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Air Pollution Control

Title V Permit to Operate

Statement of Basis for Permit No. V-SUIT-0010-2019.03

Administrative Permit Revision

June 17, 2025

Red Cedar Gathering Company

Arkansas Loop and Simpson Treating Plants

Southern Ute Indian Reservation

La Plata County, Colorado

Description of Administrative Permit Revision

On November 1, 2024, Red Cedar Gathering Company (Red Cedar) requested to revise the

Arkansas Loop and Simpson Treating Plants’ synthetic minor permit SMNSR-SU-0000102020.004B by increasing the maximum throughput limit for unit RB-050 from 30 to 37

MMscf/day. Additionally, Red Cedar requested the Air Quality Division (AQD) incorporate the

revised synthetic minor permit into its Part 70 operating permit once it had been issued.

Synthetic minor permit SMNSR-SU-000010-2020.005B was issued on February 19, 2025, and

the Part 70 operating permit (V-SUIT-0010-2019.02) with the revised synthetic minor permit

incorporated was issued on March 20, 2025. On June 12, 2025, the AQD received a notification

from Red Cedar that there was an error in ‘Table 1 – Emission Units’ in the Part 70 operating

permit V-SUIT-0010-2019.02. The maximum throughput limit for emission unit RB-050 was not

updated from 30 to 37 MMscf/day. Along with this error notification, Red Cedar requested an

administrative permit revision to update the throughput of RB-050 in ‘Table 1 – Emission Units’

from 30 to 37 MMscf/day.

As requested by Red Cedar, the AQD made the following revisions to the permit:

Section I.2. – Table 1 – Emission Units



Updated throughput for emission unit ‘RB-050’ from 30 to 37 MMscf/day.

J.W. Williams Triethylene Glycol (TEG) Dehydrator

37 MMscf/day

R-002

Serial No.

N/A

Install Date:

1/1/1989

R-003

Serial No.

N/A

Install Date:

1/1/1992

R-004

Serial No.

N/A

Install Date:

1/1/1989

RB-050

Serial No.

N/A

Install Date:

1/1/1993

Condenser with

vapor routed to

reboiler

The AQD is making this revision as an administrative permit revision in accordance with RAC

2-111(2). The permit will be reissued as permit number V-SUIT-0010-2019.03.

For specific applicability information regarding the Part 70 permit for this facility, please reference

the Statement of Basis for permit number V-SUIT-0010-2019.00.

Air Pollution Control

Title V Permit to Operate

Statement of Basis for Permit No. V-SUIT-0010-2019.02

Administrative Permit Revision

March 20, 2025

Red Cedar Gathering Company

Arkansas Loop and Simpson Treating Plants

Southern Ute Indian Reservation

La Plata County, Colorado

Description of Administrative Permit Revision

On November 1, 2024, the AQD received a request from Red Cedar to revise three (3) minor

NSR permits (SMNSR-SU-000010-2020.001B, MNSR-SU-000010-2014.002, and SMNSR-SU000010-2020.004B). Details of these revisions can be found in the Summary section of the

respective minor NSR permits. Additionally, Red Cedar requested a revision to incorporate the

revised minor NSR permits into its Part 70 operating permit once they had been issued. The

AQD issued MNSR-SU-000010-2014.003 and SMNSR-SU-000010-2020.005B on February 19,

2025, and SMNSR-SU-000010-2020.002A on February 20, 2025.

Along with the revisions and incorporation of minor NSR permits, Red Cedar requested

language to be revised from permit condition III.2.1.1.

As requested by Red Cedar, the AQD made the following revisions to the permit:

Section III.2.1. - 40 CFR Part 63, Subpart HH – NESHAP



Section III.2.1.1.

o Revised gas analysis sampling timeframe language from “once during each 12month period” to “once per calendar year”

Section III.3. Tribal Minor New Source Review



Section III.3.1. Synthetic Minor New Source Review Permit Requirements

o Incorporated revised permit # SMNSR-SU-000010-2020.002A

Section III.3.2. Minor New Source Review Permit Requirements

o Incorporated revised permit # MNSR-SU-000010-2014.003

Section III.3.3. Synthetic Minor New Source Review Permit Requirements

o Incorporated revised permit # SMNSR-SU-000010-2020.005B.



Section III.3.4. General Provisions

AQD is making this revision as an administrative permit revision in accordance with RAC 2111(2). The permit will be reissued as permit number V-SUIT-0010-2019.02.

For specific applicability information regarding the Part 70 permit for this facility, please reference

the Statement of Basis for permit number V-SUIT-0010-2019.00.

Air Pollution Control

Title V Permit to Operate

Statement of Basis for Permit No V-SUIT-0010-2019.01

Administrative Permit Revision

April 18, 2024

Red Cedar Gathering Company

Arkansas Loop and Simpson Treating Plants

Southern Ute Indian Reservation

La Plata County, Colorado

Description of Administrative Permit Revision

On April 2, 2024, Red Cedar requested an administrative permit revision to incorporate changes made to

the following minor NSR permits, SMNSR-SU-000010-2020.001B – Simpson Treating Plant (replaces

SMNSR-SU-000010-2011.001) and SMNSR-SU-000010-2020.004B – Dehydrators (replaces SMNSRSU-000010-2019.004), issued by EPA Region 8.

As requested by Red Cedar, the AQD made the following revisions to the permit:

Section III.3. Tribal Minor New Source Review



Section III.3.1. Synthetic Minor New Source Review Permit Requirements

o Incorporated revised permit #SMNSR-SU-000010-2020.001B

Section III.3.3. Synthetic Minor New Source Review Permit Requirements

o Incorporated revised permit #SMNSR-SU-000010-2020.004B.

Additionally, the AQD made the following changes not requested in the permit revision application:

 Revised language to reflect the change of the Southern Ute Indian Tribe’s Environmental

Programs Division to the Environmental Programs Department, and the change from Air Quality

Program to Air Quality Division.



Section II.1.13. – Emergency Situations

o Removed emergency affirmative defense section.

o EPA’s rule, Removal of Title V Emergency Affirmative Defense Provisions From State

Operating Permit Programs and Federal Operating Permit Program

(https://www.federalregister.gov/d/2023-15067). The rule, effective August 21, 2023,

removed the affirmative defense provisions from the EPA’s Title V operating permit

program and required state, tribal, and local operating permit programs to submit revisions

to the EPA to remove the emergency affirmative defense provisions of 40 CFR §70.6(g)

from their Title V programs within 12-months of the rule effective date.

AQD is making this revision as an administrative permit revision in accordance with RAC 2-111(2). The

permit will be reissued as permit number V-SUIT-0010-2019.01.

For specific applicability information regarding the Part 70 permit for this facility, please reference the

Statement of Basis for permit number V-SUIT-0010-2019.00.

Air Pollution Control

Title V Permit to Operate

Statement of Basis for Permit No V-SUIT-0010-2019.00

March 2, 2021

Red Cedar Gathering Company

Arkansas Loop and Simpson Treating Plants

Southern Ute Indian Reservation

La Plata County, Colorado

1. Facility Information

a. Location

The Arkansas Loop and Simpson Treating Plants (Arkansas Loop), 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 1, T32N, R9W, in La Plata County, at latitude North

37.053195 and longitude West 107.785518. The Mailing address is:

Red Cedar Gathering Company

Arkansas Loop and Simpson Treating Plants

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 and Chief Operating Officer

Red Cedar Gathering Company

125 Mercado Street; Suite 201

Durango, CO 81301

(970) 764-6677

c. Description of Operations

The Arkansas Loop and Simpson Treating Plants, owned and operated by Red Cedar Gathering

Company, are located in southwestern Colorado within the exterior boundaries of the Southern Ute

Indian Reservation. These treating plants are considered a production field facility prior to the point

of custody transfer. Upstream of the facilities there are production (coal-bed methane) wells and

compressor stations connected to a gathering pipeline system to the inlet of the facilities. The

Arkansas Loop and Simpson Treating Plants provide natural gas field compression, CO2 removal,

and dehydration to remove entrained water vapor from the gas stream. The facilities are comprised

of 6 reciprocating internal combustion engines (RICE) for gas compression, 5 RICE for electric

generation, 3 amine plants for CO2 removal, 6 TEG dehydration units for gas dehydration, and 3

heaters associated with the amine plants. The facilities have several other heaters, tanks, and

miscellaneous equipment that qualify as insignificant emission units.

The process at Arkansas Loop begins with compressing gas wet natural gas to high pressure

(approximately 900 - 1000 psig) from the field pipeline and compressor stations. This gas is then

mixed with other gas (already at high pressure) and treated through the amine trains (Amine 1 & 2).

The gas is then sent through 4 glycol dehydrators to remove entrained water vapor from the gas

stream. The treated gas is then mixed with untreated gas so that the gas leaving the plant is less than

2% CO2.

The process at Simpson does not include compression of the natural gas. The gas comes into the

plant at high pressure and is treated to remove CO2 and then water, similar to Arkansas Loop. Like

Arkansas Loop the treated gas is then mixed with untreated gas to achieve a CO2 percentage of less

than 2%.

The facilities do not extract natural gas liquids from field gas nor fractionate mixed NGL's to natural

gas products. The facilities have storage vessels, but none with the potential for flash emissions. The

facilities have various heaters, tanks and pigging units that qualify as insignificant emission units.

Insignificant emissions for the pigging units occur only during launch and retrieval operations.

The facilities are scheduled to operate 24 hours per day, 7 days per week, 365 days per year. Fuel

used for all combustion units is pipeline quality natural gas from the facility process after

compression, CO2 removal and dehydration.

Arkansas Loop uses approximately 1,500 MMscf of fuel per year (4.0 MMscf/day, with a maximum

fuel use of approximately 0.2 MMscf/hr). Total natural gas processed through the facility (including

gas that bypasses the amine trains) is approximately 210 - 230 MMscf/day.

Simpson uses approximately 600 MMscf of fuel per year (1,680 scf/day, with a maximum fuel use

of approximately 0.1 MMscf/hr). Total natural gas processed through the facility is approximately

100 - 110 MMscf/day.

Two of the generator engines at Simpson are 4SLB SI RICE and are subject to 40 CFR 63 Subpart

ZZZZ and/or 40 CFR 60 Subpart JJJJ regulations (see applicability determination for specific

details). Red Cedar has selected oxidation catalyst as the means to satisfy the regulatory

requirements for Carbon Monoxide (CO) reduction.

All TEG dehydrators are controlled using a combination of condensers and vapors being routed to

the reboiler burner with the main fuel gas.

d. List of All Emission Units and Emission-Generating Activities

Red Cedar provided the information contained in Tables 1 and 2 in its Part 70 permit renewal 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, Arkansas Loop and Simpson Treating Plants

Emission

Unit ID

Control

Equipment

Description

Waukesha L5790GL (4SLB SI) Natural Gas-Fired Generator Engine

1,272 Nameplate Rated HP

E-001

Serial No.

C-12105/3

Install Date:

12/5/2016

E-002

Serial No.

C-12002/1

Install Date:

9/6/2017

E-003

Serial No.

WP1754A

Install Date:

11/18/2013

AFRC

Ajax / Superior 16SGTB (4SLB SI) Natural Gas-Fired Compressor Engine

2,650 Nameplate Rated HP

E-301

Serial No.

314849-S

Install Date:

5/24/2016

E-401

Serial No.

323799

Install Date:

3/25/2013

AFRC

E-501

Serial No.

311459-S

Install Date:

5/16/2018

E-601

Serial No.

314839-S

Install Date:

5/10/2010

Caterpillar G3606 (4SLB SI) Natural Gas-Fired Compressor Engine

1,775 Nameplate Rated HP

E-701

Serial No.

3XF00162

Install Date:

10/1/2014

E-801

Serial No.

3XF00252

Install Date:

10/1/2014

AFRC

Caterpillar G3516B LE (4SLB SI) Natural Gas-Fired Generator Engine

1,622 Nameplate Rated HP

X-1003

Serial No.

ZBC00211

Install Date:

12/1/2010

X-1004

Serial No.

ZBC00212

Install Date:

12/1/2010

Miratech

Oxidation

Catalyst with

AFRC

Optimized Process Furnaces, INC. Natural Gas-Fired Heat Medium Heater (Process Heater)

31.3 MMBtu/hr Maximum Design Heat Input Capacity

H-450

Serial No.

J-89-455

Install Date:

1/1/1989

None

Optimized Process Furnaces, INC. Natural Gas-Fired Heat Medium Heater (Process Heater)

36.7 MMBtu/hr Maximum Design Heat Input Capacity

H-701

Serial No.

J-90-476

Install Date:

1/1/1990

None

Optimized Process Furnaces, INC. Natural Gas-Fired Heat Medium Heater (Process Heater)

80 MMBtu/hr Maximum Design Heat Input Capacity

H-781

Serial No.

2009-022-Alt1

Install Date:

12/1/2010

None

J.W. Williams Triethylene Glycol (TEG) Dehydrator

37 MMscf/day

R-002

Serial No.

N/A

Install Date:

1/1/1989

R-003

Serial No.

N/A

Install Date:

1/1/1992

R-004

Serial No.

N/A

Install Date:

1/1/1989

J.W. Williams Triethylene Glycol (TEG) Dehydrator

30 MMscf/day

RB-050

Serial No.

N/A

Install Date:

1/1/1993

Q.B. Johnson Triethylene Glycol (TEG) Dehydrator

70 MMscf/day

X-1001

Serial No.

N/A

Install Date:

3/22/2011

X-1002

Serial No.

N/A

Install Date:

3/22/2011

Condenser

with vapor

routed to

reboiler

Condenser

with vapor

routed to

reboiler

Condenser

with vapor

routed to

reboiler

Propak Systems, Amine Plant

65 MMscf/day

Amine 1

Serial No.

N/A

Install Date:

1/1/1989

None

1/1/1990

None

12/1/2010

None

N/A

None

Propak Systems, Amine Plant

75 MMscf/day

Amine 2

Serial No.

N/A

Install Date:

Thomas Russell Co., Amine Plant

140 MMscf/day

Amine 3

Serial No.

N/A

Install Date:

Fugitive Emissions

FUG

Serial No.

N/A

Install Date:

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 permit renewal application that the emission units in Table 2, below, are

insignificant. The application provided calculations for heater/reboiler emissions based on EPA’s AP-42

emission factors. 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, Arkansas Loop and Simpson Treating Plants

Emission Unit

Amount

Description

Size

Units

R-002 – 050

H-001 – 020

CATH16

H-850

TK-510, 511

TK-180

TK-901 – 903

TK-980

TK-981, 982

TK-506

TK-506A

TK-508

TK-508A

T-804

GT-1

V-409

BGS-2

V-487, 488

TK-801

TK-881

TK-882

TK-884

TK-886

TK-887, 888

TK-889

TK-890

TK-893

TK-894

TK-895

TEG Reboiler

Catalytic Heater

Catalytic Heater (Oil Separator Building)

Evaporation Pond Heater

Glycol Storage Tank

Glycol Recovery Tank

Waste Oil Sump Tank

Generator Oil Makeup Tank

Generator Coolant Tank

Compressor Oil Makeup Tank (South)

Compressor Oil Makeup Tank (North)

Coolant Storage Tank

Compressor Coolant Drain Tank

Waste Oil Tank

Gasoline Tank

Amine Storage Tank

Below Grade Sump Tank

TEG Reboiler

Inlet Coalescing Filter Dump Tank

Heat Medium Makeup Storage Tank

Heat Medium PSV Blowdown Tank

TEG Makeup Storage Tank

Dehy Still Vent Tank

Coolant Tank

Used Engine Oil Tank

Engine Oil Tank

TEG Recovery Tank

Process and Oily Water Drain Tank

Oily Water Sump Tank

0.6

0.012

2.6

750

4,200

300

1,001

500

1,600

1,650

1,000

300

8,820

1,000

3,000

7,481

1.2

8,820

125

8,820

2,100

1,316

542

2,100

3,780

MMBtu/hr

gal

MMBtu/hr

gal

e. Facility Construction and/or Permitting History

The Arkansas Loop and Simpson Treating Plants commenced operations in 1989. The initial Part 71

operating permit, V-SU-0010-00.00 was issued on March 2000. A minor modification was made to the

initial permit and the permit was reissued on May 1, 2001 as V-SU-0010-00.01. A renewal permit, VSU-0010-05.00, was issued on April 17, 2007. The permit was administratively amended three times:

August 17, 2007 (#V-SU-0010-05.01), February 5, 2008 (#V-SU-0010-05.02), and July 3, 2008 (#V-SU0010-05.03). A minor permit revision request was replaced by a significant permit revision request and

the permit was issued in October 2010 as V-SU-0010-05.04. The Part 71 operating permit was revised

again and reissued as V-SU-00010-2005.05. A minor new source review permit, SMNSR-SU-0000102011.001, was issued on June 6, 2014. A minor new source review permit, MNSR-SU-000010-2014.002,

was issued on August 28, 2014. An initial Part 70 operating permit replaced the Part 71 operating permit

on January 6, 2015 as V-SUIT-0010-2015.00. A minor new source review permit, SMNSR-SU-0000102017.003, was issued on November 16, 2018. SMNSR-SU-000010-2017.003 was revised and reissued as

SMNSR-SU-000010-2019.004. The Part 70 operating permit was renewed on March 2, 2021 and issued

as V-SUIT-0010-2019.00.

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 Arkansas Loop and Simpson Treating Plants was listed by Red Cedar in Forms “GIS”,

“PTE”, and the various forms “EMISS” of the Part 70 operating permit renewal 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, Arkansas Loop and Simpson Treating Plants

Regulated Air Pollutants

in tpy

Largest

Single

HAP

(CH2O)

GHGs

(CO2e

mtpy)

NOX

VOC

SO2

PM10

Lead

Total

HAPs

E-001

21.7

9.8

0.0

0.4

32.0

0.0

3.8

3.2

4,634.4

E-002

21.7

9.8

0.0

0.4

32.0

0.0

3.8

3.2

4,634.4

E-003

21.7

9.8

0.0

0.4

32.0

0.0

3.8

3.2

4,634.4

E-301

36.5

6.1

0.0

0.8

38.9

0.0

6.0

4.4

10,705.9

E-401

36.5

6.1

0.0

0.8

38.9

0.0

6.0

4.4

10,705.9

E-501

36.5

6.1

0.0

0.8

38.9

0.0

6.0

4.4

10,705.9

E-601

36.5

6.1

0.0

0.8

38.9

0.0

6.0

4.4

10,705.9

E-701

11.9

15.2

0.0

0.6

42.7

0.0

5.5

4.4

8,495.6

E-801

11.9

15.2

0.0

0.6

42.7

0.0

5.5

4.4

8,495.6

X-1003

12.0

9.4

0.0

0.5

42.8

0.0

5.5

4.5

8,366.7

X-1004

12.0

9.4

0.0

0.5

42.8

0.0

5.5

4.5

8,366.7

H-450

14.1

0.8

0.0

1.1

11.9

0.0

15,367.4

H-701

16.3

0.9

0.0

1.2

13.7

0.0

17.773.2

H-781

36.1

2.0

0.0

2.7

30.3

0.0

39,277.7

R-002

0.0

4.3

0.0

2.0

0.0

1,720.5

R-003

0.0

3.7

0.0

1.8

0.0

1,720.5

R-004

0.0

0.7

0.0

0.3

0.0

1,720.5

RB-050

0.0

2.4

0.0

1.1

0.0

1,727.3

X-1001

0.0

6.6

0.0

1.1

0.0

5,705.1

X-1002

0.0

2.6

0.0

0.4

0.0

5,705.1

Amine1

0.0

2.1

0.0

1.5

0.0

83,120.9

Amine 2

0.0

2.5

0.0

1.8

0.0

95,908.7

Amine 3

0.0

3.0

0.0

2.7

0.0

127,878.3

Fugitives

0.0

3.9

0.0

0.00.0

0.0

5,300.0

Total IEUs

3.4

0.8

0.0

0.2

2.8

0.0

1.0

0.0

3,690.8

Total

328.8

139.3

0.0

11.8

481.3

0.0

71.1

45.0

479,294.2

2. Tribal Authority

Arkansas Loop and Simpson Treating Plants are 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 renewal 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 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

attainment areas

(tpy)

Regulated NSR pollutant

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)

Starting August 30, 2011 all minor modifications at existing major NSR sources, requests for synthetic

minor limitations, and the transferring of all previously established synthetic minor limits from Part 71

permits into minor NSR permits, became subject to the TMNSR rule. All existing true minor sources

were required to register with EPA by no later than March 1, 2013. All new minor sources constructed

between August 30, 2011 and September 2, 2014 were required to submit a registration form within 90

days of beginning operation and obtain a permit if a general permit is available for that source category.

All new true minor sources which are not in the oil and natural gas sector and intend to construct after

September 2, 2014 are required to apply for a preconstruction permit. After March 2, 2016 all true minor

sources and minor modifications in the oil and natural gas sector that intend to construct or modify will

have to apply for a preconstruction permit.

On June 5, 2014 EPA issued Arkansas Loop and Simpson Treating Plant synthetic minor new

source review permit #SMNSR-SU-000010-2011.001 to retain legally and practically enforceable

emission limits previously established in the source’s Part 71 permit. The requirements of the new

source review permit have been incorporated as applicable requirements into this Part 70 operating

permit. On August 28, 2014 EPA issued Arkansas Loop and Simpson Treating Plants the minor

new source review permit #MNSR-SU-000010-2014.002 to authorize construction of two (2)

1,767 horsepower 4-stroke lean-burn (4SLB) natural gas-fired reciprocating internal combustion

engines to provide additional natural gas compression at the Arkansas Loop portion of the facility.

On November 16, 2018 EPA issued a synthetic minor new source review permit #SMNSR-SU000010-2017.003 to establish permanent legally and practically enforceable requirements for

benzene emissions from the TEG dehydration units. That permit was revised and reissued as

#SMNSR-SU-000010-2019.004 on May 26, 2020. Therefore, Arkansas Loop and Simpson

Treating Plant are subject to the Tribal Minor New Source Review Rule.

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 any 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.

Arkansas Loop and Simpson Treating Plants are not a PSD named source. Therefore, the PTE threshold

for determining PSD applicability for this source is 250 tpy for criteria pollutants. The PTE for CO, VOC,

and NOx at Arkansas Loop and Simpson Treating Plants are above the major source thresholds, and the

facility is classified as major for PSD permitting purposes. Therefore, any project or major

modification at the site resulting in an increase of any regulated NSR pollutant must be compared

to the PSD significance levels rather than major source thresholds when determining PSD

applicability.

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.

As explained below, the Arkansas Loop and Simpson Treating Plants are subject to 40 CFR Part

60, Subpart Dc and Subpart JJJJ. Therefore, the General Provisions of Part 60 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, units H-450, H-701, and H-781 located at the Arkansas Loop and

Simpson Treating Plants, are potentially subject to this subpart. However, unit H-450 was

constructed prior to June 9, 1989, and is therefore not subject to the subpart. Units H-701 and H781 are steam generating units with a maximum design heat input capacity between 10 MMBtu/hr

and 100 MMBtu/hr that were constructed after June 9, 1989. Therefore, Subpart Dc applies to

units H-701 and H-781.

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 Arkansas Loop and Simpson Treating Plants have 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 Arkansas Loop and Simpson Treating Plants have 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).

According to Red Cedar, the Arkansas Loop and Simpson Treating Plants have 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 Arkansas Loop and Simpson Treating Plants do not extract natural

gas liquids from field gas, nor do they 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, there are no sweetening or sulfur recovery units at the Arkansas Loop

and Simpson Treating Plants. 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, Arkansas Loop and Simpson Treating Plants

Trigger Date

for

ApplicabilityManufactured

on or after

Unit

Serial No

Unit Description

Fuel

Maximum

Commence

Construction,

Modification, or

Reconstruction Date

E-001

C-12105/3

Waukesha L5790GL SI 4SLB

Power Generator

Natural

Gas

1,272

7/1/1996

Prior to

1/1/2008

E-002

C-12002/1

Waukesha L5790GL SI 4SLB

Power Generator

Natural

Gas

1,272

3/1/1996

Prior to

1/1/2008

E-003

WP1754A

Waukesha L5790GL SI 4SLB

Power Generator

Natural

Gas

1,272

12/13/1990

Prior to

1/1/2008

E-301

314849-S

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Natural

Gas

2,650

4/25/1991

Prior to

7/1/2007

E-401

323799

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Natural

Gas

2,650

9/3/1993

Prior to

7/1/2007

E-501

311459-S

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Natural

Gas

2,650

9/3/1993

Prior to

7/1/2007

E-601

314839-S

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Natural

Gas

2,650

9/1/1989

Prior to

7/1/2007

E-701

3XF00162

Caterpillar G3606 SI 4SLB

Compressor Engine

Natural

Gas

1,775

3/31/1998

Prior to

7/1/2007

E-801

3XF00252

Caterpillar G3606 SI 4SLB

Compressor Engine

Natural

Gas

1,775

5/25/2001

Prior to

7/1/2007

X-1003

ZBC00211

Caterpillar G3516B LE SI

4SLB Power Generator

Natural

Gas

1,622

7/27/2010

After

7/1/2007

Yes

X-1004

ZBC00212

Caterpillar G3516B LE SI

4SLB Power Generator

Natural

Gas

1,622

8/3/2010

After

7/1/2007

Yes

Manufacture

Date

Subject

to NSPS

Subpart

JJJJ

According to Red Cedar, this subpart potentially applies to units: E-301, E-401, E-501, E-601, E701, E-801, E-001, E-002, E-003, X-1003, and X-1004. However, because units: E-001, E-002

and E-003 are 4SLB engines ≥ 500 hp but ≤ 1,350 hp and were manufactured prior to January 1,

2008 (the trigger date for 4SLB engines with maximum engines ≥ 500 hp but ≤ 1,350 hp as

defined in §60.4230) these engines are not subject to Subpart JJJJ. Units E-301, E-401, E-501, E601, E-701, and E-801 are > 500 hp, were manufactured prior to July 1, 2007 (the trigger date for

SI engines > 500 hp) and have not been reconstructed or modified (as defined in §60.15) since

June 12, 2006. Therefore, these engines are not subject to this subpart.

Units X-1003 and X-1004 are 4SLB engines > 500 hp that were manufactured after July 1, 2007.

Therefore, the requirements of Subpart JJJJ apply to units X-1003 and X-1004.

Should Red Cedar propose to install a replacement engine for E-301, E-401, E-501, E-601, E-701,

E-801, E-001, E-002, or E-003, which 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. Affected facilities under this subpart include gas wells,

compressors, pneumatic controllers, storage vessels, process unit equipment, and sweetening units. The

effective date for this subpart is October 15, 2012.

According to Red Cedar’s application, there are no affected facilities that commenced

construction, modification, or reconstruction after August 23, 2011 and on or before September

18, 2015. Therefore, the requirements of Subpart OOOO do 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 methane, VOC,

and SO2 emissions from affected facilities that commence construction, modification or reconstruction

after September 18, 2015. Affected facilities and equipment under this subpart include wells,

compressors, storage vessels, process unit equipment, sweetening units, pneumatic pumps and pneumatic

controllers.

According to Red Cedar, the Arkansas Loop and Simpson Treating Plants does not have any

affected facilities under the rule that commenced construction after September 18, 2015.

Therefore, Subpart OOOOa 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.

According to Red Cedar’s application, the Arkansas Loop and Simpson Treating Plants are subject

to 40 CFR Part 63, Subpart A. The facility has equipment subject to the requirements of subparts

HH, ZZZZ, and DDDDD. Therefore, the General Provisions of Part 63 apply as specified in

the relevant subparts.

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, 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.

Major Source Glycol Dehydrator Applicabilities

For facilities that are determined to be major HAP sources, each glycol dehydration unit is subject to the

glycol dehydration unit process vent standards of 40 CFR 63.765 for small or large dehydration units,

defined, as follows, in 40 CFR 63.760:

Small Glycol Dehydration Unit: a glycol dehydration unit, located at a major source, with an actual

annual average natural gas flowrate less than 85 thousand standard cubic meters per day or actual annual

average benzene emissions less than 0.90 Mg/yr, determined according to §63.772(b).

Large Glycol Dehydration Unit: a glycol dehydration unit with an actual annual average natural gas

flowrate equal to or greater than 85 thousand standard cubic meters per day and actual annual average

benzene emissions equal to or greater than 0.90 Mg/yr, determined according to §63.772(b). A glycol

dehydration unit complying with the 0.9 Mg/yr control option under §63.765(b)(1)(ii) is considered to be

a large dehydrator.

Area Source Dehydrator Applicabilities

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

whose potential to emits is 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 uncontrolled annual actual 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 Arkansas Loop and Simpson Treating Plants

According to Red Cedar, Arkansas Loop and Simpson Treating Plants have affected sources under

this subpart, upgrade natural gas, and are located prior to the point of custody transfer (and

therefore prior to the point at which natural gas leaves the natural gas production category and

enters the natural gas transmission and storage category). Because the facility is in the natural gas

production category only emissions from dehydration units and storage vessels need to be

aggregated when determining major source status. The total HAP emissions from the glycol

dehydrators and storage vessels are below major source thresholds.

Dehydration units R-002, R-003, R-004, RB-050, X-1001, and X-1002 are affected sources under

this rule. Red Cedar determined that actual annual average benzene emissions from each

dehydration unit were less than 0.90 megagrams per year using the procedures specified in 40

CFR 63.772(b)(2). Per §63.764(e), the dehydration units at Arkansas Loop and Simpson Treating

Plants are exempt from the requirements of §63.764(d). However, Red Cedar must keep records

of the exemption determination as specified in §63.774(d)(1) of Subpart HH.

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 Arkansas Loop and Simpson Treating Plants are not part of the

natural gas transmission and storage source category. 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 (RICE). This rule establishes

national emission limitations and operating limitations for HAPs emitted from stationary spark-ignition

reciprocating internal combustion engines (SI RICE) and stationary compression ignition reciprocating

internal combustion engines (CI RICE).

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

Summary of Applicability to Engines at Major Sources of HAPs

Major HAP Sources

Engine Type

Horse Power Rating

New / Existing

Applicability Trigger Date

SI RICE – All1

≥ 500 HP

New

On or After:

12/19/2002

SI RICE – 4SRB

> 500 HP

Existing

Before:

12/19/2002

SI RICE – All1

≤ 500 HP

New

On or After:

6/12/2006

SI RICE – All

≤ 500 HP

Existing

Before:

6/12/2006

CI RICE – All2

≥ 500 HP

New

On or After:

12/19/2002

CI RICE – Non Emergency

> 500 HP

Existing

Before:

12/19/2002

CI RICE – All2

≤ 500 HP

New

On or After:

6/12/2006

CI RICE – All2

≤ 500 HP

Existing

Before:

6/12/2006

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

2. All includes emergency RICE and limited use RICE

Summary of Applicability to Engines at Area Sources of HAPs

Area HAP Sources

Engine Type

Horse Power Rating

New / Existing

Applicability Trigger Date

SI RICE – All1

All HP

New

On or After:

6/12/2006

SI RICE – All

All HP

Existing

Before:

6/12/2006

CI RICE – All2

All HP

New

On or After:

6/12/2006

CI RICE – All

All HP

Existing

Before:

6/12/2006

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

2. All includes emergency RICE and limited use RICE

Applicability of 40 CFR 63, Subpart ZZZZ to the Arkansas Loop and Simpson Treating Plants:

Unit

Serial

Number

E-001

C-12105/3

E-002

C-12002/1

E-003

WP1754A

E-301

314849-S

E-401

323799

E-501

311459-S

E-601

314839-S

E-701

3XF00162

E-801

3XF00252

X-1003

ZBC00211

X-1004

ZBC00212

Unit Description

Waukesha L5790GL SI

4SLB Power Generator

Waukesha L5790GL SI

4SLB Power Generator

Waukesha L5790GL SI

4SLB Power Generator

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Ajax/Superior 16SGTB SI

4SLB Compressor Engine

Caterpillar G3606 SI 4SLB

Compressor Engine

Caterpillar G3606 SI 4SLB

Compressor Engine

Caterpillar G3516B LE SI

4SLB Power Generator

Caterpillar G3516B LE SI

4SLB Power Generator

Fuel

Site Rated

Commenced

Construction or

Reconstruction Date

Trigger Date

for Major

Source

Standards

Subject to

Major

Source

Standards

Natural Gas

1,124

7/1/1996

12/19/2002

Natural Gas

1,124

3/1/1996

12/19/2002

Natural Gas

1,124

12/13/1990

12/19/2002

Natural Gas

2,518

4/25/1991

12/19/2002

Natural Gas

2,518

9/3/1993

12/19/2002

Natural Gas

2,518

9/3/1993

12/19/2002

Natural Gas

2,518

9/1/1989

12/19/2002

Natural Gas

1,767

3/31/1998

12/19/2002

Natural Gas

1,767

5/25/2001

12/19/2002

Natural Gas

1,622

7/27/2010

12/19/2002

Yes

Natural Gas

1,622

8/3/2010

12/19/2002

Yes

The Arkansas Loop and Simpson Treating Plant is a major source of HAP under 40 CFR Part 63,

Subpart ZZZZ. Units E-301, E-401, E-501, E-601, E-701, E-801, E-001, E-002, and E-003 are

four-stroke lean-burn (4SLB) stationary RICE > 500 site-rated HP constructed prior to December

19, 2002 and have not been reconstructed since this date. These units are therefore considered

existing 4SLB stationary RICE. According to §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, Units E-301, E-401, E-501, E-601, E-701, E-801, E-001, E-002, and E-003 are not

subject to Subpart ZZZZ.

However, Red Cedar must keep a record of an applicability determination demonstrating that these

sources are not subject to Part 63, Subpart ZZZZ per §63.10(b)(3). These records must be kept at

Red Cedar’s headquarters in Durango, CO for a period of 5 years, or until the unit(s) becomes an

affected source(s).

Units X-1003 and X-1004 are four-stroke lean-burn (4SLB) stationary RICE > 500 site rated HP

constructed after December 19, 2002. These units are therefore considered new 4SLB stationary

RICE. Therefore, Units X-1003 and X-1004 are subject to the major source requirements for

new 4SLB engines.

40 CFR Part 63, Subpart DDDDD (Boiler MACT (for major sources)): 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 operating limitations for HAPs

emitted from new and existing industrial boilers, institutional boilers, commercial boilers, and process

heaters that are located at major sources of HAPs. 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.

The Arkansas Loop and Simpson Treating Plants are a major source as defined in §63.7575. This

subpart potentially applies to the triethylene glycol (TEG) reboilers and heat medium heaters at the

facility because these units are considered process heaters under the subpart. However, the TEG

reboilers are not subject to this subpart as they are listed as an affected source under Subpart HH,

per §63.7491(h). According to Red Cedar, units H-450 and H-701 are existing natural gas-fired

process heaters and H-781 is a new natural gas-fired process heater. All three units have a heat

input capacity greater than 10 MMBtu/hr. Therefore, units H-450, H-701, and H-781 are

subject to Subpart DDDDD.

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 Arkansas Loop

and Simpson Treating Plants 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, the Arkansas Loop and Simpson Treating Plants do have regulated

substances above the threshold quantities in this rule. Therefore, the facility is 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 the Arkansas Loop and Simpson Treating Plants. 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 the Arkansas Loop and Simpson Treating Plants. 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 modification to this Title V permit.

Mandatory Greenhouse Gas Reporting

40 CFR Part 98: Mandatory Greenhouse Gas Reporting. 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:

Southern Ute Indian Tribe

Environmental Programs Division

Part 70 Program

PO Box 737 MS #84

Ignacio, Colorado 81137

Southern Ute Indian Tribe

Environmental Programs Division

Part 70 Program

398 Ouray Drive

Ignacio, Colorado 81137

Public notice for the draft permit was published in the Durango Herald on July 15, 2020 and Southern Ute

Drum on July 17, 2020 in order to provide opportunity for public comment on the draft permit and the

opportunity to request a public hearing. The AQP received significant comments during the public

comment period and the permit was revised. Public notice for the draft permit was published for a second

time in the Durango Herald on November 4, 2020 and the Southern Ute Drum on November 6, 2020.

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

permit. Copies of these documents were on the Southern Ute Air Quality Program webpage at

https://www.southernute-nsn.gov/justice-and-regulatory/epd/air-quality/air-permitting/, and at:

Southern Ute Indian Tribe

Environmental Programs Division

Air Quality Program

71 Mike Frost Way

Ignacio, Colorado 81137

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

Division 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. 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 believed any condition of the draft permit was inappropriate, could

raise all reasonably ascertainable issues and submit 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

RAC 2-109(8) 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.