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Home My WebLink About20140083.tiff STATE OF COLORADO John W.Hickenlooper,Governor Larry Wolk,MD,MSPH o 0. • °P Executive Director and Chief Medical Officer , Dedicated to protecting and improving the health and environment of the people of Colorado I t •', 4300 Cherry Creek Dr.S. Laboratory Services Division • -'"" � Denver,Colorado 80246-1530 8100 Lowry Blvd. /an Phone(303)692-2000 Denver,Colorado 80230-6928 Colorado Department Located in Glendale,Colorado (303)692-3090 ov/cd ne of Public Health www.colorado.gov/cdphe P and Environment Weld County Clerk& Recorder RECEIVED 1402 N 17th Ave Greeley, CO 80631 JAN - 8 23:'i January 3, 2014 WELD COUNTY ry COMMISSIO?lEc Dear Sir or Madam: On January 7, 2014,the Air Pollution Control Division will publish a public notice for Kerr-McGee Gathering LLC—Central Oil Stabilization Facility, in the The Greeley Tribune. 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 date the public notice is published. Please send any comment regarding this public notice to the address below. Colorado Dept. of Public Health&Environment APCD-SS-B 4300 Cherry Creek Drive South Denver,Colorado 80246-1530 Attention: Clara Gonzales Regards, r Clara Gonzales Public Notice Coordinator Stationary Sources Program Air Pollution Control Division Enclosure Pi .w;(. I&u4'e)/3- N t c6 1 l 4 2014-0083 I /12-21H STATE OF COLORADO John W.Hickenlooper,Governor Larry Wolk,MD,MSPH of.cozd-Th Executive Director and Chief Medical Officer Fed \ Dedicated to protecting and improving improvrng the health and environment of the people of Colorado I/ • S 4300 Cherry Creek Dr,S. Laboratory Services Division - Denver,Colorado 80246-1530 8100 Lowry Blvd. Phone(303)692-2000 Denver,Colorado 80230-6928 Colorado Department Located in Glendale,Colorado (303)692-3090 of Public Health www.colorado.gov/cdphe and Environment Website Title: Kerr-McGee Gathering LLC—Central Oil Stabilization Facility—Weld County Released To: The Greeley Tribune On: January 3, 2014 Published: January 7, 2014 PUBLIC NOTICE OF A PROPOSED PROJECT OR ACTIVITY WARRANTING PUBLIC COMMENT 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 Gathering LLC Facility: Central Oil Stabilization Facility Oil gathering and stabilization facility. Section 24 T3N R65W Weld County The proposed project or activity is as follows: Kerr-McGee will be constructing a facility which will receive and stabilize oil from wellhead sites. 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.I.a (25 tpy in a non-attainment area and/or 50 tpy in an attainment area) 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 13WE2236 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 www.colorado.gov/cdphe/AirPublicNotices 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: Peter Armington Colorado Department of Public Health and Environment 4300 Cherry Creek Drive South, APCD-SS-B 1 Denver, Colorado 80246-1530 cdphe.commentsapcd@state.co.us 0 g " STATE OF COLORADO OF CO COLORADO DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT e" AIR POLLUTION CONTROL DIVISION TELEPHONE: (303)692-3150 - .� .} •1876 CONSTRUCTION PERMIT PERMIT NO: 13WE2236 Issuance 1 DATE ISSUED: ISSUED TO: Kerr-McGee Gathering LLC THE SOURCE TO WHICH THIS PERMIT APPLIES IS DESCRIBED AND LOCATED AS FOLLOWS: Oil and gas facility, known as the Central Oil Stabilization Facility, located in Section 24, Township 3N, Range 65W, in Weld County, Colorado. THE SPECIFIC EQUIPMENT OR ACTIVITY SUBJECT TO THIS PERMIT INCLUDES THE FOLLOWING: Facility AIRS • Equipment Point Description ID TK1, TK2 001 Two (2) 250,000 BBL internal floating roof storage tanks used to store condensate. FUG 002 Equipment leaks (fugitive VOCs) from a natural gas exploration and production facility. One (1) maximum design rated up to 9.9 MMBTU/hr, natural gas- H1 003 fired heater(KM South-Tex Treaters JB3G-100, serial number: TBD) for oil stabilization. Emissions from this unit are not controlled. One (1) maximum design rated up to 9.9 MMBTU/hr, natural gas- H2 004 fired heater (KM South-Tex Treaters JB3G-100, serial number: TBD) for oil stabilization. Emissions from this unit are not controlled. One (1) maximum design rated up to 9.9 MMBTU/hr, natural gas- H3 005 fired heater(KM South-Tex Treaters JB3G-100, serial number: TBD) for oil stabilization. Emissions from this unit are not controlled. One (1) maximum design rated up to 9.9 MMBTU/hr, natural gas- H4 006 fired heater(KM South-Tex Treaters JB3G-100, serial number: TBD) for oil stabilization. Emissions from this unit are not controlled. One (1) maximum design rated up to 9.9 MMBTU/hr, natural gas- H5 007 fired heater (KM South-Tex Treaters JB3G-100, serial number: TBD) for oil stabilization. Emissions from this unit are not controlled. AIRS ID: 123/9B7D Page 1 of 13 :olora 1 .Depat nenm of PIicHealth and Environment 'air Pollution Control Division THIS PERMIT IS GRA _r.10..,..,(:JESTCAUSULESAND 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 commencement of operation, 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 commencement of operation, 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; (Vi) does not complete construction within a reasonable time of the estimated completion date. The Division may grant extensions of the deadline per Regulation No. 3, Part B, III.F.4.b. (Reference: Regulation No. 3, Part B, III.F.4.) 4. The operator shall complete all initial compliance testing and sampling as required in this permit and submit the results to the Division as part of the self-certification process. (Reference: Regulation No. 3, Part B, Section III.E.) 5. The operator shall retain the permit final authorization letter issued by the Division, after completion of self-certification,with the most current construction permit. This construction permit alone does not provide final authority for the operation of this source. EMISSION LIMITATIONS AND RECORDS 6. Emissions of air pollutants shall not exceed the following limitations (as calculated in the Division's preliminary analysis). (Reference: Regulation No. 3, Part B, Section II.A.4) Monthly Limits: Facility AIRS Pounds per Month Emission Type VOC CO Equipment ID Point NO, TK1, TK2 001 --- 1123 --- Point FUG 002 --- 4654 --- Fugitives H1 003 272 --- 544 Point 112 004 272 --- 544 Point AIRS ID: 123/9B7D Page 2 of 13 olora3Depai,nenuf P �IiHealth and Environment �4ir Pollution Control Division rj W _ _. H3 U�05 ' — - 44 Point 114 006 272 --- 544 Point H5 007 272 --- ' 544 Point (Note: Monthly limits are based on a 31-day month.) The owner or operator shall calculate monthly emissions based on the calendar month. Facility-wide emissions of each individual hazardous air pollutant shall be less than 1,359 lb/month. Facility-wide emissions of total hazardous air pollutants shall be less than 3,398 lb/month. Annual Limits: Facility AIRS Tons per Year Equipment ID Point NO VOC CO Emission Type TK1, TK2 001 --- 6.7 --- Point FUG 002 --- 27.4 --- Fugitive H1 003 1.6 --- 3.2 Point H2 004 1.6 --- 3.2 Point H3 005 1.6 --- 3.2 Point H4 006 1.6 --- 3.2 Point H5 007 1.6 --- 3.2 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. During the first twelve (12) months of operation, compliance with both the monthly and annual emission limitations is required. After the first twelve (12) months of operation, compliance with only the annual limitation is required. Compliance with the annual 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 emissions each month and keep a compliance record on site or at a local field office with site responsibility for Division review. 7. Point 001: Compliance with the emission limits in this permit shall be demonstrated by running the EPA Tanks model version 4.0.9 or higher on a monthly basis using recorded throughput. 8. Point 002:The operator shall calculate actual emissions from this emissions point based on representative component counts for the facility with the most recent gas analysis, as required in the Compliance Testing and Sampling section of this permit. The operator shall maintain records of the results of component counts and sampling events used to calculate AIRS ID: 123/9B7D Page 3 of 13 ' olora i`M Depat nen of ', .Iic!Health and Environment fir Pollution Control Division tc actual emissiort ,and the testes#. atrvthese counts and events were completed. These records shall be provided to the Division upon request. 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 Annual Monthly Limit Equipment Point Process Parameter Limit (31 days) ID 54,750,000 4,650,000 TK1, TK2 001 Condensate throughput BBL/yr BBL/month 78.5 6.7 H1 003 Natural Gas Consumption MMscf/yr MMscf/month 78.5 6.7 H2 004 Natural Gas Consumption MMscf/yr MMscf/month H3 005 Natural Gas Consumption 78.5 6.7 MMscf/yr MMscf/month 78.5 6.7 H4 006 Natural Gas Consumption MMscf/yr MMscf/month 78.5 6.7 H5 007 Natural Gas Consumption MMscf/yr MMscf/month The owner or operator shall calculate monthly process rates based on the calendar month. During the first twelve (12) months of operation, compliance with both the monthly and annual throughput limitations is required. After the first twelve (12) months of operation, compliance with only the annual limitation is 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. 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. (Reference: Regulation No. 1, Section II.A.1. &4.) 12. This source is subject to the odor requirements of Regulation No.2.(State only enforceable) 13. Point 001: This source is subject to the New Source Performance Standards requirements of Regulation No. 6, Part A, Subpart Kb, Standards of Performance for Volatile Organic AIRS ID: 123/9B7D Page 4 of 13 =:olora:r Depar :nen?8f Pcblic'rHealth and Environment ;Air Pollution Control Division Q • Liquid Storage,-�x r foruca.arz,uct' �.astruct r modification commenced after July 23, 1984, including, but not limited to, the following: a. At all times, including periods of start-up, shutdown,and malfunction,the facility and control equipment shall, to the extent practicable, be maintained and operated in a manner consistent with good air pollution control practices for minimizing emissions. Determination of whether or not acceptable operating and maintenance procedures are being used will be based on information available to the Division, which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedures, and inspection of the source. (Reference: Regulation No. 6, Part A. General Provisions from 40 CFR 60.11 b. No article, machine, equipment or process shall be used to conceal an emission which would otherwise constitute a violation of an applicable standard. Such concealment includes, but is not limited to, the use of gaseous diluents to achieve compliance with an opacity standard or with a standard which is based on the concentration of a pollutant in the gases discharged to the atmosphere. (§ 60.12) c. Written notification of construction and initial startup dates shall be submitted to the Division as required under § 60.7. d. Records of startups, shutdowns, and malfunctions shall be maintained, as required under§ 60.7. e. Written notification of opacity observation or monitor demonstrations shall be submitted to the Division as required under§ 60.7. f. Excess Emission and Monitoring System Performance Reports shall be submitted as required under§ 60.7. g. Performance tests shall be conducted as required under§ 60.8. h. Compliance with opacity standards shall be demonstrated according to § 60.11. 14 Point 002:To satisfy RACT,this facility shall follow the New Source Performance Standards requirements of Regulation No. 6, Part A, Subpart KKK, Standards of Performance for Onshore Natural Gas Processing Plants including, but not limited to, the following: • 40 CFR, Part 60, Subpart A—General Provisions • §60.632 Standards o (a)-Each owner or operator subject to the provisions of this subpart shall comply with the requirements of § 60.482-1 (a), (b), and (d) and 60.482-2 through 60.482-10, except as provided in §60.633, as soon as practicable, but no later than 180 days after initial startup. o (b) - An owner or operator may elect to comply with the requirements of §60.483-1 and §60.483-2. o (d) Each owner or operator subject to the provisions of this subpart shall comply with the provisions of§60.485 except as provided in §60.633(f)of this subpart. o (e) Each owner or operator subject to the provisions of this subpart shall comply with the provisions of §§60.486 and 60.487 except as provided in §§60.633, 60.635, and 60.636 of this subpart. • §60.633 Exceptions o (a) Each owner or operator subject to the provisions of this subpart may comply with the following exceptions to the provisions of subpart W. AIRS ID: 123/9B7D Page 5 of 13 %.,z, tolor Depanent 6f • .IiHealth and Environment =e 1 :Air Pollution Control Division o (b)( «r. pregaurcirrelief device iri-gas/vapaservice may be monitored quarterly and within 5 days after each pressure release to detect leaks by the methods specified in §60.485(b) except as provided in §60.632(c), paragraph (b)(4) of this section, and §60.482-4 (a)through (c) of subpart VV. • (2) If an instrument reading of 10,000 ppm or greater is measured,a leak is detected. • (3)0)When a leak is detected, it shall be repaired as soon as practicable, but no later than 15 calendar days after it is detected, except as provided in §60.482-9. • (ii)A first attempt at repair shall be made no later than 5 calendar days after each leak is detected. o (c)Sampling connection systems are exempt from the requirements of§60.482- 5. • §60.635 Recordkeeping o (a) Each owner or operator subject to the provisions of this subpart shall comply with the requirements of paragraphs (b) and (c) of this section in addition to the requirements of§60.486. o (b) The following recordkeeping requirements shall apply to pressure relief devices subject to the requirements of§60.633(b)(1) of this subpart. • (1) When each leak is detected as specified in §60.633(b)(2), a weatherproof and readily visible identification,marked with the equipment identification number, shall be attached to the leaking equipment. The identification on the pressure relief device may be removed after it has been repaired. • (2) When each leak is detected as specified in §60.633(b)(2), the following information shall be recorded in a log and shall be kept for 2 years in a readily accessible location: • (i) The instrument and operator identification numbers and the equipment identification number. • (ii)The date the leak was detected and the dates of each attempt to repair the leak. • (iii) Repair methods applied in each attempt to repair the leak. • (iv) "Above 10,000 ppm" if the maximum instrument reading measured by the methods specified in paragraph (a) of this section after each repair attempt is 10,000 ppm or greater. • (v) "Repair delayed" and the reason for the delay if a leak is not repaired within 15 calendar days after discovery of the leak. • (vi)The signature of the owner or operator(or designate)whose decision it was that repair could not be effected without a process shutdown. • (vii)The expected date of successful repair of the leak if a leak is not repaired within 15 days. • (viii) Dates of process unit shutdowns that occur while the equipment is unrepaired. • (ix) The date of successful repair of the leak. AIRS ID: 123/9B7D Page 6 of 13 3olorayr Depatnenr of Ptlic Health and Environment • Air Pollution Control Division a a 4, =sN 1A'tist,of identification nu ®+ ,.- for equipment that are designated for no detectable emissions under the provisions of §60.482-4(a). The designation of equipment subject to the provisions of §60.482-4(a) shall be signed by the owner or operator. • §60.636 Reporting Requirements o (a) Each owner or operator subject to the provisions of this subpart shall comply with the requirements of paragraphs (b)and (c) of this section in addition to the requirements of§60.487. o (b) An owner or operator shall include the following information in the initial semiannual report in addition to the information required in §60.487(b) (1)—(4): Number of pressure relief devices subject to the requirements of §60.633(b) except for those pressure relief devices designated for no detectable emissions under the provisions of §60.482-4(a) and those pressure relief devices complying with §60.482-4(c). o (c)An owner or operator shall include the following information in all semiannual reports in addition to the information required in §60.487(c)(2) (i)through (vi): • (1) Number of pressure relief devices for which leaks were detected as required in §60.633(b)(2) and • • (2) Number of pressure relief devices for which leaks were not repaired as required in §60.633(b)(3). 15. Points 003-007: These units are subject to the Particulate Matter and Sulfur Dioxide Emission Regulations of Regulation 1 including, but not limited to, the following: a. No owner or operator shall cause or permit to be emitted into the atmosphere from any fuel-burning equipment particulate matter in the flue gases which exceeds the following (Regulation 1, Section III.A.1): j (i) For fuel burning equipment with designed heat inputs greater than 1x106 BTU per hour, but less than or equal to 500x106 BTU per hour, the following equation will be used to determine the allowable particulate emission limitation. PE=0.5(FI)a26 Where: PE = Particulate Emission in Pounds per million BTU heat input. Fl = Fuel Input in Million BTU per hour. b. Sources of sulfur dioxide shall not emit sulfur dioxide in excess of the following limitations. (Heat input rates shall be the manufacturer's guaranteed maximum heat input rates). (Regulation 1, Section VI.B) (i) Limit emissions to not more than two (2) tons per day of sulfur dioxide (Regulation 1, Section VI.B.5.a) 16. Points 003-007: Particulate emissions shall be limited as per: Regulation 6, Part B, II.C.2. where: PE=0.5*(F/y°26 Where: AIRS ID: 123/9B7D Page 7 of 13 olora- Depar_nen cf PIicHealth and Environment ;Air Pollution Control Division tt� a PE = .,„• ...1 °a 'pa late emissionsJa pads perailion Btu heat input Fl = fuel input in million Btu per hour OPERATING & MAINTENANCE REQUIREMENTS 17. Point 002: 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. Point 002:Within one hundred and eighty days(180)after commencement of operation,the owner or operator shall complete the initial extended gas analysis of gas samples that are representative of volatile organic compound (VOC)and hazardous air pollutants(HAP)that may be released as fugitive emissions. This extended gas analysis shall be used in the compliance demonstration as required in the Emission Limits and Records section of this permit. The operator shall submit the results of the gas analysis and emission calculations to the Division as part of the self-certification process to ensure compliance with emissions limits. 19. Point 002:Within one hundred and eighty days(180)after commencement of operation,the operator shall complete a hard count of components at the source and establish the number of components that are operated in "heavy liquid service", "light liquid service", "water/oil service" and "gas service". The operator shall submit the results to the Division as part of the self-certification process to ensure compliance with emissions limits. Periodic Testing Requirements 20. Point 002: On an annual basis, the owner or operator shall complete an extended gas analysis of gas samples that are representative of volatile organic compounds (VOC) and hazardous air pollutants (HAP)that may be released as fugitive emissions. This extended gas analysis shall be used in the compliance demonstration as required in the Emission Limits and Records section of this permit. 21. Point 002:This facility is subject to the leak detection and repair(LDAR)requirements of 40 C.F.R Part 60, Subpart KKK. ADDITIONAL REQUIREMENTS 22. 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 volatile organic compounds (VOC) and nitrogen oxides sources (NO,)in ozone nonattainment areas emitting less than 100 tons of V0C or N0,a per year, a AIRS ID: 123/9B7D Page 8 of 13 ,olor Depar nenf 6f PtblicHealth and Environment "t" Errit Air Pollution Control Division if _ Chang t ht,a ,t nual aftal ifiliations ajiga : ton a-, , ar 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 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. 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 AIRS ID: 123/9B7D Page 9 of 13 3 45, color :Depar tent of Pxblic`Health and Environment Air Pollution Control Division express term ., -nditlon dike raga If th#Division denies apermit, 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. 28. 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. 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: Peter Armington Permit Engineer Permit History Issuance Date Description Issuance 1 This Issuance Issued to Kerr-McGee Gathering LLC AIRS ID: 123/9B7D Page 10 of 13 olorDepatnen of liHealth and Environment _ ta, ' .;,. it Pollution Control Division Notes to Permit Holder at'tii'`time of'fttrtpernan ' 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: http://www.coiorado qov/cs/Satellite?c Document C&child_gagename=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# BIN (Ib/yr) reportable? Rate (lb/yr) Benzene 71432 A 2,182 Yes 931 Toluene 108883 C 3,447 Yes 1,479 002 Ethylbenzene 100414 C 439 No 189 Xylenes 1330207 C 2,597 Yes 1111 n-Hexane 110543 C 8,267 Yes 3495 5) The emission levels contained in this permit are based on the following emission factors: Point 001: The emission levels contained in this permit were calculated using EPA Tanks 4.0.9d and assuming the full 54,750,000 bbl/yr throughput passes through each tank. HAP emissions were calculated by multiplying the HAP weight fraction of the oil by the VOC emission rate. Point 002: WOil Component Gas Service Heavy Oil Light Oil Service Connectors 7328 0 4026 856 Flanges 861 0 1338 68 Open-ended Lines 0 0 0 0 Pump Seals 0 0 21 0 Valves 1921 0 1206 215 AIRS ID: 123/9B7D Page 11 of 13 to m olora_.1 .Depae ment of Pblid Health and Environment 7,1 Air Pollution Control Division I Other* _ — 4 0 0 VOC Content(wt. 0.2310 1.0000 0.9960 0.5770 fraction) Benzene Content(wt. 0.0004 0.0000 0.0250 0.0000 • fraction) Toluene Content(wt. 0.0004 0.0000 0.0400 0.0024 fraction) Ethylbenzene(wt. 0.0001 0.0000 0.0050 0.0015 fraction) Xylenes Content(wt. 0.0004 0.0000 0.0300 0.0001 fraction) n-hexane Content(wt. 0.0032 0.0000 0.0900 0.0006 fraction) *Other equipment type includes compressors, pressure relief valves, relief valves, diaphragms, drains, dump arms, hatches, instrument meters, polish rods and vents TOC Emission Factors (kg/hr-component): Component Gas Service Heavy Oil Light Oil Water/Oil Service Connectors 2.0E-04 7.5E-06 2.1E-04 1.1E-04 Flanges 3.9E-04 3.9E-07 1.1E-04 2.9E-06 Open-ended Lines 2.0E-03 1.4E-04 1.4E-03 2.5E-04 Pump Seals 2.4E-03 NA 1.3E-02 2.4E-05 Valves 4.5E-03 8.4E-06 2.5E-03 9.8E-05 Other 8.8E-03 3.2E-05 7.5E-03 1.4E-02 Source: EPA-453/R95-017 VOC and HAP concentrations are estimated because this facility will be accepting oil from multiple wells. Points 003-007: Fuel consumption was calculated using a rating of 11.85 MMBTU/hr(85%efficiency)and a HHV of 1300 BTU/scf. Emissions were calculated using the following factors: Emission Factors CAS# Pollutant Uncontrolled Source NOx 0.03Ib/MMBTU Manufacturer CO 0.061 lb/MMBTU Manufacturer AP-42, Table 1.4-2 (adjusted VOC 5.6 lb/MMscf to 1300 BTU/scf and 0.40 VOC weight fraction) AP-42, Table 1.4-2 (adjusted PM(total) 7.6 lb/MMscf to 1300 BTU/scf and 0.40 VOC weight fraction) 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 AIRS ID: 123/9B7D Page 12 of 13 • a I "v, - ,olor*Depafnen of P ?lieHealth and Environment Air Pollution Control Division shall be submitted tats to aWciays before thef*,-yeffterm exares. 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 Major Source of: VOC PSD Synthetic Major Source of: VOC MACT HH 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:_ eci'r.epoaccess. ? 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) An Oil and Gas Industry Construction Permit Self-Certification Form is included with this permit packet. Please use this form to complete the self-certification requirements as specified in the permit conditions. Further guidance on self-certification can be found on our website at: www-colorado.qov/cdphe/oilgassermits AIRS ID: 123/9B7D Page 13 of 13 \agG/\E: 3saos2i \ / ` \a"a\je: xxxxx\ ' § / : ,,,, , , ,,,,,,,,, , , : _ {( /\\\\\\\ \\\\\\ \ 2 / ti i4 a 2 . .1.,..,,,,.__,: 0050000, : M, : _ !| ' - \ ( — } Br . \\\\\\\ \\\\\\\ 1 ii 0 gl _ . °'"*— . �� . : $ © ° \e9a/g6: xxxxx§ \o : \ : T. ` \ /oGs4Ng ggg © t / ) . :. , . . . E I - _ ! g \ass6ax: ssxxog ; c : - ; \osx\\x\ ssaas\ \ \\\} } / I 22 / } z r , . _ e .2 8 / , a o �, ��, ��66_, \OS( ` g ! f . , . , ,; : ! /, » \ . . _ I. y y \ / | f I 22255 { S§&QQ E ) ` El- \\ 6; _ . � , �� _ : R // « aQ §r _ _ - - e : . Q, /yl2a ; 2wE2222G 2/5522 ° ) /\ pe, ge, . ............. .......... _ ! . ! !) IIS= / § gGzw, . - - aa A /! /§) 5 \ \. . . } i /\ G D1 2Rf ! a ` \ 2\) \\\ `i ;1IdJj/jjjj\ \( ) § «: - ) 5zaz; $& �; � e«\ , =t W05 g* ) / a} , / \ S ! i / C C Construction Permit Application Preliminary Analysis Summary Section 1 —Applicant Information Company Name: Kerr-McGee Permit Number: 13WE2236 Source Location: Section 24 T3N R65W Point 001: Two 250,000 internal floating roof tanks Point 003: One 9.9 MMBTU/hr Heater Equipment Description: Point 004: One 9.9 MMBTU/hr Heater Point 005: One 9.9 MMBTU/hr Heater Point 006: One 9.9 MMBTU/hr Heater Point 007: One 9.9 MMBTU/hr Heater AIRS ID: 123/9B7D/001,003-007 Date: November 5, 2013 Review Engineer: Peter Armington Control Engineer: Stefanie Rucker Section 2—Action Completed Grandfathered Modification APEN Required/Permit Exempt X Initial 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? October 31, 2013 Section 4—Source Description AIRS Point Equipment Description 001 Two (2) above ground 250,000 bbl atmospheric condensate storage tanks 003 One (1) 9.9 MMBTU/hr natural gas fired hot oil heater. 004 One (1) 9.9 MMBTU/hr natural gas fired hot oil heater. 005 One (1) 9.9 MMBTU/hr natural gas fired hot oil heater. 006 One (1) 9.9 MMBTU/hr natural gas fired hot oil heater. 007 One (1) 9.9 MMBTU/hr natural gas fired hot oil heater. Is this a portable source? Yes X No Page 1 Is this location in a non-attainment area for any criteria X Yes No pollutant? If"yes", for what pollutant? PMto CO X Ozone Is this location in an attainment maintenance area for Yes X No any criteria pollutant? If"yes", for what pollutant? (Note: These pollutants are subject to minor source PM10 CO Ozone RACT per Regulation 3, Part B, Section III.D.2) Is this source located in the 8-hour ozone non- attainment region? (Note: If"yes"the provisions of X Yes No Regulation 7, Sections XII and XVII.C may apply) Section 5— Emission Estimate Information AIRS Point Emission Factor Source 001 TANKS 4.0 (oil has already been stabilized) Manufacturer data for NOx and CO; AP-42 for other pollutants 003-007 Operator assumed an efficiency of 85%, giving the heaters a consumption rating of 11.65 MMBTU/hr. Did the applicant provide actual process data for the emission inventory? Yes X No Basis for Potential to Emit(PTE) AIRS Point Process Consumption/Throughput/Production 001 54,750,000 BBL per year 003-007 78.5 MMSCF/year/heater Basis for Actual Emissions Reported During this APEN Filing (Reported to Inventory) AIRS Point Process Consumption/Throughput/Production Data Year 001 NA 003-007 NA Basis for Permitted Emissions(Permit Limits) AIRS Point Process Consumption/Throughput/Production 001 54,750,000 BBL per year 003-007 78.5 MMSCF/year/heater Does this source use a control device? Yes X No Section 6—Emission Summary (tons per year) See History File Section 7— Non-Criteria/ Hazardous Air Pollutants Uncontrolled Are the Controlled Emission Pollutant CAS # BIN Emission Rate emissions Ib/ r (lb/yr) reportable? Rate( Y ) Benzene 71432 A 0 No NA n-Hexane 110543 C 52 No NA Note: Regulation 3, Part A, Section II.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. Page 2 Section 8—Testing Requirements Will testing be required to show compliance with any emission rate or regulatory Yes X No standard? Section 9-Source Classification Is this a new previously un-permitted source? X Yes No What is this facility classification? X True Synthetic Major Minor Minor Classification relates to what programs? X Title V PSD X NA NSR X 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 X No For Reg. 3, Part B, III.C.1.d (synthetic minor emission limits)? Yes X 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 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 001,003- is in excess of 20% opacity. This standard is based on 24 consecutive opacity readings 007 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 I.A - No person, wherever located, shall cause or allow the emission of odorous air 001,003- contaminants from any single source such as to result in detectable odors which are 007 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 Part A-APEN Requirements Criteria Pollutants: For criteria pollutants, Air Pollutant Emission Notices are required for: 001,003- each individual emission point in a nonattainment area with uncontrolled actual emissions 007 of one ton per year or more of any individual criteria pollutant(pollutants are not summed) for which the area is nonattainment. (Applicant is required to file an APEN since emissions exceed 1 tons per year VOC) 001,003- Part B—Construction Permit Exemptions 007 Applicant is required to obtain a permit since uncontrolled VOC emissions from this facility are greater than the 2.0 TPY threshold(Reg. 3, Part B, Section ll.D.3.a) Regulation 6- New Source Performance Standards NSPS Kb: for storage vessels greater than 19,800 gallons after 7/23/84. 001 Is this source greater than 19,800 gallons (471 bbl)?Yes Is this source subject to NSPS Kb? Yes Page 3 003-007 NSPS Dc-Subject because the estimated input for each heater is 11.65 MMBTU/hr, based on an 85% efficiency, and the applicability of this subpart is based on input rating. Regulation 7—Volatile Organic Compounds 001 XII. VOLATILE ORGANIC COMPOUND EMISSIONS FROM OIL AND GAS OPERATIONS (Applicant is not subject because the tanks are subject to NSPS Kb.) 003-007 None Regulation 8— Hazardous Air Pollutants MACT EEEE: Organic Liquids Distribution 001 Pick one: • This source is not subject to MACT EEEE because it is not located at a major source of HAP. MACT HH 001 Pick one: • This source is not subject to MACT HH because it is not located at a major source of HAP. 003-007 None Section 13-Aerometric Information Retrieval System Coding Information Process Emission Pollutant/ Fugitive Control Point Process Description Factor CAS# (Y/N) Emission Factor Source (%) Condensate 0.006 01 Storage Tanks lb/1000 gal VOC No EPA Tanks 4.0 NA 001 throughput SCC 40400311 —Fixed Roof Tank, Condensate,working+breathing+flashing losses 5.5 Ib/MMscf VOC No AP-42 able NA 100 AP-42,Table 01 Natural Gas Fired Heater lb/MMscf NOx No 1 4 NA 003- 84 lb/MMscf CO No1.AP-01 4 Table NA 007 AP-42,Table 7.6 lb/MMscf PM10 No 14 NA SCC 1-03-006-02: External Combustion Boilers- Natural Gas Page 4 Section 14—Miscellaneous Application Notes AIRS Point 001 Condensate Storage Tanks Page 5 There will be no flashing as the oil enters these tanks. The EPA Tanks program is appropriate. KMG modeled emissions conservatively by assuming that the full permitted throughput passes through both tanks. Single Source Determination for Kerr-McGee's Central Oil Stabilization Facility Kerr-McGee Gathering LLC (KMG) recently submitted a permit application for the Central Oil Stabilization Facility (COSF) which they plan to locate adjacent to the existing facility with AIRS ID 123/6916, called the Platteville Station. This existing facility, which includes operations owned by KMG, Noble Energy Inc., and Rose Rock, was determined by the Division to be a single source on 12/5/2012. The Division has determined that the COSF should not be aggregated with the Platteville Station. Facility Description Kerr-McGee plans to pump condensate directly from wellhead separators to the COSF. The condensate will then be flashed to atmospheric at the centralized facility so that emissions can be collected for processing. The stabilized oil will be sent to either the Rose Rock pipeline or to a nearby rail facility. The Platteville Station (AIRS ID 123/6916) consists of a pipeline injection operation owned by Rose Rock and two Oil Polishing Facilities (OPFs) owned by Noble Energy and KMG. Background In the PSD regulations promulgated with the 1980 Preamble, EPA established the following three-part test to determine what buildings, structures, facilities and installations should be considered a single source. This three-part test is currently codified at 40 C.F.R. § 52.21(b)(6): All of the pollutant-emitting activities which belong to the same industrial grouping, are located on one or more contiguous or adjacent properties, and are under the common control of the same person (or persons under common control). . . . Pollutant-emitting activities shall be considered as part of the same industrial grouping if they belong to the same "Major Group" (i.e., which have the same first two digit code) as described in the Standard Industrial Classification Manual, 1972, as amended by the 1977 Supplement (U.S. Government Printing Office stock numbers 4101-0066 and 003-005-00176-0, respectively). Same Industrial Grouping The COSF is classified as a Crude Petroleum and Natural Gas facility with SIC 1311. The Platteville Station is split into two SIC: the existing KMG and Noble oil polishing facilities both are also SIC 1311 while the Rose Rock station has SIC 4612. Contiguous or Adjacent The COSF will share its southern border with the Noble and Rose Rock portions of the Platteville Station, and will be approximately 800 ft. from Kerr-McGee's OPF. Common Control KMG owns both the COSF and an OPF which is part of the Platteville Station. The 2012 determination was based on common control of the OPFs by Rose Rock; a similar control relationship would be needed to aggregate the COSF with the other operations at the site. According to a September 18, 1995 letter by William A. Spratlin, Director of the Air, RCRA, and Toxics Division of EPA Region 7, the location of a facility on another company's property can establish a control relationship. The existing operations at this Platteville Station were determined to be under common control because the Noble and Kerr-McGee oil polishing trains are located on land owned by Rose Rock. This determination does not apply to the COSF because it will be constructed on land which is not owned by any of the companies operating at the site. The COSF will therefore not be under common control with the Platteville Station. The Spratlin letter provides some additional criteria for overturning or reinforcing a control relationship, but these apply only when common control has already been presumed based on land ownership. Summary The COSF is not a single source with the Platteville Station. Unlike the existing Noble and KMG facilities at the Platteville Station, the relationship between the COSF and Rose Rock does not warrant a determination of common control. Page 6 AIRS Point 003-007 Hot Oil Heaters To convert from BTU to scf, source is using a HHV of 1300 BTU/scf. Page 7 > > r o c ♦ y ♦ ♦ n 0 c. n ---• n 7 ^ n - 7 K :/: n o 3.7.. C i d • 2 .s g m Fi .� a ^ = a ,. - 5- n w f 7 r. =' n p a a '� ^. a 2 O g I. n 5 7 ^ •' S,.e.c' 7 ro y a `'- • -•e. 7 c c F`••• G e > r > r rn,7 no 9 cc e =• 7.;ay e 0 3• • p., 0 f m • : '.` P r u e ---. o � A , n 0 3 3 0.. 5 � ►n en ODE F. a 3. R c - 3 d go 0 O c "C Z = - ? c i g o = IV 2 .Rc m 9 3 0 '9 n ens ego CJ C D j 7T. S c ," ^' .'^_. 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