
[Federal Register Volume 80, Number 55 (Monday, March 23, 2015)]
[Proposed Rules]
[Pages 15180-15185]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-06593]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2010-0505; FRL-9924-29-OAR]
RIN 2060-AS49


Oil and Natural Gas Sector: Definitions of Low Pressure Gas Well 
and Storage Vessel

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: On July 17, 2014, the Environmental Protection Agency (EPA) 
published proposed amendments to the new source performance standards 
(NSPS) for the Oil and Natural Gas Sector. One of the issues addressed 
in the proposed amendments was the EPA's proposed definition of ``low 
pressure gas well.'' A petitioner's timely submitted comment on the 
proposed amendments concerning the definition was, inadvertently, not 
made part of the record in the rulemaking docket and was, therefore, 
not available to be considered by the EPA when the agency finalized the 
definition of ``low pressure gas well'' in its December 19, 2014, final 
amendments to the NSPS. To correct the above mentioned procedural 
defect, the EPA is re-proposing its definition of ``low pressure gas 
well'' for notice and comment. The EPA is also soliciting comment on 
certain issues raised in the missed comment.
    We are also proposing to amend the NSPS to remove provisions 
concerning storage vessels connected or installed in parallel and to 
revise the definition of ``storage vessel''. The EPA is granting 
reconsideration of the issue.

DATES: Comments. Comments must be received on or before April 22, 2015.
    Public Hearing. If the EPA holds a public hearing, the EPA will 
keep the record of the hearing open for 30 days after completion of the 
hearing to provide an opportunity for submission of rebuttal and 
supplementary information. If requested by March 30, 2015, we will hold 
a public hearing on April 7, 2015, from 1:00 p.m. (Eastern Standard 
Time) to 5:00 p.m. (Eastern Standard Time) at the U.S. Environmental 
Protection Agency building located at 109 T.W. Alexander Drive, 
Research Triangle Park, NC 27711. Please contact Ms. Virginia Hunt of 
the Sector Policies and Programs Division (E143-01), Office of Air 
Quality Planning and Standards, Environmental Protection Agency, 
Research Triangle Park, NC 27711; telephone number: (919) 541-0832; to 
request a hearing, register to speak at the hearing or to inquire as to 
whether or not a hearing will be held. The last day to pre-register in 
advance to speak at the hearing will be April 6, 2015. Additionally, 
requests to speak will be taken the day of the hearing at the hearing 
registration desk, although preferences on speaking times may not be 
able to be fulfilled. If you require the service of a translator or 
special accommodations such as audio description, we ask that you pre-
register for the hearing, as we may not be able to arrange such 
accommodations without advance notice. The hearing will provide 
interested parties the opportunity to present data, views or arguments 
concerning the proposed action. The EPA will make every effort to 
accommodate all speakers who arrive and register. Because this hearing 
is being held at a U.S. government facility, individuals planning to 
attend the hearing should be prepared to show valid picture 
identification to the security staff in order to gain access to the 
meeting room. Please note that the REAL ID Act, passed by Congress in 
2005, established new requirements for entering federal facilities. If 
your driver's license is issued by Alaska, American Samoa, Arizona, 
Kentucky, Louisiana, Maine, Massachusetts, Minnesota, Montana, New 
York, Oklahoma or the state of Washington, you must present an 
additional form of identification to enter the federal building. 
Acceptable alternative forms of identification include: Federal 
employee badges, passports, enhanced driver's licenses and military 
identification cards. In addition, you will need to obtain a property 
pass for any personal belongings you bring with you. Upon leaving the 
building, you will be required to return this property pass to the 
security desk. No large signs will be allowed in the building, cameras 
may only be used outside of the building and demonstrations will not be 
allowed on federal property for security reasons. The EPA may ask 
clarifying questions during the oral presentations, but will not 
respond to the presentations at that time. Written statements and 
supporting information submitted during the comment period will be 
considered with the same weight as oral comments and supporting 
information presented at the public hearing. Verbatim transcripts of 
the hearing and written statements will be included in the docket for 
the rulemaking. The EPA will make every effort to follow the schedule 
as closely as possible on the day of the hearing; however, please plan 
for the hearing to run either ahead of schedule or behind schedule. 
Again, a hearing will not be held on this rulemaking unless requested. 
A hearing needs to be requested by March 30, 2015. Please contact Ms. 
Virginia Hunt of the Sector Policies and Programs Division (E143-01), 
Office of Air Quality Planning and Standards, Environmental Protection 
Agency, Research Triangle Park, NC 27711; telephone number: (919) 541-
0832.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2010-0505, by one of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the online instructions for submitting comments.
     Email: a-and-r-docket@epa.gov. Include Docket ID No. EPA 
HQ-OAR-2010-0505 in the subject line of the message.
     Fax: (202) 566-9744. Attention Docket ID No. EPA HQ-OAR 
2010-0505.
     Mail: Environmental Protection Agency, EPA Docket Center 
(EPA/DC), Mailcode 28221T, Attention Docket ID No. OAR-2010-0505, 1200 
Pennsylvania Ave. NW., Washington, DC 20460.
     Hand/Courier Delivery: EPA Docket Center, Room 3334, EPA 
WJC West Building, 1301 Constitution Avenue NW., Washington, DC 20004. 
Such deliveries are only accepted during the Docket's normal hours of 
operation, and special arrangements should be made for deliveries of 
boxed information.

[[Page 15181]]

    Instructions. Direct your comments to Docket ID Number EPA-HQ-OAR-
2010-0505. The EPA's policy is that all comments received will be 
included in the public docket without change and may be made available 
online at www.regulations.gov, including any personal information 
provided, unless the comment includes information claimed to be 
Confidential Business Information (CBI) or other information whose 
disclosure is restricted by statute. Do not submit information that you 
consider to be CBI or otherwise protected through www.regulations.gov 
or email. (See section I.C. below for instructions on submitting 
information claimed as CBI.) The www.regulations.gov Web site is an 
``anonymous access'' system, which means the EPA will not know your 
identity or contact information unless you provide it in the body of 
your comment. If you submit an electronic comment through 
www.regulations.gov, the EPA recommends that you include your name and 
other contact information in the body of your comment and with any disk 
or CD-ROM you submit. If the EPA cannot read your comment due to 
technical difficulties and cannot contact you for clarification, the 
EPA may not be able to consider your comment. If you send an email 
comment directly to the EPA without going through www.regulations.gov, 
your email address will be automatically captured and included as part 
of the comment that is placed in the public docket and made available 
on the Internet. Electronic files should avoid the use of special 
characters or any form of encryption and be free of any defects or 
viruses. For additional information about the EPA's public docket, 
visit the EPA Docket Center homepage at: www.epa.gov/epahome/dockets.htm. The petitioners need not resubmit their previous comment, 
which will be considered before the EPA takes final action on today's 
re-proposal. However, the EPA welcomes additional comments and/or 
information the petitioners may wish to provide.
    Docket. The EPA has established a docket for this rulemaking under 
Docket ID No. EPA-HQ-OAR-2010-0505. All documents in the docket are 
listed in the www.regulations.gov index. Although listed in the index, 
some information is not publicly available, e.g., CBI or other 
information whose disclosure is restricted by statute. Certain other 
material, such as copyrighted material, is not placed on the Internet 
and will be publicly available only in hard copy. Publicly available 
docket materials are available either electronically in 
www.regulations.gov or in hard copy at the EPA Docket Center, EPA WJC 
West Building, Room 3334, 1301 Constitution Ave. NW., Washington, DC. 
The Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday 
through Friday, excluding legal holidays. The telephone number for the 
Public Reading Room is (202) 566-1744, and the telephone number for the 
EPA Docket Center is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Mr. Bruce Moore, Sector Policies and 
Programs Division (E143-05), Office of Air Quality Planning and 
Standards, Environmental Protection Agency, Research Triangle Park, 
North Carolina 27711, telephone number: (919) 541-5460; facsimile 
number: (919) 685-3200; email address: moore.bruce@epa.gov.

SUPPLEMENTARY INFORMATION:

I. General Information

A. Does this reconsideration action apply to me?

    Categories and entities potentially affected by today's action 
include:

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           Category              NAICS code \1\                   Examples of regulated entities
----------------------------------------------------------------------------------------------------------------
Industry                                  211111  Crude Petroleum and Natural Gas Extraction.
                                          211112  Natural Gas Extraction.
                                          221210  Natural Gas Distribution.
                                          486110  Pipeline Distribution of Crude Oil.
                                          486210  Pipeline Transportation of Natural Gas.
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Federal government                                Not affected.
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State/local/tribal government                     Not affected.
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\1\ North American Industry Classification System.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be affected by this 
action. If you have any questions regarding the applicability of this 
action to a particular entity, consult either the air permitting 
authority for the entity or your EPA regional representative as listed 
in 40 CFR 60.4 (General Provisions).

B. How do I obtain a copy of this document and other related 
information?

    In addition to being available in the docket, an electronic copy of 
this action is available on the World Wide Web (WWW). Following 
signature by the EPA Administrator, a copy of this proposed action will 
be posted at the following address: http://www.epa.gov/airquality/oilandgas/actions.html.

C. What should I consider as I prepare my comments for the EPA?

    We seek comment only on the aspects of the final NSPS for the Oil 
and Natural Gas Sector specifically identified in this proposed rule. 
We are not opening for reconsideration any other provisions of the NSPS 
at this time.
    Do not submit CBI to the EPA through www.regulations.gov or email. 
Clearly mark the part or all of the information that you claim to be 
CBI. For CBI contained on a disk or CD-ROM that you mail to the EPA, 
mark the outside of the disk or CD-ROM as CBI and then identify 
electronically within the disk or CD-ROM the specific information that 
is claimed as CBI. In addition to one complete version of the comments 
that includes information claimed as CBI, you must submit a copy of the 
comments that does not contain the information claimed as CBI for 
inclusion in the public docket. If you submit a CD-ROM or disk that 
does not contain CBI, clearly mark the outside of the disk or CD-ROM as 
not containing CBI. Information not marked as CBI will be included in 
the public docket and the EPA's electronic public docket without prior 
notice. Information marked as CBI will not be disclosed except in 
accordance with the procedures set forth in 40 CFR part 2. Send or 
deliver information identified as CBI only to the following address: 
OAQPS Document Control Officer (C404-02), OAQPS, U.S. Environmental 
Protection Agency, Research Triangle Park, North Carolina,

[[Page 15182]]

27711, Attention Docket ID No. EPA-HQ-OAR-2010-0505.

II. Background

A. Low Pressure Gas Wells

    On August 23, 2011 (76 FR 52758), the EPA proposed the Oil and 
Natural Gas Sector NSPS (40 CFR part 60, subpart OOOO). Among the 
elements of the proposed rule were provisions for reduced emission 
completion (REC), also known as ``green completion'' of hydraulically 
fractured gas wells. In the proposal, the EPA solicited comment on 
situations where conducting an REC would be infeasible. Several 
commenters highlighted technical issues that prevent the implementation 
of an REC on what they referred to as ``low pressure'' gas wells 
because of the lack of the necessary reservoir pressure to flow at 
rates appropriate for the transportation of solids and liquids from a 
hydraulically fractured gas well completion against additional back-
pressure which would be caused by the REC equipment. Based on our 
analysis of the public comments received, we determined that there are 
certain wells where an REC is infeasible because of the characteristics 
of the reservoir and the well depth that will not allow the flowback to 
overcome the gathering system pressure due to the additional back 
pressure imposed by the REC surface equipment. On August 16, 2012, the 
EPA published the final NSPS (see 77 FR 49490). Based on comments 
received in response to our solicitation at proposal, we provided at 
Sec.  60.5375(f) of the 2012 final NSPS that ``low pressure gas wells'' 
(i.e., those wells for which an REC would not be feasible because of a 
combination of well depth, reservoir pressure and flow line pressure) 
would not be required to meet the requirements for recovery of gases 
and liquids required under Sec.  60.5375(a), except as provided in 
Sec.  60.5375(f)(2) which subjects wildcat, delineation and low 
pressure gas wells to requirements for combustion of flowback emissions 
and to the general duty to safely maximize resource recovery and 
minimize releases to the atmosphere required under Sec.  60.5375(a)(4). 
Under the NSPS, low pressure wells are treated the same as exploratory 
and delineation wells (i.e., they are not required to perform an REC). 
We also added a definition of ``low pressure gas well'' in the final 
rule that is based on a mathematical formula that takes into account a 
well's depth, reservoir pressure and flow line pressure. Section 
60.5430 defines low pressure gas well as ``a well with reservoir 
pressure and vertical well depth such that 0.445 times the reservoir 
pressure (in psia) minus 0.038 times the vertical well depth (in feet) 
minus 67.578 psia is less than the flow line pressure at the sales 
meter.''
    Following publication of the 2012 final NSPS, a group of 
petitioners, led by the Independent Petroleum Association of America 
(IPAA), representing independent oil and natural gas owners and 
operators, submitted a joint petition for administrative 
reconsideration of the 2012 NSPS. The petitioners questioned the 
technical merits of the low pressure well definition and asserted that 
the public had not had an opportunity to comment on the definition 
because it was added in the final rule. The petitioners expressed 
concern that the formula adopted in the 2012 NSPS was based on 
``questionable assumptions'' and ``sparse data'' and will ``exclude 
from its scope many gas wells drilled in formations that historically 
have been recognized as `low pressure.''' In the view of the 
petitioners, ``the 2012 definition has the potential to directly affect 
many smaller producers, who are less likely to be able to bear the 
costs of implementing costly RECs.'' \1\ However, the administrative 
petition did not identify which assumptions were questionable and why, 
or what additional data the petitioners consider necessary to support 
the EPA's ``low pressure gas well'' definition.
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    \1\ Letter from James D. Elliott, Spilman, Thomas & Battle PLLC, 
to Lisa P. Jackson, EPA Administrator, October 15, 2012; Petition 
for Administrative Reconsideration of Final Rule ``Oil and Gas 
Sector: New Source Performance Standards and National Emission 
Standards for Hazardous Air Pollutants Reviews,'' 77 FR 49490 
(August 16, 2012).
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    On March 24, 2014, the petitioners submitted to the EPA a suggested 
alternative definition \2\ for consideration. The petitioners' 
definition is based on the fresh water hydrostatic gradient of 0.433 
pounds per square inch per foot (psi/ft). The petitioners assert that 
this approach is straightforward and has been recognized for many years 
in the oil and natural gas industry and by governmental agencies and 
professional organizations. As expressed in the paper submitted by the 
petitioners, the alternative definition for consideration by the EPA, 
as stated by the petitioners, would be ``a well where the field 
pressure is less than 0.433 times the vertical depth of the deepest 
target reservoir and the flow-back period will be less than three days 
in duration.''
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    \2\ Email from James D. Elliott, Spilman, Thomas & Battle PLLC, 
to Bruce Moore, EPA, March 24, 2014.
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    On July 17, 2014, the EPA proposed clarifying amendments to the gas 
well completion provisions of the NSPS. In the July proposal, we 
expressed concern that the IPAA alternative definition is too 
simplistic and may not adequately account for the parameters that must 
be considered when determining whether an REC would be feasible for a 
given hydraulically fractured gas well. We expressed disagreement with 
the petitioners' assertion that the EPA definition is too complicated 
and that it would pose difficulty or hardship for smaller operators. 
However, we agreed with the petitioners that the public should have 
been provided an opportunity to comment on the 2012 definition of ``low 
pressure gas well,'' and we re-proposed the 2012 definition for notice 
and comment in the July 17, 2014, proposal. In addition, we solicited 
comment on the alternative definition suggested by the petitioners.
    On August 18, 2014, prior to the close of the public comment period 
for the July 17, 2014, proposal, the IPAA, on behalf of the independent 
oil and natural gas owner and operator petitioners, submitted a comment 
to the EPA via the email address to the Air and Radiation Docket 
provided in the proposed rule. This timely submitted comment addressed 
the following: (1) Clarification that the petitioners' primary concern 
is that the EPA's definition would require REC to be performed on 
marginally cost-effective wells, and not that the calculation required 
by the EPA's definition would impose a hardship; (2) whether it was the 
petitioners' burden to justify the assumptions on which the EPA's 
definition was based; (3) accuracy of the Turner equation used in the 
development of the EPA's definition; (4) technical derivation of the 
petitioners' definition; and (5) relationship between low pressure gas 
wells and EPA's stages of flowback as proposed in the July 17, 2014, 
proposal.
    The EPA published final amendments in the Federal Register at 79 FR 
79018 on December 31, 2014, which finalized the definition of ``low 
pressure gas well'' unchanged from the 2012 definition. Subsequent to 
the December 31, 2014, publication of the final amendments, the EPA 
became aware that the comment submitted by the IPAA was not made part 
of the record in the docket and, thus, was not available to be 
considered by the EPA in its decision-making process prior to 
finalizing the amendments.

B. Storage Vessels Connected in Parallel

    In the December 31, 2014, final rule, the EPA had finalized 
amendments to

[[Page 15183]]

the NSPS to address, among other issues, the affected facility status 
of storage vessel affected facilities that are removed from service and 
storage vessels being returned to service. The final action included 
amendments related to storage vessels ``connected in parallel'' or 
``installed in parallel.'' As we explained in the final rule preamble 
(see 79 FR 79027, December 31, 2014), ``Although we believe it is an 
unlikely occurrence, we note that, when two or more storage vessels 
receive liquids in parallel, the total throughput is shared between or 
among the parallel vessels and, in turn, this causes the PTE of each 
vessel to be a fraction of the total PTE.'' To address such isolated 
occurrences where storage vessels are installed or connected to reduce 
PTE and, therefore, avoid being subject to subpart OOOO, we amended the 
NSPS to address situations in which two or more storage vessels could 
be installed or connected in parallel which could, in some cases, lower 
the PTE of the individual storage vessels to levels below the 6 tons 
per year (tpy) applicability threshold provided in Sec.  60.5365(e). 
Specifically, we amended Sec.  60.5365(e)(4) to provide that a storage 
vessel that is being placed into service, and is connected in parallel 
with a storage vessel affected facility, is immediately subject to the 
same requirements as the affected facility with which it is being 
connected in parallel. We also amended the definitions for ``returned 
to service'' and ``storage vessel'' in Sec.  60.5430 to provide that 
two or more storage vessels connected in parallel are considered 
equivalent to a single storage vessel with throughput equal to the 
total throughput of the storage vessels connected in parallel.
    Following publication of the December 2014 final rule, we became 
aware that the terms ``connected in parallel'' and ``installed in 
parallel'' inadvertently include in storage vessels beyond those we 
attempted to address as described above. On February 19, 2015, the Gas 
Processors Association (GPA) submitted a petition for administrative 
reconsideration of the December 31, 2014, amendments. The GPA asserted 
that ``it is quite common for multiple storage vessels to be situated 
next to each other and connected in parallel. Sometimes the storage 
vessels are operated in parallel, sometimes they are operated in 
series, and sometimes they are operated one-at-a-time with the 
connecting valves closed.'' The GPA further asserted that this 
configuration has existed for decades and that ``this language 
potentially has large impacts to how our members evaluate affected 
facility status.''
    For the reasons discussed above, we are proposing to remove the 
regulatory provisions relative to storage vessels ``installed in 
parallel'' or ``connected in parallel.'' Instead, we solicit comment on 
other approaches to help avoid or discourage installation or operation 
of storage vessels that would unnecessarily reduce the potential to 
emit (PTE) of a single storage vessel.

III. Today's Action

    In this action, the EPA is re-proposing for notice and comment the 
same definition of ``low pressure gas well'' that was finalized in 2012 
and re-proposed in the July 17, 2014, proposal. In addition, as in the 
2014 proposal, we are soliciting comment on the petitioners' 
alternative definition as presented above. We note that the EPA has now 
made the comment submitted by the IPAA on August 18, 2014, part of the 
record in the docket; therefore, it is not necessary for the IPAA to 
resubmit this comment in response to this proposed rule. However, the 
EPA welcomes the submittal of any additional comments by the 
petitioners and other interested parties. We are in the process of 
evaluating the IPAA comments. In this proposal, we solicit further 
comments on both the EPA proposed definition and on the IPAA 
alternative definition. We seek comment on (1) gas wells that are not 
considered ``low pressure gas wells'' based on the re-proposed EPA 
definition, but for which RECs are technically infeasible, and the 
specific well characteristics or other technical factors that make RECs 
technically infeasible; (2) gas wells that are considered ``low 
pressure gas wells'' based on the IPAA alternative definition, but for 
which RECs could be performed; and (3) specific well parameters or 
drilling techniques that should be considered in determining whether an 
REC would be technically feasible and how these factors could be used 
to define ``low pressure gas well.''
    With regard to storage vessels, in response to the GPA petition and 
in light of the considerations discussed above, we are proposing to 
amend the NSPS provisions relative to storage vessels ``installed in 
parallel'' or ``connected in parallel.'' Specifically, we are proposing 
to amend Sec.  60.5365(e) to remove language related to storage vessels 
``installed in parallel'' or ``connected in parallel.'' We are also 
proposing to amend the definitions of ``returned to service'' and 
``storage vessel'' in Sec.  60.5430 to remove language pertaining to 
storage vessels connected in parallel. We solicit comment on other 
approaches to help avoid or discourage installations or operations of 
storage vessels that would unnecessarily reduce the PTE of a single 
storage vessel.

IV. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

A. Executive Order 12866: Regulatory Planning and Review and Executive 
Order 13563: Improving Regulation and Regulatory Review

    This action is not a significant regulatory action and was, 
therefore, not submitted to the Office of Management and Budget (OMB) 
for review.

B. Paperwork Reduction Act (PRA)

    This action does not impose an information collection burden under 
the PRA. OMB has previously approved the information collection 
activities contained in the existing regulations and has assigned OMB 
control number 2060-0673. This action does not change the information 
collection requirements previously finalized and, as a result, does not 
impose any additional burden on industry.

C. Regulatory Flexibility Act (RFA)

    I certify that this action will not have a significant economic 
impact on a substantial number of small entities under the RFA. This 
action will not impose any requirements on small entities. This action 
is a reconsideration of an existing rule and imposes no new impacts or 
costs.

D. Unfunded Mandates Reform Act (UMRA)

    This action does not contain any unfunded mandate as described in 
UMRA, 2 U.S.C. 1531-1538, and does not significantly or uniquely affect 
small governments. The action imposes no enforceable duty on any state, 
local or tribal governments or the private sector.

E. Executive Order 13132: Federalism

    This action does not have federalism implications. It will not have 
substantial direct effects on the states, on the relationship between 
the national government and the states, or on the distribution of power 
and responsibilities among the various levels of government.

F. Executive Order 13175: Consultation and Coordination With Indian 
Tribal Governments

    This action does not have tribal implications as specified in 
Executive

[[Page 15184]]

Order 13175. This action is a reconsideration of an existing rule and 
imposes no new impacts or costs. Thus, Executive Order 13175 does not 
apply to this action.

G. Executive Order 13045: Protection of Children From Environmental 
Health Risks and Safety Risks

    The EPA interprets Executive Order 13045 as applying only to those 
regulatory actions that concern environmental health or safety risks 
that the EPA has reason to believe may disproportionately affect 
children, per the definition of ``covered regulatory action'' in 
section 2-202 of the Executive Order. This action is not subject to 
Executive Order 13045 because it does not concern an environmental 
health risk or safety risk.

H. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, because it is 
not a significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

J. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    The EPA believes the human health or environmental risk addressed 
by this action will not have potential disproportionately high and 
adverse human health or environmental effects on minority, low-income 
or indigenous populations because it does not affect the level of 
protection provided to human health or the environment. This action is 
a reconsideration of an existing rule and imposes no new impacts or 
costs.

List of Subjects in 40 CFR Part 60

    Administrative practice and procedure, Air pollution control, 
Environmental protection, Intergovernmental relations, Reporting and 
recordkeeping.

    Dated: March 17, 2015.
Gina McCarthy,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I of the 
Code of Federal Regulations is proposed to be amended as follows:

PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

0
1. The authority citation for part 60 continues to read as follows:

    Authority: 42 U.S.C. 7401, et seq.

Subpart OOOO--Standards of Performance for Crude Oil and Natural 
Gas Production, Transmission and Distribution

0
2. Section 60.5365 is amended by revising paragraph (e) to read as 
follows:


Sec.  60.5365  Am I subject to this subpart?

* * * * *
    (e) Each storage vessel affected facility, which is a single 
storage vessel located in the oil and natural gas production segment, 
natural gas processing segment or natural gas transmission and storage 
segment, and has the potential for VOC emissions equal to or greater 
than 6 tpy as determined according to this section by October 15, 2013 
for Group 1 storage vessels and by April 15, 2014, or 30 days after 
startup (whichever is later) for Group 2 storage vessels, except as 
provided in paragraphs (e)(1) through (4) of this section. The 
potential for VOC emissions must be calculated using a generally 
accepted model or calculation methodology, based on the maximum average 
daily throughput determined for a 30-day period of production prior to 
the applicable emission determination deadline specified in this 
section. The determination may take into account requirements under a 
legally and practically enforceable limit in an operating permit or 
other requirement established under a Federal, State, local or tribal 
authority.
    (1) For each new, modified or reconstructed storage vessel 
receiving liquids pursuant to the standards for gas well affected 
facilities in Sec.  60.5375, including wells subject to Sec.  
60.5375(f), you must determine the potential for VOC emissions within 
30 days after startup of production.
    (2) A storage vessel affected facility that subsequently has its 
potential for VOC emissions decrease to less than 6 tpy shall remain an 
affected facility under this subpart.
    (3) For storage vessels not subject to a legally and practically 
enforceable limit in an operating permit or other requirement 
established under Federal, state, local or tribal authority, any vapor 
from the storage vessel that is recovered and routed to a process 
through a VRU designed and operated as specified in this section is not 
required to be included in the determination of VOC potential to emit 
for purposes of determining affected facility status, provided you 
comply with the requirements in paragraphs (e)(3)(i) through (iv) of 
this section.
    (i) You meet the cover requirements specified in Sec.  60.5411(b).
    (ii) You meet the closed vent system requirements specified in 
Sec.  60.5411(c).
    (iii) You maintain records that document compliance with paragraphs 
(e)(3)(i) and (ii) of this section.
    (iv) In the event of removal of apparatus that recovers and routes 
vapor to a process, or operation that is inconsistent with the 
conditions specified in paragraphs (e)(3)(i) and (ii) of this section, 
you must determine the storage vessel's potential for VOC emissions 
according to this section within 30 days of such removal or operation.
    (4) For each new, reconstructed, or modified storage vessel with 
startup, startup of production, or which is returned to service, 
affected facility status is determined as follows: If a storage vessel 
is reconnected to the original source of liquids or is used to replace 
any storage vessel affected facility, it is a storage vessel affected 
facility subject to the same requirements as before being removed from 
service, or applicable to the storage vessel affected facility being 
replaced immediately upon startup, startup of production, or return to 
service.
* * * * *
0
3. Section 60.5430 is amended by revising the definitions of ``Returned 
to Service'' and ``Storage Vessel'' to read as follows:


Sec.  60.5430  What definitions apply to this subpart?

* * * * *
    Returned to service means that a Group 1 or Group 2 storage vessel 
affected facility that was removed from service has been:
    (1) Reconnected to the original source of liquids or has been used 
to replace any storage vessel affected facility; or
    (2) Installed in any location covered by this subpart and 
introduced with crude oil, condensate, intermediate hydrocarbon liquids 
or produced water.
* * * * *
    Storage vessel means a tank or other vessel that contains an 
accumulation of crude oil, condensate, intermediate hydrocarbon 
liquids, or produced water, and that is constructed primarily of 
nonearthen materials (such as wood, concrete, steel, fiberglass, or 
plastic) which provide structural support. A well completion vessel 
that receives recovered liquids from a well after startup of production 
following

[[Page 15185]]

flowback for a period which exceeds 60 days is considered a storage 
vessel under this subpart. A tank or other vessel shall not be 
considered a storage vessel if it has been removed from service in 
accordance with the requirements of Sec.  60.5395(f) until such time as 
such tank or other vessel has been returned to service. For the 
purposes of this subpart, the following are not considered storage 
vessels:
    (1) Vessels that are skid-mounted or permanently attached to 
something that is mobile (such as trucks, railcars, barges or ships), 
and are intended to be located at a site for less than 180 consecutive 
days. If you do not keep or are not able to produce records, as 
required by Sec.  60.5420(c)(5)(iv), showing that the vessel has been 
located at a site for less than 180 consecutive days, the vessel 
described herein is considered to be a storage vessel from the date the 
original vessel was first located at the site. This exclusion does not 
apply to a well completion vessel as defined in this section.
    (2) Process vessels such as surge control vessels, bottoms 
receivers or knockout vessels.
    (3) Pressure vessels designed to operate in excess of 204.9 
kilopascals and without emissions to the atmosphere.
* * * * *
[FR Doc. 2015-06593 Filed 3-20-15; 8:45 am]
BILLING CODE 6560-50-P


