98-2714. National Emission Standards for Hazardous Air Pollutants: Oil and Natural Gas Production and Natural Gas Transmission and Storage  

  • [Federal Register Volume 63, Number 25 (Friday, February 6, 1998)]
    [Proposed Rules]
    [Pages 6288-6336]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 98-2714]
    
    
    
    [[Page 6287]]
    
    _______________________________________________________________________
    
    Part II
    
    
    
    
    
    Environmental Protection Agency
    
    
    
    
    
    _______________________________________________________________________
    
    
    
    40 CFR Part 63
    
    
    
    National Emission Standards for Hazardous Air Pollutants: Oil and 
    Natural Gas Production and Natural Gas Transmission and Storage; 
    Proposed Rule
    
    Federal Register / Vol. 63, No. 25 / February 6, 1998 / Proposed 
    Rules
    
    [[Page 6288]]
    
    
    
    ENVIRONMENTAL PROTECTION AGENCY
    
    40 CFR Part 63
    
    [AD-FRL-5955-1]
    RIN 2060-AE34
    
    
    National Emission Standards for Hazardous Air Pollutants: Oil and 
    Natural Gas Production and Natural Gas Transmission and Storage
    
    AGENCY: Environmental Protection Agency (EPA).
    
    ACTION: Proposed rules and notice of public hearing.
    
    -----------------------------------------------------------------------
    
    SUMMARY: These proposed national emission standards for hazardous air 
    pollutants (NESHAP) would limit emissions of hazardous air pollutants 
    (HAP) from oil and natural gas production and natural gas transmission 
    and storage facilities. These proposed rules would implement section 
    112 of the Clean Air Act (Act) and are based on the Administrator's 
    determination that oil and natural gas production and natural gas 
    transmission and storage facilities emit HAP identified on the EPA's 
    list of 188 HAP.
        The EPA estimates that approximately 65,000 megagrams per year (Mg/
    yr) of HAP are emitted from major and area sources in these source 
    categories. The primary HAP emitted by the facilities covered by these 
    proposed standards include benzene, toluene, ethyl benzene, mixed 
    xylenes (collectively referred to as BTEX), and n-hexane. Benzene is 
    carcinogenic and all can cause toxic effects following exposure. The 
    EPA estimates that these proposed NESHAPs would reduce HAP emissions in 
    the oil and natural gas production source category by 57 percent and in 
    the natural gas transmission storage source category by 36 percent.
        Also, the EPA is amending the list of source categories established 
    under section 112(c) of the Act. Natural gas transmission and storage 
    is being listed as a category of major sources and oil and natural gas 
    production is being listed as a category of area sources in addition to 
    its major source listing.
    
    DATES: Comments. Comments must be received on or before April 7, 1998. 
    For information on submitting electronic comments see the Supplementary 
    Information section of this document.
        Public Hearing. A public hearing will be held, if requested, to 
    provide interested persons an opportunity for oral presentation of 
    data, views, or arguments concerning the proposed standards for the oil 
    and natural gas production and the natural gas transmission and 
    storage. If anyone contacts the EPA requesting to speak at a public 
    hearing by March 9, 1998, a public hearing will be held on March 23, 
    1998, beginning at 9:30 a.m. Persons interested in attending the 
    hearing should notify Ms. JoLynn Collins, telephone (919) 541-5671, 
    Waste and Chemical Processes Group (MD-13), to verify that a hearing 
    will occur.
        Request to Speak at a Hearing. Persons wishing to present oral 
    testimony must contact the EPA by March 9, 1998, by contacting Ms. 
    JoLynn Collins, Waste and Chemical Processes Group (MD-13), U.S. 
    Environmental Protection Agency, Research Triangle Park, NC 27711, 
    telephone (919) 541-5671.
    
    ADDRESSES: Comments. Comments should be submitted (in duplicate, if 
    possible) to: Air and Radiation Docket and Information Center (MC-
    6102), Attention: Docket No. A-94-04, U.S. Environmental Protection 
    Agency, 401 M Street, SW, Washington, DC 20460. The EPA requests that a 
    separate copy of comments also be sent to Stephen Shedd, USEPA, Office 
    of Air Quality Planning and Standards, Research Triangle Park, NC 
    27711, telephone (919) 541-5397, fax (919) 541-0246 and E-mail: 
    [email protected] Comments and data may also be submitted 
    electronically by following the instructions listed in Supplementary 
    Information. No confidential business information (CBI) should be 
    submitted through e-mail.
        Background Information Document. The background information 
    document (BID) may be obtained from the U.S. Environmental Protection 
    Library (MD-35), Research Triangle Park, NC 27711, telephone (919) 541-
    2777. Please refer to ``National Emissions Standards for Hazardous Air 
    Pollutants for Source Categories: Oil and Natural Gas Production and 
    Natural Gas Transmission and Storage--Background Information for 
    Proposed Standards'' (EPA-453/R-94-079a, April 1997) for the BID. This 
    document may also be obtained electronically from the EPA's Technology 
    Transfer Network (TTN) (see SUPPLEMENTARY INFORMATION for access 
    information).
        Docket. A docket, No. A-94-04, containing information considered by 
    the EPA in development of the proposed standards for the oil and 
    natural gas production and natural gas transmission and storage source 
    categories, is available for public inspection between 8:00 a.m. and 
    4:00 p.m., Monday through Friday (except for Federal holidays) at the 
    following address: U.S. Environmental Protection Agency, Air and 
    Radiation Docket and Information Center (MC-6102), 401 M Street SW., 
    Washington DC 20460, telephone: (202) 260-7548. The docket is located 
    at the above address in Room M-1500, Waterside Mall (ground floor). The 
    proposed regulations, BID, and other supporting information are 
    available for inspection and copying. A reasonable fee may be charged 
    for copying.
    
    FOR FURTHER INFORMATION CONTACT: For information concerning the 
    proposed standards, contact Ms. Martha Smith, Waste and Chemical 
    Processes Group, Emission Standards Division (MD-13), U.S. 
    Environmental Protection Agency, Research Triangle Park, NC 27711, 
    (919) 541-2421, or electronically at: smith.martha@epamail.epa.gov.
    
    SUPPLEMENTARY INFORMATION: Regulated Entities. Regulated categories and 
    entities include:
    
    ------------------------------------------------------------------------
                 Category                  Examples of regulated entities   
    ------------------------------------------------------------------------
    Industry..........................  Condensate tank batteries, glycol   
                                         dehydration units, natural gas     
                                         processing plants, and natural gas 
                                         transmission and storage           
                                         facilities.                        
    ------------------------------------------------------------------------
    
        This table is not intended to be exhaustive, but rather provides a 
    guide for readers regarding entities likely to be regulated by this 
    action. This table lists the types of entities that the EPA is now 
    aware could potentially be regulated by this action. Other types of 
    entities not listed in the table could also be regulated. To determine 
    whether your facility is regulated by this action, you should carefully 
    examine the applicability criteria in Secs. 63.760 and 63.1270 of the 
    rules. If you have questions regarding the applicability of this action 
    to a particular entity, consult the person listed in the preceding FOR 
    FURTHER INFORMATION CONTACT section.
        Electronic comments can be sent directly to EPA at: A-and-R-
    Docket@epamail.epa.gov. Electronic comments must be submitted as an 
    ASCII file avoiding the use of special characters and any form of 
    encryption. Comments and data will also be accepted on disks in 
    WordPerfect in 5.1 or 6.1 file format or ASCII file format. All 
    comments and data in electronic form must be identified by the docket 
    number A-94-04. Electronic comments on this proposed rule may be filed 
    online at many Federal Depository Libraries.
        This document, the proposed regulatory texts, and BID are available 
    in Docket No. A-94-04 or by request from the EPA's Air and Radiation 
    Docket and Information Center (see ADDRESSES) or
    
    [[Page 6289]]
    
    access through the EPA web site at: http://www.epa.gov/ttn/oarpg.
        The following outline is provided to aid in reading the preamble to 
    the proposed oil and natural gas production and natural gas 
    transmission and storage NESHAPs.
    
    I. Background
        A. Purpose of the Proposed Standards
        B. Technical Basis for the Proposed Standards
        C. Stakeholder and Public Participation
    II. Source Category Descriptions
        A. Source Category List
        B. Hazardous Air Pollutant Types
        C. Facility Types
    III. Summary of Proposed Standards
        A. Proposed Standards for Oil and Natural Gas Production for 
    Major and Area Sources
        B. Proposed Standards for Natural Gas Transmission and Storage 
    for Major Sources
    IV. Summary of Environmental, Energy, and Economic Impacts
        A. HAP Emission Reductions
        B. Secondary Environmental Impacts
        C. Energy Impacts
        D. Cost Impacts
        E. Economic Impacts
    V. Area Source Finding
    VI. Glycol Dehydration Unit Nationwide HAP Emissions Estimates
    VII. Definition of Major Source for the Oil and Natural Gas Industry
        A. Definition of ``Associated Equipment''
        B. Definition of Facility
    VIII. Rationale for Proposed Standards
        A. Selection of Hazardous Air Pollutants for Control
        B. Selection of Emission Points
        C. Definition of Affected Source
        D. Determination of MACT Floor
        E. Oil and Natural Gas Production NESHAP-Regulatory Alternatives 
    for Existing and New Major Sources
        F. Oil and Natural Gas Production NESHAP-Regulatory Alternatives 
    for Existing and New Area Sources
        G. Natural Gas Transmission and Storage NESHAP-Regulatory 
    Alternatives for Existing and New Major Sources
        H. Selection of Format
        I. Selection of Test Methods and Procedures
        J. Selection of Monitoring and Inspection Requirements
        K. Selection of Recordkeeping and Reporting Requirements
    IX. Relationship to Other Standards and Programs Under the Act
        A. Relationship to the Part 70 and Part 71 Permit Programs
        B. Relationship Between the Oil and Natural Gas Production and 
    the Organic Liquids Distribution (Non-Gasoline) Source Categories
        C. Relationship of Proposed Standards to the Pollution 
    Prevention Act
        D. Relationship of Proposed Standards to the Natural Gas STAR 
    Program
        E. Overlapping Regulations
    X. Solicitation of Comments
        A. Potential-to-Emit
        B. Definition of Facility
        C. Interpretation of ``Associated Equipment'' in Section 
    112(n)(4) of the Act
        D. Regulation of Area Source Glycol Dehydration Units
        E. HAP Emission Points
        F. Storage Vessels at Natural Gas Transmission and Storage 
    Facilities
        G. Cost Impact and Production Recovery Credits
    XI. Administrative Requirements
        A. Docket
        B. Paperwork Reduction Act
        C. Executive Order 12866
        D. Regulatory Flexibility
        E. Unfunded Mandates
    
    I. Background
    
    A. Purpose of the Proposed Standards
    
        The Act was developed, in part,
    
    * * * to protect and enhance the quality of the Nation's air 
    resources so as to promote the public health and welfare and 
    productive capacity of its population [the Act, section 101(b)(1)].
    
    Oil and natural gas production and natural gas transmission and storage 
    facilities are major and area sources of HAP emissions. The EPA 
    estimates that approximately 65,000 Mg/yr of HAP are emitted from major 
    and area sources in the oil and natural gas production source category 
    and 320 Mg/yr of HAP are emitted from major and area sources in the 
    natural gas transmission and storage source category. The primary HAP 
    associated with oil and natural gas that have been identified include 
    BTEX and n-hexane. Exposure to these chemicals has been demonstrated to 
    cause adverse health effects. The adverse health effects associated 
    with the exposure to these specific HAP are discussed briefly in the 
    following paragraphs. In general, these findings have only been shown 
    with concentrations higher than those in the ambient air.
        Benzene, one of the HAP associated with this NESHAP, has been 
    classified as a known human carcinogen on the basis of observed 
    increases in the incidence of leukemia in exposed workers. In addition, 
    short-term inhalation of high benzene levels may cause nervous system 
    effects such as drowsiness, dizziness, headaches, and unconsciousness 
    in humans. At even higher concentrations of benzene, exposure may cause 
    death, while lower concentrations may irritate the skin, eyes, and 
    upper respiratory tract. Long-term inhalation exposure to benzene may 
    cause various disorders of the blood, and toxicity to the immune 
    system. Reproductive disorders in women, as well as developmental 
    effects in animals, have also been reported for benzene exposure.
        Short-term inhalation of relatively high concentrations of toluene 
    by humans may cause nervous system effects such as fatigue, sleepiness, 
    headaches, and nausea, as well as irregular heartbeat. Repeated 
    exposure to high concentrations may cause additional nervous system 
    effects, including incoordination, tremors, decreased brain size, 
    involuntary eye movements, and may impair speech, hearing, and vision. 
    Long-term exposure of toluene in humans has also been reported to 
    irritate the skin, eyes, and respiratory tract, and to cause dizziness, 
    headaches, and difficulty with sleep. Children whose mothers were 
    exposed to toluene before birth may suffer nervous system dysfunction, 
    attention deficits, and minor face and limb defects. Inhalation of 
    toluene by pregnant women may also increase the risk of spontaneous 
    abortion. Not enough information exists to determine toluene's 
    carcinogenic potential.
        Short-term inhalation of high levels of ethyl benzene in humans may 
    cause throat and eye irritation, chest constriction, and dizziness. 
    Long-term inhalation of ethyl benzene by humans may cause blood 
    disorders. Animal studies have reported blood, liver, and kidney 
    effects associated with ethyl benzene inhalation. Birth defects have 
    been reported in animals exposed via inhalation; whether these effects 
    may occur in humans is not known. Not enough information exists 
    concerning ethyl benzene for determination of its carcinogenic 
    potential.
        Short-term inhalation of high levels of mixed xylenes (a mixture of 
    three closely-related compounds) in humans may cause irritation of the 
    nose and throat, nausea, vomiting, gastric irritation, mild transient 
    eye irritation, and neurological effects. Long-term inhalation of high 
    levels of xylene in humans may result in nervous system effects such as 
    headaches, dizziness, fatigue, tremors, and incoordination. Other 
    reported effects noted include labored breathing, heart palpitation, 
    severe chest pain, abnormal heart functioning, and possible effects on 
    the blood and kidneys. Developmental effects have been reported from 
    xylene exposure via inhalation in animals. Not enough information 
    exists to determine the carcinogenic potential of mixed xylenes.
        Short-term inhalation of high levels of n-hexane in humans may 
    cause mild central nervous system effects (dizziness, giddiness, slight 
    nausea, and headache) and irritation of the skin and mucous membranes. 
    Long-term inhalation exposure of high levels of n-hexane in humans has 
    been reported to
    
    [[Page 6290]]
    
    cause nerve damage expressed as numbness in the extremities, muscular 
    weakness, blurred vision, headache, and fatigue. Reproductive effects 
    have been reported in animals after inhalation exposure (testicular 
    damage in rats). Not enough information exists concerning n-hexane for 
    determination of its carcinogenic potential.
        The EPA estimates that the proposed NESHAP would reduce HAP 
    emissions from those impacted HAP emission points in the oil and 
    natural gas production source category by 57 percent and would reduce 
    HAP emissions from triethylene glycol (TEG) dehydration units in the 
    natural gas transmission and storage source category by 36 percent.
    
    B. Technical Basis for the Proposed Standards
    
        Section 112 of the Act regulates stationary sources of HAP. Section 
    112(b) of the Act lists 188 chemicals, compounds or groups of chemicals 
    as HAP. The EPA is directed by section 112 to regulate the emission of 
    HAP from stationary sources by establishing national emission 
    standards.
        Section 112(a)(1) of the Act defines a major source as:
    
    * * * any stationary source or group of stationary sources located 
    within a contiguous area and under common control that emits or has 
    the potential-to-emit considering controls, in the aggregate 10 tons 
    per year (tpy) or more of any HAP or 25 tpy or more of any 
    combination of HAP.
    
    An area source is defined as a stationary source that is not a major 
    source.
    
        For major sources, the statute requires the EPA to establish 
    standards to reflect the maximum degree of reduction in HAP emissions 
    through application of maximum achievable control technology (MACT). 
    Further, the EPA must establish standards that are no less stringent 
    than the level of control defined under section 112(d)(3) of the Act, 
    often referred to as the MACT floor. The proposed standards for major 
    sources in the oil and natural gas production and natural gas 
    transmission and storage source categories are based on the MACT floor 
    for these source categories.
        In developing standards for area sources of HAP emissions, the EPA 
    has discretion to establish standards based on (1) MACT, (2) generally 
    available control technology (GACT), or (3) management practices that 
    reduce the emission of HAP. The proposed standards for selected area 
    source TEG dehydration units are based on GACT. There is no statutory 
    ``floor'' level of control for GACT.
        Information on industry processes and operations, HAP emission 
    points, and HAP emission reduction techniques were collected through 
    section 114 questionnaires that were distributed to companies in the 
    oil and natural gas production and natural gas transmission and storage 
    source categories. The companies provided information on representative 
    facilities.
        This information was used, in part, as the technical basis in 
    determining the MACT level of control for the emission points covered 
    under the proposed standards. In addition to information collected in 
    the questionnaires, the EPA considered information available in the 
    general literature, as well as information submitted by industry on 
    technical issues subsequent to the questionnaire responses.
    
    C. Stakeholder and Public Participation
    
        Numerous representatives of the oil and natural gas industry and 
    other interested parties were consulted in the development of the 
    proposed standards. Industry assisted in data gathering, arranging site 
    visits, technical review, and sharing of industry-sponsored data 
    collection activities. A data base comprised of all industry-supplied 
    information was developed in the evaluation of HAP emissions and air 
    emission controls for these proposed standards.
        Estimates of HAP emissions from representative facilities in each 
    industry segment were developed by the EPA. To estimate HAP emissions 
    from glycol dehydration units in both the oil and natural gas 
    production and natural gas transmission and storage source categories, 
    the EPA utilized an emission model, GRI-GLYCalc TM (Version 
    3.0), developed by the Gas Research Institute (GRI). Inputs used by the 
    EPA for this model were primarily developed from information supplied 
    by industry.
        The trade associations and organizations that participated in the 
    development of the proposed rules on a regular basis include (1) the 
    American Petroleum Institute (API) and (2) GRI. Other interested 
    parties that participated in the development of the proposed standards 
    include the Independent Petroleum Association of America (IPAA), the 
    Audubon Society, the Interstate Oil and Gas Compact Commission (IOGCC), 
    the American Gas Association (AGA), and the Interstate Natural Gas 
    Association of America (INGAA).
        These interested parties, in addition to individual companies in 
    the oil and natural gas industry, were offered the opportunity to 
    provide technical review and comment during the development of the 
    proposed standards. In addition, interested parties provided technical 
    review and comment on the preliminary draft BID and preliminary draft 
    standards.
        Representatives from other EPA offices and programs were included 
    in the regulatory development process. These representatives' 
    responsibilities included review and internal concurrence with the 
    proposed standards. Therefore, the EPA believes that the impact of 
    these proposed regulations to other EPA offices and programs has been 
    adequately considered during the development of these regulations.
        This notice also solicits comment on the proposed standards and 
    offers a chance for a public hearing on the proposals in order to 
    provide interested persons the opportunity for oral presentation of 
    data, views, or arguments concerning the proposed standards.
    
    II. Source Category Descriptions
    
    A. Source Category List
    
        Oil and natural gas production was included on the EPA's initial 
    list of categories of major sources of HAP emissions established under 
    section 112(c)(1) of the Act. This list was published on July 16, 1992 
    (57 FR 31576).
        The EPA included natural gas transmission and storage in the 
    proposed initial listing of source categories that was published in 
    1991. The EPA's preliminary analysis that led to natural gas 
    transmission and storage being listed as a source category was based on 
    the estimated emissions of the HAP ethylidene dichloride (1,1-
    dichloroethane). Comments received on the proposed initial list 
    indicated that these estimates were not accurate.
        Based on its review of comments for the final initial list, the EPA 
    decided that it did not have sufficient available information that 
    supported that this source category could contain a major source of 
    HAP. Thus, the natural gas transmission and storage source category was 
    not included as a distinct source category in the final initial list of 
    source categories of major sources of HAP.
        In the development of the proposed standards for the oil and 
    natural gas production source category, information was obtained on 
    glycol dehydration unit BTEX emissions that are representative of both 
    oil and natural gas production facilities and natural gas transmission 
    and storage facilities. The information obtained indicates that natural 
    gas transmission and storage facilities have
    
    [[Page 6291]]
    
    the potential to be major HAP sources. In addition, industry has stated 
    to the EPA that there are major source TEG dehydration units in the 
    natural gas transmission and storage source category. Therefore, the 
    EPA is amending the source category list to add the natural gas 
    transmission and storage source category as a major source category 
    and, with this notice, is proposing a regulation that would apply to 
    major sources in this source category.
        The EPA has made a determination that there are area sources in the 
    oil and natural gas production source category that present a threat of 
    adverse effects to human health and the environment. Based on this 
    determination, referred to as an ``area source finding,'' the EPA is 
    amending the source category list to add oil and natural gas production 
    to the list of area source categories established under section 
    112(c)(1) of the Act. The area source finding supporting this listing 
    is discussed in section V of this preamble.
        Glycol dehydration units located at natural gas transmission and 
    storage facilities have similar HAP emissions and emission potential to 
    those located at oil and natural gas production facilities. The EPA is 
    currently evaluating whether TEG dehydration units located at natural 
    gas transmission and storage facilities that are area sources 
    constitute an unacceptable risk to public health or the environment and 
    should be listed and regulated as an area source. The EPA is soliciting 
    information and comment in this notice regarding the location and HAP 
    emissions from area source TEG dehydration units in the natural gas 
    transmission and storage source category (see sections V and X for 
    further discussion).
        The documentation supporting the listing of oil and natural gas 
    production as a source category (``Documentation for Developing the 
    Initial Source Category List,'' EPA-450/3-91-030, July 1992) describes 
    the source category as including
    
    * * * the processing and upgrading of crude oil prior to entering 
    the petroleum refining process and natural gas prior to entering the 
    transmission line.
    
    During the development of the proposed rules, industry requested that 
    HAP emissions associated with distribution of hydrocarbon liquids after 
    the point of custody transfer be addressed within the scope of the 
    organic liquids distribution (non-gasoline) source category and not the 
    oil and natural gas production source category. Custody transfer, as 
    defined in a previous rule, means transfer, after processing and/or 
    treatment in the producing operations, from storage vessels or 
    automatic transfer facilities to pipelines or any other forms of 
    transportation. Industry representatives commented that there are 
    differences in the HAP emission potential from facilities involved in 
    the distribution of petroleum liquids after the point of custody 
    transfer relative to other processes and operations in the oil and 
    natural gas production source category.
        The EPA, after evaluation of industry comments, is proposing that 
    HAP emissions associated with the distribution of hydrocarbon liquids 
    after the point of custody transfer would be more appropriately 
    addressed as part of the organic liquids distribution (non-gasoline) 
    source category. Therefore, the proposed rule for the oil and natural 
    gas production source category would not apply to those facilities that 
    distribute hydrocarbon liquids after the point of custody transfer (see 
    proposed regulation for definition of custody transfer).
        Facilities involved in the organic liquids distribution (non-
    gasoline) sector of the petroleum industry include (but are not limited 
    to) gathering stations, trunk-line stations, and station storage vessel 
    farms. The organic liquids distribution (non-gasoline) source category 
    is scheduled for regulation under section 112 of the Act by November 
    15, 2000.
        The EPA plans to define the organic liquids distribution (non-
    gasoline) source category (within that rulemaking) as including those 
    facilities that distribute hydrocarbon liquids after the point of 
    custody transfer. This will eliminate the potential for overlapping 
    regulatory requirements between the oil and natural gas production and 
    organic liquids distribution (non-gasoline) source categories.
    
    B. Hazardous Air Pollutant Types
    
        The primary HAP associated with the oil and natural gas production 
    and natural gas transmission and storage source categories include BTEX 
    and n-hexane. In addition, available information indicates that 2,2,4-
    trimethylpentane (iso-octane), formaldehyde, acetaldehyde, naphthalene, 
    and ethylene glycol may be present in certain process and emission 
    streams. Carbon disulfide (CS2), carbonyl sulfide (COS), and 
    BTEX may also be present in the tail gas streams from amine treating 
    and sulfur recovery units.
    
    C. Facility Types
    
        The oil and natural gas production and natural gas transmission and 
    storage source categories consist of various facilities used to recover 
    and treat products (hydrocarbon liquids and gases) from production 
    wells. These source categories include the processing, storage, and 
    transport of these products to (1) the point of custody transfer for 
    the oil and natural gas production source category or (2) the point of 
    delivery to the local distribution company (LDC) or final end user for 
    the natural gas transmission and storage source category. The 
    facilities in the oil and natural gas production source category that 
    the EPA is proposing requirements for include (1) glycol dehydration 
    units, (2) condensate tank batteries, and (3) natural gas processing 
    plants. The EPA is also proposing requirements for glycol dehydration 
    units located at facilities in the natural gas transmission and storage 
    source category.
    1. Glycol Dehydration Units
        The most widely used dehydration process in these source categories 
    is glycol dehydration. TEG dehydration units account for the majority 
    of glycol dehydration units, with ethylene glycol (EG) and diethylene 
    glycol (DEG) dehydration units accounting for the remaining population 
    of glycol dehydration units. In the dehydration process, natural gas is 
    contacted with glycol to remove water present in the natural gas. Some 
    portion of the HAP present in the natural gas are also removed by the 
    glycol. The ``rich'' glycol is then heated in a reboiler to remove 
    water vapor and other contaminants prior to recirculation in the 
    process. The reboiler vent of the glycol dehydration unit is the 
    primary identified source of HAP emissions for these source categories.
    2. Tank Batteries
        The term ``tank battery'' refers to the collection of process 
    equipment used to separate, upgrade, store, and transfer extracted 
    petroleum products and separated streams. These facilities handle crude 
    oil and condensate up to the custody transfer of these products to 
    facilities in the organic liquids distribution (non-gasoline) source 
    category. Separation and dehydration of natural gas can also occur at a 
    tank battery. A tank battery may serve an individual production well or 
    a collection of wells in the field.
        Tank batteries can be broadly classified as black oil tank 
    batteries or condensate tank batteries. Black oil means hydrocarbon 
    (petroleum) liquid with a gas-to-oil ratio (GOR) less than 50 cubic 
    meters (m3) (1,750 cubic feet (ft3)) per barrel 
    and an API gravity less than
    
    [[Page 6292]]
    
    40 degrees ( deg.). Condensate means hydrocarbon liquid that condenses 
    because of changes in temperature, pressure, or both, and remains 
    liquid at standard conditions. The majority of tank batteries, 
    approximately 85 percent, are black oil tank batteries and the 
    remainder are condensate tank batteries.
        The primary identified HAP emission points at tank batteries 
    include (1) process vents associated with glycol dehydration units and 
    (2) tanks and vessels storing volatile oils, condensate, and other 
    similar hydrocarbon liquids that have a flash emission potential. 
    Condensate tank batteries typically incorporate a glycol dehydration 
    unit in the process system.
        The EPA proposes to exempt from the oil and natural gas production 
    NESHAP those facilities that handle black oil exclusively. This 
    exemption is based on the EPA's proposed interpretation of associated 
    equipment in section 112(n)(4) of the Act. The EPA is proposing that 
    associated equipment be defined as all equipment associated with a 
    production well up to the point of custody transfer, except that glycol 
    dehydration units and storage vessels with flash emissions would not be 
    associated equipment. The EPA believes that this proposed definition 
    will provide the relief that Congress intended in section 112(n)(4) for 
    the numerous, widely dispersed, small emission points in the oil and 
    natural gas production source category (such as black oil tank 
    batteries) while preserving the EPA's ability to require appropriate 
    MACT or GACT controls for the most significant identified HAP emission 
    points in this source category (see section VII of this preamble for a 
    detailed discussion of associated equipment).
    3. Natural Gas Processing Plants
        A natural gas processing plant conditions natural gas by separating 
    natural gas liquids (NGLs) from field natural gas and, in addition, may 
    fractionate the NGLs into separate components such as ethane, propane, 
    butane, and natural gasoline. Natural gas processing may also include 
    amine treating and sulfur recovery units onsite to treat natural gas 
    streams.
        The primary identified HAP emission points at natural gas 
    processing plants include (1) the glycol dehydration unit reboiler 
    vent, (2) storage tanks, particularly those tanks that handle volatile 
    oils and condensates that may be significant contributors to overall 
    HAP emissions due to flash emissions, and (3) equipment leaks from 
    those components handling hydrocarbon streams that contain HAP 
    constituents. Other potential HAP emission point process vents are the 
    tail gas stream from amine treating processes and sulfur recovery 
    units. Limited information has been identified on the potential for HAP 
    emissions from these operations. Recent research published by GRI 
    indicates that these emission points have the potential to be 
    significant sources of HAP emissions. Comment is requested on potential 
    HAP emissions and emission rates from these operations and potential 
    applicable air emission controls.
    4. Natural Gas Transmission and Storage Facilities
        The natural gas transmission and storage source category consists 
    of transmission pipelines used for the long distance transport of 
    natural gas and underground natural gas storage facilities. These 
    facilities typically extend from the natural gas processing plant to 
    the local distribution company that delivers natural gas to the final 
    end user. In cases where there is no processing, these facilities may 
    be located anywhere from the well to the final end user.
        Specific equipment used in natural gas transmission includes the 
    land, mains, valves, meters, boosters, regulators, storage vessels, 
    dehydrators, compressors, and their driving units and appurtenances, 
    and equipment used for transporting gas from a production plant, 
    delivery point of purchased gas, gathering system, storage area, or 
    other wholesale source of gas to one or more distribution area(s).
        Underground natural gas storage facilities are subsurface 
    facilities that store natural gas that has been transferred from its 
    original location for the primary purpose of load balancing. Load 
    balancing is the process of equalizing the receipt and delivery of 
    natural gas (i.e., utilized for stockpiling natural gas for periods of 
    high demand, in particular, the winter heating season). Processes and 
    operations that may be located at an underground storage facility 
    include, but are not limited to, compression and dehydration.
        The primary identified HAP emission point at natural gas 
    transmission and storage facilities is the glycol dehydration unit 
    reboiler vent.
    5. Facility Populations
        There are a large number of glycol dehydration units and tank 
    batteries in the United States. The estimated population of glycol 
    dehydration units presented in various industry studies range from 
    under 20,000 to over 45,000 glycol dehydration units.
        For the purpose of estimating nationwide impacts of this proposed 
    NESHAP, the EPA selected 40,000 as the estimated total domestic 
    population of all types of dehydration units. Of this total, an 
    estimated 38,000 are glycol dehydration units and 2,000 are solid 
    desiccant dehydration units.
        Based on typical tank battery configurations and two studies 
    conducted for the API, the EPA estimates that there are approximately 
    94,000 tank batteries. Of this total, the EPA estimates that there are 
    81,000 black oil tank batteries and 13,000 condensate tank batteries.
        In 1996, according to the Oil and Gas Journal, there were 
    approximately 700 natural gas processing plants.
        The natural gas transmission and storage source category includes 
    over 480,000 kilometers (300,000 miles) of high-pressure transmission 
    pipelines and over 300 underground storage facilities. A recent GRI 
    report estimates that there are 1,900 compressor stations located along 
    transmission pipelines.
        The EPA estimates that approximately 440 existing facilities would 
    be affected by the proposed requirements of the production NESHAP for 
    major sources. In addition, the EPA estimates that out of an estimated 
    37,000 glycol dehydration units at area sources of HAP, 520 existing 
    TEG dehydration units would be affected by the proposed standards for 
    area sources because they meet or exceed the throughput and benzene 
    emission action levels and are also located in counties designated as 
    urban (see section III of this preamble for a discussion of area source 
    action levels).
        The EPA estimates that about 5 existing facilities would be 
    affected by the proposed requirements of the natural gas transmission 
    and storage NESHAP for major sources.
    
    III. Summary of Proposed Standards
    
    A. Proposed Standards for Oil and Natural Gas Production for Major and 
    Area Sources
    
        The proposed action would amend title 40, chapter I, part 63 of the 
    Code of Federal Regulations (CFR) by adding a new subpart HH--National 
    Emission Standards for Hazardous Air Pollutants from Oil and Natural 
    Gas Production Facilities. The proposed standards would apply to owners 
    and operators of facilities that process, upgrade, or store (1) 
    hydrocarbon liquids (with the exception of those facilities that handle 
    black oil exclusively) to the point of custody transfer and (2) natural 
    gas from the well up to and including the natural gas processing plant. 
    Standards are
    
    [[Page 6293]]
    
    proposed that would limit HAP emissions from the following emission 
    points at facilities that are major sources of HAP (1) process vents on 
    glycol dehydration units, (2) storage vessels with flash emissions, and 
    (3) equipment leaks at natural gas processing plants. In addition, 
    standards are proposed that would limit HAP emissions from selected 
    area source TEG dehydration units.
        As required by the Clean Air Act, the determination of a facility's 
    potential-to-emit HAP and, therefore, its status as a major or area 
    source, is based on the total of all HAP emissions from all activities 
    at a facility, except that emissions from oil or gas exploration or 
    production wells (and their associated equipment) and emissions from 
    pipeline compressor or pump stations may not be combined. A definition 
    of associated equipment is proposed in the proposed rulemaking. Further 
    discussion of the definition of associated equipment is presented in 
    section VII(A) of this preamble.
    1. General Standards
        The proposed standards for oil and natural gas production 
    facilities would require that the owner or operator of a major source 
    of HAP reduce HAP emissions from glycol dehydration units and storage 
    vessels through the application of air emission control equipment or 
    pollution prevention measures. In addition, the owner or operator of a 
    natural gas processing plant that is a major source would be required 
    to reduce HAP emissions from equipment leaks by establishing a leak 
    detection and repair (LDAR) program.
        The owner or operator of selected area source TEG dehydration units 
    that meet the criteria in the proposed standards would be required to 
    reduce HAP emissions from those TEG dehydration units.
        Owners and operators of facilities that process and store black oil 
    exclusively would not be subject to the proposed standards. Black oil 
    is defined in the proposed oil and natural gas production NESHAP as a 
    hydrocarbon liquid with (1) a GOR less than 50 m\3\ (1,750 ft\3\) per 
    barrel and (2) an API gravity less than 40 deg..
    2. Glycol Dehydration Unit Provisions
        The proposed standards would require that all process vents at 
    glycol dehydration units that are located at major HAP sources be 
    controlled unless (1) the actual flowrate of natural gas to the glycol 
    dehydration unit is less than 85 thousand cubic meters per day (m\3\/
    day) (3.0 million standard cubic feet per day (MMSCF/D), on an annual 
    average basis, or (2) if benzene emissions from the major source glycol 
    dehydration unit are less than 0.9 Mg/yr (1 tpy).
        HAP emissions from process vents at certain area source TEG 
    dehydration units would be required to be controlled unless (1) the 
    actual flowrate of natural gas to the glycol dehydration unit is less 
    than 85 thousand m\3\/day (3.0 MMSCF/D), on an annual average basis, or 
    (2) if benzene emissions from the area source glycol dehydration unit 
    are less than 0.9 Mg/yr (1 tpy). The proposed requirements are the same 
    for existing and new (1) major source glycol dehydration units and (2) 
    selected area source TEG dehydration units that meet the specified 
    criteria.
        In its analysis of available data, the EPA could not determine any 
    level of emission control for those glycol dehydration units with low 
    annual natural gas throughputs (less than 85 thousand m\3\/day (3.0 
    MMSCF/D), on an annual average basis, or a low benzene emission rate 
    (less than 0.9 Mg/yr (1 tpy)). Thus, the EPA is proposing the annual 
    throughput and benzene emission rate cutoffs for major sources. In 
    addition, the EPA's analysis indicated that control of HAP emissions 
    below these cutoff levels was not cost-effective for area source glycol 
    dehydration units.
        The EPA is proposing an additional applicability criteria for area 
    source TEG dehydration units. The additional proposed criteria would 
    limit air emission controls to those selected area source TEG 
    dehydration units located in counties classified as urban areas.
        Since the Act does not provide a definition of urban area, the EPA 
    used the U.S. Department of Commerce's Bureau of the Census statistical 
    data to classify every county in the U.S. into one of three 
    classifications (1) Urban-1 counties, (2) Urban-2 counties, or (3) 
    Rural counties. Urban-1 counties consist of counties with metropolitan 
    statistical areas (MSA) with a population greater than 250,000. Urban-2 
    counties are defined as all other counties designated urban by the 
    Bureau of Census (areas which comprise one or more central places and 
    the adjacent densely settled surrounding fringe that together have a 
    minimum of 50,000 persons). The urban fringe consists of contiguous 
    territory having a density of at least 1,000 persons per square mile. 
    Rural counties are those counties not designated as urban by the Bureau 
    of the Census (see docket item A-94-04, II-I-9).
        Figure 1 shows the methodology for assigning counties to each of 
    the three classifications. As seen in this diagram, if any part of a 
    county contains an Urban-1 area then the entire county is classified as 
    an Urban-1 area. For all remaining counties, if greater than 50 percent 
    of the population is classified as urban, then that county is 
    classified as an Urban-2 area. Counties not designated as Urban-1 or 
    Urban-2 by the above method are classified as Rural areas.
    
    BILLING CODE 6560-50-P
    
    [[Page 6294]]
    
    [GRAPHIC] [TIFF OMITTED] TP06FE98.005
    
    
    
    BILLING CODE 6560-50-C
    
    Figure 1. Urban/Rural County Classification Methodology
    
    [[Page 6295]]
    
        Thus, only those area source TEG dehydration units that (1) meet or 
    exceed the actual natural gas throughput applicability criteria, (2) 
    meet or exceed the benzene emission rate applicability criteria, and 
    (3) are located in a county classified as either Urban-1 or Urban-2 
    would be required to apply air emission controls on all process vents 
    at those units.
        The EPA also evaluated a risk-based distance applicability 
    threshold criterion as an alternative to the urban area applicability 
    criteria. This method (subsequently referred to as the ``risk-
    distance'' method) would target those area source TEG dehydration units 
    for regulation that present a potential health risk to exposed 
    populations. Under the risk-distance method, each area source TEG 
    dehydration unit that may be subject to control, based on actual 
    natural gas throughput and benzene emission rate, would have the option 
    of conducting a site-specific risk assessment. If this site-specific 
    risk assessment resulted in a maximum incremental lifetime cancer risk 
    above some threshold level, then the source would be required to 
    install controls necessary to reduce that risk to an acceptable level.
        After its evaluation of applicability alternatives, the EPA 
    rejected the risk-distance method. The risk based approach would focus 
    solely on the protection of the most exposed individual rather than the 
    general population. In addition, the EPA believes that the use of the 
    urban area as an applicability criteria provides ease of 
    implementation. This approach (1) limits the group of affected sources 
    to a well defined urban area group, (2) minimizes the non-productive 
    burden by exempting the non-urban area group of owners-operators and 
    regulatory agencies from compliance assessments, and (3) provides a 
    straightforward approach to compliance. Area sources will not need to 
    perform analyses to determine if they are affected by the rule if they 
    screen out based on the urban area criteria. Only those owner-operators 
    of area source TEG dehydration units in urban areas would need to 
    evaluate the need for control devices. By contrast, under the risk 
    distance approach, all owner-operators would need to do an analysis. 
    The EPA is requesting comment, along with supporting documentation, on 
    the use of a risk-distance criteria for regulation of area source TEG 
    dehydration units as an alternative to the urban area criteria (see 
    section X of this preamble).
        Glycol dehydration units that are required to use air emission 
    controls would be required to connect each process vent on the glycol 
    dehydration unit to an air emission control system that reduces HAP 
    emissions by 95 percent or greater (or to an outlet concentration of 20 
    parts per million by volume (ppmv) for combustion devices). Pollution 
    prevention measures, such as process modifications that reduce the 
    amount of HAP emissions generated, would be allowed as an alternative, 
    provided they achieve a HAP emission reduction, from uncontrolled 
    levels, of 95 percent or greater.
    3. Storage Vessel Provisions
        Standards are proposed for existing and new storage vessels 
    containing hydrocarbon liquids (other than black oil) that are located 
    at major HAP sources. The types of storage vessels that would be 
    regulated are those with the potential for flash emissions and that 
    have an actual throughput of hydrocarbon liquids equal to or greater 
    than 500 barrels per day (BPD).
        Flash emissions from storage occur when a hydrocarbon liquid with a 
    high vapor pressure flows from a pressurized vessel into a vessel with 
    a lower pressure. Flash emissions typically occur when a hydrocarbon 
    liquid, such as condensate, is transferred from a production separator 
    to a storage vessel. The proposed standards for storage vessels with 
    the potential for flash emissions would require that a storage vessel 
    be equipped with an air emission control system if the hydrocarbon 
    liquid in the storage vessel has a GOR equal to or greater than 50 m 
    \3\ (1,750 ft \3\) per barrel or an API gravity equal to or greater 
    than 40 deg. (i.e., the storage vessel has a potential for flash 
    emission losses). In addition, the storage vessel must have an actual 
    throughput of hydrocarbon liquids equal to or greater than 500 BPD.
        A storage vessel containing a hydrocarbon liquid subject to control 
    under the proposed standards would have to be equipped with a cover 
    vented through a closed-vent system to a control device that recovers 
    or destroys HAP emissions with an efficiency of 95 percent or greater 
    (or to an outlet concentration of 20 ppmv for combustion devices). The 
    EPA has included the 20 ppmv cutoff for cases where the HAP emission 
    concentration is already low, and meeting a 95 percent reduction in 
    emissions cannot be achieved.
        A pressurized storage vessel that is designed to operate as a 
    closed system would be considered in compliance with the proposed 
    requirements for storage vessels. External and internal floating roofs 
    that meet certain design criteria would also be allowed.
    4. Standards for Equipment Leaks
        The proposed rule requires owners and operators of natural gas 
    processing plants that are major HAP sources to control HAP emissions 
    from leaks from each piece of equipment that contains or contacts a 
    liquid or gas that has a total HAP concentration equal to or greater 
    than 10 percent by weight. The proposed equipment leak standards would 
    not apply to equipment that operates less than 300 hours per year.
        For equipment subject to these standards at either an existing or 
    new source, the owner or operator is required to implement a LDAR 
    program and perform equipment modifications, where necessary. Pumps in 
    light liquid service, valves in gas/vapor and light liquid service, and 
    pressure relief devices in gas/vapor service within a process unit that 
    is located on the Alaskan North Slope would be exempt from some of the 
    routine LDAR monitoring requirements.
    5. Air Emission Control Equipment Requirements
        Specific performance and operating requirements are proposed for 
    each control device installed by the owner or operator. Closed-vent 
    systems would be required to operate with no detectable emissions. Any 
    type of control device would be allowed that reduces the mass content 
    of either total organic compounds (less methane and ethane) or total 
    HAP in the gases vented to the device by 95 percent by weight or 
    greater (or to an outlet concentration of 20 ppmv for combustion 
    devices).
        Certain specifications for covers apply based on the type of cover 
    and where the cover is installed. Requirements are specified for vapor 
    leak-tight covers, and external and internal floating roofs installed 
    on storage vessels.
    6. Test Methods and Procedures
        An owner or operator must be able to demonstrate that exemption 
    from control criteria are met when controls are not applied. For 
    example, owners or operators of glycol dehydration units that do not 
    install air emission controls because the benzene emission rate from 
    the unit is less than 0.9 Mg/yr (1 tpy) must be able to demonstrate 
    that the benzene emission rate from the unit is less than 0.9 Mg/yr (1 
    tpy). In general, the selected exemption criteria minimize the 
    demonstration burden on owners and operators.
        Procedures for demonstrating the HAP emission reduction efficiency 
    of control devices and HAP concentration would be consistent with 
    procedures established in previously promulgated
    
    [[Page 6296]]
    
    NESHAP that apply to emission sources similar to those addressed in the 
    proposed standards. Engineering calculations, modeling (using EPA-
    approved models), and previous test results will generally be 
    acceptable means of demonstrating compliance, except where such means 
    are not conclusive. Test procedures are specified in the proposed rule 
    for use when testing is required to demonstrate compliance.
        An alternative test procedure is provided to demonstrate control 
    efficiency for when a condenser is used for controlling emissions from 
    a glycol dehydration unit reboiler vent. The inclusion of the 
    alternative test procedure is appropriate in this standard because of 
    difficulties associated with testing the inlet to a condenser in this 
    application.
        Procedures and test methods are also specified for detection of 
    equipment leaks.
    7. Monitoring and Inspection Requirements
        The proposed standards would require that the owner or operator 
    periodically inspect and monitor air emission control equipment. Visual 
    inspections and leak detection monitoring is required for certain types 
    of covers to ensure gaskets and seals are in good condition and for 
    closed-vent systems to ensure all fittings remain leak-tight.
        An owner or operator would also be required to visually inspect and 
    test covers and closed-vent systems to determine and ensure that they 
    operate with no detectable emissions.
        The proposed standards would also require semi-annual inspection 
    and leak detection monitoring of covers and annual inspection and leak 
    detection monitoring of closed-vent systems.
        The proposed standards would require continuous monitoring of 
    control device operation through the use of automated instrumentation. 
    The automated instrumentation would be used to measure and record 
    control device operating parameters indicating continuous compliance 
    with the standards.
    8. Recordkeeping and Reporting Requirements
        The recordkeeping and reporting requirements associated with the 
    proposed standards would primarily be those specified in the part 63 
    General Provisions (40 CFR part 63, subpart A). Major sources would be 
    subject to all of the requirements of the General Provisions with the 
    exception that (1) owners or operators would be allowed up to one year 
    from the effective date of the standards to submit the initial 
    notification described in Sec. 63.9, paragraph (b) of subpart A and (2) 
    owners or operators are allowed to submit (a) excess emissions and 
    continuous monitoring system (CMS) performance reports and (b) startup, 
    shutdown, and malfunction reports semi-annually instead of quarterly. 
    The EPA selected these specific exceptions due to the large number of 
    facilities that would need to submit notifications or reports related 
    to the proposed NESHAP. The EPA believes that these exceptions will not 
    adversely affect the implementation of the proposed regulation or 
    reduce its impact on HAP emissions.
        Area sources would be subject to all of the requirements of the 
    General Provisions with the exception that (1) owners or operators of 
    existing area sources would be allowed up to one year from the 
    effective date of the standards to submit the initial notification 
    required by the General Provisions, (2) an owner or operator of an area 
    source would not be required to develop and maintain a startup, 
    shutdown, and malfunction plan and would only need to submit reports of 
    malfunctions when they are not corrected within a specified time 
    period, and (3) excess emissions and continuous monitoring reporting 
    would be done annually, rather than as required by the General 
    Provisions.
    
    B. Proposed Standards for Natural Gas Transmission and Storage for 
    Major Sources
    
        The proposed standards would amend title 40, chapter I, part 63 CFR 
    by adding a new subpart HHH--National Emission Standards for Hazardous 
    Air Pollutants from Natural Gas Transmission and Storage Facilities. 
    The standards would apply to owners and operators of facilities that 
    process, upgrade, transport or store natural gas prior to delivery to a 
    LDC or a final end user.
    1. General Standards
        The proposed rule would require that process vents on glycol 
    dehydration units that are located at major HAP sources be controlled 
    unless (1) the actual flowrate of natural gas to the glycol dehydration 
    unit is less than 85 thousand m3/day (3.0 MMSCF/D), on an 
    annual average basis, or (2) if benzene emissions from the major source 
    glycol dehydration unit are less than 0.9 Mg/yr (1 tpy). The proposed 
    requirements are the same for existing and new glycol dehydration 
    units.
        Glycol dehydration units that are required to use air emission 
    controls would be required to connect each process vent on the glycol 
    dehydration unit to an air emission control system that reduces HAP 
    emissions by 95 percent or more or to an outlet concentration of 20 
    ppmv for combustion devices. As with the proposed standards for the oil 
    and natural gas production NESHAP, pollution prevention measures, such 
    as process modifications that reduce the amount of HAP emissions 
    generated, would be allowed as an alternative provided they achieve a 
    HAP emission reduction of 95 percent or greater or to an outlet 
    concentration of 20 ppmv for combustion devices.
        The EPA had insufficient information available to determine whether 
    (1) significant HAP-emitting storage vessels warranting control are 
    located at natural gas transmission and storage facilities or (2) 
    whether the same storage vessel regulatory controls being proposed for 
    the oil and natural gas production source category should be applied to 
    the natural gas transmission and storage source category. Therefore, 
    the EPA is soliciting comment in this proposal (see section X) on 
    whether the storage vessels being proposed for control under the oil 
    and natural gas production regulation are similar to those that exist 
    at natural gas transmission and storage facilities. The EPA is 
    specifically requesting information on (1) the type(s) of storage 
    vessels at natural gas transmission and storage facilities and (2) 
    whether the existing control level of storage vessels at natural gas 
    transmission and storage facilities is similar to the existing control 
    level of storage vessels at oil and natural gas production facilities.
    2. Air Emission Control Equipment Requirements
        Specific performance and operating requirements are proposed for 
    each control device installed by the owner or operator. Closed-vent 
    systems would be required to operate with no detectable emissions. Any 
    type of control device would be allowed that reduces the mass content 
    of either total organic compounds (less methane and ethane) or total 
    HAP in the gases vented to the device by 95 percent by weight or 
    greater (or to an outlet concentration of 20 ppmv for combustion 
    devices).
    3. Monitoring and Inspection Requirements
        The proposed monitoring and inspection requirements are (1) 
    periodic control equipment monitoring, (2) periodic leak detection 
    monitoring for closed-vent systems to ensure all fittings remain leak-
    tight, (3) semi-annual
    
    [[Page 6297]]
    
    inspection and leak detection monitoring of covers, (4) annual 
    inspection and leak detection monitoring of closed-vent systems, and 
    (5) continuous monitoring of control device operation. Continuous 
    monitoring would require the use of automated instrumentation that 
    would measure and record control device compliance operating 
    parameters.
    4. Recordkeeping and Reporting Requirements
        The recordkeeping and reporting requirements associated with the 
    proposed standards would primarily be those specified in the part 63 
    General Provisions (40 CFR Part 63 subpart A). Major sources would be 
    subject to all of the requirements of the General Provisions, except 
    that (1) owners or operators would be allowed up to one year from the 
    effective date of the standards to submit the initial notification 
    required under Sec. 63.9, paragraph (b) of subpart A and (2) owners or 
    operators are allowed to submit excess emissions, CMS performance 
    reports, and startup, shutdown, and malfunction reports semi-annually 
    instead of quarterly. These exceptions were selected to maintain 
    consistency between the major source provisions of these proposed 
    regulations.
    
    IV. Summary of Environmental, Energy and Economic Impacts
    
    A. HAP Emission Reductions
    
        For major sources, it is estimated by the EPA that the proposed oil 
    and natural gas production standards for existing sources would result 
    in a reduction of HAP emissions from 39,000 Mg/yr to 9,000 Mg/yr. In 
    addition, HAP emissions would be reduced by 3,000 Mg/yr for new sources 
    over the first 3 years after promulgation of these proposed standards.
        For existing area source TEG dehydration units in the oil and 
    natural gas production source category, the EPA estimates that the 
    proposed standards would result in a reduction of HAP emissions from 
    19,000 Mg/yr to 16,000 Mg/yr. In addition, HAP emissions would be 
    reduced by 330 Mg/yr for new sources over the first 3 years after 
    promulgation of these proposed standards.
        Tables 1 and 2 present the major and area source emission 
    reductions, in addition to other environmental, energy, and cost 
    impacts, that the EPA estimates would occur from the implementation of 
    the proposed standards for oil and natural gas production.
        The EPA estimates that the proposed natural gas transmission and 
    storage standards for existing sources would result in a reduction of 
    HAP emissions from 320 Mg/yr to 210 Mg/yr. No new major sources are 
    anticipated in the first three years after promulgation of this 
    proposed NESHAP. Table 3 presents the major source emission reductions, 
    in addition to other environmental, energy, and cost impacts, that the 
    EPA estimates would occur from the implementation of the proposed 
    standards for existing natural gas transmission and storage facilities.
        The air emission reductions achieved by these proposed standards, 
    when combined with the air emission reductions achieved by other 
    standards mandated by the Act, will accomplish the primary goal of the 
    Act to
    
    * * * enhance the quality of the Nation's air resources so as to 
    promote the public health and welfare and the productive capacity of 
    its population.
    
       Table 1.--Summary of Estimated Environmental, Energy, and Economic   
      Impacts for the Proposed Oil and Natural Gas Production Standards for 
                         Existing and New Major Sources                     
    ------------------------------------------------------------------------
                    Impact category                   Existing       New    
    ------------------------------------------------------------------------
    Estimated number of impacted facilities.......          440           44
    Emission reductions (Mg/yr):                                            
        HAP.......................................       30,000        3,000
        VOC.......................................       61,000        6,100
        Methane...................................        7,000          700
    Secondary environmental emission increases (Mg/                         
     yr):                                                                   
        Sulfur oxides.............................           <1><1 nitrogen="" oxides...........................="" 5=""><1 carbon="" monoxide...........................=""><1><1 energy="" (kilowatt="" hours="" per="" year)..............="" 38,000="" 3,800="" implementation="" costs="" (million="" of="" july="" 1993="" $):="" total="" installed="" capital...................="" 6.5="" 0.7="" total="" annual..............................="" 4.0="" 0.4="" ------------------------------------------------------------------------="" table="" 2.--summary="" of="" estimated="" environmental,="" energy,="" and="" economic="" impacts="" for="" the="" proposed="" oil="" and="" natural="" gas="" production="" standards="" for="" existing="" and="" new="" area="" sources="" ------------------------------------------------------------------------="" impact="" category="" existing="" new="" ------------------------------------------------------------------------="" estimated="" number="" of="" impacted="" facilities.......="" 520="" 52="" emission="" reductions="" (mg/yr):="" hap.......................................="" 3,300="" 330="" voc.......................................="" 7,200="" 720="" methane...................................="" 1,500="" 150="" secondary="" environmental="" emission="" increases="" (mg/="" yr):="" sulfur="" oxides.............................=""><1><1 nitrogen="" oxides...........................="" 2=""><1 carbon="" monoxide...........................=""><1><1 energy="" (kilowatt="" hours="" per="" year)..............="" none="" none="" implementation="" costs="" (million="" of="" july="" 1993="" $):="" total="" installed="" capital...................="" 6.9="" 0.7="" total="" annual..............................="" 6.2="" 0.6="" ------------------------------------------------------------------------="" [[page="" 6298]]="" table="" 3.--summary="" of="" estimated="" environmental,="" energy,="" and="" economic="" impacts="" for="" the="" proposed="" natural="" gas="" transmission="" and="" storage="" standards="" for="" existing="" major="" sources="">a                      
                                                                            
    ------------------------------------------------------------------------
                          Impact category                          Existing 
    ------------------------------------------------------------------------
    Estimated number of impacted facilities....................            5
    Emission reductions (Mg/yr):                                            
        HAP....................................................          110
        VOC....................................................        1,400
        Methane................................................           54
    Secondary environmental emission increases (Mg/yr):                     
        Sulfur oxides..........................................         None
        Nitrogen oxides........................................         None
        Carbon monoxide........................................         None
    Energy (Kilowatt hours per year)...........................         None
    Implementation costs (Thousand of July 1993 $):                         
        Total installed capital................................           57
        Total annual...........................................           46
    ------------------------------------------------------------------------
    a No new major sources are anticipated for this source category after   
      the effective date for new sources and in the first three years       
      following promulgation of the proposed rule.                          
    
    B. Secondary Environmental Impacts
    
        Other environmental impacts are those associated with operation of 
    certain air emission control devices. The adverse secondary air impacts 
    would be minimal in comparison to the primary HAP reduction benefits 
    from the implementation of the proposed control options for major and 
    for selected area oil and natural gas sources. The estimated national 
    annual increase in secondary air pollutant emissions that would result 
    from the use of a flare to comply with the proposed standards is 
    estimated to be less than 1.0 Mg (1.1 ton) for both sulfur oxide 
    (SOX) and carbon monoxide (CO) and less than 7 Mg (8 tons) 
    for nitrogen oxides (NOX). These estimates are for both 
    major and area oil and natural gas production sources. There are no 
    anticipated increases in secondary air pollutant emissions from the 
    implementation of the proposed control options for major sources at 
    natural gas transmission and storage facilities.
        The adverse water impacts anticipated from the implementation of 
    control options for the proposed standards are expected to be minimal. 
    The water impacts associated with the installation of a condenser 
    system for the glycol dehydration unit reboiler vent would be minimal. 
    This is because the condensed water collected with the hydrocarbon 
    condensate can be directed back into the system for reprocessing with 
    the hydrocarbon condensate or, if separated, combined with produced 
    water for disposal by reinjection.
        Similarly, the water impacts associated with installation of a 
    vapor control system would be minimal. This is because the water vapor 
    collected along with hydrocarbon vapors in the vapor collection and 
    redirect system can be directed back into the system for reprocessing 
    with the hydrocarbon condensate or, if separated, combined with the 
    produced water for disposal by reinjection.
        There are no adverse solid waste impacts anticipated from the 
    implementation of the proposed standards.
    
    C. Energy Impacts
    
        Energy impacts are those energy requirements associated with the 
    operation of emission control devices. The annual energy requirements 
    for each vapor collection/recovery system installed to comply with the 
    oil and natural gas production proposed standards is estimated to be 
    300 kilowatt hours per year (kw-hr/yr). It is estimated that 
    approximately 125 oil and natural gas production major source 
    facilities would install one or more of these control options. There 
    would be no national energy demand increase from the operation of any 
    of the control options analyzed under the proposed oil and natural gas 
    production standards for area sources and the national energy demand 
    increase for major sources would be an estimated 38,000 kw-hr/yr.
        There would be no national energy demand increase from the 
    operation of any of the control options analyzed under the proposed 
    natural gas transmission and storage standards for major sources.
        The proposed standards encourage the use of emission controls that 
    recover hydrocarbon products, such as methane and condensate, that can 
    be used on-site as fuel or reprocessed, within the production process, 
    for sale. Thus, the proposed standards have a positive impact 
    associated with the recovery of non-renewable energy resources.
    
    D. Cost Impacts
    
        The estimated total capital cost to comply with the proposed rule 
    for major sources in the oil and natural gas production source category 
    is approximately $6.5 million. The total capital cost for area sources 
    is estimated to be approximately $6.9 million.
        The total estimated net annual cost to industry to comply with the 
    proposed requirements for major sources in the oil and natural gas 
    production source category is approximately $4.0 million. The total net 
    annual cost for area source TEG dehydration units is approximately $6.2 
    million. These estimated annual costs include (1) the cost of capital, 
    (2) operating and maintenance costs, (3) the cost of monitoring, 
    inspection, recordkeeping, and reporting (MIRR), and (4) any associated 
    product recovery credits.
        The estimated total capital cost to comply with the proposed rule 
    for major sources in the natural gas transmission and storage source 
    category is approximately $57,000.
        The total estimated net annual cost to industry to comply with the 
    proposed requirements for major sources in the natural gas transmission 
    and storage source category is approximately $46,000. As with the oil 
    and natural gas production total estimated annual cost to industry, 
    this annual cost estimate includes (1) the cost of capital, (2) 
    operating and maintenance costs, (3) the cost of MIRR, and (4) any 
    associated product recovery credits.
        The EPA's impact analyses consider a facility's ability to handle 
    collected vapors. Some remotely located facilities may not be able to 
    use collected vapor for fuel or recycle it back into the process. In 
    addition, it may not be technically feasible for some facilities to
    
    [[Page 6299]]
    
    utilize the non-condensable vapor streams from condenser systems as an 
    alternative fuel source safely. An option for these facilities is to 
    combust these vapors by flaring.
        These concerns are reflected in the analyses conducted by the EPA. 
    In its analyses, the EPA estimated that (1) 45 percent of all impacted 
    facilities will be able to use collected vapors from installed control 
    options as an alternative fuel source for an on-site combustion device 
    such as a process heater or the glycol dehydration unit firebox, (2) 45 
    percent will be able to recycle collected vapors from installed control 
    options into a low pressure header system for combination with other 
    hydrocarbon streams handled at the facility, and (3) 10 percent will 
    direct all collected vapor to an on-site flare.
    
    E. Economic Impacts
    
        The EPA prepared an economic impact analysis that evaluates the 
    impacts of the regulation on affected producers, consumers, and 
    society. The economic analysis focuses on the regulatory effects on the 
    U.S. natural gas market that is modeled as a national, perfectly 
    competitive market for a homogenous commodity. The analysis does not 
    include a model to assess the regulatory effects on the world crude oil 
    market because the regulation is anticipated to affect less than 5 
    percent of the total U.S. crude oil production, and thus, it is 
    unlikely to have any influence on the U.S. supply of crude oil or world 
    crude oil prices.
        The imposition of regulatory costs on the natural gas market result 
    in negligible changes in natural gas prices, output, employment, 
    foreign trade, and business closures. Price and output changes as a 
    result of the regulation are less than 0.01 of one percent, which is 
    significantly less than observed market trends. For example, between 
    1992 and 1993 the average change in wellhead price increased by 14 
    percent, while domestic production rose by 3 percent.
        The total annual social cost of the regulation is $10 million for 
    major and areas sources combined. This value accounts for the 
    compliance cost imposed on producers, as well as market adjustments 
    that influence the revenues to producers and consumption by end users, 
    plus the associated deadweight loss to society of the reallocation of 
    resources.
    
    V. Area Source Finding
    
        The EPA performed an analysis to determine the potential threat of 
    adverse effects on human health and the environment due to HAP 
    emissions from TEG dehydration units in the oil and natural gas 
    production source category and the feasibility and impacts of 
    controlling these emissions. The EPA refers to this determination as an 
    ``area source finding.'' The three primary components of an area source 
    finding are (1) a risk assessment conducted for area source TEG 
    dehydration units, (2) an evaluation of the technical feasibility and 
    associated costs of air emission controls, and (3) an assessment of the 
    economic impacts associated with installation of controls.
        The EPA conducted a risk assessment for area source TEG dehydration 
    units. The detailed risk assessment is available for review in EPA Air 
    Docket A-94-04 and the item entry number is II-B-20.
        The HAP included in the risk assessment were BTEX and n-hexane. 
    These are the primary HAP emitted by TEG dehydration units. Toluene, 
    ethyl benzene, and n-hexane were evaluated for potential non-cancer 
    impacts. The predicted human exposure levels associated with the 
    estimated emission of these HAP from area source TEG dehydration units 
    did not meet or exceed the levels of concern when compared to the 
    available human health reference levels. Mixed xylenes were not 
    quantitatively analyzed since the EPA does not have an appropriate 
    human health benchmark for assessing human xylene exposure by the 
    inhalation pathway.
        The predicted exposures associated with the estimated emission of 
    benzene from area source triethylene glycol dehydration units result in 
    a maximum individual risk (MIR) of 3 x 10-4 and an annual 
    cancer incidence ranging from <1 (assuming="" all="" facilities="" are="" located="" in="" rural="" areas)="" to="" 2="" (assuming="" all="" facilities="" are="" located="" in="" urban="" areas).="" the="" predicted="" maximum="" individual="" risk="" from="" this="" analysis="" is="" above="" the="" epa's="" historical="" action="" level="" range="" of="" 1="" x="">-6 to 
    1 x 10-4.
        The types of controls used on TEG dehydration units are able to 
    achieve a minimum of 95 percent HAP emission reduction. In the parts of 
    the U.S. where the vast majority of natural gas is produced and 
    processed, condensers are typically used to reduce emissions from TEG 
    dehydration units. Flares are also used to reduce emissions from TEG 
    dehydration units.
        Unlike flares, which destroy emissions through combustion, 
    condensers capture emissions and allow for the recovery of hydrocarbon 
    liquids (condensate) entrained in the emission stream, thus conserving 
    a valuable non-renewable resource. Properly operated condensers used at 
    TEG dehydration units, that have a flash tank in the overall 
    dehydration system design, have a HAP/volatile organic compound (VOC) 
    control efficiency of 95 percent.
        The application of condensers and flares to area source TEG 
    dehydration units have been observed on actual operating units that are 
    typical of those in this industry. Thus, condensers and flares are a 
    technically feasible and demonstrated control option for area source 
    TEG dehydration units.
        The economic impact analysis performed to evaluate the impacts of 
    the major and area source provisions of the proposed regulation 
    supports the area source finding. The results of this economic analysis 
    are summarized in section IV of this preamble.
        The total annual social cost of the regulation is estimated to be 
    $10 million for major and area sources combined (approximately $4.0 
    million for major sources and $6.2 million for area sources). This 
    value accounts for the compliance cost imposed on producers, as well as 
    market adjustments that influence the revenues to producers and 
    consumption by end-users, plus the associated deadweight loss to 
    society of the reallocation of resources.
        Regulation of area source TEG dehydration units in the oil and 
    natural gas production source category is supported by: (1) The 
    estimated MIR of 3 x 10-4 for HAP emissions from this area 
    source category, (2) technically feasible, effective, and demonstrated 
    control options (condensers and flares) that are readily available for 
    reducing emissions from area source TEG dehydration units, and (3) the 
    results the economic impact analysis that supports the minimal economic 
    impact associated with installation of the identified control options.
        The EPA is proposing criteria that would target area source TEG 
    dehydration units for control: (1) Which have benzene emissions, (2) 
    that can be cost-effectively controlled, and (3) where potential human 
    exposures are greatest. These criteria are based on actual natural gas 
    throughput, benzene emission rate, and location in a county classified 
    as urban.
        The actual natural gas throughput (on an annual average basis) 
    action levels for area source TEG dehydration units analyzed by the EPA 
    were: (1) 113 thousand m3/day (4.0 MMSCF/D) or greater, (2) 
    85 thousand m3/day (3.0 MMSCF/D) or greater, (3) 42 thousand 
    m3/day (1.5 MMSCF/D) or greater, and (4) 8.5 thousand 
    m3/day (0.3 MMSCF/D) or greater. Based on its evaluation of 
    projected impacts and the cost-effectiveness of installed controls, the 
    EPA selected 85 thousand m3/day (3.0 MMSCF/D) actual natural 
    gas
    
    [[Page 6300]]
    
    throughput as an action level for area source TEG dehydration units.
        The EPA also selected an action level for area sources based on 
    actual benzene emissions from each area source TEG dehydration unit. 
    Benzene is a known human carcinogen that is typically emitted from 
    glycol dehydration units.
        In addition, the EPA selected location as a criterion for control 
    based on the county-level urban versus rural location of area source 
    TEG dehydration units. Only those area source TEG dehydration units 
    located in counties classified as urban (see section III of this 
    preamble) and also meeting or exceeding the actual natural gas 
    throughput and benzene emission rate action levels would be required to 
    install air emission controls for HAP under the proposed rule.
    
    VI. Glycol Dehydration Unit Nationwide HAP Emissions Estimates
    
        Glycol dehydration units are estimated to account for up to 90 
    percent of HAP emissions from the oil and natural gas industry. The EPA 
    used GRI-GLYCalcTM Version 3.0, an emissions estimation 
    computer program developed by GRI, to estimate HAP emissions from 
    glycol dehydration units. This program is regarded within industry and 
    the EPA as an accurate simulation tool for estimating emissions of 
    organic compounds from glycol dehydration units.
        The EPA developed HAP, VOC, and methane emission estimates for a 
    series of representative model glycol dehydration units representative 
    of those that operate within this industry. Nationwide emissions were 
    then estimated by extrapolating from model glycol dehydration unit 
    estimates.
        Two inputs to the methodology used by the EPA to estimate 
    nationwide HAP emissions from glycol dehydration units that greatly 
    influence the result are: (1) The average HAP concentration of field 
    natural gas prior to the first processing stage, and (2) the average 
    total number of times that natural gas is dehydrated by all dehydration 
    methods between the wellhead and the end user. Based on extensive 
    discussions with industry, and review of available information and 
    application of engineering judgment, the EPA selected a value of 200 
    ppmv for the average BTEX concentration of field natural gas and a 
    value of 1.6 for the average number of times that natural gas is 
    dehydrated by all dehydration methods between the wellhead and the end 
    user. Estimated HAP emissions from all glycol dehydration units (at 
    both major and area sources of HAP) are 55,000 Mg/yr.
        The EPA acknowledges that there are uncertainties inherent in any 
    estimate of nationwide HAP emissions for industries as large and as 
    diverse as the oil and natural gas production or natural gas 
    transmission and storage source categories. However, the EPA believes 
    that the engineering judgments and methodology used in developing the 
    nationwide HAP emissions estimates for these industries are reasonable 
    given the available information. The EPA requests comment on the 
    methodology and engineering judgments made when developing the 
    nationwide glycol dehydration unit HAP emissions estimates for these 
    source categories. The EPA specifically requests alternative emission 
    estimation methodologies, supported by documentation demonstrating how 
    an alternative methodology would yield improved estimates.
    
    VII. Definition of Major Source for the Oil and Natural Gas Industry
    
    A. Definition of ``Associated Equipment''
    
        Whether a facility is a major source or an area source of HAP 
    emissions under section 112 of the Act is important for two reasons. 
    First, different requirements may be established for major and area 
    sources. Second, a source that is a major source under section 112 of 
    the Act is also subject to requirements for major sources under the 
    Federal operating permit program authorized by title V of the Act. Area 
    sources may also be subject to title V permitting requirements, but the 
    EPA has discretion to defer or waive these requirements.
        For some oil and natural gas operations, it is clearly apparent 
    what constitutes a facility (e.g., a natural gas processing plant). For 
    others, however, it may not be clear what constitutes a facility. This 
    is particularly true for field operations in the oil and natural gas 
    production source category.
        An oil or natural gas production field, for example, may cover many 
    square miles. Within this area, there can be a large number of 
    production wells, connected by pipeline, to small (satellite) or larger 
    (centralized) locations, such as tank batteries, where storage or 
    intermediate processing occurs prior to transmission to further 
    processing steps. Leasing and mineral rights agreements can give oil 
    and natural gas companies control over a large area of contiguous 
    property.
        According to the statutory definition in section 112(a)(1), HAP 
    emissions from all emissions points within a contiguous area and under 
    common control must be counted in a major source determination. A 
    strict interpretation of the statutory definition of major source as 
    applied to this industry could mean that HAP emissions must be 
    aggregated from emission points separated by considerable distances. 
    This distance could be well beyond the distances that separate 
    equipment at a typical facility.
        The Congress addressed the unique aspects of the oil and natural 
    gas production industry in special provisions included in section 
    112(n)(4) of the Act that apply to HAP emissions from oil and natural 
    gas wells and pipeline and compressor facilities. Section 112(n)(4)(A) 
    states
    
    Notwithstanding the provisions of subsection (a), emissions from any 
    oil or gas exploration or production well (with its associated 
    equipment) and emissions from any pipeline compressor or pump 
    station shall not be aggregated with emissions from other similar 
    units, whether or not such units are in a contiguous area or under 
    common control, to determine whether such units or stations are 
    major sources, and in the case of any oil and gas exploration or 
    production well (with its associated equipment), such emissions 
    shall not be aggregated for any purpose under this section.
    
    The language in section 112(n)(4)(A) makes it clear that, for the 
    purpose of implementing standards for major sources under section 
    112(d) for this industry, HAP emissions from oil and natural gas 
    exploration and production wells with their associated equipment cannot 
    be aggregated in making major source determinations.
        However, the statutory language provides no definition of 
    ``associated equipment.'' Neither is a clear intent evident in the 
    legislative history of the Act's 1990 amendments. The legislative 
    history does indicate that the Congress, in drafting section 112(n)(4), 
    believed that wells and their associated equipment generally: (1) Have 
    low HAP emissions, and (2) are typically located in widely dispersed 
    geographic areas, rather than concentrated in a single area.
        A definition of associated equipment is important to implementing 
    standards for this industry for two reasons. First, because the statute 
    prevents the aggregation of HAP emissions from wells and their 
    associated equipment in making major source determinations, the 
    definition of associated equipment can influence which sources are 
    subject to requirements for major sources and which are subject to 
    requirements for area sources. Second, the definition of associated 
    equipment affects the regulation of area sources in the oil and natural 
    gas source category. Section 112(n)(4)(B) states
    
    
    [[Page 6301]]
    
    
    The Administrator shall not list oil and gas production wells (with 
    its associated equipment) as an area source under subsection (c), 
    except that the Administrator may establish an area source category 
    for oil and gas production wells located in any metropolitan 
    statistical area with a population in excess of 1 million, if the 
    Administrator determines that emissions of hazardous air pollutants 
    from such wells present more than a negligible risk of adverse 
    effects to public health.
    
    Thus, production wells (with their associated equipment) may not be 
    regulated as an area source, but production wells as an individual area 
    source may be regulated by the Administrator under section 112(n)(4)(B) 
    upon an adverse risk determination.
        In the absence of clear guidance in the statute, the EPA considered 
    options for defining associated equipment. In extensive discussions 
    with industry and trade association representatives, the EPA evaluated 
    a wide range of options.
        One option considered was a definition based on a narrow 
    interpretation of associated equipment that would include only limited 
    equipment in close proximity to a well as associated with that well. 
    Another option considered was a definition based on a broad 
    interpretation of associated equipment that would extend the inclusion 
    of equipment far beyond the well as associated equipment. The initial 
    options considered by the EPA for defining associated equipment and the 
    EPA's assessment of each are discussed below.
        The narrowest interpretation option would be that a well and its 
    associated equipment consists of only the well, defined as all 
    equipment below the ground surface, and the pressure maintenance and 
    flow control device attached to the well. For an exploratory well, the 
    typical pressure maintenance and flow control device is the blow out 
    preventer (BOP). For a production well, the typical pressure 
    maintenance and flow control device is referred to as the ``Christmas 
    tree,'' which may include a BOP. This interpretation would provide a 
    technical meaning to the term associated equipment, but would provide 
    limited substantive meaning.
        As a practical matter, the term ``well with its associated 
    equipment'' under this option would not provide any additional relief 
    to industry from the aggregation of HAP emissions in a major source 
    determination beyond what would have been provided if Congress had only 
    used the term ``well'' in section 112(n)(4) of the Act. On this basis, 
    the EPA did not select this narrow interpretation for proposal.
        An option initially suggested by industry is that all production 
    equipment be considered associated equipment. This is the broadest 
    possible interpretation of the term associated equipment and would 
    extend the definition to the boundaries of the source category, which 
    are (1) to the point of custody transfer for hydrocarbon liquids and 
    (2) to the natural gas transmission and storage source category for 
    natural gas. Under this interpretation, industry maintains that no 
    aggregation of HAP emissions should be allowed, even in situations 
    commonly acknowledged to be a single facility. Only individual emission 
    points which, by themselves, emit 10 tpy or more of any one HAP or 25 
    tpy or more of any combination of HAP would be regulated as major 
    sources under this interpretation.
        The EPA rejects this broad interpretation as an option for defining 
    associated equipment for several reasons. First, an interpretation of 
    the language in section 112(n)(4) that would define all equipment as 
    associated with a well, regardless of (1) the type of equipment, (2) 
    any processing or commingling of streams that may occur, or (3) 
    distance from the well, would suggest that the Congress intended that 
    aggregation of HAP emissions not be allowed within this industry under 
    any circumstances. When viewed within the framework of section 112, the 
    EPA does not believe this to be the case.
        For example, a natural gas processing plant has numerous HAP 
    emission points closely grouped together. These points may include one 
    or more glycol dehydration units, condensate storage vessels, several 
    gas treatment and separation steps, and various containers. These HAP 
    emission points may emit, in total, HAP in excess of 25 tpy. Each HAP 
    emission point within the natural gas processing plant, however, may 
    emit less than 10 tpy of any one HAP or 25 tpy of any combination of 
    HAP.
        If all equipment within the plant were defined as associated 
    equipment, then the plant would not be considered a major source 
    subject to MACT standards. It is, therefore, conceivable that the 
    natural gas processing plant that meets the criteria of a major source 
    could go unregulated by MACT standards under this scenario, even though 
    surrounding populations were exposed to HAP emissions at a level that 
    would trigger the application of MACT standards in other similar 
    industries.
        In addition, this option would include (as associated equipment) 
    HAP emission points that the EPA has determined are large individual 
    sources of HAP. In particular, available information indicates that 
    glycol dehydration units and storage vessels emit substantial 
    quantities of HAP.
        Glycol dehydration units are the largest identified HAP emission 
    point in the oil and natural gas production source category, accounting 
    for about 90 percent of estimated total HAP emissions from this source 
    category based on available information used in the EPA's analysis. 
    Individually, glycol dehydration units may emit total HAP in amounts 
    from less than 0.9 Mg/yr to substantially above major source levels.
        Also, a single storage vessel with flash emissions may emit several 
    megagrams of HAP per year.
        The EPA firmly believes that glycol dehydration units and storage 
    vessels with flash emissions are not the type of small HAP emission 
    points that Congress intended to be included in the definition of 
    associated equipment. Further, as previously discussed in section V of 
    this preamble, the EPA has made an area source finding that benzene 
    emissions from TEG dehydration units pose a significant risk to public 
    health.
        The EPA does not intend to regulate TEG dehydration units that emit 
    small amounts of HAP. However, the EPA has an obligation to provide 
    public health protection where there is risk from exposure to HAP 
    emissions. If TEG dehydration units were included as associated 
    equipment, the EPA's ability to provide protection to persons at risk 
    from exposure would be severely limited through section 112(n)(4)(B).
        For all the reasons set out above, defining all equipment as 
    associated equipment was rejected as an option for proposal by the EPA. 
    However, the EPA believes that the use of custody transfer within an 
    interpretation (along with other criteria) is a good method for 
    delineating between equipment that is associated and not associated 
    with a well.
        A variety of interpretations of associated equipment intermediate 
    of those two extremes are also possible. Through discussions with 
    industry and trade association representatives, the EPA considered 
    several intermediate options based on drawing a line of demarcation 
    downstream from the well. Equipment before this line of demarcation 
    would be deemed to be associated with a well and equipment beyond the 
    line would not be considered associated. The point in the processing of 
    oil or natural gas at which such a line of demarcation could be drawn 
    might be tied to where a certain product processing or transfer step 
    takes place.
    
    [[Page 6302]]
    
        Three intermediate options, using this approach, define associated 
    equipment as including all equipment up to (1) the point where initial 
    processing of an extracted hydrocarbon stream takes place, (2) the 
    point of physical commingling of the extracted hydrocarbon stream with 
    streams from other wells, and (3) the point of custody transfer, with 
    exceptions for selected affected sources.
        The EPA evaluated each of these options with several objectives in 
    mind. First, the option chosen should provide substantive meaning to 
    the term associated equipment and prevent the aggregation of small, 
    scattered HAP emission points in major source determinations. Second, 
    the option chosen should be easily implementable. That is, it should be 
    clear to the regulated community and enforcement personnel what is 
    associated equipment and what is not associated equipment. Finally, the 
    option chosen should not preclude the aggregation of the most 
    significant HAP emission points in the source category. Additionally, 
    the option chosen should not restrict the EPA's ability to regulate 
    glycol dehydration units as area sources.
        An option tied to the point of initial processing would meet only 
    the last of these objectives. Initial processing for many extracted 
    hydrocarbon liquid and natural gas streams occurs immediately after the 
    stream has left the well. Typical processing steps that may occur at a 
    well site include gas/oil separation, heating/treating, and 
    dehydration. The only equipment in addition to the Christmas tree that 
    would be included as associated equipment under this option would be 
    storage vessels in which no treating or separation takes place.
        Thus, little additional relief from HAP emission aggregation would 
    be provided by an associated equipment definition based on initial 
    processing. Also, the term ``point of initial processing'' is not a 
    term commonly used and understood in the source category, a fact that 
    would likely lead to confusion between enforcement agencies and the 
    regulated community.
        Selecting an option based on the point of physical commingling of 
    streams would provide additional substantive meaning to the term 
    associated equipment and possible relief from HAP emission aggregation 
    in situations where a stream from a single well undergoes processing 
    prior to mixing with streams from other wells (the storage vessels and 
    processing equipment would be associated with that well). However, the 
    EPA sees great potential for confusion under this option, as the same 
    equipment that would be considered associated equipment at a single 
    well facility might not be associated equipment where streams from 
    multiple wells are combined prior to processing.
        Another option is the use of the point of custody transfer in 
    combination with allowing HAP emission aggregation for selected 
    affected sources. For the proposed production regulation, the EPA 
    defines custody transfer (which has been previously defined in other 
    standards) as transfer, after processing and/or treatment in the 
    producing operations, from storage vessels or automatic transfer 
    facilities to pipelines or any other forms of transportation. The EPA 
    considers the point at which natural gas enters a natural gas 
    processing plant as a point of custody transfer for the proposed 
    regulation.
        From an implementation perspective, this is an attractive option. 
    According to industry and trade association representatives, the term 
    custody transfer is commonly used and understood within the oil and 
    natural gas production source category. Selecting this option would 
    simplify the owner or operator's regulatory compliance determination 
    for a specified piece of equipment. The point of custody transfer often 
    denotes contractually the point of change in ownership of equipment or 
    product. Therefore, defining associated equipment as all equipment up 
    to the point of custody transfer is a good approach for delineating a 
    line of demarcation between equipment that is associated and equipment 
    that is not associated. This approach is the same as the broadest 
    interpretation of associated equipment as initially proposed by 
    industry, however, selected affected sources are not included as 
    associated equipment.
        Glycol dehydration units and storage vessels with flash emissions 
    are often located before the point of custody transfer. Many glycol 
    dehydration units, for example, are located on single wells or at 
    condensate tank batteries. As discussed previously, the EPA feels 
    strongly that because glycol dehydration units and storage vessels with 
    flash emissions are significant sources of HAP emissions, they are not 
    the HAP emission points intended by Congress to be associated equipment 
    under section 112(n)(4).
        Therefore, the EPA is proposing that associated equipment be 
    defined as all equipment associated with a production well up to the 
    point of custody transfer, except that glycol dehydration units and 
    storage vessels with flash emissions would not be associated equipment. 
    The EPA believes that this proposed definition will provide the relief 
    that Congress intended in section 112(n)(4) while preserving the EPA's 
    ability to require appropriate MACT or GACT controls for the most 
    significant identified HAP emission points in the oil and natural gas 
    production source category. The EPA considers the point at which 
    natural gas enters a natural gas processing plant as a point of custody 
    transfer for natural gas streams and HAP emission aggregation is 
    allowed at natural gas processing plants. Natural gas processing plants 
    are included in the scope of the oil and natural gas production NESHAP.
    
    B. Definition of Facility
    
        As discussed in the previous section, it is not clear for many oil 
    and gas field operations what constitutes a facility and, consequently, 
    exactly where facility boundaries exist for the purpose of a major 
    source determination. With many operations connected by pipeline and 
    located on common oil and gas leases that extend for miles, the meaning 
    of the phrase, ``located within a contiguous area under common 
    control,'' used in section 112(a)(1) of the Act to describe sources 
    that should be grouped in a major source determination, is not often 
    clear when applied to oil and natural gas field operations. Relief from 
    the possible need to aggregate emissions from certain small, widely 
    dispersed, HAP emission sources is provided in the language of section 
    112(n)(4), and in the EPA's proposed definition of associated 
    equipment. However, potential for confusion still exists concerning 
    when non-associated equipment should be aggregated. Thus, the EPA is 
    proposing further clarification of what constitutes a facility for the 
    purposes of major source determinations in the oil and natural gas 
    production and natural gas transmission and storage source categories.
        The EPA's objective in developing a definition of facility for this 
    proposed rulemaking is to identify criteria that would define a 
    grouping of emission points that meet the intent of the section 
    112(a)(1) language, ``located within a contiguous area and under common 
    control,'' but in terms that are meaningful and easily understood 
    within the regulated industries. Examples of general facility types in 
    the oil and natural gas production source category include natural gas 
    processing plants, offshore production platforms, central tank 
    batteries, satellite tank batteries, and individual well sites. 
    Compressor stations and underground storage facilities are examples of
    
    [[Page 6303]]
    
    facilities in the natural gas transmission and storage source category.
        Though some facilities in the oil and natural gas production source 
    category, such as natural gas processing plants, fit the profile of a 
    typical industrial facility and are easy to define, other facilities 
    (e.g., production field facilities) do not fit the typical profile. 
    Substantial differences exist between the majority of typical oil and 
    natural production field operations and traditional industrial 
    facilities that are regulated under the Act. Industrial facilities 
    typically have distinct physical boundaries or fencelines. Emission 
    points at these facilities are generally in close proximity to or 
    collocated with one another (contiguous) and located within an area 
    boundary, the entirety of which (other than roads, railroads, etc.) is 
    under the physical control of the same owner (common ownership).
        Typical oil and natural gas production field facilities do not 
    adhere to this profile. The owners or operators of production field 
    facilities typically do not own or control the surface property that 
    lies between two or more production field facilities. Rather, the 
    owners or operators of production field facilities control only the 
    surface area that is necessary to operate the physical structures used 
    in oil and natural gas production. Production facilities may be 
    connected by underground flow or gathering lines but are essentially 
    separate independent facilities. Production equipment sharing the same 
    close physical location (e.g., a well site, tank battery, or graded 
    pad) is likely to be under common control and in a contiguous area. 
    However, production equipment that is physically separated within or 
    across leases (to serve different wells and connected by flow or 
    gathering lines) is not contiguous based on surface rights and is not 
    likely to be under common control.
        The EPA intends that a facility definition as it applies to the oil 
    and natural gas production source category should lead to an 
    aggregation of emissions in a major source determination that is 
    reasonable, consistent with the intent of the Act, and easily 
    implementable. In this source category, functionally related equipment 
    is generally located at what is referred to as the same surface site. 
    Surface site means the graded pad, gravel pad, foundation, platform, or 
    immediate physical location on which equipment is located. Defining 
    facility based on individual surface site would, in the EPA's view, 
    identify groupings of equipment on which major source determinations 
    would be made that are consistent with the EPA's intent. For example, a 
    definition on this basis would require aggregation of emissions from 
    significant HAP emission sources that are closely grouped, such as two 
    or more glycol dehydration units on the same graded pad treating a 
    natural gas stream. Glycol dehydration units located on different 
    graded pads, for example at separate tank batteries, would presumably 
    not be functionally related (i.e., the units treat different streams) 
    and in most cases would be separated by considerable distance. 
    Consequently, the EPA does not believe it would be reasonable to 
    combine emissions from these units. Finally, because the term surface 
    site is well understood within industry and easily recognizable by 
    enforcement authorities, a facility definition on this basis should be 
    easily implementable. For these reasons, the EPA is proposing a 
    facility definition based on individual surface site. For further 
    clarification, the EPA is also proposing that equipment located on 
    different oil and gas properties (oil and gas lease, mineral fee tract, 
    subsurface unit area, surface fee tract, or surface lease track) shall 
    not be aggregated.
        Another objective of the EPA in developing a definition of facility 
    was to minimize, where possible and reasonable, the burden on owners 
    and operators in making a major source determination. The EPA's 
    evaluation of HAP emission sources in production field operations 
    indicates that the two primary HAP emission points at field operation 
    facilities are glycol dehydration units and storage tanks with flash 
    emissions, and that other potential HAP emission points at these 
    facilities (e.g., equipment leaks) will be inconsequential to the 
    determination of a facility's major source status. Therefore, the EPA 
    is proposing that for the purpose of a major source determination, a 
    production field facility would be limited to glycol dehydration units 
    and storage tanks with flash emission potential. The EPA believes that 
    by eliminating the need to quantify HAP emissions from small sources at 
    such facilities, the burden on an owner or operator to make a major 
    source determination would be greatly reduced, while still ensuring an 
    accurate classification of the facility as a major or area source of 
    HAP emissions.
        The EPA specifically requests comments on the proposed definition 
    of facility. Specifically the EPA requests comments on whether the 
    proposed definition appropriately implements the intent of the major 
    source definition in section 112(a)(1) for the oil and natural gas 
    production and natural gas transmission and storage source categories, 
    or if another definition would better implement this intent.
    
    VIII. Rationale for Proposed Standards
    
    A. Selection of Hazardous Air Pollutants for Control
    
        The EPA believes that it is not appropriate to select all organic 
    HAP listed under section 112(b) of the Act for regulation under the 
    proposed NESHAP. Of the 188 compounds listed, only a limited number are 
    emitted from oil and natural gas facilities. Consequently, the EPA 
    developed a list of the specific HAP to be regulated in the proposed 
    rules. However, all 188 listed HAP must be considered in any major 
    source determination under the General Provisions to 40 CFR Part 63.
        To select which HAP are to be regulated under the proposed NESHAP, 
    the EPA evaluated the potential for HAP to be emitted from oil and 
    natural gas facilities. Based on this evaluation, the EPA is proposing 
    that the following specific HAP be regulated under the proposed NESHAP: 
    acetaldehyde, benzene (including benzene in gasoline), carbon 
    disulfide, carbonyl sulfide, ethyl benzene, ethylene glycol, 
    formaldehyde, n-hexane, naphthalene, toluene, 2,2,4-trimethylpentane 
    (iso-octane), and mixed xylenes, including o-xylene, m-xylene, and p-
    xylene.
        The EPA decided to develop a set of control options for this 
    industry to control HAP emissions as a class rather than developing a 
    series of control options to control emissions of each individual HAP 
    on the list. Consequently, the control options considered are directed 
    towards the control of total HAP emissions.
    
    B. Selection of Emission Points
    
        The EPA identified the primary types of HAP emission points at oil 
    and natural gas facilities. The three primary HAP emission point types 
    are (1) process vents, (2) storage vessels, and (3) equipment leaks.
        The primary process vent HAP emission point is the glycol 
    dehydration unit reboiler vent. A glycol dehydration unit reboiler 
    regenerates glycol used in the dehydration of natural gas by separating 
    the water from the glycol. The glycol also attracts aromatic compounds, 
    including BTEX and n-hexane during the dehydration process. These HAP, 
    along with the water vapor and other gases, are emitted through the 
    glycol dehydration unit reboiler vent.
        In addition, glycol dehydration units may incorporate the use of a 
    gas condensate glycol separator (GCG separator or flash tank). The rich 
    glycol,
    
    [[Page 6304]]
    
    which has absorbed water vapor from the natural gas stream, leaves the 
    bottom of the absorption column of a glycol dehydration unit and is 
    directed either to (1) GCG separator (flash tank) and then a reboiler 
    or (2) directly to a reboiler where the water is boiled off the rich 
    glycol. If the system includes a GCG separator (flash tank), the gas 
    separated from the rich glycol is typically (1) recycled to the header 
    system, (2) used for fuel, or (3) used as a stripping gas. The GCG 
    separator (flash tank) vent is a potential HAP emission point if vented 
    to the atmosphere.
        Other potential HAP emission point process vents are the tail gas 
    streams from amine treating processes and sulfur recovery units. 
    Limited data have been identified that indicate the potential for HAP 
    emissions from these operations. Thus, HAP emissions from amine 
    treating processes and sulfur recovery units have not been estimated. 
    Recent research published by GRI indicates that these emission points 
    have the potential to be significant sources of HAP emissions. Comment 
    is requested on potential HAP emissions and emission rates from these 
    operations and potential applicable air emission controls.
        Storage vessels have also been identified as a HAP emission point. 
    Storage vessels used in the oil and natural gas industry include 
    storage vessels with flash emissions. Storage vessels in the oil and 
    natural gas production source category are commonly equipped with fixed 
    roofs. Emissions from fixed-roof storage vessels with flash emissions 
    are a result of breathing, working, and (primarily) flash losses.
        Pipeline pigging and storage of pipeline pigging wastes is a 
    potential HAP emission point in the transmission sector of the oil and 
    natural gas industry. Only limited qualitative data have been 
    identified that indicate the potential for HAP emissions from this 
    operation. Thus, HAP emissions have not been estimated. Comment is 
    requested on potential HAP emissions from storage of pipeline pigging 
    wastes and potential applicable emission controls.
        Valves, pump seals, and other pieces of equipment servicing HAP-
    containing streams have the potential to leak. A majority of facilities 
    in the oil and natural gas industry do not have LDAR programs. 
    Therefore, equipment leaks from that equipment servicing HAP-containing 
    streams have been identified as a potential HAP emission point.
        In addition to the above HAP emission points, the EPA evaluated the 
    potential regulation of other HAP emission points. These included (1) 
    containers, (2) equipment leaks at tank batteries and offshore 
    production platforms, (3) production surface impoundments, and (4) 
    waste and wastewater management units.
        Insufficient data were submitted in the Air Emissions Survey 
    Questionnaire responses for the other potential HAP emission points of 
    containers, equipment leaks at tank batteries and offshore production 
    platforms, production surface impoundments, and waste and wastewater 
    management units to allow for determination of existing control levels. 
    Thus, a review of other data sources was conducted to identify 
    information on existing control levels for these potential HAP emission 
    points.
        For these other HAP emission points, the review of available 
    information did not indicate any apparent pattern of existing emission 
    controls. Thus, it has been determined that the existing level of 
    control for this collection of other HAP emission points is no control.
    
    C. Definition of Affected Source
    
        The term affected source is used in part 63 regulations to 
    designate the emission sources or group of sources that are regulated 
    by a standard. Each standard must define what the affected source is 
    for purposes of that specific standard.
        The EPA has discretion to establish a narrow or broad definition of 
    affected source, as appropriate for a particular rule. A broad 
    definition would be in terms of groups of equipment. A narrow 
    definition would designate specific pieces of equipment or emission 
    points as separate affected sources.
        For the proposed oil and natural gas production and natural gas 
    transmission and storage NESHAPs, a narrow definition of affected 
    source is proposed for most HAP emission points. The affected sources 
    under the oil and natural gas production NESHAP include (1) each glycol 
    dehydration unit located at a major source of HAP, (2) each TEG 
    dehydration unit located at an area source of HAP, and (3) each storage 
    vessel with flash emissions located at a major source of HAP.
        For the proposed standards for equipment leaks at natural gas 
    processing plants, the EPA is proposing a broad definition of affected 
    source. Specifically, the group of equipment targeted by fugitive 
    emission standards (pumps, pressure relief devices, valves, flanges, 
    etc. that operate in organic HAP service) are designated as one 
    affected source, except that compressors would each be a separate 
    affected source. The implication of this broader definition is that the 
    replacement of an individual component, such as a valve, would not be 
    considered the construction of a new affected source, which triggers 
    reporting requirements for new sources.
        The affected source under the natural gas transmission and storage 
    NESHAP is each glycol dehydration unit located at a major source of 
    HAP.
    
    D. Determination of MACT Floor
    
        As described in this preamble, the Act defines a minimum level of 
    control for standards established under section 112(d), referred to as 
    the MACT floor. For a source category with 30 or more sources, such as 
    with the oil and natural gas production and natural gas transmission 
    and storage source categories, the MACT floor for existing sources 
    shall not be less stringent than the average emission limitation 
    achieved in practice by the best performing 12 percent of existing 
    sources. Standards more stringent than the floor may be established 
    based on a consideration of cost, environmental, energy, and other 
    impacts.
        The EPA is to establish standards based on available information. 
    Available information for the MACT floor analysis for these source 
    categories consists primarily of data gathered from industry responses 
    to survey questionnaires. The surveys were designed to collect 
    information representative of processes and operations in these source 
    categories.
    1. MACT Floor for Existing Sources
        Oil and Natural Gas Production-Glycol Dehydration Unit Vents; 
    Natural Gas Transmission and Storage-Glycol Dehydration Unit Vents. The 
    MACT floor for all process vents at glycol dehydration units (including 
    area source TEG dehydration units in the oil and natural gas production 
    source category) is 95 percent HAP emission reduction, which correlates 
    with the existing control level estimated to be achieved through the 
    use of condensers.
        Oil and Natural Gas Production-Storage Vessels. The MACT floor for 
    existing storage vessels containing material with a GOR equal to or 
    greater than 50 m \3\ (1,750 ft \3\) per barrel or an API gravity equal 
    to or greater than 40 deg. and an actual throughput equal to or greater 
    than 500 BPD (i.e., storage vessel with flash emissions) is the 
    installation and operation of a cover that is connected through a 
    closed-vent system to a 95 percent efficient control device. A 
    pressurized storage vessel that is designed to operate as a closed 
    system is considered in compliance with the requirements for storage 
    vessels.
    
    [[Page 6305]]
    
        Oil and Natural Gas Production-Equipment Leaks. The MACT floor 
    levels for equipment leaks apply only to those components at natural 
    gas processing plants handling material with a total HAP content equal 
    to or greater than 10 percent by weight.
        The MACT floor for equipment leaks at natural gas processing plants 
    is judged to be at the new source performance standard (NSPS) level of 
    control for natural gas processing plants. The NSPS level of control is 
    equal to that of 40 CFR part 61, subpart V (equipment leaks NESHAP). 
    Since the pollutants targeted for control under the proposed standards 
    are HAP, the proposed standards cross-reference the requirements from 
    the equipment leaks NESHAP.
        The proposed standards require monthly monitoring of equipment with 
    a leak definition of 10,000 ppmv VOC. Based on the component counts and 
    other characteristics of the model natural gas processing plants, it is 
    estimated that the NESHAP LDAR program would attain a 70 percent HAP 
    emission reduction from uncontrolled cases. The proposed standards 
    allow existing natural gas processing plants subject to the NSPS to 
    comply only with those requirements.
    2. MACT Floor for New Sources
        In the review of available information, the EPA did not identify a 
    method of control applicable to all types of new sources that would 
    achieve a greater level of HAP emission reduction than the MACT floor 
    for existing sources. Therefore, the MACT floor for new sources in the 
    oil and natural gas production and natural gas transmission and storage 
    source categories is the same as the MACT floor for existing sources.
    
    E. Oil and Natural Gas Production NESHAP-Regulatory Alternatives for 
    Existing and New Major Sources
    
        The EPA evaluated two regulatory alternatives for existing and new 
    major sources in the oil and natural gas production source category. 
    The first regulatory alternative is the MACT floor levels for the 
    identified HAP emission points. A second regulatory alternative was 
    evaluated that included the installation of combustion control systems 
    for process vents and storage tanks at all impacted major sources. 
    Combustion systems typically have a control efficiency of 98 percent, 
    or greater, as compared with the control systems in Regulatory 
    Alternative 1, which achieve an emission reduction efficiency of 95 
    percent.
        Regulatory Alternative 1 (MACT floor) would achieve a nationwide 
    decrease in HAP emissions from all HAP emission points at major sources 
    of approximately 77 percent. In the EPA's judgement, the costs (and the 
    associated cost-effectiveness) of going beyond the floor would be 
    greatly disproportional to the additional HAP emission reduction that 
    would be achieved. The costs and average and incremental cost-
    effectiveness of the two regulatory alternatives are presented in Table 
    4. Based on this and other information, the EPA selected Regulatory 
    Alternative 1 (MACT floor) as the basis for the proposed standards. In 
    addition, the EPA did not select Regulatory Alternative 2 since the 
    control options evaluated (combustion systems) involved the destruction 
    of a recoverable non-renewable resource and did not encourage the 
    application of pollution prevention techniques.
    
       Table 4.--Comparison of Regulatory Alternative Cost Impacts for the  
         Proposed Oil and Natural Gas Production Standards--Major Source    
                                   Provisions                               
    ------------------------------------------------------------------------
                                                  Regulatory alternative    
                 Cost category              --------------------------------
                                             1  (MACT floor)         2      
    ------------------------------------------------------------------------
    Implementation costs (Million of July                                   
     1993 $):                                                               
        Total installed capital............              6.5              18
        Total annual.......................              4.0              23
    Cost-effectiveness ($/Megagram HAP):                                    
        Average............................            130               740
        Incremental........................  ...............          19,000
    ------------------------------------------------------------------------
    
        These standards would impact those glycol dehydration units, at 
    major sources, with an actual natural gas throughput equal to or 
    greater than 85 thousand m\3\/day (3.0 MMSCF/D), on an annual average 
    basis, unless it is demonstrated that benzene emissions from the unit 
    were less than 0.9 Mg/yr (1 tpy).
    
    F. Oil and Natural Gas Production NESHAP-Regulatory Alternatives for 
    Existing and New Area Sources
    
        The EPA evaluated four regulatory alternatives for TEG dehydration 
    units at existing and new area sources at oil and natural gas 
    production sources. Each regulatory alternative is characterized in 
    terms of an action level, above which HAP emissions must be controlled. 
    The action levels considered are expressed as the actual annual average 
    flow rate of natural gas (in thousand m\3\/day (MMSCF/D)) to the TEG 
    dehydration unit. The action levels for the regulatory alternatives are 
    (1) 113 thousand m\3\/day (4.0 MMSCF/D) or greater, (2) 85 thousand 
    m\3\/day (3.0 MMSCF/D) or greater, (3) 42 thousand m\3\/day (1.5 MMSCF/
    D) or greater, and (4) 8.5 thousand m\3\/day (0.3 MMSCF/D) or greater.
        Based on an evaluation of the projected action level impacts and 
    costs-effectiveness, the EPA selected Regulatory Alternative 2 as 
    representative of GACT for TEG dehydration units at area sources of 
    HAP. Alternative 2 would impact those TEG dehydration units with an 
    actual natural gas throughput equal to or greater than 85 thousand 
    m\3\/day (3.0 MMSCF/D), on an annual average basis, unless it is 
    demonstrated that benzene emissions from the unit were less than 0.9 
    Mg/yr (1 tpy).
        It is the objective of the EPA to structure the rules for area 
    sources in a way that protects exposed populations. The EPA also needs 
    to minimize the cost to industry to control units where there would be 
    less human exposure and overall cancer incidence from exposure to HAP 
    emissions from area source TEG dehydration units.
        Therefore, the EPA is proposing a criterion that no unit would have 
    to be controlled if it is demonstrated that emissions of benzene from 
    the unit are less than 0.9 Mg/yr (1 tpy), either uncontrolled or with 
    controls in place under federally enforceable limits. As noted 
    previously, benzene is a known human carcinogen that is typically 
    emitted from TEG dehydration units.
    
    [[Page 6306]]
    
        The EPA is also proposing the use of a population-based action 
    level in conjunction with the actual natural gas throughput and benzene 
    emission rate action levels for area source TEG dehydration units. The 
    EPA selected an action level based on the county-level urban versus 
    rural location of area source TEG dehydration units. Only those 
    selected area source TEG dehydration units located in counties 
    classified as urban (see section III of this preamble) and also meeting 
    or exceeding the actual natural gas throughput and benzene emission 
    rate action levels will be required to install air emission controls on 
    all process vents.
    
    G. Natural Gas and Transmission NESHAP-Regulatory Alternatives for 
    Existing and New Major Sources
    
        The EPA evaluated two regulatory alternatives for existing and new 
    major sources in the natural gas transmission and storage source 
    category. The first regulatory alternative is the MACT floor level for 
    all process vents at glycol dehydration units. A second regulatory 
    alternative was evaluated that included the installation of combustion 
    control systems for process vents at all impacted major sources. 
    Combustion systems typically have a control efficiency of 98 percent, 
    or greater, as compared with the control systems in Regulatory 
    Alternative 1 which achieve an emission reduction efficiency of 95 
    percent.
        Regulatory Alternative 1 (MACT floor) would achieve a nationwide 
    decrease in HAP emissions from major sources of approximately 95 
    percent. The costs and the associated cost-effectiveness of going 
    beyond the floor would be greatly disproportional to the additional HAP 
    emission reduction that would be achieved. The costs and average and 
    incremental cost-effectiveness of the two regulatory alternatives are 
    presented in Table 5. Based on this and other information, the EPA 
    selected Regulatory Alternative 1 (MACT floor) as the basis for the 
    proposed standards. In addition, the EPA did not select Regulatory 
    Alternative 2 since the control options evaluated (combustion systems) 
    involved the destruction of a recoverable non-renewable resource and 
    did not encourage the application of pollution prevention techniques.
    
       Table 5.--Comparison of Regulatory Alternative Cost Impacts for the  
             Proposed Natural Gas Transmission and Storage Standards        
    ------------------------------------------------------------------------
                                                  Regulatory alternative    
                  Cost category              -------------------------------
                                              1 (MACT floor)         2      
    ------------------------------------------------------------------------
    Implementation costs (Thousand of July                                  
     1993 $):                                                               
        Total installed capital.............              57             230
    Total annual                                          46             250
    Cost-effectiveness ($/Megagram HAP):                                    
        Average.............................             420           2,100
        Incremental.........................  ..............          20,000
    ------------------------------------------------------------------------
    
    H. Selection of Format
    
        Section 112(d) of the Act requires that emission standards for 
    control of HAP be prescribed unless, in the judgement of the 
    Administrator, it is not feasible to prescribe or enforce emission 
    standards. Section 112(h) identifies two conditions under which it is 
    not considered feasible to prescribe or enforce emission standards. 
    These conditions include (1) if the HAP cannot be emitted through a 
    conveyance device or (2) if the application of measurement methodology 
    to a particular class of sources is not practicable due to 
    technological or economic limitations. If emission standards are not 
    feasible to prescribe or enforce, then the Administrator may instead 
    promulgate equipment, work practice, design or operational standards, 
    or a combination thereof.
        Formats for emission standards include (1) percent reduction, (2) 
    concentration limits, or (3) a mass emission limit. For the proposed 
    NESHAPs, standards solely expressed as a percent, concentration, or 
    mass emission reduction would not alone appropriately reflect the 
    technologies on which the proposed standards are based and ensure that 
    the intended emissions reductions are achieved. Therefore, the proposed 
    standards are a combination of (1) emission standards and (2) 
    equipment, design, work practice, and operational standards.
        The format chosen for glycol dehydration unit (including area 
    source TEG dehydration units subject to the proposed oil and natural 
    gas production NESHAP) process vent streams is a HAP weight-percent 
    reduction requirement that applies to the control device. A weight-
    percent reduction format is appropriate for streams with HAP 
    concentrations above 1,000 ppmv because such a format ensures the 95 
    percent control level requirement. The format for the proposed storage 
    vessel provisions is a combination of a weight-percent reduction and 
    inspection, repair, and work practice requirements. The inspection, 
    repair, and work practice requirements are necessary to ensure the 
    proper operation and integrity of control equipment.
        For equipment leak sources, such as pumps and valves, the EPA has 
    previously determined that it is not feasible to prescribe or enforce 
    emission standards. Except for those items of equipment for which 
    standards can be set at a specific concentration. The only method of 
    measuring emissions is total enclosure of individual items of 
    equipment, collection of emissions for a specified time period, and 
    measurement of the emissions. This procedure, known as bagging, is a 
    time-consuming and prohibitively expensive technique considering the 
    great number of individual items of equipment in a typical process 
    unit.
        The proposed standards for equipment leaks at natural gas 
    processing plants incorporate several formats, including equipment, 
    design, base performance levels, work practices, and operational 
    practices. The proposed formats are the same as for the natural gas 
    processing plant (on-shore) NSPS and the 40 CFR part 61, subpart V 
    equipment leaks (fugitive emissions) NESHAP.
    
    I. Selection of Test Methods and Procedures
    
        Test methods and procedures specified in the proposed standards
    
    [[Page 6307]]
    
    would be used to demonstrate compliance. Procedures and methods 
    included in the proposed standards are, where appropriate, based on 
    procedures and methods previously developed by the EPA for use in 
    implementing standards for sources similar to those being proposed for 
    regulation. Methods and procedures are included to determine the 
    following (1) no detectable emissions, (2) volatile organic HAP (VOHAP) 
    concentration, (3) control device performance (i.e., control-
    efficiency), and (4) annual average flow rate of field natural gas to a 
    glycol dehydration unit.
    
    J. Selection of Monitoring and Inspection Requirements
    
        Control devices used to comply with the proposed standards need to 
    be properly operated and maintained if the standards are to be achieved 
    on a long-term basis. The EPA considered two monitoring options for 
    these NESHAPs (1) the use of CMS and (2) the use of monitors that 
    measure operating parameters that can be directly related to the 
    emission control performance of a particular control device.
        The CMS that use gas chromatography to measure individual gaseous 
    organic HAP compound chemicals are not practical for applications where 
    multiple organic HAP chemicals are to be monitored, as is typical with 
    oil and natural gas production and natural gas transmission and storage 
    facilities.
        An alternative is to use a CMS to measure total VOC or total 
    hydrocarbons (THC) as a surrogate for total organic HAP. These CMS, 
    however, provide a measure of the relative concentration level of a 
    mixture of organic chemicals, rather than a quantified level of the 
    organic species present.
        Based on these reasons, the EPA rejected requiring the use of CMS 
    for the proposed NESHAPs. Instead, the EPA selected monitoring of 
    control device operating parameters indicative of air emission control 
    performance as the appropriate approach to monitoring.
        The proposed NESHAPs specify the types of parameters that can be 
    monitored for common types of control devices. These parameters were 
    selected because they are good indicators of control device performance 
    and because continuous parameter monitoring instrumentation is 
    available at a reasonable cost. An owner or operator could be approved, 
    on a case-by-case basis, to monitor parameters not specifically listed 
    in the proposed standards.
        The established operating parameters for each control device will 
    be incorporated in the operating permit issued for a facility (or, in 
    the absence of an operating permit, the established levels will be 
    directly enforceable) and will be used to determine a facility's 
    compliance status. Excursions outside the established operating 
    parameter values will be considered violations of the applicable 
    emission standards, except when the excursion is caused by a startup, 
    shutdown, or malfunction that meets the criteria specified in the part 
    63 General Provisions (40 CFR part 63 subpart A).
        Continuous monitoring is not feasible for those emission points 
    required to comply with certain equipment standards and work practice 
    standards (e.g., storage vessels equipped with only covers, pumps and 
    valves subject to LDAR programs). In such cases, failure to install and 
    maintain the required equipment or properly implement the LDAR program 
    constitutes a violation of the applicable equipment or work practice 
    standards.
        The owner or operator of a glycol dehydration unit that does not 
    install controls would be required to install a flow monitor to 
    demonstrate that the actual natural gas flow rate to the unit is less 
    than the action level of 85 thousand m\3\/day (3.0 MMSCF/D), on an 
    annual average basis. If a flow monitor is installed, it must have an 
    accuracy of within 2 percent.
    
    K. Selection of Recordkeeping and Reporting Requirements
    
        The EPA may require an owner or operator of a source to establish 
    and maintain records and prepare and submit notifications and reports. 
    General recordkeeping and reporting requirements for all NESHAP are 
    specified in the part 63 General Provisions (40 CFR 63.9 and 40 CFR 
    63.10).
        The proposed standards would require sources to submit (1) initial 
    notification reports, (2) notification of compliance status reports, 
    and (3) other periodic reports (e.g., startup, shutdown and malfunction 
    report, excess emissions report, CMS performance test report).
        All recordkeeping and reporting requirements proposed for major 
    sources are consistent with the General Provision requirements, except 
    that (1) the initial notification would not be due for a year and (2) 
    the startup, shutdown and malfunction report, excess emissions report, 
    and CMS performance test report would be required semi-annually rather 
    than quarterly unless otherwise specified by the State regulatory 
    authority.
        The EPA is proposing fewer recordkeeping and reporting requirements 
    for oil and natural gas production area sources. Specifically, the 
    owners and operators of applicable area sources are not subject to (1) 
    the requirements in Sec. 63.6, paragraph (e) of the General Provisions 
    for developing and maintaining a startup, shutdown, and malfunction 
    plan or (2) the requirements in Sec. 63.10, paragraph (d) for reporting 
    actions consistent with the plan. The owners and operators of 
    applicable area sources are required to submit a report identifying 
    occurrences of startup, shutdown, or malfunction when these events 
    happen or are anticipated to happen.
        Further, the periodic excess emissions reports and summary reports, 
    as described in Sec. 63.10 paragraph (e)(3) of the General Provisions, 
    are required on a less frequent basis than for major sources. For area 
    sources, these reports are required annually (i.e., major sources need 
    to submit these reports semi-annually). This was done to reduce the 
    recordkeeping and reporting burden on owners and operators of affected 
    facilities.
    
    IX. Relationship to Other Standards and Programs under the Act
    
    A. Relationship to the Part 70 and Part 71 Permit Programs
    
        Under title V of the Act, the EPA established a permitting program 
    (part 70 and part 71 permitting program) that requires all owners and 
    operators of HAP-emitting sources to obtain an operating permit (57 FR 
    32251, July 21, 1992). Sources subject to the permitting program (i.e., 
    oil and natural gas production and natural gas transmission and storage 
    sources) are required to submit complete permit applications within a 
    year after a State program is approved by the EPA or, where a State 
    program is not approved, within a year after a program is promulgated 
    by the EPA. If the State where the facility is located does not have an 
    approved permitting program, the owner or operator of a facility must 
    submit the application to the EPA Regional Office in accordance with 
    the requirements of the part 63 General Provisions (40 CFR 63 subpart 
    A).
        In addition, section 502(a) of the Act expressly gives the 
    Administrator the discretion to exempt one or more area source 
    categories (in whole or in part) from the requirement to obtain a 
    permit under 42 U.S.C. 7661a(a).
    
    * * * if the Administrator finds that compliance with such 
    requirements is impracticable, infeasible, or unnecessarily 
    burdensome on such categories.
    
    
    [[Page 6308]]
    
    
    One critical factor that the EPA considers as part of the 
    ``unnecessarily burdensome'' criteria is the degree to which the 
    standard is implementable outside of a permit, such that the permit 
    would provide minimal additional benefit with regard to source-specific 
    tailoring of the standards.
        All area source TEG dehydration units impacted by the provisions of 
    the proposed standards must (1) comply with the compliance schedule 
    within the rule, (2) perform monitoring of the required parameters for 
    ensuring compliance, and (3) follow the limited recordkeeping and 
    reporting requirements. Therefore, the primary goal of significant 
    reductions in HAP emissions, particularly BTEX and n-hexane, would be 
    achieved, regardless of whether a permit is required. Unless otherwise 
    required by the State, the owner or operator of an area source subject 
    to the proposed standards is not required to obtain a permit under part 
    70 of title 40 CFR.
    
    B. Relationship Between the Oil and Natural Gas Production and the 
    Organic Liquids Distribution (Non-Gasoline) Source Categories
    
        The EPA believes that a clear applicability demarcation is 
    necessary to distinguish those sources that would be subject to the 
    proposed oil and natural gas production NESHAP and those that would be 
    subject to the organic liquids distribution (non-gasoline) NESHAP, 
    which is scheduled for promulgation by the year 2000.
        The proposed standards for the oil and natural gas production 
    source category identify the source category and applicability as 
    including facilities up to the point of custody transfer. The EPA 
    intends to define the organic liquids distribution (non-gasoline) 
    source category as including those facilities that handle and 
    distribute organic liquids (non-gasoline) from the point of custody 
    transfer.
    
    C. Relationship of Proposed Standards to the Pollution Prevention Act
    
        The Congress passed and the President signed into law the Pollution 
    Prevention Act of 1990 (PPA) making pollution prevention a national 
    policy. Section 6602(b) identifies an environmental management 
    hierarchy in which pollution
    
    * * * should be prevented or reduced whenever feasible; pollution 
    that cannot be prevented should be recycled in an environmentally 
    safe manner, whenever feasible; pollution that cannot be prevented 
    or recycled should be treated in an environmentally safe manner, 
    whenever feasible; and disposal or other releases into the 
    environment should be employed only as a last resort * * *
    
    In short, preventing pollution before it is created is preferable to 
    trying to manage, treat or dispose of it after it is created.
        According to PPA section 6603, source reduction is defined as 
    reducing the generation and release of hazardous substances, 
    pollutants, wastes, contaminants or residuals at the source, usually 
    within a process. The term includes equipment or technology 
    modifications, process or procedure modifications, reformulation or 
    redesign of products, substitution of raw materials, and improvements 
    in housekeeping, maintenance, training, or inventory control. Source 
    reduction does not include any practice that alters the physical, 
    chemical, or biological characteristics or the volume of a hazardous 
    substance, pollutant, or contaminant through a process or activity that 
    is not integral to or necessary for producing a product or providing a 
    service.
        Pertaining to these proposals, section 6604(b)(2) of the PPA 
    directs the EPA to, among other things,
    
    * * * review regulations of the Agency prior and subsequent to their 
    proposal to determine their effect on source reduction.
    
    The EPA believes that these proposed standards are consistent with the 
    purpose of the Clean Air Act's requirement to consider source reduction 
    technologies. The EPA's emphasis on source reduction hierarchy is also 
    entirely consistent with the Act, particularly the air toxics provision 
    (section 112) that requires the maximum achievable emission reductions 
    through measures that
    
    * * * reduce the volume of, or eliminate emissions of, such 
    pollutants through process changes, substitution of materials or 
    other modifications; * * *
    
    In the proposed standards, the EPA has incorporated the application of 
    the environmental source reduction management hierarchy. These proposed 
    standards encourage source reduction by (1) control of HAP air 
    emissions through the use of condensers and vapor collection/recovery 
    systems and (2) allowing for the use of system optimization on glycol 
    dehydration units through the adjustment of the glycol circulation 
    rate. This adjustment may significantly reduce related HAP emissions 
    because, on average, the glycol circulation rate is double the 
    necessary rate.
    
    D. Relationship of Proposed Standards to the Natural Gas STAR Program
    
        The Natural Gas STAR Program is a voluntary, cooperative program 
    between the EPA and the natural gas industry to promote cost-effective 
    methods for reducing methane emissions. The program, part of the U.S. 
    Climate Change Action Plan, outlines a set of initiatives that will 
    enable the profitable reduction of greenhouse gas emissions. The first 
    phase of the program was initiated in 1993 with companies in the 
    natural gas transmission and distribution industry. The 38 partner 
    companies are currently capturing 36.8 million m\3\ (1.3 billion ft\3\ 
    (bcf)) of methane annually, worth almost $3 million.
        The natural gas production industry program was initiated in 1995. 
    When fully implemented in the year 2000, Natural Gas STAR companies are 
    projected to recover more than 710 million m\3\ (25 bcf) of methane 
    annually, worth an estimated $50 million.
        Under this program, partners agree to implement two best management 
    practices (BMPs) when cost-effective. These include (1) identifying and 
    replacing high-bleed pneumatic devices and (2) installing GCG 
    separators (flash tank separators) on glycol dehydration units and 
    recovering the separated methane stream. Additionally, the EPA has 
    agreed to assist partner companies in the removal of unjustified 
    regulatory barriers to implementing these practices.
        The standards proposed for the oil and natural gas production and 
    natural gas transmission and storage source categories do not create 
    regulatory barriers to implementing the BMPs encouraged under this 
    program. The control requirements for glycol dehydration units at major 
    sources and selected area sources would require control of the flash 
    tank separator vent, if present. This would encourage further product 
    recovery and reduction of HAP and methane air emissions and enhance the 
    product recovery and emission reduction goals of the Natural Gas STAR 
    Program.
    
    E. Overlapping Regulations
    
        The proposed standards clarify the applicability of 40 CFR part 63, 
    subpart HH (oil and natural gas production NESHAP) equipment leak 
    provisions by stating that existing oil and natural gas production 
    sources subject to subpart HH and 40 CFR part 60, subpart KKK (onshore 
    natural gas processing plants NSPS) are required only to comply with 
    subpart KKK.
    
    [[Page 6309]]
    
    X. Solicitation of Comments
    
        Comments are specifically requested on several aspects of the 
    proposed standards. These topics are summarized below.
    
    A. Potential-to-Emit
    
        The EPA is currently in the process of developing a separate 
    rulemaking to address several potential-to-emit (PTE) issues. Until the 
    EPA takes final action on the proposal, any determination of PTE made 
    to determine a facility's applicability status under a relevant part 63 
    standard should be made according to requirements set forth in the 
    relevant standard and in the General Provisions.
        Industry representatives have commented that both oil and natural 
    gas production and natural gas transmission and storage facilities 
    often have a maximum capacity (based on physical and operational 
    design) to emit higher than inherent physical limitations would allow. 
    Concern was expressed that potential emissions could be overestimated 
    and a facility could be subject to the Act requirements affecting major 
    sources despite inherent limitations (e.g., depletion of oil and 
    natural gas reservoirs).
        The EPA is committed to providing technical assistance on the type 
    of inherent physical and operational design features that may be 
    considered acceptable in determining the PTE for certain source 
    categories. Therefore, the EPA is evaluating and solicits specific 
    recommendations, along with supporting documentation, on how inherent 
    limitations should be addressed for oil and natural gas production and 
    natural gas transmission and storage facilities.
    
    B. Definition of Facility
    
        The EPA specifically requests comments on the proposed definition 
    of facility. Specifically, the EPA requests comments on whether the 
    proposed definition appropriately implements the intent of the major 
    source definition in section 112(a)(1) for the oil and natural gas 
    production and natural gas transmission and storage source categories, 
    or if another definition would better implement this intent.
    
    C. Interpretation of ``Associated Equipment'' in Section 112(n)(4) of 
    the Act
    
        As discussed in section V of this preamble, the EPA has proposed a 
    definition for the term ``associated equipment'' to implement the 
    special provisions of section 112(n)(4) of the Act for the oil and 
    natural gas production source category. Comments are specifically 
    requested on the EPA's proposed definition.
        If there is disagreement with the EPA's proposed definition, the 
    EPA requests that the commenter provide alternative definition options, 
    along with supporting documentation, that would provide the relief 
    intended by Congress for this industry while preserving the EPA's 
    ability to regulate HAP emissions from glycol dehydration units, 
    storage vessels with flash emissions, and equipment leaks.
    
    D. Regulation of Area Source Glycol Dehydration Units
    
        The EPA does not intend to regulate TEG dehydration units that have 
    low HAP emissions or units in areas where there is little or no 
    potential threat of adverse health effects from exposure to HAP 
    emissions from TEG dehydration units. The rules, as proposed, include 
    applicability cutoffs of (1) 85 thousand m\3\/day (3.0 MMSCF/D) of flow 
    to the unit, on an annual average basis, or (2) 0.9 Mg/yr (1 tpy) of 
    benzene emissions.
        The EPA is proposing an additional action level based on the 
    county-level urban versus rural location of area source TEG dehydration 
    units. Thus, only those selected area source TEG dehydration units 
    located in counties classified as urban (see section III of this 
    preamble) and also meeting or exceeding the actual natural gas 
    throughput and benzene emission rate action levels will be required to 
    install air emission controls on all process vents. Units (1) below 
    these cutoffs or (2) located in counties classified as rural would not 
    have to be controlled for HAP emissions under the proposed rules.
        The EPA evaluated the use of a risk-distance applicability criteria 
    as an alternative to the urban area criteria. The EPA is requesting 
    comment, along with supporting documentation, on the use of a risk-
    distance applicability criteria for focussing the area source 
    provisions of this proposed regulation to only those area source TEG 
    dehydration units that meet a risk-distance criteria for applicability.
        TEG dehydration units located at natural gas transmission and 
    storage facilities emit similar emissions and have a similar emission 
    potential to those located at oil and natural gas production 
    facilities. However, insufficient information was available to conduct 
    an area source finding analysis for the natural gas transmission and 
    storage source category.
        The EPA is currently evaluating whether TEG dehydration units 
    located at natural gas transmission and storage area sources result in 
    an unacceptable risk and should be listed and regulated as an area 
    source. The EPA is soliciting comment, along with supporting 
    documentation, in this notice on the emissions, location, and number of 
    TEG dehydration units located at natural gas transmission and storage 
    area sources. Information supplied to the EPA should either support or 
    negate the need for an area source listing.
    
    E. HAP Emission Points
    
        The EPA specifically requests information on potential HAP 
    emissions that may be associated with (1) process vents at amine 
    treating units and sulfur plants, (2) transfer and storage of pipeline 
    pigging wastes, and (3) combustion sources located at oil and natural 
    gas production and natural gas transmission and storage facilities. The 
    EPA has not identified sufficient data to adequately address the 
    potential of HAP emissions from these emission points in these source 
    categories. Thus, the EPA is requesting comment, along with supporting 
    documentation, on HAP emissions from these emission points.
    
    F. Storage Vessels at Natural Gas Transmission and Storage Facilities
    
        The EPA had insufficient information to determine whether 
    significant HAP-emitting storage vessels warranting control are located 
    at natural gas transmission and storage facilities that are major 
    sources of HAP. Therefore, the EPA is soliciting information and 
    comment, along with supporting documentation, regarding the storage 
    vessels located at these sources.
        Specifically, the EPA is requesting information and comment, along 
    with supporting documentation, on whether the storage vessels currently 
    being proposed for control under the oil and natural gas production 
    NESHAP are similar to those located at natural gas transmission and 
    storage facilities.
    
    G. Cost Impact and Production Recovery Credits
    
        The EPA specifically requests comments on the cost impact and the 
    production recovery credits as discussed in section IV of the preamble. 
    In addition to its solicitation for comments, the EPA also requests 
    documentation to support cost impact or recovery credit comments.
    
    XI. Administrative Requirements
    
    A. Docket
    
        The docket for these rulemakings is A-94-04. The docket is an 
    organized and complete file of all the information considered by the 
    EPA in the development of this rulemaking. The principal purposes of 
    the docket are (1) to allow interested parties a means to
    
    [[Page 6310]]
    
    identify and locate documents so that they can effectively participate 
    in the rulemaking process and (2) to serve as the record in case of 
    judicial review (except for interagency review materials) [section 
    307(d)(7)(A) of the Act]. This docket contains copies of the regulatory 
    text, BID, BID references, and technical memoranda documenting the 
    information considered by the EPA in the development of the proposed 
    rules. The docket is available for public inspection at the EPA's Air 
    and Radiation Docket and Information Center, the location of which is 
    given in the ADDRESSES section of this notice.
    
    B. Paperwork Reduction Act
    
        The information collection requirements in these proposed rules 
    have been submitted for approval to the Office of Management and Budget 
    (OMB) under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. 
    Information Collection Request (ICR) documents have been prepared by 
    the EPA (ICR Nos. 1788.01 and 1789.01) and copies may be obtained from 
    Sandy Farmer, OPPE Regulatory Information Division; U.S. Environmental 
    Protection Agency (2137); 401 M Street, S.W.; Washington, DC 20460 or 
    by calling (202) 260-2740.
        Information is required to ensure compliance with the provisions of 
    the proposed rules. If the relevant information were collected less 
    frequently, the EPA would not be reasonably assured that a source is in 
    compliance with the proposed rules. In addition, the EPA's authority to 
    take administrative action would be reduced significantly.
        The proposed rules would require that facility owners or operators 
    retain records for a period of five years, which exceeds the three year 
    retention period contained in the guidelines in 5 CFR 1320.6. The five 
    year retention period is consistent with the provisions of the General 
    Provisions of 40 CFR Part 63, and with the five year records retention 
    requirement in the operating permit program under Title V of the CAA.
        All information submitted to the EPA for which a claim of 
    confidentiality is made will be safeguarded according to the EPA 
    policies set forth in Title 40, Chapter 1, Part 2, Subpart B, 
    Confidentiality of Business Information. See 40 CFR 2; 41 FR 36902, 
    September 1, 1976; amended by 43 FR 3999, September 8, 1978; 43 FR 
    42251, September 28, 1978; and 44 FR 17674, March 23, 1979. Even where 
    the EPA has determined that data received in response to an ICR is 
    eligible for confidential treatment under 40 CFR Part 2, Subpart B, the 
    EPA may nonetheless disclose the information if it is ``relevant in any 
    proceeding'' under the statute [42 U.S.C. 7414(C); 40 CFR 2.301(g)]. 
    The information collection complies with the Privacy Act of 1974 and 
    Office of Management and Budget (OMB) Circular 108.
        Information to be reported consists of emission data and other 
    information that are not of a sensitive nature. No sensitive personal 
    or proprietary data are being collected.
        The estimated annual average hour burden for the major source 
    provisions of the proposed oil and natural gas production NESHAP is 169 
    hours per respondent. The estimated annual average cost of this burden 
    is $7,300 for each of the estimated 484 existing and new (projected) 
    respondents.
        The estimated annual average hour burden for the area source 
    provisions of the proposed oil and natural gas production NESHAP is 56 
    hours per respondent. The estimated annual average cost of this burden 
    is $2,400 for each of the estimated 572 existing and new (projected) 
    respondents.
        The estimated annual average hour burden for the major source 
    provisions of the proposed natural gas transmission and storage NESHAP 
    is 77 hours per respondent. The estimated annual average cost of this 
    burden is $3,300 for each of the estimated 5 existing respondents.
        Reports are required on a semi-annual and annual basis (depending 
    upon the reports) and as required, as in the case of startup, shutdown, 
    and malfunction plans. Burden means the total time, effort, or 
    financial resources expended by persons to generate, maintain, retain, 
    or disclose or provide information to or for a Federal agency. This 
    includes the time needed to review instructions; develop, acquire, 
    install, and utilize technology and systems for the purposes of 
    collecting, validating, and verifying information, processing and 
    maintaining information, and disclosing and providing information; 
    adjust the existing ways to comply with any previously applicable 
    instructions and requirements; train personnel to be able to respond to 
    a collection of information; search data sources; complete and review 
    the collection of information; and transmit or otherwise disclose the 
    information.
        An Agency may not conduct or sponsor, and a person is not required 
    to respond to a collection of information unless it displays a 
    currently valid OMB control number. The OMB control numbers for the 
    EPA's regulations are listed in 40 CFR part 9 and 48 CFR Chapter 15.
        Comments are requested on the EPA's need for this information, the 
    accuracy of the provided burden estimates, and any suggested methods 
    for minimizing respondent burden, including through the use of 
    automated collection techniques. Send comments on the ICRs to the 
    Director, OPPE Regulatory Information Division; U.S. Environmental 
    Protection Agency (2137); 401 M Street, S.W., Washington, DC 20460; and 
    to the Office of Information and Regulatory Affairs, Office of 
    Management and Budget, 725 17th Street, N.W., Washington, DC 20503, 
    marked ``Attention: Desk Officer for EPA.'' Include the ICR number(s) 
    in any correspondence. Since OMB is required to make a decision 
    concerning the ICR's between 30 and 60 days after February 6, 1998, a 
    comment to OMB is best assured of having its full effect if OMB 
    receives it by March 9, 1998. The final rules will respond to any OMB 
    or public comments on the information collection requirements contained 
    in this proposal.
    
    C. Executive Order 12866
    
        Under Executive Order 12866 [58 FR 5173 (October 4, 1993)], the EPA 
    must determine whether the regulatory action is ``significant'' and 
    therefore subject to OMB review and the requirements of the Executive 
    Order. The criteria set forth in section 1 of the Order for determining 
    whether a regulation is a significant rule are as follows: (1) Is 
    likely to have an annual effect on the economy of $100 million or more, 
    or adversely and materially affect a sector of the economy, 
    productivity, competition, jobs, the environment, public health or 
    safety, or State, local or tribal governments or communities; (2) is 
    likely to create a serious inconsistency or otherwise interfere with an 
    action taken or planned by another agency; (3) is likely to materially 
    alter the budgetary impact of entitlements, grants, user fees or loan 
    programs, or the rights and obligations of recipients thereof; or (4) 
    is likely to raise novel legal or policy issues arising out of legal 
    mandates, the President's priorities, or the principles set forth in 
    the Executive Order.
        Based on criteria 1, 2, and 3, this action is not a ``significant 
    regulatory action'' within the meaning of Executive Order 12866. 
    However, the OMB has deemed it significant under criterion 4 and has 
    requested review of this proposed rulemaking package. Therefore, the 
    EPA submitted this action to OMB for review. Changes made in response 
    to OMB suggestions or recommendations are documented in the public 
    record.
    
    [[Page 6311]]
    
    D. Regulatory Flexibility
    
        The Regulatory Flexibility Act (RFA) generally requires an agency 
    to conduct a regulatory flexibility analysis of any rule subject to 
    notice and comment rulemaking requirements, unless the agency certifies 
    that the rule will not have a significant economic impact on a 
    substantial number of small entities. Small entities include small 
    businesses, small not-for-profit enterprises, and small governmental 
    jurisdictions. These proposed rules will not have a significant 
    economic impact on a substantial number of small entities. According to 
    Wards Business Directory (1993), there are 1,152 firms in the seven 
    affected Standard Industrial Classification (SIC) codes and 735 of 
    these firms meet the Small Business Administration (SBA) definition of 
    a small entity.
        The number of affected small entities for these rules is likely to 
    be minimal due to several considerations in these rules that minimize 
    the burden on all firms, both small and large. These considerations 
    include exempting from control requirements those glycol dehydration 
    units located at major or area sources with (1) an actual flowrate of 
    natural gas to the glycol dehydration unit less than 85 m\3\/day (3.0 
    MMSCF/D), on an annual average basis, or (2) benzene emissions less 
    than 0.9 Mg/yr (1 tpy). In addition, emission controls are limited to 
    those area source glycol dehydration units located in urban areas.
        In a screening of potential impacts on a sample of small entities, 
    the EPA found that there are minimal impacts on these entities. The 
    weighted average of control costs as a percent of sales is 0.09 of one 
    percent for the small firms in the sample, while a maximum value of 1.1 
    percent results for only two of these firms. The analysis also 
    indicates that with the regulations, the change in measures of 
    profitability are minimal (i.e., 0.11 of one percent change in the 
    cost-to-sales ratio for small firms), and there are no indications of 
    financial failures or employment losses for both small and large firms. 
    The screening analysis for these rules is detailed in the Economic 
    Impact Analysis (see Docket No. A-94-04).
        Therefore, I certify that this action will not have a significant 
    economic impact on a substantial number of small entities.
    
    E. Unfunded Mandates
    
        Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Public 
    Law 104-4, establishes requirements for Federal agencies to assess the 
    effects of their regulatory actions on State, local, and tribal 
    governments and the private sector. Under section 202 of the UMRA, the 
    EPA generally must prepare a written statement, including a cost-
    benefit analysis, for the proposed and final rules with ``Federal 
    mandates'' that may result in expenditures to State, local, and tribal 
    governments, in the aggregate, or to the private sector, of $100 
    million or more in any one year. Before promulgating an EPA rule for 
    which a written statement is needed, section 205 of the UMRA generally 
    requires the EPA to identify and consider a reasonable number of 
    regulatory alternatives and adopt the least costly, most cost-
    effective, or least burdensome alternative that achieves the objectives 
    of the rule. The provisions of section 205 do not apply when they are 
    inconsistent with applicable law. Moreover, section 205 allows the EPA 
    to adopt an alternative other than the least costly, most cost-
    effective, or least burdensome alternative if the Administrator 
    publishes with the final rule an explanation why that alternative was 
    not adopted. Before the EPA establishes any regulatory requirements 
    that may significantly or uniquely affect small governments, including 
    tribal governments, it must have developed under section 203 of the 
    UMRA a small government agency plan. The plan must provide for 
    notifying potentially affected small governments, enabling officials of 
    affected small governments to have meaningful and timely input in the 
    development of the EPA regulatory proposals with significant Federal 
    intergovernmental mandates, and informing, educating, and advising 
    small governments on compliance with the regulatory requirements.
        The EPA has determined that these rules do not contain a Federal 
    mandate that may result in expenditures of $100 million or more for 
    State, local, and tribal governments, in the aggregate or the private 
    sector in any one year. The EPA's total estimated annual net costs of 
    the proposed rules is $10 million, including MIRR costs. Thus, today's 
    rules are not subject to the requirements of sections 202 and 205 of 
    the UMRA.
        The EPA has determined that these rules contain no regulatory 
    requirements that might significantly or uniquely affect small 
    governments. No small government entities have been identified that 
    have involvement with these source categories and, as such, are not 
    covered by the regulatory requirements of the proposed regulations.
    
    List of Subjects in 40 CFR Part 63
    
        Environmental protection, Air pollution control, Air emissions 
    control, Associated equipment, Black oil, Condensate, Custody transfer, 
    Equipment leaks, Glycol dehydration units, Hazardous air pollutants, 
    Hazardous substances, Natural gas, Intergovernmental relations, Natural 
    gas processing plants, Natural gas transmission and storage, Oil and 
    natural gas production, Pipelines, Organic liquids distribution (non-
    gasoline), Reporting and recordkeeping requirements, Storage vessels, 
    Tank batteries, Tanks, Triethylene glycol.
    
        Dated: November 24, 1997.
    Carol M. Browner,
    Administrator.
        For the reasons set out in the preamble, title 40, chapter I, part 
    63 of the Code of Federal Regulations is proposed to be amended as 
    follows:
    
    PART 63--NATIONAL EMISSION STANDARDS FOR HAZARDOUS AIR POLLUTANTS 
    FOR SOURCE CATEGORIES
    
        1. The authority citation for part 63 continues to read as follows:
    
        Authority: 42 U.S.C. 7401 et seq.
    
        2. Part 63 is amended by adding subpart HH to read as follows:
    
    Subpart HH--National Emission Standards for Hazardous Air 
    Pollutants From Oil and Natural Gas Production Facilities
    
    Sec.
    63.760  Applicability and designation of affected source.
    63.761  Definitions.
    63.762  [Reserved]
    63.763  [Reserved]
    63.764  General standards.
    63.765  Glycol dehydration unit process vent standards.
    63.766  Storage vessel standards.
    63.767  [Reserved]
    63.768  [Reserved]
    63.769  Equipment leak standards.
    63.770  [Reserved]
    63.771  Control requirements.
    63.772  Test methods and compliance procedures.
    63.773  Inspection and monitoring requirements.
    63.774  Recordkeeping requirements.
    63.775  Reporting requirements.
    63.776  Delegation of authority. [Reserved]
    63.777  Alternative means of emission limitation.
    63.778  [Reserved]
    63.779  [Reserved]
    Table 1 to Subpart HH--List of Air Pollutants for Subpart HH
    Table 2 to Subpart HH--Applicability of 40 CFR Part 63 General 
    Provisions to Subpart HH
    
    [[Page 6312]]
    
    Subpart HH--National Emission Standards for Hazardous Air 
    Pollutants From Oil and Natural Gas Production Facilities
    
    
    Sec. 63.760  Applicability and designation of affected source.
    
        (a) This subpart applies to the owners or operators of emission 
    points, as specified in paragraph (b) of this section, that are located 
    at oil and natural gas production facilities that meet the specified 
    criteria in paragraphs (a)(1), (a)(2), and (a)(3) of this section.
        (1) Facilities that process, upgrade, or store hydrocarbon liquids 
    prior to the point of custody transfer;
        (2) Facilities 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; and
        (3) Both major and area sources of HAP.
        (b) The affected sources for major sources are listed in paragraph 
    (b)(1) of this section and for area sources in paragraph (b)(2) of this 
    section.
        (1) For major sources, the affected source shall comprise each 
    emission point located at a facility that meets the criteria specified 
    in paragraph (a) of this section and listed in paragraphs (b)(1)(i) 
    through (b)(1)(iv) of this section.
        (i) Each glycol dehydration unit;
        (ii) Each storage vessel with flash emissions;
        (iii) The group of all ancillary equipment, except compressors; and
        (iv) Compressors intended to operate in volatile organic hazardous 
    air pollutant service (as defined in Sec. 63.761).
        (2) For area sources, the affected source includes each triethylene 
    glycol dehydration unit located at a facility that meets the criteria 
    specified in paragraph (a) of this section.
        (c) [Reserved]
        (d) The owner or operator of a facility that does not contain an 
    affected source as specified in paragraph (b) of this section is not 
    subject to the requirements of this subpart.
        (e) The owner or operator of a facility that exclusively processes, 
    stores, or transfers black oil (as defined in Sec. 63.761) is not 
    subject to the requirements of this subpart.
        (f) The owner or operator of an affected source shall achieve 
    compliance with the provisions of this subpart by the dates specified 
    in paragraphs (f)(1) and (f)(2) of this section.
        (1) The owner or operator of an affected source the construction or 
    reconstruction of which commenced before February 6, 1998, shall 
    achieve compliance with the provisions of the subpart as expeditiously 
    as practical after [the date of publication of the final rule], but no 
    later than three years after [the date of publication of the final 
    rule] except as provided for in Sec. 63.6(i).
        (2) The owner or operator of an affected source the construction or 
    reconstruction of which commences on or after February 6, 1998, shall 
    achieve compliance with the provisions of this subpart immediately upon 
    startup or [the date of publication of the final rule], whichever date 
    is later.
        (g) The following provides owners or operators of an affected 
    source with information on overlap of this subpart with other 
    regulations for equipment leaks.
        (1) After the compliance dates specified in paragraph (f) of this 
    section, ancillary equipment that is subject to this subpart and that 
    is also subject to and controlled under the provisions of 40 CFR part 
    60, subpart KKK is only required to comply with the requirements of 40 
    CFR part 60, subpart KKK.
        (2) After the compliance dates specified in paragraph (f) of this 
    section, ancillary equipment that is subject to this subpart and is 
    also subject to and controlled under the provisions of 40 CFR part 61, 
    subpart V is only required to comply with the requirements of 40 CFR 
    part 61, subpart V.
        (3) After the compliance dates specified in paragraph (f) of this 
    section, ancillary equipment that is subject to this subpart and is 
    also subject to and controlled under the provisions of subpart H of 
    this part is only required to comply with the requirements of subpart H 
    of this part.
        (h) An owner or operator of an affected source that is a major 
    source or located at a major source and is subject to the provisions of 
    this subpart is also subject to 40 CFR part 70 permitting requirements. 
    Unless otherwise required by the State, the owner or operator of an 
    area source subject to the provisions this subpart is not required to 
    obtain a permit under part 70 of title 40 of the Code of Federal 
    Regulations.
    
    
    Sec. 63.761  Definitions.
    
        All terms used in this subpart shall have the meaning given them in 
    the Clean Air Act, subpart A of this part (General Provisions), and in 
    this section. If the same term is defined in subpart A and in this 
    section, it shall have the meaning given in this section for purposes 
    of this subpart.
        Alaskan North Slope means the approximately 180,000 square 
    kilometer area (69,000 square mile area) extending from the Brooks 
    Range to the Arctic Ocean.
        Ancillary equipment means any of the following pieces of equipment: 
    pumps, compressors, pressure relief devices, sampling connection 
    systems, open-ended valves or lines, valves, flanges and other 
    connectors, or product accumulator vessels.
        API gravity means the weight per unit volume of hydrocarbon liquids 
    as measured by a system recommended by the American Petroleum Institute 
    (API) and is expressed in degrees.
        Associated equipment, as used in this subpart and as referred to in 
    section 112(n)(4) of the Act, means equipment associated with an oil or 
    natural gas exploration or production well, and includes all equipment 
    from the wellbore to the point of custody transfer, except glycol 
    dehydration units and storage vessels with the potential for flash 
    emissions.
        Average concentration, as used in this subpart, means the annual 
    average flow rate, as determined according to the procedures specified 
    in Sec. 63.772(b).
        Black oil means hydrocarbon (petroleum) liquid with a gas-to-oil 
    ratio (GOR) less than 50 cubic meters (1,750 cubic feet) per barrel and 
    an API gravity less than 40 degrees.
        Boiler means any enclosed combustion device that extracts useful 
    energy in the form of steam and that is not an incinerator.
        Closed-vent system means a system that is not open to the 
    atmosphere and that is composed of piping, ductwork, connections, and, 
    if necessary, flow inducing devices that transport gas or vapor from an 
    emission point to a control device or back into the process. If gas or 
    vapor from regulated equipment is routed to a process (e.g., to a fuel 
    gas system), the process shall not be considered a closed vent system 
    and is not subject to closed vent system standards.
        Combustion device means an individual unit of equipment such as a 
    flare, incinerator, process heater, or boiler used for the combustion 
    of volatile organic hazardous air pollutant vapors.
        Compressor means a piece of equipment that increases the pressure 
    of a process gas by positive displacement, employing linear movement of 
    the drive shaft.
        Condensate means hydrocarbon liquid that condenses because of 
    changes in temperature, pressure, or both, and remains liquid at 
    standard conditions.
        Continuous recorder means a data recording device that either 
    records an instantaneous data value at least once
    
    [[Page 6313]]
    
    every 15 minutes or records 15-minute or more frequent block average 
    values.
        Continuous seal means a seal that forms a continuous closure that 
    completely covers the space between the wall of the storage vessel and 
    the edge of the floating roof. A continuous seal may be a vapor-
    mounted, liquid-mounted, or metallic shoe seal.
        Control device means any equipment used for recovering or oxidizing 
    hazardous air pollutant (HAP) and volatile organic compound (VOC) 
    vapors. Such equipment includes, but is not limited to, absorbers, 
    carbon adsorbers, condensers, incinerators, flares, boilers, and 
    process heaters. For the purposes of this subpart, if gas or vapor from 
    regulated equipment is used, reused, returned back to the process, or 
    sold, then the recovery system used, including piping, connections, and 
    flow inducing devices, are not considered to be control devices.
        Cover means a device which is placed on top of or over a material 
    such that the entire surface area of the material is enclosed and 
    sealed, to reduce emissions to the atmosphere. A cover may have 
    openings (such as access hatches, sampling ports, and gauge wells) if 
    those openings are necessary for operation, inspection, maintenance, or 
    repair of the unit on which the cover is installed, provided that each 
    opening is closed and sealed when the opening is not in use. In 
    addition, a cover may have one or more safety devices. Examples of a 
    cover include a fixed-roof installed on a tank, an external floating 
    roof installed on a tank, and a lid installed on a drum or other 
    container.
        Custody transfer means the transfer of hydrocarbon liquids or 
    natural gas, after processing and/or treatment in the producing 
    operations, from storage vessels or automatic transfer facilities to 
    pipelines or any other forms of transportation. For the purposes of 
    this subpart, the EPA considers the point at which natural gas enters a 
    natural gas processing plant as a point of custody transfer.
        Equipment leak means emissions of hazardous air pollutants from a 
    pump, compressor, pressure relief device, sampling connection system, 
    open-ended valve or line, valve, or instrumentation system.
        Facility means any grouping of equipment: where hydrocarbon liquids 
    are processed, upgraded, or stored prior to the point of custody 
    transfer; or where natural gas is processed, upgraded, or stored prior 
    to entering the natural gas transmission source category. For the 
    purpose of a major source determination, means oil and natural gas 
    production and processing equipment that is located within the 
    boundaries of an individual surface site. Equipment that is part of a 
    facility will typically be located within close proximity to other 
    equipment located at the same facility. Pieces of production equipment 
    or groupings of equipment located on different oil and gas leases, 
    mineral fee tracts, lease tracts, subsurface unit areas, surface fee 
    tracts, or surface lease tracts shall not be considered part of the 
    same facility. Examples of facilities in the oil and natural gas 
    production source category include, but are not limited to, well sites, 
    satellite tank batteries, central tank batteries, graded pad sites, and 
    natural gas processing plants.
        Field natural gas means natural gas extracted from a production 
    well prior to entering the first stage of processing, such as 
    dehydration.
        Fill or filling means the introduction of a material into a storage 
    vessel.
        Fixed-roof means a cover that is mounted on a waste management unit 
    or storage vessel in a stationary manner and that does not move with 
    fluctuations in liquid level.
        Flame zone means the portion of the combustion chamber in a boiler 
    occupied by the flame envelope.
        Flash tank. See definition for gas-condensate-glycol (GCG) 
    separator.
        Flow indicator means a device that indicates whether gas flow is 
    present in a line.
        Gas-condensate-glycol (GCG) separator means a two-or three-phase 
    separator through which the ``rich'' glycol stream of a glycol 
    dehydration unit is passed to remove entrained gas and hydrocarbon 
    liquid. The GCG separator is commonly referred to as a flash separator 
    or flash tank.
        Gas-to-oil ratio (GOR) means the number of standard cubic meters 
    (cubic feet) of gas produced per barrel of crude oil or other 
    hydrocarbon liquid.
        Glycol dehydration unit means a device in which a liquid glycol 
    absorbent directly contacts a natural gas stream (that is circulated 
    counter current to the glycol flow) and absorbs water vapor in a 
    contact tower or absorption column (absorber). The glycol contacts and 
    absorbs water vapor and other gas stream constituents from the natural 
    gas and becomes ``rich'' glycol. This glycol is then regenerated by 
    distilling the water and other gas stream constituents in the glycol 
    dehydration unit reboiler. The distilled or ``lean'' glycol is then 
    recycled back to the absorber.
        Glycol dehydration unit reboiler vent means the vent through which 
    exhaust from the reboiler of a glycol dehydration unit passes from the 
    reboiler to the atmosphere.
        Glycol dehydration unit process vent means either the glycol 
    dehydration unit reboiler vent or the vent from the GCG separator 
    (flash tank).
        Hazardous air pollutants or HAP means the chemical compounds listed 
    in section 112(b) of the Act. All chemical compounds listed in section 
    112(b) of the Act need to be considered when making a major source 
    determination. Only the HAP compounds listed in Table 1 of this subpart 
    need to be considered when determining applicability and compliance.
        Hydrocarbon liquid means any naturally occurring, unrefined 
    petroleum liquid.
        In VOHAP service means that a piece of ancillary equipment either 
    contains or contacts a fluid (liquid or gas) which has a total volatile 
    organic HAP (VOHAP) concentration equal to or greater than 10 percent 
    by weight as determined according to the provisions of 40 CFR 
    61.245(d).
        Major source, as used in this subpart, shall have the same meaning 
    as in Sec. 63.2, except that:
        (1) Emissions from any oil or gas exploration or production well 
    (with its associated equipment (as defined in this section)) and 
    emissions from any pipeline compressor or pump station shall not be 
    aggregated with emissions from other similar units, to determine 
    whether such emission points or stations are major sources, even when 
    emission points are in a contiguous area or under common control;
        (2) Emissions from processes, operations, or equipment that are not 
    part of the same facility, as defined in this section, shall not be 
    aggregated; and
        (3) For facilities that are production field facilities, only HAP 
    emissions from glycol dehydration units and storage tanks with flash 
    emission potential shall be counted in a major source determination.
        Natural gas means the gaseous mixture of hydrocarbon gases and 
    vapors, primarily consisting of methane, ethane, propane, butane, 
    pentane, and hexane, along with water vapor and other constituents.
        Natural gas liquids (NGLs) means the hydrocarbons, such as ethane, 
    propane, butane, pentane, natural gasoline, and condensate that are 
    extracted from field gas.
        Natural gas processing plant (gas plant) means any processing site 
    engaged in:
        (1) The extraction of natural gas liquids from field gas; or
        (2) The fractionation of mixed NGLs to natural gas products.
    
    [[Page 6314]]
    
        No detectable emissions means no escape of HAP from a device or 
    system to the atmosphere as determined by:
        (1) Testing the device or system in accordance with the 
    requirements of Sec. 63.772(c); and
        (2) No visible openings or defects in the device or system such as 
    rips, tears, or gaps.
        Operating parameter value means a minimum or maximum value 
    established for a control device or process parameter which, if 
    achieved by itself or in combination with one or more other operating 
    parameter values, determines that an owner or operator has complied 
    with an applicable emission limitation or standard.
        Operating permit means a permit required by 40 CFR part 70 or part 
    71.
        Organic monitoring device means a unit of equipment used to 
    indicate the concentration level of organic compounds exiting a 
    recovery device based on a detection principle such as infra-red, 
    photoionization, or thermal conductivity.
        Point of material entry means at the point where a material first 
    enters a source subject to this subpart.
        Primary fuel means the fuel that provides the principal heat input 
    (i.e., more than 50-percent) to the device. To be considered primary, 
    the fuel must be able to sustain operation without the addition of 
    other fuels.
        Process heater means a device that transfers heat liberated by 
    burning fuel directly to process streams or to heat transfer liquids 
    other than water.
        Produced water means water:
        (1) That is extracted from the earth from an oil or natural gas 
    production well; or
        (2) That is separated from crude oil, condensate, or natural gas 
    after extraction.
        Production field facilities means those facilities located prior to 
    the point of custody transfer.
        Production well means any hole drilled in the earth from which 
    crude oil, condensate, or field natural gas is extracted.
        Relief device means a device used only to release an unplanned, 
    non-routine discharge. A relief device discharge can result from an 
    operator error, a malfunction such as a power failure or equipment 
    failure, or other unexpected cause that requires immediate venting of 
    gas from process equipment in order to avoid safety hazards or 
    equipment damage.
        Safety device means a device that is not used for planned or 
    routine venting of liquids, gases, or fumes from the unit or equipment 
    on which the device is installed; and the device remains in a closed, 
    sealed position at all times except when an unplanned event requires 
    that the device open for the purpose of preventing physical damage or 
    permanent deformation of the unit or equipment on which the device is 
    installed in accordance with good engineering and safety practices for 
    handling flammable, combustible, explosive, or other hazardous 
    materials. Examples of unplanned events which may require a safety 
    device to open include failure of an essential equipment component or a 
    sudden power outage.
        Storage vessel means a tank or other vessel that is designed to 
    contain an accumulation of crude oil, condensate, intermediate 
    hydrocarbon liquids, or produced water and that is constructed 
    primarily of non-earthen materials (e.g., wood, concrete, steel, 
    plastic) that provide structural support.
        Storage vessel with the potential for flash emissions means any 
    storage vessel that contains a hydrocarbon with a GOR equal to or 
    greater than 50 cubic meters (1,750 cubic feet) per barrel or an API 
    gravity equal to or greater than 40 degrees.
        Surface site means the graded pad, gravel pad, foundation, 
    platform, or immediate physical location upon which equipment is 
    physically affixed.
        Tank battery means a collection of equipment used to separate, 
    treat, store, and transfer crude oil, condensate, natural gas, and 
    produced water. A tank battery typically receives crude oil, 
    condensate, natural gas, or some combination of these extracted 
    products from several production wells for accumulation and separation 
    prior to transmission to a natural gas plant or petroleum refinery. A 
    tank battery may or may not include a glycol dehydration unit.
        Temperature monitoring device means a unit of equipment used to 
    monitor temperature and having an accuracy of 1 percent of 
    the temperature being monitored expressed in  deg.C, or 
    0.5 deg.C, whichever is greater.
        Total organic compounds or TOC, as used in this subpart, means 
    those compounds measured according to the procedures of Method 18, 40 
    CFR part 60, appendix A.
        Urban area is defined by use of the U.S. Department of Commerce's 
    Bureau of the Census statistical data to classify every county in the 
    U.S. into one of the three classifications:
        (1) Urban-1 areas which consist of metropolitan statistical areas 
    (MSA) with a population greater than 250,000;
        (2) Urban-2 areas which are defined as all other areas designated 
    urban by the Bureau of Census (areas which comprise one or more central 
    places and the adjacent densely settled surrounding fringe that 
    together have a minimum of 50,000 persons). The urban fringe consists 
    of contiguous territory having a density of at least 1,000 persons per 
    square mile; or
        (3) Rural areas which are those counties not designated as urban by 
    the Bureau of the Census.
        Volatile organic hazardous air pollutant concentration or VOHAP 
    concentration means the fraction by weight of all HAP contained in a 
    material as determined in accordance with procedures specified in 
    Sec. 63.772(a).
    
    
    Sec. 63.762  [Reserved]
    
    
    Sec. 63.763  [Reserved]
    
    
    Sec. 63.764  General standards.
    
        (a) Table 2 of this subpart specifies the provisions of subpart A 
    (General Provisions) that apply and those that do not apply to owners 
    and operators of affected sources subject to this subpart.
        (b) All reports required under this subpart shall be sent to the 
    Administrator at the appropriate address listed in Sec. 63.13. If 
    acceptable to both the Administrator and the owner or operator of a 
    source, reports may be submitted on electronic media.
        (c) Except as specified in paragraph (e) of this section, the owner 
    or operator of an affected source located at an existing or new major 
    source shall comply with the standards in this subpart as specified in 
    paragraphs (c)(1) through (c)(3) of this section.
        (1) For each glycol dehydration unit process vent subject to this 
    subpart, the owner or operator shall comply with the requirements 
    specified in paragraphs (c)(1)(i) through (c)(1)(iii) of this section.
        (i) The owner or operator shall comply with the control 
    requirements for glycol dehydration unit process vents specified in 
    Sec. 63.765;
        (ii) The owner or operator shall comply with the monitoring 
    requirements of Sec. 63.773; and
        (iii) The owner or operator shall comply with the recordkeeping and 
    reporting requirements of Secs. 63.774 and 63.775.
        (2) For each storage vessel with the potential for flash emissions 
    and an actual throughput of hydrocarbon liquids equal to or greater 
    than 500 barrels per day (BPD), the owner or operator shall comply with 
    the requirements specified in paragraphs (c)(2)(i) through (c)(2)(iii) 
    of this section.
        (i) The control requirements for storage vessels specified in 
    Sec. 63.766;
        (ii) The monitoring requirements of Sec. 63.773; and
    
    [[Page 6315]]
    
        (iii) The recordkeeping and reporting requirements of Secs. 63.774 
    and 63.775.
        (3) For ancillary equipment (as defined in Sec. 63.761) at a 
    natural gas processing plant subject to this subpart, the owner or 
    operator shall comply with the requirements for equipment leaks 
    specified in Sec. 63.769.
        (d) The owner or operator of an affected source located at an area 
    source of HAP emissions shall comply with the standards in this subpart 
    as specified in paragraphs (d)(1) through (d)(3) of this section.
        (1) The control requirements for glycol dehydration unit process 
    vents specified in Sec. 63.765;
        (2) The monitoring requirements of Sec. 63.773; and
        (3) The recordkeeping and reporting requirements of Secs. 63.774 
    and 63.775.
        (e) The owner or operator is exempt from the requirements of 
    paragraphs (c)(1) and (d) of this section if the actual annual average 
    flow of gas to the glycol dehydration unit is less than 85 thousand 
    cubic meters per day (3.0 million standard cubic feet per day) or 
    emissions of benzene from the unit to the atmosphere are less than 0.9 
    megagram per year (1 ton per year). The flow of natural gas to the unit 
    and the emissions of benzene from the unit shall be determined by the 
    procedures specified in Sec. 63.772(b). This determination must be made 
    available to the Administrator upon request. In addition, the owner or 
    operator is exempt from the requirements of paragraph (d) of this 
    section if the glycol dehydration unit is not located in a county 
    classified as an Urban area as defined in Sec. 63.761.
        (f) Each owner or operator of a major HAP source subject to this 
    subpart is required to apply for a 40 CFR part 70 or part 71 operating 
    permit from the appropriate permitting authority. If the Administrator 
    has approved a State operating permit program under 40 CFR part 70, the 
    permit shall be obtained from the State authority. If the State 
    operating permit program has not been approved, the owner or operator 
    of a source shall apply to the EPA Regional Office pursuant to 40 CFR 
    part 71.
        (g) Unless otherwise required by the State, the owner or operator 
    of an area source subject to the provisions of this subpart is not 
    required to obtain a permit under part 70 of title 40 of the Code of 
    Federal Regulations.
        (h) An owner or operator of an affected source that is:
        (1) A major source or located at a major source; or
        (2) An area source subject to the provisions of this subpart that 
    is in violation of an operating parameter value is in violation of the 
    applicable emission limitation or standard.
    
    
    Sec. 63.765  Glycol dehydration unit process vents standards.
    
        (a) This section applies to each glycol dehydration unit process 
    vent that must be controlled for HAP emissions as specified in 
    Sec. 63.764(c)(1)(i) and (d)(1).
        (b) Except as provided in paragraph (c) of this section, an owner 
    or operator of a glycol dehydration unit process vent shall comply with 
    the requirements specified in paragraphs (b)(1) and (b)(2) of this 
    section.
        (1) For each glycol dehydration unit process vent, the owner or 
    operator shall control air emissions by connecting the process vent to 
    a control device through a closed-vent system designed and operated in 
    accordance with the requirements of Sec. 63.771(c) and (d).
        (2) One or more safety devices that vent directly to the atmosphere 
    may be used on the air emission control equipment complying with 
    paragraph (b)(1) of this section.
        (c) As an alternative to the requirements of paragraph (b) of this 
    section, the owner or operator may comply with one of the requirements 
    specified in paragraphs (c)(1) through (c)(3) of this section.
        (1) The owner or operator shall control air emissions by connecting 
    the process vent to a process natural gas line through a closed-vent 
    system designed and operated in accordance with the requirements of 
    Sec. 63.771(c).
        (2) The owner or operator shall demonstrate, to the Administrator's 
    satisfaction, that the total HAP emissions to the atmosphere from the 
    glycol dehydration unit reboiler vent and GCG separator (flash tank) 
    vent (if present) are reduced by 95 percent through process 
    modifications.
        (3) Control of HAP emissions from a GCG separator (flash tank) vent 
    is not required if the owner or operator demonstrates, to the 
    Administrator's satisfaction, that total HAP emissions to the 
    atmosphere from the glycol dehydration unit reboiler vent and GCG 
    separator (flash tank) vent are reduced by 95 percent.
    
    
    Sec. 63.766  Storage vessel standards.
    
        (a) This section applies to each storage vessel that must be 
    controlled for HAP emissions as specified in Sec. 63.764(c)(2).
        (b) The owner or operator of a storage vessel shall comply with one 
    of the control requirements specified in paragraphs (b)(1) through 
    (b)(3) of this section.
        (1) The owner or operator of a storage vessel using a cover that is 
    connected through a closed-vent system to a control device shall use a 
    cover that is designed and operated in accordance with the requirements 
    of Sec. 63.771(b). The closed-vent system and control device shall be 
    designed and operated in accordance with the requirements of 
    Sec. 63.771(c) and (d).
        (2) The owner or operator of a pressure storage vessel that is 
    designed to operate as a closed system shall operate the storage vessel 
    with no detectable emissions at all times that material is in the 
    storage vessel, except as provided for in paragraph (c) of this 
    section.
        (3) The owner or operator of a storage vessel using a fixed-roof 
    cover with an internal floating roof shall use a fixed-roof cover with 
    an internal floating roof designed and operated in accordance with the 
    requirements of 40 CFR 60.112b(a)(1).
        (c) One or more safety devices that vent directly to the atmosphere 
    may be used on the storage vessel and air emission control equipment 
    complying with paragraphs (b)(1) through (b)(3) of this section.
    
    
    Sec. 63.767  [Reserved]
    
    
    Sec. 63.768  [Reserved]
    
    
    Sec. 63.769  Equipment leak standards.
    
        (a) This section applies to ancillary equipment and compressors (as 
    defined in Sec. 63.761) at natural gas processing plants that contain 
    or contact a fluid (liquid or gas) that has a total VOHAP concentration 
    equal to or greater than 10 percent by weight (determined according to 
    the provisions of 40 CFR 61.245(d)) and that operates equal to or 
    greater than 300 hours per calendar year.
        (b) This section does not apply to ancillary equipment and 
    compressors for which the owner or operator is meeting the requirements 
    specified in subpart H of this part; or is meeting the requirements 
    specified in 40 CFR part 60, subpart KKK.
        (c) For each piece of ancillary equipment and compressors subject 
    to this section located at an existing or new source, the owner or 
    operator shall meet the requirements specified in 40 CFR 61.241 through 
    61.247, except as specified in paragraphs (c)(1) through (c)(8) of this 
    section.
        (1) Each pressure relief device in gas/vapor service shall be 
    monitored quarterly and within 5 days after each pressure release to 
    detect leaks, except under the following conditions.
        (i) If an owner or operator has obtained permission from the 
    Administrator to use an alternative means of emission limitation that
    
    [[Page 6316]]
    
    achieves a reduction in emissions of VOHAP at least equivalent to that 
    achieved by the control required in this subpart.
        (ii) If the pressure relief device is located in a nonfractionating 
    facility that is monitored only by non-facility personnel, it may be 
    monitored after a pressure release the next time the monitoring 
    personnel are on site, instead of within 5 days. Such a pressure relief 
    device shall not be allowed to operate for more than 30 days after a 
    pressure release without monitoring.
        (2) For pressure relief devices, if an instrument reading of 10,000 
    parts per million or greater is measured, a leak is detected.
        (3) For pressure relief devices, when a leak is detected, it shall 
    be repaired as soon as practicable, but no later than 15 calendar days 
    after it is detected, except if a delay in repair of equipment is 
    granted under 40 CFR 61.242-10.
        (4) Sampling connection systems are exempt from the requirements of 
    40 CFR 61.242-5.
        (5) Pumps in VOHAP service, valves in gas/vapor and light liquid 
    service, and pressure relief devices in gas/vapor service that are 
    located at a nonfractionating plant that does not have the design 
    capacity to process 283 standard cubic meters per day (10 million 
    standard cubic feet per day) or more of field gas are exempt from the 
    routine monitoring requirements of 40 CFR 61.242-2(a)(1) and paragraphs 
    61.242-7(a), and paragraphs (c)(1) through (c)(3) of this section.
        (6) Pumps in VOHAP service, valves in gas/vapor and light liquid 
    service, and pressure relief devices in gas/vapor service within a 
    natural gas processing plant that is located on the Alaskan North Slope 
    are exempt from the routine monitoring requirements of 40 CFR 61.242-
    2(a)(1) and 61.242-7(a), and paragraphs (c)(1) through (c)(3) of this 
    section.
        (7) Reciprocating compressors in wet gas service are exempt from 
    the compressor control requirements of 40 CFR 61.242-3.
        (8) Flares used to comply with this subpart shall comply with the 
    requirements of Sec. 63.11(b).
    
    
    Sec. 63.770  [Reserved]
    
    
    Sec. 63.771  Control requirements.
    
        (a) This section applies to each cover, closed-vent system, and 
    control device installed and operated by the owner or operator to 
    control air emissions.
        (b) Cover requirements. (1) The cover and all openings on the cover 
    (e.g., access hatches, sampling ports, and gauge wells) shall be 
    designed to operate with no detectable emissions when all cover 
    openings are secured in a closed, sealed position.
        (2) The owner or operator shall determine that the cover operates 
    with no detectable emissions by testing each opening on the cover in 
    accordance with the procedures specified in Sec. 63.772(c) the first 
    time material is placed into the unit on which the cover is installed. 
    If a leak is detected and cannot be repaired at the time that the leak 
    is detected, the material shall be removed from the unit and the unit 
    shall not be used until the leak is repaired.
        (3) Each cover opening shall be secured in a closed, sealed 
    position (e.g., covered by a gasketed lid or cap) whenever material is 
    in the unit on which the cover is installed except during those times 
    when it is necessary to use an opening as follows:
        (i) To add material to, or remove material from the unit (this 
    includes openings necessary to equalize or balance the internal 
    pressure of the unit following changes in the level of the material in 
    the unit);
        (ii) To inspect or sample the material in the unit;
        (iii) To inspect, maintain, repair, or replace equipment located 
    inside the unit; or
        (iv) To vent liquids, gases, or fumes from the unit through a 
    closed-vent system to a control device designed and operated in 
    accordance with the requirements of paragraphs (c) and (d) of this 
    section.
        (c) Closed-vent system requirements. (1) The closed-vent system 
    shall route all gases, vapors, and fumes emitted from the material in 
    the unit to a control device that meets the requirements specified in 
    paragraph (d) of this section.
        (2) The closed-vent system shall be designed and operated with no 
    detectable emissions.
        (3) If the closed-vent system contains one or more bypass devices 
    that could be used to divert all or a portion of the gases, vapors, or 
    fumes from entering the control device, the owner or operator shall 
    meet the requirements specified in paragraphs (c)(3)(i) and (c)(3)(ii) 
    of this section.
        (i) For each bypass device, except as provided for in paragraph 
    (c)(3)(ii) of this section, the owner or operator shall either:
        (A) Install, calibrate, maintain, and operate a flow indicator at 
    the inlet to the bypass device that indicates at least once every 15 
    minutes whether gas, vapor, or fume flow is present in the bypass 
    device; or
        (B) Secure the valve installed at the inlet to the bypass device in 
    the closed position using a car-seal or a lock-and-key type 
    configuration. The owner or operator shall visually inspect the seal or 
    closure mechanism at least once every month to verify that the valve is 
    maintained in the closed position.
        (ii) Low leg drains, high point bleeds, analyzer vents, open-ended 
    valves or lines, and safety devices are not subject to the requirements 
    of paragraph (c)(3)(i) of this section.
        (d) Control device requirements. (1) The control device used to 
    reduce HAP emissions in accordance with the standards of this subpart 
    shall be one of the control devices specified in paragraphs (d)(1)(i) 
    through (d)(1)(iii) of this section.
        (i) An enclosed combustion device (e.g., thermal vapor incinerator, 
    catalytic vapor incinerator, boiler, or process heater) that is 
    designed and operated in accordance with one of the following 
    performance requirements:
        (A) Reduces the mass content of either TOC or total HAP in the 
    gases vented to the device by 95 percent by weight or greater as 
    determined in accordance with the requirements of Sec. 63.772(e);
        (B) Reduces the concentration of either TOC or total HAP in the 
    exhaust gases at the outlet to the device to a level equal to or less 
    than 20 parts per million by volume on a dry basis corrected to 3 
    percent oxygen as determined in accordance with the requirements of 
    Sec. 63.772(e); or
        (C) Operates at a minimum residence time of 0.5 second at a minimum 
    temperature of 760 deg.C. If a boiler or process heater is used as the 
    control device, then the vent stream shall be introduced into the flame 
    zone of the boiler or process heater.
        (ii) A vapor recovery device (e.g. carbon adsorption system or 
    condenser) or other control device that is designed and operated to 
    reduce the mass content of either TOC or total HAP in the gases vented 
    to the device by 95 percent by weight or greater as determined in 
    accordance with the requirements of Sec. 63.772(e).
        (iii) A flare that is designed and operated in accordance with the 
    requirements of Sec. 63.11(b).
        (2) Each control device used to comply with this subpart shall be 
    operated at all times when material is placed in a unit vented to the 
    control device, except when maintenance or repair of a unit cannot be 
    completed without a shutdown of the control device. An owner or 
    operator may vent more than one unit to a control device used to comply 
    with this subpart.
    
    [[Page 6317]]
    
        (3) The owner or operator shall demonstrate that a control device 
    achieves the performance requirements of paragraph (d)(1) of this 
    section as specified in paragraphs (d)(3)(i) through (d)(3)(iv) of this 
    section.
        (i) An owner or operator shall demonstrate using either a 
    performance test as specified in paragraph (d)(3)(iii) of this section 
    or a design analysis as specified in paragraph (d)(3)(iv) of this 
    section the performance of each control device except for the 
    following:
        (A) A flare;
        (B) A boiler or process heater with a design heat input capacity of 
    44 megawatts or greater;
        (C) A boiler or process heater into which the vent stream is 
    introduced with the primary fuel; or
        (D) A boiler or process heater burning hazardous waste for which 
    the owner or operator has either been issued a final permit under 40 
    CFR part 270 and complies with the requirements of 40 CFR part 266, 
    subpart H; or has certified compliance with the interim status 
    requirements of 40 CFR part 266, subpart H.
        (ii) An owner or operator shall demonstrate the performance of each 
    flare in accordance with the requirements specified in Sec. 63.11(b).
        (iii) For a performance test conducted to meet the requirements of 
    paragraph (d)(3)(i) of this section, the owner or operator shall use 
    the test methods and procedures specified in Sec. 63.772(e).
        (iv) For a design analysis conducted to meet the requirements of 
    paragraph (d)(3)(i) of this section, the design analysis shall meet the 
    requirements specified in paragraphs (d)(3)(iv)(A) and (d)(3)(iv)(B) of 
    this section.
        (A) The design analysis shall include analysis of the vent stream 
    characteristics and control device operating parameters for the 
    applicable control device as specified in paragraphs (d)(3)(iv)(A)(1) 
    through (d)(3)(iv)(A)(6) of this section.
        (1) For a thermal vapor incinerator, the design analysis shall 
    include the vent stream composition, constituent concentrations, and 
    flow rate and shall establish the design minimum and average 
    temperatures in the combustion zone and the combustion zone residence 
    time.
        (2) For a catalytic vapor incinerator, the design analysis shall 
    include the vent stream composition, constituent concentrations, and 
    flow rate and shall establish the design minimum and average 
    temperatures across the catalyst bed inlet and outlet, and the design 
    service life of the catalyst.
        (3) For a boiler or process heater, the design analysis shall 
    include the vent stream composition, constituent concentrations, and 
    flow rate; shall establish the design minimum and average flame zone 
    temperatures and combustion zone residence time; and shall describe the 
    method and location where the vent stream is introduced into the flame 
    zone.
        (4) For a condenser, the design analysis shall include the vent 
    stream composition, constituent concentrations, flow rate, relative 
    humidity, and temperature, and shall establish the design outlet 
    organic compound concentration level, design average temperature of the 
    condenser exhaust vent stream, and the design average temperatures of 
    the coolant fluid at the condenser inlet and outlet.
        (5) For a carbon adsorption system that regenerates the carbon bed 
    directly on-site in a control device such as a fixed-bed adsorber, the 
    design analysis shall include the vent stream composition, constituent 
    concentrations, flow rate, relative humidity, and temperature, and 
    shall establish the design exhaust vent stream organic compound 
    concentration level, adsorption cycle time, number and capacity of 
    carbon beds, type and working capacity of activated carbon used for 
    carbon beds, design total regeneration stream flow over the period of 
    each complete carbon bed regeneration cycle, design carbon bed 
    temperature after regeneration, design carbon bed regeneration time, 
    and design service life of the carbon.
        (6) For a carbon adsorption system that does not regenerate the 
    carbon bed directly on-site in the control device, such as a carbon 
    canister, the design analysis shall include the vent stream 
    composition, constituent concentrations, flow rate, relative humidity, 
    and temperature, and shall establish the design exhaust vent stream 
    organic compound concentration level, capacity of carbon bed, type and 
    working capacity of activated carbon used for carbon bed, and design 
    carbon replacement interval based on the total carbon working capacity 
    of the control device and source operating schedule. In addition, these 
    systems will incorporate dual carbon canisters in case of emission 
    breakthrough occurring in one canister.
        (B) If the owner or operator and the Administrator do not agree on 
    a demonstration of control device performance using a design analysis 
    then the disagreement shall be resolved using the results of a 
    performance test performed by the owner or operator in accordance with 
    the requirements of paragraph (d)(3)(iii) of this section. The 
    Administrator may choose to have an authorized representative observe 
    the performance test.
        (4) The owner or operator shall operate each control device in 
    accordance with the requirements specified in paragraphs (d)(4)(i) 
    through (d)(4)(iii) of this section.
        (i) The control device shall be operating at all times when gases, 
    vapors, and fumes are vented from the unit or units through the closed-
    vent system to the control device.
        (ii) For each control device monitored in accordance with the 
    requirements of Sec. 63.773(d), the owner or operator shall operate the 
    control device such that the actual value of each operating parameter 
    required to be monitored in accordance with the requirements of 
    Sec. 63.773(d)(3) is greater than the minimum operating parameter value 
    or less than the maximum operating parameter value, as appropriate, 
    established for the control device in accordance with the requirements 
    of Sec. 63.773(d)(4).
        (iii) Failure by the owner or operator to operate the control 
    device in accordance with the requirements of paragraph (d)(4)(ii) of 
    this section shall constitute a violation of the applicable emission 
    standard of this subpart.
        (5) For each carbon adsorption system used as a control device to 
    meet the requirements of paragraph (d)(1) of this section, the owner or 
    operator shall manage the carbon as specified in paragraphs (c)(5)(i) 
    and (c)(5)(ii) of this section.
        (i) Following the initial startup of the control device, all carbon 
    in the control device shall be replaced with fresh carbon on a regular, 
    predetermined time interval that is no longer than the carbon service 
    life established for the carbon adsorption system.
        (ii) All carbon removed from the control device shall be managed in 
    one of the following manners:
        (A) Regenerated or reactivated in a thermal treatment unit for 
    which the owner or operator has either been issued a final permit under 
    40 CFR part 270, and designed and operated the unit in accordance with 
    the requirements of 40 CFR part 264, subpart X; or certified compliance 
    with the interim status requirements of 40 CFR part 265, subpart P.
        (B) Burned in a hazardous waste incinerator for which the owner or 
    operator has been issued a final permit under 40 CFR part 270, and 
    designed and operated the unit in accordance with the requirements of 
    40 CFR part 264, subpart O.
        (C) Burned in a boiler or industrial furnace for which the owner or 
    operator has either been issued a final permit under 40 CFR part 270, 
    and designed
    
    [[Page 6318]]
    
    and operated the unit in accordance with the requirements of 40 CFR 
    part 266, subpart H, or certified compliance with the interim status 
    requirements of 40 CFR part 266, subpart H.
    
    
    Sec. 63.772  Test methods and compliance procedures.
    
        (a) Determination of material VOHAP or HAP concentration for 
    applicability to the equipment leak standards under this subpart 
    (Sec. 63.769).
        (1) An owner or operator is not required to determine the VOHAP or 
    HAP concentration for materials placed in units subject to this subpart 
    using air emission controls in accordance with the requirements of 
    Sec. 63.766.
        (2) An owner or operator shall perform a VOHAP or HAP concentration 
    determination at the following times:
        (i) When the material enters the facility in a storage vessel, the 
    owner or operator shall perform a VOHAP or HAP concentration 
    determination for each storage vessel.
        (ii) When the material enters the facility as a continuous, 
    uninterrupted flow of material through a pipeline or other means, the 
    owner or operator shall:
        (A) Perform an initial VOHAP or HAP concentration determination 
    before the first time any portion of the material is placed in a unit 
    subject to this subpart; and
        (B) Perform a new VOHAP or HAP concentration determination whenever 
    changes to the material could potentially cause the VOHAP or HAP 
    concentration of the material to increase to a level that is equal to 
    or greater than the applicable VOHAP or HAP concentration limits 
    specified in Sec. 63.769.
        (3) An owner or operator shall determine the VOHAP or HAP 
    concentration of a material using either direct measurement as 
    specified in paragraph (a)(4) of this section or knowledge of the 
    material as specified in paragraph (a)(5) of this section.
        (4) Direct measurement to determine VOHAP or HAP concentration.
        (i) For the purpose of determining the VOHAP or HAP concentration 
    at the point of entry, samples of the material shall be collected from 
    the storage vessel, pipeline, or other device used to deliver the 
    material to the facility before the material is either:
        (A) Combined with other material; or
        (B) Conveyed, handled, or otherwise managed in such a manner that 
    the surface of the material is open to the atmosphere.
        (ii) For the purpose of determining the VOHAP or HAP concentration 
    at the point of treatment, samples shall be collected at or after the 
    point of treatment but before the point where this material is either:
        (A) Combined with other materials;
        (B) Conveyed, handled, or otherwise managed in such a manner that 
    the surface of the material is open to the atmosphere; or
        (C) Placed in a unit subject to this subpart.
        (iii) The VOHAP or HAP concentration on a mass-weighted average 
    basis shall be determined using the procedure specified in paragraphs 
    (a)(4)(iii)(A) through (a)(4)(iii)(D) of this section when the material 
    flows as a continuous stream for periods less than or equal to 1 hour.
        (A) A sufficient number of samples, but no less than four samples, 
    shall be collected to represent the VOHAP or HAP composition for the 
    entire quantity of material. All of the samples shall be collected 
    within a 1-hour period.
        (B) Each sample shall be collected in accordance with the 
    requirements specified in ``Test Methods for Evaluating Solid Waste, 
    Physical/Chemical Methods,'' EPA Publication No. SW-846.
        (C) Each collected sample shall be prepared and analyzed in 
    accordance with the requirements of Method 305, 40 CFR part 63, 
    appendix A or Method 25D, 40 CFR part 60, appendix A.
        (D) The VOHAP or HAP concentration shall be calculated by using the 
    results for all samples analyzed in accordance with paragraph 
    (a)(4)(iii)(C) of this section and the following equation:
    [GRAPHIC] [TIFF OMITTED] TP06FE98.006
    
    where:
    
    C=VOHAP or HAP concentration of the material on a mass-weighted basis, 
    parts per million by weight.
    I=Individual sample ``I'' of the material. n=Total number of samples of 
    material collected (at least 4) within a 1-hour period.
    Ci=Measured VOHAP or HAP concentration of sample ``I'' as 
    determined in accordance with the requirements of 
    Sec. 63.772(a)(4)(iii)(C), parts per million by weight.
    
        (iv) The VOHAP or HAP concentration on a mass-weighted average 
    basis shall be determined using the procedures specified in paragraphs 
    (a)(4)(iv)(A) through (a)(4)(iv)(E) of this section when the material 
    flows as a continuous stream of material for periods greater than 1-
    hour.
        (A) The averaging period to be used for determining the VOHAP 
    concentration on a mass-weighted average basis shall be designated and 
    recorded. The averaging period shall represent any time interval that 
    the material flows until the time that a new VOHAP or HAP concentration 
    determination must be performed pursuant to the requirements of 
    paragraph (b) of this section. The averaging period shall not exceed 1 
    year.
        (B) A sufficient number of samples, but no less than four samples, 
    shall be collected to represent the complete range of VOHAP or HAP 
    compositions and VOHAP or HAP quantities that occur in the material 
    stream during the entire averaging period due to normal variations in 
    the operating conditions for the source, process, or unit generating 
    the material. Examples of such normal variations are seasonal 
    variations in material quantity, cyclic process operations, or 
    fluctuations in ambient temperature.
        (C) Each sample shall be collected in accordance with the 
    requirements specified in ``Test Methods for Evaluating Solid Waste, 
    Physical/Chemical Methods,'' EPA Publication No. SW-846. Sufficient 
    information shall be recorded to document the material quantity and the 
    operating conditions for the source, process, or unit generating the 
    material represented by each sample collected.
        (D) Each collected sample shall be prepared and analyzed in 
    accordance with the requirements of Method 305, 40 CFR part 63, 
    appendix A or Method 25D, 40 CFR part 60, appendix A.
        (E) The VOHAP or HAP concentration on a mass-weighted average basis 
    shall be calculated by using the results for all samples analyzed in 
    accordance with paragraph (a)(4)(vi)(D) of this section and the 
    following equation:
    [GRAPHIC] [TIFF OMITTED] TP06FE98.007
    
    where:
    
    C=VOHAP or HAP concentration of the material on a mass weighted basis, 
    parts per million by weight.
    I=Individual sample ``I'' of the material. n=Total number of samples of 
    the material collected (at least 4) for the averaging period (not to 
    exceed 1 year).
    Qi=Mass quantity of stream represented by Ci, kg/
    hr.
    QT=Total mass quantity of material during the averaging 
    period, kilograms per hour.
    Ci=Measured VOHAP or HAP concentration of sample ``I'' as 
    determined in accordance with the requirements of
    
    [[Page 6319]]
    
    Sec. 63.772(a)(4)(iv)(D), parts per million by weight.
    
        (5) Knowledge of the material to determine VOHAP or HAP 
    concentration.
        (i) Sufficient information shall be prepared and recorded that 
    documents the basis for the owner or operator's knowledge of the 
    material's VOHAP or HAP concentration. Examples of information that may 
    be used as the basis for knowledge of the material include: VOHAP or 
    HAP material balances for the source, process, or unit generating the 
    material; species-specific VOHAP or HAP chemical test data for the 
    material from previous testing still applicable to the current 
    operations; documentation that material is generated by a process for 
    which no materials containing VOHAP or HAP are used; or previous test 
    data for other locations managing the same type of material.
        (ii) If test data are used as the basis for knowledge of the 
    material, then the owner or operator shall document the test method, 
    sampling protocol, and the means by which sampling variability and 
    analytical variability are accounted for in the determination of the 
    VOHAP or HAP concentration. For example, an owner or operator may use 
    HAP concentration test data that are validated in accordance with 
    Method 301, 40 CFR part 63, appendix A as the basis for knowledge of 
    the material.
        (iii) An owner or operator using species-specific VOHAP or HAP 
    chemical concentration test data as the basis for knowledge of the 
    material that is a produced water stream may adjust the test data 
    results to the corresponding total VOHAP or HAP concentration value 
    that would be reported had the samples been analyzed using Method 305, 
    40 CFR part 63, appendix A. To adjust these data, the measured 
    concentration for each individual VOHAP or HAP chemical species 
    contained in the material is multiplied by the appropriate species-
    specific adjustment factor listed in table 34 in the appendix to 40 CFR 
    part 63, subpart G.
        (b) Determination of glycol dehydration unit flow rate or benzene 
    emissions. The procedures of this paragraph shall be used by an owner 
    or operator to determine flow rate or benzene emissions to meet the 
    criteria for an exemption from control requirements under 
    Sec. 63.764(e).
        (1) The determination of actual flow rate of natural gas to a 
    glycol dehydration unit shall be made using the procedures of either 
    paragraph (b)(1)(i) or (b)(1)(ii) of this section.
        (i) The owner or operator shall install and operate a monitoring 
    instrument that directly measures flow to the glycol dehydration unit 
    with an accuracy of plus or minus 2 percent; or
        (ii) The owner or operator shall document that the actual annual 
    average flow rate of the dehydration unit is less than 85 thousand 
    cubic meters per day (3.0 million standard cubic feet per day).
        (2) The determination of benzene emissions from a glycol 
    dehydration unit shall be made using the procedures of either paragraph 
    (b)(2)(i) or (b)(2)(ii) of this section.
        (i) The owner or operator shall determine annual benzene emissions 
    using the model GRI-GLYCalcTM, Version 3.0 or higher. Inputs 
    to the model shall be representative of actual operating conditions of 
    the glycol dehydration unit; or
        (ii) The owner or operator shall determine an average mass rate of 
    benzene emissions in kilograms per hour through direct measurement by 
    performing three runs of Method 18, 40 CFR Part 60, appendix A (or an 
    equivalent method), and averaging the results of the three runs. Annual 
    emissions in kilograms per year shall be determined by multiplying the 
    mass rate by the number of hours the unit is operated per year. This 
    result shall be multiplied by 1.1023 E-03 to convert to tons 
    per year.
        (c) No detectable emissions test procedure.
        (1) The no detectable emissions test procedure shall be conducted 
    in accordance with Method 21, 40 CFR part 60, appendix A.
        (2) The detection instrument shall meet the performance criteria of 
    Method 21, 40 CFR part 60, appendix A, except that the instrument 
    response factor criteria in section 3.1.2(a) of Method 21 shall be for 
    the average composition of the fluid and not for each individual 
    organic compound in the stream.
        (3) The detection instrument shall be calibrated before use on each 
    day of its use by the procedures specified in Method 21, 40 CFR part 
    60, appendix A.
        (4) Calibration gases shall be as follows:
        (i) Zero air (less than 10 parts per million by volume hydrocarbon 
    in air); and
        (ii) A mixture of methane in air at a concentration less than 
    10,000 parts per million by volume.
        (5) The background level shall be determined according to the 
    procedures in Method 21, 40 CFR part 60, appendix A.
        (6) The arithmetic difference between the maximum organic 
    concentration indicated by the instrument and the background level 
    shall be compared with the value of 500 parts per million by volume. If 
    the difference is less than 500 parts per million by volume, then no 
    HAP emissions are detected.
        (d) [Reserved]
        (e) Control device performance test procedures. This paragraph 
    applies to the performance testing of control devices. Owners or 
    operators may elect to use the alternative procedures in paragraph (f) 
    of this section for performance testing of a condenser used to control 
    emissions from a glycol dehydration unit process vent.
        (1) Method 1 or 1A, 40 CFR part 60, appendix A, as appropriate, 
    shall be used for selection of the sampling sites at the inlet and 
    outlet of the control device.
        (i) To determine compliance with the control device percent 
    reduction requirement specified in Sec. 63.771(d)(1), sampling sites 
    shall be located at the inlet of the control device as specified in 
    paragraphs (e)(1)(i)(A) and (e)(1)(i)(B) of this section, and at the 
    outlet of the control device.
        (A) The control device inlet sampling site shall be located after 
    the final product recovery device.
        (B) If a vent stream is introduced with the combustion air, or as a 
    secondary fuel, into a boiler or process heater with a design capacity 
    less than 44 megawatts, selection of the location of the inlet sampling 
    sites shall ensure the measurement of total HAP or TOC concentration, 
    as applicable, in all vent streams and primary and secondary fuels.
        (ii) To determine compliance with the enclosed combustion device 
    total HAP concentration limit specified in Sec. 63.771(d)(1)(i)(B), the 
    sampling site shall be located at the outlet of the device.
        (2) The gas volumetric flow rate shall be determined using Method 
    2, 2A, 2C, or 2D, 40 CFR part 60, appendix A, as appropriate.
        (3) To determine compliance with the control device percent 
    reduction requirement in Sec. 63.771(d)(1)(i), the owner or operator 
    shall use Method 18, 40 CFR part 60, appendix A; alternatively, any 
    other method or data that has been validated according to the 
    applicable procedures in Method 301, 40 CFR part 63, appendix A may be 
    used. The following procedures shall be used to calculate percent 
    reduction efficiency:
        (i) The minimum sampling time for each run shall be 1 hour in which 
    either an integrated sample or a minimum of four grab samples shall be 
    taken. If grab sampling is used, then the samples shall
    
    [[Page 6320]]
    
    be taken at approximately equal intervals in time, such as 15 minute 
    intervals during the run.
        (ii) The mass rate of either TOC (minus methane and ethane) or 
    total HAP (Ei, Eo) shall be computed.
        (A) The following equations shall be used: where:
        [GRAPHIC] [TIFF OMITTED] TP06FE98.008
        
        [GRAPHIC] [TIFF OMITTED] TP06FE98.009
        
    Where:
    
    Cij, Coj= Concentration of sample component j of 
    the gas stream at the inlet and outlet of the control device, 
    respectively, dry basis, parts per million by volume.
    Ei, Eo = Mass rate of TOC (minus methane and 
    ethane) or total HAP at the inlet and outlet of the control device, 
    respectively, dry basis, kilogram per hour.
    Mij, Moj = Molecular weight of sample component j 
    of the gas stream at the inlet and outlet of the control device, 
    respectively, gram/gram-mole.
    Qi, Qo = Flow rate of gas stream at the inlet and 
    outlet of the control device, respectively, dry standard cubic meter 
    per minute.
    K2 =Constant, 2.494 x 10-6 (parts per million) 
    (gram-mole per standard cubic meter) (kilogram/gram) (minute/hour), 
    where standard temperature (gram-mole per standard cubic meter) is 
    20 deg.C.
        (B) When the TOC mass rate is calculated, all organic compounds 
    (minus methane and ethane) measured by Method 18, 40 CFR part 60, 
    appendix A shall be summed using the equation in paragraph 
    (e)(3)(ii)(A) of this section.
        (C) When the total HAP mass rate is calculated, only HAP chemicals 
    listed in Table 1 of this subpart shall be summed using the equation in 
    paragraph (e)(3)(ii)(A) of this section.
        (iii) The percent reduction in TOC (minus methane and ethane) or 
    total HAP shall be calculated as follows
    [GRAPHIC] [TIFF OMITTED] TP06FE98.010
    
    Where:
    
    Rcd =Control efficiency of control device, percent.
    Ei =Mass rate of TOC (minus methane and ethane) or total HAP 
    at the inlet to the control device as calculated under paragraph 
    (e)(3)(ii) of this section, kilograms TOC per hour or kilograms HAP per 
    hour.
    Eo =Mass rate of TOC (minus methane and ethane) or total HAP 
    at the outlet of the control device, as calculated under paragraph 
    (e)(3)(ii) of this section, kilograms TOC per hour or kilograms HAP per 
    hour.
    
        (iv) If the vent stream entering a boiler or process heater with a 
    design capacity less than 44 megawatts is introduced with the 
    combustion air or as a secondary fuel, the weight-percent reduction of 
    total HAP or TOC (minus methane and ethane) across the device shall be 
    determined by comparing the TOC (minus methane and ethane) or total HAP 
    in all combusted vent streams and primary and secondary fuels with the 
    TOC (minus methane and ethane) or total HAP exiting the device, 
    respectively.
        (4) To determine compliance with the enclosed combustion device 
    total HAP concentration limit specified in Sec. 63.771(d)(1)(i)(B), the 
    owner or operator shall use Method 18, 40 CFR part 60, appendix A to 
    measure either TOC (minus methane and ethane) or total HAP. 
    Alternatively, any other method or data that has been validated 
    according to Method 301, 40 CFR part 63, appendix A, may be used. The 
    following procedures shall be used to calculate parts per million by 
    volume concentration, corrected to 3 percent oxygen:
        (i) The minimum sampling time for each run shall be 1 hour, in 
    which either an integrated sample or a minimum of four grab samples 
    shall be taken. If grab sampling is used, then the samples shall be 
    taken at approximately equal intervals in time, such as 15-minute 
    intervals during the run.
        (ii) The TOC concentration or total HAP concentration shall be 
    calculated according to paragraph (e)(4)(ii)(A) or (e)(4)(ii)(B) of 
    this section.
        (A) The TOC concentration is the sum of the concentrations of the 
    individual components and shall be computed for each run using the 
    following equation:
    [GRAPHIC] [TIFF OMITTED] TP06FE98.011
    
    Where:
    
    CTOC = Concentration of total organic compounds minus 
    methane and ethane, dry basis, parts per million by volume.
    Cji = Concentration of sample component j of sample i, dry 
    basis, parts per million by volume.
    n = Number of components in the sample.
    x = Number of samples in the sample run.
    
        (B) The total HAP concentration shall be computed according to the 
    equation in paragraph (e)(4)(ii)(A) of this section, except that only 
    HAP chemicals listed in Table 1 of this subpart shall be summed.
        (iii) The TOC concentration or total HAP concentration shall be 
    corrected to 3 percent oxygen as follows:
        (A) The emission rate correction factor or excess air, integrated 
    sampling and analysis procedures of Method 3B, 40 CFR part 60, appendix 
    A shall be used to determine the oxygen concentration. The samples 
    shall be taken during the same time that the samples are taken for 
    determining TOC concentration or total HAP concentration.
        (B) The TOC or HAP concentration shall be corrected for percent 
    oxygen by using the following equation:
    [GRAPHIC] [TIFF OMITTED] TP06FE98.012
    
    Where:
    
    Cc = TOC concentration or total HAP concentration corrected to 3 
    percent oxygen, dry basis, parts per million by volume.
    Cm = TOC concentration or total HAP concentration, dry 
    basis, parts per million by volume.
    %O2d = Concentration of oxygen, dry basis, percent by 
    volume.
    
        (f) As an alternative to the procedures in paragraph (e) of this 
    section, an owner or operator may elect to use the procedures 
    documented in the Gas Research Institute Report entitled, ``Atmospheric 
    Rich/Lean Method for Determining Glycol Dehydrator Emissions'' (GRI-95/
    0368.1).
    
    
    Sec. 63.773  Inspection and monitoring requirements.
    
        (a) This section applies to an owner or operator using air emission 
    controls in accordance with the requirements of Secs. 63.765 and 
    63.766.
        (b) Cover inspection and monitoring requirements. (1) Each cover 
    used in accordance with the requirements of Sec. 63.766 shall be 
    visually inspected and monitored for no detectable emissions by the 
    owner or operator using the procedure specified in paragraph (b)(3) of 
    this section, except as provided for in paragraph (b)(2) of this 
    section.
        (2) An owner or operator is exempt from performing the cover 
    inspection and monitoring requirements specified in paragraph (b)(3) of 
    this section for the following units:
        (i) A storage vessel internal floating roof that is inspected and 
    monitored in
    
    [[Page 6321]]
    
    accordance with the requirements of 40 CFR 60.113b(a); or
        (ii) A storage vessel external floating roof that is inspected and 
    monitored in accordance with the requirements of 40 CFR 60.113b(b).
        (iii) If a storage vessel is buried partially or entirely 
    underground, an owner or operator is required to perform the cover 
    inspection and monitoring requirements specified in paragraph (b)(3) of 
    this section only for those portions of the storage vessel cover and 
    those connections to the storage vessel cover or tank body (e.g., fill 
    ports, access hatches, gauge wells, etc.) that extend to or above the 
    ground surface and can be opened to the atmosphere.
        (3) Inspection and monitoring of a cover shall be performed as 
    follows:
        (i) The cover and all cover openings shall be initially visually 
    inspected and monitored for no detectable emissions on or before the 
    date that the unit on which the cover is installed becomes subject to 
    the provisions of this subpart and at other times as requested by the 
    Administrator.
        (ii) At least once every six months following the initial visual 
    inspection and monitoring for no detectable emissions required under 
    paragraph (b)(3)(i) of this section, the owner and operator shall 
    visually inspect and monitor the cover and each cover opening, except 
    for following cover openings:
        (A) A cover opening that has continuously remained in a closed, 
    sealed position for the entire period since the last time the cover 
    opening was visually inspected and monitored for no detectable 
    emissions;
        (B) A cover opening that is designated as unsafe to inspect and 
    monitor in accordance with paragraph (b)(3)(v) of this section;
        (C) A cover opening on a cover installed and placed in operation 
    before February 6, 1998, that is designated as difficult to inspect and 
    monitor in accordance with paragraph (b)(3)(vi) of this section.
        (iii) To visually inspect a cover, the owner or operator shall view 
    the entire cover surface and each cover opening in a closed, sealed 
    position for evidence of any defect that may affect the ability of the 
    cover or cover opening to continue to operate with no detectable 
    emissions. A visible hole, gap, tear, or split in the cover surface or 
    a cover opening is defined as a leak which shall be repaired in 
    accordance with paragraph (b)(3)(vii) of this section.
        (iv) To monitor a cover for no detectable emissions, the owner or 
    operator shall use the following procedure:
        (A) For all cover connections and seals, except for the seals 
    around a rotating shaft that passes through a cover opening, if the 
    monitoring instrument indicates an instrument concentration reading 
    greater than 500 parts per million by volume minus the background 
    level, then a leak is detected. Each detected leak shall be repaired in 
    accordance with paragraph (b)(3)(vii) of this section.
        (B) For the seals around a rotating shaft that passes through a 
    cover opening, if the monitoring instrument indicates an instrument 
    concentration reading greater than 10,000 parts per million by volume 
    then a leak is detected. Each detected leak shall be repaired in 
    accordance with paragraph (b)(3)(vii) of this section.
        (v) An owner or operator may designate a cover as an unsafe to 
    inspect and monitor cover if all of the following conditions are met:
        (A) The owner or operator determines that inspection or monitoring 
    of the cover would expose a worker to dangerous, hazardous, or other 
    unsafe conditions.
        (B) The owner or operator develops and implements a written plan 
    and schedule to inspect the cover using the procedure specified in 
    paragraph (b)(3)(iii) of this section and monitor the cover using the 
    procedure specified in paragraph (b)(3)(iv) of this section as 
    frequently as practicable during those times when a worker can safely 
    access the cover.
        (vi) An owner or operator may designate a cover installed and 
    placed in operation before February 6, 1998 as a difficult to inspect 
    and monitor cover if all of the following conditions are met:
        (A) The owner or operator determines that inspection or monitoring 
    the cover requires elevating a worker to a height greater than 2 meters 
    (approximately 7 feet) above a support surface; and
        (B) The owner and operator develops and implements a written plan 
    and schedule to inspect the cover using the procedure specified in 
    paragraph (b)(3)(iii) of this section, and monitors the cover using the 
    procedure specified in paragraph (b)(3)(iv) of this section at least 
    once per calendar year.
        (vii) When a leak is detected by either of the methods specified in 
    paragraph (b)(3)(iii) or (b)(3)(iv) of this section, the owner or 
    operator shall make a first attempt at repairing the leak no later than 
    five calendar days after the leak is detected. Repair of the leak shall 
    be completed as soon as practicable, but no later than 15 calendar days 
    after the leak is detected. If repair of the leak cannot be completed 
    within the 15-day period, then the owner or operator shall not add 
    material to the unit on which the cover is installed until the repair 
    of the leak is completed.
        (c) Closed-vent system inspection and monitoring requirements. (1) 
    The owner or operator shall visually inspect and monitor each closed-
    vent system for no detectable emissions at the following times:
        (i) On or before the date that the unit connected to the closed-
    vent system becomes subject to the provisions of this subpart;
        (ii) At least once per year after the date that the closed-vent 
    system is inspected in accordance with the requirements of paragraph 
    (c)(1)(i) of this section; and
        (iii) At other times as requested by the Administrator.
        (2) To visually inspect a closed-vent system, the owner or operator 
    shall view the entire length of ductwork, piping and connections to 
    covers and control devices for evidence of visible defects (such as 
    holes in ductwork or piping and loose connections) that may affect the 
    ability of the system to operate with no detectable emissions. A 
    visible hole, gap, tear, or split in the closed-vent system is defined 
    as a leak which shall be repaired in accordance with paragraph (c)(4) 
    of this section.
        (3) To monitor a closed-vent system for no detectable emissions, 
    the owner or operator shall use Method 21, 40 CFR part 60, appendix A 
    to test each closed-vent system joint, seam, or other connection. For 
    the annual leak detection monitoring after the initial leak detection 
    monitoring, the owner or operator is not required to monitor those 
    closed-vent system components which continuously operate at a pressure 
    below atmospheric pressure or those closed-vent system joints, seams, 
    or other connections that are permanently or semi-permanently sealed 
    (e.g., a welded joint between two sections of metal pipe or a bolted 
    and gasketed pipe flange).
        (4) When a leak is detected by either of the methods specified in 
    paragraph (c)(2) or (c)(3) of this section, the owner or operator shall 
    make a first attempt at repairing the leak no later than five calendar 
    days after the leak is detected. Repair of the leak shall be completed 
    as soon as practicable, but no later than 15 calendar days after the 
    leak is detected.
        (d) Control device monitoring requirements. (1) For each control 
    device, except as provided for in paragraph (d)(2) of this section, the 
    owner or operator shall install and operate a continuous monitoring 
    system in accordance with the requirements of paragraphs (d)(3) through 
    (d)(5) of this
    
    [[Page 6322]]
    
    section. The continuous monitoring system shall be designed and 
    operated so that a determination can be made on whether the control 
    device is continuously achieving the applicable performance 
    requirements of Sec. 63.771.
        (2) An owner or operator is exempt from the monitoring requirements 
    specified in paragraphs (d)(3) through (d)(5) of this section for the 
    following types of control devices:
        (i) A boiler or process heater in which all vent streams are 
    introduced with primary fuel; or
        (ii) A boiler or process heater with a design heat input capacity 
    equal to or greater than 44 megawatts.
        (3) The owner or operator shall install, calibrate, operate, and 
    maintain a device equipped with a continuous recorder to measure the 
    values of operating parameters appropriate for the control device as 
    specified in either paragraph (d)(3)(i), (d)(3)(ii), or (d)(3)(iii) of 
    this section. The monitoring equipment shall be installed, calibrated, 
    and maintained in accordance with the equipment manufacturer's 
    specifications or other written procedures that provide adequate 
    assurance that the equipment would reasonably be expected to monitor 
    accurately. The continuous recorder shall be a data recording device 
    that either records an instantaneous data value at least once every 15 
    minutes or records 15-minute or more frequent block average values. The 
    owner or operator shall use any of the following continuous monitoring 
    systems:
        (i) A continuous monitoring system that measures the following 
    operating parameters as applicable:
        (A) For a thermal vapor incinerator, a temperature monitoring 
    device equipped with a continuous recorder. The monitoring device shall 
    have an accuracy of 1 percent of the temperature being 
    monitored in  deg.C, or 0.5 deg.C, whichever value is 
    greater. The temperature sensor shall be installed at a location in the 
    combustion chamber downstream of the combustion zone.
        (B) For a catalytic vapor incinerator, a temperature monitoring 
    device equipped with a continuous recorder. The device shall be capable 
    of monitoring temperature at two locations and have an accuracy of 
    1 percent of the temperature being monitored in  deg.C, or 
    0.5 deg.C, whichever value is greater. One temperature 
    sensor shall be installed in the vent stream at the nearest feasible 
    point to the catalyst bed inlet and a second temperature sensor shall 
    be installed in the vent stream at the nearest feasible point to the 
    catalyst bed outlet.
        (C) For a flare, a heat sensing monitoring device equipped with a 
    continuous recorder that indicates the continuous ignition of the pilot 
    flame.
        (D) For a boiler or process heater with a design heat input 
    capacity of less than 44 megawatts, a temperature monitoring device 
    equipped with a continuous recorder. The temperature monitoring device 
    shall have an accuracy of 1 percent of the temperature 
    being monitored in  deg.C, or 0.5 deg.C, whichever value is 
    greater. The temperature sensor shall be installed at a location in the 
    combustion chamber downstream of the combustion zone.
        (E) For a condenser, a temperature monitoring device equipped with 
    a continuous recorder. The temperature monitoring device shall have an 
    accuracy of 1 percent of the temperature being monitored in 
     deg.C, or 0.5 deg.C, whichever value is greater. The 
    temperature sensor shall be installed at a location in the exhaust vent 
    stream from the condenser.
        (F) For a regenerative-type carbon adsorption system, an 
    integrating regeneration stream flow monitoring device equipped with a 
    continuous recorder and a carbon bed temperature monitoring device 
    equipped with a continuous recorder. The integrating regeneration 
    stream flow monitoring device shall have an accuracy of 10 
    percent and measure the total regeneration stream mass flow during the 
    carbon bed regeneration cycle. The temperature monitoring device shall 
    have an accuracy of 1 percent of the temperature being 
    monitored in  deg.C, or 0.5 deg.C, whichever value is 
    greater and measure the carbon bed temperature after regeneration and 
    within 15 minutes of completing the cooling cycle and the duration of 
    the carbon bed steaming cycle.
        (ii) A continuous monitoring system that measures the concentration 
    level of organic compounds in the exhaust vent stream from the control 
    device using an organic monitoring device equipped with a continuous 
    recorder.
        (iii) A continuous monitoring system that measures alternative 
    operating parameters other than those specified in paragraph (d)(3)(i) 
    or (d)(3)(ii) of this section upon approval of the Administrator as 
    specified in Sec. 63.8(f)(1) through (f)(5).
        (4) For each operating parameter monitored in accordance with the 
    requirements of paragraph (d)(3) of this section, the owner or operator 
    shall establish a minimum operating parameter value or a maximum 
    operating parameter value, as appropriate for the control device, to 
    define the conditions at which the control device must be operated to 
    continuously achieve the applicable performance requirements of 
    Sec. 63.771. Each minimum or maximum operating parameter value shall be 
    established as follows:
        (i) If the owner or operator conducts performance tests in 
    accordance with the requirements of Sec. 63.771 to demonstrate that the 
    control device achieves the applicable performance requirements 
    specified in Sec. 63.771, then the minimum operating parameter value or 
    the maximum operating parameter value shall be established based on 
    values measured during the performance test and supplemented, as 
    necessary, by control device design analysis and manufacturer 
    recommendations.
        (ii) If the owner or operator uses control device design analysis 
    in accordance with the requirements of Sec. 63.771(d)(3)(iv) to 
    demonstrate that the control device achieves the applicable performance 
    requirements specified in Sec. 63.771(d)(1), then the minimum operating 
    parameter value or the maximum operating parameter value shall be 
    established based on the control device design analysis and the control 
    device manufacturer's recommendations.
        (5) The owner or operator shall regularly inspect the data recorded 
    by the continuous monitoring system to determine whether the control 
    device is operating in accordance with the applicable requirements of 
    Sec. 63.771(d).
    
    
    Sec. 63.774  Recordkeeping requirements.
    
        (a) The recordkeeping provisions of 40 CFR part 63, subpart A that 
    apply and those that do not apply to owners and operators of sources 
    subject to this subpart are listed in Table 2 of this subpart.
        (b) Except as specified in paragraphs (c) and (d) of this section, 
    each owner or operator of a source subject to this subpart shall 
    maintain the records specified in paragraphs (b)(1) and (b)(2) of this 
    section in accordance with the requirements of Sec. 63.10(b)(1) 
    (General Provisions):
        (1) Records specified in Sec. 63.10(b)(2);
        (2) Records specified in Sec. 63.10(c) for each monitoring system 
    operated by the owner or operator in accordance with the requirements 
    of Sec. 63.773(d).
        (c) The owner or operator of an area source subject to the control 
    requirements for triethylene glycol dehydration unit process vents in 
    Sec. 63.765 is exempt from the requirements of Sec. 63.6(e)(3) and 
    Sec. 63.10(b)(2)(iv) and (b)(2)(v).
        (d) An owner or operator that is exempt from control requirements
    
    [[Page 6323]]
    
    under Sec. 63.764(e) shall maintain a record of the design capacity (in 
    terms of natural gas flow rate to the unit per day) of each glycol 
    dehydration unit that is not controlled according to the requirements 
    of Sec. 63.764(c)(1)(i) and (d)(1).
    
    
    Sec. 63.775  Reporting requirements.
    
        (a) The reporting provisions of 40 CFR part 63, subpart A that 
    apply and those that do not apply to owners and operators of sources 
    subject to these subparts are listed in Table 2 of this subpart.
        (b) Each owner or operator of a major source subject to this 
    subpart shall submit the following reports to the Administrator:
        (1) An Initial Notification described in Sec. 63.9(a) through (d), 
    except that the notification required by Sec. 63.9(b)(2) shall be 
    submitted not later than one year after the effective date of this 
    standard.
        (2) A Notification of Performance Tests specified in Secs. 63.7 and 
    63.9(e) and (g).
        (3) A Notification of Compliance Status specified in Sec. 63.9(h).
        (4) Performance test reports specified in Sec. 63.10(d)(2) and 
    performance evaluation reports specified in Sec. 63.10(e)(2). Separate 
    performance evaluation reports as described in Sec. 63.10(e)(2) are not 
    required if the information is included in the report specified in 
    paragraph (b)(6) of this section.
        (5) Startup, shutdown, and malfunction reports specified in 
    Sec. 63.10(d)(5) shall be submitted as required. Separate startup, 
    shutdown, or malfunction reports as described in Sec. 63.10(d)(5) are 
    not required if the information is included in the report specified in 
    paragraph (b)(6) of this section.
        (6) The excess emission and CMS performance report and summary 
    report specified in Sec. 63.10(e)(3) shall be submitted on a semi-
    annual basis (i.e., once every 6-month period). The summary report 
    shall be entitled ``Summary Report--Gaseous Excess Emissions and 
    Continuous Monitoring System Performance.''
        (7) The owner or operator shall meet the requirements specified in 
    paragraph (b) of this section for any emission point or material that 
    becomes subject to the standards in this subpart due to an increase in 
    flow, concentration, or other parameters equal to or greater than the 
    limits specified in this subpart.
        (8) For each control device other than a flare used to meet the 
    requirements of this subpart, the owner or operator shall submit the 
    following information for each operating parameter required to be 
    monitored in accordance with the requirements of Sec. 63.773(d):
        (i) The minimum operating parameter value or maximum operating 
    parameter value, as appropriate for the control device, established by 
    the owner or operator to define the conditions at which the control 
    device must be operated to continuously achieve the applicable 
    performance requirements of Sec. 63.771(d)(1).
        (ii) An explanation of the rationale for why the owner or operator 
    selected each of the operating parameter values established in 
    paragraph (d)(1) of this section. This explanation shall include any 
    data and calculations used to develop the value and a description of 
    why the chosen value indicates that the control device is operating in 
    accordance with the applicable requirements of Sec. 63.771(d)(1).
        (9) Each owner or operator of a major source subject to this 
    subpart that is not subject to the control requirements for glycol 
    dehydration unit process vents in Sec. 63.765 is exempt from all 
    reporting requirements for major sources in this subpart.
        (c) Each owner or operator of an area source subject to the control 
    requirements of this subpart for triethylene glycol dehydration unit 
    process vents in Sec. 63.765 shall submit the following reports to the 
    Administrator:
        (1) An Initial Notification described in Sec. 63.9 (a) through (d), 
    except that the notification required by Sec. 63.9(b)(2) shall be 
    submitted not later than one year after the effective date of this 
    standard.
        (2) A Notification of Performance Tests specified in Secs. 63.7 and 
    63.9 (e) and (g).
        (3) A Notification of Compliance Status specified in Sec. 63.9(h).
        (4) Performance test reports specified in Sec. 63.10(d)(2) and 
    performance evaluation reports specified in Sec. 63.10(e)(2). Separate 
    performance evaluation reports as described in Sec. 63.10(e)(2) are not 
    required if the information is included in the report specified in 
    paragraph (c)(6) of this section.
        (5) A report describing any malfunctions that are not corrected 
    within two calendar days of the malfunction, to be submitted within 
    seven calendar days of the uncorrected malfunction.
        (6) A summary report as specified in Sec. 63.10(e)(3) shall be 
    submitted on an annual basis (i.e., once every 12-month period). The 
    summary report shall be entitled ``Summary Report--Gaseous Excess 
    Emissions and Continuous Monitoring System Performance.''
        (7) The owner or operator shall meet the requirements specified in 
    this paragraph for any emission point or material that becomes subject 
    to the standards in this subpart due to an increase in flow or 
    concentration mass parameters equal to or greater than the limits 
    specified in Sec. 63.764 (b), (c), or (d).
        (8) For each control device other than a flare used to meet the 
    requirements of this subpart, the owner or operator shall submit the 
    following information for each operating parameter required to be 
    monitored in accordance with the requirements of Sec. 63.773(d):
        (i) The minimum operating parameter value or maximum operating 
    parameter value, as appropriate for the control device, established by 
    the owner or operator to define the conditions at which the control 
    device must be operated to continuously achieve the applicable 
    performance requirements of Sec. 63.771(d)(1).
        (ii) An explanation of the rationale for why the owner or operator 
    selected each of the operating parameter values established in 
    paragraph (d)(1) of this section. This explanation shall include any 
    data and calculations used to develop the value and a description of 
    why this value indicates that the control device is operating in 
    accordance with the applicable requirements of Sec. 63.771(d)(1).
        (9) Each owner or operator of an area source subject to this 
    subpart that is not subject to the control requirements for glycol 
    dehydration unit process vents in Sec. 63.765 is exempt from all 
    reporting requirements in this subpart.
    
    
    Sec. 63.776  Delegation of authority [Reserved]
    
    
    Sec. 63.777  Alternative means of emission limitation.
    
        (a) If, in the judgment of the Administrator, an alternative means 
    of emission limitation will achieve a reduction in HAP emissions at 
    least equivalent to the reduction in HAP emissions from that source 
    achieved under the applicable requirements in Secs. 63.764 through 
    63.771, the Administrator will publish in the Federal Register a notice 
    permitting the use of the alternative means for purposes of compliance 
    with that requirement. The notice may condition the permission on 
    requirements related to the operation and maintenance of the 
    alternative means.
        (b) Any notice under paragraph (a) of this section shall be 
    published only after public notice and an opportunity for a hearing.
    
    [[Page 6324]]
    
        (c) Any person seeking permission to use an alternative means of 
    compliance under this section shall collect, verify, and submit to the 
    Administrator information demonstrating that the alternative achieves 
    equivalent emission reductions.
    
    
    Sec. 63.778  [Reserved]
    
    
    Sec. 63.779  [Reserved]
    
     Table 1 to Subpart HH.--List of Hazardous Air Pollutants for Subpart HH
    ------------------------------------------------------------------------
                CAS Number a                         Chemical name          
    ------------------------------------------------------------------------
    75070...............................  Acetaldehyde.                     
    71432...............................  Benzene (includes benzene in      
                                           gasoline).                       
    75150...............................  Carbon disulfide.                 
    463581..............................  Carbonyl sulfide.                 
    100414..............................  Ethyl benzene.                    
    107211..............................  Ethylene glycol.                  
    50000...............................  Formaldehyde.                     
    110543..............................  n-Hexane.                         
    91203...............................  Naphthalene.                      
    108883..............................  Toluene.                          
    540841..............................  2,2,4-Trimethylpentane.           
    1330207.............................  Xylenes (isomers and mixture).    
    95476...............................  o-Xylene.                         
    108383..............................  m-Xylene.                         
    106423..............................  p-Xylene.                         
    ------------------------------------------------------------------------
    a CAS numbers refer to the Chemical Abstracts Services registry number  
      assigned to specific compounds, isomers, or mixtures of compounds.    
    
    
                Table 2 to Subpart HH.--Applicability of 40 CFR Part 63 General Provisions to Subpart HH            
    ----------------------------------------------------------------------------------------------------------------
          General provisions reference          Applicable to subpart HH                    Comment                 
    ----------------------------------------------------------------------------------------------------------------
    Sec.  63.1(a)(1)........................  Yes........................                                           
    Sec.  63.1(a)(2)........................  Yes........................                                           
    Sec.  63.1(a)(3)........................  Yes........................                                           
    Sec.  63.1(a)(4)........................  Yes........................                                           
    Sec.  63.1(a)(5)........................  No.........................  Section reserved.                        
    Sec.  63.1(a)(6)-(a)(8).................  Yes........................                                           
    Sec.  63.1(a)(9)........................  No.........................  Section reserved.                        
    Sec.  63.1(a)(10).......................  Yes........................                                           
    Sec.  63.1(a)(11).......................  Yes........................                                           
    Sec.  63.1(a)(12)-(a)(14)...............  Yes........................                                           
    Sec.  63.1(b)(1)........................  No.........................  Subpart HH specifies applicability.      
    Sec.  63.1(b)(2)........................  Yes........................                                           
    Sec.  63.1(b)(3)........................  No.........................                                           
    Sec.  63.1(c)(1)........................  No.........................  Subpart HH specifies applicability.      
    Sec.  63.1(c)(2)........................  Yes........................  Unless required by the State, area       
                                                                            sources subject to subpart HH are       
                                                                            exempted from permitting requirements.  
    Sec.  63.1(c)(3)........................  No.........................  Section reserved.                        
    Sec.  63.1(c)(4)........................  Yes........................                                           
    Sec.  63.1(c)(5)........................  Yes........................                                           
    Sec.  63.1(d)...........................  No.........................  Section reserved.                        
    Sec.  63.1(e)...........................  Yes........................                                           
    Sec.  63.2..............................  Yes........................  Except definition of major source is     
                                                                            unique for this source category and     
                                                                            there are additional definitions in     
                                                                            subpart HH.                             
    Sec.  63.3(a)-(c).......................  Yes........................                                           
    Sec.  63.4(a)(1)-(a)(3).................  Yes........................                                           
    Sec.  63.4(a)(4)........................  No.........................  Section reserved.                        
    Sec.  63.4(a)(5)........................  Yes........................                                           
    Sec.  63.4(b)...........................  Yes........................                                           
    Sec.  63.4(c)...........................  Yes........................                                           
    Sec.  63.5(a)(1)........................  Yes........................                                           
    Sec.  63.5(a)(2)........................  No.........................  Preconstruction review required only for 
                                                                            major sources that commence construction
                                                                            after promulgation of the standard.     
    Sec.  63.5(b)(1)........................  Yes........................                                           
    Sec.  63.5(b)(2)........................  No.........................  Section reserved.                        
    Sec.  63.5(b)(3)........................  Yes........................                                           
    Sec.  63.5(b)(4)........................  Yes........................                                           
    Sec.  63.5(b)(5)........................  Yes........................                                           
    Sec.  63.5(b)(6)........................  Yes........................                                           
    Sec.  63.5(c)...........................  No.........................  Section reserved.                        
    Sec.  63.5(d)(1)........................  Yes........................                                           
    Sec.  63.5(d)(2)........................  Yes........................                                           
    Sec.  63.5(d)(3)........................  Yes........................                                           
    Sec.  63.5(d)(4)........................  Yes........................                                           
    Sec.  63.5(e)...........................  Yes........................                                           
    Sec.  63.5(f)(1)........................  Yes........................                                           
    Sec.  63.5(f)(2)........................  Yes........................                                           
    Sec.  63.6(a)...........................  Yes........................                                           
    Sec.  63.6(b)(1)........................  Yes........................                                           
    Sec.  63.6(b)(2)........................  Yes........................                                           
    Sec.  63.6(b)(3)........................  Yes........................                                           
    Sec.  63.6(b)(4)........................  Yes........................                                           
    
    [[Page 6325]]
    
                                                                                                                    
    Sec.  63.6(b)(5)........................  Yes........................                                           
    Sec.  63.6(b)(6)........................  No.........................  Section reserved.                        
    Sec.  63.6(b)(7)........................  Yes........................                                           
    Sec.  63.6(c)(1)........................  Yes........................                                           
    Sec.  63.6(c)(2)........................  Yes........................                                           
    Sec.  63.6(c)(3)-(c)(4).................  No.........................  Sections reserved.                       
    Sec.  63.6(c)(5)........................  Yes........................                                           
    Sec.  63.6(d)...........................  No.........................  Section reserved.                        
    Sec.  63.6(e)...........................  Yes/No.....................  Area sources exempt from paragraph       
                                                                            (e)(3).                                 
    Sec.  63.6(f)(1)........................  Yes........................                                           
    Sec.  63.6(f)(2)........................  Yes........................                                           
    Sec.  63.6(f)(3)........................  Yes........................                                           
    Sec.  63.6(g)...........................  Yes........................                                           
    Sec.  63.6(h)...........................  No.........................  Subpart HH does not require continuous   
                                                                            emissions monitoring systems.           
    Sec.  63.6(i)(1)-(i)(14)................  Yes........................                                           
    Sec.  63.6(i)(15).......................  No.........................  Section reserved.                        
    Sec.  63.6(i)(16).......................  Yes........................                                           
    Sec.  63.6(j)...........................  Yes........................                                           
    Sec.  63.7(a)(1)........................  Yes........................                                           
    Sec.  63.7(a)(2)........................  Yes........................                                           
    Sec.  63.7(a)(3)........................  Yes........................                                           
    Sec.  63.7(b)...........................  Yes........................                                           
    Sec.  63.7(c)...........................  Yes........................                                           
    Sec.  63.7(d)...........................  Yes........................                                           
    Sec.  63.7(e)(1)........................  Yes........................                                           
    Sec.  63.7(e)(2)........................  Yes........................                                           
    Sec.  63.7(e)(3)........................  Yes........................                                           
    Sec.  63.7(e)(4)........................  Yes........................                                           
    Sec.  63.7(f)...........................  Yes........................                                           
    Sec.  63.7(g)...........................  Yes........................                                           
    Sec.  63.7(h)...........................  Yes........................                                           
    Sec.  63.8(a)(1)........................  Yes........................                                           
    Sec.  63.8(a)(2)........................  Yes........................                                           
    Sec.  63.8(a)(3)........................  No.........................  Section reserved.                        
    Sec.  63.8(a)(4)........................  Yes........................                                           
    Sec.  63.8(b)(1)........................  Yes........................                                           
    Sec.  63.8(b)(2)........................  Yes........................                                           
    Sec.  63.8(b)(3)........................  Yes........................                                           
    Sec.  63.8(c)(1)........................  Yes........................                                           
    Sec.  63.8(c)(2)........................  Yes........................                                           
    Sec.  63.8(c)(3)........................  Yes........................                                           
    Sec.  63.8(c)(4)........................  No.........................                                           
    Sec.  63.8(c)(5)-(c)(8).................  Yes........................                                           
    Sec.  63.8(d)...........................  Yes........................                                           
    Sec.  63.8(e)...........................  Yes........................                                           
    Sec.  63.8(f)(1)-(f)(5).................  Yes........................                                           
    Sec.  63.8(f)(6)........................  No.........................  Subpart HH does not require continuous   
                                                                            emissions monitoring.                   
    Sec.  63.8(g)...........................  No.........................  Subpart HH specifies continuous          
                                                                            monitoring system data reduction        
                                                                            requirements.                           
    Sec.  63.9(a)...........................  Yes........................                                           
    Sec.  63.9(b)(1)........................  Yes........................                                           
    Sec.  63.9(b)(2)........................  Yes........................  Sources are given one year (rather than  
                                                                            120 days) to submit this notification.  
    Sec.  63.9(b)(3)........................  Yes........................                                           
    Sec.  63.9(b)(4)........................  Yes........................                                           
    Sec.  63.9(b)(5)........................  Yes........................                                           
    Sec.  63.9(c)...........................  Yes........................                                           
    Sec.  63.9(d)...........................  Yes........................                                           
    Sec.  63.9(e)...........................  Yes........................                                           
    Sec.  63.9(f)...........................  No.........................                                           
    Sec.  63.9(g)...........................  Yes........................                                           
    Sec.  63.9(h)(1)-(h)(3).................  Yes........................                                           
    Sec.  63.9(h)(4)........................  No.........................  Section reserved.                        
    Sec.  63.9(h)(5)-(h)(6).................  Yes........................                                           
    Sec.  63.9(i)...........................  Yes........................                                           
    Sec.  63.9(j)...........................  Yes........................                                           
    Sec.  63.10(a)..........................  Yes........................                                           
    Sec.  63.10(b)(1).......................  Yes........................                                           
    Sec.  63.10(b)(2).......................  Yes/No.....................  Area sources are exempt from paragraphs  
                                                                            (b)(2)(iv) and (v).                     
    Sec.  63.10(b)(3).......................  No.........................                                           
    Sec.  63.10(c)(1).......................  Yes........................                                           
    Sec.  63.10(c)(2)-(c)(4)................  No.........................  Sections reserved.                       
    Sec.  63.10(c)(5)-(c)(8)................  Yes........................                                           
    Sec.  63.10(c)(9).......................  No.........................  Section reserved.                        
    
    [[Page 6326]]
    
                                                                                                                    
    Sec.  63.10(c)(10)-(c)(15)..............  Yes........................                                           
    Sec.  63.10(d)(1).......................  Yes........................                                           
    Sec.  63.10(d)(2).......................  Yes........................                                           
    Sec.  63.10(d)(3).......................  Yes........................                                           
    Sec.  63.10(d)(4).......................  Yes........................                                           
    Sec.  63.10(d)(5).......................  Yes/No.....................  Subpart HH requires major sources to     
                                                                            submit a startup, shutdown and          
                                                                            malfunction report semi-annually; area  
                                                                            sources are exempt.                     
    Sec.  63.10(e)..........................  Yes/No.....................  Subpart HH requires major sources to     
                                                                            submit continuous monitoring system     
                                                                            performance reports semi-annually; area 
                                                                            sources are required to send these      
                                                                            reports annually.                       
    Sec.  63.10(f)..........................  Yes........................                                           
    Sec.  63.11(a)-(b)......................  Yes........................                                           
    Sec.  63.12(a)-(c)......................  Yes........................                                           
    Sec.  63.13(a)-(c)......................  Yes........................                                           
    Sec.  63.14(a)-(b)......................  Yes........................                                           
    Sec.  63.15(a)-(b)......................  Yes........................                                           
    ----------------------------------------------------------------------------------------------------------------
    
        B. Part 63 is amended by adding subpart HHH to read as follows:
    Subpart HHH--National Emission Standards for Hazardous Air Pollutants 
    from Natural Gas Transmission and Storage Facilities
    Sec.
    63.1270  Applicability and designation of affected source.
    63.1271  Definitions.
    63.1272  [Reserved]
    63.1273  [Reserved]
    63.1274  General standards.
    63.1275  Glycol dehydration unit process vent standards.
    63.1276  [Reserved]
    63.1277  [Reserved]
    63.1278  [Reserved]
    63.1279  [Reserved]
    63.1280  [Reserved]
    63.1281  Control equipment requirements.
    63.1282  Test methods and compliance procedures.
    63.1283  Inspection and monitoring requirements.
    63.1284  Recordkeeping requirements.
    63.1285  Reporting requirements.
    63.1286  Delegation of authority. [Reserved]
    63.1287  Alternative means of emission limitation.
    63.1288  [Reserved]
    63.1289  [Reserved]
    Table 1 to Subpart HHH--List of Hazardous Air Pollutants (HAP) for 
    Subpart HHH
    Table 2 to Subpart HHH--Applicability of 40 CFR Part 63 General 
    Provisions to Subpart HHH
    
    Subpart HHH--National Emission Standards for Hazardous Air 
    Pollutants From Natural Gas Transmission and Storage Facilities
    
    
    Sec. 63.1270  Applicability and designation of affected source.
    
        (a) This subpart applies to owners or operators of 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 major sources of hazardous air pollutant 
    (HAP) emissions.
        (b) The affected source is each glycol dehydration unit.
        (c) The owner or operator of a facility that does not contain an 
    affected source, as specified in paragraph (b) of this section, is not 
    subject to the requirements of this subpart.
        (d) The owner or operator of each affected source shall achieve 
    compliance with the provisions of this subpart by the following dates:
        (1) The owner or operator of an affected source the construction or 
    reconstruction of which commenced before February 6, 1998, shall 
    achieve compliance with the provisions of the subpart as expeditiously 
    as practical after [the date of publication of the final rule], but no 
    later than three years after [the date of publication of the final 
    rule] except as provided for in Sec. 63.6(i).
        (2) The owner or operator of an affected source the construction or 
    reconstruction of which commences on or after February 6, 1998, shall 
    achieve compliance with the provisions of this subpart immediately upon 
    startup or [the date of publication of the final rule], whichever date 
    is later.
        (e) An owner or operator of an affected source that is a major 
    source or located at a major source and is subject to the provisions of 
    this subpart is also subject to 40 CFR part 70 permitting requirements.
    
    
    Sec. 63.1271  Definitions.
    
        All terms used in this subpart shall have the meaning given to them 
    in the Clean Air Act, subpart A of this part (General Provisions), and 
    in this section. If the same term is defined in subpart A and in this 
    section, it shall have the meaning given in this section for purposes 
    of this subpart.
        Associated equipment, as used in this subpart and as referred to in 
    section 112(n)(4) of the Act, means equipment associated with an oil or 
    natural gas exploration or production well, and includes all equipment 
    from the wellbore to the point of custody transfer, except glycol 
    dehydration units and storage vessels with the potential for flash 
    emissions.
        Average concentration, as used in this subpart, means the flow-
    weighted annual average concentration, as determined according to the 
    procedures specified in Sec. 63.1282(a).
        Boiler means any enclosed combustion device that extracts useful 
    energy in the form of steam and is not an incinerator.
        Closed-vent system means a system that is not open to the 
    atmosphere and is composed of piping, ductwork, connections, and, if 
    necessary, flow inducing devices that transport gas or vapor from an 
    emission point to a control device or back into the process. If gas or 
    vapor from regulated equipment is routed to a process (e.g., to a fuel 
    gas system), the process shall not be considered a closed vent system 
    and is not subject to closed vent system standards.
        Combustion device means an individual unit of equipment, such as a 
    flare, incinerator, process heater, or boiler, used for the combustion 
    of volatile organic compound vapors.
        Compressor station means any permanent combination of equipment 
    that supplies energy to move natural gas at increased pressure from 
    fields, in transmission pipelines, or into storage.
        Continuous recorder means a data recording device that either 
    records an instantaneous data value at least once every 15 minutes or 
    records 15-minute or more frequent block average values.
    
    [[Page 6327]]
    
        Control device means any equipment used for recovering or oxidizing 
    hazardous air pollutant (HAP) and volatile organic compound (VOC) 
    vapors. Such equipment includes, but is not limited to, absorbers, 
    carbon adsorbers, condensers, incinerators, flares, boilers, and 
    process heaters. For the purposes of this subpart, if gas or vapor from 
    regulated equipment is used, reused, returned back to the process, or 
    sold, then the recovery system used, including piping, connections, and 
    flow inducing devices, is not considered to be control devices.
        Facility means any grouping of equipment where natural gas is 
    processed, compressed, or stored prior to entering a pipeline to a 
    local distribution company or to a final end user. A facility for this 
    source category typically is: A natural gas compressor station that 
    receives natural gas via pipeline, from an underground natural gas 
    storage operation, from a condensate tank battery, or from a natural 
    gas processing plant; or An underground natural gas storage operation. 
    The emission points associated with these phases include, but are not 
    limited to, process vents. Processes that may have vents include, but 
    are not limited to, dehydration, and compressor station engines. 
    Facility, for the purpose of a major source determination, means 
    natural gas transmission and storage equipment that is located inside 
    the boundaries of an individual surface site connected by ancillary 
    equipment, such as gas flow lines, roads, or power lines. Equipment 
    that is part of a facility will typically be located within close 
    proximity to other equipment located at the same facility. Natural gas 
    transmission and storage equipment or groupings of equipment located on 
    different gas leases, mineral fee tracts, lease tracts, subsurface unit 
    areas, surface fee tracts, or surface lease tracts shall not be 
    considered part of the same facility.
        Flame zone means the portion of the combustion chamber in a boiler 
    occupied by the flame envelope.
        Flow indicator means a device which indicates whether gas flow is 
    present in a line.
        Gas-condensate-glycol (GCG) separator means a two-or three-phase 
    separator through which the ``rich'' glycol stream of a glycol 
    dehydration unit is passed to remove entrained gas and hydrocarbon 
    liquid. The GCG separator is commonly referred to as a flash separator 
    or flash tank.
        Glycol dehydration unit means a device in which a liquid glycol 
    directly contacts a natural gas stream (that is circulated counter 
    current to the glycol flow) and absorbs water vapor in a contact tower 
    or absorption column (absorber). The glycol contacts and absorbs water 
    vapor and other gas stream constituents from the natural gas and 
    becomes ``rich'' glycol. This glycol is then regenerated by distilling 
    the water and other gas stream constituents in the glycol dehydration 
    unit reboiler. The distilled or ``lean'' glycol is then recycled back 
    to the absorber.
        Glycol dehydration unit reboiler vent means the vent through which 
    exhaust from the reboiler of a glycol dehydration unit passes from the 
    reboiler to the atmosphere.
        Glycol dehydration unit process vent means either the glycol 
    dehydration unit reboiler vent or the vent from the GCG separator 
    (flash tank).
        Hazardous air pollutants or HAP means the chemical compounds listed 
    in section 112(b) of the Act. All chemical compounds listed in section 
    112(b) of the Act need to be considered when making a major source 
    determination. Only the HAP compounds listed in Table 1 of this subpart 
    need to be considered when determining applicability and compliance.
        Incinerator means an enclosed combustion device that is used for 
    destroying organic compounds. Auxiliary fuel may be used to heat waste 
    gas to combustion temperatures. Any energy recovery section shall not 
    be physically formed into one manufactured or assembled unit with the 
    combustion section; rather, the energy recovery section shall be a 
    separate section following the combustion section and the two are 
    joined by ducts or connections carrying flue gas. The above energy 
    recovery section limitation does not apply to an energy recovery 
    section used solely to permit the incoming vent stream or combustion 
    air.
        Major source, as used in this subpart, shall have the same meaning 
    as in Sec. 63.2, except that:
        (1) Emissions from any oil or gas exploration or production well 
    (with its associated equipment) and emissions from any pipeline 
    compressor or pump station shall not be aggregated with emissions from 
    other similar units, whether or not such units are in a contiguous area 
    or under common control; and
        (2) Emissions from processes, operations, and equipment that are 
    not part of the same facility, as defined in this section, shall not be 
    aggregated.
        Natural gas means the gaseous mixture of hydrocarbon gases and 
    vapors, primarily consisting of methane, ethane, propane, butane, 
    pentane, and hexane, along with water vapor and other constituents.
        Natural gas transmission means the pipelines used for the long 
    distance transport of natural gas (excluding processing). Specific 
    equipment used in natural gas transmission includes the land, mains, 
    valves, meters, boosters, regulators, storage vessels, dehydrators, 
    compressors, and their driving units and appurtenances, and equipment 
    used for transporting gas from a production plant, delivery point of 
    purchased gas, gathering system, storage area, or other wholesale 
    source of gas to one or more distribution area(s).
        No detectable emissions means no escape of hazardous air pollutants 
    (HAP) from a device or system to the atmosphere as determined by:
        (1) Testing the device or system in accordance with the 
    requirements of Sec. 63.1282(d); and
        (2) No visible openings or defects in the device or system such as 
    rips, tears, or gaps.
        Operating parameter value means a minimum or maximum value 
    established for a control device or process parameter which, if 
    achieved by itself or in combination with one or more other operating 
    parameter values, determines that an owner or operator has complied 
    with an applicable emission limitation or standard.
        Operating permit means a permit required by 40 CFR part 70 or part 
    71.
        Organic monitoring device means a unit of equipment used to 
    indicate the concentration level of organic compounds exiting a 
    recovery device based on a detection principle such as infra-red, 
    photoionization, or thermal conductivity.
        Point of material entry means at the point where a material first 
    enters a source subject to this subpart.
        Primary fuel means the fuel that provides the principal heat input 
    (i.e., more than 50-percent) to the device. To be considered primary, 
    the fuel must be able to sustain operation without the addition of 
    other fuels.
        Process heater means a device that transfers heat liberated by 
    burning fuel directly to process streams or to heat transfer liquids 
    other than water.
        Safety device means a device that is not used for planned or 
    routine venting of liquids, gases, or fumes from the unit or equipment 
    on which the device is installed; and the device remains in a closed, 
    sealed position at all times except when an unplanned event requires 
    that the device open for the purpose of preventing physical damage or 
    permanent deformation of the unit or equipment on which the device is 
    installed in accordance with good
    
    [[Page 6328]]
    
    engineering and safety practices for handling flammable, combustible, 
    explosive, or other hazardous materials. Examples of unplanned events 
    which may require a safety device to open include failure of an 
    essential equipment component or a sudden power outage.
        Storage vessel means a tank or other vessel that is designed to 
    contain an accumulation of crude oil, condensate, intermediate 
    hydrocarbon liquids, or produced water and constructed primarily of 
    non-earthen materials (e.g., wood, concrete, steel, plastic) that 
    provide structural support.
        Temperature monitoring device means a unit of equipment used to 
    monitor temperature and having an accuracy of 1 percent of 
    the temperature being monitored expressed in  deg.C, or 
    0.5 deg.C, whichever is greater.
        Total organic compounds or TOC, as used in this subpart, means 
    those compounds measured according to the procedures of Method 18, 40 
    CFR part 60, appendix A.
        Underground storage means the subsurface facilities utilized for 
    storing natural gas that has been transferred from its original 
    location for the primary purpose of load balancing, which is the 
    process of equalizing the receipt and delivery of natural gas. 
    Processes and operations that may be located at an underground storage 
    facility include, but are not limited to, compression and dehydration.
    
    
    Sec. 63.1272  [Reserved]
    
    
    Sec. 63.1273  [Reserved]
    
    
    Sec. 63.1274  General standards.
    
        (a) The owner or operator of an affected source (i.e., glycol 
    dehydration unit) located at an existing or new major source of HAP 
    emissions shall comply with the requirements in this subpart as 
    follows:
        (1) The control requirements for glycol dehydration unit process 
    vents specified in Sec. 63.1275,
        (2) The monitoring requirements of Sec. 63.1283, and
        (3) The recordkeeping and reporting requirements of Secs. 63.1284 
    and 63.1285.
        (b) The owner or operator is exempt from the requirements of 
    paragraph (a) of this section if the actual annual average flow of 
    natural gas to the glycol dehydration unit is less than 85 thousand 
    cubic meters per day (3.0 million standard cubic feet per day) or 
    emissions of benzene from the unit to the atmosphere are less than 0.9 
    megagram per year (1 ton per year). The flow of gas to the unit and 
    emissions of benzene from the unit shall be determined by the 
    procedures specified in Sec. 63.1282(a). This determination must be 
    made available to the Administrator upon request.
        (c) Each owner or operator of a major HAP source subject to this 
    subpart is required to apply for a part 70 or part 71 operating permit 
    from the appropriate permitting authority. If the Administrator has 
    approved a State operating permit program under 40 CFR part 70, the 
    permit shall be obtained from the State authority. If the State 
    operating permit program has not been approved, the owner or operator 
    of a source shall apply to the EPA Regional Office pursuant to 40 CFR 
    part 71.
        (d) An owner or operator of an affected source that is a major 
    source or located at a major source subject to the provisions of this 
    subpart that is in violation of an operating parameter value is in 
    violation of the applicable emission limitation or standard.
    
    
    Sec. 63.1275  Glycol dehydration unit process vents standards.
    
        (a) This section applies to each glycol dehydration unit process 
    vent required to meet the air emission control requirements specified 
    in Sec. 63.1274(a).
        (b) Except as provided in paragraph (c) of this section, the 
    following air emission control requirements apply to glycol dehydration 
    unit process vents at an existing or new source.
        (1) For each glycol dehydration unit process vent, the owner or 
    operator shall control air emissions by connecting the process vent 
    through a closed-vent system to a control device designed and operated 
    in accordance with the requirements of Sec. 63.1281(c) and (d).
        (2) One or more safety devices that vent directly to the atmosphere 
    may be used on the air emission control equipment complying with 
    paragraph (b)(1) of this section.
        (c) As an alternative to the requirements of paragraph (b) of this 
    section, the owner or operator may comply with one of the following:
        (1) The owner or operator shall control air emissions by connecting 
    the process vent to a process natural gas line through a closed-vent 
    system designed and operated in accordance with the requirements of 
    Sec. 63.1281(c) and (d).
        (2) The owner or operator shall demonstrate, to the Administrator's 
    satisfaction, that total HAP emissions to the atmosphere from the 
    glycol dehydration unit reboiler vent and GCG separator (flash tank) 
    vent (if present) are reduced by 95 percent through process 
    modifications.
        (3) Control of HAP emissions from a GCG separator (flash tank) vent 
    is not required if the owner or operator demonstrates, to the 
    Administrator's satisfaction, that total HAP emissions to the 
    atmosphere from the glycol dehydration unit reboiler vent and GCG 
    separator (flash tank) vent are reduced by 95 percent.
    
    
    Sec. 63.1276  [Reserved]
    
    
    Sec. 63.1277  [Reserved]
    
    
    Sec. 63.1278  [Reserved]
    
    
    Sec. 63.1279  [Reserved]
    
    
    Sec. 63.1280  [Reserved]
    
    
    Sec. 63.1281  Control equipment requirements.
    
        (a) This section applies to each closed-vent system, and control 
    device installed and operated by the owner or operator to control air 
    emissions in accordance with the standards of this subpart.
        (b) [Reserved]
        (c) Closed-vent system requirements. (1) The closed-vent system 
    shall route all gases, vapors, and fumes emitted from the material in 
    the unit to a control device that meets the requirements specified in 
    paragraph (d) of this section.
        (2) The closed-vent system shall be designed and operated with no 
    detectable emissions.
        (3) If the closed-vent system contains one or more bypass devices 
    that could be used to divert all or a portion of the gases, vapors, or 
    fumes from entering the control device, the owner or operator shall 
    meet the following requirements:
        (i) For each bypass device except as provided for in paragraph 
    (c)(3)(ii) of this section, the owner or operator shall either:
        (A) Install, calibrate, maintain, and operate a flow indicator at 
    the inlet to the bypass device that indicates at least once every 15 
    minutes whether gas, vapor, or fume flow is present in the bypass 
    device; or
        (B) Secure the valve installed at the inlet to the bypass device in 
    the closed position using a car-seal or a lock-and-key type 
    configuration. The owner or operator shall visually inspect the seal or 
    closure mechanism at least once every month to verify that the valve is 
    maintained in the closed position.
        (ii) Low leg drains, high point bleeds, analyzer vents, open-ended 
    valves or lines, and safety devices are not subject to the requirements 
    of paragraph (c)(3)(i) of this section.
        (d) Control device requirements. (1) The control device shall be 
    one of the following devices:
    
    [[Page 6329]]
    
        (i) An enclosed combustion device (e.g., thermal vapor incinerator, 
    catalytic vapor incinerator, boiler, or process heater) that is 
    designed and operated in accordance with one of the following 
    performance requirements:
        (A) Reduces the mass content of either TOC or total HAP in the 
    gases vented to the device by 95 percent by weight or greater, as 
    determined in accordance with the requirements of Sec. 63.1282(d);
        (B) Reduces the concentration of either TOC or a total HAP in the 
    exhaust gases at the outlet to the device to a level equal to or less 
    than 20 parts per million by volume on a dry basis corrected to 3 
    percent oxygen as determined in accordance with the requirements of 
    Sec. 63.1282(d)(4); or
        (C) Operates at a minimum residence time of 0.5 second at a minimum 
    temperature of 760 deg.C. If a boiler or process heater is used as the 
    control device, then the vent stream shall be introduced into the flame 
    zone of the boiler or process heater.
        (ii) A vapor recovery device (e.g., condenser) that is designed and 
    operated to reduce the mass content of either TOC or total HAP in the 
    gases vented to the device by 95 percent by weight or greater as 
    determined in accordance with the requirements of Sec. 63.1282(d).
        (iii) A flare that is designed and operated in accordance with the 
    requirements of Sec. 63.11(b).
        (2) Each control device used to comply with this subpart shall be 
    operated at all times when material is placed in a unit vented to the 
    control device except when maintenance or repair of a unit cannot be 
    completed without a shutdown of the control device. An owner or 
    operator may vent more than one unit to a control device used to comply 
    with this subpart.
        (3) The owner or operator shall demonstrate that a control device 
    achieves the performance requirements of paragraph (d)(1) of this 
    section as follows:
        (i) An owner or operator shall demonstrate, using either a 
    performance test as specified in paragraph (d)(3)(iii) of this section 
    or a design analysis as specified in paragraph (d)(3)(iv) of this 
    section, the performance of each control device except for the 
    following:
        (A) A flare;
        (B) A boiler or process heater with a design heat input capacity of 
    44 megawatts or greater;
        (C) A boiler or process heater into which the vent stream is 
    introduced with the primary fuel; or
        (D) A boiler or process heater burning hazardous waste for which 
    the owner or operator either has been issued a final permit under 40 
    CFR part 270 and complies with the requirements of 40 CFR part 266, 
    subpart H; or has certified compliance with the interim status 
    requirements of 40 CFR part 266, subpart H.
        (ii) An owner or operator shall demonstrate the performance of each 
    flare in accordance with the requirements specified in Sec. 63.11(b).
        (iii) For a performance test conducted to meet the requirements of 
    paragraph (d)(3)(i) of this section, the owner or operator shall use 
    the test methods and procedures specified in Sec. 63.1282(d) or (e).
        (iv) For a design analysis conducted to meet the requirements of 
    paragraph (d)(3)(i) of this section, the design analysis shall meet the 
    following requirements:
        (A) The design analysis shall include analysis of the vent stream 
    characteristics and control device operating parameters for the 
    applicable control device type as follows:
        (1) For a thermal vapor incinerator, the design analysis shall 
    address the vent stream composition, constituent concentrations, and 
    flow rate and shall establish the design minimum and average 
    temperatures in the combustion zone and the combustion zone residence 
    time.
        (2) For a catalytic vapor incinerator, the design analysis shall 
    address the vent stream composition, constituent concentrations, flow 
    rate, and shall establish the design minimum and average temperatures 
    across the catalyst bed inlet and outlet, and the design service life 
    of the catalyst.
        (3) For a boiler or process heater, the design analysis shall 
    address the vent stream composition, constituent concentrations, and 
    flow rate; shall establish the design minimum and average flame zone 
    temperatures and combustion zone residence time; and shall describe the 
    method and location where the vent stream is introduced into the flame 
    zone.
        (4) For a condenser, the design analysis shall address the vent 
    stream composition, constituent concentrations, flow rate, relative 
    humidity, and temperature and shall establish the design outlet organic 
    compound concentration level, design average temperature of the 
    condenser exhaust vent stream, and the design average temperatures of 
    the coolant fluid at the condenser inlet and outlet.
        (5) For a carbon adsorption system that regenerates the carbon bed 
    directly on-site in the control device such as a fixed-bed adsorber, 
    the design analysis shall address the vent stream composition, 
    constituent concentrations, flow rate, relative humidity, and 
    temperature and shall establish the design exhaust vent stream organic 
    compound concentration level, adsorption cycle time, number and 
    capacity of carbon beds, type and working capacity of activated carbon 
    used for carbon beds, design total regeneration stream flow over the 
    period of each complete carbon bed regeneration cycle, design carbon 
    bed temperature after regeneration, design carbon bed regeneration 
    time, and design service life of the carbon.
        (6) For a carbon adsorption system that does not regenerate the 
    carbon bed directly on-site in the control device such as a carbon 
    canister, the design analysis shall address the vent stream 
    composition, constituent concentrations, flow rate, relative humidity, 
    and temperature and shall establish the design exhaust vent stream 
    organic compound concentration level, capacity of carbon bed, type and 
    working capacity of activated carbon used for carbon bed, and design 
    carbon replacement interval based on the total carbon working capacity 
    of the control device and source operating schedule.
        (B) If the owner or operator and the Administrator do not agree on 
    a demonstration of control device performance using a design analysis 
    then the disagreement shall be resolved using the results of a 
    performance test performed by the owner or operator in accordance with 
    the requirements of paragraph (d)(3)(iii) of this section. The 
    Administrator may choose to have an authorized representative observe 
    the performance test.
        (4) The owner or operator shall operate each control device in 
    accordance with the following requirements:
        (i) The control device shall be operating at all times when gases, 
    vapors, and fumes are vented from the unit or units through the closed-
    vent system to the control device.
        (ii) For each control device monitored in accordance with the 
    requirements of Sec. 63.1283(d), the owner or operator shall operate 
    the control device such that the actual value of each operating 
    parameter required to be monitored in accordance with the requirements 
    of Sec. 63.1283(d)(3) is greater than the minimum operating parameter 
    value or less than the maximum operating parameter value, as 
    appropriate, established for the control device in accordance with the 
    requirements of Sec. 63.1283(d)(4).
        (iii) Failure by the owner or operator to operate the control 
    device in accordance with the requirements of paragraph (d)(4)(ii) of 
    this section shall
    
    [[Page 6330]]
    
    constitute a violation of the applicable emission standard of this 
    subpart.
        (5) For each carbon adsorption system used as a control device to 
    meet the requirements of paragraph (d)(1) of this section, the owner or 
    operator shall manage the carbon as follows:
        (i) Following the initial startup of the control device, all carbon 
    in the control device shall be replaced with fresh carbon on a regular, 
    predetermined time interval that is no longer than the carbon service 
    life established for the carbon adsorption system.
        (ii) All carbon removed from the control device shall be managed in 
    one of the following manners:
        (A) Regenerated or reactivated in a thermal treatment unit for 
    which the owner or operator has either been issued a final permit under 
    40 CFR part 270, and designs and operates the unit in accordance with 
    the requirements of 40 CFR part 264, subpart X; or certified compliance 
    with the interim status requirements of 40 CFR part 265, subpart P.
        (B) Burned in a hazardous waste incinerator for which the owner or 
    operator has been issued a final permit under 40 CFR part 270, and 
    designs and operates the unit in accordance with the requirements of 40 
    CFR part 264, subpart O.
        (C) Burned in a boiler or industrial furnace for which the owner or 
    operator has either been issued a final permit under 40 CFR part 270, 
    and designs and operates the unit in accordance with the requirements 
    of 40 CFR part 266, subpart H, or has certified compliance with the 
    interim status requirements of 40 CFR part 266, subpart H.
    
    
    Sec. 63.1282  Test methods and compliance procedures.
    
        (a) Determination of glycol dehydration unit flow rate or benzene 
    emissions. The procedures of this paragraph shall be used by an owner 
    or operator to determine flow rate or benzene emissions to meet the 
    criteria for an exemption from control requirements under 
    Sec. 63.1274(b).
        (1) The determination of actual flow rate of natural gas to a 
    glycol dehydration unit shall be made using the procedures of either 
    paragraph (a)(1)(i) or (a)(1)(ii) of this section.
        (i) The owner or operator shall install and operate a monitoring 
    instrument that directly measures flow to the glycol dehydration unit 
    with an accuracy of plus or minus 2 percent.
        (ii) The owner or operator shall document that the actual annual 
    average flow rate of the dehydration unit is less than 85 thousand 
    cubic meters per day (3.0 million standard cubic feet per day).
        (2) The determination of benzene emissions from a glycol 
    dehydration unit shall be made using the procedures of either paragraph 
    (a)(2)(i) or (a)(2)(ii) of this section.
        (i) The owner or operator shall determine annual benzene emissions 
    using the model GRI-GLYCalcTM, Version 3.0 or higher. Inputs 
    to the model shall be representative of actual operating conditions of 
    the glycol dehydration unit.
        (ii) The owner or operator shall determine an average mass rate of 
    benzene emissions in kilograms per hour through direct measurement by 
    performing three runs of Method 18 in 40 CFR part 60, appendix A (or an 
    equivalent method), and averaging the results of the three runs. Annual 
    emissions in kilograms per year shall be determined by multiplying the 
    mass rate by the number of hours the unit is operated per year. This 
    result shall be multiplied by 1.1023 E-03 to convert to tons 
    per year.
        (b) No detectable emissions test procedure.
        (1) The procedure shall be conducted in accordance with Method 21, 
    40 CFR part 60, appendix A.
        (2) The detection instrument shall meet the performance criteria of 
    Method 21, 40 CFR part 60, appendix A, except the instrument response 
    factor criteria in section 3.1.2(a) of Method 21 shall be for the 
    average composition of the fluid, and not for each individual organic 
    compound in the stream.
        (3) The detection instrument shall be calibrated before use on each 
    day of its use by the procedures specified in Method 21, 40 CFR part 
    60, appendix A.
        (4) Calibration gases shall be as follows:
        (i) Zero air (less than 10 parts per million by volume hydrocarbon 
    in air); and
        (ii) A mixture of methane in air at a methane concentration of less 
    than 10,000 parts per million by volume.
        (5) The background level shall be determined according to the 
    procedures in Method 21, 40 CFR part 60, appendix A.
        (6) The arithmetic difference between the maximum organic 
    concentration indicated by the instrument and the background level 
    shall be compared with the value of 500 parts per million by volume. If 
    the difference is less than 500 parts per million by volume, then no 
    HAP emissions are detected.
        (c) [Reserved]
        (d) Control device performance test procedures. This paragraph 
    applies to the performance testing of control devices. Owners or 
    operators may elect to use the alternative procedures in paragraph (e) 
    of this section for performance testing of a condenser used to control 
    emissions from a glycol dehydration unit process vent.
        (1) Method 1 or 1A of 40 CFR part 60, appendix A, as appropriate, 
    shall be used for selection of the sampling sites at the inlet and 
    outlet of the control device.
        (i) To determine compliance with the control device percentage of 
    reduction requirement specified in Sec. 63.1281(d)(1)(i)(A) or 
    Sec. 63.1281(d)(1)(ii)(A), sampling sites shall be located at the inlet 
    of the control device as specified in paragraphs (d)(1)(i)(A) and 
    (d)(1)(i)(B) of this section, and at the outlet of the control device.
        (A) The control device inlet sampling site shall be located after 
    the final product recovery device.
        (B) If a vent stream is introduced with the combustion air, or as a 
    secondary fuel, into a boiler or process heater with a design capacity 
    less than 44 megawatts, selection of the location of the inlet sampling 
    sites shall ensure the measurement of total HAP or TOC concentration, 
    as applicable, in all vent streams and primary and secondary fuels.
        (ii) To determine compliance with the enclosed combustion device 
    total HAP concentration limit specified in Sec. 63.1281(d)(1)(i)(B), 
    the sampling site shall be located at the outlet of the device.
        (2) The gas volumetric flow rate shall be determined using Method 
    2, 2A, 2C, or 2D, 40 CFR part 60, appendix A, as appropriate.
        (3) To determine compliance with the control device percentage of 
    reduction requirement specified in Sec. 63.1281(d)(1)(i)(A) or 
    Sec. 63.1281(d)(1)(ii)(A), the owner or operator shall use Method 18 of 
    40 CFR part 60, appendix A of this chapter; alternatively, any other 
    method or data that has been validated according to the applicable 
    procedures in Method 301 of appendix A of this part may be used. The 
    following procedures shall be used to calculate the percentage of 
    reduction:
        (i) The minimum sampling time for each run shall be 1 hour in which 
    either an integrated sample or a minimum of four grab samples shall be 
    taken. If grab sampling is used, then the samples shall be taken at 
    approximately equal intervals in time, such as 15 minute intervals 
    during the run.
        (ii) The mass rate of either TOC (minus methane and ethane) or 
    total HAP (Ei, Eo) shall be computed.
    
    [[Page 6331]]
    
        (A) The following equations shall be used:
        [GRAPHIC] [TIFF OMITTED] TP06FE98.013
        
        [GRAPHIC] [TIFF OMITTED] TP06FE98.014
        
    Where:
    Cij, Coj=Concentration of sample component j of 
    the gas stream at the inlet and outlet of the control device, 
    respectively, dry basis, parts per million by volume.
    Ei, Eo=Mass rate of TOC (minus methane and 
    ethane) or total HAP at the inlet and outlet of the control device, 
    respectively, dry basis, kilogram per hour.
    Mij, Moj=Molecular weight of sample component j 
    of the gas stream at the inlet and outlet of the control device, 
    respectively, gram/gram-mole.
    Qi, Qo=Flow rate of gas stream at the inlet and 
    outlet of the control device, respectively, dry standard cubic meter 
    per minute.
    K2=Constant, 2.494 x 10-6 (parts per million)-1 (gram-mole 
    per standard cubic meter) (kilogram/gram) (minute/hour), where standard 
    temperature is 20 deg.C.
    
        (B) When the TOC mass rate is calculated, all organic compounds 
    (minus methane and ethane) measured by Method 18, of 40 CFR part 60, 
    appendix A shall be summed using the equation in paragraph 
    (d)(3)(ii)(A) of this section.
        (C) When the total HAP mass rate is calculated, only HAP chemicals 
    listed in Table 1 of this subpart shall be summed using the equation in 
    paragraph (d)(3)(ii)(A) of this section.
        (iii) The percentage of reduction in TOC (minus methane and ethane) 
    or total HAP shall be calculated as follows
    [GRAPHIC] [TIFF OMITTED] TP06FE98.015
    
    Where:
    
    Rcd=Control efficiency of control device, percent.
    Ei=Mass rate of TOC (minus methane and ethane) or total HAP 
    at the inlet to the control device as calculated under paragraph 
    (d)(3)(ii) of this section, kilograms TOC per hour or kilograms HAP per 
    hour.
    
        Eo=Mass rate of TOC (minus methane and ethane) or total 
    HAP at the outlet of the control device, as calculated under paragraph 
    (d)(3)(ii) of this section, kilograms TOC per hour or kilograms HAP per 
    hour.
        (iv) If the vent stream entering a boiler or process heater with a 
    design capacity less than 44 megawatts is introduced with the 
    combustion air or as a secondary fuel, the weight-percentage of 
    reduction of total HAP or TOC (minus methane and ethane) across the 
    device shall be determined by comparing the TOC (minus methane and 
    ethane) or total HAP in all combusted vent streams and primary and 
    secondary fuels with the TOC (minus methane and ethane) or total HAP 
    exiting the device, respectively.
        (4) To determine compliance with the enclosed combustion device 
    total HAP concentration limit specified in Sec. 63.1281(d)(1)(i)(B), 
    the owner or operator shall use Method 18, 40 CFR part 60, appendix A 
    to measure either TOC (minus methane and ethane) or total HAP. 
    Alternatively, any other method or data that has been validated 
    according to Method 301, appendix A of this part, may be used. The 
    following procedures shall be used to calculate parts per million by 
    volume concentration, corrected to 3 percent oxygen:
        (i) The minimum sampling time for each run shall be 1 hour in which 
    either an integrated sample or a minimum of four grab samples shall be 
    taken. If grab sampling is used, then the samples shall be taken at 
    approximately equal intervals in time, such as 15-minute intervals 
    during the run.
        (ii) The TOC concentration or total HAP concentration shall be 
    calculated according to paragraph (d)(4)(ii)(A) or (d)(4)(ii)(B) of 
    this section.
        (A) The TOC concentration (CTOC) is the sum of the 
    concentrations of the individual components and shall be computed for 
    each run using the following equation:
    [GRAPHIC] [TIFF OMITTED] TP06FE98.016
    
    Where:
    
    CTOC=Concentration of total organic compounds minus methane 
    and ethane, dry basis, parts per million by volume.
    Cji=Concentration of sample components j of sample i, dry 
    basis, parts per million by volume.
    n=Number of components in the sample.
    x=Number of samples in the sample run.
    
        (B) The total HAP concentration (CHAP) shall be computed 
    according to the equation in paragraph (d)(4)(ii)(A) of this section, 
    except that only HAP chemicals listed in Table 1 of this subpart shall 
    be summed.
        (iii) The TOC concentration or total HAP concentration shall be 
    corrected to 3 percent oxygen as follows:
        (A) The emission rate correction factor or excess air, integrated 
    sampling and analysis procedures of Method 3B, 40 CFR part 60, appendix 
    A shall be used to determine the oxygen concentration 
    (%O2d). The samples shall be taken during the same time that 
    the samples are taken for determining TOC concentration or total HAP 
    concentration.
        (B) The concentration corrected to 3 percent oxygen (Cc) 
    shall be computed using the following equation:
    [GRAPHIC] [TIFF OMITTED] TP06FE98.017
    
    Where:
    
    Cc=TOC concentration of total HAP concentration corrected to 
    3 percent oxygen, dry basis, parts per million by volume.
    Cm=TOC concentration or total HAP concentration, dry basis, 
    parts per million by volume.
    %O2d=Concentration of oxygen, dry basis, percent by volume.
    
        (e) As an alternative to the procedures in paragraph (d) of this 
    section, an owner or operator may elect to use the procedures 
    documented in the Gas Research Institute Report entitled, ``Atmospheric 
    Rich/Lean Method for Determining Glycol Dehydrator Emissions,'' (GRI-
    95/0368.1).
    
    
    Sec. 63.1283  Inspection and monitoring requirements.
    
        (a) This section applies to an owner or operator using air emission 
    controls in accordance with the requirements of Sec. 63.1275.
        (b) [Reserved]
        (c) Closed-vent system inspection and monitoring requirements. (1) 
    The owner or operator shall visually inspect and monitor for no 
    detectable emissions each closed-vent system at the following times:
        (i) On or before the date that the unit connected to the closed-
    vent system becomes subject to the provisions of this subpart;
        (ii) At least once per year after the date that the closed-vent 
    system is inspected in accordance with the requirements of paragraph 
    (c)(1)(i) of this section; and
        (iii) At other times as requested by the Administrator.
        (2) To visually inspect a closed-vent system, the owner or operator 
    shall view
    
    [[Page 6332]]
    
    the entire length of ductwork, piping and connections to covers and 
    control devices for evidence of visible defects (such as holes in 
    ductwork or piping and loose connections) that may affect the ability 
    of the system to operate with no detectable emissions. A visible hole, 
    gap, tear, or split in the closed-vent system is defined as a leak 
    which shall be repaired in accordance with paragraph (c)(4) of this 
    section.
        (3) To monitor a closed-vent system for no detectable emissions, 
    the owner or operator shall use Method 21, 40 CFR part 60, appendix A 
    to test each closed-vent system joint, seam, or other connection. For 
    the annual leak detection monitoring after the initial leak detection 
    monitoring, the owner or operator is not required to monitor those 
    closed-vent system components which continuously operate at a pressure 
    below atmospheric pressure or those closed-vent system joints, seams, 
    or other connections that are permanently or semi-permanently sealed 
    (e.g., a welded joint between two sections of metal pipe or a bolted 
    and gasketed pipe flange).
        (4) When a leak is detected by either of the methods specified in 
    paragraph (c)(2) or (c)(3) of this section, the owner or operator shall 
    make a first attempt at repairing the leak no later than 5 calendar 
    days after the leak is detected. Repair of the leak shall be completed 
    as soon as practicable, but no later than 15 calendar days after the 
    leak is detected.
        (d) Control device monitoring requirements. (1) For each control 
    device except as provided for in paragraph (d)(2) of this section, the 
    owner or operator shall install and operate a continuous monitoring 
    system in accordance with the requirements of paragraphs (d)(3) through 
    (d)(5) of this section that will allow a determination be made whether 
    the control device is continuously achieving the applicable performance 
    requirements of Sec. 63.1281.
        (2) An owner or operator is exempted from the monitoring 
    requirements specified in paragraphs (d)(3) through (d)(5) of this 
    section for the following types of control devices:
        (i) A boiler or process heater in which all vent streams are 
    introduced with primary fuel; or
        (ii) A boiler or process heater with a design heat input capacity 
    equal to or greater than 44 megawatts.
        (3) The owner or operator shall install, calibrate, operate, and 
    maintain a device equipped with a continuous recorder to measure the 
    values of operating parameters appropriate for the control device as 
    specified in either paragraph (d)(3)(i), (d)(3)(ii), or (d)(3)(iii) of 
    this section. The monitoring equipment shall be installed, calibrated, 
    and maintained in accordance with the equipment manufacturer's 
    specifications or other written procedures that provide adequate 
    assurance that the equipment would reasonably be expected to monitor 
    accurately. The continuous recorder shall be a data recording device 
    that either records an instantaneous data value at least once every 15 
    minutes or records 15-minute or more frequent block average values. The 
    owner or operator shall use any of the following continuous monitoring 
    systems:
        (i) A continuous monitoring system that measures the following 
    operating parameters as applicable:
        (A) For a thermal vapor incinerator, a temperature monitoring 
    device equipped with a continuous recorder. The monitoring device shall 
    have an accuracy of 1 percent of the temperature being 
    monitored in  deg.C, or 0.5  deg.C, whichever value is 
    greater. The temperature sensor shall be installed at a location in the 
    combustion chamber downstream of the combustion zone.
        (B) For a catalytic vapor incinerator, a temperature monitoring 
    device equipped with a continuous recorder. The device shall be capable 
    of monitoring temperature at two locations and have an accuracy of 
    1 percent of the temperature being monitored in  deg.C, or 
    0.5  deg.C, whichever value is greater. One temperature 
    sensor shall be installed in the vent stream at the nearest feasible 
    point to the catalyst bed inlet and a second temperature sensor shall 
    be installed in the vent stream at the nearest feasible point to the 
    catalyst bed outlet.
        (C) For a flare, a heat sensing monitoring device equipped with a 
    continuous recorder that indicates the continuous ignition of the pilot 
    flame.
        (D) For a boiler or process heater with a design heat input 
    capacity of less than 44 megawatts, a temperature monitoring device 
    equipped with a continuous recorder. The temperature monitoring device 
    shall have an accuracy of 1 percent of the temperature 
    being monitored in  deg.C, or 0.5  deg.C, whichever value 
    is greater. The temperature sensor shall be installed at a location in 
    the combustion chamber downstream of the combustion zone.
        (E) For a condenser, a temperature monitoring device equipped with 
    a continuous recorder. The temperature monitoring device shall have an 
    accuracy of 1 percent of the temperature being monitored in 
     deg.C, or 0.5  deg.C, whichever value is greater. The 
    temperature sensor shall be installed at a location in the exhaust vent 
    stream from the condenser.
        (F) For a regenerative-type carbon adsorption system, an 
    integrating regeneration stream flow monitoring device equipped with a 
    continuous recorder, and a carbon bed temperature monitoring device 
    equipped with a continuous recorder. The integrating regeneration 
    stream flow monitoring device shall have an accuracy of 10 
    percent and measure the total regeneration stream mass flow during the 
    carbon bed regeneration cycle. The temperature monitoring device shall 
    have an accuracy of 1 percent of the temperature being 
    monitored in  deg.C, or 0.5 deg.C, whichever value is 
    greater and measure the carbon bed temperature both after regeneration 
    and within 15 minutes of completing the cooling cycle, and over the 
    duration of the carbon bed steaming cycle.
        (ii) A continuous monitoring system that measures the concentration 
    level of organic compounds in the exhaust vent stream from the control 
    device using an organic monitoring device equipped with a continuous 
    recorder.
        (iii) A continuous monitoring system that measures alternative 
    operating parameters other than those specified in paragraph (d)(3)(i) 
    or (d)(3)(ii) of this section upon approval of the Administrator as 
    specified in Sec. 63.8 (f)(1) through (f)(5).
        (4) For each operating parameter monitored in accordance with the 
    requirements of paragraph (d)(3) of this section, the owner or operator 
    shall establish a minimum operating parameter value or a maximum 
    operating parameter value, as appropriate for the control device, to 
    define the conditions at which the control device must be operated to 
    continuously achieve the applicable performance requirements of 
    Sec. 63.1281. Each minimum or maximum operating parameter value shall 
    be established as follows:
        (i) If the owner or operator conducts performance tests in 
    accordance with the requirements of Sec. 63.1281 to demonstrate that 
    the control device achieves the applicable performance requirements 
    specified in Sec. 63.1281, then the minimum operating parameter value 
    or the maximum operating parameter value shall be established based on 
    values measured during the performance test and supplemented, as 
    necessary, by control device design analysis and manufacturer 
    recommendations.
        (ii) If the owner or operator uses control device design analysis 
    in accordance with the requirements of Sec. 63.1281(d)(3)(iv) to 
    demonstrate that the control device achieves the applicable performance 
    requirements
    
    [[Page 6333]]
    
    specified in Sec. 63.1281(d)(1), then the minimum operating parameter 
    value or the maximum operating parameter value shall be established 
    based on the control device design analysis and the control device 
    manufacturer's recommendations.
        (5) The owner or operator shall regularly inspect the data recorded 
    by the continuous monitoring system to determine whether the control 
    device is operating in accordance with the applicable requirements of 
    Sec. 63.1281(d).
    
    
    Sec. 63.1284  Recordkeeping requirements.
    
        (a) The recordkeeping provisions of subpart A of this part that 
    apply and those that do not apply to owners and operators of facilities 
    subject to this subpart are listed in Table 2 of this subpart.
        (b) Except as specified in paragraphs (c) and (d) of this section, 
    each owner or operator of a facility subject to this subpart shall 
    maintain the following records in accordance with the requirements of 
    Sec. 63.10(b)(1):
        (1) Records specified in Sec. 63.10(b)(2);
        (2) Records specified in Sec. 63.10(c) for each continuous 
    monitoring system operated by the owner or operator in accordance with 
    the requirements of Sec. 63.1283(d).
        (c) [Reserved]
        (d) An owner or operator that is exempt from control requirements 
    under Sec. 63.1274(b) shall maintain a record of the design capacity 
    (in terms of natural gas flow rate to the unit per day) of each glycol 
    dehydration unit that is not controlled according to the requirements 
    of Sec. 63.1274(a).
    
    
    Sec. 63.1285  Reporting requirements.
    
        (a) The reporting provisions of subpart A of this part that apply 
    and those that do not apply to owners and operators of facilities 
    subject to this subpart are listed in Table 2 of this subpart.
        (b) Each owner or operator of a facility subject to this subpart 
    shall submit the following reports to the Administrator:
        (1) An Initial Notification as described in Sec. 63.9 (a) through 
    (d), except that the notification required by Sec. 63.9(b)(2) shall be 
    submitted not later than one year after the effective date of this 
    standard.
        (2) A Notification of Performance Tests as specified in 
    Sec. 63.7(b), Sec. 63.9(e), and Sec. 63.9(g).
        (3) A Notification of Compliance Status as specified in 
    Sec. 63.9(h).
        (4) Performance test reports as specified in Sec. 63.10(d)(2) and 
    performance evaluation reports specified in Sec. 63.10(e)(2). Separate 
    performance evaluation reports as described in Sec. 63.10(e)(2) are not 
    required if the information is included in the summary report specified 
    in paragraph (b)(6) of this section.
        (5) Startup, shutdown, and malfunction reports, as specified in 
    Sec. 63.10(d)(5), shall be submitted as required. Separate startup, 
    shutdown, or malfunction reports as described in Sec. 63.10(d)(5)(i) 
    are not required if the information is included in the report specified 
    in paragraph (b)(6) of this section.
        (6) The excess emission and CMS performance report and summary 
    report as specified in Sec. 63.10(e)(3) shall be submitted on a semi-
    annual basis (i.e., once every 6-month period). The summary report 
    shall be entitled ``Summary Report--Gaseous Excess Emissions and 
    Continuous Monitoring System Performance.''
        (7) The owner or operator shall meet the requirements specified in 
    paragraph (b) of this section for any emission point or material that 
    becomes subject to the standards in this subpart due to an increase in 
    flow, concentration, or other parameters equal to or greater than the 
    limits specified in this subpart.
        (8) For each control device other than a flare used to meet the 
    requirements of this subpart, the owner or operator shall submit the 
    following information for each operating parameter required to be 
    monitored in accordance with the requirements of Sec. 63.1283(d):
        (i) The minimum operating parameter value or maximum operating 
    parameter value, as appropriate for the control device, established by 
    the owner or operator to define the conditions at which the control 
    device must be operated to continuously achieve the applicable 
    performance requirements of Sec. 63.1281(d)(1).
        (ii) An explanation of the rationale for why the owner or operator 
    selected each of the operating parameter values established in 
    Sec. 63.1281(d). This explanation shall include any data and 
    calculations used to develop the value and a description of why this 
    value indicates that the control device is operating in accordance with 
    the applicable requirements of Sec. 63.1281(d)(1).
        (9) Each owner or operator of a major source subject to this 
    subpart that is not subject to the control requirements for glycol 
    dehydration unit process vents in Sec. 63.765 is exempt from all 
    reporting requirements for major sources in this subpart.
        (c) Each owner or operator of a facility subject to this subpart 
    that is an area source is exempt from all reporting requirements in 
    this subpart.
    
    
    Sec. 63.1286  Delegation of authority. [Reserved]
    
    
    Sec. 63.1287  Alternative means of emission limitation.
    
        (a) If, in the judgment of the Administrator, an alternative means 
    of emission limitation will achieve a reduction in HAP emissions at 
    least equivalent to the reduction in HAP emissions from that source 
    achieved under the applicable requirements in Secs. 63.1274 through 
    63.1281, the Administrator will publish a notice in the Federal 
    Register permitting the use of the alternative means for purposes of 
    compliance with that requirement. The notice may condition the 
    permission on requirements related to the operation and maintenance of 
    the alternative means.
        (b) Any notice under paragraph (a) of this section shall be 
    published only after public notice and an opportunity for a hearing.
        (c) Any person seeking permission to use an alternative means of 
    compliance under this section shall collect, verify, and submit to the 
    Administrator information showing that this means achieves equivalent 
    emission reductions.
    
    
    Sec. 63.1288  [Reserved]
    
    
    Sec. 63.1289  [Reserved]
    
         Table 1 to Subpart HHH--List of Hazardous Air Pollutants (HAP)     
    ------------------------------------------------------------------------
                  CAS No.a                          Chemical name           
    ------------------------------------------------------------------------
    75070..............................  Acetaldehyde.                      
    71432..............................  Benzene (includes benzene in       
                                          gasoline).                        
    75150..............................  Carbon disulfide.                  
    463581.............................  Carbonyl sulfide.                  
    100414.............................  Ethyl benzene.                     
    107211.............................  Ethylene glyco.                    
    50000..............................  Formaldehyde.                      
    110543.............................  n-Hexane.                          
    91203..............................  Naphthalene.                       
    108883.............................  Toluene.                           
    540841.............................  2,2,4-Trimethylpentane.            
    1330207............................  Xylenes (isomers and mixture).     
    95476..............................  o-Xylene.                          
    108383.............................  m-Xylene.                          
    106423.............................  p-Xylenea.                         
    ------------------------------------------------------------------------
    a CAS numbers refer to the Chemical Abstracts Services registry number  
      assigned to specific compounds, isomers, or mixtures of compounds.    
    
    
    [[Page 6334]]
    
    
                       Table 2 of Subpart HHH.--Applicability of 40 CFR Part 63 General Provisions                  
    ----------------------------------------------------------------------------------------------------------------
         General provisions  reference         Applicable to subpart HHH                     Comment                
    ----------------------------------------------------------------------------------------------------------------
    Sec.  63.1(a)(1)......................  Yes...........................                                          
    Sec.  63.1(a)(2)......................  Yes...........................                                          
    Sec.  63.1(a)(3)......................  Yes...........................                                          
    Sec.  63.1(a)(4)......................  Yes...........................                                          
    Sec.  63.1(a)(5)......................  No............................  Section reserved.                       
    Sec.  63.1(a)(6)-(a)(8)...............  Yes...........................                                          
    Sec.  63.1(a)(9)......................  No............................  Section reserved.                       
    Sec.  63.1(a)(10).....................  Yes...........................                                          
    Sec.  63.1(a)(11).....................  Yes...........................                                          
    Sec.  63.1(a)(12)-(a)(14).............  Yes...........................                                          
    Sec.  63.1(b)(1)......................  No............................  Subpart HHH specifies applicability.    
    Sec.  63.1(b)(2)......................  Yes...........................                                          
    Sec.  63.1(b)(3)......................  No............................                                          
    Sec.  63.1(c)(1)......................  No............................  Subpart HHH specifies applicability.    
    Sec.  63.1(c)(2)......................  No............................                                          
    Sec.  63.1(c)(3)......................  No............................  Section reserved.                       
    Sec.  63.1(c)(4)......................  Yes...........................                                          
    Sec.  63.1(c)(5)......................  Yes...........................                                          
    Sec.  63.1(d).........................  No............................  Section reserved.                       
    Sec.  63.1(e).........................  Yes...........................                                          
    Sec.  63.2............................  Yes...........................  Except definition of ``major source'' is
                                                                             unique for this source category and    
                                                                             there are additional definitions       
                                                                             included in subpart HHH.               
    Sec.  63.3(a)-(c).....................  Yes...........................                                          
    Sec.  63.4(a)(1)-(a)(3)...............  Yes...........................                                          
    Sec.  63.4(a)(4)......................  No............................  Section reserved.                       
    Sec.  63.4(a)(5)......................  Yes...........................                                          
    Sec.  63.4(b).........................  Yes...........................                                          
    Sec.  63.49(c)........................  Yes...........................                                          
    Sec.  63.5(a)(1)......................  Yes...........................                                          
    Sec.  63.5(a)(2)......................  No............................  Preconstruction review required only for
                                                                             major sources that commence            
                                                                             construction after promulgation of the 
                                                                             standard.                              
    Sec.  63.5(b)(1)......................  Yes...........................                                          
    Sec.  63.5(b)(2)......................  No............................  Section reserved.                       
    Sec.  63.5(b)(3)......................  Yes...........................                                          
    Sec.  63.5(b)(4)......................  Yes...........................                                          
    Sec.  63.5(b)(5)......................  Yes...........................                                          
    Sec.  63.5(b)(6)......................  Yes...........................                                          
    Sec.  63.5(c).........................  No............................  Section reserved.                       
    Sec.  63.5(d)(1)......................  Yes...........................                                          
    Sec.  63.5(d)(2)......................  Yes...........................                                          
    Sec.  63.5(d)(3)......................  Yes...........................                                          
    Sec.  63.5(d)(4)......................  Yes...........................                                          
    Sec.  63.5(e).........................  Yes...........................                                          
    Sec.  63.5(f)(1)......................  Yes...........................                                          
    Sec.  63.5(f)(2)......................  Yes...........................                                          
    Sec.  63.6(a).........................  Yes...........................                                          
    Sec.  63.6(b)(1)......................  Yes...........................                                          
    Sec.  63.6(b)(2)......................  Yes...........................                                          
    Sec.  63.6(b)(3)......................  Yes...........................                                          
    Sec.  63.6(b)(4)......................  Yes...........................                                          
    Sec.  63.6(b)(5)......................  Yes...........................                                          
    Sec.  63.6(b)(6)......................  No............................  Section reserved.                       
    Sec.  63.6(b)(7)......................  Yes...........................                                          
    Sec.  63.6(c)(1)......................  Yes...........................                                          
    Sec.  63.6(c)(2)......................  Yes...........................                                          
    Sec.  63.6(c)(3)-(c)(4)...............  No............................  Sections reserved.                      
    Sec.  63.6(c)(5)......................  Yes...........................                                          
    Sec.  63.6(d).........................  No............................  Section reserved.                       
    Sec.  63.6(e).........................  Yes...........................                                          
    Sec.  63.6(f)(1)......................  Yes...........................                                          
    Sec.  63.6(f)(2)......................  Yes...........................                                          
    Sec.  63.6(f)(3)......................  Yes...........................                                          
    Sec.  63.6(g).........................  Yes...........................                                          
    Sec.  63.6(h).........................  No............................  Subpart HHH does not require the use of 
                                                                             a continuous emissions monitoring      
                                                                             system.                                
    Sec.  63.6(i)(1)-(i)(14)..............  Yes...........................                                          
    Sec.  63.6(i)(15).....................  No............................  Section reserved.                       
    Sec.  63.6(i)(16).....................  Yes...........................                                          
    Sec.  63.6(j).........................  Yes...........................                                          
    Sec.  63.7(a)(1)......................  Yes...........................                                          
    Sec.  63.7(a)(2)......................  Yes...........................                                          
    
    [[Page 6335]]
    
                                                                                                                    
    Sec.  63.7(a)(3)......................  Yes...........................                                          
    Sec.  63.7(b).........................  Yes...........................                                          
    Sec.  63.7(c).........................  Yes...........................                                          
    Sec.  63.7(d).........................  Yes...........................                                          
    Sec.  63.7(e)(1)......................  Yes...........................                                          
    Sec.  63.7(e)(2)......................  Yes...........................                                          
    Sec.  63.7(e)(3)......................  Yes...........................                                          
    Sec.  63.7(e)(4)......................  Yes...........................                                          
    Sec.  63.7(f).........................  Yes...........................                                          
    Sec.  63.7(g).........................  Yes...........................                                          
    Sec.  63.7(h).........................  Yes...........................                                          
    Sec.  63.8(a)(1)......................  Yes...........................                                          
    Sec.  63.8(a)(2)......................  Yes...........................                                          
    Sec.  63.8(a)(3)......................  No............................  Section reserved.                       
    Sec.  63.8(a)(4)......................  Yes...........................                                          
    Sec.  63.8(b)(1)......................  Yes...........................                                          
    Sec.  63.8(b)(2)......................  Yes...........................                                          
    Sec.  63.8(b)(3)......................  Yes...........................                                          
    Sec.  63.8(c)(1)......................  Yes...........................                                          
    Sec.  63.8(c)(2)......................  Yes...........................                                          
    Sec.  63.8(c)(3)......................  Yes...........................                                          
    Sec.  63.8(c)(4)......................  No............................                                          
    Sec.  63.8(c)(5)-(c)(8)...............  Yes...........................                                          
    Sec.  63.8(d).........................  Yes...........................                                          
    Sec.  63.8(e).........................  Yes...........................                                          
    Sec.  63.8(f)(1)-(f)(5)...............  Yes...........................                                          
    Sec.  63.8(f)(6)......................  No............................  Subpart HHH does not require the use of 
                                                                             a continuous emissions monitor.        
    Sec.  63.8(g).........................  No............................  Subpart HHH specifies continuous        
                                                                             monitoring system data reduction       
                                                                             requirements.                          
    Sec.  63.9(a).........................  Yes...........................                                          
    Sec.  63.9(b)(1)......................  Yes...........................                                          
    Sec.  63.9(b)(2)......................  Yes...........................  Sources are given one year (rather than 
                                                                             120 days) to submit this notification. 
    Sec.  63.9(b)(3)......................  Yes...........................                                          
    Sec.  63.9(b)(4)......................  Yes...........................                                          
    Sec.  63.9(b)(5)......................  Yes...........................                                          
    Sec.  63.9(c).........................  Yes...........................                                          
    Sec.  63.9(d).........................  Yes...........................                                          
    Sec.  63.9(e).........................  Yes...........................                                          
    Sec.  63.9(f).........................  No............................                                          
    Sec.  63.9(g).........................  Yes...........................                                          
    Sec.  63.9(h)(1)-(h)(3)...............  Yes...........................                                          
    Sec.  63.9(h)(4)......................  No............................  Section reserved.                       
    Sec.  63.9(h)(5)-(h)(6)...............  Yes...........................                                          
    Sec.  63.9(i).........................  Yes...........................                                          
    Sec.  63.9(j).........................  Yes...........................                                          
    Sec.  63.10(a)........................  Yes...........................                                          
    Sec.  63.10(b)(1).....................  Yes...........................                                          
    Sec.  63.10(b)(2).....................  Yes...........................                                          
    Sec.  63.10(b)(3).....................  No............................                                          
    Sec.  63.10(c)(1).....................  Yes...........................                                          
    Sec.  63.10(c)(2)-(c)(4)..............  No............................  Sections reserved.                      
    Sec.  63.10(c)(5)-(c)(8)..............  Yes...........................                                          
    Sec.  63.10(c)(9).....................  No............................  Section reserved.                       
    Sec.  63.10(c)(10)-(c)(15)............  Yes...........................                                          
    Sec.  63.10(d)(1).....................  Yes...........................                                          
    Sec.  63.10(d)(2).....................  Yes...........................                                          
    Sec.  63.10(d)(3).....................  Yes...........................                                          
    Sec.  63.10(d)(4).....................  Yes...........................                                          
    Sec.  63.10(d)(5).....................  Yes...........................  Subpart HHH requires major sources to   
                                                                             submit startup, shutdown and           
                                                                             malfunction report semi-annually.      
    Sec.  63.10(e)........................  Yes...........................  Subpart HHH requires major sources to   
                                                                             submit continuous monitoring system    
                                                                             performance reports semi-annually.     
                                                                                                                    
    
    [[Page 6336]]
    
                                                                                                                    
    Sec.  63.10(f)........................  Yes...........................                                          
    Sec.  63.11(a)-(b)....................  Yes...........................                                          
    Sec.  63.12(a)-(c)....................  Yes...........................                                          
    Sec.  63.13(a)-(c)....................  Yes...........................                                          
    Sec.  63.14(a)-(b)....................  Yes...........................                                          
    Sec.  63.15(a)-(b)....................  Yes...........................                                          
    ----------------------------------------------------------------------------------------------------------------
    
    [FR Doc. 98-2714 Filed 2-5-98; 8:45 am]
    BILLING CODE 6560-50-U
    
    
    

Document Information

Published:
02/06/1998
Department:
Environmental Protection Agency
Entry Type:
Proposed Rule
Action:
Proposed rules and notice of public hearing.
Document Number:
98-2714
Dates:
Comments. Comments must be received on or before April 7, 1998. For information on submitting electronic comments see the Supplementary Information section of this document.
Pages:
6288-6336 (49 pages)
Docket Numbers:
AD-FRL-5955-1
RINs:
2060-AE34: NESHAP: Oil and Natural Gas Production and Natural Gas Transmission and Storage
RIN Links:
https://www.federalregister.gov/regulations/2060-AE34/neshap-oil-and-natural-gas-production-and-natural-gas-transmission-and-storage
PDF File:
98-2714.pdf
CFR: (349)
40 CFR 63.772(a)
40 CFR 63.1(a)(9)
40 CFR 63.1(a)(10)
40 CFR 63.1(a)(11)
40 CFR 63.1(a)(1)
More ...