No. 38580 (Change in Proposed Rule): Rule R307-502. Oil and Gas Industry:Pneumatic Controllers

DAR File No.: 38580
Filed: 10/07/2014 10:15:17 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Air Quality Board proposed this new rule, R307-502, for public comment on 06/04/2014. A 30-day public comment period was held, during which the Division of Air Quality (DAQ) received comments that resulted in changes being made to the originally proposed rule. The comments made by the Western Energy Alliance and the Utah Petroleum association raised concerns regarding adopting the NSPS standards in their entirety.

Summary of the rule or change:

Section R307-502-5 is modified to mirror the NSPS requirements to report high-bleed controllers that could not be replaced rather than reporting all controllers that were replaced. This is consistent with the intent of the rule to accelerate implementation of the NSPS requirements rather than establishing new requirements for pneumatic devices. (DAR NOTE: The original proposed new rule upon which this change in proposed rule (CPR) was based was published in the July 1, 2014, issue of the Utah State Bulletin, on page 40. 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.)

State statutory or constitutional authorization for this rule:

• Subsection 12-2-104(1)(a)

Anticipated cost or savings to:

the state budget:

The change in the rule to require the reporting of high-bleed controllers that could not be replaced rather than the reporting of all controllers there were replaced does not place any additional requirements on the state; therefore, there are no anticipated costs or savings to the state budget.

local governments:

The change in the rule to require the reporting of high-bleed controllers that could not be replaced rather than the reporting of all controllers there were replaced does not place any additional requirements on local government; therefore, there are no anticipated costs or savings.

small businesses:

In the original notice of proposed rule published in the Bulletin on July 1, 2014, DAQ stated that the rule does not apply to small businesses and therefore there were no anticipated costs or savings. That statement that the rule does not apply to small businesses was incorrect as there are many oil and natural gas producers in Utah that the rule applies to. Therefore, this rule does apply to small businesses, and while there is an initial cost to replace pneumatic controllers, there is also a benefit to the operators as the natural gas is recaptured and can be sold as product. EPA's Natural GAs STar Program estimates a cost of $2,104 to replace an existing high-bleed controller. More recently, Colorado estimated initial costs of $1,420 to replace each high-bleed pneumatic controller. At current natural gas prices, the new devices will pay for themselves in about 1 1/2 to 2 years and will then continue to provide on-going savings to the company. Additionally, the change in the reporting requirements in this rulemaking action should result in a minimal amount of savings to small businesses, as they will now be required to report only the high-bleed controllers that could not be replaced rather than report all controllers there were replaced.

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

The change in the rule to require the reporting of high-bleed controllers that could not be replaced rather than the reporting of all controllers there were replaced does not place any additional requirements on persons other than small businesses, businesses, or local government entities; therefore, there are no anticipated costs or savings.

Compliance costs for affected persons:

This change in proposed rule should not result in any additional compliance costs. In fact, it should slightly reduce compliance costs as sources would only be required to report high-bleed controllers that could not be replaced rather than report all controllers that were replaced.

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

This change in proposed rule should not result in any additional compliance costs. In fact, it should slightly reduce compliance costs as sources would only be required to report high-bleed controllers that could not be replaced rather than report all controllers there were replaced.

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:

This rule may become effective on:

12/02/2014

Authorized by:

Bryce Bird, Director

RULE TEXT

R307. Environmental Quality.

R307-502. Oil and Gas Industry: Pneumatic Controllers.

R307-502-1. Purpose.

(1) The purpose of R307-502 is to reduce emissions of volatile organic compounds from pneumatic controllers that are associated with oil and gas operations.

(2) The rule requires existing pneumatic controllers to meet the standards established for new controllers in 40 CFR Part 60, Subpart OOOO.

 

R307-502-2. Definitions.

(1) The definitions in 40 CFR 60, Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution, which is incorporated by reference in R307-210 apply to R307-502.

(2) "Existing pneumatic controller" means a pneumatic controller affected facility as described in 40 CFR 60.5365(d)(1) through (3) that was constructed, modified, or reconstructed prior to October 15, 2013.

 

R307-502-3. Applicability.

R307-502 applies to the owner or operator of any existing pneumatic controller in Utah.

 

R307-502-4. Retrofit Requirements.

(1) Effective December 1, 2015, all existing pneumatic controllers in Duchesne County or Uintah County shall meet the standards established for pneumatic controller affected facilities that are constructed, modified or reconstructed on or after October 15, 2013, as specified in 40 CFR 60, Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution.

(2) Effective April 1, 2017 all existing pneumatic controllers in Utah shall meet the standards established for pneumatic controller affected facilities that are constructed, modified or reconstructed on or after October 15, 2013 as specified in 40 CFR 60, Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution.

 

R307-502-5. Documentation Required.

[The owner or operator shall identify all existing pneumatic controller facilities that were replaced or retrofitted to meet the requirements of R307-502-4 in the annual report required under 40 CFR 60.5420.](1) The tagging requirements in 40 CFR 60.5390(b)(2) and 40 CFR 60.5390(c)(2), incorporated by reference in R307-210, are modified to not require the month and year of installation, reconstruction or modification for existing pneumatic controllers.

(2) The recordkeeping requirements in 40 CFR 60.5420(c)(4)(i), incorporated by reference in R307-210, are modified to not require records of the date of installation or manufacturer specifications for existing pneumatic controllers.

 

KEY: air pollution, oil, gas, pneumatic controllers

Date of Enactment or Last Substantive Amendment: 2014

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