DOGM Collaborative Meeting Uinta Basin Ozone Status Tri-County Health Board Meeting Air Quality Update DOGM Collaborative Meeting October 11, 2018

Quick Background for Ozone Ozone formed by reaction of NOx and VOCs in the presence of sunlight Emissions of these precursors primarily from oil and gas sources in the Basin Winter conditions of clear skies and snowcover create strong inversions and high levels of ozone October 2015 National Ambient Air Quality Standard (NAAQS) for ozone lowered from 75 ppb to 70 ppb Evaluation of air quality data and several other factors have led to official designation of the Uinta Basin as a marginal nonattainment area for ozone Boundary of designation is all areas below the contiguous elevation perimeter of 6,250 ft This was effective as of August 3, 2018

Ozone Nonattainment Area

Marginal Nonattainment Designation Requirements Nonattainment New Source Review is applicable within one year of designation Requires new major sources with PTE of 100 tons per year (tpy) of NOx or VOCs , or existing sources with an increase of 40 tpy of NOx or VOCs, to meet lowest achievable emissions rate (LAER) and obtain emission reduction offsets from elsewhere within the nonattainment area at a ratio of 1 to 1.1 General Conformity applies within one year of designation Federal projects cannot cause or contribute to a NAAQS violation, increase the frequency or severity of any existing NAAQS violation or delay timely attainment of NAAQS or emission reduction goal Transportation Conformity only applies in areas with populations greater than 200,000 so not applicable to the Uinta Basin Emissions Inventory required within one year of designation date that includes all emission sources within the nonattainment area for a specific base year Marginal Nonattainment Area must achieve attainment of the standard within three years, so by August 3, 2021

Design Value To achieve attainment the air quality data for the Uinta Basin must achieve design value of 70 ppb or less Design value is determined by the three year average of the 4th highest 8-hour average ozone value measured at a monitor Attainment will be evaluated on the air quality data from calendar years 2018 to 2020

Uinta Basin Ozone Work Group Stakeholder group with representation from industry, local government, environmental advocates, academics, state and federal agencies Goal of group is through collaboration and shared knowledge to identify Effective, economically viable measures to reduce ozone levels in the Uinta Basin Policies, public information, educational resources, and beneficial actions to support ozone level reductions

New Oil and Gas Rules The new series of oil and gas rules (R307-505 to 509) were in effect as of March 2018 Required existing oil and gas sources on State land to register with UDAQ by July 1, 2018 To date 2,223 sources registered, DOGM data shows 2,859 producing oil and gas wells so about 78% of sources are registered

New Oil and Gas Rules Currently have Associated Gas Flaring Rule out for public comment – R307-511 (Oct 1-30) Rule supplements ability for sources to utilize the Permit-by-Rule option rather than applying for a permit Rule requires well sites to control or flare associated gas with production rather than venting

Oil and Gas Inventory

Oil and Gas Inventory

Oil and Gas Inventory

Oil and Gas Inventory

The Path Forward Completing the 2017 Oil and Gas Inventory as this will most likely be the baseline for future milestones as a nonattainment area Support the Uinta Basin Ozone Working Group in understanding the issues and possible volunteer actions to lower the design value over the next 3 years Continue to evaluate new oil and gas rules and communicate requirements to industry and stake holder to ensure compliance Composition study to better understand emissions and modeling Work with EPA and Tribe to coordinate and support consistent oil and gas regulatory requirements

Questions?/Discussion Ozone information and Air Quality Information http://www.deq.utah.gov/ Ozone SIP Coordinator for Uinta Basin Sheila Vance 801-536-4001 svance@utah.gov