ALL4 and Schnader Harrison Segal & Lewis LLP presented at the 2013 Pennsylvania Independent Oil and Gas Association (PIOGA) Winter Meeting on February 13, 2013 about the top 10 air quality issues that the oil and gas industry should be mindful of in 2013.

1. TOP 10 AIR QUALITY ISSUES FOR THE
OIL AND GAS INDUSTRY IN 2013

2. Agenda
• Well Completion Requirements of 40 CFR Part 60 Subpart OOOO -
Standards of Performance for Crude Oil and Natural Gas Production,
Transmission and Distribution
• Final Revisions to Pennsylvania General Permit (GP-5) - Natural Gas
Production and/or Processing Facilities
• 40 CFR Part 98 Subpart W - Petroleum and Natural Gas Systems
• Aggregation of Emissions for New Source Review and Title V Applicability
• 40 CFR part 63 Subpart ZZZZ - National Emissions Standards for Hazardous
Air Pollutants for Stationary Reciprocating Internal Combustion Engines
• Proposed Revisions to PADEP Document No. 275-2101-003: Air Quality
Permit Exemptions

3. NSPS RULES FOR
NATURAL GAS WELL COMPLETIONS
Ron Cusano
SCHNADER HARRISON SEGAL &
LEWIS LLP

4. I. Final NSPS and NESHAPS / Oil and
Gas Sector (the “Final Rule”)
A. Promulgated on August 16, 2012 [77 Fed. Reg. 49490
(August 16, 2012)].

5. I. Final NSPS and NESHAPS / Oil and
Gas Sector (the “Final Rule”)
A. Promulgated on August 16, 2012 [77 Fed. Reg. 49490
(August 16, 2012)].
B. NSPS applies to numerous categories of sources in
addition to gas well completions.

6. II. Statutory Authority and
Requirements for NSPS

7. A. Before listing a category of stationary sources
EPA must find that emissions from the source
category cause or contribute significantly to air
pollution which endangers public health or welfare.
Section 111(b)(1)(A) of the Clean Air Act (the “CAA”
or “Act”); 42 U.S.C. §7411(b)(1)(A).

8. B. Best System of Emission Reduction (“BSER”):
BSER must be cost effective and must have been adequately
demonstrated. Section 111(a)(1), 42 U.S.C. §7411(a)(1).

9. III. Well Completion Rules
A. PaDEP Proposed Revisions to Plan Approval and
Operating Permit Exemption List (42 Pa.B. 742) February 2, 2013
B. Applicability and Definitions (Well Completion
Rules)

10. 1. Apply to every gas well affected facility that is fractured or refractured
after October 15, 2012. (40 C.F.R. §60.5375).

11. 1. Apply to every gas well affected facility that is fractured or refractured
after October 15, 2012. (40 C.F.R. §60.5375).
2. “Gas well affected facility … is a single natural gas well”. (40 C.F.R.
§60.5365).

12. 1. Apply to every gas well affected facility that is fractured or refractured
after October 15, 2012. (40 C.F.R. §60.5375).
2. “Gas well affected facility … is a single natural gas well”. (40 C.F.R.
§60.5365).
3. “Gas well” or “natural gas well” - “an on-shore well drilled principally
for production of natural gas”. (40 C.F.R. §60.5430).

13. 1. Apply to every gas well affected facility that is fractured or refractured
after October 15, 2012. (40 C.F.R. §60.5375).
2. “Gas well affected facility … is a single natural gas well”. (40 C.F.R.
§60.5365).
3. “Gas well” or “natural gas well” - “an on-shore well drilled principally
for production of natural gas”. (40 C.F.R. §60.5430).
4. Apply to conventionally drilled gas wells.

14. 1. Apply to every gas well affected facility that is fractured or refractured
after October 15, 2012. (40 C.F.R. §60.5375).
2. “Gas well affected facility … is a single natural gas well”. (40 C.F.R.
§60.5365).
3. “Gas well” or “natural gas well” - “an on-shore well drilled principally
for production of natural gas”. (40 C.F.R. §60.5430).
4. Apply to conventionally drilled gas wells.
5. “Delineation well” - “a well drilled in order to determine the
boundary of a field or producing reservoir.” (40 C.F.R. §5430).

15. 6. “Wildcat well” - “a well outside known fields or the first well drilled
in an oil or gas field where no other oil and gas production exists.” (40 C.F.R.
§5430).

16. 6. “Wildcat well” - “a well outside known fields or the first well drilled
in an oil or gas field where no other oil and gas production exists.” (40 C.F.R.
§5430).
7. “Low pressure gas well” “means a well with reservoir pressure and
vertical well depth such that 0.445 times the reservoir pressure (in psia) minus
0.038 times the vertical well depth (in feet) minus 67.578 psia is less than the
flow line pressure at the sales meter.” (40 C.F.R. §60.5430).

17. 6. “Wildcat well” - “a well outside known fields or the first well drilled
in an oil or gas field where no other oil and gas production exists.” (40 C.F.R.
§5430).
7. “Low pressure gas well” “means a well with reservoir pressure and
vertical well depth such that 0.445 times the reservoir pressure (in psia) minus
0.038 times the vertical well depth (in feet) minus 67.578 psia is less than the
flow line pressure at the sales meter.” (40 C.F.R. §60.5430).
8. Reduced emissions completion means gas that would otherwise be
vented must be captured, cleaned and directed to the flowline, re-injected
into the well or another well, used on-site as a fuel source, or used for other
useful purpose without emission to the atmosphere. (40 C.F.R. §60.5430).

18. B. Standards
There are three subcategories of gas well affected facilities for purposes of the regulation. They are wildcat,
delineation and low pressure wells fractured or refractured after October 15, 2012; all other gas wells
fractured or refractured prior to January 1, 2015; and all other gas wells fractured or refractured after
January 1, 2015. (77 Fed. Reg. 49497).
Well Category Completion Requirements
Wildcat, delineation and low pressure wells Route emissions to completion combustion device
fractured or refractured after October 15, 2012 [40 C.F.R. §60.5375(f)].
Other gas wells fractured or refractured prior to Route emissions to completion combustion device
January 1, 2015 [40 C.F.R. §60.5375(a)(3) and (4)].
Gas wells fractured or refractured after January Use REC and route emissions to completion combustion device
1, 2015 [40 C.F.R. §60.5375(a)(1)-(4)].

19. 1. Do the well completion requirements meet BSER?

20. 1. Do the well completion requirements meet BSER?
2. Exception to flaring which applies, “in conditions that may result in a
fire hazard or explosion or where high heat emissions from a completion
combustion device may negatively impact tundra, permafrost or waterways”.
[40 C.F.R. §60.5375(a)(3)].

21. 1. Do the well completion requirements meet BSER?
2. Exception to flaring which applies, “in conditions that may result in a
fire hazard or explosion or where high heat emissions from a completion
combustion device may negatively impact tundra, permafrost or waterways”.
[40 C.F.R. §60.5375(a)(3)].
3. Owners and operators also have “a general duty to safely maximize
resource recovery and minimize releases to the atmosphere during flowback
and subsequent recovery." [40 C.F.R. §60.5375(a)(4)].

22. 1. Do the well completion requirements meet BSER?
2. Exception to flaring which applies, “in conditions that may result in a
fire hazard or explosion or where high heat emissions from a completion
combustion device may negatively impact tundra, permafrost or waterways”.
[40 C.F.R. §60.5375(a)(3)].
3. Owners and operators also have “a general duty to safely maximize
resource recovery and minimize releases to the atmosphere during flowback
and subsequent recovery." [40 C.F.R. §60.5375(a)(4)].
4. Is there a duty to cut trees to remove the risk of fire?

23. C. Other Requirements
1. Owners and operators of gas wells “must submit annual reports
containing the information specified in …” the regulations. [40 C.F.R.
§60.5420(b)].

24. C. Other Requirements
1. Owners and operators of gas wells “must submit annual reports
containing the information specified in …” the regulations. [40 C.F.R.
§60.5420(b)].
2. The annual report must contain “[r]ecords of deviations in cases
where well completion operations with hydraulic fracturing were not
performed in compliance with the requirements specified in §60.5375”. [(40
C.F.R. §60.5420(c)(1)].

25. C. Other Requirements
1. Owners and operators of gas wells “must submit annual reports
containing the information specified in …” the regulations. [40 C.F.R.
§60.5420(b)].
2. The annual report must contain “[r]ecords of deviations in cases
where well completion operations with hydraulic fracturing were not
performed in compliance with the requirements specified in §60.5375”. [(40
C.F.R. §60.5420(c)(1)].
3. Each annual report must contain, “a certification by a responsible
official of truth, accuracy and completeness”. [40 C.F.R. §60.5420(h)(iv)].

26. IV. IPAA and PIOGA Petition for Review and Joinder in Petition
for Administrative Reconsideration
A. On October 15, 2012, IPAA and PIOGA petitioned the United States
Court of Appeals for the District of Columbia Circuit for review of the Final
Rule.

27. IV. IPAA and PIOGA Petitions for Review and Administrative
Reconsideration
A. On October 15, 2012, IPAA and PIOGA petitioned the United States
Court of Appeals for the District of Columbia Circuit for review of the Final
Rule.
B. At the same time, IPAA and PIOGA joined in a pending Petition for
Administrative Reconsideration.
1. The pending Petition sought reconsideration of EPA’s low
pressure well definition as well as other aspects of the Final Rule.

28. C. Petition for Administrative Reconsideration
1. EPA did not sufficiently vet the definition of low pressure well
and adopted the definition without input from Industry.

29. C. Petition for Administrative Reconsideration
1. EPA did not sufficiently vet the definition of low pressure well
and adopted the definition without input from Industry.
2. EPA’s cost benefit analysis is flawed because EPA relied upon
its Natural Gas STAR Program which grossly over-predicted emissions
from well completions.

30. 3. Meeting with EPA.
a. EPA has agreed to meet with IPAA, PIOGA and others
concerning their pending Petition for Administrative Reconsideration.
b. Meeting is expected to occur in the next two to three
months.
c. Jim Elliott of Spillman, Thomas & Battle, PLLC is
coordinating the meeting.
d. Jim has also authored an article which will be appearing in
the next issue of the PIOGA Newsletter detailing the petitions and the
meeting. Persons with information that may be helpful to the cause are
encouraged to submit such information to James D. Elliott (717-791-2012),
jelliott@spilmanlaw.com; or Ron Cusano (412-577-5203),
rcusano@schnader.com.

31. e. Lastly, while these developments are positive I must caution
that EPA may in the end deny the Petition for Reconsideration or grant the
Petition, but decide not to change the Final Rule. Further, even if EPA does
decide to make changes it is doubtful that final action on those changes will
occur any time soon. EPA is currently projecting that final action on any
NSPS Petition for Reconsideration that it grants will not occur before
November of 2014. In the meantime, the current rules remain in effect and
must be complied with.

32. GENERAL PLAN APPROVAL AND/OR GENERAL
OPERATING PERMIT
BAQ-GPA/GP-5
Natural Gas Compression and/or Processing
Facilities
Roy Rakiewicz, All4 Inc.
rrakiewicz@all4inc.com

33. What is a General Permit?
• Authorized by Section 504(d) of the Federal Clean Air Act (CAA),
Section 6.1 of the Pennsylvania Air Pollution Control Act, and 25 Pa.
Code §127.611
• General Permits (GP) may be established
– If PADEP “determines that sources in the category are similar and can
be adequately regulated using standardized specifications and
conditions”
• PADEP has issued multiple General Plan Approvals and General
Operating Permits to specific categories of sources in Pennsylvania
• Benefits include pre-approved conditions and expeditious review
and approval (i.e., 30 days)
• General Permit (GP-5) covers Natural Gas Compression and/or
Processing Facilities
• The use of GP-5 is optional for facilities that meet applicability
criteria

34. Brief History of GP-5
• Previous (original from March 10, 1997) - GP-5
for Natural Gas, Coal Bed Methane, or GOB
Gas Production or Recovery Facilities
• Proposed March 3, 2012 - GP-5 for Natural
Gas Production and/or Processing Facilities
• Final February 2, 2013 - GP-5 for Gas
Compression and/or Processing Facilities

35. GP-5 Review/Revision Process
• Published in March 2012 for public comment
• Significant public interest
• PADEP revised GP-5 in response to numerous public
comments
• Final GP-5 February 2, 2013
• Extensive revisions to final GP-5, several substantial

36. Final GP-5 Exclusions
• Wellheads (proposed new exemption No. 38)
• Sources located at Title V facilities
• Major new source review (NSR) sources
• Engines/turbines used as a “peak shaving engine
generator” or source participating in an Emergency and
Economic Load Response Program
• Any engine or turbine that is used on a natural gas
transmission line
• Cannot limit PTE of individual units

37. Final GP-5 Additions
• All potentially applicable Federal emission
standards
• Natural gas compression/processing facilities
• Equipment (turbines, compressors, pneumatic
devices, sweetening units, etc.)
• $1,700 application fee
• Annual emission limits

38. Federal Standards Incorporated in GP-5
• Standards of Performance for New Stationary Sources (NSPS)
– 40 CFR Part 60, Subpart JJJJ – Internal Combustion Engines (ICE)
– 40 CFR Part 60, Subpart Kb – Liquid Storage Vessels (tanks)
– 40 CFR Part 60, Subpart KKK – Equipment Leaks of VOC
– 40 CFR Part 60, Subpart KKKK – Combustion Turbines
– 40 CFR Part 60, Subpart LLL – Onshore Natural Gas Processing; SO2 Emissions
(Sweetening Units)
– 40 CFR Part 60, Subpart OOOO – Crude Oil and Natural Gas Production, Transmission,
and Distribution
• National Emission Standards for Hazardous Air Pollutants (NESHAP)
– 40 CFR Part 63, Subpart HH – Oil and Natural Gas Production Facilities (glycol
dehydrators)
– 40 CFR Part 63, Subpart ZZZZ – Stationary Reciprocating Internal Combustion Engines
(RICE)

39. Other Key GP-5 Revisions
• Emissions recordkeeping requirements to track actual
emissions on a rolling 12-month basis
• Only two definitions
– Natural gas compression and/or processing facility
– Coal bed methane
• Engine emission limits/testing for PM and SO2 deleted
• Single Source Determination forms required
• Most engine emission limits have been revised (i.e.,
lowered)

40. Why Multiple/Different Standards?
• Pennsylvania regulations require best available
technology (BAT) for new sources
• GP-5 is predominantly for new sources
• BAT can be (and often is) more stringent than
NSPS/NESHAPS limits
• GP-5 includes such emissions limits that PADEP
established as BAT
• NSPS/NESHAP limits do not go away

41. GP-5 Coverage
• Internal Combustion Engines (ICE)
• Combustion Turbines
• Compressors
• Storage Vessels
• Pneumatic Devices
• Natural Gas Processing Operations
• Glycol Dehydrators
• Sweetening Units
• Equipment Leaks/Fugitive Emissions

42. Existing ICE
• Continue to comply with the following emissions
standards:
– 2.0 g NOX /bhp-hr
– 2.0 g CO /bhp-hr
– 2.0 g NMHC /bhp-hr
• Comply with (as applicable):
– 40 CFR Part 60, Subpart JJJJ (NSPS)
– 40 CFR Part 63, Subpart ZZZZ (NESHAP).

43. Lean/Rich Burn ICE < 100 BHP
“Old” GP-5 40 CFR 60 “New” GP-5
Subpart JJJJ BAT
NOX Exempt Combined NOX 2.0 g/hp-hr
and HC limit
CO Exempt 4.85 g/hp-hr 2.0 g/hp-hr
NMNEHC Exempt Combined NOX No Limits
and HC limit
Formaldehyde No Limits No Limits No Limits

44. Lean Burn ICE > 100 < 500 BHP
“Old” GP-5 40 CFR 60 “New” GP-5
Subpart JJJJ BAT
NOX 2.0 g/hp-hr 1.0 g/hp-hr 1.0 g/hp-hr
CO 2.0 g/hp-hr 2.0 g/hp-hr 2.0 g/hp-hr
NMNEHC 2.0 g/hp-hr 0.7 g/hp-hr 0.7 g/hp-hr
Formaldehyde No Limits No Limits No Limits

45. Lean Burn ICE >500 BHP
“Old” GP-5 40 CFR 60 40 CFR 63 “New” GP-5
Subpart JJJJ Subpart ZZZZ BAT
NOX 2.0 g/hp-hr 1.0 g/hp-hr N/A 0.5 g/hp-hr
CO 2.0 g/hp-hr 2.0 g/hp-hr 47 ppmvd @ 47 ppmvd @
15% O2 or 93% 15% O2 or 93%
reduction reduction
NMNEHC 2.0 g/hp-hr 0.7 g/hp-hr N/A 0.25 g/hp-hr
Formaldehyde No Limits No Limits N/A 0.05 g/hp-hr

46. Rich Burn ICE > 100 < 500 BHP
“Old” GP-5 40 CFR 60 “New” GP-5
Subpart JJJJ BAT
NOX 2.0 g/hp-hr 1.0 g/hp-hr 0.25 g/hp-hr
CO 2.0 g/hp-hr 2.0 g/hp-hr 0.3 g/hp-hr
NMNEHC 2.0 g/hp-hr 0.7 g/hp-hr 0.2 g/hp-hr
Formaldehyde No Limits No Limits No Limits

47. Rich Burn ICE >500 BHP
“Old” GP-5 40 CFR 60 40 CFR 63 “New” GP-5
Subpart JJJJ Subpart ZZZZ BAT
NOX 2.0 g/hp-hr 1.0 g/hp-hr N/A 0.2 g/hp-hr
CO 2.0 g/hp-hr 2.0 g/hp-hr N/A 0.3 g/hp-hr
NMNEHC 2.0 g/hp-hr 0.7 g/hp-hr N/A 0.2 g/hp-hr
Formaldehyde No Limits No Limits 2.7 ppmvd @ 2.7 ppmvd @
15% O2 or 76% 15% O2 or 76%
reduction reduction

48. Simple Cycle Turbines <1,000 BHP
• Exempt pursuant to Technical Guidance Document
#275-2101-003

49. Simple Cycle Turbines > 1,000 <5,000 BHP
“Old” GP-5 40 CFR 60 “New” GP-5
Subpart KKKK BAT
NOX N/A 100 ppmvd @ 25 ppmvd @
15% O2 15% O2
CO N/A No Limits 25 ppmvd @
15% O2
NMNEHC N/A No Limits 9 ppmvd @
15% O2
Formaldehyde N/A No Limits No Limits
PM N/A No Limits 0.03
lb/MMBtu

50. Simple Cycle Turbines > 5,000 <15,000 BHP
“Old” GP-5 40 CFR 60 “New” GP-5
Subpart KKKK BAT
NOX N/A 25 to 100 ppmvd 15 ppmvd @
@ 15% O2 15% O2
CO N/A No Limits 25 ppmvd @
15% O2
NMNEHC N/A No Limits 9 ppmvd @
15% O2
Formaldehyde N/A No Limits No Limits
PM N/A No Limits 0.03
lb/MMBtu

51. Simple Cycle Turbines > 15,000 BHP
“Old” GP-5 40 CFR 60 “New” GP-5
Subpart KKKK BAT
NOX N/A 25 to 15 ppmvd 15 ppmvd @
@ 15% O2 15% O2
CO N/A No Limits 10 ppmvd @
15% O2 or 93%
reduction
NMNEHC N/A No Limits 5 ppmvd @
15% O2 or 50%
reduction
Formaldehyde N/A No Limits No Limits
PM N/A No Limits 0.03
lb/MMBtu

52. BAT-Equivalent Incorporated Standards
• Compressors
– 40 CFR Part 60, Subpart OOOO
• Storage Vessels/Storage Tanks
– 40 CFR Part 60, Subpart OOOO
• Pneumatic Devices
– 40 CFR Part 60, Subpart OOOO
• Natural Gas Processing Operations
– 40 CFR Part, 60 Subpart KKK
• Sweetening Units
– 40 CFR Part 60, Subpart LLL

53. Existing Glycol Dehydrators
• Existing glycol dehydrators (authorized to
operate under a previous GP-5)
– Comply with 40 CFR Part 60, Subpart HH
– Comply with the emission standards and other
requirements established in previous GP-5

54. New Glycol Dehydrators
• Located at natural gas compression and/or processing
facilities
– Comply with 40 CFR Part 63, Subpart HH
• Not subject to 40 CFR Part 63, Subpart HH with uncontrolled
PTE of VOC > 5 tpy
– Controlled either by at least 95% with a condenser, a flare or other
air cleaning device
• Not subject to 40 CFR Part 63, Subpart HH with uncontrolled
PTE of VOC < 5 tpy
– Comply with the visible emissions, malodor, and recordkeeping
requirements

55. Equipment Leak Provisions
• Federal equipment leak provisions as applicable
– 40 CFR Part 60, Subparts KKK and OOOO
– 40 CFR Part 63, Subpart HH
• Monthly leak detection and repair program (LDAR)
– Audible, visual, and olfactory (AVO) inspection
• Quarterly LDAR fugitive leak inspection
– Forward looking infrared (FLIR) cameras or
– Other approved devices
• Detected leaks must be repaired:
– As expeditiously as practicable
– But no later than 15 days after detection
• All leaks and associated repairs must be recorded

56. Key Points
• GP-5 is not a comprehensive document
– Applicable NSPS/NESHAP are all incorporated by reference
– Sources will need to be aware of all compliance obligations
• Multiple standards apply
– Standards may differ (e.g., BAT vs. NSPS ICE standards)
– Monitoring, recordkeeping, reporting, and notification
requirements differ
• Completion of single source questionaire required
• GP-5 not applicable to major sources
– Mandatory rolling 12-month emissions tracking to demonstrate
on-going minor source status
• Proceed with caution!

57. Federal Greenhouse Gas (GHG)
Reporting Rule:
40 CFR Part 98, Subpart W
Petroleum and Natural Gas Systems
Meghan Schulz, All4 Inc.
mschulz@all4inc.com

58. Federal GHG Reporting Rule Basics
• First promulgated in 2009; first reporting year 2010
– Subpart W promulgated in 2010; first reporting year 2011
• Frequently amended – now up to Subpart UU
• What is Carbon Dioxide Equivalent (CO2e)?
Pollutant Global Warming Potential (GWP)
n
CO2 e = ∑ GHGi × GWPi
CO2 1
CH4 21
i =1
N2 O 310
• Petroleum & natural gas facilities emitting 25,000+ metric
tons/year CO2e must report

59. From EPA’s “Facility Level Information on GreenHouse gases Tool” (FLIGHT)…
… 46 Pennsylvania facilities reported under Subpart W in 2011.

60. GHG Reporting Rule Basics
• Affected facilities required to develop a GHG Monitoring Plan
• Reporting due by March 31st of each year unless otherwise noted
• Must use EPA’s electronic GHG Reporting Tool (e-GGRT)
– https://ghgreporting.epa.gov/ghg/login.do
– User registration required

61. Subpart W: Petroleum and Natural Gas Systems
Applies to the following industry segments:
• Onshore Petroleum and Natural Gas Production
– All equipment on/associated with a single well-pad
• Onshore Natural Gas Processing
– Separation of natural gas liquids (NGLs) from produced natural gas
• Offshore Petroleum and Natural Gas Production
• Onshore Natural Gas Transmission Compression
• Underground Natural Gas Storage
• Liquefied Natural Gas (LNG) Storage
• LNG Import and Export Equipment
• Natural Gas Distribution

62. RY 2011 Information from EPA’s
“Facility Level Information on
GreenHouse gases Tool” (FLIGHT)

63. Subpart W: Definition of “Facility”
• Facility with respect to onshore petroleum and natural gas production for
purposes of reporting under this subpart and for the corresponding
subpart A requirements means:
– all petroleum or natural gas equipment on a single well-pad or associated with
a single well-pad and CO2 EOR operations that are under common ownership
or common control including leased, rented, or contracted activities by an
onshore petroleum and natural gas production owner or operator and that are
located in a single hydrocarbon basin as defined in § 98.238.
– Where a person or entity owns or operates more than one well in a basin,
then all onshore petroleum and natural gas production equipment associated
with all wells that the person or entity owns or operates in the basin would be
considered one facility.

64. Subpart W: GHGs to be Reported
• Equipment leaks and vented CO2 and CH4
emissions
• CO2, CH4, N2O emissions from flares
• CO2, CH4, and N2O combustion emissions
– Combustion emission calculation methodology
depends on your industry segment

65. Subpart W: Calculating Emissions
Leak Detection and Equipment Count
Engineering Direct
Source Type Estimate Measurement
Leaker Emission and Population
Factor Emission Factor
Natural gas pneumatic device
venting
X
Natural gas driven pneumatic
pump venting
X
Well venting for liquids
unloading
X X
Gas well venting during
completions without X
hydraulic fracturing
Gas well venting during
completions with hydraulic X X
fracturing
Source: EPA’s “Overview of Subpart W” webinar, June 19, 2012

67. Subpart W:
Reporting
• Must download a
Excel Reporting
Form for each
industry segment.

69. ALL4’s GHG Reporting Expertise
• Applicability Analysis
• Monitoring Plans
• Emissions Inventories
• e-GGRT Submittals
• Reporting Follow-up
Thank you!

70. Aggregation of Emissions for New
Source Review and Title V Applicability
Levi Jones
SCHNADER HARRISON SEGAL &
LEWIS LLP

71. “Major Stationary
Source”

72. “Facility” Defined

73. The Wehrum
Memo
January 2007

74. Page 3: “Given the diverse nature of the oil
and gas activities, we believe that proximity
is the most informative factor in making
source determinations for these industries.”
Footnote 16: “In making major
stationary source determinations for
this industry, some southern States
apply a rule that generally results in
separating pollutant-emitting
activities located outside a 1/4 mile
radius.”

75. The Wehrum
Memo
January 2007

76. The Wehrum
Memo
January 2007

77. The McCarthy
Memo
September
2009

78. Page 2: “After conducting the
necessary analysis, it may
be that, in some cases,
‘proximity’ may serve as the
overwhelming factor in a
permitting authority’s source
determination decision.
However, such a conclusion
can only be justified through
reasoned decision making
after examining whether
other factors are relevant to
the analysis.”

79. Summit Petroleum Corporation v. EPA

83. “We conclude that both the dictionary
definition and etymological history of the
term ‘adjacent,’ as well as applicable
case law, support Summit’s position.”
“The EPA does not cite, nor could we locate,
any authority suggesting that the term
‘adjacent’ invokes an assessment of the
functional relationship between two
activities.”
“We are particularly struck by API’s final
observation—that the EPA’s source determination
in this case is an ironic showcase of the very fears
that caused the agency not to adopt a functional
Judge Suhrheinrich relatedness test for source determinations in the
first instance.”

84. The Page
Memo
December
2012

85. “Outside the 6th Circuit, at this time, the EPA does not intend to change its
longstanding practice of considering interrelatedness in the EPA permitting
actions in other jurisdictions.”
8
5

86. Pennsylvania DEP
Guidance
October 2012
8
6

87. Page 7: “The application of
the quarter-mile or less rule of
thumb takes a ‘common
sense approach’ to
determining if sources are
located on adjacent or
contiguous properties and
does not aggregate pollutant-
emitting activities that as a
group would not fit within the
ordinary meaning of ‘building,’
‘structure,’ ‘facility,’ or
‘installation.’”
8
7

88. EPA Comments to
PADEP Guidance
8
8

89. “totally ignores the real
problem, which is that DEP
refuses to aggregate
emissions results. So if there
are 10 compressors right
next to one another, DEP
monitors emissions of each
one separately, even though
the combined emissions of
all 10 are coming in through
State Rep. Jesse White
(D - Washington County) your kitchen window.”
8
9

90. 40 CFR Part 63 Subpart ZZZZ -
RICE MACT
Roy Rakiewicz, All4 Inc.
rrakiewicz@all4inc.com

91. RICE Regulatory Overview
• 40 CFR Part 63, Subpart ZZZZ –
– Regulates existing, new, and reconstructed stationary
RICE, both compression ignition (CI) and spark ignition (SI).
– Section 112 of the CAA, focused on HAP.
• 40 CFR Part 60, Subpart IIII and JJJJ –
– Regulates new, modified, and reconstructed stationary
RICE, compression ignition (CI) (Subpart IIII) and spark
ignition (SI) (Subpart JJJJ).
– Section 111 of the CAA, focused on criteria pollutants.

92. RICE MACT/NSPS History
1/18/2008 – Revised RICE MACT
(New, ≤500 hp, Major 3/3/2010 – Revised RICE MACT 5/3/2013 – CI RICE
and New, All hp, Area) and NSPS (CI) (CI RICE) Compliance Date
2004 … 2008 2009 2010 2011 2012 2013
6/15/2004 – Original RICE MACT 8/20/2010 – Revised RICE MACT TODAY
(New and Existing, >500 hp, Major) NSPS (SI) (SI RICE)
10/19/2013 –SI RICE
Compliance Date

93. What’s a Stationary RICE
• Stationary RICE - not mobile, not non-road.
• Non-road engines are:
– Self-propelled (tractors, bulldozers, etc.) .
– Propelled while performing their function (lawnmowers).
• Portable or transportable (has wheels, on a skid,
cartable, trailer mounted, etc.).
– Portable non-road RICE become stationary if located
onsite more than 12 consecutive months.

94. Key RICE Terms
• SI – Spark Ignition:
– Gas (gasoline, natural gas, propane, landfill gas,
digester gas, etc.)
• Other types of SI RICE:
– 2SLB: 2-stroke lean burn.
– 4SLB: 4 stroke lean burn.
– 4SRB: 4-stroke rich burn.
– LFG/DG: Landfill gas/digester gas.

95. Not Everyone is Impacted
• Area Sources of HAP (i.e., not a major source).
– Comply with RICE MACT, by complying with the NSPS
– Any new or reconstructed (i.e., after June 12, 2006)
RICE at an area source (regardless of capacity)
complies with the RICE MACT by complying with the
NSPS for SI RICE (i.e., 40 CFR Part 60, Subpart JJJJ).

96. Determining Applicability
Facility HAP Status – Area vs. Major Site Rated Capacity – Brake Horsepower
(bhp)
RICE Construction Status – Existing, New, or RICE Fuel Type – CI vs. SI
Reconstructed
Construction Date Fire Pump RICE – Yes/No?
Manufacture Date Peak Saving RICE – Yes/No?
RICE Usage Status – Emergency vs. Historic Operation – Hours Per Year
Nonemergency

97. Potential Requirements
• Emission Limits
– Carbon monoxide (CO) or formaldehyde (CH2O) (or THC as a
substitute for CH2O)
• Notification requirements
• Initial and ongoing testing requirements
• Monitoring, reporting, and recordkeeping requirements
• Fuel requirements
• Work practice standards
• Generally applicable requirements

98. Emission Limits
Existing RICE Located at Area Sources
RICE Type
Nonemergency RICE
Site-Rated
Emergency or
Capacity
CI SI 2SLB SI 4SLB SI 4SRB SI LFG/DG Black Start RICE
Management Management Management
≤300
Practice Standards Practice Standards Practice Standards
CO 49 ppm or Management Management Management
300-500
70% CO Reduction Practice Standards Practice Standards Practice Standards
CO 47 ppm or CH2O 2.7 ppm or
93% CO Reduction 76% CH2O Reduction
CO 23 ppm or
>500
70% CO Reduction

99. Ongoing Compliance
• RICE Subject to an emission limit also subject to:
– Testing Requirements:
• Perform an initial performance test
• Perform subsequent performance tests.
– Operating Limitations:
• Catalyst pressure drop and inlet temperature.
– Related monitoring, reporting, and recordkeeping requirements.
– Notification Requirements.
• Initial notification (due date has passed for existing RICE)
– Compliance reports (semiannual or annual)
– Fuel requirements

100. Ongoing Compliance
 RICE not subject to an emission limit also subject to:
• Work Practice or Management Practice Standards:
 Change oil/air filter, inspect air filter and or spark plugs, hoses/belts at
prescribed operating hour intervals
 Operate/maintain engine per manufacturer’s instructions or owner-
developed maintenance plan
 May use oil analysis program as an alternative to prescribed oil changes
• Records of maintenance.
• No notifications necessary (for the most part)
• Fuel requirement

101. Key Points
• RICE units vulnerable
• Review the RICE MACT and the RICE NSPS
• Know your RICE units
• Determine your key criteria
• Decipher your applicable NESHAP/NSPS
requirements
• Take appropriate action

102. Key Points
• Align your existing maintenance and work
practices with those RICE MACT practices that
apply
– Communicate with RICE maintenance companies
to facilitate this alignment
• Be ready to comply with your SI RICE by
October 19, 2013

103. Proposed Revisions to PADEP
Permit Exemption List
Roy Rakiewicz, All4 Inc.
rrakiewicz@all4inc.com

104. Current Exemption No. 38
• Oil and gas exploration and production facilities and operations that
include wells and associated equipment and processes used either
to: a) drill or alter oil and gas wells; b) extract, process and deliver
crude oil and natural gas to the point of lease custody transfer; c)
plug abandoned wells and restore well sites, or d) treat and dispose
of associated wastes. This includes petroleum liquid storage tanks
which are used to store produced crude oil and condensate prior to
lease custody transfer (Multiple sources within this subcategory
may be exempt from plan approval requirements.). This category
does not include gas compressor station engines equal to or greater
than 100 HP or gas extraction wells at landfills.
• A true blanket exemption

105. Proposed Conditional Exemption No. 38
• (i) Wells, wellheads, and associated
equipment subject to 40 CFR Part 60 Subpart
OOOO provided the exemption criteria
specified in Paragraphs iii, iv, v, vi and vii as
applicable are met
• (ii) Conventional wells, wellheads and
associated equipment

106. Proposed Conditional Exemption No. 38
• (iii) Leak Detection and Repair
– Initial leak survey (60 days after completion)
– Annual leak survey
– Forward looking infrared (FLIR) or other approved device
– For all leaks:
• Quantification of leaks
• Repair of leaks as expeditiously as practical, no later than 30 days
– No detectable organic emissions consistent with 40 CFR Part 60 Subpart
OOOO, or
– Less than a concentration of 2.5% methane
– All leaks and repairs must be recorded.

107. Proposed Conditional Exemption No. 38
• (iv) Storage vessels/storage tanks equipped with VOC
emission controls achieving emission reduction of 95% or
greater
– Compliance shall be demonstrated in accordance with 40 CFR
Part 60 Subpart OOOO (Uncontrolled PTE > 6 TPY)
• (v) Combined VOC emissions from all the sources at the
facility must be less than 2.7 tons on a 12-month rolling
basis
– HAP emissions less than 1,000 lbs. of a single HAP or one ton of
a combination of HAPs in any consecutive 12-month period
– Emission criteria exclude emissions from well heads meeting
the exemption criteria specified in Paragraphs iii (fugitive leaks),
iv (NSPS tanks) or vi (flaring) – leaving only non NSPS tanks (< 6
TPY uncontrolled VOC PTE)

108. Exemption No. 38
• (vi) Flaring operations used at a wellhead subject to 40
CFR Part 60 Subpart OOOO requirements
• (vii) Combined NOX emissions from the stationary
internal combustion engines at a facility
– less than 100 lbs. /hr., 1000 lbs. /day,
– 2.75 tons per ozone season, and
– 6.6 tons per year on a 12-month rolling basis
– Emission criteria do not include emissions from sources
which are approved by plan approvals/GPs
• (viii) Non-road engines as defined in 40 CFR, Part 89.

109. Exemption No. 38
• Comply with all applicable requirements
including notification, recordkeeping, and
reporting requirements as specified in 40 CFR
Part 60 Subpart OOOO
• Demonstrate compliance with the exemption
criteria using any generally accepted model or
calculation methodology within 180 days of after
the well completion or installation of a source

110. Key Points
• Proposed conditional exemption No. 38 is more
of a general permit than an exemption
• Comments are due March 19, 2013
• Overall complicated for an exemption, but not
terrible
• Review the proposed exemption and identify
specific points or technical issues and related
hardships
• Prepare public comments or contribute to public
comments being prepared by PIOGA