DAR File No. 42109

Environmental Quality, Air Quality

Rule R307-504

Oil and Gas Industry: Tank Truck Loading

Change in Proposed Rule

DAR File No.: 42109
Filed: 01/04/2018 12:06:21 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

The Utah Air Quality Board proposed an amendment to Rule R307-504 for public comment on 09/06/2017. A 45-day public comment period and two public hearings were held, during which the Division of Air Quality (DAQ) received comments that resulted in changes being made to the originally proposed rule. This rule is amended to clarify the definition of "vapor capture line". The change to the definition does not substantially alter the requirements of the proposed rule but makes compliance with the rule easier. Applicable sites currently in operation will have 18 months to comply with the proposed rule.

Summary of the rule or change:

This change to the proposed rule clarifies the definition of "vapor capture line". (EDITOR'S NOTE: The original proposed amendment upon which this change in proposed rule (CPR) was based was published in the October 1, 2017, issue of the Utah State Bulletin, on page 70. Underlining in the rule below indicates text that has been added since the publication of the proposed rule mentioned above; strike-out indicates text that has been deleted. You must view the CPR and the proposed amendment together to understand all of the changes that will be enforceable should the agency make this rule effective.)

Statutory or constitutional authorization for this rule:

• Subsection 19-2-104(1)(a)

Anticipated cost or savings to:

the state budget:

This rule does not have a cost or benefit to the state budget because this rule regulates oil and gas sources.

local governments:

This rule does not have a cost or benefit to local governments because this rule regulates oil and gas sources.

small businesses:

Based on the most current inventory, no small businesses will incur the one-time charge to install equipment required to comply with this rule. Although unlikely, if a small business is later identified, with a non-compliant site, the business will experience a fiscal cost associated with the installation of vapor capture lines at each site. The full impact to these businesses cannot be estimated because the cost of installation can vary from site to site, depending on cost variances of supplies, design, and installation methods. It is estimated that the cost of each site, depending on operator preference, will be between $1,000 and $10,000. Any future sites that require permitting would require the same VOC emission controls that are contained in this proposed amendment. Therefore, there would be no future costs or benefits to small businesses.

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

This rule does not have a cost or benefit to "other persons" because the rule impacts owners or operators of oil and gas wells. The owners and operators of these wells are businesses.

Compliance costs for affected persons:

There are five oil and gas extraction companies (NAICS 2111) operating in Utah that will incur a one-time cost to comply with the amendments to Rule R307-504 (based on 2014 Tank Control inventory). These businesses will experience a fiscal cost associated with the installation of vapor capture lines at each site. The full impact to these non-small businesses cannot be estimated because the cost of installation can vary from site to site, depending on cost variances of supplies, design, and installation methods. It is estimated that the cost of each site, depending on operator preference, will be between $1,000 and $10,000.

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

After conducting a thorough analysis, it was determined that this proposed rule will result in a fiscal impact to approximately five oil and gas extraction companies operating in Utah. This rule will require non-compliant sites to install a vapor capture line on each piece of equipment currently not in compliance. This impact will be a one-time expense per installation, between $1,000 and $10,000 depending on the supplies, design, and installation methods chosen by the company. Since permitting will require the same VOC emissions controls contained in these proposed amendments, there is no additional cost or benefit to future businesses equipment, resulting in no economic impact.

Alan Matheson, Executive Director

The full text of this rule may be inspected, during regular business hours, at the Office 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:

• Thomas Gunter at the above address, by phone at 801-536-4419, by FAX at , 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:

This rule may become effective on:

03/02/2018

Authorized by:

Bryce Bird, Director

Appendix 1: Regulatory Impact Summary Table*

Fiscal Costs	FY 2018	FY 2019	FY 2020
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Person	$0	$0	$0
Total Fiscal Costs:	$0	$0	$0
Fiscal Benefits
State Government	$0	$0	$0
Local Government	$0	$0	$0
Small Businesses	$0	$0	$0
Non-Small Businesses	$0	$0	$0
Other Persons	$0	$0	$0
Total Fiscal Benefits:	$0	$0	$0
Net Fiscal Benefits:	$0	$0	$0

*This table only includes fiscal impacts that could be measured. If there are inestimable fiscal impacts, they will not be included in this table. Inestimable impacts for State Government, Local Government, Small Businesses and Other Persons are described above. Inestimable impacts for Non - Small Businesses are described below.

 

Appendix 2: Regulatory Impact to Non - Small Businesses

 

There are approximately five oil and gas extraction companies (NAICS 2111) operating in Utah that will incur a one-time cost to comply with the amendments to R307-504 (based on 2014 Tank Control inventory). These businesses will experience a fiscal cost associated with the installation of vapor capture lines at each site. The full impact to these non-small businesses cannot be estimated because the cost of installation can vary from site to site, depending on cost variances of supplies, design, and installation methods. It is estimated that the cost of each site, depending on operator preference, will be between $1,000 and $10,000.

The Executive Director of the Department of Environmental Quality, Alan Matheson, has reviewed and approved this fiscal analysis.

 

 

R307. Environmental Quality, Air 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 (VOCs) at oil or gas well sites.

 

R307-504-2. Definitions.

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

"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.

"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.

"Vapor Capture Line" means a connection hose, fitted with a valve that can be connected to tanker trucks during truck loading operations. The vapor capture line shall be designed, installed, operated, and maintained to optimize capture efficiency.[, used to collect VOC emissions from truck loading operations. The other end of the vapor capture line is connected to an existing tank battery or enclosed vapor combustor for the destruction of VOC emissions.]

"Well [production facility ]Site" means all equipment at a single stationary source directly associated with one or more oil wells or gas wells.

 

R307-504-3. Applicability.

(1) R307-504-4(1) applies to any person who loads or permits the loading of any intermediate hydrocarbon liquid or produced water at a well [production facility]site after January 1, 2015.

(2) R307-504-4(2) applies to owners and operators that are required to control emissions from storage vessels in accordance with R307-506.

 

R307-504-4. Tank Truck Loading Requirements.

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

(2) VOC emissions during truck loading operations shall be controlled at all times using a vapor capture line. The vapor capture line shall [achieve no less than 70% capture efficiency and 98% destruction efficiency (95% efficiency from VOC control device and 3% from auto ignitor requirements of R307-503) resulting in an overall control efficiency of no less than 68.6%. An equivalent control technology can be utilized if approved by the director and capable of meeting or exceeding a 68.6% overall control efficiency.]be connected from the tanker truck to a control device or process, resulting in a minimum 95 percent VOC destruction efficiency.

(a) Well sites in operation on January 1, 2018 shall comply with R307-504-4(2) no later than July 1, 2019.

 

KEY: air pollution, oil, gas

Date of Enactment or Last Substantive Amendment: [2017]2018

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