No. 42112 (New Rule): Rule R307-507. Oil and Gas Industry:Dehydrators

(New Rule)

DAR File No.: 42112
Filed: 09/14/2017 04:59:15 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this new rule is to implement a permit-by-rule system for oil and gas wells to replace the current minor source permitting system implemented by the Division of Air Quality (Division). This amendment reflects the current Best Available Control Technology (BACT) that is required for gas and oil well facilities that currently apply for a permit to operate. The rule excludes sources that are currently permitted. Therefore, to ensure that the permit-by-rule rules are equivalent to current permitting requirements this rule was amended to reflect BACT.

Summary of the rule or change:

The rule requires oil and gas well sources with dehydrators that meet certain emission limits to control their emissions.

Statutory or constitutional authorization for this rule:

• Subsection 19-2-104(1)(a)

Anticipated cost or savings to:

the state budget:

This rule does not have a cost or savings to the state budget because this rule regulates oil and gas sources.

local governments:

This rule does not have a cost or savings to local governments because this rule regulates oil and gas sources.

small businesses:

This rule will not result in a cost or savings to small businesses because it is only regulating new sources that would currently be required to get a permit. A minor source permit for dehydrators associated with oil and gas operations would include requirements that are equivalent to the requirements in these rules. Therefore, Rule R307-507 does not add any additional costs to small businesses.

persons other than small businesses, businesses, or local governmental entities:

No--This rule does not have a cost or savings to "other persons" because the rule impacts owners or operators of oil and gas wells. The owners and operators of these wells are all businesses.

Compliance costs for affected persons:

No additional compliance costs are anticipated because this rule regulates new sources that would currently be required to get a permit. A minor source permit for dehydrators associated with oil and gas operations would include requirements that are equivalent to the requirements in these rules. Therefore, Rule R307-507 does not add any additional compliance costs to affected persons.

Comments by the department head on the fiscal impact the rule may have on businesses:

After conducting a thorough analysis, it was determined that this proposed rule will not result in a fiscal impact to businesses in Utah. This rule requires emission controls for volatile organic compounds (VOCs) that are emitted from dehydrators associated with oil and gas operations. This rule will not result in a cost to businesses because it is only regulating new sources that would currently be required to get a permit. A minor source permit for dehydrators associated with oil and gas operations would include requirements that are equivalent to the requirements in these rules. Therefore, Rule R307-507 does not add any additional costs to businesses.

Alan Matheson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office of Administrative Rules, or at:

Environmental Quality
Air QualityRoom Fourth Floor
195 N 1950 W
SALT LAKE CITY, UT 84116-3085

Direct questions regarding this rule to:

• Mat Carlile at the above address, by phone at 801-536-4116, by FAX at 801-536-4136, or by Internet E-mail at [e-mail]

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

11/15/2017

Interested persons may attend a public hearing regarding this rule:

• 10/19/2017 01:00 PM, Department of Environmental Quality, 195 N 1950 W, Board Room 1015, Salt Lake City, UT
• 10/25/2017 01:00 PM, TriCounty Health, 133 S 500 E, Vernal UT

This rule may become effective on:

01/04/2018

Authorized by:

Bryce Bird, Director

RULE TEXT

R307. Environmental Quality, Air Quality.

R307-507. Oil and Gas Industry: Dehydrators.

R307-507-1. Purpose.

R307-507 establishes requirements to control emissions of volatile organic compounds (VOCs) from dehydrators associated with oil and gas operations.

 

R307-507-2. Definitions.

"Dehydrator" means dehydrator as defined in 40 CFR 60.5430a, Subpart OOOOa Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution, which is incorporated by reference in R307-210.

 

R307-507-3. Applicability.

(1) R307-507 applies to each dehydrator located at a well site as defined in 40 CFR 60.5430a, Subpart OOOOa Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution.

(a) R307-507 does not apply to a dehydrator that is subject to an approval order issued under R307-401-8.

 

R307-507-4. Dehydrator Requirements.

(1) Dehydrators with VOC emissions of four tons per year or greater either individually or combined with VOC emissions from storage vessels shall either be routed to a process unit where the emissions are recycled, incorporated into a product, and/or recovered, or be routed to a VOC control device that is in compliance with R307-508. Dehydrators in operation before January 1, 2018, shall determine applicability with calculated actual emissions. Dehydrators in operation on or after January 1, 2018, shall determine applicability using potential to emit.

(2) Controls may be removed when actual emissions, individually or combined with VOC emissions from storage vessels, are less than four tons per year on a rolling twelve-month basis.

 

R307-507-5. Recordkeeping

Records of emission calculations shall be kept for all periods the plant is in operation if a control device is not installed on-site.

 

KEY: air pollution, oil, gas

Date of Enactment or Last Substantive Amendment: 2017

Authorizing, and Implemented or Interpreted Law: 19-2-104(1)(a)

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