[Federal Register Volume 85, Number 13 (Tuesday, January 21, 2020)]
[Proposed Rules]
[Pages 3492-3534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-27431]



[[Page 3491]]

Vol. 85

Tuesday,

No. 13

January 21, 2020

Part II





 Environmental Protection Agency





-----------------------------------------------------------------------





40 CFR Part 49





 Federal Implementation Plan for Managing Emissions From Oil and 
Natural Gas Sources on Indian Country Lands Within the Uintah and Ouray 
Indian Reservation in Utah; Proposed Rule

  Federal Register / Vol. 85 , No. 13 / Tuesday, January 21, 2020 / 
Proposed Rules  

[[Page 3492]]


-----------------------------------------------------------------------

ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 49

[EPA-R08-OAR-2015-0709; FRL-10003-12-Region 8]
RIN 2008-AA03


Federal Implementation Plan for Managing Emissions From Oil and 
Natural Gas Sources on Indian Country Lands Within the Uintah and Ouray 
Indian Reservation in Utah

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
promulgate a Federal Implementation Plan (FIP) under the Clean Air Act 
(CAA) and the EPA's implementing regulations that consists of control 
requirements for new, modified, and existing oil and natural gas 
sources located on Indian country lands within the Uintah and Ouray 
Indian Reservation (also referred to as the U&O Reservation) to address 
air quality in and around the Uinta Basin Ozone Nonattainment Area in 
northeast Utah. The proposed FIP would also continue the streamlined 
approach to authorize new and modified minor oil and natural gas 
production sources on the reservation that has been established through 
national rulemakings. This proposed U&O FIP will establish emissions 
control requirements for oil and natural gas activity that contribute 
to the Uinta Basin's winter ozone problem; establish regulatory 
requirements that are the same or consistent between Indian country and 
neighboring jurisdictions within the Basin; and allow for reasonable 
continued development of the Basin's oil and natural gas resources on 
the Indian country lands within the U&O Reservation that are included 
in the current Uinta Basin Ozone Nonattainment Area. VOC emissions 
control requirements for existing oil and natural gas sources are 
currently required in areas of the Basin under Utah jurisdiction, but 
do not exist for most sources on the U&O Reservation. Additionally, 
this proposed U&O FIP will ensure new development on the U&O 
Reservation will not cause or contribute to a NAAQS violation. We are 
proposing to determine that it is necessary and appropriate to 
promulgate this proposed U&O FIP to protect air quality on the U&O 
Reservation, under the authority provided in the CAA and the EPA's 
Tribal Air Quality Planning and Management regulations. We designed 
this proposed U&O FIP to protect air quality while also providing the 
regulated community certainty that requirements will be consistent 
across the Uinta Basin and allow for continued, responsible development 
of new and modified minor oil and natural gas sources. Unless and until 
replaced by a Tribal Implementation Plan, this proposed U&O FIP will be 
implemented by the EPA, or by the Ute Indian Tribe if the EPA delegates 
that authority to the Tribe.

DATES: Comments must be received on or before March 23, 2020. Under the 
Paperwork Reduction Act (PRA), comments on the information collection 
provisions are best assured of consideration if the Office of 
Management and Budget (OMB) receives a copy of your comments on or 
before February 20, 2020.
    Public hearing: A public hearing for this proposal is scheduled to 
be held on Thursday, February 6, 2020, at the Ute Indian Tribe 
Administration Offices Auditorium, from 1 p.m. until 5 p.m., and again 
from 6 p.m. until 8 p.m. (local time). The hearing will be held to 
accept oral comments on this proposed U&O FIP.

ADDRESSES: The public hearing will be held at the Ute Indian Tribe 
Administration Offices Auditorium, 6964 East 1000 South, Fort Duchesne, 
Utah 84026. Submit your comments, identified by Docket ID No. EPA-R08-
OAR-2015-0709, by one of the following methods:
     http://www.regulations.gov. Follow the online instructions 
for submitting comments.
     Mail: Carl Daly, Acting Director, Air and Radiation 
Division, U.S. EPA, Region 8, Mail Code 8ARD, 1595 Wynkoop St., Denver, 
CO 80202-1129.
     Hand Delivery: Carl Daly, Acting Director, Air and 
Radiation Division, U.S. Environmental Protection Agency (EPA), Region 
8, Mail Code 8ARD, 1595 Wynkoop Street, Denver, Colorado 80202-1129. 
Such deliveries are only accepted Monday through Friday, 8:00 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-
2015-0709. The EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online 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 for 
which disclosure is restricted by statute. Do not submit information 
that you consider to be CBI or otherwise protected through http://www.regulations.gov. The http://www.regulations.gov site is an 
``anonymous access'' system, which means that the EPA will not know 
your identity or contact information unless you provide it in the body 
of your comment. If you submit an electronic comment, the 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 the 
EPA cannot read your comment due to technical difficulties and cannot 
contact you for clarification, the 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 the EPA's public docket, visit the EPA 
Docket Center homepage at www.epa.gov/epahome/dockets.htm.
    Docket: All documents in the docket are listed in the http://www.regulations.gov index. In some instances, we reference documents 
from the dockets for other rulemakings. For this proposed rule, we have 
incorporated by reference Docket ID No. EPA-HQ-OAR-2010-0505,\1\ Docket 
ID EPA-R08-OAR-2012-0479,\2\ Docket ID No. EPA-HQ-OAR-2003-0076, and 
Docket ID No. EPA-HQ-OAR-2014-0606 into Docket ID EPA-R08-OAR-2015-
0709. Although listed in the index, some information is not publicly 
available, e.g., CBI or other information for which 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 at 
http://www.regulations.gov or in hard copy at the following locations: 
Air and Radiation Division, U.S. EPA, Region 8, Mail Code 8ARD, 1595 
Wynkoop Street, Denver, Colorado 80202-1129; and Air Quality Program, 
Ute Indian Tribe, P.O. Box 70, Fort Duchesne, Utah 84026-0190. The EPA 
requests that if at all possible, you contact the persons listed

[[Page 3493]]

in the FOR FURTHER INFORMATION CONTACT section if you wish to view the 
hard copy of the docket. You may view the hard copy of the docket 
Monday through Friday, 8:00 a.m. to 4:00 p.m., excluding federal 
holidays.
---------------------------------------------------------------------------

    \1\ Final Rule: Oil and Natural Gas Sector: Emission Standards 
for New, Reconstructed, and Modified Sources, See 81 FR 35823 (June 
3, 2016); docket available at http://www.regulations.gov, accessed 
August 16, 2019.
    \2\ Final Rule: Federal Implementation Plan for Oil and Natural 
Gas Well Production Facilities, Fort Berthold Indian Reservation, 
North Dakota, See 78 FR 17835 (March 22, 2013); docket available at 
http://www.regulations.gov, accessed August 16, 2019.

FOR FURTHER INFORMATION CONTACT: Ms. Claudia Smith, U.S. EPA, Region 8, 
Air and Radiation Division, Mail Code 8ARD, 1595 Wynkoop Street, 
---------------------------------------------------------------------------
Denver, Colorado 80202-1129, (303) 312-6520, [email protected].

SUPPLEMENTARY INFORMATION: 

Definitions

    APA: Administrative Procedure Act.
    Act or CAA: Clean Air Act, unless the context indicates 
otherwise.
    BTU: British Thermal Unit.
    CBI: Confidential Business Information.
    CDPHE: Colorado Department of Public Health and Environment's 
Air Pollution Control Division.
    CO: carbon monoxide.
    EPA, we, us or our: The United States Environmental Protection 
Agency.
    FBIR: Fort Berthold Indian Reservation.
    FIP: Federal Implementation Plan.
    GOR: gas-to-oil ratio.
    HAP: hazardous air pollutants.
    LACT: lease automatic custody transfer.
    MDEQ: Montana Department of Environmental Quality's Air 
Resources Management Bureau.
    NAAQS: National Ambient Air Quality Standards.
    NAICS: North American Industry Classification System.
    NDDoH: North Dakota Department of Health's Division of Air 
Quality.
    NESHAP: National Emission Standards for Hazardous Air 
Pollutants.
    NMED: New Mexico Environment Department's Air Quality Bureau.
    NOX: nitrogen oxides.
    NO2: nitrogen dioxide.
    NSPS: New Source Performance Standards.
    NSR: New Source Review.
    ODEQ: Oklahoma Department of Environmental Quality's Air Quality 
Division.
    PM: particulate matter.
    PSD: Prevention of Significant Deterioration.
    PTE: potential to emit.
    RCT: Railroad Commission of Texas, Oil and Gas Division.
    RIA: Regulatory Impact Analysis
    SCADA: Supervisory Control and Data Acquisition.
    SIP: State Implementation Plan.
    SO2: sulfur dioxide.
    TAR: Tribal Authority Rule.
    TAS: treatment in the same manner as a state.
    TIP: Tribal Implementation Plan.
    UDEQ: Utah Department of Environmental Quality's Division of Air 
Quality.
    U&O Reservation or the Reservation: Indian country lands within 
the Uintah & Ouray Indian Reservation.
    VOC: volatile organic compound(s).
    VRU: vapor recovery unit.
    WDEQ: Wyoming Department of Environmental Quality's Air Quality 
Division.

    The information presented in this preamble is organized as follows:

I. General Information
    A. What entities are potentially affected by this proposal?
    B. What should I consider as I prepare my comments to the EPA?
    C. Where can I get a copy of this document and other related 
information?
II. Purpose of This Action
III. Background
    A. Uintah and Ouray Indian Reservation
    B. Tribal Authority Rule
    C. Federal Indian Country Minor NSR Rule
    D. Air Quality and Attainment Status
    E. Emissions Information
    F. What is a FIP?
    G. Oil and Natural Gas Sector in the Uinta Basin
IV. Development of the Proposed Rule
    A. Rationale for the Proposed Rule
    B. Uinta Basin Air Quality Solutions: Stakeholder Feedback
    C. Ensuring Streamlined Construction Authorizations on the U&O 
Reservation
    D. Developing the Proposed Control Requirements
    E. Effect on Determining Site-Specific Permitting Requirements
    F. Evaluation of Emissions Impacts of the Proposed Rule
    G. Costs and Benefits of the Proposed Rule
V. Summary of FIP Provisions
    A. Introduction
    B. Provisions for Delegation of Administration to the Tribe
    C. General Provisions
    D. Emissions Inventory Requirements
    E. Compliance With the National Indian Country Oil and Natural 
Gas Federal Implementation Plan for New and Modified True Minor Oil 
and Natural Gas Sources in the Uinta Basin Ozone Nonattainment Area
    F. VOC Emissions Control Requirements
    G. Monitoring Requirements
    H. Recordkeeping Requirements
    I. Notification and Reporting Requirements
VI. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs
    C. Paperwork Reduction Act (PRA)
    D. Regulatory Flexibility Act (RFA)
    E. Unfunded Mandates Reform Act (UMRA)
    F. Executive Order 13132: Federalism
    G. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    H. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    J. National Technology Transfer and Advancement Act (NTTAA)
    K. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations

I. General Information

A. What entities are potentially affected by this proposal?

    Entities potentially affected by this proposal include the Ute 
Indian Tribe,\3\ as well as new, modified and existing sources that are 
in the oil and natural gas production and natural gas processing 
segments of the oil and natural gas sector and are on Indian country 
\4\ lands within the U&O Reservation. All of the Ute Indian Tribe 
Indian country lands of which the EPA is aware are located within the 
exterior boundaries of the Reservation, and this proposed U&O FIP will 
apply to all such lands. To the extent that there are Ute Indian Tribe 
Dependent Indian Communities under 18 U.S.C. 1151(b) or allotted lands 
under 18 U.S.C. 1151(c) that are located outside the exterior 
boundaries of the Reservation, those lands will not be covered by this 
proposed U&O FIP.\5\ In addition, this

[[Page 3494]]

proposed rule will not apply to any sources on non-Indian-country 
lands, including any non-Indian-country lands within the exterior 
boundaries of the Reservation.\6\
---------------------------------------------------------------------------

    \3\ The Ute Indian Tribe is a federally recognized tribe 
organized under the Indian Reorganization Act of 1934, with a 
Constitution and By-Laws adopted by the Tribe on December 19, 1936 
and approved by the Secretary of the Interior on January 19, 1937. 
See Indian Entities Recognized and Eligible to Receive Services from 
the United States Bureau of Indian Affairs, See 82 FR 4915 (January 
17, 2017); 48 Stat. 984, 25 U.S.C. 5123 (IRA); Constitution and By-
Laws of the Ute Indian Tribe of the Uintah and Ouray Reservation, 
available at https://www.loc.gov/law/help/american-indian-consts/PDF/37026342.pdf, accessed August 16, 2019.
    \4\ Indian country is defined at 18 U.S.C. 1151 as: (a) All land 
within the limits of any Indian reservation under the jurisdiction 
of the United States Government, notwithstanding the issuance of any 
patent, and, including rights-of-way running through the 
reservation, (b) all dependent Indian communities within the borders 
of the United States whether within the original or subsequently 
acquired territory thereof, and whether within or without the limits 
of a state, and (c) all Indian allotments, the Indian titles to 
which have not been extinguished, including rights-of-way running 
through the same.
    \5\ Under the CAA, lands held in trust for the use of an Indian 
tribe are reservation lands within the definition at 18 U.S.C. 
1151(a), regardless of whether the land is formally designated as a 
reservation. See Indian Tribes: Air Quality Planning and Management, 
See 63 FR 7254, 7258 (1998) (``Tribal Authority Rule''); Arizona 
Pub. Serv. Co. v. EPA, 211 F.3d 1280, 1285-86 (D.C. Cir. 2000). 
EPA's references in this proposed U&O FIP to Indian country lands 
within the exterior boundaries of the U&O Reservation include any 
such tribal trust lands that may be acquired by the Ute Indian 
Tribe.
    In 2014, the U.S. Court of Appeals for the D.C. Circuit 
addressed EPA's authority to promulgate a FIP establishing certain 
CAA permitting programs in Indian country. Oklahoma Dept. of 
Environmental Quality v. EPA, 740 F. 3d 185 (D.C. Cir. 2014). In 
that case, the court recognized EPA's authority to promulgate a FIP 
to directly administer CAA programs on Indian reservations but 
invalidated the FIP at issue as applied to non-reservation areas of 
Indian country in the absence of a demonstration of an Indian 
tribe's jurisdiction over such non-reservation area. Because the 
current proposed rule would apply only on Indian country lands that 
are within the exterior boundaries of the U&O Reservation, i.e., on 
Reservation lands, it is unaffected by the Oklahoma court decision.
    \6\ As a result of a series of federal court decisions, there 
are some non-Indian-country lands within the exterior boundaries of 
the Uintah and Ouray Indian Reservation. See note 19.

                           Table 1--Source Categories Affected by This Proposed Action
----------------------------------------------------------------------------------------------------------------
                                                               Examples of regulated entities/description of
            Industry category                NAICS code                      industry category
----------------------------------------------------------------------------------------------------------------
Oil and Gas Production/Operations........           21111  Exploration for crude petroleum and natural gas;
                                                            drilling, completing, and equipping wells; operation
                                                            of separators, emulsion breakers, desilting
                                                            equipment, and field gathering lines for crude
                                                            petroleum and natural gas; and all other activities
                                                            in the preparation of oil and gas up to the point of
                                                            shipment from the producing property.
                                           ..............  Production of crude petroleum, the mining and
                                                            extraction of oil from oil shale and oil sands, the
                                                            production of natural gas, sulfur recovery from
                                                            natural gas, and the recovery of hydrocarbon liquids
                                                            from oil and gas field gases.
Crude Petroleum and Natural Gas                    211111  Exploration, development and/or the production of
 Extraction.                                                petroleum or natural gas from wells in which the
                                                            hydrocarbons will initially flow or can be produced
                                                            using normal pumping techniques or production of
                                                            crude petroleum from surface shales or tar sands or
                                                            from reservoirs in which the hydrocarbons are
                                                            semisolids.
Natural Gas Liquid Extraction............          211112  Recovery of liquid hydrocarbons from oil and gas
                                                            field gases; and sulfur recovery from natural gas.
Drilling Oil and Gas Wells...............          213111  Drilling oil and gas wells for others on a contract
                                                            or fee basis, including spudding in, drilling in,
                                                            redrilling, and directional drilling.
Support Activities for Oil and Gas                 213112  Performing support activities on a contract or fee
 Operations.                                                basis for oil and gas operations (except site
                                                            preparation and related construction activities)
                                                            such as exploration (except geophysical surveying
                                                            and mapping); excavating slush pits and cellars,
                                                            well surveying; running, cutting, and pulling
                                                            casings, tubes, and rods; cementing wells, shooting
                                                            wells; perforating well casings; acidizing and
                                                            chemically treating wells; and cleaning out,
                                                            bailing, and swabbing wells.
Engines (Spark Ignition and Compression              2211  Provision of electric power to support oil and
 Ignition) for Electric Power Generation.                   natural gas production where access to the electric
                                                            grid is unavailable.
----------------------------------------------------------------------------------------------------------------

    This list is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities potentially affected by this 
action. To determine whether your source could be affected by this 
action, you should examine the proposed U&O FIP applicability criteria 
in Sec.  49.4169. If you have any questions regarding the applicability 
of this action to a particular entity, contact the appropriate person 
listed in the FOR FURTHER INFORMATION CONTACT section.

B. What should I consider as I prepare my comments to the EPA?

    Submitting CBI. Do not submit this information to the EPA through 
regulations.gov or email. 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 the 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. Send or deliver information 
identified as CBI only to the following address: Mr. Aaron Zull, c/o 
Air and Radiation Division U.S. EPA, Region 8, Mail Code 8ARD, 1595 
Wynkoop St., Denver, CO 80202-1129, and Attention Docket ID No. EPA-
R08-OAR-2015-0709.
    Docket. The docket number for this action is EPA-R08-OAR-2015-0709.
    Preparing comments. When submitting comments, remember to:
     Identify the rulemaking by docket number and other 
identifying information (subject heading, Federal Register date and 
page number).
     Respond to specific questions and link comments to 
specific CFR references when appropriate.
     Explain why you agree or disagree and suggest 
alternatives. Include specific regulatory text that implements your 
requested changes.
     Explain technical information and/or data that you used to 
as the basis of your comment and provide references to the supporting 
information.
     If you estimate potential costs or burdens, explain how 
you arrived at your estimate in sufficient detail to allow for it to be 
reproduced.
     Provide specific examples to illustrate your concerns and 
suggest alternatives.
     Explain your views as clearly as possible, avoiding the 
use of profanity or personal threats.
     Make sure to submit your comments by the comment period 
deadline identified.

C. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this proposal will also be posted at: https://www.epa.gov/air-quality-implementation-plans/approved-air-quality-implementation-plans-region-8 
(Approved Air Quality Implementation Plans in Region 8 page).

II. Purpose of This Action

    In this action, the EPA is proposing to exercise its authority 
under sections 301(a) and 301(d)(4) of the CAA and 40 CFR 49.11 to 
promulgate FIP provisions that are necessary and appropriate to protect 
air quality on the U&O Reservation and in nearby communities. The 
purpose of this proposed U&O FIP is threefold. First, this proposed U&O 
FIP would improve air quality in the

[[Page 3495]]

U&O Reservation by addressing emissions from oil and natural gas 
activity that contribute to the winter ozone problem in the 
physiographic region known as the Uinta Basin,\7\ within which the U&O 
Reservation is located, and where ambient ozone levels have exceeded 
both the 2008 and the 2015 ozone NAAQS.\8\ The EPA designated portions 
of the Uinta Basin, including large portions of the U&O Reservation, as 
nonattainment for the 2015 ozone NAAQS.\9\
---------------------------------------------------------------------------

    \7\ For the purpose of this rulemaking, the EPA defines the 
geographic scope of the Uinta Basin to be consistent with the Uinta 
Basin 2014 Air Agencies Oil and Gas Emissions Inventory (herein 
after referred to as the 2014 Uinta Basin Emissions Inventory), 
which encompasses Duchesne and Uintah counties. The 2014 Uinta Basin 
Emissions Inventory is available at: https://deq.utah.gov/air-quality/2014-air-agencies-oil-and-gas-emissions-inventory-uinta-basin, accessed August 16, 2019.
    \8\ The 2015 ozone NAAQS is 70 parts per billion (ppb) (40 CFR 
50.19). The 2008 ozone NAAQS is 75 ppb. Historical ozone NAAQS 
information is available at: https://www.epa.gov/ozone-pollution/table-historical-ozone-national-ambient-air-quality-standards-naaqs, 
accessed August 16, 2019.
    \9\ On April 30, 2018, the EPA designated portions of the Uinta 
Basin below a contiguous external perimeter of 6,250 ft. as 
nonattainment for the 2015 ozone NAAQS. This includes land under 
both state and tribal jurisdiction. For more information, see 
https://www.epa.gov/ozone-designations/additional-designations-2015-ozone-standards, accessed August 16, 2019.
---------------------------------------------------------------------------

    As recently as February 2019, the Uinta Basin experienced very poor 
air quality. The problem is caused by emissions of VOC and 
NOX reacting in the presence of sunlight and widespread snow 
cover during temperature inversion conditions to form ground-level 
ozone at levels that exceed the ozone NAAQS and are, therefore, 
detrimental to public health. The main sources in the Basin responsible 
for VOC and NOX emissions are existing sources in the oil 
and natural gas sector. As explained in section III.D. (Air Quality 
Information), available information indicates that winter ozone 
formation in the Basin is driven by local emissions and is 
significantly more sensitive to changes in VOC emissions than 
NOX emissions. As explained in section III.E. (Emissions 
Information), available information indicates that the large majority 
of VOC emissions in the Basin are from existing oil and natural gas 
activity, and the large majority of those emissions are from existing 
sources on the U&O Reservation and in the nonattainment area. VOC 
emissions control requirements for existing oil and natural gas sources 
currently exist in areas of the Basin under Utah jurisdiction, but do 
not exist in the U&O Reservation and are necessary to protect air 
quality.
    The CAA does not require an attainment plan for Marginal ozone 
nonattainment areas.\10\ Accordingly, this proposed U&O FIP is not 
intended to bring the Uinta Basin back into attainment with the ozone 
standard. However, we do anticipate that this proposed U&O FIP will 
make a meaningful improvement in air quality through the reduction of 
VOC, which are an ozone precursor, while also allowing continued 
construction authorization of new development in the Basin and the 
positive economic impact that development brings to the Tribe.
---------------------------------------------------------------------------

    \10\ The requirements for Marginal ozone nonattainment areas are 
specified in Clean Air Act Title I, Part D, subpart 2 (see 42 U.S.C. 
7511a(a)) and requirements include: (1) Comprehensive, accurate, 
current inventory of actual ozone precursor emissions from all 
sources; (2) Corrections, if necessary, to existing implementation 
plans to meet specific requirements, including for nonattainment 
major source permitting; (3) Triennial emissions inventory updates; 
and (4) General offset requirements for new and modified major 
sources.
---------------------------------------------------------------------------

    This proposed action is driven by the EPA's authority and 
responsibility to protect air quality in Indian country arising from 
provisions in sections 301(a) and 301(d)(4) of the CAA and 40 CFR 
49.11. Regarding permitting of new or modified sources of air pollution 
in nonattainment areas in Indian country, the reviewing authority must 
demonstrate that construction authorization of minor sources would not 
cause or contribute to a NAAQS violation in the nonattainment area (see 
49.155(a)(7)(ii)) and that construction authorization of major sources 
would provide a net air quality benefit in the nonattainment area (see 
40 CFR 49.169(b)(4)). While the CAA Indian country nonattainment permit 
program for major sources specifies offset requirements as the method 
to make such a demonstration (see 40 CFR 49.169(b)(3)), the CAA Indian 
country nonattainment permit program for minor sources is not 
prescriptive as to how to make such a demonstration. The requirements 
in this proposed U&O FIP resulting in VOC emission reductions from 
existing sources would improve air quality and also allow the EPA to 
rely on those reductions to meet the NAAQS protection requirements for 
continued construction authorization of new or modified minor sources 
in the nonattainment area.
    Regarding the focus on VOC emission reductions in this proposed U&O 
FIP, according to the Uinta Basin Ozone Studies, which consist of field 
studies conducted in the Basin from 2011 to 2014,\11\ improvements in 
ozone levels in the Basin are most likely to come from VOC emissions 
reductions from existing oil and natural gas sources. After a careful 
analysis of emissions data provided by industry in the 2014 Uinta Basin 
Emissions Inventory, we have determined that most of the existing oil 
and natural gas sources on the U&O Reservation are largely uncontrolled 
for VOC and other emissions. Therefore, in developing this rule, we 
have concentrated on determining the most effective control 
requirements to reduce VOC emissions from oil and natural gas sources 
to address the winter ozone exceedances.
---------------------------------------------------------------------------

    \11\ Utah DEQ: Ozone in the Uinta Basin: Overview web page with 
reports on Uinta Basin ozone field studies from 2011 to 2014: 
https://deq.utah.gov/air-quality/ozone-in-the-uinta-basin, accessed 
August 16, 2019. The RIA for this rule contains detailed discussion 
of the studies and can be viewed in the docket for this rulemaking 
(Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    Second, the proposed control requirements are intended to be the 
same as or consistent with the requirements applicable to similar 
sources on Utah-regulated lands, to promote a more consistent 
regulatory environment across the Basin. Where we are proposing to 
regulate existing equipment or activities that are regulated by EPA 
standards for the oil and natural gas sector, we also have consulted 
those EPA standards.
    We are proposing to make the final rule effective on the date of 
publication. We are proposing that compliance with the FIP for sources 
that construct on or after the effective date of the final rule would 
be required upon startup. Compliance for sources that commence 
construction before the effective date of the final rule would be 
required no later than 18 months after the effective date of the final 
rule.
    Finally, given the number of oil and natural gas projects in the 
Basin that are already approved or are in the federal review and 
approval process through evaluations conducted under the National 
Environmental Policy Act (NEPA) by other federal agencies,\12\ in the 
coming years the EPA could receive a large number of applications for 
authorization to construct new and modified synthetic minor oil and 
natural gas sources on the U&O Reservation and registrations of new and 
modified true minor oil and natural gas sources on the U&O Reservation 
under the National O&NG FIP. We

[[Page 3496]]

recently took action to reinstate the streamlined construction 
authorization mechanism available for true minor oil and natural gas 
sources in Indian country through the National O&NG FIP (codified at 40 
CFR part 49, subpart C, Sec. Sec.  49.101-49.105) \13\ for the portions 
of the U&O Reservation that are included in the area of the Uinta Basin 
that has been designated nonattainment for the 2015 ozone NAAQS.\14\ In 
the separate action, we amended the National O&NG FIP to extend its 
geographic coverage to the Indian country portions of the U&O 
Reservation that are part of the Uinta Basin Ozone Nonattainment Area. 
In addition to providing a streamlined construction authorization 
mechanism to new and modified true minor oil and natural gas 
sources,\15\ the National O&NG FIP requires compliance with a suite of 
eight federal oil and natural gas sector emissions standards \16\ for 
new and modified sources, as applicable. The existing source emissions 
reductions achieved under the proposed FIP, once implemented, would 
allow the EPA to demonstrate that both permitting the construction of 
new and modified synthetic minor oil and natural gas sources and 
registration of new and modified true minor oil and natural gas sources 
under the National O&NG FIP would be protective of the NAAQS on the U&O 
Reservation. This will be described in greater detail in Sections IV.C. 
and V.E.
---------------------------------------------------------------------------

    \12\ Spreadsheet titled ``Uinta Basin OG NEPA Evaluations 
9.11.19.pdf'', available in the Docket for this rulemaking (Docket 
ID No. EPA-R08-OAR-2015-0709), lists oil and natural gas production 
projects in the Uinta Basin that have been subject to evaluation 
under NEPA.
    \13\ Final Rule: Federal Implementation Plan for True Minor 
Sources in Indian Country in the Oil and Natural Gas Production and 
Natural Gas Processing Segments of the Oil and Natural Gas Sector; 
Amendments to the Federal Minor New Source Review Program in Indian 
Country to Address Requirements for True Minor Sources in the Oil 
and Natural Gas Sector, 81 FR 35943 (June 3, 2016); docket No. EPA-
HQ-OAR-2014-0606, available at http://www.regulations.gov, accessed 
August 16, 2019.
    \14\ Final Rule: Amendments to Federal Implementation Plan for 
Managing Air Emissions from True Minor Sources in Indian Country in 
the Oil and Natural Gas Production and Natural Gas Processing 
Segments of the Oil and Natural Gas Sector, 84 FR 21240 (May 14, 
2019); Docket No. EPA-HQ-OAR-2014-0606, available at http://www.regulations.gov, accessed August 16, 2019.
    \15\ As defined in the Federal Minor New Source Review Program 
in Indian Country at 40 CFR 49.152, a true minor source is a source 
that emits or has the potential to emit regulated NSR pollutants in 
amounts that are less than the major source thresholds in Sec.  
49.167 (federal preconstruction permit program for major sources in 
nonattainment areas in Indian country) or Sec.  52.21 (federal 
preconstruction permit program for major sources in attainment/
unclassifiable areas), as applicable, but equal to or greater than 
the minor NSR thresholds in Sec.  49.153 (federal preconstruction 
permit program for minor sources in Indian country), without the 
need to take an enforceable restriction to reduce its potential to 
emit to such levels.
    \16\ See 40 CFR 49.105. The National O&NG FIP specifies that 
sources must comply with, as applicable, the following standards: 
NESHAP 40 CFR part 63, subpart DDDDD; NESHAP 40 CFR part 63, subpart 
ZZZZ; NSPS IIII 40 CFR part 60, subpart IIII; NSPS 40 CFR part 60, 
subpart JJJJ; NSPS 40 CFR part 60, subpart Kb; NSPS 40 CFR part 60, 
subpart OOOOa; NESHAP 40 CFR part 63, subpart HH; and NSPS 40 CFR 
part 60, subpart KKKK.
---------------------------------------------------------------------------

    In this action we are proposing to continue the streamlined 
construction authorization mechanism permanently for true minor oil and 
natural gas sources on the Indian country portions of the U&O 
Reservation that are part of the Uinta Basin Ozone Nonattainment Area 
through a different regulatory mechanism than the one we employed in 
our recent final action (i.e., amending the National O&NG FIP). 
Instead, in this action we are proposing to apply the requirements of 
the National O&NG FIP (through 40 CFR part 49, subpart K) to the 
portions of the U&O Reservation that are included in the Uinta Basin 
Nonattainment Area. The effect of this proposal, if finalized as 
proposed, will be the permanent continuation of uninterrupted 
streamlined construction authorizations on the U&O Reservation; the 
advantage of using the different regulatory mechanism that we are 
proposing here is that the requirements (or at least reference to them) 
for the Indian country portions of the U&O Reservation that are part of 
the Uinta Basin Ozone Nonattainment Area relative to oil and natural 
gas will be located in one place in the Code of Federal Regulations, 
which we believe provides a more efficient and user-friendly 
approach.\17\ This will be described in greater detail in Sections 
IV.C. and V.E.
---------------------------------------------------------------------------

    \17\ If this action as proposed is finalized, then the EPA's 
intent would be to propose to withdraw its other action in which it 
amended the National O&NG FIP to provide streamlined construction 
authorizations as it would be redundant and no longer needed.
---------------------------------------------------------------------------

    In the preamble to the final National O&NG FIP published on June 3, 
2016, we indicated that the most appropriate means for addressing air 
quality concerns on specific reservations due to impacts from oil and 
natural gas activity is through area- or reservation-specific FIPs and 
not through the National O&NG FIP. Further, we stated that such FIPs 
may need to include requirements for existing, new and modified sources 
beyond those in the National O&NG FIP.\18\ Consistent with that 
approach, this action would impose some requirements for new and 
modified sources that are in addition to what is required by the eight 
federal oil and natural gas sector emissions standards incorporated in 
the National O&NG FIP. Therefore, new and modified true minor oil and 
natural gas sources on the U&O Reservation that would use the National 
O&NG FIP for construction authorization may have to comply with other 
requirements for certain equipment or activities not covered by the 
eight federal standards, as applicable under this action, in addition 
to the requirements in the National O&NG FIP.\19\ We are relying on the 
VOC emissions reductions in this action to support the limited 
extension of the National O&NG FIP to the Indian country portion of the 
Uinta Basin Ozone Nonattainment Area.
---------------------------------------------------------------------------

    \18\ See 81 FR 35964 and 35968.
    \19\ As described in detail later, this action proposes to 
exempt certain equipment and activities that are subject to the 
emissions control requirements of certain federal standards, a 
subset of the eight federal standards in the National O&NG FIP, from 
having to comply the emissions control requirements in this action 
for those same equipment and activities, but there are other 
equipment, such as small and remote glycol dehydrators, that are not 
regulated by those federal standards, but are proposed to be 
regulated in this action.
---------------------------------------------------------------------------

    Emissions from existing oil and natural gas sources have been shown 
to be the largest contributor to VOC emissions on the U&O Reservation 
and in the Uinta Basin, and therefore, the largest contributor to 
elevated winter ozone levels in the area. Implementing this proposed 
U&O FIP at existing oil and natural gas sources on the U&O Reservation 
will result in significant annual VOC reductions, thus improving air 
quality within the Basin.
    The combination of this proposed U&O FIP (when finalized) and the 
National O&NG FIP amendments is intended to: (1) Improve air quality on 
the U&O Reservation; (2) promote a more consistent regulatory 
environment across the Basin; and (3) ensure that the emissions 
reductions achieved from this proposed U&O FIP can be the basis for new 
development and a streamlined construction authorization mechanism for 
new or modified true minor oil and natural gas sources wishing to 
locate or expand on the Indian country portions of the ozone 
nonattainment area through the National O&NG FIP amendments.

III. Background

A. Uintah and Ouray Indian Reservation

    The Uintah and Ouray Indian Reservation was formed from the Uintah 
Valley and Uncompahgre Reservations, which were established by 
executive order in 1861 and 1882, respectively.\20\ In 1886 the 
Department of the Interior merged the two reservations to create the 
U&O Reservation, and in 1948 Congress expanded the Reservation with

[[Page 3497]]

the Hill Creek Extension.\21\ The U&O Reservation's boundaries have 
been further addressed and explained in a series of federal court 
decisions.\22\
---------------------------------------------------------------------------

    \20\ See Exec. Order of Oct. 3, 1861, reprinted in 1 Charles J. 
Kappler, Indian Affairs: Laws and Treaties 900 (1904); confirmed by 
Congress in the Act of May 5, 1864, ch. 77, 13 Stat. 63; Exec. Order 
of Jan. 5, 1882, reprinted in Indian Affairs: Laws and Treaties at 
901.
    \21\ U.S. Office of Indian Affairs, Dept. of the Interior, 
Annual Report of the Commissioner of Indian Affairs, at 226 (1886); 
62 Stat. 72 (1948).
    \22\ See Ute Indian Tribe v. Utah, 521 F. Supp. 1072 (D. Utah 
1981); Ute Indian Tribe v. Utah, 716 F.2d 1298 (10th Cir. 1983); Ute 
Indian Tribe v. Utah, 773 F.2d 1087 (10th Cir. 1985) (en banc), 
cert. denied, 479 U.S. 994 (1986); Hagen v. Utah, 510 U.S. 399 
(1994); Ute Indian Tribe v. Utah, 935 F. Supp. 1473 (D. Utah 1996); 
Ute Indian Tribe v. Utah, 114 F.3d 1513 (10th Cir. 1997), cert. 
denied, 522 U.S. 1107 (1998); Ute Indian Tribe v. Utah, 790 F.3d 
1000 (10th Cir. 2015), cert. denied, 136 S. Ct. 1451 (2016); and Ute 
Indian Tribe v. Myton, 835 F.3d 1255 (10th Cir. 2016), cert. 
dismissed, 137 S. Ct. 2328 (2017).
---------------------------------------------------------------------------

B. Tribal Authority Rule

    Section 301(d) of the Clean Air Act (CAA) authorizes the EPA to 
treat Indian tribes in the same manner as states for purposes of 
implementing the CAA over their entire reservations and over any other 
areas within their jurisdiction, and directs the EPA to promulgate 
regulations specifying those provisions of the CAA for which such 
treatment is appropriate.\23\ It also authorizes the EPA, when the EPA 
determines that the treatment of Indian tribes as identical to states 
is inappropriate or administratively infeasible, to provide by 
regulation other means by which the EPA will directly administer the 
CAA.\24\ Acting principally under that authority, on February 12, 1998, 
the EPA promulgated the Tribal Authority Rule (TAR).\25\ In the TAR, we 
determined that it was appropriate to treat eligible tribes in the same 
manner as states for all CAA statutory and regulatory purposes, except 
a list of specified CAA provisions and implementing regulations 
thereunder.\26\ That list of excluded provisions includes specific plan 
submittal and implementation deadlines for NAAQS-related requirements, 
among them the CAA section 110(a)(2)(C) requirement to submit a program 
(including a permit program as required in parts C and D of the CAA) to 
regulate the modification and construction of any stationary source as 
necessary to assure that the NAAQS are achieved. Other provisions for 
which we determined that we would not treat tribes in the same manner 
as states include CAA section 110(a)(1) (SIP submittal) and CAA section 
110(c)(1) (directing the EPA to promulgate a FIP ``within 2 years'' 
after we find that a state has failed to submit a required plan or has 
submitted an incomplete plan, or within 2 years after we disapprove all 
or a portion of a plan).
---------------------------------------------------------------------------

    \23\ 42 U.S.C. 7601(d)(1) and (2); See 63 FR 7254-57 (February 
12, 1998) (explaining that CAA section 301(d) includes a delegation 
of authority from Congress to eligible Indian tribes to implement 
CAA programs over all air resources within the exterior boundaries 
of their Reservations).
    \24\ 42 U.S.C. 7601(d)(4).
    \25\ ``Indian Tribes: Air Quality Planning and Management.'' see 
63 FR 7254 (February 12, 1998); 40 CFR 49.1-49.11.
    \26\ 40 CFR 49.3-.4. To be eligible for treatment in a similar 
manner as a state (TAS) under the Tribal Authority Rule, a tribe 
must meet four requirements: (1) Be a federally recognized tribe; 
(2) have a governing body carrying out substantial governmental 
duties and functions; (3) propose to carry out functions pertaining 
to the management and protection of air resources of the tribe's 
reservation or other areas within the tribe's jurisdiction; and (4) 
be reasonably expected to be capable of carrying out the functions. 
40 CFR 49.6. A tribe interested in administering a particular CAA 
program or function may apply to the appropriate regional 
administrator for a determination of whether it meets these TAS 
eligibility criteria with respect to that program or function. 40 
CFR 49.7.
---------------------------------------------------------------------------

    The TAR preamble clarified that by including CAA section 110(c)(1) 
on the list at 40 CFR 49.4, the ``EPA is not relieved of its general 
obligation under the CAA to ensure the protection of air quality 
throughout the nation, including throughout Indian country.'' \27\ The 
preamble confirmed that the ``EPA will continue to be subject to the 
basic requirement to issue a FIP for affected tribal areas within some 
reasonable time.'' \28\ Consistent with those statements, the TAR 
includes a provision requiring the EPA to ``promulgate without 
unreasonable delay such Federal implementation plan provisions as are 
necessary or appropriate to protect air quality,'' unless a complete 
tribal implementation plan is submitted or approved.\29\
---------------------------------------------------------------------------

    \27\ See 63 FR at 7265 (February 12, 1998).
    \28\ Id.
    \29\ 40 CFR 49.11(a).
---------------------------------------------------------------------------

    The Ute Indian Tribe has not applied for TAS for the purpose of 
administering a Tribal Implementation Plan (TIP) under the CAA; nor has 
it submitted a TIP for review and approval. Thus, with respect to the 
U&O Reservation, there is currently no submitted or EPA-approved tribal 
plan that would address the air quality purposes described earlier. The 
FIP the EPA is proposing provides such a plan and applies to all Indian 
country lands within the exterior boundaries of the U&O Reservation.

C. Federal Indian Country Minor NSR Rule

1. What is the Federal Indian Country Minor NSR rule?
    In 2006, acting under the authority provided in CAA section 301(d) 
and in the TAR, we proposed the FIP regulation: ``Review of New Sources 
and Modifications in Indian Country'' (Indian Country NSR rule).\30\ As 
a part of this regulation, the EPA made a finding that it was necessary 
or appropriate to protect air quality by proposing a FIP to establish a 
program to regulate the modification and construction of minor 
stationary sources consistent with the requirements of section 
110(a)(2)(c) of the CAA, where there was no EPA-approved tribal minor 
NSR permit program in Indian country to regulate construction of new 
and modified minor sources and minor modifications of major sources. We 
call this part of the Indian Country NSR rule the Federal Indian 
Country Minor NSR rule. In developing that FIP, we sought \31\ to 
``establish a flexible preconstruction permitting program for minor 
sources in Indian country that is comparable to similar programs in 
neighboring states in order to create a more consistent regulatory 
environment for owners/operators within and outside of Indian 
country.'' The Federal Indian Country Minor NSR rule provides a 
mechanism for issuing preconstruction permits for the construction of 
new minor sources and certain modifications of major and minor sources 
in areas covered by the rule. In developing the rule, the EPA conducted 
extensive outreach and consultation, along with a 7-month public 
comment period that ended on March 20, 2007. The comments provided 
detailed information specific to Indian country and the final Federal 
Indian Country Minor NSR rule incorporated many of the suggestions we 
received. We promulgated final rules on July 1, 2011,\32\ and the FIP 
became effective on August 30, 2011.
---------------------------------------------------------------------------

    \30\ ``Review of New Sources and Modifications in Indian 
Country,'' Proposed Rule, See 71 FR 48696 (Aug. 21, 2006).
    \31\ See 76 FR 38754 (July 1, 2011).
    \32\ ``Review of New Sources and Modifications in Indian 
Country,'' Final Rule, See 76 FR 38748 (July 1, 2011).
---------------------------------------------------------------------------

    The Federal Indian Country Minor NSR rule applies to existing, new, 
and modified minor stationary sources and to minor modifications at 
existing major stationary sources in Indian country \33\ where there is 
no EPA-approved program in place. Tribes can elect to develop and 
implement their own EPA-approved program under the TAR,\34\ but

[[Page 3498]]

are not required to do so.\35\ In the absence of an EPA-authorized 
program, the EPA implements the program. Tribes can request 
administrative delegation of the federal program from the EPA and may 
be authorized by the EPA to implement agreed upon rules or provisions 
on behalf of the Agency.
---------------------------------------------------------------------------

    \33\ 40 CFR 49.153. Existing sources are only subject to the 
registration requirements unless they undergo modification.
    \34\ To be eligible to develop and implement an EPA-approved 
program, under the Tribal Authority Rule a tribe must meet four 
requirements: (1) Be a federally-recognized tribe; (2) have a 
functioning government carrying out substantial duties and powers; 
(3) propose to carry out functions pertaining to air resources of 
the reservation or other areas within the tribe's jurisdiction; and 
(4) be reasonably expected to be capable of carrying out the 
program. See 40 CFR 40 CFR 49.1-49.11.
    \35\ Tribes can also establish permit fees under a tribal 
permitting program pursuant to tribal law, as do most states.
---------------------------------------------------------------------------

    Any existing, new, or modified stationary source in the oil and 
natural gas sector that emits or has the potential to emit (PTE) a 
regulated NSR pollutant in amounts equal to or greater than the minor 
NSR thresholds in the Federal Indian Country Minor NSR rule, but less 
than the amount that would qualify the source as a major source or a 
major modification for purposes of the PSD or nonattainment major NSR 
programs, must submit a registration form to the EPA containing 
information on, among other things, source-wide actual emissions of NSR 
regulated pollutants, information on the methods used to calculate the 
emissions, and descriptions of the various emitting activities and 
equipment operated at the source. Existing, new, and modified oil and 
natural gas sources that commenced construction before October 3, 2016, 
complied with the Federal Indian Country Minor NSR Permit Program by 
registering under the Existing Source Registration Program at 40 CFR 
49.160. Beginning October 3, 2016, the owner/operator of any new true 
minor oil and natural gas source must comply with the National O&NG FIP 
or apply for and obtain a site-specific true minor NSR permit before 
beginning construction. Likewise, the owner/operator of any existing 
stationary source (minor or major) must comply with the National O&NG 
FIP or apply for and obtain a minor NSR permit before beginning 
construction of a physical or operational change that will increase the 
allowable emissions of the stationary source in amounts equal to or 
above the specified threshold amounts, if the change does not otherwise 
trigger PSD or nonattainment major or minor NSR permitting 
requirements.\36\
---------------------------------------------------------------------------

    \36\ A source may, however, be subject to certain monitoring, 
recordkeeping, and reporting (MRR) requirements under the major NSR 
program, if the change has a reasonable possibility of resulting in 
a major modification. A source may be subject to both the Federal 
Indian Country Minor NSR rule and the reasonable possibility MRR 
requirements of the major NSR program(s).
---------------------------------------------------------------------------

2. What are the minor NSR thresholds?
    The ``minor NSR thresholds'' establish cutoff levels for each 
regulated NSR pollutant. If a source has a PTE in amounts lower than 
the thresholds,\37\ then it is exempt from the Federal Indian Country 
Minor NSR rule for that pollutant. New or modified sources that have a 
PTE in amounts that are: (1) Equal to or greater than the minor NSR 
thresholds; and (2) less than the major NSR thresholds (generally 100 
or 250 tons per year (tpy)) are ``minor sources'' of emissions and 
subject to the Federal Indian Country Minor NSR rule requirements at 40 
CFR 49.151 through 49.161. Modifications at existing major sources that 
have PTE equal to or greater than the minor NSR thresholds, but less 
than the major NSR significant emission rates (range 10-100 tpy, 
depending on the pollutant) are also ``minor sources'' of emissions and 
subject to the Federal Indian Country Minor NSR rule requirements.
---------------------------------------------------------------------------

    \37\ See 40 CFR 49.153 and Table 1.
---------------------------------------------------------------------------

    The minor NSR thresholds for VOC emissions for sources in Indian 
country are 2 tpy in nonattainment areas and 5 tpy in attainment and 
unclassifiable areas. Portions of the U&O Reservation are currently 
designated unclassifiable for the 2008 ozone NAAQS. As discussed 
previously and further in Section D (Air Quality and Attainment 
Status), other portions of the U&O Reservation are included in the 
Uinta Basin Ozone Nonattainment Area, and, therefore, the minor NSR 
thresholds for VOC are 2 tpy in those portions of the reservation.

D. Air Quality and Attainment Status

    With respect to air quality, ozone levels in the Uinta Basin, in 
which the U&O Reservation is located, have reached unhealthy levels 
that warrant action. The 2015 8-hour ozone NAAQS is 70 parts per 
billion (ppb).\38\ Compliance with the NAAQS is determined by 
comparison to a ``design value'' based on a three-year average of the 
fourth highest daily maximum 8-hour average ozone levels measured in a 
year at each monitoring site. The state of Utah, the National Park 
Service (NPS), and the Ute Indian Tribe operate ozone, 
PM2.5, and NO2 monitors in and around the Uinta 
Basin. The ambient air concentrations measured at some of these 
stations show that ozone levels in the Uinta Basin have repeatedly 
violated both the 2008 and 2015 ozone NAAQS. Based on 2012-2017 
regulatory air quality monitoring data, ozone design values exceed the 
2015 ozone NAAQS at five monitoring sites in the Uinta Basin. The 
highest valid ozone design value in the Uinta Basin for 2012-2017 was 
from the Ouray monitor at 88 ppb.\39\ Additionally, higher single 8-
hour average ozone concentrations were observed at some monitoring 
sites, before the sites were designated as regulatory monitors.\40\ For 
example, 8-hour average ozone concentrations reached values as high as 
141 ppb at the Ouray monitor in March 2013. This concentration 
corresponds to an Air Quality Index value of 211, which is 
characterized as ``Very Unhealthy.'' \41\ As discussed previously, the 
EPA designated areas in the Uinta Basin as marginal nonattainment for 
the 2015 ozone standard.\42\ The EPA is issuing this notice of proposed 
rulemaking (NPRM) today because we have concluded that it is necessary 
and appropriate to take action to protect air quality on the U&O 
Reservation due to these elevated ozone levels.
---------------------------------------------------------------------------

    \38\ Revised Ozone NAAQS was signed by EPA Administrator Gina 
McCarthy on October 1, 2015, See 80 FR 65292 (October 26, 2015).
    \39\ Valid design values are the regulatory statistic to 
determine compliance with a NAAQS. They are calculated in accordance 
with the appropriate NAAQS-specific appendix to 40 CFR part 50. For 
the 2008 Ozone NAAQS (75 ppb), the appropriate appendix is 40 CFR 
part 50, Appendix P, and for the 2015 Ozone NAAQS (70 ppb) it is 40 
CFR part 50, Appendix U. Regulatory ozone data is available at 
https://www.epa.gov/air-trends/ozone-trends, accessed August 16, 
2019.
    \40\ A ``regulatory'' monitor is a monitor that meets EPA's air 
quality monitoring requirements for siting, equipment selection, 
data sampling protocols, quality assurance and so on under EPA's 
monitoring regulations at 40 CFR part 58.
    \41\ The Air Quality Index (AQI) is a normalized system to allow 
the public to compare health risks of different air pollutants on a 
common scale. The AQI is divided into six levels of health concern: 
Good, Moderate, Unhealthy for Sensitive Groups, Unhealthy, Very 
Unhealthy, and Hazardous.
    \42\ Affected areas include portions of Uintah and Duchesne 
counties below 6,250 feet, including portions of the U&O 
Reservation.
---------------------------------------------------------------------------

    Ambient ozone is a secondary pollutant that is formed from the two 
primary precursor emissions of VOC and NOX. Ozone is not 
emitted directly into the air but is created when VOC and 
NOX react in the presence of sunlight. Air quality data and 
studies in the Uinta Basin show that winter ozone levels above the 
ozone NAAQS are due to a combination of the unique meteorological and 
topographical features of the Basin, and abundant local ground level 
emissions of VOC and NOX. The unique meteorological and 
topographic features in the Uinta Basin are strong and persistent 
temperature inversions forming over snow covered ground and elevated 
terrain completely surrounding a low basin. The stable atmosphere 
allows the emissions to accumulate and react with sunlight but prevents 
the emissions from escaping the temperature inversion layer and 
dispersing. Therefore, ozone continues to form while the unique

[[Page 3499]]

meteorological conditions persist.\43\ The state of Utah conducted 
special field studies in the Uinta Basin from 2011 to 2014 to 
understand the emissions sources that contribute to winter ozone. 
Reports for the winter ozone field studies for each year are available 
on the UDEQ web page.\44\ These studies found that the oil and natural 
gas production sector is the most significant anthropogenic contributor 
of VOC and NOX emissions in the Basin. The studies also 
concluded that ozone production in the Basin is sensitive to reductions 
in VOC emissions but relatively less sensitive to reductions in 
NOX emissions. Thus, ozone levels in the Uinta Basin are 
being more significantly influenced by VOC emissions than by 
NOX emissions.
---------------------------------------------------------------------------

    \43\ The RIA for this proposed rule contains a more detailed 
discussion of winter ozone and can be viewed in the docket for this 
rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
    \44\ ``Ozone in the Uinta Basin,'' https://deq.utah.gov/air-quality/ozone-in-the-uinta-basin, August 16, 2019.
---------------------------------------------------------------------------

    The EPA has determined that the proposed action would result in 
large reductions of VOC emissions, and relatively small increases in 
NOX emissions, and that this result is expected to reduce 
ambient ozone and reduce the severity of exceedances of the 2008 and 
2015 ozone NAAQS. As discussed in more detail later, the proposed 
action includes a requirement for owners/operators to submit emissions 
inventories on a triennial basis. This information will enable the 
successful partnership to continue among the EPA, the UDEQ, the Tribe 
and industry in maintaining an accurate oil and natural gas emissions 
inventory for the Uinta Basin to be used, in part, as a tool for 
managing the Basin's air quality.
    We have previously informed the public of our intent to undertake 
action specific to the U&O Reservation; as noted earlier, in the 
preamble to the National O&NG FIP, we indicated that: ``For the Uintah 
and Ouray Reservation, we have sufficient concerns about the air 
quality impacts from existing sources that we plan to propose a 
separate U&O FIP.'' \45\ After further review, the EPA concludes that 
action is needed to address poor air quality on the U&O Reservation.
---------------------------------------------------------------------------

    \45\ See 81 FR at 35963 (June 3, 2016).
---------------------------------------------------------------------------

E. Emissions Information

    In 2017, the EPA, in partnership with the UDEQ and the Ute Indian 
Tribe, developed the 2014 Uinta Basin Emissions Inventory, an emission 
inventory of oil and natural gas activity in the Uinta Basin that was 
populated with data provided by oil and natural gas operators in the 
Basin.\46\ We are also aware of several other available sources of 
information on air emissions from oil and natural gas activity in the 
Uinta Basin, including: (1) The 2014 National Emissions Inventory (2014 
NEI); \47\ (2) a study by the Western Regional Air Partnership (WRAP); 
\48\ (3) existing minor source registration data submitted to the EPA 
per the Federal Indian Country Minor NSR Program; \49\ and (4) the EPA 
Greenhouse Gas Reporting Program, subpart W Petroleum and Natural Gas 
Systems.\50\ They are discussed in more detail in the Regulatory Impact 
Analysis (RIA) for this proposed rule.\51\
---------------------------------------------------------------------------

    \46\ The inventory and supporting analysis can be viewed in the 
docket for this rule (Docket ID No. EPA-R08-OAR-2015-0709), 
Microsoft Excel spreadsheet titled ``2014 UB EI summary data U&O FIP 
NPRM''. The complete, detailed dataset for the 2014 Uinta Basin 
Emission Inventory can also be viewed in the docket in a SQLite 
database titled ``OGEI_v2.2_2014FINAL.db''. We are proposing in this 
proposed U&O FIP to require owners and operators to submit triennial 
emissions inventories, like a requirement proposed by the UDEQ in 
October of 2017. These triennial updates will provide information on 
how emissions are changing in the Basin from the 2014 baseline. See 
Section V (Summary of FIP Provisions).
    \47\ 2014 National Emissions Inventory (2014 NEI), available at 
https://www.epa.gov/air-emissions-inventories/2014-nei-data, 
accessed August 16, 2019. The UDEQ has submitted the 2014 Uinta 
Basin Emissions Inventory to the 2014 NEI, but the publicly 
available NEI has not yet been updated to include the Uinta Basin 
inventory. Analysis of the 2014 NEI for the purposes of this 
proposed U&O FIP was prepared using the version publicly available 
before the UDEQ.
    \49\ Data from existing minor source registration reports 
submitted under 40 CFR 49.160 of the Federal Indian Country Minor 
NSR Program by operators of sources on the Indian country lands 
within the U&O Reservation.
    \48\Western Regional Air Partnership (WRAP), O&G Emissions 
Workgroup: Phase III Inventory, Uinta Basin Reports, 2012 Mid-Term 
Projection Technical Memo, ``Development of 2012 Oil and Gas 
Emissions Projections for the Uinta Basin'', March 25, 2009, 
available at http://www.wrapair2.org/Phase III.aspx, accessed August 
16, 2019. Some of the 2014 Uinta Basin Emissions Inventory was 
generated from prorating the 2012 WRAP estimates (which prorated and 
adjusted their 2006 work) to 2014 activity levels.
    \50\ EPA Greenhouse Gas Reporting Program (GHGRP) Petroleum and 
Natural Gas Systems, available at https://www.epa.gov/ghgreporting/ghgrp-petroleum-and-natural-gas-systems, accessed August 16, 2019.
    \51\ The RIA can be viewed in the docket for this rulemaking 
(Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    The 2014 NEI provides a general picture of the relative 
contribution of oil and natural gas emissions compared to other 
industry sectors, indicating that emissions from the production segment 
of the oil and natural gas sector were estimated to be the largest 
anthropogenic contributor of both VOC and NOX emissions in 
the Uinta Basin. The WRAP study provides a general picture of the 
relative emissions contribution in the Basin from various oil and 
natural gas equipment and activities on Indian country lands. The 
existing minor source registration data provide a general picture of 
the large percentage of unpermitted and likely uncontrolled minor 
emissions sources on the U&O Reservation. The EPA Greenhouse Gas 
Reporting Program, subpart W, provides annual reports by operators of 
activity levels and methane emissions from oil and natural gas 
operations in the Uinta Basin. The 2014 Uinta Basin Emissions Inventory 
is a comprehensive source of oil and natural gas source VOC emissions 
data for the Uinta Basin that provided information for the cost and 
benefit analysis supporting this rulemaking.
    The 2014 Uinta Basin Emissions Inventory indicates that the 
majority of existing oil and natural gas sources in the region are on 
the U&O Reservation. Most of these existing oil and natural gas sources 
on the U&O Reservation are minor sources and are uncontrolled. The 2014 
NEI indicates that, compared to other industry sector sources, existing 
oil and natural gas sources are cumulatively the largest contributor of 
VOC and NOX to measured exceedances of the ozone NAAQS in 
the Uinta Basin. Existing oil and natural gas sources on the portions 
of the Basin regulated by the UDEQ are subject to emission reduction 
requirements, while existing sources on the U&O Reservation are either 
subject to less stringent regulation or no regulation at all.
    Specifically, the inventory shows that 79 percent of all existing 
oil and natural gas facilities in the Uinta Basin are located on Indian 
country lands within the U&O Reservation, producing oil and natural gas 
(and processing natural gas) from 76 percent of all producing wells in 
the Basin. According to the inventory, over 71,000 tons of VOC and 
almost 9,500 tons of NOX emissions were emitted in 2014 from 
existing oil and natural gas sources on the U&O Reservation. That is 
approximately 81 percent of the total oil and natural gas-related VOC 
emissions in the Uinta Basin and approximately 70 percent of the total 
oil and natural gas-related NOX emissions in the Uinta 
Basin. These data confirm that the bulk of the ozone-related emissions 
in the Uinta Basin are released from sources on the Indian country 
lands within the U&O Reservation.
    Many of the oil and natural gas sources on the U&O Reservation are 
uncontrolled. According to the 2014 Uinta Basin Emissions Inventory, on 
the Indian country lands within the U&O Reservation, 85 percent of the 
total

[[Page 3500]]

number of existing storage tanks, 97 percent of the total number of 
existing glycol dehydrators and 99 percent of existing pneumatic pumps 
are uncontrolled emitters of VOC. By contrast, on state-regulated land 
within the Basin, 67 percent of the total number of existing storage 
tanks and 14 percent of the total number of existing glycol dehydrators 
are uncontrolled (uncontrolled pneumatic pump numbers are relatively 
equivalent to Indian country at 98 percent). The UDEQ has adopted 
revisions to existing oil and natural gas source requirements and 
existing minor source permitting requirements, and has adopted new 
requirements, including a Permit by Rule that replaces the requirement 
for minor oil and natural gas sources to obtain a site-specific 
permit.\52\ Now that the revised and new requirements are effective, we 
expect the percentage of uncontrolled existing storage tanks and glycol 
dehydrators in the UDEQ's jurisdiction will decrease from what was 
reported in the 2014 inventory. The UDEQ's rule revisions and new rules 
are discussed in more detail in Section IV.D (Developing the Proposed 
Control Requirements). In addition, the 2014 inventory shows that 
emissions from oil and natural gas wastewater disposal facilities on 
the Indian country lands within the U&O Reservation comprise 
approximately 33 percent of the total VOC emissions from oil and 
natural gas activity on the U&O Reservation. As explained in Section 
IV. D. (Developing the Proposed Control Requirements), these facilities 
may not be controlled under the CAA, because they do not meet the 
applicability criteria of preconstruction permitting programs or 
federal emissions standards regulating them.
---------------------------------------------------------------------------

    \52\ Utah State Bulletin, Official Notices of Utah State 
Government, Filed January 03, 2018, 12:00 a.m. through January 16, 
2018, 11:59 p.m., 11:59 p.m., Number 2018-3, February 01, 2018, 
Nancy L. Lancaster, Managing Editor, pages 46-68, available at 
https://rules.utah.gov/publicat/bull_pdf/2018/b20180201.pdf, 
accessed August 16, 2019.
---------------------------------------------------------------------------

    Based on this collection of emissions information (and other 
information about meteorological conditions and local geography), the 
EPA has concluded that winter ozone levels in the Uinta Basin are most 
significantly influenced by VOC emissions from the presence of numerous 
minor, unpermitted and largely uncontrolled oil and natural gas 
production operations on the U&O Reservation.

F. What is a FIP?

    Under section 302(y) of the CAA, the term ``Federal implementation 
plan'' means ``a plan (or portion thereof) promulgated by the 
Administrator to fill all or a portion of a gap or otherwise correct 
all or a portion of an inadequacy in a State implementation plan, and 
which includes enforceable emission limitations or other control 
measures, means or techniques (including economic incentives, such as 
marketable permits or auctions of emissions allowances), and provides 
for attainment of the relevant national ambient air quality standard.'' 
As discussed previously in section III.B., CAA sections 301(a) and 
301(d)(4) and 40 CFR 49.11(a) authorize the EPA to promulgate such FIPs 
as are necessary or appropriate to protect air quality if a Tribe does 
not submit or receive EPA approval of a TIP.
    The Federal Indian Country Minor NSR rule is an example of a FIP, 
as discussed in section III.C. Another example of the EPA's use of its 
FIP authority is to protect air quality in areas of Indian country with 
no EPA-approved program, while at the same time seeking to provide a 
consistent regulatory environment where appropriate, is the ``FIP for 
Oil and Natural Gas Well Production Facilities; Fort Berthold Indian 
Reservation (FBIR; Mandan, Hidatsa, and Arikara Nation), North 
Dakota.'' \53\ In that rule, we took an important initial step to 
control volatile organic compound (VOC) emissions from existing, new 
and modified oil and natural gas operations on the FBIR. We drafted 
requirements that were consistent to the greatest extent practicable 
with the most relevant aspects of neighboring state and local rules 
concerning the air pollutant emitting activities on the FBIR. We did 
not intend at the time, nor did we expect, the regulation to impose 
significantly different regulatory burdens upon industry or the 
residents of the FBIR than those imposed by the rules of state and 
local air agencies in the surrounding areas.
---------------------------------------------------------------------------

    \53\ See 78 FR 17836 (March 22, 2013).
---------------------------------------------------------------------------

    This proposed U&O FIP specific to the U&O Reservation would reduce 
VOC emissions related to the formation of ozone, and it is needed to 
protect air quality on the U&O Reservation because exceedances of both 
the 2008 and the 2015 ozone NAAQS have occurred at air quality monitors 
on and around the Reservation. Portions of the Uinta Basin, including 
portions of the U&O Reservation, were designated by the EPA in 2018 as 
nonattainment for the 2015 ozone NAAQS. Further, there are no currently 
approved TIPs that apply to existing oil and natural gas sources on the 
U&O Reservation. Finally, the majority of these sources are not 
currently subject to federally required emissions controls, which is 
discussed further in Section IV.A.

G. Oil and Natural Gas Sector in the Uinta Basin

    The oil and natural gas sector in the Uinta Basin includes the 
extraction and production of oil and natural gas, as well as the 
processing, transmission, and distribution of natural gas. 
Specifically, for oil, the sector in the Uinta Basin includes all 
operations from the well to the transfer to an oil transmission 
pipeline or other means of transportation to a petroleum refinery. The 
petroleum refinery is not considered part of the oil and natural gas 
sector. Thus, with respect to crude oil, the oil and natural gas sector 
ends where crude oil enters an oil transmission pipeline or other means 
of transportation to a petroleum refinery. For natural gas, the sector 
includes all operations from the well to the final end user.
    The oil and natural gas sector in the Uinta Basin can generally be 
separated into four segments: (1) Oil and natural gas production; (2) 
natural gas processing; (3) natural gas transmission and storage; and 
(4) natural gas distribution. This proposed U&O FIP for oil and natural 
gas sources on the U&O Reservation focuses on existing, new, and 
modified sources in the first and second segments, oil and natural gas 
production and natural gas processing, because the existing minor 
sources in those segments cumulatively contribute the largest portion 
of VOC emissions from the oil and natural gas sector on the U&O 
Reservation. There are more than 6,700 individual oil and natural gas 
sources on the U&O Reservation operated by 28 distinct entities, the 
majority of which are well sites in the oil and natural gas production 
segment.\54\ As discussed earlier, the 2014 NEI shows that emissions 
from the production segment of the oil and natural gas sector were 
estimated to be the largest anthropogenic contributor of both VOC and 
NOX emissions in the Uinta Basin. Comparatively, the 
categories that include oil and natural gas storage and transfer and 
bulk gasoline terminals (segments 3 and 4), are reported in the 2014 
NEI as contributing less than one percent each of the total VOC and 
NOX emissions in

[[Page 3501]]

the Uinta Basin.\55\ Of the approximately 10,400 individual active oil 
and natural gas wells in the Uinta Basin, over 7,900 wells, or about 76 
percent, are on Indian country lands within the U&O Reservation.
---------------------------------------------------------------------------

    \54\ 2014 Uinta Basin Emissions Inventory. The inventory and 
supporting analysis of the data can be viewed in the docket for this 
NPRM (Docket ID No. EPA-R08-OAR-2015-0709), including a spreadsheet 
titled ``2014 UB EI summary data U&O FIP NPRM.xlsx.''
    \55\ Based on the NEI Source Type to Sector Crosswalk in the 
2014 NEI at https://gispub.epa.gov/neireport/2014/, accessed August 
16, 2019.
---------------------------------------------------------------------------

    The oil and natural gas production segment in the Uinta Basin 
includes wells and all related processes used in the extraction, 
production, recovery, lifting, stabilization, and separation or 
treatment of oil and/or natural gas (including condensate). Production 
components in the Uinta Basin may include wells and related casing 
head, tubing head, and ``Christmas tree'' piping, as well as pumps, 
compressors, heater treaters, separators, storage vessels, pneumatic 
devices, pneumatic pumps, and natural gas dehydrators. Production 
operations in the Uinta Basin also include the well drilling, 
completion, and workover processes, and include all the portable non-
self-propelled apparatuses associated with those operations. Production 
sites in the Uinta Basin include not only the sites where the wells 
themselves are located, but also centralized gas and liquid gathering 
sources where oil, condensate, produced water, and natural gas from 
several wells may be separated, stored, and treated. Production 
components in the Uinta Basin also include the smaller diameter, low-
to-medium-pressure gathering pipelines and related components that 
collect and transport the oil, natural gas, and other materials and 
wastes from the wells or well pads.
    The natural gas production segment in the Uinta Basin ends where 
the natural gas enters a natural gas processing plant. Where there is 
no processing plant, the natural gas production segment ends at the 
point where the natural gas enters the transmission segment for long-
line transport. The crude oil production segment in the Uinta Basin 
ends at the storage and load-out terminal, which is the point of 
custody transfer to an oil pipeline or for transport of the crude oil 
to a petroleum refinery via trucks or railcars.
    Each producing crude oil and natural gas field has its own unique 
properties. The composition of the crude oil and the natural gas as 
well as the reservoir characteristics are likely to be different across 
all reservoirs. The RIA for this rule provides a more detailed overview 
of the products and components of the oil and natural gas industry that 
are relevant to the activities in the Uinta Basin.\56\
---------------------------------------------------------------------------

    \56\ The RIA can be viewed in the docket for this rulemaking 
(Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

IV. Development of the Proposed Rule

    This proposed U&O FIP contains a common set of VOC emissions 
controls at new, modified and existing oil and natural gas sources on 
the U&O Reservation. We consulted existing federal CAA oil and natural 
gas sector standards to develop the VOC emissions control requirements 
of this proposed U&O FIP. To make VOC emissions control requirements 
across the Basin consistent, this proposed U&O FIP would go beyond the 
federal standards, in some cases, to regulate equipment and activities 
that are not regulated by those standards, but are regulated by the 
UDEQ, such as small, remote glycol dehydrators; low throughput storage 
tanks; tanker truck loading and unloading; and certain voluntarily 
operated control devices. Applicability of the proposed requirements, 
including for equipment and activities that are regulated by the 
federal standards, is also consistent with the applicability for 
equivalent equipment and activities regulated by the UDEQ.
    The streamlined construction authorization mechanism in the 
National O&NG FIP applies on the Indian country portions of the U&O 
Reservation that are part of the Uinta Basin Ozone Nonattainment Area, 
as a result of our recent action amending the National O&NG FIP, as 
previously mentioned. Such true minor sources are required to register 
and comply with the eight federal standards in the National O&NG FIP, 
as applicable, to meet the preconstruction permitting requirements of 
the Federal Indian Country Minor NSR Program. Compliance with the eight 
federal standards in the National O&NG FIP, as applicable, would not 
relieve the owners/operators from the other applicable VOC control 
requirements of this proposed U&O FIP, except that this proposed U&O 
FIP would exempt certain equipment and activities from it that are in 
compliance with the applicable federal standards for those equipment 
and activities that constitute the requirements of the National O&NG 
FIP.
    A detailed discussion of this proposed U&O FIP requirements is 
found in Section V. Summary of FIP Provisions.

A. Rationale for the Proposed Rule

    As discussed earlier, available information indicates that: (1) 
Winter ozone levels in the Uinta Basin are above the 2008 and 2015 
ozone NAAQS, posing a threat to human health, which has led to the 
designation of portions of the Uinta Basin, including portions of the 
U&O Reservation, as marginal nonattainment for the 2015 ozone NAAQS; 
(2) ozone production in the area is driven by a combination of unique 
meteorological conditions, the geography of the Basin, and significant 
local emissions of ozone precursors, primarily VOC emissions from 
existing oil and natural gas activity in the Basin, the majority of 
which occurs on the U&O Reservation; and (3) reductions in ozone levels 
in the Basin is most sensitive to reductions in VOC emissions, and 
relatively insensitive to reductions in NOX emissions. 
Further, the majority of those oil and natural gas sources are 
operating without any federally required emissions controls.\57\
---------------------------------------------------------------------------

    \57\ See Sections III.D. and III.E. for more detailed discussion 
of air quality problems and emissions information, respectively.
---------------------------------------------------------------------------

    To address these facts, in this proposed action we are determining 
that it is necessary and appropriate to promulgate this proposed U&O 
FIP to protect air quality on the U&O Reservation, under the authority 
provided at 40 CFR 49.11 and CAA sections 301(a) and 301(d)(4). This 
action includes: (1) Proposed federally enforceable VOC emissions 
control requirements for new, modified and existing oil and natural gas 
sources and (2) a proposed requirement to apply the requirements of the 
National O&NG FIP to new and modified true minor oil and natural gas 
sources seeking to locate or expand on the Indian country portions of 
the U&O Reservation that are part of the Uinta Basin Ozone 
Nonattainment Area, including its streamlined construction 
authorization mechanism. If the second part of today's action is 
finalized as proposed, the EPA in a separate rulemaking plans to 
propose withdrawing its recent rulemaking \58\ amending the National 
O&NG FIP to extend its construction authorization mechanism for new and 
modified true minor oil and natural gas sources to the Indian country 
lands within the U&O Reservation that are included in the Uinta Basin 
Ozone Nonattainment Area because it will no longer be necessary.
---------------------------------------------------------------------------

    \58\ See 84 FR 21240 (May 14, 2019).
---------------------------------------------------------------------------

    Together, the oil and natural gas source controls of this proposed 
U&O FIP, the construction authorization mechanism of this proposed U&O 
FIP and the amended National O&NG FIP will:
    1. Improve air quality by reducing VOC emissions, thereby reducing 
ozone,

[[Page 3502]]

HAP, and PM2.5 levels and protecting public health;
    2. Ensure a consistent regulatory environment across the basin, 
thereby providing certainty to industry and avoiding the imposition of 
economic burdens on the Ute Indian Tribe or residents of the 
Reservation; and
    3. Support permanent, continued development of the Basin's oil and 
natural gas resources through a streamlined construction authorization 
mechanism.
    This proposed U&O FIP's VOC emission control requirements will 
apply to existing, new, and modified oil and natural gas production and 
natural gas processing sources on the U&O Reservation, whether major or 
minor.\59\
---------------------------------------------------------------------------

    \59\ The control requirements could apply to major oil and 
natural gas sources because they may include uncontrolled emissions 
units identical to those at minor sources. And while the major 
sources have presumably been, or would be, at least partly subject 
to controls through existing EPA standards and permitting 
requirements, they could still include individual emissions units 
for which control requirements are not applicable. Therefore, we 
have determined that it is appropriate to apply the proposed VOC 
control requirements of this rule to major oil and natural gas 
sources as well as minor oil and natural gas sources.
---------------------------------------------------------------------------

    We have previously informed the public of our intent to undertake 
this action, as noted earlier, in the preamble to the National O&NG 
FIP: ``For the Uintah and Ouray Reservation, we have sufficient 
concerns about the air quality impacts from existing sources that we 
plan to propose a separate reservation-specific FIP.'' \60\ The EPA 
remains concerned that there is a need for air quality protection on 
the U&O Reservation. Implementation of the proposed rule is intended to 
improve air quality, on the U&O Reservation specifically and the Uinta 
Basin generally, and thereby to protect public health and help return 
the area to attainment.
---------------------------------------------------------------------------

    \60\ See 81 FR 35944, 35963 (June 3, 2016).
---------------------------------------------------------------------------

B. Uinta Basin Air Quality Solutions: Stakeholder Feedback

    Consistent with the federal government's trust responsibility and 
to improve our understanding of the potential environmental 
implications of oil and natural gas production operations, the EPA has 
consulted (and will continue to consult) with the Ute Indian Tribe on 
this proposed U&O FIP. We appreciate the importance of oil and natural 
gas activity for the economic vitality of the U&O Reservation, as 
expressed to us by the Tribe during our government-to-government 
consultations.
    We have held numerous consultations with the Ute Indian Tribe and 
participated in numerous tribally-convened stakeholder and other 
meetings, in 2015, 2016, 2017, 2018 and 2019. We have also reached out 
to stakeholders in 2015 and will continue to do so as follows: (1) Oil 
and natural gas operators and representatives; (2) environmental 
groups; (3) Federal Land Managers; and (4) local county officials. 
These consultations and meetings addressed, at least in part, the issue 
that has prompted this rulemaking, i.e., the need expressed by the Ute 
Indian Tribe and others for continued streamlined authorizations to 
construct to continue to be available on the U&O Reservation as part of 
the Uinta Basin Ozone Nonattainment Area. For a complete list of these 
consultations and meetings, including dates, locations and attendees, 
please consult the docket to this rulemaking.\61\
---------------------------------------------------------------------------

    \61\ ``Meetings and Consultations Held with the Ute Indian Tribe 
Concerning at Least Partly the Uintah and Ouray Indian Reservation 
Federal Implementation Plan and the National Oil and Natural Gas 
Federal Implementation Plan for Indian Country,'' March 1, 2019, 
Docket No. EPA-R08-OAR-2015-0709, available at https://www.regulations.gov.
---------------------------------------------------------------------------

    The purpose of the government-to-government consultations were to 
receive tribal comments and concerns. The purposes of the EPA, Tribe, 
and UDEQ meetings were to discuss our intent to address ozone issues in 
the Uinta Basin and to solicit input on potential solutions to the 
region's air quality problem, while ensuring continued resource 
development. We strive to provide greater regulatory certainty and 
consistency across the Uinta Basin in the regulation of these 
operations through enhanced data collection and analysis, improved 
information sharing and partnerships, and focused compliance assistance 
and enforcement. The EPA is committed to working closely with the Tribe 
and the state of Utah during this process.

C. Ensuring Streamlined Construction Authorizations on the U&O 
Reservation

    The EPA is committed to achieving our primary objective of 
improving air quality on the U&O Reservation in a manner that also 
ensures that streamlined construction authorizations on the U&O 
Reservation may proceed effectively and efficiently. Accordingly, we 
have separately amended the National O&NG FIP to extend its 
construction authorization mechanism to apply to new or modified true 
minor oil and natural gas sources on the Indian country portions of the 
U&O Reservation that are part of the Uinta Basin Ozone Nonattainment 
Area, because the National O&NG FIP ceased to apply upon the effective 
date of the nonattainment designation (August 3, 2018). The National 
O&NG FIP, as originally promulgated, covered attainment, unclassifiable 
and attainment/unclassifiable areas. New and modified true minor oil 
and natural gas sources constructing in such areas are eligible for 
coverage under the National O&NG FIP. Since the National O&NG FIP did 
not apply in nonattainment areas, the streamlined construction 
authorization mechanism for new and modified true minor oil and natural 
gas sources was not available after August 3, 1018 for sources locating 
on Indian country portions of the U&O Reservation that are part of the 
Uinta Basin Ozone Nonattainment Area. Our recent action amending the 
National O&NG FIP addressed the issue by permanently re-instating the 
streamlined construction authorizations. However, we are also in this 
action proposing to apply the National O&NG FIP (without alteration) to 
new and modified true minor sources in the oil and natural gas 
production and natural gas processing segments of the oil and natural 
gas sector that propose to locate or expand on Indian country lands 
within the U&O Reservation that are part of the Uinta Basin Ozone 
Nonattainment area. While it may seem unnecessary to propose a 
streamlined construction authorization mechanism in this action when 
one is already in place permanently, we are doing so to ensure that the 
requirements (or at least reference to them) for oil and natural gas 
sources on the Indian country portions of the U&O Reservation that are 
part of the Uinta Basin Ozone Nonattainment Area are in one place in 
the CFR. We intend to follow up this rule when final with a proposal to 
withdraw the amendments to the National O&NG FIP. In Section V.E. 
below, we explain specifically what parts of the CFR will be affected 
by today's proposed rule and the subsequent proposed rule withdrawal.
    Upon the effective date of the nonattainment designation (August 3, 
2018), the EPA was required to issue site-specific permits to true 
minor oil and natural gas sources. The Ute Indian Tribe and various 
industry representatives expressed concern that the EPA might not be 
able to keep pace with the demand for site-specific oil and natural 
gas-related permits on the U&O Reservation given all that is involved 
with approving and issuing a site-specific permit. There was concern 
that a lag in permit issuance could place sources in Indian country at 
a competitive disadvantage compared to

[[Page 3503]]

similar sources located in UDEQ-regulated areas, where minor sources 
have expedited permitting options available. Extending the National 
O&NG FIP's permitting approach to the portions of the U&O Reservation 
designated nonattainment, among other benefits, avoided any such 
inequity.
    There is, however, an important consideration to extending the 
National O&NG FIP to the U&O Reservation portion of the Uinta Basin 
Ozone Nonattainment Area. Specifically, this proposed U&O FIP would 
reduce ozone-forming emissions from existing, new, and modified oil and 
natural gas sources, in order to ensure that new and modified true 
minor source growth can occur in the area while protecting air quality. 
To accomplish those reductions, we are proposing the control 
requirements described later in Section V.

D. Developing the Proposed Control Requirements

    Our objectives in developing proposed requirements to control VOC 
emissions from existing, new, and modified oil and natural gas sources 
on the U&O Reservation are to address the Basin's degraded air quality, 
to provide regulatory consistency across the Uinta Basin, and to allow 
for continued growth of oil and natural gas resources on the U&O 
Reservation. To ensure that the regulatory requirements would be the 
same as or comparable on balance across the Uinta Basin, we focused on 
using UDEQ regulations and preconstruction permitting requirements 
being implemented by the UDEQ for new, modified and existing oil and 
natural gas sources within the Uinta Basin to identify appropriate 
requirements for controlling VOC emissions from the prominent oil and 
natural gas emissions sources in the Basin. We consulted existing 
federal preconstruction permitting and oil and natural gas sector 
regulations for common emissions sources and determined that to meet 
our objectives for this rulemaking, it is necessary to propose 
requirements that are additional to what is required of new and 
modified sources in existing federal requirements. Extending the 
National O&NG FIP to the U&O Reservation will ensure an efficient and 
protective construction authorization mechanism for new and modified 
true minor sources. The combination of extending the National O&NG FIP 
to the U&O reservation and promulgating the control requirements in 
this proposed U&O FIP will reduce ozone-forming emissions from new, and 
modified and existing oil and natural gas sources. To accomplish those 
reductions, we are proposing the control requirements described in 
Section V.
1. Determination of VOC-Producing Equipment/Activities To Regulate
    To develop these requirements, we analyzed data submitted by the 
owners/operators of existing sources under the 2014 Uinta Basin 
Emissions Inventory. We used this information to determine the 
equipment and operations that generate the largest portion of VOC 
emissions from these sources. The inventory shows that 81 percent of 
VOC emissions from existing oil and natural gas sources in the Uinta 
Basin occur on Indian country lands within the U&O Reservation. The 
highest VOC emissions from existing oil and natural gas sources in the 
Uinta Basin come from (top 6 in order of highest to lowest): \62\ (1) 
Wastewater ponds; (2) fugitive emissions; (3) pneumatic pumps; (4) 
crude oil and condensate storage tanks; (5) pneumatic controllers; and 
(6) glycol dehydrators. As noted earlier in Section III.D., we conclude 
that winter ozone formation in the Basin is more sensitive to changes 
in VOC emissions than changes in NOX emissions. Therefore, 
we expect that reducing VOC emissions from these emissions sources will 
result in lower ozone levels in the Uinta Basin.
---------------------------------------------------------------------------

    \62\ These six sources represent 93 percent of oil and natural 
VOC emissions on the U&O Reservation.
---------------------------------------------------------------------------

2. Evaluation of Federal Oil and Natural Gas and Permitting-Related 
Requirements
    We do not expect that many of the existing oil and natural gas 
sources on the U&O Reservation, most of which are minor sources, are 
currently subject to federal VOC emissions control requirements under 
the CAA, including the New Source Performance Standards (NSPS) for the 
Oil and Natural Gas Sector at 40 CFR part 60, subpart OOOO (NSPS OOOO), 
and subpart OOOOa (NSPS OOOOa),\63\ the National Emissions Standards 
for Hazardous Air Pollutants (NESHAP) for Oil and Production Facilities 
at 40 CFR part 63, subpart HH (NESHAP HH),\64\ the Prevention of 
Significant Deterioration (PSD) Permit Program at 40 CFR part 52, and 
the Federal Indian Country Minor NSR Permit Program at 40 CFR part 
49,\65\ because they do not meet the respective applicability criteria. 
As we assembled a set of requirements for this proposed U&O FIP, we 
considered CAA regulatory requirements in place for oil and natural gas 
sources nationwide, in the Uinta Basin on the Indian country lands 
within the U&O Reservation and on lands regulated by the UDEQ.
---------------------------------------------------------------------------

    \63\ NSPS OOOO was originally published in the Federal Register 
on August 16, 2012 at 77 FR 49490, with revisions on September 23, 
2013, July 17, 2014, December 31, 2014, and July 31, 2015. 
Additional revisions, including the addition of subpart OOOOa, were 
signed final by the Administrator on April 28, 2016. Information on 
these rulemakings is available at https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry, accessed August 19, 
2019.
    \64\ National Emission Standards for Hazardous Air Pollutants: 
Oil and Natural Gas Production and Natural Gas Transmission and 
Storage, originally published in the Federal Register on June 17, 
1999 at 64 FR 32609, and revised on June 29, 2001 (66 FR 34548), 
January 3, 2007 (72 FR 26), and August 16, 2012 (77 FR 49490). 
Information on these rulemakings is available at: https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry 
and https://www.epa.gov/stationary-sources-air-pollution/clean-air-act-standards-and-guidelines-oil-and-natural-gas-industry, accessed 
August 16, 2019.
    \65\ Review of New Sources and Modifications in Indian Country, 
published in the Federal Register on July 1, 2011 (76 FR 38748), 
available at http://www.gpo.gov/fdsys/pkg/FR-2011-07-01/pdf/2011-14981.pdf, accessed August 19, 2019 (Federal Indian Country Minor 
NSR Program). Program includes the ``Federal Implementation Plan for 
True Minor Sources in Indian Country in the Oil and Natural Gas 
Production and Natural Gas Processing Segments of the Oil and 
Natural Gas Sector; Amendments to the Federal Minor New Source 
Review Program in Indian Country to Address Requirements for True 
Minor Sources in the Oil and Natural Gas Sector,'' Final Rule, U.S. 
Environmental Protection Agency, Signed April 28, 2016 and available 
at https://www.epa.gov/tribal-air/oil-and-natural-gas-sources-federal-implementation-plan-rule-indian-country, accessed August 16, 
2019 (Indian Country Oil and Natural Gas True Minor Source FIP).
---------------------------------------------------------------------------

    VOC emissions at existing major oil and natural gas sources on the 
U&O Reservation (far fewer in number than minor sources) should be 
controlled through federal emissions control requirements under the 
CAA, including the EPA's major source preconstruction permitting 
program in Indian country; the synthetic minor permit provisions of the 
Federal Indian Country Minor NSR rule; the NSPS OOOO or OOOOa; and 
other EPA emissions standards in place for the oil and natural gas 
sector.
    We do acknowledge, however, that there may be individual emissions 
units or processes at such major sources that are uncontrolled because 
they are not subject to any emissions control requirements in a major 
source permit and/or are not otherwise subject to a federal emissions 
standard. For example, such units or processes may not be subject to 
the EPA regulation because they do not meet the applicability criteria 
in any NSPS or NESHAP.\66\ Another example concerns oil and natural gas 
wastewater disposal facilities that rely on evaporation from ponds. The 
2014 Uinta Basin Emissions Inventory shows that these types of

[[Page 3504]]

wastewater disposal facilities are the largest source of VOC emissions 
at existing oil and natural gas operations on Indian country lands 
within the U&O Reservation, emitting approximately 33 percent of the 
VOC emissions for these areas.\67\ The majority of the VOC emissions 
from these types of wastewater disposal facilities occur upstream of 
the evaporation ponds, where wastewater is received and handled before 
being discharged to the evaporation ponds--namely from vaults and skim 
ponds, and to a lesser extent, from onsite storage tanks. The inventory 
also indicates that certain individual wastewater disposal facilities 
on Indian country lands within the U&O Reservation are estimated to 
emit VOC emissions at major source levels (i.e., greater than 100 tpy). 
While emissions from storage tanks at certain wastewater disposal 
facilities may be considered point sources, the evaporation emissions 
from vaults, skim ponds and evaporation ponds could be considered 
fugitive and the oil and natural gas sector is not one of the industry 
source categories listed in major source preconstruction permitting 
programs that are required to include fugitive emissions when 
determining whether or not the source is major.\68\ Fugitive emissions 
may, however, be considered when determining whether or not a source is 
major for HAP, which requires compliance with the Title V Operating 
Permit Program requirements and may require compliance with NESHAP 
requirements. The NESHAP for Offsite Waste and Recovery Operations at 
40 CFR part 63, subpart DD, imposes control requirements on certain 
wastewater disposal facilities, but these existing facilities on the 
Indian country lands within the U&O Reservation may not meet any of the 
very specific applicability criteria in subpart DD.\69\
---------------------------------------------------------------------------

    \66\ EPA has several NESHAP and NSPS in place that regulate 
equipment and processes at oil and natural gas sources.
    \67\ 2014 Uinta Basin Emissions Inventory. The inventory and 
supporting analysis can be viewed in the docket for this NPRM 
(Docket ID No. EPA-R08-OAR-2015-0709), Microsoft Excel spreadsheet 
titled ``2014 UB EI summary data_U&O FIP NPRM.''
    \68\ See 40 CFR 52.21(b)(1)(iii).
    \69\ See the NESHAP for Offsite Waste and Recovery Operations at 
40 CFR part 63, subpart DD. The NESHAP applies to sources that meet 
ALL of the following criteria: (1) Meet the definition of a 
``centralized waste treatment'' facility (CWT); (2) are a major HAP 
source; (3) discharge effluent subject to CWA section 402 or 307(b) 
permitting; AND (4) treatment of wastewater is the predominant 
activity at the CWT.
---------------------------------------------------------------------------

    In contrast to existing major sources, most existing minor oil and 
natural gas sources on the U&O Reservation are uncontrolled, although 
some may be subject to NSPS OOOO or OOOOa. For example, the 2014 Uinta 
Basin Emissions Inventory indicates that only 15 percent of the oil and 
natural gas sources present in 2014 on Indian country lands within the 
U&O Reservation were reported to be operating VOC emissions control 
devices on their storage tanks, a significant source of oil and natural 
gas VOC emissions. NSPS OOOO and OOOOa only apply to sources 
constructed after the relative applicability dates and that meet the 
other applicability criteria. Storage tanks at sources associated with 
oil and natural gas production wells that began production after the 
effective dates of NSPS OOOO or OOOOa may have low enough VOC emissions 
that owners/operators are not required to control VOC emissions from 
storage vessels.
    In addition, some VOC emissions that are also HAP from certain 
emissions units at existing minor sources, such as glycol dehydrators 
and storage tanks with the potential for flash emissions, may be 
regulated under the NESHAP for Oil and Natural Gas Production 
Facilities at 40 CFR part 63, subpart HH (NESHAP HH).\70\ However, the 
NESHAP does not require emission controls for lower-emitting glycol 
dehydrators or storage tanks with throughputs below a certain level on 
rural and remote Indian country lands within the U&O Reservation 
because the units would not meet subpart HH's urban-based glycol 
dehydrator applicability criteria or tank throughput applicability 
threshold. The 2014 inventory, which indicates that 99 percent of the 
glycol dehydrators operated at oil and natural gas sources on the 
Indian country lands within the U&O Reservation are reported as 
uncontrolled,\71\ supports the conclusion that most glycol dehydrators 
on the U&O Reservation may not be subject to NESHAP HH. Therefore, 
using the applicability criteria of relevant EPA regulations and 
analyzing available emissions and other data, allows the EPA to 
conclude that the majority of existing oil and natural gas minor 
sources on the U&O Reservation have not been controlled under the CAA's 
programs.
---------------------------------------------------------------------------

    \70\ National Emission Standards for Hazardous Air Pollutants: 
Oil and Natural Gas Production and Natural Gas Transmission and 
Storage, originally published at See 64 FR 32609 (June 17, 1999), 
and revised at See 66 FR 34548 (June 29, 2001), See 72 FR 26 
(January 3, 2007), and See 77 FR 49490 (August 16, 2012). 
Information on these rulemakings is available at: https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry 
and https://www.epa.gov/stationary-sources-air-pollution/clean-air-act-standards-and-guidelines-oil-and-natural-gas-industry, accessed 
August 16, 2019.
    \71\ 2014 Uinta Basin Emissions Inventory. The inventory and 
supporting analysis can be viewed in the docket for this rule 
(Docket ID No. EPA-R08-OAR-2015-0709), Microsoft Excel spreadsheet 
titled ``2014 UB EI summary data_U&O FIP NPRM''.
---------------------------------------------------------------------------

    Further, the federal preconstruction minor source permitting 
requirements in the Federal Indian Country Minor NSR rule did not start 
to impose requirements on new and modified true minor oil and natural 
gas sources until after October 3, 2016. Through application of the 
Federal Indian Country Minor NSR rule, new and modified true minor oil 
and natural gas sources constructed before October 3, 2016, were 
required only to register as existing sources, with no additional 
emissions limits or operational requirements. As of December 2014,\72\ 
operators of 5,169 existing minor oil and natural gas sources on the 
U&O Reservation had registered under the rule as existing sources.\73\ 
This number is 77 percent of the 6,739 total existing oil and natural 
gas sources on the Indian country lands within the U&O Reservation), 
according to the 2014 Uinta Basin Emissions Inventory. The 6,739 oil 
and natural gas sources are in turn 79% of the total number of reported 
oil and natural gas sources in the Uinta Basin.\74\ Therefore, the 
majority of the existing minor sources are not controlled under 
existing CAA requirements.
---------------------------------------------------------------------------

    \72\ The Minor Source Registration Data used was a snapshot in 
time for the purposes of consistent analyses, though we note that we 
have continued to receive new registrations for existing, new, and 
modified true minor sources since that date, the overwhelming 
majority of which have been for oil and natural gas sources.
    \73\ New and modified true minor oil and natural gas sources 
constructed on or after October 3, 2016, must meet the requirements 
of the Federal Indian Country Minor NSR rule (unless the source 
obtains a site-specific permit) by registering under the Indian 
Country True Minor Oil and Natural Gas Source FIP, which contains 
requirements to comply with a set of NSPS and NESHAP requirements, 
as applicable, for various oil and natural gas activities.
    \74\ 2014 Uinta Basin Emissions Inventory. The inventory and 
supporting analysis can be viewed in the docket for this NPRM 
(Docket ID No. EPA-R08-OAR-2015-0709), Microsoft Excel spreadsheet 
titled ``2014 UB EI summary data_U&O FIP NPRM''.
---------------------------------------------------------------------------

3. Evaluation of State Oil and Natural Gas and Permitting-Related 
Requirements
    The federal CAA regulation of existing oil and natural gas 
operations on the Indian country lands within the U&O Reservation 
contrasts with UDEQ's regulation of existing oil and natural gas 
operations on non-Indian-country lands in the Uinta Basin. As discussed 
in Section III.E., higher percentages of existing tanks and glycol 
dehydrators are controlled in UDEQ-regulated areas than on the U&O 
Reservation. In areas within the Uinta Basin that are under the UDEQ's 
CAA jurisdiction, owners/operators of new and modified minor oil

[[Page 3505]]

and natural gas operations are subject to the preconstruction 
permitting requirements in Utah's federally enforceable rules for 
permitting of new and modified sources (Utah Permit Requirements).\75\ 
These requirements are triggered whenever uncontrolled actual emissions 
are greater than or equal to the minor source preconstruction 
permitting thresholds of five tpy per pollutant regulated under the 
Federal Indian Country Minor NSR rule (NSR-regulated pollutant). Utah 
has had a minor new source review program (preconstruction permits) in 
place since November 1969. The five tpy VOC threshold was implemented 
in 1997 to clarify which minor sources should be permitted. Before 
1997, there was no size threshold, and any minor source was required to 
obtain a permit. The permits are called Approval Orders, which identify 
site-specific requirements, or General Approval Orders (GAO), which 
identify a standard set of requirements for similar sources. There is a 
GAO available for new and modified crude oil and natural gas well sites 
and tank batteries. These two types of orders require installation, 
operation, and maintenance of the best available control technologies 
for minor sources. What constitutes best available control technologies 
for oil and natural gas sources changes over time as new technologies 
and practices are introduced and become readily available and 
economically feasible. Based on the requirements in issued site-
specific approval orders, the UDEQ most recently considered minor 
source Best Available Control Technology (BACT) for controlling VOC 
emissions from oil and natural gas operations to include: (1) Capture 
of emissions from crude oil, condensate and produced water storage 
tanks (working, standing, breathing, and flashing losses), glycol 
dehydrator still vents, and pneumatic pumps, if combined source-wide 
VOC emissions from that equipment are greater than or equal to 4 tpy; 
and (2) routing all of those emissions either (1) to a process unit 
where the emissions are recycled or incorporated into a product (e.g., 
a sales gathering line); or (2) to an operational combustor with a 
minimum VOC control efficiency of 98.0 percent and operated with no 
visible emissions. For sources required to control emissions from crude 
oil, condensate and produced water storage tanks, glycol dehydrator 
still vents, and pneumatic pumps, the UDEQ issued approval orders also 
require: (1) At least annual onsite inspections of fugitive emission 
components using either EPA Method 21 \76\ or an optical gas imaging 
instrument, and (2) repair of all identified leaking components.
---------------------------------------------------------------------------

    \75\ Utah Administrative Code Chapter R307-401 (Permits: New and 
Modified Sources), available at https://rules.utah.gov/publicat/code/r307/r307-401.htm, accessed August 21, 2019; See 40 CFR part 
52, subpart TT.
    \76\ The docket for this NPRM (Docket ID No. EPA-R08-OAR-2015-
0709) contains several examples of UDEQ site-specific minor source 
NSR permits (aka approval orders) for Crude Oil and Natural Gas Well 
Sites and/or Tank Batteries (DAQE-AN151010001-15, DAQE-AN149250001-
14, and DAQE-AN143640003-15), as well as an approval for coverage 
under the GAO for a Crude Oil and Natural Gas Well Site and/or Tank 
Battery (DAQE-MN149250001-14). LDAR inspection frequency ranges from 
annual to quarterly.
---------------------------------------------------------------------------

    As mentioned earlier, the UDEQ has adopted and made effective 
revisions to the existing Utah Permit Requirements that include a 
permit by rule. The permit by rule replaces the requirement for certain 
minor oil and natural gas sources \77\ to obtain an approval order. 
Those minor oil and natural gas sources are required to register with 
the UDEQ and to comply with a suite of existing revised and additional 
new oil and natural gas requirements source requirements (Utah Oil and 
Gas Rules) \78\ in lieu of obtaining a site-specific approval order or 
approval under the GAO. The Utah Oil and Gas Rules are consistent with 
the minor source BACT that was previously required under the site-
specific Approval Orders and GAO, with some exceptions. The adopted new 
requirements include: (1) At well sites and centralized tank batteries 
with site-wide throughput greater than or equal to 8,000 barrels (bbl) 
of crude oil or 2,000 bbl of condensate on a 12-month rolling basis 
from the collection of storage vessels, a requirement to either route 
all VOC emissions to a process unit to be recycled, incorporated into a 
product and/or recovered, or to a VOC control device (including 
associated monitoring and recordkeeping); \79\ (2) at well sites and 
centralized tank batteries where storage vessel controls are required, 
a requirement to capture and control VOC emissions during truck loading 
and unloading operations; (3) at well sites and centralized tank 
batteries with combined VOC emissions from dehydrators and the 
collection of storage vessels greater than or equal to 4 tpy, a 
requirement to either route all VOC emissions from dehydrators to a 
process unit to be recycled, incorporated into a product, and/or 
recovered, or to a VOC control device (including associated monitoring 
and recordkeeping); (4) at each well site or centralized tank battery 
that is required to control storage vessel and/or dehydrator VOC 
emissions, a requirement to implement a leak detection and repair 
(LDAR) program that includes semiannual onsite monitoring of each 
fugitive emissions component (with exceptions for difficult or unsafe 
to monitor components) using optical gas imaging (OGI) or EPA Method 21 
at 40 CFR part 60, Appendix A; (5) at oil well sites, a requirement to 
manage associated gas from a completed oil well by either routing it to 
a process unit for combustion, routing it to a sales pipeline, or 
routing it to a VOC control device, except for emergency release 
situations; \80\ and (6) for natural gas-fired engines at new or 
modified well sites or centralized tank batteries after January 1, 
2016, requirement compliance upon installation or modification with the 
Standards of Performance for Stationary Spark Ignition Internal 
Combustion Engines at 40 CFR part 60, subpart JJJJ. All storage vessels 
and dehydrators located at a well site are exempt from the control 
requirements, if combined VOC emissions are demonstrated to be less 
than four tpy of uncontrolled emissions on a rolling 12-month basis. 
Additionally, sources that are subject to issued site-specific approval 
orders or approval for coverage under the GAO are exempt from the 
permit by rule and new Utah Oil and Gas Rules. The UDEQ also adopted a 
new requirement that oil and natural gas sources with emissions of NSR-
regulated pollutants greater than or equal to 1 tpy are to submit an

[[Page 3506]]

emissions inventory every 3rd year, beginning with calendar year 2017.
---------------------------------------------------------------------------

    \77\ The permit by rule applies to well sites, as defined in 40 
CFR 60.5430a, including centralized tank batteries, and exempts 
sources that have already been issued approval orders. New and 
modified minor compressor stations are still required to obtain an 
approval order.
    \78\ Utah Administrative Code Chapter R307-500 Series (Oil and 
Gas), available at https://rules.utah.gov/publicat/code/r307/r307.htm, accessed August 21, 2019. These rules are state-only rules 
and the UDEQ has not submitted them to the EPA for approval in the 
Utah SIP.
    \79\ The EPA submitted comments on the UDEQ's proposed action on 
November 14, 2017, in which we questioned the use of 8,000 barrels 
of crude oil per year as a surrogate for four tpy of VOC. The UDEQ 
responded to those comments in the package it submitted to the Air 
Quality Board for recommended adoption of the proposal. The UDEQ 
revised the proposal to add the applicability threshold of 2,000 bbl 
of condensate. The comments and UDEQ's responses are available in 
the docket for this proposed rule (Docket ID No. EPA-R08-OAR-2015-
0709).
    \80\ This is a requirement the EPA recently became aware is 
specified in individual Approval Orders for oil well sites, which 
was not previously apparent in the example approval orders we 
reviewed. On January 3, 2019, the Utah Air Quality Board approved an 
additional rule in the Utah Administrative Code Chapter R307-500 
Series (Oil and Gas) at R307-511 to manage associated gas from a 
completed oil well by either routing it to a process unit for 
combustion, routing it to a sales pipeline, or routing it to a VOC 
control device, except for emergency release situations.
---------------------------------------------------------------------------

    Additionally, owners/operators of all existing, new, and modified 
oil and natural gas sources are subject to certain requirements in the 
Utah Oil and Gas Rules that apply regardless of emissions levels. These 
regulations impose: (1) Basic operational requirements for all existing 
pneumatic controllers (must be low or no bleed), existing flares (must 
be equipped with an automatic ignition device), and tanker truck 
loading and unloading (must use bottom filling or submerged fill pipe), 
regardless of source-wide emissions; and (2) general duty provisions to 
operate all process and control equipment in a manner consistent with 
good air pollution control practices.
    As a result of Utah's oil and natural gas regulations and 
permitting programs, the UDEQ has mechanisms available through which it 
requires owners/operators of existing, new, and modified oil and 
natural gas sources in its jurisdiction to implement legally and 
practicably enforceable control requirements that reduce VOC emissions 
beyond what is required by applicable federal standards and permit 
programs, protecting air quality and providing regulatory certainty to 
owners/operators of oil and natural gas operations. As discussed 
earlier in this section, no equivalent federal regulatory counterpart 
to these requirements is currently available that applies to the 
existing minor oil and natural gas sources on the U&O Reservation.
    As discussed earlier, oil and natural gas wastewater disposal 
facilities that reply on evaporation constitute approximately 33 
percent of the VOC emissions in the Uinta Basin. The UDEQ is permitting 
new and modified wastewater disposal facilities that rely on 
evaporation through site-specific Approval Orders \81\ that: Require 
monthly water sampling from the first discharge point of wastewater to 
open air used to estimate emissions; (2) place limits on VOC and HAP 
concentrations in that discharge point; and (3) require that limits on 
wastewater throughput, or controls on the pretreatment, be in place 
before the discharge. The permits for such wastewater disposal 
facilities have been requested by the operators and issued by the UDEQ 
to establish the sources as synthetic minor HAP sources to avoid major 
HAP source status, which would require the sources to obtain an 
operating permit under Title V of the CAA. Other oil and natural gas-
producing states regulate wastewater disposal facilities that rely on 
evaporation through minor NSR permits as well. All of the wastewater 
disposal facilities the EPA has identified that are within Indian 
country on the U&O Reservation existed before the requirement to obtain 
a preconstruction permit under the Federal Indian Country Minor NSR 
Rule was effective. The federal NSR regulations at 40 CFR 52.21 (major 
sources) and 40 CFR 49.153 specify that sources in the oil and natural 
gas sector are not required to account for fugitive emissions when 
determining applicability to permitting requirements.\82\ Such 
wastewater disposal facilities rarely have non-fugitive emissions 
units, which means they are typically considered true minor sources 
with respect to NSR. However, fugitive HAP emissions must be considered 
when determining whether a source is a major HAP source under the 
NESHAP at 40 CFR part 60, and, therefore, subject to the permitting 
requirements of the Title V Operating Permit Program at 40 CFR part 
71.\83\ We are looking into whether the existing wastewater disposal 
sources on the U&O Reservation may be subject to operating permit 
requirements and whether the operators may be interested in obtaining 
permits to establish synthetic minor sources with respect to Title V. 
Such a path would currently be the only authority for the EPA to 
control emissions from these sources on the U&O Reservation.
---------------------------------------------------------------------------

    \81\ The UDEQ issues these site-specific permits to establish 
synthetic minor sources of HAP emissions using the authority in Rule 
R307-401. Permit: New and Modified Sources. R307-401-8 (1) The 
director will issue an approval order if the following conditions 
have been met: (a) The degree of pollution control for emissions, to 
include fugitive emissions and fugitive dust, is at least best 
available control technology.
    \82\ See definition of major stationary source at 40 CFR 
52.21(b)(1)(i)(c)(iii), definition of true minor source at 40 CFR 
49.152, and Applicability at 49.153(a)(1)(i)(B).
    \83\ See 40 CFR 63.2 definition of fugitive emissions.
---------------------------------------------------------------------------

    The EPA is not proposing to require emissions reductions at such 
wastewater disposal facilities on Indian country in this action. We are 
interested in information from operators of existing wastewater 
disposal facilities on the U&O Reservation that rely on evaporation to 
better understand and characterize emissions from such sources, and the 
particular processes being used, in order to determine the CAA 
permitting requirements that may apply.\84\ However, we currently lack 
sufficient information on the efficacy and cost-effectiveness of the 
various wastewater management and control technologies to determine 
cost-effective emission control requirements that could be applied 
broadly on the U&O Reservation. We are seeking comment on whether to 
regulate wastewater disposal facility emissions in a possible future 
amendment to a U&O FIP. We are also soliciting input regarding feasible 
and cost-effective options for reducing emissions from the handling of 
wastewater generated in the course of oil and gas production, including 
information on technologies for treatment and reuse in oil and natural 
gas production operations or other applications.
---------------------------------------------------------------------------

    \84\ Information we are interested in obtaining, so as to 
improve our understanding of these existing facilities on the U&O 
Reservation, includes quarterly sampling and analysis of oilfield 
wastewater processed through facilities over a one-year period at 
specific locations in the process at each facility and following 
specific sampling protocols and analysis methods.
---------------------------------------------------------------------------

    Regarding the UDEQ's recently adopted requirements for management 
of associated gas from oil well sites in their permit-by-rule, the rule 
was approved after we drafted and evaluated the emissions reductions 
and costs of this proposed U&O FIP proposed provisions; therefore, we 
are not proposing equivalent requirements for associated gas at this 
time. We intend to evaluate and consider incorporating equivalent 
associated gas requirements in a final U&O FIP.
4. Developing a Consistent Set of VOC Emissions Requirements
    As discussed earlier, to avoid disproportionately burdening sources 
seeking to develop oil and natural gas resources on the U&O 
Reservation, in this proposed U&O FIP we seek to establish VOC 
emissions control requirements consistent with those applicable to 
sources off the U&O Reservation. We determined that UDEQ requirements 
for oil and natural gas sources in the Uinta Basin are the most 
relevant requirements with which to seek consistency for new, modified 
and existing oil and natural gas equipment and activities. We also 
reviewed other state oil and natural gas-related regulations for areas 
in the region that are like the Uinta Basin in terms of industrial 
operations, characteristic meteorology, and air quality concerns. 
Specifically, we reviewed state-only rules and guidance from the 
Wyoming Department of Environmental Quality (WDEQ) \85\ that apply 
statewide to oil and natural gas sources, and those that

[[Page 3507]]

apply in the Upper Green River Basin ozone nonattainment area and the 
requirements of the Colorado Department of Public Health and 
Environment (CDPHE) \86\ that apply statewide to oil and natural gas 
sources, and those that apply in the Denver Metro and North Front Range 
ozone nonattainment area. The Upper Green River Basin ozone 
nonattainment area and the Denver Metro and North Front Range ozone 
nonattainment area are two areas that have experienced ozone issues 
like those in the Uinta Basin where oil and natural gas activities have 
contributed to ozone nonattainment and have been addressed through 
state and local rules that apply to the same emission units covered by 
this proposed rule.
---------------------------------------------------------------------------

    \85\ ``Oil and Gas Production Facilities, Chapter 6, Section 2 
Permitting Guidance,'' WDEQ (available at http://deq.wyoming.gov/aqd/new-source-review/resources/guidance-documents, accessed August 
19, 2019); Wyoming Nonattainment Area Regulations, Chapter 8, 
section 6; 020-020-008 Wyo. Code R. Sec.  6 (2016).
    \86\ Statewide Controls for Oil and Gas Operations and Natural 
Gas-Fired Reciprocating Internal Combustion Engines, 5 Code Colo. 
Regs. Sec.  1001-9 (2016).
---------------------------------------------------------------------------

    In reviewing these other state regulations, we considered whether 
the technologies are being commonly used and required at oil and 
natural gas sources in other states, so as to ensure that this proposed 
U&O FIP requirements are legally and practicably enforceable, as well 
as reasonably achievable. Based on this review, we developed 
requirements in this proposed U&O FIP reflecting the most relevant 
aspects of Utah-implemented rules and permit requirements applicable to 
new, modified and existing oil and natural gas sources in the Uinta 
Basin. However, the proposed rule's requirements are also like 
Colorado's and Wyoming's requirements for crude oil, condensate, and 
produced water storage tanks; glycol dehydrators; pneumatic pumps; 
closed-vent systems; enclosed combustors and utility flares; pneumatic 
controllers; tank truck loading and unloading; and fugitive emissions 
detection and repair.
    In summary, a primary objective of this proposed U&O FIP is to 
protect air quality on the U&O Reservation. We are seeking to do so in 
a manner that achieves the same or consistent proposed requirements 
with the UDEQ's requirements for new, modified and existing sources, 
including for certain equipment or activities that the EPA does not 
regulate under its standards but which the UDEQ does regulate at 
existing sources. These are equipment and activities that we have 
identified as significant sources of VOC emissions on the U&O 
Reservation. For those equipment or activities, we are proposing 
requirements for existing sources that are the same as or consistent 
with the UDEQ's established requirements for existing sources. In 
addition, as needed, we have consulted the EPA's standards for new and 
modified oil and natural gas sources, where we are proposing to 
regulate the same equipment at existing sources that is regulated 
nationally at new and modified sources. Overall, this approach, for 
many requirements in this proposed U&O FIP, meets our goal of 
regulatory consistency across the Uinta Basin. In addition, we must 
follow the minimum criteria in 40 CFR part 51, the CAA, and the TAR for 
approval of rules in either a SIP or a TIP,\87\ which include adequate 
monitoring, recordkeeping and reporting requirements to ensure the 
requirements are federally enforceable as a practical matter. The RIA 
for this proposal contains a detailed comparison of the proposed rule 
requirements to the relevant state requirements reviewed.
---------------------------------------------------------------------------

    \87\ EPA has used the planning requirements applicable to states 
as a guide in developing this proposed U&O FIP.
---------------------------------------------------------------------------

    Included in the docket for this rulemaking are copies of the UDEQ 
rules and other state and federal rules that we considered in this 
process, as well as an RIA containing a discussion comparing the 
requirements of those rules to the requirements in this proposed U&O 
FIP.
5. Consideration of Non-CAA Oil and Natural Gas Requirements
    During development of this proposed U&O FIP requirements, we were 
mindful that some oil and natural gas sources that will be subject to 
the requirements of this proposed U&O FIP, if finalized as proposed, 
may also be subject to requirements of the Department of Interior's 
Bureau of Land Management (BLM) recent rule covering production of oil 
and natural gas on federal and Indian lands.\88\ The final rule, 
hereinafter referred to as the ``2018 BLM Venting and Flaring Rule,'' 
revised a 2016 rule,\89\ hereinafter referred to as the ``2016 BLM 
Venting and Flaring Rule,'' in a manner that reduced compliance 
burdens, reinstated interpretations of existing statutory authorities, 
and re-established longstanding requirements that had been replaced by 
the 2016 BLM Venting and Flaring Rule. We have reviewed the 2018 BLM 
Venting and Flaring Rule \90\ and considered potentially overlapping 
requirements in development of this proposed U&O FIP. The final 2018 
BLM Venting and Flaring Rule contains a general requirement that 
operators flare, rather than vent, gas that is not captured, requires 
persons conducting manual well purging to remain onsite in order to end 
the venting event as soon as practical, and clarifies what does and 
does not constitute an emergency for the purposes of royalty 
assessment. The 2018 BLM Venting and Flaring Rule removed in their 
entirety the following requirements from the 2016 BLM Venting and 
Flaring Rule: Waste minimization plans; well drilling and completion 
requirements; pneumatic controller and diaphragm pump requirements; 
storage vessel requirements; and LDAR requirements. The 2018 BLM 
Venting and Flaring Rule modified and/or replaced the following 
requirements from the 2016 BLM Venting and Flaring Rule: Gas-capture 
requirement--the BLM now defers to State or Tribal regulations in 
determining when the flaring of associated gas from oil wells will be 
royalty-free; downhole well maintenance and liquids unloading 
requirements; and measuring and reporting volumes of gas vented and 
flared.
---------------------------------------------------------------------------

    \88\ See 83 FR 49184 (September 28, 2018). Department of the 
Interior, BLM, Final Rule, ``Waste Prevention, Production Subject to 
Royalties, and Resource Conservation; Rescission or Revision of 
Certain Requirements,'' (hereinafter ``2018 BLM Venting and Flaring 
Rule'').
    \89\ See 81 FR 83008 (November 18, 2016). Department of the 
Interior, BLM, Final Rule, ``Waste Prevention, Production Subject to 
Royalties, and Resource Conservation'' (hereinafter, ``2016 BLM 
Venting and Flaring Rule'').
    \90\ The RIA contains additional details on our review of BLM's 
rules and is available in the docket for this rule (Docket ID No. 
EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    Since the 2018 BLM Venting and Flaring Rule removed requirements on 
existing activities and equipment, such as storage tanks, pneumatic 
pumps, pneumatic controllers, and LDAR, we do not expect the proposed 
FIP will overlap with the BLM rule. However, we note that if a final 
U&O FIP is promulgated that includes requirements for managing 
associated gas, as intended, we would expect that final FIP would 
overlap with the 2018 BLM Venting and Flaring Rule. Specifically, we 
would expect that oil and natural gas sources on the U&O Reservation 
would face some overlapping requirements if the sources are also 
subject to federal or Indian onshore oil and natural gas leases, or to 
leases and business agreements entered into by the Tribe. There would 
be no overlap for oil and natural gas sources on the U&O Reservation 
that are not subject to federal or Indian onshore oil and gas leases or 
tribal leases and business agreements--EPA's proposed FIP would apply 
and BLM's rule would not. Because some facilities that will be subject 
to a final U&O FIP may also be

[[Page 3508]]

subject to this BLM rule, we will consider the requirements of the BLM 
rule in developing the final FIP. While our goal will be to avoid 
conflicts between the EPA requirements and BLM requirements, it is 
important to recognize that the EPA and the BLM are each operating 
under different statutory authorities and mandates in developing their 
rules. We expect sources subject to and in compliance with the control 
requirements in this proposed U&O FIP, that are also subject to the BLM 
Venting and Flaring Rule, will be able to demonstrate compliance with 
BLM's rule by demonstrating compliance with this proposed U&O FIP, as 
both were developed by consulting other applicable federal 
requirements.

E. Effect on Determining Site-Specific Permitting Requirements

    As explained in Section IV.C., this rule is being proposed in 
combination with a separate action amending the National O&NG FIP to 
extend its construction authorization mechanism to apply on Indian 
country lands within the U&O Reservation that are included in the Uinta 
Basin Ozone Nonattainment Area until such time that this proposed U&O 
FIP is finalized. The National O&NG FIP provides an alternative 
compliance option for the requirement in the Federal Indian Country 
Minor NSR rule for new and modified true minor oil and natural gas 
sources to obtain a site-specific nonattainment permit before 
construction. Sources covered by the streamlined construction 
authorizations in the amended National O&NG FIP would not be subject 
to, or exempt from, other federal CAA permitting requirements, such as 
the Title V Operating Permit Program at 40 CFR part 71 or this proposed 
U&O FIP. Sources complying with the amended O&NG FIP will be able to 
take into account any VOC emission reductions from any required 
controls under this proposed U&O FIP when calculating their PTE for 
determining applicability of the particular permitting requirements to 
new, modified and existing sources. Some sources' PTE for VOC, or any 
other regulated NSR and/or Title V pollutant, may exceed the 
applicability thresholds for PSD, Federal Indian Country Minor NSR 
rule, or Title V permitting requirements even after complying with this 
proposed rule (when finalized). In such cases, the owners or operators 
of these sources will be required to apply for and obtain appropriate 
permits before construction.

F. Evaluation of Emissions Impacts of the Proposed Rule

    The EPA has reviewed and quantified the estimated emissions impacts 
from the emissions control measures proposed in this proposed U&O FIP 
using the 2014 Uinta Basin Emission Inventory. We expect that the VOC 
reductions achieved by this proposed U&O FIP will be beneficial for 
reducing ambient ozone and HAP levels and the severity of any 
exceedances of the 8-hour ozone NAAQS that may occur at any time of the 
year. We are proposing a requirement for owners/operators to submit 
emissions inventories on a triennial basis and will monitor changes in 
the inventory along with monitoring ozone concentrations. Supporting 
air quality information is discussed in the RIA for this rule.\91\
---------------------------------------------------------------------------

    \91\ The RIA includes a more detailed explanation of the air 
quality impacts of the proposed rule. It can be found in the docket 
for this rule (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    In our existing source emissions data review, we have determined 
that a proposed requirement to at least a 95.0 percent VOC control 
efficiency continuously for emissions from existing storage tanks, 
glycol dehydrators and pneumatic pumps, and a proposed fugitive 
emissions monitoring program at existing oil and natural gas sources, 
will result in a reduction of VOC emissions of approximately 20,000 
tpy. This number represents a 28 percent reduction of oil and natural 
gas-related VOC emissions on the U&O Reservation (relative to the total 
oil and natural gas-related VOC emissions for the Uinta Basin of more 
than 71,000 tpy per the 2014 Uinta Basin Emissions Inventory). In 
addition, this proposed U&O FIP represents an overall 26 percent 
reduction in total oil and natural gas sector VOC emissions relative to 
the inventory for the entire Uinta Basin. Relative to the 2014 NEI, the 
proposed VOC reductions represent a 15 percent reduction in total VOC 
emissions for all source sectors for the Basin, but a 25 percent 
reduction during winter (excluding biogenic sources--see Section III.E) 
for the Basin.
    The EPA estimates that the proposed rule will result in a reduction 
of approximately 2,200 tpy of HAP and 59,000 tpy of methane as ``co-
benefits,'' \92\ as the emission reduction requirements to reduce VOC 
emissions also reduce HAP and methane concentrations in the gases 
routed to them at proportional rates, and in some cases conserve that 
gas stream for market rather than burn it in a control device. 
Estimates of how much gas would be conserved are discussed later in 
Section IV.G. and in the RIA.
---------------------------------------------------------------------------

    \92\ The RIA includes a more detailed explanation of the air 
quality and climate benefits of the proposed rule. It can be found 
in the docket for this rule (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    The use of combustors or flares to control VOC emissions generates 
associated, unintended emissions of NOX and CO as part of 
the combustion process. The EPA estimates that there would be an 
associated increase of 93 tpy of NOX and 427 tpy of CO from 
the use of combustion devices.\93\ When these emissions are distributed 
across the sources that would be required to install a combustion 
device, the emissions per source are very low. The estimated emissions 
per source for both pollutants are substantially lower than the 10 tpy 
threshold that triggers the requirement for minor sources to obtain a 
permit under the Federal Indian Country Minor NSR rule.\94\ Therefore, 
we are not concerned that the increases in NOX and CO 
emissions would adversely impact the NO2 or CO NAAQS.
---------------------------------------------------------------------------

    \93\ The RIA includes a more detailed explanation of the air 
quality impacts of the proposed rule. It can be found in the docket 
for this rule (Docket ID No. EPA-R08-OAR-2015-0709).
    \94\ The RIA, accessible in the docket for this rulemaking 
(Docket ID No. EPA-R08-OAR-2015-0709), contains additional 
discussion regarding NOX and CO emissions resulting from 
combustion in relation to the NO2 and CO NAAQS.
---------------------------------------------------------------------------

G. Costs and Benefits of the Proposed Rule

    To estimate the total cost of the proposed rule, as well as dollar-
per-ton VOC control cost effectiveness, the EPA relied on existing cost 
analyses completed to support the 2015 NSPS OOOO revisions and NSPS 
OOOOa,\95\ and the 2012 Colorado Regulation 7.\96\ To estimate the 
number of sources and equipment impacted by this proposed U&O FIP, the 
EPA relied on the 2014 Uinta Basin Emissions Inventory. An operator's 
existing fleet of sources, site-specific conditions, and existing 
control equipment will affect the annual cost impact on a given 
operator and is expected to be variable. Additionally, the strategies 
and controls required by this proposed U&O FIP will result in the 
recovery and sale of gas that would otherwise be vented to the 
atmosphere. These savings are included in the cost

[[Page 3509]]

analysis and will increase the cost effectiveness of the rule. The 
complete cost analysis by the EPA to support this proposed U&O FIP is 
included in the RIA for this rule.\97\
---------------------------------------------------------------------------

    \95\ RIA of the Proposed Emission Standards for New and Modified 
Sources in the Oil and Natural Gas Sector, Docket ID No. EPA-HQ-OAR-
2010-0505, accessible at http://www.regulations.gov or https://www3.epa.gov/ttnecas1/regdata/RIAs/egughgnspsproposalria0326.pdf, 
accessed August 19, 2019.
    \96\ Final Economic Impact Analysis per Sec.  25-7-110.5(4), 
C.R.S. For Proposed revisions to Colorado Air Quality Control 
Commission Regulation Number 7 (5 CCR 1001-9), January 30, 2014, 
available in the docket for this rulemaking (Docket ID No. EPA-R08-
OAR-2015-0709).
    \97\ The RIA, accessible in the docket for this rulemaking 
includes a more detailed explanation of costs and benefits (Docket 
ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    Based on the 2014 Uinta Basin Emissions Inventory, 2,524 of the 
estimated 6,739 total existing sources on Indian country lands within 
the U&O Reservation are likely to be impacted at least in part by the 
requirements in this rulemaking for existing sources. A breakdown of 
the estimated number of sources impacted by this proposed U&O FIP and 
how they are affected is presented in Table 2.
---------------------------------------------------------------------------

    \98\ This is the count of the total number of high-bleed 
pneumatic controllers in the 2014 Uinta Basin Emissions Inventory, 
which is what the total annualized cost to retrofit to low-bleed 
controllers is based on. We elected to not determine how the 
controllers are distributed across the sources on the U&O 
Reservation, because it was not necessary for calculating costs.

           Table 2--Existing Sources Affected by Proposed Rule
------------------------------------------------------------------------
      Proposed rule requirement:           Estimated sources affected
------------------------------------------------------------------------
Add a combustor to comply with FIP...  2,064.
Retrofit existing flare with auto      460.
 igniter to comply with FIP.
Conduct LDAR at well sites to comply   2,079.
 with FIP.
Conduct LDAR at compressor stations    8.
 to comply.
Retrofit existing high-bleed           1,503 units.\98\
 pneumatic controllers to low-bleed
 (1,503 units) to comply with FIP.
Comply with one or more requirements   2,524.
 of the rule.
------------------------------------------------------------------------

    Using the EPA and Colorado control cost estimates, the EPA 
estimates the total capital cost of this proposed U&O FIP will be $280 
million (incurred during the first three years of compliance, 2019-
2021) and the total annualized engineering costs of implementing all of 
the controls outlined in this proposed U&O FIP is estimated to be $68 
million in 2021 \99\ when using a 7 percent discount rate and $60 
million when using a 3 percent discount rate.\100\ All costs and 
benefits are in 2016 US dollars unless stated otherwise. Revenues from 
additional recovered natural gas are estimated at $3.5 million in 2021, 
assuming a wellhead natural gas price of $4.00 per thousand cubic feet, 
as the EPA estimates that approximately 885 million cubic feet of 
natural gas will be recovered in 2021 by implementing this proposed U&O 
FIP. When estimated revenues from additional natural gas recovery are 
included, the annualized engineering costs of this proposed U&O FIP are 
estimated to be $64 million in 2021 when using a 7 percent discount 
rate and $56 million when using a 3 percent discount rate.
---------------------------------------------------------------------------

    \99\ This estimate includes the costs of necessary recordkeeping 
and reporting for compliance with the proposed requirements. It is 
expected that maximum cost impacts to industry will occur during the 
first calendar year of full compliance following the effective date 
of the rule and will decrease in future years. Assuming the final 
rule is promulgated and effective by the end of 2018, full 
compliance under this proposed U&O FIP would be required by 2021 in 
the worst-case scenario, taking into account the maximum extension 
of the compliance deadline that the EPA anticipates might be granted 
with sufficient justification from an operator. Therefore, the cost 
year analyzed was 2021 for this proposed U&O FIP. The RIA, 
accessible in the docket for this rulemaking includes a more 
detailed explanation of benefits and costs (Docket ID No. EPA-R08-
OAR-2015-0709).
    \100\ Estimated costs are for retrofitting existing sources 
only. We did not calculate costs for new or modified sources, 
because we presumed those sources would be required to implement the 
proposed controls if they were required to obtain a site-specific 
permit, rather than the streamlined construction authorization 
mechanism of the amended National O&NG FIP that is being extended to 
the portions of the Uinta Basin Ozone Nonattainment Area that 
include Indian country within the U&O Reservation.
---------------------------------------------------------------------------

    As mentioned earlier, the total emissions reductions expected under 
the proposed control requirements for existing sources are estimated to 
be approximately 20,000 tpy \101\ of VOC: About 6,100 tpy from 
controlling emissions from storage tanks, about 3,400 tpy from 
controlling emissions from glycol dehydrators, and about 6,700 tpy from 
controlling emissions from pneumatic pumps. We assume that all 
emissions will be routed to a combustor that will be designed and 
operated to continuously to meet at least a 95.0 percent VOC control 
efficiency. For the remainder of the emission reductions, approximately 
1,400 tpy of VOC emissions are achieved by implementing an LDAR program 
and about 2,000 tpy of VOC emissions by retrofitting or replacing high-
bleed pneumatic controllers with low-bleed. It should be noted that the 
2014 Uinta Basin Emissions Inventory has not included a methodology to 
account for the phenomenon of ``super-emitters'' or fat-tail emission 
distribution that is typically a result of abnormal process conditions. 
Emissions resulting from this phenomenon are discussed in more detail 
later in Section V.F. Implementing an LDAR program would result in 
emissions reductions that include these emissions.
---------------------------------------------------------------------------

    \101\ The numbers do not sum to exactly 20,000 due to rounding. 
All values have been individually rounded to two significant 
figures.
---------------------------------------------------------------------------

    Using the total annualized cost of $68 million and applying a 7 
percent discount rate, the cost of control is estimated to be $3,400 
per ton of VOC reduced without accounting for product recovery savings. 
Using $64 million at a 7 percent discount rate, the control cost is 
estimated to be $3,300 per ton of VOC reduced when additional revenue 
from product recovery is included. Using the total annualized cost of 
$60 million at 3 percent discount rate, the cost of control is 
estimated to be $3,000 per ton of VOC reduced without accounting for 
product recovery savings; using $56 million at a 3 percent discount 
rate, it is estimated to be $2,900 per ton of VOC reduced.
    We predict that there will be ozone and PM2.5 health 
benefits from VOC reductions, as well as co-benefits for climate from 
methane reductions and co-benefits for human health and ozone from HAP 
reductions. These ``co-benefits'' would occur because the control 
techniques to meet the standards simultaneously reduce VOC, methane, 
and HAP emissions at proportional rates. As mentioned earlier, this 
proposed U&O FIP is anticipated to reduce 59,000 tons of methane and 
2,200 tons of HAP per year starting in the first year of full 
compliance (2021). The annual CO2-equivalent (CO2 
Eq.) methane emission reductions are estimated to be 1.3 million metric 
tons by 2021. These pollutants are associated with substantial health, 
welfare, and climate effects, which these emissions reductions will 
help mitigate. Climate-related benefits from methane emission

[[Page 3510]]

reductions are monetized using an interim estimate of the domestic 
social cost of methane, developed under Executive Order 13783.\102\ By 
2021, the annual domestic climate-related benefits of the proposed 
action are estimated to be $10 million using a 3 percent discount rate 
and $2.9 million using a 7 percent discount rate.\103\ The HAP reduced 
as a result of reducing VOC emissions come primarily from the 
reductions in glycol dehydrator emissions. Reduction of these HAP are 
particularly effective for two reasons: (1) Reduced exposure will 
result in air toxics-related health benefits; and (2) those HAP are 
highly reactive VOC that more readily form ozone, so reductions of 
those HAP are expected to proportionately have a greater influence on 
reducing ozone than reductions in other VOC. The specific control 
techniques for this proposed U&O FIP are anticipated to have minor 
emissions disbenefits (e.g., increases in emissions of NOX 
and CO related to combustion of VOC).
---------------------------------------------------------------------------

    \102\ See the RIA for more detailed information.
    \103\ The RIA, accessible in the docket for this rulemaking 
includes a more detailed explanation of the climate-related benefits 
(Docket ID No. EPA-R08-OAR-2015-0709)
---------------------------------------------------------------------------

    The RIA\104\ for the recently revised ozone NAAQS contains a 
detailed discussion of the current state of knowledge on the health 
benefits associated with reducing ambient levels of ozone air 
pollution. When we describe ozone health benefits, we generally group 
them in two categories: (1) Reduced incidence of premature mortality 
from exposure to ozone; and (2) reduced incidence of morbidity from 
exposure to ozone. Reductions in premature mortality can occur either 
as a result of reductions in short term exposures to ozone, which can 
benefit people of all ages, or as a result of reductions in lifetime 
exposures to ozone (age 30 to 99). Reduced morbidity from reduced 
exposure can occur through reduced: (1) Hospital admissions for 
respiratory reasons (age >65); (2) emergency department visits for 
asthma (all ages); (3) asthma exacerbation (age 6-18); (4) minor 
restricted-activity days (age 18-65); and (5) school absence days (age 
5-17).
---------------------------------------------------------------------------

    \104\ ``Regulatory Impact Analysis of the Final Revisions to the 
National Ambient Air Quality Standards for Ground-Level Ozone,'' 
U.S. Environmental Protection Agency, EPA-452/R-15-007, September 
2015, https://www.regulations.gov/document?D=EPA-HQ-OAR-2013-0169-0057, accessed August 16, 2019.
---------------------------------------------------------------------------

    We have not quantified the monetary benefits of the VOC emissions 
reductions in the proposed rule and are including only a qualitative 
discussion of the benefits of the expected reductions in ozone and 
PM2.5 levels, for the reasons in the following discussion. 
In other ozone-related rulemakings, when adequate data have been 
available, the EPA has quantified several health effects and monetized 
benefits of VOC reductions associated with exposure to ozone and 
PM2.5. Including only a qualitative discussion of benefits 
does not imply that these benefits do not exist, but merely that the 
agency does not have enough data to quantitatively support such a 
discussion. However, we expect that significant reductions in VOC 
emissions will result in corresponding reductions in ozone formation 
and the health and welfare effects associated with exposure to ozone.
    As explained previously, research studies have shown that ozone 
levels in the Uinta Basin are most significantly influenced by VOC 
emissions from the accumulation of existing minor oil and natural gas 
production operations. However, although we expect significant VOC 
emissions reductions, which will result in improvements in air quality 
and will reduce the health and welfare effects that are associated with 
exposure to ozone, fine particulate matter (PM2.5), and HAP, 
we have determined that the VOC-related health benefits cannot be 
quantified (and thus, monetized) for the elevated winter ozone observed 
in the Uinta Basin, because current modeling tools using the NEI are 
not sufficient to properly characterize ozone and PM2.5 
formation for these winter ozone episodes due to uncertainties in 
quantifying the local emissions from oil and gas operations. Existing 
air quality modeling and measurement studies specific to the Uinta 
Basin indicate that air quality models that use the 2011 NEI 
underestimate the monitored elevated winter VOC and ozone 
concentrations. Air quality model sensitivity simulations for the Uinta 
Basin have shown that models can reproduce monitored ozone levels when 
oil and gas emissions are increased to match monitored VOC levels; 
thus, it is believed that models using the 2011 NEI fail to simulate 
observed VOC and ozone levels because of ongoing uncertainties in 
quantifying the local emissions from oil and natural gas 
operations.\105\ But regardless of the quantitative uncertainties, we 
expect that reductions in ambient VOC emissions will result in 
reductions in winter ozone.\106\ Any reductions in ambient ozone levels 
in the Uinta Basin are expected to lead to reductions in related 
adverse public health and welfare effects associated with exposure to 
ozone and is expected to meaningfully aid in compliance with the ozone 
NAAQS for the Uinta Basin.\107\
---------------------------------------------------------------------------

    \105\ Matichuk, R., Tonnesen, G., Luecken, D., Gilliam, R., 
Napelenok, S.L., Baker, K.R., Schwede, D., Murphy, B., Helmig, D., 
Lyman, S.N., Roselle, S. (2017). Evaluation of the Community 
Multiscale Air Quality Model for simulating winter ozone formation 
in the Uinta Basin. Journal of Geophysical Research: Atmospheres, 
122, available in the docket for this rulemaking (Docket ID No. EPA-
R08-OAR-2015-0709). Like the Uinta Basin Ozone Studies discussed 
earlier, the EPA study found that modeled ozone was strongly 
sensitive to changes in VOC emissions, and that when oil and gas VOC 
emissions were increased sufficiently such that the model matched 
the measured VOC concentrations, the model also reproduced the 
observed peak ozone concentrations. For oil and natural gas sources 
in the Uinta Basin we are confident that the 2011 NEI underestimates 
VOC and HAP emissions. We are also confident that the 2014 NEI, 
though it was not used in the EPA study, underestimates VOC and HAP 
emissions. For this and other reasons that are discussed in more 
detail in the RIA, we are unable to conduct photochemical modeling 
to quantify the impacts of this rule's proposed VOC emissions 
reductions on winter ozone air quality in the Uinta Basin.
    \106\ The RIA includes a more detailed discussion of the 
expected air quality benefits and impacts (Docket ID No. EPA-R08-
OAR-2015-0709).
    \107\ The EPA discussed this position in detail when 
promulgating the NSPS OOOO revisions and NSPS OOOOa, as well as when 
promulgating the final revised ozone NAAQS, concluding that the 
available VOC benefit-per-ton estimates are not appropriate to 
calculate monetized benefits of those rules, even as a bounding 
exercise. The dockets for both proposed rulemakings are available at 
http://www.regulations.gov, Docket ID No. EPA-HQ-OAR-2010-0505-4776 
and Docket ID No. EPA-HQ-OAR-2008-0699-4458.
---------------------------------------------------------------------------

    To improve our ability to quantify these benefits in the future, 
work is in progress to enhance emissions inventories in the Basin using 
improved activity data, additional sources such as wastewater 
evaporation ponds, and updated estimates of speciation from storage 
tank emissions. Most recently, inventories were developed from operator 
supplied activity and emissions information for 2014 and 2017. 
Additionally, the EPA will continue to work with the Utah DAQ, the Ute 
Tribe, and industry to collect comprehensive oil and natural gas 
emissions inventories for the Uinta Basin. Future EPA work will focus 
on improving the emissions factors and speciation profiles used in the 
development of emissions inventories--efforts that will help improve 
air quality model performance.
    Considering all the quantified costs and benefits of this rule, 
including the revenues from recovered natural gas that would otherwise 
be vented, the quantified equivalent annualized costs (the difference 
between the monetized benefits and compliance costs) are estimated to 
be negative $39 million in 2021 using a 3 percent interest rate and

[[Page 3511]]

negative $46 million in 2021 using a 7 percent interest rate.\108\ In 
light of the many unquantified but real and meaningful benefits noted 
above, the actual equivalent annualized costs are expected to be much 
less. We cannot estimate these costs with any confidence.
---------------------------------------------------------------------------

    \108\ The RIA in the docket for this rulemaking discusses this 
calculation in detail.
---------------------------------------------------------------------------

    We are soliciting comment on all assumptions used to calculate 
costs and effectiveness of proposed control requirements, and benefits 
of the emissions reductions, all of which are detailed in the RIA and 
other supporting documentation available in the docket for this 
proposed U&O FIP.

V. Summary of FIP Provisions

    This proposed rule would apply to owners or operators of oil and 
natural gas sources that either produce oil and natural gas or process 
natural gas and that are located on Indian country lands within the U&O 
Reservation that meet the applicability criteria specified for each set 
of requirements.
    This proposed U&O FIP includes the following provisions:

49.4169 Introduction
49.4170 Delegation of authority of administration to the tribe
49.4171 General provisions
49.4172 Emissions Inventory
49.4173 Nonattainment Requirements for New or Modified True Minor Oil 
and Natural Gas Sources
49.4174 VOC emission control requirements for storage tanks
49.4175 VOC emission control requirements for dehydrators
49.4176 VOC emission control requirements for pneumatic pumps
49.4177 VOC emission control requirements for covers and closed-vent 
systems
49.4178 VOC emission control devices
49.4179 VOC emission control requirements for fugitive emissions
49.4180 VOC emission control requirements for Tank Truck Loading
49.4181 VOC emission control requirements for pneumatic controllers
49.4182 Other combustion devices
49.4183 Monitoring requirements
49.4184 Recordkeeping requirements
49.4185 Notification and reporting requirements

    We do not expect a substantial number of oil and natural gas 
sources subject to this proposed U&O FIP's requirements to also be 
subject to NSPS OOOO or OOOOa, or NESHAP HH. However, to alleviate some 
of the regulatory burden of this proposed U&O FIP, we are proposing 
that any equipment or activities affected by any requirement in this 
proposed U&O FIP that are subject to the substantive emissions control 
requirements in the EPA standards, as appropriate, will not be subject 
to this proposed U&O FIP's substantive emissions control requirements 
for such equipment and activities. As an example, given the proposed 
exemptions, as a practical matter, a new or modified oil and natural 
gas source on the U&O Reservation that has storage tanks, glycol 
dehydrators, pneumatic pumps and fugitive emissions components and the 
storage tanks, pneumatic pumps and fugitive emissions components are 
subject to the emissions control requirements of NSPS OOOOa, then that 
source would be subject to the substantive emissions control 
requirements for glycol dehydrators in the FIP, but not to the FIP's 
substantive emissions control requirements for storage tanks, pneumatic 
pumps or fugitive emissions components.

A. Introduction

    We are proposing in Sec.  49.4169 (Introduction) to specify: (1) 
The purpose of this proposed U&O FIP; (2) the general applicability to 
the provisions of this proposed U&O FIP; and (3) the compliance 
schedule for this proposed U&O FIP.
    We are proposing text that: (1) Establishes provisions for 
delegation of authority to allow the Ute Indian Tribe to assist the EPA 
with administration of this proposed U&O FIP in Sec.  49.4170; (2) 
establishes general provisions and definitions applicable to oil and 
natural gas sources in Sec.  49.4171; (3) establishes a requirement for 
oil and natural gas sources to submit emissions inventories on a 
triennial basis, beginning with an inventory for calendar year 2017 in 
Sec.  49.4172; (4) establishes in Sec.  49.4173 enforceable 
requirements to control emissions of VOC and other pollutants from new 
and modified true minor oil and natural gas sources in the oil and 
natural gas production and natural gas processing segments of the oil 
and natural gas sector that commence construction on or after the 
effective date of this proposed U&O FIP, unless the source obtains a 
site-specific construction permit, or is otherwise required to obtain a 
site-specific permit by the Reviewing Authority, in accordance with 40 
CFR 49.151 through 49.161; and (5) establishes in Sec. Sec.  49.4174 
through 49.4185, enforceable requirements to control and reduce VOC 
emissions from oil and natural gas well production and storage 
operations, natural gas processing, and gathering and boosting 
operations at oil and natural gas sources that are located on Indian 
country lands within the U&O Reservation.
    We may issue a final action based on this proposal as soon as the 
date of publication of a final U&O FIP. We believe that there may be 
``good cause,'' within the meaning of 5 U.S.C. 553(d)(3), to make the 
final rule effective as soon as it is published, if that is needed to 
ensure that this rule begins to provide emission reductions before the 
next winter ozone season. As discussed above in section II.D., winter 
ozone in the Uinta Basin is a serious public health problem, which this 
proposed rule is intended to help address.
    In addition, the reductions provided by this rule are an integral 
part of the Agency's strategy to address the air quality problem on the 
U&O Reservation while maintaining a permitting mechanism that allows 
appropriate continued oil and natural gas production. The primary other 
component of that strategy is a separate action to amend the National 
O&NG FIP to extend its geographic coverage to the Indian country 
portions of the U&O Reservation that are part of the Uinta Basin Ozone 
Nonattainment Area. Over the long term, we are relying on the VOC 
emissions reductions in this action to support this extension of the 
scope of the National O&NG FIP. Accordingly, if making this rule 
effective on publication is necessary to begin effecting VOC emission 
reductions before the next winter ozone season, then doing so will help 
ensure that the amendment to the National O&NG FIP is compatible with 
air quality improvement on the U&O Reservation.
    Accordingly, the EPA proposes to find that there is good cause to 
make the final action based on this proposal effective on the date of 
publication of the final rule. We invite comment on this proposed 
approach.
    We are proposing that compliance with the rule for oil and natural 
gas sources that commence construction on or after the effective date 
of the final rule would be required upon startup. Compliance for 
sources that are existing as of the effective date of the final rule 
would be required no later than 18 months after the effective date of 
the final rule. We concluded that it is important to allow owners/
operators of existing sources a reasonable period of time to conduct 
any necessary retrofit-related activities, such as (1) acquiring 
control devices, (2) conducting manufacturer-recommended testing to be 
compliant with the proposed

[[Page 3512]]

requirements, and (3) securing the necessary trained personnel to 
install compliant devices and associated piping and instrumentation. We 
expect that there will be about 2,100 existing oil and natural gas 
sources that may require equipment retrofit and installation of VOC 
emission control equipment (combustor controls) under the proposed 
rule. Additionally, we estimate that a total of approximately 1,500 
high-bleed pneumatic controllers will need to be retrofitted to low- or 
no-bleed. We have determined that providing 18 months from the 
effective date of the final rule to install retrofits at existing 
sources is a reasonable amount of time for efficient, cost-effective 
project planning that accounts for a level, sustained equipment and 
labor resource demand that can be supported by the vendor 
community.\109\
---------------------------------------------------------------------------

    \109\ We recognize that 18 months is a tighter compliance 
timeframe than is required in NESHAP regulations, which is typically 
3 years. The purpose of this proposed U&O FIP, though, is to address 
air quality in a timely fashion. Moreover, the proposal allows 
sources to request extensions of the compliance date beyond the 18 
months as needed.
---------------------------------------------------------------------------

    This assessment is supported by what we have learned about the time 
needed for sources in Utah-regulated areas to comply with Utah's 
requirements for oil and natural gas sources. In particular, we have 
been informed by UDEQ compliance staff that the majority of existing 
oil and natural gas sources that have been required to install VOC 
emission control retrofits in State of Utah jurisdictions have 
completed the required retrofits within 9 months of the effective dates 
of their minor source approval orders, ahead of the 18-month deadline 
in UDEQ approval orders for operators to notify the UDEQ of the status 
of retrofit construction.\110\ However, there are many more existing 
oil and natural gas sources on the U&O Reservation that would be 
required to install retrofits to control emissions from storage tanks, 
glycol dehydrators, and pneumatic pumps under this proposed U&O FIP 
than are estimated to be subject to equivalent requirements in UDEQ 
jurisdiction. The UDEQ estimates that approximately 1,600 existing 
sources have been required to control emissions from storage tanks, 
glycol dehydrator, and/or pneumatic pumps on non-Indian country lands 
in the Uinta Basin, while we estimate there are approximately 2,100 
sources on Indian country lands within the U&O Reservation that would 
be subject to such requirements in this proposed U&O FIP. Therefore, it 
is likely owners/operators may need longer than 9 months to complete 
the necessary retrofits to the greater number of Indian country 
sources. The 18-month compliance schedule in this proposed U&O FIP will 
allow time for operators to conduct the necessary retrofits, while at 
the same time starting to achieve VOC emissions reductions as soon as 
practicable, so that the reductions will have a timely, beneficial 
impact on air quality and human health and progress toward attaining 
the ozone NAAQS.
---------------------------------------------------------------------------

    \110\ Email correspondence with UDEQ staff regarding their 
source inventory and experiences regulating existing oil and natural 
gas sources in State of Utah jurisdiction is included in the docket 
for this rulemaking (Docket ID No. EPA-R08-OAR-2015-0709). UDEQ 
compliance staff target each new approval order for inspection 
within 18 months of the date it is issued. They document the status 
of construction at the time of inspection and note whether the 
permitted source has provided a notification of construction status, 
which is required within 18 months of the date the approval order is 
issued. UDEQ compliance staff have inspected hundreds of such 
existing oil and natural gas sources without observing any 
compliance issues with the 18-month notification requirement. While 
UDEQ compliance staff do not compile this information into any 
readily available summary format, details about the status of 
construction are included in the inspection report for each source.
---------------------------------------------------------------------------

    We are also proposing to allow an owner or operator to submit a 
written request to the EPA for an extension of the compliance deadline 
for existing sources, which must include a detailed explanation of the 
reason for the request. Any approval or denial of an extension request, 
including the length of any approved extension, will be based upon the 
merits of each case. Factors that the EPA will consider in deciding 
whether to grant an extension request under the proposed provision 
include the economic and technical feasibility of meeting this proposed 
U&O FIP's control requirements in the timeframe prescribed in it. We 
are seeking comment on the proposed compliance schedules, or 
alternative compliance schedules that may be more appropriate, 
including information that supports the proposed time period or a 
different time period, such as data on average times to acquire, 
install, and test or obtain manufacturer certification of compliant 
control devices.

B. Provisions for Delegation of Administration to the Tribe

    We are proposing in Sec.  49.4170 (Delegation of Authority of 
Administration to the Tribe) to establish the steps by which the Ute 
Indian Tribe may request delegation to assist us with the 
administration of this rule and the process by which the Regional 
Administrator of EPA Region 8 may delegate to the Ute Indian Tribe the 
authority to assist with such administration. As described in the 
regulatory provisions, any such delegation will be accomplished through 
a delegation of authority agreement between the Regional Administrator 
and the Tribe. This section would provide for administrative delegation 
of this federal rule and does not affect the eligibility criteria under 
CAA section 301(d) and 40 CFR 49.6 for TAS should the Ute Indian Tribe 
decide to seek such treatment for the purpose of administering their 
own EPA-approved TIP under tribal law. Administrative delegation is a 
separate process from TAS under the TAR. Under the TAR, Indian tribes 
seek the EPA's approval of their eligibility to implement CAA programs 
under their own laws. The Ute Indian Tribe will not need to seek TAS 
under the TAR for purposes of requesting to assist us with 
administration of this rule through a delegation of authority 
agreement. If delegation does occur, the rule would continue to operate 
under federal authority on Indian country lands within the U&O 
Reservation, and the Ute Indian Tribe would assist us with 
administration of the rule to the extent specified in the agreement.

C. General Provisions

    We are proposing in Sec.  49.4171 (General Provisions): (1) A 
requirement to design, operate, and maintain all equipment used for 
hydrocarbon liquid and gas collection, storage, processing, and 
handling operations covered under this rule, in a manner consistent 
with good air pollution control practices and that minimizes leakage of 
VOC emissions to the atmosphere; (2) definitions; (3) assurances that, 
in order to ensure compliance, we will maintain our authority to 
require testing, monitoring, recordkeeping, and reporting in addition 
to that already required by an applicable requirement in a permit to 
construct or permit to operate; and (4) assurance that nothing in the 
rule will preclude the use, including the exclusive use, of any 
credible evidence or information, relevant to whether a source would 
have been in compliance with applicable requirements if the appropriate 
performance or compliance test had been performed.

D. Emissions Inventory Requirements

    We are proposing in Sec.  49.4172 a requirement for owners/
operators of oil and natural gas sources with the potential to emit one 
or more NSR-regulated pollutants at levels greater than one tpy to 
submit an annual emissions inventory once every three years, that 
covers emissions from the previous calendar year, beginning with 
calendar year 2017. This requirement will suffice for the purpose of 
continued

[[Page 3513]]

updates to the comprehensive Uinta Basin oil and natural gas emissions 
inventory effort by the UDEQ, Ute Indian Tribe and the EPA. Owners/
operators will be required to submit actual emissions for each 
emissions unit at each oil and natural gas source covered by the 
requirement in a standard format specified by the Regional Office and 
available on our website by the effective date of the final rule. The 
format will be consistent with the format used by the UDEQ to collect 
information from sources outside of Indian country lands within the U&O 
Reservation.

E. Compliance With the National Indian Country Oil and Natural Gas 
Federal Implementation Plan for New and Modified True Minor Oil and 
Natural Gas Sources in the Uinta Basin Ozone Nonattainment Area

    From a regulatory standpoint, the effect of this action is to shift 
the requirement for compliance with the National O&NG FIP from one part 
of the CFR to another. Currently, new and modified true minor oil and 
natural gas sources proposing to locate or expand on Indian country 
lands within the U&O Reservation that are part of the Uinta Basin Ozone 
Nonattainment Area must comply with the National O&NG FIP, as a result 
of the recent action we took amending that FIP. The provisions of the 
National O&NG FIP that the recent action requires compliance with 
concern 40 CFR 49.101 through 49.105. This proposed action merely 
shifts these requirements located at 40 CFR part 49, subpart C, to 40 
CFR part 49, subpart K, as part of this proposed U&O FIP, for the 
reasons stated previously. Additionally, these sources are also subject 
to applicable requirements in the Federal Indian Country Minor NSR Rule 
also found in subpart C at 40 CFR 49.151 through 49.161, including the 
2-part registration requirement.
    In Sec.  49.4173 (Compliance with the National Indian Country Oil 
and Natural Gas Federal Implementation Plan for New and Modified True 
Minor Oil and Natural Gas Sources in the Uinta Basin Ozone 
Nonattainment Area), we are proposing that new and modified true minor 
oil and natural gas sources proposing to locate or expand on Indian 
country lands within the U&O Reservation that are part of the Uinta 
Basin Ozone Nonattainment Area continue to permanently comply with the 
National O&NG FIP (excluding Sec.  49.101(d), which indicates that the 
National O&NG FIP does not apply in nonattainment areas), unless the 
owner or operator of a source opts out of the National O&NG FIP's 
permitting approach or is otherwise required by the EPA to obtain a 
site-specific minor source permit according to the Federal Indian 
Country Minor NSR Program at 40 CFR part 49. For the purposes of this 
proposed rule, a new or modified true minor oil and natural gas source 
is one constructed or modified on or after the effective date of this 
proposed U&O FIP. This continued permanent application of the National 
O&NG FIP to the Indian country lands within the U&O Reservation that 
are included in the Uinta Basin Ozone Nonattainment Area covers only 
new and modified true minor oil and natural gas sources in the oil and 
natural gas production and natural gas processing segments of the oil 
and natural gas sector.
    Applying the requirements of the National O&NG FIP to the Uinta 
Basin Ozone Nonattainment Area fulfills the EPA's obligation under the 
Federal Indian Country Minor NSR rule to issue minor source NSR pre-
construction permits when combined with the existing source emissions 
reductions that would be required by this proposed U&O FIP. The EPA is 
seeking comment only on the proposal to continue to permanently apply 
the National O&NG FIP to sources on Indian country lands within the U&O 
Reservation that are part of the Uinta Basin Ozone Nonattainment Area; 
we are not re-proposing for comment the requirements of the National 
O&NG FIP.
    The National O&NG FIP provides an efficient and effective, 
alternative approach that fulfills the minor NSR permitting 
requirement, while also ensuring air quality protection through 
requirements that are unambiguous and legally and practicably 
enforceable. The National O&NG FIP approach is also transparent to the 
public; it is clear to the public what requirements apply. The National 
O&NG FIP reduces burden for sources and the Reviewing Authority and 
minimizes potential delays in new construction due to compliance with 
the minor NSR permitting obligation.
    Upon application of the National O&NG FIP to the Indian country 
lands within the U&O Reservation that are part of the Uinta Basin Ozone 
Nonattainment Area, new and modified true minor sources will have to 
address three sets of requirements.
    First, under the National O&NG FIP that applies to new and modified 
true minor sources on the Indian country portions of the U&O 
Reservation that are part of the Uinta Basin Ozone Nonattainment Area, 
compliance with eight federal standards is required for the following 
equipment in the oil and natural gas production and natural gas 
processing segments of the oil and natural gas sector: Compression 
ignition and spark ignition engines; process heaters; combustion 
turbines; fuel storage tanks; glycol dehydrators; completion of 
hydraulically fractured oil and natural gas wells; reciprocating and 
centrifugal compressors (except those at well sites); pneumatic 
controllers; pneumatic pumps; storage vessels; and fugitive emissions 
from well sites, compressor stations, and natural gas processing 
plants.
    Sources must comply with all of the provisions of the eight federal 
standards (unless a provision is specifically excluded), as applicable 
to oil and natural gas sources under each standard: (1) 40 CFR part 63, 
subpart DDDDD, National Emission Standards for Hazardous Air Pollutants 
for Major Sources: Industrial, Commercial, and Institutional Boilers 
and Process Heaters; (2) 40 CFR part 63, subpart ZZZZ, National 
Emissions Standards for Hazardous Air Pollutants for Stationary 
Reciprocating Internal Combustion Engines; (3) 40 CFR part 60, subpart 
IIII, Standards of Performance for Stationary Compression Ignition 
Internal Combustion Engines; (4) 40 CFR part 60, subpart JJJJ, 
Standards of Performance for Stationary Spark Ignition Internal 
Combustion Engines; (5) 40 CFR part 60, subpart Kb, Standards of 
Performance for Volatile Organic Liquid Storage Vessels (Including 
Petroleum Liquid Storage Vessels) for Which Construction, 
Reconstruction, or Modification Commenced After July 23, 1984; (6) 40 
CFR part 60, subpart OOOOa, Standards of Performance for Crude Oil and 
Natural Gas Facilities for which Construction, Modification, or 
Reconstruction Commenced after September 18, 2015; (7) 40 CFR part 63, 
subpart HH, National Emission Standards for Hazardous Air Pollutants 
from Oil and Natural Gas Production Facilities; and (8) 40 CFR part 60, 
subpart KKKK, Standards of Performance for New Stationary Combustion 
Turbines.
    Under the National O&NG FIP, true minor sources must comply with 
these standards, as they currently exist or as amended in the future, 
except for those provisions specifically excluded under the National 
O&NG FIP (and unless the source opts out of the FIP and obtains a site-
specific permit or is otherwise required to obtain a site-specific 
permit by the Reviewing Authority). New and modified sources subject to 
the National O&NG FIP would be subject to any future changes to the 
eight underlying EPA standards only if they undergo a future minor 
modification as a true minor source and would otherwise be subject to 
those future changes. To help

[[Page 3514]]

understand the requirements of the National O&NG FIP, you may wish to 
review the provisions for each of the eight federal rules (i.e., five 
NSPS and three NESHAP) identified in the National O&NG FIP. (The 
National O&NG FIP does not change the applicability of the specified 
standards, nor does it relieve sources subject to the standards from 
complying with them, independently of that FIP.)
    It is important to note that compliance with these eight standards 
in the National O&NG FIP would not relieve the owners/operators of oil 
and natural gas sources from the obligation to comply with the proposed 
requirements of Sec. Sec.  49.4169 through 49.4171 and 49.4174 through 
49.4185, as applicable. Those proposed U&O Reservation-specific 
requirements would apply to sources regardless of whether they are 
existing, new or modified. Because the proposed U&O Reservation-
specific requirements would exempt affected emissions units or 
activities that are subject to and controlled according to equivalent 
NSPS requirements, we expect that duplicative requirements will be 
avoided. Further we expect that the emissions reductions achieved from 
existing sources complying with those proposed U&O Reservation-specific 
requirements will provide justification for the proposed approval of 
new or modified true minor oil and natural gas sources on the U&O 
Reservation through the National O&NG FIP.
    Second, under the Indian Country Minor NSR rule (Sec.  49.160(c)), 
new and modified sources subject to the National O&NG FIP must satisfy 
the requirement for two-part registration by using the two registration 
forms provided by the EPA \111\ rather than a permit application (as 
mentioned earlier in Section IV.C). The registration forms contain the 
information required in Sec.  49.160(c)(2). True minor sources 
complying with the National O&NG FIP must submit the Part 1 
Registration Form, with the information required by Sec.  49.160(c)(2), 
at least 30 days before beginning construction. The Part 2 Registration 
Form must be submitted within 60 days after the ``startup of 
production'' as defined in Sec.  49.152(d). The source must determine 
the potential for emissions within 30 days after startup of production. 
The combination of the Part 1 and Part 2 Registration Forms submittal 
satisfies the requirements in Sec.  49.160(c)(2). The forms are 
submitted instead of the application form otherwise required in Sec.  
49.160(c)(1)(iii). After being reviewed by the permitting authority, 
completed registration forms will be available online on the 
appropriate EPA Regional Office website.
---------------------------------------------------------------------------

    \111\ The registration forms are available at: https://www.epa.gov/tribal-air/tribal-minor-new-source-review (accessed 
August 16, 2019) or from the EPA Regional Offices.
---------------------------------------------------------------------------

    Finally, under the National O&NG FIP, before beginning construction 
new and modified sources must document that potential impacts on 
threatened and endangered species and historic properties (collectively 
referred to as ``protected resources'') have been assessed. 40 CFR 
49.104. The section provides two options for documenting this 
assessment: (1) Submittal of documentation to the EPA Regional Office 
(and to the relevant tribe for the area where the source is located or 
locating) that a site-specific assessment conducted by another federal 
agency has been completed for the specific oil and natural gas 
activity, and that the owner/operator meets all air quality-related 
requirements as specified within all documents/approvals obtained 
through that assessment (these requirements are typically implemented 
and enforced as conditions of an approved Surface Use Plan of 
Operations and/or Application for Permit to Drill); \112\ or (2) 
submittal of documentation to the EPA Regional Office (and to the 
relevant tribe for the area where the source is located or locating) 
demonstrating that the source has completed the screening processes 
specified by the EPA for consideration of threatened and endangered 
species and historic properties and received a written determination 
from the EPA stating that it has satisfactorily completed these 
processes.\113\
---------------------------------------------------------------------------

    \112\ This assessment will typically be conducted through the 
National Environmental Policy Act process and result in either a 
Record of Decision or a Finding of No Significant Impact document.
    \113\ This process of source documentation submittal and the 
EPA's confirmation that it has satisfactorily completed the 
procedures must occur before the source submits its Part 1 
Registration Form pursuant to Sec.  49.160(c)(1)(iv). These 
processes are contained in ``Procedures to Address Threatened and 
Endangered Species and Historic Properties for the Federal 
Implementation Plan for Managing Air Emissions from True Minor 
Sources in Indian Country in the Oil and Natural Gas Production and 
Natural Gas Processing Segments of the Oil and Natural Gas Sector,'' 
available at https://www.epa.gov/tribal-air/tribal-minor-new-source-review.
---------------------------------------------------------------------------

    We are taking comment on this approach of shifting compliance with 
the National O&NG FIP for new and modified true minor oil and natural 
gas sources on the U&O Reservation portions of the Uinta Basin Ozone 
Nonattainment Area from 40 CFR part 49, subpart C to 40 CFR part 49, 
subpart K as part of this proposed U&O FIP, in addition to the proposed 
VOC emissions reduction requirements in the proposed U&O FIP.

F. VOC Emissions Control Requirements

    The discussion in this subsection details the proposed VOC 
emissions control requirements and how they compare to existing state 
and federal requirements for the equipment and activities listed in 
Table 3. The most notable difference between the proposed VOC emissions 
control requirements for this FIP and the Utah Oil and Gas Rules and 
Utah Permit Requirements is that the 4 tpy combined VOC emissions 
threshold requiring controls in the Utah permit by rule does not 
include pneumatic pump emissions. The reason for this difference is 
that we have identified that emissions from pneumatic pumps are a large 
source of VOC emissions on the U&O Reservation, but a negligible source 
of VOC emissions in the Utah jurisdiction in the Basin, because the 
majority of natural gas production occurs on the Reservation. This 
difference is explained in more detail later in this section.

[[Page 3515]]



  Table 3--Proposed VOC Emissions Control Requirements for New, Modified and Existing Oil and Natural Gas Sources Versus UDEQ and Federal \114\ Control
                                                                      Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     Proposed VOC emissions controls                       Utah oil and gas
-------------------------------------------------------------------------   rules and  Utah
                                                      Control efficiency        permit             NSPS OOOO          NSPS OOOOa           NESHAP HH
 Proposed requirements (section)     TPY threshold         (percent)         requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Storage Tank VOC Emission         Source-wide         See VOC emission    Issued Utah Permit  Control individual  Control individual  Control individual
 Control Requirements (49.4174).   uncontrolled VOC    control devices     Requirements        tanks with PTE      tanks with PTE      tanks with
                                   emissions from      later in this       (BACT for site-     >=6 tpy per tank    >=6 tpy per tank    potential for
                                   storage tanks,      table (49.4178).    specific &          constructed after   constructed after   flash emissions
                                   dehydrators and                         general approval    August 23, 2011     September 18,       and actual annual
                                   pneumatic pumps                         orders)--Same as    (alternatively no   2015                average
                                   >=4 tpy.                                proposed FIP.       control required    (alternatively no   hydrocarbon
                                  Or for storage                          Utah Oil and Gas     if uncontrolled     control required    liquid throughput
                                   tanks-only                              Rules--Control      VOC emissions       if uncontrolled     >=79,500 liters/
                                   sources,                                storage tanks if    maintained <4       VOC emissions       day.
                                   throughput of                           source throughput   tpy).               maintained <4
                                   8,000 barrels                           >=8,000 bbl crude                       tpy).
                                   (bbl) of crude                          oil or 2,000 bbl
                                   oil or 2,000 bbl                        condensate, on
                                   condensate on                           rolling 12-month
                                   rolling 12-month                        basis--unless <=4
                                   basis--unless <=4                       tpy source-wide
                                   tpy source-wide                         VOC from storage
                                   VOC from storage                        tanks (does not
                                   tanks.                                  include pneumatic
                                                                           pump emissions).
Dehydrators VOC Emission Control                      See VOC emission    Issued Utah Permit  Not covered.......  Not covered.......  Units at non-urban
 Requirements (49.4175).                               control devices     Requirements                                                area sources with
                                                       later in this       (BACT for site-                                             actual annual
                                                       table (49.4178).    specific &                                                  average flowrate
                                                                           general approval                                            of natural gas
                                                                           orders)--Same as                                            <85,000 standard
                                                                           proposed FIP.                                               m\3\/day not
                                                                          Utah Oil and Gas                                             covered--this is
                                                                           Rules--Control                                              majority of units
                                                                           dehydrators if                                              on U&O
                                                                           combined                                                    Reservation.
                                                                           emissions from
                                                                           dehydrators and
                                                                           storage tanks >=4
                                                                           tpy VOC (does not
                                                                           include pneumatic
                                                                           pump emissions).
Pneumatic Pumps VOC Emission                          See VOC emission    Issued Utah Permit  Not covered.......  For well sites,     Not covered.
 Control Requirements (49.4176).                       control devices     Requirements                            hook up to
                                                       later in this       (BACT for site-                         control device if
                                                       table (49.4178).    specific &                              already on site
                                                                           general approval                        and constructed
                                                                           orders)--Same as                        after September
                                                                           proposed FIP--.                         18, 2015.
                                                                          Utah Oil and Gas                        For natural gas
                                                                           Rules does not                          processing
                                                                           require control                         plants, zero
                                                                           of pneumatic pump                       natural gas
                                                                           emissions.                              emissions.
Covers and Closed-Vent System     Source-wide         100%..............  100% in issued      100 percent of      100 percent of      100 percent If
 VOC Emission Control              uncontrolled VOC                        Utah Permit         storage tank        storage tank        required to
 Requirements (49.4177).           emissions from                          Requirements and    emissions, if       emissions, if       control glycol
                                   storage tanks,                          Rules (BACT for     constructed after   constructed after   dehydrators and/
                                   dehydrators and                         site-specific &     August 23, 2011.    September 18,       or storage vessel
                                   pneumatic pumps                         general approval                        2015.               HAP emissions.
                                   >=4 tpy.                                orders).
                                  Or for storage                          Utah Oil and Gas
                                   tanks-only                              Rules--Like
                                   sources,                                proposed FIP
                                   throughput of                           (except Utah Oil
                                   8,000 bbl of                            and Gas Rules do
                                   crude oil or                            not include
                                   2,000 bbl                               pneumatic pump
                                   condensate on                           emissions).
                                   rolling 12-month
                                   basis--unless <=4
                                   tpy source-wide
                                   VOC from storage
                                   tanks.
VOC Emission Control Devices      Source-wide         95.0 percent        98.0 percent        95.0 percent        95.0 percent        If required to
 (49.4178).                        uncontrolled VOC    continuously.       continuous VOC      continuous VOC      continuous VOC      control glycol
                                   emissions from                          control             control             control             dehydrator or
                                   storage tanks,                          efficiency for      efficiency, for     efficiency, for     storage vessel
                                   dehydrators and                         Issued Utah         use on tanks with   use on tanks with   HAP emissions,
                                   pneumatic pumps                         Permit              PTE >=6 tpy per     PTE >=6 tpy per     must reduce HAP
                                   >=4 tpy.                                Requirements        tank if             tank, if            by 95.0 percent,
                                  Or for storage                           (BACT for site-     constructed after   constructed after   or maintain <20
                                   tanks-only                              specific &          August 23, 2011.    September 18,       ppmv or 1 tpy
                                   sources,                                general approval                        2015.               benzene.
                                   throughput of                           orders).
                                   8,000 bbl of                           Same as proposed
                                   crude oil or                            FIP for Utah Oil
                                   2,000 bbl                               and Gas Rules.
                                   condensate on
                                   rolling 12-month
                                   basis--unless <=4
                                   tpy source-wide
                                   VOC from storage
                                   tanks.
Fugitive Emissions VOC Emission   Sources required    NA--Semi-annual     Utah Oil and Gas    Only for natural    At least quarterly  Ensure closed-vent
 Control Requirements (49.4179).   to control          surveys.            Rules--Same as      gas processing      surveys for         system operates
                                   storage vessel,                         Proposed FIP for    plants--At least    natural gas         with no
                                   dehydrator and/or                       well sites.         annual surveys.     processing          detectable
                                   pneumatic pump                         Issued Utah Permit                       plants, quarterly   emissions if
                                   emissions (per                          Requirements                            surveys for         required to
                                   49.4174 through                         (sources exempt                         compressor          control glycol
                                   49.4178).                               from Utah Oil and                       stations and semi-  dehydrator or
                                                                           Gas Rules)                              annual surveys      storage vessel
                                                                           require LDAR,                           for well sites,     HAP emissions.
                                                                           ranging from                            if constructed or
                                                                           annual to                               modified after
                                                                           quarterly for oil                       September 18,
                                                                           and natural gas                         2015.
                                                                           sources,
                                                                           including
                                                                           compressor
                                                                           stations.

[[Page 3516]]

 
Tank Truck Loading VOC Emission   None--applies to    NA--Bottom filling  Utah Oil and Gas    Not covered.......  Not covered.......  Not covered.
 Control Requirements (49.4180).   all existing        or submerged fill   Rules--more
                                   sources.            pipe.               stringent, as
                                                                           capture and
                                                                           control of VOC
                                                                           emissions
                                                                           required at
                                                                           sources required
                                                                           to control
                                                                           storage vessel
                                                                           and glycol
                                                                           dehydrator
                                                                           emissions.
Pneumatic Controllers VOC                             NA--meet the        Utah Oil and Gas    Zero-bleed for      Zero-bleed for      Not covered.
 Emission Control Requirements                         standards of NSPS   Rules--Same as      processing plants   processing plants
 (49.4181).                                            OOOO.               Proposed FIP--.     and low-bleed (<6   and low-bleed (<6
                                                                                               scfh) elsewhere,    scfh) elsewhere,
                                                                                               if constructed      if constructed
                                                                                               after October 15,   after September
                                                                                               2013.               18, 2015.
Other combustion devices                              NA--must have       Utah Oil and Gas    Not covered.......  Not covered.......  Not covered.
 (49.4182).                                            automatic           Rules--Same as
                                                       ignition device.    proposed FIP.
--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Storage Tanks, Glycol Dehydrators, and Pneumatic Pumps
---------------------------------------------------------------------------

    \114\ The National O&NG FIP incorporates the requirements of the 
eight standards, as they apply to a source. To make emissions 
control requirements across the Basin consistent, this proposed U&O 
FIP goes beyond the eight federal standards to regulate certain 
equipment and activities that are not regulated by established EPA 
standards (or are regulated differently) but are regulated in UDEQ 
standards. The EPA is in the process of reviewing certain provisions 
of NSPS OOOOa. The requirements summarized in this table are the 
requirements effective at the time of publication of this NPRM.
---------------------------------------------------------------------------

    For new, modified and existing sources, we are proposing in 
Sec. Sec.  49.4174 (Storage Tank VOC Emission Control Requirements), 
49.4175 (Dehydrators VOC Emission Control Requirements), and 49.4176 
(Pneumatic Pumps VOC Emission Control Requirements) to require that 
owners and operators of affected storage tanks, glycol dehydrators and 
natural gas-driven pneumatic pumps either: (1) Reduce VOC emissions 
from working, standing, breathing, and flashing losses from crude oil, 
condensate, and produced water storage tanks, glycol dehydrator process 
vents (glycol dehydrator regenerator or still vent and the vent from 
the dehydrator flash tank, if present), and pneumatic pumps, by at 
least 95.0 percent on a continuous basis; or (2) maintain the source-
wide uncontrolled actual VOC emissions from all storage tanks, glycol 
dehydrators, and pneumatic pumps at a rate of less than 4 tpy, or at a 
source that contains only storage tanks and does not contain glycol 
dehydrators or pneumatic pumps, maintain the source-wide throughput at 
less than 8,000 barrels (bbl) of crude oil or 2,000 bbl of condensate 
in any consecutive 12-month period. We are proposing that applicability 
for the VOC emissions control requirements be determined specifically 
according to the following criteria. For oil and natural gas sources 
that began operation before the effective date of the final rule, we 
are proposing that applicability be determined using uncontrolled 
actual emissions or actual throughput based on 12 consecutive months of 
data. For oil and natural gas sources that begin operation or 
modification after the effective date of the final rule, we are 
proposing that applicability for glycol dehydrators and pneumatic pumps 
be determined using potential to emit and we are proposing that 
emissions from all storage tanks be controlled upon startup for a 
minimum of 12 consecutive months. This requirement for new and modified 
storage tanks is being proposed because of the uncertainty of well 
production levels before operation begins. After a minimum of 12 
consecutive months of operation, controls may be removed if source-wide 
uncontrolled actual VOC emissions from all storage tanks, glycol 
dehydrators, and pneumatic pumps are demonstrated to be less than 4 
tpy, or, at a source containing only storage tanks, source-wide 
throughput is demonstrated to be less than 8,000 bbl of crude or 2,000 
bbl of condensate.
    We are proposing that owners or operators must demonstrate that the 
source-wide uncontrolled actual VOC emissions from crude oil, 
condensate, and produced water storage tanks, glycol dehydrator process 
vents, and pneumatic pumps have been maintained below 4 tpy using 
records of monthly determinations of uncontrolled actual VOC emission 
rates for the 12 consecutive months immediately preceding the 
demonstration. The uncontrolled actual VOC emissions rate must be 
calculated using a generally accepted model or calculation methodology.
    The proposal would require that the owner or operator re-evaluate 
the source-wide uncontrolled actual VOC emissions or the source-wide 
throughput of crude oil or condensate on a monthly basis. If the 
results of the monthly determination show that the uncontrolled actual 
VOC emission rate is greater than or equal to 4 tpy or the throughput 
of crude oil or condensate is greater than 8,000 bbl or 2,000 bbl, 
respectively, the owner or operator will have 30 days to switch to the 
first option specified and control VOC emissions by at least 95 percent 
continuously. We are proposing an exemption to the VOC emissions 
control requirements for each emergency storage tank, provided the tank 
meets the following requirements: (1) The tank is not used as an active 
storage tank; (2) the owner or operator empties the tank no later than 
15 days after receiving fluids; and (3) the tank is equipped with a 
liquid level gauge or equivalent device.
    The proposed VOC emissions control applicability and requirements 
are the same as or comparable on balance with the requirements in the 
Utah Permitting Requirements and/or Utah Oil and Gas Rules. The 
proposed methods for determining applicability to the control 
requirements are the same as those determined to be cost-effective in 
site-specific minor source BACT analyses in the Utah Permit 
Requirements. In site-specific approval orders that have been issued, 
the UDEQ requires VOC emissions controls for source-wide emissions from 
storage tanks, glycol dehydrators, and pneumatic pumps at oil and 
natural gas sources \115\ when the

[[Page 3517]]

source-wide uncontrolled actual emissions from that equipment are 
greater than or equal to 4 tpy. We have also determined that 
controlling emissions above the 4 tpy VOC level is cost-effective and 
will achieve meaningful emissions reductions on the U&O 
Reservation.\116\ The proposed methods for determining applicability to 
the control requirements are comparable on balance with the UDEQ's 
recently adopted Utah Oil and Gas Rules, with the exception that those 
rules do not consider emissions from or control of pneumatic 
pumps.\117\ The reason for this difference is discussed later when 
describing requirements for pneumatic pumps. The Utah Oil and Gas Rules 
require all storage vessels located at a well site that are in 
operation as of January 1, 2018, with a site-wide throughput of 8,000 
bbl or greater of crude oil or 2,000 bbl or greater of condensate per 
year on a rolling 12-month basis to control emissions unless an 
exemption applies that combined VOC emissions from storage vessels are 
demonstrated to be less than 4 tpy of uncontrolled emissions (defined 
as actual emissions or the potential to emit without considering 
controls) on a rolling 12-month basis. Emissions to meet the exemption 
must be calculated using direct site-specific sampling data and any 
software program or calculation methodology in use by industry that is 
based on AP-42 Chapter 7. The Utah Oil and Gas Rules require all new 
and modified storage vessels (that begin operation on or after January 
1, 2018) to control emissions upon startup of operation for a minimum 
of one year. A separate provision allows controls to be removed after a 
minimum of one year of operation if source-wide throughput is less than 
8,000 bbl crude oil or 2,000 bbl condensate on a rolling 12-month basis 
or uncontrolled VOC emissions are demonstrated to be less than 4 tons 
per year. For sources that operate only storage tanks and not glycol 
dehydrators or pneumatic pumps, the 8,000 bbl of crude oil/2,000 bbl of 
condensate throughput applicability threshold for control of storage 
tank emissions is the same as the control applicability threshold for 
storage vessels in the UDEQ's recently adopted Utah Oil and Gas Rules. 
The proposed requirement to control emissions from all new and modified 
storage tanks for at least 12 consecutive months, the proposed 
exemption for emergency storage tanks, and the provision allowing 
removal of controls from storage tanks, glycol dehydrators and 
pneumatic pumps are also the same as the requirements in the recently 
adopted Utah Oil and Gas Rules, with the exception of pneumatic pump 
emissions and control mentioned earlier that will be discussed in more 
detail later.
---------------------------------------------------------------------------

    \115\ The docket for this rule contains several examples of UDEQ 
site-specific minor source NSR permits (approval orders) for Crude 
Oil and Natural Gas Well Sites and/or Tank Batteries (DAQE-
AN151010001-15, DAQE-AN149250001-14, and DAQE-AN143640003-15). UDEQ 
site-specific approval order requirements are based on BACT analyses 
for oil and natural gas sources concluding that combustion of VOC 
emissions from crude oil and condensate storage tanks, glycol 
dehydrators, and pneumatic pumps is economically and technically 
feasible when the source-wide uncontrolled VOC emissions from those 
emissions sources is equal to or greater than 4 tpy. The analyses 
rely in part on the EPA's analysis in the April 12, 2013 NSPS OOOO 
reconsideration, and the finding that emissions from those three 
emissions sources at a single source can feasibly be routed to the 
same combustor. Though the 4 tpy threshold is not specifically 
stated in the approval orders, if a source applying for a site-
specific approval order has source-wide storage tank, glycol 
dehydrator, and pneumatic pump VOC emissions equal to or greater 
than 4 tpy, the order contains requirements to control those 
emissions.
    \116\ The RIA in the docket for this proposed U&O FIP contains 
more detailed information on our analyses.
    \117\ In response to an EPA comment on UDEQ's proposal 
questioning why issued approval orders and the GAO cover pneumatic 
pumps, but the new Utah Oil and Gas Rules do not, the UDEQ stated 
that the 2014 Uinta Basin Emissions Inventory indicated that 
pneumatic pump emissions constitute an insignificant portion of the 
total VOC emissions at Utah-regulated sources in the Basin. The 
comments and UDEQ's responses are available in the docket for this 
proposed rule (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    We are proposing to specify the option that the owner or operator 
capture and route all subject emissions through a closed-vent system to 
an enclosed combustor or utility flare that is designed and operated to 
reduce the mass content of VOC in the emissions vented to it, by at 
least 95.0 percent. Requirements for closed-vent systems are proposed 
under conditions specified in Sec.  49.4176 (VOC emission control 
requirements for covers and closed-vent systems) and requirements for 
operation and monitoring of control devices are proposed under 
conditions specified in Sec. Sec.  49.4177 (VOC Emission Control 
Devices) and 49.4182 (Monitoring Requirements), all of which are 
discussed in detail later in the summaries of Covers, Closed-Vent 
Systems, and VOC Emission Control Devices and Monitoring Requirements.
    We are proposing the alternative option that the owner or operator 
design their operations to recover 100 percent of the emissions and 
recycle them for use in a process unit or incorporate them into a 
product. These proposed control options are the same as the Utah Permit 
Requirements and the Utah Oil and Gas Rules.
    This proposed U&O FIP approach for controlling pneumatic pumps by 
routing emissions to the same control device that controls emissions 
from storage tanks and glycol dehydrators is the same as the UDEQ's 
approach for controlling pneumatic pumps in site-specific approval 
orders issued under Utah Permit Requirements. As described earlier, 
regulating pneumatic pumps in this proposed U&O FIP is not comparable 
to the UDEQ's recently adopted new Utah Oil and Gas Rules because those 
rules do not include requirements for pneumatic pumps.\118\ However, we 
are confident that this approach will help achieve ozone air quality 
improvements through this proposed U&O FIP, as the 2014 Uinta Basin 
Emissions Inventory shows that VOC emissions from pneumatic pumps 
constitute 15 percent of the total oil and natural gas-related VOC 
emissions on the U&O Reservation.\119\ We are taking comment on whether 
and how to control emissions from pneumatic pumps at oil and natural 
gas sources.
---------------------------------------------------------------------------

    \118\ We note that the recently adopted new Utah Oil and Gas 
Rules do not contain requirements for pneumatic pumps. We are 
proposing requirements for pneumatic pumps requirements, as we have 
identified emissions from existing pneumatic pumps as being a 
significant source of VOC emissions on the Indian country lands 
within the U&O Reservation.
    \119\ By contrast, the 2014 Uinta Basin Emissions Inventory 
shows that there are a very low number of pneumatic pumps installed 
and operating on lands in the Uinta Basin that are regulated by the 
UDEQ and the UDEQ has stated that this fact is the reason the Utah 
Oil and Gas Rules do not have control requirements for pneumatic 
pumps (see the response to comments on the UDEQ's proposed rules in 
the docket for this rulemaking).
---------------------------------------------------------------------------

    We do not expect that a substantial number of oil and natural gas 
sources that would meet the applicability criteria of this proposed U&O 
FIP will also be subject to NSPS OOOO or OOOOa, or to NESHAP HH. 
However, to address any potential regulatory overlap, we are proposing 
that any affected crude oil, condensate and produced water storage 
tanks, glycol dehydrators and pneumatic pumps that are subject to the 
emissions control requirements in the EPA standards, would not be 
subject to this proposed U&O FIP requirements for such equipment and 
activities, including monitoring, recordkeeping and reporting 
requirements associated with such equipment and activities.
    We are seeking comment on these proposed requirements, including 
information supporting alternative VOC emission reduction and control 
efficiency requirements and specific operating condition requirements 
that would provide equivalent protection of air quality in the Uinta 
Basin and regulatory consistency across the Uinta Basin. We noted 
previously that in January 2019, the Utah Air Quality Board approved an 
additional rule in the Utah Administrative Code Chapter R307-500 Series 
(Oil and Gas) at R307-

[[Page 3518]]

511 to manage associated gas from a completed oil well by either 
routing it to a process unit for combustion, routing it to a sales 
pipeline, or routing it to a VOC control device, except for emergency 
release situations. This rule was approved after we drafted and 
evaluated the emissions reductions and costs of the provisions in this 
proposed U&O FIP. We intend to evaluate and incorporate equivalent 
requirements for associated gas from oil wells in a final U&O FIP.
2. Covers, Closed-Vent Systems
    For affected new, modified, and existing sources that are required 
to control emissions from storage tanks, glycol dehydrators and 
pneumatic pumps, we are proposing in Sec.  49.4177 (VOC emission 
control requirements for covers and closed-vent systems) to require the 
use of covers on all crude oil, condensate, and produced water storage 
tanks and the use of closed-vent systems with all equipment that 
captures and routes VOC emissions to the respective vapor recovery or 
VOC emission control devices. Because closed-vent systems would be 
common to control requirements for storage tanks, glycol dehydrators 
and pneumatic pumps, we are proposing these requirements in a separate 
section to avoid redundancy. Proposed Sec.  49.4178 also specifies 
construction and operational requirements for the covers and closed-
vent systems. The construction and operational requirements for the 
covers and closed-vent systems are intended to provide legal and 
practical enforceability to ensure that all captured VOC emissions are 
routed to the respective vapor recovery or VOC emission control 
devices. In addition, for affected new, modified, and existing sources 
that are required to control emissions from storage tanks, glycol 
dehydrators and pneumatic pumps, Sec.  49.4178 (VOC emission control 
devices) we are proposing specific legally and practicably enforceable 
construction and operational requirements for enclosed combustors and 
utility flares.
    We are proposing in Sec.  49.4177 (VOC emission control 
requirements for covers and closed-vent systems) to require that each 
owner or operator equip the openings on each subject crude oil, 
condensate, and produced water storage tank with a cover that ensures 
that working, standing, breathing, and flashing losses are efficiently 
routed through a closed-vent system to a vapor recovery system, an 
enclosed combustor, or a utility flare. We are proposing that each 
cover and all openings on the cover (e.g., access hatches, sampling 
ports, and gauge wells) must form a continuous barrier over the entire 
surface area of the crude oil, condensate, or produced water in the 
storage tank. Each cover opening must be secured in a closed, sealed 
position (i.e., covered by a gasketed lid or cap) whenever material is 
in the tank on which the cover is installed, except when it is 
necessary to use an opening to: (1) Add material to, or remove material 
from the unit (this includes openings necessary to equalize or balance 
the internal pressure of the unit following changes in the level of the 
material in the unit); (2) inspect or sample the material in the unit; 
or (3) inspect, maintain, repair, or replace equipment inside the unit.
    We are proposing to require that each owner or operator subject to 
this requirement to control VOC emissions from working, standing, 
breathing, and flashing losses from crude oil, condensate, and produced 
water storage tanks, glycol dehydrator still vents, and pneumatic pumps 
must use closed-vent systems to collect and route the emissions to the 
respective vapor recovery or VOC emission control devices. We are 
proposing that all vent lines, connections, fittings, valves, relief 
valves, and any other appurtenance employed to contain and collect 
emissions and transport them to the vapor recovery or VOC control 
equipment, must be maintained and operated properly during any time the 
control equipment is operating and must be designed to operate with no 
detectable emissions. If a closed-vent system contains one or more 
bypass devices that could be used to divert all or a portion of the 
emissions from entering the vapor recovery or VOC control devices, we 
are proposing that the owner or operator must meet one of the following 
options for each bypass device: (1) At the inlet to the bypass device, 
properly install, calibrate, maintain, and operate a flow indicator 
capable of taking periodic readings and sounding an alarm when the 
bypass device is open such that the emissions are being, or could be, 
diverted away from the control device and into the atmosphere; or (2) 
secure the bypass device valve in the non-diverting position using a 
car-seal or a lock-and-key type configuration.
    The proposed cover and closed-vent system requirements are 
comparable on balance with UDEQ requirements for storage vessels in 
both the issued site-specific approval orders and the Utah Oil and Gas 
Rules. The site-specific approval orders require storage tank thief 
hatches to be closed and latched except during tank unloading or other 
maintenance activities. They also require that thief hatches be 
inspected once every three months to ensure thief hatches are closed, 
latched, and the associated gaskets, if any, are in good working 
condition. Similarly, the Utah Oil and Gas Rules for storage vessels 
require thief hatches to be kept closed and latched except during 
unloading or maintenance. This proposed U&O FIP requirements for covers 
and closed-vent systems, including the associated monitoring 
requirements proposed in Sec.  49.4183 and discussed later, were 
developed by consulting the covers and closed-vent system requirements 
of EPA standards, such as OOOO and NESHAP HH. For ease of 
implementation, these requirements provide more detail than the UDEQ 
requirements in both the issued site-specific approval orders and the 
Utah Oil and Gas Rules but are comparable on balance with the UDEQ 
requirements for storage vessels and closed-vent systems.
3. VOC Emission Control Devices
    For new, modified and existing sources that are required to control 
emissions from storage tanks, glycol dehydrators and pneumatic pumps, 
we are proposing to require in Sec.  49.4178 (VOC emission control 
devices) that each owner or operator follow the manufacturer's written 
operating instructions, procedures and maintenance schedules to ensure 
the use of good air pollution control practices for minimizing 
emissions from each enclosed combustor and utility flare. Each utility 
flare must be designed and operated according to the requirements of 40 
CFR 60.18(b). Each enclosed combustor must be designed and operated to 
reduce the mass content of the VOC in the natural gas routed to it by 
at least 95 percent continuously. The proposed control efficiency 
required for each VOC emissions control device is the same as the 
recently adopted Utah Oil and Gas Rules.
    We recognize that the site-specific approval orders issued to 
existing sources under the Utah Permit Requirements require control 
devices to meet 98 percent VOC control efficiency. But we have 
concluded that the differences between this proposed U&O FIP and the 
Utah Oil and Gas Rules and the Utah Permit Requirements are minimal, 
and all were designed to achieve a consistent result. The UDEQ requires 
permittees of minor oil and natural gas sources to show compliance with 
98.0 percent VOC control device control efficiency by routing all 
exhaust gas/vapors (from the storage tanks, glycol dehydrators or 
pneumatic pumps) to the operating combustor,

[[Page 3519]]

operating the device according to the manufacturer's written 
instructions when gases/vapors are routed to it, operating the device 
with no visible emissions, and by performing tests to visually 
determine smoke emissions according to EPA Method 22 at 40 CFR part 60, 
appendix A. The recently adopted new Utah Oil and Gas Rules require at 
least 95.0 percent VOC control efficiency and do not specify methods to 
ensure no visible emissions but refer to NSPS OOOOa for demonstrating 
compliance with the control efficiency requirements. We note that 
combustion devices can be designed to meet 98.0 percent control 
efficiencies, and can control emissions by 98.0 percent or more, on 
average, in practice when properly operated.\120\ Combustion devices 
designed to meet 98.0 percent control efficiency may not, however, be 
able continuously to meet this efficiency in practice, due to factors 
such as the variability of field conditions and downtime.
---------------------------------------------------------------------------

    \120\ The EPA has currently reviewed performance tests submitted 
for 19 different makes/models of combustor control devices and 
confirmed they meet the performance requirements in NSPS subpart 
OOOO and NESHAP subparts HH and HHH. All reported control 
efficiencies were above 99.9 percent at tested conditions. EPA notes 
that the control efficiency achieved in the field is likely to be 
lower than the control efficiency achieved at a bench test site 
under controlled conditions, but these units should have no problem 
meeting 95.0 percent control continuously. See Combustion Device 
Performance Testing Summary Table in the docket for this rule.
---------------------------------------------------------------------------

    During development of NSPS OOOO and OOOOa, 95.0 percent control 
efficiency was determined to be the best system of emission reduction 
(BSER) and able to be continuously achieved by affected facilities 
(e.g., storage vessels, centrifugal compressors) nationwide, although 
the EPA is aware that combustors and utility flares may be capable of 
achieving instantaneous control efficiencies greater than 95.0 
percent.\121\ In determining BSER, the EPA must be confident that the 
control efficiency can be achieved continuously by every affected 
facility nationwide to which it applies. We are confident that 
combustors and utility flares can meet at least 95.0 percent VOC 
control efficiency on a continuous basis. While the EPA is aware that 
combustion devices commonly used to control VOC-containing gas streams 
are capable of demonstrating greater than 98.0 percent continuous VOC 
control efficiency in a controlled performance testing environment, 
under ideal conditions, based on widespread and readily available 
manufacturer test data,\122\ we are not confident that the devices can 
meet 98.0 percent continuous VOC control efficiency in the field.
---------------------------------------------------------------------------

    \121\ See ``Oil and Natural Gas Sector New Source Performance 
Standards and National Emissions Standards for Hazardous Air 
Pollutants reviews, Parts 60 and 63, Response to Public Comments on 
Proposed Rule, See 76 FR 52738 (August 23, 2011), available at 
http://www.regulations.gov (Docket ID EPA-HQ-OAR-2010-0505 (Section 
2.5.4, pages 127-128; Section 3.4.1, pages 294-295; and Section 
3.5.1, pages 302-303)).
    \122\ See Combustion Device Performance Testing Summary Table in 
the docket for this rule.
---------------------------------------------------------------------------

    We are proposing to require that all utility flares and enclosed 
combustors installed per this rule are models that: (1) Have been 
tested by the manufacturer in accordance with specific requirements in 
NSPS OOOO; (2) are devices that are designed and operated in accordance 
with applicable requirements in 40 CFR 60.18(b), or (3) are devices for 
which the owner or operator has conducted performance testing according 
to the specific requirements in NSPS OOOO. The Utah Oil and Gas Rules 
require that compliance for VOC control devices be demonstrated by 
meeting the performance test methods and procedures specified in NSPS 
OOOO. The Utah Oil and Gas Rules do not distinguish between utility 
flares and enclosed combustors. We determined it was important to 
propose specific requirements for the different types of control 
devices that may be present at oil and natural gas sources on the U&O 
Reservation, because EPA standards, such as NSPS OOOO and OOOOa and 
NESHAP HH make such distinctions for legal and practical 
enforceability. Therefore, although the proposed requirements for VOC 
control devices to demonstrate compliance with the proposed control 
efficiency requirements are more detailed for ease implementation, they 
are comparable on balance with the Utah Oil and Gas Rules that 
reference such requirements in NSPS OOOO.
    We have determined that certain work practice and operational 
requirements are also necessary for the practical enforceability of the 
proposed VOC emission reduction requirements for utility flares or 
enclosed combustors. We are proposing that utility flares and enclosed 
combustors must be operated within specific parameters to ensure the 
effective control of VOC emissions. (This necessity was discussed in 
detail in the preamble and Technical Support Documents to the proposed 
and final NSPS OOOO).\123\ Specifically, we are proposing that each 
owner or operator must ensure that each enclosed combustor or utility 
flare is: (1) Operated at all times that emissions are routed to it; 
(2) equipped and operated with a liquid knock-out system to collect any 
condensable vapors (to prevent liquids from going through the control 
device); (3) equipped and operated with a flash-back flame arrestor; 
(4) equipped and operated with a continuous burning pilot flame, or an 
electronically controlled automatic ignition device; (5) equipped with 
a monitoring system for continuous recording of the parameters that 
indicate proper operation of each continuous burning pilot flame or 
electronically controlled automatic ignition device, such as a chart 
recorder, data logger or similar device, or connected to a Supervisory 
Control and Data Acquisition (SCADA) system, to monitor and document 
proper operation of the enclosed combustor or utility flare; (6) 
maintained in a leak-free condition; and (7) operated with no visible 
smoke emissions. These proposed work practice and operational 
requirements are the same as the Utah Oil and Gas Rules with respect to 
operation of the control devices with no visible emissions. Other 
proposed work practice and operational requirements are different or 
more prescriptive than the Utah Oil and Gas Rules in several areas, to 
provide legal and practical enforceability. For example, the Utah Oil 
and Gas Rules require all VOC emissions control devices to simply be 
equipped and operated with an operational auto igniter. This proposed 
U&O FIP requires each enclosed combustor or utility flare to be 
equipped and operated with either: (1) A continuous burning pilot 
flame; or (2) an electronically controlled automatic ignition device. 
All enclosed combustors or utility flares must be equipped with a 
monitoring system for continuous measurement and recording of the 
parameters that indicate proper operation of each continuous burning 
pilot flame or electronically controlled automatic ignition device, 
such as a chart recorder, data logger or similar device, or connected 
to a SCADA system to monitor and document proper operation of the 
device. The work practice and operational requirements for VOC control 
devices in this proposed U&O FIP were developed by considering the UDEQ 
requirements for VOC control devices in combination with consulting the 
work practice and operational requirements for control devices in EPA 
standards, including NSPS OOOO and OOOOa and NESHAP HH. Specifically 
regarding the proposed requirement to equip enclosed combustors and 
utility flares with either

[[Page 3520]]

a continuous burning pilot flame or an electronically controlled 
automatic ignition device, provided there is a monitoring system to 
indicate proper operation of the device, the EPA has maintained our 
position as recently as 2016 that without a continuous ignition 
sources, there may be periods of uncontrolled emissions and continuous 
ignition sources are designed to combust the flammable portion of the 
gas stream, even if the gas stream has a low BTU content.\124\ 
Therefore, we have maintained that automatic ignition devices may not 
be reliable in the field to ensure that there is an ignition source at 
all times gas is flowing to a control device, and EPA standards, such 
as NSPS OOOO and OOOOa have commonly required that enclosed combustors 
be equipped with continuous burning pilot flames and continuous 
parameter monitoring systems to ensure the presence of a flame at all 
times a gas stream is routed to the control device. Additionally, since 
Sec.  60.18(b)(2) of the General Provisions for 40 CFR part 60 is 
required for design and operation if an operator uses a utility flare 
under this proposed U&O FIP, a continuous pilot flame is required in 
that provision, and we believe an equivalent requirement should be 
applicable to the enclosed combustion control devices typically used 
for controlling emissions from storage vessels and other equipment at 
oil and natural gas sources. We recognize that the UDEQ requires auto 
igniters on all combustion devices. In the interest of establishing 
regulations on the U&O Reservation that are comparable on balance with 
the UDEQ requirements, we are proposing a hybrid approach that provides 
owners and operators required to control of VOC emissions from storage 
tanks, glycol dehydrators and pneumatic pumps the option to use devices 
that comply with EPA standards (continuous burning pilot), or to use 
electronically controlled automatic ignition devices if the control 
device is also equipped with a system that can indicate to the owner 
and operator that the automatic ignition device is not operating 
properly while gas is being routed to the control device. We expect 
that these proposed requirements for control devices would achieve a 
comparable result as the requirements for VOC control devices in the 
Utah Oil and Gas Rules, ensuring the control device is operated 
properly to achieve the required control efficiency, while providing 
consistency with EPA policy regarding flares and combustors.
---------------------------------------------------------------------------

    \123\ These documents can be found in the docket for the NSPS 
OOOO rulemaking, Docket ID EPA-HQ-OAR-2010-0505, available at http://www.regulations.gov.
    \124\ EPA's Response to Public Comments on the EPA's Oil and 
Natural Gas Sector: Emission Standards for New, Reconstructed, and 
Modified Sources. 40 CFR part 60, subpart OOOOa. May 2016. Chapter 
11--Compliance. Comment Excerpt Number: 17. Pages 188-191. Available 
at https://www.regulations.gov (Docket ID EPA-HQ-OAR-2010-0505-
7632), Accessed August 16, 2019.
---------------------------------------------------------------------------

    Section 49.4178 proposes to allow owners or operators of oil and 
natural gas sources, upon receiving written approval, to use control 
devices other than an enclosed combustor or utility flare, provided 
they achieve at least 95.0 percent VOC control efficiency continuously. 
This provision will allow for owners or operators to take advantage of 
technological advances in VOC emission control for the oil and natural 
gas industry and will provide us with valuable information on any new 
control technologies.
    We are seeking comment on the covers, closed-vent systems, and VOC 
emission control devices provisions in this proposed U&O FIP, including 
information supporting more or less stringent requirements that would 
provide legal and practical enforceability of the proposed requirement 
to reduce VOC emissions from storage tanks, glycol dehydrators, and 
pneumatic pumps by 95.0 percent continuously.
4. Fugitive Emissions Control
    For new, modified and existing sources, we are proposing LDAR 
requirements in Sec.  49.4179 (Fugitive Emissions VOC Emission Control 
Requirements) that each owner or operator of an oil and natural gas 
source that is required to control VOC emissions from storage tanks, 
glycol dehydrators, and pneumatic pumps per Sec. Sec.  49.4174 through 
49.4178 conduct periodic inspections of the source to detect leaks from 
fugitive emission components and repair them. We are proposing to 
define fugitive emissions components in Sec.  49.4171 to include, among 
other things: Valves, connectors, open-ended lines, pressure relief 
devices, flanges, covers, closed-vent systems, and thief hatches or 
other openings on controlled tanks. Each affected owner or operator 
will be required to develop and implement a Reservation-wide fugitive 
emissions monitoring plan for all of its oil and natural gas sources on 
the U&O Reservation that must include the following requirements: (1) 
Conduct an initial monitoring of fugitive emissions components at each 
affected source within 18 months of the effective date of the rule; (2) 
conduct subsequent monitoring once every 6 months after the initial 
monitoring for fugitive emissions components at oil and natural gas 
sources; (3) describe the fugitive emissions detection monitoring 
method to be used, which is limited to onsite optical gas imaging 
instruments, EPA Reference Method 21, with a leak defined as any 
visible emissions using an optical gas imaging instrument, or an 
instrument reading of 500 parts per million volume (ppmv) VOC using EPA 
Reference Method 21, or another method approved by the EPA other than 
optical gas imaging or EPA Reference Method 21; (4) identification of 
manufacturer and model number of any leak detection equipment to be 
used; (5) procedures and timeframes for identifying and repairing 
components from which leaks are detected, including a requirement to 
repair any identified leaks from components that are safe to repair and 
that do not require source shutdown within 30 days of identifying a 
leak; (6) identification of timeframes to repair leaks that are 
technically infeasible to repair (i.e., are unsafe to repair \125\ or 
require source shutdown), but no later than 2 years after discovering 
such a leak; (7) procedures for verifying effective repair of leaking 
components, no later than 30 days after repairing a leak; (8) specific 
training and experience needed to perform inspections; (9) description 
of procedures for calibration and maintenance of monitoring equipment 
to be used; and (10) standard monitoring protocol for a typical 
affected source, including a general list of component types that will 
be inspected and what supporting data will be recorded (e.g., wind 
speed, detection method device-specific operational parameters, date, 
time, and duration of inspection). We are proposing in Sec.  49.4179 to 
exempt source owners/operators from having to monitor certain 
components for various reasons, such as: (1) The monitoring could not 
occur without elevating the monitoring personnel which expose the 
personnel to other immediate danger; or (2) the component to be 
inspected is buried, insulated, or otherwise obstructed in a manner 
that prevents access by a monitor probe or optical gas imaging device.
---------------------------------------------------------------------------

    \125\ Unsafe to repair is defined in the proposed rule as 
meaning that operator personnel would be exposed to an imminent or 
potential danger as a consequence of the attempt to repair the leak 
during normal operation of the source.
---------------------------------------------------------------------------

    In drafting the proposed LDAR requirements, we reviewed the UDEQ 
requirements. For new and modified oil and natural gas sources that may 
have obtained coverage under the UDEQ's GAO, we have concluded that the 
UDEQ's LDAR inspection frequency requirement is different than the LDAR 
inspection frequency requirements for

[[Page 3521]]

oil and natural gas sources under this proposed U&O FIP. For new and 
modified sources under the GAO, the UDEQ requires an inspection 
frequency based on production levels and number of leaks detected, 
which may require monitoring frequencies for only certain sources that 
are equivalent to this proposed U&O FIP. For existing sources covered 
under site-specific approval orders, we have concluded that the UDEQ's 
LDAR frequency requirements (a range of annual to quarterly) to be 
different than those in proposed FIP. For new, modified and existing 
sources subject to the recently adopted new Utah Oil and Gas Rules, the 
LDAR frequency requirements of this proposed U&O FIP are the same. The 
LDAR requirements in the Utah Oil and Gas Rules were designed 
procedurally to be consistent with NSPS OOOOa, though the applicability 
threshold is different. The UDEQ's site-specific approval orders, the 
GAO, and the recently adopted new Utah Oil and Gas Rules all require 
implementation of an LDAR program at facilities that are required to 
control storage vessel, dehydrator and/or pneumatic pump emissions, 
which is consistent with this proposed U&O FIP. We determined that, 
particularly for existing sources, in order to provide consistent 
requirements across the Uinta Basin, the LDAR requirements in this 
proposed U&O FIP should be consistent with the LDAR requirements for 
new, modified and existing sources in the Utah Oil and Gas Rules, as 
those rules apply prospectively to all oil and natural gas well sites 
on non-reservation Indian country lands in the Uinta Basin that are not 
already subject to site-specific approval orders. If the sources in the 
Uinta Basin that are regulated by the UDEQ are also subject to the LDAR 
requirements of the NSPS OOOOa, the NSPS requirements supersede the 
UDEQ requirements. Similarly, if the sources in the Uinta Basin that 
would be regulated by the EPA on the U&O Reservation are subject to the 
LDAR requirements of the NSPS OOOOa, those sources would be exempt from 
complying with the LDAR requirements in this proposed U&O FIP. The 
fugitive emissions LDAR procedural requirements proposed in this 
proposed U&O FIP are consistent with the Utah Oil and Gas Rules. We are 
proposing applicability criteria for implementing an LDAR program, and 
LDAR inspection frequency requirements, that are consistent with 
requirements in the Utah Oil and Gas Rules, which meets our goal of 
regulatory consistency across the Uinta Basin. We expect that the 
proposed LDAR requirements will result in meaningful reductions in VOC 
emissions and ground-level ozone production, significantly furthering 
our main objective for this proposed U&O FIP. We are seeking comment on 
the fugitive emissions control requirements in this proposed U&O FIP, 
including information supporting more or less stringent inspection 
requirements.
    We are proposing a provision allowing for the use of alternative 
methods of leak detection, other than EPA Reference Method 21 or 
optical gas imaging instrument, to demonstrate compliance with the 
fugitive emissions monitoring requirements, provided the method is 
approved by the EPA. The Uinta Basin generally encompasses an area of 
over 6,800 square miles with hundreds of miles of dirt roads connecting 
over 10,000 oil and natural gas wells. According to the 2014 Uinta 
Basin Emissions Inventory,\126\ the average number of wells per well 
pad is 1.3. The inventory shows that fugitive emissions are the second 
highest VOC emissions source on the U&O Reservation, at about 13,900 
tpy. The total does not account for emissions due to abnormal process 
operations, which is discussed in the following paragraphs. Recognizing 
that technology used to detect, measure, and mitigate emissions is 
rapidly developing, on July 18, 2016, the EPA issued a request for 
information, (RFI) \127\ inviting all parties to provide information on 
innovative technologies to accurately detect, measure, and mitigate 
emissions from the oil and natural gas industry. The intent of this 
notice was to solicit data supporting alternative approaches to limit 
emissions from this sector.
---------------------------------------------------------------------------

    \126\ The complete, detailed dataset for the 2014 Uinta Basin 
Emission Inventory, including location data of every facility, can 
be viewed in the docket for this rule (Docket ID No. EPA-R08-OAR-
2015-0709), SQLite database titled OGEI_v2.2_2014FINAL.db''.
    \127\ See 81 FR 46670 (July 18, 2016).
---------------------------------------------------------------------------

    Studies have been conducted specific to the Uinta Basin that 
investigated the viability of leak detection from an aerial platform. 
One study \128\ employed a helicopter-based infrared camera, at an 
elevation of approximately 50 meters above ground level, to survey more 
than 8,000 oil and natural gas well pads in seven U.S. basins to assess 
the prevalence and distribution of hydrocarbon sources whose fugitive 
emissions were high enough to be labeled high-emitters. At each site 
with detected emissions, the survey team reported the site's location 
and the number and equipment type of each observed emission source. 
Survey results indicated the prevalence of high-emitting sites was four 
percent of all the sites surveyed across the seven basins examined. In 
the Uinta Basin, 1,389 well pad facilities were flown over, and high 
emissions were observed at 6.6 percent of those well pads.
---------------------------------------------------------------------------

    \128\ ``Aerial Surveys of Elevated Hydrocarbon Emissions from 
Oil and Gas Production Sites,'' Environmental Science and 
Technology, 2016, 50 (9), pp 4877-4886, publication date April 5, 
2016, available at http://pubs.acs.org/doi/abs/10.1021/acs.est.6b00705, accessed August 16, 2019.
---------------------------------------------------------------------------

    The high emitting sources, or ``super-emitters,'' are likely due to 
abnormal process conditions.\129\ Examples of abnormal process 
conditions, which could be persistent or episodic, include: Failures of 
tank control systems, malfunctions upstream of the point of emissions 
(for example, stuck separator dump valve resulting in produced gas 
venting from tanks), design failures (for example, vortexing or gas 
entrainment during separator liquid dumps) and equipment or process 
issues (for example, over-pressured separators, malfunctioning or 
improperly operated dehydrators or compressors).\130\
---------------------------------------------------------------------------

    \129\ Zavala-Araiza, D., Alvarez, R.A., Lyon, D.R., Allen, D.T., 
Marchese, A.J., Zimmerle, D.J., & Hamburg, S.P. (2017). Super-
emitters in natural gas infrastructure are caused by abnormal 
process conditions. Nature communications, 8, 14012.
    \130\ The 2014 Uinta Basin Emissions Inventory has not accounted 
for the phenomenon of ``super-emitters.''
---------------------------------------------------------------------------

    We are seeking information on alternative methods of leak detection 
(e.g., aerial) that could potentially achieve meaningful and more cost-
effective reductions in fugitive VOC emissions that contribute to ozone 
formation. We are seeking input on how these advanced monitoring 
technologies and platforms could be broadly applied to new, modified 
and existing sources in the Uinta Basin and whether any of these 
advanced monitoring technologies would be effective in the Uinta Basin 
and should be approvable as an alternative leak detection compliance 
method under a final U&O FIP. We are also seeking input on the criteria 
that EPA should consider in approving alternative leak detection 
compliance methods, including appropriate accuracy and quality 
assurance standards that alternative methods would need to meet to 
demonstrate equivalency to onsite optical gas imaging instruments or 
onsite EPA Reference Method 21. Specific descriptions of the approach, 
frequency of monitoring, detection thresholds, limiting factors in 
detection, costs and availability for alternative leak detection 
methods would be helpful.

[[Page 3522]]

5. VOC Emissions Control Requirements for All Sources
    Sections 49.4180 (VOC emission control requirements for Tank Truck 
Loading), 49.4180 (VOC emission control requirements for pneumatic 
controllers) and 49.4184 (Other combustion devices) contain proposed 
requirements for all new, modified and existing oil and natural gas 
sources, regardless of source-wide or emission unit specific emissions. 
Like the requirements in Utah's Oil and Gas Rules for oil and natural 
gas sources in UDEQ's jurisdiction, this proposed U&O FIP's 
requirements are as follows: (1) Tank trucks used for transporting 
intermediate crude oil, condensate, or produced water must be loaded 
using bottom filling or submerged fill pipes; (2) all existing 
pneumatic controllers must meet the pneumatic controller standards in 
NSPS OOOO at 40 CFR 60.5390(b)(2) and (c)(2) and NSPS OOOOa at 40 CFR 
60.5390a(b)(2) and (c)(2); and (3) all existing enclosed combustors, 
utility flares, or other open flares present at sources on a voluntary 
basis that are not required to control storage tank, glycol and 
dehydrator and pneumatic pump emissions (per Sec. Sec.  49.4174 through 
49.4178), and are voluntarily operated, must be equipped with an 
electronically controlled automatic ignition device.
    Our proposed requirements for truck loading/unloading diverge in 
one respect from what the UDEQ is requiring in their recently adopted 
rulemaking. The UDEQ requires that VOC emissions from tank truck 
loading and unloading at sources required to control storage tank 
emissions be captured using a vapor capture line and routed to the 
onsite combustor or a separate combustor for VOC control. We are not 
proposing an equivalent requirement, as we have determined that it may 
not be cost effective presently given limited estimated emissions for 
truck loading/unloading on the U&O Reservation, based on the 2014 Uinta 
Basin Emissions Inventory. Assuming that the annualized cost to install 
a vapor capture line to an existing combustor is similar to that of 
routing pneumatic pumps to a combustor (approximately $1,627 per 
source) and assuming there are approximately 2,100 sources that would 
be required to add a combustor, such a requirement would result in high 
costs relative to the VOC emissions reductions that would be achieved.
    Concerning pneumatic controllers, this proposed U&O FIP 
requirements for pneumatic controllers require owners/operators of 
affected pneumatic controllers to meet the standards established for 
pneumatic controllers in NSPS OOOO and OOOOa. We are proposing that 
owners/operators of affected controllers meet the tagging requirements 
in 40 CFR 60.5390(b)(2), 60.5390(c)(2) and 60.5390a(b)(2) and (c)(2), 
except that the month and year of installation, reconstruction or 
modification is not required. This exception is consistent with the 
Utah Oil and Gas Rules.
    Lastly, for existing enclosed combustors, utility flares, or other 
open flares present at sources that would not be required to comply 
with the substantive VOC emissions control requirements of proposed 
sections Sec. Sec.  49.4174 through 49.4178, we are proposing to 
require that those voluntarily operated control devices be equipped 
with an electronically controlled automatic ignition device. This 
approach is the same as the requirements of the Utah Oil and Gas Rules, 
which require automatic igniters on all existing combustion devices. 
Contrary to the proposed requirements in Section 49.4179 (VOC Emission 
Control Devices) for devices used to comply with the substantive VOC 
emissions control requirements of this proposed U&O FIP, we determined 
that requiring a system to monitor proper operation of devices used to 
ensure the presence of a flame at all times a gas stream is routed to 
the device was unreasonable for voluntarily operated devices and would 
result in requirements for such sources on the U&O Reservation that are 
not comparable to requirements for such sources on lands regulated by 
the UDEQ.

G. Monitoring Requirements

    For new, modified, and existing sources, we are proposing in Sec.  
49.4183 (Monitoring Requirements) to require each owner or operator to 
conduct source monitoring necessary for the practical enforceability of 
all of this proposed U&O FIP's VOC emission reduction requirements, 
including: (1) Monthly inspections of each closed-vent system, 
including storage tank openings, thief hatches, and bypass devices, for 
defects that can result in air emissions according to the procedures in 
40 CFR 60.5416(c) [NSPS OOOO]; (2) monthly auditory, visual, olfactory 
(AVO) inspections of each VOC emissions control device, tank thief 
hatch, cover, seal, pressure relief valve, and closed-vent system to 
ensure proper condition and functioning, performed while the storage 
tanks are being filled, and corrective action within 5 days of 
discovering the device is not operational; and (3) monitoring of each 
enclosed combustor or utility flare to confirm proper operation as 
follows: By checking the system for proper operation whenever an 
operator is onsite and responding to any indication of pilot flame 
failure and to ensure the pilot flame is relit as soon as practically 
and safely possible; and (4) monitoring of visible emissions according 
to the requirements in 40 CFR 60.5412(d)(i)(iii) [NSPS OOOO, which 
requires EPA Method 22 visual emissions testing].
    These proposed monitoring requirements are comparable on balance 
with those in the Utah Permit Requirements and Utah Oil and Gas Rules, 
with some exceptions made to ensure legally and practicably enforceable 
control of VOC emissions.
    For example, the Utah Permit Requirements and Utah Oil and Gas 
Rules require installation and operation of an automatic ignition 
device and operations with no visible emissions for all VOC control 
devices, but there are no corresponding monitoring requirements to 
demonstrate compliance with those requirements. We expect that the 
proposed monitoring requirements for ensuring there is a constant 
ignition source when gas is flowing to the control device and for 
visible emissions testing will provide legal and practical 
enforceability.
    We are seeking comment on the monitoring requirements in this 
proposed U&O FIP, including information supporting more or less 
stringent monitoring requirements that would provide legal and 
practical enforceability of the proposed VOC emission control 
requirements.

H. Recordkeeping Requirements

    For new, modified and existing sources, we are proposing in Sec.  
49.4184 (Recordkeeping Requirements) to require that each owner or 
operator of an affected oil and natural gas source keep specific 
records to be made available upon request, in lieu of voluminous 
reporting requirements. The records that must be kept include all 
required measurements, monitoring results, emissions calculations, and 
deviations or exceedances of rule requirements and corrective actions 
taken, as well as any manufacturer specifications and guarantees or 
engineering analyses. These recordkeeping requirements provide legal 
and practical enforceability for the control and emission reduction 
requirements of this rule.
    We are seeking comment on the recordkeeping requirements in this 
proposed U&O FIP, including

[[Page 3523]]

information supporting more or less stringent recordkeeping 
requirements that would provide legal and practical enforceability of 
the proposed VOC emission control requirements.

I. Notification and Reporting Requirements

    For new, modified, and existing sources, we are proposing in Sec.  
49.4185 (Reporting Requirements) to require that each owner or operator 
of an affected oil and natural gas source prepare and submit an annual 
compliance report, beginning 90 days after the end of the first 
compliance reporting period, which is one year after this rule becomes 
effective and covers the period for the previous calendar year. The 
report must include a summary of required records and a summary of 
deviations or exceedances of any requirements of the final FIP and the 
corrective measures taken. Additionally, a report of results must be 
submitted for any performance test we require. These reporting 
requirements provide legal and practical enforceability for the control 
and emission reduction requirements of this rule. We are seeking 
comments on the reporting frequency in this proposed U&O FIP, including 
information supporting a more or less frequent reporting schedule.

VI. Statutory and Executive Order Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This proposed action is an economically significant regulatory 
action and was submitted to the Office of Management and Budget (OMB) 
for review. Any changes made in response to the OMB recommendations 
have been documented in the docket. The EPA prepared an analysis of the 
potential costs and benefits associated with this proposed action. This 
analysis, ``Regulatory Impact Analysis of for the Proposed Federal 
Implementation Plan for Managing Emissions from Oil and Natural Gas 
Sources on Indian Country Lands Within the Uintah and Ouray Indian 
Reservation in Utah'' (Ref. EPA-908/Z-16-001), is available in the 
docket, and is summarized in Section IV.I. Benefits and Costs of the 
Proposed Rule.

B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs

    This action is expected to be an Executive Order 13771 regulatory 
action. Details on the estimated costs of this proposed rule can be 
found in the EPA's analysis of the potential costs and benefits 
associated with this action.

C. Paperwork Reduction Act (PRA)

    The information collection activities in this proposed rule have 
been submitted to the Office of Management and Budget (OMB) for 
approval under the PRA. The Information Collection Request (ICR) 
document that the EPA is preparing for this proposed U&O FIP has been 
assigned EPA ICR number 2539.01. You can find a copy of the ICR in the 
docket for this rule, and it is briefly summarized here.
    This proposed action imposes a new information collection burden 
under the PRA. The ICR covers information collection necessary to meet 
the requirements in this proposed U&O FIP. In general, owners or 
operators are required to maintain records of all required monitoring 
and other rule compliance. This proposed U&O FIP also requires annual 
reports containing information for each oil and natural gas source, 
including a summary of all required records during the reporting 
period, and a summary of all instances where operation was not 
performed in compliance with the requirements of this proposed U&O FIP 
during the reporting period. Additionally, a summary emissions 
inventory is required for each source covered under this rulemaking 
once every three years. These reports and records are essential in 
determining compliance and are required of all sources subject to this 
proposed U&O FIP. The information collected will be used by the EPA or 
the Ute Indian Tribe to determine the compliance status of sources 
subject to the rule.
    Respondents/affected entities: The potential respondents are owners 
or operators of existing, new, and modified oil and natural gas sources 
on Indian country lands within the U&O Reservation.
    Respondent's obligation to respond: Mandatory. The EPA is charged 
under sections 301(a) and 301(d)(4) of the CAA to promulgate 
regulations as necessary to protect tribal air resources. Promulgating 
this proposed U&O FIP would address winter ozone air quality 
concentrations that exceed the NAAQS, and given the recent ozone NAAQS 
nonattainment designation, when combined with the National O&NG FIP 
amendments, would provide justification to allow continued streamlined 
construction authorization of new or modified true minor oil and 
natural gas sources, all in a manner that seeks to provide regulatory 
consistency between state and federal requirements with regard to 
controlling VOC emissions from existing, new, and modified oil and 
natural gas operations on the U&O Reservation. There is no other 
federal rule, including the recently finalized NSPS and NESHAP for the 
Oil and Natural Gas Sector (NSPS OOOO, NSPS OOOOa, and NESHAP HH), that 
establishes air pollution control regulations for the particular oil 
and natural gas operations that exist on the U&O Reservation that are 
appropriate to address the issues identified for this area. This is in 
contrast to oil and natural gas operations on non-Indian-country lands 
under the State of Utah's jurisdiction, which are governed by the UDEQ 
regulations and Utah Division of Oil, Gas, and Mining regulations. 
Consistent with the regulatory structure that exists on non-Indian 
country lands, this proposed U&O FIP has requirements for VOC emissions 
control and reductions, monitoring, recordkeeping, and reporting.
    In addition, section 114(a) states that the Administrator may 
require any owner or operator subject to any requirement of this Act 
to:
     Establish and maintain such records;
     Make such reports;
     Install, use, and maintain such monitoring equipment, and 
use such audit procedures, or methods;
     Sample such emissions (in accordance with such procedures 
or methods, at such locations, at such intervals, during such periods, 
and in such manner as the Administrator shall prescribe);
     Keep records on control equipment parameters, production 
variables or other indirect data when direct monitoring of emissions is 
impractical;
     Submit compliance certifications in accordance with 
section 114(a)(3); and
     Provide such other information as the Administrator may 
reasonably require.
    Estimated number of respondents: We estimate that 4,894 oil and 
natural gas sources will be subject to one or more requirements in this 
proposed U&O FIP over the next three years.
    Frequency of response: Annual reports are required. Respondents 
must monitor all specified criteria at each affected source and 
maintain these records for five years.
    Total estimated burden: 123,000 hours per year (3-year average), 
for all operators subject to this proposed U&O FIP.
    Total estimated cost: $21.6 million per year; includes labor cost 
of $6.4 million, annualized capital cost of $6.4 million, and $8.7 
million in operation and maintenance costs for all of the

[[Page 3524]]

operators that would subject to this proposed U&O FIP.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number. The OMB control numbers for the 
EPA's regulations in 40 CFR are listed in 40 CFR part 9.
    Submit your comments to the EPA on the Agency's need for this 
information, the accuracy of the provided burden estimates and any 
suggested methods for minimizing respondent burden, using the docket 
identified at the beginning of this proposed rule. You may also send 
your ICR-related comments to OMB's Office of Information and Regulatory 
Affairs via email to [email protected], Attention: Desk 
Officer for the EPA. Since OMB is required to make a decision 
concerning the ICR between 30 and 60 days after receipt, OMB must 
receive comments no later than 30 days after publication of the ICR in 
the Federal Register. The EPA will respond to any ICR-related comments 
in the final rule.

D. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. The 
small entities subject to the requirements of this action are owners/
operators of oil and natural gas sources on the U&O Reservation. They 
were identified through a review of existing minor source registrations 
submitted by owners/operators on the U&O Reservation under the Federal 
Indian Country Minor NSR rule. The Agency has determined that two out 
of eleven total small entities, or 18%, may experience an impact of 0% 
to 3% of revenues.\131\
---------------------------------------------------------------------------

    \131\ The RIA includes a more detailed analysis of the impact of 
the proposed rule to small entities. It can be viewed in the docket 
for this rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

E. Unfunded Mandates Reform Act (UMRA)

    This proposed action does not contain an unfunded mandate of $100 
million of more as described in UMRA, 2 U.S.C. 1531-1538, and does not 
significantly or uniquely affect small governments. This action imposes 
no enforceable duty on any state, local or tribal governments, and the 
action contains a federal private sector mandate that may result in the 
expenditures of less than $100 million for the private sector in any 
one year.
1. Statutory Authority
    The legal authority for this rule stems from sections 301(a) and 
301(d)(4) of the CAA and 40 CFR 49.11(a). See section III.B of this 
preamble for more information.
2. Costs and Benefits
    As discussed in Section IV.I. Benefits and Costs of the Proposed 
Rule, the estimated total annualized engineering costs of this proposed 
rule in 2021, accounting for the recovered natural gas, are $64 million 
in 2016 dollars using a 7 percent discount rate and $56 million in 2021 
in 2016 dollars using a 3 percent discount rate.\132\ The EPA estimates 
that the proposed rule will lead to annual monetized benefits of about 
$10 million in 2021 using a 3 percent discount rate and $2.9 million at 
a 7 percent discount rate. Including the resources from recovered 
natural gas that would otherwise be vented, the quantified annualized 
net benefits of the regulation (the difference between the monetized 
benefits and total annualized compliance costs) are estimated to be -
$39 million in 2021 in 2016 dollars using a 3 percent interest rate and 
-$46 million using a 7 percent interest rate.\133\ More in-depth 
information on costs and benefits, including non-monetized or 
quantified benefits, of the final regulation can be found in the 
RIA.\134\ We are seeking comment on the cost assumptions used in our 
RIA, including comments and information supporting higher or lower cost 
estimates. Specifically, the EPA is requesting comment on the capital 
costs of routing a glycol dehydrator and/or pneumatic pump to an 
existing combustor.
---------------------------------------------------------------------------

    \132\ The recordkeeping and reporting costs calculated for the 
ICR analysis, discussed earlier, are imbedded in the total 
annualized engineering costs included here.
    \133\ The RIA in the docket for this rulemaking discusses this 
calculation in detail.
    \134\ The RIA includes a more detailed discussion of the 
potential costs and benefits associated with this rule. It can be 
viewed in the docket for this rulemaking (Docket ID No. EPA-R08-OAR-
2015-0709).
---------------------------------------------------------------------------

3. Effects on National Economy
    The EPA estimated the labor impacts due to compliance with the 
proposed rule for affected entities within the oil and natural gas 
sector, including the installation, operation, and maintenance of 
control equipment and control activities, as well as the labor 
associated with new reporting and recordkeeping requirements. We did 
not estimate any potential changes in labor outside of the affected 
sector, and due to data and methodology limitations we did not estimate 
net employment impacts for the affected sector, apart from the partial 
estimate of the labor requirements related to control strategies. The 
labor requirements analysis used a bottom-up engineering-based 
methodology to estimate employment impacts. The engineering cost 
analysis of the RIA includes estimates of the labor requirement costs 
associated with implementing the regulations. Each of these labor 
changes may be required as part of an initial effort to comply with the 
new regulation.
4. Regulatory Alternatives
    Alternate regulatory options examined in the RIA include a low-
impact option (Option 1) and a high-impact option (Option 3). The 
Option 1 requirements would be like Option 2; however, they would not 
include control of emissions from glycol dehydrators. Additionally, 
Option 1 would require implementation of LDAR at sources with a gas-to-
oil ratio (GOR) of greater than or equal to 300, that produce on 
average, greater than 15-barrel equivalents per well per day. This is 
in contrast to proposed Option 2, which would require implementation of 
an LDAR program at sources that are required to control storage tank, 
glycol dehydrator, and pneumatic pump VOC emissions per proposed 
Sec. Sec.  49.4173 through 49.4177. The EPA could have considered a 
range of even less stringent regulatory options than Option 1 to 
evaluate and propose, including an option that would not require 
retrofit of existing storage tanks with controls or requires controls 
less broadly. Retrofitting existing tanks with controls is one of the 
higher costs evaluated in this proposed rulemaking. Such an option, 
however, would lead to even greater disparity with the requirements for 
similar sources in Utah jurisdiction in the Basin than the current 
Option 1. However, we are seeking comment on whether it is appropriate 
to consider a less stringent option that does not include retrofitting 
existing storage tanks for controls, recognizing that if comments 
support it as a viable regulatory option and if the agency proposes to 
adopt that option, the EPA may be required to hold an additional public 
comment period on this rulemaking. Option 3 (high impact) would require 
implementation of an LDAR program at all existing oil and natural gas 
sources, regardless of throughput, or tank, dehydrator, and pneumatic 
pump annual VOC emissions.
    This proposed U&O FIP results in estimated annualized costs of $60 
million in 2021 using a 3 percent

[[Page 3525]]

interest rate, resulting in a cost of control of $3,000 per ton of the 
estimated 20,000 tons of VOC reduced, and -annualized costs of $68 
million using a 7 percent interest rate, resulting in a cost of control 
of $3,400 per ton of the estimated 20,000 tons of VOC reduced.
    The annualized costs of the first option (Option 1) would be $43 
million in 2021 using a 7 percent discount rate, resulting in a cost of 
control of $3,300 per ton of the estimated 13,000 tons of VOC reduced, 
and $38 million in 2021 using a 3 percent discount rate, resulting in a 
cost of control of $2,900 per ton of VOC reduced. Option 1 was analyzed 
to reduce burden on small entities, while still achieving VOC emissions 
reductions. Although this option would cost less overall than proposed 
Option 2, it would achieve significantly less benefits in the form of 
VOC emissions reductions (13,000 tons versus 20,000 tons for proposed 
Option 2), because emissions from glycol dehydrators would not be 
controlled and a smaller number of storage tanks would be controlled, 
because the VOC emissions threshold triggering control would be 
different than Option 2.\135\ Additionally, by not controlling glycol 
dehydrator emissions in Option 1, there would also be significantly 
less benefits from the associated reductions in HAP emissions that are 
more reactive in forming ozone than the lighter-end VOC emissions 
resulting from storage tanks, pneumatic pumps and fugitive emissions. 
Implementation of Option 1 would also lead to regulatory requirements 
that are inconsistent with the requirements for equivalent sources in 
UDEQ jurisdiction, thus not meeting our goal of regulatory consistency 
across the Uinta Basin.
---------------------------------------------------------------------------

    \135\ Under Option 1, the EPA would determine the four tpy 
threshold triggering control with combined source-wide VOC emissions 
from storage tanks and pneumatic pumps only.
---------------------------------------------------------------------------

    The annualized costs of Option 3 would be $79 million in 2021 using 
a 7 percent discount rate, resulting in a cost of control of $3,500 per 
ton of the estimated 23,000 tons of VOC reduced, and $71 million in 
2021 using a 3 percent discount rate, resulting in a cost of control of 
$3,100 per ton of VOC reduced. Option 3 was analyzed to achieve a 
greater level of VOC emissions reductions. Although this option would 
achieve about 3,000 more tons of VOC emissions reductions than proposed 
Option 2, it would also result in increases in costs. Additionally, 
Option 3 would lead to regulatory requirements that are inconsistent 
with the requirements for equivalent sources in UDEQ jurisdiction, thus 
not meeting our goal of regulatory consistency across the Uinta Basin.
    For a more in-depth analysis of these options, see the RIA for this 
proposed U&O FIP.

F. Executive Order 13132: Federalism

    This proposed action 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.

G. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This proposed action has tribal implications. However, it will 
neither impose substantial direct compliance costs on federally 
recognized tribal governments, nor preempt tribal law. The EPA has 
conducted outreach on this proposed rule consistent with the EPA Policy 
on Consultation and Coordination with Indian Tribes (May 4, 2011) via 
ongoing monthly meetings with tribal environmental professionals \136\ 
before and during the development of this proposed action, and further 
as follows: (1) Via Tribal consultation with the Ute Indian Tribe 
Business Committee regarding options that the EPA could consider to 
address the Uinta Basin air quality concerns; (2) via stakeholder 
meetings where the Tribe was included and participated in emissions 
contributions discussions specific to the EPA's strategy for addressing 
the Uinta Basin air quality concerns; and (3) via ongoing stakeholder 
working group meetings convened by the Ute Indian Tribe Business 
Committee where the EPA participated in discussions with the Tribe and 
industrial operators on strategies to reduce existing ozone-related 
emissions and provide a streamlined construction authorization 
mechanism for new and modified minor oil and natural gas sources given 
the recent nonattainment designation for the 2015 ozone NAAQS.
---------------------------------------------------------------------------

    \136\ These monthly meetings are general in nature, dealing with 
many air-related topics, and are not specific to this proposed U&O 
FIP.
---------------------------------------------------------------------------

    The EPA held consultations with elected officials of the Ute Indian 
Tribe Business Committee on the following dates: July 22, 2015; 
December 17, 2016; November 13, 2017; March 22, 2018, August 17, 2018; 
November 14, 2018; and February 28, 2019. The EPA has also participated 
in tribally convened stakeholder meetings on March 22, 2017 and June 1-
2, 2017.
    During the consultation discussions on this proposed U&O FIP, the 
Tribe expressed concerns regarding their economic needs to develop and 
generate revenue from Tribal oil and natural gas resources; to consider 
air quality effects on the health, safety, and welfare concerns of 
their tribal membership living within the exterior boundaries of the 
U&O Reservation and the Uinta Basin; and to balance regulatory 
requirements for an even economic and regulatory playing field.\137\ We 
addressed questions the Tribe had regarding the controls being 
considered, the ability for owners or operators to take credit for the 
controls for purposes such as permitting and NAAQS attainment, the 
estimated costs of proposed controls, the characterization of Indian 
country, and the breadth of oil and natural gas source category types 
proposed to be regulated. The Ute-Tribe-convened stakeholder meetings 
involved discussions on appropriate ways to expedite nonattainment 
permitting for new and modified minor oil and natural gas sources on 
the U&O Reservation. Ute Indian Tribe and industry participants 
recognized that existing source emissions reductions would likely be 
necessary in order for the EPA to demonstrate that construction 
authorization for new and modified sources would not cause or 
contribute to NAAQS violations in the nonattainment area.
---------------------------------------------------------------------------

    \137\ The records of communication for all consultations and 
preliminary discussions with the Ute Indian Tribe are included in 
the docket for this rulemaking (Docket ID No. EPA-R08-OAR-2015-
0709).
---------------------------------------------------------------------------

    Enacting a FIP for the U&O Reservation is directly responsive to 
the Ute Indian Tribe's air quality concerns in that we are proposing to 
implement our CAA authority to protect air quality on and surrounding 
Indian country lands within the U&O Reservation in a manner that 
provides regulatory consistency with respect to requirements for oil 
and natural gas sources on adjacent lands regulated by the state in the 
Basin. We are committed to supporting tribes' right to self-governance 
and to protecting their inherent sovereignty. We will continue to 
provide outreach to tribal environmental professionals and continue 
consultation with tribal leadership on this proposed action.

H. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    This action is subject to Executive Order 13045 because it is an

[[Page 3526]]

economically significant regulatory action as defined by Executive 
Order 12866 and the EPA has concluded that the environmental health or 
safety risks addressed by this proposed action have a disproportionate 
effect on children. This action's health and risk assessments are 
contained in the Purpose, Air Quality Review, Benefits and Costs, and 
Executive Order 12898: Federal Actions to Address Environmental Justice 
in Minority Populations and Low Income Populations sections in this 
preamble (sections II., IV.G., IV.I., and VI.J., respectively), with 
more detailed information contained in the RIA for this 
rulemaking.\138\ In fact, this proposed U&O FIP should have a positive 
effect on the health of the residents of the U&O Reservation, including 
children, as it is expected to result in a reduction in ambient ozone 
concentrations, which disproportionately impact children, elderly, and 
those with respiratory ailments.
---------------------------------------------------------------------------

    \138\ The RIA includes more detailed discussions of the health 
and risk assessments for this rule and can be viewed in the docket 
for this rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not a ``significant energy action'' as defined in 
Executive Order 13211,\139\ because it is not likely to have a 
significant adverse effect on the supply, distribution, or use of 
energy. The basis for these determinations follows.
---------------------------------------------------------------------------

    \139\ See 66 FR 28355 (May 22, 2001).
---------------------------------------------------------------------------

    This proposed action was determined to be a significant regulatory 
action that was submitted to the OMB for review under Executive Order 
12866. Any changes made in response to the OMB recommendations have 
been documented in the docket. The EPA prepared an analysis of the 
potential costs and benefits associated with this proposed action, 
which is included in the RIA,\140\ and is summarized in Section IV.I. 
Benefits and Costs of the Proposed Rule.
---------------------------------------------------------------------------

    \140\ The RIA includes a more detailed discussion of the 
potential costs and benefits associated with this rule. It can be 
viewed in the docket for this rulemaking (Docket ID No. EPA-R08-OAR-
2015-0709).
---------------------------------------------------------------------------

    We have concluded that, while this action may have some effects on 
the supply, distribution, or use of energy, it is not likely to have 
significant adverse energy effects. Most owners/operators of existing 
oil and natural gas production sources on the U&O Reservation also 
operate sources on non-Indian country lands within and outside of the 
U&O Reservation, where they are already required to employ the 
emissions control technologies required by this proposed U&O FIP. 
Additionally, we expect that these owners/operators will also operate 
new and modified sources in the Uinta Basin that are subject to similar 
NSPS OOOO and OOOOa, NESHAP HH, and other oil and natural gas sector-
related control requirements within the Uinta Basin. Therefore, it is 
expected that the owners/operators will continue to procure necessary 
control equipment and supplies from the same suppliers they currently 
use for non-Indian country existing, new or modified sources. Further, 
only the higher-producing sources are expected to be subject to the 
more substantive emission control requirements in this proposed U&O 
FIP, and those sources are more likely to be able to accommodate the 
additional costs, so it is not expected that the new requirements alone 
would factor significantly into decisions to slow or halt production 
and thereby cause a shortfall in supply. Rather, the prices of oil and 
natural gas are likely to be a more significant factor in decisions on 
reducing production from existing sources, and prices are not expected 
to change appreciably over from 2020 to 2025.\141\
---------------------------------------------------------------------------

    \141\ The RIA includes more detailed information on oil and 
natural gas prices. It can be viewed in the docket for this 
rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    Additionally, this proposed U&O FIP establishes several emissions 
control standards that give regulated entities flexibility in 
determining how to best comply with the regulation. Even within the 
geographically and economically homogeneous affected area within the 
Uinta Basin, this flexibility is an important factor in reducing 
regulatory burden. For more information on the estimated energy effects 
of the proposed rule, please see the RIA, which is in the docket for 
this proposed rule.

J. National Technology Transfer and Advancement Act (NTTAA)

    Section 12(d) of the National Technology Transfer and Advancement 
Act of 1995 (NTTAA), 15 U.S.C. 272 note, directs the EPA to use 
voluntary consensus standards (VCS) in its regulatory activities unless 
to do so would be inconsistent with applicable law or otherwise 
impractical. VCS are technical standards, which include materials 
specifications, test methods, sampling protocols, business practices 
and management systems developed or adopted by voluntary consensus 
standards bodies (VCSB), both domestic and international. These bodies 
plan, develop, establish or coordinate voluntary consensus standards 
using agreed-upon procedures.
    This action involves technical standards. Therefore, the EPA 
conducted a search to identify potentially applicable VCS. However, the 
Agency identified no such standards.\142\ Therefore, the EPA has 
decided to use EPA Methods 21 and 22 of 40 CFR part 60, appendix A-7 
and part 63, appendix A.\143\
---------------------------------------------------------------------------

    \142\ ``Voluntary Consensus Standard Results for Federal 
Implementation Plan for Managing Emissions from Oil and Natural Gas 
Sources on the Uintah and Ouray Indian Reservation in Utah,'' 
Memorandum from Steffan Johnson, Group Leader, U.S. EPA, Measurement 
Technology Group, to Deirdre Rothery, Unit Chief Air Permitting and 
Monitoring Unit, U.S. EPA Region 8 Air Program, dated December 22, 
2017, available in the Docket for this proposed rule (Docket ID No. 
EPA-R08-OAR-2015-0709).
    \143\ The EPA Reference Methods 21 and 22 can be accessed at 
https://www.ecfr.gov/cgi-bin/ECFR?page=browse (Search Title 40, Part 
60 and Part 63, accessed August 21, 2019.
---------------------------------------------------------------------------

K. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA concludes that this action does not have disproportionately 
high and adverse human health or environmental effects on minority 
populations, low-income populations, and/or indigenous peoples, as 
specified in Executive Order 12898.\144\
---------------------------------------------------------------------------

    \144\ See 59 FR 7629 (February 16, 1994).
---------------------------------------------------------------------------

    The documentation for this decision is contained in the RIA \145\ 
for this proposed rule. Our objective in developing this proposed rule 
is to protect the communities in and near Indian country lands within 
the U&O Reservation, where existing oil and natural gas operations have 
been shown to contribute to exceedances of the ozone NAAQS. The impacts 
of this proposed rule are expected to be beneficial, rather than 
adverse, and its benefits are expected to accrue to communities in and 
near Indian country lands within the U&O Reservation. As explained in 
Section IV.F., the EPA has quantified the expected emissions impacts 
from this proposed action and found that the proposed action will 
result in large reductions of VOC emissions.
---------------------------------------------------------------------------

    \145\ The RIA includes a more detailed discussion of the 
environmental justice analysis for this rule. It can be viewed in 
the docket for this rulemaking (Docket ID No. EPA-R08-OAR-2015-
0709).
---------------------------------------------------------------------------

    This proposed action will also provide regulatory certainty to 
owners/operators, by imposing, to the extent

[[Page 3527]]

appropriate, requirements that are the same as or consistent with those 
applicable to such existing sources that are regulated by the UDEQ in 
the Uinta Basin because they are not on Indian country lands within the 
Reservation. This will ensure that air quality is protected 
consistently across the Uinta Basin and our Environmental Justice (EJ) 
analysis that can be found in the RIA for this rulemaking supports the 
conclusion that this action will not result in disproportionate 
impacts.

List of Subjects in 40 CFR Part 49

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Indians, Indians-law, Indians-tribal government, 
Intergovernmental relations, Reporting and recordkeeping requirements.

    Dated: December 16, 2019.
Gregory Sopkin,
Regional Administrator, Region 8.
    For reasons set forth in the preamble, part 49 of title 40 of the 
Code of Federal Regulations is proposed to be amended as follows:

PART 49--INDIAN COUNTRY: AIR QUALITY PLANNING AND MANAGEMENT

0
1. The authority citation for part 49 continues to read as follows:

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

0
2. Add the undesignated center heading ``Federal Implementation Plan 
for Managing Emissions from Oil and Natural Gas Sources on the Indian 
Country Lands Within the Uintah and Ouray Indian Reservation in Utah'' 
and Sec. Sec.  49.4169 through 49.4185 to subpart K to read as follows:
Subpart K--Implementation Plans for Tribes--Region VIII
* * * * *

Federal Implementation Plan for Managing Emissions From Oil and Natural 
Gas Sources on the Indian Country Lands Within the Uintah and Ouray 
Indian Reservation in Utah

Sec.
49.4169 Introduction.
49.4170 Delegation of authority of administration to the tribe.
49.4171 General provisions.
49.4172 Emissions inventory.
49.4173 Nonattainment requirements for new or modified true minor 
oil and natural gas sources.
49.4174 VOC emissions control requirements for storage tanks.
49.4175 VOC emissions control requirements for dehydrators.
49.4176 VOC emissions control requirements for pneumatic pumps.
49.4177 VOC emissions control requirements for covers and closed-
vent system.
49.4178 VOC emissions control devices.
49.4179 VOC emissions control requirements for fugitive emissions.
49.4180 VOC emissions control requirements for tank truck loading.
49.4181 VOC emissions control requirements for pneumatic 
controllers.
49.4182 Other combustion devices.
49.4183 Monitoring requirements.
49.4184 Recordkeeping requirements.
49.4185 Notification and reporting requirements.


Sec.  49.4169  Introduction.

    (a) What is the purpose of Sec. Sec.  49.4169 through 49.4185? 
Sections 49.4169 through 49.4185 establish legally and practicably 
enforceable requirements for oil and natural gas sources to address 
ozone air quality. Section 49.4170 establishes provisions for 
delegation of authority to allow the Ute Indian Tribe to assist the EPA 
with administration of this proposed U&O FIP. Section 49.4171 contains 
general provisions and definitions applicable to oil and natural gas 
sources. Section 49.4173 establishes legally and practicably 
enforceable requirements to control and reduce emissions of volatile 
organic compounds (VOC), nitrogen oxides, sulfur dioxide, particulate 
matter (PM, PM10 and PM2.5), hydrogen sulfide, 
carbon monoxide and various sulfur compounds from new and modified true 
minor oil and natural gas sources in the oil and natural gas production 
and natural gas processing segments of the oil and natural gas sector 
that are located on portions of the U&O Reservation that are included 
in the Uinta Basin ozone nonattainment area and commence construction 
on or after [30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE 
FEDERAL REGISTER], unless the source obtains a site-specific 
construction permit, or is otherwise required to obtain a site-specific 
permit by the Reviewing Authority, in accordance with 40 CFR 49.151 
through 49.161. Sections 49.4174 through 49.4185 establish legally and 
practicably enforceable requirements to control and reduce VOC 
emissions from oil and natural gas well production and storage 
operations, natural gas processing, and gathering and boosting 
operations at oil and natural gas sources (as defined in Sec.  
49.4171(b)) that are located on Indian country lands within the U&O 
Reservation.
    (b) Am I subject to Sec. Sec.  49.4169 through 49.4185? Sections 
49.4169 through 49.4185, as appropriate, apply to each owner or 
operator of an oil and natural gas source located on Indian country 
lands within the U&O Reservation that has equipment or activities that 
meet the applicability thresholds specified in each section. Generally, 
the equipment and activities at oil and natural gas sources that are 
already subject to and in compliance with VOC emission control 
requirements under another EPA standard or other federally enforceable 
requirement, as specified in each appropriate subsection later, are 
considered to be in compliance with the requirements to control VOC 
emissions from that same equipment under this proposed U&O FIP.
    (c) When must I comply with Sec. Sec.  49.4169 through 49.4185? 
Compliance with Sec. Sec.  49.4169 through 49.4171 and 49.4174 through 
49.4185, as applicable, is required no later than [DATE 18 MONTHS AFTER 
DATE OF PUBLICATION OF THE FINAL RULE IN THE FEDERAL REGISTER] for oil 
and natural gas sources that commence construction before [DATE OF 
PUBLICATION OF THE FINAL RULE IN THE FEDERAL REGISTER]. You may submit 
a written request to the EPA for an extension of the compliance date 
for existing sources that describes the specific reasons for the 
requested extension. Any decision to approve or deny the request, 
including the length of time of an approved request, will be based on 
the determined merits of case-specific circumstances. Compliance with 
Sec. Sec.  49.4169 through 49.4171 and 49.4174 through 49.4185, as 
applicable, is required upon startup for oil and natural gas sources 
that commence construction on or after [DATE OF PUBLICATION OF THE 
FINAL RULE IN THE FEDERAL REGISTER]. Compliance with Sec.  49.4173 is 
required upon commencing construction of any new and modified true 
minor oil and natural gas source in the oil and natural gas production 
and natural gas processing segments of the oil and natural gas sector 
that is located on portions of the U&O Reservation that are included in 
the Uinta Basin ozone nonattainment area that commences construction on 
or after [30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE 
FEDERAL REGISTER].


Sec.  49.4170  Delegation of authority of administration to the tribe.

    (a) What is the purpose of this section? The purpose of this 
section is to establish the process by which the Regional Administrator 
may delegate to the Ute Indian Tribe the authority to assist the EPA 
with administration of this proposed U&O FIP. This section provides for 
administrative delegation and does not affect the eligibility criteria

[[Page 3528]]

under 40 CFR 49.6 for treatment in the same manner as a state.
    (b) How does the Ute Indian Tribe request delegation? In order to 
be delegated authority to assist us with administration of this 
proposed U&O FIP, the authorized representative of the Ute Indian Tribe 
must submit a written request to the Regional Administrator that:
    (1) Identifies the specific provisions for which delegation is 
requested;
    (2) Includes a statement by the Ute Indian Tribe's legal counsel 
(or equivalent official) that includes the following information:
    (i) A statement that the Ute Indian Tribe is an Indian tribe 
recognized by the Secretary of the Interior;
    (ii) A descriptive statement that meets the requirements of Sec.  
49.7(a)(2) and demonstrates that the Ute Indian Tribe is currently 
carrying out substantial governmental duties and powers over a defined 
area;
    (iii) A description of the laws of the Ute Indian Tribe that 
provide adequate authority to carry out the aspects of the rule for 
which delegation is requested; and
    (3) Demonstrates that the Ute Indian Tribe has, or will have, 
adequate resources to carry out the aspects of the rule for which 
delegation is requested.
    (c) How is the delegation of administration accomplished? (1) A 
Delegation of Authority Agreement setting forth the terms and 
conditions of the delegation and specifying the provisions of this rule 
that the Ute Indian Tribe will be authorized to implement on behalf of 
the EPA will be entered into by the Regional Administrator and the Ute 
Indian Tribe. The Agreement will become effective upon the date that 
both the Regional Administrator and the authorized representative of 
the Ute Indian Tribe have signed the Agreement. Once the delegation 
becomes effective, the Ute Indian Tribe will be responsible, to the 
extent specified in the Agreement, for assisting us with administration 
of the FIP and will act as the Regional Administrator as that term is 
used in these regulations. Any Delegation of Authority Agreement will 
clarify the circumstances in which the term ``Regional Administrator'' 
found throughout the FIP is to remain the EPA Regional Administrator 
and when it is intended to refer to the ``Ute Indian Tribe,'' instead.
    (2) A Delegation of Authority Agreement may be modified, amended, 
or revoked, in part or in whole, by the Regional Administrator after 
consultation with the Ute Indian Tribe.
    (d) How will any Delegation of Authority Agreement be publicized? 
The Agency will publish a notice in the Federal Register informing the 
public of any Delegation of Authority Agreement with the Ute Indian 
Tribe to assist us with administration of all or a portion of the FIP 
and identifying such delegation in the FIP. The Agency will also 
publish an announcement of the Delegation of Authority Agreement in 
local newspapers.


Sec.  49.4171  General provisions.

    (a) At all times, including periods of startup, shutdown, and 
malfunction, each owner or operator must, to the extent practicable, 
design, operate, and maintain all equipment used for hydrocarbon liquid 
and gas collection, storage, processing, and handling operations 
covered under Sec. Sec.  49.4171 and 49.4174 through 49.4185, 
regardless of emissions rate and including associated air pollution 
control equipment, in a manner that is consistent with good air 
pollution control practices and that minimizes leakage of VOC emissions 
to the atmosphere.
    (b) Definitions. As used in Sec. Sec.  49.4169 through 49.4185, all 
terms not defined herein have the meaning given them in the Act, in 40 
CFR part 60, 40 CFR part 63, in the Prevention of Significant 
Deterioration regulations at 40 CFR 52.21, in the Federal Minor New 
Source Review Program in Indian Country at 40 CFR 49.151, or in the 
Federal Implementation Plan for Managing Air Emissions from True Minor 
Sources in Indian Country in the Oil and Natural Gas Production and 
Natural Gas Processing Segments of the Oil and Natural Gas Sector at 40 
CFR 49.102. The following terms have the specific meanings given them:
    Bottom filling means the filling of a tank through an inlet at or 
near the bottom of the tank designed to have the opening covered by the 
liquid after the pipe normally used to withdraw liquid can no longer 
withdraw any liquid.
    Condensate means hydrocarbon liquid separated from produced natural 
gas that condenses due to changes in temperature, pressure, or both, 
and that remains liquid at standard conditions.
    Crude oil means hydrocarbon liquids that are separated from well-
extracted reservoir fluids during oil and natural gas production 
operations, and that are stored or injected to pipelines as a saleable 
product. Condensate is not considered crude oil.
    Electronically controlled automatic ignition device means an 
electronic device which generates sparks across an electrode and 
reaches into a combustible gas stream traveling up a flare stack or 
entering an enclosed combustor, at the point of the pilot tip, equipped 
with a temperature monitor that signals the device to attempt to re-
light an extinguished pilot flame.
    Enclosed combustor means a thermal oxidation system with an 
enclosed combustion chamber that maintains a limited constant 
temperature by controlling fuel and combustion air.
    Flashing losses means natural gas emissions resulting from the 
presence of dissolved natural gas in the crude oil, condensate, or 
produced water, which are under high pressure that occurs as the 
liquids are transferred to storage tanks that are at atmospheric 
pressure.
    Fugitive emissions component means any component that has the 
potential to emit fugitive emissions of VOC at an oil and natural gas 
source, such as valves, connectors, pressure relief devices, open-ended 
lines, access doors, flanges, closed-vent systems, covers, thief 
hatches or other openings on a controlled storage vessel, compressors, 
instruments, and meters. Devices that vent as part of normal 
operations, such as natural gas-driven pneumatic controllers or natural 
gas-driven pumps, are not fugitive emissions components, insofar as the 
natural gas discharged from the device's vent is not considered a 
fugitive emission. Emissions originating from other than the vent, such 
as the thief hatch on a controlled storage vessel, would be considered 
fugitive emissions.
    Glycol dehydration unit process vent emissions means VOC-containing 
emissions from the glycol dehydration unit regenerator or still vent 
and the vent from the dehydration unit flash tank (if present).
    Malfunction alarm and remote notification system means a system 
connected to an electronically controlled automatic ignition device 
that sends an alarm through a remote notification system to an owner or 
operator's central control center, if an attempt to relight the pilot 
flame is unsuccessful.
    Pneumatic pump means a single diaphragm pump powered by pressurized 
natural gas.
    Pneumatic pump emissions means the VOC-containing emissions from 
pressurized natural gas-driven pneumatic pumps.
    Produced natural gas means natural gas that is separated from 
extracted reservoir fluids during oil and natural gas production 
operations.
    Regional Administrator means the Regional Administrator of EPA 
Region 8 or an authorized representative of the Regional Administrator 
of EPA Region

[[Page 3529]]

8, except to the extent otherwise specifically specified in a 
Delegation of Authority Agreement between the Regional Administrator 
and the Ute Indian Tribe.
    Standing and breathing losses means VOC emissions from fixed roof 
tanks as a result of evaporative losses during storage.
    Storage tank means a tank or other vessel that contains an 
accumulation of crude oil, condensate, intermediate hydrocarbon 
liquids, or produced water, and that is constructed primarily of non-
earthen materials (such as wood, concrete, steel, fiberglass, or 
plastic), which provide structural support.
    Submerged fill pipe means any fill pipe with a discharge opening 
which is entirely submerged when the liquid level is six inches above 
the bottom of the tank and the pipe normally used to withdraw liquid 
from the tank can no longer withdraw any liquid.
    Supervisory Control and Data Acquisition (SCADA) system generally 
refers to industrial control computer systems that monitor and control 
industrial infrastructure or source-based processes.
    Unsafe to repair means (in the context of fugitive emissions 
monitoring) that operator personnel would be exposed to an imminent or 
potential danger as a consequence of the attempt to repair the leak 
during normal operation of the source.
    Utility flare means a thermal oxidation system using an open 
(without enclosure) flame that is designed and operated in accordance 
with the requirements of 40 CFR 60.18(b). An enclosed combustor is not 
considered a utility flare. A combustion device is not considered a 
utility flare when installed horizontally or vertically within an open 
pit and often used in oil and natural gas operations to combust 
produced natural gas during initial well completion or temporarily 
during emergencies when enclosed combustors or utility flares installed 
at a source are not operational or injection of recovered produced 
natural gas is unavailable.
    Visible smoke emissions mean air pollution generated by thermal 
oxidation in a flare or enclosed combustor and occurring immediately 
downstream of the flame present in those units. Visible smoke occurring 
within, but not downstream of, the flame, does constitute visible smoke 
emissions.
    Working losses means natural gas emissions from fixed roof tanks 
resulting from evaporative losses during filling and emptying 
operations.


Sec.  49.4172  Emissions inventory.

    (a) Applicability. The emissions inventory requirements of this 
section apply to each oil and natural gas source as identified in Sec.  
49.4169(b), and that has actual emissions of any pollutant identified 
in paragraph (c) of this section greater than or equal to one ton in 
any consecutive 12-month period.
    (b) Each oil and natural gas source shall submit an inventory for 
every third year, beginning with the 2017 calendar year, for all 
emission units at a source.
    (c) The inventory shall include the total emissions for 
PM10, PM2.5, oxides of sulfur, oxides of 
nitrogen, carbon monoxide and volatile organic compounds for each 
emissions unit at the source. Emissions for the emissions unit at the 
source shall be calculated using the emissions unit's actual operating 
hours, product rates and types of materials processed, stored or 
combusted during the calendar year of the reporting period.
    (d) The inventory shall include the type and efficiency of any air 
pollution control equipment present at the reporting source.
    (e) The inventory shall be submitted to the EPA Region 8 Office no 
later than April 15th of the year following each inventory year, except 
that the first inventory covering calendar year 2017 shall be submitted 
no later than October 1, 2018.
    (f) The inventory shall be submitted in an electronic format 
specific to this source category that is available on the EPA Region 8 
Office website at https://www.epa.gov/air-quality-implementation-plans/approved-air-quality-implementation-plans-region-8.


Sec.  49.4173  Compliance with the National Indian Country Oil and 
Natural Gas Federal Implementation Plan for New and Modified True Minor 
Oil and Natural Gas Sources in the Uinta Basin Ozone Nonattainment 
Area.

    (a) Applicability. This section applies to each owner or operator 
of a new and modified true minor source in the oil and natural 
production and natural gas processing segments of the oil and natural 
gas source sector that is located on portions of the U&O Reservation 
that are included in the Uinta Basin ozone nonattainment area and that 
commences construction on or after [30 DAYS AFTER DATE OF PUBLICATION 
OF THE FINAL RULE IN THE FEDERAL REGISTER]. Owners/operators of such 
sources shall comply with the requirements of the Federal 
Implementation Plan for Managing Air Emissions from True Minor Sources 
in Indian Country in the Oil and Natural Gas Production and Natural Gas 
Processing Segments of the Oil and Natural Gas Sector at 49.101 through 
49.105, as applicable, except for Sec.  49.101(b)(1)(v), and, 
applicable requirements of the Federal Minor New Source Review Program 
in Indian Country at 40 CFR 49.151 through 49.161.
    (b) Complying with the requirements of Sec.  49.4173(a) does not 
relieve the owner/operator from the obligation to comply with the 
requirements of Sec. Sec.  49.4169 through 49.4171 and 49.4174 through 
49.4185, as applicable.


Sec.  49.4174  VOC emissions control requirements for storage tanks.

    (a) Applicability. The VOC emissions control requirements of this 
section apply to each crude oil, condensate, and/or produced water 
storage tank located at an oil and natural gas source as identified in 
Sec.  49.4169(b) that meets the criteria in one of paragraphs (1) 
through (4):
    (1) At an oil and natural gas source that began operations before 
[30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE FEDERAL 
REGISTER], the source-wide uncontrolled actual VOC emissions from all 
storage tanks, glycol dehydrators, and pneumatic pumps is equal to or 
greater than 4 tpy, as determined according to this section;
    (2) At an oil and natural gas source that began operations on or 
after [30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE 
FEDERAL REGISTER], upon startup of operation, for a minimum of 12 
consecutive calendar months;
    (3) At an oil and natural gas source that began operations before 
[30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE FEDERAL 
REGISTER], with one or more storage tanks and no glycol dehydrators or 
pneumatic pumps, the source-wide throughput is equal to or greater than 
8,000 barrels of crude oil or 2,000 barrels of condensate in any 
consecutive 12-month period; or
    (4) Modification to an oil and natural gas source shall require a 
re-evaluation of the source-wide VOC emissions from all storage tanks, 
glycol dehydrators and pneumatic pumps or the source-wide crude oil or 
condensate throughput.
    (b) Exemptions. (1) This section does not apply to crude oil, 
condensate, and/or produced water storage tanks located at an oil and 
natural gas source that are subject to the emissions control 
requirements for storage vessels in 40 CFR part 60, subparts OOOO or 
OOOOa, or 40 CFR part 63, subpart HH.
    (2) This section does not apply to an emergency storage tank 
located at an oil

[[Page 3530]]

and natural gas source, if it meets the following requirements:
    (i) The emergency storage tank is not used as an active storage 
tank;
    (ii) The owner or operator empties the emergency storage tank no 
later than 15 days after receiving fluids; and
    (iii) The emergency storage tank is equipped with a liquid level 
gauge or equivalent device.
    (c) VOC emission control requirements. For each storage tank, you 
must comply with the VOC emissions control requirements of paragraphs 
(1) or (2) of this section.
    (1) You must reduce VOC emissions from each storage tank by at 
least 95.0 percent on a continuous basis according to paragraphs 
(c)(1)(i) or (ii) of this section. You must route all flashing, 
working, standing and breathing losses from the crude oil, condensate, 
and/or produced water storage tanks through a closed-vent system that 
meets the conditions specified in Sec.  49.4177(d) to:
    (i) An operating system designed to recover 100 percent of the 
emissions and recycle them for use in a process unit or incorporate 
them into a product; or
    (ii) An enclosed combustor or utility flare designed to reduce the 
mass content of VOC in the natural gas emissions vented to the device 
by at least 95.0 percent and operated as specified in Sec. Sec.  
49.4177(d) and 49.4178;
    (2) You must maintain the source-wide uncontrolled actual VOC 
emissions from all storage tanks, glycol dehydrators, and pneumatic 
pumps at an oil and natural gas source at less than 4 tpy. Before using 
the uncontrolled actual VOC emission rate for compliance purposes, you 
must demonstrate that the uncontrolled actual VOC emissions have 
remained at less than 4 tpy, as determined monthly for 12 consecutive 
months. After such demonstration, you must determine the uncontrolled 
actual VOC emission rate each month. The uncontrolled actual VOC 
emissions must be calculated using a generally accepted model or 
calculation methodology. Monthly calculations must be based on the 
average throughput of the source for the month. Monthly calculations 
must be separated by at least 14 days. You must comply with paragraph 
(c)(1) of this section within 30 days of the monthly emissions 
determination required in this section if the determination indicates 
that VOC emissions from all storage tanks, glycol dehydrators, and 
pneumatic pumps at your oil and natural gas source increased to 4 tpy 
or greater.
    (3) Except as provided in paragraph (c)(4) of this section, if you 
use a control device to reduce emissions from your storage tanks, you 
must equip each storage tank with a cover that meets the requirements 
of Sec.  49.4177(c).
    (4) If you use a floating roof to reduce emissions, you must meet 
the requirements of Sec.  60.112b(a)(1) or (2) and the relevant 
monitoring, inspection, recordkeeping, and reporting requirements in 40 
CFR part 60, subpart Kb.
    (5) After a minimum of 12 consecutive months of operation at a 
source that begins operation on or after [30 DAYS AFTER DATE OF 
PUBLICATION OF THE FINAL RULE IN THE FEDERAL REGISTER], controls may be 
removed under one of the following conditions:
    (i) The source-wide uncontrolled actual VOC emissions from all 
storage tanks, glycol dehydrators, and pneumatic pumps has been 
maintained at a rate less than 4 tpy, as determined according to this 
section; or
    (ii) At a source with one or more storage tanks and no glycol 
dehydrators or pneumatic pumps, the source-wide throughput is less than 
8,000 barrels of crude oil or 2,000 barrels of condensate.


Sec.  49.4175  VOC emissions control requirements for dehydrators.

    (a) Applicability. The VOC emissions control requirements of this 
section apply to each glycol dehydration unit located at an oil and 
natural gas source as identified in Sec.  49.4169(b) where the source-
wide uncontrolled actual VOC emissions from all storage tanks, glycol 
dehydrators, and pneumatic pumps is equal to or greater than 4 tpy, as 
determined according to Sec.  49.4174. Applicability for glycol 
dehydrators that began operation before [30 DAYS AFTER DATE OF 
PUBLICATION OF THE FINAL RULE IN THE FEDERAL REGISTER] shall be 
determined using uncontrolled actual emissions. Applicability for 
glycol dehydrators that began operation on or after [30 DAYS AFTER DATE 
OF PUBLICATION OF THE FINAL RULE IN THE FEDERAL REGISTER] shall be 
determined using potential to emit.
    (b) Exemptions. This section does not apply to glycol dehydration 
units subject to with the emissions control requirements for glycol 
dehydration unit process vents in 40 CFR, part 63, subpart HH.
    (c) VOC emissions control requirements. For each glycol dehydration 
unit, you must comply with the VOC emissions control requirements of 
paragraphs (1) or (2) of this paragraph.
    (1) You must reduce VOC emissions from each glycol dehydration unit 
process vent by at least 95.0 percent on a continuous basis according 
to paragraphs (c)(1)(i) and (ii) of this section. You must route all 
glycol dehydration unit process vent emissions through a closed-vent 
system that meets the conditions specified in Sec.  49.4177(d) to:
    (i) An operating system designed to recover 100 percent of the 
emissions and recycle them for use in a process unit or incorporate 
them into a product; or
    (ii) An enclosed combustor or utility flare designed to reduce the 
mass content of VOC in the emissions vented to the device by at least 
95.0 percent and operated as specified in Sec. Sec.  49.4177(d) and 
49.4178; or
    (2) You must maintain the source-wide uncontrolled actual VOC 
emissions from all storage tanks, glycol dehydrators, and pneumatic 
pumps at an oil and natural gas source at less than 4 tpy for 12 
consecutive months in accordance with the procedures specified in Sec.  
49.4174(c)(2).


Sec.  49.4176  VOC emissions control requirements for pneumatic pumps.

    (a) Applicability. The requirements of this section apply to each 
pneumatic pump located at an oil and natural gas source as identified 
in Sec.  49.4169(b) where the potential for source-wide uncontrolled 
VOC emissions from all storage tanks, glycol dehydrators, and pneumatic 
pumps is equal to or greater than 4 tpy, as determined according to 
Sec.  49.4174. You must reevaluate the source-wide VOC emissions from 
all storage tanks, glycol dehydrators and pneumatic pumps for each 
modification to an existing source.
    (b) Exemptions. This section does not apply to pneumatic pumps 
subject to the emissions control requirements for pneumatic pumps in 40 
CFR part 60, subpart OOOOa.
    (c) VOC Emission Control Requirements. For each pneumatic pump, you 
must comply with the VOC emissions control requirements of paragraph 
(1) or (2) of this section.
    (1) You must reduce VOC emissions from each pneumatic pump by at 
least 95.0 percent on a continuous basis according to paragraph 
(c)(1)(i) or (ii) of this section. You must route all pneumatic pump 
emissions through a closed-vent system that meets the conditions 
specified in Sec.  49.4177(d) to:
    (i) An operating system designed to recover 100 percent of the 
emissions and recycle them for use in a process unit or incorporate 
them into a product; or
    (ii) An enclosed combustor or utility flare designed to reduce the 
mass

[[Page 3531]]

content of VOC in the emissions vented to the device by at least 95.0 
percent and operated as specified in Sec. Sec.  49.4177(d) and 49.4178; 
or
    (2) You must maintain the source-wide uncontrolled actual VOC 
emissions from all storage tanks, glycol dehydrators, and pneumatic 
pumps at an oil and natural gas source at less than 4 tpy for any 12 
consecutive months in accordance with the procedures specified in Sec.  
49.4174(c)(2).


Sec.  49.4177  VOC emissions control requirements for covers and 
closed-vent systems.

    (a) Applicability. The VOC emissions control requirements in this 
section apply to each cover on a crude oil, condensate or produced 
water storage tank subject to Sec.  49.4174 and each closed-vent system 
used to convey VOC emissions from storage tanks, glycol dehydration 
units and pneumatic pumps (to a vapor recovery system or control 
device) that are subject to Sec. Sec.  49.4174 through 49.4176.
    (b) Exemptions. This section does not apply to covers and closed-
vent systems subject to the requirements for covers and closed-vent 
systems in 40 CFR part 60, subparts OOOO or OOOOa, or 40 CFR part 63, 
subpart HH.
    (c) Covers. Each owner or operator must equip all openings on each 
crude oil, condensate, and/or produced water storage tank with a cover 
to ensure that all flashing, working, standing and breathing emissions 
are routed through a closed-vent system to a vapor recovery system, an 
enclosed combustor, or a utility flare.
    (1) Each cover and all openings on the cover (e.g., access hatches, 
sampling ports, pressure relief valves (PRV), and gauge wells) must 
form a continuous impermeable barrier over the entire surface area of 
the crude oil, condensate, and/or produced water in the storage tank.
    (2) Each cover opening must be secured in a closed, sealed position 
(e.g., covered by a gasketed lid or cap) whenever material is in the 
unit on which the cover is installed except when it is necessary to use 
an opening as follows:
    (i) To add fluids to, or remove fluids from the unit (this includes 
openings necessary to equalize or balance the internal pressure of the 
unit following changes in the level of the material in the unit);
    (ii) To inspect or sample the fluids in the unit; or
    (iii) To inspect, maintain, repair, or replace equipment located 
inside the unit.
    (3) Each thief hatch cover must be weighted and properly seated to 
ensure that flashing, working, standing and breathing emissions are 
routed through the closed-vent system to the vapor recovery system, the 
enclosed combustor, or the utility flare under normal operating 
conditions.
    (4) Each PRV must be set to release at a pressure that will ensure 
that flashing, working, standing and breathing emissions are routed 
through the closed-vent system to the vapor recovery system, the 
enclosed combustor, or the utility flare under normal operating 
conditions.
    (d) Closed-vent systems. Each owner or operator must meet the 
following requirements for closed-vent systems:
    (1) Each closed-vent system must route all captured storage tank 
flashing, working, standing and breathing losses, glycol dehydration 
unit process vent emissions, and pneumatic pump emissions from the oil 
and natural gas source to a gathering pipeline system for sale, use in 
a process unit, incorporation into a product, or other beneficial 
purpose, or to a VOC emission control device, as specified in 
Sec. Sec.  49.4174 through 49.4176.
    (2) All vent lines, connections, fittings, valves, relief valves, 
or any other appurtenance employed to contain and collect captured 
storage tank flashing, working, standing and breathing losses, glycol 
dehydration unit process vent emissions, and pneumatic pump emissions 
to transport such emissions to a gathering pipeline system for sale, 
use in a process unit, incorporation into a product, or other 
beneficial purpose, or to a VOC emission control device, as specified 
in Sec. Sec.  49.4174 through 49.4176, must be maintained and operated 
properly at all times.
    (3) Each closed-vent system must be designed to operate with no 
detectable emissions, as demonstrated by the fugitive emissions 
component monitoring requirements in Sec.  49.4179(c).
    (4) If any closed-vent system contains one or more bypass devices 
that could be used to divert all or a portion of the captured storage 
tank flashing, working, standing and breathing losses, glycol 
dehydration unit process vent emissions, and pneumatic pump emissions, 
from entering a gathering pipeline system for sale, use in a process 
unit, incorporation into a product, or other beneficial purpose, or 
from being transferred to the VOC emissions control device, the owner 
or operator must meet one of the requirements in paragraphs (i) or (ii) 
for each bypass device. Low leg drains, high point bleeds, analyzer 
vents, open-ended valves or lines, and safety devices are not subject 
to the requirements applicable to bypass devices:
    (i) At the inlet to such a bypass device the owner or operator must 
properly install, calibrate, maintain, and operate a flow indicator 
that is capable of taking continuous readings and sounding an alarm 
when the bypass device is open such that emissions are being, or could 
be, diverted away from a gathering pipeline system for sale, use in a 
process unit, incorporation into a product, or other beneficial 
purpose, or the VOC emission control device and into the atmosphere; or
    (ii) The owner or operator must secure the bypass device valve 
installed at the inlet to the bypass device in the non-diverting 
position using a car-seal or a lock-and-key type configuration.


Sec.  49.4178  VOC emissions control devices.

    (a) Applicability. The requirements in this section apply to all 
utility flares and enclosed combustors used to control VOC emissions at 
an oil and natural gas source as identified in Sec.  49.4169(b) in 
order to meet the requirements specified in Sec. Sec.  49.4174 through 
49.4177, as applicable.
    (b) Exemptions. This section does not apply to VOC emission control 
devices subject to the requirements for control devices used to comply 
with the emissions standards in 40 CFR part 60, subparts OOOO or OOOOa; 
or 40 CFR part 63, subpart HH.
    (c) Enclosed combustors and utility flares. Each owner or operator 
must meet the following requirements for enclosed combustors and 
utility flares:
    (1) For each enclosed combustor or utility flare, the owner or 
operator must follow the manufacturer's written operating instructions, 
procedures and maintenance schedule to ensure good air pollution 
control practices for minimizing emissions;
    (2) The owner or operator must ensure that each enclosed combustor 
or utility flare is designed to have sufficient capacity to reduce the 
mass content of VOC in the captured emissions routed to it by at least 
95.0 percent for the minimum and maximum natural gas volumetric flow 
rate and BTU content routed to the device;
    (3) Each enclosed combustor or utility flare must be operated to 
reduce the mass content of VOC in the captured emissions routed to it 
by continuously meeting at least 95.0 percent VOC control efficiency;
    (4) The owner or operator must ensure that each utility flare is 
designed and operated in accordance with the

[[Page 3532]]

requirements of 40 CFR 60.18(b) for such flares;
    (5) The owner or operator must ensure that each enclosed combustor 
is:
    (i) A model demonstrated by a manufacturer to meet the VOC control 
efficiency requirements of Sec. Sec.  49.4174 through 49.4177 using the 
EPA-approved performance test procedures specified in 40 CFR 60.5413 by 
the due date of the first annual report as specified in Sec.  
49.4185(b); and
    (ii) Demonstrated by the owner or operator to meet the VOC control 
efficiency requirements of Sec. Sec.  49.4174 through 49.4177 using the 
EPA-approved performance test procedures specified in 40 CFR 60.5413 by 
the due date of the first annual report as specified in Sec.  
49.4183(b); and
    (6) The owner or operator must ensure that each enclosed combustor 
and utility flare is:
    (i) Operated properly at all times that captured emissions are 
routed to it;
    (ii) Operated with a liquid knock-out system to collect any 
condensable vapors (to prevent liquids from going through the control 
device);
    (iii) Equipped and operated with a flash-back flame arrestor;
    (iv) Equipped and operated with one of the following:
    (A) A continuous burning pilot; or
    (B) An operational electronically controlled automatic ignition 
device;
    (v) Equipped with a monitoring system for continuous measuring and 
recording of the parameters that indicate proper operation of each 
continuous burning pilot flame or electronically controlled automatic 
ignition device (such as a chart recorder, data logger or similar 
device), or connected to a SCADA system, to monitor and document proper 
operation of the enclosed combustor or utility flare;
    (vi) Maintained in a leak-free condition; and
    (vii) Operated with no visible smoke emissions.


Sec.  49.4179  Fugitive emissions VOC emissions control requirements.

    (a) Applicability. The requirements of this section apply to all 
owners or operators of the collection of fugitive emissions components, 
as defined in Sec.  49.4171, at an oil and natural gas source, as 
identified in Sec.  49.4169(b), that is required to control VOC 
emissions according to Sec. Sec.  49.4174 through 49.4178.
    (b) Exemptions. This section does not apply to owners or operators 
of the collection of fugitive emission components, as defined in 40 CFR 
60.5430a, at an oil and natural gas source subject to the fugitive 
emissions monitoring requirements in 40 CFR part 60, subpart OOOOa.
    (c) Monitoring requirements. (1) Each owner or operator must 
develop and implement a fugitive emissions monitoring plan to reduce 
emissions from fugitive emissions components at all of their oil and 
natural gas sources on Indian country lands within the U&O Reservation. 
This Reservation-wide monitoring plan must include the following 
elements:
    (i) A requirement to perform an initial monitoring of the 
collection of fugitive emissions components at each oil and natural gas 
source by [DATE 18 MONTHS AFTER DATE OF PUBLICATION OF THE FINAL RULE 
IN THE FEDERAL REGISTER];
    (ii) A requirement to perform subsequent monitoring of the 
collection of fugitive emissions components at each oil and natural gas 
source once every 6 months after the initial monitoring survey, with 
consecutive monitoring surveys conducted at least five months apart.
    (iii) A description of the technique used to identify leaking 
fugitive emission components, which must be limited to:
    (A) Onsite EPA Reference Method 21, 40 CFR part 60, appendix A, 
where an analyzer reading of 500 parts per million volume (ppmv) VOC or 
greater is considered a leak in need of repair;
    (B) Onsite optical gas imaging instruments, as defined in 40 CFR 
60.18(g)(4), where any visible emissions are considered a leak in need 
of repair, unless the owner or operator evaluates the leak with an 
analyzer meeting EPA Reference Method 21 at 40 CFR part 60, appendix A 
and the concentration is less than 500 ppmv. The optical gas imaging 
instrument must be capable of meeting the optical gas imaging equipment 
requirements specified in 40 CFR part 60, subpart OOOOa; or
    (C) Another method approved by the Administrator other than EPA 
Reference Method 21 or optical gas imaging instruments to demonstrate 
compliance with the fugitive emissions monitoring requirements.
    (iv) The manufacturer and model number of any fugitive emissions 
monitoring device to be used;
    (v) Procedures and timeframes for identifying and repairing 
components from which leaks are detected, including:
    (A) A requirement to repair any leaks identified from components 
that are safe to repair and do not require source shutdown as soon as 
practicable, but no later than 30 calendar days after discovering the 
leak;
    (B) Timeframes for repairing leaking components that are unsafe to 
repair or require source shutdown, to be no later than the next 
required monitoring event; and
    (C) Procedures for verifying leaking component repairs, no more 
than 30 calendar days after repairing the leak;
    (vi) Training and experience needed before performing surveys;
    (vii) Procedures for calibration and maintenance of any fugitive 
emissions monitoring device to be used; and
    (viii) Standard monitoring protocols for each type of typical oil 
and natural gas source (e.g., well site, tank battery, compressor 
station), including a general list of component types that will be 
inspected and what supporting data will be recorded (e.g., wind speed, 
detection method device-specific operational parameters, date, time, 
and duration of inspection).
    (2) The owner or operator is exempt from inspecting a valve, 
flange, or other connection, pump or compressor, pressure relief 
device, process drain, open-ended valve, pump or compressor seal system 
degassing vent, accumulator vessel vent, agitator seal, or access door 
seal under any of the following circumstances:
    (i) The contacting process stream only contains glycol, amine, 
methanol, or produced water;
    (ii) If using Method 21, the monitoring could not occur without 
elevating the monitoring personnel to an immediate danger as a 
consequence of completing monitoring;
    (iii) Monitoring could not occur without exposing monitoring 
personnel to an immediate danger as a consequence of completing 
monitoring; or
    (iv) The item to be inspected is buried, insulated in a manner that 
prevents access to the components by a monitor probe or optical gas 
imaging device, or obstructed by equipment or piping that prevents 
access to the components by a monitor probe or optical gas imaging 
device.


Sec.  49.4180  Tank truck loading VOC emissions control requirements.

    (a) Applicability. The requirements in this section apply to each 
owner or operator who loads or permits the loading of any intermediate 
hydrocarbon liquid or produced water at an oil and natural gas source 
as identified in Sec.  49.4169(b).
    (b) Tank truck loading requirements. Tank trucks used for 
transporting intermediate hydrocarbon liquid or produced water must be 
loaded using bottom filling or a submerged fill pipe, as defined in 
Sec.  49.4171(b).

[[Page 3533]]

Sec.  49.4181  VOC emissions control requirements for pneumatic 
controllers.

    (a) Applicability. The VOC emissions control requirements in this 
section apply to each owner or operator of any existing pneumatic 
controller located at an oil and natural gas source as identified in 
Sec.  49.4169(b).
    (b) Exemptions. This section does not apply to pneumatic 
controllers subject to and controlled in accordance with the 
requirements for pneumatic controllers in 40 CFR part 60, subparts OOOO 
or OOOOa.
    (c) Retrofit requirements. All existing pneumatic controllers must 
meet the standards established for pneumatic controllers that are 
constructed, modified, or reconstructed on or after October 15, 2013, 
as specified in 40 CFR part 60, subpart OOOO Standards of Performance 
for Crude Oil and Natural Gas Production, Transmission and 
Distribution.
    (d) Documentation requirements. The owner or operator of any 
existing pneumatic controllers must meet the tagging requirements in 40 
CFR 60.5390(b)(2) and (c)(2) and 40 CFR 60.5390a(b)(2) and (c)(2), 
except that the month and year of installation, reconstruction or 
modification is not required.


Sec.  49.4182  Other combustion devices.

    (a) Applicability. The VOC emission control requirements in this 
section apply to each owner or operator of any existing enclosed 
combustor, utility flare, or other flare located at an oil and natural 
gas source as identified in Sec.  49.4169(b) that is used to control 
VOC emissions, but is not required under Sec. Sec.  49.4174 through 
49.4176, and 49.4178 of this rule.
    (b) Retrofit requirements. All existing enclosed combustors, 
utility flares, or other open flares must be equipped with an 
operational electronically controlled automatic ignition device.


Sec.  49.4183  Monitoring requirements.

    (a) Applicability. The monitoring requirements in paragraphs (c) 
through (e) of this section apply, as appropriate, to each oil and 
natural gas source as identified in Sec.  49.4169(b) with equipment or 
activities that are subject to Sec. Sec.  49.4174 through 49.4178.
    (b) Exemptions. Paragraphs (c) through (e) do not apply to any 
crude oil, condensate, or produced water storage tanks, glycol 
dehydration units, pneumatic pumps, covers, closed-vent systems or VOC 
emission control devices subject to and monitored in accordance with 
the monitoring requirements for such equipment and activities in 40 CFR 
part 60, subparts OOOO or OOOOa, or 40 CFR part 63, subpart HH.
    (c) Each owner or operator must inspect at least once every 
calendar month each closed-vent system, including storage tank 
openings, thief hatches, and bypass devices, for defects that can 
result in air emissions according to the procedures in 40 CFR 
60.5416(c).
    Any defects identified must be corrected or repaired within 15 days 
of identification.
    (d) Each owner or operator must perform auditory, visual, and 
olfactory (AVO) inspections at least once every calendar month of each 
VOC emissions control device, tank thief hatch, cover, seal, pressure 
relief valve, and closed-vent system to ensure proper condition and 
functioning of the equipment. The monthly inspections must be performed 
while the crude oil, condensate, and produced water storage tanks are 
being filled. If any of the components are not in good working 
condition, they must be repaired within 15 days of identification of 
the deficient condition.
    (e) Each owner or operator must monitor the operation of each 
enclosed combustor and utility flare to confirm proper operation and 
demonstrate compliance with the requirements of Sec.  49.4178(c)(6)(iv) 
and (v), as follows:
    (1) Check the system for proper operation whenever an operator is 
on site, at least once per calendar month; and
    (2) Respond to any indication of pilot flame failure and ensure 
that the pilot flame is relit as soon as practically and safely 
possible after discovery.;
    (3) Demonstrate compliance with the requirements of Sec.  
49.4178(c)(6)(vii), that each enclosed combustor is operated with no 
visible smoke emissions, by complying with the requirements in 40 CFR 
60.5412(d)(i) through (iii).
    (f) Where sufficient to meet the monitoring requirements in this 
section, the owner or operator may use a SCADA system to monitor and 
record the required data in paragraphs (c) through (d).


Sec.  49.4184  Recordkeeping requirements.

    (a) Each owner or operator of an oil and natural gas source as 
identified in Sec.  49.4169(b) must maintain the following records, as 
applicable:
    (1) For each oil and natural gas source as identified in Sec.  
49.4169(b):
    (i) As applicable, the monthly calculations, as specified in Sec.  
49.4174(c)(2), demonstrating that the uncontrolled actual VOC emissions 
from all storage tanks, glycol dehydrators, and pneumatic pumps at an 
oil and natural gas source, as identified in Sec.  49.4169(b), has been 
maintained at less than 4 tpy;
    (ii) As applicable, records of monthly and rolling 12-month crude 
oil or condensate throughput;
    (iii) For each enclosed combustor or utility flare at an oil and 
natural gas source required under Sec. Sec.  49.4174 through 49.4178:
    (A) Manufacturer-written, site-specific designs, operating 
instructions, operating procedures and maintenance schedules, including 
those of any operation monitoring systems;
    (B) Date of installation;
    (C) Records of all required monitoring of operations in Sec.  
49.4183;
    (D) Records of any instances in which the pilot flame is not 
present or the monitoring equipment is not functioning in the enclosed 
combustor or utility flare, the date and times of the occurrence, the 
corrective actions taken, and any preventative measures adopted to 
prevent recurrence of the occurrence; and
    (E) Records of any time periods in which visible smoke emissions 
are observed emanating from the enclosed combustor or utility flare.
    (iv) For each closed-vent system:
    (A) The date of installation; and
    (B) Records of any instances in which any closed-vent system or 
control device was bypassed or down, the reason for each incident, its 
duration, and the corrective actions taken, and any preventative 
measures adopted to avoid such bypasses or downtimes; and
    (v) Documentation of all storage tank and closed-vent system 
inspections required in Sec.  49.4183(d) and (e) All inspection records 
must include the following information:
    (A) The date of the inspection;
    (B) The findings of the inspection;
    (C) Any adjustments or repairs made as a result of the inspection, 
and the date of the adjustment or repair; and
    (D) The inspector's name and signature;
    (vi) The Uinta Basin-wide fugitive emissions monitoring plan for 
the U&O Reservation; and
    (vii) Documentation of each fugitive emissions inspection at all 
oil and natural gas sources. All inspection records must include the 
following information:
    (A) The date of the inspection;
    (B) The identification of any component that was determined to be 
leaking;
    (C) The identification of any component not exempt under Sec.  
49.4179(b)(2) that is not inspected and the reason it was not 
inspected;
    (D) The date of the first attempt to repair the leaking component;

[[Page 3534]]

    (E) The identification of any component with a delayed repair and 
the reason for the delayed repair:
    (1) For unavailable parts:
    (i) The date of ordering a replacement component; and
    (ii) The date the replacement component was received; and
    (2) For a shutdown:
    (i) The reason the repair is technically infeasible;
    (ii) The date of the shutdown;
    (iii) The date of subsequent startup after a shutdown; and
    (iv) Emission estimates of the shutdown and the repair if the delay 
is longer than 6 months;
    (F) The date and description of any corrective action taken, 
including the date the component was verified to no longer be leaking;
    (G) The identification of each component exempt under Sec.  
49.4179(b)(2), including the type of component and a description of the 
qualifying exemption; and
    (H) The inspector's name and signature.
    (2) For each oil and natural gas source as identified in Sec.  
49.4169(b):
    (i) For each electronically controlled automatic ignition system 
required under Sec.  49.4182, records demonstrating the date of 
installation and manufacturer specifications; and
    (ii) For each retrofitted pneumatic controller, the records 
required in 40 CFR 60.5420(c)(4)(i).
    (b) Each owner or operator must keep all records required by this 
section onsite at the source or at the location that has day-to-day 
operational control over the source and must make the records available 
to the EPA upon request.
    (c) Each owner or operator must retain all records required by this 
section for a period of at least five years from the date the record 
was created.


Sec.  49.4185  Notification and reporting requirements.

    (a) Each owner or operator must submit any documents required under 
this rule to: U.S. EPA Region 8, Enforcement and Compliance Assurance 
Division, Air Toxics and Enforcement Branch, 8ENF-AT, 1595 Wynkoop St., 
Denver, CO 80202, or documents may be submitted electronically to 
[email protected].
    (b) Each owner and operator must submit an annual report containing 
the information specified in paragraphs (b)(1) through (3) of this 
section. The annual report must cover the period for the previous 
calendar year. The initial annual report is due within fifteen months 
of [DATE 30 DAYS AFTER DATE OF PUBLICATION OF THE FINAL RULE IN THE 
FEDERAL REGISTER]. Subsequent annual reports are due on the same date 
each year as the date the initial annual report was submitted. If you 
own or operate more than one oil and natural gas source, you may submit 
one report for multiple oil and natural gas sources provided the report 
contains all of the information required as specified in paragraphs 
(b)(1) through (3) of this section. Annual reports may coincide with 
title V reports as long as all the required elements of the annual 
report are included. An alternative schedule on which the annual must 
be submitted will be allowed as long as the schedule does not extend 
the reporting period. The annual report must include:
    (1) The owner or operator name, and the name and location (decimal 
degree latitude and longitude location indicating the datum used in 
parentheses) of each oil and natural gas source being included in the 
annual report.
    (2) The beginning and ending dates of the reporting period.
    (3) For each oil and natural gas source a summary of all required 
records specified in Sec.  49.4183 as they relate to the source's 
compliance with the requirements of Sec. Sec.  49.4174 through 49.4183.

[FR Doc. 2019-27431 Filed 1-17-20; 8:45 am]
BILLING CODE 6560-50-P