Rule2022-24677

Federal Implementation Plan for Managing Emissions From Oil and Natural Gas Sources on Indian Country Lands Within the Uintah and Ouray Indian Reservation in Utah

Primary source

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Published
December 8, 2022
Effective
February 6, 2023

Issuing agencies

Environmental Protection Agency

Abstract

The Environmental Protection Agency (EPA) is promulgating a Federal Implementation Plan (FIP) under the Clean Air Act (CAA) and the EPA's implementing regulations that consists of emissions control requirements for existing, new, and modified oil and natural gas sources on Indian country lands within the Uintah and Ouray Indian Reservation (also referred to as the U&O Reservation) to address air quality in and around the Uinta Basin Ozone Nonattainment Area in northeast Utah. This U&O FIP establishes volatile organic compound (VOC) emissions control requirements for oil and natural gas production and processing on Indian country lands within the U&O Reservation. These requirements are consistent with those in place in areas within the Basin where the EPA has approved Utah to implement the CAA, and will help ensure that new development of oil and natural gas sources in the Basin will not interfere with attainment of the ozone National Ambient Air Quality Standard (NAAQS). VOC emissions control requirements for existing oil and natural gas sources have already been established in areas within the Basin where the EPA has approved Utah to implement the CAA, but did not exist for most sources on Indian country lands within the U&O Reservation. Additionally, this U&O FIP helps demonstrate that new development on Indian country lands within the U&O Reservation will not necessarily cause or contribute to an ozone NAAQS violation.

Full Text

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<title>Federal Register, Volume 87 Issue 235 (Thursday, December 8, 2022)</title>
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[Federal Register Volume 87, Number 235 (Thursday, December 8, 2022)]
[Rules and Regulations]
[Pages 75334-75386]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-24677]



[[Page 75333]]

Vol. 87

Thursday,

No. 235

December 8, 2022

Part II





Environmental Protection Agency





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40 CFR Part 49





Federal Implementation Plan for Managing Emissions From Oil and Natural 
Gas Sources on Indian Country Lands Within the Uintah and Ouray Indian 
Reservation in Utah; Final Rule

Federal Register / Vol. 87, No. 235 / Thursday, December 8, 2022 / 
Rules and Regulations

[[Page 75334]]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 49

[EPA-R08-OAR-2015-0709; FRL-5872.1-01-R8]
RIN 2008-AA03


Federal Implementation Plan for Managing Emissions From Oil and 
Natural Gas Sources on Indian Country Lands Within the Uintah and Ouray 
Indian Reservation in Utah

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: The Environmental Protection Agency (EPA) is promulgating a 
Federal Implementation Plan (FIP) under the Clean Air Act (CAA) and the 
EPA's implementing regulations that consists of emissions control 
requirements for existing, new, and modified oil and natural gas 
sources on Indian country lands within the Uintah and Ouray Indian 
Reservation (also referred to as the U&O Reservation) to address air 
quality in and around the Uinta Basin Ozone Nonattainment Area in 
northeast Utah. This U&O FIP establishes volatile organic compound 
(VOC) emissions control requirements for oil and natural gas production 
and processing on Indian country lands within the U&O Reservation. 
These requirements are consistent with those in place in areas within 
the Basin where the EPA has approved Utah to implement the CAA, and 
will help ensure that new development of oil and natural gas sources in 
the Basin will not interfere with attainment of the ozone National 
Ambient Air Quality Standard (NAAQS). VOC emissions control 
requirements for existing oil and natural gas sources have already been 
established in areas within the Basin where the EPA has approved Utah 
to implement the CAA, but did not exist for most sources on Indian 
country lands within the U&O Reservation. Additionally, this U&O FIP 
helps demonstrate that new development on Indian country lands within 
the U&O Reservation will not necessarily cause or contribute to an 
ozone NAAQS violation.

DATES: This final rule is effective on February 6, 2023.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-R08-OAR-2015-0709. All documents in the docket are 
listed on the <a href="http://www.regulations.gov">www.regulations.gov</a> website. In some instances, we 
reference documents from the dockets for other rulemakings. For this 
final rule, we have included by reference Docket ID No. EPA-HQ-OAR-
2010-0505, Docket ID No. EPA-R08-OAR-2012-0479, Docket ID No. EPA-HQ-
OAR-2003-0076, and Docket ID No. EPA-HQ-OAR-2014-0606 into Docket ID 
No. EPA-R08-OAR-2015-0709. Although listed in the index, some 
information is not publicly available, e.g., CBI or other information 
for which disclosure is restricted by statute. Certain other material, 
such as copyrighted material, will be publicly available only in hard 
copy. Publicly available docket materials are available through <a href="http://www.regulations.gov">http://www.regulations.gov</a>, or please contact the person identified in the FOR 
FURTHER INFORMATION CONTACT section for additional availability 
information.

FOR FURTHER INFORMATION CONTACT: Ms. Claudia Smith, U.S. EPA, Region 8, 
Air and Radiation Division, Mail Code 8ARD-IO, 1595 Wynkoop Street, 
Denver, Colorado 80202-1129, telephone number: (303) 312-6520, email 
address: <a href="/cdn-cgi/l/email-protection#73001e1a071b5d101f1206171a12331603125d141c05"><span class="__cf_email__" data-cfemail="abd8c6c2dfc385c8c7cadecfc2caebcedbca85ccc4dd">[email&#160;protected]</span></a>.

SUPPLEMENTARY INFORMATION:

Definitions

    Act or CAA: Clean Air Act, unless the context indicates 
otherwise.
    AVO: Audio, Visual and Olfactory.
    BTU: British Thermal Unit.
    CBI: Confidential Business Information.
    CEDRI: Compliance Emissions Data Reporting Interface.
    CO: carbon monoxide.
    EPA, we, us or our: The United States Environmental Protection 
Agency.
    FBIR: Fort Berthold Indian Reservation.
    FIP: Federal Implementation Plan.
    GOR: gas-to-oil ratio.
    HAP: hazardous air pollutants.
    NAAQS: National Ambient Air Quality Standards.
    NAICS: North American Industry Classification System.
    NESHAP: National Emission Standards for Hazardous Air 
Pollutants.
    NOx: nitrogen oxides.
    NO<INF>2</INF>: nitrogen dioxide.
    NSPS: New Source Performance Standards.
    NSR: New Source Review.
    PM: particulate matter.
    PSD: Prevention of Significant Deterioration.
    PTE: potential to emit.
    RIA: Regulatory Impact Analysis.
    SCADA: Supervisory Control and Data Acquisition.
    SIP: State Implementation Plan.
    SO<INF>2</INF>: sulfur dioxide.
    TAR: Tribal Authority Rule.
    TAS: treatment in a similar manner as a state.
    TIP: Tribal Implementation Plan.
    tpy: ton(s) per year
    UDEQ: Utah Department of Environmental Quality.
    U&O Reservation or the Reservation: The Uintah & Ouray Indian 
Reservation.
    VOC: volatile organic compound(s).
    VRU: vapor recovery unit.

    Organization of this document. The information presented in this 
preamble is organized as follows:

I. Executive Summary
    A. Purpose of, and Agency Authority for, the Regulatory Action
    B. Summary of the Major Provisions of This Final Rule
    C. Costs and Benefits
II. General Information
    A. Does this action apply to me?
    B. Where can I get a copy of this document and related 
information?
    C. Judicial Review
III. Background
    A. Uintah and Ouray Indian Reservation
    B. Tribal Authority Rule
    C. Federal Indian Country Minor NSR Rule
    D. Air Quality and Attainment Status
    E. Emissions Information
    F. What is a FIP?
    G. Oil and Natural Gas Industry in Uinta Basin
IV. Summary of the Final U&O FIP
    A. Overview
    B. Introduction
    C. Provisions for Delegation of Administration to the Ute Indian 
Tribe
    D. General Provisions
    E. Emissions Inventory Requirements
    F. VOC Emissions Control Requirements
    G. Monitoring and Testing Requirements
    H. Recordkeeping Requirements
    I. Notification and Reporting Requirements
V. Significant Changes Since Proposal
    A. Final Rule Effective Date and Compliance Deadline
    B. Triennial Emissions Inventory
    C. Streamlined Construction Authorization
    D. Applicability
    E. Monitoring and Testing
    F. Recordkeeping and Reporting
VI. Summary of Significant Comments and Responses
    A. Major Comments Concerning Effective Date and Compliance 
Deadline
    B. Major Comments Concerning Regulatory Authority for Minor 
Source Streamlined Construction Authorization
    C. Major Comments Concerning Rule Applicability
    D. Major Comments Concerning Monitoring and Testing Requirements
    E. Major Comments Concerning Recordkeeping and Reporting
    F. Major Comments Concerning Cost-Benefit Analysis
    G. Other Comments of Significant Interest
VII. Impacts of This Final FIP
    A. Air Emissions Impacts
    B. Energy Impacts
    C. Compliance Costs
    D. Economic and Employment Impacts
    E. Benefits
VIII. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive Order 13563: Improving Regulation and Regulatory Review
    B. Paperwork Reduction Act (PRA)
    C. Regulatory Flexibility Act (RFA)
    D. Unfunded Mandates Reform Act (UMRA)

[[Page 75335]]

    E. Executive Order 13132: Federalism
    F. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    G. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    I. National Technology Transfer and Advancement Act (NTTAA)
    J. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    K. Congressional Review Act (CRA)

I. Executive Summary

A. Purpose of, and Agency Authority for, the Regulatory Action

    We are finalizing this action using our authority under sections 
301(a) and 301(d)(4) of the CAA and 40 CFR 49.11 to promulgate FIP 
provisions that are necessary and appropriate to protect air quality on 
the Indian country lands within the U&O Reservation and in nearby 
communities. The purpose of this U&O FIP is threefold.
    First, and primarily, this U&O FIP will improve air quality on the 
U&O Reservation by addressing emissions from oil and natural gas 
production and natural gas processing activities on Indian country 
lands that contribute to the winter ozone problem in the physiographic 
region known as the Uinta Basin,\1\ within which the U&O Reservation is 
located, and where ambient ozone levels have exceeded both the 2008 and 
the 2015 ozone NAAQS.\2\ In 2018, the EPA designated portions of the 
Uinta Basin, including large portions of the Indian country lands 
within the U&O Reservation, as a Marginal nonattainment area for the 
2015 ozone NAAQS.\3\
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    \1\ For this rulemaking, the EPA defines the geographic scope of 
the Uinta Basin to be consistent with the Uinta Basin 2014 Air 
Agencies Oil and Gas Emissions Inventory (herein after referred to 
as the 2014 Uinta Basin Emissions Inventory), which encompasses 
Duchesne and Uintah counties. The 2014 Uinta Basin Emissions 
Inventory is available at: <a href="https://deq.utah.gov/air-quality/2014-air-agencies-oil-and-gas-emissions-inventory-uinta-basin">https://deq.utah.gov/air-quality/2014-air-agencies-oil-and-gas-emissions-inventory-uinta-basin</a>, accessed 
Mar. 11, 2022.
    \2\ The 2015 ozone NAAQS is 70 parts per billion (ppb) (40 CFR 
50.19). The 2008 ozone NAAQS is 75 ppb. Historical ozone NAAQS 
information is available at: <a href="https://www.epa.gov/ozone-pollution/table-historical-ozone-national-ambient-air-quality-standards-naaqs">https://www.epa.gov/ozone-pollution/table-historical-ozone-national-ambient-air-quality-standards-naaqs</a>, 
accessed Mar. 11, 2022.
    \3\ On April 30, 2018, the EPA designated all of the Uinta Basin 
below a contiguous external perimeter of 6,250 ft. in elevation as a 
Marginal nonattainment area under the 2015 ozone NAAQS (83 FR 
25776). This includes areas of the Basin where the EPA has approved 
the UDEQ to implement the CAA and Indian country lands within the 
U&O Reservation (where the EPA is promulgating this FIP). For more 
information, see <a href="https://www.epa.gov/ozone-designations/additional-designations-2015-ozone-standards">https://www.epa.gov/ozone-designations/additional-designations-2015-ozone-standards</a>, accessed Mar. 11, 2022.
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    Air quality ozone monitoring data from the Uinta Basin in the years 
2018, 2019 and 2020 indicates that the three-year average of the fourth 
maximum ambient air concentration measurements is 76 ppb, which 
violates the 2015 ozone NAAQS of 70 ppb. On April 13, 2022, the EPA 
proposed to grant a 1-year attainment date extension for the Uinta 
Basin Ozone Nonattainment area.\4\ The proposal explains that 
preliminary 2021 ozone monitoring data indicate that the area may not 
attain the 2015 ozone NAAQS by the proposed extended attainment date of 
August 3, 2022, but that the area could meet the air quality criteria 
for a second 1-year extension. The Uinta Basin area's preliminary 2019-
2021 design value was 78 ppb and the preliminary 2021 fourth highest 
daily maximum 8-hour concentration value was 72 ppb. To qualify for a 
second 1-year extension, an area's fourth highest daily maximum 8-hour 
value, averaged over both the original attainment year and the first 
extension year, must be 70 ppb or less. If the preliminary 2021 ozone 
data are certified, then the fourth highest daily maximum 8-hour value, 
averaged over 2020 and 2021, would be 69 ppb.\5\
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    \4\ See 87 FR 21842 (Apr. 13, 2022), available at <a href="https://www.govinfo.gov/content/pkg/FR-2022-04-13/pdf/2022-07513.pdf">https://www.govinfo.gov/content/pkg/FR-2022-04-13/pdf/2022-07513.pdf</a>, 
accessed Apr. 29, 2022.
    \5\ Additional details on the proposed extension of the 
attainment date are discussed in Section III.D. of this preamble.
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    The winter-time ozone formation in the Uinta Basin is caused by 
emissions of VOC and NO<INF>X</INF> reacting in the presence of 
sunlight and widespread snow cover during temperature inversion 
conditions to form ground-level ozone at levels that exceed the ozone 
NAAQS and are therefore detrimental to public health. The main sources 
in the Basin responsible for VOC and NO<INF>X</INF> emissions are 
existing oil and natural gas facilities. As explained in section III.D. 
(Air Quality and Attainment Status), most available information 
indicates that winter ozone formation in the Basin is driven by local 
emissions and is sensitive to changes in VOC emissions. There is 
greater uncertainty as to the sensitivity to changes in NO<INF>X</INF> 
emissions. As explained in section III.E. (Emissions Information), 
available information indicates that 97 percent of anthropogenic VOC 
emissions in the Basin are from existing oil and natural gas activity, 
and that about 89 percent of those emissions are from existing sources 
on the Indian country lands within the U&O Reservation and in the 
nonattainment area. Before this rulemaking, VOC emissions control 
requirements for existing oil and natural gas sources existed in areas 
of the Basin where the EPA has approved the UDEQ to implement the CAA 
but did not exist in Indian country lands within the U&O Reservation. 
As explained in this final rulemaking and in the supporting information 
in the record, VOC control requirements are necessary to protect air 
quality on Indian country lands within the U&O Reservation.
    The CAA does not require an attainment plan for Marginal ozone 
nonattainment areas.\6\ Accordingly, this U&O FIP is not intended to 
bring the Uinta Basin back into attainment with the ozone standard. 
However, we do anticipate that this U&O FIP will make a meaningful 
improvement in air quality through the reduction of VOC, an ozone 
precursor, while also allowing continued construction authorization of 
new development in the Basin and the positive economic impact that this 
development brings to the Tribe.
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    \6\ On March 9, 2018 (83 FR 10376), the EPA published the 
Classifications Rule, which established how the statutory 
classifications apply for the 2015 ozone NAAQS, including the air 
quality thresholds for each classification category. Based on this 
rule, each area with a 3-year design value of 71 ppb to 81 ppb, 
based on monitoring data from 2014-2016, was to be classified as a 
Marginal nonattainment area. The requirements for Marginal ozone 
nonattainment areas are specified in CAA Title I, Part D, subpart 2 
(see 42 U.S.C. 7511a(a)) and include: (1) Comprehensive, accurate, 
current inventory of actual ozone precursor emissions from all 
sources; (2) Corrections, if necessary, to existing implementation 
plans to meet specific requirements, including for nonattainment 
major source permitting; (3) Triennial emissions inventory updates; 
and (4) General offset requirements for new and modified major 
sources.
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    This final action is driven by the EPA's authority and 
responsibility to protect air quality in Indian country under sections 
301(a) and 301(d)(4) of the CAA and 40 CFR 49.11. Regarding 
preconstruction review of proposed new or modified sources \7\ of air 
pollution in nonattainment areas in Indian country, the reviewing 
authority must demonstrate that the minor source or modification would 
not cause or contribute to a NAAQS violation in the nonattainment area 
(see 40 CFR 49.155(a)(7)(ii)) \8\ and that preconstruction review of 
new major stationary sources and major

[[Page 75336]]

modifications to existing major stationary sources located in an area 
designated as nonattainment for any NAAQS would provide a net air 
quality benefit in the nonattainment area (see 40 CFR 49.169(b)(4)). 
While the CAA Indian country nonattainment permit program for major 
sources specifies offset requirements as the method to make such a 
demonstration (see 40 CFR 49.169(b)(3)), the CAA Indian country 
nonattainment permit program for minor sources is not prescriptive as 
to how to make such a demonstration. The requirements of this U&O FIP 
will result in VOC emission reductions from existing sources,\9\ 
thereby improving air quality, and will also allow the EPA to rely on 
those reductions to meet the NAAQS protection requirements for 
continued construction authorization of new or modified minor sources 
in the nonattainment area.
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    \7\ 40 CFR 49.152 defines ``minor modification at a major 
source,'' ``minor source,'' ``modification,'' ``synthetic minor 
source,'' and ``true minor source,'' all of which are subject to the 
permitting requirements of the Federal Minor New Source Review 
Program in Indian Country, at 40 CFR 49.151-49.165.
    \8\ 40 CFR 49.155 applies to your permit if you are subject to 
this program under 40 CFR 49.153(a) for construction of a new minor 
source, synthetic minor source or a modification at an existing 
source.
    \9\ Existing sources are sources that commence construction 
before the effective date of this FIP, per 40 CFR 49.4169(c).
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    This U&O FIP focuses on VOC emission reductions because 
improvements in winter ozone levels in the Basin are most likely to 
come from VOC emissions reductions from existing oil and natural gas 
sources.\10\ Further, after a careful analysis of initial emissions 
data provided by industry and later updated using information obtained 
from two studies in the 2017 Uinta Basin Oil and Gas Emissions 
Inventory Update (referred to herein as the UBEI2017-Update),\11\ we 
determined that most of the existing oil and natural gas sources on the 
Indian country lands within the U&O Reservation are largely 
uncontrolled for VOC and other emissions. Therefore, in developing this 
rule, we concentrated on determining the most effective control 
requirements to reduce VOC emissions from oil and natural gas sources 
to address the winter ozone exceedances. This is not to say that 
reductions in NO<INF>X</INF> would not be beneficial in winter months. 
The EPA may decide to focus on NO<INF>X</INF> reductions in future 
rulemakings if additional action is required to address air quality 
impacts from ozone pollution in the Basin.
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    \10\ See Uinta Basin Ozone Studies (field studies conducted in 
the Basin from 2011 to 2014), available at <a href="https://deq.utah.gov/air-quality/uinta-basin-ozone-studies-ubos">https://deq.utah.gov/air-quality/uinta-basin-ozone-studies-ubos</a>, accessed Mar. 11, 2022. The 
RIA for this rule contains detailed discussion of the studies and 
can be viewed in the docket for this rulemaking (Docket ID No. EPA-
R08-OAR-2015-0709).
    \11\ 2017 Uinta Basin Oil and Natural Gas Emissions Inventory 
Update (UBEI2017-Update). The inventory and supporting analysis can 
be viewed in the docket for this rule, Microsoft Excel spreadsheet 
titled, ``UO FIP cost and emissions analysis.xlsx'' (Docket ID No. 
EPA-R08-OAR-2015-0709). The inventory covers sources in Uintah and 
Duchesne Counties. The UDEQ submitted an earlier version of the 2017 
inventory to the 2017 NEI and plans to submit the updated emissions 
at a future date. The UDEQ, the EPA, and the Ute Indian Tribe 
updated storage vessel, pneumatic controller, pneumatic pump, 
fugitive, gas well liquid unloading, blowdowns and pigging and 
oilfield wastewater emissions using updated emissions factors 
obtained from the Uinta Basin Composition Study and the acquisition 
of about 200 of oilfield wastewater (produced water) samples. The 
studies that updated the emissions factors are described in two 
White Papers available in the docket, ``UINTA BASIN VOC COMPOSITION 
STUDY IMPACTS ON THE 2017 OIL AND GAS EMISSIONS INVENTORY November 
2020--Revised March 2021--White Paper'' (``DAQ-2021-004302.pdf''), 
and ``PRODUCED WATER DISPOSAL FACILITY EMISSION FACTORS & THEIR 
IMPACT ON THE 2017 OIL AND GAS EMISSIONS INVENTORY November 2020--
Revised April 2021--White Paper'' (``DAQ-2020-016022.pdf'').
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    Second, the control requirements being finalized are intended to be 
the same as or consistent with the requirements applicable to similar 
sources in areas of the Basin where the EPA has approved the UDEQ to 
implement the CAA, to promote a more consistent regulatory environment 
across the Basin. Where we are regulating existing equipment or 
activities that are also covered by EPA standards for the oil and 
natural gas source category, but do not meet the applicability criteria 
of those standards, we also strove for consistency with those EPA 
standards.
    Finally, given the number of oil and natural gas projects in the 
Basin that are already approved or are in the federal review and 
approval process through evaluations conducted under the National 
Environmental Policy Act (NEPA) by other federal agencies,\12\ in the 
coming years the EPA could receive a large number of applications for 
authorization to construct new and modified synthetic minor oil and 
natural gas sources on Indian country lands within the U&O Reservation, 
as well as registrations of new and modified true minor oil and natural 
gas sources on Indian country lands within the U&O Reservation under 
the Federal Implementation Plan for True Minor Sources in Indian 
Country in the Oil and Natural Gas Production and Natural Gas 
Processing Segments of the Oil and Natural Gas Sector (codified at 40 
CFR part 49, subpart C, 40 CFR 49.101-49.105) \13\ (National O&NG FIP). 
In addition to providing a streamlined construction authorization 
mechanism to new and modified true minor oil and natural gas 
sources,\14\ the National O&NG FIP requires compliance with a suite of 
eight federal oil and natural gas source category emissions standards 
\15\ for new and modified sources, as applicable. In 2019, the EPA 
extended the National O&NG FIP's streamlined construction authorization 
mechanism for true minor oil and natural gas sources in Indian country 
to the portions of the U&O Reservation within the Uinta Basin ozone 
nonattainment area.\16\ We are relying on the existing source VOC 
emissions reductions that will be achieved under this U&O FIP to ensure 
that the limited extension of the National O&NG FIP to the Indian 
country portion of the Uinta Basin Ozone Nonattainment Area will not 
harm the area's ability to attain the NAAQS. This is described in 
greater detail in Sections V.C. and VI.B.
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    \12\ Spreadsheet titled, ``Uinta Basin OG NEPA Evaluations 
9.11.19.pdf,'' available in the Docket for this rulemaking (Docket 
ID No. EPA-R08-OAR-2015-0709), lists oil and natural gas production 
projects in the Uinta Basin that have been subject to evaluation 
under NEPA.
    \13\ Final Rule: Federal Implementation Plan for True Minor 
Sources in Indian Country in the Oil and Natural Gas Production and 
Natural Gas Processing Segments of the Oil and Natural Gas Sector; 
Amendments to the Federal Minor New Source Review Program in Indian 
Country to Address Requirements for True Minor Sources in the Oil 
and Natural Gas Sector, 81 FR 35944 (June 3, 2016); docket No. EPA-
HQ-OAR-2014-0606, available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, accessed 
Mar. 11, 2022.
    \14\ As defined in the Federal Minor New Source Review Program 
in Indian Country at 40 CFR 49.152, a true minor source is a source 
that emits or has the potential to emit regulated NSR pollutants in 
amounts that are less than the major source thresholds in 40 CFR 
49.167 (federal preconstruction permit program for major sources in 
nonattainment areas in Indian country) or 40 CFR 52.21 (federal 
preconstruction permit program for major sources in attainment/
unclassifiable areas), as applicable, but equal to or greater than 
the minor NSR thresholds in 40 CFR 49.153 (federal preconstruction 
permit program for minor sources in Indian country), without the 
need to take an enforceable restriction to reduce its potential to 
emit to such levels.
    \15\ See 40 CFR 49.105. The National O&NG FIP specifies that 
sources must comply with, as applicable, the following standards: 
NESHAP 40 CFR part 63, subpart DDDDD; NESHAP 40 CFR part 63, subpart 
ZZZZ; NSPS IIII 40 CFR part 60, subpart IIII; NSPS 40 CFR part 60, 
subpart JJJJ; NSPS 40 CFR part 60, subpart Kb; NSPS 40 CFR part 60, 
subpart OOOOa; NESHAP 40 CFR part 63, subpart HH; and NSPS 40 CFR 
part 60, subpart KKKK.
    \16\ Final Rule: Amendments to Federal Implementation Plan for 
Managing Air Emissions from True Minor Sources in Indian Country in 
the Oil and Natural Gas Production and Natural Gas Processing 
Segments of the Oil and Natural Gas Sector, 84 FR 21240 (May 14, 
2019); Docket No. EPA-HQ-OAR-2014-0606, available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, accessed Mar. 11, 2022.
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    In the preamble to the final National O&NG FIP published on June 3, 
2016, the EPA stated that the most appropriate means for addressing air 
quality concerns on specific reservations due to impacts from oil and 
natural gas activity is through area- or reservation-specific FIPs, not 
through the National O&NG FIP. Further, we stated that such FIPs may 
need to include requirements for existing, new, and modified sources

[[Page 75337]]

beyond those in the National O&NG FIP.\17\ Consistent with that 
approach, new and modified true minor oil and natural gas sources on 
Indian country lands within the U&O Reservation that would use the 
National O&NG FIP for construction authorization may have to comply 
with additional requirements for certain equipment or activities not 
covered by the eight federal standards.\18\
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    \17\ See 81 FR 35964, 35968.
    \18\ As described in detail later, this action exempts certain 
equipment and activities that are subject to the emissions control 
requirements of a subset of the eight federal standards in the 
National O&NG FIP from having to comply with the emissions control 
requirements in this action for the same equipment and activities. 
Other types of equipment, such as small and remote glycol 
dehydrators and storage vessels with potential emissions <= 6 tpy 
VOC, are not regulated by those federal standards but are regulated 
in this action.
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    In summary, this U&O FIP is intended to: (1) improve air quality on 
Indian country lands within the U&O Reservation; (2) promote a more 
consistent regulatory environment across the Basin; and (3) ensure that 
emissions reductions will be achieved that will ensure that new 
development, under both source-specific minor source permitting and the 
National O&NG FIP's streamlined construction authorization mechanism 
for new or modified true minor oil and natural gas sources, will not 
interfere with attainment of the NAAQS.

B. Summary of the Major Provisions of This Final Rule

    The following is a summary of each key requirement in the final 
action. As explained earlier, the final FIP was developed to maximize 
air quality improvement, in a manner that promotes a more consistent 
regulatory environment across all areas in the Uinta Basin, such that 
covered sources within Indian country on the U&O Reservation will be 
regulated in a manner similar to how they would be regulated if located 
in areas in the Basin where EPA has approved the UDEQ to implement the 
CAA. We attempted to achieve this goal by providing as much consistency 
as possible in the FIP with current federal standards for the oil and 
natural gas industry, including NSPS 40 CFR part 60, subparts OOOO and 
OOOOa (NSPS OOOO and OOOOa); NESHAP 40 CFR part 63, subpart HH (NESHAP 
HH); and the Control Techniques Guidelines for reducing smog-forming 
VOC emissions from existing oil and natural gas equipment and processes 
in certain states and areas with smog problems (Oil and Gas CTG).\19\ 
The provisions in the final U&O FIP are informed by EPA's evaluation of 
these several applicable federal authorities as well as an evaluation 
of current UDEQ requirements that apply in the Uinta Basin outside of 
the Indian country lands within the U&O Reservation (areas of the Basin 
where the EPA has approved the UDEQ to implement the CAA). Where the 
EPA identified differences in these authorities, we considered the 
facts specific to the U&O Reservation in conjunction with the goals of 
the FIP to decide what to include in the final FIP. Our analysis was 
somewhat complicated by a recent joint resolution under the 
Congressional Review Act (CRA),\20\ which disapproved policy revisions 
made in 2020 to NSPS OOOO and OOOOa \21\ and thereby reinstated 
standards from the 2012 NSPS OOOO and 2016 NSPS OOOOa.\22\ The 
resolution did not, however, disapprove technical revisions made in a 
separate rulemaking in 2020 to NSPS OOOOa,\23\ which remain in place 
today. These two events resulted in regulatory inconsistencies between 
the NSPS OOOOa methane and VOC standards.\24\ Further, the Oil and Gas 
CTG in some respects includes recommendations that do not match exactly 
with the requirements in the 2016 NSPS OOOOa methane standards.\25\ In 
addition, the EPA recently proposed a rule to regulate methane and VOC 
emissions from existing, new, and modified sources in the oil and 
natural gas industry that would revise existing standards under NSPS 
OOOOa, establish new VOC and methane standards for emissions sources 
not previously covered by NSPS OOOOa, and establish methane emissions 
guidelines for existing sources (Oil and Natural Gas Sector Climate 
Review Proposed Rule).\26\ As part of that proposed rule, the EPA 
addressed the inconsistencies between the methane and VOC standards in 
NSPS OOOOa by proposing to repeal certain NSPS OOOOa amendments that 
were made in the 2020 Technical Rule.\27\ Despite these complications, 
EPA has focused its analysis for this U&O FIP on the currently 
applicable state and federal requirements and guidance.
---------------------------------------------------------------------------

    \19\ Available at <a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/2016-control-techniques-guidelines-oil-and">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/2016-control-techniques-guidelines-oil-and</a>, accessed Mar. 11, 2022. CTGs are not regulations and do not 
impose legal requirements directly on pollution sources; rather, 
they provide recommendations for state and local air agencies to 
consider as they determine what emissions limits to apply to covered 
sources in their jurisdictions in order to meet RACT requirements.
    \20\ 5 U.S.C. 801-808.
    \21\ 85 FR 57018 (Sept. 14, 2020) (``2020 Policy Rule''; as of 
June 30, 2021, no longer in effect due to CRA disapproval).
    \22\ Public Law 17-23 (June 30, 2021) (resolving that Congress 
``disapproves the [2020 Policy Rule] . . . and such rule shall have 
no force or effect'').
    \23\ 85 FR 57398 (Sept. 15, 2020) (``2020 Technical Rule'').
    \24\ For requirements that currently apply, see Congressional 
Review Act Resolution to Disapprove EPA's 2020 Oil and Gas Policy 
Rule. Questions and Answers. U.S. Environmental Protections Agency. 
Office of Air Quality Planning and Standards. June 30, 2021, 
available at <a href="https://www.epa.gov/system/files/documents/2021-07/qa_cra_for_2020_oil_and_gas_policy_rule.6.30.2021.pdf">https://www.epa.gov/system/files/documents/2021-07/qa_cra_for_2020_oil_and_gas_policy_rule.6.30.2021.pdf</a>, accessed Mar. 
11, 2022.
    \25\ For example, while the CTG recommends exempting low-
production well sites from monitoring fugitive VOC emissions, the 
current OOOOa methane standards do not have such exemption.
    \26\ Proposed Rule. Standards of Performance for New, 
Reconstructed, and Modified Sources and Emissions Guidelines for 
Existing Sources: Oil and Natural Gas Sector Climate Review. See 86 
FR 63110, November 15, 2021, available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (Document ID No. EPA-HQ-OAR-2021-0317-0001), 
accessed Mar. 14, 2022. On the same day that this action is being 
signed, the Administrator has also signed a supplemental notice 
which proposes to update and expand on the 2021 Climate Review 
proposal. See Supplemental notice of proposed rulemaking. Standards 
of Performance for New, Reconstructed, and Modified Sources and 
Emissions Guidelines for Existing Sources: Oil and Natural Gas 
Sector Climate Review. Signed by the EPA Administrator on November 
8, 2022, available at <a href="https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/epa-issues-supplemental-proposal-reduce">https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry/epa-issues-supplemental-proposal-reduce</a>. Today's action discusses certain aspects of the 2021 Climate 
Review proposal, but does not attempt to describe the 2022 
supplemental proposal, in light of the concurrent signature of the 
latter action.
    \27\ For example, the EPA is proposing to repeal the 2020 
Technical Rule amendments that exempted low-production well sites 
from monitoring fugitive VOC emissions, and those that changed 
fugitive VOC emissions monitoring requirements at gathering and 
boosting compressor stations from quarterly to semi-annually. The 
proposed rule would also establish an LDAR applicability threshold 
for existing, new, and modified oil and natural gas well sites of 3 
tpy site-wide methane fugitive emissions (and co-proposed an 
alternative threshold of 8 tpy site-wide methane fugitive 
emissions).
---------------------------------------------------------------------------

    That said, we acknowledge that the Agency's thinking on these 
issues has evolved since we issued NSPS OOOOa and the CTG in 2016. 
Among other developments, new information and analysis have been 
presented in the Oil and Natural Gas Sector Climate Review Proposed 
Rule that will likely be relevant for reducing emissions on the U&O 
Reservation. When the EPA proposed this FIP, however, the Agency had 
not yet proposed that other rule, and the Climate Review Rule is still 
being developed. In the interest of moving quickly to achieve emissions 
reductions, the EPA finds that it is necessary and appropriate to 
finalize this FIP now. Our assessment of new, potentially relevant 
information will continue in the context of the Oil and Natural Gas 
Sector Climate Review Rule. If we finalize that proposed national rule 
in the future, its

[[Page 75338]]

requirements will apply directly to covered sources. As to sources not 
covered by a final national rule, the EPA may find it necessary or 
appropriate to revisit this final action in the future and revise this 
FIP based on information evaluated in issuance of a final Climate 
Review Rule, providing public notice of the opportunity for review and 
comment on any such revisions as part of the required rulemaking 
process. Also, if the Uinta Basin Ozone Nonattainment Area's Marginal 
classification is reclassified (``bumped up'') to a Moderate 
nonattainment classification, or if air quality concerns otherwise 
warrant, we may conclude that further rulemaking is necessary or 
appropriate.
    General applicability: The final rule applies to owners or 
operators of oil and natural gas sources that produce oil and natural 
gas or process natural gas, that are located on Indian country lands 
within the U&O Reservation, and that meet the applicability criteria 
specified for each set of requirements. The final rule is effective 60 
days after the date of publication in the Federal Register. For new and 
modified sources that construct on or after the effective date of this 
final rule, compliance is required upon startup. Compliance for 
existing sources that commence construction before the effective date 
of the final rule is required no later than 12 months after the 
effective date of the final rule. The final rule allows owners or 
operators to request approval, on a case-specific basis and prior to 
the compliance deadline, of an extension of the compliance deadline for 
existing sources.
    Delegation of authority of administration to the Tribe: The final 
rule contains provisions for the Ute Indian Tribe to request delegation 
to assist the EPA with administration of the federal rule and the 
process by which the EPA may delegate such authority.
    Emissions inventory: The final rule requires that each owner and 
operator of affected oil and natural gas sources with the potential to 
emit one or more NSR-regulated pollutants at levels greater than or 
equal to 1 tpy must submit an inventory of actual emissions for each 
emissions unit to the EPA every three years that covers emissions from 
the previous calendar year (OMB Control No. 2008--New (2539.02)). The 
emissions inventory serves the purpose of the triennial collection of 
comprehensive Uinta Basin oil and natural gas emissions by the EPA, the 
Ute Indian Tribe, and UDEQ, and corresponds with the years that 
emissions inventory information is collected for the EPA National 
Emissions Inventory (NEI).\28\
---------------------------------------------------------------------------

    \28\ Information available at <a href="https://www.epa.gov/air-emissions-inventories/national-emissions-inventory-nei">https://www.epa.gov/air-emissions-inventories/national-emissions-inventory-nei</a>, accessed Mar. 11, 
2022.
---------------------------------------------------------------------------

    Storage vessels, glycol dehydrators and pneumatic pumps: The final 
rule contains federally enforceable requirements for owners and 
operators of each existing, new, and modified oil and natural gas 
source that has the potential to emit 4 tons per year of VOC or more 
from the collection of all storage vessels, glycol dehydrators and 
pneumatic pumps. The rule requires that each affected oil and natural 
gas source collect and route all VOC emissions from each storage 
vessels, glycol dehydrator and pneumatic pump through a closed-vent 
system to an operating system designed to recover 100 percent of the 
emissions and recycle them for use in a process unit or incorporate 
them into a product, or route them to a flare or other control device 
designed and operated to achieve at least 95.0 percent continuous VOC 
emissions control efficiency.
    Covers and closed-vent systems: The final rule requires owners and 
operators of affected existing, new, and modified oil and natural gas 
sources that are required to control VOC emissions from the collection 
of all storage vessels, glycol dehydrators and pneumatic pumps, to: use 
covers on any affected storage vessels that ensure flashing, working, 
standing, and breathing losses are efficiently captured; and to capture 
and route emissions from any affected storage vessel, glycol dehydrator 
and pneumatic pump through closed-vent systems with equipment that 
ensures all VOC emissions make it to the respective process or VOC 
emissions control device. The rule contains construction and 
operational requirements that are intended to provide legal and 
practicable enforceability to ensure that all captured emissions are 
routed to their intended destination with no detectable emissions.
    Control devices: The final rule contains legally and practicably 
enforceable construction, work practice, and operational requirements 
for each required flare or enclosed combustor. Each flare must be 
designed and operated according to the requirements of 40 CFR 60.18(b). 
Each enclosed combustor must be designed and operated to reduce the 
mass content of the VOC in the natural gas routed to it by at least 
95.0 percent on a continuous basis, and must be tested by the 
manufacturer, owner, or operator in accordance with the requirements of 
40 CFR part 60 subparts OOOO or OOOOa. Flares and enclosed combustors 
must be operated within specific parameters to ensure the effective 
control of VOC emissions (including requirements to be equipped and 
operated with a liquid knockout system, a continuously burning pilot 
flame or electronically controlled automatic ignition device, and a 
monitoring system for continuous monitoring and recording of 
operational parameters; maintained in a leak-free condition; and 
operated with no visible smoke emissions).
    Fugitive emissions: The final rule requires implementation of a 
semi-annual leak detection and repair (LDAR) program for the collection 
of fugitive emissions components at each oil and natural gas source 
with facility-wide potential emissions from the collection of all 
storage vessels, glycol dehydrators and pneumatic pumps equal to or 
greater than 4 tpy VOC, plus any additional well sites with production 
of more than 15 barrels of oil equivalent (boe) per day.\29\ The final 
rule also contains provisions allowing for the use of alternative 
methods of leak detection, provided the method is approved by the EPA.
---------------------------------------------------------------------------

    \29\ As explained earlier, this FIP has been developed to 
maximize air quality improvements in a manner that promotes a more 
consistent regulatory environment across jurisdictional boundaries. 
We evaluated several authorities to further these goals with respect 
to fugitive emissions monitoring. The Oil and Gas CTG does not 
recommend that well sites with production of less than 15 boe per 
day (``low-production'' well sites) monitor fugitive emissions. 
Using a different measure, the UDEQ applies LDAR requirements only 
at well sites where the total actual uncontrolled VOC emissions from 
the collection of storage vessels and glycol dehydrators is greater 
than or equal to 4 tpy VOC (unless the well site is subject to the 
LDAR requirements of NSPS OOOOa, in which case the operator would 
comply with NSPS OOOOa).And as explained above, the NSPS OOOOa 
requirements may be changed by the Oil and Natural Gas Sector 
Climate Review Proposed Rule, which proposes to repeal some of the 
amendments that were made to NSPS OOOOa as part of the 2020 
Technical Rule. Among the provisions proposed for repeal are those 
that exempted low-production well sites from fugitive emissions 
monitoring and those that changed fugitive VOC monitoring 
requirements at gathering and boosting compressor stations from 
quarterly to semi-annually. Those fugitive VOC standards are still 
in place today, and are in contrast to the 2016 fugitive methane 
standards that were reinstated by the CRA disapproval of the 2020 
Policy Rule. The proposed rule also would require quarterly 
monitoring at oil and natural gas well sites of 3 tpy site-wide 
methane fugitive emissions (and co-proposes semi-annual monitoring 
for those with site-wide methane fugitive emissions between 3 and 8 
tpy, with quarterly monitoring for those with site-wide methane 
fugitive emissions above 8 tpy).
---------------------------------------------------------------------------

    VOC emissions control requirements for all sources: The final rule 
contains VOC control requirements for all existing, new, and modified 
oil and natural gas sources, regardless of source-wide or emission unit 
specific

[[Page 75339]]

applicability criteria. These requirements include: (1) tank trucks 
transporting crude oil, condensate, intermediate hydrocarbon liquids or 
produced water must be loaded using bottom filling or submerged fill 
pipes; (2) all existing pneumatic controllers must meet the pneumatic 
controller standards in NSPS OOOO; and (3) all existing enclosed 
combustors and flares present and operating at sources on a voluntary 
basis must be equipped with an electronically controlled automatic 
ignition device.
    Monitoring, recordkeeping, notification and reporting: This U&O FIP 
requires owners or operators to conduct source monitoring sufficient to 
demonstrate compliance with the FIP's VOC emission reduction and 
control requirements, including: (1) monthly inspections of each cover 
and closed-vent system to ensure proper condition and functioning and 
to identify defects that can result in air emissions, correcting or 
repairing any defects identified within 30 days of identification; and 
(2) monthly inspections of each VOC emissions control device to ensure 
proper functioning whenever an operator is on site, at least once per 
calendar month, and responding to any indication of malfunction (e.g., 
pilot flame failure, visible emissions) as soon as practicably and 
safely possible after discovery.

C. Costs and Benefits

    The EPA has projected the compliance costs, emissions reductions, 
and benefits that may result from the U&O FIP. The discussion of 
projected costs and benefits is presented in detail in the Regulatory 
Impacts Analysis (RIA) accompanying this final rule.\30\ The RIA 
focuses on the elements of the final rule--the provisions related to 
VOC emissions control requirements--that are likely to result in 
quantifiable costs, emissions changes, and benefits compared to a 
baseline that includes operator-reported emissions from oil and natural 
gas sources in the Uinta Basin for calendar year 2017, specifically on 
the Indian country lands within the U&O Reservation. We estimated the 
effects of the final rule for all sources that are conservatively 
projected \31\ to be subject to compliance activities under this action 
for the analysis years 2023 through 2032. The RIA also presents the 
present value (PV) and equivalent annualized value (EAV) of costs, 
benefits and net benefits of this action in 2016 dollars.
---------------------------------------------------------------------------

    \30\ Available in the docket for this rulemaking (Docket ID No. 
EPA-R08-OAR-2015-0709).
    \31\ As explained throughout this preamble, and in the RIA, this 
quantitative projection does not account for those sources that may 
be exempt from certain requirements of the rule because they are 
subject to equivalent requirements in NSPS OOOO or OOOOa, or in 
NESHAP HH. Therefore, it is likely that costs for those sources will 
be less for certain activities than for sources subject to 
requirements of the FIP.
---------------------------------------------------------------------------

    A summary of the key results of this final rule is presented in 
Table 1. Table 1 presents the PV and EAV, estimated using discount 
rates of 7 and 3 percent, of the benefits, costs and net benefits, as 
well as the change in emissions under the final rule. The monetized net 
benefits are the benefits (emissions reductions) minus the costs 
(annualized compliance costs). These results present an incomplete 
overview of the effects of the final FIP, because categories of 
benefits--including benefits from reducing other types of air 
pollutants--were not monetized and are therefore not reflected in Table 
1.

       Table 1--Benefits, Costs, Net Benefits and Emissions Reductions of the Final Rule 2023 Through 2032
                               [Dollar estimates in millions of 2016 dollars] \a\
----------------------------------------------------------------------------------------------------------------
                                                                    Equivalent                      Equivalent
                                                   Present value   annual value    Present value   annual value
----------------------------------------------------------------------------------------------------------------
                                             3 Percent Discount Rate
----------------------------------------------------------------------------------------------------------------
Benefits \b\....................................          $1,000            $120          $1,000            $120
----------------------------------------------------------------------------------------------------------------
                                                      3 Percent Discount Rate
                                                      7 Percent Discount Rate
                                                 ---------------------------------------------------------------
Net Compliance Costs............................             610              72             560              81
    Compliance Costs............................             630              74             580              83
    Product Recovery............................              20               2              20               2
Net Benefits....................................             390              48             440              39
----------------------------------------------------------------------------------------------------------------
Non-Monetized Benefits \c\......................  Ozone health and climate benefits from reducing 23,000 tons of
                                                  VOC/year and ozone health benefits from 59,000 tons of methane/
                                                  year from 2023 to 2032.
                                                 ---------------------------------------------------------------
                                                   Ozone health and PM2.5 benefits from reducing 23,000 tons of
                                                                    VOC/year from 2023 to 2032.
                                                 ---------------------------------------------------------------
                                                  HAP benefits from reducing 3,100 tons of HAP/year from 2023 to
                                                  2032 (including 570 tons of benzene, 970 tons of toluene, 130
                                                  tons of ethylbenzene, 620 tons of xylenes and 770 tons of n-
                                                  hexane per year).
                                                 ---------------------------------------------------------------
                                                  Visibility benefits.
                                                 ---------------------------------------------------------------
                                                  Reduced vegetation effects from exposure to ozone.
----------------------------------------------------------------------------------------------------------------
\a\ Values rounded to two significant figures. Totals may not appear to add correctly due to rounding.

[[Page 75340]]

 
\b\ Monetized benefits of the final rule include climate benefits associated with reductions in methane
  emissions and are calculated using four different estimates of the social cost of methane (SC-CH4) (model
  average at 2.5 percent, 3 percent, and 5 percent discount rates: 95th percentile at 3 percent discount rate).
  For the presentational purposes of this table, we show the benefits associated with the average SC-CH4 at a 3
  percent discount rate, but the Agency does not have a single central SC-CH4 point estimate. We emphasize the
  importance and value of considering the benefits calculated using all four SC-CH4 estimates; the present value
  (and equivalent annual value) of the additional benefit estimates (millions of 2016$) ranges from $480 to
  $2,700 ($62 to $310) over 2023 to 2032 for the final rule. Please see Table 6-6 of the RIA for the full range
  of SC-CH4 estimates. As discussed in Section 6.5 of the RIA, a consideration of climate benefits calculated
  using discount rates below 3 percent, including 2 percent and lower, are also warranted when discounting
  intergenerational impacts. All net benefits are calculated using climate benefits discounted at 3 percent.
\c\ There are important unquantified health and welfare benefits associated with reductions in other air
  pollutants, which are discussed in Chapter 6 of the RIA.

    This final rule is expected to result in net benefits (emissions 
reductions) for human health and the environment in the Uinta Basin. 
The estimated benefits include the monetized climate effects of the 
projected reduction in methane emissions under the final rule resulting 
from the targeted reduction of VOC emissions. The PV of these climate-
related benefits (emissions reductions), discounted at a 3-percent 
rate, is estimated to be about $1 billion, with an EAV of about $120 
million (Table 1).
    In addition to directly controlling VOC emissions, which are 
expected to lower ozone concentrations in the Uinta Basin, this action 
is expected to lower HAP emissions and the formation of secondary 
particulate matter with a diameter of 2.5 micrometers or less 
(PM<INF>2.5</INF>) even though those pollutants are not directly 
regulated under this action. While the EPA expects that the VOC 
emissions reductions will improve air quality and have beneficial 
health and welfare effects associated with reduced exposure to ozone, 
PM<INF>2.5</INF>, and HAP, we did not quantify those effects. We note 
that the absence of those monetized benefits from the analysis of 
benefits does not imply that these benefits do not exist, but also has 
no bearing on the legal or technical basis for the final action itself. 
We qualitatively discuss these unquantified benefits in Chapter 6 of 
the RIA. If the EPA were to quantify the ozone and PM<INF>2.5</INF> 
impacts, the Agency would estimate the number and value of avoided 
premature deaths and illnesses using an approach detailed in the 
Particulate Matter NAAQS and Ozone NAAQS RIA.\32\ Such an analysis 
would account for the distribution of air pollution-attributable risks 
among populations most vulnerable and susceptible to PM<INF>2.5</INF> 
and ozone exposure. As explained in the RIA for this final rule, due to 
methodology and data limitations for areas experiencing elevated winter 
ozone, we were unable to estimate the benefits associated with ozone, 
PM<INF>2.5</INF>, and HAP emission changes that would occur as a result 
of this rule, but the EPA continues to develop better methods for 
analyzing the benefits of such reductions.
---------------------------------------------------------------------------

    \32\ U.S. EPA. Integrated Science Assessment (ISA) for 
Particulate Matter (Final Report). EPA Office of Research and 
Development (ORD), National Center for Environmental Assessment, 
EPA/600/R-19/188 (Dec. 2019); available at: <a href="https://www.epa.gov/naaqs/particulate-matter-pm-standards-integrated-science-assessments-current-review">https://www.epa.gov/naaqs/particulate-matter-pm-standards-integrated-science-assessments-current-review</a>, accessed Mar. 11, 2022, and U.S. EPA. 
Integrated Science Assessment for Ozone and Related Photochemical 
Oxidants. EPA ORD, EPA/600/R-20/012 (Apr. 2020); available at: 
<a href="https://www.epa.gov/isa/integrated-science-assessment-isa-ozone-and-related-photochemical-oxidants">https://www.epa.gov/isa/integrated-science-assessment-isa-ozone-and-related-photochemical-oxidants</a>. Accessed Mar. 11, 2022.
---------------------------------------------------------------------------

    The estimated capital and annualized compliance costs include the 
monetized costs for affected owners or operators to comply with the 
final rule. The net PV of these compliance costs (accounting for 
product recovery), discounted at a 7-percent rate, is estimated to be 
about $560 million, with an EAV of about $81 million (Table 1). Under a 
3-percent discount rate, the PV of the compliance costs is about $610 
million, with an EAV of about $72 million (Table 1).
    The PV of the net benefits of this rule, discounted at a 7-percent 
rate, is estimated to be about $440 million, with an EAV of about $39 
million (Table 1). Under a 3-percent discount rate, the PV of net 
benefits is about $390 million, with an EAV of about $48 million (Table 
1).

II. General Information

A. Does this action apply to me?

    Entities potentially affected by this rule include the Ute Indian 
Tribe,\33\ as well as existing, new, and modified sources \34\ that are 
in the oil and natural gas production and natural gas processing 
segments of the oil and natural gas industry (see Table 2.) and are on 
Indian country \35\ lands within the U&O Reservation. All of the Ute 
Indian Tribe Indian country lands of which the EPA is aware are located 
within the exterior boundaries of the Reservation, and this U&O FIP 
applies to all such lands. To the extent that there are Ute Indian 
Tribe Dependent Indian Communities under 18 U.S.C. 1151(b) or allotted 
lands under 18 U.S.C. 1151(c) that are located outside the exterior 
boundaries of the Reservation, those lands are not covered by this U&O 
FIP.\36\ In addition, this rule does not apply to any sources on non-
Indian-country lands, including any non-Indian country lands within the 
exterior boundaries of the Reservation.\37\
---------------------------------------------------------------------------

    \33\ The Ute Indian Tribe is a federally recognized tribe 
organized under the Indian Reorganization Act of 1934, with a 
Constitution and By-Laws adopted by the Tribe on December 19, 1936 
and approved by the Secretary of the Interior on January 19, 1937. 
See Indian Entities Recognized and Eligible to Receive Services from 
the United States Bureau of Indian Affairs, See 82 FR 4915 (Jan. 17, 
2017); 48 Stat. 984, 25 U.S.C.5123 (IRA); Constitution and By-Laws 
of the Ute Indian Tribe of the Uintah and Ouray Reservation.
    \34\ As specified at 40 CFR 49.4169(c).
    \35\ Indian country is defined at 18 U.S.C. 1151 as: (a) all 
land within the limits of any Indian reservation under the 
jurisdiction of the United States Government, notwithstanding the 
issuance of any patent, and, including rights-of-way running through 
the reservation, (b) all dependent Indian communities within the 
borders of the United States whether within the original or 
subsequently acquired territory thereof, and whether within or 
without the limits of a state, and (c) all Indian allotments, the 
Indian titles to which have not been extinguished, including rights-
of-way running through the same.
    \36\ Under the CAA, lands held in trust for the use of an Indian 
tribe are reservation lands within the definition at 18 
U.S.C.1151(a), regardless of whether the land is formally designated 
as a reservation. See Indian Tribes: Air Quality Planning and 
Management, See 63 FR 7254, 7258 (Feb. 12, 1998) (``Tribal Authority 
Rule''); Arizona Pub. Serv. Co. v. EPA, 211 F.3d 1280, 1285-86 (D.C. 
Cir. 2000). The EPA's references in this U&O FIP to Indian country 
lands within the exterior boundaries of the U&O Reservation include 
any such Tribal trust lands that may be acquired by the Ute Indian 
Tribe.
     In 2014, the U.S. Court of Appeals for the D.C. Circuit 
addressed the EPA's authority to promulgate a FIP establishing 
certain CAA permitting programs in Indian country. Oklahoma Dept. of 
Environmental Quality v. EPA, 740 F. 3d 185 (D.C. Cir. 2014). In 
that case, the court recognized the EPA's authority to promulgate a 
FIP to directly administer CAA programs on Indian reservations but 
invalidated the FIP at issue as applied to non-reservation areas of 
Indian country in the absence of a demonstration of an Indian 
tribe's jurisdiction over such non-reservation area. Because the 
final rule would apply only on Indian country lands that are within 
the exterior boundaries of the U&O Reservation, i.e., on Reservation 
lands, it is unaffected by the Oklahoma court decision.
    \37\ As a result of a series of federal court decisions, there 
are some non-Indian country lands within the exterior boundaries of 
the Uintah and Ouray Indian Reservation. See footnote 40.

[[Page 75341]]



                               Table 2--Source Categories Affected by This Action
----------------------------------------------------------------------------------------------------------------
                                                               Examples of regulated entities/description of
            Industry category                NAICS code                      industry category
----------------------------------------------------------------------------------------------------------------
Oil and Gas Production/Operations........           21111  Exploration for crude petroleum and natural gas;
                                                            drilling, completing, and equipping wells; operation
                                                            of separators, emulsion breakers, desilting
                                                            equipment, and field gathering lines for crude
                                                            petroleum and natural gas; and all other activities
                                                            in the preparation of oil and gas up to the point of
                                                            shipment from the producing property.
                                                           Production of crude petroleum, the mining and
                                                            extraction of oil from oil shale and oil sands, the
                                                            production of natural gas, sulfur recovery from
                                                            natural gas, and the recovery of hydrocarbon liquids
                                                            from oil and gas field gases.
Crude Petroleum and Natural Gas                    211111  Exploration, development and/or the production of
 Extraction.                                                petroleum or natural gas from wells in which the
                                                            hydrocarbons will initially flow or can be produced
                                                            using normal pumping techniques or production of
                                                            crude petroleum from surface shales or tar sands or
                                                            from reservoirs in which the hydrocarbons are
                                                            semisolids
Natural Gas Liquid Extraction............          211112  Recovery of liquid hydrocarbons from oil and gas
                                                            field gases; and sulfur recovery from natural gas.
Drilling Oil and Gas Wells...............          213111  Drilling oil and gas wells for others on a contract
                                                            or fee basis, including spudding in, drilling in,
                                                            redrilling, and directional drilling.
Support Activities for Oil and Gas                 213112  Performing support activities on a contract or fee
 Operations.                                                basis for oil and gas operations (except site
                                                            preparation and related construction activities)
                                                            such as exploration (except geophysical surveying
                                                            and mapping); excavating slush pits and cellars,
                                                            well surveying; running, cutting, and pulling
                                                            casings, tubes, and rods; cementing wells, shooting
                                                            wells; perforating well casings; acidizing and
                                                            chemically treating wells; and cleaning out,
                                                            bailing, and swabbing wells.
----------------------------------------------------------------------------------------------------------------

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that the EPA is now 
aware could potentially be regulated by this action. Other types of 
entities not listed in the table could also be regulated. To determine 
whether your entity is regulated by this action, you should carefully 
examine the applicability criteria found in 40 CFR 49.4169 through 
49.4184. If you have any questions regarding the applicability of this 
action to a particular entity, contact the appropriate person listed in 
the FOR FURTHER INFORMATION CONTACT section.

B. Where can I get a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this final action will also be posted at: <a href="https://www.epa.gov/air-quality-implementation-plans/approved-air-quality-implementation-plans-region-8">https://www.epa.gov/air-quality-implementation-plans/approved-air-quality-implementation-plans-region-8</a> (Approved Air Quality Implementation Plans in Region 8 page).

C. Judicial Review

    Under section 307(b)(1) of the Act, petitions for judicial review 
of this action must be filed in the United States Court of Appeals for 
the appropriate circuit by February 6, 2023. Filing a petition for 
reconsideration by the Administrator of this final rule does not affect 
the finality of this rule for the purposes of judicial review nor does 
it extend the time within which a petition for judicial review may be 
filed and shall not postpone the effectiveness of such rule or action. 
Under section 307(b)(2) of the Act, the requirements of this final 
action with respect to which review could have been obtained under 
section 307(b)(1) of the Act may not be judicially reviewed later in 
civil or criminal proceedings brought by us to enforce these 
requirements.

III. Background

A. Uintah and Ouray Indian Reservation

    The Uintah and Ouray Indian Reservation is composed of lands that 
were part of the original Uintah Valley and Uncompahgre Reservations, 
which were established by executive order in 1861 and 1882, 
respectively.\38\ In 1948 Congress extended the exterior boundary of 
the Reservation with the Hill Creek Extension.\39\ The U&O 
Reservation's boundaries have been addressed and explained in a series 
of federal court decisions. Consistent with those decisions, the EPA 
considers all lands within the U&O Reservation's boundaries to be 
``Indian country'' as defined in 18 U.S.C. 1151, subject to federal 
court decisions holding that specified Congressional acts removed 
certain lands from Indian country status.\40\
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    \38\ See Exec. Order of Oct. 3, 1861, reprinted in 1 Charles J. 
Kappler, Indian Affairs: Laws and Treaties 900 (1904); confirmed by 
Congress in the Act of May 5, 1864, ch. 77, 13 Stat. 63; Exec. Order 
of Jan. 5, 1882, reprinted in Indian Affairs: Laws and Treaties at 
901; U.S. Office of Indian Affairs, Dept. of the Interior, Annual 
Report of the Commissioner of Indian Affairs, at 226 (1886).
    \39\ 62 Stat. 72 (1948).
    \40\ See Ute Indian Tribe v. Utah, 521 F. Supp. 1072 (D. Utah 
1981); Ute Indian Tribe v. Utah, 716 F.2d 1298 (10th Cir. 1983); Ute 
Indian Tribe v. Utah, 773 F.2d 1087 (10th Cir. 1985) (en banc), 
cert. denied, 479 U.S. 994 (1986); Hagen v. Utah, 510 U.S. 399 
(1994); Ute Indian Tribe v. Utah, 935 F. Supp. 1473 (D. Utah 1996); 
Ute Indian Tribe v. Utah, 114 F.3d 1513 (10th Cir. 1997), cert. 
denied, 522 U.S. 1107 (1998); Ute Indian Tribe v. Utah, 790 F.3d 
1000 (10th Cir. 2015), cert. denied, 136 S. Ct. 1451 (2016); and Ute 
Indian Tribe v. Myton, 835 F.3d 1255 (10th Cir. 2016), cert. 
dismissed, 137 S. Ct. 2328 (2017); Hackford v. Utah, 845 F.3d 1325, 
1327 (10th Cir.), cert. denied, 138 S. Ct. 206 (2017).
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B. Tribal Authority Rule

    Section 301(d) of the CAA authorizes the EPA to treat Indian tribes 
in the same manner as states for purposes of implementing the CAA over 
their entire reservations and over any other areas within their 
jurisdiction, and directs the EPA to promulgate regulations specifying 
those provisions of the CAA for which such treatment is 
appropriate.\41\ It also authorizes the EPA, when the EPA determines 
that the treatment of Indian tribes as identical to states is 
inappropriate or administratively infeasible, to provide by regulation 
other means by which the EPA will directly administer the CAA.\42\ 
Acting principally under that authority, on February 12, 1998, the EPA 
promulgated the Tribal Authority Rule (TAR).\43\ In the TAR, we 
determined that it was appropriate to treat eligible tribes in the same 
manner as states for

[[Page 75342]]

all CAA statutory and regulatory purposes, except a list of specified 
CAA provisions and implementing regulations thereunder.\44\ That list 
of excluded provisions includes specific plan submittal and 
implementation deadlines for NAAQS-related requirements, among them the 
CAA section 110(a)(2)(C) requirement to submit a program (including a 
permit program as required in parts C and D of the CAA) to regulate the 
modification and construction of any stationary source as necessary to 
assure that the NAAQS are achieved. Other provisions for which we 
determined that we would not treat tribes in the same manner as states 
include CAA section 110(a)(1) (SIP submittal) and CAA section 110(c)(1) 
(directing the EPA to promulgate a FIP ``within 2 years'' after we find 
that a state has failed to submit a required plan or has submitted an 
incomplete plan, or within 2 years after we disapprove all or a portion 
of a plan).
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    \41\ 42 U.S.C. 7601(d)(1) and (2); See 63 FR 7254-57 (Feb. 12, 
1998) (explaining that CAA section 301(d) includes a delegation of 
authority from Congress to eligible Indian tribes to implement CAA 
programs over all air resources within the exterior boundaries of 
their Reservations).
    \42\ 42 U.S.C. 7601(d)(4).
    \43\ ``Indian Tribes: Air Quality Planning and Management.'' see 
63 FR 7254 (Feb. 12, 1998); 40 CFR 49.1-49.11.
    \44\ 40 CFR 49.3-.4. To be eligible for treatment in a similar 
manner as a state (TAS) under the Tribal Authority Rule, a tribe 
must meet four requirements: (1) be a federally recognized tribe; 
(2) have a governing body carrying out substantial governmental 
duties and functions; (3) propose to carry out functions pertaining 
to the management and protection of air resources of the tribe's 
reservation or other areas within the tribe's jurisdiction; and (4) 
be reasonably expected to be capable of carrying out the functions. 
40 CFR 49.6. A tribe interested in administering a particular CAA 
program or function may apply to the appropriate regional 
administrator for a determination of whether it meets these TAS 
eligibility criteria with respect to that program or function. 40 
CFR 49.7.
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    The TAR preamble clarified that by including CAA section 110(c)(1) 
on the list at 40 CFR 49.4, the ``EPA is not relieved of its general 
obligation under the CAA to ensure the protection of air quality 
throughout the nation, including throughout Indian country.'' \45\ The 
preamble confirmed that the ``EPA will continue to be subject to the 
basic requirement to issue a FIP for affected tribal areas within some 
reasonable time.'' \46\ Consistent with those statements, the TAR 
includes a provision requiring the EPA to ``promulgate without 
unreasonable delay such Federal implementation plan provisions as are 
necessary or appropriate to protect air quality,'' unless a complete 
TIP is submitted or approved.\47\
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    \45\ See 63 FR at 7265 (Feb. 12, 1998).
    \46\ Id.
    \47\ 40 CFR 49.11(a).
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    The Ute Indian Tribe has not applied for treatment in a similar 
manner as a state (TAS) for the purpose of administering a TIP under 
the CAA; nor has it submitted a TIP for review and approval. Thus, with 
respect to Indian country lands within the U&O Reservation, there is 
currently no submitted or EPA-approved TIP that would address the air 
quality purposes described earlier. This FIP provides such a plan and 
applies to all Indian country lands within the exterior boundaries of 
the U&O Reservation.

C. Federal Indian Country Minor NSR Rule

1. What is the Federal Indian Country Minor NSR rule?
    In 2006, acting under the authority provided in CAA section 301(d) 
and in the TAR, we proposed the FIP regulation: ``Review of New Sources 
and Modifications in Indian Country'' (Indian Country NSR rule).\48\ As 
a part of this regulation, the EPA made a finding that it was necessary 
or appropriate to protect air quality by developing a FIP to establish 
a program to regulate the modification and construction of minor 
stationary sources consistent with the requirements of section 
110(a)(2)(c) of the CAA, where there was no EPA-approved tribal minor 
NSR permit program in Indian country to regulate construction of new 
and modified minor sources and minor modifications of major sources. We 
call this part of the Indian Country NSR rule the Federal Indian 
Country Minor NSR rule. In developing that FIP, we sought to 
``establish a flexible preconstruction permitting program for minor 
sources in Indian country that is comparable to similar programs in 
neighboring states in order to create a more consistent regulatory 
environment for owners/operators within and outside of Indian 
country.'' \49\ The Federal Indian Country Minor NSR rule provides a 
mechanism for issuing preconstruction permits for the construction of 
new minor sources and certain modifications of major and minor sources 
in areas covered by the rule. In developing the rule, the EPA conducted 
extensive outreach and consultation, along with a 7-month public 
comment period that ended on March 20, 2007. The comments provided 
detailed information specific to Indian country, and the final Federal 
Indian Country Minor NSR rule incorporated many of the suggestions we 
received. We promulgated a final rule on July 1, 2011, and the FIP 
became effective on August 30, 2011. \50\
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    \48\ ``Review of New Sources and Modifications in Indian 
Country,'' Proposed Rule, 71 FR 48696 (Aug. 21, 2006).
    \49\ ``Review of New Sources and Modifications in Indian 
Country,'' Final Rule, 76 FR 38748, 38754 (July 1, 2011).
    \50\ See 76 FR 38748.
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    The Federal Indian Country Minor NSR rule applies to existing, new, 
and modified minor stationary sources and to minor modifications at 
existing major stationary sources in Indian country where there is no 
EPA-approved program in place. \51\ Tribes can elect to develop and 
implement their own EPA-approved program under the TAR but are not 
required to do so.\52\ In the absence of an EPA-authorized program, the 
EPA implements the program. Tribes can request administrative 
delegation of the federal program from the EPA and may be authorized by 
the EPA to implement agreed-upon rules or provisions on behalf of the 
Agency.
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    \51\ 40 CFR 49.153. Existing sources are only subject to the 
registration requirements unless they undergo modification.
    \52\ To be eligible to develop and implement an EPA-approved 
program, under the Tribal Authority Rule a tribe must meet four 
requirements: (1) be a federally-recognized tribe; (2) have a 
functioning government carrying out substantial duties and powers; 
(3) propose to carry out functions pertaining to air resources of 
the reservation or other areas within the tribe's jurisdiction; and 
(4) be reasonably expected to be capable of carrying out the 
program. See 40 CFR 40 CFR 49.1-49.11. Tribes can also establish 
permit fees under a tribal permitting program pursuant to tribal 
law, as do most states.
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    Any existing, new, or modified stationary oil and natural gas 
source that emits or has the potential to emit (PTE) a regulated NSR 
pollutant in amounts equal to or greater than the minor NSR thresholds 
in the Federal Indian Country Minor NSR rule, but less than the amount 
that would qualify the source as a major source or a major modification 
for purposes of the PSD or nonattainment major NSR programs, must 
submit a registration form to the EPA containing information on, among 
other things, source-wide actual emissions of NSR regulated pollutants, 
information on the methods used to calculate the emissions, and 
descriptions of the various emitting activities and equipment operated 
at the source. Existing, new, and modified oil and natural gas sources 
that commenced construction before October 3, 2016, complied with the 
Federal Indian Country Minor NSR Permit Program by registering under 
the Existing Source Registration Program at 40 CFR 49.160. Beginning 
October 3, 2016, the owner/operator of any new true minor oil and 
natural gas source must comply with the National O&NG FIP or apply for 
and obtain a site-specific true minor NSR permit before beginning 
construction. Likewise, the owner/operator of any existing stationary 
source (minor or major) must comply with the National O&NG FIP or apply 
for and obtain a minor NSR permit before beginning construction of a 
physical or operational

[[Page 75343]]

change that will increase the allowable emissions of the stationary 
source in amounts equal to or above the specified threshold amounts, if 
the change does not otherwise trigger PSD or nonattainment major or 
minor NSR permitting requirements.\53\
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    \53\ A source may, however, be subject to certain monitoring, 
recordkeeping, and reporting (MRR) requirements under the major NSR 
program, if the change has a reasonable possibility of resulting in 
a major modification. A source may be subject to both the Federal 
Indian Country Minor NSR rule and the MRR requirements of the major 
NSR program.
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2. What are the minor NSR thresholds?
    The ``minor NSR thresholds'' establish cutoff levels for each 
regulated NSR pollutant. If a source has a PTE in amounts lower than 
the minor NSR thresholds,\54\ then it is exempt from the Federal Indian 
Country Minor NSR rule for that pollutant. New or modified sources that 
have a PTE in amounts that are: (1) equal to or greater than the minor 
NSR thresholds; and (2) less than the major NSR thresholds (generally 
100 or 250 tons per year (tpy)) are ``minor sources'' of emissions and 
subject to the Federal Indian Country Minor NSR rule requirements at 40 
CFR 49.151 through 49.161. Modifications at existing major sources that 
have PTE equal to or greater than the minor NSR thresholds, but less 
than the major NSR significant emission rates (range 10-100 tpy, 
depending on the pollutant) are also ``minor sources'' of emissions and 
subject to the Federal Indian Country Minor NSR rule requirements.
---------------------------------------------------------------------------

    \54\ See 40 CFR 49.153, Table 1.
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    The minor NSR thresholds for VOC emissions for sources in Indian 
country are 2 tpy in nonattainment areas and 5 tpy in attainment and 
unclassifiable areas. Portions of the U&O Reservation are currently 
designated unclassifiable for the 2008 ozone NAAQS and the minor NSR 
thresholds for VOC are 5 tpy in those Indian country portions of the 
Reservation. As discussed previously and further in Section D (Air 
Quality and Attainment Status), other portions of the U&O Reservation 
are included in the Uinta Basin Ozone Nonattainment Area, and, 
therefore, the minor NSR thresholds for VOC are 2 tpy in those Indian 
country portions of the Reservation.

D. Air Quality and Attainment Status

    With respect to air quality, ozone levels in the Uinta Basin, in 
which the U&O Reservation is located, have reached unhealthy levels 
that warrant action. The 2015 8-hour ozone NAAQS is 70 parts per 
billion (ppb).\55\ Compliance with the NAAQS is determined by 
comparison to a ``design value'' based on a three-year average of the 
fourth highest daily maximum 8-hour average ozone levels measured in a 
year at each monitoring site. The state of Utah, the National Park 
Service (NPS), and the Ute Indian Tribe operate ozone, 
PM<INF>2.5,</INF> and NO<INF>2</INF> monitors in and around the Uinta 
Basin. The ambient air concentrations measured at some of these 
stations show that ozone levels in the Uinta Basin have repeatedly 
violated both the 2008 and 2015 ozone NAAQS. Based on 2012-2020 
regulatory air quality monitoring data, ozone design values exceed the 
2015 ozone NAAQS at five monitoring sites in the Uinta Basin. The 
highest valid ozone design value in the Uinta Basin for the three-year 
period from 2017 to 2019 was from the Ouray monitor at 89 ppb.\56\ The 
current (three-year period from 2018 to 2020) highest valid ozone 
design value in the Uinta Basin is also from the Ouray monitor at 76 
ppb. Additionally, higher single 8-hour average ozone concentrations 
were observed at some monitoring sites, before the sites were 
designated as regulatory monitors.\57\ For example, 8-hour average 
ozone concentrations reached values as high as 141 ppb at the Ouray 
monitor in March 2013. This concentration corresponds to an Air Quality 
Index value of 211, which is characterized as ``Very Unhealthy.'' \58\
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    \55\ See 80 FR 65292 (Oct. 26, 2015).
    \56\ Valid design values are the regulatory statistic to 
determine compliance with a NAAQS. They are calculated in accordance 
with the appropriate NAAQS-specific appendix to 40 CFR part 50. For 
the 2008 Ozone NAAQS (75 ppb), the appropriate appendix is 40 CFR 
part 50, appendix P, and for the 2015 Ozone NAAQS (70 ppb) it is 40 
CFR part 50, appendix U. Regulatory ozone data is available at 
<a href="https://www.epa.gov/air-trends/ozone-trends">https://www.epa.gov/air-trends/ozone-trends</a>, accessed Mar. 14, 2022.
    \57\ A ``regulatory'' monitor is a monitor that meets the EPA's 
air quality monitoring requirements, including requirements for 
siting, equipment selection, data sampling protocols, and quality 
assurance, under the EPA's monitoring regulations at 40 CFR part 58.
    \58\ The Air Quality Index (AQI) is a normalized system to allow 
the public to compare health risks of different air pollutants on a 
common scale. The AQI is divided into six levels of health concern: 
Good, Moderate, Unhealthy for Sensitive Groups, Unhealthy, Very 
Unhealthy, and Hazardous.
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    As discussed previously, the EPA designated areas in the Uinta 
Basin below 6,250 feet, including portions of the Indian country lands 
within the U&O Reservation, as marginal nonattainment for the 2015 
ozone standard. The fourth maximum ambient air concentration 
measurement for 2020, the attainment year, is 66 ppb, which is lower 
than the 2015 ozone NAAQS. Accordingly, Utah and the Ute Indian Tribe 
requested to extend the August 3, 2021, attainment date for the Uinta 
Basin Ozone Nonattainment Area by 1-year. On April 13, 2022, the EPA 
proposed to grant a 1-year attainment date extension for the Uintah 
Basin Ozone Nonattainment area.\59\ The proposal explains that 
preliminary 2021 ozone monitoring data indicate that the area may not 
attain the 2015 ozone NAAQS by the proposed extended attainment date of 
August 3, 2022, but that the area could meet the air quality criteria 
for a second 1-year extension. As of February 9, 2022, the Uinta Basin 
area's preliminary 2019-2021 design value was 78 ppb and the 
preliminary 2021 fourth highest daily maximum 8-hour concentration 
value was 72 ppb. To qualify for a second 1-year extension, an area's 
fourth highest daily maximum 8-hour value, averaged over both the 
original attainment year and the first extension year, must be 70 ppb 
or less (40 CFR 51.1307(a)(2)). If the preliminary 2021 ozone data are 
certified, then the fourth highest daily maximum 8-hour value, averaged 
over 2020 and 2021, would be 69 ppb. \60\ The EPA is issuing this 
notice of final rulemaking (NFRM) because we have concluded that it is 
necessary and appropriate to take action to protect air quality on the 
Indian country lands within the U&O Reservation to address these 
elevated ozone levels.
---------------------------------------------------------------------------

    \59\ See 87 FR 21842 (Apr. 13, 2022), available at <a href="https://www.govinfo.gov/content/pkg/FR-2022-04-13/pdf/2022-07513.pdf">https://www.govinfo.gov/content/pkg/FR-2022-04-13/pdf/2022-07513.pdf</a>, 
accessed Apr. 29, 2022. The criteria to qualify for requesting a 1-
year extension of the attainment date are: (1) the state has 
complied with all requirements and commitments pertaining to the 
area in the applicable implementation plan; and (2) for a first 
attainment date extension, an area's fourth highest daily maximum 8-
hour value for the attainment year must not exceed the level of the 
standard.
    \60\ Preliminary air quality data is available at <a href="https://www.epa.gov/outdoor-air-quality-data/download-daily-data">https://www.epa.gov/outdoor-air-quality-data/download-daily-data</a>, accessed 
Apr. 29, 2022.
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    Ambient ozone is a secondary pollutant formed when the two primary 
ozone precursors, VOC and NO<INF>X</INF>, react in the presence of 
sunlight. Air quality data and studies in the Uinta Basin show that 
winter ozone levels above the NAAQS are due to a combination of 
abundant local ground-level emissions of VOC and NO<INF>X</INF> with 
the unique meteorological and topographic features in the Uinta Basin: 
strong and persistent temperature inversions forming over snow-covered 
ground, and elevated terrain completely surrounding a low basin. The 
stable atmosphere allows the emissions to accumulate and react with 
sunlight but prevents the emissions from escaping the temperature 
inversion layer and dispersing. Therefore, ozone continues to form 
while the unique meteorological conditions persist.\61\ The

[[Page 75344]]

state of Utah conducted field studies in the Uinta Basin from 2011 to 
2014 to understand the emissions sources and the unique photochemical 
processes that contribute to winter ozone concentrations within the 
Uinta Basin. Reports for winter ozone field studies for each year are 
available on the UDEQ website.\62\ These studies found that the oil and 
natural gas production industry is the most significant anthropogenic 
contributor of VOC and NO<INF>X</INF> emissions in the Basin and 
primarily responsible for winter ozone formation. The studies also 
concluded that winter ozone production in the Basin is sensitive to 
changes in VOC emissions, and that there is greater uncertainty about 
its sensitivity to changes in NO<INF>X</INF> emissions.
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    \61\ The RIA for this final rule contains a more detailed 
discussion of winter ozone and can be viewed in the docket for this 
rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
    \62\ ``Uinta Basin Ozone Studies (UBOS),'' <a href="https://deq.utah.gov/air-quality/uinta-basin-ozone-studies-ubos">https://deq.utah.gov/air-quality/uinta-basin-ozone-studies-ubos</a>, accessed Mar. 11, 2022.
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    The EPA has determined that this final action will result in large 
reductions of VOC emissions, and that this result is expected to reduce 
ambient ozone and reduce the severity of exceedances of the 2008 and 
2015 ozone NAAQS.\63\ As discussed in more detail later, the final 
action includes a requirement for owners/operators to submit emissions 
inventories on a triennial basis. This information will enable the 
successful partnership to continue among the EPA, the UDEQ, the Tribe 
and industry in maintaining an accurate oil and natural gas emissions 
inventory for the Uinta Basin to be used, in part, as a tool for 
managing the Basin's air quality.
---------------------------------------------------------------------------

    \63\ As discussed in the RIA for this final rule (available at 
<a href="https://www.regulations.gov">https://www.regulations.gov</a>, Docket ID #EPA-R08-OAR-2015-0709), 
adoption of the VOC control measures required under this FIP may 
result in very small NO<INF>X</INF> emission increases. We estimate 
that these additional NO<INF>X</INF> emissions would be at most 27 
tpy total. Considering the large amount of VOC emission reductions 
that the same controls will achieve, the small potential 
NO<INF>X</INF> emissions increase will not counteract the effect of 
the VOC reductions or adversely affect the area's ability to attain 
the NAAQS.
---------------------------------------------------------------------------

    We had previously informed the public of our intent to undertake 
action specific to the Indian country lands within the U&O Reservation; 
as noted earlier, in the preamble to the National O&NG FIP, we stated: 
``For the Uintah and Ouray Reservation, we have sufficient concerns 
about the air quality impacts from existing sources that we plan to 
propose a separate U&O FIP.'' \64\ After further review, and 
considering the emissions information presented below, the EPA 
concludes that those concerns are still warranted, and that this action 
is necessary and appropriate to address poor air quality on the Indian 
country lands within the U&O Reservation.
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    \64\ See 81 FR at 35963 (June 3, 2016).
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E. Emissions Information

    In 2020, the EPA, in cooperation with the UDEQ and the Ute Indian 
Tribe, developed the UBEI2017-Update, an emission inventory of oil and 
natural gas activity in the Uinta Basin that was populated with data 
provided by oil and natural gas operators in the Basin.\65\ We are also 
aware of several other available sources of information on air 
emissions from oil and natural gas activity in the Uinta Basin, 
including: (1) the 2017 National Emissions Inventory (2017 NEI); \66\ 
(2) a study by the Western Regional Air Partnership (WRAP); \67\ (3) 
existing true minor source registration data and new and modified true 
minor source registration submitted to the EPA under the Federal Indian 
Country Minor NSR Program; \68\ and (4) EPA Greenhouse Gas Reporting 
Program, subpart W Petroleum and Natural Gas Systems.\69\ They are 
discussed in more detail in the Regulatory Impact Analysis (RIA) for 
this final rule.\70\
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    \65\ The inventory and supporting analysis can be viewed in the 
docket for this rule, in the Microsoft Excel spreadsheet titled, 
``UO FIP cost and emissions analysis.xlsx'' (Docket ID No. EPA-R08-
OAR-2015-0709). This U&O FIP requires owners and operators to submit 
triennial emissions inventories, similar to a requirement finalized 
by the UDEQ in March of 2018. These triennial updates will provide 
information on how emissions are changing in the Basin from the 2017 
baseline. See Section V (Summary of FIP Provisions).
    \66\ See 2017 National Emissions Inventory (2017 NEI), available 
at <a href="https://www.epa.gov/air-emissions-inventories/2017-national-emissions-inventory-nei-data">https://www.epa.gov/air-emissions-inventories/2017-national-emissions-inventory-nei-data</a>, accessed Sept. 28, 2020. Queried: 
Duchesne & Uintah Counties VOC-NOx all sectors; Ute Indian Tribe of 
the Uintah & Ouray Indian Reservation VOC-NOx all sectors. EPA's 
analysis of the 2017 NEI data is available in the docket for this 
rulemaking (Docket ID No. EPA-R08-OAR-2015-0709), Microsoft Excel 
spreadsheet titled ``2017 NEI Uinta Basin_Duchesne Counties_U&O_VOC-
NOx.xlsx. The UDEQ submitted the UBEI2017 to the 2017 NEI, but later 
updated it for storage vessel, pneumatic controller, pneumatic pump, 
fugitive, gas well liquid unloading, blowdowns and pigging and 
oilfield wastewater emissions that are planned to be submitted to 
the NEI at a future date (see footnote 75). Analysis of the 2017 NEI 
for the purposes of this final U&O FIP was prepared using the 
version publicly available before incorporating these updates from 
the UDEQ.
    \67\ Western Regional Air Partnership (WRAP), O&G Emissions 
Workgroup: Phase III Inventory, Uinta Basin Reports, 2012 Mid-Term 
Projection Technical Memo, ``Development of 2012 Oil and Gas 
Emissions Projections for the Uinta Basin'', March 25, 2009, 
available at <a href="http://www.wrapair2.org/PhaseIII.aspx">http://www.wrapair2.org/PhaseIII.aspx</a>, accessed Mar. 
14, 2022. Some of the 2014 Uinta Basin Emissions Inventory was 
generated from prorating the 2012 WRAP estimates (which prorated and 
adjusted their 2006 work) to 2014 activity levels.
    \68\ Data from existing true minor source registration reports 
and data from new and modified true minor oil and natural gas source 
registrations under the National O&NG FIP, submitted under 40 CFR 
49.160 of the Federal Indian Country Minor NSR Program by operators 
of sources on the Indian country lands within the U&O Reservation.
    \69\ EPA Greenhouse Gas Reporting Program (GHGRP) Petroleum and 
Natural Gas Systems, available at <a href="https://www.epa.gov/ghgreporting/ghgrp-petroleum-and-natural-gas-systems">https://www.epa.gov/ghgreporting/ghgrp-petroleum-and-natural-gas-systems</a>, accessed Mar. 14, 2022.
    \70\ The RIA can be viewed in the docket for this rulemaking 
(Docket ID No. EPA-R08-OAR-2015-0709).
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    The 2017 NEI provides a general picture of the relative 
contributions of ozone-forming emissions from the oil and natural gas 
sector as compared to other industry sectors, estimating that emissions 
from the production segment of the oil and natural gas sector were the 
largest anthropogenic \71\ contributor of both VOC and NO<INF>X</INF> 
emissions in the Uinta Basin, at 97 percent of the VOC emissions and 64 
percent of the NO<INF>X</INF> emissions. The WRAP study provides a 
general picture of the relative emissions contribution in the Basin 
from various oil and natural gas equipment and activities on Indian 
country lands. The existing minor source registration data provide a 
general picture of the large percentage of unpermitted and likely 
uncontrolled minor emissions sources on Indian country lands within the 
U&O Reservation. EPA Greenhouse Gas Reporting Program, subpart W, 
provides annual reports by operators of activity levels and methane 
emissions from oil and natural gas operations in the Uinta Basin. The 
UBEI2017-Update is a comprehensive source of oil and natural gas source 
VOC emissions data for the Uinta Basin that provided information for 
the cost and benefit analysis supporting this rulemaking.
---------------------------------------------------------------------------

    \71\ The calculation excludes biogenic sources of VOC and 
NO<INF>X</INF>, because elevated ozone occurs during the winter when 
vegetation and soils are presumed to not be a contributor because 
they are dormant or covered by snow.
---------------------------------------------------------------------------

    The UBEI2017-Update indicates that the majority of existing oil and 
natural gas sources in the region are on Indian country lands within 
the U&O Reservation. As explained in more detail below, most of these 
are minor sources and are uncontrolled. The 2017 NEI indicates that, 
compared to other industry sector sources, existing oil and natural gas 
sources are cumulatively the largest anthropogenic contributor of VOC 
(97 percent) and NO<INF>X</INF> (64 percent) to measured exceedances of 
the ozone NAAQS in the Uinta Basin. Existing oil and natural gas 
sources on the portions of the Basin regulated by the UDEQ are subject 
to emission reduction requirements, while existing sources on Indian 
country lands within the U&O Reservation were previously either subject 
to less stringent regulation or no regulation at all.

[[Page 75345]]

    Specifically, the UBEI2017-Update shows that 76 percent of all 
existing oil and natural gas facilities (including well sites 
processing fluids from multiple individual wells, as well as compressor 
stations and other processing facilities) in the Uinta Basin are 
located on Indian country lands within the U&O Reservation. According 
to the inventory, almost 73,000 tons of VOC and over 6,700 tons of 
NO<INF>X</INF> emissions were emitted in 2017 from existing oil and 
natural gas sources on Indian country lands within the U&O Reservation. 
That is approximately 89 percent of the total oil and natural gas-
related VOC emissions in the Uinta Basin and approximately 63 percent 
of the total oil and natural gas-related NO<INF>X</INF> emissions in 
the Uinta Basin. These data confirm that the bulk of the ozone-related 
emissions in the Uinta Basin are released from sources on the Indian 
country lands within the U&O Reservation.
    Many of the oil and natural gas sources on Indian country lands 
within the U&O Reservation are uncontrolled. According to the UEBI2017-
Update, on the Indian country lands within the U&O Reservation, 85 
percent of the total number of existing storage vessels, 98 percent of 
the total number of existing glycol dehydrators and 99 percent of 
existing pneumatic pumps are uncontrolled emitters of VOC. By contrast, 
in areas of the Basin where the EPA has approved the UDEQ to implement 
the CAA, 68 percent of the total number of existing storage vessels and 
52 percent of the total number of existing glycol dehydrators are 
uncontrolled (uncontrolled pneumatic pump numbers are relatively 
equivalent to Indian country at 99 percent). The UDEQ has adopted 
revisions to existing oil and natural gas source requirements and 
existing minor source permitting requirements, and has adopted new 
requirements, including a Permit by Rule that replaces the requirement 
for minor oil and natural gas sources to obtain a site-specific 
permit.\72\ Now that the revised and new requirements are effective, we 
expect the percentage of uncontrolled existing storage vessels and 
glycol dehydrators in areas of the Basin where the EPA has approved the 
UDEQ to implement the CAA will decrease from what was reported in the 
UBEI2017-Update. The UDEQ's rule revisions and new rules are discussed 
in more detail in the preamble to the proposed FIP.\73\ In addition, 
the UBEI2017-Update shows that emissions from oil and natural gas 
wastewater disposal facilities on the Indian country lands within the 
U&O Reservation comprise approximately 35 percent of the total VOC 
emissions from oil and natural gas activity on the Indian country lands 
within the U&O Reservation. As explained in the preamble to the 
proposed FIP,\74\ these facilities may not be controlled under the CAA, 
because they do not meet the applicability criteria of preconstruction 
permitting programs or federal emissions standards regulating them.
---------------------------------------------------------------------------

    \72\ Utah State Bulletin, Official Notices of Utah State 
Government, Filed Jan. 3, 2018, 12:00 a.m. through Jan. 16, 2018, 
11:59 p.m., 11:59 p.m., Number 2018-3, February 01, 2018, Nancy L. 
Lancaster, Managing Editor, pages 46-68, available in the docket for 
this rulemaking (Docket ID No. EPA-R08-OAR-2015-0709.
    \73\ See 85 FR 3504-3506, Section IV. D. Developing the Proposed 
Control Requirements, 3. Evaluation of State Oil and Natural Gas and 
Permitting-Related Requirements.
    \74\ See 85 FR 3503-3504, Section IV. D. Developing the Proposed 
Control Requirements, 2. Evaluation of Federal Oil and Natural Gas 
and Permitting-Related Requirements.
---------------------------------------------------------------------------

    Based on this collection of emissions information (and other 
information about meteorological conditions and local geography), the 
EPA has concluded that winter ozone levels in the Uinta Basin are most 
significantly influenced by VOC emissions from the presence of numerous 
minor, unpermitted and largely uncontrolled oil and natural gas 
production operations on Indian country lands within the U&O 
Reservation.

F. What is a FIP?

    Under section 302(y) of the CAA, the term ``Federal implementation 
plan'' means ``a plan (or portion thereof) promulgated by the 
Administrator to fill all or a portion of a gap or otherwise correct 
all or a portion of an inadequacy in a state implementation plan, and 
which includes enforceable emission limitations or other control 
measures, means or techniques (including economic incentives, such as 
marketable permits or auctions of emissions allowances), and provides 
for attainment of the relevant national ambient air quality standard.'' 
As discussed previously in section III.B., CAA sections 301(a) and 
301(d)(4) and 40 CFR 49.11(a) authorize the EPA to promulgate such FIPs 
as are necessary or appropriate to protect air quality if a Tribe does 
not submit or receive EPA approval of a TIP.
    The Federal Indian Country Minor NSR rule is an example of a FIP, 
as discussed in section III.C. Another example of the EPA's use of its 
FIP authority to protect air quality in areas of Indian country with no 
EPA-approved program, while at the same time seeking to provide a 
consistent regulatory environment where appropriate, is the ``FIP for 
Oil and Natural Gas Well Production Facilities; Fort Berthold Indian 
Reservation (FBIR; Mandan, Hidatsa, and Arikara Nation), North 
Dakota.'' \75\ In that rule, we took an important initial step to 
control VOC emissions from existing, new, and modified oil and natural 
gas operations on the FBIR. We drafted requirements that were 
consistent to the greatest extent practicable with the most relevant 
aspects of neighboring state and local rules concerning the air 
pollutant emitting activities on the FBIR. We did not intend at the 
time, nor did we expect, the regulation to impose significantly 
different regulatory burdens upon industry or the residents of the FBIR 
than those imposed by the rules of state and local air agencies in the 
surrounding areas.
---------------------------------------------------------------------------

    \75\ See 78 FR 17836 (Mar. 22, 2013).
---------------------------------------------------------------------------

    This U&O FIP specific to Indian country lands within the U&O 
Reservation will reduce VOC emissions related to the formation of 
ozone. Exceedances of both the 2008 and the 2015 ozone NAAQS have 
occurred at air quality monitors on and around the Reservation, and 
portions of the Uinta Basin, including portions of the U&O Reservation, 
were designated by the EPA in 2018 as nonattainment for the 2015 ozone 
NAAQS. There are no currently approved TIPs that apply to existing oil 
and natural gas sources on Indian country lands within the U&O 
Reservation. Finally, the majority of the sources covered by this U&O 
FIP have not previously been subject to federally required emissions 
controls, as discussed further in Section IV.A of the preamble to the 
proposed FIP.\76\ For all of these reasons, we have concluded that is 
both necessary and appropriate to protect air quality on the Indian 
country lands within the U&O Reservation by promulgating this FIP.
---------------------------------------------------------------------------

    \76\ See 85 FR 3501, Section IV. Developing the Proposed Control 
Rule, A. Rationale for the Proposed Rule.
---------------------------------------------------------------------------

G. Oil and Natural Gas Industry in the Uinta Basin

    The oil and natural gas industry in the Uinta Basin includes the 
extraction and production of oil and natural gas, as well as the 
processing, transmission, and distribution of natural gas. 
Specifically, for oil, the industry in the Uinta Basin includes all 
operations from the well to transfer to an oil transmission pipeline or 
other means of transportation to a petroleum refinery. The petroleum 
refinery is not considered part of the oil and natural gas industry. 
Thus, with respect to

[[Page 75346]]

crude oil, the oil and natural gas industry ends where crude oil enters 
an oil transmission pipeline or other means of transportation to a 
petroleum refinery. For natural gas, the industry includes all 
operations from the well to the final end user.
    The oil and natural gas industry in the Uinta Basin can generally 
be separated into four segments: (1) oil and natural gas production; 
(2) natural gas processing; (3) natural gas transmission and storage; 
and (4) natural gas distribution. This U&O FIP for oil and natural gas 
sources on Indian country lands within the U&O Reservation focuses on 
existing, new, and modified sources in the first and second segments, 
oil and natural gas production and natural gas processing, because the 
existing minor sources in those segments cumulatively contribute the 
largest portion of VOC emissions from the oil and natural gas industry 
on the Indian country portion of the U&O Reservation. There are more 
than 6,870 individual oil and natural gas sources (operated by 33 
distinct entities) on the Indian country lands within the U&O 
Reservation, the majority of which are well sites in the oil and 
natural gas production segment.\77\ As discussed earlier, the 2017 NEI 
shows that emissions from the production segment of the oil and natural 
gas sector were estimated to be the largest anthropogenic contributor 
of both VOC and NO<INF>X</INF> emissions in the Uinta Basin. 
Comparatively, the categories that include oil and natural gas storage 
and transfer and bulk gasoline terminals (segments 3 and 4), are 
reported in the 2017 NEI as contributing less than one percent each of 
the total VOC and NO<INF>X</INF> emissions in the Uinta Basin.\78\ Of 
the 13,363 individual active oil and natural gas wells in the Uinta 
Basin, over 10,108 wells, or about 76 percent, are on Indian country 
lands within the U&O Reservation.
---------------------------------------------------------------------------

    \77\ 2017 Uinta Basin Oil and Natural Gas Emissions Inventory 
Update (UBEI2017-Update). The inventory and supporting analysis can 
be viewed in the docket for this rulemaking. See ``UO FIP cost and 
emissions analysis.xlsx'' (Docket ID No. EPA-R08-OAR-2015-0709).
    \78\ Based on the NEI Source Type to Sector Crosswalk in the 
2017 NEI, available at <a href="https://www.epa.gov/air-emissions-inventories/2017-national-emissions-inventory-nei-data">https://www.epa.gov/air-emissions-inventories/2017-national-emissions-inventory-nei-data</a>, accessed 
Mar. 14, 2022. Queried: Duchesne & Uintah Counties VOC-NOx all 
sectors; Ute Indian Tribe of the Uintah & Ouray Indian Reservation 
VOC-NOx all sectors. The EPA's analysis of the 2017 NEI data is 
available in the docket for this rulemaking (Docket ID No. EPA-R08-
OAR-2015-0709), Microsoft Excel spreadsheet titled ``2017 NEI Uinta 
Basin_Dechesne Counties_U&O_VOC-NOx.xlsx.''
---------------------------------------------------------------------------

    The oil and natural gas production segment in the Uinta Basin 
includes wells and all related processes used in the extraction, 
production, recovery, lifting, stabilization, and separation or 
treatment of oil and/or natural gas (including condensate). Production 
components in the Uinta Basin may include wells and related casing 
head, tubing head, and ``Christmas tree'' piping, as well as pumps, 
compressors, heater treaters, separators, storage vessels, pneumatic 
devices, pneumatic pumps, and natural gas dehydrators. Production 
operations in the Uinta Basin also include the well drilling, 
completion, and workover processes, and include all the portable non-
self-propelled apparatuses associated with those operations. Production 
sites in the Uinta Basin include not only the sites where the wells 
themselves are located, but also centralized gas and liquid gathering 
sources where oil, condensate, produced water, and natural gas from 
several wells may be separated, stored, and treated. Production 
components in the Uinta Basin also include the smaller diameter, low-
to-medium-pressure gathering pipelines and related components that 
collect and transport the oil, natural gas, and other materials and 
wastes from the wells or well pads.
    The natural gas production segment in the Uinta Basin ends where 
the natural gas enters a natural gas processing plant. Where there is 
no processing plant, the natural gas production segment ends at the 
point where the natural gas enters the transmission segment for long-
line transport. The crude oil production segment in the Uinta Basin 
ends at the storage and load-out terminal, which is the point of 
custody transfer to an oil pipeline or for transport of the crude oil 
to a petroleum refinery via trucks or railcars.
    Each producing crude oil and natural gas field has its own unique 
properties. The composition of the crude oil and the natural gas as 
well as the reservoir characteristics are likely to be different across 
all reservoirs. The RIA for this rule provides a more detailed overview 
of the products and components of the oil and natural gas industry that 
are relevant to the activities in the Uinta Basin.\79\
---------------------------------------------------------------------------

    \79\ The RIA for the final rule can be viewed in the docket for 
this rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

IV. Summary of the Final U&O FIP

A. Overview

    The emissions control and other requirements of this final FIP that 
will reduce VOC emissions from existing, new, and modified oil and 
natural gas sources on Indian country lands within the U&O Reservation 
are summarized in this section. Significant changes since proposal are 
discussed in more detail in section V of this preamble. The FIP 
includes emissions control efficiency requirements and operational and 
work practice standards, each with associated monitoring, testing, 
recordkeeping, and reporting requirements, as appropriate. Oil and 
natural gas sources must comply with these requirements, except as 
specifically exempted under the FIP for certain equipment or activities 
otherwise subject to existing federal standards 40 CFR part 60, 
subparts OOOO or OOOOa, or 40 CFR part 63, subpart HH. Also discussed 
in this section are the features of the FIP that are necessary to 
facilitate its implementation.
    This final rule applies to owners or operators of oil and natural 
gas sources that either produce oil and natural gas or process natural 
gas, that are located on Indian country lands within the U&O 
Reservation, and that meet the applicability criteria specified for 
each set of requirements. It includes the following provisions in 40 
CFR part 49:

49.4169 Introduction.
49.4170 Delegation of authority of administration to the Tribe.
49.4171 General provisions.
49.4172 Emissions Inventory.
49.4173 VOC emissions control requirements for storage vessels.
49.4174 VOC emissions control requirements for dehydrators.
49.4175 VOC emissions control requirements for pneumatic pumps.
49.4176 VOC emissions control requirements for covers and closed-vent 
systems.
49.4177 VOC emissions control devices.
49.4178 VOC emissions control requirements for fugitive emissions.
49.4179 VOC emissions control requirements for tank truck loading.
49.4180 VOC emissions control requirements for pneumatic controllers.
49.4181 Other combustion devices.
49.4182 Monitoring and testing requirements.
49.4183 Recordkeeping requirements.
49.4184 Notification and reporting requirements.

    We do not expect a substantial number of the existing oil and 
natural gas sources subject to this U&O FIP to also be subject to NSPS 
OOOO or OOOOa, or NESHAP HH, for the specific equipment and activities 
regulated. However, to minimize regulatory burdens where such a 
potential overlap does exist, this rule finalizes the proposed 
provisions that equipment or activities that are affected

[[Page 75347]]

by any requirement in this U&O FIP and that are also subject to the 
substantive emissions control requirements in those EPA standards will 
not be subject to this FIP's substantive emissions control requirements 
for such equipment and activities. As an example, given the exemptions 
being finalized, if an existing, new, or modified oil and natural gas 
source on Indian country lands within the U&O Reservation has storage 
vessels, pneumatic pumps, and fugitive emissions components that are 
subject to the emissions control requirements of NSPS OOOOa, then that 
source would be subject to the substantive emissions control 
requirements for glycol dehydrators in the FIP, but not to the FIP's 
substantive emissions control requirements for storage vessels, 
pneumatic pumps, or fugitive emissions components.

B. Introduction

    In 40 CFR 49.4169 (Introduction) we are finalizing our proposal to 
specify: (1) the purpose of this U&O FIP; (2) the general applicability 
of this U&O FIP; and (3) the compliance schedule for this U&O FIP.
    We are finalizing text that: (1) establishes provisions for 
delegation of authority to allow the Ute Indian Tribe to assist the EPA 
with administration of this U&O FIP in 40 CFR 49.4170; (2) establishes 
general provisions and definitions applicable to oil and natural gas 
sources in 40 CFR 49.4171; (3) establishes a requirement for oil and 
natural gas sources to submit emissions inventories on a triennial 
basis, beginning with an inventory for calendar year 2023 in 40 CFR 
49.4172; and (4) establishes, in 40 CFR 49.4173 through 49.4184, 
enforceable requirements to control and reduce VOC emissions from oil 
and natural gas well production and storage operations, natural gas 
processing, and gathering and boosting operations at oil and natural 
gas sources on Indian country lands within the U&O Reservation.
    This final rule provides that compliance with the rule for oil and 
natural gas sources that commence construction on or after the 
effective date of the final rule is required upon startup. Compliance 
for sources existing as of the effective date of the final rule is 
required no later than 12 months after the effective date of the final 
rule. We concluded that it is important to allow owners/operators of 
existing sources a reasonable period of time to conduct any necessary 
retrofit-related activities, such as (1) acquiring control devices, (2) 
conducting manufacturer-recommended testing to be compliant with the 
requirements, and (3) securing the necessary trained personnel to 
install compliant devices and associated piping and instrumentation. We 
expect that there will be about 2,165 existing oil and natural gas 
sources that may require equipment retrofit and installation of VOC 
emission control equipment (combustion controls) under the final rule. 
Additionally, we estimate that more than 700 high-bleed pneumatic 
controllers will need to be retrofitted to low-or no-bleed. We have 
determined that providing 12 months from the effective date of the 
final rule to install retrofits at existing sources is a reasonable 
amount of time for efficient, cost-effective project planning that 
accounts for a level, sustained equipment and labor resource demand 
that can be supported by the vendor community, while ensuring that 
meaningful emissions reductions will be achieved that provide near-term 
benefits to improve air quality and make progress toward future 
attainment.\80\
---------------------------------------------------------------------------

    \80\ 12 months is a tighter compliance timeframe than is 
required for existing sources in NESHAP regulations, which is 
typically 3 years. The purpose of this proposed U&O FIP, though, is 
to address air quality in a timely fashion. Moreover, the final rule 
allows sources to request extensions of the compliance date beyond 
the 12 months if needed.
---------------------------------------------------------------------------

    We are also finalizing a provision to allow an owner or operator on 
a case-specific basis to submit a written request to the EPA for an 
extension of the compliance deadline for existing sources, which must 
include appropriate justification of the reason for the request. Any 
approval or denial of an extension request, including the length of any 
approved extension, will be based on the merits of each case. Factors 
that the EPA will consider in deciding whether to grant an extension 
request under the provision include the economic and technical 
feasibility of meeting this U&O FIP's control requirements in the 
prescribed timeframe. The final FIP specifies the criteria that the EPA 
will apply in responding to requests for extension of the compliance 
period, including that the request must be submitted before the 
compliance deadline, must identify the specific provisions for which an 
extension is being requested and include an alternative compliance 
deadline, and must provide a rationale for the request with supporting 
information explaining how the operator will effectively meet all 
applicable requirements after the requested alternative compliance 
deadline.

C. Provisions for Delegation of Administration to the Ute Indian Tribe

    We are establishing in 40 CFR 49.4170 (Delegation of authority of 
administration to the Tribe) the steps by which the Ute Indian Tribe 
may request delegation to assist us with the administration of this 
rule, and the process by which the Regional Administrator of EPA Region 
8 may delegate to the Ute Indian Tribe the authority to assist with 
such administration. As described in the regulatory provisions, any 
such delegation will be accomplished through a delegation of authority 
agreement between the Regional Administrator and the Tribe. This 
section provides for administrative delegation of this federal rule and 
does not affect the TAS eligibility criteria under CAA section 301(d) 
and 40 CFR 49.6 should the Ute Indian Tribe decide to seek such 
treatment for the purpose of administering its own EPA-approved TIP 
under tribal law. Administrative delegation is a separate process from 
TAS under the TAR. Under the TAR, Indian tribes seek the EPA's approval 
of their eligibility to implement CAA programs under their own laws. 
The Ute Indian Tribe will not need to seek TAS under the TAR for 
purposes of requesting to assist us with administration of this rule 
through a delegation of authority agreement. If delegation does occur, 
the rule would continue to operate under federal authority on Indian 
country lands within the U&O Reservation, and the Ute Indian Tribe 
would assist us with administration of the rule to the extent specified 
in the agreement.

D. General Provisions

    We are finalizing in 40 CFR 49.4171 (General provisions): (1) a 
requirement to design, operate, and maintain all equipment used for 
hydrocarbon liquid and gas collection, storage, processing, and 
handling operations covered under this rule, in a manner consistent 
with good air pollution control practices and that minimizes leakage of 
VOC emissions to the atmosphere. Determination of whether acceptable 
operating and maintenance procedures are being used will be based on 
information available to the EPA, including monitoring results, review 
of operating and maintenance procedures, and inspection of the source; 
and (2) definitions.

E. Emissions Inventory Requirements

    We are finalizing in 40 CFR 49.4172 a requirement for owners/
operators of oil and natural gas sources with the

[[Page 75348]]

potential to emit one or more NSR-regulated pollutants at levels 
greater than one tpy to submit an annual emissions inventory, once 
every three years beginning with calendar year 2024, that covers 
emissions from the previous calendar year (2023 for the first required 
inventory). Each triennial inventory must be submitted no later than 
April 15th of the year after each inventory year. The triennial 
emissions inventory requirement will suffice for the purpose of 
continued updates to the comprehensive Uinta Basin oil and natural gas 
emissions inventory by the UDEQ, the Ute Indian Tribe, and the EPA. 
Owners/operators must submit actual emissions for each emissions unit 
at each oil and natural gas source covered by the requirement in a 
standard format specified by the Regional Office and available on our 
website. The format will be consistent with the format used by the UDEQ 
to collect information from sources in the Uinta Basin outside of 
Indian country lands within the U&O Reservation.

F. VOC Emissions Control Requirements

    The discussion in this section details the final VOC emissions 
control requirements of this FIP and how they compare to existing state 
and federal requirements for the equipment and activities listed in 
Table 3. The most notable difference between the final VOC emissions 
control requirements of this FIP and the Utah Oil and Gas Rules \81\ 
and Utah Permit Requirements \82\ is that the Utah permit by rule's 4 
tpy total VOC emissions threshold for requiring controls does not 
include pneumatic pump emissions. We have determined that emissions 
from pneumatic pumps are a large source of VOC emissions on the Indian 
country lands within the U&O Reservation, but a negligible source of 
VOC emissions in the areas in the Basin where the EPA has approved the 
UDEQ to implement the CAA. This difference in the share of pneumatic 
pumps emissions in the inventory is because the majority of natural gas 
production operations, which use gas-driven pneumatic pumps, occurs on 
the Reservation, while lands where air quality is managed by the UDEQ 
feature mostly oil production. This difference is explained in more 
detail later in this section.
---------------------------------------------------------------------------

    \81\ Utah Administrative Code Chapter R307-500 Series (Oil and 
Gas), available in the docket for this rulemaking (Docket ID No. 
EPA-R08-OAR-2015-0709). These rules, referred to collectively as the 
``Utah permit by rule,'' are state-only rules and the UDEQ has not 
submitted them to the EPA for approval in the Utah SIP.
    \82\ Utah Administrative Code Chapter R307-401 (Permits: New and 
Modified Sources), available in the docket for this rulemaking 
(Docket ID No. EPA-R08-OAR-2015-0709); See 40 CFR part 52, subpart 
TT.
    \83\ The National O&NG FIP incorporates the requirements of the 
eight standards, as they apply to a source. To make emissions 
control requirements across the Basin consistent, this U&O FIP goes 
beyond the eight federal standards to regulate certain equipment and 
activities that are not regulated by established EPA standards (or 
are regulated differently) but are regulated in UDEQ standards. In 
addition, the EPA issued subsequent rules that revised certain 
provisions of NSPS OOOO and OOOOa (The 2020 Policy Rule and 2020 
Technical Rule; see discussion above in Section I.B.). The 2021 CRA 
resolution disapproved the policy amendments of NSPS OOOO and OOOOa. 
PL 17-23 (June 30, 2021). The requirements summarized in this table 
reflect the standards that are in effect today--the methane 
standards in the 2016 NSPS OOOOa and the 2016 VOC standards in NSPS 
OOOO and OOOOa, as they were amended in 2020. The EPA's Oil and 
Natural Gas Sector Climate Review Proposed Rule would revise 
existing VOC standards under NSPS OOOO and OOOOa, establish new 
methane and VOC standards for new and modified emissions sources not 
previously covered by NSPS OOOO and OOOOa, and establish emissions 
guidelines for existing sources. This table does not reflect those 
proposed standards and guidelines. We may revisit this final action 
in the future based on any final action we take under CAA section 
111 with the Oil and Natural Gas Sector Climate Review rulemaking.

   Table 3--U&O FIP VOC Emissions Control Requirements for Existing, New, and Modified Oil and Natural Gas Sources Versus UDEQ and Other Federal \83\
                                                                  Control Requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
                     U&O FIP VOC Emissions Controls                        Utah oil and gas
-------------------------------------------------------------------------   rules and Utah
 Final FIP requirements (section     Applicability    Control efficiency        permit             NSPS OOOO          NSPS OOOOa           NESHAP HH
       in 40 CFR  part 49)             threshold           (percent)         requirements
--------------------------------------------------------------------------------------------------------------------------------------------------------
Storage vessel VOC emission       Source-wide         Reduce VOC by 95.0  Issued Utah Permit  Reduce VOC by 95.0  Reduce VOC by 95.0  Reduce HAP by 95.0
 control requirements (Sec.        potential for VOC   percent or route    Requirements        percent or route    percent or route    percent or route
 49.4173).                         emissions from      to a process.       (BACT for site-     to a process for    to a process for    to a process for
                                   the collection of  See also VOC         specific &          individual          individual          individual
                                   all storage         emission control    general approval    storage vessels     storage vessels     storage vessels
                                   vessels,            devices later in    orders)--Reduce     with potential      with potential      with potential
                                   dehydrators and     this table (Sec.    VOC by 98 percent   for >=6 tpy per     for >=6 tpy per     for flash
                                   pneumatic pumps      49.4177).          or route to a       storage vessel      storage vessel      emissions and
                                   >=4 tpy.                                process where       constructed,        constructed,        actual annual
                                                                           source-wide         reconstructed or    reconstructed or    average
                                                                           uncontrolled        modified after      modified after      hydrocarbon
                                                                           actual VOC          August 23, 2011,    September 18,       liquid throughput
                                                                           emissions from      and on or before    2015                >=79,500 liters/
                                                                           the collection of   September 18,       (alternatively,     day.
                                                                           all storage         2015                no control
                                                                           vessels,            (alternatively,     required if
                                                                           dehydrators and     no control          uncontrolled
                                                                           pneumatic pumps     required if         actual VOC
                                                                           >=4 tpy.            uncontrolled        emissions
                                                                          Utah Oil and Gas     actual VOC          maintained <4tpy).
                                                                           Rules--Reduce VOC   emissions
                                                                           by 95 percent or    maintained <4
                                                                           route to a          tpy).
                                                                           process if total
                                                                           uncontrolled
                                                                           actual emissions
                                                                           from the
                                                                           collection of
                                                                           dehydrators and
                                                                           storage vessels
                                                                           >=4 tpy VOC (does
                                                                           not include
                                                                           pneumatic pump
                                                                           emissions), or if
                                                                           source with
                                                                           storage vessels
                                                                           only has through
                                                                           put >=8,000 bbl
                                                                           crude oil or
                                                                           2,000 bbl
                                                                           condensate, on
                                                                           rolling 12-month
                                                                           basis--unless <=4
                                                                           tpy source-wide
                                                                           uncontrolled
                                                                           actual emissions
                                                                           of VOC from the
                                                                           collection of all
                                                                           storage vessels.

[[Page 75349]]

 
Dehydrators VOC emission control                      See VOC emission    Issued Utah Permit  Not covered.......  Not covered.......  For units at major
 requirements (Sec.   49.4174).                        control devices     Requirements                                                HAP sources and
                                                       later in this       (BACT for site-                                             non-urban area
                                                       table (Sec.         specific &                                                  sources with
                                                       49.4177).           general approval                                            actual annual
                                                                           orders)--Reduce                                             average flowrate
                                                                           VOC by 98 percent                                           of natural gas
                                                                           or route to a                                               >=85,000 standard
                                                                           process where                                               m3/day, reduce
                                                                           source-wide                                                 HAP by 95.0
                                                                           uncontrolled                                                percent or route
                                                                           actual VOC                                                  to a process.
                                                                           emissions from                                             Units with actual
                                                                           the collection of                                           annual average
                                                                           all storage                                                 flowrate of
                                                                           vessels,                                                    natural gas
                                                                           dehydrators and                                             <85,000 standard
                                                                           pneumatic pumps                                             m3/day not
                                                                           >=4 tpy.                                                    covered--this is
                                                                          Utah Oil and Gas                                             the majority of
                                                                           Rules--Reduce VOC                                           units on Indian
                                                                           by 95 percent if                                            country lands
                                                                           total                                                       within the U&O
                                                                           uncontrolled                                                Reservation.
                                                                           actual emissions
                                                                           from the
                                                                           collection of
                                                                           dehydrators and
                                                                           storage vessels
                                                                           >=4 tpy VOC (does
                                                                           not include
                                                                           pneumatic pump
                                                                           emissions).
Pneumatic pumps VOC emission                          See VOC emission    Issued Utah Permit  Not covered.......  Reduce VOC by 95.0  Not covered.
 control requirements (Sec.                            control devices     Requirements                            percent (if
 49.4175).                                             later in this       (BACT for site-                         control device is
                                                       table (Sec.         specific &                              already on site)
                                                       49.4177).           general approval                        or route to a
                                                                           orders)--Reduce                         process (if
                                                                           VOC by 98 percent                       technically
                                                                           or route to a                           feasible) for
                                                                           process where                           natural gas-
                                                                           source-wide                             driven diaphragm
                                                                           uncontrolled                            pneumatic pumps
                                                                           actual VOC                              at well sites
                                                                           emissions from                          constructed,
                                                                           the collection of                       reconstructed or
                                                                           storage vessels,                        modified after
                                                                           dehydrators and                         September 18,
                                                                           pneumatic pumps                         2015.
                                                                           >=4 tpy.                               Zero natural gas
                                                                          Utah Oil and Gas                         emissions for
                                                                           Rules does not                          natural gas
                                                                           require control                         processing plants
                                                                           of pneumatic pump                       constructed after
                                                                           emissions.                              September 18,
                                                                                                                   2015.
Covers and closed-vent system     Source-wide         100 percent of VOC  100 percent of      100 percent of      100 percent of      100 percent of HAP
 VOC emission control              potential for VOC   emissions routed    storage vessel,     storage vessel      storage vessel      emissions, if
 requirements (Sec.   49.4176).    emissions from      to process or       dehydrator and      VOC emissions       emissions routed    required to
                                   the collection of   control device.     pneumatic pump      routed to control   to control device   control glycol
                                   all storage                             emissions routed    device or process.  or process.         dehydrators and/
                                   vessels,                                to control device                                           or storage
                                   dehydrators and                         or process in                                               vessels.
                                   pneumatic pumps                         issued Utah
                                   >=4 tpy.                                Permit
                                                                           Requirements and
                                                                           Rules (BACT for
                                                                           site-specific &
                                                                           general approval
                                                                           orders).
                                                                          Utah Oil and Gas
                                                                           Rules--100
                                                                           percent storage
                                                                           vessel and
                                                                           dehydrator
                                                                           emissions routed
                                                                           to control device
                                                                           or process (Utah
                                                                           Oil and Gas Rules
                                                                           do not include
                                                                           routing pneumatic
                                                                           pump emissions).
VOC emission control devices      Source-wide         95.0 percent        98.0 percent        95.0 percent        95.0 percent        If required to
 (Sec.   49.4177).                 potential for VOC   continuously.       continuous VOC      continuous VOC      continuous VOC      control glycol
                                   emissions from                          control             control             control             dehydrator or
                                   the collection of                       efficiency for      efficiency.         efficiency.         storage vessel
                                   all storage                             Issued Utah                                                 HAP emissions,
                                   vessels,                                Permit                                                      must reduce HAP
                                   dehydrators and                         Requirements                                                by 95.0 percent,
                                   pneumatic pumps                         (BACT for site-                                             or maintain <20
                                   >=4 tpy.                                specific &                                                  parts per million
                                                                           general approval                                            volume (ppmv) or
                                                                           orders).                                                    1 tpy benzene.
                                                                          95 percent
                                                                           continuous
                                                                           control
                                                                           efficiency for
                                                                           Utah Oil and Gas
                                                                           Rules.

[[Page 75350]]

 
Fugitive emissions VOC emission   Source-wide         NA-Semi-annual      Utah Oil and Gas    For natural gas     For well sites and  Ensure closed-vent
 control requirements (Sec.        potential for VOC   surveys.            Rules--semi-        processing plants   compressor          system operates
 49.4178).                         emissions from                          annual surveys at   constructed,        stations            with no
                                   the collection of                       all registered      reconstructed, or   constructed,        detectable
                                   all storage                             well sites          modified after      reconstructed or    emissions if
                                   vessels,                                required to         August 23, 2011,    modified after      required to
                                   dehydrators and                         control storage     and on or before    September 18,       control glycol
                                   pneumatic pumps                         vessel and/or       September 18,       2015--Fugitive      dehydrator or
                                   >=4 tpy.                                dehydrator VOC      2015--LDAR          emissions surveys   storage vessel
                                  Or................                       emissions.          requirements as     using OGI           HAP emissions.
                                  Well site                               Issued Utah Permit   referenced in       conducted
                                   production >15                          Requirements        NSPS VVa, with      semiannually
                                   boe per day                             (sources exempt     periodic EPA        (well sites) and
                                   (rolling                                from Utah Oil and   Method 21 surveys   quarterly
                                   consecutive 12-                         Gas Rules)          on specific         (compressor
                                   month average).                         require LDAR,       equipment types.    stations).
                                                                           ranging from                           For natural gas
                                                                           annual to                               processing plants
                                                                           quarterly for all                       constructed,
                                                                           approved (i.e.,                         reconstructed or
                                                                           permitted) oil                          modified after
                                                                           and natural gas                         September 18,
                                                                           sources,                                2015--LDAR
                                                                           including                               requirements as
                                                                           compressor                              referenced in
                                                                           stations.                               NSPS VVa, with
                                                                                                                   periodic EPA
                                                                                                                   Method 21 surveys
                                                                                                                   on specific
                                                                                                                   equipment types.
Tank truck loading VOC emission   None--applies to    NA--Bottom filling  Utah Oil and Gas    Not covered.......  Not covered.......  Not covered.
 control requirements (Sec.        all existing        or submerged fill   Rules--more
 49.4179).                         sources.            pipe.               stringent, as
                                                                           capture and
                                                                           control of VOC
                                                                           emissions (95
                                                                           percent
                                                                           efficiency)
                                                                           required at
                                                                           registered
                                                                           sources required
                                                                           to control
                                                                           storage vessel
                                                                           and glycol
                                                                           dehydrator
                                                                           emissions.
Pneumatic controllers VOC                             NA--meet the        Utah Oil and Gas    For continuous      For continuous      Not covered.
 emission control requirements                         standards of NSPS   Rules--Meet         bleed natural gas   bleed natural gas
 (Sec.   49.4180).                                     OOOO or OOOOa.      standards of NSPS   driven pneumatic    driven pneumatic
                                                                           OOOO.               controllers         controllers
                                                                                               constructed,        constructed,
                                                                                               reconstructed or    reconstructed or
                                                                                               modified after      modified after
                                                                                               October 15, 2013    September 18,
                                                                                               and on or before    2015, zero-bleed
                                                                                               September 18,       for processing
                                                                                               2015, zero-bleed    plants and low-
                                                                                               for processing      bleed (<6 scfh)
                                                                                               plants and low-     elsewhere.
                                                                                               bleed (<6 scfh)
                                                                                               elsewhere.
Other combustion devices (Sec.                        NA--must be         Utah Oil and Gas    Not covered.......  Not covered.......  Not covered.
 49.4181).                                             equipped with       Rules--must be
                                                       automatic           equipped with
                                                       ignition device.    automatic
                                                                           ignition device.
--------------------------------------------------------------------------------------------------------------------------------------------------------

1. Storage Vessels, Glycol Dehydrators, and Pneumatic Pumps
    For existing, new, and modified sources, we are finalizing in 40 
CFR 49.4173 (Storage vessel VOC emission control requirements), 40 CFR 
49.4174 (Dehydrators VOC emission control requirements), and 40 CFR 
49.4175 (Pneumatic pumps VOC emission control requirements) the 
requirement that owners and operators of affected storage vessels, 
glycol dehydrators, and natural gas-driven pneumatic pumps either: (1) 
reduce VOC emissions from flashing, working, standing, and breathing 
losses from the collection of all crude oil, condensate, intermediate 
hydrocarbon and produced water storage vessels, glycol dehydrator 
process vents (glycol dehydrator regenerator or still vent and the vent 
from the dehydrator flash tank, if present), and pneumatic pumps, by at 
least 95.0 percent on a continuous basis; or (2) maintain the source-
wide uncontrolled actual VOC emissions from the collection of all 
storage vessels, glycol dehydrators, and pneumatic pumps at a rate of 
less than 4 tpy. We are finalizing the requirement that applicability 
for the VOC emissions control requirements be determined specifically 
according to the following criteria. For oil and natural gas sources 
that began operation before the effective date of the final rule, we 
are requiring that applicability be determined using potential for VOC 
emissions. Potential for VOC emissions must be calculated using a 
generally accepted model or calculation methodology based on the 
maximum average daily throughput, as determined for existing sources 
using the highest 30-day period of production in the 12 consecutive 
months before the compliance deadline of the rule for each affected 
source. The determination may take into account requirements under 
legally and practicably enforceable limits in an applicable operating 
permit or other applicable federal requirement, such as those in NSPS 
OOOO or OOOOa, or NESHAP HH. For oil and natural gas sources that begin 
operation or modification after the effective date of the final rule, 
we are requiring that applicability for glycol dehydrators and 
pneumatic pumps be determined using potential to emit VOC, and that 
emissions from the collection of all storage vessels be controlled upon 
startup for a minimum of 12 consecutive months. This requirement for 
new and modified storage vessels is being finalized because of the 
uncertainty of well production levels before operation begins. After a 
minimum of 12 consecutive months of operation, controls may be removed 
if source-wide uncontrolled actual VOC emissions from the collection of 
all storage vessels, glycol dehydrators, and pneumatic pumps are 
demonstrated to be less than 4 tpy.
    We are requiring that owners or operators demonstrate that the 
source-wide uncontrolled actual VOC emissions from the collection of 
all

[[Page 75351]]

crude oil, condensate, intermediate hydrocarbon liquids and produced 
water storage vessels, glycol dehydrator process vents, and pneumatic 
pumps have been maintained below 4 tpy, using records of monthly 
determinations of uncontrolled actual VOC emission rates for the 12 
consecutive months immediately preceding the demonstration. The 
uncontrolled actual VOC emissions rate must be calculated using a 
generally accepted model or calculation methodology.
    The final rule requires that the owner or operator re-evaluate the 
source-wide uncontrolled actual VOC emissions on a monthly basis. If 
the results of the monthly determination show that the uncontrolled 
actual VOC emission rate is greater than or equal to 4 tpy, the owner 
or operator will have 30 days to switch to the first option specified 
and control VOC emissions by at least 95 percent continuously. We are 
finalizing an exemption to the VOC emissions control requirements for 
each emergency storage vessel that meets the following requirements: 
(1) the storage vessel is not used as an active storage vessel; (2) the 
owner or operator empties the storage vessel no later than 15 days 
after receiving fluids; (3) the storage vessel is equipped with a 
liquid level gauge or equivalent device; and (4) records of the use of 
each vessel are kept indicating the date the vessel received fluids or 
was discovered to have received fluids, the date the vessel was emptied 
and the volume of fluids emptied in barrels.
    The final VOC emissions control applicability provisions and other 
requirements are the same as or comparable on balance with the 
requirements in the Utah Permit Requirements and/or Utah Oil and Gas 
Rules. The methods for determining applicability of the control 
requirements are the same as those in site-specific minor source BACT 
analyses in the Utah Permit Requirements. In site-specific approval 
orders that have been issued, the UDEQ requires VOC emissions controls 
for source-wide emissions from the collection of all storage vessels, 
glycol dehydrators, and pneumatic pumps at oil and natural gas sources 
\84\ when the source-wide potential for VOC emissions from that 
equipment is greater than or equal to 4 tpy. We have also determined 
that controlling emissions above the 4 tpy VOC level is cost-effective 
and will achieve meaningful emissions reductions on Indian country 
lands within the U&O Reservation.\85\ The methods for determining 
applicability of the control requirements are comparable on balance 
with the UDEQ's recently adopted Utah Oil and Gas Rules, except that 
those rules do not consider emissions from or control of pneumatic 
pumps.\86\ The reason for this difference is discussed later when we 
describe this FIP's requirements for pneumatic pumps. The Utah Oil and 
Gas Rules require all new and modified storage vessels (i.e., those 
that begin operation on or after January 1, 2018) to control emissions 
upon startup of operation for a minimum of one year. The requirement in 
this FIP to control emissions from the collection of all new and 
modified storage vessels for at least 12 consecutive months, the 
exemption for emergency storage vessels, and the provision allowing 
removal of controls from the collection of all storage vessels, glycol 
dehydrators, and pneumatic pumps are also the same as the requirements 
in the Utah Oil and Gas Rules, with the exception of pneumatic pump 
emissions and control mentioned earlier, which will be discussed in 
more detail later.
---------------------------------------------------------------------------

    \84\ The docket for this rulemaking contains several examples of 
UDEQ site-specific minor source NSR permits (approval orders) for 
Crude Oil and Natural Gas Well Sites and/or Tank Batteries (DAQE-
AN151010001-15, DAQE-AN149250001-14, and DAQE-AN143640003-15). UDEQ 
site-specific approval order requirements are based on BACT analyses 
for oil and natural gas sources concluding that combustion of VOC 
emissions from crude oil and condensate storage tanks, glycol 
dehydrators, and pneumatic pumps is economically and technically 
feasible when the source-wide potential for VOC emissions from those 
emissions sources is equal to or greater than 4 tpy. The analyses 
rely in part on the EPA's analysis in the April 12, 2013 NSPS OOOO 
reconsideration, and the finding that emissions from those three 
emissions sources at a single source can feasibly be routed to the 
same combustor. Though the 4 tpy threshold is not specifically 
stated in the approval orders, if a source applying for a site-
specific approval order has source-wide storage tank, glycol 
dehydrator, and pneumatic pump VOC emissions equal to or greater 
than 4 tpy, the order contains requirements to control those 
emissions.
    \85\ The RIA in the docket for this rulemaking (Docket ID No. 
EPA-R08-OAR-2015-0709) contains more detailed information on our 
analyses.
    \86\ In response to an EPA comment on UDEQ's proposal 
questioning why issued approval orders and the GAO cover pneumatic 
pumps, but the new Utah Oil and Gas Rules do not, the UDEQ stated 
that the 2014 Uinta Basin Emissions Inventory indicated that 
pneumatic pump emissions constitute an insignificant portion of the 
total VOC emissions at Utah-regulated sources in the Basin. The 
comments and UDEQ's responses are available in the docket for this 
rulemaking (Docket ID No. EPA-R08-OAR-2015-0709).
---------------------------------------------------------------------------

    We are finalizing the option that the owner or operator capture and 
route all subject emissions through a closed-vent system to an enclosed 
combustor or flare that is designed and operated to reduce the mass 
content of VOC in the emissions vented to it by at least 95.0 percent. 
Requirements for closed-vent systems are established under conditions 
specified in 40 CFR 49.4176 (VOC emission control requirements for 
covers and closed-vent systems), and requirements for operation and 
monitoring of control devices are established under conditions 
specified in 40 CFR 49.4177 (VOC Emission Control Devices) and 40 CFR 
49.4182 (Monitoring Requirements), all of which are discussed in detail 
below in the summaries of Covers, Closed-Vent Systems, and VOC Emission 
Control Devices and Monitoring Requirements.
    We are finalizing the alternative option that the owner or operator 
design operations to recover 100 percent of the emissions and recycle 
them for use in a process unit or incorporate them into a product. 
These control options are the same as the Utah Permit Requirements and 
the Utah Oil and Gas Rules.
    As described earlier, regulating pneumatic pumps in this U&O FIP is 
not comparable to the UDEQ's Utah Oil and Gas Rules, because those 
rules do not include requirements for pneumatic pumps.\87\ But the 
approach in this U&O FIP to controlling pneumatic pumps by routing 
emissions to the same control device that controls emissions from the 
collection of all storage vessels and glycol dehydrators is the same as 
the UDEQ's approach to controlling pneumatic pumps in site-specific 
approval orders issued under Utah Permit Requirements. We are confident 
that this approach will help achieve ozone air quality improvements 
through this U&O FIP, as the UBEI2017-Update shows that VOC emissions 
from pneumatic pumps constitute 16 percent of the total oil and natural 
gas-related VOC emissions on Indian country lands within the U&O 
Reservation.\88\
---------------------------------------------------------------------------

    \87\ We note that the Utah Oil and Gas Rules do not contain 
requirements for pneumatic pumps. We are finalizing requirements for 
pneumatic pumps requirements, as we have identified emissions from 
existing pneumatic pumps as being a significant source of VOC 
emissions on the Indian country lands within the U&O Reservation.
    \88\ By contrast, the UBEI2017-Update shows that there are a 
very low number of pneumatic pumps installed and operating on lands 
in areas of the Basin where the EPA has approved the UDEQ to 
implement the CAA; the UDEQ has stated that this fact is the reason 
the Utah Oil and Gas Rules do not have control requirements for 
pneumatic pumps (see the response to comments on the UDEQ's proposed 
rules in the docket for this rulemaking).
---------------------------------------------------------------------------

    We do not expect that a substantial number of existing oil and 
natural gas sources that would meet the applicability criteria of this 
U&O FIP will also be subject to NSPS OOOO or OOOOa, or NESHAP HH. 
However, to address any potential regulatory overlap, we are providing 
that any affected storage vessels, glycol dehydrators, or pneumatic 
pumps that

[[Page 75352]]

are subject to the emissions control requirements in those EPA 
standards, are not subject to the requirements in this U&O FIP for such 
equipment and activities, including monitoring, recordkeeping, and 
reporting requirements associated with such equipment and activities.
2. Covers, Closed-Vent Systems
    For affected existing, new, and modified sources that are required 
to control emissions from the collection of all storage vessels, glycol 
dehydrators and pneumatic pumps per 40 CFR 49.4173 through 49.4175, we 
are finalizing in 40 CFR 49.4176 (VOC emission control requirements for 
covers and closed-vent systems) to require, as applicable, the use of 
covers on all storage vessels, and the use of closed-vent systems with 
equipment that captures and routes VOC emissions to the respective 
vapor recovery or VOC emission control devices. Because closed-vent 
systems are common to control requirements for storage vessels, glycol 
dehydrators and pneumatic pumps, we are finalizing these requirements 
in a separate section to avoid redundancy. Section 49.4176 also 
specifies construction and operational requirements for the covers and 
closed-vent systems. The construction and operational requirements for 
the covers and closed-vent systems are intended to provide legal and 
practical enforceability to ensure that all captured VOC emissions are 
routed to the respective vapor recovery or VOC emission control 
devices. In addition, for affected existing, new, and modified sources 
that are required to control emissions from the collection of all 
storage vessels, glycol dehydrators and pneumatic pumps, in 40 CFR 
49.4177 (VOC emission control devices) we are finalizing specific 
legally and practicably enforceable construction and operational 
requirements for enclosed combustors and flares.
    We are finalizing in 40 CFR 49.4176 (VOC emission control 
requirements for covers and closed-vent systems) the requirement that 
each owner or operator equip the openings on each affected storage 
vessel with a cover that ensures that flashing, working, standing and 
breathing losses are efficiently routed through a closed-vent system to 
a vapor recovery system, an enclosed combustor, or a flare. We are 
finalizing the requirement that each cover and all openings on the 
cover (e.g., access hatches, sampling ports, and gauge wells) form a 
continuous barrier over the entire surface area of the crude oil, 
condensate, intermediate hydrocarbon liquids or produced water in the 
storage vessel. Each cover opening must be secured in a closed, sealed 
position (i.e., covered by a gasketed lid or cap) whenever material is 
in the storage vessel on which the cover is installed, except when it 
is necessary to use an opening to: (1) add material to, or remove 
material from the unit (this includes openings necessary to equalize or 
balance the internal pressure of the unit following changes in the 
level of the material in the unit); (2) inspect or sample the material 
in the unit; or (3) inspect, maintain, repair, or replace equipment 
inside the unit.
    We are requiring that all vent lines, connections, fittings, 
valves, relief valves, and any other appurtenance employed to contain 
and collect emissions and transport them to the vapor recovery or VOC 
control equipment be maintained and operated properly at all times, and 
that they be designed to operate with no detectable emissions. If a 
closed-vent system contains one or more bypass devices that could be 
used to divert all or a portion of the emissions from entering the 
vapor recovery or VOC control devices, we are requiring that the owner 
or operator meet one of the following options for each bypass device: 
(1) at the inlet to the bypass device, properly install, calibrate, 
maintain, and operate a flow indicator capable of taking periodic 
readings and sounding an alarm when the bypass device is open such that 
the emissions are being, or could be, diverted away from the control 
device and into the atmosphere; or (2) secure the bypass device valve 
in the non-diverting position using a car-seal or a lock-and-key type 
configuration.
    The cover and closed-vent system requirements are comparable on 
balance with UDEQ requirements for storage vessels in both the issued 
site-specific approval orders and the Utah Oil and Gas Rules. The site-
specific approval orders require storage vessel thief hatches to be 
closed and latched except during storage vessel unloading or other 
maintenance activities. They also require that thief hatches be 
inspected once every three months to ensure that thief hatches are 
closed and latched, and that any associated gaskets are in good working 
condition. Similarly, the Utah Oil and Gas Rules for storage vessels 
require thief hatches to be kept closed and latched except during 
unloading or maintenance. The U&O FIP requirements for covers and 
closed-vent systems were developed by consulting the cover and closed-
vent system requirements of EPA standards, such as OOOO and OOOOa and 
NESHAP HH. For ease of implementation, these requirements provide more 
detail than the UDEQ requirements in both the issued site-specific 
approval orders and the Utah Oil and Gas Rules but are comparable on 
balance with the UDEQ requirements for storage vessels and closed-vent 
systems.
3. VOC Emission Control Devices
    For existing, new, and modified sources that are required to 
control VOC emissions from the collection of all storage vessels, 
glycol dehydrators and pneumatic pumps, we are finalizing requirements 
in 40 CFR 49.4177 (VOC emission control devices) that each owner or 
operator follow the manufacturer's written operating instructions, 
procedures and maintenance schedules to ensure the use of good air 
pollution control practices for minimizing emissions from each enclosed 
combustor and flare. Each flare must be designed and operated according 
to the requirements of 40 CFR 60.18(b). Each enclosed combustor must be 
designed and operated to reduce the mass content of the VOC in the 
natural gas routed to it by at least 95.0 percent continuously. The 
control efficiency required for each VOC emissions control device is 
the same as the Utah Oil and Gas Rules.
    We recognize that the site-specific approval orders issued to 
existing sources under the Utah Permit Requirements require control 
devices to meet 98 percent VOC control efficiency. But we have 
concluded that the differences between this U&O FIP, the Utah Oil and 
Gas Rules, and the Utah Permit Requirements are minimal, and all were 
designed to achieve a consistent result. The UDEQ requires permittees 
of minor oil and natural gas sources to show compliance with 98.0 
percent VOC control device control efficiency by routing all exhaust 
gas/vapors (from the storage vessels, glycol dehydrators or pneumatic 
pumps) to the operating combustor, operating the device according to 
the manufacturer's written instructions when gases/vapors are routed to 
it, operating the device with no visible emissions, and by performing 
tests to visually determine smoke emissions according to EPA Method 22 
at 40 CFR part 60, appendix A. The Utah Oil and Gas Rules require at 
least 95.0 percent VOC control efficiency and do not specify methods to 
ensure no visible emissions but refer to NSPS OOOOa for demonstrating 
compliance with the control efficiency requirements. We note that 
combustion devices can be designed to meet 98.0 percent control 
efficiencies, and can control emissions by 98.0 percent or

[[Page 75353]]

more, on average, in practice when properly operated.\89\ Combustion 
devices designed to meet 98.0 percent control efficiency may not, 
however, be able to meet this efficiency level continuously in 
practice, due to factors such as the variability of field conditions 
and downtime.
---------------------------------------------------------------------------

    \89\ The EPA has reviewed performance tests submitted for 19 
different makes/models of combustor control devices and confirmed 
they meet the performance requirements in NSPS subpart OOOO and 
NESHAP subparts HH and HHH. All reported control efficiencies were 
above 99.9 percent at tested conditions. EPA notes that the control 
efficiency achieved in the field is likely to be lower than the 
control efficiency achieved at a bench test site under controlled 
conditions, but these units should be able to continuously meet a 
95.0 percent control efficiency level when they are designed, 
monitored and operated in a way that ensures effective performance 
on a continuous basis. See Combustion Device Performance Testing 
Summary Table in the docket for this rule.
---------------------------------------------------------------------------

    During development of NSPS OOOO and OOOOa, 95.0 percent control 
efficiency was determined to be the best system of emission reduction 
(BSER) able to be continuously achieved by affected facilities (e.g., 
storage vessels, centrifugal compressors) nationwide. The EPA is aware 
that enclosed combustors and flares may be capable of achieving 
instantaneous control efficiencies greater than 95.0 percent,\90\ but 
in determining BSER the EPA must be confident that the control 
efficiency can be achieved continuously by affected facilities 
nationwide to which it applies. We are confident that combustors and 
flares can meet at least 95.0 percent VOC control efficiency on a 
continuous basis when they are designed, monitored and operated in a 
way that ensures effective performance on a continuous basis. While the 
EPA is aware that combustion devices commonly used to control VOC-
containing gas streams are capable of demonstrating greater than 98.0 
percent continuous VOC control efficiency in a controlled performance 
testing environment, under ideal conditions, based on widespread and 
readily available manufacturer test data,\91\ we are not confident that 
the devices can achieve 98.0 percent continuous VOC control efficiency 
in the field without stronger flare performance requirements than are 
currently in effect today.\92\
---------------------------------------------------------------------------

    \90\ See ``Oil and Natural Gas Sector New Source Performance 
Standards and National Emissions Standards for Hazardous Air 
Pollutants reviews, Parts 60 and 63, Response to Public Comments on 
Proposed Rule, 76 FR 52738 (Aug. 23, 2011), available at <a href="https://www.regulations.gov">https://www.regulations.gov</a> (Docket ID EPA-HQ-OAR-2010-0505 (Section 2.5.4, 
pages 127-128; Section 3.4.1, pages 294-295; and Section 3.5.1, 
pages 302-303)).
    \91\ See Combustion Device Performance Testing Summary Table in 
the docket for this rule.
    \92\ The Oil and Natural Gas Sector Climate Review Proposed Rule 
is soliciting comment and information that would help us better 
understand the cost, feasibility, and emission reduction benefits 
associated with establishing a 98 percent control efficiency 
requirement for flares in the Crude Oil and Natural Gas source 
category, including information on the level of performance being 
achieved in practice by flares in the field, what conditions or 
factors contribute to malfunctions or poor performance at these 
flares, and what measures the EPA could or should require in order 
to ensure that flares perform at a 98 percent level of control. See 
86 FR 63110 (Nov. 15, 2021).
---------------------------------------------------------------------------

    We are requiring that all flares installed per this rule be 
designed and operated in accordance with applicable requirements in 40 
CFR 60.18(b).\93\ We are requiring that all enclosed combustors 
installed per this rule be models: (1) that have been tested by the 
manufacturer in accordance with specific requirements in NSPS OOOO and 
OOOOa; or (2) for which the owner or operator has conducted performance 
testing according to the requirements in NSPS OOOO and OOOOa. The Utah 
Oil and Gas Rules require that compliance for VOC control devices be 
demonstrated by meeting the performance test methods and procedures in 
NSPS OOOO. The Utah Oil and Gas Rules do not distinguish between flares 
and enclosed combustors. We determined, though, that it was important 
to have specific requirements for the different types of control 
devices that may be present at oil and natural gas sources on Indian 
country lands within the U&O Reservation, because EPA standards 
including NSPS OOOO and OOOOa and NESHAP HH make such distinctions for 
legal and practical enforceability. Therefore, although for ease of 
implementation this FIP's requirements for VOC control devices to 
demonstrate compliance with the control efficiency requirements are 
more detailed than the state's, they are comparable on balance with the 
Utah Oil and Gas Rules that reference such requirements in NSPS OOOO, 
as well as with NSPS OOOO and OOOOa and NESHAP HH.
---------------------------------------------------------------------------

    \93\ 40 CFR 60.18(b) for flares requires compliance with 40 CFR 
60.18(c) through (f).
---------------------------------------------------------------------------

    We determined that certain work practice and operational 
requirements are also necessary for the practical enforceability of the 
VOC emission reduction requirements for flares or enclosed combustors. 
We are requiring that flares and enclosed combustors be operated within 
specific parameters to ensure the effective control of VOC 
emissions.\94\ Specifically, we are requiring that each owner or 
operator ensure that each enclosed combustor or flare is: (1) operated 
at all times that emissions are routed to it; (2) equipped and operated 
with a liquid knockout system to collect any condensable vapors (to 
prevent liquids from going through the control device); (3) equipped 
and operated with a flashback flame arrestor; (4) equipped and operated 
with a continuous burning pilot flame, or an electronically controlled 
automatic ignition device; (5) equipped with a monitoring system for 
continuous recording of the parameters that indicate proper operation 
of each continuous burning pilot flame or electronically controlled 
automatic ignition device, such as a chart recorder, data logger or 
similar device, or connected to a Supervisory Control and Data 
Acquisition (SCADA) system, to monitor and document proper operation of 
the enclosed combustor or flare; (6) maintained in a leak-free 
condition; and (7) operated with no visible smoke emissions. These work 
practice and operational requirements are comparable to requirements of 
the Utah Oil and Gas Rules with respect to operation of the control 
devices with no visible emissions.
---------------------------------------------------------------------------

    \94\ The necessity of such a requirement was discussed in detail 
in the preamble and Technical Support Documents to the proposed and 
final NSPS OOOO. These documents can be found in the docket for the 
NSPS OOOO rulemaking (Docket ID EPA-HQ-OAR-2010-0505), available at 
<a href="https://www.regulations.gov">https://www.regulations.gov</a>.
---------------------------------------------------------------------------

    To ensure legal and practical enforceability, other work practice 
and operational requirements in this U&O FIP are different or more 
prescriptive than the Utah Oil and Gas Rules in several areas. For 
example, the Utah Oil and Gas Rules require all VOC emissions control 
devices simply to be equipped and operated with an operational 
automatic ignition device. This U&O FIP, on the other hand, requires 
each enclosed combustor or flare to be equipped and operated with 
either a continuous burning pilot flame or an electronically controlled 
automatic ignition device. Further, under this FIP all enclosed 
combustors and flares must be equipped with a monitoring system for 
continuous measurement and recording of the parameters that indicate 
proper operation of each continuous burning pilot flame or 
electronically controlled automatic ignition device, such as a chart 
recorder, data logger or similar device, or connected to a SCADA system 
to monitor and document proper operation of the device. The work 
practice and operational requirements for VOC control devices in this 
U&O FIP were developed by considering the UDEQ requirements for VOC 
control devices, in combination with consulting the work practice and 
operational requirements for control devices in EPA standards, 
including NSPS OOOO and OOOOa and NESHAP HH. Regarding

[[Page 75354]]

the requirement to equip enclosed combustors and flares with either a 
continuous burning pilot flame or an electronically controlled 
automatic ignition device, provided there is a monitoring system to 
indicate proper operation of the device, the EPA has maintained the 
position as recently as 2016 that without a continuous ignition source, 
there may be periods of uncontrolled emissions, and continuous ignition 
sources are designed to combust the flammable portion of the gas 
stream, even if the gas stream has a low BTU content.\95\ Therefore, we 
have maintained that automatic ignition devices alone may not be 
reliable in the field to ensure that there is an ignition source at all 
times gas is flowing to a control device, and EPA standards, such as 
NSPS OOOO and OOOOa, have commonly required that enclosed combustors be 
equipped with continuous burning pilot flames and continuous parameter 
monitoring systems to ensure the presence of a flame at all times a gas 
stream is routed to the control device. Additionally, since the final 
FIP requires compliance with 40 CFR 60.18(c)(2) \96\ of the General 
Provisions for 40 CFR part 60 when using a flare, a continuous pilot 
flame is required, and we have determined that an equivalent 
requirement should be applicable to enclosed combustion control devices 
used for controlling emissions from storage vessels and other equipment 
at affected oil and natural gas sources.
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    \95\ The EPA's Response to Public Comments on the EPA's Oil and 
Natural Gas Sector: Emission Standards for New, Reconstructed, and 
Modified Sources. 40 CFR part 60, subpart OOOOa. May 2016. Chapter 
11--Compliance. Comment Excerpt Number: 17. Pages 188-191 (Docket ID 
EPA-HQ-OAR-2010-0505-7632), available at <a href="https://www.regulations.gov">https://www.regulations.gov</a>, accessed Mar. 14, 2022.
    \96\ Per 40 CFR 60.18(b).
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    We recognize that the UDEQ requires automatic ignition devices on 
all combustion devices. In the interest of establishing regulations on 
Indian country lands within the U&O Reservation that are comparable on 
balance with the UDEQ requirements, we are finalizing a hybrid approach 
that allows owners and operators required to control VOC emissions from 
the collection of all storage vessels, glycol dehydrators, and 
pneumatic pumps the option to use devices that comply with EPA 
standards (continuous burning pilot), or to use electronically 
controlled automatic ignition devices if the control device is also 
equipped with a system that can indicate to the owner and operator that 
the automatic ignition device is not operating properly while gas is 
being routed to the control device. We expect that these requirements 
for control devices will achieve a result comparable to the 
requirements for VOC control devices in the Utah Oil and Gas Rules and 
will ensure that the control device is operated properly to achieve the 
required control efficiency while providing consistency with EPA policy 
regarding flares and combustors.
    Section 49.4177 allows owners or operators of oil and natural gas 
sources, on receiving written approval, to use control devices other 
than an enclosed combustor or flare, provided they continuously achieve 
at least 95.0 percent VOC control efficiency. We expect that this 
provision will allow owners and operators to take advantage of 
technological advances in VOC emission control in the oil and natural 
gas industry, and that it will provide us with valuable information on 
new control technologies.
4. Fugitive Emissions Control
    For existing, new, and modified sources, we are finalizing LDAR 
requirements in 40 CFR 49.4178 (Fugitive emissions VOC emission control 
requirements) that each owner or operator of an oil and natural gas 
source conduct periodic inspections of the source to detect leaks from 
fugitive emissions components and repair them if either of the 
following is true: (1) the collection of fugitive emissions components 
is located at an oil and natural gas source that is required to control 
VOC emissions according to 40 CFR 49.4173 through 49.4177 of this FIP 
(i.e., the source-wide potential for VOC emissions from the collection 
of all storage vessels, glycol dehydrators, and pneumatic pumps is 
equal to or greater than 4 tpy, as determined according to 40 CFR 
49.4173(a)(1)); or (2) the collection of fugitive emissions components 
is located at a well site, as defined in 40 CFR 60.5430a, that at any 
time has total production greater than 15 boe per day based on a 
rolling 12-month average.\97\ Owners and operators of the collection of 
fugitive emissions components for which neither of the aforementioned 
conditions are true have the option to either (1) implement a program 
of periodic fugitive emissions inspections and repair, or (2) 
demonstrate that the total daily oil and natural gas production of the 
collection of all wells producing to the well site is at or below 1 boe 
per day, based on a 12-month rolling average, calculated according to 
specific procedures specified in 40 CFR 49.4178(e). Owners and 
operators of the collection of fugitive emissions components at an oil 
and natural gas source that is subject to the fugitive emissions 
monitoring requirements of NSPS OOOOa are exempt from this FIP's 
fugitive emissions monitoring requirements for those components.
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    \97\ As explained earlier, the Oil and Natural Gas Sector 
Climate Review Proposed Rule proposes a different approach for LDAR 
applicability based on the level of facility wide methane fugitive 
emissions. We are finalizing these requirements in the interest of 
taking action now to reduce VOC emissions on the Indian country 
lands within the U&O Reservation and recognizing the advantages of 
maximizing emissions reductions while providing a measure of 
consistency with the UDEQ and federal requirements that are in 
effect today. We may revisit this rulemaking in the future based on 
any final action we take under CAA section 111 with the Oil and 
Natural Gas Sector Climate Review rulemaking.
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    We are finalizing a definition of ``fugitive emissions component'' 
in 40 CFR 49.4171, consistent with the approach in NSPS OOOOa, that 
includes valves, connectors, open-ended lines, pressure relief devices, 
flanges, covers and closed-vent systems not subject to 40 CFR 49.4173 
through 49.4175, thief hatches or other openings on controlled storage 
vessels not subject to 40 CFR 49.4173, compressors, instruments and 
meters.\98\ Each owner or operator is required to develop and implement 
a Reservation-wide fugitive emissions monitoring plan for all of its 
affected oil and natural gas sources on Indian country lands within the 
U&O Reservation that must include the following elements, at a minimum:
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    \98\ Devices that vent as part of normal operations, such as 
natural gas-driven pneumatic controllers or natural gas-driven 
pumps, are not fugitive emissions components, insofar as the natural 
gas discharged from the device's vent is not considered a fugitive 
emission. Emissions originating from other than the vent, such as 
the thief hatch on a controlled storage vessel, would be considered 
fugitive emissions.
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    (1) Conduct an initial monitoring of fugitive emissions components 
at each affected source within 12 months of the effective date of the 
rule.
    (2) Conduct subsequent monitoring once every 6 months after the 
initial monitoring for fugitive emissions components at oil and natural 
gas sources.
    (3) Describe the fugitive emissions detection monitoring method to 
be used (limited to onsite optical gas imaging instruments, with a leak 
defined as any visible emissions using an optical gas imaging 
instrument, EPA Reference Method 21, with an instrument reading of 500 
parts per million volume (ppmv) VOC defined as a leak, or another 
method approved by the EPA other than optical gas imaging or EPA 
Reference Method 21).
    (4) Identification of manufacturer and model number of any leak 
detection equipment to be used.

[[Page 75355]]

    (5) Procedures and timeframes for identifying and repairing 
components from which leaks are detected, including a requirement to 
repair any identified leaks from components that are safe to repair and 
that do not require source shutdown within 30 days of discovering a 
leak, and identification of timeframes (which must be no later than the 
next required monitoring event after discovering the leak) to repair 
leaks that are designated as difficult-to-monitor or unsafe-to-monitor, 
or which require source shutdown. If the repair or replacement of a 
fugitive emissions component designated difficult-to-monitor or unsafe-
to-monitor is technically infeasible, would require a vent blowdown, a 
compressor station shutdown, a well shutdown or shut-in, or would be 
unsafe to repair \99\ during operation of the unit, the repair or 
replacement must be completed during the next scheduled compressor 
station shutdown, well shutdown, well shut-in, after a planned vent 
blowdown, or within 2 years, whichever is earlier.
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    \99\ ``Unsafe to repair'' is defined in the final rule as 
meaning that operator personnel would be exposed to an imminent or 
potential danger as a consequence of the attempt to repair the leak 
during normal operation of the source.
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    (6) Procedures for verifying effective repair of leaking 
components, no later than 30 days after repairing a leak.
    (7) Specific training and experience needed to perform inspections.
    (8) Description of procedures for calibration and maintenance of 
any fugitive emissions monitoring device to be used.
    (9) Standard monitoring protocols for each type of typical affected 
source (e.g., well site, tank battery, compressor station), including a 
general list of component types that will be inspected and what 
supporting data will be recorded (e.g., wind speed, detection method 
device-specific operational parameters, date, time, and duration of 
inspection).
    We are finalizing in 40 CFR 49.4179 an exemption for source owners/
operators from having to monitor and repair a fugitive emissions 
component under certain circumstances: (1) the contacting process 
stream only contains glycol, amine, methanol or produced water; or (2) 
the component to be inspected is buried, insulated in a manner that 
prevents access to the components by a monitor probe or optical gas 
imaging device, or obstructed in a manner that prevents access by a 
monitor probe or optical gas imaging device.
    The fugitive emissions LDAR requirements in this U&O FIP are 
designed to be consistent with those in NSPS OOOOa. In developing the 
final FIP LDAR requirements, we also reviewed the UDEQ requirements. 
For existing, new, and modified sources subject to the Utah Oil and Gas 
Rules, the LDAR requirements were designed to be procedurally 
consistent with NSPS OOOOa, though the applicability threshold is 
different. The UDEQ's site-specific approval orders, a general approval 
order (GAO) for crude oil and natural gas well sites and tank 
batteries,\100\ and the Utah Oil and Gas Rules all require 
implementation of an LDAR program at facilities that are required to 
control storage vessel, dehydrator, and/or pneumatic pump emissions. 
The Utah Oil and Gas Rules require semi-annual fugitive emissions 
monitoring and repair for any affected source. Existing oil and natural 
gas sources that were authorized under the UDEQ's site-specific 
approval orders are required to conduct fugitive emissions monitoring 
and repair at frequencies ranging from annual to quarterly. Existing 
oil and natural gas sources that are authorized under the UDEQ's GAO 
are subject to fugitive emissions monitoring at varying frequencies 
based on production levels and number of leaks detected.
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    \100\ The docket for this rulemaking (Docket ID No. EPA-R08-OAR-
2015-0709) contains an approval for coverage under the GAO for a 
Crude Oil and Natural Gas Well Site and/or Tank Battery (DAQE-
MN149250001-14).
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    The final FIP applicability threshold is consistent in part with 
the UDEQ's LDAR applicability threshold, though the final FIP also 
requires any additional sources where daily production exceeds 15 boe 
per day to conduct an LDAR inspection program, which is consistent in 
part with NSPS OOOOa. The LDAR inspection frequency requirements of 
this U&O FIP are the same as the Utah Oil and Gas Rules and NSPS OOOOa. 
For oil and natural gas sources that may have obtained coverage under 
the UDEQ's approval orders or the GAO, we concluded that the UDEQ's 
LDAR inspection frequency requirement is different than the LDAR 
inspection frequency requirements for oil and natural gas sources under 
this U&O FIP, which may require monitoring frequencies for only certain 
sources that are equivalent to this U&O FIP.
    We are finalizing a provision allowing for the use of alternative 
methods of leak detection, other than EPA Reference Method 21 or 
optical gas imaging instrument, to demonstrate compliance with the 
fugitive emissions monitoring requirements, provided the method is 
approved by the EPA. We are finalizing language specifying that to be 
approved by the EPA, a demonstration that the alternative method 
achieves emissions reductions that equal or exceed those that would 
result from the application of either Method 21 or optical gas imaging 
instruments must be made and any proposed approval by the EPA will be 
subject to public notice and comment.
5. VOC Emissions Control Requirements for All Sources
    Sections 49.4179 (VOC emission control requirements for tank truck 
loading), 49.4180 (VOC emission control requirements for pneumatic 
controllers) and 49.4181 (Other combustion devices) contain 
requirements for all existing, new, and modified existing oil and 
natural gas sources, regardless of source-wide or emission-unit-
specific emissions. Like the requirements in Utah's Oil and Gas Rules 
for oil and natural gas sources in areas of the Basin where the EPA has 
approved the UDEQ to implement the CAA, the U&O FIP's requirements are 
as follows: (1) tank trucks used for transporting crude oil, 
condensate, intermediate hydrocarbon liquids or produced water must be 
loaded using bottom filling or submerged fill pipes; (2) all existing 
pneumatic controllers must meet the pneumatic controller standards in 
NSPS OOOO at 40 CFR 60.5390(b)(2) and (c)(2) and NSPS OOOOa at 40 CFR 
60.5390a(b)(2) and (c)(2); and (3) all existing enclosed combustors, 
flares present and operating at sources on a voluntary basis--that is, 
those that are not required to control storage vessel, glycol 
dehydrator, and pneumatic pump emissions (per 40 CFR 49.4173 through 
49.4175)--must be equipped with an electronically controlled automatic 
ignition device.
    Our requirements for truck loading/unloading diverge in one respect 
from what the UDEQ is requiring in the Utah Oil and Gas Rule. The UDEQ 
requires that VOC emissions from tank truck loading and unloading at 
sources required to control storage vessel emissions be captured using 
a vapor capture line and routed to the onsite combustor or a separate 
combustor for VOC control. We are not finalizing an equivalent 
requirement at this time, as we did not receive sufficient cost and 
emissions reduction information during the public comment period for 
this rulemaking to sufficiently evaluate the cost effectiveness of such 
a requirement for the limited estimated emissions for truck loading/
unloading on Indian country lands within the U&O Reservation, based on 
the UBEI2017-

[[Page 75356]]

Update.\101\ The inventory identifies 595 tpy VOC from truck loading/
unloading. Assuming that the annualized cost to install a vapor capture 
line to an existing combustor is similar to that of routing pneumatic 
pump emissions to a combustor (approximately $1,627 per source) and 
assuming that there are approximately 2,165 sources that would be 
required to add a combustor, such a requirement to i

[…truncated; see source link]
Indexed from Federal Register on December 8, 2022.

This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.