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HomeMy WebLinkAbout20143789.tiff CDPHE COLORADO CO 0 Department of Public Health ir Environment Dedicated to protecting and improving the health and environment of the people of Colorado Weld County - Clerk to the Board 1150 0 St PO Box 758 Greeley, CO 80632 December 2, 2014 Dear Sir or Madam: On December 3, 2014, the Air Pollution Control Division will begin a 30-day public notice period for Carrizo Oil 8 Gas, Inc. - Nelson Ranches 1-33, 4-27-1-59. 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 8 Environment APCD-SS-B1 4300 Cherry Creek Drive South Denver, Colorado 80246-1530 Attention: Clara Gonzales Regards, Clara Gonzales Public Notice Coordinator Stationary Sources Program Air Pollution Control Division Enclosure /pF COQ & sv 4300 Cherry Creek Drive S., Denver, CO 80246-1530 P 303-692-2000 www.colorado.gov/cdphe gov/cdphe :(per e o. John W. Hickenlooper, Governor I Larry Wolk,MD,MSPH, Executive Director and Chief Medical Officer i2-10 -1'-1 C8- PLRwf fit /`r// 2014-3789 CDPHE E Air Pollution Control Division CONotice of a Proposed Project or Activity Warranting Public or Comment Website Title: Carrizo Oil €t Gas, Inc. - Nelson Ranches 1-33, 4-27-1-59 - Weld County Notice Period Begins: December 3, 2014 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: Carrizo Oil Ft Gas, Inc. Facility: Nelson Ranches 1-33, 4-27-1-59 Oil and Gas Exploration and Production Facility SWSE SEC 28 T Weld County The proposed project or activity is as follows: Applicant proposes to receive a permit for the construction of an oil and gas exploration and production facility. 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 14WE0563 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 1 I AV COLORADO ,�:„7�.,.� STATE OF COLORADO o{ co� COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT r .p,, AIR POLLUTION CONTROL DIVISION .+ y ' TELEPHONE: (303)692-3150 *+'auomvs *1876* CONSTRUCTION PERMIT PERMIT NO: 14WE0563 Issuance 1 DATE ISSUED: ISSUED TO: Carrizo Oil & Gas, Inc. THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Oil and gas facility, known as the Nelson Ranches 1-33,4-27-10-59, located in the SWSE of Section 28, Township 10N, Range 59W, in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment point Description ID Six (6) 400 BBL Crude Oil Storage Tanks. Emissions from these TANKS 003 tanks are controlled by a 48" Cimarron Enclosed Flare (95% destruction efficiency). THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S.(25-7-101 et seq),TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. YOU MUST notify the Air Pollution Control Division (the Division) no later than fifteen days after issuance of this permit, by submitting a Notice of Startup form to the Division. The Notice of Startup form may be downloaded online at https://www.colorado.00v/pacific/cdphe/other-air-permitting-notices. Failure to notify the Division of startup of the permitted source is a violation of Air Quality Control Commission (AQCC) Regulation No. 3, Part B, Section III.G.1 and can result in the revocation of the permit. 2. Within one hundred and eighty days(180)after issuance of this permit,compliance with the conditions contained 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). 3. This permit shall expire if the owner or operator of the source for which this permit was issued: (i) does not commence construction/modification or operation of this source within 18 months after either,the date of issuance of this construction permit or the date AIRS ID: 123/9C901003 Page 1 of 11 Condensate Tank SM/M Version 2012-1 Depa e f li Health and Environment it Pollution Control Division on whichDolor ity uled mence as set forth in the permit application associated with this permit;(ii)discontinues construction for a period of eighteen months or more; (iii) does not complete construction within a reasonable time of the estimated completion date. The Division may grant extensions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) 4. The operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III.E.) 5. The following information about the enclosed flare shall be provided to the Division within fifteen (15)days after issuance of permit. • manufacturer • model number • serial number This information shall be included with the Notice of Startup submitted for the equipment. (Reference: Regulation No. 3, Part B, 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. EMISSION LIMITATIONS AND RECORDS 7. Emissions of air pollutants shall not exceed the following limitations(as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II.A.4) Annual Limits: Facility AIRS Tons per Year Equipment ID Point NO VOC CO Emission Type TANKS 003 --- 7.1 --- 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 compliancerecord 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. 8. The emission points in the table below shall be operated and maintained with the control equipment as listed in order to reduce emissions to less than or equal to the limits established in this permit (Reference: Regulation No.3, Part B, Section III.E.) AIRS ID: 12319C901003 Page 2 of 11 olor . Depa e f - •Ii Health and Environment it Pollution Control Division Facility AIRS Pollutants Equipment Point Control Device Controlled ID TANKS 003 48" Cimarron Enclosed Flare (95%destruction VOC efficiency) PROCESS LIMITATIONS AND RECORDS 9. 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 Equipment Point Process Parameter Annual Limit ID TANKS 003 Crude Oil Throughput 165,217 BBUyr The owner or operator shall calculate monthly process rates based on the calendar month. 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. STATE AND FEDERAL REGULATORY REQUIREMENTS 10. 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, III.E.) (State only enforceable) 11. 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. Emission control devices subject to Regulation 7, Sections XII.C.1.d or XVII.B.1.c shall have no visible emissions. (Reference: Regulation No. 1, Section II.A.1. &4.) 12. 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). 13. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) 14. The flare covered by this permit is subject to Regulation No. 7, Section XVII.B General Provisions (State only enforceable). If a flare or other combustion device is used to control emissions of volatile organic compounds to comply with Section XVII, it shall be enclosed, have no visible emissions during normal operations,and be designed so that AIRS ID: 123/9C90/003 Page 3 of 11 olor Depa e f Ii Health and Environment it Pollution Control Division an obse I o from tside of the enclosed flare or combustion device, or by other convenient means approved by the Division, determine whether it is operating properly.The operator shall comply with all applicable requirements of Section XVII. 15. The flare covered by this permit is subject to Regulation No. 7, Section XVII.B General Provisions(State only enforceable).These requirements include, but are not limited to: XVII.B.1.b If a flare or other combustion device is used to control emissions of volatile organic compounds to comply with Section XVII, it shall be enclosed,have no visible emissions during normal operations, and be designed so that an observer can, by means of visual observation from the outside of the enclosed flare or combustion device,or by other convenient means approved by the Division,determine whether it is operating properly.The operator shall comply with all applicable requirements of Section XVII. XVII.B.2.d.(ii)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. 16. The storage tanks covered by this permit are subject to Regulation 7, Section XVII.C emission control requirements. These requirements include, but are not limited to: Section XVII.C.1. Control and monitoring requirements for storage tanks XVII.C.1.b. Owners or operators of storage tanks with uncontrolled actual emissions of VOCs equal to or greater than six(6)tons per year based on a rolling twelve-month total must 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. XVII.C.1.b.(i)(b) Control requirements of Section XVII.C.1.b. must be achieved by May 1, 2015. XVII.C.1.d. Beginning May 1, 2014, or the applicable compliance date in Section XVII.C.1.b.(i), whichever comes later, owners or operators of storage tanks constructed before May 1, 2014 subject to Section XVII.C.1. must conduct audio, visual,olfactory("AVO")and additional visual inspections of the storage tank and any associated equipment (e.g. separator, air pollution control equipment, or other pressure reducing equipment)at the same frequency as liquids are loaded out from the storage tank. These inspections are not required more frequently than every seven(7)days but must be conducted at least every thirty one(31)days. Monitoring is not required for storage tanks or associated equipment that are unsafe,difficult,or inaccessible to monitor, as defined in Section XVII.C.1.e. The additional visual inspections must include, at a minimum: XVII.C.1.d.(i) Visual inspection of any thief hatch, pressure relief valve, or other access point to ensure that they are closed and properly sealed; XVII.C.1.d.(ii)Visual inspection or monitoring of the air pollution control equipment to ensure that it is operating, including that the pilot light is lit on combustion devices used as air pollution control equipment; XVII.C.1.d.(iii) If a combustion device is used, visual inspection of the auto-igniter and valves for piping of gas to the pilot light to ensure they are functioning properly; AIRS ID: 123/9O90/003 Page 4 of 11 olor- Depa en .f • di Health and Environment A it Pollution Control Division XVII.C, /is • • 'ft•s' '..- • :: tion 'I equipment to ensure that the valves for the piping from the storage tank to the air pollution control equipment are open; and XVII.C.1.d.(v) If a combustion device is used, inspection of the device for the presence or absence of smoke. If smoke is observed, either the equipment must be immediately shut-in to investigate the potential cause for smoke and perform repairs, as necessary, or EPA Method 22 must be conducted to determine whether visible emissions are present for a period of at least one (1) minute in fifteen (15) minutes. XVII.C.1.e. If storage tanks or associated equipment is unsafe, difficult, or inaccessible to monitor, the owner or operator is not required to monitor such equipment until it becomes feasible to do so. XVII.C.2. Capture and monitoring requirements for storage tanks that are fitted with air pollution control equipment as required by Sections XII.D. or XVII.C.1. XVII.C.2.a. Owners or operators of storage tanks must route all hydrocarbon emissions to air pollution control equipment, and must operate without venting hydrocarbon emissions from the thief hatch (or other access point to the tank) or pressure relief device during normal operation, unless venting is reasonably required for maintenance, gauging, or safety of personnel and equipment. Compliance must be achieved in accordance with the schedule in Section XVII.C.2.b.(ii). XVII.C.2.b. Owners or operators of storage tanks subject to the control requirements of Sections XII.D.2., XVII.C.1.a, or XVI I.C.1.b. must develop, certify, and implement a documented Storage Tank Emission Management System("STEM")plan to identify, evaluate, and employ appropriate control technologies, monitoring practices, operational practices,and/or other strategies designed to meet the requirements set forth in Section XVII.C.2.a. Owners or operators must update the STEM plan as necessary to achieve or maintain compliance. Owners or operators are not required to develop and implement STEM for storage tanks containing only stabilized liquids. The minimum elements of STEM are listed below. XVII.C.2.b.(i) STEM must include selected control technologies, monitoring practices, operational practices, and/or other strategies; procedures for evaluating ongoing storage tank emission capture performance; and monitoring in accordance with approved instrument monitoring methods following the applicable schedule in Section XVII.C.2.b.(ii) and Inspection Frequency in Table 1. XVII.C.2.b.(ii) Owners or operators must achieve the requirements of Sections XVII.C.2.a. and XVII.C.2.b. and begin implementing the required approved instrument monitoring method in accordance with the following schedule: XVII.C.2.b.(ii)(b)A storage tank constructed before May 1, 2014, must comply with the requirements of Sections XVII.C.2.a. and XVII.C.2.b. by May 1, 2015. Approved instrument monitoring method inspections must begin within ninety (90) days of the Phase-In Schedule in Table 1, or within thirty (30) days for storage tanks with uncontrolled actual VOC emissions greater than 50 tons per year. XVII.C.2.b.(ii)(d) Following the first approved instrument monitoring method inspection, owners or operators must continue conducting approved AIRS ID: 12319C90/003 Page 5 of 11 olo Depa e f li Health and Environment it Pollution Control Division Dt 't th ions i rdance with the Inspection Frequency in Table 1. Table 1 —Storage Tank Inspections Threshold: Storage Tank Approved Instrument Phase-In Schedule Uncontrolled Actual VOC Monitoring Method Emissions (tpy) Inspection Frequency > 6 and < 12 Annually January 1, 2016 > 12 and < 50 Quarterly July 1, 2015 > 50 Monthly January 1, 2015 XVII.C.2.b.(iii) Owners or operators are not required to monitor storage tanks and associated equipment that are unsafe,difficult,or inaccessible to monitor,as defined in Section XVII.C.1.e. XVII.C.2.b.(iv) STEM must include a certification by the owner or operator that the selected STEM strategy(ies) are designed to minimize emissions from storage tanks and associated equipment at the facility(ies), including thief hatches and pressure relief devices. XVII.C.3. Recordkeeping XVII.C.3. The owner or operator of each storage tank subject to Sections XII.D. or XVII.C. must maintain records of STEM, if applicable,including the plan, any updates, and the certification, and make them available to the Division upon request. In addition, for a period of two (2) years, the owner or operator must maintain records of any required monitoring and make them available to the Division upon request,including: XVII.C.3.a. The AIRS ID for the storage tank. XVI I.C.3.b.The date and duration of any period where the thief hatch,pressure relief device, or other access point are found to be venting hydrocarbon emissions, except for venting that is reasonably required for maintenance,gauging,or safety of personnel and equipment. XVII.C.3.c.The date and duration of any period where the air pollution control equipment is not operating. XVII.C.3.d. Where a combustion device is being used, the date and result of any EPA Method 22 test or investigation pursuant to Section XVII.C.1.d.(v). XVII.C.3.e. The timing of and efforts made to eliminate venting, restore operation of air pollution control equipment, and mitigate visible emissions. XVII.C.3.f. A list of equipment associated with the storage tank that is designated as unsafe, difficult, or inaccessible to monitor, as described in Section XVII.C.1.e., an explanation stating why the equipment is so designated, and the plan for monitoring such equipment. AIRS ID: 123/9C901003 Page 6 of 11 llolor Depa, en 4 • .Ii Health and Environment A A it Pollution Control Division A OPERATING & M4 Gs • N ._,.. 17. 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 Initial Testing Requirements 18. 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. 7 Section XVII.AII) Periodic Testing Requirements 19. The owner or operator shall demonstrate compliance with opacity standards, using EPA Method 22 on a weekly basis to determine the presence or absence of visible emissions as required in the Operating and Maintenance Plan. "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. 7 Section XVII.All) ADDITIONAL REQUIREMENTS 20. A revised Air Pollutant Emission Notice(APEN)shall be filed: (Reference: Regulation No. 3, Part A, II.C) 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 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 c. Whenever new control equipment is installed,or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. AIRS ID: 123/9O90/003 Page 7 of 11 Depa e f li Health and Environment it Pollution Control Division 21. Federal rDolor r a D, N )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 Parts C and D). 22. 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 majorsolely by virtue of a relaxation in any permit limitation and shall be subject to all appropriate applicable requirements of Subpart HH. (Reference: Regulation No.8,Part E) 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: 12319C901003 Page 8 of 11 Depa en f Ii Health and Environment it Pollution Control Division 28. SectionDolor re all s 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: 6/Aitv.t./if____ Christopher Kester Oil and Gas Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Issued to Carrizo Oil & Gas Inc. AIRS ID: 123/9C90/003 Page 9 of 11 Depa e f li Health and Environment it Pollution Control Division Notes to Permit HolderDolor e an . 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 No.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.coloradomov/pacific/cdohe/aocc-reqs 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. Controlle Uncontrolled d Emission Are the Emission AIRS Rate emissions Rate Point Pollutant CAS# (Ib/yr) reportable? (Ib/yr) Benzene 71432 5,052 Yes 253 n-Hexane 110543 24,305 Yes 1,215 Toluene 108883 6,237 Yes 312 003 Xylenes 1330207 1,748 Yes 87 224-TMP 540841 1,752 Yes 88 . Ethylbenzene 100414 322 Yes 16 5) The emission levels contained in this permit are based on the following emission factors: Emission Factors Emission Factors Uncontrolled Controlled (lb/BBL (Ib/BBL Source Condensate Condensate Pollutant CAS# Throughput) Throughput) VOC --- 1.72 0.086 Benzene 71432 0.031 0.0016 n-Hexane 110543 0.147 0.0074 E&P Toluene 108883 0.038 0.0019 TANKS Xylenes 1330207 0.011 0.0006 224-TMP 540841 0.011 0.0006 Ethylbenzene 100414 0.002 0.0001 AIRS ID: 12319C901003 Page 10 of 11 olor-A Depa en -f ' di Health and Environment 4 it Pollution Control Division Note: The co 5•, is f +r ps. =. I I bas •:.:*.: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/Major Source of: VOC&HAP PSD Synthetic Minor/Major Source of: VOC&HAP MACT HH Major Source Requirements: Not Applicable Area Source Requirements: Not Applicable 8) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfcepoaccess. ov/ 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 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.00v/pacific/cdphe/air-permit-self-certification AIRS ID: 123/9C90/003 Page 11 of 11 Construction Permit Application Preliminary Analysis Summary Section 1 —Applicant Information Company Name: Carrizo Oil &Gas, Inc. Permit Number: 14WE0563 Source Location: SWSE SEC 28 T10N R59W Equipment Description: Six(6)400 BBL Crude Oil Storage Tanks AIRS ID: 123-9C90-003 Date: 09/02/2014 Review Engineer Christopher Kester Control Engineer: Stefanie Rucker Section 2—Action Completed X 1s`Issuance Modification APEN Required/Permit Exempt Final Approval Transfer of Ownership APEN Exempt/Permit Exempt * If tank is a true minor source at a true minor facility, it may be granted "Final Approval"without first being issued an Initial Approval permit *Grandfathered exemption is for any tanks in service prior to December 30, 2002 Section 3—Applicant Completeness Review Was the correct APEN submitted for this source type? X Yes No Is the APEN signed with an original signature? X Yes No Was the APEN filled out completely? X Yes No Did the applicant submit all required paperwork? X Yes No Did the applicant provide ample information to determine emission rates? X Yes No If you answered "no"to any of the above, when did you mail an Information Request letter to the source? On what date was this application complete? January 24th,2014 Section 4—Source Description AIRS Point Equipment Description 003 Six(6)400 BBL Crude Oil Storage Tanks Is this a portable source? Yes X No Is this location in a non-attainment area for any criteria Yes X No pollutant? If"yes", for what pollutant? PKo CO Ozone Is this location in an attainment maintenance area for Yes X No any criteria pollutant? If"yes", for what pollutant? (Note: These pollutants are subject to minor source PM10 CO Ozone RACT per Regulation 3, Part B, Section III.D.2) Is this source located in the 8-hour ozone non- attainment region? (Note: If"yes" the provisions of Yes X No Regulation 7, Sections XII and XVII.C may apply) Page 1 Section 5—Emission Estimate Information AIRS Point Emission Factor Source 003 Weighted Average of two emission factors developed from 2 E&P Tank runs using projected annual production from each well to determine"wei ht". Did the applicant provide actual process data for the emission inventory? X Yes No Bas for Actual'Emtsst6t s wed During'this JLp I rt Repoed to tmrento ry)AIRS Point Process Consumption/Throughput/Production Data Year 003 N/A N/A Baste for Permitted Emissions(P'L 1itst AIRS Point Process Consumption/Throughput/Production 003 165217 BBLJyr Does this source use a control device? X Yes No AIRS Point Process Control Device Description % Reduction Granted 003 01 48'Cimarron Enclosed Flare 95 Point NO, VOC(tpy) CO Total HAP(Ibs/yr) Uncontrolled point 003 — 142.13 39,416 source emission rate: Controlled point 003 -- 7.11 -- 1,971 source emission rate: Section 7—Non-Criteria/Hazardous Air Pollutants Uncontrolled An Ma*mink" Controlled Emission Pollutant CAS# Emission Rate reportable? Ra{�(Iblyr) (lb/yr) Benzene 71432 5,052 Y 253 n-Hexane 110543 24,305 Y 1,215 Toluene 108833 6,237 Y 312 Xylenes 1330207 1,748 Y 87 2,2,4 TMP 540841 1,752 Y 88 Ethylbenzene 100414 322 Y 16 Note: Regulation 3, Part A, Section ll.B.3.b APEN emission reporting requirements for non-criteria air pollutants are based on potential emissions without credit for reductions achieved by control devices used by the operator. Section 8—Testing Requirements Will testing be required to show compliance with any emission rate or regulatory Yes X No standard? If"yes", complete the information listed below AIRS Point Process Pollutant Regulatory Basis Test Method Page 2 Section 9—Source Classification Is this a new previously un-permitted source? X Yes No What is this facility classification? True X Synthetic Major Minor Minor Classification relates to what programs? X Title V X PSD NA NSR MACT Is this a modification to an existing permit? Yes X No If"yes"what kind of modification? Minor Synthetic Major Minor Section 10—Public Comment Does this permit require public comment per CAQCC Regulation 3? X Yes No If"yes",for which pollutants?Why? For Reg. 3, Part B, III.C.1.a (emissions increase>25/50 tpy)? X Yes No For Reg. 3, Part B, III.C.1.c.ii (subject to MACT)? Yes No For Reg. 3, Part B, III.C.1.d (synthetic minor emission limits)? X Yes No Section 11 —Modeling Is modeling required to demonstrate compliance with National Ambient Yes X No Air Quality Standards (NAAQS)? If"yes", for which pollutants?Why? AIRS Point Section 12—Regulatory Review Regulation 1 - Particulate, Smoke, Carbon Monoxide and Sulfur Dioxide Section II.A.1 - Except as provided in paragraphs 2 through 6 below, no owner or operator of a source shall allow or cause the emission into the atmosphere of any air pollutant which is in excess of 20% opacity. This standard is based on 24 consecutive opacity readings taken at 15-second intervals for six minutes. The approved reference test method for visible emissions measurement is EPA Method 9 (40 CFR, Part 60, Appendix A(July, 003 1992)) in all subsections of Section II. A and B of this regulation. Section II.A.5-Smokeless Flare or Flares for the Combustion of Waste Gases No owner or operator of a smokeless flare or other flare for the combustion of waste gases shall allow or cause emissions into the atmosphere of any air pollutant which is in excess of 30% opacity for a period or periods aggregating more than six minutes in any sixty consecutive minutes. Regulation 2—Odor Section I.A-No person, wherever located, shall cause or allow the emission of odorous air contaminants from any single source such as to result in detectable odors which are 003 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. Requlation 3-APENs, Construction Permits, Operating Permits, PSD Part A-APEN Requirements Criteria Pollutants: For criteria pollutants, Air Pollutant Emission Notices are required for 003 each individual emission point in an attainment area with uncontrolled actual emissions of two tons per year or more of any individual criteria pollutant (pollutants are not summed)for which the area is attainment. (Applicant is required to file an APEN since emissions exceed 2 tons per year VOC) 003 Part B—Construction Permit Exemptions Applicant is permit exempt, Req 3 Section II.D.1.n but is requesting FEL's. Requlation 6-New Source Performance Standards Page 3 NSPS Kb: for storage vessels greater than 19,800 gallons after 7/23/84. 003 Is this source greater than 19,800 gallons (471 bbl)? No Is this source subject to NSPS Kb?No This point is also pre-custody transfer—not subject to Kb Regulation 7—Volatile Organ compounds XII. VOLATILE ORGANIC COMPOUND EMISSIONS FROM OIL AND GAS OPERATIONS (Applicant is not subject to the emission control requirements for condensate tanks 003 since it is located in an attainment area.) XVII.C STATEWIDE CONTROLS FOR OIL AND GAS OPERATIONS... Regulation 8—Hazardous Air Pollutants MACT EEEE: Organic Liquids Distribution Pick one: • This source is not subject to MACT EEEE because it is not located at a major 003 source of HAP. • This source is not subject to MACT EEEE because it is located at a"production field facility"as defined in 40 CFR 63.761 (located upstream of the natural gas processing plant). MACT HH Pick one: • This source is not subject to MACT HH because it is not located at a major source 003 of HAP. • This source is not subject to MACT HH because it is not a"storage vessel with the potential for flash emissions"as defined in 40 CFR 63.761 because annual • average hydrocarbon liquid will be less than 500 BBUday(182,500 BBL/yr). Section 13—Aerometric Information Retrieval System Coding Information Emission Process Pollutant/ Fugitive Emission Factor Control Point Process Description Factor CAS# (Y/N) - Source (%) (lb/BBL) Weighted Average— 1.72 VOC No Two E&P Tank Runs 95 with Projected Annual Production Weighted Average— Benzene/ Two E&P Tank Runs 0.0306 71432 N° with Projected Annual 95 Production Weighted Average— n-Hexane/ Two E&P Tank Runs 0.147 110543 N° with Projected Annual 95 Production Weighted Average— 01 E&P Crude 0.0378 Toluene/ N° Two E&P Tank Runs 95 003 Storage Tanks 108833 with Projected Annual Production Weighted Average— Xylenes/ Two E&P Tank Runs .01 006 1330207 N° with Projected Annual 95 Production Weighted Average— 0.0106 224 TMP/ No Two E&P Tank Runs 95 540841 with Projected Annual Production Weighted Average— 0.00195 Ethylbenzene No TwoE&P Tank Runs 95 /100414 with Projected Annual Production SCC 40400311 —Fixed Roof Tank,Condensate,working+breathing+flashing losses Page 4 STATE OF COLORADO 0,? c COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT AIR POLLUTION CONTROL DIVISION FQ TELEPHONE: (303)692-3150 CONSTRUCTION PERMIT PERMIT NO: 14WE0565 Issuance 1 DATE ISSUED: ISSUED TO: Carrizo Oil & Gas Inc. THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Oil and gas facility, known as the Nelson Ranches 1-33, 4-27-10-59, located in the SWSE of Section 28, Township 10N, Range 59W, in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description ID LOAD 005 Truck loadout of crude oil. Emissions from the loadout are not controlled. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S. (25-7-101 et seq), TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. YOU MUST notify the Air Pollution Control Division (the Division) no later than fifteen days after issuance of this permit, by submitting a Notice of Startup form to the Division. The Notice of Startup form may be downloaded online at https://www.colorado.nov/pacific/cdphe/other-air-permittinq-notices. 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. 2. Within one hundred and eighty days (180) after 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. (Reference: Regulation No. 3, Part B, III.G.2). AIRS ID: 12319C901005 Page 1 of 7 Condensate Loadout TM Version 2012-1 Co do p e o Public PollutionHealthand ControlEnvironment Division 3. This permit shall expire if the owner or operator of the source for which this permit was issued: (i) does not commence construction/modification or operation of this source within 18 months after either, the date of issuance of this construction permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this permit; (ii) discontinues construction for a period of eighteen months or more; (iii) does not complete construction within a reasonable time of the estimated completion date. The Division may grant extensions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) 4. The operator shall retain the permit final authorization letter issued by the Division after completion of self-certification, with the most current construction permit. This construction permit alone does not provide final authority for the operation of this source. EMISSION LIMITATIONS AND RECORDS 5. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II.A.4) Annual Limits: Facility AIRS Tons per Year Equipment Point Emission Type ID VOC LOAD 005 8.3 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. PROCESS LIMITATIONS AND RECORDS 6. This source shall be limited to the following maximum processing rates as listed below. Monthly records of the actual processing rate shall be maintained by the owner or operator and made available to the Division for inspection upon request. (Reference: Regulation 3, Part B, II.A.4) AIRS ID: 12319C90/005 Page 2 of 7 Co do p e o Public Health and Environment Air Pollution Control Division Process/Consumption Limits Facility AIRS Equipment Point Process Parameter Annual Limit ID LOAD 005 Crude Oil Loaded 165,217 BBL/yr The owner or operator shall calculate monthly process rates based on the calendar month. 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. 7. Condensate loading to truck tanks shall be conducted by submerged fill. (Reference: Regulation 3, Part B, III.E) STATE AND FEDERAL REGULATORY REQUIREMENTS 8. This source is subject to the odor requirements of Regulation No. 2. (State only enforceable) 9. 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.E): a. Hoses, couplings, and valves shall be maintained to prevent dripping, leaking, or other liquid or vapor loss during loading and unloading. b. All compartment hatches (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. c. The owner or operator shall inspect loading equipment and operations onsite at the time of inspections to monitor compliance with Condition 9 (a) and (b) above. The inspections shall occur at least monthly. Each inspection shall be documented in a log available to the Division on request. 10. 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. OPERATING & MAINTENANCE REQUIREMENTS 11. This source is not required to follow a Division-approved operating and maintenance plan. AIRS ID: 12319C901005 Page 3 of 7 Co do p e o Public PollutionHealthand Control DivisionEnvironment COMPLIANCE TESTING AND SAMPLING 12. This source is not required to comply with any testing and sampling requirements. ADDITIONAL REQUIREMENTS 13. A revised Air Pollutant Emission Notice (APEN) shall be filed: (Reference: Regulation No. 3, Part A, II.C) 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 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 c. Whenever new control equipment is installed, or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. 14. 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 No. 3 Part D). GENERAL TERMS AND CONDITIONS 15. 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. 16. 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 AIRS ID: 123/9C901005 Page 4 of 7 lip Co A do • p e ° o Public Health and Environment ll Air Pollution Control Division 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. 17. 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. 18. 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. 19. 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. 20. 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. 21. 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: gkttlff____ Christopher Kester Oil and Gas Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Issued to Carrizo Oil & Gas Inc. AIRS ID: 123/9C90/005 Page 5 of 7 Co do p e o Pueanviom Airblic PollutionH lth ControlandE r Divisionnent Notes to Permit Holder at the time of this permit issuance: 1) The permit holder is required to pay fees for the processing time for this permit. An invoice for these fees will be issued after the permit is issued. The permit holder shall pay the invoice within 30 days of receipt of the invoice. Failure to pay the invoice will result in revocation of this permit (Reference: Regulation No. 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/aocc-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 Emission Are the Controlled AIRS Rate emissions Emission Point Pollutant CAS# (Ib/yr) reportable? Rate(Ib/yr) n-Hexane 110543 1416 Yes N/A 005 Benzene 71432 298 Yes N/A Toluene 108883 361 Yes N/A 5) The emission levels contained in this permit are based on the following emission factors: Emission Factors -Uncontrolled Pollutant CAS# (lb/1000gal) Source VOC — 2.4 n-Hexane 110543 0.043 AP-42 Benzene 71432 0.052 Toluene 108883 0.204 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"S*P*M/T S=0.6 (Submerged loading: dedicated normal service) P(true vapor pressure) = 3.4 psia M (vapor molecular weight) = 50 Ib/Ib-mol T(temperature of liquid loaded)=529.67°R AIRS ID: 12319C90/005 Page 6 of 7 llCo A do 8 p e o Public Health and Environment { Air Pollution Control Division The uncontrolled non-criteria reportable air pollutant (NCRP) emission factors were calculated by multiplying the mass fraction of each NCRP in the vapors by the VOC emission factor. 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/Major Source of: VOC &HAP PSD Synthetic Minor/Major Source of: VOC&HAP 8) Full text of the Title 40, Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: http://ecfr.gpoaccess.gov/ Part 60: Standards of Performance for New Stationary Sources NSPS 60.1-End Subpart A—Subpart KKKK NSPS Part 60,Appendixes Appendix A—Appendix I Part 63: National Emission Standards for Hazardous Air Pollutants for Source Categories MACT 63.1-63.599 Subpart A—Subpart Z MACT 63.600-63.1199 Subpart AA—Subpart DDD MACT 63.1200-63.1439 Subpart EEE—Subpart PPP MACT 63.1440-63.6175 Subpart QQQ—Subpart YYYY MACT 63.6580-63.8830 Subpart ZZZZ—Subpart MMMMM MACT 63.8980-End Subpart NNNNN—Subpart X00000( 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: 123/9C90/005 Page 7 of 7 Construction Permit Application Preliminary Analysis Summary Section 1 —Applicant Information Company Name: Carrizo Oil & Gas, Inc. Permit Number: 14WE0565 Source Name: Nelson Ranches 1-33, 4-27-10-59 Source Location: SWSE SEC 28 T10N R59W Equipment Description: Crude Oil Truck Loading AIRS ID: 123-9C90-005 Review Date: Christopher Kester Review Engineer: Stefanie Rucker Section 2—Action Completed X CP1 Modification APEN Required/Permit Exempt Final Approval Transfer of Ownership APEN Exempt/Permit Exempt Section 3—Applicant Completeness Review Was the correct APEN submitted for this source type? X Yes No Is the APEN signed with an original signature? X Yes No Was the APEN filled out completely? X Yes No Did the applicant submit all required paperwork? X Yes No Did the applicant provide ample information to determine emission rates? X Yes No If you answered "no"to any of the above, when did you mail an Information Request letter to the source? On what date was this application complete? January 241°,2014 Section 4—Source Description AIRS Point Equipment Description 005 Crude Oil Truck Loading Is this a portable source? Yes X No Is this location in a non-attainment area for any criteria Yes X No pollutant? If"yes", for what pollutant? PM10 CO Ozone Is this location in an attainment maintenance area for Yes X No any criteria pollutant? If"yes", for what pollutant? (Note: These pollutants are subject to minor source PM10 CO Ozone RACT per Regulation 3, Part B, Section III.D.2) Is this source located in the 8-hour ozone non- attainment region?(Note: If"yes"the provisions of Yes X No Regulation 7, Sections XII and XVII.C may apply) Is this source located at an oil and gas exploration site? X Yes No Page 1 If yes, does this source load less than 10,000 gallons of crude oil per day on an annual average, splash fill less than 6750 bbl of condensate(hydrocarbons that have Yes X No an API gravity of 40 degrees or greater) per year or submerged fill less than 16,308 bbl of condensate per year? Is this source located at a facility that is considered a major source of hazardous air pollutant(HAP) Yes X No emissions? Will this equipment be operated in any NAAQS nonattainment area? Yes X No Does this source load gasoline into transport vehicles? Yes X No Section 5—Emission Estimate Information AIRS Point Emission Factor Source AP-42: Chapter 5.2, Equation 1 L= 12.46'S'P'M/T 005 L= loading losses in lb per 1000 gallons loaded S= Saturation Factor P=true vapor pressure of liquid loaded [psia] M =molecular weight of vapors[lb/lb-mole] T=temperature of bulk liquid loaded [deg. R] Did the applicant provide actual process data for the emission inventory? X Yes No Basis for Permitted Entissioris(Permit LirriiLsj.; . AIRS Point Process Consumption/Throughput/Production 005 165,217 BBL Crude Oil Loaded per Year Does this source use a control device? Yes X No Section 6—Emission Summa (tons per year) Point NO„ VOC CO HAP Permitted point source 005 8.32 — 1.04 emission rate: Section 7—Non-Criteria/Hazardous Air Pollutants Uncontrolled Are the emissions Controlled Emission Pollutant CAS# Emissl )Rete reportable? Rate(lb/yr) Benzene 71432 _ 300 Y NA n-Hexane 110543 1420 Y NA Toluene 108883 360 Y NA Ethylbenzene 100414 19 N NA Xylenes 1130207 102 N NA 224 TMP 540841 102 N NA Note: Regulation 3, Part A, Section ll.B.3.b APEN emission reporting requirements for non-criteria air pollutants are based on potential emissions without credit for reductions achieved by control devices used by the operator. Section 8—Testing Requirements Will testing be required to show compliance with any emission rate or regulatory Yes X No standard? Page 2 Section 9—Source Classification Is this a new previously un-permitted source? X Yes No What is this facility classification? True X Synthetic Major Minor Minor Classification relates to what programs? X Title V X PSD NA NSR MACT Is this a modification to an existing permit? Yes X No If"yes"what kind of modification? Minor Synthetic Major Minor Section 10—Public Comment Does this permit require public comment per CAQCC Regulation 3? Yes X No If"yes", for which pollutants?Why? For Reg. 3, Part B, III.C.1.a (emissions increase > 25/50 tpy)? Yes No For Reg. 3, Part B, III.C.1.c.iii (subject to MACT)? Yes No For Reg. 3, Part B, III.C.1.d (synthetic minor emission limits)? Yes No Section 11 —Modeling Is modeling required to demonstrate compliance with National Ambient Yes X No Air Quality Standards (NAAQS)? AIRS Point Section 12—Regulatory Review Regulation 1 - Particulate, Smoke, Carbon Monoxide and Sulfur Dioxide Visible emissions shall not exceed twenty percent(20%) opacity during normal operation of 005 the source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1, Section II.A.1. &4.) Regulation 2—Odor Section I.A- No person, wherever located, shall cause or allow the emission of odorous air contaminants from any single source such as to result in detectable odors which are 005 measured in excess of the following limits: For areas used predominantly for residential or commercial purposes it is a violation if odors are detected after the odorous air has been diluted with seven (7) or more volumes of odor free air. Regulation 3-APENs, Construction Permits, Operating Permits, PSD Criteria Pollutants: For criteria pollutants, Air Pollutant Emission Notices are required for each individual emission point in an attainment area with uncontrolled actual emissions of two tons per year or more of any individual criteria pollutant(pollutants are not summed)for which the area is attainment. (Applicant is required to file an APEN since emissions exceed 2 tons per year VOC) Part B—Construction Permit Exemptions Applicant is required to obtain a permit since uncontrolled VOC emissions from this 005 facility are greater than the 5.0 TPY threshold(Reg. 3, Part B, Section II.D.3.a) Part B, III.D.2 - RACT requirements for new or modified minor sourdes This section of Regulation 3 requires RACT for new or modified minor sources located in nonattainment or attainment/maintenance areas. This source is/is not located in the 8-hour ozone nonattainment area, but not the 1-hour ozone area. Since source is in attainment, RACT is not required. However, operator is using 0.6 saturation factor, which does satisfy RACT requirements. Regulation 6-New Source Performance Standards 005 No applicable subpart. This facility is not a bulk gasoline terminal. Page 3 Regulation 7—Volatile Organio'Compounds No sections apply. Per Regulation 7, Section VI.C, a terminal is defined as a petroleum liquid storage and distribution facility that has a daily average throughput of more than 005 76,000 liters of gasoline(20,000 gallons), which is loaded directly into transport vehicles. This facility is neither a terminal, nor a bulk plant per definitions in Reg 7, Section VI.C. Regulation 6—Hazardous Air Pollutants 005 None Section 13—Aerometric Information Retrieval System Coding Information Process/ Emission Emission Process Pollutant/ Fugitive Control Point Process Description throughput Factor CAS# (y/ry) Factor (%) Limit (Ib/1000gal) Source 2.39 VOC N AP-42 0 Benzene/ 0.043 AP-42 0 Truck Condensate 165217 N 01 71432 Loadout BBLJyr 0.204 n-Hexane N AP-42 0 005 /110543 0.052 Toluene/ N AP-42 0 108883 SCC 40600132: Crude Oil: Submerged Loading (Normal Service) Use if S=0.6 • Page 4 Section 14—Miscellaneous Application Notes AIRS Point 002 Truck Condensate Loadout Units Basis S 0.6 Submerged loading: dedicated normal service based on source's description/drawings P 7.25 Psia Based on extended natural gas sample OR based on EPA TANKs run M 50 Lb/lb-mole Based on extended natural gas sample OR based on EPA TANKs run T 520 Deg R Based on source's knowledge of bulk liquid temperature OR based on EPA TANKs run L Lb/10^3 gal Clarify if this value is used to calculate annual emissions or if methane/ethane are removed to represent VOC vs TOC or if a safety factor is applied OR any other relevant notes Lb/bbl AP-42: Chapter 5.2 Equation 1 L = 12.46*S*P*M/T L= loading losses in lb per 1000 gallons loaded S = Saturation Factor P =true vapor pressure of liquid loaded [psia] M = molecular weight of vapors [lb/lb-mole] T=temperature of bulk liquid loaded [deg. R] Use the loadout PA spreadsheet to calculate emission factor and emissions L 5.21Ib/10^3 gal 2.19E-01 Ib/bbl Annual requested Throughput 1443960ga1/yr Annual requested VOC emissions 75251b/yr 3.76tpy 4 Page 5 STATE OF COLORADO of-C COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT ,I AIR POLLUTION CONTROL DIVISION TELEPHONE: (303)692-3150 “.eti„,t'.; CONSTRUCTION PERMIT PERMIT NO: 14WE0566 Issuance 1 DATE ISSUED: ISSUED TO: Carrizo Oil & Gas Inc. THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Oil and gas facility, known as the Konig 2-31-11-59, located in Lot 4 of Section 31,Township 11N, Range 59W, in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS Equipment Point Description ID SEPARATOR 006 Separator controlled by an open flare. Flare has a minimum combustion efficiency of 95%. THIS PERMIT IS GRANTED SUBJECT TO ALL RULES AND REGULATIONS OF THE COLORADO AIR QUALITY CONTROL COMMISSION AND THE COLORADO AIR POLLUTION PREVENTION AND CONTROL ACT C.R.S.(25-7-101 et seq),TO THOSE GENERAL TERMS AND CONDITIONS INCLUDED IN THIS DOCUMENT AND THE FOLLOWING SPECIFIC TERMS AND CONDITIONS: REQUIREMENTS TO SELF-CERTIFY FOR FINAL AUTHORIZATION 1. YOU MUST notify the Air Pollution Control Division (the Division) no later than fifteen days after issuance of this permit, 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/downloadforms.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. 2. Within one hundred and eighty days(180)after 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. (Reference: Regulation No. 3, Part B, III.G.2). 3. This permit shall expire if the owner or operator of the source for which this permit was issued: (i)does not commence construction/modification or operation of this source within 18 months after either, the date of issuance of this construction permit or the date on which such construction or activity was scheduled to commence as set forth in the permit application associated with this permit; (ii)discontinues construction for a period of eighteen months or more; (iii) does not complete construction within a reasonable time of the AIRS ID: 123/9C90/006 Page 1 of 9 Wellhead Version 2012-1 • olo De pa e f li it PollutionHealthand Control DivisionEnvironment estimated co d T 'sio ant ions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) 4. The operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III.E.) 5. Within one hundred and eighty(180) days after issuance of this permit,the operator shall install a flow meter to monitor and record volumetric flow rate of natural gas vented from this separator.The operator shall used 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. 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. EMISSION LIMITATIONS AND RECORDS 7. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II.A.4) Annual Limits: Facility AIRS Tons per Year Emission Type Equipment ID Point NO. VOC CO yp SEPARATOR 006 3.4 59.5 18.3 Point See 'Notes to Permit Holder#4"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. The operator shall continuously monitor and record the volumetric flowrate of natural gas vented from the separator using a flow meter. The flow meter shall continuously measure flowrate and record total volumetric flow vented from the separator.The operator shall use monthly throughput records to demonstrate compliance with the process limits and to calculate emissions as described in this permit. 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. 8. The emission points in the table below shall be operated and maintained with the control equipment as listed in order to reduce emissions to less than or equal to the limits established in this permit (Reference: Regulation No.3, Part B, Section III.E.) AIRS ID: 12319C90/006 Page 2 of 9 olor Depa en .f 'Ii Health and Environment it Pollution Control Division fir, FL (�"' � Facility Pollutants Equipment Control Device ID Point Controlled Separator 006 Separator controlled by an open flare VOC and HAP PROCESS LIMITATIONS AND RECORDS 9. This source shall be limited to the following maximum processing rates as listed below. Monthly records of the throughput shall be maintained by the applicant and made available to the Division for inspection upon request. (Reference: Regulation 3, Part B, II.A.4) Process/Consumption Limits Facility AIRS Equipment Point Process Parameter Annual Limit ID Separator 006 Natural gas flaring 60.2 MMSCF/yr 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. STATE AND FEDERAL REGULATORY REQUIREMENTS 10. The permit number and AIRS ID number shall be marked on the subject equipment for ease of identification. (Reference: Regulation Number 3, Part B, III.E.) (State only enforceable) 11. Visible emissions shall not exceed twenty percent(20%)opacity during normal operation of the source. During periods of startup, process modification, or adjustment of control equipment visible emissions shall not exceed 30% opacity for more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1, Section II.A.1. &4.) 12. No owner or operator of a smokeless flare or other flare for the combustion of waste gases shall allow or cause emissions into the atmosphere of any air pollutant which is in excess of 30% opacity for a period or periods aggregating more than six minutes in any sixty consecutive minutes. (Reference: Regulation No. 1, Section II.A.5.) 13. These sources are subject to the odor requirements of Regulation No. 2. (State only enforceable) 14. The open flare covered by this permit has been approved as an alternative emissions control device under Regulation No. 7, Section XVII.B.2.e. The open flare shall 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.The operator shall comply with all applicable requirements of Section XVII. The owner/operator must equip the open flare with an operational auto-igniter by or before May 1, 2016, or after the next combustion device planned shutdown, whichever comes first. (Regulation No. 7, Section XVII.B.) AIRS ID: 123/9C90/006 Page 3 of 9 olor Depa e f Ii Health and it Pollution ControlEnvironment Division OPERATING & MAINTENANCE REQUIREMENTS 15. Upon startup of this point, the applicant shall follow the operating and maintenance (O&M) plan and record keeping format approved by the Division, in order to demonstrate compliance on an ongoing basis with the requirements of this permit. Revisions to your O&M plan are subject to Division approval prior to implementation. (Reference: Regulation No. 3, Part B, Section III.G.7.) COMPLIANCE TESTING AND SAMPLING Initial Testing Requirements 16. The owner or operator shall demonstrate compliance with opacity requirements using EPA. Method 9 to measure opacity from the flare. (Reference: Regulation No. 1,Section II.A.5). Periodic Testing Requirements 17. The owner or operator shall demonstrate compliance with opacity requirements using EPA Method 22 to measure opacity from the flare on a monthly basis. (Reference: Regulation No. 1, Section I I.A.5). 18. 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 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. ADDITIONAL REQUIREMENTS 19. A revised Air Pollutant Emission Notice(APEN)shall be filed:(Reference: Regulation No.3, Part A, II.C) a. Annually whenever a significant increase in emissions occurs as follows: For any criteria pollutant: For sources emitting less than 100 tons per year, a change in actual emissions of five (5) tons per year or more, above the level reported on the last APEN; or For any non-criteria reportable pollutant: If the emissions increase by 50%or five (5)tons per year,whichever is less, above the level reported on the last APEN submitted to the Division. b. Whenever there is a change in the owner or operator of any facility, process, or activity; or c. Whenever new control equipment is installed,or whenever a different type of control equipment replaces an existing type of control equipment; or d. Whenever a permit limitation must be modified; or e. No later than 30 days before the existing APEN expires. 20.- 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 AIRS ID: 123/9C90/006 Page 4 of 9 olor- t Depa en wf • ;.Ii Health and Environment •it Pollution Control Division commenced .- -- u�r .. :. s-.+ , ..a- ceed 4 ederal program threshold until a permit is granted. (Regulation No. 3 Part D). GENERAL TERMS AND CONDITIONS 21. 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. 22. 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. 23. This permit is issued in reliance upon the accuracy and completeness of information supplied by the applicant and is conditioned upon conduct of the activity, or construction, installation and operation of the source, in accordance with this information and with representations made by the applicant or applicant's agents. It is valid only for the equipment and operations or activity specifically identified on the permit. 24. 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. 25. Each and every condition of this permit is a material part hereof and is not severable. Any challenge to or appeal of a condition hereof shall constitute a rejection of the entire permit and upon such occurrence,this permit shall be deemed denied ab initio. This permit may be revoked at any time prior to self-certification and final authorization by the Air Pollution Control Division (APCD) on grounds set forth in the Colorado Air Quality Control Act and regulations of the Air Quality Control Commission (AQCC), including failure to meet any express term or condition of the permit. If the Division denies a permit, conditions imposed upon a permit are contested by the applicant, or the Division revokes a permit,the applicant or owner or operator of a source may request a hearing before the AQCC for review of the Division's action. 26. 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. 27. 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. AIRS ID: 123/9090/006 Page 5 of 9 RoloAe. F f li and Environment it PollutionHealth Control Division By: Christopher Kester Oil and Gas Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Issued to: Carrizo Oil & Gas, Inc. AIRS ID: 12319C90/006 Page 6 of 9 olor ,, Depa en i ..f .h '`Health and Environment •it Pollution Control Division =°t Notes to Permit Holder: 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 No. 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 permittee providing there is no exceedance of any specific emission control regulation or any ambient air quality standard. A revised air pollution emission notice (APEN) and application form must be submitted with a request for a permit revision. 3) This source is subject to the Common Provisions Regulation Part II, Subpart E, Affirmative Defense Provision for Excess Emissions During Malfunctions. The permittee shall notify the Division of any malfunction condition which causes a violation of any emission limit or limits stated in this permit as soon as possible, but no later than noon of the next working day, followed by written notice to the Division addressing all of the criteria set forth in Part II E.1 of the Common Provisions Regulation. See: http://www.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 Point Pollutant CAS# (lb/yr) reportable? Rate(Ib/yr) Benzene 71432 10880 Yes 540 Toluene 108883 8880 Yes 440 006 Xylenes 1130207 2880 Yes 140 n-Hexane 110543 62260 Yes 3420 Ethylbenzene 100414 1080 Yes 60 5) The emission levels contained in this permit are based on the following emission factors: Weight Emission Emission CAS# Pollutant Fraction of Factors Factors Source Gas (%) Uncontrolled Controlled NOx - 0.068 --- AP-42 lb/MMbtu __ 0.370 Ib/MMBtu VOC 26.7 24.05 1.203 Engineering lb/MMBtu lb/MMBtu Calculation 71432 Benzene 0.0804 180.63 9.032 Engineering lb/MMscf lb/MMscf Calculation 108883 Toluene 0.0606 147.33 7.367 Engineering Ib/MMscf lb/MMscf Calculation AIRS ID: 123/9C90/006 Page 7 of 9 olo Depa e THealth and Environment Pollution Control Division In CAS# Pollutant Fraction of Factors Factors Source Gas(%) Uncontrolled Controlled 1330207 47.90 2.395 Engineering Xylenes 0.0171 lb/MMscf lb/MMscf Calculation 1133.8 56.69 Engineering 110543 n-Hexane 0.4784 lb/MMscf lb/MMscf Calculation 17.92 0.896 Engineering 100414 Ethylbenzene 0.0064 Ib/MMscf lb/MMscf Calculation Note: The uncontrolled VOC and HAP emissions for this point were calculated using a weighted average of two gas sample collected from the Nelson Ranches 1-33 and 4-27 wells on December 27,2013.The controlled VOC and HAP emissions factors for point 006 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/Major Source of: VOC and HAP PSD or NANSR Synthetic Minor/Major Source of: VOC and HAP MACT HH Not Applicable 8) Full text of the Title 40,Protection of Environment Electronic Code of Federal Regulations can be found at the website listed below: htto://ecf r.a poaccess.o ov/ 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 7777-Subpart MMMMM MACT 63.8980-End Subpart NNNNN—Subpart XXXXXX AIRS ID: 123/9C90/006 Page 8 of 9 olor- Depa en f 'Ii Health and Environment it 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: 123/9C90/006 Page 9 of 9 Produced Natural Gas Venting/Flaring Preliminary Marysis Colorado Department of Public Health and Enwnnment Air Pollution Control Division Preliminary Alanlysis SEPARATOR 123-9C90-006 Attainment Status Division Intonation PM10 Attainment Engineer: Pester PM2 5 Attainment Control Engineer: Stefanie Rucker , 50x Attainment Renew Oate. 09/03/2014 NOx Attainment Application Date_ 014412014 VOC Attainment Facili Infomation CO Attainment 4WE066o Count X 123 Weld AIRs Facile Y 9C90 Point% 006 acil pulpmentle SEPARATOR Comas Name: arrao i as Inc SourrcecLocatan. 1 l 21'111 Elevation(feet)52'.2 New Permit Modicalion ADEN X (CPI) (Issuance Of RetuRedlPermll Transfer 0l APEN Ownership ExempwPermd Notes Equipment Description This source vents natural gas from: a well head separator Emissions from this source are muted lB an opeMlame fare Natural gas vaMing from a well head separator Emissions from this source are fouled Ill an open-fame hare. 55m On Celcuftpn Method EPA Emission Inventory Improvement Program Publication Volume II,Chapter 10•Displacement Equation(104-3) Ex=emissions of pollutant x 0=Volumetre lbw mtelvolume of gas processed MW=Molecular weigh of gas=SG of gas'MW of as Xx=mass fraction of x in gas C=molar volume of ideal gas(379 scl/Ibmol)at60F and 1 atm Throughput(0) B02 MMsc1M I 0072.1 tots I 5.11 MMsc9mo I MW 29290 lb/lb-mot0001 MMsclla mole% 'MW Iho bT dir bmol mass traction E 1r I Helium 001 40026 0000 0000 Helium 0064 CO2 2.41 44,01 1,061 0.036 CO2 19.2 180471 N2 099 20013 0277 0009 N2 50 44051 meths. 57 45 16.041 9.216 0 315 methane 187.1 1483790 ethane 2 0 00 3 13905 33 727 0.127 ethane 676 592050 propse 133425 4.092 50830 0201 propane 10.7 934446 sobutane 15636 58.118 09087 0.031 iwbutse 165 144342 nbutae S9bb he 118 340(2 0.118 n-buMn b20 504/44, rsopentane 1.3099 72114 09446 0032 pentane 171 150043 nmentane 24 m 19493 /2114 1 4/ 004fi 242 211851 0.1703 70.13 0-1250 0004 23 19062 n-Hexane 04784 138.18 04123 0.014 75 65407 Mbhexane 01301 8416 01102 0.004 cyclone/me 20 17499 Other homes 08266 4610 07120 0024 Oilier hexanes 129 1131£1. heptnes 04728 10021 04738 0016 heotales 8.6 75257 methiecwb 0 0 thsk hemne 0.1095 98.19 1075 004 mg bhexse 1.9 17078 224-TMP 00003 11423 00003 0000 224-TMP 00 54 Benzene 0004 70.12 00658 0002 Benzene 12 10423 Toluene 00006 92.15 00558 0002 Toluene 10 8870 Ehrylbenaene 00064 10417 00088 0000 EMNbmame 0.1 1079 X4enes 00171 105.17 0.0182 0.001 xysnes 0 3 2084 Ce.Heaves 02983 8026 03834 0013 CB.Hearcs 70 60098 999532 VOC mass fraction. 05124 Total VOO Emissions(Uncontrolled) 29290 annual lint assuming 95%control Notes month/Flint assuming 95%control ORM.) Mole%.MW.and mass 0ec0ons horn Nelwn Ranches 1.33.4.27-10-59 pas anthems I calculated the average MW of Ca-hazed on tie avnage MW on the analysis ter Neoae. Flaring Information Fm Desenplion Mare to combust produced gas until pipeline is available attars wellhead Merit/ Manufacturer TOO Model Number TOO Oosl HeigV Tao Gas HeatingValue 1620.2 Btelscl MMEitu Throughput 989206a MMBtWyr Combustion emission factor source AP-42 Chapter 13.5 3336'tpYPDX I 1030Itp/CO lb MBIu Emissions Summary 336 tpy NOX Uncontrolled/PTE 13.30 toy CO 1191 985 toy VOC Controlled 59599 tpv VOC Uncontrolled Total ScenarioA Controlled llbtys) Reportable? Total(INyel Benzene 10423 Yes 521 Toluene 8070 Yes 004__. Ethvlhetene 1079 Yes 54 Xylenes 2804 Yes 144 n-hexane 65487 Yes 3274 224-TMP 54 No 3 Regulatory Applicability AOCC Remtla4on 1 Prodced Natural Ges Venting/Flenng Prelsne.ry Mab!'e Colorado OepaNmnl of Public HUM and Ertmmerd Air Pollution Control Orson Tee sown is slgMt the opacity requirements fur Porte in BMcn I1A9:'No owner or operator of a smwen Pore or other Pon forth.combustion of wane gases Mall'Now or sow emissions Tito the O n.ohai of env H pollutant which th e even of 30%awes.' AOCC Relate 0 Section LA.ppnen to eat em"vcn souns'No perm;weather"sated.shall pew or Slow the emission of odorous at contaminants hcm any Sege source wish ne reed in delectable W.Sikh at.maasued in • M of the/Wowing Irmo:For areas used predominantly for readmitted of commercial puposn tea 'boom to-Mrs en deeded after the odwws ea has teen diluted wM sawn(71or mom volumes doe. AO ab' AOCC R.Wat1on 3 M APEN'e rewind for stemma* area because urcoroo ed VOC emissions weed no P HA tonAewr war ere forthesa all A permit o mooed rewired for Ne wall because dcWNOYd VOL emissions Lomtle Molly mwd five tons per year In an ahaMaM eras. Part B: !meted n..noaernent 8adbn 19.03(Minor Soot.RACTfbxow ilonot oath e a nawtesanenl are.. A public canner' Public Comment Required mired? 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