EPA Mandatory GHG Reporting Regulations – 40 CFR Part 98

The EPA’s greenhouse gas (GHG) reporting rules in 40 CFR 98 Subpart W – Petroleum and Natural Gas Systems are contained in 40 CFR 98 – Mandatory Greenhouse Gas Reporting. The rule requires a facility that has actual emissions of 25,000 metric tons or more of CO2e per year to submit an annual report of GHGs to the EPA. Below is a summary of the requirements regarding leak detection and repair (LDAR) requirements. Review the rule for specific detailed requirements.

On October 15, 2018, the U.S. Environmental Protection Agency (EPA) published a notice in the Federal Register for a proposal rule to revise 40 CFR 60 Subpart OOOOa (Standards of Performance for Crude Oil and Natural Gas Facilities for which Construction, Modification or Reconstruction Commenced After September 18, 2015). The proposed changes are in response to petitions to reconsider several parts of the rule.

In September 2018, the Bureau of Land Management (BLM) announced the revision of the 2016 rule “Waste Prevention, Production Subject to Royalties, and Resource Conservation” (43 CFR Parts 3160 and 3170). A prepublication of the final rule can be found at: Link. The rule becomes effective 60 days after publication.

The USEPA posted proposed revisions to AP-42, Chapter 7, Section 7.1 - Organic Liquid Storage Tanks. The document referred to as “AP-42” is named AP-42, Compilation of Air Pollutant Emissions Factors, Volume 1: Stationary Point and Area Sources. AP-42 contains emission factors and emission estimation methods and equations used to calculate emissions across many emission source types (storage tanks, engines, heaters, loading losses, etc.) and industries. This includes emission sources used in the oil and gas (O&G) industry.

Air permits for oil and gas (O&G) production facilities include Federal EPA and State requirements for storage tanks for crude oil, condensate and produced water. The main EPA rules applying to O&G storage tanks are the New Source Performance Standards (NSPS) OOOO and OOOOa. Individual state environmental regulatory agencies may have their own storage tank regulations that might also apply.

The Ohio Environmental Protection Agency (Ohio EPA) is the environmental agency that administers air quality regulations and permitting programs in Ohio. Oil and gas (O&G) production facilities are required to obtain, from the Ohio EPA, an air permit prior to construction and operation. The exception to this is that for some counties, the Local Air Pollution Control Agency (LAPCA) is the air permitting agency in lieu of Ohio EPA. Contact the Ohio EPA to determine the correct air permitting agency for the county. The LAPCAs work with the Ohio EPA on air permitting for O&G operations. The following link has a listing of: OH Regional Offices and LAPCs.  

Compliance with air quality rules and permits require oil and gas (O&G) facilities to minimize leaks from components and equipment. Federal rules in NSPS OOOOa require certain oil and gas (O&G) well sites and compressor stations to periodically monitor for leaking components. State air permits require storage tanks with emissions controls (e.g., VRUs, VCUs) to operate without leaks. Additionally, operators have a general duty to minimize leaks for safety and environmental requirements.

In early May 2018, the federal EPA published a DRAFT document entitled “New Owner Clean Air Act Audit Program for Oil and Natural Gas Exploration and Production Facilities.” This voluntary audit program offers certain protections from Clean Air Act compliance penalties for newly acquired oil and gas (O&G) facilities provided the issues are resolved in a satisfactory manner. The agreement would only cover civil violations; there would be no protection from criminal liabilities.

This audit program is in addition to other EPA and State voluntary audit programs that are not focused on oil and gas operation.

The Louisiana Department of Environmental Quality (LDEQ) is the environmental agency that administers air quality regulations and permitting programs in Louisiana. Oil and gas (O&G) production facilities are required to obtain, from the LDEQ, an air permit prior to construction with some exemptions available.

Below is a summary of some key things to know about the LDEQ air permitting process for O&G operations. Consult the LDEQ rules or contact the LDEQ Office of Environmental Services - Air Quality section for details for O&G air permitting. The focus of this article is minor source air permitting rules for oil and gas operations.