§ 3179.203 - Storage vessels.

§ 3179.203 Storage vessels.

(a) A storage vessel is subject to this section if the vessel:

(1) Contains production from a Federal or Indian lease, or from a unit or communitized area that includes a Federal or Indian lease; and

(2) Is not subject to any of the requirements of 40 CFR part 60, subparts OOOO or OOOOa, but would be subject to one of those subparts if it were a new, modified or reconstructed source.

(b) Beginning January 17, 2019, and within 30 days after any new source of production is added to the storage vessel after January 17, 2019, the operator must determine, record, and make available to the BLM upon request, whether the storage vessel has the potential for VOC emissions equal to or greater than 6 tpy based on the maximum average daily throughput for a 30-day period of production. The determination may take into account requirements under a legally and practically enforceable limit in an operating permit or other requirement established under a Federal, State, local or tribal authority that limit the VOC emissions to less than 6 tpy.

(c) If a storage vessel has the potential for VOC emissions equal to or greater than 6 tpy under paragraph (b) of this section, by January 17, 2019, or by January 17, 2020, if the operator must and will replace the storage vessel at issue in order to comply with the requirements of this section, the operator must:

(1) Route all tank vapor gas from the storage vessel to a sales line;

(2) If the operator determines that compliance with paragraph (c)(1) of this section is technically infeasible or unduly costly, route all tank vapor gas from the storage vessel to a device or method that ensures continuous combustion of the tank vapor gas; or

(3) Submit an economic analysis to the BLM through a Sundry Notice that demonstrates, and the BLM agrees, based on the information identified in paragraph (d) of this section, that compliance with paragraph (c)(2) of this section would impose such costs as to cause the operator to cease production and abandon significant recoverable oil reserves under the lease.

(d) To support a demonstration under paragraph (c) of this section, the operator must submit a Sundry Notice that includes the following information:

(1) The name, number, and location of each well, and the number of the lease, unit, or communitized area with which it is associated;

(2) The oil and gas production levels of each of the operator's wells on the lease, unit or communitized area for the most recent production month for which information is available;

(3) Data that show the costs of compliance with paragraph (c)(1) or (c)(2) of this section on the lease;

(4) The operator must consider the costs and revenues of the combined stream of revenues from both the gas and oil components and provide:

(i) The operator's projections of oil and gas prices, production volumes, quality (i.e., heating value and H₂S content), revenues derived from production, and royalty payments on production over the next 15 years or the life of the operator's lease, unit, or communitized area, whichever is less.

(e) If the rate of total uncontrolled VOCs released from a storage vessel declines to 4 tpy or less for any continuous 12 month period, the requirements of paragraph (c) no longer apply.

(f) Storage vessels subject to this section must be adequately sized to accommodate the operator's production levels and equipped to meet any applicable regulatory requirements regarding tank vapors.

(g) Storage vessels subject to this section may only vent through properly functioning pressure relief devices.

[81 FR 83078, Nov. 18, 2016, as amended at 82 FR 58073, Dec. 8, 2017]