No. 43211 (Change in Proposed Rule): Rule R307-511. Oil and Gas Industry: Associated Gas Flaring

DAR File No.: 43211
Filed: 01/03/2019 03:16:37 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

In response to comments received during the October 1 - October 31, 2018, public comment period, the Division of Air Quality (DAQ) staff made clarifying amendments to the definition of "Associated Gas."

Summary of the rule or change:

Section R307-511-2 is amended to clarify that low pressure gas associated with the working breathing, and flashing of oil is not considered associated gas under the definition and shall be controlled in accordance with Rules R307-506 and R307-507. Section R307-511-4 is amended to clarify the purpose of routing gas into process units by adding the language "for combustion" to the definition. Additionally, language was deleted to clean up the language and format. (EDITOR'S NOTE: The original proposed new rule upon which this change in proposed rule (CPR) was based was published in the October 1, 2018, issue of the Utah State Bulletin, on page 32. 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 will not have a direct fiscal impact on the state budget.

local governments:

This change will not have a direct fiscal impact on local governments.

small businesses:

This change will not have a direct fiscal impact on small businesses because the change does not affect the initial application of the rule. All changes are for clarification of the rules intent.

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

This change will not have a direct fiscal impact on persons other than small businesses, businesses, or local government entities.

Compliance costs for affected persons:

This change does not have a compliance cost for affected persons.

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

The amendments made to Rule R307-511 were for clarification to the intent of the originally proposed new rule. No changes made will further affect the original fiscal analysis conducted by DAQ.

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:

01/03/2019

Authorized by:

Bryce Bird, Director

RULE TEXT

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs

FY 2019

FY 2020

FY 2021

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

No non-small businesses are expected to be impacted by this rulemaking. The amendments provide clarification to the intent of the originally proposed rule. No changes made will further affect the original fiscal analysis conducted by the Division of Air Quality.

 

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

 

 

R307. Environmental Quality, Air Quality.

R307-511. Oil and Gas Industry: Associated Gas Flaring.

R307-511-1. Purpose.

R307-511 establishes control requirements for the flaring of produced gas associated with well sites.

 

R307-511-2. Definitions.

"Emergency release" means a temporary, infrequent and unavoidable situation in which the loss of gas is uncontrollable or necessary to avoid risk of an immediate and substantial adverse impact on safety, public health, or the environment. An "emergency" is limited to a short-term situation of 24 hours or less caused by an unanticipated event or failure that is out of the operator's control and is not due to operator negligence.

"Flaring" means use of a thermal oxidation system designed to combust hydrocarbons in the presence of a flame.

"Associated Gas" means the natural gas that is produced from an oil well during [normal ]production operations and is either sold, re-injected, used for production purposes, vented (rarely) or flared. [All gas from storage vessels and low pressure separators is not associated gas]Low pressure gas associated with the working, breathing, and flashing of oil is not considered associated gas under this definition and shall be controlled in accordance with R307-506 and R307-507.

 

R307-511-3. Applicability.

(1) R307-511 applies to each producing well 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) VOC control devices used for controlling associated gas are subject to R307-508.

(3) R307-511 does not apply to producing wells that are subject to an approval order issued under R307-401-8.

 

R307-511-4. Associated Gas Flaring Requirements.

(1) Associated gas from a completed well shall either be routed to a process unit for combustion, routed to a sales pipeline, or routed to an operating VOC control device except for [the following condition:

(a) Under ]emergency release situations as defined in R307-511-2.

 

R307-511-5. Recordkeeping.

(1) The owner or operator shall maintain records for releases under R307-511-4(1)(a).

(a) The time and date of event, volume of emissions and any corrective action taken shall be recorded.

(b) These records shall be kept for a minimum of three years.

 

KEY: air quality, nonattainment, offset

Date of Enactment or Last Substantive Amendment: 201[8]9

Authorizing, and Implemented or Interpreted Law: 19-2-104; 19-2-108