# Air Pollution Control (2023)

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/tribal%3Asouthern_ute%3Ab077757943913fa8

## Record

- **Collection:** Tribal code
- **Document type:** Tribal code

## Text

Air Pollution Control
Title V Permit to Operate
Statement of Basis for Permit No. V-SUIT-0035-2023.00
November 6, 2024
Red Cedar Gathering Company
Animas Compressor Station
Southern Ute Indian Reservation
La Plata County, Colorado
1. Facility Information
a. Location
The Animas 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
1, T33N, R10W, in La Plata County, at latitude North 37.137119 and longitude West -107.887193. The
Mailing address is:
Red Cedar Gathering Company
Animas 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) 764-6495

Responsible Official:
Coy Bryant
President and Director of Operations
Red Cedar Gathering Company
125 Mercado Street; Suite 201
Durango, CO 81301
(970) 764-6900

c. Description of Operations
According to Red Cedar’s application, the Animas Compressor Station is a mid-stream gathering/boosting
compressor station capable of processing roughly 22 MMscf/day. The station receives inlet gas from
multiple wells, with an inlet pressure of approximately 20 psi. The gas is compressed through four
compressors driven by Waukesha L7042GL lean burn compressor engines to approximately 300-350 psi.
After compression, the gas is processed through two tri-ethylene glycol dehydrators set in series (i.e. the
gas goes through one dehydration unit, then through the second unit). The gas comes in saturated and leaves
the station at less than 7 lbs H2O/MMscf. Power for lights and heat trace is provided by the generator, Unit
G-201.
d. List of All Units and Emission-Generating Activities

1

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 - Animas Compressor Station
Emission
Unit ID

Control
Equipment

Description
Waukesha L7042GL (4SLB SI) natural gas-fired compressor engines
1,377 nameplate rated hp

C-201

Serial No.

C-13152/1

Install Date:

11/05/2020

C-202

Serial No.

1202/S

Install Date:

06/18/2014

C-203

Serial No.

C-14214/2

Install Date:

06/01/2022

C-204

Serial No.

C-13406/1

Install Date:

09/19/2007

Cummins GTA8.3-LC-G1 (4SRB SI) natural gas-fired generator engine
185 nameplate rated hp
G-201

Serial No.

46349241

Install Date:

None

None

09/18/2014

Tri-ethylene Glycol (TEG) Dehydrator 25 (MMscf/day)
X-301

Serial No.

N/A

Install Date:

12/18/2000

X-302

Serial No.

N/A

Install Date:

12/18/2000

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 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.

2

Table 2 – Insignificant Emission Units
Red Cedar Gathering Company - Animas Compressor Station
Emission Unit ID Amount
Description
Size
X-301a, X-302a
H-101
H-401, H-402
H-501, H-502, H-508
TK-501
TK-502
TK-503
TK-504
TK-505
TK-506
TK-507
TK-508
TK-610
N/A

2
1
2
3
1
1
1
1
1
1
1
1
1
N/A

TEG Reboilers
Catalytic Heater
Catalytic Heater
Tank Heater
Waste Water Tank (Produced Water)
Waste Oil Tank
Glycol Still Column Vent Tank (X-301)
Glycol Still Column Vent Tank (X-302)
TEG Storage Tank
Lube Oil Storage Tank
Engine Coolant Storage Tank
Clean Water Blowcase Tank (Produced Water)
TEG Stock Tank
Fugitive Emissions

0.5
0.006
0.018
0.325
21,000
8,820
756
756
500
1,600
1,000
8,820
360
N/A

Units
MMBtu/hr
MMBtu/hr
MMBtu/hr
MMBtu/hr
gal
gal
gal
gal
gal
gal
gal
gal
gal
N/A

e. Facility Construction and/or Permitting History
DATE

DESCRIPTION OF ACTION

PERMIT NUMBER

December 18, 2000

Commenced Operation

N/A

May 1, 2003

Initial Part 71 Permit Issued

# V-SU-0035-02.00

September 1, 2003

Administrative Amendment

# V-SU-0035-02.01

Administrative Amendment
Update Responsible Official and Facility Contact.

# V-SU-0035-02.02

Administrative Amendment

# V-SU-0035-08.03

1 Part 71 Renewal Permit Issued

# V-SU-0035-08.01

June 22, 2006



August 23, 2007
January 1, 2009
August 27, 2010
September 13, 2013
July 16, 2014
March 20, 2015

st

Minor Revision
Reclassification as a major source
 Non-like-kind engine exchange
Initial Part 70 Permit Issued
Replaces EPA-issued permit # V-SU-0035-08.01
Minor Revision
 Administrative changes
 Non-like-kind engine exchange
Minor Revision
 Non-like-kind engine exchange


# V-SU-0035-08.01
# V-SUIT-0035-2013.00
# V-SUIT-0035-2013.01
# V-SUIT-0035-2013.02

October 8, 2018

1st Renewal Permit Issued

# V-SUIT-0035-2018.00

November 6, 2024

2nd Renewal Permit Issued

# V-SUIT-0035-2023.00

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.
3

The PTE for the Animas 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.
Table 3 - Potential to Emit
Red Cedar Gathering Company - Animas Compressor Station
Regulated Air Pollutants
in tpy (uncontrolled)

Emission
Unit ID

Largest
Single
HAP
(CH2O)

GHGs
(CO2e mtpy)

NOX

VOC

SO2

PM10

CO

Lead

Total
HAPs

C-201

18.06

5.60

0.00

0.39

32.51

0.00

4.25

3.49

6,113.88

C-202

18.06

5.60

0.00

0.39

32.51

0.00

4.25

3.49

6,113.88

C-203

18.06

5.60

0.00

0.39

32.51

0.00

4.25

3.49

6,113.88

C-204

18.06

5.60

0.00

0.39

32.51

0.00

4.25

3.49

6,113.88

G-201

21.98

0.12

0.00

0.10

3.64

0.00

0.17

0.11

551.39

X-301

0.00

8.60

0.00

0.00

0.00

0.00

3.10

0.00

6,511.40

X-302

0.00

6.00

0.00

0.00

0.00

0.00

2.40

0.00

4,390.10

Total IEUs

1.00

1.20

0.00

0.10

0.80

0.00

0.10

0.01

4,702.72

TOTAL

95.22

38.32

0.00

1.76

134.48

0.00

22.77

14.08

40,611.13

2. Tribal Authority
The Animas 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
4

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 renewal 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)
10
Nitrogen Oxides (NOx)
10
Sulfur Dioxide (SO2)
10
Volatile Organic Compounds (VOC)
5
PM10
5
PM2.5
3
Lead
0.1
Fluorides
1
Sulfuric Acid Mist
2
Hydrogen Sulfide (H2S)
2
Total Reduced Sulfur (including H2S)
2
Reduced Sulfur Compounds (including H2S)
2
Municipal Waste Combustor Emissions
10
Municipal Solid Waste Landfill Emissions
10
(measured as nonmethane organic compounds)

5

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 Animas 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 Animas 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
Animas 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.
As explained below, the Animas 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
6

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 Animas 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 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 Animas 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 Animas 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). The subpart does not apply to storage vessels with a capacity
greater than or equal to 151 cubic meters storing a liquid with a maximum true vapor pressure less than 3.5
kPa or with a capacity greater than or equal to 75 cubic meters but less than 151 cubic meters storing a
liquid with a maximum true vapor pressure less than 15.0 kPa.
According to Red Cedar, the Animas Compressor Station has one tank with a capacity greater than
75 m3 (~472bbl or 19,813 gal). TK-501 (21,000 gal), stores wastewater and contains no significant
amount of hydrocarbon liquids. Therefore, Subpart Kb 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 Animas Compressor
Station. Therefore, Subpart GG 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
7

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 Animas 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 Animas Compressor Station has no sweetening or sulfur recovery units.
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 - Animas Compressor Station
Unit

Serial No

C-201

C-13152/1

C-202

1202/S

C-203

C-14214/2

C-204

C-13406/1

Unit Description
Waukesha L7042GL
4SLB Compressor
Engine
Waukesha L7042GL
4SLB Compressor
Engine
Waukesha L7042GL
4SLB Compressor
Engine
Waukesha L7042GL
4SLB Compressor
Engine

Trigger Date
for
ApplicabilityManufactured
on or after

Fuel

Maximum
HP

Manufacture
Date

Commenced
Construction
Date

Natural
Gas

1,377

12/01/20011

Prior to
06/12/2006

07/01/2007

Natural
Gas

1,377

08/01/20001

Prior to
06/12/2006

07/01/2007

Natural
Gas

1,377

10/01/20021

Prior to
06/12/2006

07/01/2007

Natural
Gas

1,377

06/02/20021

Prior to
06/12/2006

07/01/2007

8

G-201
1.

46349241

Cummins GTA8.3-LCNatural
G1 4SRB Generator
Gas
Engine

185

11/01/20031

Prior to
06/12/2006

07/01/2008

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 July 1, 2007
(the trigger date for engines with a maximum engine power greater than or equal to 500 HP (except
lean burn engines with a maximum engine power greater than or equal to 500 HP and less than 1,350
HP)). Unit G-201 was manufactured prior to July 1, 2008 (trigger date for engines with a maximum
engine power less than 500 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, C-204, or G201 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 Animas Compressor Station does not have any affected facilities that
commenced construction, reconstruction, or modification after August 23, 2011, and on or before
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 Animas Compressor Station does not have any affected facilities that
commenced construction, reconstruction, or modification after September 18, 2015, and on or
before 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.

9

According to Red Cedar, the Animas Compressor Station does not have any affected facilities that
commenced construction, reconstruction, or modification 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 Animas Compressor Station is subject to the recordkeeping requirements
of 40 CFR 63 Subpart HH and to the applicable requirements of 40 CFR Part 63, Subpart ZZZZ.
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:
1)

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.

2)

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

3)

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:
10

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 annual actual 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 Animas Compressor Station
According to Red Cedar, the Animas 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. Per 40 CFR 63.764(e)(1)(ii), dehydration units X11

301 and X-302 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 Animas Compressor Station is 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 Animas Compressor Station:
Unit

Serial
Number

C-201

C-13152/1

C-202

1202/S

C-203

C-14214/2

Fuel

Site Rated
BHP

Commenced Construction,
Reconstruction, or
Modification Date

Natural Gas

1,247

Prior to 12/19/2002

Natural Gas

1,247

Prior to 12/19/2002

Natural Gas

1,247

Prior to 12/19/2002

Unit Description
Waukesha L7042GL 4SLB
Compressor Engine
Waukesha L7042GL 4SLB
Compressor Engine
Waukesha L7042GL 4SLB
Compressor Engine

12

C-204

C-13406/1

G-201

46349241

Waukesha L7042GL 4SLB
Compressor Engine
Cummins GTA8.3-LC-G1
4SRB Generator Engine

Natural Gas

1,247

Prior to 12/19/2002

Natural Gas

157

Prior to 06/12/2006

According to Red Cedar, the Animas 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. Unit G-201 is a four-stroke rich-burn (4SRB) stationary
RICE ≤ 500 hp constructed before June 12, 2006, and has not been reconstructed since this date.
Therefore, Unit G-201 is considered an existing stationary RICE and must comply with the
applicable emission limitations and operating limitations.
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 65.7575. 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 Animas Compressor Station is not a major source of HAPs, under the
definition of an oil and gas production field facility, as defined in 63.7575. The facility is a
compressor station that transports natural gas to a natural gas processing plant. Therefore, only HAP
emissions from glycol dehydration units and storage vessels with the potential for flash emissions
are included for the major source determination. 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 industrial, commercial, or
institutional boilers as defined in this subpart located at the Animas 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:
1)

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);

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“§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.”
2)

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

3)

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 Animas Compressor
Station since 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.

14

According to Red Cedar, the Animas 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 the Animas 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 the Animas 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

Part 70 Permitting Contact
Southern Ute Indian Tribe
Environmental Programs Department
15

PO Box 737 MS #84
Ignacio, Colorado 81137

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 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
16

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

17

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/tribal%3Asouthern_ute%3Ab077757943913fa8. Public record. Not legal advice.
