No. 38581 (Change in Proposed Rule): Rule R307-503. Oil and Gas Industry:Flares

DAR File No.: 38581
Filed: 10/07/2014 12:15:40 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Air Quality Board proposed this new rule, R307-503, 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 received asked for certain terms to be defined and raised concerns regarding the cost to install an auto-ignitor on an open flare. Retrofits were limited to enclosed flares in response to this comment.

Summary of the rule or change:

Definitions for "enclosed flare", "flare", and "open flare" are added to the rule. The rule is also modified to require retrofits only on enclosed flares. The applicability date for all new flares has been changed to 01/01/2015 to reflect the expected effective date of this rule. (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 42. 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 19-2-104(1)(a)

Anticipated cost or savings to:

the state budget:

The changes made to this rule do not apply to the state; therefore, there are no anticipated costs or savings to the state budget.

local governments:

The changes made to this rule do not apply to 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 was incorrect as there are many oil and natural gas producers in Utah that the rule applies to. 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. Because the change in proposed rule removes the requirement to retrofit existing open flares, there will be a savings; however, it is difficult to determine how many open flares will now no longer be required to be retrofitted.

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

The changes to this rule do not apply to 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 results in a reduction of compliance costs for affected persons because it removes the requirement to retrofit existing open flares. The number of open flares that will no longer need to be retrofitted is unknown, so the reduction in compliance costs is unknown.

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

This change results in a reduction of compliance costs for affected persons because it removes the requirement to retrofit existing open flares. The number of open flares that will no longer need to be retrofitted is unknown, so the reduction in compliance costs is unknown.

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.

R307-503. Oil and Gas Industry: Flares.

R307-503-1. Purpose.

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

 

R307-503-2. Definitions.

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

(2) "Enclosed flare" means a flare that has an enclosed flame.

(3) "Flare" means a thermal oxidation system designed to combust hydrocarbons in the presence of a flame.

(4) "Open flare" means a flare that has an open (without enclosure) flame.

 

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 f]Flares used to control emissions of volatile organic compounds shall be equipped with and operate an auto-igniter as follows:

(a) All open flares and all[or] enclosed flares installed on or after [November 1, 2014]January 1, 2015, shall be equipped with an operational auto-igniter upon installation of the flare.

(b) All [open or ]enclosed flares installed before [November 1, 2014,]January 1, 2015 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,]January 1, 2015 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)