Tribe / State of Colorado (2024)

Southern Ute Indian

Tribe / State of Colorado

Environmental

Commission Meeting

April 24, 2024

Agenda

New Business

• Appointment of New Commission Chair.

• Approval of April 24, 2024 Meeting Agenda.

• Approval of November 29, 2023 Meeting Minutes.

Reservation Air Code Revisions

The AQD is proposing removal of the Title V emergency affirmative defense provisions of 40 CFR

§70.6(g) from Article I and Article II: Part 1 of the RAC.

The revisions are in response to a July 21, 2023, EPA rulemaking titled “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).

Requires permit authorities to remove affirmative defense provisions within one year of effective

date of rule.

Provided permit holders a mechanism for avoiding liability for non-compliance with technologybased emissions limitations due to unavoidable emergency situations.

AQD is proposing the revisions via the Commission’s Direct Final Rulemaking process, because

the changes are federally mandated, and no adverse comments anticipated.

New Staff & New Roles

New Staff

• Rowan Kinney - Air Quality Scientist II - Compliance

• Reyes Shendo - Air Quality Specialist - Monitoring

• Mark Lamoreaux – Air Quality Scientist I – Permitting

• Lori Niewold – Grants Coordinator

EPA’s Updated Methane Rule

NSPS OOOO, OOOOa, OOOOb, OOOOc

• These rules were published on March 8, 2024, and

will be in effect beginning May 7, 2024.

• Includes updates to NSPS OOOO series rules to

reduce methane and VOCs from new, modified and

reconstructed sources.

• Also includes emission guidelines for states to follow

as they develop plans to limit methane from existing

sources.

• The Tribe has existing CAA authority to implement

the NSPS OOOO & OOOOa standards and plans to

propose to the Commission adoption of OOOOb in

the fall of 2024.

• Authority to implement OOOOc requires the

development of a State Implementation Plan or a

Tribal Implementation Plan.

EPA’s Updated Methane Rule

(Highlights)

❖ The final rule ensures that all well sites, centralized

production facilities and compressor stations are

routinely monitored for leaks.

❖ Adds zero emission standard for new process

controllers and for most new pumps after a oneyear phase in.

❖ Eliminates routine flaring of natural gas (methane)

from new oil wells after a two-year phase-in.

❖ Sets emissions standards for dry seal compressors, which

were not previously regulated.

❖ Requires the use of best management practices to

minimize or eliminate venting of emissions from gas well

liquids unloading.

❖ Expands options for LDAR and new technologies for leak

detection and repair.

❖ Establishes the methane Super-Emitter Program.

❖ Requires owners and operators to monitor flares

and other combustion control devices during

routine leaks and monitoring surveys.

Tribal Implementation Plan (TIP) for OOOOc

• A Tribal Implementation Plan (TIP) is an air quality plan developed by a tribe to help attain and/or maintain

NAAQS for CAPs and fulfill other requirements of the CAA.

• Unlike states, tribes are not required to adopt an implementation plan, however if a tribe does not develop a

plan, EPA will develop a Federal Implementation Plan that must be followed.

• EPA established Emissions Guidelines (EG) under section 111(d) of the CAA for GHGs emissions (in the form

of methane limitations) from existing sources (designated facilities) under the new NSPS OOOOc rule.

• The Tribe is beginning to research the pros and cons of developing a TIP for adopting the EG established in the

NSPS OOOOc rule.

• If the Tribe feels it would be a benefit to develop a TIP, we will seek approval from the Commissioners for the

development of a TIP at a later Commission meeting.

Climate Pollution Reduction Grant (CPRG)

Update

• The AQD received a Phase I CPRG planning grant in October 2023

• To qualify for the Phase II funding the AQD is responsible for three key deliverables under the Phase I

grant:

o (1) Quality Assurance Project Plan (QAPP) - which was completed and approved in January of 2024.

o (2) Priority Climate Action Plan (PCAP) - which was submitted to EPA April 1, 2024, and later

approved.

o (3) Implementation grant application- which is in its final stages of development and will be submitted

by May 1, 2024.

• Phase I grant also requires the development of a comprehensive GHG emissions inventory and

Comprehensive Climate Action Plan (CCAP), due in 2027.

• The CCAP will evaluate the GHG emissions reductions targets and climate resilience strategies which

could be realized on the Reservation from various types of projects or activities across different source

sectors and actions the Tribe could take to meet these goals.

Climate Pollution Reduction Grant (CPRG)

Update (continued)

• The Tribe’s grant proposal for Phase II implementation grant is to reduce greenhouse gas (GHG) and volatile

organic compound (VOC) emissions from minor sources of oil and gas on the Reservation through the Tribe’s

voluntary administration and implementation of several Clean Air Act (CAA) programs and standards

including:

o Delegation of the Federal Minor New Source Review Program in Indian Country - 40 CFR part 49,

subpart C, sections 49.151 through 49.164 (TMNSR).

o Delegation of 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, 40 CFR Part 49, Subpart C, Sections 49.101 through 49.105 (FIP).

o Adoption and implementation of the New Source Performance Standards (NSPS) Subparts OOOO,

OOOOa, and OOOOb.

o Evaluating the development of a Tribal Implementation Plan for adoption and implementation of NSPS

subpart OOOOc.

Title V Operating Permit Program

Updates

Title V Permitting

Title V sources are major sources that emit 100 tons of any single criteria air pollutant, and/or 10 tons per

year of any single hazardous air pollutant, or 25 tons of any combination of hazardous air pollutants.

Title V permits contain all of the regulations/requirements that a facility is subject to (Federal, preconstruction, prevention of significant deterioration, consent decrees, settlement agreements, etc). Title V

permits also require the permittee to certify compliance with all applicable rules and regulations every

year.

• The Tribe currently permits 33 Title V sources on the Reservation.

• Initial permit applications are required to be submitted within 1 year of becoming subject to Title V.

• Each Title V permit is valid for a period of 5 years.

• Title V permits can be modified by request from the permittee through either the administrative, minor,

or significant permit revision process.

Title V Permitting

Current and Recently Completed Permitting

❑ Processing ten permit renewals

❑ Processing two initial permit

❑ Processing one minor permit revision

❑ Completed one administrative permit revision since last EC

meeting.

❑ Continuing to review draft NSR and PSD permits from EPA

Region 8, and Title V and NSR permits from the State of New

Mexico and Colorado

❑ The AQD is expecting to permit 2 or more new Title V sources

in the next year

Title V Compliance Overview and Update

Overview

• The AQD administers compliance inspections to 33 permitted Title

V sources on the Reservation.

• Types of facilities with Title V permits on the Reservation include

natural gas processing plants, gas transmission facilities, and a

landfill.

• Compliance inspections conducted on a biannual monitoring

schedule approved by EPA.

Current Approved Compliance Monitoring Schedule:

• Fiscal Year 2023 (October 1, 2022 – September 30, 2023):

• 17 of 17 Title V facility inspections conducted.

• Fiscal Year 2024 (October 1, 2023 – September 30, 2024):

• 9 of 18 Title V facility inspections conducted.

Title V Enforcement

The AQD conducts civil enforcement for findings of non-compliance identified during compliance inspections. The

enforcement team determines if the non-compliance rises to the level of an alleged violation, and the appropriate

enforcement path is chosen based on the AQD Enforcement Procedures and Penalty Manual.

• Area of Concern (No violation, but could potentially lead to a violation if unaddressed)

• Informal (Minor or Moderate Violations)

• Compliance Advisory or Written Warning

• Formal (Major, Moderate, or Repeat Violations)

• Notice of Violation with Settlement Agreement

• Monetary Penalties are calculated based on EPA Civil Penalty Policy and considering multiple factors

• Actual or Potential Harm (actual release, toxicity of pollutant, sensitivity of the environment)

• Length of Time of Violation

• Regulatory Scheme (reporting, notifications, recordkeeping, testing, etc.)

• Size of Source

• Compliance History

• Mitigating Factors (voluntary disclosure, prompt correction, early settlement, etc.)

Title V Enforcement

Informal & Formal Enforcement

Informal enforcement actions

• Compliance Advisories/Warning letters

7

• 2022= 6

• 2023= 5 (to date)

6

Formal enforcement actions

6

5

5

4

• Notices of Violation

• 2022= 0

• 2023= 0 (to date)

3

2

Enforcement Summary

Total enforcement cases = 47

• Informal = 31

• Formal = 16

4

0 1

Informal

Formal

2015

0

1

2016

5

6

2

1

0

1

1

2017

1

2

2018

0

3

2019

7

1

2020

4

1

2021

4

2

0

0

2022

6

0

2023

5

0

Minor Source Program

A program for sources below the CAA “major source”

permit thresholds

Approximately 250 true minor oil and gas sources on

the Reservation

Collectively, these sources emit larger concentrations of

ozone precursor emissions than major sources

These sources are typically well-sites with compressor

engines, small compressor stations and produced water

injection wells

Minor Source Program Current Status

The Tribe and EPA have finalized a delegation

agreement

Agreement outlines authorities/roles and responsibilities

of the Tribe and EPA

The agreement has been sent to the EPA Region 8

administrator for signature.

The agreement will then be presented to the Southern

Ute Tribal Council for signature.

After both signatures have been obtained, the

agreement will be published in the Federal Register.

After the effective date, the AQD will be responsible for

issuing a minor source permits and processing minor

source registrations.

Compliance inspections may begin as early as 2025.

Ambient Monitoring Program

Update

Ozone

Nitrogen Dioxide

PM10

PM2.5

Visibility

Wind Speed/Direction

Relative Humidity

Ambient Temperature

Solar Radiation

Precipitation

Ute 1

(Ignacio)

X

X

X

X

X

X

X

X

X

Ute 3

(Bondad)

X

X

X

X

X

X

X

X

X

X

Mobile

(Lake Capote)

X

X

X

X

X

X

Ambient Monitoring Program Update Ozone

Ozone Standard : 70 ppb

Design Value (ppb)

70

65

60

66

64

65

65

64

66

50

66

67

66

40

30

20

2019

2020

2021

2022

2023

Ignacio/Ute 1

Bondad/Ute 3

Particulate Matter Monitoring

• Continuous PM2.5 & PM10 monitoring at Ignacio and Bondad stations.

• PM Monitoring on the Reservation is non-regulatory because high values are from “exceptional events”.

• Data is collected for the purpose of informing citizens in real-time of hazardous PM levels due to naturally

occurring forest fires, prescribed burns, and dust storms.

Ambient Monitoring Update - Real Time Air Quality

and Weather Resources

https://www.southernutensn.gov/government/departments/epd/airquality/ambient-monitoring/)

US EPA’s AirNow Web page:

https://www.airnow.gov/

2023 Comprehensive Emissions Inventory

The AQD will develop a comprehensive emissions

inventory for CY2023 for EPA reporting. This is a

summary of all emissions from all sources of emissions

on the Reservation.

An Information Collections Request will be sent out to

all oil and gas operators on the Reservation.

The collections request will be sent out at the end of

May or beginning of June to collect emissions data

from all facilities.

CDPHE Updates

Schedule Next Meeting