No. 38581 (New Rule): Rule R307-503. Oil and Gas Industry:Flares

(New Rule)

DAR File No.: 38581
Filed: 06/05/2014 02:06:25 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

In 2012, the State of Utah entered into EPA's Ozone Advance Program with the goal to proactively lower ozone values in the Uinta Basin. Ozone is created by photochemical reaction, and the main precursors are volatile organic compounds (VOC) and (NOx). In the Uinta Basin, oil and gas production accounts for 97% of anthropogenic VOC emissions. This proposed rule is one of four that the Air Quality Board has proposed as the first phase to combat high ozone levels by lowering VOC emissions. New or modified oil and gas well production sites are required to capture and control VOC emissions, and the typical control device is a flare. Utah's proposed General Approval Order (GAO) for a Crude Oil and Natural Gas Well Site and/or Tank Battery requires the VOC control device to reduce VOC emissions by 98%. The proposed GAO requires continuous compliance with this control efficiency standard. Because many well production sites are unmanned, if the wind or a surge of gas blows out the pilot light, it is possible for the combustion device to cease working for an extended period of time until personnel visit the site and relight the pilot light. During its recent rulemaking effort, Colorado estimated that pilot lights were not functioning about 3% of the time, leading to significant uncontrolled VOC emissions.

Summary of the rule or change:

Rule R307-503 would require all new flares to be equipped with a self-igniter to relight the pilot light if the flame is extinguished. The rule would also require all existing flares in Duchesne and Uintah Counties to be retrofitted with self-igniters by 12/01/2015 to provide reductions prior to the 2015/16 winter ozone season. Flares in the rest of the state must be replaced prior to 04/01/2017 to provide reductions prior to the 2017 summer ozone season.

State statutory or constitutional authorization for this rule:

• Subsection 19-2-104(1)(a)

Anticipated cost or savings to:

the state budget:

There are no new requirements for the State of Utah; therefore, there are no anticipated costs or savings to the state budget.

local governments:

Because there are no new requirements for local government, there are no anticipated costs or savings.

small businesses:

The requirements of this rule typically apply to businesses with more than 50 employees; therefore, there are no anticipated costs or savings to small businesses.

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

This rule does not have any new requirements for persons other than small businesses, businesses, or local government entities; therefore, there are no anticipated costs or savings.

Compliance costs for affected persons:

Colorado estimated a cost of $2,348 to retrofit an existing flare with an auto igniter, with an annualized cost of $475. The overall cost effectiveness of the retrofit was $302/ton of VOC reduced.

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

Colorado estimated a cost of $2,348 to retrofit an existing flare with an auto igniter, with an annualized cost of $475. The overall cost effectiveness of the retrofit was $302/ton of VOC reduced.

Amanda Smith, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Division 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:

• Mark Berger at the above address, by phone at 801-536-4000, by FAX at 801-536-0085, 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:

07/31/2014

This rule may become effective on:

09/04/2014

Authorized by:

Bryce Bird, Director

RULE TEXT

R307. Environmental Quality.

R307-503. Oil and Gas Industry: Flares.

R307-503-1. Purpose.

R307-503 establishes conditions to ensure that combustion devices used in the oil and gas industry are operated effectively.

 

R307-503-2. Definitions.

"Auto igniter" means a device which will automatically attempt to relight the pilot flame in the combustion chamber of a control device in order to combust volatile organic compound emissions.

 

R307-503-3. Applicability.

(1) R307-503 applies to all oil and gas exploration and production operations, well sites, natural gas compressor stations, and natural gas processing plants in Utah.

(2) R307-503 does not apply to oil refineries.

 

R307-503-4. Auto-Igniters.

(1) All open or enclosed flares used to control emissions of volatile organic compounds shall be equipped with and operate an auto-igniter as follows:

(a) All open or enclosed flares installed on or after November 1, 2014, shall be equipped with an operational auto-igniter upon installation of the flare.

(b) All open or enclosed flares installed before November 1, 2014, in Duchesne County or Uintah County shall be equipped with an operational auto-igniter by December 1, 2015, or after the next flare planned shutdown, whichever comes first.

(c) All open or enclosed flares installed before November 1, 2014, in all other areas of Utah shall be equipped with an operational auto-igniter by April 1, 2017, or after the next flare planned shutdown, whichever comes first.

 

R307-503-5. Recordkeeping.

The owner or operator shall maintain records demonstrating the date of installation and manufacturer specifications for each auto-igniter required under R307-503-3.

 

KEY: air pollution, oil, gas, flares

Date of Enactment or Last Substantive Amendment: 2014

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

 

 

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