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Home My WebLink About20152237.tiff A CDPHE COLORADO a Co 'S Department of Public Health & Environment Dedicated to protecting and improving the health and environment of the people of Colorado Weld County - Clerk to the Board 1150 O St PO Box 758 Greeley, CO 80632 RECEIVED July 14, 2015 JUL 2 3 2015 WELD COUNTY Dear Sir or Madam : COMMISSIONERS On July 15, 2015 , the Air Pollution Control Division will begin a 30-day public notice period for Kerr- McGee Oil &t Gas Onshore LP - Central Oil Stabilization Facility - 2. 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 Ft Environment APCD-SS-B1 4300 Cherry Creek Drive South Denver, Colorado 80246-1530 Attention : Clara Gonzales Regards, / /1 l Clara Gonzales Public Notice Coordinator Stationary Sources Program Air Pollution Control Division Enclosure MX-klb.a3Wita C erPLIPtAt &7/a3 2015-2237 4300 Cherry Creek Drive S., Denver, CO 80246-1530 P 303-692-2000 www.colorado.gov/cdphe .lay . . t:t * John W. Hickenlooper, Governor I Larry Wolk, MD, MSPH, Executive Director and Chief Medical Officer ,v • 'J ,�a r . , CDPHE Air Pollution Control Division ' Notice of a Proposed Project or Activity Warranting Public CO ' Comment Website Title: Kerr-McGee Oil Et Gas Onshore LP - Central Oil Stabilization Facility - 2 - Weld County Notice Period Begins: July 15, 2015 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: Kerr-McGee Oil Et Gas Onshore LP Facility: Central Oil Stabilization Facility - 2 Midstream Oil Stabilization Facility SEC 24 T3N R65W Weld County The proposed project or activity is as follows: Applicant proposes to construct an oil stabilization facility. The Division has determined that this permitting action is subject to public comment per Colorado Regulation No. 3 , Part B, Section 1II . 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 14WE1650 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: Christopher Kester Colorado Department of Public Health and Environment 4300 Cherry Creek Drive South, APCD-SS-B1 Denver, Colorado 80246- 1530 cdphe. commentsapcd@state . co. us r,•..' COLORADO 1 I CO •cm:7• .war s�:: NrYhM t..n Lawn. STATE OF COLORADO COLORADO DEPARTMENT OF PU_ „ Pi Y IC HEALTH AND ENVIRONMENT �8k' AIR POLLUTION CONTROL DIVISION TELEPHONE: (303) *At): 41876 * CONSTRUCTION PERMIT PERMIT NO: 14WE1650 1650 Issuance 1 DATE ISSUED: ISSUED TO: Kerr-McGee Oil & Gas Onshore LP THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Oil and gas Central Oil Stabilization Facility known as the Central Oil Stabilization Facility, located in the Section 25 T3N R65W, Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description ID TK1 , TK2 , 013 Two (2) 250,000 bbl internal floating roof tanks for stable oil storage. Emissions from the tanks are uncontrolled. An air-assisted process flare will be used to combust gas during scheduled and unscheduled maintenance activities. Purge gas will FLR- 1 018 be used to prevent low flashback issues associated with the flare and to keep the flame stable The process flare achieves a minimum VOC destruction efficiency of 98%. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S. (25-7-101 et seq), TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1 . This construction permit represents final permit approval and authority to operate this emissions source. Therefore, it is not necessary to self-certify. (Regulation 3, Part B, Section III .G.5). 2. YOU MUST notify the Air Pollution Control Division (the Division) no later than fifteen days after commencement of operation or issuance of this permit, whichever comes later, by submitting a Notice of Startup form to the Division . The Notice of Startup form may be downloaded online at www.cdphe.state.co. us/ap/downioadforms.html . Failure to notify the Division of startup of the permitted source is a violation of Air Quality Control Commission (AQCC) Regulation No. 3, Part B, Section III .G . 1 and can result in the revocation of the permit. AIRS ID: 123/9D3F Page 1 of 13 Rolora a Depar nen, of P olic Health and Environment rill fir Pollution Control Division 3. Within one hundred and eighty days (180) after commencement of operation or issuance of this permit, whichever comes later, 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. (Reference: Regulation No. 3, Part B, III .G .2) . 4. This permit shall expire if the owner or operator of the source for which this permit was issued : (i) does not commence construction/modification or operation of this source within 18 months after either, the date of issuance of this construction permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this permit; (ii) discontinues construction for a period of eighteen months or more; (iii) does not complete construction within a reasonable time of the estimated completion date. The Division may grant extensions of the deadline per Regulation No. 3, Part B, III . F.4. b. (Reference: Regulation No. 3, Part B, III . F.4.) 5. The operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III . E.) 6. 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. 7. Point 018: Within one hundred and eighty days ( 180) after commencement of construction or issuance of this permit, whichever comes later, the operator shall install a flow meter to monitor and record volumetric flow rate of process gas flared at this facility. The operator shall use the gas flow rate listed in the application for actual flow rate until the flow meter is installed, not to exceed one hundred and eighty (180) days after issuance of this permit. EMISSION LIMITATIONS AND RECORDS 8. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II .A.4) Monthly Limits : Facility AIRS Pounds per Month Equipment ID Point NO VOC CO Emission Type x TK1 , TK2, 013 --- 714 --- Point FLR-1 018 204 1852 1139 Point Monthly limits are based on a 31 -day month. Annual Limits : Facility AIRS Tons per Year Equipment ID Point NO VOC CO Emission Type x TK1 , TK2, 013 --- 4.2 --- Point AIRS ID: 123/9D3F Page 2 of 13 olor Depa en i. lic Heal1.1iiii) , th Control and DivisionEnvironment - - - FLR-1 018 . • .7 Point 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 be less than 8.0 tpy. Facility-wide emissions of total hazardous air pollutants shall be less than 20.0 tpy. Compliance with the annual limits shall be determined by recording the facility's annual criteria pollutant emissions, (including all HAPs above the de-minimis reporting level) from each emission unit, on a rolling twelve (12) month total. By the end of each month a new twelve-month total shall be calculated based on the previous twelve months' data. The permit holder shall calculate emissions each month and keep a compliance record on site or at a local field office with site responsibility, for Division review. This rolling twelve-month total shall apply to all permitted emission units, requiring an APEN , at this facility. 9. Emissions from maintenance activities and flare purge gas shall be collected and controlled by a flare in order to reduce the emissions of volatile organic compounds to the level listed in this section , above. Operating parameters of the flare are identified in the operation and maintenance plan for this unit. Flare combustion efficiency shall be a minimum of 98%. (Reference: Regulation No. 3, Part B, Section III .E.) PROCESS LIMITATIONS AND RECORDS 10. 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. (Reference: Regulation 3, Part B, II .A.4) Process/Consumption Limits • Facility AIRS Process Parameter Annual Limit Monthly Limit E ui ment ID Point - (31 days) Condensate TK1 , TK2, 013 Throu h ut 109,500,000 bbl 9,300,000 bbl FLR-1 018 Process and Purge 15. 1 MMscf 1 .28 MMscf Gas Flared During the first twelve ( 12) months of operation, compliance with both the monthly and yearly emission limitations shall be required. After the first twelve (12) months of operation, compliance with only the yearly limitation shall be required . 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. Point 018 : The owner or operator shall continuously monitor and record the volumetric flow rate of process gas flared at the facility using a flow meter. The flow meter shall continuously measure flow rate and record total volumetric flow flared from at the facility. The owner or operator shall use monthly throughput records to demonstrate compliance AIRS ID: 123/9D3F Page 3 of 13 1 dolor Depa en f P lic Health and Environment it Pollution Control Division with the process iirnits specified in this permit and to calculate emissions as described in this permit. 11 . Point 018: The operator shall continuously monitor the process flare to ensure the presence of a pilot flame. STATE AND FEDERAL REGULATORY REQUIREMENTS 12. The permit number and AIRS ID point number (e.g. 123/4567/890) shall be marked on the subject equipment for ease of identification . (Reference: Regulation Number 3, Part B, II1.E.) (State only enforceable) 13. Visible emissions shall not exceed twenty percent (20%) opacity during normal operation of the source. During periods of startup, process modification , or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1 , Section II .A. 1 . & 5.) 14. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) 15. Point 013 : This source is subject to the requirements under Regulation 7, Section VI .B.2.a and Vl.B.2.b including , but not limited to: a The tank must be equipped with an internal floating roof which rests on the surface of the liquids contents and which is equipped with a closure seal or seals to close the space between the edge of the floating roof and tank walls. b. The tank shall be maintained such that there are no visible holes, tears, or other openings in the seal or any seal fabric or materials and all openings, except stub drains, are equipped with covers, lids, or seals such that the cover, lid, or seal is in the closed position at all times except when in actual use, automatic bleeder vents are closed at all times except when the roof is floated off or landed on the roof leg supports, and rim vents, if provided, are set to open when the roof is being floated off the roof leg supports or at the manufacturer's recommended setting . c The owner or operator shall perform a routine inspection through the tank roof hatches where the operator shall measure for detectable vapor loss inside the hatch at least once every six months. Detectable vapor loss means a VOC concentration exceeding 10,000 ppm, using a portable hydrocarbon analyzer. d . The owner or operator shall perform a complete inspection of the cover and seal whenever the routine inspection required in sub-condition (c) reveals detectable vapor loss and at least once every ten years. The operator shall notify the Division in writing before any such inspection. e. The owner or operator shall ensure during inspections that there are no visible holes, tears, or other openings in the seal or any seal fabric or materials; that the cover is floating uniformly on or above the liquid surface; that there are no visible defects in the surface of the cover or liquid accumulated on the cover; and that the seal is uniformly in place around the circumference of the cover between the cover and the tank wall. If these items are not met, the owner or operator shall repair the items or empty and remove the storage vessel from service within 45 days. If a failure that is detected during inspections required in this paragraph cannot be repaired within 45 days and if the vessel cannot be emptied within 45 AIRS ID: 123/9O3F Page 4 of 13 olor Depa en rfHealth and Environment it Pollution Control Division days, a 30-day extension may be reques ed from the Division in writing . Such a request must document that alternative storage capacity is unavailable and specify a schedule of actions the owner or operator will take that will assure that the items will be repaired or the vessel will be emptied as soon as possible f. The owner or operator shall maintain records for at least two years of the results of all inspections. g. The tank shall have all external surfaces coated with a material which has a reflectivity for solar radiation of 0.7 or more. Methods A or B of ASTM E424 shall be used to determine reflectivity. Alternatively, any untinted white paint may be used which is specified by the manufacturer for such use. This provision shall not apply to written symbols or logograms applied to the external surface of the container for purposes of identification provided such symbols do not cover more than 20% of the exposed top and side surface area of the container or more than 18.6 square meters (200 square feet), whichever is less. 16. Point 018: The Division has determined this flare shall comply with the New Source Performance Standards requirements of Subpart A Section §60. 18, General Control Device and Work Practice Requirements, including, but not limited to, the following: a. §60.18(b) Flares. Paragraphs (c) through (f) apply to flares. b. §60.18(c)(1 ) Flares shall be designed for and operated with no visible emissions as determined by the methods specified in paragraph (f) , except for periods not to exceed a total of 5 minutes during any 2 consecutive hours. c. §60.18(c)(2) Flares shall be operated with a flame present at all times, as determined by the methods specified in paragraph (f). d . §60.18(c)(3) An owner/operator has the choice of adhering to either the heat content specifications in paragraph (c)(3)(ii) of this section and the maximum tip velocity specifications in paragraph (c)(4) of this section , or adhering to the requirements in paragraph (c)(3)(i) of this section. • §60.18(c)(3)(i)(A) Flares shall be used that have a diameter of 3 inches or greater, are nonassisted, have a hydrogen content of 8.0 percent (by volume), or greater, and are designed for and operated with an exit velocity less than 37.2 m/sec (122 ft/sec) and less than the velocity, Vmax, as determined by the following equation: Vmax - (XH2"K1)* K2 Where: Vmax = Maximum permitted velocity, m/sec. K1 = Constant, 6.0 volume-percent hydrogen. K2 = Constant, 3. 9(m/sec)/volume-percent hydrogen. XH2 = The volume-percent of hydrogen, on a wet basis, as calculated by using the American Society for Testing and Materials (ASTM) Method D1946-77. (Incorporated by reference as specified in §60. 17) . AIRS ID: 123/9D3F Page 5 of 13 _;olora Depar nent of P olic Health and Environment \ir Pollution Control Division • §60. 18(c)(3)(i)(B) The actual exit velocity of a flare shall be determined by the method specified in paragraph (f)(4) of this section. • §60. 18(c)(3)(ii) Flares shall be used only with the net heating value of the gas being combusted being 11 .2 MJ/scm (300 Btu/scf) or greater if the flare is steam-assisted or air-assisted; or with the net heating value of the gas being combusted being 7.45 MJ/scm (200 Btu/scf) or greater if the flare is nonassisted. The net heating value of the gas being combusted shall be determined by the methods specified in paragraph (f)(3) of this section. e. §60.18(c)(5) Air-assisted flares shall be designed and operated with an exit velocity less than the velocity, Vmax, as determined by the method specified in paragraph (f)(6). f. §60.18(c)(6) Flares used to comply with this section shall be steam-assisted, air- assisted, or nonassisted. g . §60.18(d) Owners or operators of flares used to comply with the provisions of this subpart shall monitor these control devices to ensure that they are operated and maintained in conformance with their designs. Applicable subparts will provide provisions stating how owners or operators of flares shall monitor these control devices. h . §60. 18(e) Hares used to comply with provisions of this subpart shall be operated at all times when emissions may be vented to them. §60. 18(f)(1 ) Method 22 of appendix A to this part shall be used to determine the compliance of flares with the visible emission provisions of this subpart. The observation period is 2 hours and shall be used according to Method 22. j . §60. 18(f)(2) The presence of a flare pilot flame shall be monitored using a thermocouple or any other equivalent device to detect the presence of a flame. k. §60. 18(f)(3) The net heating value of the gas being combusted in a flare shall be calculated using the following equation: I, HT - K F C 1 N1 i*1 Where: HT = Net heating value of the sample, MJ/scm; where the net enthalpy per mole of offgas is based on combustion at 25 °C and 760 mm Hg , but the standard temperature for determining the volume corresponding to one mole is 20 °C; K Constant , 7 1 note, Md 1 . 740 x. 1O" 'RR&� ' scm j '- cam' where the standard temperature for rjg mole is ?O"€ ; scm - I AIRS 1D: 123/9D3F Page 6 of 13 olor Depa en f P ciic Health and Environment it Pollution Control Division C; = Concentration of sample component i in ppm on a wet basis, as measured for organics by Reference Method 18 and measured for hydrogen and carbon monoxide by ASTM D1946-77 or 90 (Reapproved 1994) (Incorporated by reference as specified in §60. 17); and Hi = Net heat of combustion of sample component i, kcal/g mole at 25 °C and 760 mm Hg . The heats of combustion may be determined using ASTM D2382-76 or 88 or D4809-95 (incorporated by reference as specified in §60. 17) if published values are not available or cannot be calculated. I. §60.18(f)(4) The actual exit velocity of a flare shall be determined by dividing the volumetric flowrate (in units of standard temperature and pressure), as determined by Reference Methods 2, 2A, 2C, or 2D as appropriate; by the unobstructed (free) cross sectional area of the flare tip. m. §60. 18(f)(5) The maximum permitted velocity, Vmax, for flares complying with paragraph (c)(4)(iii) shall be determined by the following equation . Log10 (Vmax)=(Hr+28.8)/31 .7 Vmax = Maximum permitted velocity, M/sec 28.8=Constant 31 .7=Constant HT = The net heating value as determined in paragraph (f)(3). n . §60.18(f)(6) The maximum permitted velocity, Vmax, for air-assisted flares shall be determined by the following equation . Vmax = 8.706+0.7084 (HT) Vmax = Maximum permitted velocity, m/sec 8.706=Constant 0.7084=Constant HT = The net heating value as determined in paragraph (f)(3). 17. This facility is located in an ozone non-attainment or attainment-maintenance area and subject to the Reasonably Available Control Technology (RACT) requirements of Regulation Number 3, Part B, III .D.2.a.: Facility AIRS Equipment Point Meeting RACT Requirements with : ID TK1 , TK2, 013 Internal floating roof on the tanks AIRS ID: 123/9D3F Page 7 of 13 Depa en lic Health and Environment it Pollution Control Division Rolor ...rL is a FLR-1 P Open flare to combust process emissions OPERATING & MAINTENANCE REQUIREMENTS 18. Point 018: 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 your O&M plan are subject to Division approval prior to implementation . (Reference: Regulation No. 3, Part B, Section III .G .7.) COMPLIANCE TESTING AND SAMPLING 19. Point 018: The owner or operator shall demonstrate compliance with opacity standards, using EPA Method 22 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 ( 1 ) minute in any fifteen (15) minute period during normal operation. (Reference: Regulation No. 3, Part B, Section III . E) Periodic Testing Requirements 20. Point 018 : On an annual basis, the operator shall complete a site specific extended gas analysis of the natural gas produced at this site that is routed to the flare in order to verify the VOC and HAP content (weight fraction) of this emission stream used in the permit application. Results of testing shall be used to determine site-specific emission factors using Division approved methods. (Reference: Regulation No. 3, Part B, Section III . E) ADDITIONAL REQUIREMENTS 21 . A revised Air Pollutant Emission Notice (APEN) shall be filed: (Reference: Regulation No. 3, Part A, 11 . 0) a. 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 (NO),) 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. b. Whenever there is a change in the owner or operator of any facility, process, or activity; or AIRS ID: 123/9D3F Page 8 of 13 1 ;olor Depa ill nflif P 11r olic Health and Environment Pollution Control Division c. Whenever new control equipmen 'nstalled, or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified ; or e. No later than 30 days before the existing APEN expires. 22. Federal regulatory program requirements (i .e. PSD, NANSR or Title V Operating Permit) 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 No. 3 Part D). GENERAL TERMS AND CONDITIONS 23. This permit and any attachments must be retained and made available for inspection upon request. The permit may be reissued to a new owner by the APCD as provided in AQCC Regulation No. 3, Part B, Section II . B upon a request for transfer of ownership and the submittal of a revised APEN and the required fee. 24. If this permit specifically states that final authorization has been granted , then the remainder of this condition is not applicable. Otherwise, the issuance of this construction permit does not provide "final" authority for this activity or operation of this source. Final authorization of the permit must be secured from the APCD in writing in accordance with the provisions of 25-7-114. 5(12)(a) C. R.S. and AQCC Regulation No. 3, Part B, Section III .G . Final authorization cannot be granted until the operation or activity commences and has been verified by the APCD as conforming in all respects with the conditions of the permit. Once self-certification of all points has been reviewed and approved by the Division , it will provide written documentation of such final authorization . Details for obtaining final authorization to operate are located in the Requirements to Self- Certify for Final Authorization section of this permit. 25. 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. 26. 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. 27. 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. AIRS ID: 123/9D3F Page 9 of 13 ii olor Depa en Iic Health and Environment it Pollution Control Division 28. Section 25-7- 1 __ a), . S._ equires 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. 29. 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: umm...4 _____ . j_________ Christopher Kester Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Issued to Kerr-McGee Oil & Gas Onshore Lp AIRS ID: 123/9D3F Page 10 of 13 g: olor. Depa ens 0f P - Dlic Health and Environment .. 11111 it Pollution Control Division Notes to Permit Holder a - " me o ' •e lance: 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 (Reference: Regulation a N3, 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 It, 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: http://www colorado.gov/cs/Satellite?c=Document C&childpagename=CDPHE- Main%2FDocument C%2FCBONAddLinkView&cid=1251599389641 &pagename=CBONWrapper 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 Emission Are the Controlled AIRS Rate emissions Emission Rate Point _ _ Pollutant CAS # (lb/yr) reportable? (lb/yr) 013 Benzene 71432 1 No 013 n-Hexane 110543 15 No 018 Benzene 71432 1 ,475 Yes 30 018 n-Hexane 110543 17,866 Yes 357 018 Toluene 108883 1 ,977 Yes 40 018 Ethylbenzene 100414 130 No 3 018 Xylenes 1330207 929 Yes 19 5) The emission levels contained in this permit are based on the following emission factors: Point 013: Emission Factors Uncontrolled Pollutant lb/BBL Source Condensate Throughput VOC 7.75E-05 EPA TANK 4.0.9d n-Hexane 2.65E-09 EPA TANK 4.0.9d Benzene 1 .34E-07 EPA TANK 4.0.9d AIRS ID: 123/9D3F Page 11 of 13 olor Depa en Ilic Health and Environment Pollution Control Division Point 018: Weight Emission Pollutant Fraction of Factors Source Gas (°/U) Uncontrolled lb/MMscf NOx Ob/MMBTU) --- 0. 068 AP 42 CO 0.37 AP-42 (Ib/MMBTU) VOC 68.1 72,373 Promax Benzene 0.094 98.22 Promax Toluene 0. 127 131 .85 Promax Ethylbenzene 0.008 8.64 Promax Xylenes 0.060 62.01 Promax n-hexane 1 . 146 1191 .07 Promax 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 and HAP PSD or NANSR Synthetic Minor Source of: 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.q poaccess.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 AIRS ID: 123/9D3F Page 12 of 13 IrColor Depa en P lic Health and Environment - pair Pollution Control Division , 9) A self certification form and guidance on how to self-certify compliance as required by this permit may be obtained online at: http://www.colorado.gov/pacific/cdphe/air-permit-self-certification AIRS ID: 123/9D3F Page 13 of 13 Division Information Engineer: Christopher Kester Control Engineer: Stefanie Rucker Review Date: 01/05/2015 Application Date: 10/14/2014 Facility Identifiers Permit No 14WE1650 AIRs County # 123 Weld Facility # 9D3F Facility Type: Central Oil Stabilization Facility Located in the 8-hour non-attainment area? O True Minor Synthetic Minor for: fv VOC r NOx r co Administrative Information Company Name Kerr-McGee Oil & Gas Onshore Lp Source Name: Central Oil Stabilization Facility Source Location: Section 25 T3N R65W SIC'. 1311 Address 1: Kerr-McGee Oil & Gas Onshore Lp Mailing Address Address 2: P.O. Box 17399 State Zip: Debver, CO 80217 Name: Carissa Krey Person To Phone: 720-929-6916 Contact Fax: Email: carissa.krey@anadarko.com Requested Action Self Certification Required? Yes Issuance Number: 1 Source Description: Oil and gas Central Oil Stabilization Facility known as the Central Oil Stabilization Facility, located in the Section 25 T3N R65W, Weld County, Colorado. Point Name Type Control Action 013 TK1 , TK2, . Condensate Tanks None Newly Permitted Internal Floating Roof Point Condensate Storage Tank Newly Permitted Process Flare to control 018 FLR-1 Separator Venting Flare Point process gas and purge gas Preliminary Analysis - 14WE1650 - 123/9D3F 013 Two (2) 250,000 bbl internal floating roof tanks for stable oil storage Requsted Throughput 109500000 bbl Control No Control Efficiency 0.00% Emissions Summary Table Pollutant Emission Factor Uncontrolled Emissions Controlled Emissions Source V0C 7.75E-05 lb/bbl 4.24 tpy 4.24 tpy E&P TANK Benzene 2.65E-09 lb/bbl 0.29 lb/yr 0.29 lb/yr E&P TANK n-Hexane 1 . 34E-07 lb/bbl 14.72 lb/yr 14.72 lb/yr E&P TANK * * *All HAPs are de minimis Regulatory Review Section II.A.1 - Except as provided in paragraphs 2 through 6 below, no owner or operator of a source shall allow or cause the emission into the atmosphere of any air pollutant which is in excess of 20% opacity. This standard is based on 24 consecutive opacity readings taken at 15-second intervals for six minutes. The approved reference test method for visible emissions measurement is EPA Method 9 (40 CFR, Part 60, Appendix A (July, 1992)) in all subsections of Section II. A and B of this regulation. Regulation 2 — Odor Section LA - No person, wherever located, shall cause or allow the emission of odorous air contaminants from any single source such as to result in detectable odors which are measured in excess of the following limits: For areas used predominantly for residential or commercial purposes it is a violation if odors are detected after the odorous air has been diluted with seven (7) or more volumes of odor free air Regulation 6 - New Source Performance Standards NSPS Kb: for storage vessels greater than 19,800 gallons after 7/23/84. This source is subject because each tank is greater than 19,800 gallons (471 bbl) NSPS OOOO: for storage vessels in the natural gas production, transmission, and processing segments. This source is not subject because each tank emits less than 6 tpy VOC. Regulation 7 — Volatile Organic Compounds VI. Storage and Transfer of Petroleum Liquids Source is subject because tanks capacity exceeds 40,000 gallons and transfer liquids with an RVP between 1 .3 and 11 psia (Subject to VI.B.2.a.(i)(A), VI.B.2.a.(ii), VI.B.2.a.(iii), VI.B.2.b) XII. VOLATILE ORGANIC COMPOUND EMISSIONS FROM OIL AND GAS OPERATIONS (Applicant is not subject to the emission control requirements for condensate tanks since the facility is not an E&P facitliy, gas plant, or compressor station.) XVII.C STATEWIDE CONTROLS FOR OIL AND GAS OPERATIONS. . . (Applicant is not subject to XVII since the facility is not an E&P facitliy, gas plant, or compressor station.) 018 A process flare will be used to combust gas during scheduled and unscheduled maintenance activities. Calculations _emission Calculation Method EPA Emission Inventory Improvement Program Publication: Volume II, Chapter 10 - Displacement Equation (10.4-3) Ex= Q ' MW 'Xx /C Ex= emissions of pollutant x Q = Volumetric flow rate/volume of gas processed MW = Molecular weight of gas = SG of gas ' MW of air Xx= mass fraction of x in gas C = molar volume of ideal gas (379 scf/Ib-mol) at 60F and 1 atm Process Gas Emissions Calculations Throughput (0) 15 MMscf/yr 1712 328767 scf/hr MW 39.4 lb/lb-mot 0 04109589 MMscf/d mole % MW lbxAbmol mass fraction Ib/hr lb/yr tpy Helium 0 00000 4.0026 0.000 0.00000 0.00 0.00 0.00 CO2 3.30342 44.01 1.454 0.03690 8.57 57539.65 28.77 N2 Q00367 28.013 0.001 0.00003 0.00 40.72 0-02 methane 12.12480 16 041 1 945 0 04936 8 79 76976,48 38.49 ethane 29.66250 30.063 8.917 0.22633 40.29 352932.88 176.47 propane 39.78440 44.092 17.533 0.44500 79.21 693915.01 346.96 isobutane 3.74169 58.118 2.175 0.05519 982 86065 78 43.03 n-butane 6.51374 58.118 3.786 0.09608 17 10 149828.05 74 91 isopentane 1.39516 72.114 1.006 0.02554 4.55 39819.49 19.91 n-pentane 1.54139 72.114 1.112 0.02821 5.02 43993.06 22.00 cyclopentane 0.00000 70.13 0.000 0.00000 0 00 0.00 0.00 n-Hexane 0.52381 86.18 0.451 0.01146 2.04 17866.10 8.93 cyclohexane 0.09094 84.16 0.077 0.00194 0.35 3029.15 1.51 Other hexanes 0.30713 86.18 0.265 0.00672 1.20 10475.71 5.24 heotanes 0.21012 100 21 0.211 0 00534 0 95 8333 56 4 17 methyicyclohexane 0.08019 98.19 0.079 0.00200 0.38 3116.40 1.56 224-IMP 0.00000 114.23 0.000 0.00000 0.00 0.00 0 00 Benzene 0.04765 78.12 0.037 0.00094 017 1473.25 0/4 Toluene 0.05423 92.15 0.050 0.00127 0.23 1977.74 0,99 Ethylbenzene 0.00308, 10617 0.003 0.00008 0.01 429.52 0.06 Xylenes 0.02214 106.17 0.024 0,00060 0.11 930.15 0.47 C8+ Heavies 0.03309 114 0.038 0.00096 017 1493 12 0.75 VOC mass frac 0.681 Total VOC (Uncontrolled) 531.22 My calculated value 542.8 Operator's calculated value Notes Operator's calculated value is more conservative - moving Mole 0/0, MW, and mass fractions from Promax Simulation Emissions Stream forward with their value Site specific sampling will be required in the permit Fuel Type Desing Input Rate Requested Permitted Limit Fuel Heating Value Annual Heat Input Process Gas 3.7 MMBtu/hr 15 MMscf/yr 2157 Btu/scf 32355 MMBtu/yr Pilot Gas 0 1 MMBtu/hr 0 8 MMscf/yr 1100 Btu/scf 880 MMBtu/yr Purge Gas 0.33 MMBtu/hr 2.63 MMscf/yr 1100 Blu/scf 2893 MMBtu/yr 36128 MMBtu/yr A 98% control efficiency was approved for this flare based on an identical Overall Control 98 00% approval in permit 14WE0142 for an identical flare. KMG will follow the opeartion and maintenance manual provided by the manufacturer in order Combustion emission factor source: AP-42: Chapter 13.5 to properly operate the flare This flare shall comply with NSPS Subpart A 0.07 11b NOX/MMetu _ 0.37 Ilb CO/MMBtu 60 18, General control Device and Work Practice Requirements to ensure performance of the flare Emissions Summary Table Pollutant Uncontrolled Emission Factor Controlled Emission Factor Uncontrolled Emissions Controlled Emissions Source VOC 72373 lb/MMscf 1447.47 lb/MMscf 542,8 tpy 10.9 tpy Promax Nox 0.068 Ib/MMBTU 0.07 lb/MMBTU 1.2 tpy 1.2 tpy AP-42 CO 0.37 Ib/MMBTU 0.37 Ib/MMBTU 6.7 tpy 6.7 tpy AP-42 Benzene 98.22Ib/MMscf 1.96 lb/MMscf 1473 lb/yr 29 lb/yr Promax n-Hexane 1191,07 lb/MMscf 23.8215 lb/MMscf 17866 lb/yr 357 lb/yr Promax Toluene 131,849 lb/MMscf 2,6370 lb/MMscf 1978 lb/yr 40 lb/yr Promax Xvlenes 62.010 lb/MMscf 1.2402 lb/MMscf 930 lb/yr 19 Ib/yr Promax Ethylbenzene 8.635 lb/MMscf 0.1727 lb/MMscf 130 lb/yr 3 lb/yr Promax Regulatory Applicability AQCC Regulation 1 This source is subject to the opacity requirements for flares in Section II.A 5:'No owner or operator of a smokeless flare or other flare for the combustion of waste gases shall allow or cause emissions Into the atmosphere of any air pollutant which is in excess of 30% opacity.' 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