DAR File No. 38579

Environmental Quality, Air Quality

Rule R307-501

Oil and Gas Industry: General Provisions

Notice of Proposed Rule

(New Rule)

DAR File No.: 38579
Filed: 06/05/2014 01:58:41 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.

Summary of the rule or change:

This proposed rule establishes general requirements for prevention of emissions and use of good air pollution control practices for all oil and gas exploration, production, transmission and distribution operations; well production facilities; natural gas compressor stations; and natural gas processing plants.

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 requirements in this rule that will result in an increase or savings to the state budget.

local governments:

Because there are no requirements in this rule for local government, there are no anticipated costs or savings.

small businesses:

The sources that this rule applies to are typically large businesses; therefore, there are no anticipated costs or savings to small businesses.

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

Because there are no requirements for persons other than small businesses, businesses, or local government entities, there are no anticipated costs or savings.

Compliance costs for affected persons:

This rule provides more specific language for the oil and gas industry regarding existing requirements that equipment must be maintained and operated according to manufacturers specifications. There are no additional compliance costs for affected persons.

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

This rule provides more specific language for the oil and gas industry regarding existing requirements that equipment must be maintained and operated according to manufacturers specifications. This rule should have no fiscal impact on businesses.

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 [email protected]

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

R307. Environmental Quality.

R307-501. Oil and Gas Industry: General Provisions.

R307-501-1. Purpose.

R307-501 establishes general requirements for prevention of emissions and use of good air pollution control practices for all oil and gas exploration and production operations, well production facilities, natural gas compressor stations, and natural gas processing plants.

 

R307-501-2. 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 R307-501.

(2) "Well production facility" means all equipment at a single stationary source directly associated with one or more oil wells or gas wells. This equipment includes, but is not limited to, equipment used for storage, separation, treating, dehydration, artificial lift, combustion, compression, pumping, metering, monitoring, and flowline.

 

R307-501-3. Applicability.

(1) R307-501 applies to all oil and gas exploration, production, distribution, and transmission operations; well production facilities; natural gas compressor stations; and natural gas processing plants in Utah.

(2) R307-501 does not apply to oil refineries.

 

R307-501-4. General Provisions.

(1) General requirements for prevention of emissions and use of good air pollution control practices.

(a) All intermediate hydrocarbon liquids collection, storage, processing and handling operations, regardless of size, shall be designed, operated and maintained so as to minimize emission of volatile organic compounds to the atmosphere to the extent reasonably practicable.

(b) At all times, including periods of start-up, shutdown, and malfunction, the installation and air pollution control equipment shall be maintained and operated in a manner consistent with good air pollution control practices for minimizing emissions.

(c) Determination of whether or not acceptable operating and maintenance procedures are being used will be based on information available to the director, which may include, but is not limited to, monitoring results, infrared camera images, opacity observations, review of operating and maintenance procedures, and inspection of the source.

(2) General requirements for air pollution control equipment.

(a) All air pollution control equipment shall be operated and maintained pursuant to the manufacturing specifications or equivalent to the extent practicable and consistent with technological limitations and good engineering and maintenance practices.

(b) The owner or operator shall keep manufacturer specifications or equivalent on file.

(c) In addition, all such air pollution control equipment shall be adequately designed and sized to achieve the control efficiency rates established in rules or in approval orders issued under R307-401 and to handle reasonably foreseeable fluctuations in emissions of VOCs during normal operations. Fluctuations in emissions that occur when the separator dumps into the tank are reasonably foreseeable.

 

KEY: air pollution, oil, gas,

Date of Enactment or Last Substantive Amendment: 2014

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