Air Quality Compliance Issues in the Oil & Natural Gas Industry OIPA Air Emission Workshops

Transcription

1 Air Quality Compliance Issues in the Oil & Natural Gas Industry OIPA Air Emission Workshops May 11-12, 2011 Donald K. Shandy Ivan L. London 900 Robinson Renaissance, 119 N. Robinson Oklahoma City, Oklahoma Telephone: (405)

2 Compliance Concern Overview Oklahoma DEQ Authority Enforcement Process and Fines Common Noncompliance Issues Hypothetical Set-ups and Walkthrough 2

3 Air Quality Fundamentals Federal law State law Program Delegation & SIPs Attainment and Non-attainment Air quality regulation of the Industry 3

4 Federal Programs Prevention of Significant Deterioration ( PSD ) Title V Operating Permits ( Part 70 ) New Source Performance Standards ( NSPS ) National Emissions Standards for Hazardous Air Pollutants ( MACT Standards ) 4

5 Oklahoma DEQ Authority DEQ Regulatory Jurisdiction Oklahoma Clean Air Act 27A Okla. Stat to 118 DEQ Rule Implementation Okla. Admin. Code, Title 252, Chapter 100 Air Pollution Control Permit Compliance 27A Okla. Stat

6 DEQ Authority cont 27A Okla. Stat Establish permitting program Enforce the Oklahoma Clean Air Act Enforce rules and orders Enter and inspect any regulated facility Abate pollution Require submission of information, records, and emissions data (including trade secrets and other confidential information) 6

7 General Enforcement Outline DEQ Record Review or Compliance Inspection or Self-Disclosure and Follow-up Investigation DEQ Follows up DEQ Issues Alternative Enforcement Letter or Notice of Violations Enforcement Conference Consent Order and Penalty 7

8 Common Issues Performance Testing Monitoring Excess Emissions Notification 8

9 But First A Word About Voluntary Disclosure OAC 252: Considerations for Self-Reporting of Noncompliance DEQ will not seek administrative or civil penalties under certain, listed circumstances No set time limit ( promptly ), but DEQ has to have no prior knowledge of the violation Failure to make required disclosures under Title V cannot be remedied by voluntary disclosure Actual or likely discovery by DEQ makes COMPANY ineligible for self-reporting protection 9

10 Performance Testing Engines at Compressor Stations NSPS Subpart JJJJ Permit Limits Failure to test (or test properly) Performance Testing in General Provisions 40 CFR 60.8 and JJJJ Incorporated at Okla. Admin. Code 252:100, Appendix Q Formaldehyde Emissions and HAP Major Source Thresholds 10

11 Monitoring Leak Detection at Gas Plants NSPS Subparts VV and KKK Specific Conditions in Permits Failure to Monitor Incorporated at Okla. Admin. Code 252:100, Appendix Q 11

12 Emissions NESHAP Subpart ZZZZ (RICE) Tables: Emissions limits for HAP Major Sources Emissions limits for HAP Area Sources New and reconstructed, or Existing Limits for RICE 250hp or 500hp 2- or 4- stroke, rich burn or lean burn Incorporated at Okla. Admin. Code 252:100, Appendix Q 12

13 Excess Emissions Part 70 Permits Specific Conditions Profile of Emissions and Emissions Limitations for each Emissions Unit OAC 252: An owner or operator who violates any condition of a permit is subject to enforcement under the Oklahoma CAA. 13

14 Notification NSPS Subpart KKK Replacement of old equipment An industry in flux Example: EPSILON s plant exempt from Subpart KKK EPSILON installs new compressor New compressor is subject to Subpart KKK Vent from new compressor to existing flare Does the flare become subject to NSPS Subpart A? Standards? Testing? 14

15 Conclusion Other common issues? Recordkeeping Notification requirements Natural Gas Gathering Facilities? NESHAP Subpart HH Production Facilities (SIC codes 1311 & 1321) NESHAP Subpart HHH Transmission & Storage Facilities (SIC code 4922) Questions? 15

16 Contact Donald K. Shandy Ivan L. London Oklahoma City, Oklahoma Telephone: (405)