Air Pollution Control (2023)

Tribal code

Ask Donna

What actually matters in this document.

Text

Air Pollution Control

Title V Permit to Operate

Statement of Basis for Permit No. V-SUIT-0044-2023.00

November 6, 2024

Red Cedar Gathering Company

Elk Point Compressor Station

Southern Ute Indian Reservation

La Plata County, Colorado

1. Facility Information

a. Location

The Elk Point Compressor Station, owned and operated by Red Cedar Gathering Company (Red Cedar), is

located within the exterior boundary of the Southern Ute Indian Reservation. The exact location is Section

25, T33N, R9W, in La Plata County, at latitude North 37.074933 and longitude West -107.769018. The

Mailing address is:

Red Cedar Gathering Company

Elk Point Compressor Station

125 Mercado St.; Suite 201

Durango, CO 81301

b. Contacts

Facility Contact:

Ethan Hinkley

Air Quality Compliance Manager

Red Cedar Gathering Company

125 Mercado Street; Suite 201

Durango, CO 81301

(970) 764-6910

Responsible Official:

Coy Bryant

President – Chief Operating Officer

Red Cedar Gathering Company

125 Mercado Street; Suite 201

Durango, CO 81301

(970) 764-6664

c. Description of Operations

The Elk Point Compressor Station is a mid-stream boost compressor station capable of processing roughly

47-50 MMscf/day. The station receives inlet gas from Red Cedar’s medium pressure pipeline, with an inlet

pressure of approximately 300 psi. The gas is first compressed through 3 compressors driven by Caterpillar

G3516LE lean burn compressor engines to approximately 900-950 psi. The gas is then processed through

three tri-ethylene glycol dehydrators, set in parallel (the gas is split between the three dehydration units).

The gas comes in saturated and leaves the station at less than 7 lbs H 2O/MMscf.

d. List of All Units and Emission-Generating Activities

Red Cedar provided the information contained in Tables 1 and 2 in its Part 70 renewal permit application.

Table 1 lists emission units and emission generating activities, including any air pollution control devices.

Emission units identified as “insignificant” emitting units (IEUs) are listed separately in Table 2.

Table 1 – Emission Units

Red Cedar Gathering Company – Elk Point Compressor Station

Emission

Unit ID

Control

Equipment

Description

Caterpillar G3516LE (4SLB SI) Natural Gas-Fired Compressor Engine

1,340 Name Plate Rated HP

C-201

Serial No.

4EK02755

Install Date:

06/09/2009

C-202

Serial No.

4EK02130

Install Date:

11/23/2021

C-203

Serial No.

4EK00061

Install Date:

08/03/2019

C-204

Serial No.

4EK03717

Install Date:

07/25/2024

None

PESCO Tri-ethylene Glycol (TEG) Dehydrator and Flash Tank

15 MMscf/day

X-301

Serial No.

N/A

Install Date:

09/01/2000

X-302

Serial No.

N/A

Install Date:

09/01/2000

X-303

Serial No.

N/A

Install Date:

09/01/2000

None

The Southern Ute Indian Tribe/State of Colorado Environmental Commission’s Reservation Air Code

allows sources to separately list in the permit application units or activities that qualify as “insignificant”

based on potential emissions below 2 tpy for all regulated pollutants that are not listed as hazardous air

pollutants (HAPs) under Section 112(b) of the Clean Air Act (CAA) and below 1,000 lbs per year or the de

minimis level established under Section 112(g), whichever is lower, for HAP emissions

[RAC 2-106(4)(f); RAC 1-103(36) and (37)]. However, the application may not omit information needed

to determine the applicability of, or to impose, any applicable requirement, or to calculate the fee

[RAC 2-106(4)(f)]. Units that qualify as “insignificant” for the purposes of the Part 70 application are in no

way exempt from applicable requirements or any requirements of the Part 70 permit.

Red Cedar stated in its Part 70 renewal permit application that the emission units in Table 2, below, are

insignificant. The application provided calculations for heater/reboiler emissions based on the highest

emission factor chosen from a composite of EPA’s AP-42 emission factors, GRI field data and GRI

literature data. Red Cedar provided sufficient information, including EPA Tanks 4.0.9d calculations, to

verify any emissions from liquids in the tanks were insignificant. This data supports Red Cedar’s claim that

these units qualify as insignificant.

Table 2 – Insignificant Emission Units

Red Cedar Gathering Company – Elk Point Compressor Station

Emission Unit ID

Amount

Description

Size

H-301

H-302

H-303

H-501

H-502

H-401, H-402

H-403

H-101

TK-501

TK-502

TK-504

TK-505

TK-506

TK-509

TK-510

TK-511

Glycol Reboiler

Tank Heater (TK-501)

Tank Heater (TK-502)

Catalytic Heater

Catalytic Heater – Inlet Slug Catcher

Waste Water Tank

Waste Oil Tank

Engine Coolant Tank

TEG Storage Tank

Lube Oil Tank

Glycol Still Vent Tank

0.200

0.325

0.018

0.005

0.002

21,000

6,615

1,820

1,000

1,600

1,300

740

Units

MMBtu/hr

gal

e. Facility Construction and/or Permitting History

DATE

DESCRIPTION OF ACTION

PERMIT NUMBER

September 1, 2000

Commenced Construction

N/A

June 2007

Initial Part 71 Permit Issued

# V-SU-0044-06.00

January 2008

Administrative Amendment

# V-SU-0044-06.01

June 2008

Administrative Amendment

# V-SU-0044-06.02

September 13, 2013

Initial Part 70 Permit Issued

Replaces EPA-issued permit # V-SU-0044-06.02

# V-SUIT-0044-2013.00

October 8, 2018

Renewal Part 70 Permit Issued

# V-SUIT-0044-2018.00

November 6, 2024

2nd Renewal Part 70 Permit Issued

# V-SUIT-0044-2023.00

f. Potential to Emit

Under RAC 1-103(51), potential to emit (PTE) is defined as the maximum capacity of a stationary source

to emit a pollutant under its physical and operational design. Any physical or operational limitation on the

capacity of the source to emit a pollutant, including air pollution control equipment and restrictions on hours

of operation or on the type or amount of material combusted, stored, or processed, shall be treated as part

of its design if the limitation, or the effect it would have on emissions, is federally enforceable.

The PTE for Elk Point Compressor Station was listed by Red Cedar in Forms “GIS”, “PTE”, and the various

forms “EMISS” of the Part 70 operating permit application. Table 3 shows PTE data broken down by each

individual emission unit, as well as the total facility-wide PTE.

Emission

Unit ID

Table 3 - Potential to Emit

Red Cedar Gathering Company – Elk Point Compressor Station

Regulated Air Pollutants

in tpy (uncontrolled)

Largest

Single

HAP

(CH2O)

GHGs

(CO2e mtpy)

NOX

VOC

SO2

PM10

Lead

Total

HAPs

C-201

22.20

3.30

0.00

0.40

19.40

0.00

3.30

2.60

5,786.80

C-202

22.20

3.30

0.00

0.40

19.40

0.00

3.30

2.60

5,786.80

C-203

22.20

3.30

0.00

0.40

19.40

0.00

3.30

2.60

5,786.80

C-204

22.20

3.30

0.00

0.40

19.40

0.00

3.30

2.60

5,786.80

X-301

0.00

11.10

0.00

5.10

0.00

7,354.00

X-302

0.00

11.10

0.00

5.10

0.00

7,354.00

X-303

0.00

11.10

0.00

5.10

0.00

7,354.00

Total IEUs

0.30

0.50

0.00

0.30

0.00

506.00

TOTAL

89.10

58.60

0.00

1.50

78.00

0.00

28.30

10.40

45,715.20

2. Tribal Authority

The Elk Point Compressor Station is located within the exterior boundaries of the Southern Ute Indian

Reservation and is thus within Indian Country as defined at 18 U.S.C. §1151. On March 2, 2012, the EPA

determined that the Southern Ute Indian Tribe of the Southern Ute Indian Reservation had met the

requirements of 40 CFR §70.4(b) for full approval to administer its Clean Air Act Title V, Part 70 Permitting

Program (Program). In concert with that Program approval, the EPA also found that the Tribe met the

requirements of Section 301(d)(2) of the CAA and 40 CFR §49.6 for treatment “in the same manner as a

state” for the purposes of issuing CAA Title V, Part 70 operating permits. The EPA promulgated its

approval of the Tribe’s applications on March 15, 2012 (77 FR 15267). The requirements of the Clean Air

Act Title V, Part 70 Permitting Program (Program) have been incorporated at Article II, Part 1 of the

Reservation Air Code. Therefore, the Southern Ute Indian Tribe is the appropriate governmental entity to

issue the Title V permit to this facility.

The Reservation Air Code: The Reservation Air Code was adopted pursuant to the authority vested in the

Southern Ute Indian Tribe/State of Colorado Environmental Commission by (1) the Intergovernmental

Agreement Between the Southern Ute Indian Tribe and the State of Colorado Concerning Air Quality

Control on the Southern Ute Indian Reservation dated December 13, 1999, (2) tribal law (Resolution of the

Council of the Southern Ute Indian Tribe No. 00-09), (3) State law (C.R.S. § 24- 62-101), and (4) as

recognized in federal law (Act of October 18, 2004, Pub. L. No. 108-336, 118 Stat.1354).

NSPS and NESHAP Delegation: On September 6, 2013, the Southern Ute Indian Tribe received delegation

from the EPA to incorporate by reference into the Reservation Air Code and enforce certain subparts of the

new source performance standards (NSPS) and national emission standards for hazardous air pollutants

(NESHAP) under Sections 111 and 112 of the Clean Air Act, respectively (78 FR 40635). These NSPS and

NESHAP subparts generally apply to oil and gas operations within the exterior boundaries of the Southern

Ute Indian Reservation and were adopted, unchanged, into the Reservation Air Code as Parts 2 and 3.

Tribal Minor New Source Review Program: Minor sources of air pollution located within the Southern Ute

Indian Reservation exterior boundaries must comply with either the “Federal Implementation Plan for

Managing Air Emissions From True Minor Sources In Indian Country In The Oil And Natural Gas

Production And Natural Gas Processing Segments Of The Oil And Natural Gas Sector” listed at 40 CFR

§49.101 – 105 or the “Federal Minor New Source Review Program In Indian Country” listed at 40 CFR

§49.151 – 164.

3. Applicable Requirements

The following discussion addresses a selection of the regulations from the Code of Federal Regulations

(CFR) at Title 40. Note that this discussion does not include the full spectrum of potentially applicable

regulations and is not intended to represent official applicability determinations. These discussions are

based on the information provided by Red Cedar in its Part 70 permit application and are only intended to

present the information certified to be true and accurate by the Responsible Official of this facility.

Tribal Minor New Source Review (TMNSR) – 40 CFR Part 49

EPA promulgated the federal rule “Review of New Sources and Modifications in Indian Country,”

otherwise known as the Tribal Minor New Source Review Rule (TMNSR), on July 1, 2011 (76 FR 38748).

The TMNSR rule applies to all new or modified industrial facilities in Indian country with a potential to

emit equal to or greater than the minor NSR thresholds, but less than the major source thresholds, which

are generally 100 to 250 tons per year (tpy). The minor NSR thresholds for attainment/unclassifiable areas

are displayed in the table below:

40 CFR 49.153 Minor NSR Thresholds

Minor NSR Thresholds for

Regulated NSR Pollutant

Attainment/Unclassifiable Areas in Tons Per Year

(TPY)

Carbon Monoxide (CO)

Nitrogen Oxides (NOx)

Sulfur Dioxide (SO2)

Volatile Organic Compounds (VOC)

PM10

PM2.5

Lead

0.1

Fluorides

Sulfuric Acid Mist

Hydrogen Sulfide (H2S)

Total Reduced Sulfur (including H2S)

Reduced Sulfur Compounds (including H2S)

Municipal Waste Combustor Emissions

Municipal Solid Waste Landfill Emissions

(measured as nonmethane organic

compounds)

On June 11, 2024, the Southern Ute Indian Tribe received partial delegation of the Tribal Minor New

Source Review Program through the Agreement for Delegation of Partial Administrative Authority of

Certain Federal Clean Air Act Indian Country Programs to the Southern Ute Indian Tribe by the United

States Environmental Protection Agency. The two federal Clean Air Act (CAA) Programs are: (l) the

Federal Implementation Plan for Managing Air Emissions from True Minor Sources in Indian Country in

the Oil and Natural Gas Production and Oil and Natural Gas Processing Segments of the Oil and Natural

Gas Sector (FIP), 40 Code of Federal Regulations (C.F.R.) Part 49, Subpart C, Sections 49.101 through

49.105 and (2) the Federal Minor New Source Review Program in Indian Country (MNSR), 40 C.F.R. Part

49, Subpart C, Sections 49.151 through 49.164. Under the FIP, all new and modified true minor oil and

gas sources are required to register with the EPA to obtain coverage. Under the MNSR, minor sources

and minor modifications at an existing source are required to obtain a preconstruction permit prior to

beginning construction. The MNSR program provides a mechanism for a source to obtain authorization to

construct through a site-specific permit or to accept federally enforceable requirements to become a

“synthetic minor” source under NSR or the Title V permitting program. The program also includes general

permits for six source categories.

Future modifications at the Elk Point Compressor Station will be subject to the TMNSR rule; however, no

TMNSR permits have been issued to this facility at this time.

Prevention of Significant Deterioration (PSD) - 40 CFR 52.21

PSD is a preconstruction review requirement of the CAA that applies to proposed projects that are

sufficiently large (in terms of emissions) to be a “major” stationary source or “major” modification of an

existing stationary source. A new stationary source, or a modification to an existing minor stationary

source, is major if the proposed project has the potential to emit of any criteria pollutant regulated under

the CAA in amounts equal to or exceeding specified major source thresholds, which are 100 tpy for 28

listed industrial source categories and 250 tpy for all other sources. PSD also applies to modifications at

existing major sources that cause a “significant net emissions increase” at that source. Significance levels

for each pollutant are defined in the PSD regulations at 40 CFR 52.21. A modification is a physical change

or change in the method of operation.

The Elk Point Compressor Station does not belong to any of the 28 source categories. Therefore,

the potential to emit threshold for determining PSD applicability for this source is 250 tons per year

for criteria pollutants. The potential to emit of regulated pollutants at this facility are currently below

the major source threshold of 250 tpy. Therefore, the requirements of PSD do not apply to the

Elk Point Compressor Station at this time.

New Source Performance Standards (NSPS)

40 CFR Part 60, Subpart A: General Provisions. This subpart applies to the owner or operator of any

stationary source that contains an affected facility, the construction or modification of which is commenced

after the date of publication of any standard in Part 60. The general provisions under Subpart A apply to

sources that are subject to the specific subparts of Part 60.

According to Red Cedar, the Elk Point Compressor Station is not subject to any specific subparts

under 40 CFR Part 60. Therefore, the General Provisions of Part 60 do not apply.

40 CFR Part 60, Subpart Dc: Standards of Performance for Small Industrial-Commercial-Institutional

Steam Generating Units. This rule applies to steam generating units with a maximum design heat capacity

of 100 MMBtu/hr or less, but greater than or equal to 10 MMBtu/hr and commenced construction,

modification, or reconstruction after June 9, 1989.

According to Red Cedar, the Elk Point Compressor Station has no steam generating units with a

maximum design heat input capacity of 100 MMBtu/hr or less, but greater than or equal to 10

MMBtu/hr at the at the facility. Therefore, Subpart Dc does not apply.

40 CFR Part 60, Subpart GG: Standards of Performance for Stationary Gas Turbines. This rule applies to

stationary gas turbines, with a heat input at peak load equal to or greater than 10.7 gigajoules per hour (10

MMBtu/hr), that commenced construction, modification, or reconstruction after October 3, 1977.

According to Red Cedar, there are no stationary gas turbines located at the Elk Point Compressor

Station. Therefore, Subpart GG does not apply.

40 CFR Part 60, Subpart K: Standards of performance for Storage Vessels for Petroleum Liquids for which

Construction, Reconstruction, or Modification Commenced After June 11, 1973, and Prior to May 19, 1978.

This rule applies to storage vessels for petroleum liquids with a storage capacity greater than 40,000 gallons.

40 CFR Part 60, Subpart K does not apply to storage vessels for petroleum or condensate stored, processed,

and/or treated at a drilling and production facility prior to custody transfer.

According to Red Cedar, the Elk Point Compressor Station has no tanks that were constructed,

reconstructed, or modified after June 11, 1973, and prior to May 19, 1978. Therefore, Subpart K

does not apply.

40 CFR Part 60, Subpart Ka: Standards of Performance for Storage Vessels for Petroleum Liquids for which

Construction, Reconstruction, or Modification Commenced After May 18, 1978, and Prior to

June 23, 1984. This rule applies to storage vessels for petroleum liquids with a storage capacity greater than

40,000 gallons. Subpart Ka does not apply to petroleum storage vessels with a capacity of less than 420,000

gallons used for petroleum or condensate stored, processed, or treated prior to custody transfer.

According to Red Cedar, the Elk Point Compressor Station has no tanks that were constructed,

reconstructed, or modified after May 18, 1978, and prior to June 23, 1984. Therefore, Subpart Ka

does not apply.

40 CFR Part 60, Subpart Kb: Standards of Performance for Volatile Organic Liquid Storage Vessels

(Including Petroleum Liquid Storage Vessels) for which Construction, Reconstruction, or Modification

Commenced After July 23, 1984. This rule applies to storage vessels with a capacity greater than or equal

to 75 cubic meters (~472 bbl or 19,813 gal).

According to Red Cedar, the Elk Point Compressor Station has no tanks with a capacity greater than

75 m3 (~472 bbl or 19,813 gal) that are used to store volatile organic liquids. Therefore, Subpart

Kb does not apply.

40 CFR Part 60, Subpart KKK: Standards of Performance for Equipment Leaks of VOC from Onshore

Natural Gas Processing Plants for which construction, reconstruction, or modification commenced after

January 20, 1984, and on or before August 23, 2011. This rule applies to compressors and other equipment

at onshore natural gas processing facilities. As defined in this subpart, a natural gas processing plant is any

processing site engaged in the extraction of natural gas liquids (NGLs) from field gas, fractionation of

mixed NGLs to natural gas products, or both. NGLs are defined as the hydrocarbons, such as ethane,

propane, butane, and pentane that are extracted from field gas.

According to Red Cedar, the Elk Point Compressor Station does not extract natural gas liquids from

field gas, nor does it fractionate mixed NGLs to natural gas products, and thus does not meet the

definition of a natural gas processing plant under this subpart. Therefore, Subpart KKK does not

apply.

40 CFR Part 60, Subpart LLL: Standards of Performance for SO 2 emissions from Onshore Natural Gas

Processing for which construction, reconstruction, or modification commenced after January 20, 1984, and

on or before August 23, 2011. This rule applies to sweetening units and sulfur recovery units at onshore

natural gas processing facilities. As defined in this subpart, sweetening units are process devices that

separate hydrogen sulfide (H2S) and carbon dioxide (CO2) from a sour natural gas stream. Sulfur recovery

units are defined as process devices that recover sulfur from the acid gas (consisting of H 2S and CO2)

removed by a sweetening unit.

According to Red Cedar, the Elk Point Compressor Station has no sweetening or sulfur recovering

units at the facility. Therefore, Subpart LLL does not apply.

40 CFR Part 60, Subpart JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion

Engines. This subpart establishes emission standards and compliance requirements for the control of

emissions from stationary spark ignition (SI) internal combustion engines (ICE) that commenced

construction, modification or reconstruction after June 12, 2006, where the SI ICE are manufactured on or

after specified manufacture trigger dates. The manufacture trigger dates are based on the engine type, fuel

used, and maximum engine horsepower.

For the purposes of this subpart, the date that construction commences is the date the engine is ordered by

the owner or operator (See 40 CFR 60.4230(a)).

Red Cedar provided the following information:

Table 4 - NSPS Subpart JJJJ Applicability Determination

Red Cedar Gathering Company - Elk Point Compressor Station

Unit

Serial No

C-201

4EK02755

C-202

4EK02130

C-203

4EK00061

C-204

4EK03717

Unit Description

Caterpillar G3516LE

4SLB Compressor

Engine

Caterpillar G3516LE

4SLB Compressor

Engine

Caterpillar G3516LE

4SLB Compressor

Engine

Caterpillar G3516LE

4SLB Compressor

Engine

Trigger Date

for

ApplicabilityManufactured

on or after

Fuel

Maximum

Manufacture

Date

Commenced

Construction

Date

Natural

Gas

1,340

09/01/20001

Prior to

06/12/2006

01/01/2008

Natural

Gas

1,340

04/21/20001

Prior to

06/12/2006

01/01/2008

Natural

Gas

1,340

06/29/19931

Prior to

06/12/2006

01/01/2008

Natural

Gas

1,340

12/06/20011

Prior to

06/12/2006

01/01/2008

1. Per Red Cedar, these engines have not been modified or reconstructed (as defined in Part 60) since June 12, 2006.

According to Red Cedar, C-201, C-202, C-203, and C-204 were manufactured prior to January 1,

2008 (trigger date for lean burn engines with a maximum engine power greater than or equal to 500

hp and less than 1,350 hp). The engines have not been reconstructed or modified (as defined in

§60.15) since June 12, 2006. Therefore, the requirements of Subpart JJJJ do not apply.

Should Red Cedar propose to install a replacement engine for C-201, C-202, C-203, or C-204 that

is subject to Subpart JJJJ, Red Cedar will not be allowed to use the off permit changes provision,

and will be required to submit a minor permit modification application to incorporate Subpart JJJJ

requirements into the permit.

40 CFR Part 60, Subpart OOOO: Standards of Performance for Crude Oil and Natural Gas Production,

Transmission, and Distribution. This subpart establishes emission standards and compliance schedules for

the control of VOC and SO2 emissions from affected facilities that commence construction, modification,

or reconstruction after August 23, 2011, and on or before September 18, 2015. Affected facilities under this

subpart include gas wells, compressors, pneumatic controllers, storage vessels, process unit equipment, and

sweetening units.

According to Red Cedar, the Elk Point Compressor Station does not have any affected facilities

under the rule that were constructed, modified, or reconstructed between August 23, 2011, and

September 18, 2015. Therefore, Subpart OOOO does not apply.

40 CFR Part 60, Subpart OOOOa: Standards of Performance for Crude Oil and Natural Gas Facilities. This

subpart establishes emission standards and compliance schedules for the control of volatile organic

compounds (VOC) and sulfur dioxide (SO2) emissions from affected facilities in the crude oil and natural

gas production source category that commence construction, modification, or reconstruction after

September 18, 2015, and on or before December 6, 2022. Affected facilities under this subpart include gas

wells, compressors, pneumatic controllers, pneumatic pumps, storage vessels, and the collection of fugitive

emission components at well sites and compressor stations.

According to Red Cedar, the Elk Point Compressor Station does not have any affected facilities

under the rule that were constructed, modified, or reconstructed between September 18, 2015, and

December 6, 2022. Therefore, Subpart OOOOa does not apply.

40 CFR Part 60, Subpart OOOOb: Standards of Performance for Crude Oil and Natural Gas Facilities.

This subpart establishes emission standards and compliance schedules for the control of the pollutant

greenhouse gases (GHG). The greenhouse gas standard in this subpart is in the form of a limitation on

emissions of methane from affected facilities in the crude oil and natural gas source category that

commence construction, modification, or reconstruction after December 6, 2022. This subpart also

establishes emission standards and compliance schedules for the control of volatile organic compounds

(VOC) and sulfur dioxide (SO2) emissions from affected facilities in the crude oil and natural gas source

category that commence construction, modification, or reconstruction after December 6, 2022.

According to Red Cedar, the Elk Point Compressor Station does not have any affected facilities

under the rule that were constructed, modified, or reconstructed after December 6, 2022. Therefore,

Subpart OOOOb does not apply.

National Emission Standards for Hazardous Air Pollutants (NESHAP)

40 CFR Part 63, Subpart A: General Provisions. This subpart contains national emissions standards for

HAPs that regulate specific categories of sources that emit one or more HAP regulated pollutants under the

CAA. The general provisions under subpart A apply to sources that are subject to the specific subparts of

Part 63.

As explained below, the Elk Point Compressor Station is subject to specific subparts of 40 CFR 63.

Therefore, the General Provisions of Part 63 apply as specified in the relevant subpart.

40 CFR Part 63, Subpart HH: National Emission Standards for Hazardous Air Pollutants from Oil and

Natural Gas Production Facilities. This subpart applies to the owners and operators of affected units located

at natural gas production facilities that are area or major sources of HAPs, and that process, upgrade, or

store natural gas prior to the point of custody transfer, or that process, upgrade, or store natural gas prior to

the point at which natural gas enters the natural gas transmission and storage source category or is delivered

to a final end user. The affected units are glycol dehydration units, storage vessels with the potential for

flash emissions, and the group of ancillary equipment, and compressors intended to operate in volatile

hazardous air pollutant service, which are located at natural gas processing plants.

Throughput Exemption

Those sources whose maximum natural gas throughput, as appropriately calculated per §63.760(a)(1)(i)

through (a)(1)(iii), is less than 18,400 standard cubic meters per day are exempt from the requirements of

this subpart.

Source Aggregation

Major source, as used in this subpart, has the same meaning as in §63.2, except that:

Emissions from any oil and gas production well with its associated equipment and emissions from

any pipeline compressor station or pump station shall not be aggregated with emissions from other

similar units.

Emissions from processes, operations, or equipment that are not part of the same facility shall not

be aggregated.

For facilities that are production field facilities, only HAP emissions from glycol dehydration units

and storage vessels shall be aggregated for a major source determination.

Facility

For the purpose of a major source determination, facility means oil and natural gas production and

processing equipment that is located within the boundaries of an individual surface site as defined in Subpart

HH. Examples of facilities in the oil and natural gas production category include, but are not limited to:

well sites, satellite tank batteries, central tank batteries, a compressor station that transports natural gas to a

natural gas processing plant, and natural gas processing plants.

Production Field Facility

Production field facilities are those located prior to the point of custody transfer. The definition of custody

transfer (40 CFR 63.761) means the point of transfer after the processing/treating in the producing

operation, except for the case of a natural gas processing plant, in which case the point of custody transfer

is the inlet to the plant.

Natural Gas Processing Plant

A natural gas processing plant is defined in 40 CFR 63.761 as any processing site engaged in the extraction

of NGLs from field gas, or the fractionation of mixed NGLs to natural gas products, or a combination of

both. A treating plant or gas plant that does not engage in these activities is considered to be a production

field facility.

Major Source Determination for Production Field Facilities

The definition of major source in subpart HH (at 40 CFR 63.761) states, in part, that only emissions from

the dehydration units and storage vessels at production field facilities shall be aggregated when comparing

to the major source thresholds.

For facilities that are not production field facilities, HAP emissions from all HAP emission units shall be

aggregated.

Area Source Applicability

40 CFR Part 63, Subpart HH also applies to area sources of HAPs. An area source is a HAP source whose

total HAP emissions are less than 10 tpy of any single HAP or 25 tpy for all HAPs in aggregate. This subpart

requires different emission reduction requirements for glycol dehydration units found at oil and gas

production facilities based on their geographical location.

Units located in densely populated areas (determined by the Bureau of Census) and known as urbanized

areas with an added 2-mile offset and urban clusters of 10,000 people or more, are required to have emission

controls. Units located outside these areas will be required to have the glycol recirculation pump rate

optimized or operators must document that actual annual average benzene emissions are less than 0.9

megagrams (1,984 lbs.).

Any source that determines that it is not a major source but has actual emissions of 5 tons per year of a

single HAP or 12.5 tons per year of a combination of HAP (i.e. 50 percent of the major source thresholds),

shall update its major source determination within 1 year of the prior determination and each year thereafter,

using gas composition data measured during the preceding 12 months.

Applicability of Subpart HH to the Elk Point Compressor Station

According to Red Cedar, the Elk Point Compressor Station’s total HAP emissions from glycol

dehydrators and storage vessels are below major source thresholds. Furthermore, with respect to

area source requirements, uncontrolled actual average benzene emissions from the TEG dehydration

units at the facility are less than 0.9 megagrams (1984 lbs.). Per 40 CFR 63.764(e)(1)(ii),

dehydration units X-301, X-302, and X-303 are exempt from the 40 CFR 63.764(d) general

requirements for area sources. Therefore, Red Cedar must maintain records as specified in

63.774(d)(1).

40 CFR Part 63, Subpart HHH: National Emission Standards for Hazardous Air Pollutants from Natural

Gas Transmission and Storage Facilities. This subpart applies to natural gas transmission and storage

facilities that transport or store natural gas prior to entering the pipeline to a local distribution company or

to a final end user, and that are a major source of hazardous air pollutant (HAP) emissions. Natural gas

transmission means the pipelines are used for long distance transport (excluding processing).

According to Red Cedar, the Elk Point Compressor Station is a natural gas production facility and

not a natural gas transmission or storage facility. Therefore, Subpart HHH does not apply.

40 CFR Part 63, Subpart ZZZZ (RICE MACT): National Emission Standards for Hazardous Air Pollutants

for Stationary Reciprocating Internal Combustion Engines. This rule establishes national emission

limitations and operating limitations for HAPs emitted from stationary spark ignition internal combustion

engines (SI ICE) and stationary compression ignition internal combustion engines (CI ICE).

For the purposes of this standard, construction or reconstruction is as defined in §63.2.

Summary of Applicability to Engines at Major HAP Sources

Major HAP Sources

Engine Type

Horse Power Rating

New / Existing

Applicability Trigger Date

SI ICE – All1

≥ 500 hp

New

On or After:

12/19/2002

SI ICE – 4SRB

> 500 hp

Existing

Before:

12/19/2002

SI ICE – All1

≤ 500 hp

New

On or After:

6/12/2006

SI ICE – All1

≤ 500 hp

Existing

Before:

6/12/2006

CI ICE – All2

≥ 500 hp

New

On or After:

12/19/2002

CI ICE – Non Emergency

> 500 hp

Existing

Before:

12/19/2002

CI ICE – All2

≤ 500 hp

New

On or After:

6/12/2006

CI ICE – All2

≤ 500 hp

Existing

Before:

6/12/2006

1. All includes emergency ICE, limited use ICE, ICE that burn land fill or digester gas, 4SLB, 2SLB, and 4SRB.

2. All includes emergency ICE and limited use ICE

Summary of Applicability to Engines at Area Hap Sources

Area HAP Sources

Engine Type

Horse Power Rating

New / Existing

Applicability Trigger Date

SI ICE – All1

All hp

New

On or After:

6/12/2006

SI ICE – All1

All hp

Existing

Before:

6/12/2006

CI ICE – All2

All hp

New

On or After:

6/12/2006

CI ICE – All2

All hp

Existing

Before:

6/12/2006

1. All includes emergency ICE, limited use ICE, ICE that burn land fill or digester gas, 4SLB, 2SLB, and 4SRB.

2. All includes emergency ICE and limited use ICE

Table 5 - Applicability of 40 CFR 63, Subpart ZZZZ to the Elk Point Compressor Station:

Unit

Serial

Number

C-201

4EK02755

C-202

4EK02130

C-203

4EK00061

C-204

4EK03717

Unit Description

Fuel

Caterpillar G3516LE 4SLB

Compressor Engine

Caterpillar G3516LE 4SLB

Compressor Engine

Caterpillar G3516LE 4SLB

Compressor Engine

Caterpillar G3516LE 4SLB

Compressor Engine

Natural

Gas

Natural

Gas

Natural

Gas

Natural

Gas

Site

Rated

BHP

Commenced Construction,

Reconstruction, or Modification

Date

1,150

Prior to 12/19/2002

1,150

Prior to 12/19/2002

1,150

Prior to 12/19/2002

1,150

Prior to 12/19/2002

According to Red Cedar, the Elk Point Compressor Station is a major source as defined in Subpart

ZZZZ. Units C-201, C-202, C-203, and C-204 are four-stroke lean burn (4SLB) stationary RICE >

500 site-rated hp constructed before December 19, 2002, and have not been reconstructed since this

date. Therefore, these units are considered 4SLB existing stationary RICE. According to 40 CFR

63.6590(b)(3)(ii), these units have no requirements under this part or 40 CFR Part 63, Subpart A,

including initial notification requirements. Therefore, Subpart ZZZZ does not apply.

40 CFR Part 63, Subpart DDDDD (Boiler MACT): National Emission Standards for Hazardous Air

Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters. This

rule establishes national emission limitations and work practice standards for HAPs emitted from new and

existing industrial boilers, institutional boilers, commercial boilers, and process heaters that are located at

major sources of HAPs, as defined by 40 CFR 63.7575. Boilers or process heaters that combust natural gas

for fuel or have a maximum designed heat input capacity less than 10 MMBtu/hr are subject to work practice

standards in lieu of emission limits. For the purposes of this subpart, an affected unit is an existing unit if it

was constructed prior to June 4, 2010.

According to Red Cedar, the Elk Point Compressor Station is not a major source of HAP as defined

under §63.7575. Therefore, Subpart DDDDD does not apply.

40 CFR Part 63, Subpart JJJJJJ: National Emission Standards for Hazardous Air Pollutants for Area

Sources: Industrial, Commercial, and Institutional Boilers. This rule establishes national emission standards

and operating limitations for HAPs emitted from new and existing industrial boilers, institutional boilers,

as defined in §63.11237, and commercial boilers that are fueled by coal, biomass, or oil and are located at

area sources of HAPs, as defined in §63.2, except for as specified in §63.11195. For the purposes of this

subpart, an affected unit is an existing unit if it was constructed prior to June 4, 2010.

According to information provided by Red Cedar, there are no non-natural gas-fired industrial,

commercial, or institutional boilers as defined in this subpart located at the Elk Point Compressor

Station. Therefore, Subpart JJJJJJ does not apply.

Compliance Assurance Monitoring (CAM) Rule

40 CFR Part 64: Compliance Assurance Monitoring Provisions. According to 40 CFR 64.2(a), the CAM

rule applies to each Pollutant Specific Emission Unit (PSEU) at a major source that is required to obtain a

Part 70 or Part 71 permit if the unit satisfies all of the following criteria:

The unit is subject to an emission limitation or standard for the applicable regulated air pollutant

other than an emissions limitation or standard that is exempt under §64.2(b)(1);

“§64.2(b)(1): Exempt emission limitations or standards. The requirements of this part shall not

apply to any of the following emission limitations or standards:

(i)

(ii)

(iii)

(iv)

(v)

(vi)

Emission limitations or standards proposed by the Administrator after November 15, 1990,

pursuant to Section 111 or 112 of the Act;

Stratospheric ozone protection requirements under Title VI of the Act;

Acid Rain Program requirements pursuant to Sections 404, 405, 406, 407(a), 407(b) or 410

of the Act;

Emissions limitations or standards or other applicable requirements that apply solely under

an emissions trading program approved or promulgated by the Administrator under the Act

that allows for trading emissions with a source or between sources;

An emissions cap that meets the requirements specified in §70.4(b)(12) or §71.6(a)(13)(iii)

of this chapter;

Emission limitations or standards for which a Part 70 or 71 permit specifies a continuous

compliance determination method, as defined in §64.1.”

“§64.1: Continuous compliance method means a method, specified by the applicable standard or

an applicable permit condition, which:

(1) Is used to determine compliance with an emission limitation or standard on a continuous basis,

consistent with the averaging period established for the emission limitation or standard; and

(2) Provides data either in units of the standard or correlated directly with the compliance limit.”

The unit uses a control device to achieve compliance with any such limit or standard; and

The unit has pre-control device emissions of the applicable regulated pollutant that are equal to or

greater than 100% of the amount, in tons per year, required for a source to be classified as a major

source.

According to Red Cedar, the CAM rule does not apply to any of the units at the Elk Point

Compressor Station as the pre-controlled emissions for each unit are less than the major source

threshold. Therefore, CAM does not apply.

Chemical Accident Prevention Program

40 CFR Part 68: Chemical Accident Prevention Provisions. This rule applies to stationary sources that

manufacture, process, use, store, or otherwise handle more than the threshold quantity of a regulated

substance in a process. Regulated substances include 77 toxic and 63 flammable substances which are

potentially present in the natural gas stream entering the facility and in the storage vessels located at the

facility. The quantity of a regulated substance in a process is determined according to the procedures

presented under §68.115. §68.115(b)(l) and (2)(i) indicate that toxic and flammable substances in a mixture

do not need to be considered when determining whether more than a threshold quantity is present at a

stationary source if the concentration of the substance is below one percent by weight of the mixture.

§68.115(b)(2)(iii) indicates that prior to entry into a natural gas processing plant, regulated substances in

naturally occurring hydrocarbon mixtures need not be considered when determining whether more than a

threshold quantity is present at a stationary source. Naturally occurring hydrocarbon mixtures include

condensate, field gas, and produced water.

According to Red Cedar, Elk Point Compressor Station does not have regulated substances above

the threshold quantities in this rule. Therefore, the facility is not subject to the requirement to

develop and submit a risk management plan.

Stratospheric Ozone and Climate Protection

40 CFR Part 82, Subpart F: Air Conditioning Units. According to Red Cedar, no maintenance, service,

repair or disposal of any equipment containing Class I or Class II refrigerants chlorofluorocarbons (CFCs))

occurs at Elk Point Compressor Station. However, if Red Cedar were to engage in any of the afore

mentioned activities it must comply with the standards of part 82, subpart F for recycling and emissions

reduction if they service, maintain, or repair the air conditioning units in any way or if they dispose of the

units.

40 CFR Part 82, Subpart H: Halon Fire Extinguishers. According to Red Cedar, there are no halon fire

extinguishers at Elk Point Compressor Station. However, should Red Cedar obtain any halon fire

extinguishers, then it must comply with the standards of 40 CFR Part 82, Subpart H for halon emissions

reduction, if it services, maintains, tests, repairs, or disposes of equipment that contains halon or uses such

equipment during technician training. Specifically, Red Cedar would be required to comply with 40 CFR

Part 82 and submit an application for a revision to this Title V permit.

Mandatory Greenhouse Gas Reporting

40 CFR Part 98: This rule requires sources above certain emission thresholds to calculate, monitor, and

report greenhouse gas emissions. The requirements of 40 CFR Part 98 and CAA §307(d)(1)(V), the CAA

authority under which 40 CFR Part 98 was promulgated, however, need not be included in a tribal-issued

Part 70 permit because those requirements are not included in the definition of “applicable requirement” in

either 40 CFR Part 70 or RAC 1-103(11). Although the rule is not an applicable requirement under 40 CFR

Part 70 or the RAC, the source is not relieved from the requirement to comply with the rule separately from

compliance with its Part 70 operating permit. It is the responsibility of each source to determine whether

Part 98 is applicable and to comply, if necessary.

4. Public Participation

a. Public Notice

Per RAC § 2-109, all Part 70 draft operating permits shall be publicly noticed and made available for public

comment. Public notice is given by publication in a newspaper of general circulation in the area where the

source is located or in a state publication designed to give general public notice, to persons on a mailing list

developed by the Tribe, including those who request in writing to be on the list, and by other means if

necessary to assure adequate notice to the affected public. If an interested person would like to be added to

the Tribe’s mailing list to be informed of future actions on permits issued by the Tribe, please send your

name and address:

by United State Postal Service to:

by any other delivery service to:

Part 70 Permitting Contact

Southern Ute Indian Tribe

Environmental Programs Department

PO Box 737 MS #84

Ignacio, Colorado 81137

Part 70 Permitting Contact

Southern Ute Indian Tribe

Environmental Programs Department

398 Ouray Drive

Ignacio, Colorado 81137

Public notice for the draft permit was published in the Durango Herald on May 1, 2024, and the Southern

Ute Drum on May 3, 2024, in order to provide opportunity for public comment on the draft permit and the

opportunity to request a public hearing.

b. Opportunity for Comment

Members of the public were given an opportunity to review a copy of the draft permit prepared by the Tribe,

the application, this statement of basis for the draft permit, and all supporting materials for the draft permit.

Copies of these documents were available at:

Southern Ute Indian Tribe

Environmental Programs Department

Air Quality Division

71 Mike Frost way

Ignacio, Colorado 81137

All documents were available for review at the Southern Ute Indian Tribe’s Environmental Programs

Department office Monday through Friday from 9:00 a.m. to 4:00 p.m. (excluding holidays).

Any interested person was given the opportunity to submit written comments on the draft Part 70 operating

permit during the public comment period to the Part 70 Permit Contact at the address listed above. The

Tribe has considered and addressed comments in making a final decision on the permit. The Tribe keeps a

record of the commenters and of the issues raised during the public participation process.

Anyone, including the applicant, who believes any condition of the draft permit was inappropriate should

have raised all reasonably ascertainable issues and submitted all arguments supporting his or her position

by the close of the public comment period. Any supporting materials submitted must have been included in

full and may not have been incorporated by reference, unless the material had already been submitted as

part of the administrative record in the same proceeding or consisted of Environmental Commission, tribal,

state or Federal statutes and regulations, EPA documents of general applicability, or other generally

available reference material.

c. Opportunity to Request a Hearing

A person may submit a written request for a public hearing to the Part 70 Permit Contact, at the address

listed above, by stating the nature of the issues to be raised at the public hearing. Based on the number of

hearing requests received, the Tribe will hold a public hearing whenever it finds there is a significant degree

of public interest in a draft operating permit. The Tribe will provide public notice of the public hearing. If

a public hearing is held, any person may submit oral or written statements and data concerning the draft

permit.

d. Public Petitions to the Administrator

In the event the Administrator of the United States Environmental Protection Agency does not object to

issuance of the permit, on the basis that it would not be in compliance with applicable requirements, within

its 45-day review period, any person may then petition the Administrator within 60 days after the expiration

of the Administrator’s 45-day review period to make such objection. Any such petition must be based only

on objections to the permit that were raised with reasonable specificity during the public comment period

unless the petitioner demonstrates that it was impracticable to raise such objections within such period, or

unless the grounds for such objections arose after such period. If the administrator objects to a permit as a

result of this petition, the Tribe shall not issue the permit until the Administrator’s objection has been

resolved, except that a petition for review does not stay the effectiveness of a permit or its requirements if

the permit was issued after the end of the 45-day review period and before the Administrator’s objection.

e. Appeal of Permits

Within 60 days after the Tribe’s final permit action, an applicant, any person who filed comments on the

draft permit or participated in the public hearing, and any other person who could obtain judicial review of

that action under applicable law, may appeal to the Environmental Commission in accordance with the

RAC and the Commission’s Procedural Rules.

Petitions for administrative review of final permit actions can be filed after the deadline designated by the

Commission only if they are based solely on grounds arising after the deadline for administrative review

has passed. Such petitions shall be filed no later than 60 days after the new grounds for review arise. If the

final permit action being challenged is the Tribe’s failure to take final action, a petition for administrative

review may be filed any time before the Tribe denies or issues the final permit.

f. Notice to Affected States/Tribes

As described in RAC § 2-109(3), public notice will be given by notifying all affected programs.

The following entities will be notified:



State of Colorado, Department of Public Health and Environment



State of New Mexico, Environment Department

Ute Mountain Ute Tribe, Environmental Programs Department

Navajo Tribe, Navajo Nation EPA

Jicarilla Tribe, Environmental Protection Office

National Park Service, Air Resources Division, Denver, CO

U.S. Department of Agriculture, United States Forest Service, Rocky Mountain

Region

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.