DAR File No. 38582

Environmental Quality, Air Quality

Rule R307-504

Oil and Gas Industry: Tank Truck Loading

Notice of Proposed Rule

(New Rule)

DAR File No.: 38582
Filed: 06/05/2014 02:06:48 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. The proposed General Approval Order for a Crude Oil and Natural Gas Well Site and/or Tank Battery contains a requirement that all tanker trucks loading on-site use either bottom filling or submerged filling to reduce VOC emissions created by splashing of liquids when loading oil, condensate, or produced water. Rule R307-504 would expand this requirement to all existing operations. The Division of Air Quality estimates that this change could reduce VOC emissions due to tank truck loading by about 59% (1,017 tons/year in the Uinta Basin in 2015).

Summary of the rule or change:

After 01/01/2015, tank trucks used for intermediate hydrocarbon liquid or produced water will be required to load using bottom filling or submerged fill pipe. The proposed rule applies to any person who loads or permits the loading of any intermediate hydrocarbon liquid or produced water at a well production facility.

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.

local governments:

There are no new requirements for local governments; therefore, there are no anticipated costs or savings.

small businesses:

It is anticipated that this rule only applies to businesses with more than 50 employees; therefore, there are no anticipated costs or savings.

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

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

Compliance costs for affected persons:

In practice, many trucks are already equipped to meet the requirements of this proposed rule. Top loading trucks can be inexpensively retrofitted by installing a pipe at the inlet to ensure that liquids are loaded using submerged fill inserted of splash loading, so that compliance costs for affected persons should be minimal.

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

In practice, many trucks are already equipped to meet the requirements of this proposed rule. Top loading trucks can be inexpensively retrofitted by installing a pipe at the inlet to ensure that liquids are loaded using submerged fill inserted of splash loading, so that the fiscal impact of this rule on businesses should be minimal.

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.

R307-504. Oil and Gas Industry: Tank Truck Loading.

R307-504-1. Purpose.

R307-504 establishes control requirements for the loading of liquids containing volatile organic compounds at oil or gas well sites.

 

R307-504-2. Definitions.

(1) The definitions in 40 CFR 60, Subpart OOOO Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution that is incorporated by reference in R307-210 apply to R307-504.

(2) "Bottom Filling" means the filling of a tank through an inlet at or near the bottom of the tank designed to have the opening covered by the liquid after the pipe normally used to withdraw liquid can no longer withdraw any liquid.

(3) "Submerged Fill Pipe" means any fill pipe with a discharge opening which is entirely submerged when the liquid level is six inches above the bottom of the tank and the pipe normally used to withdraw liquid from the tank can no longer withdraw any liquid.

(4) "Well production facility" means all equipment at a single stationary source directly associated with one or more oil wells or gas wells.

 

R307-504-3. Applicability.

R307-504 applies to any person who loads or permits the loading of any intermediate hydrocarbon liquid or produced water at a well production facility after January 1, 2015.

 

R307-504-4. Tank Truck Loading Requirements.

Tank trucks used for intermediate hydrocarbon liquid or produced water shall be loaded using bottom filling or a submerged fill pipe.

 

KEY: air pollution, oil, gas

Date of Enactment or Last Substantive Amendment: 2014

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