Oil and Gas Maintenance, Startup, and Shutdown

1. Oil and Gas Maintenance, Startup, and Shutdown Erin Selvera, J.D., Special Assistant Air Permits Division Texas Commission on Environmental Quality 2014 Environmental Trade Fair

2. Permit by rule (PBR) • Std. Permit • NSR Options for Permitting Oil and Gas MSS

3. 106.352 (i) • 106.359 Oil and Gas MSSPBR Options

4. PBR § 106.352(i) specifies MSS Requirements Barnett Shale PBR

5. Projects and dependent facilities constructed on or after April 1, 2011located in the 15 county Barnett Shale area. MSS requirements effective January 5, 2014. • Facilities outside the Barnett Shale area on a voluntary basis • May not be used at a site or for facilities authorized under 30 TAC §116.111 if planned MSS has already been authorized under that permit. Applicability

6. Calculate Emissions • Keep Records • Engine/compressor startups have additional limitations Key Requirements

7. Rules Adopted: October 23, 2013 • Requirements Apply: January 5, 2014 New PBR § 106.359

8. Use §106.359 with: • §106.352(l) or its predecessors • §106.492 Flares • §106.512 Stationary Engines and Turbines • §116.620 Standard Permit Installation and/or Modification of Oil and Gas Facilities • Case-by-case NSR permits – in certain circumstances • At Title V sites Applicability

9. Use a different authorization mechanism for MSS if you are using one of these construction authorizations: • §106.355 Pipeline Metering, Purging, and Maintenance • §106.352 (a)-(k) Barnett Shale PBR • Subsections (a)-(k) Non-Rule Standard Permit • Case-by-case NSR permits – in certain circumstances Applicability

10. MSS activities can be broken into two groups • Lower emitting activities and facilities in (b)(1)-(6) • Activities and facilities with the potential for higher levels of emissions (b)(7)-(10) Activities and Facilities

11. (1) engine, compressor, turbine, and other combustion facilities maintenance; (2) repair, adjustment, calibration, lubrication, and cleaning of site process equipment; (3) replacement of piping components, pneumatic controllers, boiler refractories, wet and dry seals, meters, instruments, analyzers, screens, and filters; (4) turbine or engine component swaps; (5) piping used to bypass a facility during maintenance; (6) planned MSS activities with the same character and quantity of emissions as those listed in paragraphs(1-5) of this subsection; Lower Emitting Activities

12. (7) pigging and purging of piping; (8) blowdowns; (9) emptying, purging, degassing, or refilling of process equipment, storage tanks and vessels (except landing floating roof tanks for convenience purposes), if subparagraphs (A-C) are met; (10) abrasive blasting, surface preparation, and surface coating of facilities and structures. Higher Emitting Activities

13. Facilities must be maintained in good condition and operated properly • Develop a Maintenance Program to address • cleaning and routine inspection of all equipment • repair of equipment • training for appropriate personnel • records of conducted planned MSS activities Best Management Practices

14. §106.4 emission limits • §106.8 recordkeeping requirements • Other requirements if in a nonattainment area PBR Other Requirements NSR

15. Check your calculations for both MSS emissions and production emissions if using all PBRs • Claim the PBR • No Registration Required = No Fee • Certify if needed What Else Should You Consider When Authorizing MSS?

16. Default number for lower emitting activities and facilities • Calculation Spreadsheet • Maintenance Program Templates • FAQs • General MSS Guidance Changes Coming Soon Guidance and Tools

17. Non-rule Air Quality Standard Permit for Oil and Gas Handling and Production Facilities Oil and Gas MSSStandard Permit Option

18. Projects and dependent facilities constructed on or after April 1, 2011located in the 15 county Barnett Shale area. MSS requirements effective January 5, 2014. • Facilities outside the Barnett Shale area on a voluntary basis • May not be used at a site or for facilities authorized under 30 TAC §116.111 if planned MSS has already been authorized under that permit. Applicability

19. Calculate Emissions • Keep Records • Engine/compressor startups have additional limitations Key Requirements

20. Approach • BACT • Impacts • Federal Issues Oil and Gas MSSNSR Option

21. www.TexasOilAndGasHelp.org • Sign up for e-mail updates: Oil and Gas Compliance-Resources Updates • airog@tceq.texas.gov • Air Permits main line: (512) 239-1250 For more oil and gas specific information

22. Erin Selvera Air Permits Division 512-239-6033 erin.selvera@tceq.texas.gov Questions

24. What’s New in Oil and Gas? Joe Shine Air Permits Division Texas Commission on Environmental Quality Environmental Trade Fair 2014

25. Topics for Discussion • Small Crude Site Registrations • ePermits • New Enhanced Application Review • Batch Submittals • Preferred Order for Submittals

26. Small Crude Oil Sites

27. Small Crude Oil Sites • Must be a production site primarily for crude oil • Equipment • Atmospheric separators • Storage tanks • Loading

28. Small Crude Oil Sites Must meet all of the following: • 20 bbl/day crude oil • 300bbl/day water • Max 10,000 ppm H2S (1/4 mile limit) • Loading: submerged and dedicated normal • Minimum vent heights (> 20 feet)

29. Small Sites Default Emissions

30. Small Crude Oil SitesCalculation Formulas

31. ePermitting • Current projects in ePermitting • Historical notification • New/existing notifications • New/existing Level 1 and 2 registrations • New/existing Non-rule Standard Permit registrations

32. ePermitting(continued) • Current projects in ePermitting • New/revision §106.352(l) • New/existing Standard Permit §116.620 • New §106.263 • APD certifications • Well completion/flowback notification

33. 106.352 (a-k) & Non-Rule Standard Permit • Section (f) • Requires notification and registration through ePermits • June 1st, 2014 this will be enforced • Barnett Shale Counties Only

34. Enhanced Application Review (E.A.R) • Purpose • Email Notification • airog@tceq.texas.gov • Expectations • Default delivery for approval letters will be through email unless specified otherwise.

35. Auto Deficiency • Beginning June 1st, 2014

36. Batch Submittals

37. Submitting the Application

38. Application Admin. Documents Preferred Order • Cover letter • Core Data Form • PI-7, PI-7-CERT, APD-CERT • Copy of check or ePay voucher

39. When Do I Need to Certify? • Emission limitations for Title V applicability • Federal applicability • Control/destruction efficiency claims • Operating hours

40. Application Technical Documents Preferred Order • Introduction • Table of Contents • Process and flow diagram • Summary of emissions • Emission calculations • Impact analysis/ NAAQS • Applicability • Lab analysis • Maps • Tables

41. Summary of Emissions

42. Application Technical Documents Preferred Order • Introduction • Table of Contents • Process and flow diagram • Summary of emissions • Emission calculations • Impact analysis/ NAAQS • Applicability • Lab analysis • Maps • Tables

43. AnalysisSite Specific/Representative • Guidance at www.TexasOilandGasHelp.org • Three criteria • Reservoir/formation • API gravity • Process/treatment

44. Application Technical Documents Preferred Order • Introduction • Table of Contents • Process and flow diagram • Summary of emissions • Emission calculations • Impact analysis/ NAAQS • Applicability • Lab analysis • Maps • Tables

45. All Registration Authorizations 10+ calendar years

46. Questions? airog@tceq.texas.gov Air Permits main line: (512) 239-1250