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HomeMy WebLinkAbout20121041.tiff STATE OF COLORADO WELD COUNTY John W.Hickenlooper,Governor „ ,, ,I Christopher E.Urbina,MD MPH COMMISSIONERS ,oF coto� Executive Director and Chief Medical Officer F� Dedicated to protecting and improving the health and environment of the people of C.r(1ZdAPR 11 P 4: 3b .' 4300 Cherry Creek Dr.S. Laboratory Services Division «'Ia7s// Denver,Colorado 80246-1530 8100 Lowry Blvd.a RECEIVED Colorado Department Phone(303)692-2000 Denver,Colorado 80230-6928 Located in Glendale,Colorado (303)692-3090 of Public Health http://www.cdphe.state.co.us and Environment April 11, 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 Carrizo Oil & Gas, Inc. This public notice will be published in the Greeley Tribune on April 15, 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-B1 4300 Cherry Creek Drive South Denver, CO 80246-1530 Attention: Ellen Evans Regards, • ct- Ellen Evans Public Notice Coordinator Stationary Sources Program Air Pollution Control Division ?L3D`t l' r M L L}- 23"l2' �. _ c-12 2012-1041 NOTICE OF REQUEST FOR SYNTHETIC MINOR PERMIT FOR NATURAL GAS EXPLORATION & PRODUCTION FACILITY BY Carrizo Oil & Gas, Inc. CONTENTS 1 . PUBLIC NOTICE 2. PRELIMINARY ANALYSIS 3. AIR POLLUTANT EMISSION NOTICES 4. DRAFT PERMIT PREPARED BY: STEPHANIE CHAOUSY 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 /pY cod Christopher E. Urbina, MD,MPH /0 O o Executive Director and Chief Medical Officer r5 Dedicated to protecting and improving the health and environment of the people of Colorado . GN , 4300 Cherry Creek Dr.S. Laboratory Services Division •/876 r" 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 April 11, 2012, published April 15, 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: Carrizo Oil & Gas, Inc. proposes to construct and operate an oil and natural gas exploration and production facility known as Bob White 36-44-8-62. This source will be designed to process 79,003 barrels per day of crude oil and will be located in the SESE of Section 36 of Township 8 North, Range 62 West in Weld County. The source would be considered a major source of air pollutants subject to Non-Attainment New Source Review (NANSR) requirements if the operator did not install emissions controls and accept Federally enforceable emissions limits in the proposed permit. Since the operator will accept emissions limits less than 100 tons per year for each criteria pollutant, this source will be considered a synthetic minor source not subject to NANSR review. The source will have permitted emissions less than 100 tons per year for criteria pollutants and will not be considered a new major source subject to Title V Operating Permit requirements. As such, this permit is subject to public comment per Regulation 3, Part B, Section III.C.I.d. Copies of the draft permit 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: Stephanie Chaousy, P.E. 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. Construction Permit Application Preliminary Analysis Summary Section 1 —Applicant Information Company Name: Carrizo Oil & Gas, Inc. Permit Number: 11WE3552 Source Location: SESE Section 36, T8N, R62W, Weld County (non-attainment) Point 001: 48" Cimarron enclosed flare Equipment Description: Point 004: 4-400 BBL crude oil storage tanks AIRS ID: 123-9519 Date: January 4, 2012 Review Engineer: Stephanie Chaousy, P.E. Control Engineer: Carissa Money, P.E. Section 2 —Action Completed Grandfathered Modification APEN Required/Permit Exempt X CP1 Transfer of Ownership APEN Exempt/Permit Exempt * If tank is a true minor source at a true minor facility, it may be granted "Final Approval"without first being issued an Initial Approval permit Section 3 —Applicant Completeness Review Was the correct APEN submitted for this source type? X Yes No Is the APEN signed with an original signature? X Yes No Was the APEN filled out completely? X Yes No Did the applicant submit all required paperwork? X Yes No Did the applicant provide ample information to determine emission rates? Yes X No If you answered "no"to any of the above, I emailed Ashley Campsie/Dan Petri on 1/4/12: when did you mail an Information Request • I had a question regarding the control efficiency (95% letter to the source? versus 98%). Ashley Campsie wrote back saying there was a pre-application meeting with Carissa Money that agreed with 98%. Will verify with Carissa. On 1/5/12, Chris Laplante confirmed that 95%is what the Division accepts for enclosed flares. • I was confused with how the emissions were calculated for Point 004. Talked with Ashley on 1/4/12 and figured out I was missing some information for my calculations. She would email it to me. On what date was this application complete? November 10, 2011 Section 4-Source Description AIRS Point Equipment Description 001 One (1) 48" Cimarron enclosed flare (SN: 5530) used for controlling the produced water tanks (Point 003) and crude oil tanks (Point 004). 004 Four(4) 400 BBL crude oil storage tanks. Emissions from these tanks are controlled by an enclosed combustor. Is this a portable source? Yes X No Page 1 Is this location in a non-attainment area for any criteria x Yes No pollutant? If"yes", for what pollutant? PM10 CO X Ozone Is this location in an attainment maintenance area for Yes X No any criteria pollutant? If"yes", for what pollutant? (Note: These pollutants are subject to minor source PM10 CO Ozone RACT per Regulation 3, Part B, Section III.D.2) Is this source located in the 8-hour ozone non- attainment region? (Note: If"yes" the provisions of X Yes No Regulation 7, Sections XII and XVII.C may apply) Section 5—Emission Estimate Information AIRS Point Emission Factor Source 001 AP-42, Table 13.5-1 004 Operator requested site-specific emission factors. Please see Section 14 for calculation. Did the applicant provide actual process data for the emission inventory? X Yes No Basis for Potential to Emit (PTE) AIRS Point Process Consumption/Throughput/Production 001 0.83 MMBtu/hr* 8760 hr/yr= 7227 MMBtu/yr 004 214,259 BBL/yr Basis for Actual Emissions Reported During this APEN Filing (Reported to Inventory'; AIRS Point Process Consumption/Throughput/Production Data Year 001 7227 MMBtu/yr 2011 004 79,003 BBL/yr 2011 Basis for Permitted Emissions (Permit Limits) AIRS Point Process Consumption/Throughput/Production 001 7227 MMBtu/yr 004 214,259 BBL/yr Does this facility use control devices? X Yes No AIRS Point Process Control Device Description % Reduction Granted 004 Di Enclosed combustor 95 Section 6—Emission Summary (tons per year) Point NO, VOC CO Single HAP Total HAP PTE: 001 0.3 -- 1.3 --- -- 004 -- 780.0 --- 3.2(n-hexane) 3.4 Uncontrolled point 001 0.3 1.3 source emission rate: 004 -- 780.0 -- 3.2 (n-hexane) 3.4 Controlled point 001 0.3 -- 1.3 source emission rate: 004 -- 39.0 --- 0.16 (n-hexane) 0.17 Page 2 Section 7—Non-Criteria/ Hazardous Air Pollutants Uncontrolled Ar•the Controlled Emission Pollutant CAS # BIN Emission Rate emissions (lb/yr) reportable? Rate(Ib/yr) Point 004 Benzene 71432 A 471 Yes 23.5 n-Hexane 110543 C 6329.5 Yes 316.5 Note: Regulation 3, Part A, Section Il.B.3.b APEN emission reporting requirements for non-criteria air pollutants are based on potential emissions without credit for reductions achieved by control devices used by the operator. Section 8—Testing Requirements Will testing be required to show compliance with any emission rate or regulatory Yes X No standard? If"yes", complete the information listed below AIRS Point Process Pollutant Regulatory Basis Test Method Section 9—Source Classification Is this a new previously un-permitted source? X Yes No What is this facility classification? True X Synthetic Major Minor Minor Classification relates to what programs? X Title V PSD X NA NSR MACT Is this a modification to an existing permit? Yes X No If"yes"what kind of modification? Minor Synthetic Major Minor Section 10— Public Comment Does this permit require public comment per CAQCC Regulation 3? X Yes No If"yes",for which pollutants? Why? For Reg. 3, Part B, III.C.1.a (emissions increase > 25/50 tpy)? X Yes No For Reg. 3, Part B, III.C.1.c.ii (subject to MACT)? X Yes No For Reg. 3, Part B, III.C.1.d (synthetic minor emission limits)? X Yes No Section 11 — Modeling Is modeling required to demonstrate compliance with National Ambient Yes X No Air Quality Standards (NAAQS)? If"yes", for which pollutants?Why? AIRS Point Section 12—Regulatory Review Re•ulation 1 Particulate Smoke Carbon Monoxide and Sulfur Dioxide Section II.A.1 - Except as provided in paragraphs 2 through 6 below, no owner or operator of a source shall allow or cause the emission into the atmosphere of any air pollutant which is in excess of 20% opacity. This standard is based on 24 consecutive opacity readings taken at 15-second intervals for six minutes. The approved reference test method for visible emissions measurement is EPA Method 9 (40 CFR, Part 60, Appendix A(July, 001, 004 1992)) in all subsections of Section II. A and B of this regulation. Section II.A.5 - Smokeless Flare or Flares for the Combustion of Waste Gases No owner or operator of a smokeless flare or other flare for the combustion of waste gases shall allow or cause emissions into the atmosphere of any air pollutant which is in excess of 30% opacity for a period or periods aggregating more than six minutes in any sixty consecutive minutes. Page 3 Regulation 2— Odor Section I.A- No person, wherever located, shall cause or allow the emission of odorous air contaminants from any single source such as to result in detectable odors which are 001, 004 measured in excess of the following limits: For areas used predominantly for residential or commercial purposes it is a violation if odors are detected after the odorous air has been diluted with seven (7) or more volumes of odor free air. Regulation 3-APEN5, Construction Permits, Operating Permits, PSD Part A-APEN Requirements Criteria Pollutants: For criteria pollutants, Air Pollutant Emission Notices are required for: 001, 004 each individual emission point in a non-attainment area with uncontrolled actual emissions of one ton per year or more of any individual criteria pollutant (pollutants are not summed) for which the area is non-attainment. (Applicant is required to file an APEN since emissions exceed 1 ton per year VOC) Part B—Construction Permit Exemptions 001, 004 Applicant is required to obtain a permit since uncontrolled VOC emissions from this facility are greater than the 2.0 TPY threshold(Reg. 3, Part B, Section/1.D.2.a) Regulation 6- New Source Performance Standards 001 None NSPS Kb: for storage vessels greater than 19,800 gallons after 7/23/84. 004 Is this source greater than 19,800 gallons (471 bbl)? No Is this source subject to NSPS Kb? No WHY? Source contains 4-400 bbl, which is less than the threshold per requirement(400 < 441). Therefore, not subject to NSPS Kb. Regulation 7-Volatile Organic Compounds 001 None 004 None Regulation 8— Hazardous Air Pollutants 001 None 004 None Section 13 —Aerometric Information Retrieval System Coding Information Process Emission Pollutant/ Fugitive Control Point Process Description Factor CAS# (Y/N) Emission Factor Source (%) 0.068 N0x No AP-42,Table 13.5-1 NA 01 Flare Ib/MMBtu 001 0.37 CO No AP-42, Table 13.5-1 NA Ib/MMBtu SCC 31000205-Flares 7.28 lb/bbl V0C No Engineering Calculation 95 E&P Crude oil 0.0060 Benzene/ 01 Storage Tanks lb/bbl 71432 No Engineering Calculation 95 004 0.0801 n-Hexane No Engineering Calculation 95 lb/bbl /110543 SCC 40400312— Fixed Roof Tank, Crude oil,working+breathing+flashing losses Section 14—Miscellaneous Application Notes AIRS Point 001 Enclosed Flare A permit will be issued because the uncontrolled criteria pollutant emissions are greater than 1 TPY (APEN threshold) and TOTAL FACILITY uncontrolled VOC emissions are greater than 2 TPY (permit threshold). Flare is enclosed, and Operator using AP-42 for emission factors. Page 4 AIRS Point 004 Crude Oil Storage Tanks A permit will be issued because the uncontrolled VOC emissions are greater than 2 TPY (permit threshold). Operator used site-specific emission factors from an extended gas analysis from Mitchell Analytical Laboratory (Odessa, TX). Operator provided VOC information taken from a survey taken on 9/13/11, which demonstrated 140.58 TPY of VOC and 1.66 TPY of HAP. This was with 105.8 bbl/day collected at the facility (received this information from Ashley Campsie via phone call 1/4/12). The emission factors are: VOC = (140.58 TPY* 2000 lb/T)/365 days= 770.3014 lb/day/ (105.8 bbl/day) = 7.28 lb/bbl Benzene = (166.02 TPY* 2000 lb/T) *0.0006933334/365 days = 0.6307 lb/day/(105.8 bbl/day) =0.0060 lb/bbl n-hexane = (166.02 TPY *2000 lb/T) * 0.00931783547/365 days = 8.4764 lb/day/(105.8 bbl/day) = 0.0801 lb/bbl I will be requesting initial testing for this source because of the unusual way the Operator calculated the emission factor(and collected information from the source). • Page 5 N A. 0 O Or. t N Q N 0 3 E om :n D.E F E ,� CD G T w CD ❑ 0 e 0.W0.� 0z 00 m- l. . NNN C o c rl \ .4 C a F 4 N. b O1 d ` y a r� v > G F > m e Al w y .M./.M..M. a m .G - H „�' e c y a . .E •a w e y t c a c €i v o• _o. G o '..*is 00 w' w G o 0.. .wto) 'c °' >_ �j w ss r as o w 4 4 0. IV\ C7 0 '� ° •u « v 4 x q v. v w v dCC d ti c m W 3... N `o E 'O' aq v: .o `o ,° vi° a i A 3 api x C. 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C goo .. u E Z i p L 'O a Q ea O 1 b.1 �.d >0 00 .C C W C O F, O v 1 N U E o a u W o E >. .o c 3� C b y c vl W a Q a C A E Q .o. 2 ny II* C+ ❑ .c @I ? m got) z = O m e = E E U 'a a c o E N m •u ren s m = •° m`� 3 o O G a E o w i-7 'y a\ u x . C x a _ U W O v`�i v .J C 'W .h.. V ti E d A G V .1 y O .E w c o E� 'a .E y w e •^ u. I co. a I a a 0 I E c C a a O T w u o o .... o ct o O C p .,4 c r-. c W x x U a` o °_' Yz O o v,O d v `a" o E w o a H a• a O Z O U v F Q W u o m Q ® - y to up - cc I __ J CC I _ _ _ _ _ I Cr ct It , STATE OF COLORADO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT e I AIR POLLUTION CONTROL DIVISION ' 0i TELEPHONE: (303) 692-3150 CONSTRUCTION PERMIT • PERMIT NO: 11 WE35552 Issuance 1 DATE ISSUED: ISSUED TO: Carrizo Oil & Gas, Inc. THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Natural gas exploration and production facility, known as Bob White 36-44-8-62, located in the SESE of Section 36, Township 8 North, Range 62 West, in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description ID One (1) 48" Cimarron enclosed flare (SN: 5530) used for Combustor 001 controlling the produced water tanks (Point 003) and crude oil tanks (Point 004). Tanks 004 Four (4) 400 BBL crude oil storage tanks. Emissions from these tanks are controlled by a enclosed combustor. 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 issuance of this permit 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/down loadforms.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 AIRS ID: 123/9519/001, 004 Page 1 of 7 Condensate Tank Version 2009-1 Carizzo Oil & Gas, Inc. olor- Depar. en .1 •li 'Health and Environment Permit No. 11WE3552 •it Pollution Control Division Issuance 1 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.) 4. 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.) 5. 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 6. 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 NOx VOC CO Emission Type Combustor 001 --- --- 1.3 Point Tanks 004 --- 39.0 --- Point See "Notes to Permit Holder#4"for information on emission factors and methods used to calculate limits. Compliance with the synthetic minor status of this facility shall be determined by recording the facility's annual criteria pollutant emissions, from each emission unit, 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, This rolling twelve-month total shall apply to all emission units, requiring an APEN, at this facility. 7. Point 004: This emissions point shall be configured with an enclosed flare. The flare shall reduce the uncontrolled emissions of VOC to the emission levels listed in this section, above. Operating parameters of the control equipment are identified in the operation and maintenance plan. (Reference: Regulation No.3, Part B, Section III.E.) PROCESS LIMITATIONS AND RECORDS 8. This source shall be limited to the following maximum consumption, processing and/or operational rates as listed below. Monthly records of the actual crude oil throughput 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 AIRS Process Parameter Annual Limit Equipment ID Point AIRS ID: 123/9519/001, 004 Page 2 of 7 • Carizzo Oil & Gas, Inc. olor- Depa en f li Health and Environment Permit No. 11WE3552 4 it Pollution Control Division Issuance 1 • Combustor 001 Waste gas 7,227 MMBtu/yr Tanks 004 Crude oil throughput 214,259 BBL/yr 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 crude oil throughput and keep a compliance record on site or at a local field office with site responsibility, for Division review. STATE AND FEDERAL REGULATORY REQUIREMENTS 9. The permit number and AIRS ID number shall be marked on the subject equipment for ease of identification. (Reference: Regulation Number 3, Part B, III.E.) (State only enforceable) 10. Visible emissions shall not exceed twenty percent(20%) opacity during normal operation of the source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1, Section II.A.1. & 4.) 11. These sources are subject to the odor requirements of Regulation No. 2. (State only enforceable) OPERATING & MAINTENANCE REQUIREMENTS 12. Point 004: 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 13. No compliance requirements under this section. ADDITIONAL REQUIREMENTS 14. 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: 123/9519/001, 004 Page 3 of 7 Carizzo Oil & Gas, Inc. olor Depa en .f P'bli Health and Environment Permit No. 11WE3552 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. 15. Operating Permit (OP) requirements shall apply to this source at any such time that the facility wide potential to emit equals or exceeds the major source level. Once the facility wide potential to emit equal or exceeds the major source level a Title V operating permit • application shall be submitted in accordance with the requirements in Regulation No. 3, Part C. 16. Non-attainment New Source Review requirements shall apply to this source at any such time that this source becomes major solely by virtue of a relaxation in any permit condition. Any relaxation that increases the potential to emit above the applicable NSR threshold will require a full NSR review of the source as though construction had not yet commenced on the source. The source shall not exceed the NSR threshold until a NSR permit is granted. (Regulation No. 3 Part D, V.A.7) GENERAL TERMS AND CONDITIONS 17. 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. 18. 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. 19. 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. 20. 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. 21. 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 AIRS ID: 123/9519/001, 004 Page 4 of 7 • Carizzo Oil & Gas, Inc. .. olor- Depa en f li Health and Environment Permit No. 11WE3552 A it Pollution Control Division Issuance 1 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. 22. 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. 23. 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: Stephanie Chaousy, PE Permit Engineer Air Pollution Control Division Permit History Issuance Date Description Issuance 1 This Issuance Issued to Carrizo Oil & Gas Inc. Permit for: (4) crude oil tanks and (1) combustor. New synthetic minor facility. AIRS ID: 123/9519/001, 004 Page 5 of 7 Carizzo Oil & Gas, Inc. olor. Depa en f li Health and Environment Permit No. 11WE3552 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.cdphe.state.co.us/req ulations/airreqs/100102agcccommon provisions req.pdf. 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 (Ib/yr) reportable? Rate (Ib/yr) Benzene 71432 A 471 Yes 24 004 n-hexane 110543 C 6330 Yes 317 4) The emission levels contained in this permit are based on the following emission factors: Point 001: Emission Factors Emission Factors CAS # Pollutant Uncontrolled Controlled Source NOx 0.068 lb/MMBtu 0.068 lb/MMBtu AP-42, Table 13.5-1 CO 0.37 Ib/MMBtu 0.37 lb/MMBtu AP-42, Table 13.5-1 Point 004: Emission Factors Emission Factors CAS# Pollutant Uncontrolled Controlled Source Lb/bbl Lb/bbl VOC 7.28 0.364 Engineering Calculation 71432 Benzene 0.0060 0.0003 Engineering Calculation 110543 n-hexane 0.0801 0.004 Engineering Calculation Note: The controlled VOC and HAP emissions factors for point 004 are based on the flare control efficiency of 95%. 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 November 9,2016. A revised APEN shall be submitted no later than 30 days before the five-year term expires. AIRS ID: 123/9519/001, 004 Page 6 of 7 Carizzo Oil & Gas, Inc. olor. Depa en f li Health and Environment Permit No. 11WE3552 it Pollution Control Division Issuance 1 6) This facility is classified as follows: Applicable Status Requirement Operating Permit Synthetic Minor Source VOC NANSR Synthetic Minor Source VOC MACT HH Area Source Requirements: Not Applicable MACT 777Z 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://vvvvw.cdphe.state.co.us/ap/oilqaspermitting.html AIRS ID: 123/9519/001, 004 Page 7 of 7 Hello