No. 42111 (Change in Proposed Rule): Rule R307-506. Oil and Gas Industry: Storage Vessels

DAR File No.: 42111
Filed: 01/04/2018 12:06:47 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Air Quality Board proposed a new Rule R307-506 for public comment on 09/06/2017. A 45-day public comment period and two public hearings were held, during which the Division of Air Quality (DAQ) received comments that resulted in changes being made to the original proposed rule. This rule is amended to clarify the definition of a "Centralized Tank Battery", the definition of "Emergency Relief Storage Vessel", the definition of "Uncontrolled Emissions", how emergency relief storage vessels would be regulated under the rule, and to broaden the methods for determining emissions and type of emissions (uncontrolled versus controlled). These changes provide more flexibility to determination of emissions and clarify applicability of rules. The emergency relief storage vessels changes were due to questions regarding their applicability to the proposed rule. This required the addition of requirements for such vessels as they are regulated differently from production and operational vessels.

Summary of the rule or change:

This change to the proposed rule clarifies the definition of a "Centralized Tank Battery", the definition of "Emergency Relief Storage Vessel", the definition of "Uncontrolled Emissions", how emergency relief storage vessels would be regulated under this rule, and to broaden the methods for determining emissions and type of emissions (uncontrolled versus controlled). These changes provide more flexibility to determination of emissions and clarify applicability of rules. The emergency relief storage vessels changes were due to questions regarding their applicability to the proposed rule. This required the addition of requirements for such vessels as they are regulated differently from production and operational vessels. (EDITOR'S NOTE: The original proposed new rule upon which this change in proposed rule (CPR) was based was published in the October 1, 2017, issue of the Utah State Bulletin, on page 73. Underlining in the rule below indicates text that has been added since the publication of the proposed new rule mentioned above; strike-out indicates text that has been deleted. You must view the CPR and the proposed new rule together to understand all of the changes that will be enforceable should the agency make this rule effective.)

Statutory or constitutional authorization for this rule:

• Subsection 19-2-104(1)(a)

Anticipated cost or savings to:

the state budget:

This change in proposed rule does not affect the original economic impact analysis.

local governments:

This change in proposed rule does not affect the original economic impact analysis.

small businesses:

This change in proposed rule does not affect the original economic impact analysis.

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

This change in proposed rule does not affect the original economic impact analysis.

Compliance costs for affected persons:

No additional compliance costs are expected for affected persons.

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

After thorough review, it has been determined that these changes will not affect the original analysis provided in the original proposed rule.

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:

• Thomas Gunter at the above address, by phone at 801-536-4419, by FAX at , 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:

This rule may become effective on:

03/02/2018

Authorized by:

Bryce Bird, Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2018

FY 2019

FY 2020

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Person

$0

$0

$0

Total Fiscal Costs:

$0

$0

$0

Fiscal Benefits

State Government

$0

$0

$0

Local Government

$0

$0

$0

Small Businesses

$0

$0

$0

Non-Small Businesses

$0

$0

$0

Other Persons

$0

$0

$0

Total Fiscal Benefits:

$0

$0

$0

Net Fiscal Benefits:

$0

$0

$0

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

 

The change in proposed rule does not affect the original economic impact analysis.

The Executive Director of the Department of Environmental Quality, Alan Matheson, has reviewed and approved this fiscal analysis.

 

 

R307. Environmental Quality, Air Quality.

R307-506. Oil and Gas Industry: Storage Vessel[s].

R307-506-1. Purpose.

R307-506 establishes requirements to control emissions of volatile organic compounds (VOCs) from storage vessels associated with [oil and gas operations ]a well site.

 

R307-506-2. Definitions.

"Centralized Tank Battery" means a separate tank battery surface site collecting crude oil, condensate, intermediate hydrocarbon liquids, or produced water from wells not located at the well site.

"Emergency Relief Storage Vessel" means a storage vessel receiving oil, condensate, or produced water as a result of emergency situations, process upsets, or other equipment malfunctions.

"Modification to a well site" means;

(1) a new well is drilled at an existing well site,

(2) a well at an existing well site is hydraulically fractured, or

(3) a well at an existing well site is hydraulically refractured.

"Storage Vessel" means storage vessel 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.

"Uncontrolled emissions" means actual emissions or the potential to emit without consideration of controls.

 

R307-506-3. Applicability.

(1) R307-506 applies to each storage vessel 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.

(2) R307-506 shall apply to centralized tank batteries.

([a]3) R307-506 does not apply to storage vessels that are subject to an approval order issued under R307-401-8.

 

R307-506-4. Storage Vessel Requirements.

(1) Thief hatches on storage vessels shall be kept closed and latched except during vessel unloading or other maintenance activities.

(2) All storage vessels [or collection of storage vessels,]located at a well site that [is]are in operation as of January 1, 2018, with a site-wide throughput of 8,000 barrels or greater of crude oil or 2,000 barrels or greater of condensate per year on a rolling 12-month basis shall comply with R307-506-4(2)(a) unless the exemption in R307-506-4(2)(b) applies.

(a) 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.

(b) All storage vessels [or collection of storage vessels]located at a well site shall be exempt from R307-506-4(2)(a) if combined VOC emissions are demonstrated to be less than four tons per year of uncontrolled emissions on a rolling [twelve ]12-month basis .[by the following methods:]

(i) VOC working and breathing losses, and flash emissions shall be calculated using direct site-specific sampling data and [the TANKS 4.09D Emission Estimation S]any software [provided by the EPA] program or calculation methodology in use by industry that is based on AP-42 Chapter 7.

[(ii) VOC flash emissions shall be calculated using site-specific sampling data and the Vasquez-Beggs Equation.

(iii) VOC emissions determined by an alternative method approved by the Director.]

(3) [S]All storage vessels that begin operations on or after January 1, 2018, are required to control VOC emissions in accordance with R307-506-4(2)(a) upon startup of operation for a minimum of one year[and then evaluate control requirements in accordance with R307-506-4(6)].

(4) An emergency storage vessel located at a well site shall be exempt from R307-506-4(2)(a), if it meets the following requirements:

(i) The emergency storage vessel shall not be used as an active storage tank.

(ii) The owner or operator shall empty the emergency storage vessel no later than 15 days after receiving fluids.

(iii) The emergency storage vessel shall be equipped with a liquid level gauge or equivalent device.

([4]5) An owner or operator that is required to control emissions in accordance with R307-506-4(2) and R307-506-4(3) shall inspect at least once a month each closed vent system, including vessel openings, thief hatches, and bypass devices, for defects that can result in air emissions according to 40 CFR 60.5416a(c).

(a) If defects are discovered, the defects shall be corrected or repaired within 15 days of identification.

([5]6) Modification to a well site shall require a re-evaluation of site-wide throughput and/or emissions in accordance with R307-506-4(2).

([6]7) After a minimum of one year of operation, controls may be removed [when]if site-wide throughput is less than 8,000 barrels of crude oil or 2,000 barrels of condensate on a rolling [twelve]12-month basis or uncontrolled actual emissions are demonstrated to be less than four tons per year[after one year of operation].

 

R307-506-5. Recordkeeping .

(1) Records of [thief hatch ]each closed vent system inspection , including vessel openings, thief hatches, pressure relief devices and bypass device shall be kept for three years.

(a) Records of [thief hatch ]each closed vent system inspection[s], including vessel openings, thief hatches, pressure relief devices and bypass device shall include the date of the inspection, the status of [the thief hatches]each closed vent system, including vessel openings, thief hatches, pressure relief devices and bypass device, and the date of corrective action taken if required.

(2) Records of crude oil throughput shall be kept for three years and shall be determined on a monthly basis using the production data reported to the Utah Division of Oil, Gas, and Mining.

(3) Records of emission calculations, actual emissions, and site-specific sampling data used to determine [applicability]compliance with R307-506-4(2)(b) shall be kept [as long as the well site is in operation]for a period of three years, post registration.

(4) Records of emergency storage vessel usage shall be kept for a period of three years.

(a) Records of emergency storage vessel usage shall include the date the vessel received fluids or was discovered to have received fluids, the date the overflow tank was emptied, and the volume of fluids emptied in barrels.

 

KEY: air pollution, oil, gas

Date of Enactment or Last Substantive Amendment: [2017]2018

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