Part 71 Minor Source Transition Policy

2/11/2010 e-mail from EPA R8 to Marathon Oil Company regarding implementation of the "Part 71 50% PTE Transition Policy." Link to the policy memo is included at the end of the post.

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Mr. Blanco,

EPA Region 8 received your letters dated February 10, 2009, announcing Marathon Oil's intention of utilizing the Part 71 50% PTE Transition Policy. Three facilities were identified in your submittals:

--Wolding 14-24H Oil & Gas Production Facility operating on the Fort Berthold Reservation

--Jay Sandstrom 34-31H Oil & Gas Production Facility operating on the Fort Berthold Reservation

--AH 34-23H Oil and Gas Production Facility operating on the Fort Berthold Reservation.

The purpose of the Transition Policy is allow those sources not otherwise subject to Part 71 permitting whose PTE is less than 50% of the trigger level for Part 71 (100 tpy) to avoid part 71 permitting until such time that a minor pre-construction permitting program is promulgated for sources operating in Indian Country.

This policy does not apply to avoiding pre-construction PSD permitting or NESHAP standards. It only applies to avoiding the Part 71 operating permit program for those sources who are not subject to any other CAA requirements and whose actual emissions for the previous year are less than or equal to 50 tpy. Please note that Part 71 is triggered upon start-up and an application is due with in one year of the start-up date.

Examples of ways that facilities can otherwise trigger Part 71 as defined in 71.3 and in the transition policy memo you attached to each of your letters, includes:

-- Any major source. Major source as defined in Part 71 includes major PSD and NESHAP sources.

-- Any source (including minor sources) subject to NSPS (part 60) requirements promulgated after July 21, 1992 unless the NSPS specifically exempts minor sources from Part 71 permitting.

-- Any source (including minor sources)subject to NESHAP (part 61 and 63 ) requirements promulgated after July 21, 1992 unless the NESHAP specifically exempts minor sources from Part 71 permitting.

-- Any Acid Rain source

You have identified each of these facilities as having potential uncontrolled VOC emissions of 106.82, 102.94 and 135.65 tons per year each, respectively; and actual VOC emissions of 25.18, 25.18, and 35.97
tpy, respectively. In addition, your submittal states that these facilities are not otherwise subject to Part 71.

Based on the information you provided, it appears these facilities are eligible for the Part 71 permitting exemption under the Part 71 50% PTE Transition Policy.

Please be aware that upon promulgation of the Federal Minor New Source Review Permitting program for sources located in Indian Country, the 50% PTE Policy will no longer be in effect. All facilities that utilized
this policy will be required to submit a minor NSR application to the EPA to make the actual emissions legally enforceable.

If you have any questions, please feel free to call or email me.

Kathy

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Kathleen Paser
Region 8 Air Program
303-312-6526
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US EPA Region 8
1595 Wynkoop Street
M/C 8P-AR
Denver, Colorado 80202
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Link to 1999 Transition Policy Memo