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Home My WebLink About20121688.tiff STATE OF COLORADO John W.Hickenlooper,Governor WELD COUNTY pF Christopher E. Urbina,MD, MPH COMMISSIONERS .s`;;:_ co=tck Executive Director and Chief Medical Officer /m Dedicated to protecting and improving the health and environment of the people of ColoraZUli JUL -S P I: fik 4300 Cherry Creek Dr.S. Laboratory Services Division Y 1876 Denver,Colorado 80246-1530 8100 Lowry Blvd. p Phone(303)692-2000 Denver,Colorado 80230-6928 fR E C E I V E�lorado Department Located in Glendale,Colorado (303)692-3090 of Public Health http://www.cdphe.state.co.us and Environment June 29, 2012 Mr. Steve Moreno Weld County Clerk 1402 N. 17th Ave. Greeley, CO 80631 Dear Mr. Moreno: The Air Pollution Control Division will publish a public notice for Kerr-McGee Gathering, LLC. This public notice will be published in the Greeley Tribune on July 5, 2012. Thank you for assisting the Division by making the enclosed package (includes public notice, preliminary analysis, Air Pollutant Emission Notice(s) and draft permit(s)) available for public review and comment. It must be available for public inspection for a period of thirty (30) days from the date the public notice is published. Please forward any comment regarding this public notice to the address below. Colorado Department of Public Health and Environment APCD-SS-B 1 4300 Cherry Creek Drive South Denver, CO 80246-1530 Attention: Ellen Evans Regards, jit{?_,cttf 1)'c;1'f: ctd Ellen Evans Public Notice Coordinator Stationary Sources Program Air Pollution Control Division -Pulp Rw+'Cw et : PiL, Pt - -i2 7-5 -/a 2012-1688 APPLICATION FOR ISSUANCE OF SYNTHETIC MINOR PERMIT MODIFICATIONS FOR CONDENSATE TANK STORAGE AND LOADOUT BY Kerr-McGee Gathering LLC CONTENTS 1. PUBLIC NOTICE 2. PRELIMINARY ANALYSIS 3. AIR POLLUTANT EMISSION NOTICES 4. DRAFT PERMITS PREPARED BY: Dennis M. Myers, P.E. COLORADO DEPARTMENT OF PUBLIC HEALTH & ENVIRONMENT 4300 CHERRY CREEK DRIVE SOUTH, APCD-SS-B1 DENVER CO 80246-1530 STATE OF COLORADO John W.Hickenlooper,Governor oeco�os Christopher E.Urbino,MD,MPH s�' Executive Director and Chief Medical Officer ,e Dedicated to protecting and improving the health and environment of the people of Colorado . ., 4300 Cherry Creek Dr.S. Laboratory Services Division .+/876 Denver,Colorado 80246-1530 8100 Lowry Blvd. — -- Phone(303)692-2000 Denver,Colorado 80230-6928 Colorado Department Located in Glendale,Colorado (303)692-3090 of Public Health http://www.cdphe.state.co.us and Environment Released to: The Greeley Tribune on June 29, 2012; published July 5, 2012 PUBLIC NOTICE OF A PROPOSED PROJECT OR ACTIVITY WARRANTING PUBLIC COMMENT The Colorado Air Pollution Control Division declares the following proposed construction activity warrants public comment. Therefore, the Air Pollution Control Division of the Colorado Department of Public Health and Environment hereby gives NOTICE, pursuant to Section 25-7-114.5(5), C.R.S. of the Colorado Air Quality Control Act that the Division received an application for an air pollution emission permit on the following proposed project and activity: Kerr-McGee Gathering LLC is proposing to modify permits 03WE0065 and 08WE0824 at their natural gas compression facility, known as the Hudson Compressor Station, located at 9501 WCR 47, Hudson, in Weld County, Colorado. The modification to these permits will increase condensate storage and loadout from 25,000 barrels per year to 135,000 barrels per year. For permitting purposes, the existing facility is a major source for for Operating Permit,Nonattainment Major New Source Review and Prevention of Significant Deterioration program applicability. The proposed modification is a potential major modification on an uncontrolled emissions basis, however with the benefit of control equipment, the change in permitted emissions will be less than major modification levels, and will also decrease from current permit levels. Public comment is required,to make the emissions limits and control requirements federally enforceable. Copies of the draft permits and preliminary analysis are available for review in the public comment package. The Division has determined that the proposed source will comply with all applicable regulations and standards of the Colorado Air Quality Control Commission and has made a preliminary determination of approval of the application. The Division hereby solicits and requests submission of public comment from any interested person concerning the aforesaid proposed project and activities to comply with the applicable standards and regulations of the Commission for a period of thirty (30) days from the date of this publication. Any such comment must be submitted in writing to the following addressee: Jacob Sebasta Colorado Department of Public Health and Environment 4300 Cherry Creek Drive South, APCD-SS-B 1 Denver, Colorado 80246-1530 Within thirty(30)days following the said thirty(30)-day period for public comment,the Division shall consider comments and, pursuant to Section 25-7-114.5(7)(a), either grant, deny, or grant with conditions,the emission permits. Said public comment is solicited to enable consideration of approval of and objections to the proposed construction of the subject project and activity by affected persons. A copy of the applications for the emission permits,the preliminary analysis of said applications, and accompanying data concerning the proposed project and activity are available for inspection at the office of the Clerk and Recorder of Weld County during regular business hours and at the office of the Air Pollution Control Division, Colorado Department of Public Health and Environment, 4300 Cherry Creek Drive South, Denver, Colorado. A copy of the draft permit, and the preliminary analysis are available at: http://www.cdphe.state.co.us/ap/airpublicnotices.html AIR POLLUTION CONTROL DIVISION - PRELIMINARY ANALYSIS DATE: June 29, 2012 APPLICANT: Kerr-McGee Gathering LLC PERMIT NUMBERS: 08WE0824, 03WE0065 REVIEW ENGINEER: Dennis M. Myers, P.E. CONTROL ENGINEER: Christopher Laplante. PROJECT DESCRIPTION Kerr-McGee Gathering LLC is proposing to modify permits 03WE0065 and 08WE0824 at their natural gas compression facility, known as the Hudson Compressor Station, located at 9501 WCR 47, Hudson, in Weld County, Colorado. The modification to these permits will increase condensate storage and loadout from 25,000 barrels per year to 135,000 barrels per year. For permitting purposes, the existing facility is a major source for the Operating Permit,Nonattainment Major New Source Review and Prevention of Significant Deterioration programs. The proposed modification is a potential major modification on an uncontrolled emissions basis, however with the benefit of control equipment, the change in permitted emissions will be less than major modification level, and will also decrease from current permit levels. Public comment is required, to make the emissions limits and control requirements federally enforceable. Copies of the draft permit and preliminary analysis are available for review in the public comment package. The Division has determined that the proposed modifications will comply with all applicable regulations and standards of the Colorado Air Quality Control Commission and has made a preliminary determination of approval of the application. Air pollutant emissions from the proposed modification are as follows: SUMMARY OF EMISSIONS (tons/year) CURRENT AIR PERMIT EMISSION PROPOSED PERMIT REMARKS POLLUTANT LIMITS EMISSION LIMITS VOC 40.6 12.2 Permitted emissions will decrease. SOURCE IMPACT The Division believes this source will not cause or contribute to a violation of national ambient air quality standards. SOURCE CLASSIFICATION This facility has been determined to be a Major Source for Operating Permit, Nonattainment Major New Source Review and Prevention of Significant Deterioration applicability. The proposed modifications are a synthetic minor modification, since the proposed change in emissions are less than the major modification levels for VOC of 40 tons per year. The proposed change is not significant based on an actual emissions to potential emissions test, since the worst case for this test is 12.2 tons per year, which is less than the 40 tons per year significance level. Page lof 1 N a) 0 A - y - o 0 `o m `.. — 'ti Nr J N -a C 3 3 E 'a E o o h 2 — o w ❑ c c E ,Z V . m ,o m F -' 8 c N .-- e. 0 iN 2 C 4 Y • N N C, ` :O u U I R > 'J Q L V .O V O G 0 . .-i 61 FU p 2 CL 2 ❑ ❑ , o n q m p O 44 v C W U _ c C O O O C O O N az sf E a W V E c o. ` V " o L � N O v ca c o a ^ C .- o 0 0 0 0 E Q . c o 'c E 7 11 `0 L0 . GO 0 E 2 `0 a °i c .E n ZZZZ Z Z r e m 0 a R7 `.2 ., _ 'E.. a N ca = L r S 5 a .0 = i., . M ..Nu . a c ,cp I CJ co M e y c o .E m E € E V T 'q v, c 5 L . m G a s a +' or H y i o. v d n -I2. 'I cc ea a ran r o . z L :o o 2 of <n n E • < -oh ,U 3 u Y ''S E = E E. 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I > �e e� p o o na u c °s v E o s 1 O 8 O 1 u 1 4- -. .?lacg e 1si Z Q 'yamw yyo o ? 'vi IL P>' g (_ a w o Z > U y o T ;-, °43 p a 0 z p X ❑ 0 't ® p' Cg E' W q CJ W cn 4 4 Vi DRAFT STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT Re AIR POLLUTION CONTROL DIVISION TELEPHONE: (303)692-3150 + •1876 CONSTRUCTION PERMIT PERMIT NO: 03WE0065 Issuance 1 DATE ISSUED: ISSUED TO: Kerr-McGee Gathering LLC THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Natural gas compression facility, known as the Hudson Compressor Station, located at 9501 WCR 47, Hudson, in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description ID Five (5) 200 BBL storage tanks manifolded together, used to T001 021 store condensate. Emissions from these tanks are controlled by an open flare. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S.(25-7-101 et seq),TO THOSE GENERAL TERMS AND CONDITIONS.INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. Within one hundred and eighty days(180) of the date of issuance of this permit, compliance with the conditions contained on this permit shall be demonstrated to the Division. It is the permittee's responsibility to self-certify compliance with the conditions. Failure to demonstrate compliance within 180 days may result in revocation of the permit. (Reference: Regulation No. 3, Part B, II.G.2). 2. This permit shall expire if the owner or operator of the source for which this permit was issued: (i)does not commence construction/modification or operation of this source within 18 months after either, the date of issuance of this construction permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this permit; (ii) discontinues construction for a period of eighteen months or more; (iii) does not complete construction within a reasonable time of the estimated completion date. The Division may grant extensions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) AIRS ID: 123/0048/021 Page 1 of 8 Condensate Tank Version 2009-1 Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 3. The operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III.E.) 4. The operator shall retain the permit final authorization letter issued by the Division, after completion of self-certification, with the most current construction permit. This construction permit alone does not provide final authority for the operation of this source. EMISSION LIMITATIONS AND RECORDS 5. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II.A.4) Annual Limits: Facility AIRS Tons per Year Equipment ID Point NO, VOC CO Emission Type T001 021 1.3 4.7 7.1 See "Notes to Permit Holder#4"for information on emission factors and methods used to calculate limits. Compliance with the annual limits shall be determined on a rolling (12) month total. By the end of each month a new twelve month total is calculated based on the previous twelve months' data. The permit holder shall calculate monthly emissions and keep a compliance record on site, or at a local field office with site responsibility for Division review. PROCESS LIMITATIONS AND RECORDS 6. This source shall be limited to the following maximum processing rates as listed below. Monthly records of the actual processing rates shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3, Part B, II.A.4) Process/Consumption Limits Facility Equipment AIRS Rnt Process Parameter Annual ID T001 021 Condensate throughput 135,000 BBUyr Compliance with the yearly throughput limits shall be determined on a rolling twelve (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months' data. The permit holder shall calculate monthly condensate throughput and keep a compliance record on site or at a local field office with site responsibility, for Division review. AIRS ID: 123/0048/021 Page 2 of 8 • Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 STATE AND FEDERAL REGULATORY REQUIREMENTS 7. The permit number shall be marked on the subject equipment for ease of identification. (Reference: Regulation Number 3, Part B, III.E.) (State only enforceable). 8. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) 9. The flare covered by this permit is subject to Regulation No. 7, Section XVII.B General Provisions (State only enforceable). If a flare or other combustion device is used to control emissions of volatile organic compounds to comply with Section XVII, it shall be enclosed, have no visible emissions during normal operations, and be designed so that an observer can, by means of visual observation from the outside of the enclosed flare or combustion device, or by other convenient means approved by the Division, determine whether it is operating properly. The operator shall comply with all applicable requirements of Section XVII. 10. The condensate storage tanks covered by this permit are subject to Regulation 7, Section XVII emission control requirements. These requirements include, but are not limited to: Section XVII.C. - Emission reduction from condensate storage tanks at oil and gas exploration and production operations, natural gas compressor stations, natural gas drip stations and natural gas processing plants. XVII.C.1. Beginning May 1, 2008, owners or operators of all atmospheric condensate storage tanks with uncontrolled actual emissions of volatile organic compounds equal to or greater than 20 tons per year based on a rolling twelve-month total shall operate air pollution control equipment that has an average control efficiency of at least 95% for VOCs on such tanks. XVII.C.3. Monitoring: The owner or operator of any condensate storage tank that is required to control volatile organic compound emissions pursuant to this section XVII.C. shall visually inspect or monitor the Air Pollution Control Equipment to ensure that it is operating at least as often as condensate is loaded out from the tank, unless a more frequent inspection or monitoring schedule is followed. In addition, if a flare or other combustion device is used,the owner or operator shall visually inspect the device for visible emissions at least as often as condensate 'is loaded out from the tank. XVII.C.4. Recordkeeping:The owner or operator of each condensate storage tank shall maintain the following records for a period of five years: XVII.C.4.a. Monthly condensate production from the tank. XVII.C.4.b For any condensate storage tank required to be controlled pursuant to this section XVII.C., the date, time and duration of any period where the air pollution control equipment is not operating. The duration of a period of non-operation shall be from the time that the air pollution control equipment was last observed to be operating until the time the equipment recommences operation. XVII.C.4.c. For tanks where a flare or other combustion device is being used, the date and time of any instances where visible emissions are observed from the device. AIRS ID: 123/0048/021 Page 3 of 8 Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 11. This source is subject to the recordkeeping, monitoring, reporting and emission control requirements of Regulation 7, Section XII. The operator shall comply with all applicable requirements of Section XII. OPERATING & MAINTENANCE REQUIREMENTS 12. Upon startup of these points, the applicant shall follow the operating and maintenance (O&M) plan and record keeping format approved by the Division, in order to demonstrate compliance on an ongoing basis with the requirements of this permit. Revisions to your O&M plan are subject to Division approval prior to implementation. (Reference: Regulation No. 3, Part B, Section III.G.7.) COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 13. The owner or operator shall demonstrate compliance with Condition 9, using EPA Method 22 to measure opacity from the flare. 14. A source initial compliance test shall be conducted to measure the emission rate(s)for the pollutants listed below in order to demonstrate compliance with the emissions limits contained in this permit. The test protocol must be in accordance with the requirements of the Air Pollution Control Division Compliance Test Manual and shall be submitted to the Division for review and approval at least thirty(30)days prior to testing. No compliance test shall be conducted without prior approval from the Division.Any compliance test conducted to show compliance with a monthly or annual emission limitation shall have the results projected up to the monthly or annual averaging time by multiplying the test results by the allowable number of operating hours for that averaging time (Reference: Regulation No. 3, Part B., Section III.G.3) Volatile Organic Compounds using EPA approved methods. Benzene, Toluene, Ethylbenzene, Xylenes and n-Hexane using EPA approved methods. ADDITIONAL REQUIREMENTS 15. All previous versions of this permit are cancelled upon issuance of this permit. 16. A revised Air Pollutant Emission Notice(APEN)shall be filed: (Reference: Regulation No. 3, Part A, II.C) a. Annually whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 100 tons per year, a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN; or For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5) tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. AIRS ID: 123/0048/021 Page 4 of 8 • Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 b. Whenever there is a change in the owner or operator of any facility, process, or activity; or c. Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. 17. This source is subject to the provisions of Regulation Number 3, Part C, Operating Permits (Title V of the 1990 Federal Clean Air Act Amendments). The provisions of this construction permit must be incorporated into the operating permit. The application for the modification to the Operating Permit is due within one year of commencement of operation of the equipment or modification covered by this permit. 18. No later than May 30, 2013, Kerr McGee shall complete modifications to the operations of the condensate storage tank(s) covered under this point to either: a. Add a new condensate stabilizer upstream of new pressurized tank storage and route 100% of the overhead emissions from the stabilizer to the inlet of the plant or; b. Install a condensate gathering system and remove the atmospheric storage tanks from condensate storage service. Tanks will remain on-site with the open-tip flare to be used only for emergency situations." GENERAL TERMS AND CONDITIONS 19. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AQCC Regulation No. 3, Part B, Section II.B upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 20. If this permit specifically states that final authorization has been granted,then the remainder of this condition is not applicable. Otherwise, the issuance of this construction permit does not provide"final"authority for this activity or operation of this source. Final authorization of the permit must be secured from the APCD in writing in accordance with the provisions of 25-7-114.5(12)(a) C.R.S. and AQCC Regulation No. 3, Part B, Section III.G. Final authorization cannot be granted until the operation or activity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by the Division, it will provide written documentation of such final authorization. Details for obtaining final authorization to operate are located in the Requirements to Self-Certify for Final Authorization section of this permit. 21. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity, or construction, installation and operation of the source, in accordance with this information and with representations made by the applicant or applicants agents. It is valid only for the equipment and operations or activity specifically identified on the permit. AIRS ID: 123/0048/021 Page 5 of 8 Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 22. Unless specifically stated otherwise, the general and specific conditions contained in this permit have been determined by the APCD to be necessary to assure compliance with the provisions of Section 25-7-114.5(7)(a), C.R.S. 23. Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or appeal of a condition hereof shall constitute a rejection of the entire permit and upon such occurrence, this permit shall be deemed denied ab initio. This permit may be revoked at any time prior to self-certification and final authorization by the Air Pollution Control Division (APCD) on grounds set forth in the Colorado Air Quality Control Act and regulations of the Air Quality Control Commission (AQCC), including failure to meet any express term or condition of the permit. If the Division denies a permit, conditions imposed upon a permit are contested by the applicant, or the Division revokes a permit,the applicant or owner or operator of a source may request a hearing before the AQCC for review of the Division's action. 24. Section 25-7-114.7(2)(a), C.R.S. requires that all sources required to file an Air Pollution Emission Notice (APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit. Upon notification, annual fee billing will terminate. 25. Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and Control Act or the regulations of the AQCC may result in administrative, civil or criminal enforcement actions under Sections 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (criminal penalties), C.R.S. By: Dennis M. Myers, P.E. Permit Engineer Air Pollution Control Division Permit History Issuance Date Description Issuance 1 This Issuance Increase throughput from 25,000 to 135,000 bbl/yr. Addition of one 200-bbl storage tank to the existing tank battery. Replacement of flare with an enclosed flare. IA Mod. 1 Incorporated Increased throughput from 11,315 to 25,000 into T5 renewal. bbl/yr. Final Approval April 30, 2004 Added one 300-barrel tank. Increased NOx from 0.2 to 1.0 TPY, and CO from 0.3 to 2.0 TPY. Initial Approval July 24, 2003 AIRS ID: 123/0048/021 Page 6 of 8 Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 Notes to Permit Holder: 1) The production or raw material processing limits and emission limits contained in this permit are based on the consumption rates requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard. A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision. 2) This source is subject to the Common Provisions Regulation Part II, Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II.E.1 of the Common Provisions Regulation. See: http://www.cdohe.state.co.us/reo ulations/ai rregs/100102agcccom mon provisionsreq.odf. 3) The following emissions of non-criteria reportable air pollutants are estimated based upon the process limits as indicated in this permit. This information is listed to inform the operator of the Division's analysis of the specific compounds emitted if the source(s) operate at the permitted limitations. Uncontrolled Emission Are the Controlled AIRS Rate emissions Emission Point Pollutant CAS # BIN (lb/yr) reportable? Rate(Ib/yr) Benzene 71432 A 3366 YES 67 021 Toluene 108883 C 2345 YES 47 Hexane 110543 C 21,314 YES 426 4) The emission levels contained in this permit are based on the following emission factors: Point 021: Emission Factors Emission Factors Uncontrolled Controlled CAS # Pollutant lb/1000 gal lb/1000 gal Source Condensate Condensate Throughput Throughput VOC 82.790 1.656 Source 110543 n-Hexane 3.759 0.075 Source 71432 Benzene 0.594 0.012 Source 108883 Toluene 0.414 0.008 Source Note: The controlled emissions factors for point 021 are based on the flare control efficiency of 98%. CO emissions are based on AP-42, Table 13.5.1 emission factor of 0.37 lb/MMBtu, plus 10%. NOx emissions are based on AP-42, Table 13.5.1 emission factor of 0.067 lb/MMBtu, plus 10%. 5) In accordance with C.R.S. 25-7-114.1, the Air Pollutant Emission Notice (APEN) associated with this permit is valid for a term of five years. The five-year term for this APEN expires on January 25,2017. A revised APEN shall be submitted no later than 30 days before the five-year term expires. AIRS ID: 123/0048/021 Page 7 of 8 Kerr-McGee Gathering olor Depa en f li Health and Environment Permit No. 03WE0065 it Pollution Control Division Issuance 1 • 6) This facility is classified as follows: Applicable Status Requirement Major Source Operating Permit NOx,CO, VOC,HAP PSD Major Source NOx,CO NA NSR Major Source VOC MACT HH Major Source Requirements: Not Applicable Area Source Requirements: Applicable MACT ZZZZ Major Source Requirements: Applicable Area Source Requirements: Not Applicable 7) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfr.gpoaccess.gov/ Part 60: Standards of Performance for New Stationary Sources NSPS 60.1-End Subpart A—Subpart KKKK NSPS Part 60, Appendixes Appendix A—Appendix I Part 63: National Emission Standards for Hazardous Air Pollutants for Source Categories MACT 63.1-63.599 Subpart A— Subpart Z MACT 63.600-63.1199 Subpart AA—Subpart DDD MACT 63.1200-63.1439 Subpart EEE—Subpart PPP MACT 63.1440-63.6175 Subpart QQQ—Subpart YYYY MACT 63.6580-63.8830 Subpart ZZZZ— Subpart MMMMM MACT 63.8980-End Subpart NNNNN —Subpart XXXXXX 8) An Oil and Gas Industry Construction Permit Self-Certification Form is included with this permit packet. Please use this form to complete the self-certification requirements as specified in the permit conditions. Further guidance on self-certification can be found on our website at: http://www.cdphe.state.co.us/ap/oilgaspermitting.html AIRS ID: 123/0048/021 Page 8 of 8 DRAFT STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AIR POLLUTION CONTROL DIVISION TELEPHONE: (303) 692-3150 1876 CONSTRUCTION PERMIT PERMIT NO: 08WE0824 Issuance 1 DATE ISSUED: ISSUED TO: Kerr-McGee Gathering LLC THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Natural gas compression facility, known as the Hudson Compressor Station, located at 9501 WCR 47, Hudson, Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: AIRS Description Point 023 Truck loadout of condensate. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S. (25-7-101 et seq), TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. YOU MUST notify the APCD no later than fifteen days after commencement of the permitted operation or activity by submitting a Notice of Startup (NOS) form to the APCD. The Notice of Startup (NOS) form may be downloaded online at www.cdphe.state.co.us/ap/downloadforms.html. Failure to notify the APCD of startup of the permitted source is a violation of AQCC Regulation No. 3, Part B, Section III.G.1 and can result in the revocation of the permit. 2. Within one hundred and eighty days (180) after issuance of this permit, compliance with the conditions contained on this permit shall be demonstrated to the Division. It is the permittee's responsibility to self-certify compliance with the conditions. Failure to demonstrate compliance within 180 days may result in revocation of the permit. (Reference: Regulation No. 3, Part B, II.G.2). 3. This permit shall expire if the owner or operator of the source for which this permit was issued: (i) does not commence construction/modification or operation of this source within 18 months after either, the date of issuance of this construction permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this permit; (ii) discontinues construction for a period AIRS ID: 123/0048/023 Page 1 of 7 Condensate Loadout Version 2008-1 Kerr-McGee Gathering Col do p e o Public Health and Environment Permit No. 08WE0824 Air Pollution Control Division Issuance 1 of eighteen months or more; (iii) does not complete construction within a reasonable time of the estimated completion date. The Division may grant extensions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) 4. The operator shall retain the permit final authorization letter issued by the Division after completion of self-certification, with the most current construction permit. This construction permit alone does not provide final authority for the operation of this source. EMISSION LIMITATIONS AND RECORDS 5. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II.A.4) Monthly Limits: AIRS Pounds per Month Point VOC Emission Type 001 1,274 Point Monthly limits are based on a 31-day month. Annual Limits: AIRS Tons per Year Point VOC Emission Type 001 7.5 Point See "Notes to Permit Holder #4" for information on emission factors and methods used to calculate limits. Compliance with the annual limits shall be determined on a rolling (12) month total. By the end of each month a new twelve month total is calculated based on the previous twelve months' data. The permit holder shall calculate monthly emissions and keep a compliance record on site, or at a local field office with site responsibility for Division review. PROCESS LIMITATIONS AND RECORDS 6. This source shall be limited to the following maximum processing rates as listed below. Monthly records of the actual processing rate shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3, Part B, II.A.4) AIRS ID: 123/0048/023 Page 2 of 7 Kerr-McGee Gathering Col do p e o Public Health and Environment Permit No. 08WE0824 Air Pollution Control Division • Issuance 1 Process/Consumption Limits Monthly AIRS Point Process Parameter L.mital Limit (31 days) 023 Condensate Loading 135,000 11,466 BBL BBL During the first twelve (12) months of operation, compliance with both the monthly and yearly loading limitations shall be required. After the first twelve (12) months of operation, compliance with only the yearly limitation shall be required. Compliance with the yearly loading limits shall be determined on a rolling twelve (12) month total. By the end of each month a new twelve-month total is calculated based on the previous twelve months' data. The permit holder shall calculate the amount of condensate loaded each month and keep a compliance record on site or at a local field office with site responsibility, for Division review. STATE AND FEDERAL REGULATORY REQUIREMENTS • 7. This source is located in an ozone non-attainment or attainment-maintenance area and is subject to the Reasonably Available Control Technology (RACT) requirements of Regulation Number 3, Part B, III.D.2.a. The requirements of condition number 8 below were determined to be RACT for this source. 8. Condensate loading to truck tanks shall be conducted by submerged fill. (Reference: Regulation 3, Part B, III.E) 9. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) ADDITIONAL REQUIREMENTS 10. A revised Air Pollutant Emission Notice (APEN) shall be filed: (Reference: Regulation No. 3, Part A, II.C) a. Annually whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 100 tons per year, a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN; or For any non-criteria reportable pollutant: If the emissions increase by 50% or five (5) tons per year, whichever is less, above the level reported on the last APEN submitted to the Division. b. Whenever there is a change in the owner or operator of any facility, process, or activity; or AIRS ID: 123/0048/023 Page 3 of 7 Kerr-McGee Gathering Cal do p e o Public Health and Environment Permit No. 08WE0824 Air Pollution Control Division Issuance 1 c. Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. 11. This source is subject to the provisions of Regulation Number 3, Part C, Operating Permits (Title V of the 1990 Federal Clean Air Act Amendments). The provisions of this construction permit must be incorporated into the operating permit. The application for the modification to the Operating Permit is due within one year of commencement of operation of the equipment or modification covered by this permit. GENERAL TERMS AND CONDITIONS: 12. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AQCC Regulation No. 3, Part B, Section II.B upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 13. If this permit specifically states that final authorization has been granted, then the remainder of this condition is not applicable. Otherwise, the issuance of this construction permit does not provide "final" authority for this activity or operation of this source. Final authorization of the permit must be secured from the APCD in writing in accordance with the provisions of 25-7-114.5(12)(a) C.R.S. and AQCC Regulation No. 3, Part B, Section III.G. Final authorization cannot be granted until the operation or activity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by the Division, it will provide written documentation of such final authorization. Details for obtaining final authorization to operate are located in the Requirements to Self- Certify for Final Authorization section of this permit. 14. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity, or construction, installation and operation of the source, in accordance with this information and with representations made by the applicant or applicant's agents. It is valid only for the equipment and operations or activity specifically identified on the permit. 15. Unless specifically stated otherwise, the general and specific conditions contained in this permit have been determined by the APCD to be necessary to assure compliance with the provisions of Section 25-7-114.5(7)(a), C.R.S. 16. Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or appeal of a condition hereof shall constitute a rejection of the entire permit and upon such occurrence, this permit shall be deemed denied ab initio. This permit may be revoked at any time prior to self-certification and final authorization by the Air Pollution Control Division (APCD) on grounds set forth in the Colorado Air Quality Control Act and regulations of the Air Quality Control Commission (AQCC), including failure to meet any express term or condition of the permit. If the Division denies a permit, conditions imposed upon a permit are contested by the applicant, or the Division AIRS ID: 123/0048/023 Page 4 of 7 Kerr-McGee Gathering .f Coll do p e o Public Health and Environment Permit No, 08WE0824 • Air Pollution Control Division Issuance 1 • revokes a permit, the applicant or owner or operator of a source may request a hearing before the AQCC for review of the Division's action. 17. Section 25-7-114.7(2)(a), C.R.S. requires that all sources required to file an Air Pollution Emission Notice (APEN) must pay an annual fee to cover the costs of inspections and administration. If a source or activity is to be discontinued, the owner must notify the Division in writing requesting a cancellation of the permit. Upon notification, annual fee billing will terminate. 18. Violation of the terms of a permit or of the provisions of the Colorado Air Pollution Prevention and Control Act or the regulations of the AQCC may result in administrative, civil or criminal enforcement actions under Sections 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (criminal penalties), C.R.S. 19. All previous versions of this permit are cancelled upon issuance of this permit. By: Dennis M. Myers, P.E. Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Modification to increase condensate loadout from 26,000 bbl/yr. Initial Approval 11/4/2008 AIRS ID: 123/0048/023 Page 5 of 7 Kerr-McGee Gathering 1 Col t, do • p e o Public Health and Environment - Permit No. 08WE0824 Air Pollution Control Division Issuance 1 Notes to Permit Holder: 1) The production or raw material processing limits and emission limits contained in this permit are based on the consumption rates requested in the permit application. These limits may be revised upon request of the permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard. A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision. 2) This source is subject to the Common Provisions Regulation Part II, Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II.E.1. of the Common Provisions Regulation. See: http://www.cdphe,state.co.us/requlations/airreqs/100102aacccommonprovisionsreq.pdf. 3) The emission levels contained in this permit are based on the following emission factors: Emission Factors - Emission Factors — Uncontrolled Controlled CAS Pollutant lb/BBL loaded Source Lb/BBL loaded Source VOC 0.112 AP-42 AP-42 The uncontrolled VOC emission factor was calculated using AP-42, Chapter 5.2, Equation 1 (version 1/95) using the following values: S = 0.6 (Submerged loading: dedicated normal service) P (true vapor pressure) = 4.6 psia M (vapor molecular weight) =41 Ib/Ib-mol T (temperature of liquid loaded) = 531 °R • 4) In accordance with C.R.S. 25-7-114.1, the Air Pollutant Emission Notice (APEN) associated with this permit is valid for a term of five years. The five-year term for this APEN expires on September 29, 2015. A revised APEN shall be submitted no later than 30 days before the five-year term expires. 5) This facility is classified as follows: Applicable Status Requirement Operating Permit Major Source NOx, CO, VOC PSD Major Source NOx 6) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfr.gpoaccess.gov/ Part 60: Standards of Performance for New Stationary Sources NSPS 60.1-End Subpart A—Subpart KKKK AIRS ID: 123/0048/023 Page 6 of 7 • Kerr-McGee Gathering Col lxxdo • p. e ° o Public Health and Environment Permit No. 08WE0824 �; Air Pollution Control Division Issuance 1 NSPS Part 60, Appendixes Appendix A—Appendix I Part 63: National Emission Standards for Hazardous Air Pollutants for Source Categories MACT 63.1-63.599 Subpart A— Subpart Z MACT 63.600-63.1199 Subpart AA—Subpart DDD MACT 63.1200-63.1439 Subpart EEE— Subpart PPP MACT 63.1440-63.6175 Subpart QQQ—Subpart YYYY MACT 63.6580-63.8830 Subpart ZZZZ—Subpart MMMMM MACT 63.8980-End Subpart NNNNN —Subpart XXXXXX 7) An Oil and Gas Industry Construction Permit Self-Certification Form is included with this permit packet. Please use this form to complete the self-certification requirements as specified in the permit conditions. Further guidance on self-certification can be found on our website at: http://www cdphe.state co.us/ap/oiloaspermittino.html • AIRS ID: 123/0048/023 Page 7 of 7 Hello