No. 42112 (Change in Proposed Rule): Rule R307-507. Oil and Gas Industry: Dehydrators

DAR File No.: 42112
Filed: 01/04/2018 12:07:15 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Air Quality Board proposed a new Rule R307-507 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 originally proposed rule. This rule is amended to clarify the definition of "Well Site", the definition of "Uncontrolled Emissions", the addition of a monthly visual inspection of dehydrators, and additions to the record-keeping requirements. The addition of the monthly inspection is in accordance with Federal NSPS requirements and current oil and gas well approval orders. This does not significantly affect current operation of dehydrators as they are already performing the inspections. The requirement was added because it was missed in the original proposal.

Summary of the rule or change:

This change to the proposed rule clarifies the definition of "Well Site", the definition of "Uncontrolled Emissions", the addition of a monthly visual inspection of dehydrators, and additions to the record-keeping requirements. (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 75. 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.

R307-507. 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]a well site.

 

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.

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

 

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.

(2) R307-507 shall apply to centralized tank batteries, as defined in R307-506-2.

([a]3) 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 of uncontrolled emissions 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) An owner or operator that is required to control emissions in accordance with R307-507-4(1) 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.

(3) Modification to a well site shall require a re-evaluation of emissions in accordance with R307-507-4(1).

([2]4) After a minimum of one year of operation, [C]controls may be removed [when]if uncontrolled actual emissions, individually or combined with VOC emissions from storage vessels, are less than four tons per year on a rolling [twelve]12-month basis.

 

R307-507-5. Recordkeeping

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

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

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

 

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)