Oil and Gas Air Quality Authorizations in Texas Joe Shine Air Permits Division Texas Commission on Environmental Quality Environmental Trade Fair 2013

Today’s Topics Terminology Permitting Options Application Content Submission Options

Terminology Pollutants of Concern VOCs: formaldehyde and benzene H2S PM10 and PM2.5

Terminology Facility –stationary equipment that emits pollutants Engines Tanks Flares Separators Dehydrators

Terminology Site – a group of oil and gas facilities at a property Common control Equipment that relies on each other Within ¼ mile

Andy’s Site Produced water tank Oil tank Gunbarrel Separator Wellhead

Terminology Receptor Residence or other structure which is not used only by the O&G owner/operator Recreational Area

Andy and Nathan’s Property Andy’s Property Nathan’s Property Nathan’s House Andy’s House Mechanic Shop

Oil and Gas Permitting Options De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD Increasing Levels of Emissions

De Minimis Pipeline isolation valve sites meeting certain criteria

Oil and Gas Permitting Options De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD Increasing Levels of Emissions

Permits by Rule Must meet all conditions exactly Emission limits in §106.4 25 tpy of VOCs Meet all other applicable federal, state, and local requirements

PBR Options – Location Not in Barnett Shale counties New - 30 TAC §106.352(a)-(k) Existing – 30 TAC §106.352(l) Not in Barnett Shale counties New & Existing – 30 TAC §106.352(l) May voluntarily register under §106.352 (a)-(k)

Barnett Shale Counties

§106.352(l) – Sweet No registration required Meet §106.4 limits Various facilities included Flares follow §106.492 Compressors follow §106.512

§106.352(l) – Sour TCEQ sour = 24 ppmv Registration required ¼ mile distance required 4.0 lb/hr limit of sulfur compounds (not including sulfur oxides) Vent height based on sulfur compound limit

§106.352(a)–(k) Notification and registration through ePermits system Notification - Prior to construction or implementation of changes Registration Level 1 - Within 180 days from start of operation Level 2 - Within 90 days from start of operation

PBR Level 1 Emission Limits §106.352(a)–(k) PBR Level 1 Emission Limits Air Contaminant Steady-state lb/hr < 30 psig periodic lb/hr up to 150 hr/hr ≥ 30 psig periodic lb/hr up to 300 hr/yr Total tpy Total VOC 15 Total crude oil or condensate VOC 100 145 318 Total natural gas VOC 204 750 1,500 Benzene 1.95 7 15.4 2.8 Hydrogen sulfide 4.7 5.1 9.8 20.6 Sulfur dioxide 47 93.2 25 Nitrogen oxides 43.2 Carbon monoxide 45 PM2.5/PM10 10 5

PBR Level 2 Emission Limits §106.352(a)–(k) PBR Level 2 Emission Limits Air Contaminant Steady-state lb/hr < 30 psig periodic lb/hr up to 150 hr/hr ≥ 30 psig periodic lb/hr up to 300 hr/yr Total tpy Total VOC 25 Total crude oil or condensate VOC 100 145 318 Total natural gas VOC 356 750 1,500 Benzene 3.35 7 15.4 4.8 Hydrogen sulfide 6 9.8 Sulfur dioxide 63 93.2 Nitrogen oxides 54.4 250 Carbon monoxide 57 PM2.5 12.7 10 PM10 15

§106.352(a)–(k) Impacts Emission impacts tables Screening modeling Dispersion modeling Air contaminant lb/hr Benzene 0.039 Hydrogen sulfide 0.025 Sulfur dioxide 2 Nitrogen oxides 4

Other Oil and Gas PBRs Temporary Oil and Gas Facilities (§106.353) Stationary Engines and Turbines (§106.512) Flares (§106.492)

§106.353 Temporary Oil and Gas Facilities 90-day operation Must flare sour gas (per §106.492) Reduced sulfur emissions must be < 4 lbs/hr Vent heights must meet §106.352(l) +

Permits by Rule Guidance Federal Standards Applicability Table Emissions Calculations Spreadsheet Representative Gas and Liquid Analysis Control Device Charts

Oil and Gas Permitting Options De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD Increasing Levels of Emissions

Standard Permit Options Standard permit under §116.620 “Old Standard Permit” Non-rule standard permit Applies to new projects and dependent facilities in the Barnett Shale counties Sites in other counties can use it voluntarily

Standard Permit Under §116.620 “Old Standard Permit” Sour sites that can’t meet ¼ mile limit in §106.352(l) VOCs are >25tpy VOCs must be speciated using E=L/K Calculation techniques, emissions summary tables, etc. – same as a PBR application

Non-Rule Standard Permit Notification & registration online – STEERS (ePermits) system Notify - Prior to construction or implementation of changes Register Within 90 days from the start of operation Impacts – Same as §106.352 (a)-(k)

Non-Rule Standard Permit Emission Limits Contaminant Steady-state or < 30 psig (lb/hr) (normal emissions) > 30 psig Periodic (lb/hr) (MSS, loading, etc) Total (tpy) Total VOC 250 Total Crude Oil or condensate VOC 145 318 Total natural gas VOC 750 1,635 Benzene 7 15.4 10.2 Hydrogen sulfide 10.8 9.8 47 Sulfur dioxide 93.2 Nitrogen oxides 121 Carbon monoxide 104 PM10/PM2.5 28 15

Oil and Gas Permitting Options De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD De Minimis Permit by Rule Standard Permit State Permit NNSR and PSD Increasing Levels of Emissions

Submitting the Application

Application Admin. Documents Preferred Order Cover letter Core Data Form PI-7, PI-7-Cert, or PI-1S Copy of check or ePay voucher

When Do I Need to Certify? Emission limitations for Title V applicability Federal applicability Control/destruction efficiency claims Operating hours

Application Technical Documents Preferred Order Introduction Process and flow diagram Summary of emissions Emission calculations Impact analysis/ NAAQS Applicability Lab analysis Maps Tables

Summary of Emissions

Application Technical Documents Preferred Order Introduction Process and flow diagram Summary of emissions Emission calculations Impact analysis/ NAAQS Applicability Lab analysis Maps Tables

Analysis Site Specific/Representative Guidance at www.TexasOilandGasHelp.org Three criteria Reservoir/formation API gravity Process/treatment

Application Technical Documents Preferred Order Introduction Process and flow diagram Summary of emissions Emission calculations Impact analysis/ NAAQS Applicability Lab analysis Maps Tables

Deficiency Information Timeline extensions Reviewer deficiency process Day 1 Call and follow-up e-mail Day 4 Deadline reminder phone call/e-mail Day 5 Final phone call made Void letter issued

Oil and Gas Registrations Over the Last Four Fiscal Years 2010: 1455 2009: 2246 2011: 2756 Standard permits 2012: 3821 Permits by rule

New Processes and Adapting to Change

Enhanced Application Review e.a.r Purpose E-mail notification Expectations Reply

High Volume Submittals

High Volume Submittals Applicant schedules a pre-permit meeting Before the meeting, applicant submits an example application At the meeting, TCEQ and the applicant discuss: The process and expectations The process for electronic submittals TCEQ’s feedback on example application

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STEERS (ePermitting) Current Projects Historical notification New/existing Level 1, Level 2, and Non-rule notifications and registrations APD-Cert §106.263 §106.352(l) – New and existing registrations §116.620 – New and existing registrations

Air Permits main line: (512) 239-1250 Questions? airog@tceq.texas.gov Air Permits main line: (512) 239-1250

Oil and Gas Air Quality Authorizations in Texas Proposed MSS PBR Tasha Burns Air Permits Division Texas Commission on Environmental Quality Environmental Trade Fair 2013

Overview Applicability Highlights of the proposed PBR Timeline Compliance preparations

Proposed MSS PBR Planned MSS emissions No registration, no fee §106.4 emission limits Use with authorization for day-to-day operations

Proposed MSS PBR Activities/facilities authorized Maintenance program Listed activities Similar activities as those listed Additional activities Maintenance program

Proposed MSS PBR Timeline March 15-April 15 Comment Period August 22 Anticipated Effective Date July 31 Anticipated Adoption January 5, 2014 O&G Authorizes Planned MSS

Proposed MSS PBR Compliance Site-wide calculations Maintenance program Guidance in development

Where to Find More Information Tasha Burns: 512-239-5868 www.TexasOilandGasHelp.org Sign up for e-mail updates: Oil and Gas Compliance-Resources Updates airog@tceq.texas.gov Air Permits main line: (512) 239-1250