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HomeMy WebLinkAbout20182328.tiffCOLORADO Department of Public Health El Environment Dedicated to protecting and improving the health and environment of the people of Colorado Weld County - Clerk to the Board 1150O St PO Box 758 Greeley, CO 80632 July 10, 2018 Dear Sir or Madam: RECEIVED JUL 16 2018 WELD COUNTY COMMISSIONERS On July 12, 2018, the Air Pollution Control Division will begin a 30 -day public notice period for Extraction Oil Et Gas, Inc. - Hester Production Facility. A copy of this public notice and the public comment packet are enclosed. Thank you for assisting the Division by posting a copy of this public comment packet in your office. Public copies of these documents are required by Colorado Air Quality Control Commission regulations. The packet must be available for public inspection for a period of thirty (30) days from the beginning of the public notice period. Please send any comment regarding this public notice to the address below. Colorado Dept. of Public Health Et Environment APCD-SS-B1 4300 Cherry Creek Drive South Denver, Colorado 80246-1530 Attention: Clara Gonzales Regards, Clara Gonzales Public Notice Coordinator Stationary Sources Program Air Pollution Control Division Enclosure 4300 Cherry Creek Drive S., Denver, CO 80246-1530 P 303-692-2000 www.colorado.gov/cdphe John W. Hickenlooper, Governor Larry Wolk, MD, MSPH, Executive Director and Chief Medical Officer pcJ b . G Rai 0�/3/Ig- cc PLCmm/Tp). HLC RAJ( ERR' H/ -rn/C K) a-,, 2018-2328 CDPHE Air Pollution Control Division Notice of a Proposed Project or Activity Warranting Public Comment Website Title: Extraction Oil & Gas, Inc. - Hester Production Facility - Weld County Notice Period Begins: July 12, 2018 Notice is hereby given that an application for a proposed project or activity has been submitted to the Colorado Air Pollution Control Division for the following source of air pollution: Applicant: Extraction Oil & Gas, Inc. Facility: Hester Production Facility Oil and gas exploration and production facility SWNW Sec 31 T7N R66W Weld County The proposed project or activity is as follows: Source is proposing to operate a new enclosed flare to receive high pressure separator gas. The Division has determined that this permitting action is subject to public comment per Colorado Regulation No. 3, Part B, Section III.C due to the following reason(s): the source is requesting a federally enforceable limit on the potential to emit in order to avoid other requirements The Division has made a preliminary determination of approval of the application. A copy of the application, the Division's analysis, and a draft of Construction Permit 18WE0199 have been filed with the Weld County Clerk's office. A copy of the draft permit and the Division's analysis are available on the Division's website at https://www.colorado.gov/pacific/cdphe/air-permit-public-notices The Division hereby solicits submission of public comment from any interested person concerning the ability of the proposed project or activity to comply with the applicable standards and regulations of the Commission. The Division wilt receive and consider written public comments for thirty calendar days after the date of this Notice. Any such comment must be submitted in writing to the following addressee: Carissa Money Colorado Department of Public Health and Environment 4300 Cherry Creek Drive South, APCD-SS-B1 Denver, Colorado 80246-1530 cdphe.commentsapcd@state.co.us °RAD Colorado Air Permitting Project PRELIMINARY ANALYSIS - PROJECT SUMMARY Project Details Review Engineer: Carissa Money Package #: 375261 Received Date: 2/23/2018 Review Start Date: 6/7/2018 Section 01 - Facility Information Company Name: Extraction Oil & Gas, Inc. County AIRS ID: 123 Plant AIRS ID: 9F46 Facility Name: Hester Production Facility Physical Address/Location: County: Type of Facility: Exploration & Production Well Pad What industry segment? Oil &'.Natural Gas Production & Processing Is this facility located in a NAAQS non -attainment area? Yes. If yes, for what pollutant? Carbon Monoxide (CO) SWNW quadrant of Section 31, Township 7N, Range 66W Weld County Section 02 - Emissions Units In Permit Application Particulate Matter (PM) ❑ Quadrant Section Township Range SWNW 31 7N 66 Qzone (NOx & VOC) AIRs Point # Emissions Source Type Equipment Name Emissions Control? Permit # Issuance # Self Cert Required? Action Engineering Remarks 013 Separator Venting HP Separator Venting Yes -. 18WE0199 1 ---'Yes Permit Initial. Issuance Section 03 - Description of Project Source is requesting to install a new flare so that gas from the high pressure separators can be vented and routed to the flare when pipeline is unavailable. Section 04 - Public Comment Requirements Is Public Comment Required? If yes, why? RepuestIng Synthetic Minor Section 05 - Ambient Air Impact Analysis Requirement. Was a quantitative modeling analysis required? No If yes, for what pollutants? If yes, attach a copy of Technical Services Unit modeling results summary. Section 06 - Facility -Wide Stationary Source Classification Is this stationary source a true minor? Is this stationary source a synthetic minor? . If yes, indicate programs and which pollutants: Prevention of Significant Deterioration (PSD) Title V Operating Permits (OP) - Non -Attainment New Source Review (NANSR) No Yes SO2 NOx CO VOC PM2.5 PM10 TSP HAPs Is this stationary source a major source? If yes, explain what programs and which pollutants herf SO2 Prevention of Significant Deterioration (PSD) T Title V Operating Permits (OP) ❑ ❑ No NOx CO VOC PM2.5 PM10 TSP HAPs 7 Colorado Air Permitting Project Non -Attainment New Source Review (NANSR) Separator Venting Emissions Inventory 'Facility AIRS ID: 123 County 9F46-].._. Plant 013 Point Section 02 - Equipment Description Details Detailed Emissions Unit Description: Ventingof gas from twelve high pre Enclosed flare Emission Control Device Description: Requested Overall VOC & HAP Control Efficiency %: Limited Process Parameter Gas meter i�¥dtEEfBl43nc Vmstnd e ' k6:? �gtt*t'€n ¥¥ed apd opera 98 Section 03 - Processing Rate Information for Emissions Estimates Primary Emissions - Separator Actual Throughput = MMscf per year Requested Permit Limit Throughput 69.0 MMscf per year Requested Monthly Throughput = MMscf per month Potential to Emit (PTE) Throughput = Process Control (Recycling) Equipped with a VRU: Is VRU process equipment: 69 MMscf per year Secondary Emissions - Combustion Device(s) for Air Pollution Control Separator Gas Heating Value: Volume of waste gas emitted per BBL of liquids throughput: Section 04 - Emissions Factors & Methodologies Description Source is requesting to vent high pressure separator gusto an enclosed flare. 5 MW 20.5 Weight Helium 0.00. CO2 3.01 N2 0:91 methane 61.69 ethane 17.84 propane 11.40 isobutane 0.00 n -butane 1 30. isopentane 0.77 n -pentane 0.98 cyclopentane 0.06 n -Hexane 0.24 cyclohexane -.1.03 Other hexanes / '0.29 heptanes :0.34 methylcyclohexane 0105 224-TMP 0.01 Benzene :.0.02 Toluene 0.05. Ethylbenzene .0.02 Xylenes 0.03. C8+ Heavies : 0.09 Total VOC Wt 100.00 15.65 Ib/Ib-mol gas sample is from 6/13/2017. Displacement Equation Ex=Q'MW'Xx/C Emission Factors Separator Venting Uncontrolled (lb/MMscf) (lb/MMscf) Pollutant Controlled (Gas Throughput) (Gas Throughput) Emission Factor Source VOC Benzene Toluene Ethylbenzene Xylene n -Hexane 224 TMP 8463.4169 11.900 25.963 8.6544 16.227 130.90 3.2454 169.2683 0.7380 0.5193 0.1731 0.3245 2.6179 0.0649 Emission Factor Source Pollutant Primary Control Device Uncontrolled Uncontrolled (Ib/MMRtu) lb/MMscf (Waste Heat Combusted) (Gas Throughput) PM10 PM2.5 SOx NOx CO 0.0075 0.0075.:..:. 0.0006 0.0660 0.0500 8.933 8.933 0.705 79.129 59.947 3 of 6 K:\PA\2018\18 W E0193.CP1.xlsm Separator Venting Emissions Inventory Section 05 - Emissions Inventory Criteria Pollutants Potential to Emit Uncontrolled (tons/year) Actual Emissions Uncontrolled Controlled (tons/year) (tons/year) Requested Permit Limits Uncontrolled Controlled (tons/year) (tons/year) Requested Monthly Limits Controlled (Ibs/month) PM10 PM2.5 SOx NOx VOC CO 0.31 0.00 0.00 0.31 0.3 52 0.31 0.00 0.00 0,31 0.3 52 0.02 0.00 0.00 0.02 0.0 4 2.73 0.00 0.00 2.73 2.7 364 291.99 0.00 0.00 291.99 5.8 992 2.07 0.00 0.00 2.07 2.1 351 Hazardous Air Pollutants Potential to Emit Uncontrolled (lbs/year) Actual Emissions Uncontrolled Controlled (lbs/year) (lbs/year) Requested Permit Limits Uncontrolled Controlled (lbs/year) (lbs/year) Benzene Toluene Ethylbenzene Xylene n -Hexane 224TMP 321 0 0 021 16 1791 0 1 1791 36 597 0 0 597 12 1120 0 0 1120 ) 22 9032 0 0 9002 101 224 0 0 224 4 Section 06 - Regulatory Summary Analysis Regulation 3, Parts A, B Regulation 7, Section XVII.B, G Regulation 7, Section XVII.B.2.e (See regulatory applicability worksheet for detailed analysis) Section 07 - Initial and Periodic Sampling and Testing Requirements Using Gas Throughput to Monitor Compliance Source requires a permit Source is subject to Regulation 7, Section XVII.B.2, G The control device for this separator is not subject to Regulation 7, Section XVII.B.2.e Does the company use site specific emission factors based on a gas sample to estimate emissions? This sample should represent the gas outlet of the equipment covered under this AIRS ID, and should have been collected within one year of the application received date. However, if the facility has not been modified (e.g., no new wells brought on-line), then it maybe appropriate to use an older site -specific sample. If no, the permit will contain an "Initial Testing Requirement" to collect a site -specific gas sample from the equipment being permitted and conduct an emission factor analysis to demonstrate that the emission factors are less than or equal to the emissions factors established with this application. Are facility -wide permitted emissions of VOC greater than or equal to 90 tons per year? PtA If yes, the permit will contain: -An "Initial Testing Requirement" to collect a site -specific gas sample from the equipment being permitted and conduct an emission factor analysis to demonstrate that the emission factors are less than or equal to the emissions factors established with this application. -A "Periodic Testing Requirement" to collect a site -specific gas sample from the equipment being permitted and conduct an emission factor analysis to demonstrate that the emission factors are less than or equal to the emissions factors established with this application on an annual basis. Will the operator have a meter installed and operational upon startup of this point? Yes If no, the permit will contain a condition that requires the operator to calculate gas throughput using the liquid throughput until the meter is installed and operational (not to exceed 180 days). This condition will use the "Volume of waste gas emitted per BBL of liquids throughput" (scf/hbl) value in section 03. Does the company request a control device efficiency greater than 95% for a flare or combustion device? If yes, the permit will contain and initial compliance test condition to demonstrate the destruction efficiency of the combustion device based on inlet and outlet concentration sampling You have indicated above that the monitored process parameter is natural g ented. The following questions do require an an 4 of 6 K:\PA\2018\18WE0199.CP1.xlsm Separator Venting Emissions Inventory Section 08 - Technical Analysis Notes APEN does'. not specify construction date for well. Dates listed on. APENs for tanks. indicate April 2017 I'm assuming thewell was constructed after 8/1/2014. Source is using NOX.and .CO emission factors from the control device manufacturerNo supporting information was provided in the application. The unit will be tested to confirm combustion emissions as well as combustion efficiency. In the application and on the APEN, the source listed the control device as a thermal oxidizer.: if the device is a thermal oxidizer, then the combustion chamber temperature must be measured. Extraction has argued on previous applications the combustion chamber temperature can't be regulated and would require retrofitting tobe able to monitor temperature. The device doesn't appear to operate as a thermal oxidizer and operates as an enclosed flare. Thus, the permit language will use enclosed flare. Section 09 - Inventory SCC Coding and Emissions Factors AIRS Point it Process # SCC Code 013 01 3-10-001-60 Flares Uncontrolled Emissions Pollutant Factor Control % Units PM10 8.93 0 Ib/MMSCF PM2.5 3.93 0 Ib/MMSCF SOx 0.71 0 Ib/MMSCF NOx 79.13 0 Ib/MMSCF VOC 8463.42 98 Ib/MMSCF CO 39.95 0 lb/MMSCF Benzene 11.90 98 Ib/MMSCF Toluene 25.96 98 Ib/MMSCF Ethylbenzene 8.65 98 Ib/MMSCF Xylene 16.23 98 Ib/MMSCF n -Hexane 130.90 98 Ib/MM5CF 224 TMP 3.25 98 lb/MMSCF 5 of 6 K:\PA\2018\ 18WE0199.CP1.xlsm Separator Venting Regulatory Analysis Worksheet Colorado Regulation 3 Parts A and B - APEN and Permit Requirements ilevrce is ie the lliiu Attaiootent Area ATTAINMENT 1. Are uncontrolled actual emissions from any criteria pollutants from this individual source greater than 2 TPY (Regulation 3, Part A, Section II.D.1.a)? 2. Are total facility uncontrolled VOC emissions greater than 5 TPY, NOx greater than 10 TPY or CO emissions greater than 10 TPY (Regulation 3, Part B, Section II.D.3)? Not enough inlOrrititieui NON -ATTAINMENT 1. Are uncontrolled emissions from any criteria pollutants from this individual source greater than 1 TPY (Regulation 3, Part A, Section II.D.1.a)? 2. Are total facility uncontrolled VOC emissions from the greater than 2 TPY, NOx greater than 5 TPY or CO emissions greater than 5 TPY (Regulation 3, Part B, Section II.D.2)? Yes 'Sniir cv neettirec a peiiivt Colorado Regulation 7, Section XVII 1. Was the well newly constructed, hydraulically fractured, or recompleted on or after August 1, 2014? IScorne is eish(er:t ti ftegulatinii 2, Section Section XVII.B.2 —General Provisions for Air Pollution Control Equipment and Prevention of Emissions Section XVII.G - Emissions Control Alternative Emissions Control (Optional Section) a. Is this separator controlled by a back-up or alternate combustion device (i.e., not the primary control device) that is not enclosed? [rile riv,ri vi device for this. separator is itor subject to liegt,latian 7, Section XVil.ki. af.e Section XVII.B.2.e —Alternative emissions control equipment Disclaimer This document assists operators with determining applicability of certain requirements of the Clean Air Act, its implementing regulations, and Air Quality Control Commission regulations. This document is not a rule or regulation, and the analysis it contains may not apply to a particular situation based upon the individual facts and circumstances. This document does not change or substitute for any law, regulation, or any other legally binding requirement and is not legally enforceable. In the event of any conflict between the language of this document and the language of the Clean Air Act„ its implementing regulations, and Air Quality Control Commission regulations, the language of the statute or regulation will control. The use of non -mandatory language such as "recommend," "may," "should," and "can," is intended to describe APCD interpretations and recommendations. Mandatory terminology such as "must" and "required" are intended to describe controlling requirements under the terms of the Clean Air Act and Air Quality Control Commission regulations, but this document does not establish legally binding requirements in and of itself. Yes Source Req Source Req IThe control Permit number: Date issued: Issued to: COL RA Air Pollution Control Division Department of 'Public HeaLth EP Environment DRAFT CONSTRUCTION PERMIT 18WE0199 Facility Name: Plant AIRS ID: Physical Location: County: General Description: Issuance: 1 Extraction Oil &t Gas, Inc. Hester Production Facility 123/9F46 SWNW SEC 31 T7N R66W Weld County Well Production Facility Equipment or activity subject to this permit: Facility Equipment ID AIRS Point Equipment Description Emissions Control Description HP Separator Venting 013 Venting of gas from twelve high pressure (HP) separators Enclosed 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 this specific 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 Air Pollution Control Division (the Division) no later than fifteen days of the latter of commencement of operation or issuance of this permit, by submitting a Notice of Startup form to the Division for the equipment covered by this permit. The Notice of Startup form may be downloaded online at www.colorado.gov/pacific/cdphe/other-air-permitting- notices. Failure to notify the Division of startup of the permitted source is a violation of Air Quality Control Commission (AQCC) Regulation Number 3, Part B, Section III.G.1. and can result in the revocation of the permit. 2. Within one hundred and eighty days (180) of the latter of commencement of operation or issuance of this permit, compliance with the conditions contained in this permit shall be demonstrated to the Division. It is the owner or operator's responsibility to self -certify compliance with the conditions. Failure to demonstrate compliance within 180 days may result in revocation of the permit. A self certification form and guidance on how to self -certify compliance as required by COLORADO Air Pollution Control Division Page 1 of 8 DRAFT this permit may be obtained online at www.colorado.Rov/pacific/cdphe/air-permit-self- certification. (Regulation Number 3, Part B, Section III.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 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. (Regulation Number 3, Part B, Section 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. (Regulation Number 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. (Regulation Number 3, Part B, Section II.A.4.) Annual Limits: Facility Equipment ID AIRS Point Tons per Year Emission Type PM2.5 NO, VOC CO HP Separator Venting 013 --- 2.7 5.8 2.1 Point Note: See "Notes to Permit Holder" for information on emission factors and methods used to calculate limits. Facility -wide emissions of each individual hazardous air pollutant shall not exceed 8.0 tons per year. Facility -wide emissions of total hazardous air pollutants shall not exceed 20.0 tons per year. The facility -wide emissions limitation for hazardous air pollutants shall apply to all permitted emission units at this facility. Compliance with the annual limits, for both criteria and hazardous air pollutants, 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 actual emissions each month and keep a compliance record on site or at a local field office with site responsibility for Division review. 7. The emission points in the table below shall be operated and maintained with the emissions control equipment as listed in order to reduce emissions to less than or equal to the limits established in this permit. (Regulation Number 3, Part B, Section III.E.) Facility Equipment ID AIRS Point Control Device Pollutants Controlled HP Separator Venting 013 Enclosed flare VOC and HAP COLORADO Aix Pollution Control Diviszost Page 2 of 8 DRAFT PROCESS LIMITATIONS AND RECORDS 8. 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 owner or operator and made available to the Division for inspection upon request. (Regulation Number 3, Part B, II.A.4.) Process Limits Facility Equipment ID AIRS Point Process Parameter Annual Limit HP Separator Venting 013 Natural Gas Venting 69.0 MMSCF Compliance with the annual 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 throughput each month and keep a compliance record on site or at a local field office with site responsibility, for Division review. 9. The owner or operator shall continuously monitor and record the volumetric flow rate of gas vented from all separator(s) using the flow meter. The owner or operator shall use the sum of monthly throughput records from all separators vented to the flare to demonstrate compliance with the process limits contained in this permit and to calculate emissions as described in this permit. STATE AND FEDERAL REGULATORY REQUIREMENTS 10. The permit number and ten digit AIRS ID number assigned by the Division (e.g. 123/4567/001) shall be marked on the subject equipment for ease of identification. (Regulation Number 3, Part B, Section III.E.) (State only enforceable) 11. This source is subject to the odor requirements of Regulation Number 2. (State only enforceable) 12. The combustion device covered by this permit is subject to Regulation Number 7, Section XVII.B.2. 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, as defined under Regulation Number 7, XVII.A.17; 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. This flare must be equipped with an operational auto -igniter according to the following schedule: • All combustion devices installed on or after May 1, 2014, must be equipped with an operational auto -igniter upon installation of the combustion device; • All combustion devices installed before May 1, 2014, must be equipped with an operational auto -igniter by or before May 1, 2016, or after the next combustion device planned shutdown, whichever comes first. 13. The separator covered by this permit is subject to Regulation 7, Section XVII.G. (State Only). On or after August 1, 2014, gas coming off a separator, produced during normal operation from any newly constructed, hydraulically fractured, or recompleted oil and gas well, must either be routed to a gas gathering line or controlled from the date of first production by air pollution control equipment that achieves an average hydrocarbon control efficiency of 95%. If a combustion device is used, it must have a design destruction efficiency of at least 98% for hydrocarbons. OPERATING Et MAINTENANCE REQUIREMENTS 14. Upon startup of these points, the owner or operator shall follow the most recent operating and maintenance (OEtM) 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 COLORADO Air Pollution Control. Division Page 3 of 8 DRAFT the OEtM plan are subject to Division approval prior to implementation. (Regulation Number 3, Part B, Section III.G.7.) COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 15. The owner or operator shall demonstrate compliance with opacity standards, using EPA Reference Method 22, 40 C.F.R. Part 60, Appendix A, to determine the presence or absence of visible emissions. "Visible Emissions" means observations of smoke for any period or periods of duration greater than or equal to one minute in any fifteen minute period during normal operation. (Regulation Number 7, Sections XVII.B.2. and XVII.A.17) 16. 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 specified in this permit and to demonstrate a minimum destruction efficiency of 98% for VOCs. The test shall determine the mass emission rates of volatile organic compounds at the inlet and outlet of the control device, which shall be used to determine the destruction efficiency during the test. The throughput of gas vented from the HP separators, supplemental fuel flow rate and combustion chamber temperature shall be monitored and recorded during the test. 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. (Regulation Number 3, Part B., Section III.G.3) • Volatile Organic Compounds using EPA approved methods • Oxides of Nitrogen using EPA approved methods • Carbon Monoxide using EPA approved methods. ADDITIONAL REQUIREMENTS 17. A revised Air Pollutant Emission Notice (APEN) shall be filed: (Regulation Number 3, Part A, II.C.) • Annually by April 30th whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 1OO 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 volatile organic compounds (VOC) and nitrogen oxides sources (NOr) in ozone nonattainment areas emitting less than 1OO tons of VOC or NO,, per year, a change in annual actual emissions of one (1) ton per year or more or five percent, whichever is greater, above the level reported on the last APEN; or For sources emitting 1OO tons per year or more, a change in actual emissions of five percent or 50 tons per year or more, whichever is less, above the level reported on the last APEN submitted; 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. • Whenever there is a change in the owner or operator of any facility, process, or activity; or COLORADO Air Pollution Control Division Page 4 of 8 DRAFT • Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or • Whenever a permit limitation must be modified; or • No later than 30 days before the existing APEN expires. 18. Federal regulatory program requirements (i.e. PSD, NANSR) 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 Federal program threshold will require a full review of the source as though construction had not yet commenced on the source. The source shall not exceed the Federal program threshold until a permit is granted. (Regulation Number 3, Parts C and D). 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 Number 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 Number 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 alt 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 owner or operator 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 owner or operator or owner or operator's agents. It is valid only for the equipment and operations or activity specifically identified on the permit. 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 owner or operator, or the Division revokes a permit, the 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 COLORADO Air Pollution Control Divisic,, Page 5 of 8 DRAFT enforcement actions under Sections 25-7-115 (enforcement), -121 (injunctions), -122 (civil penalties), -122.1 (criminal penalties), C.R.S. By: Carissa Money Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Issued to Extraction Oil a Gas, Inc for venting of gas from twelve high pressure separators (AIRS ID 013) COLORADO Air Pollution Control Divisor, Page 6 of 8 DRAFT Notes to Permit Holder at the time of this permit issuance: 1) The permit holder is required to pay fees for the processing time for this permit. An invoice for these fees will be issued after the permit is issued. The permit holder shall pay the invoice within 30 days of receipt of the invoice. Failure to pay the invoice will result in revocation of this permit. (Regulation Number 3, Part A, Section VI.B.) 2) 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 owner or operator 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 complete application form must be submitted with a request for a permit revision. 3) This source is subject to the Common Provisions Regulation Part II, Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The owner or operator 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: https://www.colorado.gov/pacific/cdphe/aqcc-regs 4) 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. Facility Equipment ID AIRS Point Pollutant CAS # Uncontrolled Emissions (lb/yr) Controlled Emissions (lb/yr) HP Separator Venting 013 Benzene 71432 821 16 Toluene 108883 1,791 36 Ethylbenzene 100414 600 12 Xylenes 1330207 1,120 22 n -Hexane 110543 9,032 181 2,2,4- Trimethylpentane 540841 224 4 Note: All non -criteria reportable pollutants in the table above with uncontrolled emission rates above 250 pounds per year (lb/yr) are reportable and may result in annual emission fees based on the most recent Air Pollution Emission Notice. 5) The emission levels contained in this permit are based on the following emission factors: Point 013: CAS # Pollutant Weight Percent of Gas (%) Uncontrolled Emission Factors (lb/MMSCF) Controlled Emission Factors (lb/MMSCF) Source N0x --- 79.129 79.129 Manufacturer CO --- 59.947 59.947 Manufacturer V0C 15.65 8,463.4 169.27 Extended gas analysis 71432 Benzene 0.02 11.900 0.2380 Extended gas analysis COLORADO Aix Pollution Control Division Page 7 of 8 DRAFT 108883 Toluene 0.05 25.963 0.5193 Extended gas analysis 100414 Ethylbenzene 0.02 8.6544 0.1731 Extended gas analysis 1330207 Xylene 0.03 16.227 0.3245 Extended gas analysis 110543 n -Hexane 0.24 130.90 2.6179 Extended gas analysis 540841 2'2'4-0.01 Trimethylpentane 3.2454 0.0649 Extended gas analysis Note: The controlled emissions factors for this point are based on the flare control efficiency of 98%. 6) In accordance with C.R.S. 25-7-114.1, each Air Pollutant Emission Notice (APEN) associated with this permit is valid for a term of five years from the date it was received by the Division. A revised APEN shall be submitted no later than 30 days before the five-year term expires. Please refer to the most recent annual fee invoice to determine the APEN expiration date for each emissions point associated with this permit. For any questions regarding a specific expiration date call the Division at (303)-692- 3150. 7) This facility is classified as follows: Applicable Requirement Status Operating Permit Synthetic Minor Source of: NOx, CO, VOC, HAPs NANSR Synthetic Minor Source of: NOx, VOC 8) 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 COLORADO An' Pollution Control Division Page 8 of 8 Natural Gas Venting APEN - Form APCD-211 Air Pollutant Emission Notice (APEN) and Application for Construction Permit All sections of this APEN and application must be completed for both new and existing facilities, including APEN updates. An application with missing information may be determined incomplete and may be returned or result in longer application processing times. You may be charged an additional APEN fee if the APEN is filled out incorrectly or is missing information and requires re -submittal. This APEN is to be used for Natural Gas Venting only. Natural Gas Venting includes emissions from gas/liquid separators, well head casing, pneumatic pumps, blowdown events, among other events. If your emission unit does not fall into this category, there may be a more specific APEN for your source. In addition, the General APEN (Form APCD-200) is available if the specialty APEN options will not satisfy your reporting needs. A list of all available APEN forms can be found on the Air Pollution Control Division (APCD) website at: www.colorado.gov/cdphe/aped. This emission notice is valid for five (5) years. Submission of a revised APEN is required 30 days prior to expiration of the five-year term, or when a reportable change is made (significant emissions increase, increase production, new equipment, change in fuel type, etc). See Regulation No. 3, Part A, II.C. for revised APEN requirements. Permit Number: AIRS ID Number: 123 /9F461 I (3 Company equipment Identification: HP Separator Venting [Provide d 0 t.� :l n : tt now := s , vt i.s.. t.�.'�ilt, Equipmentt.i .,sr�. i.. .i`'.: r._n,.:'t; tFJ'. CP,.t�� .ti: ?..:?�.�,.: <A �.s₹t Section 1 - Administrative Information Company Name': Extraction Oil & Gas, Inc. Site Name: Hester Production Facility Site Location: SWNW SEC31 T7N R66W Mailing Address: (Include Zip Code) 370 17th Street, Suite 5300 Denver, Colorado E -Mail Address': ksteerman@extractionog.com Site Location County: Weld NAICS or SIC Code: 211111 Permit Contact: Kathy Steerman Phone Number: 720-974-7765 'Please use the full, legal company name registered with the Colorado Secretary of State. This is the company name that will appear on all documents issued by the APCD. Any changes will require additional paperwork. 2 Permits, exemption letters, and any processing invoices will be issued by APCD via e-mail to the address provided. Form A Natural Gas \'entin 375258 COLORADO Permit Number: AIRS ID Number: 123 /9F46/ Z Section 2- Requested Action El NEW permit OR newly -reported emission source - OR - ❑ MODIFICATION to existing permit (check each box below that applies) ❑ Change fuel or equipment ❑ Change company name ❑ Add point to existing permit ❑ Change permit limit ❑ Transfer of ownership' ❑ Other (describe below) - OR - APEN submittal for update only (Please note blank APENs will not be accepted) - ADDITIONAL PERMIT ACTIONS - El Limit Hazardous Air Pollutants (HAPs) with a federally -enforceable limit on Potential To Emit (PTE) Additional Info a Notes: 3 For transfer of ownership, a completed Transfer of Ownership Certification Form (Form APCD-104) must be submitted. Section 3 - General Information General description of equipment and purpose: HP Separator Venting Emissions For existing sources, operation began on: For new or reconstructed sources, the projected start-up date is: / / /TBD/ E Check this box if operating hours are 8,760 hours per year; if fewer, fill out the fields below: Normal Hours of Source Operation: hours/day Will this equipment be operated in any NAAQS nonattainment area Is this equipment located at a stationary source that is considered a Major Source of (HAP) Emissions Form lit"CD-Li-, ...Naat€tCi Gas 'Venting Rev 031 days/week weeks/year ❑✓ Yes ❑ Yes ❑ No No OLORADO Permit Number: AIRS ID Number: 123 / 9F46 / ank urCies_ :APCD has .::read Section 4 - Process Equipment Information 0 Gas/Liquid Separator ❑ Well Head Casing ❑ Pneumatic Pump Make: Model: ❑ Compressor Rod Packing Make: Model: ❑ Blowdown Events # of Events/year: ❑ Other Description: Serial #: Capacity: Gal/min # of Pistons: Leak Rate: Scf/hr/pist Volume per event: MMscf/event If you are requesting uncontrolled VOC emissions greater than 100 tpy for a Gas/Liquid Separator you must use Natural Gas Venting as a process parameter. Are requested uncontrolled VOC emissions greater than 100 tpy? ❑✓ Yes Natural Gas Venting Process Parameters4: Liquid Throughput Process Parameters4: ❑ No Maximum Vent Rate: 7,908 SCF/hr Vent Gas HeatinR Value: 1195 BTU/SCF Requested: MMSCF/year Actual: 57.73 MMSCF/year (i.3,,11" I l i"II 09.0 -OR- csj.i. t cA Requested: Bbl/yr Actual: Bbl/yr 4 Requested values will become permit limitations. Requested limit(s) should consider future process growth Process Properties: Molecular Weight: 20.50 VOC (mole %) 6.52 VOC (Weight %) 15.65 Benzene (mole %) 0.006 Benzene (Weight %) 0.022 Toluene (mole %) 0.011 Toluene (Weight %) 0.048 Ethylbenzene (mole %) 0.003 Ethylbenzene (Weight %) 0.016 Xylene (mole %) 0.006 Xylene (Weight %) 0.03 n -Hexane (mole %) 0.058 n -Hexane (Weight %) 0.242 2,2,4-Trimethylpentane (mole %) 0.00 2,2,4-Trimethylpentane (Weight %) 006 Additional Required Information: ❑� Attach a representative gas analysis (including BTEX fx n -Hexane, temperature, and pressure) Attach a representative pressurized extended liquids analysis (including BTEX Et n -Hexane, temperature, and pressure) Form . al Gas V Rcv 0312017 3 OLORADO Permit Number: t{_.;; A=CE:, . s aise .. AIRS ID Number: 123 / 9F46i Section 5 - Stack Information Geographical Coordinates (Latitude/Longitude or UTM) 40.532450/-104.831694 Operator Stack ID No. "� !'. Discharge Height . Above Ground Level (Feet) Temp, ('F} Flow Rate {ACFM) Velocity (ft/sec) Questor TO —40 TBD TBD TBD Indicate the direction of the stack outlet: (check one) ✓❑ Upward ❑ Horizontal ❑ Downward ❑ Other (describe): Indicate the stack opening and size: (check one) ✓❑ Circular Interior stack diameter (inches): ❑ Other (describe): ❑ Upward with obstructing raincap TBD Section 6 - Control Device Information ❑✓ VRU: Pollutants Controlled: Size: Requested Control Efficiency VRU Downtime or Bypassed Make/Model: ❑ Combustion Device: Pollutants Controlled: VOC/HAPs Rating: TBD MMBtu/hr Type: Thermal Oxidizer Make/Model: Questor Requested Control Efficiency: Manufacturer Guaranteed Control Efficiency Minimum Temperature: TBD 98 >99 Waste Gas Heat Content 1,195 Btu/scf Constant Pilot Light: El Yes ❑ No Pilot burner Rating TBD MMBtu/hr ❑ Other: Pollutants Controlled: Description: Control Efficiency Requested 0 COLGRA6G APCD_2 s Natur"£al Gas Venting /WEN Ref s/z Permit Number: 1,3t s . PC.D afteady AIRS ID Number: 123 /9F46/ Section 7 - Criteria Pollutant Emissions Information Attach all emission calculations and emission factor documentation to this APEN form. Is any emission control equipment or practice used to reduce emissions? ✓❑ Yes ❑ No If yes, please describe the control equipment AND state the overall control efficiency (% reduction): Pollutant Control Equipment Description Overall Requested Control Efficiency (% reduction in emissions) PM SOX NO. VOC T-laermal-OMtzer- � n � ,ar_-t cle4;- 98% CO HAPs T-herrnal-exidizer e:., -,,,,j..4., -.<O._,( t .)- l‘ -4--C_ 98% Other: t- i ill o_.,)_-3/ /I From what year is the following reported actual annual emissions data? Projected Use the following table to report the criteria pollutant emissions from source: (Use the data reported in Sections 4 and 6 to calculate these emissions.) Pollutant Uncontrolled Emission Factor Emission Factor Units Emission Factor Source (AP -42, Mfg. etc) Actual Annual Emissions Requested Annual Permit Emission Limit(s)5 Uncontrolled (Tons/year) Controlled6 (Tons/year) Uncontrolled (Tons/year) Controlled (Tons/year) PM SOX NO. 0.066 lb/MMBtu Mfg 2.30 2.7,5 VOC 8,456.3 lb/MMscf Gas Analysis 244.09 4.88 292.91 -58.6-' CO 0.05 lb/MMBtu Mfg 1.74 2.08 Benzene 12.35 lb/MMscf Gas Analysis 0.36 0.01 0.43 0.01 Toluene 26.71 lb/MMscf Gas Analysis 0.77 0.02 0.93 0.02 Ethylbenzene 8.39 Ib/MMscf Gas Analysis 0.24 <0.01 0.29 0.01 Xylenes 16.79 lb/MMscf Gas Analysis 0.48 0.01 0.58 0.01 n -Hexane 131.74 Ib/MMscf Gas Analysis 3.80 0.08 4.56 0.09 2,2,4- Trimethylpentane Other: 5 Requested values will become permit limitations. Requested limit(s) should consider future process growth. 6Annual emission fees will be based on actual controlled emissions reported. If source has not yet started operating, leave blank. =.{PCD-7 l . -Natural Gas e=e' 03/ 5 COLOR 4410 Permit Number: AIRS ID Number: 123 / 9F46i Ia tt3 s APCD i :� .. _ _..-{3 , RS Section 8 - Applicant Certification I hereby certify that all information contained herein and information submitted with this application is complete, true and correct. kaOlu stee�wran 2/23/2018 Signature of Legally Authorized Person (not a vendor or consultant) Date Kathy Steerman Air Quality Coordinator Name (please print) Title Check the appropriate box to request a copy of the: ❑✓ Draft permit prior to issuance ❑✓ Draft permit prior to public notice (Checking any of these boxes may result in an increased fee and/or processing time) Send this form along with $152.90 to: Colorado Department of Public Health and Environment Air Pollution Control Division APCD-SS-B1 4300 Cherry Creek Drive South Denver, CO 80246-1530 Make check payable to: Colorado Department of Public Health and Environment Telephone: (303) 692-3150 APCD-211 -Natured Gas Venting 3LP3t'l . Rev %`312017 For more information or assistance call: Small Business Assistance Program (303) 692-3175 or (303) 692-3148 Or visit the APCD website at: https: //www.colorado.gov/cdphe/apcd COLORADO Hello