Review of New Sources and Modifications in Indian Country: Federal Implementation Plan for Managing Air Emissions from True Minor Sources Engaged in Oil and Natural Gas Production in Indian Country, 56553-56576 [2015-21025]

Download as PDF Vol. 80 Friday, No. 181 September 18, 2015 Part II Environmental Protection Agency mstockstill on DSK4VPTVN1PROD with PROPOSALS3 40 CFR Parts 49, 51, 52, et al. Oil and Natural Gas; Proposed Rules and Notice VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 PO 00000 Frm 00001 Fmt 4717 Sfmt 4717 E:\FR\FM\18SEP3.SGM 18SEP3 56554 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules ENVIRONMENTAL PROTECTION AGENCY 40 CFR Parts 49 [EPA–HQ–OAR–2014–0606; FRL–9931–75– OAR] RIN 2060–AS27 Review of New Sources and Modifications in Indian Country: Federal Implementation Plan for Managing Air Emissions from True Minor Sources Engaged in Oil and Natural Gas Production in Indian Country Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing a federal implementation plan (FIP) that would apply to new true minor sources and minor modifications at existing true minor sources in the production segment of the oil and natural gas sector that are locating or expanding in Indian reservations or in other areas of Indian country over which an Indian tribe, or the EPA, has demonstrated the tribe’s jurisdiction. The FIP would satisfy the minor source permitting requirement under the ‘‘Federal Minor New Source Review (NSR) Program in Indian Country’’ (referred to as the ‘‘Federal Indian Country Minor NSR rule’’). The FIP proposes to require emission limitations and other requirements from certain federal emission standards as written at the time of construction or modification for compression ignition and spark ignition engines, compressors (reciprocating and centrifugal), fuel storage tanks, fugitive emissions from well sites and compressor stations, glycol dehydrators, hydraulically fractured oil and gas well completions, pneumatic controllers in production, pneumatic pumps, process heaters and storage vessels. The EPA is also proposing several amendments to the Federal Indian Country Minor NSR rule, including adding new text regarding the purpose of the program, revising the program overview provision, establishing a compliance deadline of October 3, 2016, revising certain provisions to incorporate compliance with the FIP, revising the applicability provision to establish that sources are required to comply with the FIP unless they opt to obtain a source-specific permit or are otherwise required to obtain a sourcespecific permit, and revising the source registration provision. Also, we are revising the definition of Indian country mstockstill on DSK4VPTVN1PROD with PROPOSALS3 SUMMARY: VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 to comport with a court decision that addressed EPA’s jurisdiction to implement the Federal Indian Country Minor NSR rule: Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014). This court decision also affects the definition of Indian country under the Federal Major New Source Review Program in Indian Country so we are changing the definition under the Federal Indian Country Major NSR rule as well. DATES: Comments. Comments must be received on or before November 17, 2015. Public Hearing. The EPA will hold a public hearing on this proposed action. Details will be announced in a separate notice. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–HQ– OAR–2014–0606, to the Federal eRulemaking Portal: https:// www.regulations.gov. Follow the online instructions for submitting comments. Once submitted, comments cannot be edited or withdrawn. The EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. The EPA will generally not consider comments or comment contents located outside of the primary submission (i.e., on the web, cloud or other file sharing system). For additional submissions, and general guidance on making effective comments, please visit https:// www2.epa.gov/dockets/commentingepa-dockets. Docket. 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, 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/DC), Room 3334, EPA WJC West Building, 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, PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 and the telephone number for the Air Docket is (202) 566–1742. FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stoneman, Outreach and Information Division, Office of Air Quality Planning and Standards (C– 304–01), Environmental Protection Agency, Research Triangle Park, North Carolina, 27711, telephone number (919) 541–0823, facsimile number (919) 541–0072, email address: stoneman.chris@epa.gov. For questions about the oil and natural gas new source performance standards (NSPS) proposed action,1 please contact Mr. Bruce Moore, Sector Policies and Programs Division, Office of Air Quality Planning and Standards (E–143–01), Environmental Protection Agency, Research Triangle Park, North Carolina, 27711, telephone number (919) 541–5460, facsimile number (919) 541–4312, email address: moore.bruce@epa.gov. For questions about the proposed action on the oil and natural gas source determination,2 please contact Ms. Cheryl Vetter, Air Quality Policy Division, Office of Air Quality Planning and Standards (C504– 03), Environmental Protection Agency, Research Triangle Park, North Carolina, 27711, telephone number (919) 541– 4391, facsimile number (919) 541–541– 4312, email address: vetter.cheryl@ epa.gov. For questions about the applicability of this action to a particular source, please contact the appropriate EPA region: • EPA Region 5 (Illinois, Indiana, Michigan, Minnesota, Ohio, and Wisconsin)—Ms. Genevieve Damico, Air Permits Section, Environmental Protection Agency, Region 5, Chicago, Illinois 60604; telephone (312) 353– 4761; fax (312) 385–5501; email address: damico.genevieve@epa.gov. • EPA Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma, and Texas)— Ms. Bonnie Braganza, Air Permits Section, Multimedia Permitting and Planning Division, Environmental Protection Agency Region 6, Dallas, Texas 75202; telephone number (214) 665–7340; fax number (214) 665–6762; email address: braganza.bonnie@ epa.gov. • EPA Region 8 (Colorado, Montana, North Dakota, South Dakota, Utah, and Wyoming)—Ms. Claudia Smith, Air Program, Mail Code 8P–AR, Environmental Protection Agency Region 8, Denver, Colorado 80202; 1 ‘‘Emission Standards for New and Modified Sources in the Oil and Natural Gas Sector,’’ signed August 18, 2015, https://www.epa.gov/airquality/ oilandgas/actions.html. 2 ‘‘Source Determination for Certain Emission Units in the Oil and Natural Gas Sector,’’ signed August 18, 2015, https://www.epa.gov/airquality/ oilandgas/actions/html. E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules telephone number (303) 312–6520; fax number (303) 312–6520; email address: smith.claudia@epa.gov. • EPA Region 9 (Arizona, California, Hawaii, Nevada, and Pacific Islands)— Ms. Lisa Beckham, Permits Office, Air Division, Air-3, Environmental Protection Agency Region 9, San Francisco, California 94105; telephone number (415) 972–3811; fax number (415) 947–3579; email address: beckham.lisa@epa.gov. • All other EPA regions—The permit reviewer for minor sources in Indian country for your EPA region. You can find the list of the EPA permit reviewers at: https://www.epa.gov/air/tribal/ tribalnsr.html. Scroll down to the heading, ‘‘Existing Source Registration,’’ and click on ‘‘Reviewing Authority’’ to access ‘‘Environmental Protection Agency’s Reviewing Authorities for Permits.’’ The information presented in this preamble is organized as follows: SUPPLEMENTARY INFORMATION: I. General Information A. What entities are potentially affected by this proposal? B. What should I consider as I prepare my comments to the EPA? C. Where can I get a copy of this document and other related information? II. Purpose A. Proposed Oil and Natural Gas FIP B. Proposed Amendments to the Federal Indian Country Minor NSR Rule III. Background A. Tribal Air Rule B. Federal Indian Country Minor NSR Rule C. General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country—Final Rules D. EPA Actions Affecting Oil and Natural Gas Minor Sources in areas covered by the Federal Indian Country Minor NSR Rule E. What is a FIP? F. Oil and Natural Gas Sector IV. Summary of Proposed Oil and Natural Gas FIP A. Overview B. What are the proposed FIP requirements? C. Site-Specific Permits V. Summary of Proposed Amendments to the Federal Indian Country Minor NSR Rule VI. Implementation Issues A. Requirements Relating to Threatened or Endangered Species and Historic Properties B. What is the effect of this FIP on other Indian Country FIPs? VII. Rationale for Proposed FIP A. Why are we choosing a FIP as an alternative to site-specific permits, general permits and permits by rule? B. How did we select which equipment to include in this proposed FIP? C. Why are we excluding existing sources from this proposed oil and natural gas FIP? D. Why is the EPA extending the permitting deadline for oil and natural gas true minor sources in areas covered by the Federal Indian Country Minor NSR rule? VIII. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive 56555 Order 13563: Improving Regulation and Regulatory Review B. Paperwork Reduction Act (PRA) C. Regulatory Flexibility Act (RFA) D. Unfunded Mandates Reform Act (UMRA) E. Executive Order 13132: Federalism F. Executive Order 13175: Consultation and Coordination with Indian Tribal Governments G. Executive Order 13045: Protection of Children from Environmental Health Risks and Safety Risks H. Executive Order 13211: Actions that Significantly Affect Energy Supply, Distribution, or Use I. National Technology Transfer and Advancement Act (NTTAA) J. Executive Order 12898: Federal Actions to Address Environmental Justice in Minority Populations and Low-Income Populations I. General Information A. What entities are potentially affected by this proposal? Entities potentially affected by this proposal consist of owners and operators of facilities included in the following source categories that are located, or planning to locate, in an Indian reservation or in another area of Indian country (as defined in 18 U.S.C. 1151) over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction where there is no EPAapproved program in place and that are subject to the requirements of the Federal Indian Country Minor NSR rule. TABLE 1—SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION NAICS Code a Industry category 21111 Crude Petroleum and Natural Gas Extraction .............................. 211111 Natural Gas Liquid Extraction ....................................................... mstockstill on DSK4VPTVN1PROD with PROPOSALS3 Oil and Gas Production/Operations .............................................. 211112 Drilling Oil and Gas Wells ............................................................ 213111 VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 PO 00000 Frm 00003 Fmt 4701 Examples of regulated entities/description of industry category Exploration for crude petroleum and natural gas; drilling, completing, and equipping wells; operation of separators, emulsion breakers, desilting equipment, and field gathering lines for crude petroleum and natural gas; and all other activities in the preparation of oil and gas up to the point of shipment from the producing property. Production of crude petroleum, the mining and extraction of oil from oil shale and oil sands, the production of natural gas, sulfur recovery from natural gas, and the recovery of hydrocarbon liquids from oil and gas field gases. Exploration, development and/or the production of petroleum or natural gas from wells in which the hydrocarbons will initially flow or can be produced using normal pumping techniques or production of crude petroleum from surface shales or tar sands or from reservoirs in which the hydrocarbons are semisolids. Recovery of liquid hydrocarbons from oil and gas field gases; and sulfur recovery from natural gas. Drilling oil and gas wells for others on a contract or fee basis, including spudding in, drilling in, redrilling, and directional drilling. Sfmt 4702 E:\FR\FM\18SEP3.SGM 18SEP3 56556 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules TABLE 1—SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION—Continued NAICS Code a Industry category Support Activities for Oil and Gas Operations ............................. 213112 Engines (Spark Ignition and Compression Ignition) for Electric Power Generation. 2211 ** a North Performing support activities on a contract or fee basis for oil and gas operations (except site preparation and related construction activities) such as exploration (except geophysical surveying and mapping); excavating slush pits and cellars, well surveying; running, cutting, and pulling casings, tubes, and rods; cementing wells, shooting wells; perforating well casings; acidizing and chemically treating wells; and cleaning out, bailing, and swabbing wells. Provision of electric power to support oil and natural gas production where access to the electric grid is unavailable. American Industry Classification System. This list is not intended to be exhaustive, but rather provides a guide for readers regarding entities likely to be potentially affected by this action. To determine whether your facility could be affected by this action, you should examine the applicability criteria in the final Federal Minor NSR Program in Indian Country (40 Code of Federal Regulations (CFR) 49.153), as well as the proposed FIP applicability in 40 CFR 49.101. If you have any questions regarding the applicability of this action to a particular entity, contact the appropriate person listed in the FOR FURTHER INFORMATION CONTACT section. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 Examples of regulated entities/description of industry category B. What should I consider as I prepare my comments to the EPA? Submitting CBI. Do not submit this information to the EPA through regulations.gov or email. Clearly mark the part or all of the information that you claim to be CBI. For CBI information in 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 comment that includes information claimed as CBI, a copy of the comment that does not contain the information claimed as CBI must be submitted for inclusion in the public docket. Information so marked will not be disclosed except in accordance with procedures set forth in 40 CFR part 2. Send or deliver information identified as CBI to only the following address: Ms. Tiffany Purifoy, c/o OAQPS Document Control Officer (Mail Code C404–02), U.S. EPA, Research Triangle Park, NC 27711, Attention Docket ID No. EPA–HQ– OAR–2014–0606. Coordination of Comments on Four Actions Affecting Oil and Natural Gas Sector. The EPA is proposing three rules that affect sources in the oil and natural gas sector. One is today’s proposed rule, the oil and natural gas FIP for new true VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 minor sources and minor modifications at existing true minor sources for Indian country. The other two proposed rules are the 2015 proposed 40 CFR part 60, subpart OOOOa rulemaking, which updates the oil and natural gas NSPS, and the proposed rule addressing oil and natural gas source determinations for NSR purposes.3 In addition, the EPA is making available for public review and comment a draft Control Techniques Guidelines (CTG) for the Oil and Natural Gas Source Category document.4 We welcome comments on all four of these actions. To help us respond more efficiently to public comments on this proposal, we request that commenters submit comments addressing the oil and natural gas NSPS signed on August 18, 2015 to the docket for the oil and natural gas NSPS, Docket ID No. EPA–HQ–OAR–2010–0505. Please do not send comments on the proposed oil and natural gas NSPS to the docket for this proposed FIP. Comments addressing the 2015 proposed oil and natural gas NSPS would include comments, for example, about the level of proposed control for the oil and natural gas NSPS. For this proposal, we request comments on the concept of relying on the oil and natural gas NSPS (and other applicable EPA rules) for the oil and natural gas FIP for Indian country. We request that comments on this concept and other comments applicable to this proposed FIP be submitted to the docket (Docket ID No. EPA–HQ–OAR–2014–0606). In addition, on September 18, 2015, the EPA proposed to amend 40 CFR parts 51, 52, 70, and 71 to address major 3 ‘‘Oil and Natural Gas Sector: Emission Standards for New and Modified Sources,’’ signed August 18, 2015, and ‘‘Source Determination for Certain Emission Units in the Oil and Natural Gas Sector,’’ signed August 18, 2015, https:// www.epa.gov/airquality/oilandgas/actions.html. 4 Draft Control Techniques Guidelines for the Oil and Natural Gas Source Category, signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/ actions.html. PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 source determinations for oil and gas extraction facilities for NSR purposes.5 All comments related to source determinations for oil and gas extraction facilities should be addressed to Docket ID No. EPA–HQ–OAR–2013–0685. Finally, all comments on the draft oil and natural gas CTG document should be addressed to Docket ID No. EPA– HQ–OAR–2015–0216. We have incorporated by reference Docket ID No. EPA–HQ–OAR–2010– 0505 and Docket ID No. EPA–HQ–OAR– 2013–0685 into DOCKET ID No. EPA– HQ–OAR–2014–0606. Comments submitted to Docket ID No. EPA–HQ– OAR–2010–0505 and Docket ID No. EPA–HQ–OAR–2013–0685 will be part of the official record for this oil and natural gas FIP proposed action. Docket. The docket number for this action is Docket ID No. EPA–HQ–OAR– 2014–0606. World Wide Web (WWW). In addition to being available in the docket, an electronic copy of this document will be posted on the WWW. Following signature, the EPA will post a copy of this document at: https://www.epa.gov/ airquality/oilandgas/actions.html, https://www.epa.gov/nsr (regulations and standards section of the NSR home page), and at: https://www.epa.gov/air/ tribal/tribalnsr.html (tribal NSR page). Preparing Comments. When submitting comments, remember to: • Identify the rulemaking by docket number and other identifying information (subject heading, Federal Register date and page number). • Respond to specific questions and link comments to specific CFR references when appropriate. • Explain why you agree or disagree and suggest alternatives. Include specific regulatory text that implements your requested changes. 5 ‘‘Source Determination for Certain Emission Units in the Oil and Natural Gas Sector,’’ signed August 18, 2015, https://www.epa.gov/airquality/ oilandgas/actions.html. E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules • Explain technical information and/ or data that you used to as the basis of your comment and provide references to the supporting information. • If you estimate potential costs or burdens, explain how you arrived at your estimate in sufficient detail to allow for it to be reproduced. • Provide specific examples to illustrate your concerns and suggest alternatives. • Explain your views as clearly as possible, avoiding the use of profanity or personal threats. • Make sure to submit your comments by the comment period deadline identified. C. Where can I get a copy of this document and other related information? In addition to being available in the docket, an electronic copy of this proposal will also be available on the WWW. Following signature by the EPA Administrator, a copy of this notice will be posted on the regulations and standards section of the NSR home page located at: https://www.epa.gov/nsr, on the tribal NSR page at: https:// www.epa.gov/air/tribal/tribalnsr.html, and at the oil and natural gas air pollution standards page at https:// www.epa.gov/airquality/oilandgas/ actions.html. II. Purpose A. Proposed Oil and Natural Gas FIP We are proposing a FIP for new true minor sources and minor modifications at existing true minor sources in the production segment of the oil and natural gas sector that are locating or expanding in an Indian reservation or in another area of Indian country over which a tribe, or the EPA, has demonstrated that the tribe has jurisdiction. The FIP would apply to new and modified true minor sources that are located or expanding in the referenced areas of Indian country designated as unclassifiable, attainment, or attainment/unclassifiable. It would not apply to new and modified true minor sources that are located or expanding in referenced areas of Indian country designated nonattainment. (Requirements for such areas would be addressed through site-specific minor NSR permitting and/or separate, reservation-specific FIPs.). This FIP would be used instead of site-specific permits to fulfill the EPA’s obligation under the Federal Indian Country Minor NSR rule to issue minor NSR preconstruction permits. The FIP would provide a streamlined, alternative approach addressing the permitting requirement, while also ensuring air quality protection through requirements that are unambiguous and legally and practicably enforceable. The FIP would reduce burden for sources and the Reviewing Authority and prevent delays in new construction due to the minor NSR permitting obligation. True minor sources in the oil and natural gas sector would be required to comply with the FIP instead of being required to obtain a minor source permit, unless a source chooses to opt out of the FIP and to obtain a site- 56557 specific minor NSR permit instead. In addition, the Reviewing Authority could require a source to obtain a site-specific permit based on local or reservationspecific air quality concerns where the emissions from the source could cause or contribute to a National Ambient Air Quality Standards (NAAQS) or increment violation. To protect the NAAQS, the Reviewing Authority could regulate emissions from operations at the minor source not regulated by the proposed FIP or could require more stringent emission limitations for operations at the source regulated by the proposed FIP. In this FIP, we are proposing to require owners and operators of oil and natural gas production facilities to comply with six federal standards to reduce emissions of volatile organic compounds (VOC), nitrogen oxides (NOX), sulfur dioxide (SO2), particulate matter (PM, PM10, PM2.5), hydrogen sulfide (H2S), carbon monoxide (CO) and various sulfur compounds from: compression ignition and spark ignition engines, compressors (reciprocating and centrifugal), fuel storage tanks, fugitive emissions from well sites and compressor stations, glycol dehydrators, hydraulically fractured oil and gas well completions, pneumatic controllers in production, pneumatic pumps, process heaters and storage vessels. The proposed oil and natural gas FIP requires compliance with four NSPS and two national emission standards for hazardous air pollutants (NESHAP). These rules are listed in Table 2. TABLE 2—SIX FEDERAL RULES INCORPORATED BY REFERENCE IN THE PROPOSED OIL AND NATURAL GAS FIP FOR INDIAN COUNTRY 6 40 CFR part and subpart Title of subpart Potentially affected sources in the production segment Location 40 CFR part 63, subpart DDDDD .. National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters. Standards of Performance for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels) for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984. Standards of Performance for Stationary Compression Ignition Internal Combustion Engines. Process heaters ............................ https://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb41 7f5386519941a 47&mc=true&node=sp40.14.63. ddddd&rgn=div6 https://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb4 17f5386519941a47&mc =true&node=sp40.7.60. k_0b&rgn=div6 mstockstill on DSK4VPTVN1PROD with PROPOSALS3 40 CFR part 60, subpart Kb .......... 40 CFR part 60, subpart IIII ........... 6 Two of the six rules are NESHAPs. Our basis for requiring compliance with NESHAPs in this rule that is designed to fulfill requirements of the VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 Fuel Storage Tanks ...................... Compression Ignition Combustion Engines. Federal Indian Country Minor NSR rule is primarily to address criteria pollutants. These two NESHAPs control VOC and/or NOX. VOC and NOX are NSR- PO 00000 Frm 00005 Fmt 4701 Sfmt 4702 Internal https://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9 cb417f5386519941a47&mc =true&node=sp40.7.60. iiii&rgn=div6 regulated pollutants of concern in the Federal Indian Country Minor NSR rule. E:\FR\FM\18SEP3.SGM 18SEP3 56558 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules TABLE 2—SIX FEDERAL RULES INCORPORATED BY REFERENCE IN THE PROPOSED OIL AND NATURAL GAS FIP FOR INDIAN COUNTRY 6—Continued Title of subpart Potentially affected sources in the production segment Location 40 CFR part 60, subpart JJJJ ....... Standards of Performance for Stationary Spark Ignition Internal Combustion Engines. Spark Ignition Internal Combustion Engines. 40 CFR part 60, subpart OOOOa (proposed). Standards for New and Modified Sources in the Oil and Natural Gas Sector. Storage Vessels, Pneumatic Controllers, Compressors (Reciprocating and Centrifugal), Hydraulically Fractured Oil and Gas Well Completions, Pneumatic Pumps and Fugitive Emissions from Well Sites and Compressor Stations. https://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb417f5 386519941a47&mc=true&node =sp40.7.60.jjjj&rgn=div6 https://www.epa.gov/airquality/ oilandgas/actions.html 40 CFR part 63, subpart HH ......... mstockstill on DSK4VPTVN1PROD with PROPOSALS3 40 CFR part and subpart National Emission Standards for Hazardous Air Pollutants from Oil and Natural Gas Production Facilities. Glycol Dehydrators ....................... For purposes of this FIP, we are proposing that compliance with these rules would effectively satisfy the NSR requirements. Therefore, we are proposing that true minor oil and natural gas sources subject to these standards must comply with these standards as they currently exist and as they may be amended, except for those provisions that we specifically exclude. (This proposed FIP does not change the applicability of the specified standards, nor does it relieve sources subject to the standards from complying with them, independently of this FIP.) We are seeking comment on the concept of relying on these EPA standards as written at the time construction or modification of the source is begun for the requirements of the proposed oil and natural gas FIP. The purpose is to protect air quality in Indian reservations and in other areas of Indian country for which an Indian tribe, or the EPA, has demonstrated the tribe’s jurisdiction and are designated as attainment, unclassifiable, or attainment/unclassifiable. It is our intent that oil and natural gas sources in areas covered by the Federal Indian Country Minor NSR rule using the proposed FIP would be subject, for purposes of the proposed FIP, to any amendments to an NSPS or NESHAP, including any amendments to the oil and natural gas NSPS that become part of the final oil and natural gas NSPS as a result of the 2015 proposed oil and natural gas NSPS.7 Sources subject to this proposed FIP would be subject to 7 ‘‘Oil and Natural Gas Sector: Emission Standards for New and Modified Sources,’’ signed August 18, 2015, https://www.epa.gov/airquality/ oilandgas/actions.html. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 any future changes made to these six underlying EPA standards only if they would otherwise be subject to those future changes. To help understand the requirements of this proposed oil and natural gas FIP, please see the 2015 proposed oil and natural gas NSPS and the provisions for each of the six federal rules (i.e., four NSPS and two NESHAP) identified above. B. Proposed Amendments to the Federal Indian Country Minor NSR Rule Today’s action proposes several amendments to the Federal Indian Country Minor NSR rule. First, we are proposing to revise § 49.151(b)(1) to establish as one of the purposes of the Federal Minor NSR Program in Indian Country the incorporation of the FIP (§§ 49.101 through 105) for oil and natural gas production true minor sources located in an Indian reservation or in another area of Indian country over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction. Also, to clarify the purpose of subpart C, we are proposing to revise the subpart heading. Second, we are proposing to revise § 49.151(c)(1)(iii)(A) to conform the registration deadline to the proposed, extended permitting deadline in § 49.151(c)(1)(iii)(B). Third, we are proposing to revise § 49.151(c)(1)(iii)(B) to establish a deadline for when new and modified true minor sources in the production segment of the oil and natural gas sector that are located in an Indian reservation or in another area of Indian country over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction or planning to locate in PO 00000 Frm 00006 Fmt 4701 Sfmt 4702 https://www.ecfr.gov/cgi-bin/textidx?SID=9f31077f895e9cb4 17f5386519941a4 7&mc=true&node=sp40.11.63. hh&rgn=div6 such areas must comply with the FIP in lieu of obtaining a minor NSR permit, unless the source opts for a site-specific minor NSR permit. If a source opts-out of the FIP, then we are proposing to extend the date for when the source must obtain a minor source permit. We are proposing to extend the deadline from March 2, 2016, to October 3, 2016. Fourth, we are proposing to revise § 49.151(d)(1), (2) and (4) to incorporate compliance with the FIP. Fifth, we are proposing to revise §§ 49.153(a)(1)(i)(B) and (ii)(B) to establish that oil and natural gas production true minor sources are required to comply with the FIP, unless a source opts out of the FIP pursuant to § 49.101(b)(2) or is required by the EPA to obtain a source-specific minor source permit pursuant to § 49.101(b)(3). Sixth, we are proposing to revise §§ 49.160(c)(1)(ii) and (iii), to add § 49.160(c)(1)(iv) and to revise § 49.160(c)(4). We are revising § 49.160(c)(1)(ii) to conform the registration deadline to the extended permitting deadline in § 49.151(c)(1)(iii)(B). For § 49.160(c)(1)(iii) and § 49.160(c)(1)(iv), we are establishing that sources subject to the FIP still have to register with the Reviewing Authority, and we describe how to do that. For § 49.160(c)(4), we are proposing to clarify that submitting a registration form does not relieve a source of the requirement to comply with the FIP if the source (or any physical or operational change at the source) would be subject to any minor NSR rule. Finally, we are revising the definition of Indian country in § 49.152(d) to comport with a court decision that E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules addressed EPA’s jurisdiction to implement the Federal Indian Country Minor NSR rule: Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014). This court decision also affects the definition of Indian country under the Federal Major New Source Review Program in Indian Country so we are changing the definition under the Federal Indian Country Major NSR rule in § 49.167. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 III. Background A. Tribal Authority Rule Section 301(d) of the Clean Air Act (CAA) authorizes the EPA to treat Indian tribes in the same manner as states and directs the EPA to promulgate regulations specifying those provisions of the CAA for which such treatment is appropriate. (42 U.S.C.§ 7601(d)(1) and (2)). It also authorizes the EPA, in circumstances in which the EPA determines that the treatment of Indian tribes as identical to states is inappropriate or administratively infeasible, to provide by regulation other means by which the EPA will directly administer the CAA. (42 U.S.C. § 7601(d)(4)) Acting principally pursuant to that authority, on February 12, 1998,8 the EPA promulgated what we refer to as the Tribal Authority Rule (TAR). (40 CFR 49.1–49.11). In the TAR, we determined that it was appropriate to treat tribes in the same manner as states for all CAA and regulatory purposes except a list of specified CAA provisions and implementing regulations thereunder. (40 CFR 49.4) Among those provisions of the CAA for which we determined that tribes will not be treated in the same manner as states are specific plan submittal and implementation deadlines for NAAQSrelated requirements, including the requirement under section 110(a)(2)(c) to submit a program, including a permit program as required in parts C and D of the CAA, to regulate the modification and construction of any stationary source as necessary to assure that the NAAQS are achieved. In the TAR, we also determined that we would not treat tribes in the same manner as states with respect to CAA section 110(a)(1) (State Implementation Plan (SIP) submittal) and CAA section 110(c)(1) (directing the EPA to promulgate a FIP ‘‘within 2 years’’ after we find that a state has failed to submit a required plan, or has submitted an incomplete plan, or within 2 years after we disapproved all or a 8 ‘‘Indian Tribes: Air Quality Planning and Management,’’ U.S. Environmental Protection Agency, 63 FR 7254, February 12, 1998, https:// www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/983451.pdf. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 portion of a plan), among other provisions.9 The TAR preamble clarified that by including CAA section 110(c)(1) on the § 49.4 list, ‘‘EPA is not relieved of its general obligation under the CAA to ensure the protection of air quality throughout the nation, including throughout Indian country. The preamble confirmed that the ‘‘EPA will continue to be subject to the basic requirement to issue a FIP for affected tribal areas within some reasonable time.’’10 In the TAR, we thus exercised our discretionary authority under CAA §§ 301(a) and 301(d)(4) to establish a regulation providing that we would promulgate without unreasonable delay such FIP provisions as are necessary or appropriate to protect air quality (40 CFR 40.11(a)). Section 49.11(a) provides that the EPA will promulgate a FIP as necessary or appropriate to protect tribal air quality within a reasonable time if tribal efforts do not result in adoption and approval of tribal plans or programs.11 On August 21, 2006, acting pursuant to that authority, we proposed the regulation: ‘‘Review of New Sources and Modifications in Indian Country’’ (i.e., Indian Country NSR rule).12 Within this regulation, the EPA proposed to protect air quality in areas covered by the Federal Indian Country Minor NSR rule by establishing a FIP program to regulate the modification and construction of stationary sources consistent with the requirements of section 110(a)(2)(c) of the CAA. We call this part of the Indian Country NSR rule the Federal Indian Country Minor NSR rule. Under the Federal Indian Country Minor NSR rule, we proposed to provide a mechanism for issuing preconstruction permits for the construction of new minor sources and certain modifications of major and minor sources in areas covered by the Federal Indian Country Minor NSR rule. In developing the rule, the EPA conducted extensive outreach and 9 See 40 CFR 49.4(a) and (d) and 63 FR at 7262– 66, February 12, 1998. 10 See CAA section 301(a) and 63 FR at 7265, February 12, 1998. 11 Section 49.11(a) states that the EPA, ‘‘[s]hall promulgate without unreasonable delay such federal implementation plan provisions as are necessary or appropriate to protect air quality, consistent with the provisions of sections 301(a) and 301(d)(4), if a tribe does not submit a tribal implementation plan meeting the completeness criteria of 40 CFR part 51, Appendix V, or does not receive EPA approval of a submitted tribal implementation plan’’ (see 40 CFR 49.11(a)). 12 ‘‘Review of New Sources and Modifications in Indian Country,’’ U.S. Environmental Protection Agency, 71 FR 48696, August 21, 2006, https:// www.gpo.gov/fdsys/pkg/FR-2006-08-21/html/066926.htm. PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 56559 consultation along with a 7-month public comment period that ended on March 20, 2007. The comments provided detailed information specific to Indian country and the final Federal Indian Country Minor NSR rule incorporated many of the suggestions we received. We promulgated final rules on July 1, 2011,13 and the FIP became effective on August 30, 2011. B. Federal Indian Country Minor NSR Rule 1. What is the Federal Indian Country Minor NSR Rule? The Federal Indian Country Minor NSR rule applies to new and modified minor stationary sources and to minor modifications at existing major stationary sources located in Indian country14 where there is no EPAapproved program in place. Tribes can elect to develop and implement their own EPA-approved program under the Tribal Authority Rule (TAR),15 but they are not required to do so.16 In the absence of an EPA-approved tribal program, the EPA implements the program. Alternatively, tribes can take administrative delegation of the federal program from the EPA and become the Reviewing Authority. 13 ‘‘Review of New Sources and Modifications in Indian Country,’’ U.S. Environmental Protection Agency, 76 FR 38748, July 1, 2011, https:// www.federalregister.gov/articles/2011/07/01/201114981/review-of-new-sources-and-modifications-inindian-country. 14 The Federal Indian Country Minor NSR rule defines ‘‘Indian country’’ to include three categories of lands consistent with 18 U.S.C. 1151, i.e., Indian reservations, dependent Indian communities, and Indian allotments. The U.S. Court of Appeals for the District of Columbia Circuit vacated the rule with respect to non-reservation areas of Indian country (i.e., dependent Indian communities and Indian allotments) (Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The court held that the state, not tribes or the EPA, has initial primary responsibility for implementation plans under CAA section 110 in non-reservation areas of Indian country in the absence of a demonstration of tribal jurisdiction by the EPA or a tribe. The rule, therefore, does not apply in nonreservation areas of Indian country unless a tribe or the EPA has demonstrated that a tribe has jurisdiction in a particular non-reservation area of Indian country. 15 To be eligible to develop and implement an EPA-approved program, under the Tribal Authority Rule a tribe must meet four requirements: (1) Be a federally-recognized tribe; (2) have a functioning government carrying out substantial duties and powers; (3) propose to carry out functions pertaining to air resources of the reservation or other areas within the tribe’s jurisdiction; and (4) be reasonably expected to be capable of carrying out the program. For more information go to: ‘‘Indian Tribes: Air Quality Planning and Management,’’ U.S. Environmental Protection Agency, 63 FR 7254, February 12, 1998, https://www.gpo.gov/fdsys/pkg/ FR-1998-02-12/pdf/98-3451.pdf. 16 Tribes can also establish permit fees under a tribal permitting program, as do most states. E:\FR\FM\18SEP3.SGM 18SEP3 56560 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules Beginning September 2, 2014,17 any new stationary source that will emit, or will have the potential to emit (PTE), a regulated NSR pollutant in amounts that will be: (a) Equal to or greater than the minor NSR thresholds, established in the Federal Indian Country Minor NSR rule; and (b) less than the amount that would qualify the source as a major source or a major modification for purposes of the Prevention of Significant Deterioration (PSD) or nonattainment major NSR programs, must apply for and obtain a minor NSR permit before beginning construction of the new source. Likewise, any existing stationary source (minor or major) must apply for and obtain a minor NSR permit before beginning construction of a physical or operational change that will increase the allowable emissions of the stationary source by more than the specified threshold amounts, if the change does not otherwise trigger the permitting requirements of the PSD or nonattainment major NSR program(s).18 In addition, among other things, the Federal Indian Country Minor NSR rule created a framework for the EPA to streamline the issuance of preconstruction permits to true minor sources by using general permits. 2. What are the minor NSR thresholds? NSR pollutant. If a source has a PTE in amounts lower than the thresholds, then it is exempt from the Federal Indian Country Minor NSR rule (see Table 3 and 40 CFR 49.153) for that pollutant. New or modified sources that have a PTE in amounts that are: (1) Equal to or greater than the minor NSR thresholds; and (2) less than the major NSR thresholds (generally 100 or 250 tons per year (tpy)) are ‘‘minor sources’’ of emissions and subject to the Federal Indian Country Minor NSR rule requirements at 40 CFR 49.151 through 161. The ‘‘minor NSR thresholds’’ establish cutoff levels for each regulated TABLE 3—MINOR NSR THRESHOLDS FOR SOURCES IN INDIAN COUNTRY 19 Minor NSR thresholds for nonattainment areas tpy) Regulated NSR pollutant CO .................................................................................................................................................................................... NOX .................................................................................................................................................................................. SO2 .................................................................................................................................................................................. VOC ................................................................................................................................................................................. PM .................................................................................................................................................................................... PM10 ................................................................................................................................................................................. PM2.5 ................................................................................................................................................................................ Lead ................................................................................................................................................................................. Fluorides .......................................................................................................................................................................... Sulfuric acid mist ............................................................................................................................................................. H2S ................................................................................................................................................................................... Total reduced sulfur (including H2S) ............................................................................................................................... Reduced sulfur compounds (including H2S) ................................................................................................................... Municipal waste combustor emissions ............................................................................................................................ Municipal solid waste landfill emissions (measured as nonmethane organic compounds) ........................................... mstockstill on DSK4VPTVN1PROD with PROPOSALS3 There may be sources that have emissions that are above the emission thresholds defined for a true minor source but which fall below the applicability levels for specific requirements referenced in the FIP. For example, the oil and natural gas sector NSPS, subpart OOOOa, includes a VOC threshold of 6 tpy for storage vessel applicability. In cases where a facility may have VOC emissions above 5 tpy but below 6 tpy, owners or operators would not be subject to the storage vessel provisions but would still be required under the proposed FIP to 17 For oil and natural gas true minor sources, this date was extended to March 2, 2016. This notice proposes to extend it to October 3, 2016. For more information, see: ‘‘Review of New Sources and Modifications in Indian Country Amendments to the Registration and Permitting Deadlines for True Minor Sources,’’ 79 FR 34231, June 16, 2014, https:// www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/201414030.pdf. 18 A source may, however, be subject to certain monitoring, recordkeeping and reporting (MRR) VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 register with their appropriate regional office. 3. What is a true minor source? ‘‘True minor source,’’ under the Federal Indian Country Minor NSR rule, means a source that emits, or has the potential to emit, regulated NSR pollutants in amounts that are less than the major source thresholds under either the PSD Program at 40 CFR 52.21, or the Federal Major NSR Program for Nonattainment Areas in Indian Country at 40 CFR 49.166–49.173, but equal to or greater than the minor NSR thresholds in 40 CFR 49.153, without requirements under the major NSR programs, if the change has a reasonable possibility of resulting in a major modification. A source may be subject to both the Federal Indian Country Minor NSR rule and the reasonable possibility MRR requirements of the major NSR program(s). 19 If part of a tribe’s area of Indian country is designated as attainment and another part as nonattainment, the applicable threshold for a proposed source or modification is determined based on the designation where the source would PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 5 20 5 5 21 2 5 1 0.6 0.1 NA NA NA NA NA NA NA Minor NSR thresholds for attainment areas (tpy) 10 10 10 5 10 5 3 0.1 1 2 2 2 2 2 10 the need to take an enforceable restriction to reduce its PTE to such levels. A source’s PTE includes fugitive emissions, to the extent that they are quantifiable, only if the source belongs to one of the 28 source categories listed in part 51, Appendix S, paragraph II.A.4(iii) or 40 CFR 52.21(b)(1)(iii), as applicable. 4. What is a general permit? The Federal Indian Country Minor NSR rule specified the process and requirements for using general permits to authorize construction and modifications at true minor sources as a be located. If the source straddles the two areas, the more stringent thresholds apply. 20 In extreme ozone nonattainment areas, section 182(e)(2) of the CAA requires any change at a major source that results in any increase in emissions to be subject to major NSR permitting. In other words, any changes to existing major sources in extreme ozone nonattainment areas are subject to a ‘‘0’’ tpy threshold, but that threshold does not apply to minor sources. 21 Id. E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules streamlined permitting approach. A general permit, for purposes of this action, is a permit document that contains standardized requirements that multiple stationary sources can use. The EPA may issue a general permit for categories of emission units or stationary sources that are similar in nature, have substantially similar emissions, and would be subject to the same or substantially similar permit requirements.22 ‘‘Similar in nature’’ refers to size, processes, and operating conditions. The purpose of a general permit is to provide for protection of air quality, while simplifying the permitting process for similar minor sources. General permits offer a costeffective means of issuing permits and provide a quicker and simpler mechanism for permitting minor sources than the site-specific permitting process. 5. What is a permit by rule? Like a general permit, a permit by rule is a standard set of requirements that can apply to multiple stationary sources with similar emissions characteristics. For purposes of this action, a permit by rule would differ from a general permit in that the EPA would codify a permit by rule directly into the Federal Indian Country Minor NSR rule. The process for a source to obtain coverage under a permit by rule is more streamlined compared to a standard general permit, or a site-specific permit. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 C. General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country— Final Rules On May 1, 2015, the EPA published a final rule, ‘‘General Permits and Permits by Rule for the Federal Minor NSR Program in Indian Country for Five Source Categories,’’ to simplify the CAA permitting process for certain smaller sources of air pollution commonly found in Indian country.23 In the action, the EPA finalized general permits for use in areas covered by the Federal Indian Country Minor NSR rule for new or modified minor sources in the following two source categories: Hot mix asphalt plants and stone quarrying, crushing and screening facilities. The 22 ‘‘Review of New Sources and Modifications in Indian Country,’’ U.S. Environmental Protection Agency, 76 FR 38770, July 1, 2011, https:// www.federalregister.gov/articles/2011/07/01/2011– 14981/review-of-new-sources-and-modifications-inindian-country. 23 ‘‘General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country for Five Source Categories,’’ U.S. Environmental Protection Agency, 80 FR 25068, May 1, 2015, https://www.gpo.gov/fdsys/pkg/FR– 2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 EPA also finalized permits by rule for use in areas covered by the Federal Indian Country Minor NSR rule for new or modified minor sources in three source categories: Auto body repair and miscellaneous surface coating operations; gasoline dispensing facilities; and petroleum dry cleaning facilities. The EPA also took final action authorizing the use of general permits established under the program to create synthetic minor sources. On July 17, 2014, the EPA published a proposed rule, ‘‘General Permits and Permits by Rule for the Federal Minor NSR Program in Indian Country,’’ to simplify the CAA permitting process for certain other smaller sources of air pollution commonly found in Indian country.24 In the action, the EPA made available draft general permits for use in areas covered by the Federal Indian Country Minor NSR rule for new or modified minor sources in the following five source categories: Concrete batch plants; boilers; stationary spark ignition engines; stationary compression ignition engines; and sawmill facilities. The EPA also proposed a permit by rule for use in areas covered by the Federal Indian Country Minor NSR rule for new or modified minor sources in the graphic arts and printing operations source category. D. EPA Actions Affecting Oil and Natural Gas Minor Sources in Areas Covered by the Federal Indian Country Minor NSR Rule On January 14, 2014, the EPA published a proposed rule, ‘‘General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country,’’ 25 that included two proposed amendments that affected true minor sources in the production segment of the oil and natural gas sector. The proposed amendments were: (1) The extension of the deadline by which new true minor sources and minor modifications of existing true minor sources in the production segment of the oil and natural gas sector must receive minor NSR permits prior to commencing construction, from September 2, 2014, 24 ‘‘General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country,’’ 79 FR 41846, July 17, 2014, https:// www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/201416814.pdf. 25 The ‘‘General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country’’ was proposed on January 14, 2014 (79 FR 2546). Proposed changes to the Federal Indian Country Minor NSR rule are on pages 79 FR 2570–2572. Electronic copies are available in the docket and in the regulations and standards section of our NSR home page located at https:// www.epa.gov/nsr. PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 56561 to March 2, 2016; and (2) an adjustment to the deadline by which existing true minor sources in the production segment of the oil and natural gas sector must register, from September 2, 2014, to March 2, 2016. On June 16, 2014, the EPA finalized those amendments as proposed.26 On June 5, 2014, the EPA published an advance notice of proposed rulemaking (ANPR).27 The purpose of the ANPR was to solicit broad feedback on the most effective and efficient means of implementing the Federal Minor NSR Program in Indian Country for sources in the production segment of the oil and natural gas sector. In it we discussed alternatives to site-specific permits for new and modified minor sources engaged in oil and natural gas production activities. The EPA requested comments on the alternative approaches and other aspects of managing air emissions from oil and natural gas sources in areas covered by the Federal Indian Country Minor NSR rule. The ANPR asked for public comment on: (1) The inclusion of existing minor source emissions in a FIP; (2) the advantages and disadvantages of available approaches (i.e., FIP, permit by rule, or general permit) to manage emission impacts from the sources in the production segment of the oil and natural gas sector in areas covered by the Federal Indian Country Minor NSR rule; (3) the activities and pollutants that warrant regulation; (4) the coordination of compliance between any approach selected and the Federal Minor NSR Program in Indian Country; and (5) the appropriate emission control requirements. We received 20 comments on the issues raised in the ANPR. Three comments were from tribes; one comment was from a federal government agency; three comments were from environmental groups; ten comments were from oil and natural gas companies or industry trade associations; and three comments were from anonymous commenters. The comments are summarized in a document entitled: ‘‘Summary of Public Comments for Managing Emissions: Oil and Natural Gas Production in Indian Country’’ and can be found in Docket ID 26 For more information, see: ‘‘Review of New Sources and Modifications in Indian Country Amendments to the Registration and Permitting Deadlines for True Minor Sources,’’ 79 FR 34231, June 16, 2014, https://www.gpo.gov/fdsys/pkg/FR2014-06-16/pdf/2014-14030.pdf. 27 For more information, see: ‘‘Managing Emissions from Oil and Natural Gas Production in Indian Country,’’ 79 FR 32502, June 5, 2014, https:// www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/201412951.pdf. E:\FR\FM\18SEP3.SGM 18SEP3 56562 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS3 No. EPA–HQ–OAR–2011–0151, which has been incorporated by reference into the docket for this action, Docket ID No. EPA–HQ–OAR–2014–0606. We reviewed and carefully considered all the comments we received on the ANPR in developing this proposed FIP. Although not presented in a comment and response format, our consideration of the comments is evident throughout the discussions in this preamble. Commenters who wish their comments on the ANPR to also be considered in the development of the final FIP must resubmit those comments to the docket during the open public comment period for this proposed action. On September 18, 2015, the EPA proposed updates to the NSPS for the oil and natural gas sector.28 This proposed FIP adopts the standards from six federal rules, including the oil and natural gas NSPS (see Table 2). Future changes to these rules could affect requirements in the FIP because the proposed FIP adopts all or parts of these six federal emission standards, including future amendments. In addition, on September 18, 2015, the EPA proposed an oil and natural gas source determination rule.29 This action is also connected to this FIP as it would affect how oil and natural gas sources are defined for the purpose of major/ minor source determinations. E. What is a FIP? Under section 302(y) of the CAA, the term ‘‘Federal implementation plan’’ means ‘‘. . . a plan (or portion thereof) promulgated by the Administrator to fill all or a portion of a gap or otherwise correct all or a portion of an inadequacy in a SIP, and which includes enforceable emission limitations or other control measures, means or techniques (including economic incentives, such as marketable permits or auctions of emission allowances), and provides for attainment of the relevant national ambient air quality standard.’’ We interpret the reference to a ‘‘gap’’ in a SIP as including circumstances where a SIP does not apply (i.e., on most Indian reservations and other areas of Indian country over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction) and the relevant tribe has not implemented an EPA-approved plan. SIPs do not apply in these areas. In these circumstances, 28 ‘‘Oil and Natural Gas Sector: Emission Standards for New and Modified Sources,’’ signed August 18, 2015, https://www.epa.gov/airquality/ oilandgas/actions.html. 29 ‘‘Source Determination for Certain Emission Units in the Oil and Natural Gas Sector,’’ signed August 18, 2015, https://www.epa.gov/airquality/ oilandgas/actions.html. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 CAA §§ 301(a) and 301(d)(4) and 40 CFR 49.11(a) authorize the EPA to promulgate FIPs as are necessary or appropriate to protect air quality. The Federal Indian Country Minor NSR rule is an example of a FIP. In that rule, we identified a regulatory gap that could have the effect of adversely impacting air quality due to the lack of approved minor NSR permit programs to regulate construction of new and modified minor sources and minor modifications of major sources in areas covered by the Federal Indian Country Minor NSR rule. The EPA promulgated the FIP to ensure that air resources in areas covered by the Federal Indian Country Minor NSR rule are protected by establishing a preconstruction permitting program to regulate emission increases resulting from construction and modification activities that are not already regulated by the major NSR permitting programs. Because there are also no currently approved TIPs specifically applying to the issuance of general permits with respect to the reduction of emissions related to oil and natural gas production facilities, we believe a FIP is needed to protect air quality in areas covered by the Federal Indian Country Minor NSR rule. This proposed FIP would adopt legally and practicably enforceable requirements to control and reduce air emissions from oil and natural gas production. Therefore, in this rule, we propose to determine that it is necessary or appropriate to exercise our discretionary authority under sections 301(a) and 301(d)(4) of the CAA and 40 CFR 49.11(a) to promulgate a FIP to remedy an existing regulatory gap under the CAA with respect to oil and natural gas production operations in areas covered by the Federal Indian Country Minor NSR rule where there is no EPAapproved plan in place. F. Oil and Natural Gas Sector The oil and natural gas sector includes operations involved in the extraction and production of oil and natural gas, as well as the processing, transmission and distribution of natural gas.30 Specifically for oil, the sector includes all operations from the well to the point of custody transfer to an oil transmission pipeline or other means of transportation to a petroleum refinery. For natural gas, the sector includes all operations from the well to the final end user. The oil and natural gas sector can generally be separated into four segments: (1) Oil and natural gas 30 For a more detailed discussion about the oil and natural gas sector, see the preamble to the ANPR at 79 FR 32505–32508, June 5, 2014. PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 production; (2) natural gas processing; (3) natural gas transmission and storage; and (4) natural gas distribution. The proposed oil and natural gas FIP focuses on the first segment, oil and natural gas production, because we believe the oil and natural gas production segment includes the majority of the true minor sources in the sector that would need to obtain a minor source permit in areas covered by the Federal Indian Country Minor NSR rule. The oil and natural gas production segment includes the wells and all related processes used in the extraction, production, recovery, lifting, stabilization, and separation or treatment of oil and/or natural gas (including condensate). Production components may include, but are not limited to, wells and related casing head, tubing head and ‘‘Christmas tree’’ piping, as well as pumps, compressors, heater treaters, separators, storage vessels, pneumatic devices and natural gas dehydrators. Production operations also include the well drilling, completion and workover processes and include all the portable non-selfpropelled apparatuses associated with those operations. Production sites include not only the sites where the wells themselves are located, but also include centralized gas and/or liquid gathering facilities where oil, condensate, produced water, and natural gas from several wells may be separated, stored, and treated. The production segment also includes the low to medium pressure, smaller diameter, gathering pipelines and related components that collect and transport the oil, natural gas and other materials and wastes from the wells or well pads. The natural gas production segment ends where the natural gas enters a natural gas processing plant. In situations where there is no processing plant, the natural gas production segment ends at the point where the natural gas enters the transmission segment for long-line transport. The crude oil production segment ends at the storage and load-out terminal which is the point of custody transfer to an oil pipeline or for transport of the crude oil to a petroleum refinery via trucks or railcars. The petroleum refinery is not considered part of the oil and natural gas sector. Thus, with respect to crude oil, the oil and natural gas sector ends at point of custody transfer where crude oil enters an oil transmission pipeline or other means of transportation to a petroleum refinery. Pollutants emitted from these activities that would be regulated through the proposed Federal Minor E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules NSR Program in Indian Country (regulated NSR pollutants) include: VOC, NOX, SO2, PM, PM10, PM2.5, H2S, CO and various sulfur compounds. Hydrogen sulfide and SO2 are emitted from production and processing operations that handle and treat sour gas.31 IV. Summary of Proposed Oil and Natural Gas FIP mstockstill on DSK4VPTVN1PROD with PROPOSALS3 A. Overview This proposed oil and natural gas FIP would require owners and operators of new and modified existing minor sources in the oil and natural gas production segment that are located in areas covered by the Federal Indian Country Minor NSR rule to comply with six federal rules. One of the rules this FIP proposes to adopt is certain requirements of the proposed 40 CFR part 60, subpart OOOOa requirements.32 Requirements under proposed NSPS, subpart OOOOa that have been proposed include those requirements that involve oil and natural gas production.33 These six rules are listed in Table 2 and provide requirements for: • Storage vessels; • Pneumatic controllers in production; • Compressors (reciprocating and centrifugal); • Hydraulically fractured oil and gas well completions; • Pneumatic pumps; • Fugitive emissions from well sites and compressor stations; • Glycol dehydrators; • Compression ignition and spark ignition engines; • Fuel storage tanks; and • Process heaters The six rules and the provisions of each that the proposed oil and natural gas FIP would reference are discussed in 31 Sour gas is natural gas with more than 5.7 milligrams of H2S per normal cubic meters (0.25 grains/100 standard cubic feet), see AP–42 Compilation of Air Pollutant Emission Factors, Chapter 5.0 Introduction to Petroleum Industry, Section 5.3 Natural Gas Processing, available at: https://www.epa.gov/ttnchie1/ap42/ch05/final/ c05s03.pdf. 32 Proposed 40 CFR part 60, subpart OOOOa covers the emission sources covered under existing 40 CFR part 60, subpart OOOO, as well as adding coverage of new and modified emission sources beyond those covered in existing 40 CFR part 60, subpart OOOO. These additional sources are hydraulically fractured oil well completions, pneumatic pumps and fugitive emissions from well sites and compressor stations. 33 This list includes centrifugal compressors, reciprocating compressors, pneumatic controllers, pneumatic pumps, fugitive emissions from compressor stations, storage vessels. It excludes sources located in the transmission and storage segment because they are not part of this FIP proposal, which focusses on production. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 more detail in this section. The proposed FIP requirements cover emission limitations and standards, monitoring, and testing and recordkeeping and reporting. For purposes of this FIP, we are proposing that true minor sources subject to these adopted standards must comply with these standards, as they currently exist or as amended in the future, except for those provisions that we specifically exclude under the FIP (unless the source opts-out of the FIP and obtains a source-specific permit). The excluded provisions are listed below. (This FIP does not change the applicability of the specified standards, nor does it relieve sources subject to the standards from complying with them, independently of this FIP.) Also discussed in this section are proposed features of the FIP and proposed amendments to the Federal Indian Country Minor NSR rule. B. What are the proposed FIP requirements? We are proposing for purposes of this FIP, that owners and operators who determine that their new true minor source, or the modification of their existing true minor source, meets the applicability criteria of the proposed FIP must comply with all of the applicable and relevant requirements of the six federal rules listed in Table 2 above as written at the time construction or reconstruction of the source is begun, unless we exclude certain provisions as proposed below. In general, for this proposed FIP, we are proposing to exclude specific provisions of the rules because they are not relevant they would not apply to oil and natural gas production operations (e.g., emission points at natural gas processing plants) or they apply only to manufacturers and not owner/operators. For purposes of this FIP, we are proposing that true minor sources that are subject to 40 CFR part 63, subpart DDDDD (National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters), must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun. For purposes of this FIP, we are proposing that true minor sources that are subject to part 60, subpart IIII— Standards of Performance for Stationary Compression Ignition Internal Combustion Engines, must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 56563 source is begun, except for the following: • § 60.4200(a)(1)—Am I subject to this subpart? (applies to manufacturers); • § 60.4200(b)—Not applicable to stationary ignition internal combustion engine being tested at an engine test cell/stand; • § 60.4200(c)—Am I subject to this subpart? (area sources and exemptions from Title V permits); • § 60.4201—What emission standards must I meet for nonemergency engines if I am a stationary compression ignition internal combustion engine manufacturer?; • § 60.4202—What emission standards must I meet for emergency engines if I am a stationary compression ignition internal combustion engine manufacturer?; • § 60.4203—How long must my engines meet the emission standards if I am a manufacturer of stationary compression ignition internal combustion engines?; • § 60.4210—What are my compliance requirements if I am a stationary compression ignition internal combustion engine manufacturer?; and • § 60.4215—What requirements must I meet for engines used in Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands? For purposes of this FIP, we are proposing that true minor sources that are subject to part 60, subpart JJJJ— Standards of Performance for Stationary Spark Ignition Internal Combustion Engines, must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: • § 60.4230(b)—Not applicable to stationary spark ignition internal combustion engines being tested at an engine test cell/stand; • § 60.4230(c)—Exemption for obtaining a Title V permit if owner or operator of an area source subject to this part; • § 60.4231 and § 60.4232—Emission standards for manufacturers; • § 60.4238 through § 60.4242— Compliance Requirements for Manufacturers; and • § 60.4247—Mobile source provisions that apply to manufacturers of stationary spark ignition internal combustion engines or equipment containing such engines. For purposes of this FIP, we are proposing that true minor sources that are subject to part 60, subpart Kb— Standards of Performance for Volatile Organic Liquid Storage Vessels, must comply with all of the provisions of the standard as written at the time E:\FR\FM\18SEP3.SGM 18SEP3 mstockstill on DSK4VPTVN1PROD with PROPOSALS3 56564 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules construction or reconstruction of the source is begun, except for the following: • § 60.112b(c)—Site-specific standard for Merck & Co., Inc.’s Stonewall Plant in Elkton, Virginia; and • § 60.117b(a) and (b)—Delegation of authority. For purposes of this FIP, we are proposing that true minor sources that are subject to proposed part 60, subpart OOOOa—Standards for New and Modified Sources in the Oil and Natural Gas Sector, must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: • § 60.5365a(f)(3)—Equipment exemption at processing plant; • § 60.5365a(h)(4)—Existing sources constructed after August 23, 2011; • § 60.5370a(c)—Permit exemption; • § 60.5413a(a)(5)—Exemptions from performance testing—hazardous waste incinerator; • § 60.5420a(a)(2)(i)—Advance notification requirements for well completions; and • § 60.5420a(a)(2)(ii)—Advance notification requirements of well completions when subject to state regulation that requires advance notification. For purposes of this FIP, we are proposing that true minor sources that are subject to 40 CFR part 63, subpart HH—NESHAP from Oil and Natural Gas Production Facilities, must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: • § 63.760(a)(2)—Facilities that process, upgrade or store hydrocarbon liquids; • § 63.760(b)(1)(ii)—Each storage vessel with the potential for flash emissions; • § 63.760(b)(1)(iii)—Equipment located at natural gas processing plants; • § 63.760(g)—Recordkeeping for major sources that overlap with other regulations for equipment leaks; • § 63.764(c)(2)–(3)—Requirements for compliance with standards for storage vessels and equipment at natural gas processing plants, respectively; • § 63.766—Storage vessel standards; and • § 63.769—Equipment leak standards. Additionally, we are proposing that prior to beginning construction, under proposed § 49.104, true minor sources are required to address procedures for assessing threatened and endangered species and historic properties. The VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 proposed section provides two options: (1) A site-specific National Environmental Policy Act (NEPA) process has been completed for the specific oil and natural gas activity, and the owner/operator also meets all air quality-related requirements as specified by the decision document (Record of Decision or Finding of No Significant Impact) for its NEPA analysis (these requirements are typically implemented and enforced as conditions of an approved Surface Use Plan of Operations and/or Application for Permit to Drill); or (2) submittal of documentation to the EPA Regional Office (and to the tribe where the source is located/locating) demonstrating that the source has completed the screening processes specified for consideration of threatened and endangered species and historic properties and received a determination from the EPA stating that it has satisfactorily completed these processes. (The processes are contained in the following document: ‘‘Procedures to Address Threatened and Endangered Species and Historic Properties for New or Modified True Minor Oil and Natural Gas Production Sources in Indian Country Complying with the Oil and Natural Gas Minor Source Federal Implementation Plan,’’ https:// www.epa.gov/air/tribal/tribalnsr.html.) C. Site-Specific Permits We are proposing that owners and operators of new and modified true minor oil and natural gas sources that meet all of the following criteria must comply with the requirements contained in §§ 49.101 through 49.105 of this proposed FIP, unless the owner or operator opts-out of the FIP and instead obtains a site-specific permit per proposed §§ 49.101(b)(2) and (3): • The facility is an oil and natural gas production facility as defined in proposed § 49.102; • The oil and natural gas production facility is located in areas covered by the Federal Indian Country Minor NSR rule as defined in § 49.152(d) as proposed to be amended in this action; • The oil and natural gas production facility is a new true minor source or a minor modification of an existing true minor source as determined under § 49.153; • The oil and natural gas production facility begins construction or modification on or after October 3, 2016, the proposed extended permitting deadline date; and • The oil and natural gas production facility is not located in a designated nonattainment area (the proposed FIP would only apply to minor sources in the oil and natural gas sector locating or PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 expanding in areas designated as unclassifiable, attainment, or attainment/unclassifiable). Sources covered by the Federal Indian Country Minor NSR rule that do not meet all of the criteria are, thus, not eligible to use the FIP and must, therefore, obtain a site-specific permit prior to beginning construction, on or after October 3, 2016. If a source owner/operator does not want to comply with the FIP, they have the option to apply for a site-specific permit instead to meet the obligation under 40 CFR 49.151(c)(1)(iii)(B) of the Federal Indian Country Minor NSR rule to obtain a permit prior to commencing construction of a new true minor source or modification of an existing true minor source. As part of the FIP, we are proposing specific rule language in § 49.101(b)(2) to allow true minor sources proposing to construct on or after the proposed, extended deadline date of October 3, 2016, to opt-out of the default FIP if preferred by the owner or operator. We are proposing that an owner/operator of a source otherwise subject to the proposed FIP can opt out and seek a true minor source sitespecific permit under 40 CFR 49.151(c)(1)(iii). We are also proposing that the EPA, or other Reviewing Authority, may require owners or operators to obtain a site-specific permit in lieu of complying with the proposed FIP to ensure protection of the NAAQS. Under § 49.101(b)(3), we are proposing to specify that the Reviewing Authority may require an owner or operator of a source, in certain areas of Indian country proposing to construct on or after October 3, 2016, to apply for a sitespecific permit for a new true minor source or minor modification of an existing true minor source. In particular, the Reviewing Authority may determine that the source is not sufficiently controlled under the proposed FIP to protect the NAAQS in the area of the proposed project (e.g., if the measured design value for the area is close to or above the level of the NAAQS). In that circumstance, the Reviewing Authority can require the minor source to obtain a site-specific permit. The agency recommends at the time of registration, the owner/operator of all new sources or all sources scheduled for modification contact the Reviewing Authority for a review of the air quality status of that area, and the possibility of a requirement for a site specific permit. E:\FR\FM\18SEP3.SGM 18SEP3 mstockstill on DSK4VPTVN1PROD with PROPOSALS3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules V. Summary of Proposed Amendments to the Federal Indian Country Minor NSR Rule Today’s action proposes several amendments to the Federal Indian Country Minor NSR rule. First, we are proposing to revise § 49.151(b)(1) to add new text regarding the purpose of the Federal Minor NSR Program in Indian Country. The revised text indicates that the program satisfies the requirements of section 110(a)(2)(C) of the CAA by establishing a preconstruction permitting program for all new and modified minor sources (minor sources) and minor modifications at major sources located in Indian reservations and other areas of Indian country over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction and where there is no EPAapproved plan in place and by establishing a FIP (§§ 49.101 to 49.105) for oil and natural gas production true minor sources located in such areas of Indian country. Second, we are proposing to revise § 49.151(c)(1)(iii)(A) to conform the registration deadline to the proposed extended permitting deadline in § 49.151(c)(1)(iii)(B). Third, we are proposing to revise § 49.151(c)(1)(iii)(B) to establish a deadline by which new and modified true minor sources in the oil and natural gas sector that are located in or plan to locate in Indian reservations or other areas of Indian country over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction must comply with the FIP in lieu of obtaining a minor NSR permit (or obtain a minor source permit if the source opts out of the FIP). We are proposing to extend the permitting deadline from March 2, 2016, to October 3, 2016. Fourth, we are proposing to revise § 49.151(d)(1), (2) and (4) to incorporate compliance with the FIP. We are proposing to revise § 49.151(d)(1) to indicate that if the owner/operator of a source begins construction of a new source or modification that is subject to this program after the applicable date (September 2, 2014, for all true minor sources, except oil and natural gas sources, and October 3, 2016, for oil and natural gas true minor sources) without applying for and receiving a permit pursuant to this program or complying with the FIP for oil and natural gas production, the owner/operator of the source will be subject to appropriate enforcement action. We are proposing to revise § 49.151(d)(2) to indicate that if you do not construct or operate your source or modification in accordance VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 with the terms of your minor NSR permit or the FIP for oil and natural gas production, you source will be subject to appropriate enforcement action. We are proposing to revise § 49.151(d)(4) to indicate that issuance of a permit or compliance with the FIP for oil and natural gas production does not relieve the owner/operator of a source of the responsibility to comply fully with applicable provisions of any EPAapproved implementation plan or FIP or any other requirements under applicable law. Fifth, we are proposing to revise §§ 49.153(a)(1)(i)(B) and (ii)(B) to establish that oil and natural gas true minor sources are required to comply with the FIP, unless the owner/operator of a source opts-out or is otherwise required by the EPA to obtain a minor source permit. Existing § 49.153(a)(1)(i)(B) requires the owner/ operator of a new source to determine whether the source’s PTE is equal to or greater than the corresponding minor NSR threshold. If it is, then the source is subject to the preconstruction requirements of the Federal Indian Country Minor NSR Permit rule for that pollutant. The proposed amendment adds a clause to the end of the paragraph stating that for oil and natural gas production sources, if the PTE for oil and natural gas production sources is equal to or greater than the corresponding minor NSR threshold, such sources shall instead comply with the requirements of proposed §§ 49.101 to 49.105, unless the owner/operator of the source opts-out of the FIP pursuant to proposed § 49.101(b)(2) or is required by the EPA to obtain a source-specific minor source permit pursuant to proposed § 49.101(b)(3). Existing § 49.153(a)(1)(ii)(B) requires the owner/operator of modified sources to determine whether the increase in allowable emissions resulting from the modification would be equal to or greater than the minor NSR threshold for the pollutant being evaluated. If it is, the source is subject to the preconstruction requirements of the Federal Indian Country Minor NSR rule for that pollutant. The proposed amendment adds a clause to the end of the paragraph stating that, for oil and natural gas production sources, if the PTE for oil and natural gas production sources is equal to or greater than the corresponding minor NSR threshold, such sources shall instead comply with the requirements of proposed §§ 49.101 to 49.105, unless the owner/operator of the source opts-out of the proposed FIP pursuant to proposed § 49.101(b)(2) or is required by the EPA to obtain a minor PO 00000 Frm 00013 Fmt 4701 Sfmt 4702 56565 source permit pursuant to proposed § 49.101(b)(3). Sixth, we are proposing to revise §§ 49.160(c)(1)(ii) and (iii), to add § 49.160(c)(1)(iv) and to revise § 49.160(c)(4). For § 49.160(c)(1)(ii), we are proposing to conform the registration deadline to the proposed extended permitting deadline in § 49.151(c)(1)(iii)(B). For § 49.160(c)(1)(iii), we are proposing language to indicate that if your true minor source is an oil and natural gas source, and you commence construction or modification of your source on or after October 3, 2016, you must report your source’s actual emissions (if available) as part of your permit application or registration of oil and natural gas production sources using a form provided by the EPA (‘‘Registration for New Oil and Natural Gas Minor Sources and Minor Modifications at Existing True Minor Oil and Natural Gas Sources,’’ https://www.epa.gov/air/tribal/ tribalnsr.html). Your permit application or registration form for oil and natural gas production sources will be used to fulfill the registration requirements described in § 49.160(c)(2). This registration should occur each time an existing true minor source that would be subject to the proposed FIP undergoes a modification. For § 49.160(c)(1)(iv), we are proposing to add a paragraph indicating that sources subject to the proposed FIP must still satisfy the requirement to register under the Federal Indian Country Minor NSR rule by using the registration form provided by the EPA that is tailored to the oil and natural gas sector rather than a permit application. The registration form contains the information required in § 49.160(c)(2). After being reviewed by the permitting authority, completed registration forms will be available online on the EPA Regional Office Web sites. For § 49.160(c)(4), we are proposing to add language indicating that submitting a registration form does not relieve a source of the requirement to comply with the FIP for oil and natural gas production if the source or any physical or operational change at the source would be subject to any minor NSR rule. Finally, we are proposing to revise the definition of Indian country in § 49.152 to comport with a court decision that addressed the EPA’s authority to implement the Federal Indian Country Minor NSR rule in areas covered by the Federal Indian Country Minor NSR rule: Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014). This court decision also affects the definition of Indian country under the Federal Major NSR Program in E:\FR\FM\18SEP3.SGM 18SEP3 56566 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules Indian Country so we are changing the definition under the Federal Indian Country Major NSR rule § 49.167. The Federal Indian Country Minor NSR rule and Federal Indian Country Major NSR rule currently define ‘‘Indian country’’ to include three categories of lands consistent with 18 U.S.C. 1151, i.e., Indian reservations, dependent Indian communities, and Indian allotments. The U.S. Court of Appeals for the District of Columbia Circuit vacated the rule with respect to nonreservation areas of Indian country (i.e., dependent Indian communities and Indian allotments) (Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The court held that the states, not tribes or the EPA, have initial primary responsibility for implementation plans under CAA section 110 in non-reservation areas of Indian country in the absence of a demonstration of tribal jurisdiction by the EPA or a tribe. We are proposing to revise the definition of Indian country in §§ 49.152(d) and 49.167 to add a clause indicating that, for purposes of the Federal Indian Country Minor NSR rule and the Federal Indian Country Major NSR rule, references to Indian country include all Indian reservation lands where no EPA-approved program is in place and all other areas of Indian country where no EPA-approved program is in place and over which an Indian tribe, or the EPA, has demonstrated that a tribe has jurisdiction. These proposed changes will address the minor NSR permitting requirements for the affected sources, while reducing the permitting burden through a more efficient and effective means of implementing the requirements. VI. Implementation Issues mstockstill on DSK4VPTVN1PROD with PROPOSALS3 A. Requirements Relating to Threatened or Endangered Species and Historic Properties 1. Overview The Endangered Species Act (ESA) requires federal agencies to ensure, in consultation with the U.S. Fish and Wildlife Service and/or the National Marine Fisheries Service (the Services), that any action they authorize, fund, or carry out will not likely jeopardize the continued existence of any listed threatened or endangered species, or destroy or adversely modify the designated critical habitat of such species. The National Historic Preservation Act (NHPA) requires federal agencies to take into account the effects of their undertakings on historic properties— i.e., properties that are either listed on, VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 or eligible for listing on, the National Register of Historic Places—and to provide the Advisory Council on Historic Preservation (the Council) a reasonable opportunity to comment on such undertakings. In developing the proposed FIP, EPA has considered issues regarding listed species and historic properties and has included provisions designed to ensure appropriate review of potential impacts on the protected resources. Although the individual coverage of each source that would operate under the FIP would not constitute a separate triggering action for ESA or NHPA purposes, we believe that the proposed FIP’s procedures relating to listed threatened or endangered species and historic properties provide an appropriate sitespecific means of addressing issues regarding potential impacts on those resources in connection with sources that could be covered under the FIP. We have provided two options, as described below, for sources to meet the proposed FIP’s requirements regarding these resources. a. Sources for Which a Prior ESA and/ or NHPA Assessment Has Been Completed In most of Indian country, oil and natural gas production activities cannot begin before an owner/operator has obtained an approved application for permit to drill (APD). This authorization will include a National Environmental Policy Act Review (NEPA) 34 review that is typically provided by certain agencies within the U.S. Department of the Interior—the Bureau of Land Management (BLM) and the Bureau of Indian Affairs (BIA), (herein after referred to as ‘‘Federal Land Managers (FLMs)’’ for simplicity).35 Under this review process, BLM is typically responsible for authorizing the mineral rights (i.e., permission to produce oil and/or natural gas) and BIA for authorizing surface activities (i.e., preparing the site for well-drilling activities and operating equipment for the production of oil and/or natural gas). (There are also cases where only one of these agencies will be involved or where another federal agency is involved as well.) Such APD authorizations are considered general triggering actions under the ESA and NHPA, and the FLMs will typically conduct review procedures to ensure that the requirements of these statutes are met. Frequently, these reviews occur 34 The NEPA regulatory requirements can be found at 40 CFR parts 1500–1508. 35 The NEPA review process produces a decision document that is either a Record of Decision or a Finding of No Significant Impact. PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 in connection with an analysis performed by the appropriate FLM.36 Since an oil and gas exploration/ production site involves surface activities and accessing the mineral resource below, thereby potentially requiring an approval from both BLM and BIA, these agencies often enter into agreements where one agency takes the lead in the overall NEPA (and associated ESA and NHPA) review process (i.e., evaluations of the potential impacts regarding mineral rights and surface rights are combined). The lead agency may vary depending on the particular Indian reservation at issue. We believe that a majority of oil and gas activity in areas covered by the Federal Indian Country Minor NSR rule occurs on land within the jurisdiction of these agencies. This means that before an oil and natural gas owner/operator can begin construction under the FIP, the APD must be approved by the FLMs. As part of the NEPA review process, the following steps are generally performed: • For the ESA, impacts to threatened and endangered species and critical habitats are assessed through interaction with local U.S. Fish and Wildlife Service field offices, with appropriate measures put in place to protect those resources. These conditions are incorporated in the FLMs’ authorization. • For the NHPA, impacts to historic properties are evaluated by interaction with State and/or Tribal Historic Preservation Offices. Approval of an action will address any appropriate measures needed to protect a historic property (e.g., production equipment must be located a specified distance from a designated structure/road/etc.). The assessment(s) conducted by the FLMs will likely consider a facility’s air emissions with respect to well drilling, completion, well-pad construction activities and future operations and may require measures to reduce air emissions. In addition to any air pollution measures implemented through the FLM’s NEPA (and associated ESA and NHPA) review, our proposed FIP would require each source to comply with the six federal rules listed in Table 2 above in order to protect ambient air quality. The measures employed under the proposed FIP would require compliance with specific requirements from the NSPS and NESHAP control requirements for the following emission points: compression ignition and spark ignition engines, compressors (reciprocating and centrifugal), fuel storage tanks, fugitive 36 NEPA regulatory requirements can be found at 40 CFR parts 1500–1508. E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules emissions from well sites and compressor stations, glycol dehydrators, hydraulically fractured oil and gas well completions, pneumatic controllers in production, pneumatic pumps, process heaters and storage vessels. We believe the reductions achieved through the required emission controls, by virtue of being protective of ambient air quality, are also protective of threatened and endangered species, their habitats and historic properties. Where the FLM(s) have concluded ESA and/or NHPA compliance as part of the APD process in connection with a particular source—whether as part of the FLM’s NEPA review or otherwise— the source would be able to rely on that prior review for compliance with the proposed FIP’s listed species (if prior ESA compliance has occurred) and historic properties (if prior NHPA compliance has occurred) requirements. No further assessment of impacts on these resources would be required by the proposed FIP as any such assessment would be duplicative of the prior work conducted by the FLM(s). We would require that documentation of completion of the APD process be provided before the owner/operator begins construction under the FIP. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 b. Sources for Which No Prior ESA and/ or NHPA Assessment Has Been Completed For oil and natural gas production activities that do not undergo ESA and/ or NHPA review as part of an authorization from the FLM(s), we propose that those facilities first complete screening procedures relevant to the particular resource that has not previously been reviewed before the owner/operator can begin construction under the proposed FIP. These screening procedures are similar to those currently in place for existing general permits and permits by rule in areas covered by the Federal Indian Country Minor NSR rule before the owner/operator can begin construction under the proposed FIP. Similar to our procedure for general permits and permits by rule, for the proposed FIP, once an owner/operator completes the screening procedures,37 they would submit documentation to the EPA Regional Office and receive written verification of completion before 37 These procedures are available for sources potentially subject to this proposed FIP in a document entitled: ‘‘Procedures to Address Threatened and Endangered Species and Historic Properties for New or Modified True Minor Oil and Natural Gas Production Sources in Indian Country Complying with the Oil and Natural Gas Minor Source Federal Implementation Plan,’’ https:// www.epa.gov/air/tribal/tribalnsr.html. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 56567 applicable CAA FIP, then the requirements in this proposed FIP supersede the requirements for equivalent emission sources in the other FIP. In some cases, other applicable CAA FIPs defer to less stringent requirements in other federal CAA rules to avoid duplicative requirements. Those cases would provide an exception to this general concept. In the case of the FIP for Oil and Natural Gas Well Production Facilities on the Fort Berthold Indian Reservation (FBIR FIP) at 40 CFR 49.4161–4168 (78 FR 17836), we stated in the preamble to that rulemaking that the FBIR FIP is not a permitting program and does not exempt facilities from any federal CAA permitting requirements, which would include compliance with this proposed FIP, and PSD preconstruction permitting requirements at 40 CFR 52.21, Federal Indian Country NSR permitting requirements for minor sources at 40 CFR 49.151, or federal Title V operating permit requirements at 40 CFR part 71. The FBIR FIP does provide legal and practical enforceability for the use of VOC emission controls, and compliant B. What is the effect of this proposed FIP emission reductions achieved can be on other Indian Country FIPs? taken into account in calculating The objectives of this proposed FIP potential VOC emissions when are to fulfill the requirements of the determining the applicability of CAA Federal Indian Country Minor NSR rule permitting requirements. However, to address the air quality impacts of new facilities subject to the FBIR FIP may and modified true minor sources and to emit VOCs from emission sources not impose appropriate air pollution control regulated under the FBIR FIP, and/or requirements that protect the NAAQS, may emit other NSR-regulated while providing an alternative to pollutants not regulated by the FBIR FIP obtaining preconstruction approval at levels above the minor source through the NSR preconstruction thresholds in the Federal Indian permitting process. This proposed FIP Country Minor NSR rule or the major does not replace any other FIPs source PSD thresholds at 40 CFR 52.21, promulgated under the CAA for oil and thus triggering NSR permitting natural gas sector sources in areas requirements. covered by the Federal Indian Country This proposed oil and natural gas FIP Minor NSR rule. An oil and natural gas does not exempt facilities from source in areas covered by the Federal complying with the FBIR FIP. The EPA Indian Country Minor NSR rule that is recognizes that the VOC emission subject to another CAA FIP must also control requirements under the FBIR comply with this proposed FIP. FIP are in some instances more stringent Generally, in cases where emission than the VOC emission reduction sources are already subject to a CAA FIP requirements of this proposed oil and with more stringent requirements than natural gas FIP. For instance, the FBIR those established for equivalent FIP requires up to 98 percent reduction emission sources under this proposed of VOC emissions from storage tanks, FIP, the more stringent requirements while this proposed FIP, which relies on supersede the requirements in this applicability under the 2015 proposed proposed FIP. Conversely, if NSPS, subpart OOOOa, proposes to requirements for certain emission require 95 percent reduction of VOC sources in this proposed FIP are more emissions from storage vessels. To avoid stringent than requirements for duplicative requirements, the FBIR FIP equivalent emission sources in another specifies that facilities operating emission sources regulated under the 38 ‘‘General Permits and Permits by Rule for the FBIR FIP that are also subject to the Federal Minor New Source Review Program in storage vessel requirements under the Indian Country,’’ 79 FR 2546, January 14, 2014, 2015 proposed NSPS, subpart OOOOa, https://www.gpo.gov/fdsys/pkg/FR-2014-01-14/pdf/ 2013-30345.pdf. must comply with the applicable beginning construction. As we explained in the development of both the general permits and permits by rule for the ‘‘General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country,’’ 38 to ensure listed species and critical habitats and historic properties are protected, we developed a framework for those permitting mechanisms requiring the source owner/operator to identify and assess potential effects to protected resources before obtaining coverage. Requiring this assessment aids in identifying any concerns related to potential impacts on listed species/ critical habitat or historic properties early in the process when the greatest opportunities to mitigate or avoid any impacts—including changes to the facility’s location or footprint—are available. The EPA believes that requiring a similar process in the air quality permit by rule, the general air quality permit, this proposed FIP and the general stormwater permits, will streamline the process for all concerned: the applicants, the EPA, the tribes, and the Services. PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 E:\FR\FM\18SEP3.SGM 18SEP3 56568 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules requirements of the 2015 proposed NSPS, subpart OOOOa for those emission sources, rather than the requirements for produced oil and water storage tanks in the FBIR FIP. The FBIR FIP also regulates VOC emissions from oil and natural gas well completions, well casing heads, and heater treaters at oil and natural gas production facilities, which are not currently regulated by NSPS subpart OOOO, and, thus, are not part of this proposed FIP. Hydraulically fractured oil well completions were proposed for regulation in the 2015 proposed NSPS, subpart OOOOa signed on August 18, 2015. Therefore, a new or modified oil and natural gas well production facility that is subject to the FBIR FIP that would also be subject to this proposed FIP once final to meet the requirements of the Federal Indian Country Minor NSR rule would also need to comply with the FBIR FIP for casing head natural gas emissions and heater treater produced natural gas emissions. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 VII. Rationale for Proposed FIP A. Why are we choosing a FIP as an alternative to site-specific permits, general permits and permits by rule? In the ANPR, we asked for comment on three alternatives to site-specific permits: general permits, permits by rule, and FIPs. Although commenters on the ANPR differed in their opinions on the best approach, the alternative approach garnering the most support was a FIP. Commenters supported using a FIP because it would streamline the permitting approach, eliminate the need for preconstruction approval from the permitting authority and apply requirements directly to sources. Commenters also supported a FIP because appropriate control measures would be in place and would provide the EPA and tribes assurances that construction and modification activities would be adequately and appropriately regulated. Some commenters supported a FIP because it could apply to existing sources. One commenter argued against a FIP approach because a FIP does not afford the same level of opportunity for a regulatory authority or the public to review, provide input on, or object to sources’ coverage under a FIP as compared to a general permit. We committed to developing an alternative to site-specific permits primarily to avoid delays in new construction due to our inability to process hundreds of true minor source permits in an acceptable timeframe. A FIP provides a regulatory tool that protects air quality, streamlines implementation and compliance VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 assurance, and meets the EPA’s obligation to permit minor NSR sources. The alternatives—site-specific permits, general permits and permits by rule—do not satisfy all of these concerns. Both a general permit and a permit by rule provide a more streamlined approach for authorizing construction and modification of a source compared to site-specific permitting. A FIP, however, has the advantage of not requiring a source to initiate advance review and obtain approval of coverage from the Reviewing Authority before beginning construction (as would a general permit), and it would reduce the resource burden on reviewing authorities associated with processing the potentially large volume of requests from true minor sources in the oil and natural gas production segment for coverage under a general permit. So, from those standpoints a FIP is preferable to a general permit. In comparison to a general permit, a FIP would provide less upfront scrutiny of an individual new construction or modification project and a citizen would not have the ability to object to a specific source gaining coverage. While we recognize these concerns, we believe that the proposed oil and natural gas FIP contains a robust set of emission control requirements and compliance monitoring and reporting provisions that will help ensure that a new or modified true minor source would not cause or contribute to a NAAQS or PSD increment violation.39 In addition, any citizen could enforce the provisions of a FIP, as that person can with respect to requirements of any other implementation plan or CAA requirement, by commencing a civil action in the district court in the judicial district in which the source is located. Citizens retain the right under CAA section 304(a)(1) to commence a civil action ‘‘against any person . . . who is alleged to have violated . . . or to be in violation of (A) an emission standard or limitation under this [Act] . . . .’’ The Administrator also would retain the ability to enforce the requirements of a FIP under section 113(a)(1) of the CAA. Another streamlined method, the permit by rule approach, also lacks the upfront scrutiny found with a general permit. In the first set of permits by rule that the EPA has issued for use in areas covered by the Federal Indian Country Minor NSR rule, we established the process for individual sources to obtain 39 True minor sources in Indian country in the oil and natural gas sector are also required to register under 40 CFR 14.160 and provide certain information about their new or modified operations. PO 00000 Frm 00016 Fmt 4701 Sfmt 4702 coverage under the EPA’s permits by rule. It is a source notification process in which individual sources, unlike the general permit process, are not required to obtain the EPA’s review and approval of a permit application prior to beginning construction.40 In a manner similar to a FIP, a permit by rule establishes a set of requirements to which a source becomes subject when it obtains coverage under that permit by submitting a Notification of Coverage Form to the EPA, which the EPA then posts online. (For the sources subject to this proposed FIP, the EPA intends to post the registration forms that the EPA receives (see 40 CFR 49.160(c)). Thus, on the issue of public scrutiny, the FIP and the permit by rule approaches are essentially the same. The EPA prefers the FIP because it provides more certainty for affected sources than the permit by rule approach and, as discussed below, does not have any significant disadvantages as compared to the permit by rule approach. Unlike NSR general permits and permits by rule, which cannot be used to address existing sources, a FIP could extend to existing sources; this is a key distinction between general permits and permits by rule versus a FIP. However, this proposal does not contain requirements for existing sources. The EPA’s plan is to address existing sources, to the extent necessary, in the context of area- or reservation-specific FIPs designed to address areas or reservations with air quality issues (including nonattainment areas), as they arise, that are associated with oil and natural gas activities. Such FIP(s) will need to address, as necessary, requirements for existing sources, as well as additional requirements beyond those in this proposal for new and modified sources. B. How did we select which equipment to include in this proposed FIP? In determining which equipment to include in the proposed oil and natural gas FIP, we reviewed the EPA regulations that apply to emission units within the oil and natural gas production segment. We have relied substantially on analyses performed in support of the 2015 proposed NSPS, subpart OOOOa to help determine which emission units the EPA should consider regulating in the oil and natural gas sector in areas covered by the Federal Indian Country Minor NSR 40 ‘‘General Permits and Permits by Rule for the Federal Minor New Source Review Program in Indian Country for Five Source Categories,’’ U.S. Environmental Protection Agency, 80 FR 25068, May 1, 2015, https://www.gpo.gov/fdsys/pkg/FR2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf. E:\FR\FM\18SEP3.SGM 18SEP3 mstockstill on DSK4VPTVN1PROD with PROPOSALS3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules rule as part of this proposed FIP.41 In addition to the production segment sources proposed to be covered under NSPS, subpart OOOOa, in today’s FIP, we are proposing requirements from existing EPA standards for three emission sources not covered by the NSPS, subpart OOOOa because they are present at oil and natural gas production sites and emit NOX and/or VOC: engines, process heaters and glycol dehydration units. Three of the six federal rules listed in Table 2 above regulate these sources of pollution, among others. Therefore, we determined that a combination of existing federal regulations and the 2015 proposed NSPS, subpart OOOOa provides a comprehensive and consistent regulatory approach for addressing true minor oil and natural gas production sources in areas covered by the Federal Indian Country Minor NSR rule. We have concluded that these federal regulations employ emission limitations that are technically and economically feasible, and cost effective because we have vetted the existing regulations via the public comment process and sources are currently complying with these federal standards, including new and modified sources in the oil and natural gas sector located in areas covered by the Federal Indian Country Minor NSR rule. The referenced NSPS are all promulgated pursuant to the EPA’s authority under CAA section 111. Under CAA section 111(a), the emission limitations for all the affected sources, except process heaters and glycol dehydrators, ‘‘reflect the degree of emission limitation achievable through the application of the best system of emission reduction which (taking into account the cost of achieving such reduction and any non-air quality health and environmental impact and energy requirements) the Administrator determines have been adequately demonstrated.’’ We refer to this level of control as the Best System of Emission Reduction (BSER). In determining BSER, we typically conduct a technology review that identifies what emission reduction systems exist and how much they reduce air pollution in practice. For each control system identified, we also evaluate its costs and other impacts. The NESHAP for process heaters and glycol dehydrators are promulgated pursuant to the EPA’s authority under CAA section 112. Under CAA section 112(d)(3), the emission limitations for 41 ‘‘Background Technical Support Document for the Proposed New Source Performance Standards, 40 CFR part 60, subpart OOOOa,’’ https:// www.epa.gov/airquality/oilandgas/actions.html. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 glycol dehydrators and process heaters at major sources of hazardous air pollutants (HAPs) reflect MACT. The MACT emission limitation for new sources cannot be less stringent than the emission control achieved in practice by the best-controlled similar source, without considering costs. In addition, under CAA section 112(d)(5), the emission reduction requirements for triethylene glycol dehydrators at area sources reflect ‘‘generally available control technology’’ (GACT). For GACT there is no statutory minimum level of emissions reduction for new or existing sources and costs can be considered. We are proposing that the oil and natural gas FIP require sources to comply with the applicable MACT (for glycol dehydrators and process heaters located at major sources of HAP) or GACT (for glycol dehydrators located at area sources of HAP) emission limitations. Because the individual HAP pollutants regulated from glycol dehydrators by the NESHAP (and to some degree from process heaters, as well) for oil and gas production sources are also VOC, which are regulated NSR pollutants, the proposed FIP would create enforceable VOC reduction requirements for glycol dehydrators and process heaters. HAPs would serve as a surrogate for VOC with respect to emission limitations, monitoring, testing and compliance. In addition, compliance with 40 CFR part 63, subpart DDDDD MACT also provides beneficial reductions of nontargeted NSR pollutants, i.e., NOX. The rationale supporting the applicability, emission limitations, monitoring, recordkeeping, reporting, and other provisions for each of the six federal rules is found in the preambles and background documents for those rulemakings. The six federal rules are available on the Electronic Code of Federal Regulations at: https:// www.ecfr.gov/cgi-bin/ ECFR?page=browse. C. Why are we excluding existing sources from this proposed oil and natural gas FIP? This section provides a brief overview of some of the significant comments on the inclusion of existing sources in a FIP, followed by a discussion of the EPA’s rationale for why requirements for existing sources are not included in this proposed action. A complete summary of the comments on this and other issues we raised in the June 5, 2014, ANPR, can be found in Docket ID No. EPA–HQ–OAR–2011–0151, which has been incorporated by reference into the docket for this action, Docket ID No. EPA–HQ–OAR–2014–0606. PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 56569 1. Comments in Favor of Regulation of Existing Sources In response to the ANPR the EPA issued on June 5, 2014 (79 FR 32502), several commenters expressed support for the regulation of existing sources under a minor source permitting program (i.e., a FIP) for oil and natural gas sources. Two commenters agreed with the ANPR that the cumulative impacts from existing sources could exceed that of large, new major sources. Some commenters voiced concerns about the impact of unregulated existing sources on the health and welfare of tribal members. One commenter asserted that there is substantial evidence demonstrating that existing oil and gas sources are responsible for considerable air pollution emissions within Indian country, noting that in response to the Federal Indian Country Minor NSR rule, Region 8 received approximately 6,300 registrations from existing minor sources in the oil and natural gas sector. The commenter asserted that regions like the Uintah Basin are already exceeding the ozone NAAQS, and even in regions where there are not yet NAAQS violations, emissions from oil and natural gas sources contribute to elevated ozone levels and HAP emissions. The commenter stated that the EPA’s approach must reduce emissions from existing sources in order for the EPA to meet its duty to protect public health and welfare, in addition to improving visibility impairment and nitrogen deposition in national parks and wilderness areas. Another commenter indicated that they could provide modeling and monitoring data to the EPA demonstrating air quality impacts to the National Park System. One commenter also argued that requiring existing source controls would reduce methane emissions and subsequent climate impacts. One commenter argued that the EPA must regulate existing sources to fulfill goals directed by the Obama administration, including recommendations from the Secretary of Energy’s Advisory Board that ‘‘measures should be taken to reduce emissions of air pollutants, ozone precursors, and methane as quickly as practicable.’’ One commenter asserted that the EPA has the statutory authority to implement regulations for existing oil and natural gas sources. One commenter expressed support for regulating existing sources, but stated that not all existing minor sources should be regulated in the same manner. Other commenters indicated that cost-effective controls are available E:\FR\FM\18SEP3.SGM 18SEP3 56570 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules and should be applied to existing sources. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 2. Comments in Opposition of Regulation of Existing Sources In response to the ANPR the EPA issued on June 5, 2014 (79 FR 32502), many commenters objected to the regulation of existing sources. Commenters urged the EPA to prioritize development of a streamlined permitting process implementing the Federal Minor NSR Program in Indian Country and to not include existing sources. Several commenters provided legal arguments challenging the EPA’s authority to impose requirements on existing sources. Two commenters stated that the EPA has not demonstrated that there is a need to regulate existing sources on a national basis. The commenter further argued that the EPA must make a much more definitive showing of adverse air quality impacts to justify existing source FIP requirements, taking into account the air quality, mix of emissions, and characteristics of each area in which it seeks to impose existing source controls. Two commenters urged the EPA to develop an emissions inventory using emissions monitoring data prior to implementing a FIP. Five commenters asserted that the EPA must establish an attainment plan prior to regulating existing sources. The commenters urged that to regulate existing sources, the EPA must make a determination that regulation is needed to attain the NAAQS and develop an attainment plan for the nonattainment areas in which the sources are located, and only for the relevant nonattainment pollutants. Other commenters stated that the EPA must evaluate the need for any regulation of existing minor sources in each tribal area on a case-by-case basis. 3. The EPA’s Approach in This Proposed Action on Existing Oil and Natural Gas Minor Sources in Indian Country While the focus of the minor source permitting program is on new and modified oil and natural gas sources, the EPA believes that managing emissions from existing oil and natural gas sources in some areas of Indian country also may be important. This is because of the significant existing activity associated with the oil and natural gas sector in some areas of Indian country and the resultant need to protect public health and the environment from those emissions. Addressing existing sources through a FIP could be especially useful in areas of Indian country for which surrounding state requirements apply to existing oil and natural gas sources VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 located on lands that are within a state’s jurisdiction. In doing so, EPA would consider tribes’ views and interests, including any interest in promoting economic development. While EPA believes that it has the necessary authority to promulgate a FIP regulating existing sources, in this action, we are proposing a FIP that only applies to new and modified true minor sources in the production segment of the oil and natural gas sector. This proposed FIP for new and modified true minor sources in the oil and natural gas production segment locating or located in Indian reservations (and other areas of Indian country over which an Indian tribe, or the EPA, has demonstrated that the tribe has jurisdiction) would apply to all such areas designated attainment, unclassifiable, or attainment/ unclassifiable. It would not apply to any areas designated nonattainment. The Federal Indian Country Minor NSR rule allows us to manage minor source emission increases in Indian country and to ensure that new emissions do not cause or contribute to a NAAQS or PSD increment violation. We are concerned that the rapid growth of the oil and natural gas production segment in combination with existing exploration and production activities, could result, or in some cases already has resulted, in adverse air quality impacts, especially in light of the approximately 6,300 existing true minor source registrations received in the EPA Region 8 Office for facilities in the oil and natural gas sector.42 However, we believe that the most appropriate means for addressing impacts from existing sources is through area- or reservation-specific FIPs and not through this proposed, national FIP. If we determine that it is ‘‘necessary or appropriate’’ to exercise our discretionary authority under sections 301(a) and 301(d)(4) of the CAA and 40 CFR 49.11(a) of our implementing regulations, we will publish a proposed area- or reservation-specific FIP that provides an opportunity for full public review and comment. At a minimum, the EPA or tribes will need to develop area-specific plans if and when areas of Indian country become nonattainment for ozone or other NAAQS pollutants. At that time, any such area that has oil and natural gas minor source activity 42 In the Federal Indian Country Minor NSR rule, EPA established a registration program that required owners and operators of existing true minor sources to file a one-time registration with the appropriate Reviewing Authority by March 1, 2013. The EPA’s Region 8 Office has received about 6,300 registrations from true minor sources in the oil and natural gas sector. This far exceeded the amount received from sources in any other category. PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 may require additional controls on existing (and new and modified) sources in order to achieve attainment of the NAAQS. One source of information for control options will be the EPA’s CTGs for oil and natural gas activity that the EPA has made available for comment and will finalize in 2016.43 We believe that existing sources are best addressed through tailored, federal or tribal air quality plans because each basin producing oil and/or natural gas possesses different geological and meteorological characteristics and, thus, what primary fossil fuel resource is extracted can be very different in quality and type and the impacts from emissions associated with extraction activities can vary widely. For example, the predominant resource extracted from the Bakken Pool 44 is a light, volatile oil, while the primary resource extracted from the Uintah Basin is a heavy, thick oil. Each of these types, in many cases, call for different sets of control requirements that are best addressed through tailored plans versus a national FIP. We believe that through tailored plans a number of cost-effective emission reduction measures could be applied to existing emission units to balance new growth by mitigating the potential for adverse air quality impacts from overall increases in emissions. A number of state air pollution control agencies already regulate some existing emissions from this segment.45 For example, in February 2014, Colorado adopted additional regulations for oil and natural gas production operations that include such requirements as expanding nonattainment area pneumatic controller requirements statewide and reducing venting and flaring of gas streams at well sites, among other control strategies.46 In addition, these regulations determined leak detection and repair monitoring to be cost effective at oil and natural gas production facilities. Some technologies may even provide the industry with cost savings due to recovered product. For example, the EPA’s Natural Gas Star 43 For more information, go to: https:// www.epa.gov/airquality/oilandgas/actions.html. 44 Bakken Pool means oil produced from the Bakken, Three Forks, and Sanish formations. 45 See, e.g., L. Gribovicz, WRAP, ‘‘Analysis of States’ and EPA Oil and Gas Air Emissions Control Requirements for Oil and Gas Emissions Control Requirements for Selected Basins in the Western United States (2013 Update),’’ Nov. 8, 2013, available at https://www.wrapair2.org/pdf/2013-11x_ O&G%20Analysis%20 (master%20w%20State%20Changes%2011-08).pdf. 46 See Colorado Dept. of Public Health and Environment, Air Quality Control Commission Web site at https://www.colorado.gov/cs/Satellite/CDPHEAQCC/CBON/1251647985820. E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules program estimates that adding a vapor recovery unit to a storage tank could pay for itself in 3 to 37 months, and thereafter result in cost savings.47 mstockstill on DSK4VPTVN1PROD with PROPOSALS3 D. Why is the EPA extending the permitting deadline for oil and natural gas true minor sources in areas covered by the Federal Indian Country Minor NSR rule? The EPA is proposing to extend the deadline to allow us sufficient time to develop an approach for permitting new and modified true minor oil and natural gas production sources in areas covered by the Federal Indian Country Minor NSR rule that is consistent and coordinated with the EPA’s overall approach to addressing emissions from this sector. Specifically, we have needed additional time to coordinate with the larger EPA effort to regulate methane and VOCs from the oil and natural gas sector. On January 14, 2015, as part of the Obama administration’s methane strategy, the EPA outlined a series of steps it plans to take to address methane and smog-forming VOC emissions from the oil and gas industry, in order to ensure continued, safe and responsible growth in U.S. oil and natural gas production.48 This commonsense strategy will reduce methane pollution from new sources in this rapidly growing industry, reduce ozone-forming pollutants from existing sources in areas that do not meet federal ozone health standards, and build on work that states and industry are doing to address emissions from existing sources elsewhere. We intend to ensure the approach that we use to permit true minor oil and natural gas sources in areas covered by the Federal Indian Country Minor NSR rule reflects the EPA technical expertise gained through the work that has and will be done to understand feasible control opportunities in the oil and natural gas sector. In particular, we are drawing on the knowledge gained through the development of the technical white papers released on April 15, 2014, that address emerging data on VOCs and methane emissions from certain sources in the oil and natural gas sector, as well as techniques for mitigating those emissions.49 The white papers, and the comments we received 47 See ‘‘Lessons Learned from Natural Gas STAR Partners; Installing Vapor Recovery Units on Storage Tanks,’’ available at https://epa.gov/gasstar/ documents/ll_final_vap.pdf on the EPA’s Natural Gas Star Web site: https://epa.gov/gasstar/ index.html. 48 For more information, go to: https:// www.epa.gov/airquality/oilandgas/pdfs/ 20150114fs.pdf. 49 The white papers can be found at: https:// www.epa.gov/airquality/oilandgas. VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 on them, are helping us better understand the sector, including sources located in Indian country. We are also considering in this action the comments provided in response to the ANPR (79 FR 32502, June 5, 2014) in which we sought feedback on the most effective and efficient means of implementing the Federal Minor NSR Program in Indian Country for sources in the oil and natural gas production segment of the oil and natural gas sector. VIII. Statutory and Executive Order Reviews A. Executive Order 12866: Regulatory Planning and Review and Executive Order 13563: Improving Regulation and Regulatory Review This proposed action is not a significant regulatory action and was, therefore, not submitted to the Office of Management and Budget for review. B. Paperwork Reduction Act (PRA) This action does not impose any new 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 2060–0003. This action merely proposes to establish a FIP which serves as a mechanism for true minor sources in the production segment of the oil and natural gas sector locating or located in areas covered by the Federal Indian Country Minor NSR rule to satisfy the requirements of the Federal Indian Country Minor NSR rule in lieu of obtaining a site-specific minor source permit. Because it is intended as a substitute for a site-specific permit which would contain information collection activities in the Information Collection Request for Federal Indian Country Minor NSR rule issued in July 2011, it would not impose any new obligations or enforceable duties on any state, local or tribal government or the private sector. In addition, the information collection activities contained in the 6 rules proposed to be part of the proposed FIP have also been previously approved by OMB.50 50 40 CFR part 60, subpart Kb: Standards of Performance for Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid Storage Vessels) for Which Construction, Reconstruction, or Modification Commenced After July 23, 1984 (OMB Control No. 2060–0074); 40 CFR part 60, subpart IIII: Standards of Performance for Stationary Compression Ignition Internal Combustion Engines (OMB Control No. 2060–0590); 40 CFR part 60, subpart JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion Engines (OMB Control No. 2060–0610); 40 CFR part 60, subpart OOOO: Standards of Performance for Crude Oil and Natural Gas Production, Transmission and Distribution (OMB Control No. 2060–0673); 40 CFR PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 56571 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. In making this determination, the impact of concern is any significant adverse economic impact on small entities. An agency may certify that a rule will not have a significant economic impact on a substantial number of small entities if the rule relieves regulatory burden, has no net burden or otherwise has a positive economic effect on the small entities subject to the rule. The EPA analyzed the impact of streamlined permitting on small entities in the Federal Indian Country Minor NSR rule (76 FR 38748, July 1, 2011). The EPA determined that that action would not have a significant economic impact on a substantial number of small entities. This proposed action merely implements a particular aspect of the Federal Indian Country Minor NSR rule. We have, therefore, concluded that this action will have no net regulatory burden for all directly regulated small entities. 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. It simply provides one option for sources to comply with the Federal Indian Country Minor NSR rule. The Federal Indian Country Minor NSR rule itself imposes the obligation that true minor sources in areas covered by the Federal Indian Country Minor NSR rule obtain a minor source NSR permit and not this proposed FIP. This proposed FIP merely provides a vehicle for meeting that obligation. E. Executive Order 13132: Federalism This action does not have federalism implications. It would 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. part 63, subpart DDDDD: National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters (OMB Control No. 2060–0616) and 40 CFR part 63, subpart HH: National Emission Standards for Hazardous Air Pollutants from Oil and Natural Gas Production Facilities (OMB Control No. 2060–0417). E:\FR\FM\18SEP3.SGM 18SEP3 mstockstill on DSK4VPTVN1PROD with PROPOSALS3 56572 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules F. Executive Order 13175: Consultation and Coordination With Indian Tribal Governments This action has tribal implications. However, it will neither impose substantial direct compliance costs on federally recognized tribal governments, nor preempt tribal law. The EPA has conducted outreach on this rule via ongoing monthly meetings with tribal environmental professionals in the development of this proposed action. This action reflects tribal comments on and priorities for developing an approach for permitting true minor sources in the production segment of the oil and natural gas sector in areas covered by the Federal Indian Country Minor NSR rule. The EPA offered consultation on the ANPR to elected tribal officials and the following tribes requested a consultation, which was held on July 18, 2014, with the tribes and/or their representatives: MHA (Mandan, Hidatsa and Arikara) Nations (Three Affiliated Tribes), Ute Tribe of the Uintah and Ouray Reservation, and Crow Nation. At the consultation, the tribes present expressed a number of concerns regarding federal regulation of oil and natural gas activity in Indian country. Three main themes were expressed. First, the tribes expressed the concern that many areas of Indian country are facing difficult economic circumstances and are in need of economic development to improve the quality of life of tribal members; revenue from oil and natural gas activity in many areas provides that economic development. Second, in Indian country they indicated that oil and natural gas activity is already regulated by the federal government and that the EPA does not need to add to the burden. They expressed a wish to be able to manage their own resources without undue interference from the federal government. Finally, the tribes also expressed a need for greater resources so that they can implement their own environmental programs as they determine in their own lands. We believe that the FIP is directly responsive to the first two issues in that, for attainment and related areas, we are proposing a FIP to fulfill our CAA responsibilities to protect air quality in Indian country in a manner that: (1) Does not create an uneven playing field with respect to federal requirements in adjacent states where oil and natural gas sources face the same EPA requirements; and (2) minimizes the processing burden on oil and natural gas sources. We will continue to provide outreach to tribal environmental VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 professionals and offer to consult with tribal leadership on this proposed action. and natural gas production in areas covered by the Federal Indian Country Minor NSR rule.. G. Executive Order 13045: Protection of Children From Environmental Health Risks and Safety Risks This action is not subject to Executive Order (EO) 13045 because it is not economically significant as defined in EO 12866, and because the EPA does not believe the environmental health or safety risks addressed by this action present a disproportionate risk to children. List of Subjects in 40 CFR Part 49 Environmental protection, Administrative practices and procedures, Air pollution control, Incorporation by reference, Indians, Indians-law, Indians-tribal government, Intergovernmental relations, Reporting and recordkeeping requirements. Dated: August 18, 2015. Gina McCarthy, Administrator. H. Executive Order 13211: Actions 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. For the reasons set forth in the preamble, EPA proposes to amend 40 CFR part 49 as follows: I. National Technology Transfer and Advancement Act (NTTAA) This action 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. This proposed rule implements certain aspects of the Federal Indian Country Minor NSR rule. Our primary goal in developing this program is to ensure that air resources in areas covered by the Federal Indian Country Minor NSR rule will be protected in the manner intended by the CAA. This action will help ensure air quality protection in areas covered by the Federal Indian Country Minor NSR rule, by including in a FIP a comprehensive set of control requirements for new and modified true minor source in the production segment of the oil and natural gas sector. In addition, through this proposed FIP, we seek to establish a mechanism that provides an effective and efficient method for implementing a preconstruction permitting program for true minor sources in areas covered by the Federal Indian Country Minor NSR rule that enables a streamlined process, which helps promote economic development by minimizing delays in new construction; and provides a process comparable to those programs operated outside of Indian county, which helps tribes compete for new oil PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 PART 49—INDIAN COUNTRY: AIR QUALITY PLANNING AND MANAGEMENT 1. The authority citation for part 49 continues to read as follows: Authority: 42 U.S.C. 7401, et seq. 2. Subpart C of part 49 is amended by adding a new undesignated center heading and §§ 49.101 to 49.105 to read as follows: ■ Federal Implementation Plans for Tribes Sec. 49.101 Introduction. 49.102 Definitions. 49.103 Delegation of authority of administration to Indian tribes. 49.104 Requirements regarding threatened or endangered species and historic properties. 49.105 Requirements. Federal Implementation Plans for Tribes § 49.101 Introduction. What is the purpose of §§ 49.101 through 49.105? (a) Sections 49.101 through 49.105 adopt legally and practicably enforceable requirements to control and reduce emissions of volatile organic compounds, nitrogen oxides, sulfur dioxide, particulate matter (PM, PM10, PM2.5), hydrogen sulfide, carbon monoxide and various sulfur compounds from oil and natural gas production segment operations. (b) Am I subject to §§ 49.101 through 49.105? You are subject to the requirement if you meet the following criteria: (1) Owners and operators of new true minor oil and natural gas sources or minor modifications at existing true minor oil and natural gas sources as determined pursuant to 40 CFR 49.153(a) that meet the criteria specified in paragraphs (b)(1)(i) through (b)(1)(v) E:\FR\FM\18SEP3.SGM 18SEP3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules of this section, shall comply with the requirements of §§ 49.104 and 49.105, unless the owner or operator obtains a site-specific permit as specified in paragraph (b)(2) or (b)(3) of this paragraph. (i) The facility is an oil and natural gas production facility as defined in § 49.102; (ii) The oil and natural gas production facility is located in Indian country as defined in § 49.102; (iii) The oil and natural gas production facility is a new true minor source or minor modification of an existing true minor source as determined under § 49.153; (iv) The oil and natural gas production facility begins construction or modification on or after October 3, 2016; and (v) The oil and natural gas production facility is not located in a designated nonattainment area. (2) Owners and operators of facilities that meet the criteria specified in paragraphs (b)(1) of this section that choose to obtain a site-specific permit as specified in 40 CFR 49.155 before beginning construction are not required to comply with the requirements of §§ 49.101 to 49.105. (3) Owners and operators of facilities that meet the criteria specified in paragraph (b)(1) of this section that the Reviewing Authority requires to obtain a site-specific permit to ensure protection of the NAAQS as specified in 40 CFR 49.155 before beginning construction are not required to comply with §§ 49.101 to 49.105. (c) When must I comply with §§ 49.101 through 49.105? Compliance with §§ 49.101 through 49.101 is required on or after October 3, 2016. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 § 49.102 Definitions. As used in §§ 49.101 through 49.105, all terms not defined herein shall have the meaning given them in the Clean Air Act, in subpart A, and subpart OOOOa of 40 CFR part 60, in the Prevention of Significant Deterioration regulations at 40 CFR 52.21, or in the Federal Minor NSR Program in Indian Country at 40 CFR 49.152. The following terms shall have the specific meanings given them: Oil and natural gas production facility means a minor stationary source engaged in the extraction and production of oil and natural gas, as well as the processing, transmission and distribution of natural gas, including the wells and all related processes used in the extraction, production, recovery, lifting, stabilization, and separation or treatment of oil and/or natural gas (including condensate). Oil and natural gas production components may VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 include, but are not limited to: wells and related casing head; tubing head and ‘‘Christmas tree’’ piping; pumps; compressors; heater treaters; separators; storage vessels; pneumatic devices; natural gas dehydrators; well drilling, completion and workover processes and portable non-self-propelled apparatuses associated with those operations; and low to medium pressure, smaller diameter, gathering pipelines and related components that collect and transport the oil, natural gas and other materials and wastes from the wells or well pads. Oil and natural gas well means a single well that extracts subsurface reservoir fluids containing a mixture of oil, natural gas, and water. Owner or operator means any person who owns, leases, operates, controls, or supervises an oil and natural gas production facility. Regional Administrator means the Regional Administrator of an EPA Region or an authorized representative of the Regional Administrator. § 49.103 Delegation of authority of administration to Indian tribes. (a) What is the purpose of this section? The purpose of this section is to establish the process by which a Regional Administrator may delegate to a federally-recognized tribe the authority to assist the EPA with administration of this Federal Implementation Plan (§§ 49.101– 49.105). This section provides for administrative delegation and does not affect the eligibility criteria under 40 CFR 49.6 for treatment in the same manner as a state or a tribe’s ability to obtain approval of a tribal implementation plan under 40 CFR 49.7. (b) How does a tribe request delegation? In order to be delegated authority to assist us with administration of this FIP, the authorized representative of a federallyrecognized tribe must submit a request to a Regional Administrator that: (1) Identifies the specific provisions for which delegation is requested; (2) Identifies the Indian Reservation or other areas of Indian country for which delegation is requested; (3) Includes a statement by the applicant’s legal counsel (or equivalent official) that includes the following information: (i) A statement that the applicant is a tribe recognized by the Secretary of the Interior; (ii) A descriptive statement that is consistent with the type of information described in § 49.7(a)(2) demonstrating PO 00000 Frm 00021 Fmt 4701 Sfmt 4702 56573 that the applicant is currently carrying out substantial governmental duties and powers over a defined area; (iii) A description of the laws of the tribe that provide adequate authority to administer the Federal rules and provisions for which delegation is requested; and (iv) A demonstration that the tribal agency has the technical capability and adequate resources to administer the FIP provisions for which the delegation is requested. (c) How is the delegation of administrative authority accomplished? (1) A Delegation of Authority Agreement will set forth the terms and conditions of the administrative delegation, will specify the rule and provisions that the tribe shall be authorized to implement on behalf of the EPA, and shall be entered into by the Regional Administrator and the tribe. The Agreement will become effective upon the date that both the Regional Administrator and the authorized representative of the tribe have signed the Agreement. Once the delegation becomes effective, the tribe will be responsible, to the extent specified in the Agreement, for assisting us with administration of this FIP and shall act as the Regional Administrator as that term is used in these regulations. Any Delegation of Authority Agreement will clarify the circumstances in which the term ‘‘Regional Administrator’’ found throughout this FIP is to refer only to the EPA Regional Administrator and when it is intended instead to refer to the EPA Regional Administrator or a federally-recognized tribe. (2) A Delegation of Authority Agreement may be modified, amended, or revoked, in part or in whole, by the Regional Administrator after consultation with a tribe. (d) How will any Delegation of Authority Agreement be publicized? The Regional Administrator shall publish a notice in the Federal Register informing the public of any Delegation of Authority Agreement with a tribe to assist us with administration of all or a portion of this FIP and will identify such delegation in the Code of Federal Regulations. The Regional Administrator shall also publish an announcement of the Delegation of Authority Agreement in local newspapers. § 49.104 Requirements regarding threatened or endangered species and historic properties. (a) What are sources required to do to address threatened or endangered species and historic properties? An owner/operator required to meet the E:\FR\FM\18SEP3.SGM 18SEP3 56574 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules requirements contained in §§ 49.101 through 49.105 to satisfy its obligation under § 49.151(c)(1)(iii)(B) shall meet paragraph (a)(1) or (2) of this section. (1) The owner/operator shall submit to the EPA Regional Office (and to the tribe where the source is located/ locating) documentation demonstrating that prior Endangered Species Act (ESA) and/or National Historic Preservation Act (NHPA) compliance has been completed by another federal agency in connection with the specific oil and natural gas activity operated under this FIP. The owner/operator must be in compliance with all measures required as part of that prior ESA and/or NHPA process. (2) The owner/operator shall submit to the EPA Regional Office (and to the tribe where the source is located/ locating) documentation demonstrating that it has completed the screening procedures specified for consideration of threatened and endangered species and/or historic properties and receive written confirmation from the EPA stating that it has satisfactorily completed these procedures. The procedures document, ‘‘Procedures to Address Threatened and Endangered Species and Historic Properties for New or Modified True Minor Oil and Natural Gas Production Sources in Indian Country Complying with the Oil and Natural Gas Minor Source Federal Implementation Plan,’’ August 13, 2015, Version 1.0, is incorporated by reference into this section with the approval of the Director of the Federal Register under 5 U.S.C. 552(a) and 1 CFR part 51. To view or download the document, go to https://www.epa.gov/air/tribal/pdfs/ procedures_for_esa_and_nhpa_for_ong_ sources_8-13-15.pdf. mstockstill on DSK4VPTVN1PROD with PROPOSALS3 § 49.105 Requirements. (a) For true minor sources that are subject to 40 CFR part 63, subpart DDDDD (National Emission Standards for Hazardous Air Pollutants for Major Sources: Industrial, Commercial, and Institutional Boilers and Process Heaters), for purposes of this FIP, sources must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun. (b) For true minor sources that are subject to 40 CFR part 60, subpart IIII— Standards of Performance for Stationary Compression Ignition Internal Combustion Engines, for purposes of this FIP, sources must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 (1) § 60.4200(a)(1)—Am I subject to this subpart? (applies to manufacturers); (2) § 60.4200(b)—Not applicable to stationary spark ignition internal combustion engines being tested at an engine test cell/stand; (3) § 60.4200(c)—Am I subject to this subpart? (area sources and exemptions from Title V permits); (4) § 60.4201—What emission standards must I meet for nonemergency engines if I am a stationary compression ignition internal combustion engine manufacturer?; (5) § 60.4202—What emission standards must I meet for emergency engines if I am a stationary compression ignition internal combustion engine manufacturer?; (6) § 60.4203—How long must my engines meet the emission standards if I am a manufacturer of stationary compression ignition internal combustion engines?; (7) § 60.4210—What are my compliance requirements if I am a stationary compression ignition internal combustion engine manufacturer?; and (8) § 60.4215—What requirements must I meet for engines used in Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands? (c) For true minor sources that are subject to 40 CFR part 60, subpart JJJJ— Standards of Performance for Stationary Spark Ignition Internal Combustion Engines, for purposes of this FIP, sources must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: (1) § 60.4230(b)—Not applicable to stationary spark ignition internal combustion engines being tested at an engine test cell/stand; (2) § 60.4230(c)—Exemption for obtaining a Title V permit if owner or operator of an area source subject to this part; (3) § 60.4231 and § 60.4232—Emission standards for manufacturers; (4) § 60.4238 through § 60.4242— Compliance Requirements for Manufacturers; and (5) § 60.4247—Mobile source provisions that apply to manufacturers of stationary spark ignition internal combustion engines or equipment containing such engines. (d) For true minor sources that are subject to 40 CFR part 60, subpart Kb— Standards of Performance for Volatile Organic Liquid Storage Vessels, for purposes of this FIP, sources must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction PO 00000 Frm 00022 Fmt 4701 Sfmt 4702 of the source is begun, except for the following: (1) § 60.112b(c)—Site-specific standard for Merck & Co., Inc.’s Stonewall Plant in Elkton, Virginia; and (2) § 60.117b(a) and (b)—Delegation of authority. (e) For true minor sources that are subject to subpart OOOOa, Emission Standards for New and Modified Sources in the Oil and Natural Gas Sector, for purposes of this FIP, sources must comply with all of the provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: (1) § 60.5365a(f)(3)—Equipment exemption at processing plant; (2) § 60.5365a(h)(4)—Existing sources constructed after August 23, 2011; (3) § 60.5370a(c)—Permit exemption; (4) § 60.5413a(a)(5)—Exemptions from performance testing—hazardous waste incinerator; (5) § 60.5420a(a)(2)(i)—Advance notification requirements for well completions; and (6) § 60.5420a(a)(2)(ii)—Advance notification requirements of well completions when subject to state regulation that requires advance notification. (f) For true minor sources that are subject to 40 CFR part 63, subpart HH— National Emission Standards for Hazardous Air Pollutants from Oil and Natural Gas Production Facilities, for purposes of this FIP, sources must comply with all of the applicable provisions of the standard as written at the time construction or reconstruction of the source is begun, except for the following: (1) § 63.760(a)(2)—Facilities that process, upgrade or store hydrocarbon liquids; (2) § 63.760(b)(1)(ii)—Each storage vessel with the potential for flash emissions; (3) § 63.760(b)(1)(iii)—Equipment located at natural gas processing plants; (4) § 63.760(g)—Recordkeeping for major sources that overlap with other regulations for equipment leaks; (5) § 63.764(c)(2)—(3)—Requirements for compliance with standards for storage vessels and equipment at natural gas processing plants, respectively; (6) § 63.766 Storage vessel standards; and (7) § 63.769 Equipment leak standards. ■ 3. Section 49.151 is amended by revising paragraphs (b)(1), (c)(1)(iii)(A) and (B), and (d)(1), (2) and (4) to read as follows: § 49.151 * E:\FR\FM\18SEP3.SGM * Program overview. * 18SEP3 * * mstockstill on DSK4VPTVN1PROD with PROPOSALS3 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules (b) * * * (1) It satisfies the requirements of section110(a)(2)(C) of the Act by establishing a preconstruction permitting program for all new and modified minor sources (minor sources) and minor modifications at major sources located in Indian country and by establishing a Federal Implementation Plan (§§ 49.101 to 49.105) for oil and natural gas production true minor sources located in Indian country. * * * * * (c) * * * (1) * * * (iii) * * * (A) If you own or operate an existing true minor source in Indian country (as defined in § 49.152(d)), you must register your source with the Reviewing Authority in your area by March 1, 2013. If your true minor source is not an oil and natural gas source, as defined in § 49.102, and you commence construction after August 30, 2011, and before September 2, 2014, you must also register your source with the Reviewing Authority in your area within 90 days after the source begins operation. If your true minor source is an oil and natural gas source, as defined in § 49.102, and you commence construction after August 30, 2011, and before October 3, 2016, you must register your source with the Reviewing Authority in your area within 90 days after the source begins operation. You are exempt from these registration requirements if your true minor source is subject to § 49.138. (B) If your true minor source is not an oil and natural gas source, as defined in § 49.102, and you wish to begin construction of a new true minor source or a minor modification at an existing true minor source on or after September 2, 2014, you must first obtain a permit pursuant to §§ 49.154 and 49.155 (or a general permit/permit by rule pursuant to § 49.156, if applicable). If your true minor source is an oil and natural gas source, as defined in § 49.102, and you wish to begin construction of a new true minor source or a minor modification at an existing true minor source on or after October 3, 2016, you must either comply with the Federal Implementation Plan for oil and natural gas production sources located in Indian country (§§ 49.101 to 49.105) from the day you begin construction or opt out of those requirements pursuant to § 49.101(b)(2) and obtain a minor source permit pursuant to §§ 49.154 and 49.155 before beginning construction. Alternatively you may be required by the EPA, pursuant to § 49.101(b)(3), to obtain a minor source permit pursuant VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 to §§ 49.154 and 49.155 before beginning construction. All proposed new sources or modifications are also subject to the registration requirements of § 49.160, except for sources that are subject to § 49.138. * * * * * (d) * * * (1) If you begin construction of a new source or modification that is subject to this program after the applicable date specified in paragraph (c) of this section without applying for and receiving a permit pursuant to this program or complying with the Federal Implementation Plan at §§ 49.101 to 49.105 for oil and natural gas production, you will be subject to appropriate enforcement action. (2) If you do not construct or operate your source or modification in accordance with the terms of your minor NSR permit or the Federal Implementation Plan for oil and natural gas production at §§ 49.101 to 49.105, you will be subject to appropriate enforcement action. (3) * * * (4) Issuance of a permit or compliance with the Federal Implementation Plan for oil and natural gas production at §§ 49.101 to 49.105 does not relieve you of the responsibility to comply fully with applicable provisions of any EPAapproved implementation plan or Federal Implementation Plan or any other requirements under applicable law. * * * * * ■ 4. Section 49.152 is amended by revising the introductory text of paragraph (d) and adding paragraph (4) to the definition of ‘‘Indian country’’ to read as follows: § 49.152 Definitions. * * * * * (d) * * * Indian country, as defined in 18 U.S.C. 1151, means the following as applied to this program: * * * * * (4) For purposes of this rule, references to Indian country include all Indian reservation lands where no EPAapproved program is in place and all other areas of Indian country where no EPA-approved program is in place and over which an Indian tribe, or the EPA, has demonstrated that a tribe has jurisdiction. * * * * * ■ 5. Section 49.153 is amended by revising paragraphs (a)(1)(i)(B) and (a)(1)(ii)(B) to read as follows: § 49.153 * PO 00000 * Applicability. * Frm 00023 * Fmt 4701 * Sfmt 4702 56575 (a)* * * (1) * * * (i) * * * (B) Step 2. Determine whether your proposed source’s potential to emit for the pollutant that you are evaluating, (including fugitive emissions, to the extent they are quantifiable, only if the source belongs to one of the source categories listed pursuant to section 302(j) of the Act), is equal to or greater than the corresponding minor NSR threshold in Table 1 of this section. If it is, you are subject to the preconstruction requirements of this program for that pollutant, except that oil and natural gas production sources shall instead comply with the requirements of the Federal Implementation Plan at §§ 49.101 to 49.105, unless you opt-out of the Federal Implementation Plan pursuant to § 49.101(b)(2) in which case you are subject to the preconstruction requirements of this program for that pollutant or are required by the EPA to obtain a minor source permit pursuant to § 49.101(b)(3). If not, go to Step 3 (paragraph (a)(1)(ii)(C) of this section). (ii) * * * (B) Step 2. Determine whether the increase in allowable emissions from the proposed modification (calculated using the procedures of paragraph (b) of this section) would be equal to or greater than the minor NSR threshold in Table 1 of this section for the pollutant that you are evaluating. If it is, you are subject to the preconstruction requirements of this program for that pollutant, except oil and natural gas production sources shall instead comply with the requirements of the Federal Implementation Plan at §§ 49.101 to 49.105, unless you opt-out of the Federal Implementation Plan pursuant to § 49.101(b)(2) in which case you are subject to the preconstruction requirements of this program for that pollutant or are required by the EPA to obtain a minor source permit pursuant to § 49.101(b)(3). If not, go to Step 3 (paragraph (a)(1)(ii)(C) of this section). * * * * * ■ 6. Section 49.160 is amended by revising paragraphs (c)(1)(ii) and (iii), adding paragraph (c)(1)(iv) and revising paragraph (c)(4) to read as follows: § 49.160 Registration program for minor sources in Indian country. * * * * * (c) * * * (1) * * * (ii) If your true minor source is not an oil and natural gas source, as defined in § 49.102, and you commence construction after August 30, 2011, and before September 2, 2014, you must E:\FR\FM\18SEP3.SGM 18SEP3 56576 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules mstockstill on DSK4VPTVN1PROD with PROPOSALS3 register your source with the Reviewing Authority within 90 days after the source begins operation. If your new true minor source or minor modification of an existing true minor source is an oil and natural gas source, as defined in § 49.102, and you commence construction after August 30, 2011, and before October 3, 2016, you must register your source with the Reviewing Authority within 90 days after the source begins operation. (iii) If your true minor source is not an oil and natural gas source, as defined in § 49.102, and you commence construction or modification of your source on or after September 2, 2014, and your source is subject to this rule, you must report your source’s actual emissions (if available) as part of your permit application and your permit application information will be used to fulfill the registration requirements described in § 49.160(c)(2). If your true minor source is an oil and natural gas source, as defined in § 49.102, and you commence construction or modification of your source on or after October 3, 2016, you must report your source’s actual emissions (if available) as part of your permit application or registration of oil and natural gas production sources using a form provided by the VerDate Sep<11>2014 21:08 Sep 17, 2015 Jkt 235001 EPA, ‘‘Registration for New True Minor Oil and Natural Gas Sources and Minor Modifications at Existing True Minor Oil and Natural Gas Sources’’ (available at: https://www.epa.gov/air/tribal/ tribalnsr.html or from EPA Regional Offices), and your permit application or registration for oil and natural gas production sources will be used to fulfill the registration requirements described in § 49.160(c)(2). (iv) Minor sources complying with §§ 49.101 to 49.105 for oil and natural gas production, as defined in § 49.102, must submit a registration form 30 days prior to beginning construction that contains the information in § 49.160(c)(2). The form titled ‘‘Registration for New True Minor Oil and Natural Gas Sources and Minor Modifications at Existing True Minor Oil and Natural Gas Sources’’ is available at: https://www.epa.gov/air/ tribal/tribalnsr.html or from EPA Regional Offices. This form is submitted instead of the application form required in § 49.160(c)(1)(iii). * * * * * (4) Duty to obtain a permit or comply with the Federal Implementation Plan for oil and natural gas production sources. Submitting a registration form does not relieve you of the requirement PO 00000 Frm 00024 Fmt 4701 Sfmt 9990 to obtain any required permit, including a preconstruction permit, or to comply with the Federal Implementation Plan for oil and natural gas production if your source or any physical or operational change at your source would be subject to any minor or major NSR rule. * * * * * ■ 7. Section 49.167 is amended by revising the introductory text of paragraph (d) and adding paragraph (d)(4) to read as follows: § 49.167 Definitions. * * * * * (d) Indian country, as defined in 18 U.S.C. 1151, means the following as applied to this program: * * * * * (4) For purposes of this rule, references to Indian country include all Indian reservation lands where no EPAapproved program is in place and all other areas of Indian country where no EPA-approved program is in place and over which an Indian tribe, or the EPA, has demonstrated that a tribe has jurisdiction. * * * * * [FR Doc. 2015–21025 Filed 9–17–15; 8:45 am] BILLING CODE 6560–50–P E:\FR\FM\18SEP3.SGM 18SEP3

Agencies

ENVIRONMENTAL PROTECTION AGENCY

[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Proposed Rules]
[Pages 56553-56576]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-21025]

[[Page 56553]]

Vol. 80

Friday,

No. 181

September 18, 2015

Part II

Environmental Protection Agency

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40 CFR Parts 49, 51, 52, et al.

Oil and Natural Gas; Proposed Rules and Notice

Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 /
Proposed Rules

[[Page 56554]]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Parts 49

[EPA-HQ-OAR-2014-0606; FRL-9931-75-OAR]
RIN 2060-AS27

Review of New Sources and Modifications in Indian Country:
Federal Implementation Plan for Managing Air Emissions from True Minor
Sources Engaged in Oil and Natural Gas Production in Indian Country

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing a
federal implementation plan (FIP) that would apply to new true minor
sources and minor modifications at existing true minor sources in the
production segment of the oil and natural gas sector that are locating
or expanding in Indian reservations or in other areas of Indian country
over which an Indian tribe, or the EPA, has demonstrated the tribe's
jurisdiction. The FIP would satisfy the minor source permitting
requirement under the ``Federal Minor New Source Review (NSR) Program
in Indian Country'' (referred to as the ``Federal Indian Country Minor
NSR rule''). The FIP proposes to require emission limitations and other
requirements from certain federal emission standards as written at the
time of construction or modification for compression ignition and spark
ignition engines, compressors (reciprocating and centrifugal), fuel
storage tanks, fugitive emissions from well sites and compressor
stations, glycol dehydrators, hydraulically fractured oil and gas well
completions, pneumatic controllers in production, pneumatic pumps,
process heaters and storage vessels.
The EPA is also proposing several amendments to the Federal Indian
Country Minor NSR rule, including adding new text regarding the purpose
of the program, revising the program overview provision, establishing a
compliance deadline of October 3, 2016, revising certain provisions to
incorporate compliance with the FIP, revising the applicability
provision to establish that sources are required to comply with the FIP
unless they opt to obtain a source-specific permit or are otherwise
required to obtain a source-specific permit, and revising the source
registration provision. Also, we are revising the definition of Indian
country to comport with a court decision that addressed EPA's
jurisdiction to implement the Federal Indian Country Minor NSR rule:
Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir.
2014). This court decision also affects the definition of Indian
country under the Federal Major New Source Review Program in Indian
Country so we are changing the definition under the Federal Indian
Country Major NSR rule as well.

DATES: Comments. Comments must be received on or before November 17,
2015.
Public Hearing. The EPA will hold a public hearing on this proposed
action. Details will be announced in a separate notice.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OAR-2014-0606, to the Federal eRulemaking Portal: https://www.regulations.gov. Follow the online instructions for submitting
comments. Once submitted, comments cannot be edited or withdrawn. The
EPA may publish any comment received to its public docket. Do not
submit electronically any information you consider to be Confidential
Business Information (CBI) or other information whose disclosure is
restricted by statute. Multimedia submissions (audio, video, etc.) must
be accompanied by a written comment. The written comment is considered
the official comment and should include discussion of all points you
wish to make. The EPA will generally not consider comments or comment
contents located outside of the primary submission (i.e., on the web,
cloud or other file sharing system). For additional submissions, and
general guidance on making effective comments, please visit https://www2.epa.gov/dockets/commenting-epa-dockets.
Docket. 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, 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/
DC), Room 3334, EPA WJC West Building, 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 Air Docket is (202) 566-1742.

FOR FURTHER INFORMATION CONTACT: Mr. Christopher Stoneman, Outreach and
Information Division, Office of Air Quality Planning and Standards (C-
304-01), Environmental Protection Agency, Research Triangle Park, North
Carolina, 27711, telephone number (919) 541-0823, facsimile number
(919) 541-0072, email address: stoneman.chris@epa.gov. For questions
about the oil and natural gas new source performance standards (NSPS)
proposed action,\1\ please contact Mr. Bruce Moore, Sector Policies and
Programs Division, Office of Air Quality Planning and Standards (E-143-
01), Environmental Protection Agency, Research Triangle Park, North
Carolina, 27711, telephone number (919) 541-5460, facsimile number
(919) 541-4312, email address: moore.bruce@epa.gov. For questions about
the proposed action on the oil and natural gas source determination,\2\
please contact Ms. Cheryl Vetter, Air Quality Policy Division, Office
of Air Quality Planning and Standards (C504-03), Environmental
Protection Agency, Research Triangle Park, North Carolina, 27711,
telephone number (919) 541-4391, facsimile number (919) 541-541-4312,
email address: vetter.cheryl@epa.gov. For questions about the
applicability of this action to a particular source, please contact the
appropriate EPA region:
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\1\ ``Emission Standards for New and Modified Sources in the Oil
and Natural Gas Sector,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
\2\ ``Source Determination for Certain Emission Units in the Oil
and Natural Gas Sector,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions/html.
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EPA Region 5 (Illinois, Indiana, Michigan, Minnesota,
Ohio, and Wisconsin)--Ms. Genevieve Damico, Air Permits Section,
Environmental Protection Agency, Region 5, Chicago, Illinois 60604;
telephone (312) 353-4761; fax (312) 385-5501; email address:
damico.genevieve@epa.gov.
EPA Region 6 (Arkansas, Louisiana, New Mexico, Oklahoma,
and Texas)--Ms. Bonnie Braganza, Air Permits Section, Multimedia
Permitting and Planning Division, Environmental Protection Agency
Region 6, Dallas, Texas 75202; telephone number (214) 665-7340; fax
number (214) 665-6762; email address: braganza.bonnie@epa.gov.
EPA Region 8 (Colorado, Montana, North Dakota, South
Dakota, Utah, and Wyoming)--Ms. Claudia Smith, Air Program, Mail Code
8P-AR, Environmental Protection Agency Region 8, Denver, Colorado
80202;

[[Page 56555]]

telephone number (303) 312-6520; fax number (303) 312-6520; email
address: smith.claudia@epa.gov.
EPA Region 9 (Arizona, California, Hawaii, Nevada, and
Pacific Islands)--Ms. Lisa Beckham, Permits Office, Air Division, Air-
3, Environmental Protection Agency Region 9, San Francisco, California
94105; telephone number (415) 972-3811; fax number (415) 947-3579;
email address: beckham.lisa@epa.gov.
All other EPA regions--The permit reviewer for minor
sources in Indian country for your EPA region. You can find the list of
the EPA permit reviewers at: https://www.epa.gov/air/tribal/tribalnsr.html. Scroll down to the heading, ``Existing Source
Registration,'' and click on ``Reviewing Authority'' to access
``Environmental Protection Agency's Reviewing Authorities for
Permits.''

SUPPLEMENTARY INFORMATION: The information presented in this preamble
is organized as follows:

I. General Information
A. What entities are potentially affected by this proposal?
B. What should I consider as I prepare my comments to the EPA?
C. Where can I get a copy of this document and other related
information?
II. Purpose
A. Proposed Oil and Natural Gas FIP
B. Proposed Amendments to the Federal Indian Country Minor NSR
Rule
III. Background
A. Tribal Air Rule
B. Federal Indian Country Minor NSR Rule
C. General Permits and Permits by Rule for the Federal Minor New
Source Review Program in Indian Country--Final Rules
D. EPA Actions Affecting Oil and Natural Gas Minor Sources in
areas covered by the Federal Indian Country Minor NSR Rule
E. What is a FIP?
F. Oil and Natural Gas Sector
IV. Summary of Proposed Oil and Natural Gas FIP
A. Overview
B. What are the proposed FIP requirements?
C. Site-Specific Permits
V. Summary of Proposed Amendments to the Federal Indian Country
Minor NSR Rule
VI. Implementation Issues
A. Requirements Relating to Threatened or Endangered Species and
Historic Properties
B. What is the effect of this FIP on other Indian Country FIPs?
VII. Rationale for Proposed FIP
A. Why are we choosing a FIP as an alternative to site-specific
permits, general permits and permits by rule?
B. How did we select which equipment to include in this proposed
FIP?
C. Why are we excluding existing sources from this proposed oil
and natural gas FIP?
D. Why is the EPA extending the permitting deadline for oil and
natural gas true minor sources in areas covered by the Federal
Indian Country Minor NSR rule?
VIII. Statutory and Executive Order Reviews
A. Executive Order 12866: Regulatory Planning and Review and
Executive Order 13563: Improving Regulation and Regulatory Review
B. Paperwork Reduction Act (PRA)
C. Regulatory Flexibility Act (RFA)
D. Unfunded Mandates Reform Act (UMRA)
E. Executive Order 13132: Federalism
F. Executive Order 13175: Consultation and Coordination with
Indian Tribal Governments
G. Executive Order 13045: Protection of Children from
Environmental Health Risks and Safety Risks
H. Executive Order 13211: Actions that Significantly Affect
Energy Supply, Distribution, or Use
I. National Technology Transfer and Advancement Act (NTTAA)
J. Executive Order 12898: Federal Actions to Address
Environmental Justice in Minority Populations and Low-Income
Populations

I. General Information

A. What entities are potentially affected by this proposal?

Entities potentially affected by this proposal consist of owners
and operators of facilities included in the following source categories
that are located, or planning to locate, in an Indian reservation or in
another area of Indian country (as defined in 18 U.S.C. 1151) over
which an Indian tribe, or the EPA, has demonstrated that the tribe has
jurisdiction where there is no EPA-approved program in place and that
are subject to the requirements of the Federal Indian Country Minor NSR
rule.

Table 1--Source Categories Affected By This Proposed Action
------------------------------------------------------------------------
Examples of regulated
Industry category NAICS Code entities/description
\a\ of industry category
------------------------------------------------------------------------
Oil and Gas Production/Operations.. 21111 Exploration for crude
petroleum and natural
gas; drilling,
completing, and
equipping wells;
operation of
separators, emulsion
breakers, desilting
equipment, and field
gathering lines for
crude petroleum and
natural gas; and all
other activities in
the preparation of
oil and gas up to the
point of shipment
from the producing
property.
Production of crude
petroleum, the mining
and extraction of oil
from oil shale and
oil sands, the
production of natural
gas, sulfur recovery
from natural gas, and
the recovery of
hydrocarbon liquids
from oil and gas
field gases.
Crude Petroleum and Natural Gas 211111 Exploration,
Extraction. development and/or
the production of
petroleum or natural
gas from wells in
which the
hydrocarbons will
initially flow or can
be produced using
normal pumping
techniques or
production of crude
petroleum from
surface shales or tar
sands or from
reservoirs in which
the hydrocarbons are
semisolids.
Natural Gas Liquid Extraction...... 211112 Recovery of liquid
hydrocarbons from oil
and gas field gases;
and sulfur recovery
from natural gas.
Drilling Oil and Gas Wells......... 213111 Drilling oil and gas
wells for others on a
contract or fee
basis, including
spudding in, drilling
in, redrilling, and
directional drilling.

[[Page 56556]]

Support Activities for Oil and Gas 213112 Performing support
Operations. activities on a
contract or fee basis
for oil and gas
operations (except
site preparation and
related construction
activities) such as
exploration (except
geophysical surveying
and mapping);
excavating slush pits
and cellars, well
surveying; running,
cutting, and pulling
casings, tubes, and
rods; cementing
wells, shooting
wells; perforating
well casings;
acidizing and
chemically treating
wells; and cleaning
out, bailing, and
swabbing wells.
Engines (Spark Ignition and 2211 ** Provision of electric
Compression Ignition) for Electric power to support oil
Power Generation. and natural gas
production where
access to the
electric grid is
unavailable.
------------------------------------------------------------------------
\a\ North American Industry Classification System.

This list is not intended to be exhaustive, but rather provides a
guide for readers regarding entities likely to be potentially affected
by this action. To determine whether your facility could be affected by
this action, you should examine the applicability criteria in the final
Federal Minor NSR Program in Indian Country (40 Code of Federal
Regulations (CFR) 49.153), as well as the proposed FIP applicability in
40 CFR 49.101. If you have any questions regarding the applicability of
this action to a particular entity, contact the appropriate person
listed in the FOR FURTHER INFORMATION CONTACT section.

B. What should I consider as I prepare my comments to the EPA?

Submitting CBI. Do not submit this information to the EPA through
regulations.gov or email. Clearly mark the part or all of the
information that you claim to be CBI. For CBI information in 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 comment that includes information claimed as
CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be disclosed except in accordance with
procedures set forth in 40 CFR part 2. Send or deliver information
identified as CBI to only the following address: Ms. Tiffany Purifoy,
c/o OAQPS Document Control Officer (Mail Code C404-02), U.S. EPA,
Research Triangle Park, NC 27711, Attention Docket ID No. EPA-HQ-OAR-
2014-0606.
Coordination of Comments on Four Actions Affecting Oil and Natural
Gas Sector. The EPA is proposing three rules that affect sources in the
oil and natural gas sector. One is today's proposed rule, the oil and
natural gas FIP for new true minor sources and minor modifications at
existing true minor sources for Indian country. The other two proposed
rules are the 2015 proposed 40 CFR part 60, subpart OOOOa rulemaking,
which updates the oil and natural gas NSPS, and the proposed rule
addressing oil and natural gas source determinations for NSR
purposes.\3\ In addition, the EPA is making available for public review
and comment a draft Control Techniques Guidelines (CTG) for the Oil and
Natural Gas Source Category document.\4\ We welcome comments on all
four of these actions. To help us respond more efficiently to public
comments on this proposal, we request that commenters submit comments
addressing the oil and natural gas NSPS signed on August 18, 2015 to
the docket for the oil and natural gas NSPS, Docket ID No. EPA-HQ-OAR-
2010-0505. Please do not send comments on the proposed oil and natural
gas NSPS to the docket for this proposed FIP. Comments addressing the
2015 proposed oil and natural gas NSPS would include comments, for
example, about the level of proposed control for the oil and natural
gas NSPS. For this proposal, we request comments on the concept of
relying on the oil and natural gas NSPS (and other applicable EPA
rules) for the oil and natural gas FIP for Indian country. We request
that comments on this concept and other comments applicable to this
proposed FIP be submitted to the docket (Docket ID No. EPA-HQ-OAR-2014-
0606). In addition, on September 18, 2015, the EPA proposed to amend 40
CFR parts 51, 52, 70, and 71 to address major source determinations for
oil and gas extraction facilities for NSR purposes.\5\ All comments
related to source determinations for oil and gas extraction facilities
should be addressed to Docket ID No. EPA-HQ-OAR-2013-0685. Finally, all
comments on the draft oil and natural gas CTG document should be
addressed to Docket ID No. EPA-HQ-OAR-2015-0216.
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\3\ ``Oil and Natural Gas Sector: Emission Standards for New and
Modified Sources,'' signed August 18, 2015, and ``Source
Determination for Certain Emission Units in the Oil and Natural Gas
Sector,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
\4\ Draft Control Techniques Guidelines for the Oil and Natural
Gas Source Category, signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
\5\ ``Source Determination for Certain Emission Units in the Oil
and Natural Gas Sector,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
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We have incorporated by reference Docket ID No. EPA-HQ-OAR-2010-
0505 and Docket ID No. EPA-HQ-OAR-2013-0685 into DOCKET ID No. EPA-HQ-
OAR-2014-0606. Comments submitted to Docket ID No. EPA-HQ-OAR-2010-0505
and Docket ID No. EPA-HQ-OAR-2013-0685 will be part of the official
record for this oil and natural gas FIP proposed action.
Docket. The docket number for this action is Docket ID No. EPA-HQ-
OAR-2014-0606.
World Wide Web (WWW). In addition to being available in the docket,
an electronic copy of this document will be posted on the WWW.
Following signature, the EPA will post a copy of this document at:
https://www.epa.gov/airquality/oilandgas/actions.html, https://www.epa.gov/nsr (regulations and standards section of the NSR home
page), and at: https://www.epa.gov/air/tribal/tribalnsr.html (tribal NSR
page).
Preparing Comments. When submitting comments, remember to:
Identify the rulemaking by docket number and other
identifying information (subject heading, Federal Register date and
page number).
Respond to specific questions and link comments to
specific CFR references when appropriate.
Explain why you agree or disagree and suggest
alternatives. Include specific regulatory text that implements your
requested changes.

[[Page 56557]]

Explain technical information and/or data that you used to
as the basis of your comment and provide references to the supporting
information.
If you estimate potential costs or burdens, explain how
you arrived at your estimate in sufficient detail to allow for it to be
reproduced.
Provide specific examples to illustrate your concerns and
suggest alternatives.
Explain your views as clearly as possible, avoiding the
use of profanity or personal threats.
Make sure to submit your comments by the comment period
deadline identified.

C. Where can I get a copy of this document and other related
information?

In addition to being available in the docket, an electronic copy of
this proposal will also be available on the WWW. Following signature by
the EPA Administrator, a copy of this notice will be posted on the
regulations and standards section of the NSR home page located at:
https://www.epa.gov/nsr, on the tribal NSR page at: https://www.epa.gov/air/tribal/tribalnsr.html, and at the oil and natural gas air pollution
standards page at https://www.epa.gov/airquality/oilandgas/actions.html.

II. Purpose

A. Proposed Oil and Natural Gas FIP

We are proposing a FIP for new true minor sources and minor
modifications at existing true minor sources in the production segment
of the oil and natural gas sector that are locating or expanding in an
Indian reservation or in another area of Indian country over which a
tribe, or the EPA, has demonstrated that the tribe has jurisdiction.
The FIP would apply to new and modified true minor sources that are
located or expanding in the referenced areas of Indian country
designated as unclassifiable, attainment, or attainment/unclassifiable.
It would not apply to new and modified true minor sources that are
located or expanding in referenced areas of Indian country designated
nonattainment. (Requirements for such areas would be addressed through
site-specific minor NSR permitting and/or separate, reservation-
specific FIPs.).
This FIP would be used instead of site-specific permits to fulfill
the EPA's obligation under the Federal Indian Country Minor NSR rule to
issue minor NSR preconstruction permits. The FIP would provide a
streamlined, alternative approach addressing the permitting
requirement, while also ensuring air quality protection through
requirements that are unambiguous and legally and practicably
enforceable. The FIP would reduce burden for sources and the Reviewing
Authority and prevent delays in new construction due to the minor NSR
permitting obligation. True minor sources in the oil and natural gas
sector would be required to comply with the FIP instead of being
required to obtain a minor source permit, unless a source chooses to
opt out of the FIP and to obtain a site-specific minor NSR permit
instead. In addition, the Reviewing Authority could require a source to
obtain a site-specific permit based on local or reservation-specific
air quality concerns where the emissions from the source could cause or
contribute to a National Ambient Air Quality Standards (NAAQS) or
increment violation. To protect the NAAQS, the Reviewing Authority
could regulate emissions from operations at the minor source not
regulated by the proposed FIP or could require more stringent emission
limitations for operations at the source regulated by the proposed FIP.
In this FIP, we are proposing to require owners and operators of
oil and natural gas production facilities to comply with six federal
standards to reduce emissions of volatile organic compounds (VOC),
nitrogen oxides (NOX), sulfur dioxide (SO2),
particulate matter (PM, PM10, PM2.5), hydrogen
sulfide (H2S), carbon monoxide (CO) and various sulfur
compounds from: compression ignition and spark ignition engines,
compressors (reciprocating and centrifugal), fuel storage tanks,
fugitive emissions from well sites and compressor stations, glycol
dehydrators, hydraulically fractured oil and gas well completions,
pneumatic controllers in production, pneumatic pumps, process heaters
and storage vessels. The proposed oil and natural gas FIP requires
compliance with four NSPS and two national emission standards for
hazardous air pollutants (NESHAP). These rules are listed in Table 2.
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\6\ Two of the six rules are NESHAPs. Our basis for requiring
compliance with NESHAPs in this rule that is designed to fulfill
requirements of the Federal Indian Country Minor NSR rule is
primarily to address criteria pollutants. These two NESHAPs control
VOC and/or NOX. VOC and NOX are NSR-regulated
pollutants of concern in the Federal Indian Country Minor NSR rule.

Table 2--Six Federal Rules Incorporated by Reference in the Proposed Oil and Natural Gas FIP for Indian Country
\6\
----------------------------------------------------------------------------------------------------------------
Potentially affected
40 CFR part and subpart Title of subpart sources in the Location
production segment
----------------------------------------------------------------------------------------------------------------
40 CFR part 63, subpart DDDDD........ National Emission Process heaters........ https://www.ecfr.gov/cgi-
Standards for bin/text-
Hazardous Air idx?SID=9f31077f895e9c
Pollutants for Major b417f5386519941a47&mc=
Sources: Industrial, true&node=sp40.14.63.d
Commercial, and dddd&rgn=div6
Institutional Boilers
and Process Heaters.
40 CFR part 60, subpart Kb........... Standards of Fuel Storage Tanks..... https://www.ecfr.gov/cgi-
Performance for bin/text-
Volatile Organic idx?SID=9f31077f895e9c
Liquid Storage Vessels b417f5386519941a47&mc=
(Including Petroleum true&node=sp40.7.60.k_
Liquid Storage 0b&rgn=div6
Vessels) for Which
Construction,
Reconstruction, or
Modification Commenced
After July 23, 1984.
40 CFR part 60, subpart IIII......... Standards of Compression Ignition https://www.ecfr.gov/cgi-
Performance for Internal Combustion bin/text-
Stationary Compression Engines. idx?SID=9f31077f895e9c
Ignition Internal b417f5386519941a47&mc=
Combustion Engines. true&node=sp40.7.60.ii
ii&rgn=div6

[[Page 56558]]

40 CFR part 60, subpart JJJJ......... Standards of Spark Ignition Internal https://www.ecfr.gov/cgi-
Performance for Combustion Engines. bin/text-
Stationary Spark idx?SID=9f31077f895e9c
Ignition Internal b417f5386519941a47&mc=
Combustion Engines. true&node=sp40.7.60.jj
jj&rgn=div6
40 CFR part 60, subpart OOOOa Standards for New and Storage Vessels, https://www.epa.gov/
(proposed). Modified Sources in Pneumatic Controllers, airquality/oilandgas/
the Oil and Natural Compressors actions.html
Gas Sector. (Reciprocating and
Centrifugal),
Hydraulically
Fractured Oil and Gas
Well Completions,
Pneumatic Pumps and
Fugitive Emissions
from Well Sites and
Compressor Stations.
----------------------------------------------------------------------------------------------------------------
40 CFR part 63, subpart HH........... National Emission Glycol Dehydrators..... https://www.ecfr.gov/cgi-
Standards for bin/text-
Hazardous Air idx?SID=9f31077f895e9c
Pollutants from Oil b417f5386519941a47&mc=
and Natural Gas true&node=sp40.11.63.h
Production Facilities. h&rgn=div6
----------------------------------------------------------------------------------------------------------------

For purposes of this FIP, we are proposing that compliance with
these rules would effectively satisfy the NSR requirements. Therefore,
we are proposing that true minor oil and natural gas sources subject to
these standards must comply with these standards as they currently
exist and as they may be amended, except for those provisions that we
specifically exclude. (This proposed FIP does not change the
applicability of the specified standards, nor does it relieve sources
subject to the standards from complying with them, independently of
this FIP.)
We are seeking comment on the concept of relying on these EPA
standards as written at the time construction or modification of the
source is begun for the requirements of the proposed oil and natural
gas FIP. The purpose is to protect air quality in Indian reservations
and in other areas of Indian country for which an Indian tribe, or the
EPA, has demonstrated the tribe's jurisdiction and are designated as
attainment, unclassifiable, or attainment/unclassifiable. It is our
intent that oil and natural gas sources in areas covered by the Federal
Indian Country Minor NSR rule using the proposed FIP would be subject,
for purposes of the proposed FIP, to any amendments to an NSPS or
NESHAP, including any amendments to the oil and natural gas NSPS that
become part of the final oil and natural gas NSPS as a result of the
2015 proposed oil and natural gas NSPS.\7\ Sources subject to this
proposed FIP would be subject to any future changes made to these six
underlying EPA standards only if they would otherwise be subject to
those future changes. To help understand the requirements of this
proposed oil and natural gas FIP, please see the 2015 proposed oil and
natural gas NSPS and the provisions for each of the six federal rules
(i.e., four NSPS and two NESHAP) identified above.
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\7\ ``Oil and Natural Gas Sector: Emission Standards for New and
Modified Sources,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
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B. Proposed Amendments to the Federal Indian Country Minor NSR Rule

Today's action proposes several amendments to the Federal Indian
Country Minor NSR rule. First, we are proposing to revise Sec.
49.151(b)(1) to establish as one of the purposes of the Federal Minor
NSR Program in Indian Country the incorporation of the FIP (Sec. Sec.
49.101 through 105) for oil and natural gas production true minor
sources located in an Indian reservation or in another area of Indian
country over which an Indian tribe, or the EPA, has demonstrated that
the tribe has jurisdiction. Also, to clarify the purpose of subpart C,
we are proposing to revise the subpart heading.
Second, we are proposing to revise Sec. 49.151(c)(1)(iii)(A) to
conform the registration deadline to the proposed, extended permitting
deadline in Sec. 49.151(c)(1)(iii)(B).
Third, we are proposing to revise Sec. 49.151(c)(1)(iii)(B) to
establish a deadline for when new and modified true minor sources in
the production segment of the oil and natural gas sector that are
located in an Indian reservation or in another area of Indian country
over which an Indian tribe, or the EPA, has demonstrated that the tribe
has jurisdiction or planning to locate in such areas must comply with
the FIP in lieu of obtaining a minor NSR permit, unless the source opts
for a site-specific minor NSR permit. If a source opts-out of the FIP,
then we are proposing to extend the date for when the source must
obtain a minor source permit. We are proposing to extend the deadline
from March 2, 2016, to October 3, 2016.
Fourth, we are proposing to revise Sec. 49.151(d)(1), (2) and (4)
to incorporate compliance with the FIP.
Fifth, we are proposing to revise Sec. Sec. 49.153(a)(1)(i)(B) and
(ii)(B) to establish that oil and natural gas production true minor
sources are required to comply with the FIP, unless a source opts out
of the FIP pursuant to Sec. 49.101(b)(2) or is required by the EPA to
obtain a source-specific minor source permit pursuant to Sec.
49.101(b)(3).
Sixth, we are proposing to revise Sec. Sec. 49.160(c)(1)(ii) and
(iii), to add Sec. 49.160(c)(1)(iv) and to revise Sec. 49.160(c)(4).
We are revising Sec. 49.160(c)(1)(ii) to conform the registration
deadline to the extended permitting deadline in Sec.
49.151(c)(1)(iii)(B). For Sec. 49.160(c)(1)(iii) and Sec.
49.160(c)(1)(iv), we are establishing that sources subject to the FIP
still have to register with the Reviewing Authority, and we describe
how to do that. For Sec. 49.160(c)(4), we are proposing to clarify
that submitting a registration form does not relieve a source of the
requirement to comply with the FIP if the source (or any physical or
operational change at the source) would be subject to any minor NSR
rule.
Finally, we are revising the definition of Indian country in Sec.
49.152(d) to comport with a court decision that

[[Page 56559]]

addressed EPA's jurisdiction to implement the Federal Indian Country
Minor NSR rule: Oklahoma Dept. of Environmental Quality v. EPA, 740
F.3d 185 (D.C. Cir. 2014). This court decision also affects the
definition of Indian country under the Federal Major New Source Review
Program in Indian Country so we are changing the definition under the
Federal Indian Country Major NSR rule in Sec. 49.167.

III. Background

A. Tribal Authority Rule

Section 301(d) of the Clean Air Act (CAA) authorizes the EPA to
treat Indian tribes in the same manner as states and directs the EPA to
promulgate regulations specifying those provisions of the CAA for which
such treatment is appropriate. (42 U.S.C.Sec. 7601(d)(1) and (2)). It
also authorizes the EPA, in circumstances in which the EPA determines
that the treatment of Indian tribes as identical to states is
inappropriate or administratively infeasible, to provide by regulation
other means by which the EPA will directly administer the CAA. (42
U.S.C. Sec. 7601(d)(4)) Acting principally pursuant to that authority,
on February 12, 1998,\8\ the EPA promulgated what we refer to as the
Tribal Authority Rule (TAR). (40 CFR 49.1-49.11). In the TAR, we
determined that it was appropriate to treat tribes in the same manner
as states for all CAA and regulatory purposes except a list of
specified CAA provisions and implementing regulations thereunder. (40
CFR 49.4) Among those provisions of the CAA for which we determined
that tribes will not be treated in the same manner as states are
specific plan submittal and implementation deadlines for NAAQS-related
requirements, including the requirement under section 110(a)(2)(c) to
submit a program, including a permit program as required in parts C and
D of the CAA, to regulate the modification and construction of any
stationary source as necessary to assure that the NAAQS are achieved.
In the TAR, we also determined that we would not treat tribes in the
same manner as states with respect to CAA section 110(a)(1) (State
Implementation Plan (SIP) submittal) and CAA section 110(c)(1)
(directing the EPA to promulgate a FIP ``within 2 years'' after we find
that a state has failed to submit a required plan, or has submitted an
incomplete plan, or within 2 years after we disapproved all or a
portion of a plan), among other provisions.\9\
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\8\ ``Indian Tribes: Air Quality Planning and Management,'' U.S.
Environmental Protection Agency, 63 FR 7254, February 12, 1998,
https://www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98-3451.pdf.
\9\ See 40 CFR 49.4(a) and (d) and 63 FR at 7262-66, February
12, 1998.
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The TAR preamble clarified that by including CAA section 110(c)(1)
on the Sec. 49.4 list, ``EPA is not relieved of its general obligation
under the CAA to ensure the protection of air quality throughout the
nation, including throughout Indian country. The preamble confirmed
that the ``EPA will continue to be subject to the basic requirement to
issue a FIP for affected tribal areas within some reasonable
time.''\10\ In the TAR, we thus exercised our discretionary authority
under CAA Sec. Sec. 301(a) and 301(d)(4) to establish a regulation
providing that we would promulgate without unreasonable delay such FIP
provisions as are necessary or appropriate to protect air quality (40
CFR 40.11(a)). Section 49.11(a) provides that the EPA will promulgate a
FIP as necessary or appropriate to protect tribal air quality within a
reasonable time if tribal efforts do not result in adoption and
approval of tribal plans or programs.\11\
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\10\ See CAA section 301(a) and 63 FR at 7265, February 12,
1998.
\11\ Section 49.11(a) states that the EPA, ``[s]hall promulgate
without unreasonable delay such federal implementation plan
provisions as are necessary or appropriate to protect air quality,
consistent with the provisions of sections 301(a) and 301(d)(4), if
a tribe does not submit a tribal implementation plan meeting the
completeness criteria of 40 CFR part 51, Appendix V, or does not
receive EPA approval of a submitted tribal implementation plan''
(see 40 CFR 49.11(a)).
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On August 21, 2006, acting pursuant to that authority, we proposed
the regulation: ``Review of New Sources and Modifications in Indian
Country'' (i.e., Indian Country NSR rule).\12\ Within this regulation,
the EPA proposed to protect air quality in areas covered by the Federal
Indian Country Minor NSR rule by establishing a FIP program to regulate
the modification and construction of stationary sources consistent with
the requirements of section 110(a)(2)(c) of the CAA. We call this part
of the Indian Country NSR rule the Federal Indian Country Minor NSR
rule. Under the Federal Indian Country Minor NSR rule, we proposed to
provide a mechanism for issuing preconstruction permits for the
construction of new minor sources and certain modifications of major
and minor sources in areas covered by the Federal Indian Country Minor
NSR rule. In developing the rule, the EPA conducted extensive outreach
and consultation along with a 7-month public comment period that ended
on March 20, 2007. The comments provided detailed information specific
to Indian country and the final Federal Indian Country Minor NSR rule
incorporated many of the suggestions we received. We promulgated final
rules on July 1, 2011,\13\ and the FIP became effective on August 30,
2011.
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\12\ ``Review of New Sources and Modifications in Indian
Country,'' U.S. Environmental Protection Agency, 71 FR 48696, August
21, 2006, https://www.gpo.gov/fdsys/pkg/FR-2006-08-21/html/06-6926.htm.
\13\ ``Review of New Sources and Modifications in Indian
Country,'' U.S. Environmental Protection Agency, 76 FR 38748, July
1, 2011, https://www.federalregister.gov/articles/2011/07/01/2011-14981/review-of-new-sources-and-modifications-in-indian-country.
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B. Federal Indian Country Minor NSR Rule

1. What is the Federal Indian Country Minor NSR Rule?
The Federal Indian Country Minor NSR rule applies to new and
modified minor stationary sources and to minor modifications at
existing major stationary sources located in Indian country\14\ where
there is no EPA-approved program in place. Tribes can elect to develop
and implement their own EPA-approved program under the Tribal Authority
Rule (TAR),\15\ but they are not required to do so.\16\ In the absence
of an EPA-approved tribal program, the EPA implements the program.
Alternatively, tribes can take administrative delegation of the federal
program from the EPA and become the Reviewing Authority.
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\14\ The Federal Indian Country Minor NSR rule defines ``Indian
country'' to include three categories of lands consistent with 18
U.S.C. 1151, i.e., Indian reservations, dependent Indian
communities, and Indian allotments. The U.S. Court of Appeals for
the District of Columbia Circuit vacated the rule with respect to
non-reservation areas of Indian country (i.e., dependent Indian
communities and Indian allotments) (Oklahoma Dept. of Environmental
Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The court held that
the state, not tribes or the EPA, has initial primary responsibility
for implementation plans under CAA section 110 in non-reservation
areas of Indian country in the absence of a demonstration of tribal
jurisdiction by the EPA or a tribe. The rule, therefore, does not
apply in non-reservation areas of Indian country unless a tribe or
the EPA has demonstrated that a tribe has jurisdiction in a
particular non-reservation area of Indian country.
\15\ To be eligible to develop and implement an EPA-approved
program, under the Tribal Authority Rule a tribe must meet four
requirements: (1) Be a federally-recognized tribe; (2) have a
functioning government carrying out substantial duties and powers;
(3) propose to carry out functions pertaining to air resources of
the reservation or other areas within the tribe's jurisdiction; and
(4) be reasonably expected to be capable of carrying out the
program. For more information go to: ``Indian Tribes: Air Quality
Planning and Management,'' U.S. Environmental Protection Agency, 63
FR 7254, February 12, 1998, https://www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98-3451.pdf.
\16\ Tribes can also establish permit fees under a tribal
permitting program, as do most states.

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[[Page 56560]]

Beginning September 2, 2014,\17\ any new stationary source that
will emit, or will have the potential to emit (PTE), a regulated NSR
pollutant in amounts that will be: (a) Equal to or greater than the
minor NSR thresholds, established in the Federal Indian Country Minor
NSR rule; and (b) less than the amount that would qualify the source as
a major source or a major modification for purposes of the Prevention
of Significant Deterioration (PSD) or nonattainment major NSR programs,
must apply for and obtain a minor NSR permit before beginning
construction of the new source. Likewise, any existing stationary
source (minor or major) must apply for and obtain a minor NSR permit
before beginning construction of a physical or operational change that
will increase the allowable emissions of the stationary source by more
than the specified threshold amounts, if the change does not otherwise
trigger the permitting requirements of the PSD or nonattainment major
NSR program(s).\18\
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\17\ For oil and natural gas true minor sources, this date was
extended to March 2, 2016. This notice proposes to extend it to
October 3, 2016. For more information, see: ``Review of New Sources
and Modifications in Indian Country Amendments to the Registration
and Permitting Deadlines for True Minor Sources,'' 79 FR 34231, June
16, 2014, https://www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014-14030.pdf.
\18\ A source may, however, be subject to certain monitoring,
recordkeeping and reporting (MRR) requirements under the major NSR
programs, if the change has a reasonable possibility of resulting in
a major modification. A source may be subject to both the Federal
Indian Country Minor NSR rule and the reasonable possibility MRR
requirements of the major NSR program(s).
---------------------------------------------------------------------------

In addition, among other things, the Federal Indian Country Minor
NSR rule created a framework for the EPA to streamline the issuance of
preconstruction permits to true minor sources by using general permits.
2. What are the minor NSR thresholds?
The ``minor NSR thresholds'' establish cutoff levels for each
regulated NSR pollutant. If a source has a PTE in amounts lower than
the thresholds, then it is exempt from the Federal Indian Country Minor
NSR rule (see Table 3 and 40 CFR 49.153) for that pollutant. New or
modified sources that have a PTE in amounts that are: (1) Equal to or
greater than the minor NSR thresholds; and (2) less than the major NSR
thresholds (generally 100 or 250 tons per year (tpy)) are ``minor
sources'' of emissions and subject to the Federal Indian Country Minor
NSR rule requirements at 40 CFR 49.151 through 161.

TABLE 3--Minor NSR Thresholds for Sources in Indian Country \19\
------------------------------------------------------------------------
Minor NSR Minor NSR
thresholds thresholds
Regulated NSR pollutant for for
nonattainment attainment
areas (tpy) areas (tpy)
------------------------------------------------------------------------
CO.......................................... 5 10
NOX......................................... \20\ 5 10
SO2......................................... 5 10
VOC......................................... \21\ 2 5
PM.......................................... 5 10
PM10........................................ 1 5
PM2.5....................................... 0.6 3
Lead........................................ 0.1 0.1
Fluorides................................... NA 1
Sulfuric acid mist.......................... NA 2
H2S......................................... NA 2
Total reduced sulfur (including H2S)........ NA 2
Reduced sulfur compounds (including H2S).... NA 2
Municipal waste combustor emissions......... NA 2
Municipal solid waste landfill emissions NA 10
(measured as nonmethane organic compounds).
------------------------------------------------------------------------

---------------------------------------------------------------------------

\19\ If part of a tribe's area of Indian country is designated
as attainment and another part as nonattainment, the applicable
threshold for a proposed source or modification is determined based
on the designation where the source would be located. If the source
straddles the two areas, the more stringent thresholds apply.
\20\ In extreme ozone nonattainment areas, section 182(e)(2) of
the CAA requires any change at a major source that results in any
increase in emissions to be subject to major NSR permitting. In
other words, any changes to existing major sources in extreme ozone
nonattainment areas are subject to a ``0'' tpy threshold, but that
threshold does not apply to minor sources.
\21\ Id.
---------------------------------------------------------------------------

There may be sources that have emissions that are above the
emission thresholds defined for a true minor source but which fall
below the applicability levels for specific requirements referenced in
the FIP. For example, the oil and natural gas sector NSPS, subpart
OOOOa, includes a VOC threshold of 6 tpy for storage vessel
applicability. In cases where a facility may have VOC emissions above 5
tpy but below 6 tpy, owners or operators would not be subject to the
storage vessel provisions but would still be required under the
proposed FIP to register with their appropriate regional office.
3. What is a true minor source?
``True minor source,'' under the Federal Indian Country Minor NSR
rule, means a source that emits, or has the potential to emit,
regulated NSR pollutants in amounts that are less than the major source
thresholds under either the PSD Program at 40 CFR 52.21, or the Federal
Major NSR Program for Nonattainment Areas in Indian Country at 40 CFR
49.166-49.173, but equal to or greater than the minor NSR thresholds in
40 CFR 49.153, without the need to take an enforceable restriction to
reduce its PTE to such levels. A source's PTE includes fugitive
emissions, to the extent that they are quantifiable, only if the source
belongs to one of the 28 source categories listed in part 51, Appendix
S, paragraph II.A.4(iii) or 40 CFR 52.21(b)(1)(iii), as applicable.
4. What is a general permit?
The Federal Indian Country Minor NSR rule specified the process and
requirements for using general permits to authorize construction and
modifications at true minor sources as a

[[Page 56561]]

streamlined permitting approach. A general permit, for purposes of this
action, is a permit document that contains standardized requirements
that multiple stationary sources can use. The EPA may issue a general
permit for categories of emission units or stationary sources that are
similar in nature, have substantially similar emissions, and would be
subject to the same or substantially similar permit requirements.\22\
``Similar in nature'' refers to size, processes, and operating
conditions. The purpose of a general permit is to provide for
protection of air quality, while simplifying the permitting process for
similar minor sources. General permits offer a cost-effective means of
issuing permits and provide a quicker and simpler mechanism for
permitting minor sources than the site-specific permitting process.
---------------------------------------------------------------------------

\22\ ``Review of New Sources and Modifications in Indian
Country,'' U.S. Environmental Protection Agency, 76 FR 38770, July
1, 2011, https://www.federalregister.gov/articles/2011/07/01/2011-14981/review-of-new-sources-and-modifications-in-indian-country.
---------------------------------------------------------------------------

5. What is a permit by rule?
Like a general permit, a permit by rule is a standard set of
requirements that can apply to multiple stationary sources with similar
emissions characteristics. For purposes of this action, a permit by
rule would differ from a general permit in that the EPA would codify a
permit by rule directly into the Federal Indian Country Minor NSR rule.
The process for a source to obtain coverage under a permit by rule is
more streamlined compared to a standard general permit, or a site-
specific permit.

C. General Permits and Permits by Rule for the Federal Minor New Source
Review Program in Indian Country--Final Rules

On May 1, 2015, the EPA published a final rule, ``General Permits
and Permits by Rule for the Federal Minor NSR Program in Indian Country
for Five Source Categories,'' to simplify the CAA permitting process
for certain smaller sources of air pollution commonly found in Indian
country.\23\ In the action, the EPA finalized general permits for use
in areas covered by the Federal Indian Country Minor NSR rule for new
or modified minor sources in the following two source categories: Hot
mix asphalt plants and stone quarrying, crushing and screening
facilities. The EPA also finalized permits by rule for use in areas
covered by the Federal Indian Country Minor NSR rule for new or
modified minor sources in three source categories: Auto body repair and
miscellaneous surface coating operations; gasoline dispensing
facilities; and petroleum dry cleaning facilities. The EPA also took
final action authorizing the use of general permits established under
the program to create synthetic minor sources.
---------------------------------------------------------------------------

\23\ ``General Permits and Permits by Rule for the Federal Minor
New Source Review Program in Indian Country for Five Source
Categories,'' U.S. Environmental Protection Agency, 80 FR 25068, May
1, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf.
---------------------------------------------------------------------------

On July 17, 2014, the EPA published a proposed rule, ``General
Permits and Permits by Rule for the Federal Minor NSR Program in Indian
Country,'' to simplify the CAA permitting process for certain other
smaller sources of air pollution commonly found in Indian country.\24\
In the action, the EPA made available draft general permits for use in
areas covered by the Federal Indian Country Minor NSR rule for new or
modified minor sources in the following five source categories:
Concrete batch plants; boilers; stationary spark ignition engines;
stationary compression ignition engines; and sawmill facilities. The
EPA also proposed a permit by rule for use in areas covered by the
Federal Indian Country Minor NSR rule for new or modified minor sources
in the graphic arts and printing operations source category.
---------------------------------------------------------------------------

\24\ ``General Permits and Permits by Rule for the Federal Minor
New Source Review Program in Indian Country,'' 79 FR 41846, July 17,
2014, https://www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/2014-16814.pdf.
---------------------------------------------------------------------------

D. EPA Actions Affecting Oil and Natural Gas Minor Sources in Areas
Covered by the Federal Indian Country Minor NSR Rule

On January 14, 2014, the EPA published a proposed rule, ``General
Permits and Permits by Rule for the Federal Minor New Source Review
Program in Indian Country,'' \25\ that included two proposed amendments
that affected true minor sources in the production segment of the oil
and natural gas sector. The proposed amendments were: (1) The extension
of the deadline by which new true minor sources and minor modifications
of existing true minor sources in the production segment of the oil and
natural gas sector must receive minor NSR permits prior to commencing
construction, from September 2, 2014, to March 2, 2016; and (2) an
adjustment to the deadline by which existing true minor sources in the
production segment of the oil and natural gas sector must register,
from September 2, 2014, to March 2, 2016. On June 16, 2014, the EPA
finalized those amendments as proposed.\26\
---------------------------------------------------------------------------

\25\ The ``General Permits and Permits by Rule for the Federal
Minor New Source Review Program in Indian Country'' was proposed on
January 14, 2014 (79 FR 2546). Proposed changes to the Federal
Indian Country Minor NSR rule are on pages 79 FR 2570-2572.
Electronic copies are available in the docket and in the regulations
and standards section of our NSR home page located at https://www.epa.gov/nsr.
\26\ For more information, see: ``Review of New Sources and
Modifications in Indian Country Amendments to the Registration and
Permitting Deadlines for True Minor Sources,'' 79 FR 34231, June 16,
2014, https://www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014-14030.pdf.
---------------------------------------------------------------------------

On June 5, 2014, the EPA published an advance notice of proposed
rulemaking (ANPR).\27\ The purpose of the ANPR was to solicit broad
feedback on the most effective and efficient means of implementing the
Federal Minor NSR Program in Indian Country for sources in the
production segment of the oil and natural gas sector. In it we
discussed alternatives to site-specific permits for new and modified
minor sources engaged in oil and natural gas production activities. The
EPA requested comments on the alternative approaches and other aspects
of managing air emissions from oil and natural gas sources in areas
covered by the Federal Indian Country Minor NSR rule. The ANPR asked
for public comment on: (1) The inclusion of existing minor source
emissions in a FIP; (2) the advantages and disadvantages of available
approaches (i.e., FIP, permit by rule, or general permit) to manage
emission impacts from the sources in the production segment of the oil
and natural gas sector in areas covered by the Federal Indian Country
Minor NSR rule; (3) the activities and pollutants that warrant
regulation; (4) the coordination of compliance between any approach
selected and the Federal Minor NSR Program in Indian Country; and (5)
the appropriate emission control requirements.
---------------------------------------------------------------------------

\27\ For more information, see: ``Managing Emissions from Oil
and Natural Gas Production in Indian Country,'' 79 FR 32502, June 5,
2014, https://www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/2014-12951.pdf.
---------------------------------------------------------------------------

We received 20 comments on the issues raised in the ANPR. Three
comments were from tribes; one comment was from a federal government
agency; three comments were from environmental groups; ten comments
were from oil and natural gas companies or industry trade associations;
and three comments were from anonymous commenters. The comments are
summarized in a document entitled: ``Summary of Public Comments for
Managing Emissions: Oil and Natural Gas Production in Indian Country''
and can be found in Docket ID

[[Page 56562]]

No. EPA-HQ-OAR-2011-0151, which has been incorporated by reference into
the docket for this action, Docket ID No. EPA-HQ-OAR-2014-0606.
We reviewed and carefully considered all the comments we received
on the ANPR in developing this proposed FIP. Although not presented in
a comment and response format, our consideration of the comments is
evident throughout the discussions in this preamble. Commenters who
wish their comments on the ANPR to also be considered in the
development of the final FIP must resubmit those comments to the docket
during the open public comment period for this proposed action.
On September 18, 2015, the EPA proposed updates to the NSPS for the
oil and natural gas sector.\28\ This proposed FIP adopts the standards
from six federal rules, including the oil and natural gas NSPS (see
Table 2). Future changes to these rules could affect requirements in
the FIP because the proposed FIP adopts all or parts of these six
federal emission standards, including future amendments. In addition,
on September 18, 2015, the EPA proposed an oil and natural gas source
determination rule.\29\ This action is also connected to this FIP as it
would affect how oil and natural gas sources are defined for the
purpose of major/minor source determinations.
---------------------------------------------------------------------------

\28\ ``Oil and Natural Gas Sector: Emission Standards for New
and Modified Sources,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
\29\ ``Source Determination for Certain Emission Units in the
Oil and Natural Gas Sector,'' signed August 18, 2015, https://www.epa.gov/airquality/oilandgas/actions.html.
---------------------------------------------------------------------------

E. What is a FIP?

Under section 302(y) of the CAA, the term ``Federal implementation
plan'' means ``. . . a plan (or portion thereof) promulgated by the
Administrator to fill all or a portion of a gap or otherwise correct
all or a portion of an inadequacy in a SIP, and which includes
enforceable emission limitations or other control measures, means or
techniques (including economic incentives, such as marketable permits
or auctions of emission allowances), and provides for attainment of the
relevant national ambient air quality standard.''
We interpret the reference to a ``gap'' in a SIP as including
circumstances where a SIP does not apply (i.e., on most Indian
reservations and other areas of Indian country over which an Indian
tribe, or the EPA, has demonstrated that the tribe has jurisdiction)
and the relevant tribe has not implemented an EPA-approved plan. SIPs
do not apply in these areas. In these circumstances, CAA Sec. Sec.
301(a) and 301(d)(4) and 40 CFR 49.11(a) authorize the EPA to
promulgate FIPs as are necessary or appropriate to protect air quality.
The Federal Indian Country Minor NSR rule is an example of a FIP.
In that rule, we identified a regulatory gap that could have the effect
of adversely impacting air quality due to the lack of approved minor
NSR permit programs to regulate construction of new and modified minor
sources and minor modifications of major sources in areas covered by
the Federal Indian Country Minor NSR rule. The EPA promulgated the FIP
to ensure that air resources in areas covered by the Federal Indian
Country Minor NSR rule are protected by establishing a preconstruction
permitting program to regulate emission increases resulting from
construction and modification activities that are not already regulated
by the major NSR permitting programs.
Because there are also no currently approved TIPs specifically
applying to the issuance of general permits with respect to the
reduction of emissions related to oil and natural gas production
facilities, we believe a FIP is needed to protect air quality in areas
covered by the Federal Indian Country Minor NSR rule. This proposed FIP
would adopt legally and practicably enforceable requirements to control
and reduce air emissions from oil and natural gas production.
Therefore, in this rule, we propose to determine that it is necessary
or appropriate to exercise our discretionary authority under sections
301(a) and 301(d)(4) of the CAA and 40 CFR 49.11(a) to promulgate a FIP
to remedy an existing regulatory gap under the CAA with respect to oil
and natural gas production operations in areas covered by the Federal
Indian Country Minor NSR rule where there is no EPA-approved plan in
place.

F. Oil and Natural Gas Sector

The oil and natural gas sector includes operations involved in the
extraction and production of oil and natural gas, as well as the
processing, transmission and distribution of natural gas.\30\
Specifically for oil, the sector includes all operations from the well
to the point of custody transfer to an oil transmission pipeline or
other means of transportation to a petroleum refinery. For natural gas,
the sector includes all operations from the well to the final end user.
The oil and natural gas sector can generally be separated into four
segments: (1) Oil and natural gas production; (2) natural gas
processing; (3) natural gas transmission and storage; and (4) natural
gas distribution.
---------------------------------------------------------------------------

\30\ For a more detailed discussion about the oil and natural
gas sector, see the preamble to the ANPR at 79 FR 32505-32508, June
5, 2014.
---------------------------------------------------------------------------

The proposed oil and natural gas FIP focuses on the first segment,
oil and natural gas production, because we believe the oil and natural
gas production segment includes the majority of the true minor sources
in the sector that would need to obtain a minor source permit in areas
covered by the Federal Indian Country Minor NSR rule. The oil and
natural gas production segment includes the wells and all related
processes used in the extraction, production, recovery, lifting,
stabilization, and separation or treatment of oil and/or natural gas
(including condensate). Production components may include, but are not
limited to, wells and related casing head, tubing head and ``Christmas
tree'' piping, as well as pumps, compressors, heater treaters,
separators, storage vessels, pneumatic devices and natural gas
dehydrators. Production operations also include the well drilling,
completion and workover processes and include all the portable non-
self-propelled apparatuses associated with those operations. Production
sites include not only the sites where the wells themselves are
located, but also include centralized gas and/or liquid gathering
facilities where oil, condensate, produced water, and natural gas from
several wells may be separated, stored, and treated. The production
segment also includes the low to medium pressure, smaller diameter,
gathering pipelines and related components that collect and transport
the oil, natural gas and other materials and wastes from the wells or
well pads.
The natural gas production segment ends where the natural gas
enters a natural gas processing plant. In situations where there is no
processing plant, the natural gas production segment ends at the point
where the natural gas enters the transmission segment for long-line
transport. The crude oil production segment ends at the storage and
load-out terminal which is the point of custody transfer to an oil
pipeline or for transport of the crude oil to a petroleum refinery via
trucks or railcars. The petroleum refinery is not considered part of
the oil and natural gas sector. Thus, with respect to crude oil, the
oil and natural gas sector ends at point of custody transfer where
crude oil enters an oil transmission pipeline or other means of
transportation to a petroleum refinery.
Pollutants emitted from these activities that would be regulated
through the proposed Federal Minor

[[Page 56563]]

NSR Program in Indian Country (regulated NSR pollutants) include: VOC,
NOX, SO2, PM, PM10, PM2.5,
H2S, CO and various sulfur compounds. Hydrogen sulfide and
SO2 are emitted from production and processing operations
that handle and treat sour gas.\31\
---------------------------------------------------------------------------

\31\ Sour gas is natural gas with more than 5.7 milligrams of
H2S per normal cubic meters (0.25 grains/100 standard
cubic feet), see AP-42 Compilation of Air Pollutant Emission
Factors, Chapter 5.0 Introduction to Petroleum Industry, Section 5.3
Natural Gas Processing, available at: https://www.epa.gov/ttnchie1/ap42/ch05/final/c05s03.pdf.
---------------------------------------------------------------------------

IV. Summary of Proposed Oil and Natural Gas FIP

A. Overview

This proposed oil and natural gas FIP would require owners and
operators of new and modified existing minor sources in the oil and
natural gas production segment that are located in areas covered by the
Federal Indian Country Minor NSR rule to comply with six federal rules.
One of the rules this FIP proposes to adopt is certain requirements of
the proposed 40 CFR part 60, subpart OOOOa requirements.\32\
Requirements under proposed NSPS, subpart OOOOa that have been proposed
include those requirements that involve oil and natural gas
production.\33\
---------------------------------------------------------------------------

\32\ Proposed 40 CFR part 60, subpart OOOOa covers the emission
sources covered under existing 40 CFR part 60, subpart OOOO, as well
as adding coverage of new and modified emission sources beyond those
covered in existing 40 CFR part 60, subpart OOOO. These additional
sources are hydraulically fractured oil well completions, pneumatic
pumps and fugitive emissions from well sites and compressor
stations.
\33\ This list includes centrifugal compressors, reciprocating
compressors, pneumatic controllers, pneumatic pumps, fugitive
emissions from compressor stations, storage vessels. It excludes
sources located in the transmission and storage segment because they
are not part of this FIP proposal, which focusses on production.
---------------------------------------------------------------------------

These six rules are listed in Table 2 and provide requirements for:
Storage vessels;
Pneumatic controllers in production;
Compressors (reciprocating and centrifugal);
Hydraulically fractured oil and gas well completions;
Pneumatic pumps;
Fugitive emissions from well sites and compressor
stations;
Glycol dehydrators;
Compression ignition and spark ignition engines;
Fuel storage tanks; and
Process heaters
The six rules and the provisions of each that the proposed oil and
natural gas FIP would reference are discussed in more detail in this
section. The proposed FIP requirements cover emission limitations and
standards, monitoring, and testing and recordkeeping and reporting. For
purposes of this FIP, we are proposing that true minor sources subject
to these adopted standards must comply with these standards, as they
currently exist or as amended in the future, except for those
provisions that we specifically exclude under the FIP (unless the
source opts-out of the FIP and obtains a source-specific permit). The
excluded provisions are listed below. (This FIP does not change the
applicability of the specified standards, nor does it relieve sources
subject to the standards from complying with them, independently of
this FIP.)
Also discussed in this section are proposed features of the FIP and
proposed amendments to the Federal Indian Country Minor NSR rule.

B. What are the proposed FIP requirements?

We are proposing for purposes of this FIP, that owners and
operators who determine that their new true minor source, or the
modification of their existing true minor source, meets the
applicability criteria of the proposed FIP must comply with all of the
applicable and relevant requirements of the six federal rules listed in
Table 2 above as written at the time construction or reconstruction of
the source is begun, unless we exclude certain provisions as proposed
below. In general, for this proposed FIP, we are proposing to exclude
specific provisions of the rules because they are not relevant they
would not apply to oil and natural gas production operations (e.g.,
emission points at natural gas processing plants) or they apply only to
manufacturers and not owner/operators.
For purposes of this FIP, we are proposing that true minor sources
that are subject to 40 CFR part 63, subpart DDDDD (National Emission
Standards for Hazardous Air Pollutants for Major Sources: Industrial,
Commercial, and Institutional Boilers and Process Heaters), must comply
with all of the applicable provisions of the standard as written at the
time construction or reconstruction of the source is begun.
For purposes of this FIP, we are proposing that true minor sources
that are subject to part 60, subpart IIII--Standards of Performance for
Stationary Compression Ignition Internal Combustion Engines, must
comply with all of the applicable provisions of the standard as written
at the time construction or reconstruction of the source is begun,
except for the following:
Sec. 60.4200(a)(1)--Am I subject to this subpart?
(applies to manufacturers);
Sec. 60.4200(b)--Not applicable to stationary ignition
internal combustion engine being tested at an engine test cell/stand;
Sec. 60.4200(c)--Am I subject to this subpart? (area
sources and exemptions from Title V permits);
Sec. 60.4201--What emission standards must I meet for
non-emergency engines if I am a stationary compression ignition
internal combustion engine manufacturer?;
Sec. 60.4202--What emission standards must I meet for
emergency engines if I am a stationary compression ignition internal
combustion engine manufacturer?;
Sec. 60.4203--How long must my engines meet the emission
standards if I am a manufacturer of stationary compression ignition
internal combustion engines?;
Sec. 60.4210--What are my compliance requirements if I am
a stationary compression ignition internal combustion engine
manufacturer?; and
Sec. 60.4215--What requirements must I meet for engines
used in Guam, American Samoa, or the Commonwealth of the Northern
Mariana Islands?
For purposes of this FIP, we are proposing that true minor sources
that are subject to part 60, subpart JJJJ--Standards of Performance for
Stationary Spark Ignition Internal Combustion Engines, must comply with
all of the applicable provisions of the standard as written at the time
construction or reconstruction of the source is begun, except for the
following:
Sec. 60.4230(b)--Not applicable to stationary spark
ignition internal combustion engines being tested at an engine test
cell/stand;
Sec. 60.4230(c)--Exemption for obtaining a Title V permit
if owner or operator of an area source subject to this part;
Sec. 60.4231 and Sec. 60.4232--Emission standards for
manufacturers;
Sec. 60.4238 through Sec. 60.4242--Compliance
Requirements for Manufacturers; and
Sec. 60.4247--Mobile source provisions that apply to
manufacturers of stationary spark ignition internal combustion engines
or equipment containing such engines.
For purposes of this FIP, we are proposing that true minor sources
that are subject to part 60, subpart Kb--Standards of Performance for
Volatile Organic Liquid Storage Vessels, must comply with all of the
provisions of the standard as written at the time

[[Page 56564]]

construction or reconstruction of the source is begun, except for the
following:
Sec. 60.112b(c)--Site-specific standard for Merck & Co.,
Inc.'s Stonewall Plant in Elkton, Virginia; and
Sec. 60.117b(a) and (b)--Delegation of authority.
For purposes of this FIP, we are proposing that true minor sources
that are subject to proposed part 60, subpart OOOOa--Standards for New
and Modified Sources in the Oil and Natural Gas Sector, must comply
with all of the applicable provisions of the standard as written at the
time construction or reconstruction of the source is begun, except for
the following:
Sec. 60.5365a(f)(3)--Equipment exemption at processing
plant;
Sec. 60.5365a(h)(4)--Existing sources constructed after
August 23, 2011;
Sec. 60.5370a(c)--Permit exemption;
Sec. 60.5413a(a)(5)--Exemptions from performance
testing--hazardous waste incinerator;
Sec. 60.5420a(a)(2)(i)--Advance notification requirements
for well completions; and
Sec. 60.5420a(a)(2)(ii)--Advance notification
requirements of well completions when subject to state regulation that
requires advance notification.
For purposes of this FIP, we are proposing that true minor sources
that are subject to 40 CFR part 63, subpart HH--NESHAP from Oil and
Natural Gas Production Facilities, must comply with all of the
applicable provisions of the standard as written at the time
construction or reconstruction of the source is begun, except for the
following:
Sec. 63.760(a)(2)--Facilities that process, upgrade or
store hydrocarbon liquids;
Sec. 63.760(b)(1)(ii)--Each storage vessel with the
potential for flash emissions;
Sec. 63.760(b)(1)(iii)--Equipment located at natural gas
processing plants;
Sec. 63.760(g)--Recordkeeping for major sources that
overlap with other regulations for equipment leaks;
Sec. 63.764(c)(2)-(3)--Requirements for compliance with
standards for storage vessels and equipment at natural gas processing
plants, respectively;
Sec. 63.766--Storage vessel standards; and
Sec. 63.769--Equipment leak standards.
Additionally, we are proposing that prior to beginning
construction, under proposed Sec. 49.104, true minor sources are
required to address procedures for assessing threatened and endangered
species and historic properties. The proposed section provides two
options: (1) A site-specific National Environmental Policy Act (NEPA)
process has been completed for the specific oil and natural gas
activity, and the owner/operator also meets all air quality-related
requirements as specified by the decision document (Record of Decision
or Finding of No Significant Impact) for its NEPA analysis (these
requirements are typically implemented and enforced as conditions of an
approved Surface Use Plan of Operations and/or Application for Permit
to Drill); or (2) submittal of documentation to the EPA Regional Office
(and to the tribe where the source is located/locating) demonstrating
that the source has completed the screening processes specified for
consideration of threatened and endangered species and historic
properties and received a determination from the EPA stating that it
has satisfactorily completed these processes. (The processes are
contained in the following document: ``Procedures to Address Threatened
and Endangered Species and Historic Properties for New or Modified True
Minor Oil and Natural Gas Production Sources in Indian Country
Complying with the Oil and Natural Gas Minor Source Federal
Implementation Plan,'' https://www.epa.gov/air/tribal/tribalnsr.html.)

C. Site-Specific Permits

We are proposing that owners and operators of new and modified true
minor oil and natural gas sources that meet all of the following
criteria must comply with the requirements contained in Sec. Sec.
49.101 through 49.105 of this proposed FIP, unless the owner or
operator opts-out of the FIP and instead obtains a site-specific permit
per proposed Sec. Sec. 49.101(b)(2) and (3):
The facility is an oil and natural gas production facility
as defined in proposed Sec. 49.102;
The oil and natural gas production facility is located in
areas covered by the Federal Indian Country Minor NSR rule as defined
in Sec. 49.152(d) as proposed to be amended in this action;
The oil and natural gas production facility is a new true
minor source or a minor modification of an existing true minor source
as determined under Sec. 49.153;
The oil and natural gas production facility begins
construction or modification on or after October 3, 2016, the proposed
extended permitting deadline date; and
The oil and natural gas production facility is not located
in a designated nonattainment area (the proposed FIP would only apply
to minor sources in the oil and natural gas sector locating or
expanding in areas designated as unclassifiable, attainment, or
attainment/unclassifiable).

Sources covered by the Federal Indian Country Minor NSR rule that do
not meet all of the criteria are, thus, not eligible to use the FIP and
must, therefore, obtain a site-specific permit prior to beginning
construction, on or after October 3, 2016.

If a source owner/operator does not want to comply with the FIP,
they have the option to apply for a site-specific permit instead to
meet the obligation under 40 CFR 49.151(c)(1)(iii)(B) of the Federal
Indian Country Minor NSR rule to obtain a permit prior to commencing
construction of a new true minor source or modification of an existing
true minor source. As part of the FIP, we are proposing specific rule
language in Sec. 49.101(b)(2) to allow true minor sources proposing to
construct on or after the proposed, extended deadline date of October
3, 2016, to opt-out of the default FIP if preferred by the owner or
operator. We are proposing that an owner/operator of a source otherwise
subject to the proposed FIP can opt out and seek a true minor source
site-specific permit under 40 CFR 49.151(c)(1)(iii).
We are also proposing that the EPA, or other Reviewing Authority,
may require owners or operators to obtain a site-specific permit in
lieu of complying with the proposed FIP to ensure protection of the
NAAQS. Under Sec. 49.101(b)(3), we are proposing to specify that the
Reviewing Authority may require an owner or operator of a source, in
certain areas of Indian country proposing to construct on or after
October 3, 2016, to apply for a site-specific permit for a new true
minor source or minor modification of an existing true minor source. In
particular, the Reviewing Authority may determine that the source is
not sufficiently controlled under the proposed FIP to protect the NAAQS
in the area of the proposed project (e.g., if the measured design value
for the area is close to or above the level of the NAAQS). In that
circumstance, the Reviewing Authority can require the minor source to
obtain a site-specific permit. The agency recommends at the time of
registration, the owner/operator of all new sources or all sources
scheduled for modification contact the Reviewing Authority for a review
of the air quality status of that area, and the possibility of a
requirement for a site specific permit.

[[Page 56565]]

V. Summary of Proposed Amendments to the Federal Indian Country Minor
NSR Rule

Today's action proposes several amendments to the Federal Indian
Country Minor NSR rule. First, we are proposing to revise Sec.
49.151(b)(1) to add new text regarding the purpose of the Federal Minor
NSR Program in Indian Country. The revised text indicates that the
program satisfies the requirements of section 110(a)(2)(C) of the CAA
by establishing a preconstruction permitting program for all new and
modified minor sources (minor sources) and minor modifications at major
sources located in Indian reservations and other areas of Indian
country over which an Indian tribe, or the EPA, has demonstrated that
the tribe has jurisdiction and where there is no EPA-approved plan in
place and by establishing a FIP (Sec. Sec. 49.101 to 49.105) for oil
and natural gas production true minor sources located in such areas of
Indian country.
Second, we are proposing to revise Sec. 49.151(c)(1)(iii)(A) to
conform the registration deadline to the proposed extended permitting
deadline in Sec. 49.151(c)(1)(iii)(B).
Third, we are proposing to revise Sec. 49.151(c)(1)(iii)(B) to
establish a deadline by which new and modified true minor sources in
the oil and natural gas sector that are located in or plan to locate in
Indian reservations or other areas of Indian country over which an
Indian tribe, or the EPA, has demonstrated that the tribe has
jurisdiction must comply with the FIP in lieu of obtaining a minor NSR
permit (or obtain a minor source permit if the source opts out of the
FIP). We are proposing to extend the permitting deadline from March 2,
2016, to October 3, 2016.
Fourth, we are proposing to revise Sec. 49.151(d)(1), (2) and (4)
to incorporate compliance with the FIP. We are proposing to revise
Sec. 49.151(d)(1) to indicate that if the owner/operator of a source
begins construction of a new source or modification that is subject to
this program after the applicable date (September 2, 2014, for all true
minor sources, except oil and natural gas sources, and October 3, 2016,
for oil and natural gas true minor sources) without applying for and
receiving a permit pursuant to this program or complying with the FIP
for oil and natural gas production, the owner/operator of the source
will be subject to appropriate enforcement action. We are proposing to
revise Sec. 49.151(d)(2) to indicate that if you do not construct or
operate your source or modification in accordance with the terms of
your minor NSR permit or the FIP for oil and natural gas production,
you source will be subject to appropriate enforcement action. We are
proposing to revise Sec. 49.151(d)(4) to indicate that issuance of a
permit or compliance with the FIP for oil and natural gas production
does not relieve the owner/operator of a source of the responsibility
to comply fully with applicable provisions of any EPA-approved
implementation plan or FIP or any other requirements under applicable
law.
Fifth, we are proposing to revise Sec. Sec. 49.153(a)(1)(i)(B) and
(ii)(B) to establish that oil and natural gas true minor sources are
required to comply with the FIP, unless the owner/operator of a source
opts-out or is otherwise required by the EPA to obtain a minor source
permit. Existing Sec. 49.153(a)(1)(i)(B) requires the owner/operator
of a new source to determine whether the source's PTE is equal to or
greater than the corresponding minor NSR threshold. If it is, then the
source is subject to the preconstruction requirements of the Federal
Indian Country Minor NSR Permit rule for that pollutant. The proposed
amendment adds a clause to the end of the paragraph stating that for
oil and natural gas production sources, if the PTE for oil and natural
gas production sources is equal to or greater than the corresponding
minor NSR threshold, such sources shall instead comply with the
requirements of proposed Sec. Sec. 49.101 to 49.105, unless the owner/
operator of the source opts-out of the FIP pursuant to proposed Sec.
49.101(b)(2) or is required by the EPA to obtain a source-specific
minor source permit pursuant to proposed Sec. 49.101(b)(3).
Existing Sec. 49.153(a)(1)(ii)(B) requires the owner/operator of
modified sources to determine whether the increase in allowable
emissions resulting from the modification would be equal to or greater
than the minor NSR threshold for the pollutant being evaluated. If it
is, the source is subject to the preconstruction requirements of the
Federal Indian Country Minor NSR rule for that pollutant. The proposed
amendment adds a clause to the end of the paragraph stating that, for
oil and natural gas production sources, if the PTE for oil and natural
gas production sources is equal to or greater than the corresponding
minor NSR threshold, such sources shall instead comply with the
requirements of proposed Sec. Sec. 49.101 to 49.105, unless the owner/
operator of the source opts-out of the proposed FIP pursuant to
proposed Sec. 49.101(b)(2) or is required by the EPA to obtain a minor
source permit pursuant to proposed Sec. 49.101(b)(3).
Sixth, we are proposing to revise Sec. Sec. 49.160(c)(1)(ii) and
(iii), to add Sec. 49.160(c)(1)(iv) and to revise Sec. 49.160(c)(4).
For Sec. 49.160(c)(1)(ii), we are proposing to conform the
registration deadline to the proposed extended permitting deadline in
Sec. 49.151(c)(1)(iii)(B). For Sec. 49.160(c)(1)(iii), we are
proposing language to indicate that if your true minor source is an oil
and natural gas source, and you commence construction or modification
of your source on or after October 3, 2016, you must report your
source's actual emissions (if available) as part of your permit
application or registration of oil and natural gas production sources
using a form provided by the EPA (``Registration for New Oil and
Natural Gas Minor Sources and Minor Modifications at Existing True
Minor Oil and Natural Gas Sources,'' https://www.epa.gov/air/tribal/tribalnsr.html). Your permit application or registration form for oil
and natural gas production sources will be used to fulfill the
registration requirements described in Sec. 49.160(c)(2). This
registration should occur each time an existing true minor source that
would be subject to the proposed FIP undergoes a modification. For
Sec. 49.160(c)(1)(iv), we are proposing to add a paragraph indicating
that sources subject to the proposed FIP must still satisfy the
requirement to register under the Federal Indian Country Minor NSR rule
by using the registration form provided by the EPA that is tailored to
the oil and natural gas sector rather than a permit application. The
registration form contains the information required in Sec.
49.160(c)(2). After being reviewed by the permitting authority,
completed registration forms will be available online on the EPA
Regional Office Web sites. For Sec. 49.160(c)(4), we are proposing to
add language indicating that submitting a registration form does not
relieve a source of the requirement to comply with the FIP for oil and
natural gas production if the source or any physical or operational
change at the source would be subject to any minor NSR rule.
Finally, we are proposing to revise the definition of Indian
country in Sec. 49.152 to comport with a court decision that addressed
the EPA's authority to implement the Federal Indian Country Minor NSR
rule in areas covered by the Federal Indian Country Minor NSR rule:
Oklahoma Dept. of Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir.
2014). This court decision also affects the definition of Indian
country under the Federal Major NSR Program in

[[Page 56566]]

Indian Country so we are changing the definition under the Federal
Indian Country Major NSR rule Sec. 49.167.
The Federal Indian Country Minor NSR rule and Federal Indian
Country Major NSR rule currently define ``Indian country'' to include
three categories of lands consistent with 18 U.S.C. 1151, i.e., Indian
reservations, dependent Indian communities, and Indian allotments. The
U.S. Court of Appeals for the District of Columbia Circuit vacated the
rule with respect to non-reservation areas of Indian country (i.e.,
dependent Indian communities and Indian allotments) (Oklahoma Dept. of
Environmental Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The court
held that the states, not tribes or the EPA, have initial primary
responsibility for implementation plans under CAA section 110 in non-
reservation areas of Indian country in the absence of a demonstration
of tribal jurisdiction by the EPA or a tribe. We are proposing to
revise the definition of Indian country in Sec. Sec. 49.152(d) and
49.167 to add a clause indicating that, for purposes of the Federal
Indian Country Minor NSR rule and the Federal Indian Country Major NSR
rule, references to Indian country include all Indian reservation lands
where no EPA-approved program is in place and all other areas of Indian
country where no EPA-approved program is in place and over which an
Indian tribe, or the EPA, has demonstrated that a tribe has
jurisdiction.
These proposed changes will address the minor NSR permitting
requirements for the affected sources, while reducing the permitting
burden through a more efficient and effective means of implementing the
requirements.

VI. Implementation Issues

A. Requirements Relating to Threatened or Endangered Species and
Historic Properties

1. Overview
The Endangered Species Act (ESA) requires federal agencies to
ensure, in consultation with the U.S. Fish and Wildlife Service and/or
the National Marine Fisheries Service (the Services), that any action
they authorize, fund, or carry out will not likely jeopardize the
continued existence of any listed threatened or endangered species, or
destroy or adversely modify the designated critical habitat of such
species.
The National Historic Preservation Act (NHPA) requires federal
agencies to take into account the effects of their undertakings on
historic properties--i.e., properties that are either listed on, or
eligible for listing on, the National Register of Historic Places--and
to provide the Advisory Council on Historic Preservation (the Council)
a reasonable opportunity to comment on such undertakings.
In developing the proposed FIP, EPA has considered issues regarding
listed species and historic properties and has included provisions
designed to ensure appropriate review of potential impacts on the
protected resources. Although the individual coverage of each source
that would operate under the FIP would not constitute a separate
triggering action for ESA or NHPA purposes, we believe that the
proposed FIP's procedures relating to listed threatened or endangered
species and historic properties provide an appropriate site-specific
means of addressing issues regarding potential impacts on those
resources in connection with sources that could be covered under the
FIP. We have provided two options, as described below, for sources to
meet the proposed FIP's requirements regarding these resources.
a. Sources for Which a Prior ESA and/or NHPA Assessment Has Been
Completed
In most of Indian country, oil and natural gas production
activities cannot begin before an owner/operator has obtained an
approved application for permit to drill (APD). This authorization will
include a National Environmental Policy Act Review (NEPA) \34\ review
that is typically provided by certain agencies within the U.S.
Department of the Interior--the Bureau of Land Management (BLM) and the
Bureau of Indian Affairs (BIA), (herein after referred to as ``Federal
Land Managers (FLMs)'' for simplicity).\35\ Under this review process,
BLM is typically responsible for authorizing the mineral rights (i.e.,
permission to produce oil and/or natural gas) and BIA for authorizing
surface activities (i.e., preparing the site for well-drilling
activities and operating equipment for the production of oil and/or
natural gas). (There are also cases where only one of these agencies
will be involved or where another federal agency is involved as well.)
Such APD authorizations are considered general triggering actions under
the ESA and NHPA, and the FLMs will typically conduct review procedures
to ensure that the requirements of these statutes are met. Frequently,
these reviews occur in connection with an analysis performed by the
appropriate FLM.\36\
---------------------------------------------------------------------------

\34\ The NEPA regulatory requirements can be found at 40 CFR
parts 1500-1508.
\35\ The NEPA review process produces a decision document that
is either a Record of Decision or a Finding of No Significant
Impact.
\36\ NEPA regulatory requirements can be found at 40 CFR parts
1500-1508.
---------------------------------------------------------------------------

Since an oil and gas exploration/production site involves surface
activities and accessing the mineral resource below, thereby
potentially requiring an approval from both BLM and BIA, these agencies
often enter into agreements where one agency takes the lead in the
overall NEPA (and associated ESA and NHPA) review process (i.e.,
evaluations of the potential impacts regarding mineral rights and
surface rights are combined). The lead agency may vary depending on the
particular Indian reservation at issue. We believe that a majority of
oil and gas activity in areas covered by the Federal Indian Country
Minor NSR rule occurs on land within the jurisdiction of these
agencies. This means that before an oil and natural gas owner/operator
can begin construction under the FIP, the APD must be approved by the
FLMs. As part of the NEPA review process, the following steps are
generally performed:
For the ESA, impacts to threatened and endangered species
and critical habitats are assessed through interaction with local U.S.
Fish and Wildlife Service field offices, with appropriate measures put
in place to protect those resources. These conditions are incorporated
in the FLMs' authorization.
For the NHPA, impacts to historic properties are evaluated
by interaction with State and/or Tribal Historic Preservation Offices.
Approval of an action will address any appropriate measures needed to
protect a historic property (e.g., production equipment must be located
a specified distance from a designated structure/road/etc.).
The assessment(s) conducted by the FLMs will likely consider a
facility's air emissions with respect to well drilling, completion,
well-pad construction activities and future operations and may require
measures to reduce air emissions. In addition to any air pollution
measures implemented through the FLM's NEPA (and associated ESA and
NHPA) review, our proposed FIP would require each source to comply with
the six federal rules listed in Table 2 above in order to protect
ambient air quality. The measures employed under the proposed FIP would
require compliance with specific requirements from the NSPS and NESHAP
control requirements for the following emission points: compression
ignition and spark ignition engines, compressors (reciprocating and
centrifugal), fuel storage tanks, fugitive

[[Page 56567]]

emissions from well sites and compressor stations, glycol dehydrators,
hydraulically fractured oil and gas well completions, pneumatic
controllers in production, pneumatic pumps, process heaters and storage
vessels. We believe the reductions achieved through the required
emission controls, by virtue of being protective of ambient air
quality, are also protective of threatened and endangered species,
their habitats and historic properties.
Where the FLM(s) have concluded ESA and/or NHPA compliance as part
of the APD process in connection with a particular source--whether as
part of the FLM's NEPA review or otherwise--the source would be able to
rely on that prior review for compliance with the proposed FIP's listed
species (if prior ESA compliance has occurred) and historic properties
(if prior NHPA compliance has occurred) requirements. No further
assessment of impacts on these resources would be required by the
proposed FIP as any such assessment would be duplicative of the prior
work conducted by the FLM(s). We would require that documentation of
completion of the APD process be provided before the owner/operator
begins construction under the FIP.
b. Sources for Which No Prior ESA and/or NHPA Assessment Has Been
Completed
For oil and natural gas production activities that do not undergo
ESA and/or NHPA review as part of an authorization from the FLM(s), we
propose that those facilities first complete screening procedures
relevant to the particular resource that has not previously been
reviewed before the owner/operator can begin construction under the
proposed FIP. These screening procedures are similar to those currently
in place for existing general permits and permits by rule in areas
covered by the Federal Indian Country Minor NSR rule before the owner/
operator can begin construction under the proposed FIP. Similar to our
procedure for general permits and permits by rule, for the proposed
FIP, once an owner/operator completes the screening procedures,\37\
they would submit documentation to the EPA Regional Office and receive
written verification of completion before beginning construction. As we
explained in the development of both the general permits and permits by
rule for the ``General Permits and Permits by Rule for the Federal
Minor New Source Review Program in Indian Country,'' \38\ to ensure
listed species and critical habitats and historic properties are
protected, we developed a framework for those permitting mechanisms
requiring the source owner/operator to identify and assess potential
effects to protected resources before obtaining coverage. Requiring
this assessment aids in identifying any concerns related to potential
impacts on listed species/critical habitat or historic properties early
in the process when the greatest opportunities to mitigate or avoid any
impacts--including changes to the facility's location or footprint--are
available. The EPA believes that requiring a similar process in the air
quality permit by rule, the general air quality permit, this proposed
FIP and the general stormwater permits, will streamline the process for
all concerned: the applicants, the EPA, the tribes, and the Services.
---------------------------------------------------------------------------

\37\ These procedures are available for sources potentially
subject to this proposed FIP in a document entitled: ``Procedures to
Address Threatened and Endangered Species and Historic Properties
for New or Modified True Minor Oil and Natural Gas Production
Sources in Indian Country Complying with the Oil and Natural Gas
Minor Source Federal Implementation Plan,'' https://www.epa.gov/air/tribal/tribalnsr.html.
\38\ ``General Permits and Permits by Rule for the Federal Minor
New Source Review Program in Indian Country,'' 79 FR 2546, January
14, 2014, https://www.gpo.gov/fdsys/pkg/FR-2014-01-14/pdf/2013-30345.pdf.
---------------------------------------------------------------------------

B. What is the effect of this proposed FIP on other Indian Country
FIPs?

The objectives of this proposed FIP are to fulfill the requirements
of the Federal Indian Country Minor NSR rule to address the air quality
impacts of new and modified true minor sources and to impose
appropriate air pollution control requirements that protect the NAAQS,
while providing an alternative to obtaining preconstruction approval
through the NSR preconstruction permitting process. This proposed FIP
does not replace any other FIPs promulgated under the CAA for oil and
natural gas sector sources in areas covered by the Federal Indian
Country Minor NSR rule. An oil and natural gas source in areas covered
by the Federal Indian Country Minor NSR rule that is subject to another
CAA FIP must also comply with this proposed FIP. Generally, in cases
where emission sources are already subject to a CAA FIP with more
stringent requirements than those established for equivalent emission
sources under this proposed FIP, the more stringent requirements
supersede the requirements in this proposed FIP. Conversely, if
requirements for certain emission sources in this proposed FIP are more
stringent than requirements for equivalent emission sources in another
applicable CAA FIP, then the requirements in this proposed FIP
supersede the requirements for equivalent emission sources in the other
FIP. In some cases, other applicable CAA FIPs defer to less stringent
requirements in other federal CAA rules to avoid duplicative
requirements. Those cases would provide an exception to this general
concept.
In the case of the FIP for Oil and Natural Gas Well Production
Facilities on the Fort Berthold Indian Reservation (FBIR FIP) at 40 CFR
49.4161-4168 (78 FR 17836), we stated in the preamble to that
rulemaking that the FBIR FIP is not a permitting program and does not
exempt facilities from any federal CAA permitting requirements, which
would include compliance with this proposed FIP, and PSD
preconstruction permitting requirements at 40 CFR 52.21, Federal Indian
Country NSR permitting requirements for minor sources at 40 CFR 49.151,
or federal Title V operating permit requirements at 40 CFR part 71. The
FBIR FIP does provide legal and practical enforceability for the use of
VOC emission controls, and compliant emission reductions achieved can
be taken into account in calculating potential VOC emissions when
determining the applicability of CAA permitting requirements. However,
facilities subject to the FBIR FIP may emit VOCs from emission sources
not regulated under the FBIR FIP, and/or may emit other NSR-regulated
pollutants not regulated by the FBIR FIP at levels above the minor
source thresholds in the Federal Indian Country Minor NSR rule or the
major source PSD thresholds at 40 CFR 52.21, thus triggering NSR
permitting requirements.
This proposed oil and natural gas FIP does not exempt facilities
from complying with the FBIR FIP. The EPA recognizes that the VOC
emission control requirements under the FBIR FIP are in some instances
more stringent than the VOC emission reduction requirements of this
proposed oil and natural gas FIP. For instance, the FBIR FIP requires
up to 98 percent reduction of VOC emissions from storage tanks, while
this proposed FIP, which relies on applicability under the 2015
proposed NSPS, subpart OOOOa, proposes to require 95 percent reduction
of VOC emissions from storage vessels. To avoid duplicative
requirements, the FBIR FIP specifies that facilities operating emission
sources regulated under the FBIR FIP that are also subject to the
storage vessel requirements under the 2015 proposed NSPS, subpart
OOOOa, must comply with the applicable

[[Page 56568]]

requirements of the 2015 proposed NSPS, subpart OOOOa for those
emission sources, rather than the requirements for produced oil and
water storage tanks in the FBIR FIP. The FBIR FIP also regulates VOC
emissions from oil and natural gas well completions, well casing heads,
and heater treaters at oil and natural gas production facilities, which
are not currently regulated by NSPS subpart OOOO, and, thus, are not
part of this proposed FIP. Hydraulically fractured oil well completions
were proposed for regulation in the 2015 proposed NSPS, subpart OOOOa
signed on August 18, 2015. Therefore, a new or modified oil and natural
gas well production facility that is subject to the FBIR FIP that would
also be subject to this proposed FIP once final to meet the
requirements of the Federal Indian Country Minor NSR rule would also
need to comply with the FBIR FIP for casing head natural gas emissions
and heater treater produced natural gas emissions.

VII. Rationale for Proposed FIP

A. Why are we choosing a FIP as an alternative to site-specific
permits, general permits and permits by rule?

In the ANPR, we asked for comment on three alternatives to site-
specific permits: general permits, permits by rule, and FIPs. Although
commenters on the ANPR differed in their opinions on the best approach,
the alternative approach garnering the most support was a FIP.
Commenters supported using a FIP because it would streamline the
permitting approach, eliminate the need for preconstruction approval
from the permitting authority and apply requirements directly to
sources. Commenters also supported a FIP because appropriate control
measures would be in place and would provide the EPA and tribes
assurances that construction and modification activities would be
adequately and appropriately regulated. Some commenters supported a FIP
because it could apply to existing sources. One commenter argued
against a FIP approach because a FIP does not afford the same level of
opportunity for a regulatory authority or the public to review, provide
input on, or object to sources' coverage under a FIP as compared to a
general permit.
We committed to developing an alternative to site-specific permits
primarily to avoid delays in new construction due to our inability to
process hundreds of true minor source permits in an acceptable
timeframe. A FIP provides a regulatory tool that protects air quality,
streamlines implementation and compliance assurance, and meets the
EPA's obligation to permit minor NSR sources. The alternatives--site-
specific permits, general permits and permits by rule--do not satisfy
all of these concerns.
Both a general permit and a permit by rule provide a more
streamlined approach for authorizing construction and modification of a
source compared to site-specific permitting. A FIP, however, has the
advantage of not requiring a source to initiate advance review and
obtain approval of coverage from the Reviewing Authority before
beginning construction (as would a general permit), and it would reduce
the resource burden on reviewing authorities associated with processing
the potentially large volume of requests from true minor sources in the
oil and natural gas production segment for coverage under a general
permit. So, from those standpoints a FIP is preferable to a general
permit.
In comparison to a general permit, a FIP would provide less upfront
scrutiny of an individual new construction or modification project and
a citizen would not have the ability to object to a specific source
gaining coverage. While we recognize these concerns, we believe that
the proposed oil and natural gas FIP contains a robust set of emission
control requirements and compliance monitoring and reporting provisions
that will help ensure that a new or modified true minor source would
not cause or contribute to a NAAQS or PSD increment violation.\39\ In
addition, any citizen could enforce the provisions of a FIP, as that
person can with respect to requirements of any other implementation
plan or CAA requirement, by commencing a civil action in the district
court in the judicial district in which the source is located. Citizens
retain the right under CAA section 304(a)(1) to commence a civil action
``against any person . . . who is alleged to have violated . . . or to
be in violation of (A) an emission standard or limitation under this
[Act] . . . .'' The Administrator also would retain the ability to
enforce the requirements of a FIP under section 113(a)(1) of the CAA.
---------------------------------------------------------------------------

\39\ True minor sources in Indian country in the oil and natural
gas sector are also required to register under 40 CFR 14.160 and
provide certain information about their new or modified operations.
---------------------------------------------------------------------------

Another streamlined method, the permit by rule approach, also lacks
the upfront scrutiny found with a general permit. In the first set of
permits by rule that the EPA has issued for use in areas covered by the
Federal Indian Country Minor NSR rule, we established the process for
individual sources to obtain coverage under the EPA's permits by rule.
It is a source notification process in which individual sources, unlike
the general permit process, are not required to obtain the EPA's review
and approval of a permit application prior to beginning
construction.\40\ In a manner similar to a FIP, a permit by rule
establishes a set of requirements to which a source becomes subject
when it obtains coverage under that permit by submitting a Notification
of Coverage Form to the EPA, which the EPA then posts online. (For the
sources subject to this proposed FIP, the EPA intends to post the
registration forms that the EPA receives (see 40 CFR 49.160(c)). Thus,
on the issue of public scrutiny, the FIP and the permit by rule
approaches are essentially the same. The EPA prefers the FIP because it
provides more certainty for affected sources than the permit by rule
approach and, as discussed below, does not have any significant
disadvantages as compared to the permit by rule approach.
---------------------------------------------------------------------------

\40\ ``General Permits and Permits by Rule for the Federal Minor
New Source Review Program in Indian Country for Five Source
Categories,'' U.S. Environmental Protection Agency, 80 FR 25068, May
1, 2015, https://www.gpo.gov/fdsys/pkg/FR-2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf.
---------------------------------------------------------------------------

Unlike NSR general permits and permits by rule, which cannot be
used to address existing sources, a FIP could extend to existing
sources; this is a key distinction between general permits and permits
by rule versus a FIP. However, this proposal does not contain
requirements for existing sources. The EPA's plan is to address
existing sources, to the extent necessary, in the context of area- or
reservation-specific FIPs designed to address areas or reservations
with air quality issues (including nonattainment areas), as they arise,
that are associated with oil and natural gas activities. Such FIP(s)
will need to address, as necessary, requirements for existing sources,
as well as additional requirements beyond those in this proposal for
new and modified sources.

B. How did we select which equipment to include in this proposed FIP?

In determining which equipment to include in the proposed oil and
natural gas FIP, we reviewed the EPA regulations that apply to emission
units within the oil and natural gas production segment. We have relied
substantially on analyses performed in support of the 2015 proposed
NSPS, subpart OOOOa to help determine which emission units the EPA
should consider regulating in the oil and natural gas sector in areas
covered by the Federal Indian Country Minor NSR

[[Page 56569]]

rule as part of this proposed FIP.\41\ In addition to the production
segment sources proposed to be covered under NSPS, subpart OOOOa, in
today's FIP, we are proposing requirements from existing EPA standards
for three emission sources not covered by the NSPS, subpart OOOOa
because they are present at oil and natural gas production sites and
emit NOX and/or VOC: engines, process heaters and glycol
dehydration units. Three of the six federal rules listed in Table 2
above regulate these sources of pollution, among others. Therefore, we
determined that a combination of existing federal regulations and the
2015 proposed NSPS, subpart OOOOa provides a comprehensive and
consistent regulatory approach for addressing true minor oil and
natural gas production sources in areas covered by the Federal Indian
Country Minor NSR rule.
---------------------------------------------------------------------------

\41\ ``Background Technical Support Document for the Proposed
New Source Performance Standards, 40 CFR part 60, subpart OOOOa,''
https://www.epa.gov/airquality/oilandgas/actions.html.
---------------------------------------------------------------------------

We have concluded that these federal regulations employ emission
limitations that are technically and economically feasible, and cost
effective because we have vetted the existing regulations via the
public comment process and sources are currently complying with these
federal standards, including new and modified sources in the oil and
natural gas sector located in areas covered by the Federal Indian
Country Minor NSR rule. The referenced NSPS are all promulgated
pursuant to the EPA's authority under CAA section 111. Under CAA
section 111(a), the emission limitations for all the affected sources,
except process heaters and glycol dehydrators, ``reflect the degree of
emission limitation achievable through the application of the best
system of emission reduction which (taking into account the cost of
achieving such reduction and any non-air quality health and
environmental impact and energy requirements) the Administrator
determines have been adequately demonstrated.'' We refer to this level
of control as the Best System of Emission Reduction (BSER). In
determining BSER, we typically conduct a technology review that
identifies what emission reduction systems exist and how much they
reduce air pollution in practice. For each control system identified,
we also evaluate its costs and other impacts.
The NESHAP for process heaters and glycol dehydrators are
promulgated pursuant to the EPA's authority under CAA section 112.
Under CAA section 112(d)(3), the emission limitations for glycol
dehydrators and process heaters at major sources of hazardous air
pollutants (HAPs) reflect MACT. The MACT emission limitation for new
sources cannot be less stringent than the emission control achieved in
practice by the best-controlled similar source, without considering
costs. In addition, under CAA section 112(d)(5), the emission reduction
requirements for triethylene glycol dehydrators at area sources reflect
``generally available control technology'' (GACT). For GACT there is no
statutory minimum level of emissions reduction for new or existing
sources and costs can be considered. We are proposing that the oil and
natural gas FIP require sources to comply with the applicable MACT (for
glycol dehydrators and process heaters located at major sources of HAP)
or GACT (for glycol dehydrators located at area sources of HAP)
emission limitations. Because the individual HAP pollutants regulated
from glycol dehydrators by the NESHAP (and to some degree from process
heaters, as well) for oil and gas production sources are also VOC,
which are regulated NSR pollutants, the proposed FIP would create
enforceable VOC reduction requirements for glycol dehydrators and
process heaters. HAPs would serve as a surrogate for VOC with respect
to emission limitations, monitoring, testing and compliance. In
addition, compliance with 40 CFR part 63, subpart DDDDD MACT also
provides beneficial reductions of non-targeted NSR pollutants, i.e.,
NOX.
The rationale supporting the applicability, emission limitations,
monitoring, recordkeeping, reporting, and other provisions for each of
the six federal rules is found in the preambles and background
documents for those rulemakings. The six federal rules are available on
the Electronic Code of Federal Regulations at: https://www.ecfr.gov/cgi-bin/ECFR?page=browse.

C. Why are we excluding existing sources from this proposed oil and
natural gas FIP?

This section provides a brief overview of some of the significant
comments on the inclusion of existing sources in a FIP, followed by a
discussion of the EPA's rationale for why requirements for existing
sources are not included in this proposed action. A complete summary of
the comments on this and other issues we raised in the June 5, 2014,
ANPR, can be found in Docket ID No. EPA-HQ-OAR-2011-0151, which has
been incorporated by reference into the docket for this action, Docket
ID No. EPA-HQ-OAR-2014-0606.
1. Comments in Favor of Regulation of Existing Sources
In response to the ANPR the EPA issued on June 5, 2014 (79 FR
32502), several commenters expressed support for the regulation of
existing sources under a minor source permitting program (i.e., a FIP)
for oil and natural gas sources. Two commenters agreed with the ANPR
that the cumulative impacts from existing sources could exceed that of
large, new major sources. Some commenters voiced concerns about the
impact of unregulated existing sources on the health and welfare of
tribal members. One commenter asserted that there is substantial
evidence demonstrating that existing oil and gas sources are
responsible for considerable air pollution emissions within Indian
country, noting that in response to the Federal Indian Country Minor
NSR rule, Region 8 received approximately 6,300 registrations from
existing minor sources in the oil and natural gas sector. The commenter
asserted that regions like the Uintah Basin are already exceeding the
ozone NAAQS, and even in regions where there are not yet NAAQS
violations, emissions from oil and natural gas sources contribute to
elevated ozone levels and HAP emissions. The commenter stated that the
EPA's approach must reduce emissions from existing sources in order for
the EPA to meet its duty to protect public health and welfare, in
addition to improving visibility impairment and nitrogen deposition in
national parks and wilderness areas. Another commenter indicated that
they could provide modeling and monitoring data to the EPA
demonstrating air quality impacts to the National Park System. One
commenter also argued that requiring existing source controls would
reduce methane emissions and subsequent climate impacts.
One commenter argued that the EPA must regulate existing sources to
fulfill goals directed by the Obama administration, including
recommendations from the Secretary of Energy's Advisory Board that
``measures should be taken to reduce emissions of air pollutants, ozone
precursors, and methane as quickly as practicable.'' One commenter
asserted that the EPA has the statutory authority to implement
regulations for existing oil and natural gas sources. One commenter
expressed support for regulating existing sources, but stated that not
all existing minor sources should be regulated in the same manner.
Other commenters indicated that cost-effective controls are available

[[Page 56570]]

and should be applied to existing sources.
2. Comments in Opposition of Regulation of Existing Sources
In response to the ANPR the EPA issued on June 5, 2014 (79 FR
32502), many commenters objected to the regulation of existing sources.
Commenters urged the EPA to prioritize development of a streamlined
permitting process implementing the Federal Minor NSR Program in Indian
Country and to not include existing sources. Several commenters
provided legal arguments challenging the EPA's authority to impose
requirements on existing sources. Two commenters stated that the EPA
has not demonstrated that there is a need to regulate existing sources
on a national basis. The commenter further argued that the EPA must
make a much more definitive showing of adverse air quality impacts to
justify existing source FIP requirements, taking into account the air
quality, mix of emissions, and characteristics of each area in which it
seeks to impose existing source controls.
Two commenters urged the EPA to develop an emissions inventory
using emissions monitoring data prior to implementing a FIP. Five
commenters asserted that the EPA must establish an attainment plan
prior to regulating existing sources. The commenters urged that to
regulate existing sources, the EPA must make a determination that
regulation is needed to attain the NAAQS and develop an attainment plan
for the nonattainment areas in which the sources are located, and only
for the relevant nonattainment pollutants. Other commenters stated that
the EPA must evaluate the need for any regulation of existing minor
sources in each tribal area on a case-by-case basis.
3. The EPA's Approach in This Proposed Action on Existing Oil and
Natural Gas Minor Sources in Indian Country
While the focus of the minor source permitting program is on new
and modified oil and natural gas sources, the EPA believes that
managing emissions from existing oil and natural gas sources in some
areas of Indian country also may be important. This is because of the
significant existing activity associated with the oil and natural gas
sector in some areas of Indian country and the resultant need to
protect public health and the environment from those emissions.
Addressing existing sources through a FIP could be especially useful in
areas of Indian country for which surrounding state requirements apply
to existing oil and natural gas sources located on lands that are
within a state's jurisdiction. In doing so, EPA would consider tribes'
views and interests, including any interest in promoting economic
development.
While EPA believes that it has the necessary authority to
promulgate a FIP regulating existing sources, in this action, we are
proposing a FIP that only applies to new and modified true minor
sources in the production segment of the oil and natural gas sector.
This proposed FIP for new and modified true minor sources in the oil
and natural gas production segment locating or located in Indian
reservations (and other areas of Indian country over which an Indian
tribe, or the EPA, has demonstrated that the tribe has jurisdiction)
would apply to all such areas designated attainment, unclassifiable, or
attainment/unclassifiable. It would not apply to any areas designated
nonattainment. The Federal Indian Country Minor NSR rule allows us to
manage minor source emission increases in Indian country and to ensure
that new emissions do not cause or contribute to a NAAQS or PSD
increment violation. We are concerned that the rapid growth of the oil
and natural gas production segment in combination with existing
exploration and production activities, could result, or in some cases
already has resulted, in adverse air quality impacts, especially in
light of the approximately 6,300 existing true minor source
registrations received in the EPA Region 8 Office for facilities in the
oil and natural gas sector.\42\ However, we believe that the most
appropriate means for addressing impacts from existing sources is
through area- or reservation-specific FIPs and not through this
proposed, national FIP. If we determine that it is ``necessary or
appropriate'' to exercise our discretionary authority under sections
301(a) and 301(d)(4) of the CAA and 40 CFR 49.11(a) of our implementing
regulations, we will publish a proposed area- or reservation-specific
FIP that provides an opportunity for full public review and comment. At
a minimum, the EPA or tribes will need to develop area-specific plans
if and when areas of Indian country become nonattainment for ozone or
other NAAQS pollutants. At that time, any such area that has oil and
natural gas minor source activity may require additional controls on
existing (and new and modified) sources in order to achieve attainment
of the NAAQS. One source of information for control options will be the
EPA's CTGs for oil and natural gas activity that the EPA has made
available for comment and will finalize in 2016.\43\
---------------------------------------------------------------------------

\42\ In the Federal Indian Country Minor NSR rule, EPA
established a registration program that required owners and
operators of existing true minor sources to file a one-time
registration with the appropriate Reviewing Authority by March 1,
2013. The EPA's Region 8 Office has received about 6,300
registrations from true minor sources in the oil and natural gas
sector. This far exceeded the amount received from sources in any
other category.
\43\ For more information, go to: https://www.epa.gov/airquality/oilandgas/actions.html.
---------------------------------------------------------------------------

We believe that existing sources are best addressed through
tailored, federal or tribal air quality plans because each basin
producing oil and/or natural gas possesses different geological and
meteorological characteristics and, thus, what primary fossil fuel
resource is extracted can be very different in quality and type and the
impacts from emissions associated with extraction activities can vary
widely. For example, the predominant resource extracted from the Bakken
Pool \44\ is a light, volatile oil, while the primary resource
extracted from the Uintah Basin is a heavy, thick oil. Each of these
types, in many cases, call for different sets of control requirements
that are best addressed through tailored plans versus a national FIP.
---------------------------------------------------------------------------

\44\ Bakken Pool means oil produced from the Bakken, Three
Forks, and Sanish formations.
---------------------------------------------------------------------------

We believe that through tailored plans a number of cost-effective
emission reduction measures could be applied to existing emission units
to balance new growth by mitigating the potential for adverse air
quality impacts from overall increases in emissions. A number of state
air pollution control agencies already regulate some existing emissions
from this segment.\45\ For example, in February 2014, Colorado adopted
additional regulations for oil and natural gas production operations
that include such requirements as expanding nonattainment area
pneumatic controller requirements statewide and reducing venting and
flaring of gas streams at well sites, among other control
strategies.\46\ In addition, these regulations determined leak
detection and repair monitoring to be cost effective at oil and natural
gas production facilities. Some technologies may even provide the
industry with cost savings due to recovered product. For example, the
EPA's Natural Gas Star

[[Page 56571]]

program estimates that adding a vapor recovery unit to a storage tank
could pay for itself in 3 to 37 months, and thereafter result in cost
savings.\47\
---------------------------------------------------------------------------

\45\ See, e.g., L. Gribovicz, WRAP, ``Analysis of States' and
EPA Oil and Gas Air Emissions Control Requirements for Oil and Gas
Emissions Control Requirements for Selected Basins in the Western
United States (2013 Update),'' Nov. 8, 2013, available at https://www.wrapair2.org/pdf/2013-11x_O&G%20Analysis%20(master%20w%20State%20Changes%2011-08).pdf.
\46\ See Colorado Dept. of Public Health and Environment, Air
Quality Control Commission Web site at https://www.colorado.gov/cs/Satellite/CDPHE-AQCC/CBON/1251647985820.
\47\ See ``Lessons Learned from Natural Gas STAR Partners;
Installing Vapor Recovery Units on Storage Tanks,'' available at
https://epa.gov/gasstar/documents/ll_final_vap.pdf on the EPA's
Natural Gas Star Web site: https://epa.gov/gasstar/.
---------------------------------------------------------------------------

D. Why is the EPA extending the permitting deadline for oil and natural
gas true minor sources in areas covered by the Federal Indian Country
Minor NSR rule?

The EPA is proposing to extend the deadline to allow us sufficient
time to develop an approach for permitting new and modified true minor
oil and natural gas production sources in areas covered by the Federal
Indian Country Minor NSR rule that is consistent and coordinated with
the EPA's overall approach to addressing emissions from this sector.
Specifically, we have needed additional time to coordinate with the
larger EPA effort to regulate methane and VOCs from the oil and natural
gas sector. On January 14, 2015, as part of the Obama administration's
methane strategy, the EPA outlined a series of steps it plans to take
to address methane and smog-forming VOC emissions from the oil and gas
industry, in order to ensure continued, safe and responsible growth in
U.S. oil and natural gas production.\48\ This commonsense strategy will
reduce methane pollution from new sources in this rapidly growing
industry, reduce ozone-forming pollutants from existing sources in
areas that do not meet federal ozone health standards, and build on
work that states and industry are doing to address emissions from
existing sources elsewhere.
---------------------------------------------------------------------------

\48\ For more information, go to: https://www.epa.gov/airquality/oilandgas/pdfs/20150114fs.pdf.
---------------------------------------------------------------------------

We intend to ensure the approach that we use to permit true minor
oil and natural gas sources in areas covered by the Federal Indian
Country Minor NSR rule reflects the EPA technical expertise gained
through the work that has and will be done to understand feasible
control opportunities in the oil and natural gas sector. In particular,
we are drawing on the knowledge gained through the development of the
technical white papers released on April 15, 2014, that address
emerging data on VOCs and methane emissions from certain sources in the
oil and natural gas sector, as well as techniques for mitigating those
emissions.\49\ The white papers, and the comments we received on them,
are helping us better understand the sector, including sources located
in Indian country. We are also considering in this action the comments
provided in response to the ANPR (79 FR 32502, June 5, 2014) in which
we sought feedback on the most effective and efficient means of
implementing the Federal Minor NSR Program in Indian Country for
sources in the oil and natural gas production segment of the oil and
natural gas sector.
---------------------------------------------------------------------------

\49\ The white papers can be found at: https://www.epa.gov/airquality/oilandgas.
---------------------------------------------------------------------------

VIII. Statutory and Executive Order Reviews

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

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

B. Paperwork Reduction Act (PRA)

This action does not impose any new 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 2060-0003. This action merely proposes to establish a
FIP which serves as a mechanism for true minor sources in the
production segment of the oil and natural gas sector locating or
located in areas covered by the Federal Indian Country Minor NSR rule
to satisfy the requirements of the Federal Indian Country Minor NSR
rule in lieu of obtaining a site-specific minor source permit. Because
it is intended as a substitute for a site-specific permit which would
contain information collection activities in the Information Collection
Request for Federal Indian Country Minor NSR rule issued in July 2011,
it would not impose any new obligations or enforceable duties on any
state, local or tribal government or the private sector. In addition,
the information collection activities contained in the 6 rules proposed
to be part of the proposed FIP have also been previously approved by
OMB.\50\
---------------------------------------------------------------------------

\50\ 40 CFR part 60, subpart Kb: Standards of Performance for
Volatile Organic Liquid Storage Vessels (Including Petroleum Liquid
Storage Vessels) for Which Construction, Reconstruction, or
Modification Commenced After July 23, 1984 (OMB Control No. 2060-
0074); 40 CFR part 60, subpart IIII: Standards of Performance for
Stationary Compression Ignition Internal Combustion Engines (OMB
Control No. 2060-0590); 40 CFR part 60, subpart JJJJ: Standards of
Performance for Stationary Spark Ignition Internal Combustion
Engines (OMB Control No. 2060-0610); 40 CFR part 60, subpart OOOO:
Standards of Performance for Crude Oil and Natural Gas Production,
Transmission and Distribution (OMB Control No. 2060-0673); 40 CFR
part 63, subpart DDDDD: National Emission Standards for Hazardous
Air Pollutants for Major Sources: Industrial, Commercial, and
Institutional Boilers and Process Heaters (OMB Control No. 2060-
0616) and 40 CFR part 63, subpart HH: National Emission Standards
for Hazardous Air Pollutants from Oil and Natural Gas Production
Facilities (OMB Control No. 2060-0417).
---------------------------------------------------------------------------

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. In
making this determination, the impact of concern is any significant
adverse economic impact on small entities. An agency may certify that a
rule will not have a significant economic impact on a substantial
number of small entities if the rule relieves regulatory burden, has no
net burden or otherwise has a positive economic effect on the small
entities subject to the rule. The EPA analyzed the impact of
streamlined permitting on small entities in the Federal Indian Country
Minor NSR rule (76 FR 38748, July 1, 2011). The EPA determined that
that action would not have a significant economic impact on a
substantial number of small entities. This proposed action merely
implements a particular aspect of the Federal Indian Country Minor NSR
rule. We have, therefore, concluded that this action will have no net
regulatory burden for all directly regulated small entities.

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. It simply provides
one option for sources to comply with the Federal Indian Country Minor
NSR rule. The Federal Indian Country Minor NSR rule itself imposes the
obligation that true minor sources in areas covered by the Federal
Indian Country Minor NSR rule obtain a minor source NSR permit and not
this proposed FIP. This proposed FIP merely provides a vehicle for
meeting that obligation.

E. Executive Order 13132: Federalism

This action does not have federalism implications. It would 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.

[[Page 56572]]

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

This action has tribal implications. However, it will neither
impose substantial direct compliance costs on federally recognized
tribal governments, nor preempt tribal law. The EPA has conducted
outreach on this rule via on-going monthly meetings with tribal
environmental professionals in the development of this proposed action.
This action reflects tribal comments on and priorities for developing
an approach for permitting true minor sources in the production segment
of the oil and natural gas sector in areas covered by the Federal
Indian Country Minor NSR rule. The EPA offered consultation on the ANPR
to elected tribal officials and the following tribes requested a
consultation, which was held on July 18, 2014, with the tribes and/or
their representatives: MHA (Mandan, Hidatsa and Arikara) Nations (Three
Affiliated Tribes), Ute Tribe of the Uintah and Ouray Reservation, and
Crow Nation.
At the consultation, the tribes present expressed a number of
concerns regarding federal regulation of oil and natural gas activity
in Indian country. Three main themes were expressed. First, the tribes
expressed the concern that many areas of Indian country are facing
difficult economic circumstances and are in need of economic
development to improve the quality of life of tribal members; revenue
from oil and natural gas activity in many areas provides that economic
development. Second, in Indian country they indicated that oil and
natural gas activity is already regulated by the federal government and
that the EPA does not need to add to the burden. They expressed a wish
to be able to manage their own resources without undue interference
from the federal government. Finally, the tribes also expressed a need
for greater resources so that they can implement their own
environmental programs as they determine in their own lands.
We believe that the FIP is directly responsive to the first two
issues in that, for attainment and related areas, we are proposing a
FIP to fulfill our CAA responsibilities to protect air quality in
Indian country in a manner that: (1) Does not create an uneven playing
field with respect to federal requirements in adjacent states where oil
and natural gas sources face the same EPA requirements; and (2)
minimizes the processing burden on oil and natural gas sources. We will
continue to provide outreach to tribal environmental professionals and
offer to consult with tribal leadership on this proposed action.

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

This action is not subject to Executive Order (EO) 13045 because it
is not economically significant as defined in EO 12866, and because the
EPA does not believe the environmental health or safety risks addressed
by this action present a disproportionate risk to children.

H. Executive Order 13211: Actions 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 action 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. This proposed rule implements certain
aspects of the Federal Indian Country Minor NSR rule.
Our primary goal in developing this program is to ensure that air
resources in areas covered by the Federal Indian Country Minor NSR rule
will be protected in the manner intended by the CAA. This action will
help ensure air quality protection in areas covered by the Federal
Indian Country Minor NSR rule, by including in a FIP a comprehensive
set of control requirements for new and modified true minor source in
the production segment of the oil and natural gas sector. In addition,
through this proposed FIP, we seek to establish a mechanism that
provides an effective and efficient method for implementing a
preconstruction permitting program for true minor sources in areas
covered by the Federal Indian Country Minor NSR rule that enables a
streamlined process, which helps promote economic development by
minimizing delays in new construction; and provides a process
comparable to those programs operated outside of Indian county, which
helps tribes compete for new oil and natural gas production in areas
covered by the Federal Indian Country Minor NSR rule..

List of Subjects in 40 CFR Part 49

Environmental protection, Administrative practices and procedures,
Air pollution control, Incorporation by reference, Indians, Indians-
law, Indians-tribal government, Intergovernmental relations, Reporting
and recordkeeping requirements.

Dated: August 18, 2015.
Gina McCarthy,
Administrator.
For the reasons set forth in the preamble, EPA proposes to amend 40
CFR part 49 as follows:

PART 49--INDIAN COUNTRY: AIR QUALITY PLANNING AND MANAGEMENT

0
1. The authority citation for part 49 continues to read as follows:

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

0
2. Subpart C of part 49 is amended by adding a new undesignated center
heading and Sec. Sec. 49.101 to 49.105 to read as follows:

Federal Implementation Plans for Tribes

Sec.
49.101 Introduction.
49.102 Definitions.
49.103 Delegation of authority of administration to Indian tribes.
49.104 Requirements regarding threatened or endangered species and
historic properties.
49.105 Requirements.

Federal Implementation Plans for Tribes

Sec. 49.101 Introduction.

What is the purpose of Sec. Sec. 49.101 through 49.105? (a)
Sections 49.101 through 49.105 adopt legally and practicably
enforceable requirements to control and reduce emissions of volatile
organic compounds, nitrogen oxides, sulfur dioxide, particulate matter
(PM, PM10, PM2.5), hydrogen sulfide, carbon
monoxide and various sulfur compounds from oil and natural gas
production segment operations.
(b) Am I subject to Sec. Sec. 49.101 through 49.105? You are
subject to the requirement if you meet the following criteria:
(1) Owners and operators of new true minor oil and natural gas
sources or minor modifications at existing true minor oil and natural
gas sources as determined pursuant to 40 CFR 49.153(a) that meet the
criteria specified in paragraphs (b)(1)(i) through (b)(1)(v)

[[Page 56573]]

of this section, shall comply with the requirements of Sec. Sec.
49.104 and 49.105, unless the owner or operator obtains a site-specific
permit as specified in paragraph (b)(2) or (b)(3) of this paragraph.
(i) The facility is an oil and natural gas production facility as
defined in Sec. 49.102;
(ii) The oil and natural gas production facility is located in
Indian country as defined in Sec. 49.102;
(iii) The oil and natural gas production facility is a new true
minor source or minor modification of an existing true minor source as
determined under Sec. 49.153;
(iv) The oil and natural gas production facility begins
construction or modification on or after October 3, 2016; and
(v) The oil and natural gas production facility is not located in a
designated nonattainment area.
(2) Owners and operators of facilities that meet the criteria
specified in paragraphs (b)(1) of this section that choose to obtain a
site-specific permit as specified in 40 CFR 49.155 before beginning
construction are not required to comply with the requirements of
Sec. Sec. 49.101 to 49.105.
(3) Owners and operators of facilities that meet the criteria
specified in paragraph (b)(1) of this section that the Reviewing
Authority requires to obtain a site-specific permit to ensure
protection of the NAAQS as specified in 40 CFR 49.155 before beginning
construction are not required to comply with Sec. Sec. 49.101 to
49.105.
(c) When must I comply with Sec. Sec. 49.101 through 49.105?
Compliance with Sec. Sec. 49.101 through 49.101 is required on or
after October 3, 2016.

Sec. 49.102 Definitions.

As used in Sec. Sec. 49.101 through 49.105, all terms not defined
herein shall have the meaning given them in the Clean Air Act, in
subpart A, and subpart OOOOa of 40 CFR part 60, in the Prevention of
Significant Deterioration regulations at 40 CFR 52.21, or in the
Federal Minor NSR Program in Indian Country at 40 CFR 49.152. The
following terms shall have the specific meanings given them:
Oil and natural gas production facility means a minor stationary
source engaged in the extraction and production of oil and natural gas,
as well as the processing, transmission and distribution of natural
gas, including the wells and all related processes used in the
extraction, production, recovery, lifting, stabilization, and
separation or treatment of oil and/or natural gas (including
condensate). Oil and natural gas production components may include, but
are not limited to: wells and related casing head; tubing head and
``Christmas tree'' piping; pumps; compressors; heater treaters;
separators; storage vessels; pneumatic devices; natural gas
dehydrators; well drilling, completion and workover processes and
portable non-self-propelled apparatuses associated with those
operations; and low to medium pressure, smaller diameter, gathering
pipelines and related components that collect and transport the oil,
natural gas and other materials and wastes from the wells or well pads.
Oil and natural gas well means a single well that extracts
subsurface reservoir fluids containing a mixture of oil, natural gas,
and water.
Owner or operator means any person who owns, leases, operates,
controls, or supervises an oil and natural gas production facility.
Regional Administrator means the Regional Administrator of an EPA
Region or an authorized representative of the Regional Administrator.

Sec. 49.103 Delegation of authority of administration to Indian
tribes.

(a) What is the purpose of this section? The purpose of this
section is to establish the process by which a Regional Administrator
may delegate to a federally-recognized tribe the authority to assist
the EPA with administration of this Federal Implementation Plan
(Sec. Sec. 49.101-49.105). This section provides for administrative
delegation and does not affect the eligibility criteria under 40 CFR
49.6 for treatment in the same manner as a state or a tribe's ability
to obtain approval of a tribal implementation plan under 40 CFR 49.7.
(b) How does a tribe request delegation? In order to be delegated
authority to assist us with administration of this FIP, the authorized
representative of a federally-recognized tribe must submit a request to
a Regional
Administrator that:
(1) Identifies the specific provisions for which delegation is
requested;
(2) Identifies the Indian Reservation or other areas of Indian
country for which delegation is requested;
(3) Includes a statement by the applicant's legal counsel (or
equivalent official) that includes the following information:
(i) A statement that the applicant is a tribe recognized by the
Secretary of the Interior;
(ii) A descriptive statement that is consistent with the type of
information described in Sec. 49.7(a)(2) demonstrating that the
applicant is currently carrying out substantial governmental duties and
powers over a defined area;
(iii) A description of the laws of the tribe that provide adequate
authority to administer the Federal rules and provisions for which
delegation is requested; and
(iv) A demonstration that the tribal agency has the technical
capability and adequate resources to administer the FIP provisions for
which the delegation is requested.
(c) How is the delegation of administrative authority accomplished?
(1) A Delegation of Authority Agreement will set forth the terms and
conditions of the administrative delegation, will specify the rule and
provisions that the tribe shall be authorized to implement on behalf of
the EPA, and shall be entered into by the Regional Administrator and
the tribe. The Agreement will become effective upon the date that both
the Regional Administrator and the authorized representative of the
tribe have signed the Agreement. Once the delegation becomes effective,
the tribe will be responsible, to the extent specified in the
Agreement, for assisting us with administration of this FIP and shall
act as the Regional Administrator as that term is used in these
regulations. Any Delegation of Authority Agreement will clarify the
circumstances in which the term ``Regional Administrator'' found
throughout this FIP is to refer only to the EPA Regional Administrator
and when it is intended instead to refer to the EPA Regional
Administrator or a federally-recognized tribe.
(2) A Delegation of Authority Agreement may be modified, amended,
or revoked, in part or in whole, by the Regional Administrator after
consultation with a tribe.
(d) How will any Delegation of Authority Agreement be publicized?
The Regional Administrator shall publish a notice in the Federal
Register informing the public of any Delegation of Authority Agreement
with a tribe to assist us with administration of all or a portion of
this FIP and will identify such delegation in the Code of Federal
Regulations. The Regional Administrator shall also publish an
announcement of the Delegation of Authority Agreement in local
newspapers.

Sec. 49.104 Requirements regarding threatened or endangered species
and historic properties.

(a) What are sources required to do to address threatened or
endangered species and historic properties? An owner/operator required
to meet the

[[Page 56574]]

requirements contained in Sec. Sec. 49.101 through 49.105 to satisfy
its obligation under Sec. 49.151(c)(1)(iii)(B) shall meet paragraph
(a)(1) or (2) of this section.
(1) The owner/operator shall submit to the EPA Regional Office (and
to the tribe where the source is located/locating) documentation
demonstrating that prior Endangered Species Act (ESA) and/or National
Historic Preservation Act (NHPA) compliance has been completed by
another federal agency in connection with the specific oil and natural
gas activity operated under this FIP. The owner/operator must be in
compliance with all measures required as part of that prior ESA and/or
NHPA process.
(2) The owner/operator shall submit to the EPA Regional Office (and
to the tribe where the source is located/locating) documentation
demonstrating that it has completed the screening procedures specified
for consideration of threatened and endangered species and/or historic
properties and receive written confirmation from the EPA stating that
it has satisfactorily completed these procedures. The procedures
document, ``Procedures to Address Threatened and Endangered Species and
Historic Properties for New or Modified True Minor Oil and Natural Gas
Production Sources in Indian Country Complying with the Oil and Natural
Gas Minor Source Federal Implementation Plan,'' August 13, 2015,
Version 1.0, is incorporated by reference into this section with the
approval of the Director of the Federal Register under 5 U.S.C. 552(a)
and 1 CFR part 51. To view or download the document, go to https://www.epa.gov/air/tribal/pdfs/procedures_for_esa_and_nhpa_for_ong_sources_8-13-15.pdf.

Sec. 49.105 Requirements.

(a) For true minor sources that are subject to 40 CFR part 63,
subpart DDDDD (National Emission Standards for Hazardous Air Pollutants
for Major Sources: Industrial, Commercial, and Institutional Boilers
and Process Heaters), for purposes of this FIP, sources must comply
with all of the applicable provisions of the standard as written at the
time construction or reconstruction of the source is begun.
(b) For true minor sources that are subject to 40 CFR part 60,
subpart IIII--Standards of Performance for Stationary Compression
Ignition Internal Combustion Engines, for purposes of this FIP, sources
must comply with all of the applicable provisions of the standard as
written at the time construction or reconstruction of the source is
begun, except for the following:
(1) Sec. 60.4200(a)(1)--Am I subject to this subpart? (applies to
manufacturers);
(2) Sec. 60.4200(b)--Not applicable to stationary spark ignition
internal combustion engines being tested at an engine test cell/stand;
(3) Sec. 60.4200(c)--Am I subject to this subpart? (area sources
and exemptions from Title V permits);
(4) Sec. 60.4201--What emission standards must I meet for non-
emergency engines if I am a stationary compression ignition internal
combustion engine manufacturer?;
(5) Sec. 60.4202--What emission standards must I meet for
emergency engines if I am a stationary compression ignition internal
combustion engine manufacturer?;
(6) Sec. 60.4203--How long must my engines meet the emission
standards if I am a manufacturer of stationary compression ignition
internal combustion engines?;
(7) Sec. 60.4210--What are my compliance requirements if I am a
stationary compression ignition internal combustion engine
manufacturer?; and
(8) Sec. 60.4215--What requirements must I meet for engines used
in Guam, American Samoa, or the Commonwealth of the Northern Mariana
Islands?
(c) For true minor sources that are subject to 40 CFR part 60,
subpart JJJJ--Standards of Performance for Stationary Spark Ignition
Internal Combustion Engines, for purposes of this FIP, sources must
comply with all of the applicable provisions of the standard as written
at the time construction or reconstruction of the source is begun,
except for the following:
(1) Sec. 60.4230(b)--Not applicable to stationary spark ignition
internal combustion engines being tested at an engine test cell/stand;
(2) Sec. 60.4230(c)--Exemption for obtaining a Title V permit if
owner or operator of an area source subject to this part;
(3) Sec. 60.4231 and Sec. 60.4232--Emission standards for
manufacturers;
(4) Sec. 60.4238 through Sec. 60.4242--Compliance Requirements
for Manufacturers; and
(5) Sec. 60.4247--Mobile source provisions that apply to
manufacturers of stationary spark ignition internal combustion engines
or equipment containing such engines.
(d) For true minor sources that are subject to 40 CFR part 60,
subpart Kb--Standards of Performance for Volatile Organic Liquid
Storage Vessels, for purposes of this FIP, sources must comply with all
of the applicable provisions of the standard as written at the time
construction or reconstruction of the source is begun, except for the
following:
(1) Sec. 60.112b(c)--Site-specific standard for Merck & Co.,
Inc.'s Stonewall Plant in Elkton, Virginia; and
(2) Sec. 60.117b(a) and (b)--Delegation of authority.
(e) For true minor sources that are subject to subpart OOOOa,
Emission Standards for New and Modified Sources in the Oil and Natural
Gas Sector, for purposes of this FIP, sources must comply with all of
the provisions of the standard as written at the time construction or
reconstruction of the source is begun, except for the following:
(1) Sec. 60.5365a(f)(3)--Equipment exemption at processing plant;
(2) Sec. 60.5365a(h)(4)--Existing sources constructed after August
23, 2011;
(3) Sec. 60.5370a(c)--Permit exemption;
(4) Sec. 60.5413a(a)(5)--Exemptions from performance testing--
hazardous waste incinerator;
(5) Sec. 60.5420a(a)(2)(i)--Advance notification requirements for
well completions; and
(6) Sec. 60.5420a(a)(2)(ii)--Advance notification requirements of
well completions when subject to state regulation that requires advance
notification.
(f) For true minor sources that are subject to 40 CFR part 63,
subpart HH--National Emission Standards for Hazardous Air Pollutants
from Oil and Natural Gas Production Facilities, for purposes of this
FIP, sources must comply with all of the applicable provisions of the
standard as written at the time construction or reconstruction of the
source is begun, except for the following:
(1) Sec. 63.760(a)(2)--Facilities that process, upgrade or store
hydrocarbon liquids;
(2) Sec. 63.760(b)(1)(ii)--Each storage vessel with the potential
for flash emissions;
(3) Sec. 63.760(b)(1)(iii)--Equipment located at natural gas
processing plants;
(4) Sec. 63.760(g)--Recordkeeping for major sources that overlap
with other regulations for equipment leaks;
(5) Sec. 63.764(c)(2)--(3)--Requirements for compliance with
standards for storage vessels and equipment at natural gas processing
plants, respectively;
(6) Sec. 63.766 Storage vessel standards; and
(7) Sec. 63.769 Equipment leak standards.
0
3. Section 49.151 is amended by revising paragraphs (b)(1),
(c)(1)(iii)(A) and (B), and (d)(1), (2) and (4) to read as follows:

Sec. 49.151 Program overview.

* * * * *

[[Page 56575]]

(b) * * *
(1) It satisfies the requirements of section110(a)(2)(C) of the Act
by establishing a preconstruction permitting program for all new and
modified minor sources (minor sources) and minor modifications at major
sources located in Indian country and by establishing a Federal
Implementation Plan (Sec. Sec. 49.101 to 49.105) for oil and natural
gas production true minor sources located in Indian country.
* * * * *
(c) * * *
(1) * * *
(iii) * * *
(A) If you own or operate an existing true minor source in Indian
country (as defined in Sec. 49.152(d)), you must register your source
with the Reviewing Authority in your area by March 1, 2013. If your
true minor source is not an oil and natural gas source, as defined in
Sec. 49.102, and you commence construction after August 30, 2011, and
before September 2, 2014, you must also register your source with the
Reviewing Authority in your area within 90 days after the source begins
operation. If your true minor source is an oil and natural gas source,
as defined in Sec. 49.102, and you commence construction after August
30, 2011, and before October 3, 2016, you must register your source
with the Reviewing Authority in your area within 90 days after the
source begins operation. You are exempt from these registration
requirements if your true minor source is subject to Sec. 49.138.
(B) If your true minor source is not an oil and natural gas source,
as defined in Sec. 49.102, and you wish to begin construction of a new
true minor source or a minor modification at an existing true minor
source on or after September 2, 2014, you must first obtain a permit
pursuant to Sec. Sec. 49.154 and 49.155 (or a general permit/permit by
rule pursuant to Sec. 49.156, if applicable). If your true minor
source is an oil and natural gas source, as defined in Sec. 49.102,
and you wish to begin construction of a new true minor source or a
minor modification at an existing true minor source on or after October
3, 2016, you must either comply with the Federal Implementation Plan
for oil and natural gas production sources located in Indian country
(Sec. Sec. 49.101 to 49.105) from the day you begin construction or
opt out of those requirements pursuant to Sec. 49.101(b)(2) and obtain
a minor source permit pursuant to Sec. Sec. 49.154 and 49.155 before
beginning construction. Alternatively you may be required by the EPA,
pursuant to Sec. 49.101(b)(3), to obtain a minor source permit
pursuant to Sec. Sec. 49.154 and 49.155 before beginning construction.
All proposed new sources or modifications are also subject to the
registration requirements of Sec. 49.160, except for sources that are
subject to Sec. 49.138.
* * * * *
(d) * * *
(1) If you begin construction of a new source or modification that
is subject to this program after the applicable date specified in
paragraph (c) of this section without applying for and receiving a
permit pursuant to this program or complying with the Federal
Implementation Plan at Sec. Sec. 49.101 to 49.105 for oil and natural
gas production, you will be subject to appropriate enforcement action.
(2) If you do not construct or operate your source or modification
in accordance with the terms of your minor NSR permit or the Federal
Implementation Plan for oil and natural gas production at Sec. Sec.
49.101 to 49.105, you will be subject to appropriate enforcement
action.
(3) * * *
(4) Issuance of a permit or compliance with the Federal
Implementation Plan for oil and natural gas production at Sec. Sec.
49.101 to 49.105 does not relieve you of the responsibility to comply
fully with applicable provisions of any EPA-approved implementation
plan or Federal Implementation Plan or any other requirements under
applicable law.
* * * * *
0
4. Section 49.152 is amended by revising the introductory text of
paragraph (d) and adding paragraph (4) to the definition of ``Indian
country'' to read as follows:

Sec. 49.152 Definitions.

* * * * *
(d) * * *
Indian country, as defined in 18 U.S.C. 1151, means the following
as applied to this program:
* * * * *
(4) For purposes of this rule, references to Indian country include
all Indian reservation lands where no EPA-approved program is in place
and all other areas of Indian country where no EPA-approved program is
in place and over which an Indian tribe, or the EPA, has demonstrated
that a tribe has jurisdiction.
* * * * *
0
5. Section 49.153 is amended by revising paragraphs (a)(1)(i)(B) and
(a)(1)(ii)(B) to read as follows:

Sec. 49.153 Applicability.

* * * * *
(a)* * *
(1) * * *
(i) * * *
(B) Step 2. Determine whether your proposed source's potential to
emit for the pollutant that you are evaluating, (including fugitive
emissions, to the extent they are quantifiable, only if the source
belongs to one of the source categories listed pursuant to section
302(j) of the Act), is equal to or greater than the corresponding minor
NSR threshold in Table 1 of this section. If it is, you are subject to
the preconstruction requirements of this program for that pollutant,
except that oil and natural gas production sources shall instead comply
with the requirements of the Federal Implementation Plan at Sec. Sec.
49.101 to 49.105, unless you opt-out of the Federal Implementation Plan
pursuant to Sec. 49.101(b)(2) in which case you are subject to the
preconstruction requirements of this program for that pollutant or are
required by the EPA to obtain a minor source permit pursuant to Sec.
49.101(b)(3). If not, go to Step 3 (paragraph (a)(1)(ii)(C) of this
section).
(ii) * * *
(B) Step 2. Determine whether the increase in allowable emissions
from the proposed modification (calculated using the procedures of
paragraph (b) of this section) would be equal to or greater than the
minor NSR threshold in Table 1 of this section for the pollutant that
you are evaluating. If it is, you are subject to the preconstruction
requirements of this program for that pollutant, except oil and natural
gas production sources shall instead comply with the requirements of
the Federal Implementation Plan at Sec. Sec. 49.101 to 49.105, unless
you opt-out of the Federal Implementation Plan pursuant to Sec.
49.101(b)(2) in which case you are subject to the preconstruction
requirements of this program for that pollutant or are required by the
EPA to obtain a minor source permit pursuant to Sec. 49.101(b)(3). If
not, go to Step 3 (paragraph (a)(1)(ii)(C) of this section).
* * * * *
0
6. Section 49.160 is amended by revising paragraphs (c)(1)(ii) and
(iii), adding paragraph (c)(1)(iv) and revising paragraph (c)(4) to
read as follows:

Sec. 49.160 Registration program for minor sources in Indian country.

* * * * *
(c) * * *
(1) * * *
(ii) If your true minor source is not an oil and natural gas
source, as defined in Sec. 49.102, and you commence construction after
August 30, 2011, and before September 2, 2014, you must

[[Page 56576]]

register your source with the Reviewing Authority within 90 days after
the source begins operation. If your new true minor source or minor
modification of an existing true minor source is an oil and natural gas
source, as defined in Sec. 49.102, and you commence construction after
August 30, 2011, and before October 3, 2016, you must register your
source with the Reviewing Authority within 90 days after the source
begins operation.
(iii) If your true minor source is not an oil and natural gas
source, as defined in Sec. 49.102, and you commence construction or
modification of your source on or after September 2, 2014, and your
source is subject to this rule, you must report your source's actual
emissions (if available) as part of your permit application and your
permit application information will be used to fulfill the registration
requirements described in Sec. 49.160(c)(2). If your true minor source
is an oil and natural gas source, as defined in Sec. 49.102, and you
commence construction or modification of your source on or after
October 3, 2016, you must report your source's actual emissions (if
available) as part of your permit application or registration of oil
and natural gas production sources using a form provided by the EPA,
``Registration for New True Minor Oil and Natural Gas Sources and Minor
Modifications at Existing True Minor Oil and Natural Gas Sources''
(available at: https://www.epa.gov/air/tribal/tribalnsr.html or from EPA
Regional Offices), and your permit application or registration for oil
and natural gas production sources will be used to fulfill the
registration requirements described in Sec. 49.160(c)(2).
(iv) Minor sources complying with Sec. Sec. 49.101 to 49.105 for
oil and natural gas production, as defined in Sec. 49.102, must submit
a registration form 30 days prior to beginning construction that
contains the information in Sec. 49.160(c)(2). The form titled
``Registration for New True Minor Oil and Natural Gas Sources and Minor
Modifications at Existing True Minor Oil and Natural Gas Sources'' is
available at: https://www.epa.gov/air/tribal/tribalnsr.html or from EPA
Regional Offices. This form is submitted instead of the application
form required in Sec. 49.160(c)(1)(iii).
* * * * *
(4) Duty to obtain a permit or comply with the Federal
Implementation Plan for oil and natural gas production sources.
Submitting a registration form does not relieve you of the requirement
to obtain any required permit, including a preconstruction permit, or
to comply with the Federal Implementation Plan for oil and natural gas
production if your source or any physical or operational change at your
source would be subject to any minor or major NSR rule.
* * * * *
0
7. Section 49.167 is amended by revising the introductory text of
paragraph (d) and adding paragraph (d)(4) to read as follows:

Sec. 49.167 Definitions.

* * * * *
(d) Indian country, as defined in 18 U.S.C. 1151, means the
following as applied to this program:
* * * * *
(4) For purposes of this rule, references to Indian country include
all Indian reservation lands where no EPA-approved program is in place
and all other areas of Indian country where no EPA-approved program is
in place and over which an Indian tribe, or the EPA, has demonstrated
that a tribe has jurisdiction.
* * * * *
[FR Doc. 2015-21025 Filed 9-17-15; 8:45 am]
BILLING CODE 6560-50-P

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