, and beginning in 
2008, and each year thereafter, VOC emissions between October 1 and 
April 30 must be reduced by 70% from uncontrolled actual emissions. 
Emission reductions during the non-ozone season must be calculated as 
an average of the emission reductions achieved during this seven-month 
period.
    In addition to the changes to the system-wide reduction 
requirements, the State adopted significant changes to the monitoring, 
recordkeeping, and reporting requirements. Owners or operators of any 
condensate storage tank that is being controlled under Regulation No. 
7, Section XII, must inspect or monitor the control equipment at least 
weekly. Types of equipment include combustion devices, vapor recovery 
units, valves, and thief hatches. As noted above, the record-keeping 
provisions require owners or operators to maintain a spreadsheet to 
track emission reductions on a weekly basis during the ozone season 
(May 1 through September 30). In addition to the spreadsheet, owners or 
operators are required to maintain records of monitoring and inspection 
activities. The reporting provisions require owners or operators to 
submit an annual report by April 30 of each year, and also a semi-
annual report by November 30 of each year, detailing emission 
reductions during the preceding year and ozone season, respectively. 
Finally, provisions have been added to require owners or operators 
subject to the condensate storage tank reduction requirements to submit 
a list of all their controlled tanks on April 30 of each year; to 
notify the State monthly during the ozone season of any change to the 
list of controlled tanks; and to notify the State monthly of any 
instance where the air pollution control equipment was not properly 
functioning and the steps taken to correct the problem. We have 
reviewed and are approving the revisions to Regulation No. 7, Section 
XII, ``Volatile Organic Compounds From Oil and Gas Operations'' because 
they require greater reductions in emissions and meet the requirements 
of section 110 of the CAA.

V. Consideration of Section 110(l) of the CAA

    Section 110(l) of the CAA states that a SIP revision cannot be 
approved if the revision would interfere with any applicable 
requirement concerning attainment and reasonable further progress 
towards attainment of a NAAQS, or any other applicable requirement of 
the CAA. The revisions to Regulation No. 7, Section XII, will not 
interfere with attainment, reasonable further progress, or any other 
applicable requirement of the CAA.

VI. Final Action

    In this action, EPA is approving the revisions to Regulation No. 7, 
Section XII, that were submitted on August 3, 2007. The version of 
Section XII we are approving supersedes and replaces the prior version 
we approved at 70 FR 48652 (August 19, 2005). EPA is publishing this 
rule without prior proposal because the Agency views this as a non-
controversial amendment and anticipates no adverse comments. However, 
in the ``Proposed Rules'' section of today's Federal Register 
publication, EPA is publishing a separate document that will serve as 
the proposal to approve the SIP revision if adverse comments are filed. 
This rule will be effective April 14, 2008 without further notice 
unless the Agency receives adverse comments by March 14, 2008. If the 
EPA receives adverse comments, EPA will publish a timely withdrawal in 
the Federal Register informing the public that the rule will not take 
effect. EPA will address all public comments in a subsequent final rule 
based on the proposed rule. The EPA will not institute a second comment 
period on this action. Any parties interested in commenting must do so 
at this time. Please note that if EPA receives adverse comment on an 
amendment, paragraph, or section of this rule and if that provision may 
be severed from the remainder of the rule, EPA may adopt as final those 
provisions of the rule that are not the subject of an adverse comment.

VII. Statutory and Executive Order Reviews

    Under Executive Order 12866 (58 FR 51735, October 4, 1993), this 
action is not a ``significant regulatory action'' and, therefore, is 
not subject to review by the Office of Management and Budget. For this 
reason, this action is also not subject to Executive Order 13211, 
``Actions Concerning Regulations That Significantly Affect Energy 
Supply, Distribution, or Use'' (66 FR 28355, May 22, 2001). This action 
merely approves state law as meeting Federal requirements and imposes 
no additional requirements beyond those imposed by state law. 
Accordingly, the Administrator certifies that this rule will not have a 
significant economic impact on a substantial number of small entities 
under the Regulatory Flexibility Act (5 U.S.C. 601 et seq.). Because 
this rule approves pre-existing requirements under state law and does 
not impose any additional enforceable duty beyond that required by 
state law, it does not contain any unfunded mandate or significantly or 
uniquely affect small

[[Page 8197]]

governments, as described in the Unfunded Mandates Reform Act of 1995 
(Pub. L. 104-4).
    This rule also does not have tribal implications because it will 
not have a substantial direct effect on one or more Indian tribes, on 
the relationship between the Federal Government and Indian tribes, or 
on the distribution of power and responsibilities between the Federal 
Government and Indian tribes, as specified by Executive Order 13175 (65 
FR 67249, November 9, 2000). This action also does not have Federalism 
implications because it does 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). This action merely approves a state rule 
implementing a Federal standard, and does not alter the relationship or 
the distribution of power and responsibilities established in the Clean 
Air Act. This rule also is not subject to Executive Order 13045 
``Protection of Children from Environmental Health Risks and Safety 
Risks'' (62 FR 19885, April 23, 1997), because it is not economically 
significant.
    In reviewing SIP submissions, EPA's role is to approve state 
choices, provided that they meet the criteria of the Clean Air Act. In 
this context, in the absence of a prior existing requirement for the 
State to use voluntary consensus standards (VCS), EPA has no authority 
to disapprove a SIP submission for failure to use VCS. It would thus be 
inconsistent with applicable law for EPA, when it reviews a SIP 
submission, to use VCS in place of a SIP submission that otherwise 
satisfies the provisions of the Clean Air Act. Thus, the requirements 
of section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (15 U.S.C. 272 note) do not apply. This rule does not 
impose an information collection burden under the provisions of the 
Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.).
    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the 
Small Business Regulatory Enforcement Fairness Act of 1996, generally 
provides that before a rule may take effect, the agency promulgating 
the rule must submit a rule report, which includes a copy of the rule, 
to each House of the Congress and to the Comptroller General of the 
United States. EPA will submit a report containing this rule and other 
required information to the U.S. Senate, the U.S. House of 
Representatives, and the Comptroller General of the United States prior 
to publication of the rule in the Federal Register. A major rule cannot 
take effect until 60 days after it is published in the Federal 
Register. This action is not a ``major rule'' as defined by 5 U.S.C. 
804(2).
    Under section 307(b)(1) of the Clean Air Act, petitions for 
judicial review of this action must be filed in the United States Court 
of Appeals for the appropriate circuit by April 14, 2008. Filing a 
petition for reconsideration by the Administrator of this final rule 
does not affect the finality of this rule for the purposes of judicial 
review nor does it extend the time within which a petition for judicial 
review may be filed, and shall not postpone the effectiveness of such 
rule or action. This action may not be challenged later in proceedings 
to enforce its requirements. (See section 307(b)(2).)

List of Subjects 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Intergovernmental relations, Ozone, Reporting and 
recordkeeping requirements, Volatile organic compounds.

    Authority: 42 U.S.C. 7401 et seq.

    Dated: January 15, 2008.
Robert E. Roberts,
Regional Administrator, Region VIII.

0
40 CFR part 52 is amended to read as follows:

PART 52--[AMENDED]

0
1. The authority citation for part 52 continues to read as follows:

    Authority: 42 U.S.C. 7401 et seq.

Subpart G--Colorado

0
2. Section 52.320 is amended by adding paragraph (c)(112) to read as 
follows:


Sec.  52.320  Identification of plan.

* * * * *
    (c) * * *
    (112) On August 3, 2007, the Governor of Colorado submitted 
revisions to the Colorado's Regulation No. 7 ``Emissions of Volatile 
Organic Compounds'' that made several changes and additions to Section 
XII, ``Volatile Organic Compound Emissions From Oil and Gas 
Operations.''
    (i) Incorporation by reference.
    (A) Regulation No. 7 ``Emissions of Volatile Organic Compounds,'' 5 
CCR 1001-9, Section XII, ``Volatile Organic Compound Emissions From Oil 
and Gas Operations,'' effective on March 4, 2007.

[FR Doc. E8-2512 Filed 2-12-08; 8:45 am]
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