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Montana DEQ Air Resources Management Bureau Registration Section Presented By: Mark Ewanic Montana Petroleum Association Annual Meeting August 27, 2008 Billings, Montana August 27, 2008 Outline • Introduction • Registration/Deregistration – History – Office & Staff – – – – Submittal Process New/Updated Registrations Backlogged Registrations Deregistrations August 27, 2008 • Compliance Monitoring • Providing Compliance Assistance • • Current Status and Path Forward Contact Information – Compliance Determination – Inspection Zones – Field Approach – Registered Facilities – Unregistered Facilities – Common Compliance Issues Introduction August 27, 2008 History J F M A M J J 2006 A S O N D J F M A M J J 2007 A S O N D J F M A M J J 2008 A S O N Before January 2006 – Department had 600+ MAQP applications from oil or gas well facilities – Majority of facilities already constructed/operating without MAQP – Not feasible to utilize existing Department staff to issue the MAQPs within statutory time frames August 27, 2008 D History Jan 06 – Subchapter 16 J F M A M J J 2006 A S O N D J F M A M J J 2007 A S O N D J F M A M J J 2008 A S O N D January 2006 • ARM Title 17, Chapter 8, Subchapter 16 – Oil or gas well facilities can construct/operate prior to issuance of MAQP – Must comply with requirements of Subchapter 16 – Must have submitted application prior to January 3, 2006, or within 60 days after well completion date (whichever was later) August 27, 2008 History Jan 06 – Subchapter 16 J F M A M J J 2006 A S O N D J F M A M J J 2007 A S O N D J F M A M J J 2008 A S O N Apr 06 – Subchapter 17 April 2006 • ARM Title 17, Chapter 8, Subchapter 17 – Allow oil or gas well facilities to register with the Department in lieu of obtaining MAQP • Supply requested registration information • Follow fee, operating, emission control, inspection and repair, and recordkeeping and reporting requirements August 27, 2008 D History Oct 07 – Registration Section Jan 06 – Subchapter 16 J F M A M J J A S O N D 2006 Apr 06 – Subchapter 17 J F M A M J J 2007 A S O N D J October 2007 • Air Quality Registration Section F M A M J J 2008 A S O N – Office established and staffed – Began acknowledging backlog – Acknowledge new registration/deregistration requests – Identify/contact facilities that may be required to be either permitted or registered but have not submitted an application August 27, 2008 D History Jan 06 – Subchapter 16 J F M A M J J A S Oct 07 – Registration Section O N D 2006 Apr 06 – Subchapter 17 J F M A M J J 2007 A S O N D J F M A M June 08 – Field Insp/Verif J J 2008 A S O N June 2008 • Initial Field Inspections and Verifications – Compliance inspections on Registered facilities – Verify status of unregistered facilities that may require MAQP or registration – Provide compliance assistance August 27, 2008 D History Jan 06 – Subchapter 16 J F M A M J J A S Oct 07 – Registration Section O N D 2006 Apr 06 – Subchapter 17 J F M A M J J S O N D J F M A M J J 2007 2008 June 07 – Initial Facility Inspections Present Day • Ongoing Work – – – – – A A August 27, 2008 O N WE ARE HERE Inspection reports Contact companies with unregistered facilities New registration/deregistration requests Backlog Evaluate/improve process • Subchapter 17 rule change S D Purpose of Registration • Provide oil or gas well facilities with an alternative to MAQP – More operational flexibility • Register 60-days after well completion • Notify within 15-days after change – Reduced administrative burden • • • • No application No public notice No BACT analysis No notification prior to change August 27, 2008 Reg. Section Office & Staff • Office - Butte, Montana • Staff – 1 Supervisor • Dave Aquirre – 3 Full-Time Staff • Mark Peterson • Eileen Steilman • Mark Ewanic – 2 Student Interns • Karen Gillespie • Whitney Walsh August 27, 2008 Registration & Deregistration Processes August 27, 2008 Registration Submittal Process • Facility Eligibility • Registration Form – Inventory of emitters – Quantify emissions • Registration & Operation Fees August 27, 2008 Oil or Gas Well Facility Eligibility • Meets definition of oil or gas well facility – 75-2-103(13), MCA • Subject to requirements of ARM 17.8.743 – PTE > 25-tpy any airborne pollutant – Modified after 11/23/68 and PTE increase >25-tpy • NOT subject to ARM Title 17, Chapter 8, Subchapter 12 (Title V Source) August 27, 2008 Registration Form • Available online – (http://deq.mt.gov/AirQuality/airForms.asp) • Owner & Facility Information – – – – – Contact Location Emitting Units Emission Controls Uncontrolled/Controlled Emissions • Electronic or hard copies August 27, 2008 Registration & Operation Fee • Registration Fee – $500 per newly registered facility – Registration request is incomplete until fee is paid • No fee when submitting facility update • Annual Operation Fee – $600 per registered facility August 27, 2008 Registration Acknowledgement • Completeness Review • Compliance Review Desk Audit • Acknowledgment Letter August 27, 2008 Completeness Review • Facility is eligible for registration? • Registration Process and Information is complete? • Registration Fee has been received? • Department requests additional information if necessary August 27, 2008 Compliance Review Desk Audit • Completed prior to registration acknowledgement • Does not delay registration – Potential compliance issues identified – Provides compliance assistance August 27, 2008 Acknowledgement Letter • New facilities – Within 30-days of receiving completed Registration Form • Backlog - 25% each calendar year beginning in 2008 August 27, 2008 Deregistration Request • Letter to Department – Justification for deregistration • Department may request additional information – Quantify all emissions (e.g., fugitives) – Emission calculations using more appropriate software – Source specific inputs • Updated production • Separator temperature and pressure • Site specific oil and/or gas analytical data • Plan Ahead – Submit in time to deregister by March 1 – Be aware of issues that my delay acknowledgement August 27, 2008 Deregistration Acknowledgement • Review similar to compliance review desk audit • Respond to deregistration requests within 30-days of receiving completed request August 27, 2008 Compliance Monitoring August 27, 2008 Compliance Determination • Initial compliance review desk audit – Completed when Registration is acknowledged • Field inspection – Standardized field observations sheet – Compliance review desk audit upon return to office • Documentation – Standardized inspection reports – Supplemental CD • Digital photos • Video from IR camera August 27, 2008 Inspection Zones • Divided counties with oil or gas well facilities • Full-time staff members assigned zones – Complete field inspections – Registered – Complete field verifications – Unregistered August 27, 2008 Inspection Zones - Inspectors August 27, 2008 Inspection Zones - Facilities August 27, 2008 Inspection Zones – Richland County August 27, 2008 Current Field Approach • Focusing on companies/facilities that did not comply with the ARM – Focus on unregistered facilities potentially needing to be registered – Conduct compliance field inspections on registered sources in same area August 27, 2008 Providing Compliance Assistance August 27, 2008 Registered Facilities Field Comp. Insp. 30-Days Issue Insp. Rpt. Comp. Desk Audit No Further Action YES In Compliance Resolution, More Time, etc. NO Phone Call Followed By Report YES Company Responds NO August 27, 2008 Warning or Violation Letter Possible Enforcement Unregistered Facilities No Further Action NO Review DNRC Data ??? PTE >25-tpy ??? YES Site Verification Submit Registration Phone Call Followed By Letter 60-Days Company Responds NO Possible August 27, 2008Enforcement Request Add. Time YES Submit Info. For Not Registering Review Submittal Common Compliance Issues • Controlling emissions – Tank emissions not controlled • Flare, VRU, etc. – Flare not working properly (i.e., combusting produced gas and/or tank gas) – Leaks detected • H2S detected – Strong odor but no air quality analysis – Must comply with ARM 17.8.210 • Notification of change(s) to registration information – Addition of emitter – Change to emission controls August 27, 2008 TM ThermCAM GasFindIR Camera • Detect hydrocarbon emissions – Cost savings to industry • Leaks in produced gas line • Leaks in vapor recovery unit – Assistance with site maintenance • Leaking thief hatches (faulty seal) • Flares not operating • Repair leaking VOC equipment (ARM 17.8.1712) August 27, 2008 Current Status and Path Forward August 27, 2008 Registration Activity (8/26/08) Total Registrations Submitted: 727 Total Registered Facilities: 621 Reg. Facilities Acknowledged: (Backlog/New) 135/67 Reg. Updates Acknowledged: 145 August 27, 2008 Inspection/Verification Activity Facility Inspections: 75 Facility Verifications: 130 August 27, 2008 Upcoming Activity • Rule Changes – Subchapter 17 – Addition of BACT requirements for larger internal combustion engines – Emission control requirements of Subchapter 16 match Subchapter 17 – Notification requirements • Emission Inventory – Send out in December – Report actual 2008 emissions – Return to Department by February • Registration Form Format – Working on ExcelTM version – Link calculation sheets August 27, 2008 Things To Remember • Not required to register in lieu of MAQP • No fee for submitting an update • Registering by facility versus by well • PTE should reflect maximum potential production • March 1 deadline for deregistration And when in doubt... August 27, 2008 Contact Information August 27, 2008 DEQ ARMB Registration Section Butte, Montana Office 49 N Main, Suite B Butte MT 59701 Tel: (406) 782-2689 Fax: (406) 782-2701 Web: http://deq.mt.gov/ August 27, 2008