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HomeMy WebLinkAbout20160635.tiff CDPHE I COLORADO Co I Health&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 RECEIVED Greeley, CO 80632 FEB 1 6 2016 February 11, 2016 WELD COUNTY COMMISSIONERS Dear Sir or Madam: On February 17, 2016, the Air Pollution Control Division will begin a 30-day public notice period for Bonanza Creek Energy Operating Company LLC - State Seventy Holes 21-6 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, 1 Clara Gonzales Public Notice Coordinator Stationary Sources Program Air Pollution Control Division Enclosure 4lii019-- CA/62,LAJ ,,/ 2016-0635 -d2"b2 0 I le 0-e = Pl-,�(O i 117 .. 4300 Cherry Creek Drive S., Denver, CO 80246-1530 P 303-692-2000 www.colorado.gov/cdphe c . John W. Hickenlooper, Governor Larry Wolk,MD,MSPH, Executive Director and Chief Medical Officer A CDPHE Air Pollution Control Division Notice of a Proposed Project or Activity Warranting Public Comment Website Title: Bonanza Creek Energy Operating Company LLC - State Seventy Holes 21-6 Production Facility - Weld County Notice Period Begins: February 17, 2016 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: Bonanza Creek Energy Operating Company LLC Facility: State Seventy Holes 21-6 Production Facility Oil and natural gas exploration Et production facility. Lot 2 of Section 6 of T4N R62W Weld County The proposed project or activity is as follows: The applicant proposes to construct and operate a wellhead production facility which produces both oil and natural gas. First production at the facility began in November 2014. 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): • permitted emissions exceed public notice threshold values in Regulation No. 3, Part B, Section III.C.1.a (25 tpy in a non-attainment area and/or 50 tpy in an attainment area) • 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 15WE0363 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 will 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: Andy Gruel Colorado Department of Public Health and Environment 4300 Cherry Creek Drive South, APCD-SS-B1 Denver, Colorado 80246-1530 cdphe.commentsapcd@state.co.us k44Mf �f��Q� {�Li i ■ DRAFT CDPHE Construction Permit CO Air Pollution Control Division Permit number: 15WE0363 Issuance: 1 Date issued: Issued to: Bonanza Creek Energy Operating Company LLC Facility Name: State Seventy Holes 21-6 Production Facility Plant AIRS ID: 123-9D32 Physical Location: Lot 2 of Section 6 of T4N R62W County: Weld County General Description: Well Production Facility Equipment or activity subject to this permit: Facility AIRS Emissions Control Equipment Equipment Description DescriptionI[) Paint One (1) Sandpiper G1 F pneumatic water transfer P-01 005 pump (serial number 2004239), rated at 600 Enclosed flare scf/hr. FL-02 006 Venting of sales gas from high pressure separator; Open flare open flare combusts gas when sales line is down. Vapor recovery tower (make: Heath Technologies, VRT-01 008 model: 48"); vapors are typically collected by Enclosed flare VRU; emissions are controlled by enclosed flare when VRU is down. Five (5) low-pressure separators; vapors are SEP-01 to SEP-05 009 typically collected by VRU; emissions are Enclosed flare controlled by enclosed flare when VRU is down. Vapor balance, and L-01 010 Condensate loadout to tank trucks. enclosed flare ( PWT-01 011 Two (2) produced water storage vessels (500 bbl Enclosed flare each), total 1,000-bbl. CNDTK-01 012 Ten (10)condensate storage vessels (500-bbl Enclosed flare each), total 5,000-bbl. Point 005: This pump may be replaced with another pump in accordance with the provisions of the Alternate Operating Scenario (AOS) section of permit. AIRS: 123-9D32 Page 1 of 15 wAims This II i r e sub all ru and regulations of the Colorado Air Quality Control Co on a e ad utio vention 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. 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 this permit may be obtained online at vwvw.colorado.gov/pacific/cdphe/air-permit-self-certification. (Regulation No. 3, Part B, Section III.G.2.) 2. 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 No. 3, Part B, Section III.E.) 3. 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 4. Emissions of air pollutants shall not exceed the following limitations. (Regulation No. 3, Part B, Section I I.A.4.) Annual Limits: Facility! AIRS" Tons Per Year Emission Equipment ID Point SOX VOC CO Type P-01 005 --- 2.6 1.4 Point FL-02 006 --- 4.9 2.6 Point VRT-01 008 --- 11.1 1.9 Point SEP-01 to SEP-05 009 3.6 7.8 1.9 Point L-01 . 010 --- 13.0 --- Point PWT-01 011 --- 2.0 --- Point CNDTK-01 012 --- 3.8 --- 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. ,� GDS ICOLORADO CO )Air Pollution Control Division Depahme^s nr wiz I ieatth b`nvirunm-cn. Page 2 of 15 Lon • •li c 't th nn l limit for both criteria and hazardous air pollutants, shall be •eter d ro lve ( onth 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. 5. 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 No. 3, Part B, Section III.E.) Facility AIRS Contrdl Device Pollutants Equipment ID Point Controlled P-01 005 Enclosed flare VOC FL-02 006 Open flare (emergency) VOC VRT-01 008 Enclosed flare VOC SEP-01 to SEP-05 009 Enclosed flare VOC L-01 010 Vapor balance and enclosed flare VOC PWT-01 011 Enclosed flare VOC CNDTK-01 012 Enclosed flare VOC 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 owner or operator and made available to the Division for inspection upon request. (Regulation Number 3, Part B, II.A.4.) Process Limits Facility AIRS Process Parameter... Annual Limit Equipment ID Point P-01 005 Gas vented 5.3 MMscf FL-02 006 Gas vented to emergency 10.0 MMscf flare VRT-01 008 Gas vented from vapor 3.0 MMscf recovery tower SEP-01 to SEP-05 009 Gas vented from separators 4.9 MMscf L-01 010 Liquids loaded 306,600 bbl PWT-01 011 Produced water throughput 302,220 bbl CNDTK-01 012 Condensate throughput 306,600 bbl 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 ....... _.. c,F1 Aix Pct111 COLORADOn Control Division CO 1 Deganrtr000t of Dal,-I4eatt,k&ariircmresent Page 3 of 15 a p). . o t ve on s' ta. Th ermit holder shall calculate throughput each month and eep e r site a local field office with site responsibility, for Division review. 7. Point 009: The owner or operator shall continuously monitor and record the volumetric flow rate of natural gas vented from the separators using a flow meter. The flow meter shall continuously measure flow rate and record total volumetric flow vented from each separator. The owner or operator shall use monthly throughput records to demonstrate compliance with the process limits specified in Condition 6 and to calculate emissions as described in this permit. STATE AND FEDERAL REGULATORY REQUIREMENTS 8. The permit number and ten-digit AIRS ID number assigned by the Division (i.e., 123-9D32-xxx) shall be marked on the subject equipment for ease of identification. (Reference: Regulation No. 3, Part B, III.E.) (State only enforceable) 9. Visible emissions shall not exceed twenty percent (20%) opacity during normal operation of these sources. 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. Emission control devices subject to Regulation No. 7, Sections XII.C.1.d or XVII.B.1.c shall have no visible emissions. (Reference: Regulation No. 1, Section II.A.1. l't 4.) 10. These sources are subject to the odor requirements of Regulation No. 2. (State only enforceable) 11. Fugitive component leaks at this well production facility are subject to the Leak Detection and Repair (LDAR) program requirements including monitoring, repair, re-monitoring, recordkeeping, and reporting as described in Regulation No. 7, Section XVII.F. In addition, the operator shall comply with the General Provisions contained in Regulation No. 7, Section XVII.B.1. 12. Points 005, 008, 009, 010, 011, 012: The enclosed flares covered by this permit are subject to Regulation No. 7, Section XII.C General Provisions (State only enforceable), and Regulation No. 7, Section XVII.B General Provisions (State only enforceable). If a combustion device is used to control emissions of volatile organic compounds to comply with Section XII.D and/or 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 combustion device or by other means approved by the Division, determine whether it is operating properly. The flares 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. Point 006: The open flare at this emissions point has been approved as an alternative emissions control device under Regulation Number 7, Section XVII.B.2.e. The open flare must 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 open flare, or by other convenient means approved by the Division, determine whether it is operating properly. This open 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; CQP4E 1COLORADO Co !Air Pollution Control Division • iu. of p,bt rare 6 Ent Page 4 of 15 Dll usti d ices in lied before May 1, 2014, must be equipped with an e l al 1 er by efore May 1, 2016, or after the next combustion device planned shutdown, whichever comes first. 14. Points 006, 008, and 009: The separator covered by this permit is subject to Regulation 7, Section XVII.G. (State Only). On or after August 1, 2014, gas corning 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. 15. Point 010: 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. Condensate loading to truck tanks shall be conducted by submerged fill. (Reference: Regulation 3, Part B, III.E) 16. Point 010: The owner or operator shall follow loading procedures that minimize the leakage of VOCs to the atmosphere including, but not limited to (Reference: Regulation 3, Part B, III.D.2): • Hoses, couplings, and valves shall be maintained to prevent dripping, leaking, or other liquid or vapor loss during loading and unloading. • All compartment hatches at the facility (including thief hatches) shall be closed and latched at all times when loading operations are not active, except for periods of maintenance, gauging, or safety of personnel and equipment. • The owner or operator shall inspect onsite loading equipment during loading operations to monitor compliance with above conditions. The inspections shall occur at least monthly. Each inspection shall be documented in a log available to the Division on request. 17. Point 010: All hydrocarbon liquid loading operations, regardless of size, shall be designed, operated and maintained so as to minimize leakage of volatile organic compounds to the atmosphere to the maximum extent practicable. 18. Point 012: This source is subject to Regulation Number 7, Section XII. The operator shall comply with all applicable requirements of Section XII and, specifically, shall: • Comply with the recordkeeping, monitoring, reporting and emission control requirements for condensate storage tanks; and • Ensure that the combustion device controlling emissions from this storage tank be enclosed, have no visible emissions, and be designed so that an observer can, by means of visual observation from the outside of the enclosed combustion device, or by other means approved by the Division, determine whether it is operating properly. (Regulation Number 7, Section XII.C.) (State only enforceable) 19. Points 011 and 012: The storage tanks at these emissions points covered by this permit are subject to the emission control requirements in Regulation Number 7, Section XVII.C.1. The owner or operator shall install and operate 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 except where the combustion device has been authorized by permit prior to May 1, 2014. The source shall follow the inspection requirements of Regulation Number 7, Section XVII.C.1.d. and maintain records of the inspections for a period of two years, made available to the Division upon request. This control requirement must be met within 90 days of the date that the storage tank commences operation. COPHE COLORADO co Ass Pollution Control Division Lexanren r tr ttn&;E.uo,r.n: Page 5 of 15 ■ 20. IP is 1 d 12: he torage nks covered by this permit are subject to the venting and ora n ssi geme tem ("STEM") requirements of Regulation Number 7, Section XVII.C.2. 21. Point 012: This permit fulfills the requirement to hold a valid permit reflecting the storage tank and associated control device per the Colorado Oil and Gas Conservation Commission rule 805b(2)(A)when applicable. OPERATING Et MAINTENANCE REQUIREMENTS 22. Points 006, 008, 009, 010, 011, 012: Upon startup of these points, the owner or operator shall follow the most recent 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 the OEtM plan are subject to Division approval prior to implementation. (Regulation Number 3, Part B, Section III.G.7.) 23. Point 010: The owner or operator of a loadout at which vapor balancing is used to control emissions shall: a. Install and operate the vapor collection and return equipment to collect vapors during loading of tank compartments of outbound transport trucks and return these vapors to the stationary source storage tanks. b. Include devices to prevent the release of vapor from vapor recovery hoses not in use. c. Use operating procedures to ensure that hydrocarbon liquid cannot be transferred unless the vapor collection equipment is in use. d. Operate all recovery and disposal equipment at a back pressure less than the pressure relief valve setting of transport vehicles. e. Inspect thief hatch seals annually for integrity and replace as necessary. Thief hatch covers shall be weighted and properly seated. f. Inspect pressure relief devices (PRD) annually for proper operation and replace as necessary. PRDs shall be set to release at a pressure that will ensure flashing, working and breathing losses are routed to the control device under normal operating conditions. g. Document annual inspections of thief hatch seals and PRD with an indication of status, a description of any problems found, and their resolution. COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 24. Points 005, 006, 008, 009, 011, 012: Within one hundred and eighty (180)days after issuance of this permit, 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 XII.C, XVII.B.2. and XVII.A.16) Periodic Testing Requirements 25. Point 009: On an annual basis, the operator shall complete a site-specific extended gas analysis of the natural gas produced from the separators that is routed to the flare, in order to verify the VOC content (weight fraction) of this emission stream used in the permit application. Results of testing shall be used to determine the site-specific emission factors using Division- approved methods. DPI !COLORADO Q 1 AirPollutionControlDivision 1 Department zr r&Errivarrnert Page 6 of 15 �. rr ALT • F O N CE RI 26. Point 005: This pump may be replaced with a like-kind pump in accordance with the requirements of Regulation 3, Part A, Section IV.A and without applying for a revision to this permit or obtaining a new construction permit. A like-kind replacement pump shall be the same make, model and capacity as authorized in this permit. 27. Point 005: The owner or operator shall maintain a log on-site or at a local field office to contemporaneously record the start and stop dates of any pump replacement, the manufacturer, model number, serial number and capacity of the replacement pump. 28. Point 005: All pump replacements installed and operated per the alternate operating scenarios authorized by this permit must comply with all terms and conditions of this construction permit. ADDITIONAL REQUIREMENTS 29. 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 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 volatile organic compounds (VOC) and nitrogen oxides sources (NOr) in ozone nonattainment areas emitting less than 100 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 100 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 • 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. 30. 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). 31. MACT Subpart HH - National Emission Standards for Hazardous Air Pollutants From Oil and Natural Gas Production Facilities major stationary source requirements shall apply to this stationary source at any such time that this stationary source becomes major solely by virtue of $ G;E.HE. I COLORADO CO Mr Pollution Control Division Departme^a yr Heatt,.v Erwronrrznt Page 7 of 15 t ti in ny er t limit on and shall be subject to all appropriate applicable I n b . (Reg n Number 8, Part E, Subpart HH) GENERAL TERMS AND CONDITIONS 32. 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. 33. 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 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. 34. 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. 35. 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. 36. 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. 37. 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. 38. 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: Andy Gruel, P.E. Permit Engineer , COLORADO CO f Mr Pollution Control Division De„ur, I•4eattn Enworrrent Page 8 of 15 Permit History Issuance Date Description Issuance 1 This Issuance Issued to Bonanza Creek Energy Operating Company LLC. Facility-wide construction permit for a synthetic minor facility. 4, PH COLORADO CO ''3. Air Pollution Control Division Dela:emelt %biz IlealtA13 E'rwirarszent. Page 9 of 15 • Dr No ' th this it 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. Uncontrolled Controlled AIRS Pollutant CAS# Emissions Emissions Point (lb/yr) (lb/yr) Benzene 71432 239 12 Toluene 108883 290 15 Ethylbenzene 100414 109 6 005 Xylenes 1130207 203 11 n-Hexane 110543 1746 88 2,2,4 540841 246 13 Trimethylpentane Benzene 71432 456 23 Toluene 108883 552 28 Ethylbenzene 100414 207 11 006 Xylenes 1130207 387 20 n-Hexane 110543 3322 167 2,2,4- 540841 467 24 Trimethylpentane Benzene 71432 4590 230 Toluene 108883 4504 226 008 Ethylbenzene 100414 643 33 Xylenes 1130207 1592 80 n-l-lexane 110543 31576 1579 4, GDPHE ICOLORADO CO ',f I Air Pollution Control Division w ; DesArivc-5 of z Heat h El Environment Page 10 of 15 ,Ar I-11°1'1P A VT . AIRS Uncontrolled Controlled Paint Pollutant CAS# Emissions Emissions (Ib/yr) (lb/yr) 008 2'2'4 540841 3152 158 Trimethylpentane 009 Benzene 71432 974 49 009 Toluene 108883 1140 57 009 Ethylbenzene 100414 265 14 009 Xylenes 1130207 477 24 009 n-Hexane 110543 6855 343 009 2'2'4 540841 960 48 Trimethylpentane 010 Benzene 71432 163 109 010 Toluene 108883 130 87 010 Ethylbenzene 100414 11 8 010 Xylenes 1130207 29 20 010 n-Hexane 110543 1717 1142 010 2'2'4 540841 132 88 Trimethylpentane 011 Benzene 71432 2116 106 011 n-Hexane 110543 6649 333 012 Benzene 71432 1288 65 012 Toluene 108883 1288 65 012 Ethylbenzene 100414 129 7 012 Xylenes 1130207 515 26 012 n-Hexane 110543 9014 451 012 2'2'4 540841 1031 52 Trimethylpentane 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 005: Uncontrolled Controlled Weigh Emission Emission CAS# Pollutant Factors Factors Source Fraction. of Gas ) lb/MMscf lb/MMscf • vented vented N0x (lb/MMBtu) --- --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- --- 0.37 AP-42 Ch. 13-5 V0C 30.96 19452 972.6 Emission factors 71432 Benzene 0.0725 45.55 2.28 are based on 108883 Toluene 0.0878 55.19 2.76 the ,h E 'COLORADO CO f 1 Air Pollution Control Division Dc-,,xrome°tt`f Pubic 1 "b gnvirontremt Page 11 of 15 ■T'.11:? A VT Uncontrolled Controlled Emission -Emission CAS# Pollutant Factors Factors Source Weight Fraction lb/MMscf lb/MMscf 0 f Gas ) vented vented 100414 Ethylbenzene 0.0330 20.73 1.04 displacement 1330207 Xylenes 0.06t5 38.66 1.933 equation (see 110543 n-Hexane 0.5288 332.21 16.61 below)and the site-specific gas 540841 2,2,4-Trimethylpentane 0.0744 46.72 2.34 analysis. The displacement equation can found in "EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 - Displacement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 006: Uncontrolled Controlled Weight _. Emission Fission CAS# Pollutant factors Factors Source Fraction ib/kMMscf lb/lNMscf of Gas O4 vented vented NOx (lb/MMBtu) --- --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- --- 0.37 AP-42 Ch. 13-5 VOC 30.96 19452 972.6 Emission factors 71432 Benzene 0.0725 45.55 2.28 are based on 108883 Toluene 0.0878 55.19 2.76 displacement 100414 Ethylbenzene 0.0330 20.73 1.04 equation (see 1330207 Xylene 0.0615 38.66 1.933 below) and the 110543 n-Hexane 0.5288 332.21 16.61 site-specific gas 540841 2,2,4-Trimethylpentane 0.0744 46.72 2.34 analysis. The displacement equation can found in "EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 Displacement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 008: Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Factors Factors Source Fraction : ihMMscf tb/MMscf of Gas(96) vented vented NOx (lb/MMBtu) --- - 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- --- 0.37 AP-42 Ch. 13-5 VOC 94.45 151261 7563.1 Emission factors 71432 Benzene 0.9838 1573.4 78.67 are based on 108883 Toluene 0.9656 1544.2 77.21 displacement 100414 Ethylbenzene 0.1379 220.6 11.03 equation (see below)and 1330207 Xylene 0.3413 545.8 27.29 ProMax 6.7681 modeling based 110543 n-Hexane 10824.8 541.24 on a site- 2,2,4_ specific gas 540841 0.6757 1080.7 54.035 analysis. Trimethylpentane ...._____.......___.... _.........__.._..._____....___- 4, '1P s ICOLORADO CO f 1 Air Pollution Control Division 3 . ,3tP�H thb QO r Page 12 of 15 11 .•l t qu n an fo in "EPA Emission Inventory Improvement Program -I• catio . of , - Di ement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 009: Uncontrolled Controlled Weight CAS Emission CAS# Pollutant Factors Emission Factors . Source Fraction of lb/MMlscf: lb/IrMMscf vented Gas (%) vented NOx --- --- 0.068 AP-42 Ch. 13-5 CO --- --- 0.37 AP-42 Ch. 13-5 SOx --- --- 0.698 AP-42 Ch. 13-5 VOC 65.925 63981 3199.1 Emission 71432 Benzene 0.2069 200.76 10.04 factors are 108883 Toluene 0.2423 235.12 11.76 based on 100414 Ethylbenzene 0.0563 54.63 2.73 displacement equation (see 1330207 Xylene 0.1013 98.33 4.92 below)and ProMax modeling 110543 n-Hexane 1.4562 1413.22 70.66 based on a site-specific 540841 2,2,4-Trimethylpentane 0.2040 198.02 9.90 gas analysis. The displacement equation can found in "EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 - Displacement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 010: Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Fraction of Factors Factors Source Gas t%) lb/I,otf0gallons lb/I,000gallons loaded loaded VOC 90.29 6.01 2.02 AP-42 Ch 5.2 Eqn 1 71432 Benzene 0.2104 0.0127 0.00425 AP-42 Ch 5.2 Eqn 1 108883 Toluene 0.1679 0.0101 0.00339 AP-42 Ch 5.2 Eqn 1 100414 Ethylbenzene 0.0145 0.0009 0.000302 AP-42 Ch 5.2 Eqn 1 1330207 Xylene 0.0370 0.0022 0.000737 AP-42 Ch 5.2 Eqn 1 110543 n-Hexane 2.2169 0.1333 0.04466 AP-42 Ch 5.2 Eqn 1 540841 2,2,4-Trimethytpentane 0.1707 0.0103 0.00345 AP-42 Ch 5.2 Eqn 1 Note: The controlled emissions factors for this point are based on an overall control efficiency of 66.5%, calculated as follows: collection efficiency of vapor balance is 70% (AP-42 Ch 5.2), and that collected amount is controlled at enclosed flare at 95%. 0.7*0.95=0.665. The uncontrolled VOC emission factor was calculated using AP-42, Chapter 5.2, Equation 1 (version 1/95) using the following values: L = 12.46*C*S*P*M/T C = 0.9029 (Weight%VOC, from site-specific sample taken 12/8/2014) S = 1.0 (Submerged loading: dedicated normal service) P (true vapor pressure) = 5.6 psia M (vapor molecular weight) =49.98 lb/lb-mol T (temperature of liquid loaded) = 523.67 °R A GDPME COLORADO Ir.co -. Air Pollution Control Division Deaartu.,i Est PUC.ic riea[Chs Eivroarman Page 13 of 15 un n lie no rit 'a repo ble air pollutant (NCRP) emission factors were calculated sing p of t CRP as measured from a site-specific sample taken 12/8/2014, multiplied by the total VOC loading loss ("L")calculated above. Point 011: Uncontrolled Controlled CAS# Pollutant Emission Factors Emission Factors Source lb/bbl lb/bbt VOC 0.262 0.0131 CDPHE Default 71432 Benzene 0.007 0.00035 CDPHE Default 110543 n-Hexane 0.022 0.0011 CDPHE Default Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 012: Uncontrolled Controlled.. CAS# Pollutant Emission Factors Emission Factors Source lb/bbl lbfbbl NOx (lb/MMBtu) --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- 0.37 AP-42 Ch. 13-5 VOC 0.4917 0.0246 71432 Benzene 0.00427 0.00021 Emission factors 108883 Toluene 0.00423 0.00021 are modeled using Promax and based on site-specific 100414 Ethylbenzene 0.000608 0.00003 1330207 Xylene 0.00151 0.00008 110543 n-Hexane 0.0295 0.00148 liquids analysis analysis obtained 540841 2'2'4 0.0033 0.00016 12/8/2014. Trimethylpentane Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. 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 Status Requirement Operating Permit Synthetic Minor Source of: VOC, NOx, HAP (n-hexane) NANSR Synthetic Minor Source of: VOC, NOx MACT HH Area Source 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 # COLORADO co l I Air Pollution Control Division ..• ? De,a,met feallnv Frame Page 14 of 15 ' 0 SIt :: 1Lrt 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 °PRE COLORADO +O+ Air Pollution Control Dr nston Page 15 of 15 Colorado Air Permitting Project. Project Details Review Engineer: Andy Gruel Package#: 324384 Received Date: 2/5/2015 Review Start Date: 5/28/2015 Section 01-Facility Information Company Name: Bonanza Creek Energy Operating Company LLC , County AIRS ID: 123 Plant AIRS ID: 9D32 Facility Name: State Seventy Holes 21-6 Production Facility Physical Address/Location: Lot 2,Section 6 of T4N R62W 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) ❑Particulate Matter(PM) ❑r Ozone(NOx&VOC) Section 02-Emissions Units In Permit Application Emissions Self Cert AIRs Point# Emissions Source Type Permit# Issuance# Action Engineering Remarks Control? Required? 005 Pneumatic Pump Yes 15WE0363 1 Yes Permit Initial Issuance 006 Process Flare Yes 15WE0363 1 Yes Permit Initial ssuance 008 Vapor Recovery Tower{VRT} Yes 15WE0363 1 Yes Permit Initial issuance 009 Separator Venting Yes 15WE0363 1 Yes Permit Initial Issuance 010 Hydrocarbon Liquid Loading Yes 15WE0363 1 Yes Permit Issuance 011 Produced Water Storage Tank Yes 15WE0363 1 Yes Permit Initial Issuance 012 Condensate Storage Tank Yes 15WE0363 1 Yes Permit Initial Issuance Section 03-Description of Project Facility-wide permit for an exploration&production facility located in the non-attainment area of Weld County. The facility produces both oil and natural gas from five wells,with first production in November 2014. Section 04-Public Comment Requirments Is Public Comment Required? Yes If yes,why?" Greater than 25 tons per year in Non-Attainment Area Section 05-Ambient Air Impact Analysis Requirements Was a quantitative modeling analysis required?2 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? No Is this stationary source a synthetic minor? Yes If yes,explain what programs and which pollutants here: Title V Operating Permits(OP):VOC,HAPs(n-Hexane) Non-Attainment New Source Review(NANSR):VOC Is this stationary source a major source? No If yes,explain what programs and which pollutants here: DA CDPHE Construction Permit CO '! Air Pollution Control Division Permit number: 15WE0363 Issuance: I Date issued: Issued to: Bonanza Creek Energy Operating Company LLC Facility Name: State Seventy Holes 21-6 Production Facility Plant AIRS ID: 123-9D32 Physical Location: Lot 2 of Section 6 of T4N R62W County: Weld County General Description: Well Production Facility Equipment or activity subject to this permit: Facility AIRS Emissions Control Equipment Point Equipment Description Description ID One (1) Sandpiper G1 F pneumatic water transfer P-01 005 pump (serial number 2004239), rated at 600 Enclosed flare scf/hr. FL 02 006 Venting of sales gas from high pressure separator; Open flare open flare combusts gas when sales line is down. Vapor recovery tower (make: Heath Technologies, VRT-01 008 model: 48"); vapors are typically collected by Enclosed flare VRU; emissions are controlled by enclosed flare when VRU is down. SEP 01 to Five (5) low-pressure separators; vapors are SEP-05 009 typically collected by VRU; emissions are Enclosed flare controlled by enclosed flare when VRU is down. L-01 010 Condensate loadout to tank trucks. Vapor balance, and enclosed flare PWT 01 011 Two (2) produced water storage vessels (500-bbl Enclosed flare each), total 1,000-bbl. CNDTK-01 012 Ten (10) condensate storage vessels (500-bbl Enclosed flare each), total 5,000-bbl. Point 005: This pump may be replaced with another pump in accordance with the provisions of the Alternate Operating Scenario (AOS) section of permit. AIRS: 123-9D32 Page 1 of 15 This is ed sub t all ru s and regulations of the Colorado Air Quality Control Co ion a • e • • ad• •• utio •'-vention 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. 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 this permit may be obtained online at www.colorado.gov/pacific/cdphe/air-permit-self-certification. (Regulation No. 3, Part B, Section III.G.2.) 2. 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 No. 3, Part B, Section TILE.) 3. 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 4. Emissions of air pollutants shall not exceed the following limitations. (Regulation No. 3, Part B, Section II.A.4.) ) Annual Limits: Facility AIRS Tons per Year Emission Equipment ID Point SOX VOC CO Type P-01 005 --- 2.6 1.4 Point FL-02 006 --- 4.9 2.6 Point VRT-01 008 --- 11.1 1.9 Point SEP-01 to SEP-05 009 3.6 7.8 1.9 Point L-01 010 --- 13.0 --- Point PWT-01 011 --- 2.0 --- Point CNDTK-01 012 --- 3.8 --- 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. 41/4 CalE COLORADO CO y Air Pollution Control Division .,: Page 2 of 15 • pli c it th nn :1 limit for both criteria and hazardous air pollutants, shall be •eter d ro ,v-lve ( 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. 5. 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 No. 3, Part B, Section III.E.) Facility AIRS Pollutants Control Device Equipment ID Point Controlled P-01 005 Enclosed flare VOC FL-02 006 Open flare (emergency) VOC VRT-01 008 Enclosed flare VOC SEP-01 to SEP-05 009 Enclosed flare VOC L-01 010 Vapor balance and enclosed flare VOC PWT-01 011 Enclosed flare VOC CNDTK-01 012 Enclosed flare VOC 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 owner or operator and made available to the Division for inspection upon request. (Regulation Number 3, Part B, II.A.4.) Process Limits Facility AIRS Process Parameter Annual Limit Equipment ID Point P-01 005 Gas vented 5.3 MMscf FL 02 006 Gas vented to emergency 10.0 MMscf flare VRT 01 008 Gas vented from vapor 3.0 MMscf recovery tower SEP-01 to SEP-05 009 Gas vented from separators 4.9 MMscf L-01 010 Liquids loaded 306,600 bbl PWT-01 011 Produced water throughput 302,220 bbl CNDTK-01 012 Condensate throughput 306,600 bbl 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 4 COPE COLORADO CO % Air Pollution Control Division Page 3 of 15 io t lve on s' ta. Thei •ermit holder shall calculate throughput each month and eep m e r site •' `.t a local field office with site responsibility, for Division review. 7. Point 009: The owner or operator shall continuously monitor and record the volumetric flow rate of natural gas vented from the separators using a flow meter. The flow meter shall continuously measure flow rate and record total volumetric flow vented from each separator. The owner or operator shall use monthly throughput records to demonstrate compliance with the process limits specified in Condition 6 and to calculate emissions as described in this permit. STATE AND FEDERAL REGULATORY REQUIREMENTS 8. The permit number and ten-digit AIRS ID number assigned by the Division (i.e., 123-9D32-xx)c) shall be marked on the subject equipment for ease of identification. (Reference: Regulation No. 3, Part B, III.E.) (State only enforceable) 9. Visible emissions shall not exceed twenty percent (20%) opacity during normal operation of these sources. 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. Emission control devices subject to Regulation No. 7, Sections XII.C.1.d or XVII.B.1.c shall have no visible emissions. (Reference: Regulation No. 1, Section II.A.1. 8 4.) 10. These sources are subject to the odor requirements of Regulation No. 2. (State only enforceable) 11. Fugitive component leaks at this well production facility are subject to the Leak Detection and Repair (LDAR) program requirements including monitoring, repair, re-monitoring, recordkeeping, and reporting as described in Regulation No. 7, Section XVII.F. In addition, the operator shall comply with the General Provisions contained in Regulation No. 7, Section XVII.B.1. 12. Points 005, 008, 009, 010, 011, 012: The enclosed flares covered by this permit are subject to Regulation No. 7, Section XII.C General Provisions (State only enforceable), and Regulation No. 7, Section XVII.B General Provisions (State only enforceable). If a combustion device is used to control emissions of volatile organic compounds to comply with Section XII.D and/or 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 combustion device or by other means approved by the Division, determine whether it is operating properly. The flares 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. Point 006: The open flare at this emissions point has been approved as an alternative emissions control device under Regulation Number 7, Section XVII.B.2.e. The open flare must 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 open flare, or by other convenient means approved by the Division, determine whether it is operating properly. This open 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; ,^ CaPHE COLORADO CO ' Air Pollution Control Division Page 4 of 15 • ll om usti d ices in ':lied before May 1, 2014, must be equipped with an 1III opera ional au o-igni er by or'.efore May 1, 2016, or after the next combustion device planned shutdown, whichever comes first. 14. Points 006, 008, and 009: 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. 15. Point 010: 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. Condensate loading to truck tanks shall be conducted by submerged fill. (Reference: Regulation 3, Part B, III.E) 16. Point 010: The owner or operator shall follow loading procedures that minimize the leakage of VOCs to the atmosphere including, but not limited to (Reference: Regulation 3, Part B, III.D.2): • Hoses, couplings, and valves shall be maintained to prevent dripping, leaking, or other liquid or vapor loss during loading and unloading. • All compartment hatches at the facility (including thief hatches) shall be closed and latched at all times when loading operations are not active, except for periods of maintenance, gauging, or safety of personnel and equipment. • The owner or operator shall inspect onsite loading equipment during loading operations to monitor compliance with above conditions. The inspections shall occur at least monthly. Each inspection shall be documented in a log available to the Division on request. 17. Point 010: All hydrocarbon liquid loading operations, regardless of size, shall be designed, operated and maintained so as to minimize leakage of volatile organic compounds to the atmosphere to the maximum extent practicable. 18. Point 012: This source is subject to Regulation Number 7, Section XII. The operator shall comply with all applicable requirements of Section XII and, specifically, shall: • Comply with the recordkeeping, monitoring, reporting and emission control requirements for condensate storage tanks; and • Ensure that the combustion device controlling emissions from this storage tank be enclosed, have no visible emissions, and be designed so that an observer can, by means of visual observation from the outside of the enclosed combustion device, or by other means approved by the Division, determine whether it is operating properly. (Regulation Number 7, Section XII.C.) (State only enforceable) 19. Points 011 and 012: The storage tanks at these emissions points covered by this permit are subject to the emission control requirements in Regulation Number 7, Section XVII.C.1. The owner or operator shall install and operate 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 except where the combustion device has been authorized by permit prior to May 1, 2014. The source shall follow the inspection requirements of Regulation Number 7, Section XVII.C.1.d. and maintain records of the inspections for a period of two years, made available to the Division upon request. This control requirement must be met within 90 days of the date that the storage tank commences operation. * COVME COLORADO CO ,, Air Pollution Control Division Page 5 of 15 20. pie. is 11 d 12: The torage nks covered by this permit are subject to the venting and ora an ssi geme ystem ("STEM") requirements of Regulation Number 7, Section XVII.C.2. 21. Point 012: This permit fulfills the requirement to hold a valid permit reflecting the storage tank and associated control device per the Colorado Oil and Gas Conservation Commission rule 805b(2)(A) when applicable. OPERATING £t MAINTENANCE REQUIREMENTS 22. Points 006, 008, 009, 010, 011, 012: Upon startup of these points, the owner or operator shall follow the most recent 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 the O&M plan are subject to Division approval prior to implementation. (Regulation Number 3, Part B, Section III.G.7.) 23. Point 010: The owner or operator of a loadout at which vapor balancing is used to control emissions shall: a. Install and operate the vapor collection and return equipment to collect vapors during loading of tank compartments of outbound transport trucks and return these vapors to the stationary source storage tanks. b. Include devices to prevent the release of vapor from vapor recovery hoses not in use. c. Use operating procedures to ensure that hydrocarbon liquid cannot be transferred unless the vapor collection equipment is in use. d. Operate all recovery and disposal equipment at a back pressure less than the pressure relief valve setting of transport vehicles. e. Inspect thief hatch seals annually for integrity and replace as necessary. Thief hatch covers shall be weighted and properly seated. f. Inspect pressure relief devices (PRD) annually for proper operation and replace as necessary. PRDs shall be set to release at a pressure that will ensure flashing, working and breathing losses are routed to the control device under normal operating conditions. g. Document annual inspections of thief hatch seals and PRD with an indication of status, a description of any problems found, and their resolution. COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 24. Points 005, 006, 008, 009, 011, 012: Within one hundred and eighty (180) days after issuance of this permit, 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 XII.C, XVII.B.2. and XVII.A.16) Periodic Testing Requirements 25. Point 009: On an annual basis, the operator shall complete a site-specific extended gas analysis of the natural gas produced from the separators that is routed to the flare, in order to verify the VOC content (weight fraction) of this emission stream used in the permit application. Results of testing shall be used to determine the site-specific emission factors using Division- approved methods. ca COLORADO CO If Air Pollution Control Division pep ,r,„«,f gut, „<<;.,,. Page 6 of 15 ALT; O N CE RI 26. Point 005: This pump may be replaced with a like-kind pump in accordance with the requirements of Regulation 3, Part A, Section IV.A and without applying for a revision to this permit or obtaining a new construction permit. A like-kind replacement pump shall be the same make, model and capacity as authorized in this permit. 27. Point 005: The owner or operator shall maintain a log on-site or at a local field office to contemporaneously record the start and stop dates of any pump replacement, the manufacturer, model number, serial number and capacity of the replacement pump. 28. Point 005: All pump replacements installed and operated per the alternate operating scenarios authorized by this permit must comply with all terms and conditions of this construction permit. ADDITIONAL REQUIREMENTS 29. 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 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 volatile organic compounds (VOC) and nitrogen oxides sources (NOx) in ozone nonattainment areas emitting less than 100 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 100 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 • 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. 30. 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). 31. MACT Subpart HH - National Emission Standards for Hazardous Air Pollutants From Oil and Natural Gas Production Facilities major stationary source requirements shall apply to this stationary source at any such time that this stationary source becomes major solely by virtue of ,, c1gE COLORADO CO Air Pollution Control Division f k,ir,>>.;, 1 i orr,,.w r,: Page 7 of 15 la ti in any er t limit. on and shall be subject to all appropriate applicable requi nt b . (Reg -"'•n Number 8, Part E, Subpart HH) GENERAL TERMS AND CONDITIONS 32. 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. 33. 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 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. 34. 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. 35. 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. 36. 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. 37. 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. 38. 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: Andy Gruel, P.E. Permit Engineer COPE COLORADO CO y Air Pollution Control Division >_1> , Page 8 of 15 DA Permit History Issuance Date Description Issuance 1 This Issuance Issued to Bonanza Creek Energy Operating Company LLC. Facility-wide construction permit for a synthetic minor facility. * CDPHE COLORADO CO , Air Pollution Control Division Page 9 of 15 No pr ' l th this _;-{' • it 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/cdphetaqcc-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. AIRS Uncontrolled Controlled Point Pollutant CAS# Emissions Emissions (Ib/yr) (lb/yr) Benzene 71432 239 12 Toluene 108883 290 15 Ethylbenzene 100414 109 6 005 Xylenes 1130207 203 11 n-Hexane 110543 1746 88 2,2,4- 540841 246 13 Trimethylpentane Benzene 71432 456 23 Toluene 108883 552 28 Ethylbenzene 100414 207 11 006 Xylenes 1130207 387 20 n-Hexane 110543 3322 167 2,2,4- 540841 467 24 Trimethylpentane Benzene 71432 4590 230 Toluene 108883 4504 226 ' 008 Ethylbenzene 100414 643 33 Xylenes 1130207 1592 80 n-Hexane 110543 31576 1579 �1iE COLORADO CO y Air Pollution Control Division u � ,. Page 10 of 15 np A AIRS Uncontrolled Controlled Point Pollutant CAS# Emissions Emissions (lb/yr) (lb/yr) 008 2'2'4 540841 3152 158 Trimethylpentane 009 Benzene 71432 974 49 009 Toluene 108883 1140 57 009 Ethylbenzene 100414 265 14 009 Xylenes 1130207 477 24 009 n-Hexane 110543 6855 343 009 2'2'4 540841 960 48 Trimethylpentane 010 Benzene 71432 163 109 010 Toluene 108883 130 87 010 Ethylbenzene 100414 11 8 010 Xylenes 1130207 29 20 010 n-Hexane 110543 1717 1142 010 2'2'4 540841 132 88 Trimethylpentane 011 Benzene 71432 2116 106 011 n-Hexane 110543 6649 333 012 Benzene 71432 1288 65 012 Toluene 108883 1288 65 012 Ethylbenzene 100414 129 7 012 Xylenes 1130207 515 26 012 n-Hexane 110543 9014 451 012 2'2'4 540841 1031 52 Trimethylpentane 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 005: Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Fraction Factors Factors Source of Gas (%) lb/MMscf lb/MMscf vented vented NOx (lb/MMBtu) --- --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- --- 0.37 AP-42 Ch. 13-5 VOC 30.96 19452 972.6 Emission factors 71432 Benzene 0.0725 45.55 2.28 are based on 108883 Toluene 0.0878 55.19 2.76 the 4 CLUE COLORADO CO y Air Pollution Control Division Page 11 of 15 np A V Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Fraction Factors Factors Source of Gas (%) lb/MMscf lb/MMscf vented vented 100414 Ethylbenzene 0.0330 20.73 1.04 displacement 1330207 Xylenes 0.0615 38.66 1.933 equation (see 110543 n-Hexane 0.5288 332.21 16.61 below) and the site-specific gas 540841 2,2,4-Trimethylpentane 0.0744 46.72 2.34 analysis. The displacement equation can found in "EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 - Displacement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 006: Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Fraction Factors Factors Source of Gas (%) lb/MMscf lb/MMscf vented vented NOx (lb/MMBtu) --- --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- --- 0.37 AP-42 Ch. 13-5 VOC 30.96 19452 972.6 Emission factors 71432 Benzene 0.0725 45.55 2.28 are based on 108883 Toluene 0.0878 55.19 2.76 displacement 100414 Ethylbenzene 0.0330 20.73 1.04 equation (see 1330207 Xylene 0.0615 38.66 1.933 below) and the 110543 n-Hexane 0.5288 332.21 16.61 site-specific gas 540841 2,2,4-Trimethylpentane 0.0744 46.72 2.34 analysis. The displacement equation can found in "EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 - Displacement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 008: Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Fraction Factors Factors Source of Gas (%) lb/MMscf lb/MMscf vented vented NOx (lb/MMBtu) --- --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- --- 0.37 AP-42 Ch. 13-5 VOC 94.45 151261 7563.1 Emission factors 71432 Benzene 0.9838 1573.4 78.67 are based on 108883 Toluene 0.9656 1544.2 77.21 displacement 100414 Ethylbenzene 0.1379 220.6 11.03 equation (see 0.3413 below) and 1330207 Xylene545.8 27.29 ProMax 110543 n-Hexane 6.7681 10824.8 541.24 modeling based on a site- 540841 2,2,4 0.6757 1080.7 54.035 specific gas Trimethylpentane analysis. 4CDPH COLORADO 1/4 CO Air Pollution Control Division _ :: , .orwai-: c;y:r,€.o:al.orncat Page 12 of 15 D.pl t qu on an fou in "EPA Emission Inventory Improvement Program -1. lcatio . of , C 0 - Di cement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 009: Uncontrolled Controlled Weight Emission CAS# Pollutant Fraction of Factors Emission Factors Source Gas (%) lb/MMscf lb/MMscf vented vented NOx --- --- 0.068 AP-42 Ch. 13-5 CO --- --- 0.37 AP-42 Ch. 13-5 SOx --- --- 0.698 AP-42 Ch. 13-5 VOC 65.925 63981 3199.1 Emission 71432 Benzene 0.2069 200.76 10.04 factors are 108883 Toluene 0.2423 235.12 11.76 based on 100414 Ethylbenzene 0.0563 54.63 2.73 displacement equation (see 1330207 Xylene 0.1013 98.33 4.92 below) and ' ProMax modeling 110543 n-Hexane 1.4562 1413.22 70.66 based on a site-specific 540841 2,2,4-Trimethylpentane 0.2040 198.02 9.90 gas analysis. The displacement equation can found in "EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 - Displacement Equation (10.4-3)." Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 010: Uncontrolled Controlled Weight Emission Emission CAS# Pollutant Fraction of Factors Factors Source Gas(%) lb/1,000gallons Ib/1,000gallons loaded loaded VOC 90.29 6.01 2.02 AP-42 Ch 5.2 Eqn 1 71432 Benzene 0.2104 0.0127 0.00425 AP-42 Ch 5.2 Eqn 1 108883 Toluene 0.1679 0.0101 0.00339 AP-42 Ch 5.2 Eqn 1 100414 Ethylbenzene 0.0145 0.0009 0.000302 AP-42 Ch 5.2 Eqn 1 1330207 Xylene 0.0370 0.0022 0.000737 AP-42 Ch 5.2 Eqn 1 110543 n-Hexane 2.2169 0.1333 0.04466 AP-42 Ch 5.2 Eqn 1 540841 2,2,4-Trimethylpentane 0.1707 0.0103 0.00345 AP-42 Ch 5.2 Eqn 1 Note: The controlled emissions factors for this point are based on an overall control efficiency of 66.5%, calculated as follows: collection efficiency of vapor balance is 70% (AP-42 Ch 5.2), and that collected amount is controlled at enclosed flare at 95%. 0.7*0.95 = 0.665. The uncontrolled VOC emission factor was calculated using AP-42, Chapter 5.2, Equation 1 (version 1/95) using the following values: L = 12.46*C*S*P*M/T C = 0.9029 (Weight % VOC, from site-specific sample taken 12/8/2014) S = 1.0 (Submerged loading: dedicated normal service) P (true vapor pressure) = 5.6 psia M (vapor molecular weight) = 49.98 lb/lb-mol T (temperature of liquid loaded) = 523.67 °R 'A` A COLORADO CO ' Air Pollution Control Division Page 13 of 15 1 un n lie non rit 'a repor ble air pollutant (NCRP) emission factors were calculated using p e of th- ,CRP as measured from a site-specific sample taken 12/8/2014, multiplied by the total VOC loading loss ("L") calculated above. Point 011: Uncontrolled Controlled CAS# Pollutant Emission Factors Emission Factors Source lb/bbl lb/bbl VOC 0.262 0.0131 CDPHE Default 71432 Benzene 0.007 0.00035 CDPHE Default 110543 n-Hexane 0.022 0.0011 CDPHE Default Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. Point 012: Uncontrolled Controlled CAS# Pollutant Emission Factors Emission Factors Source lb/bbl lb/bbl NOx (lb/MMBtu) --- 0.068 AP-42 Ch. 13-5 CO (lb/MMBtu) --- 0.37 AP-42 Ch. 13-5 VOC 0.4917 0.0246 71432 Benzene 0.00427 0.00021 Emission factors 108883 Toluene 0.00423 0.00021 are modeled using Promax and based 100414 Ethylbenzene 0.000608 0.00003 1330207 Xylene 0.00151 0.00008 on site specific 110543 n-Hexane 0.0295 0.00148 liquids analysis obtained 540841 2,2,4 0.0033 0.00016 12/8/2014. Trimethylpentane Note: The controlled emissions factors for this point are based on the flare control efficiency of 95%. 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 Status Requirement Operating Permit Synthetic Minor Source of: VOC, NOx, HAP (n-hexane) NANSR Synthetic Minor Source of: VOC, NOx MACT HH Area Source 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 * CDPHE COLORADO Co L-. Air Pollution Control Division ., -: Page 14 of 15 I) III A .0. .! S r ,.rt 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 * CDPHE COLORADO CO I% Air Pollution Control Division Page 15 of 15 Hello