80_FR_56734 80 FR 56553 - 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

80 FR 56553 - 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

Federal Register Volume 80, Issue 181 (September 18, 2015)

Page Range56553-56576
FR Document2015-21025

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.

Federal Register, Volume 80 Issue 181 (Friday, September 18, 2015)
[Federal Register Volume 80, Number 181 (Friday, September 18, 2015)]
[Proposed Rules]
[Pages 56553-56576]
From the Federal Register Online  [www.thefederalregister.org]
[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.

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

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: http://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 http://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: [email protected]. 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: [email protected]. 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: [email protected]. For questions about the 
applicability of this action to a particular source, please contact the 
appropriate EPA region:
---------------------------------------------------------------------------

    \1\ ``Emission Standards for New and Modified Sources in the Oil 
and Natural Gas Sector,'' signed August 18, 2015, http://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, http://www.epa.gov/airquality/oilandgas/actions/html.
---------------------------------------------------------------------------

     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: 
[email protected].
     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: [email protected].
     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: [email protected].
     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: [email protected].
     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: http://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, http://www.epa.gov/airquality/oilandgas/actions.html.
    \4\ Draft Control Techniques Guidelines for the Oil and Natural 
Gas Source Category, signed August 18, 2015, http://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, http://www.epa.gov/airquality/oilandgas/actions.html.
---------------------------------------------------------------------------

    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: 
http://www.epa.gov/airquality/oilandgas/actions.html, http://www.epa.gov/nsr (regulations and standards section of the NSR home 
page), and at: http://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: 
http://www.epa.gov/nsr, on the tribal NSR page at: http://www.epa.gov/air/tribal/tribalnsr.html, and at the oil and natural gas air pollution 
standards page at http://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.
---------------------------------------------------------------------------

    \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........  http://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.....  http://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     http://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  http://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,         http://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.....  http://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.
---------------------------------------------------------------------------

    \7\ ``Oil and Natural Gas Sector: Emission Standards for New and 
Modified Sources,'' signed August 18, 2015, http://www.epa.gov/airquality/oilandgas/actions.html.
---------------------------------------------------------------------------

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\
---------------------------------------------------------------------------

    \8\ ``Indian Tribes: Air Quality Planning and Management,'' U.S. 
Environmental Protection Agency, 63 FR 7254, February 12, 1998, 
http://www.thefederalregister.org/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.
---------------------------------------------------------------------------

    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\
---------------------------------------------------------------------------

    \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)).
---------------------------------------------------------------------------

    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.
---------------------------------------------------------------------------

    \12\ ``Review of New Sources and Modifications in Indian 
Country,'' U.S. Environmental Protection Agency, 71 FR 48696, August 
21, 2006, http://www.thefederalregister.org/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.
---------------------------------------------------------------------------

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.
---------------------------------------------------------------------------

    \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, http://www.thefederalregister.org/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.

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

[[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, http://www.thefederalregister.org/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, http://www.thefederalregister.org/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, http://www.thefederalregister.org/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 http://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, http://www.thefederalregister.org/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, http://www.thefederalregister.org/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, http://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, http://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: http://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,'' http://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,'' http://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\
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    \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,'' http://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, http://www.thefederalregister.org/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, http://www.thefederalregister.org/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,'' 
http://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: http://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: http://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 http://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 http://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 
http://epa.gov/gasstar/documents/ll_final_vap.pdf on the EPA's 
Natural Gas Star Web site: http://epa.gov/gasstar/index.html.
---------------------------------------------------------------------------

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: http://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: http://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 http://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: http://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: http://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



                                                                                                          Vol. 80                           Friday,
                                                                                                          No. 181                           September 18, 2015




                                                                                                          Part II


                                                                                                          Environmental Protection Agency
                                                                                                          40 CFR Parts 49, 51, 52, et al.
                                                                                                          Oil and Natural Gas; Proposed Rules and Notice
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                                                     56554                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     ENVIRONMENTAL PROTECTION                                to comport with a court decision that                 and the telephone number for the Air
                                                     AGENCY                                                  addressed EPA’s jurisdiction to                       Docket is (202) 566–1742.
                                                                                                             implement the Federal Indian Country                  FOR FURTHER INFORMATION CONTACT: Mr.
                                                     40 CFR Parts 49                                         Minor NSR rule: Oklahoma Dept. of                     Christopher Stoneman, Outreach and
                                                     [EPA–HQ–OAR–2014–0606; FRL–9931–75–
                                                                                                             Environmental Quality v. EPA, 740 F.3d                Information Division, Office of Air
                                                     OAR]                                                    185 (D.C. Cir. 2014). This court decision             Quality Planning and Standards (C–
                                                                                                             also affects the definition of Indian                 304–01), Environmental Protection
                                                     RIN 2060–AS27                                           country under the Federal Major New                   Agency, Research Triangle Park, North
                                                                                                             Source Review Program in Indian                       Carolina, 27711, telephone number
                                                     Review of New Sources and                               Country so we are changing the                        (919) 541–0823, facsimile number (919)
                                                     Modifications in Indian Country:                        definition under the Federal Indian                   541–0072, email address:
                                                     Federal Implementation Plan for                         Country Major NSR rule as well.                       stoneman.chris@epa.gov. For questions
                                                     Managing Air Emissions from True                                                                              about the oil and natural gas new source
                                                                                                             DATES: Comments. Comments must be
                                                     Minor Sources Engaged in Oil and                                                                              performance standards (NSPS) proposed
                                                                                                             received on or before November 17,
                                                     Natural Gas Production in Indian                                                                              action,1 please contact Mr. Bruce Moore,
                                                                                                             2015.
                                                     Country                                                    Public Hearing. The EPA will hold a                Sector Policies and Programs Division,
                                                     AGENCY:  Environmental Protection                       public hearing on this proposed action.               Office of Air Quality Planning and
                                                     Agency (EPA).                                           Details will be announced in a separate               Standards (E–143–01), Environmental
                                                                                                             notice.                                               Protection Agency, Research Triangle
                                                     ACTION: Proposed rule.
                                                                                                             ADDRESSES: Submit your comments,                      Park, North Carolina, 27711, telephone
                                                     SUMMARY:   The Environmental Protection                 identified by Docket ID No. EPA–HQ–                   number (919) 541–5460, facsimile
                                                     Agency (EPA) is proposing a federal                     OAR–2014–0606, to the Federal                         number (919) 541–4312, email address:
                                                     implementation plan (FIP) that would                    eRulemaking Portal: http://                           moore.bruce@epa.gov. For questions
                                                     apply to new true minor sources and                     www.regulations.gov. Follow the online                about the proposed action on the oil and
                                                     minor modifications at existing true                    instructions for submitting comments.                 natural gas source determination,2
                                                     minor sources in the production                         Once submitted, comments cannot be                    please contact Ms. Cheryl Vetter, Air
                                                     segment of the oil and natural gas sector               edited or withdrawn. The EPA may                      Quality Policy Division, Office of Air
                                                     that are locating or expanding in Indian                publish any comment received to its                   Quality Planning and Standards (C504–
                                                     reservations or in other areas of Indian                public docket. Do not submit                          03), Environmental Protection Agency,
                                                     country over which an Indian tribe, or                  electronically any information you                    Research Triangle Park, North Carolina,
                                                     the EPA, has demonstrated the tribe’s                   consider to be Confidential Business                  27711, telephone number (919) 541–
                                                     jurisdiction. The FIP would satisfy the                 Information (CBI) or other information                4391, facsimile number (919) 541–541–
                                                     minor source permitting requirement                     whose disclosure is restricted by statute.            4312, email address: vetter.cheryl@
                                                     under the ‘‘Federal Minor New Source                    Multimedia submissions (audio, video,                 epa.gov. For questions about the
                                                     Review (NSR) Program in Indian                                                                                applicability of this action to a
                                                                                                             etc.) must be accompanied by a written
                                                     Country’’ (referred to as the ‘‘Federal                                                                       particular source, please contact the
                                                                                                             comment. The written comment is
                                                     Indian Country Minor NSR rule’’). The                                                                         appropriate EPA region:
                                                                                                             considered the official comment and
                                                                                                                                                                      • EPA Region 5 (Illinois, Indiana,
                                                     FIP proposes to require emission                        should include discussion of all points
                                                                                                                                                                   Michigan, Minnesota, Ohio, and
                                                     limitations and other requirements from                 you wish to make. The EPA will
                                                                                                                                                                   Wisconsin)—Ms. Genevieve Damico,
                                                     certain federal emission standards as                   generally not consider comments or
                                                                                                                                                                   Air Permits Section, Environmental
                                                     written at the time of construction or                  comment contents located outside of the
                                                                                                                                                                   Protection Agency, Region 5, Chicago,
                                                     modification for compression ignition                   primary submission (i.e., on the web,
                                                                                                                                                                   Illinois 60604; telephone (312) 353–
                                                     and spark ignition engines, compressors                 cloud or other file sharing system). For
                                                                                                                                                                   4761; fax (312) 385–5501; email address:
                                                     (reciprocating and centrifugal), fuel                   additional submissions, and general
                                                                                                                                                                   damico.genevieve@epa.gov.
                                                     storage tanks, fugitive emissions from                  guidance on making effective                             • EPA Region 6 (Arkansas, Louisiana,
                                                     well sites and compressor stations,                     comments, please visit http://                        New Mexico, Oklahoma, and Texas)—
                                                     glycol dehydrators, hydraulically                       www2.epa.gov/dockets/commenting-                      Ms. Bonnie Braganza, Air Permits
                                                     fractured oil and gas well completions,                 epa-dockets.                                          Section, Multimedia Permitting and
                                                     pneumatic controllers in production,                      Docket. All documents in the docket                 Planning Division, Environmental
                                                     pneumatic pumps, process heaters and                    are listed in the www.regulations.gov                 Protection Agency Region 6, Dallas,
                                                     storage vessels.                                        index. Although listed in the index,                  Texas 75202; telephone number (214)
                                                        The EPA is also proposing several                    some information is not publicly                      665–7340; fax number (214) 665–6762;
                                                     amendments to the Federal Indian                        available, e.g., CBI or other information             email address: braganza.bonnie@
                                                     Country Minor NSR rule, including                       whose disclosure is restricted by statute.            epa.gov.
                                                     adding new text regarding the purpose                   Certain other material, such as                          • EPA Region 8 (Colorado, Montana,
                                                     of the program, revising the program                    copyrighted material, will be publicly                North Dakota, South Dakota, Utah, and
                                                     overview provision, establishing a                      available only in hard copy. Publicly                 Wyoming)—Ms. Claudia Smith, Air
                                                     compliance deadline of October 3, 2016,                 available docket materials are available              Program, Mail Code 8P–AR,
                                                     revising certain provisions to                          either electronically in                              Environmental Protection Agency
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                                                     incorporate compliance with the FIP,                    www.regulations.gov or in hard copy at                Region 8, Denver, Colorado 80202;
                                                     revising the applicability provision to                 the EPA Docket Center (EPA/DC), Room
                                                     establish that sources are required to                  3334, EPA WJC West Building, 1301                       1 ‘‘Emission Standards for New and Modified
                                                     comply with the FIP unless they opt to                  Constitution Ave. NW., Washington,                    Sources in the Oil and Natural Gas Sector,’’ signed
                                                     obtain a source-specific permit or are                  DC. The Public Reading Room is open                   August 18, 2015, http://www.epa.gov/airquality/
                                                     otherwise required to obtain a source-                  from 8:30 a.m. to 4:30 p.m., Monday                   oilandgas/actions.html.
                                                                                                                                                                     2 ‘‘Source Determination for Certain Emission
                                                     specific permit, and revising the source                through Friday, excluding legal                       Units in the Oil and Natural Gas Sector,’’ signed
                                                     registration provision. Also, we are                    holidays. The telephone number for the                August 18, 2015, http://www.epa.gov/airquality/
                                                     revising the definition of Indian country               Public Reading Room is (202) 566–1744,                oilandgas/actions/html.



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                                                                               Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                                           56555

                                                     telephone number (303) 312–6520; fax                                A. Tribal Air Rule                                              Order 13563: Improving Regulation and
                                                     number (303) 312–6520; email address:                               B. Federal Indian Country Minor NSR Rule                        Regulatory Review
                                                     smith.claudia@epa.gov.                                              C. General Permits and Permits by Rule for                   B. Paperwork Reduction Act (PRA)
                                                                                                                            the Federal Minor New Source Review                       C. Regulatory Flexibility Act (RFA)
                                                        • EPA Region 9 (Arizona, California,
                                                                                                                            Program in Indian Country—Final Rules                     D. Unfunded Mandates Reform Act
                                                     Hawaii, Nevada, and Pacific Islands)—                               D. EPA Actions Affecting Oil and Natural                        (UMRA)
                                                     Ms. Lisa Beckham, Permits Office, Air                                  Gas Minor Sources in areas covered by                     E. Executive Order 13132: Federalism
                                                     Division, Air-3, Environmental                                         the Federal Indian Country Minor NSR                      F. Executive Order 13175: Consultation
                                                     Protection Agency Region 9, San                                        Rule                                                         and Coordination with Indian Tribal
                                                     Francisco, California 94105; telephone                              E. What is a FIP?                                               Governments
                                                     number (415) 972–3811; fax number                                   F. Oil and Natural Gas Sector                                G. Executive Order 13045: Protection of
                                                     (415) 947–3579; email address:                                    IV. Summary of Proposed Oil and Natural                           Children from Environmental Health
                                                                                                                            Gas FIP                                                      Risks and Safety Risks
                                                     beckham.lisa@epa.gov.
                                                                                                                         A. Overview                                                  H. Executive Order 13211: Actions that
                                                        • All other EPA regions—The permit                               B. What are the proposed FIP                                    Significantly Affect Energy Supply,
                                                     reviewer for minor sources in Indian                                   requirements?                                                Distribution, or Use
                                                     country for your EPA region. You can                                C. Site-Specific Permits                                     I. National Technology Transfer and
                                                     find the list of the EPA permit reviewers                         V. Summary of Proposed Amendments to the                          Advancement Act (NTTAA)
                                                     at: http://www.epa.gov/air/tribal/                                     Federal Indian Country Minor NSR Rule                     J. Executive Order 12898: Federal Actions
                                                     tribalnsr.html. Scroll down to the                                VI. Implementation Issues                                         to Address Environmental Justice in
                                                     heading, ‘‘Existing Source Registration,’’                          A. Requirements Relating to Threatened or                       Minority Populations and Low-Income
                                                     and click on ‘‘Reviewing Authority’’ to                                Endangered Species and Historic                              Populations
                                                                                                                            Properties
                                                     access ‘‘Environmental Protection                                   B. What is the effect of this FIP on other                 I. General Information
                                                     Agency’s Reviewing Authorities for                                     Indian Country FIPs?
                                                     Permits.’’                                                        VII. Rationale for Proposed FIP                              A. What entities are potentially affected
                                                                                                                         A. Why are we choosing a FIP as an                         by this proposal?
                                                     SUPPLEMENTARY INFORMATION:    The
                                                                                                                            alternative to site-specific permits,
                                                     information presented in this preamble                                                                                           Entities potentially affected by this
                                                                                                                            general permits and permits by rule?
                                                     is organized as follows:                                            B. How did we select which equipment to                    proposal consist of owners and
                                                     I. General Information                                                 include in this proposed FIP?                           operators of facilities included in the
                                                        A. What entities are potentially affected by                     C. Why are we excluding existing sources                   following source categories that are
                                                           this proposal?                                                   from this proposed oil and natural gas                  located, or planning to locate, in an
                                                        B. What should I consider as I prepare my                           FIP?                                                    Indian reservation or in another area of
                                                           comments to the EPA?                                          D. Why is the EPA extending the                            Indian country (as defined in 18 U.S.C.
                                                        C. Where can I get a copy of this document                          permitting deadline for oil and natural
                                                                                                                                                                                    1151) over which an Indian tribe, or the
                                                           and other related information?                                   gas true minor sources in areas covered
                                                     II. Purpose                                                            by the Federal Indian Country Minor                     EPA, has demonstrated that the tribe has
                                                        A. Proposed Oil and Natural Gas FIP                                 NSR rule?                                               jurisdiction where there is no EPA-
                                                        B. Proposed Amendments to the Federal                          VIII. Statutory and Executive Order Reviews                  approved program in place and that are
                                                           Indian Country Minor NSR Rule                                 A. Executive Order 12866: Regulatory                       subject to the requirements of the
                                                     III. Background                                                        Planning and Review and Executive                       Federal Indian Country Minor NSR rule.

                                                                                             TABLE 1—SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION
                                                                                                                                                   NAICS
                                                                                    Industry category                                                              Examples of regulated entities/description of industry category
                                                                                                                                                   Code a

                                                     Oil and Gas Production/Operations ..............................................                     21111   Exploration for crude petroleum and natural gas; drilling, com-
                                                                                                                                                                    pleting, and equipping wells; operation of separators, emul-
                                                                                                                                                                    sion 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 hydro-
                                                                                                                                                                    carbon liquids from oil and gas field gases.
                                                     Crude Petroleum and Natural Gas Extraction ..............................                        211111      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.
                                                     Natural Gas Liquid Extraction .......................................................            211112      Recovery of liquid hydrocarbons from oil and gas field gases;
                                                                                                                                                                    and sulfur recovery from natural gas.
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                                                     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.




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                                                     56556                  Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                                              TABLE 1—SOURCE CATEGORIES AFFECTED BY THIS PROPOSED ACTION—Continued
                                                                                                                                       NAICS
                                                                                Industry category                                                     Examples of regulated entities/description of industry category
                                                                                                                                       Code a

                                                     Support Activities for Oil and Gas Operations .............................          213112     Performing support activities on a contract or fee basis for oil
                                                                                                                                                       and gas operations (except site preparation and related con-
                                                                                                                                                       struction 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 Compression Ignition) for Electric                       2211 **    Provision of electric power to support oil and natural gas pro-
                                                       Power Generation.                                                                               duction where access to the electric grid is unavailable.
                                                        a North   American Industry Classification System.


                                                        This list is not intended to be                       minor sources and minor modifications                    source determinations for oil and gas
                                                     exhaustive, but rather provides a guide                  at existing true minor sources for Indian                extraction facilities for NSR purposes.5
                                                     for readers regarding entities likely to be              country. The other two proposed rules                    All comments related to source
                                                     potentially affected by this action. To                  are the 2015 proposed 40 CFR part 60,                    determinations for oil and gas extraction
                                                     determine whether your facility could                    subpart OOOOa rulemaking, which                          facilities should be addressed to Docket
                                                     be affected by this action, you should                   updates the oil and natural gas NSPS,                    ID No. EPA–HQ–OAR–2013–0685.
                                                     examine the applicability criteria in the                and the proposed rule addressing oil                     Finally, all comments on the draft oil
                                                     final Federal Minor NSR Program in                       and natural gas source determinations                    and natural gas CTG document should
                                                     Indian Country (40 Code of Federal                       for NSR purposes.3 In addition, the EPA                  be addressed to Docket ID No. EPA–
                                                     Regulations (CFR) 49.153), as well as the                is making available for public review                    HQ–OAR–2015–0216.
                                                     proposed FIP applicability in 40 CFR                     and comment a draft Control                                 We have incorporated by reference
                                                     49.101. If you have any questions                        Techniques Guidelines (CTG) for the Oil                  Docket ID No. EPA–HQ–OAR–2010–
                                                     regarding the applicability of this action               and Natural Gas Source Category                          0505 and Docket ID No. EPA–HQ–OAR–
                                                     to a particular entity, contact the                      document.4 We welcome comments on                        2013–0685 into DOCKET ID No. EPA–
                                                     appropriate person listed in the FOR                     all four of these actions. To help us                    HQ–OAR–2014–0606. Comments
                                                     FURTHER INFORMATION CONTACT section.                     respond more efficiently to public                       submitted to Docket ID No. EPA–HQ–
                                                     B. What should I consider as I prepare                   comments on this proposal, we request                    OAR–2010–0505 and Docket ID No.
                                                     my comments to the EPA?                                  that commenters submit comments                          EPA–HQ–OAR–2013–0685 will be part
                                                                                                              addressing the oil and natural gas NSPS                  of the official record for this oil and
                                                       Submitting CBI. Do not submit this                     signed on August 18, 2015 to the docket                  natural gas FIP proposed action.
                                                     information to the EPA through                           for the oil and natural gas NSPS, Docket                    Docket. The docket number for this
                                                     regulations.gov or email. Clearly mark                   ID No. EPA–HQ–OAR–2010–0505.                             action is Docket ID No. EPA–HQ–OAR–
                                                     the part or all of the information that                  Please do not send comments on the                       2014–0606.
                                                     you claim to be CBI. For CBI                             proposed oil and natural gas NSPS to                        World Wide Web (WWW). In addition
                                                     information in a disk or CD ROM that                     the docket for this proposed FIP.                        to being available in the docket, an
                                                     you mail to the EPA, mark the outside                    Comments addressing the 2015                             electronic copy of this document will be
                                                     of the disk or CD ROM as CBI and then                    proposed oil and natural gas NSPS                        posted on the WWW. Following
                                                     identify electronically within the disk or               would include comments, for example,                     signature, the EPA will post a copy of
                                                     CD ROM the specific information that is                  about the level of proposed control for                  this document at: http://www.epa.gov/
                                                     claimed as CBI. In addition to one
                                                                                                              the oil and natural gas NSPS. For this                   airquality/oilandgas/actions.html,
                                                     complete version of the comment that
                                                                                                              proposal, we request comments on the                     http://www.epa.gov/nsr (regulations and
                                                     includes information claimed as CBI, a
                                                                                                              concept of relying on the oil and natural                standards section of the NSR home
                                                     copy of the comment that does not
                                                                                                              gas NSPS (and other applicable EPA                       page), and at: http://www.epa.gov/air/
                                                     contain the information claimed as CBI
                                                                                                              rules) for the oil and natural gas FIP for               tribal/tribalnsr.html (tribal NSR page).
                                                     must be submitted for inclusion in the
                                                                                                              Indian country. We request that                             Preparing Comments. When
                                                     public docket. Information so marked
                                                                                                              comments on this concept and other                       submitting comments, remember to:
                                                     will not be disclosed except in
                                                                                                              comments applicable to this proposed                        • Identify the rulemaking by docket
                                                     accordance with procedures set forth in
                                                                                                              FIP be submitted to the docket (Docket                   number and other identifying
                                                     40 CFR part 2. Send or deliver
                                                     information identified as CBI to only the                ID No. EPA–HQ–OAR–2014–0606). In                         information (subject heading, Federal
                                                     following address: Ms. Tiffany Purifoy,                  addition, on September 18, 2015, the                     Register date and page number).
                                                     c/o OAQPS Document Control Officer                       EPA proposed to amend 40 CFR parts                          • Respond to specific questions and
                                                     (Mail Code C404–02), U.S. EPA,                           51, 52, 70, and 71 to address major                      link comments to specific CFR
                                                                                                                                                                       references when appropriate.
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                                                     Research Triangle Park, NC 27711,
                                                     Attention Docket ID No. EPA–HQ–
                                                                                                                3 ‘‘Oil and Natural Gas Sector: Emission                  • Explain why you agree or disagree
                                                     OAR–2014–0606.
                                                                                                              Standards for New and Modified Sources,’’ signed         and suggest alternatives. Include
                                                                                                              August 18, 2015, and ‘‘Source Determination for          specific regulatory text that implements
                                                       Coordination of Comments on Four                       Certain Emission Units in the Oil and Natural Gas
                                                     Actions Affecting Oil and Natural Gas                    Sector,’’ signed August 18, 2015, http://                your requested changes.
                                                     Sector. The EPA is proposing three rules                 www.epa.gov/airquality/oilandgas/actions.html.
                                                                                                                4 Draft Control Techniques Guidelines for the Oil        5 ‘‘Source Determination for Certain Emission
                                                     that affect sources in the oil and natural               and Natural Gas Source Category, signed August 18,       Units in the Oil and Natural Gas Sector,’’ signed
                                                     gas sector. One is today’s proposed rule,                2015, http://www.epa.gov/airquality/oilandgas/           August 18, 2015, http://www.epa.gov/airquality/
                                                     the oil and natural gas FIP for new true                 actions.html.                                            oilandgas/actions.html.



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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                                        56557

                                                        • Explain technical information and/                 production segment of the oil and                           specific minor NSR permit instead. In
                                                     or data that you used to as the basis of                natural gas sector that are locating or                     addition, the Reviewing Authority could
                                                     your comment and provide references to                  expanding in an Indian reservation or in                    require a source to obtain a site-specific
                                                     the supporting information.                             another area of Indian country over                         permit based on local or reservation-
                                                        • If you estimate potential costs or                 which a tribe, or the EPA, has                              specific air quality concerns where the
                                                     burdens, explain how you arrived at                     demonstrated that the tribe has                             emissions from the source could cause
                                                     your estimate in sufficient detail to                   jurisdiction. The FIP would apply to                        or contribute to a National Ambient Air
                                                     allow for it to be reproduced.                          new and modified true minor sources                         Quality Standards (NAAQS) or
                                                        • Provide specific examples to                       that are located or expanding in the                        increment violation. To protect the
                                                     illustrate your concerns and suggest                    referenced areas of Indian country                          NAAQS, the Reviewing Authority could
                                                     alternatives.                                           designated as unclassifiable, attainment,                   regulate emissions from operations at
                                                        • Explain your views as clearly as                   or attainment/unclassifiable. It would                      the minor source not regulated by the
                                                     possible, avoiding the use of profanity                 not apply to new and modified true                          proposed FIP or could require more
                                                     or personal threats.                                    minor sources that are located or                           stringent emission limitations for
                                                        • Make sure to submit your                           expanding in referenced areas of Indian
                                                     comments by the comment period                                                                                      operations at the source regulated by the
                                                                                                             country designated nonattainment.                           proposed FIP.
                                                     deadline identified.                                    (Requirements for such areas would be
                                                                                                             addressed through site-specific minor                          In this FIP, we are proposing to
                                                     C. Where can I get a copy of this                                                                                   require owners and operators of oil and
                                                     document and other related                              NSR permitting and/or separate,
                                                                                                             reservation-specific FIPs.).                                natural gas production facilities to
                                                     information?                                                                                                        comply with six federal standards to
                                                                                                                This FIP would be used instead of
                                                       In addition to being available in the                 site-specific permits to fulfill the EPA’s                  reduce emissions of volatile organic
                                                     docket, an electronic copy of this                      obligation under the Federal Indian                         compounds (VOC), nitrogen oxides
                                                     proposal will also be available on the                  Country Minor NSR rule to issue minor                       (NOX), sulfur dioxide (SO2), particulate
                                                     WWW. Following signature by the EPA                     NSR preconstruction permits. The FIP                        matter (PM, PM10, PM2.5), hydrogen
                                                     Administrator, a copy of this notice will               would provide a streamlined,                                sulfide (H2S), carbon monoxide (CO)
                                                     be posted on the regulations and                        alternative approach addressing the                         and various sulfur compounds from:
                                                     standards section of the NSR home page                  permitting requirement, while also                          compression ignition and spark ignition
                                                     located at: http://www.epa.gov/nsr, on                  ensuring air quality protection through                     engines, compressors (reciprocating and
                                                     the tribal NSR page at: http://                         requirements that are unambiguous and                       centrifugal), fuel storage tanks, fugitive
                                                     www.epa.gov/air/tribal/tribalnsr.html,                  legally and practicably enforceable. The                    emissions from well sites and
                                                     and at the oil and natural gas air                      FIP would reduce burden for sources                         compressor stations, glycol dehydrators,
                                                     pollution standards page at http://                     and the Reviewing Authority and                             hydraulically fractured oil and gas well
                                                     www.epa.gov/airquality/oilandgas/                       prevent delays in new construction due                      completions, pneumatic controllers in
                                                     actions.html.                                           to the minor NSR permitting obligation.                     production, pneumatic pumps, process
                                                     II. Purpose                                             True minor sources in the oil and                           heaters and storage vessels. The
                                                                                                             natural gas sector would be required to                     proposed oil and natural gas FIP
                                                     A. Proposed Oil and Natural Gas FIP                     comply with the FIP instead of being                        requires compliance with four NSPS
                                                        We are proposing a FIP for new true                  required to obtain a minor source                           and two national emission standards for
                                                     minor sources and minor modifications                   permit, unless a source chooses to opt                      hazardous air pollutants (NESHAP).
                                                     at existing true minor sources in the                   out of the FIP and to obtain a site-                        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
                                                                                                                                          Potentially affected sources in the
                                                          40 CFR part and subpart                          Title of subpart                                                                           Location
                                                                                                                                                 production segment

                                                     40 CFR part 63, subpart DDDDD ..           National Emission Standards for           Process heaters ............................   http://www.ecfr.gov/cgi-bin/text-
                                                                                                  Hazardous Air Pollutants for                                                              idx?SID=9f31077f895e9cb41
                                                                                                  Major Sources: Industrial, Com-                                                           7f5386519941a
                                                                                                  mercial, and Institutional Boilers                                                        47&mc=true&node=sp40.14.63.
                                                                                                  and Process Heaters.                                                                      ddddd&rgn=div6
                                                     40 CFR part 60, subpart Kb ..........      Standards of Performance for              Fuel Storage Tanks ......................      http://www.ecfr.gov/cgi-bin/text-
                                                                                                  Volatile Organic Liquid Storage                                                           idx?SID=9f31077f895e9cb4
                                                                                                  Vessels (Including Petroleum                                                              17f5386519941a47&mc
                                                                                                  Liquid Storage Vessels) for                                                               =true&node=sp40.7.60.
                                                                                                  Which Construction, Recon-                                                                k_0b&rgn=div6
                                                                                                  struction, or Modification Com-
                                                                                                  menced After July 23, 1984.
                                                     40 CFR part 60, subpart IIII ...........   Standards of Performance for              Compression Ignition              Internal     http://www.ecfr.gov/cgi-bin/text-
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                                                                                                  Stationary Compression Ignition           Combustion Engines.                             idx?SID=9f31077f895e9
                                                                                                  Internal Combustion Engines.                                                              cb417f5386519941a47&mc
                                                                                                                                                                                            =true&node=sp40.7.60.
                                                                                                                                                                                            iiii&rgn=div6



                                                       6 Two of the six rules are NESHAPs. Our basis for     Federal Indian Country Minor NSR rule is primarily          regulated pollutants of concern in the Federal
                                                     requiring compliance with NESHAPs in this rule          to address criteria pollutants. These two NESHAPs           Indian Country Minor NSR rule.
                                                     that is designed to fulfill requirements of the         control VOC and/or NOX. VOC and NOX are NSR-



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                                                     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
                                                                                                                                          Potentially affected sources in the
                                                          40 CFR part and subpart                          Title of subpart                                                                         Location
                                                                                                                                                 production segment

                                                     40 CFR part 60, subpart JJJJ .......      Standards of Performance for               Spark Ignition Internal Combus-              http://www.ecfr.gov/cgi-bin/text-
                                                                                                 Stationary Spark Ignition Inter-           tion Engines.                                 idx?SID=9f31077f895e9cb417f5
                                                                                                 nal Combustion Engines.                                                                  386519941a47&mc=true&node
                                                                                                                                                                                          =sp40.7.60.jjjj&rgn=div6
                                                     40 CFR part 60, subpart OOOOa             Standards for New and Modified             Storage Vessels, Pneumatic Con-              http://www.epa.gov/airquality/
                                                       (proposed).                               Sources in the Oil and Natural             trollers, Compressors (Recipro-               oilandgas/actions.html
                                                                                                 Gas Sector.                                cating and Centrifugal), Hydrau-
                                                                                                                                            lically Fractured Oil and Gas
                                                                                                                                            Well Completions, Pneumatic
                                                                                                                                            Pumps and Fugitive Emissions
                                                                                                                                            from Well Sites and Com-
                                                                                                                                            pressor Stations.

                                                     40 CFR part 63, subpart HH .........      National Emission Standards for            Glycol Dehydrators .......................   http://www.ecfr.gov/cgi-bin/text-
                                                                                                 Hazardous Air Pollutants from                                                            idx?SID=9f31077f895e9cb4
                                                                                                 Oil and Natural Gas Production                                                           17f5386519941a4
                                                                                                 Facilities.                                                                              7&mc=true&node=sp40.11.63.
                                                                                                                                                                                          hh&rgn=div6



                                                        For purposes of this FIP, we are                     any future changes made to these six                      such areas must comply with the FIP in
                                                     proposing that compliance with these                    underlying EPA standards only if they                     lieu of obtaining a minor NSR permit,
                                                     rules would effectively satisfy the NSR                 would otherwise be subject to those                       unless the source opts for a site-specific
                                                     requirements. Therefore, we are                         future changes. To help understand the                    minor NSR permit. If a source opts-out
                                                     proposing that true minor oil and                       requirements of this proposed oil and                     of the FIP, then we are proposing to
                                                     natural gas sources subject to these                    natural gas FIP, please see the 2015                      extend the date for when the source
                                                     standards must comply with these                        proposed oil and natural gas NSPS and                     must obtain a minor source permit. We
                                                     standards as they currently exist and as                the provisions for each of the six federal                are proposing to extend the deadline
                                                     they may be amended, except for those                   rules (i.e., four NSPS and two NESHAP)                    from March 2, 2016, to October 3, 2016.
                                                     provisions that we specifically exclude.                identified above.                                            Fourth, we are proposing to revise
                                                     (This proposed FIP does not change the                                                                            § 49.151(d)(1), (2) and (4) to incorporate
                                                     applicability of the specified standards,               B. Proposed Amendments to the Federal
                                                                                                                                                                       compliance with the FIP.
                                                     nor does it relieve sources subject to the              Indian Country Minor NSR Rule
                                                                                                                                                                          Fifth, we are proposing to revise
                                                     standards from complying with them,                       Today’s action proposes several                         §§ 49.153(a)(1)(i)(B) and (ii)(B) to
                                                     independently of this FIP.)                             amendments to the Federal Indian                          establish that oil and natural gas
                                                        We are seeking comment on the                        Country Minor NSR rule. First, we are                     production true minor sources are
                                                     concept of relying on these EPA                         proposing to revise § 49.151(b)(1) to                     required to comply with the FIP, unless
                                                     standards as written at the time                        establish as one of the purposes of the                   a source opts out of the FIP pursuant to
                                                     construction or modification of the                     Federal Minor NSR Program in Indian                       § 49.101(b)(2) or is required by the EPA
                                                     source is begun for the requirements of                 Country the incorporation of the FIP                      to obtain a source-specific minor source
                                                     the proposed oil and natural gas FIP.                   (§§ 49.101 through 105) for oil and                       permit pursuant to § 49.101(b)(3).
                                                     The purpose is to protect air quality in                natural gas production true minor                            Sixth, we are proposing to revise
                                                     Indian reservations and in other areas of               sources located in an Indian reservation                  §§ 49.160(c)(1)(ii) and (iii), to add
                                                     Indian country for which an Indian                      or in another area of Indian country over                 § 49.160(c)(1)(iv) and to revise
                                                     tribe, or the EPA, has demonstrated the                 which an Indian tribe, or the EPA, has                    § 49.160(c)(4). We are revising
                                                     tribe’s jurisdiction and are designated as              demonstrated that the tribe has                           § 49.160(c)(1)(ii) to conform the
                                                     attainment, unclassifiable, or                          jurisdiction. Also, to clarify the purpose                registration deadline to the extended
                                                     attainment/unclassifiable. It is our                    of subpart C, we are proposing to revise                  permitting deadline in
                                                     intent that oil and natural gas sources in              the subpart heading.                                      § 49.151(c)(1)(iii)(B). For
                                                     areas covered by the Federal Indian                       Second, we are proposing to revise                      § 49.160(c)(1)(iii) and § 49.160(c)(1)(iv),
                                                     Country Minor NSR rule using the                        § 49.151(c)(1)(iii)(A) to conform the                     we are establishing that sources subject
                                                     proposed FIP would be subject, for                      registration deadline to the proposed,                    to the FIP still have to register with the
                                                     purposes of the proposed FIP, to any                    extended permitting deadline in                           Reviewing Authority, and we describe
                                                     amendments to an NSPS or NESHAP,                        § 49.151(c)(1)(iii)(B).                                   how to do that. For § 49.160(c)(4), we
                                                     including any amendments to the oil                       Third, we are proposing to revise                       are proposing to clarify that submitting
                                                     and natural gas NSPS that become part
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                                                                                                             § 49.151(c)(1)(iii)(B) to establish a                     a registration form does not relieve a
                                                     of the final oil and natural gas NSPS as                deadline for when new and modified                        source of the requirement to comply
                                                     a result of the 2015 proposed oil and                   true minor sources in the production                      with the FIP if the source (or any
                                                     natural gas NSPS.7 Sources subject to                   segment of the oil and natural gas sector                 physical or operational change at the
                                                     this proposed FIP would be subject to                   that are located in an Indian reservation                 source) would be subject to any minor
                                                       7 ‘‘Oil and Natural Gas Sector: Emission
                                                                                                             or in another area of Indian country over                 NSR rule.
                                                     Standards for New and Modified Sources,’’ signed
                                                                                                             which an Indian tribe, or the EPA, has                       Finally, we are revising the definition
                                                     August 18, 2015, http://www.epa.gov/airquality/         demonstrated that the tribe has                           of Indian country in § 49.152(d) to
                                                     oilandgas/actions.html.                                 jurisdiction or planning to locate in                     comport with a court decision that


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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                                    56559

                                                     addressed EPA’s jurisdiction to                         portion of a plan), among other                        consultation along with a 7-month
                                                     implement the Federal Indian Country                    provisions.9                                           public comment period that ended on
                                                     Minor NSR rule: Oklahoma Dept. of                          The TAR preamble clarified that by                  March 20, 2007. The comments
                                                     Environmental Quality v. EPA, 740 F.3d                  including CAA section 110(c)(1) on the                 provided detailed information specific
                                                     185 (D.C. Cir. 2014). This court decision               § 49.4 list, ‘‘EPA is not relieved of its              to Indian country and the final Federal
                                                     also affects the definition of Indian                   general obligation under the CAA to                    Indian Country Minor NSR rule
                                                     country under the Federal Major New                     ensure the protection of air quality                   incorporated many of the suggestions
                                                     Source Review Program in Indian                         throughout the nation, including                       we received. We promulgated final rules
                                                     Country so we are changing the                          throughout Indian country. The                         on July 1, 2011,13 and the FIP became
                                                     definition under the Federal Indian                     preamble confirmed that the ‘‘EPA will                 effective on August 30, 2011.
                                                     Country Major NSR rule in § 49.167.                     continue to be subject to the basic
                                                                                                             requirement to issue a FIP for affected                B. Federal Indian Country Minor NSR
                                                     III. Background                                         tribal areas within some reasonable                    Rule
                                                     A. Tribal Authority Rule                                time.’’10 In the TAR, we thus exercised
                                                                                                                                                                    1. What is the Federal Indian Country
                                                        Section 301(d) of the Clean Air Act                  our discretionary authority under CAA
                                                                                                                                                                    Minor NSR Rule?
                                                     (CAA) authorizes the EPA to treat                       §§ 301(a) and 301(d)(4) to establish a
                                                     Indian tribes in the same manner as                     regulation providing that we would                       The Federal Indian Country Minor
                                                     states and directs the EPA to promulgate                promulgate without unreasonable delay                  NSR rule applies to new and modified
                                                     regulations specifying those provisions                 such FIP provisions as are necessary or                minor stationary sources and to minor
                                                     of the CAA for which such treatment is                  appropriate to protect air quality (40                 modifications at existing major
                                                     appropriate. (42 U.S.C.§ 7601(d)(1) and                 CFR 40.11(a)). Section 49.11(a) provides               stationary sources located in Indian
                                                     (2)). It also authorizes the EPA, in                    that the EPA will promulgate a FIP as                  country14 where there is no EPA-
                                                     circumstances in which the EPA                          necessary or appropriate to protect tribal             approved program in place. Tribes can
                                                     determines that the treatment of Indian                 air quality within a reasonable time if                elect to develop and implement their
                                                     tribes as identical to states is                        tribal efforts do not result in adoption               own EPA-approved program under the
                                                     inappropriate or administratively                       and approval of tribal plans or                        Tribal Authority Rule (TAR),15 but they
                                                     infeasible, to provide by regulation                    programs.11                                            are not required to do so.16 In the
                                                                                                                On August 21, 2006, acting pursuant                 absence of an EPA-approved tribal
                                                     other means by which the EPA will
                                                                                                             to that authority, we proposed the                     program, the EPA implements the
                                                     directly administer the CAA. (42 U.S.C.
                                                                                                             regulation: ‘‘Review of New Sources and                program. Alternatively, tribes can take
                                                     § 7601(d)(4)) Acting principally
                                                                                                             Modifications in Indian Country’’ (i.e.,               administrative delegation of the federal
                                                     pursuant to that authority, on February
                                                                                                             Indian Country NSR rule).12 Within this                program from the EPA and become the
                                                     12, 1998,8 the EPA promulgated what
                                                                                                             regulation, the EPA proposed to protect                Reviewing Authority.
                                                     we refer to as the Tribal Authority Rule
                                                                                                             air quality in areas covered by the
                                                     (TAR). (40 CFR 49.1–49.11). In the TAR,
                                                                                                             Federal Indian Country Minor NSR rule
                                                     we determined that it was appropriate                                                                             13 ‘‘Review of New Sources and Modifications in
                                                                                                             by establishing a FIP program to                       Indian Country,’’ U.S. Environmental Protection
                                                     to treat tribes in the same manner as
                                                                                                             regulate the modification and                          Agency, 76 FR 38748, July 1, 2011, https://
                                                     states for all CAA and regulatory
                                                                                                             construction of stationary sources                     www.federalregister.gov/articles/2011/07/01/2011-
                                                     purposes except a list of specified CAA                                                                        14981/review-of-new-sources-and-modifications-in-
                                                                                                             consistent with the requirements of
                                                     provisions and implementing                                                                                    indian-country.
                                                                                                             section 110(a)(2)(c) of the CAA. We call
                                                     regulations thereunder. (40 CFR 49.4)                                                                             14 The Federal Indian Country Minor NSR rule
                                                                                                             this part of the Indian Country NSR rule               defines ‘‘Indian country’’ to include three categories
                                                     Among those provisions of the CAA for
                                                                                                             the Federal Indian Country Minor NSR                   of lands consistent with 18 U.S.C. 1151, i.e., Indian
                                                     which we determined that tribes will                                                                           reservations, dependent Indian communities, and
                                                                                                             rule. Under the Federal Indian Country
                                                     not be treated in the same manner as                                                                           Indian allotments. The U.S. Court of Appeals for the
                                                                                                             Minor NSR rule, we proposed to
                                                     states are specific plan submittal and                                                                         District of Columbia Circuit vacated the rule with
                                                                                                             provide a mechanism for issuing                        respect to non-reservation areas of Indian country
                                                     implementation deadlines for NAAQS-
                                                                                                             preconstruction permits for the                        (i.e., dependent Indian communities and Indian
                                                     related requirements, including the                                                                            allotments) (Oklahoma Dept. of Environmental
                                                                                                             construction of new minor sources and
                                                     requirement under section 110(a)(2)(c)                                                                         Quality v. EPA, 740 F.3d 185 (D.C. Cir. 2014)). The
                                                                                                             certain modifications of major and
                                                     to submit a program, including a permit                                                                        court held that the state, not tribes or the EPA, has
                                                                                                             minor sources in areas covered by the                  initial primary responsibility for implementation
                                                     program as required in parts C and D of
                                                                                                             Federal Indian Country Minor NSR rule.                 plans under CAA section 110 in non-reservation
                                                     the CAA, to regulate the modification                                                                          areas of Indian country in the absence of a
                                                                                                             In developing the rule, the EPA
                                                     and construction of any stationary                                                                             demonstration of tribal jurisdiction by the EPA or
                                                                                                             conducted extensive outreach and
                                                     source as necessary to assure that the                                                                         a tribe. The rule, therefore, does not apply in non-
                                                     NAAQS are achieved. In the TAR, we                                                                             reservation areas of Indian country unless a tribe or
                                                                                                               9 See 40 CFR 49.4(a) and (d) and 63 FR at 7262–
                                                                                                                                                                    the EPA has demonstrated that a tribe has
                                                     also determined that we would not treat                 66, February 12, 1998.                                 jurisdiction in a particular non-reservation area of
                                                     tribes in the same manner as states with                  10 See CAA section 301(a) and 63 FR at 7265,         Indian country.
                                                     respect to CAA section 110(a)(1) (State                 February 12, 1998.                                        15 To be eligible to develop and implement an
                                                                                                               11 Section 49.11(a) states that the EPA, ‘‘[s]hall   EPA-approved program, under the Tribal Authority
                                                     Implementation Plan (SIP) submittal)
                                                                                                             promulgate without unreasonable delay such             Rule a tribe must meet four requirements: (1) Be a
                                                     and CAA section 110(c)(1) (directing the                federal implementation plan provisions as are          federally-recognized tribe; (2) have a functioning
                                                     EPA to promulgate a FIP ‘‘within 2                      necessary or appropriate to protect air quality,       government carrying out substantial duties and
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                                                     years’’ after we find that a state has                  consistent with the provisions of sections 301(a)      powers; (3) propose to carry out functions
                                                     failed to submit a required plan, or has                and 301(d)(4), if a tribe does not submit a tribal     pertaining to air resources of the reservation or
                                                                                                             implementation plan meeting the completeness           other areas within the tribe’s jurisdiction; and (4)
                                                     submitted an incomplete plan, or within                 criteria of 40 CFR part 51, Appendix V, or does not    be reasonably expected to be capable of carrying out
                                                     2 years after we disapproved all or a                   receive EPA approval of a submitted tribal             the program. For more information go to: ‘‘Indian
                                                                                                             implementation plan’’ (see 40 CFR 49.11(a)).           Tribes: Air Quality Planning and Management,’’
                                                       8 ‘‘Indian Tribes: Air Quality Planning and             12 ‘‘Review of New Sources and Modifications in      U.S. Environmental Protection Agency, 63 FR 7254,
                                                     Management,’’ U.S. Environmental Protection             Indian Country,’’ U.S. Environmental Protection        February 12, 1998, http://www.gpo.gov/fdsys/pkg/
                                                     Agency, 63 FR 7254, February 12, 1998, http://          Agency, 71 FR 48696, August 21, 2006, http://          FR-1998-02-12/pdf/98-3451.pdf.
                                                     www.gpo.gov/fdsys/pkg/FR-1998-02-12/pdf/98-             www.gpo.gov/fdsys/pkg/FR-2006-08-21/html/06-              16 Tribes can also establish permit fees under a

                                                     3451.pdf.                                               6926.htm.                                              tribal permitting program, as do most states.



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                                                     56560                          Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                       Beginning September 2, 2014,17 any                                         permit before beginning construction of                                       NSR pollutant. If a source has a PTE in
                                                     new stationary source that will emit, or                                     a physical or operational change that                                         amounts lower than the thresholds, then
                                                     will have the potential to emit (PTE), a                                     will increase the allowable emissions of                                      it is exempt from the Federal Indian
                                                     regulated NSR pollutant in amounts that                                      the stationary source by more than the                                        Country Minor NSR rule (see Table 3
                                                     will be: (a) Equal to or greater than the                                    specified threshold amounts, if the                                           and 40 CFR 49.153) for that pollutant.
                                                     minor NSR thresholds, established in                                         change does not otherwise trigger the                                         New or modified sources that have a
                                                     the Federal Indian Country Minor NSR                                         permitting requirements of the PSD or                                         PTE in amounts that are: (1) Equal to or
                                                     rule; and (b) less than the amount that                                      nonattainment major NSR program(s).18                                         greater than the minor NSR thresholds;
                                                     would qualify the source as a major                                             In addition, among other things, the                                       and (2) less than the major NSR
                                                     source or a major modification for                                           Federal Indian Country Minor NSR rule                                         thresholds (generally 100 or 250 tons
                                                     purposes of the Prevention of                                                created a framework for the EPA to                                            per year (tpy)) are ‘‘minor sources’’ of
                                                     Significant Deterioration (PSD) or                                           streamline the issuance of
                                                     nonattainment major NSR programs,                                                                                                                          emissions and subject to the Federal
                                                                                                                                  preconstruction permits to true minor
                                                     must apply for and obtain a minor NSR                                                                                                                      Indian Country Minor NSR rule
                                                                                                                                  sources by using general permits.
                                                     permit before beginning construction of                                                                                                                    requirements at 40 CFR 49.151 through
                                                     the new source. Likewise, any existing                                       2. What are the minor NSR thresholds?                                         161.
                                                     stationary source (minor or major) must                                        The ‘‘minor NSR thresholds’’
                                                     apply for and obtain a minor NSR                                             establish cutoff levels for each regulated

                                                                                                TABLE 3—MINOR NSR THRESHOLDS FOR SOURCES IN INDIAN COUNTRY 19
                                                                                                                                                                                                                                               Minor NSR    Minor NSR
                                                                                                                                                                                                                                               thresholds   thresholds
                                                                                                                                                                                                                                                 for non-
                                                                                                                            Regulated NSR pollutant                                                                                                          for attain-
                                                                                                                                                                                                                                               attainment   ment areas
                                                                                                                                                                                                                                                  areas         (tpy)
                                                                                                                                                                                                                                                   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 (measured as nonmethane organic compounds) ...........................................                                                                 NA             10



                                                                                                                                  register with their appropriate regional                                      the need to take an enforceable
                                                       There may be sources that have                                             office.                                                                       restriction to reduce its PTE to such
                                                     emissions that are above the emission                                                                                                                      levels. A source’s PTE includes fugitive
                                                     thresholds defined for a true minor                                          3. What is a true minor source?
                                                                                                                                                                                                                emissions, to the extent that they are
                                                     source but which fall below the                                                 ‘‘True minor source,’’ under the                                           quantifiable, only if the source belongs
                                                     applicability levels for specific                                            Federal Indian Country Minor NSR rule,                                        to one of the 28 source categories listed
                                                     requirements referenced in the FIP. For                                      means a source that emits, or has the                                         in part 51, Appendix S, paragraph
                                                     example, the oil and natural gas sector                                      potential to emit, regulated NSR                                              II.A.4(iii) or 40 CFR 52.21(b)(1)(iii), as
                                                     NSPS, subpart OOOOa, includes a VOC                                          pollutants in amounts that are less than                                      applicable.
                                                     threshold of 6 tpy for storage vessel                                        the major source thresholds under either
                                                     applicability. In cases where a facility                                     the PSD Program at 40 CFR 52.21, or the                                       4. What is a general permit?
                                                     may have VOC emissions above 5 tpy                                           Federal Major NSR Program for                                                    The Federal Indian Country Minor
                                                     but below 6 tpy, owners or operators                                         Nonattainment Areas in Indian Country                                         NSR rule specified the process and
                                                     would not be subject to the storage                                          at 40 CFR 49.166–49.173, but equal to                                         requirements for using general permits
                                                     vessel provisions but would still be                                         or greater than the minor NSR                                                 to authorize construction and
                                                     required under the proposed FIP to                                           thresholds in 40 CFR 49.153, without                                          modifications at true minor sources as a
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                                                       17 For oil and natural gas true minor sources, this                        requirements under the major NSR programs, if the                             be located. If the source straddles the two areas, the
                                                     date was extended to March 2, 2016. This notice                              change has a reasonable possibility of resulting in                           more stringent thresholds apply.
                                                     proposes to extend it to October 3, 2016. For more                           a major modification. A source may be subject to                                20 In extreme ozone nonattainment areas, section

                                                     information, see: ‘‘Review of New Sources and                                both the Federal Indian Country Minor NSR rule                                182(e)(2) of the CAA requires any change at a major
                                                     Modifications in Indian Country Amendments to                                and the reasonable possibility MRR requirements of                            source that results in any increase in emissions to
                                                     the Registration and Permitting Deadlines for True                           the major NSR program(s).                                                     be subject to major NSR permitting. In other words,
                                                     Minor Sources,’’ 79 FR 34231, June 16, 2014, http://                           19 If part of a tribe’s area of Indian country is                           any changes to existing major sources in extreme
                                                     www.gpo.gov/fdsys/pkg/FR-2014-06-16/pdf/2014-                                designated as attainment and another part as                                  ozone nonattainment areas are subject to a ‘‘0’’ tpy
                                                     14030.pdf.                                                                   nonattainment, the applicable threshold for a                                 threshold, but that threshold does not apply to
                                                       18 A source may, however, be subject to certain                            proposed source or modification is determined                                 minor sources.
                                                     monitoring, recordkeeping and reporting (MRR)                                based on the designation where the source would                                 21 Id.




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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                                    56561

                                                     streamlined permitting approach. A                      EPA also finalized permits by rule for                  to March 2, 2016; and (2) an adjustment
                                                     general permit, for purposes of this                    use in areas covered by the Federal                     to the deadline by which existing true
                                                     action, is a permit document that                       Indian Country Minor NSR rule for new                   minor sources in the production
                                                     contains standardized requirements that                 or modified minor sources in three                      segment of the oil and natural gas sector
                                                     multiple stationary sources can use. The                source categories: Auto body repair and                 must register, from September 2, 2014,
                                                     EPA may issue a general permit for                      miscellaneous surface coating                           to March 2, 2016. On June 16, 2014, the
                                                     categories of emission units or                         operations; gasoline dispensing                         EPA finalized those amendments as
                                                     stationary sources that are similar in                  facilities; and petroleum dry cleaning                  proposed.26
                                                     nature, have substantially similar                      facilities. The EPA also took final action                 On June 5, 2014, the EPA published
                                                     emissions, and would be subject to the                  authorizing the use of general permits                  an advance notice of proposed
                                                     same or substantially similar permit                    established under the program to create                 rulemaking (ANPR).27 The purpose of
                                                     requirements.22 ‘‘Similar in nature’’                   synthetic minor sources.                                the ANPR was to solicit broad feedback
                                                     refers to size, processes, and operating                   On July 17, 2014, the EPA published                  on the most effective and efficient
                                                     conditions. The purpose of a general                    a proposed rule, ‘‘General Permits and                  means of implementing the Federal
                                                     permit is to provide for protection of air              Permits by Rule for the Federal Minor                   Minor NSR Program in Indian Country
                                                     quality, while simplifying the                          NSR Program in Indian Country,’’ to                     for sources in the production segment of
                                                     permitting process for similar minor                    simplify the CAA permitting process for                 the oil and natural gas sector. In it we
                                                     sources. General permits offer a cost-                  certain other smaller sources of air                    discussed alternatives to site-specific
                                                     effective means of issuing permits and                  pollution commonly found in Indian                      permits for new and modified minor
                                                     provide a quicker and simpler                           country.24 In the action, the EPA made                  sources engaged in oil and natural gas
                                                     mechanism for permitting minor                          available draft general permits for use in              production activities. The EPA
                                                     sources than the site-specific permitting               areas covered by the Federal Indian                     requested comments on the alternative
                                                     process.                                                Country Minor NSR rule for new or                       approaches and other aspects of
                                                                                                             modified minor sources in the following                 managing air emissions from oil and
                                                     5. What is a permit by rule?                                                                                    natural gas sources in areas covered by
                                                                                                             five source categories: Concrete batch
                                                        Like a general permit, a permit by rule              plants; boilers; stationary spark ignition              the Federal Indian Country Minor NSR
                                                     is a standard set of requirements that                  engines; stationary compression ignition                rule. The ANPR asked for public
                                                     can apply to multiple stationary sources                engines; and sawmill facilities. The EPA                comment on: (1) The inclusion of
                                                     with similar emissions characteristics.                 also proposed a permit by rule for use                  existing minor source emissions in a
                                                     For purposes of this action, a permit by                in areas covered by the Federal Indian                  FIP; (2) the advantages and
                                                     rule would differ from a general permit                 Country Minor NSR rule for new or                       disadvantages of available approaches
                                                     in that the EPA would codify a permit                   modified minor sources in the graphic                   (i.e., FIP, permit by rule, or general
                                                     by rule directly into the Federal Indian                arts and printing operations source                     permit) to manage emission impacts
                                                     Country Minor NSR rule. The process                     category.                                               from the sources in the production
                                                     for a source to obtain coverage under a                                                                         segment of the oil and natural gas sector
                                                     permit by rule is more streamlined                      D. EPA Actions Affecting Oil and                        in areas covered by the Federal Indian
                                                     compared to a standard general permit,                  Natural Gas Minor Sources in Areas                      Country Minor NSR rule; (3) the
                                                     or a site-specific permit.                              Covered by the Federal Indian Country                   activities and pollutants that warrant
                                                                                                             Minor NSR Rule                                          regulation; (4) the coordination of
                                                     C. General Permits and Permits by Rule
                                                                                                               On January 14, 2014, the EPA                          compliance between any approach
                                                     for the Federal Minor New Source
                                                                                                             published a proposed rule, ‘‘General                    selected and the Federal Minor NSR
                                                     Review Program in Indian Country—
                                                                                                             Permits and Permits by Rule for the                     Program in Indian Country; and (5) the
                                                     Final Rules
                                                                                                             Federal Minor New Source Review                         appropriate emission control
                                                        On May 1, 2015, the EPA published                    Program in Indian Country,’’ 25 that                    requirements.
                                                     a final rule, ‘‘General Permits and                     included two proposed amendments                           We received 20 comments on the
                                                     Permits by Rule for the Federal Minor                   that affected true minor sources in the                 issues raised in the ANPR. Three
                                                     NSR Program in Indian Country for Five                  production segment of the oil and                       comments were from tribes; one
                                                     Source Categories,’’ to simplify the CAA                natural gas sector. The proposed                        comment was from a federal
                                                     permitting process for certain smaller                  amendments were: (1) The extension of                   government agency; three comments
                                                     sources of air pollution commonly                       the deadline by which new true minor                    were from environmental groups; ten
                                                     found in Indian country.23 In the action,               sources and minor modifications of                      comments were from oil and natural gas
                                                     the EPA finalized general permits for                   existing true minor sources in the                      companies or industry trade
                                                     use in areas covered by the Federal                     production segment of the oil and                       associations; and three comments were
                                                     Indian Country Minor NSR rule for new                   natural gas sector must receive minor                   from anonymous commenters. The
                                                     or modified minor sources in the                        NSR permits prior to commencing                         comments are summarized in a
                                                     following two source categories: Hot                    construction, from September 2, 2014,                   document entitled: ‘‘Summary of Public
                                                     mix asphalt plants and stone quarrying,                                                                         Comments for Managing Emissions: Oil
                                                     crushing and screening facilities. The                    24 ‘‘General Permits and Permits by Rule for the      and Natural Gas Production in Indian
                                                                                                             Federal Minor New Source Review Program in              Country’’ and can be found in Docket ID
                                                       22 ‘‘Review of New Sources and Modifications in       Indian Country,’’ 79 FR 41846, July 17, 2014, http://
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                                                     Indian Country,’’ U.S. Environmental Protection         www.gpo.gov/fdsys/pkg/FR-2014-07-17/pdf/2014-             26 For more information, see: ‘‘Review of New
                                                     Agency, 76 FR 38770, July 1, 2011, https://             16814.pdf.                                              Sources and Modifications in Indian Country
                                                     www.federalregister.gov/articles/2011/07/01/2011–         25 The ‘‘General Permits and Permits by Rule for      Amendments to the Registration and Permitting
                                                     14981/review-of-new-sources-and-modifications-in-       the Federal Minor New Source Review Program in          Deadlines for True Minor Sources,’’ 79 FR 34231,
                                                     indian-country.                                         Indian Country’’ was proposed on January 14, 2014       June 16, 2014, http://www.gpo.gov/fdsys/pkg/FR-
                                                       23 ‘‘General Permits and Permits by Rule for the      (79 FR 2546). Proposed changes to the Federal           2014-06-16/pdf/2014-14030.pdf.
                                                     Federal Minor New Source Review Program in              Indian Country Minor NSR rule are on pages 79 FR          27 For more information, see: ‘‘Managing

                                                     Indian Country for Five Source Categories,’’ U.S.       2570–2572. Electronic copies are available in the       Emissions from Oil and Natural Gas Production in
                                                     Environmental Protection Agency, 80 FR 25068,           docket and in the regulations and standards section     Indian Country,’’ 79 FR 32502, June 5, 2014, http://
                                                     May 1, 2015, http://www.gpo.gov/fdsys/pkg/FR–           of our NSR home page located at http://                 www.gpo.gov/fdsys/pkg/FR-2014-06-05/pdf/2014-
                                                     2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf.           www.epa.gov/nsr.                                        12951.pdf.



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                                                     56562                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     No. EPA–HQ–OAR–2011–0151, which                         CAA §§ 301(a) and 301(d)(4) and 40 CFR                production; (2) natural gas processing;
                                                     has been incorporated by reference into                 49.11(a) authorize the EPA to                         (3) natural gas transmission and storage;
                                                     the docket for this action, Docket ID No.               promulgate FIPs as are necessary or                   and (4) natural gas distribution.
                                                     EPA–HQ–OAR–2014–0606.                                   appropriate to protect air quality.                      The proposed oil and natural gas FIP
                                                        We reviewed and carefully considered                   The Federal Indian Country Minor                    focuses on the first segment, oil and
                                                     all the comments we received on the                     NSR rule is an example of a FIP. In that              natural gas production, because we
                                                     ANPR in developing this proposed FIP.                   rule, we identified a regulatory gap that             believe the oil and natural gas
                                                     Although not presented in a comment                     could have the effect of adversely                    production segment includes the
                                                     and response format, our consideration                  impacting air quality due to the lack of              majority of the true minor sources in the
                                                     of the comments is evident throughout                   approved minor NSR permit programs                    sector that would need to obtain a minor
                                                     the discussions in this preamble.                       to regulate construction of new and                   source permit in areas covered by the
                                                     Commenters who wish their comments                      modified minor sources and minor                      Federal Indian Country Minor NSR rule.
                                                     on the ANPR to also be considered in                    modifications of major sources in areas               The oil and natural gas production
                                                     the development of the final FIP must                   covered by the Federal Indian Country                 segment includes the wells and all
                                                     resubmit those comments to the docket                   Minor NSR rule. The EPA promulgated                   related processes used in the extraction,
                                                     during the open public comment period                   the FIP to ensure that air resources in               production, recovery, lifting,
                                                     for this proposed action.                               areas covered by the Federal Indian                   stabilization, and separation or
                                                        On September 18, 2015, the EPA                       Country Minor NSR rule are protected                  treatment of oil and/or natural gas
                                                     proposed updates to the NSPS for the                    by establishing a preconstruction                     (including condensate). Production
                                                     oil and natural gas sector.28 This                      permitting program to regulate emission               components may include, but are not
                                                     proposed FIP adopts the standards from                  increases resulting from construction                 limited to, wells and related casing
                                                     six federal rules, including the oil and                and modification activities that are not              head, tubing head and ‘‘Christmas tree’’
                                                     natural gas NSPS (see Table 2). Future                  already regulated by the major NSR                    piping, as well as pumps, compressors,
                                                     changes to these rules could affect                     permitting programs.                                  heater treaters, separators, storage
                                                     requirements in the FIP because the                       Because there are also no currently                 vessels, pneumatic devices and natural
                                                     proposed FIP adopts all or parts of these               approved TIPs specifically applying to                gas dehydrators. Production operations
                                                     six federal emission standards,                         the issuance of general permits with                  also include the well drilling,
                                                     including future amendments. In                         respect to the reduction of emissions                 completion and workover processes and
                                                     addition, on September 18, 2015, the                    related to oil and natural gas production             include all the portable non-self-
                                                     EPA proposed an oil and natural gas                     facilities, we believe a FIP is needed to             propelled apparatuses associated with
                                                     source determination rule.29 This action                protect air quality in areas covered by               those operations. Production sites
                                                     is also connected to this FIP as it would               the Federal Indian Country Minor NSR                  include not only the sites where the
                                                     affect how oil and natural gas sources                  rule. This proposed FIP would adopt                   wells themselves are located, but also
                                                     are defined for the purpose of major/                   legally and practicably enforceable                   include centralized gas and/or liquid
                                                     minor source determinations.                            requirements to control and reduce air                gathering facilities where oil,
                                                                                                             emissions from oil and natural gas                    condensate, produced water, and
                                                     E. What is a FIP?                                                                                             natural gas from several wells may be
                                                                                                             production. Therefore, in this rule, we
                                                        Under section 302(y) of the CAA, the                 propose to determine that it is necessary             separated, stored, and treated. The
                                                     term ‘‘Federal implementation plan’’                    or appropriate to exercise our                        production segment also includes the
                                                     means ‘‘. . . a plan (or portion thereof)               discretionary authority under sections                low to medium pressure, smaller
                                                     promulgated by the Administrator to fill                301(a) and 301(d)(4) of the CAA and 40                diameter, gathering pipelines and
                                                     all or a portion of a gap or otherwise                  CFR 49.11(a) to promulgate a FIP to                   related components that collect and
                                                     correct all or a portion of an inadequacy               remedy an existing regulatory gap under               transport the oil, natural gas and other
                                                     in a SIP, and which includes                            the CAA with respect to oil and natural               materials and wastes from the wells or
                                                     enforceable emission limitations or                     gas production operations in areas                    well pads.
                                                     other control measures, means or                        covered by the Federal Indian Country                    The natural gas production segment
                                                     techniques (including economic                          Minor NSR rule where there is no EPA-                 ends where the natural gas enters a
                                                     incentives, such as marketable permits                  approved plan in place.                               natural gas processing plant. In
                                                     or auctions of emission allowances), and                                                                      situations where there is no processing
                                                     provides for attainment of the relevant                 F. Oil and Natural Gas Sector                         plant, the natural gas production
                                                     national ambient air quality standard.’’                   The oil and natural gas sector                     segment ends at the point where the
                                                        We interpret the reference to a ‘‘gap’’              includes operations involved in the                   natural gas enters the transmission
                                                     in a SIP as including circumstances                     extraction and production of oil and                  segment for long-line transport. The
                                                     where a SIP does not apply (i.e., on most               natural gas, as well as the processing,               crude oil production segment ends at
                                                     Indian reservations and other areas of                  transmission and distribution of natural              the storage and load-out terminal which
                                                     Indian country over which an Indian                     gas.30 Specifically for oil, the sector               is the point of custody transfer to an oil
                                                     tribe, or the EPA, has demonstrated that                includes all operations from the well to              pipeline or for transport of the crude oil
                                                     the tribe has jurisdiction) and the                     the point of custody transfer to an oil               to a petroleum refinery via trucks or
                                                     relevant tribe has not implemented an                   transmission pipeline or other means of               railcars. The petroleum refinery is not
                                                     EPA-approved plan. SIPs do not apply                    transportation to a petroleum refinery.               considered part of the oil and natural
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                                                     in these areas. In these circumstances,                 For natural gas, the sector includes all              gas sector. Thus, with respect to crude
                                                                                                             operations from the well to the final end             oil, the oil and natural gas sector ends
                                                       28 ‘‘Oil and Natural Gas Sector: Emission
                                                                                                             user. The oil and natural gas sector can              at point of custody transfer where crude
                                                     Standards for New and Modified Sources,’’ signed
                                                                                                             generally be separated into four                      oil enters an oil transmission pipeline or
                                                     August 18, 2015, http://www.epa.gov/airquality/                                                               other means of transportation to a
                                                     oilandgas/actions.html.                                 segments: (1) Oil and natural gas
                                                       29 ‘‘Source Determination for Certain Emission
                                                                                                                                                                   petroleum refinery.
                                                     Units in the Oil and Natural Gas Sector,’’ signed         30 For a more detailed discussion about the oil        Pollutants emitted from these
                                                     August 18, 2015, http://www.epa.gov/airquality/         and natural gas sector, see the preamble to the       activities that would be regulated
                                                     oilandgas/actions.html.                                 ANPR at 79 FR 32505–32508, June 5, 2014.              through the proposed Federal Minor


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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                         56563

                                                     NSR Program in Indian Country                           more detail in this section. The                      source is begun, except for the
                                                     (regulated NSR pollutants) include:                     proposed FIP requirements cover                       following:
                                                     VOC, NOX, SO2, PM, PM10, PM2.5, H2S,                    emission limitations and standards,                      • § 60.4200(a)(1)—Am I subject to this
                                                     CO and various sulfur compounds.                        monitoring, and testing and                           subpart? (applies to manufacturers);
                                                     Hydrogen sulfide and SO2 are emitted                    recordkeeping and reporting. For                         • § 60.4200(b)—Not applicable to
                                                     from production and processing                          purposes of this FIP, we are proposing                stationary ignition internal combustion
                                                     operations that handle and treat sour                   that true minor sources subject to these              engine being tested at an engine test
                                                     gas.31                                                  adopted standards must comply with                    cell/stand;
                                                                                                             these standards, as they currently exist                 • § 60.4200(c)—Am I subject to this
                                                     IV. Summary of Proposed Oil and                                                                               subpart? (area sources and exemptions
                                                                                                             or as amended in the future, except for
                                                     Natural Gas FIP                                                                                               from Title V permits);
                                                                                                             those provisions that we specifically
                                                     A. Overview                                             exclude under the FIP (unless the                        • § 60.4201—What emission
                                                                                                             source opts-out of the FIP and obtains                standards must I meet for non-
                                                       This proposed oil and natural gas FIP                                                                       emergency engines if I am a stationary
                                                     would require owners and operators of                   a source-specific permit). The excluded
                                                                                                             provisions are listed below. (This FIP                compression ignition internal
                                                     new and modified existing minor                                                                               combustion engine manufacturer?;
                                                     sources in the oil and natural gas                      does not change the applicability of the
                                                                                                             specified standards, nor does it relieve                 • § 60.4202—What emission
                                                     production segment that are located in                                                                        standards must I meet for emergency
                                                     areas covered by the Federal Indian                     sources subject to the standards from
                                                                                                             complying with them, independently of                 engines if I am a stationary compression
                                                     Country Minor NSR rule to comply with                                                                         ignition internal combustion engine
                                                     six federal rules. One of the rules this                this FIP.)
                                                                                                                Also discussed in this section are                 manufacturer?;
                                                     FIP proposes to adopt is certain                                                                                 • § 60.4203—How long must my
                                                     requirements of the proposed 40 CFR                     proposed features of the FIP and
                                                                                                             proposed amendments to the Federal                    engines meet the emission standards if
                                                     part 60, subpart OOOOa requirements.32                                                                        I am a manufacturer of stationary
                                                     Requirements under proposed NSPS,                       Indian Country Minor NSR rule.
                                                                                                                                                                   compression ignition internal
                                                     subpart OOOOa that have been                            B. What are the proposed FIP                          combustion engines?;
                                                     proposed include those requirements                     requirements?                                            • § 60.4210—What are my
                                                     that involve oil and natural gas                                                                              compliance requirements if I am a
                                                     production.33                                              We are proposing for purposes of this
                                                                                                                                                                   stationary compression ignition internal
                                                       These six rules are listed in Table 2                 FIP, that owners and operators who
                                                                                                                                                                   combustion engine manufacturer?; and
                                                     and provide requirements for:                           determine that their new true minor
                                                                                                                                                                      • § 60.4215—What requirements
                                                       • Storage vessels;                                    source, or the modification of their
                                                                                                                                                                   must I meet for engines used in Guam,
                                                       • Pneumatic controllers in                            existing true minor source, meets the
                                                                                                                                                                   American Samoa, or the Commonwealth
                                                     production;                                             applicability criteria of the proposed FIP
                                                                                                                                                                   of the Northern Mariana Islands?
                                                       • Compressors (reciprocating and                      must comply with all of the applicable                   For purposes of this FIP, we are
                                                     centrifugal);                                           and relevant requirements of the six                  proposing that true minor sources that
                                                       • Hydraulically fractured oil and gas                 federal rules listed in Table 2 above as              are subject to part 60, subpart JJJJ—
                                                     well completions;                                       written at the time construction or                   Standards of Performance for Stationary
                                                       • Pneumatic pumps;                                    reconstruction of the source is begun,
                                                       • Fugitive emissions from well sites                                                                        Spark Ignition Internal Combustion
                                                                                                             unless we exclude certain provisions as               Engines, must comply with all of the
                                                     and compressor stations;                                proposed below. In general, for this
                                                       • Glycol dehydrators;                                                                                       applicable provisions of the standard as
                                                                                                             proposed FIP, we are proposing to                     written at the time construction or
                                                       • Compression ignition and spark                      exclude specific provisions of the rules
                                                     ignition engines;                                                                                             reconstruction of the source is begun,
                                                                                                             because they are not relevant they                    except for the following:
                                                       • Fuel storage tanks; and                             would not apply to oil and natural gas
                                                       • Process heaters                                                                                              • § 60.4230(b)—Not applicable to
                                                                                                             production operations (e.g., emission                 stationary spark ignition internal
                                                       The six rules and the provisions of                   points at natural gas processing plants)
                                                     each that the proposed oil and natural                                                                        combustion engines being tested at an
                                                                                                             or they apply only to manufacturers and               engine test cell/stand;
                                                     gas FIP would reference are discussed in                not owner/operators.                                     • § 60.4230(c)—Exemption for
                                                        31 Sour gas is natural gas with more than 5.7
                                                                                                                For purposes of this FIP, we are                   obtaining a Title V permit if owner or
                                                     milligrams of H2S per normal cubic meters (0.25         proposing that true minor sources that                operator of an area source subject to this
                                                     grains/100 standard cubic feet), see AP–42              are subject to 40 CFR part 63, subpart                part;
                                                     Compilation of Air Pollutant Emission Factors,          DDDDD (National Emission Standards                       • § 60.4231 and § 60.4232—Emission
                                                     Chapter 5.0 Introduction to Petroleum Industry,         for Hazardous Air Pollutants for Major
                                                     Section 5.3 Natural Gas Processing, available at:                                                             standards for manufacturers;
                                                     http://www.epa.gov/ttnchie1/ap42/ch05/final/            Sources: Industrial, Commercial, and                     • § 60.4238 through § 60.4242—
                                                     c05s03.pdf.                                             Institutional Boilers and Process                     Compliance Requirements for
                                                        32 Proposed 40 CFR part 60, subpart OOOOa            Heaters), must comply with all of the                 Manufacturers; and
                                                     covers the emission sources covered under existing      applicable provisions of the standard as                 • § 60.4247—Mobile source
                                                     40 CFR part 60, subpart OOOO, as well as adding
                                                     coverage of new and modified emission sources
                                                                                                             written at the time construction or                   provisions that apply to manufacturers
                                                     beyond those covered in existing 40 CFR part 60,        reconstruction of the source is begun.                of stationary spark ignition internal
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                                                     subpart OOOO. These additional sources are                 For purposes of this FIP, we are                   combustion engines or equipment
                                                     hydraulically fractured oil well completions,           proposing that true minor sources that                containing such engines.
                                                     pneumatic pumps and fugitive emissions from well
                                                     sites and compressor stations.                          are subject to part 60, subpart IIII—                    For purposes of this FIP, we are
                                                        33 This list includes centrifugal compressors,       Standards of Performance for Stationary               proposing that true minor sources that
                                                     reciprocating compressors, pneumatic controllers,       Compression Ignition Internal                         are subject to part 60, subpart Kb—
                                                     pneumatic pumps, fugitive emissions from                Combustion Engines, must comply with                  Standards of Performance for Volatile
                                                     compressor stations, storage vessels. It excludes
                                                     sources located in the transmission and storage
                                                                                                             all of the applicable provisions of the               Organic Liquid Storage Vessels, must
                                                     segment because they are not part of this FIP           standard as written at the time                       comply with all of the provisions of the
                                                     proposal, which focusses on production.                 construction or reconstruction of the                 standard as written at the time


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                                                     56564                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     construction or reconstruction of the                   proposed section provides two options:                expanding in areas designated as
                                                     source is begun, except for the                         (1) A site-specific National                          unclassifiable, attainment, or
                                                     following:                                              Environmental Policy Act (NEPA)                       attainment/unclassifiable).
                                                        • § 60.112b(c)—Site-specific standard                process has been completed for the
                                                     for Merck & Co., Inc.’s Stonewall Plant                 specific oil and natural gas activity, and            Sources covered by the Federal Indian
                                                     in Elkton, Virginia; and                                the owner/operator also meets all air                 Country Minor NSR rule that do not
                                                        • § 60.117b(a) and (b)—Delegation of                 quality-related requirements as                       meet all of the criteria are, thus, not
                                                     authority.                                              specified by the decision document                    eligible to use the FIP and must,
                                                        For purposes of this FIP, we are                     (Record of Decision or Finding of No                  therefore, obtain a site-specific permit
                                                     proposing that true minor sources that                  Significant Impact) for its NEPA                      prior to beginning construction, on or
                                                     are subject to proposed part 60, subpart                analysis (these requirements are                      after October 3, 2016.
                                                     OOOOa—Standards for New and                             typically implemented and enforced as
                                                                                                                                                                      If a source owner/operator does not
                                                     Modified Sources in the Oil and Natural                 conditions of an approved Surface Use
                                                                                                                                                                   want to comply with the FIP, they have
                                                     Gas Sector, must comply with all of the                 Plan of Operations and/or Application
                                                     applicable provisions of the standard as                for Permit to Drill); or (2) submittal of             the option to apply for a site-specific
                                                     written at the time construction or                     documentation to the EPA Regional                     permit instead to meet the obligation
                                                     reconstruction of the source is begun,                  Office (and to the tribe where the source             under 40 CFR 49.151(c)(1)(iii)(B) of the
                                                     except for the following:                               is located/locating) demonstrating that               Federal Indian Country Minor NSR rule
                                                        • § 60.5365a(f)(3)—Equipment                         the source has completed the screening                to obtain a permit prior to commencing
                                                     exemption at processing plant;                          processes specified for consideration of              construction of a new true minor source
                                                        • § 60.5365a(h)(4)—Existing sources                  threatened and endangered species and                 or modification of an existing true
                                                     constructed after August 23, 2011;                      historic properties and received a                    minor source. As part of the FIP, we are
                                                        • § 60.5370a(c)—Permit exemption;                    determination from the EPA stating that               proposing specific rule language in
                                                        • § 60.5413a(a)(5)—Exemptions from                   it has satisfactorily completed these                 § 49.101(b)(2) to allow true minor
                                                     performance testing—hazardous waste                     processes. (The processes are contained               sources proposing to construct on or
                                                     incinerator;                                            in the following document: ‘‘Procedures               after the proposed, extended deadline
                                                        • § 60.5420a(a)(2)(i)—Advance                        to Address Threatened and Endangered                  date of October 3, 2016, to opt-out of the
                                                     notification requirements for well                      Species and Historic Properties for New               default FIP if preferred by the owner or
                                                     completions; and                                        or Modified True Minor Oil and Natural                operator. We are proposing that an
                                                        • § 60.5420a(a)(2)(ii)—Advance                       Gas Production Sources in Indian                      owner/operator of a source otherwise
                                                     notification requirements of well                       Country Complying with the Oil and                    subject to the proposed FIP can opt out
                                                     completions when subject to state                       Natural Gas Minor Source Federal
                                                     regulation that requires advance                                                                              and seek a true minor source site-
                                                                                                             Implementation Plan,’’ http://                        specific permit under 40 CFR
                                                     notification.                                           www.epa.gov/air/tribal/tribalnsr.html.)
                                                        For purposes of this FIP, we are                                                                           49.151(c)(1)(iii).
                                                     proposing that true minor sources that                  C. Site-Specific Permits                                 We are also proposing that the EPA,
                                                     are subject to 40 CFR part 63, subpart                    We are proposing that owners and                    or other Reviewing Authority, may
                                                     HH—NESHAP from Oil and Natural Gas                      operators of new and modified true                    require owners or operators to obtain a
                                                     Production Facilities, must comply with                 minor oil and natural gas sources that                site-specific permit in lieu of complying
                                                     all of the applicable provisions of the                 meet all of the following criteria must               with the proposed FIP to ensure
                                                     standard as written at the time                         comply with the requirements                          protection of the NAAQS. Under
                                                     construction or reconstruction of the                   contained in §§ 49.101 through 49.105                 § 49.101(b)(3), we are proposing to
                                                     source is begun, except for the                         of this proposed FIP, unless the owner                specify that the Reviewing Authority
                                                     following:                                              or operator opts-out of the FIP and                   may require an owner or operator of a
                                                        • § 63.760(a)(2)—Facilities that                     instead obtains a site-specific permit per            source, in certain areas of Indian
                                                     process, upgrade or store hydrocarbon                   proposed §§ 49.101(b)(2) and (3):                     country proposing to construct on or
                                                     liquids;                                                  • The facility is an oil and natural gas
                                                                                                                                                                   after October 3, 2016, to apply for a site-
                                                        • § 63.760(b)(1)(ii)—Each storage                    production facility as defined in
                                                     vessel with the potential for flash                                                                           specific permit for a new true minor
                                                                                                             proposed § 49.102;
                                                     emissions;                                                • The oil and natural gas production                source or minor modification of an
                                                        • § 63.760(b)(1)(iii)—Equipment                      facility is located in areas covered by               existing true minor source. In particular,
                                                     located at natural gas processing plants;               the Federal Indian Country Minor NSR                  the Reviewing Authority may determine
                                                        • § 63.760(g)—Recordkeeping for                      rule as defined in § 49.152(d) as                     that the source is not sufficiently
                                                     major sources that overlap with other                   proposed to be amended in this action;                controlled under the proposed FIP to
                                                     regulations for equipment leaks;                          • The oil and natural gas production                protect the NAAQS in the area of the
                                                        • § 63.764(c)(2)–(3)—Requirements                    facility is a new true minor source or a              proposed project (e.g., if the measured
                                                     for compliance with standards for                       minor modification of an existing true                design value for the area is close to or
                                                     storage vessels and equipment at natural                minor source as determined under                      above the level of the NAAQS). In that
                                                     gas processing plants, respectively;                    § 49.153;                                             circumstance, the Reviewing Authority
                                                        • § 63.766—Storage vessel standards;                   • The oil and natural gas production                can require the minor source to obtain
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                                                     and                                                     facility begins construction or                       a site-specific permit. The agency
                                                        • § 63.769—Equipment leak                            modification on or after October 3, 2016,             recommends at the time of registration,
                                                     standards.                                              the proposed extended permitting                      the owner/operator of all new sources or
                                                        Additionally, we are proposing that                  deadline date; and                                    all sources scheduled for modification
                                                     prior to beginning construction, under                    • The oil and natural gas production
                                                                                                                                                                   contact the Reviewing Authority for a
                                                     proposed § 49.104, true minor sources                   facility is not located in a designated
                                                                                                                                                                   review of the air quality status of that
                                                     are required to address procedures for                  nonattainment area (the proposed FIP
                                                                                                                                                                   area, and the possibility of a
                                                     assessing threatened and endangered                     would only apply to minor sources in
                                                     species and historic properties. The                    the oil and natural gas sector locating or            requirement for a site specific permit.



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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                         56565

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


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                                                     56566                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     Indian Country so we are changing the                   or eligible for listing on, the National              in connection with an analysis
                                                     definition under the Federal Indian                     Register of Historic Places—and to                    performed by the appropriate FLM.36
                                                     Country Major NSR rule § 49.167.                        provide the Advisory Council on                          Since an oil and gas exploration/
                                                        The Federal Indian Country Minor                     Historic Preservation (the Council) a                 production site involves surface
                                                     NSR rule and Federal Indian Country                     reasonable opportunity to comment on                  activities and accessing the mineral
                                                     Major NSR rule currently define ‘‘Indian                such undertakings.                                    resource below, thereby potentially
                                                     country’’ to include three categories of                  In developing the proposed FIP, EPA                 requiring an approval from both BLM
                                                     lands consistent with 18 U.S.C. 1151,                   has considered issues regarding listed                and BIA, these agencies often enter into
                                                     i.e., Indian reservations, dependent                    species and historic properties and has               agreements where one agency takes the
                                                     Indian communities, and Indian                          included provisions designed to ensure                lead in the overall NEPA (and
                                                     allotments. The U.S. Court of Appeals                   appropriate review of potential impacts               associated ESA and NHPA) review
                                                     for the District of Columbia Circuit                    on the protected resources. Although                  process (i.e., evaluations of the potential
                                                     vacated the rule with respect to non-                   the individual coverage of each source                impacts regarding mineral rights and
                                                     reservation areas of Indian country (i.e.,              that would operate under the FIP would                surface rights are combined). The lead
                                                     dependent Indian communities and                        not constitute a separate triggering                  agency may vary depending on the
                                                     Indian allotments) (Oklahoma Dept. of                   action for ESA or NHPA purposes, we                   particular Indian reservation at issue.
                                                     Environmental Quality v. EPA, 740 F.3d                  believe that the proposed FIP’s                       We believe that a majority of oil and gas
                                                     185 (D.C. Cir. 2014)). The court held                   procedures relating to listed threatened              activity in areas covered by the Federal
                                                     that the states, not tribes or the EPA,                 or endangered species and historic                    Indian Country Minor NSR rule occurs
                                                     have initial primary responsibility for                 properties provide an appropriate site-               on land within the jurisdiction of these
                                                     implementation plans under CAA                          specific means of addressing issues                   agencies. This means that before an oil
                                                     section 110 in non-reservation areas of                 regarding potential impacts on those                  and natural gas owner/operator can
                                                     Indian country in the absence of a                      resources in connection with sources                  begin construction under the FIP, the
                                                     demonstration of tribal jurisdiction by                 that could be covered under the FIP. We               APD must be approved by the FLMs. As
                                                     the EPA or a tribe. We are proposing to                 have provided two options, as described               part of the NEPA review process, the
                                                     revise the definition of Indian country                 below, for sources to meet the proposed               following steps are generally performed:
                                                     in §§ 49.152(d) and 49.167 to add a                     FIP’s requirements regarding these                       • For the ESA, impacts to threatened
                                                     clause indicating that, for purposes of                 resources.                                            and endangered species and critical
                                                     the Federal Indian Country Minor NSR                                                                          habitats are assessed through interaction
                                                                                                             a. Sources for Which a Prior ESA and/
                                                     rule and the Federal Indian Country                                                                           with local U.S. Fish and Wildlife
                                                                                                             or NHPA Assessment Has Been
                                                     Major NSR rule, references to Indian                                                                          Service field offices, with appropriate
                                                                                                             Completed
                                                     country include all Indian reservation                                                                        measures put in place to protect those
                                                     lands where no EPA-approved program                        In most of Indian country, oil and                 resources. These conditions are
                                                     is in place and all other areas of Indian               natural gas production activities cannot              incorporated in the FLMs’
                                                     country where no EPA-approved                           begin before an owner/operator has                    authorization.
                                                     program is in place and over which an                   obtained an approved application for                     • For the NHPA, impacts to historic
                                                     Indian tribe, or the EPA, has                           permit to drill (APD). This authorization             properties are evaluated by interaction
                                                     demonstrated that a tribe has                           will include a National Environmental                 with State and/or Tribal Historic
                                                     jurisdiction.                                           Policy Act Review (NEPA) 34 review that               Preservation Offices. Approval of an
                                                        These proposed changes will address                  is typically provided by certain agencies             action will address any appropriate
                                                     the minor NSR permitting requirements                   within the U.S. Department of the                     measures needed to protect a historic
                                                     for the affected sources, while reducing                Interior—the Bureau of Land                           property (e.g., production equipment
                                                     the permitting burden through a more                    Management (BLM) and the Bureau of                    must be located a specified distance
                                                     efficient and effective means of                        Indian Affairs (BIA), (herein after                   from a designated structure/road/etc.).
                                                     implementing the requirements.                          referred to as ‘‘Federal Land Managers                   The assessment(s) conducted by the
                                                                                                             (FLMs)’’ for simplicity).35 Under this                FLMs will likely consider a facility’s air
                                                     VI. Implementation Issues                               review process, BLM is typically                      emissions with respect to well drilling,
                                                     A. Requirements Relating to Threatened                  responsible for authorizing the mineral               completion, well-pad construction
                                                     or Endangered Species and Historic                      rights (i.e., permission to produce oil               activities and future operations and may
                                                     Properties                                              and/or natural gas) and BIA for                       require measures to reduce air
                                                                                                             authorizing surface activities (i.e.,                 emissions. In addition to any air
                                                     1. Overview                                             preparing the site for well-drilling                  pollution measures implemented
                                                        The Endangered Species Act (ESA)                     activities and operating equipment for                through the FLM’s NEPA (and
                                                     requires federal agencies to ensure, in                 the production of oil and/or natural                  associated ESA and NHPA) review, our
                                                     consultation with the U.S. Fish and                     gas). (There are also cases where only                proposed FIP would require each source
                                                     Wildlife Service and/or the National                    one of these agencies will be involved                to comply with the six federal rules
                                                     Marine Fisheries Service (the Services),                or where another federal agency is                    listed in Table 2 above in order to
                                                     that any action they authorize, fund, or                involved as well.) Such APD                           protect ambient air quality. The
                                                     carry out will not likely jeopardize the                authorizations are considered general                 measures employed under the proposed
                                                     continued existence of any listed                       triggering actions under the ESA and                  FIP would require compliance with
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                                                     threatened or endangered species, or                    NHPA, and the FLMs will typically                     specific requirements from the NSPS
                                                     destroy or adversely modify the                         conduct review procedures to ensure                   and NESHAP control requirements for
                                                     designated critical habitat of such                     that the requirements of these statutes               the following emission points:
                                                     species.                                                are met. Frequently, these reviews occur              compression ignition and spark ignition
                                                        The National Historic Preservation                                                                         engines, compressors (reciprocating and
                                                                                                               34 The NEPA regulatory requirements can be
                                                     Act (NHPA) requires federal agencies to                                                                       centrifugal), fuel storage tanks, fugitive
                                                                                                             found at 40 CFR parts 1500–1508.
                                                     take into account the effects of their                    35 The NEPA review process produces a decision
                                                     undertakings on historic properties—                    document that is either a Record of Decision or a       36 NEPA regulatory requirements can be found at

                                                     i.e., properties that are either listed on,             Finding of No Significant Impact.                     40 CFR parts 1500–1508.



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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                   56567

                                                     emissions from well sites and                           beginning construction. As we                      applicable CAA FIP, then the
                                                     compressor stations, glycol dehydrators,                explained in the development of both               requirements in this proposed FIP
                                                     hydraulically fractured oil and gas well                the general permits and permits by rule            supersede the requirements for
                                                     completions, pneumatic controllers in                   for the ‘‘General Permits and Permits by           equivalent emission sources in the other
                                                     production, pneumatic pumps, process                    Rule for the Federal Minor New Source              FIP. In some cases, other applicable
                                                     heaters and storage vessels. We believe                 Review Program in Indian Country,’’ 38             CAA FIPs defer to less stringent
                                                     the reductions achieved through the                     to ensure listed species and critical              requirements in other federal CAA rules
                                                     required emission controls, by virtue of                habitats and historic properties are               to avoid duplicative requirements.
                                                     being protective of ambient air quality,                protected, we developed a framework                Those cases would provide an exception
                                                     are also protective of threatened and                   for those permitting mechanisms                    to this general concept.
                                                     endangered species, their habitats and                  requiring the source owner/operator to                In the case of the FIP for Oil and
                                                     historic properties.                                    identify and assess potential effects to           Natural Gas Well Production Facilities
                                                       Where the FLM(s) have concluded                       protected resources before obtaining               on the Fort Berthold Indian Reservation
                                                     ESA and/or NHPA compliance as part of                   coverage. Requiring this assessment aids           (FBIR FIP) at 40 CFR 49.4161–4168 (78
                                                     the APD process in connection with a                    in identifying any concerns related to             FR 17836), we stated in the preamble to
                                                     particular source—whether as part of                    potential impacts on listed species/               that rulemaking that the FBIR FIP is not
                                                     the FLM’s NEPA review or otherwise—                     critical habitat or historic properties            a permitting program and does not
                                                     the source would be able to rely on that                early in the process when the greatest             exempt facilities from any federal CAA
                                                     prior review for compliance with the                    opportunities to mitigate or avoid any             permitting requirements, which would
                                                     proposed FIP’s listed species (if prior                 impacts—including changes to the                   include compliance with this proposed
                                                     ESA compliance has occurred) and                        facility’s location or footprint—are               FIP, and PSD preconstruction
                                                     historic properties (if prior NHPA                      available. The EPA believes that                   permitting requirements at 40 CFR
                                                     compliance has occurred) requirements.                  requiring a similar process in the air             52.21, Federal Indian Country NSR
                                                     No further assessment of impacts on                     quality permit by rule, the general air            permitting requirements for minor
                                                     these resources would be required by                    quality permit, this proposed FIP and              sources at 40 CFR 49.151, or federal
                                                     the proposed FIP as any such                            the general stormwater permits, will               Title V operating permit requirements at
                                                     assessment would be duplicative of the                  streamline the process for all concerned:          40 CFR part 71. The FBIR FIP does
                                                     prior work conducted by the FLM(s).                     the applicants, the EPA, the tribes, and           provide legal and practical
                                                     We would require that documentation                     the Services.                                      enforceability for the use of VOC
                                                     of completion of the APD process be                                                                        emission controls, and compliant
                                                                                                             B. What is the effect of this proposed FIP emission reductions achieved can be
                                                     provided before the owner/operator                      on other Indian Country FIPs?
                                                     begins construction under the FIP.                                                                         taken into account in calculating
                                                                                                                The objectives of this proposed FIP             potential VOC emissions when
                                                     b. Sources for Which No Prior ESA and/                  are to fulfill the requirements of the             determining the applicability of CAA
                                                     or NHPA Assessment Has Been                             Federal Indian Country Minor NSR rule permitting requirements. However,
                                                     Completed                                               to address the air quality impacts of new facilities subject to the FBIR FIP may
                                                       For oil and natural gas production                    and modified true minor sources and to emit VOCs from emission sources not
                                                     activities that do not undergo ESA and/                 impose appropriate air pollution control regulated under the FBIR FIP, and/or
                                                     or NHPA review as part of an                            requirements that protect the NAAQS,               may emit other NSR-regulated
                                                                                                             while providing an alternative to                  pollutants not regulated by the FBIR FIP
                                                     authorization from the FLM(s), we
                                                                                                             obtaining preconstruction approval                 at levels above the minor source
                                                     propose that those facilities first
                                                                                                             through the NSR preconstruction                    thresholds in the Federal Indian
                                                     complete screening procedures relevant
                                                                                                             permitting process. This proposed FIP              Country Minor NSR rule or the major
                                                     to the particular resource that has not
                                                                                                             does not replace any other FIPs                    source PSD thresholds at 40 CFR 52.21,
                                                     previously been reviewed before the
                                                                                                             promulgated under the CAA for oil and              thus triggering NSR permitting
                                                     owner/operator can begin construction
                                                                                                             natural gas sector sources in areas                requirements.
                                                     under the proposed FIP. These
                                                                                                             covered by the Federal Indian Country                 This proposed oil and natural gas FIP
                                                     screening procedures are similar to
                                                                                                             Minor NSR rule. An oil and natural gas             does not exempt facilities from
                                                     those currently in place for existing
                                                                                                             source in areas covered by the Federal             complying with the FBIR FIP. The EPA
                                                     general permits and permits by rule in                  Indian Country Minor NSR rule that is              recognizes that the VOC emission
                                                     areas covered by the Federal Indian                     subject to another CAA FIP must also               control requirements under the FBIR
                                                     Country Minor NSR rule before the                       comply with this proposed FIP.                     FIP are in some instances more stringent
                                                     owner/operator can begin construction                   Generally, in cases where emission                 than the VOC emission reduction
                                                     under the proposed FIP. Similar to our                  sources are already subject to a CAA FIP requirements of this proposed oil and
                                                     procedure for general permits and                       with more stringent requirements than              natural gas FIP. For instance, the FBIR
                                                     permits by rule, for the proposed FIP,                  those established for equivalent                   FIP requires up to 98 percent reduction
                                                     once an owner/operator completes the                    emission sources under this proposed               of VOC emissions from storage tanks,
                                                     screening procedures,37 they would                      FIP, the more stringent requirements               while this proposed FIP, which relies on
                                                     submit documentation to the EPA                         supersede the requirements in this                 applicability under the 2015 proposed
                                                     Regional Office and receive written                     proposed FIP. Conversely, if                       NSPS, subpart OOOOa, proposes to
                                                     verification of completion before
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                                                                                                             requirements for certain emission                  require 95 percent reduction of VOC
                                                       37 These procedures are available for sources
                                                                                                             sources in this proposed FIP are more              emissions from storage vessels. To avoid
                                                     potentially subject to this proposed FIP in a
                                                                                                             stringent than requirements for                    duplicative requirements, the FBIR FIP
                                                     document entitled: ‘‘Procedures to Address              equivalent emission sources in another             specifies that facilities operating
                                                     Threatened and Endangered Species and Historic                                                             emission sources regulated under the
                                                     Properties for New or Modified True Minor Oil and         38 ‘‘General Permits and Permits by Rule for the
                                                                                                                                                                FBIR FIP that are also subject to the
                                                     Natural Gas Production Sources in Indian Country        Federal Minor New Source Review Program in
                                                     Complying with the Oil and Natural Gas Minor            Indian Country,’’ 79 FR 2546, January 14, 2014,
                                                                                                                                                                storage vessel requirements under the
                                                     Source Federal Implementation Plan,’’ http://           http://www.gpo.gov/fdsys/pkg/FR-2014-01-14/pdf/    2015 proposed NSPS, subpart OOOOa,
                                                     www.epa.gov/air/tribal/tribalnsr.html.                  2013-30345.pdf.                                    must comply with the applicable


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                                                     56568                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     requirements of the 2015 proposed                       assurance, and meets the EPA’s                         coverage under the EPA’s permits by
                                                     NSPS, subpart OOOOa for those                           obligation to permit minor NSR sources.                rule. It is a source notification process
                                                     emission sources, rather than the                       The alternatives—site-specific permits,                in which individual sources, unlike the
                                                     requirements for produced oil and water                 general permits and permits by rule—do                 general permit process, are not required
                                                     storage tanks in the FBIR FIP. The FBIR                 not satisfy all of these concerns.                     to obtain the EPA’s review and approval
                                                     FIP also regulates VOC emissions from                      Both a general permit and a permit by               of a permit application prior to
                                                     oil and natural gas well completions,                   rule provide a more streamlined                        beginning construction.40 In a manner
                                                     well casing heads, and heater treaters at               approach for authorizing construction                  similar to a FIP, a permit by rule
                                                     oil and natural gas production facilities,              and modification of a source compared                  establishes a set of requirements to
                                                     which are not currently regulated by                    to site-specific permitting. A FIP,                    which a source becomes subject when it
                                                     NSPS subpart OOOO, and, thus, are not                   however, has the advantage of not                      obtains coverage under that permit by
                                                     part of this proposed FIP. Hydraulically                requiring a source to initiate advance                 submitting a Notification of Coverage
                                                     fractured oil well completions were                     review and obtain approval of coverage                 Form to the EPA, which the EPA then
                                                     proposed for regulation in the 2015                     from the Reviewing Authority before                    posts online. (For the sources subject to
                                                     proposed NSPS, subpart OOOOa signed                     beginning construction (as would a                     this proposed FIP, the EPA intends to
                                                     on August 18, 2015. Therefore, a new or                 general permit), and it would reduce the               post the registration forms that the EPA
                                                     modified oil and natural gas well                       resource burden on reviewing                           receives (see 40 CFR 49.160(c)). Thus,
                                                     production facility that is subject to the              authorities associated with processing                 on the issue of public scrutiny, the FIP
                                                     FBIR FIP that would also be subject to                  the potentially large volume of requests               and the permit by rule approaches are
                                                     this proposed FIP once final to meet the                from true minor sources in the oil and                 essentially the same. The EPA prefers
                                                     requirements of the Federal Indian                      natural gas production segment for                     the FIP because it provides more
                                                     Country Minor NSR rule would also                       coverage under a general permit. So,                   certainty for affected sources than the
                                                     need to comply with the FBIR FIP for                    from those standpoints a FIP is                        permit by rule approach and, as
                                                     casing head natural gas emissions and                   preferable to a general permit.                        discussed below, does not have any
                                                     heater treater produced natural gas                        In comparison to a general permit, a                significant disadvantages as compared
                                                     emissions.                                              FIP would provide less upfront scrutiny                to the permit by rule approach.
                                                                                                             of an individual new construction or                      Unlike NSR general permits and
                                                     VII. Rationale for Proposed FIP                         modification project and a citizen                     permits by rule, which cannot be used
                                                     A. Why are we choosing a FIP as an                      would not have the ability to object to                to address existing sources, a FIP could
                                                     alternative to site-specific permits,                   a specific source gaining coverage.                    extend to existing sources; this is a key
                                                     general permits and permits by rule?                    While we recognize these concerns, we                  distinction between general permits and
                                                                                                             believe that the proposed oil and natural              permits by rule versus a FIP. However,
                                                        In the ANPR, we asked for comment                                                                           this proposal does not contain
                                                     on three alternatives to site-specific                  gas FIP contains a robust set of emission
                                                                                                             control requirements and compliance                    requirements for existing sources. The
                                                     permits: general permits, permits by                                                                           EPA’s plan is to address existing
                                                     rule, and FIPs. Although commenters on                  monitoring and reporting provisions
                                                                                                             that will help ensure that a new or                    sources, to the extent necessary, in the
                                                     the ANPR differed in their opinions on                                                                         context of area- or reservation-specific
                                                     the best approach, the alternative                      modified true minor source would not
                                                                                                             cause or contribute to a NAAQS or PSD                  FIPs designed to address areas or
                                                     approach garnering the most support                                                                            reservations with air quality issues
                                                     was a FIP. Commenters supported using                   increment violation.39 In addition, any
                                                                                                             citizen could enforce the provisions of                (including nonattainment areas), as they
                                                     a FIP because it would streamline the                                                                          arise, that are associated with oil and
                                                     permitting approach, eliminate the need                 a FIP, as that person can with respect to
                                                                                                             requirements of any other                              natural gas activities. Such FIP(s) will
                                                     for preconstruction approval from the                                                                          need to address, as necessary,
                                                     permitting authority and apply                          implementation plan or CAA
                                                                                                             requirement, by commencing a civil                     requirements for existing sources, as
                                                     requirements directly to sources.                                                                              well as additional requirements beyond
                                                     Commenters also supported a FIP                         action in the district court in the
                                                                                                             judicial district in which the source is               those in this proposal for new and
                                                     because appropriate control measures                                                                           modified sources.
                                                     would be in place and would provide                     located. Citizens retain the right under
                                                     the EPA and tribes assurances that                      CAA section 304(a)(1) to commence a                    B. How did we select which equipment
                                                     construction and modification activities                civil action ‘‘against any person . . .                to include in this proposed FIP?
                                                     would be adequately and appropriately                   who is alleged to have violated . . . or                 In determining which equipment to
                                                     regulated. Some commenters supported                    to be in violation of (A) an emission                  include in the proposed oil and natural
                                                     a FIP because it could apply to existing                standard or limitation under this [Act]                gas FIP, we reviewed the EPA
                                                     sources. One commenter argued against                   . . . .’’ The Administrator also would                 regulations that apply to emission units
                                                     a FIP approach because a FIP does not                   retain the ability to enforce the                      within the oil and natural gas
                                                     afford the same level of opportunity for                requirements of a FIP under section                    production segment. We have relied
                                                     a regulatory authority or the public to                 113(a)(1) of the CAA.                                  substantially on analyses performed in
                                                     review, provide input on, or object to                     Another streamlined method, the                     support of the 2015 proposed NSPS,
                                                     sources’ coverage under a FIP as                        permit by rule approach, also lacks the                subpart OOOOa to help determine
                                                     compared to a general permit.                           upfront scrutiny found with a general                  which emission units the EPA should
                                                                                                             permit. In the first set of permits by rule
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                                                        We committed to developing an                                                                               consider regulating in the oil and
                                                     alternative to site-specific permits                    that the EPA has issued for use in areas               natural gas sector in areas covered by
                                                     primarily to avoid delays in new                        covered by the Federal Indian Country                  the Federal Indian Country Minor NSR
                                                     construction due to our inability to                    Minor NSR rule, we established the
                                                     process hundreds of true minor source                   process for individual sources to obtain                 40 ‘‘General Permits and Permits by Rule for the

                                                     permits in an acceptable timeframe. A                                                                          Federal Minor New Source Review Program in
                                                                                                               39 True minor sources in Indian country in the oil   Indian Country for Five Source Categories,’’ U.S.
                                                     FIP provides a regulatory tool that                     and natural gas sector are also required to register   Environmental Protection Agency, 80 FR 25068,
                                                     protects air quality, streamlines                       under 40 CFR 14.160 and provide certain                May 1, 2015, http://www.gpo.gov/fdsys/pkg/FR-
                                                     implementation and compliance                           information about their new or modified operations.    2015-05-01/pdf/FR-2015-05-01-FrontMatter.pdf.



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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                         56569

                                                     rule as part of this proposed FIP.41 In                 glycol dehydrators and process heaters                1. Comments in Favor of Regulation of
                                                     addition to the production segment                      at major sources of hazardous air                     Existing Sources
                                                     sources proposed to be covered under                    pollutants (HAPs) reflect MACT. The
                                                     NSPS, subpart OOOOa, in today’s FIP,                    MACT emission limitation for new                         In response to the ANPR the EPA
                                                     we are proposing requirements from                      sources cannot be less stringent than the             issued on June 5, 2014 (79 FR 32502),
                                                     existing EPA standards for three                        emission control achieved in practice by              several commenters expressed support
                                                     emission sources not covered by the                     the best-controlled similar source,                   for the regulation of existing sources
                                                     NSPS, subpart OOOOa because they are                    without considering costs. In addition,               under a minor source permitting
                                                     present at oil and natural gas production               under CAA section 112(d)(5), the                      program (i.e., a FIP) for oil and natural
                                                     sites and emit NOX and/or VOC:                          emission reduction requirements for                   gas sources. Two commenters agreed
                                                     engines, process heaters and glycol                     triethylene glycol dehydrators at area                with the ANPR that the cumulative
                                                     dehydration units. Three of the six                     sources reflect ‘‘generally available                 impacts from existing sources could
                                                     federal rules listed in Table 2 above                   control technology’’ (GACT). For GACT                 exceed that of large, new major sources.
                                                     regulate these sources of pollution,                    there is no statutory minimum level of                Some commenters voiced concerns
                                                     among others. Therefore, we determined                  emissions reduction for new or existing               about the impact of unregulated existing
                                                     that a combination of existing federal                  sources and costs can be considered. We               sources on the health and welfare of
                                                     regulations and the 2015 proposed                       are proposing that the oil and natural                tribal members. One commenter
                                                     NSPS, subpart OOOOa provides a                          gas FIP require sources to comply with                asserted that there is substantial
                                                     comprehensive and consistent                            the applicable MACT (for glycol                       evidence demonstrating that existing oil
                                                     regulatory approach for addressing true                 dehydrators and process heaters located               and gas sources are responsible for
                                                     minor oil and natural gas production                    at major sources of HAP) or GACT (for                 considerable air pollution emissions
                                                     sources in areas covered by the Federal                 glycol dehydrators located at area                    within Indian country, noting that in
                                                     Indian Country Minor NSR rule.                          sources of HAP) emission limitations.                 response to the Federal Indian Country
                                                        We have concluded that these federal                 Because the individual HAP pollutants                 Minor NSR rule, Region 8 received
                                                     regulations employ emission limitations                 regulated from glycol dehydrators by the              approximately 6,300 registrations from
                                                     that are technically and economically                   NESHAP (and to some degree from                       existing minor sources in the oil and
                                                     feasible, and cost effective because we                 process heaters, as well) for oil and gas             natural gas sector. The commenter
                                                     have vetted the existing regulations via                production sources are also VOC, which                asserted that regions like the Uintah
                                                     the public comment process and sources                  are regulated NSR pollutants, the                     Basin are already exceeding the ozone
                                                     are currently complying with these                      proposed FIP would create enforceable                 NAAQS, and even in regions where
                                                     federal standards, including new and                    VOC reduction requirements for glycol                 there are not yet NAAQS violations,
                                                     modified sources in the oil and natural                 dehydrators and process heaters. HAPs                 emissions from oil and natural gas
                                                     gas sector located in areas covered by                  would serve as a surrogate for VOC with               sources contribute to elevated ozone
                                                     the Federal Indian Country Minor NSR                    respect to emission limitations,                      levels and HAP emissions. The
                                                     rule. The referenced NSPS are all                       monitoring, testing and compliance. In                commenter stated that the EPA’s
                                                     promulgated pursuant to the EPA’s                       addition, compliance with 40 CFR part                 approach must reduce emissions from
                                                     authority under CAA section 111. Under                  63, subpart DDDDD MACT also                           existing sources in order for the EPA to
                                                     CAA section 111(a), the emission                        provides beneficial reductions of non-                meet its duty to protect public health
                                                     limitations for all the affected sources,               targeted NSR pollutants, i.e., NOX.                   and welfare, in addition to improving
                                                     except process heaters and glycol                          The rationale supporting the                       visibility impairment and nitrogen
                                                     dehydrators, ‘‘reflect the degree of                    applicability, emission limitations,                  deposition in national parks and
                                                     emission limitation achievable through                  monitoring, recordkeeping, reporting,                 wilderness areas. Another commenter
                                                     the application of the best system of                   and other provisions for each of the six              indicated that they could provide
                                                     emission reduction which (taking into                   federal rules is found in the preambles               modeling and monitoring data to the
                                                     account the cost of achieving such                      and background documents for those                    EPA demonstrating air quality impacts
                                                     reduction and any non-air quality health                rulemakings. The six federal rules are                to the National Park System. One
                                                     and environmental impact and energy                     available on the Electronic Code of                   commenter also argued that requiring
                                                     requirements) the Administrator                         Federal Regulations at: http://                       existing source controls would reduce
                                                     determines have been adequately                         www.ecfr.gov/cgi-bin/                                 methane emissions and subsequent
                                                     demonstrated.’’ We refer to this level of               ECFR?page=browse.                                     climate impacts.
                                                     control as the Best System of Emission                                                                           One commenter argued that the EPA
                                                     Reduction (BSER). In determining                        C. Why are we excluding existing
                                                                                                                                                                   must regulate existing sources to fulfill
                                                     BSER, we typically conduct a                            sources from this proposed oil and
                                                                                                                                                                   goals directed by the Obama
                                                     technology review that identifies what                  natural gas FIP?
                                                                                                                                                                   administration, including
                                                     emission reduction systems exist and                      This section provides a brief overview              recommendations from the Secretary of
                                                     how much they reduce air pollution in                   of some of the significant comments on                Energy’s Advisory Board that ‘‘measures
                                                     practice. For each control system                       the inclusion of existing sources in a                should be taken to reduce emissions of
                                                     identified, we also evaluate its costs and              FIP, followed by a discussion of the                  air pollutants, ozone precursors, and
                                                     other impacts.                                          EPA’s rationale for why requirements                  methane as quickly as practicable.’’ One
                                                        The NESHAP for process heaters and
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                                                                                                             for existing sources are not included in              commenter asserted that the EPA has
                                                     glycol dehydrators are promulgated                      this proposed action. A complete                      the statutory authority to implement
                                                     pursuant to the EPA’s authority under                   summary of the comments on this and                   regulations for existing oil and natural
                                                     CAA section 112. Under CAA section                      other issues we raised in the June 5,                 gas sources. One commenter expressed
                                                     112(d)(3), the emission limitations for                 2014, ANPR, can be found in Docket ID                 support for regulating existing sources,
                                                       41 ‘‘Background Technical Support Document for
                                                                                                             No. EPA–HQ–OAR–2011–0151, which                       but stated that not all existing minor
                                                     the Proposed New Source Performance Standards,
                                                                                                             has been incorporated by reference into               sources should be regulated in the same
                                                     40 CFR part 60, subpart OOOOa,’’ http://                the docket for this action, Docket ID No.             manner. Other commenters indicated
                                                     www.epa.gov/airquality/oilandgas/actions.html.          EPA–HQ–OAR–2014–0606.                                 that cost-effective controls are available


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                                                     56570                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     and should be applied to existing                       located on lands that are within a state’s            may require additional controls on
                                                     sources.                                                jurisdiction. In doing so, EPA would                  existing (and new and modified) sources
                                                                                                             consider tribes’ views and interests,                 in order to achieve attainment of the
                                                     2. Comments in Opposition of
                                                                                                             including any interest in promoting                   NAAQS. One source of information for
                                                     Regulation of Existing Sources
                                                                                                             economic development.                                 control options will be the EPA’s CTGs
                                                        In response to the ANPR the EPA                         While EPA believes that it has the                 for oil and natural gas activity that the
                                                     issued on June 5, 2014 (79 FR 32502),                   necessary authority to promulgate a FIP               EPA has made available for comment
                                                     many commenters objected to the                         regulating existing sources, in this                  and will finalize in 2016.43
                                                     regulation of existing sources.                         action, we are proposing a FIP that only                 We believe that existing sources are
                                                     Commenters urged the EPA to prioritize                  applies to new and modified true minor                best addressed through tailored, federal
                                                     development of a streamlined                            sources in the production segment of                  or tribal air quality plans because each
                                                     permitting process implementing the                     the oil and natural gas sector. This                  basin producing oil and/or natural gas
                                                     Federal Minor NSR Program in Indian                     proposed FIP for new and modified true                possesses different geological and
                                                     Country and to not include existing                     minor sources in the oil and natural gas              meteorological characteristics and, thus,
                                                     sources. Several commenters provided                    production segment locating or located                what primary fossil fuel resource is
                                                     legal arguments challenging the EPA’s                   in Indian reservations (and other areas               extracted can be very different in quality
                                                     authority to impose requirements on                     of Indian country over which an Indian                and type and the impacts from
                                                     existing sources. Two commenters                        tribe, or the EPA, has demonstrated that              emissions associated with extraction
                                                     stated that the EPA has not                             the tribe has jurisdiction) would apply               activities can vary widely. For example,
                                                     demonstrated that there is a need to                    to all such areas designated attainment,              the predominant resource extracted
                                                     regulate existing sources on a national                 unclassifiable, or attainment/                        from the Bakken Pool 44 is a light,
                                                     basis. The commenter further argued                     unclassifiable. It would not apply to any             volatile oil, while the primary resource
                                                     that the EPA must make a much more                      areas designated nonattainment. The                   extracted from the Uintah Basin is a
                                                     definitive showing of adverse air quality               Federal Indian Country Minor NSR rule                 heavy, thick oil. Each of these types, in
                                                     impacts to justify existing source FIP                  allows us to manage minor source                      many cases, call for different sets of
                                                     requirements, taking into account the air               emission increases in Indian country                  control requirements that are best
                                                     quality, mix of emissions, and                          and to ensure that new emissions do not               addressed through tailored plans versus
                                                     characteristics of each area in which it                cause or contribute to a NAAQS or PSD                 a national FIP.
                                                     seeks to impose existing source controls.               increment violation. We are concerned                    We believe that through tailored plans
                                                        Two commenters urged the EPA to
                                                                                                             that the rapid growth of the oil and                  a number of cost-effective emission
                                                     develop an emissions inventory using
                                                                                                             natural gas production segment in                     reduction measures could be applied to
                                                     emissions monitoring data prior to
                                                     implementing a FIP. Five commenters                     combination with existing exploration                 existing emission units to balance new
                                                     asserted that the EPA must establish an                 and production activities, could result,              growth by mitigating the potential for
                                                     attainment plan prior to regulating                     or in some cases already has resulted, in             adverse air quality impacts from overall
                                                     existing sources. The commenters urged                  adverse air quality impacts, especially               increases in emissions. A number of
                                                     that to regulate existing sources, the                  in light of the approximately 6,300                   state air pollution control agencies
                                                     EPA must make a determination that                      existing true minor source registrations              already regulate some existing
                                                     regulation is needed to attain the                      received in the EPA Region 8 Office for               emissions from this segment.45 For
                                                     NAAQS and develop an attainment plan                    facilities in the oil and natural gas                 example, in February 2014, Colorado
                                                     for the nonattainment areas in which                    sector.42 However, we believe that the                adopted additional regulations for oil
                                                     the sources are located, and only for the               most appropriate means for addressing                 and natural gas production operations
                                                     relevant nonattainment pollutants.                      impacts from existing sources is through              that include such requirements as
                                                     Other commenters stated that the EPA                    area- or reservation-specific FIPs and                expanding nonattainment area
                                                     must evaluate the need for any                          not through this proposed, national FIP.              pneumatic controller requirements
                                                     regulation of existing minor sources in                 If we determine that it is ‘‘necessary or             statewide and reducing venting and
                                                     each tribal area on a case-by-case basis.               appropriate’’ to exercise our                         flaring of gas streams at well sites,
                                                                                                             discretionary authority under sections                among other control strategies.46 In
                                                     3. The EPA’s Approach in This                           301(a) and 301(d)(4) of the CAA and 40                addition, these regulations determined
                                                     Proposed Action on Existing Oil and                     CFR 49.11(a) of our implementing                      leak detection and repair monitoring to
                                                     Natural Gas Minor Sources in Indian                     regulations, we will publish a proposed               be cost effective at oil and natural gas
                                                     Country                                                 area- or reservation-specific FIP that                production facilities. Some technologies
                                                        While the focus of the minor source                  provides an opportunity for full public               may even provide the industry with cost
                                                     permitting program is on new and                        review and comment. At a minimum,                     savings due to recovered product. For
                                                     modified oil and natural gas sources, the               the EPA or tribes will need to develop                example, the EPA’s Natural Gas Star
                                                     EPA believes that managing emissions                    area-specific plans if and when areas of
                                                     from existing oil and natural gas sources               Indian country become nonattainment                      43 For more information, go to: http://

                                                                                                             for ozone or other NAAQS pollutants.                  www.epa.gov/airquality/oilandgas/actions.html.
                                                     in some areas of Indian country also                                                                             44 Bakken Pool means oil produced from the
                                                     may be important. This is because of the                At that time, any such area that has oil              Bakken, Three Forks, and Sanish formations.
                                                     significant existing activity associated                and natural gas minor source activity                    45 See, e.g., L. Gribovicz, WRAP, ‘‘Analysis of
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                                                     with the oil and natural gas sector in                                                                        States’ and EPA Oil and Gas Air Emissions Control
                                                     some areas of Indian country and the                      42 In the Federal Indian Country Minor NSR rule,    Requirements for Oil and Gas Emissions Control
                                                                                                             EPA established a registration program that           Requirements for Selected Basins in the Western
                                                     resultant need to protect public health                 required owners and operators of existing true        United States (2013 Update),’’ Nov. 8, 2013,
                                                     and the environment from those                          minor sources to file a one-time registration with    available at http://www.wrapair2.org/pdf/2013-11x_
                                                     emissions. Addressing existing sources                  the appropriate Reviewing Authority by March 1,       O&G%20Analysis%20
                                                     through a FIP could be especially useful                2013. The EPA’s Region 8 Office has received about    (master%20w%20State%20Changes%2011-08).pdf.
                                                                                                             6,300 registrations from true minor sources in the       46 See Colorado Dept. of Public Health and
                                                     in areas of Indian country for which                    oil and natural gas sector. This far exceeded the     Environment, Air Quality Control Commission Web
                                                     surrounding state requirements apply to                 amount received from sources in any other             site at http://www.colorado.gov/cs/Satellite/CDPHE-
                                                     existing oil and natural gas sources                    category.                                             AQCC/CBON/1251647985820.



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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                                   56571

                                                     program estimates that adding a vapor                   on them, are helping us better                          C. Regulatory Flexibility Act (RFA)
                                                     recovery unit to a storage tank could pay               understand the sector, including sources
                                                                                                                                                                        I certify that this action will not have
                                                     for itself in 3 to 37 months, and                       located in Indian country. We are also
                                                                                                                                                                     a significant economic impact on a
                                                     thereafter result in cost savings.47                    considering in this action the comments
                                                                                                                                                                     substantial number of small entities
                                                                                                             provided in response to the ANPR (79
                                                     D. Why is the EPA extending the                                                                                 under the RFA. In making this
                                                     permitting deadline for oil and natural                 FR 32502, June 5, 2014) in which we
                                                                                                                                                                     determination, the impact of concern is
                                                     gas true minor sources in areas covered                 sought feedback on the most effective
                                                                                                                                                                     any significant adverse economic
                                                     by the Federal Indian Country Minor                     and efficient means of implementing the
                                                                                                                                                                     impact on small entities. An agency may
                                                     NSR rule?                                               Federal Minor NSR Program in Indian
                                                                                                                                                                     certify that a rule will not have a
                                                                                                             Country for sources in the oil and
                                                        The EPA is proposing to extend the                                                                           significant economic impact on a
                                                                                                             natural gas production segment of the
                                                     deadline to allow us sufficient time to                                                                         substantial number of small entities if
                                                                                                             oil and natural gas sector.
                                                     develop an approach for permitting new                                                                          the rule relieves regulatory burden, has
                                                     and modified true minor oil and natural                 VIII. Statutory and Executive Order                     no net burden or otherwise has a
                                                     gas production sources in areas covered                 Reviews                                                 positive economic effect on the small
                                                     by the Federal Indian Country Minor                                                                             entities subject to the rule. The EPA
                                                                                                             A. Executive Order 12866: Regulatory
                                                     NSR rule that is consistent and                                                                                 analyzed the impact of streamlined
                                                                                                             Planning and Review and Executive
                                                     coordinated with the EPA’s overall                                                                              permitting on small entities in the
                                                                                                             Order 13563: Improving Regulation and
                                                     approach to addressing emissions from                                                                           Federal Indian Country Minor NSR rule
                                                                                                             Regulatory Review
                                                     this sector. Specifically, we have needed                                                                       (76 FR 38748, July 1, 2011). The EPA
                                                     additional time to coordinate with the                    This proposed action is not a                         determined that that action would not
                                                     larger EPA effort to regulate methane                   significant regulatory action and was,                  have a significant economic impact on
                                                     and VOCs from the oil and natural gas                   therefore, not submitted to the Office of               a substantial number of small entities.
                                                     sector. On January 14, 2015, as part of                 Management and Budget for review.                       This proposed action merely
                                                     the Obama administration’s methane                      B. Paperwork Reduction Act (PRA)                        implements a particular aspect of the
                                                     strategy, the EPA outlined a series of                                                                          Federal Indian Country Minor NSR rule.
                                                                                                               This action does not impose any new                   We have, therefore, concluded that this
                                                     steps it plans to take to address methane
                                                                                                             information collection burden under the                 action will have no net regulatory
                                                     and smog-forming VOC emissions from
                                                                                                             PRA. OMB has previously approved the                    burden for all directly regulated small
                                                     the oil and gas industry, in order to
                                                     ensure continued, safe and responsible                  information collection activities                       entities.
                                                     growth in U.S. oil and natural gas                      contained in the existing regulations
                                                                                                             and has assigned OMB control number                     D. Unfunded Mandates Reform Act
                                                     production.48 This commonsense
                                                                                                             2060–0003. This action merely proposes                  (UMRA)
                                                     strategy will reduce methane pollution
                                                     from new sources in this rapidly                        to establish a FIP which serves as a                       This action does not contain any
                                                     growing industry, reduce ozone-forming                  mechanism for true minor sources in the                 unfunded mandate, as described in
                                                     pollutants from existing sources in areas               production segment of the oil and                       UMRA, 2 U.S.C. 1531–1538, and does
                                                     that do not meet federal ozone health                   natural gas sector locating or located in               not significantly or uniquely affect small
                                                     standards, and build on work that states                areas covered by the Federal Indian                     governments. The action imposes no
                                                     and industry are doing to address                       Country Minor NSR rule to satisfy the                   enforceable duty on any state, local or
                                                     emissions from existing sources                         requirements of the Federal Indian                      tribal governments or the private sector.
                                                     elsewhere.                                              Country Minor NSR rule in lieu of                       It simply provides one option for
                                                        We intend to ensure the approach that                obtaining a site-specific minor source                  sources to comply with the Federal
                                                     we use to permit true minor oil and                     permit. Because it is intended as a                     Indian Country Minor NSR rule. The
                                                     natural gas sources in areas covered by                 substitute for a site-specific permit                   Federal Indian Country Minor NSR rule
                                                     the Federal Indian Country Minor NSR                    which would contain information                         itself imposes the obligation that true
                                                     rule reflects the EPA technical expertise               collection activities in the Information                minor sources in areas covered by the
                                                     gained through the work that has and                    Collection Request for Federal Indian                   Federal Indian Country Minor NSR rule
                                                     will be done to understand feasible                     Country Minor NSR rule issued in July                   obtain a minor source NSR permit and
                                                     control opportunities in the oil and                    2011, it would not impose any new                       not this proposed FIP. This proposed
                                                     natural gas sector. In particular, we are               obligations or enforceable duties on any                FIP merely provides a vehicle for
                                                     drawing on the knowledge gained                         state, local or tribal government or the                meeting that obligation.
                                                     through the development of the                          private sector. In addition, the
                                                     technical white papers released on April                information collection activities                       E. Executive Order 13132: Federalism
                                                     15, 2014, that address emerging data on                 contained in the 6 rules proposed to be                   This action does not have federalism
                                                     VOCs and methane emissions from                         part of the proposed FIP have also been                 implications. It would not have
                                                     certain sources in the oil and natural gas              previously approved by OMB.50                           substantial direct effects on the states,
                                                     sector, as well as techniques for                                                                               on the relationship between the national
                                                                                                                50 40 CFR part 60, subpart Kb: Standards of
                                                     mitigating those emissions.49 The white                                                                         government and the states, or on the
                                                                                                             Performance for Volatile Organic Liquid Storage
                                                     papers, and the comments we received                    Vessels (Including Petroleum Liquid Storage             distribution of power and
                                                                                                             Vessels) for Which Construction, Reconstruction, or     responsibilities among the various
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                                                       47 See ‘‘Lessons Learned from Natural Gas STAR
                                                                                                             Modification Commenced After July 23, 1984 (OMB         levels of government.
                                                     Partners; Installing Vapor Recovery Units on            Control No. 2060–0074); 40 CFR part 60, subpart
                                                     Storage Tanks,’’ available at http://epa.gov/gasstar/   IIII: Standards of Performance for Stationary
                                                     documents/ll_final_vap.pdf on the EPA’s Natural         Compression Ignition Internal Combustion Engines        part 63, subpart DDDDD: National Emission
                                                     Gas Star Web site: http://epa.gov/gasstar/              (OMB Control No. 2060–0590); 40 CFR part 60,            Standards for Hazardous Air Pollutants for Major
                                                     index.html.                                             subpart JJJJ: Standards of Performance for Stationary   Sources: Industrial, Commercial, and Institutional
                                                       48 For more information, go to: http://
                                                                                                             Spark Ignition Internal Combustion Engines (OMB         Boilers and Process Heaters (OMB Control No.
                                                     www.epa.gov/airquality/oilandgas/pdfs/                  Control No. 2060–0610); 40 CFR part 60, subpart         2060–0616) and 40 CFR part 63, subpart HH:
                                                     20150114fs.pdf.                                         OOOO: Standards of Performance for Crude Oil and        National Emission Standards for Hazardous Air
                                                       49 The white papers can be found at: http://          Natural Gas Production, Transmission and                Pollutants from Oil and Natural Gas Production
                                                     www.epa.gov/airquality/oilandgas.                       Distribution (OMB Control No. 2060–0673); 40 CFR        Facilities (OMB Control No. 2060–0417).



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                                                     56572                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     F. Executive Order 13175: Consultation                  professionals and offer to consult with               and natural gas production in areas
                                                     and Coordination With Indian Tribal                     tribal leadership on this proposed                    covered by the Federal Indian Country
                                                     Governments                                             action.                                               Minor NSR rule..
                                                        This action has tribal implications.                 G. Executive Order 13045: Protection of               List of Subjects in 40 CFR Part 49
                                                     However, it will neither impose                         Children From Environmental Health
                                                     substantial direct compliance costs on                                                                          Environmental protection,
                                                                                                             Risks and Safety Risks                                Administrative practices and
                                                     federally recognized tribal governments,
                                                                                                               This action is not subject to Executive             procedures, Air pollution control,
                                                     nor preempt tribal law. The EPA has
                                                                                                             Order (EO) 13045 because it is not                    Incorporation by reference, Indians,
                                                     conducted outreach on this rule via on-
                                                                                                             economically significant as defined in                Indians-law, Indians-tribal government,
                                                     going monthly meetings with tribal
                                                                                                             EO 12866, and because the EPA does                    Intergovernmental relations, Reporting
                                                     environmental professionals in the
                                                                                                             not believe the environmental health or               and recordkeeping requirements.
                                                     development of this proposed action.
                                                                                                             safety risks addressed by this action                   Dated: August 18, 2015.
                                                     This action reflects tribal comments on
                                                                                                             present a disproportionate risk to
                                                     and priorities for developing an                                                                              Gina McCarthy,
                                                                                                             children.
                                                     approach for permitting true minor                                                                            Administrator.
                                                     sources in the production segment of                    H. Executive Order 13211: Actions That                  For the reasons set forth in the
                                                     the oil and natural gas sector in areas                 Significantly Affect Energy Supply,                   preamble, EPA proposes to amend 40
                                                     covered by the Federal Indian Country                   Distribution, or Use                                  CFR part 49 as follows:
                                                     Minor NSR rule. The EPA offered                           This action is not subject to Executive
                                                     consultation on the ANPR to elected                     Order 13211, because it is not a                      PART 49—INDIAN COUNTRY: AIR
                                                     tribal officials and the following tribes               significant regulatory action under                   QUALITY PLANNING AND
                                                     requested a consultation, which was                     Executive Order 12866.                                MANAGEMENT
                                                     held on July 18, 2014, with the tribes
                                                     and/or their representatives: MHA                       I. National Technology Transfer and                   ■ 1. The authority citation for part 49
                                                     (Mandan, Hidatsa and Arikara) Nations                   Advancement Act (NTTAA)                               continues to read as follows:
                                                     (Three Affiliated Tribes), Ute Tribe of                    This action does not involve technical                 Authority: 42 U.S.C. 7401, et seq.
                                                     the Uintah and Ouray Reservation, and                   standards.                                            ■ 2. Subpart C of part 49 is amended by
                                                     Crow Nation.
                                                                                                             J. Executive Order 12898: Federal                     adding a new undesignated center
                                                        At the consultation, the tribes present
                                                                                                             Actions To Address Environmental                      heading and §§ 49.101 to 49.105 to read
                                                     expressed a number of concerns
                                                                                                             Justice in Minority Populations and                   as follows:
                                                     regarding federal regulation of oil and
                                                     natural gas activity in Indian country.                 Low-Income Populations                                Federal Implementation Plans for
                                                     Three main themes were expressed.                          The EPA believes the human health or               Tribes
                                                     First, the tribes expressed the concern                 environmental risk addressed by this                  Sec.
                                                     that many areas of Indian country are                   action will not have potential                        49.101 Introduction.
                                                     facing difficult economic circumstances                 disproportionately high and adverse                   49.102 Definitions.
                                                     and are in need of economic                             human health or environmental effects                 49.103 Delegation of authority of
                                                     development to improve the quality of                   on minority, low-income or indigenous                      administration to Indian tribes.
                                                     life of tribal members; revenue from oil                populations. This proposed rule                       49.104 Requirements regarding threatened
                                                     and natural gas activity in many areas                  implements certain aspects of the                          or endangered species and historic
                                                     provides that economic development.                     Federal Indian Country Minor NSR rule.                     properties.
                                                     Second, in Indian country they                             Our primary goal in developing this                49.105 Requirements.
                                                     indicated that oil and natural gas                      program is to ensure that air resources               Federal Implementation Plans for
                                                     activity is already regulated by the                    in areas covered by the Federal Indian                Tribes
                                                     federal government and that the EPA                     Country Minor NSR rule will be
                                                     does not need to add to the burden.                     protected in the manner intended by the               § 49.101    Introduction.
                                                     They expressed a wish to be able to                     CAA. This action will help ensure air                   What is the purpose of §§ 49.101
                                                     manage their own resources without                      quality protection in areas covered by                through 49.105? (a) Sections 49.101
                                                     undue interference from the federal                     the Federal Indian Country Minor NSR                  through 49.105 adopt legally and
                                                     government. Finally, the tribes also                    rule, by including in a FIP a                         practicably enforceable requirements to
                                                     expressed a need for greater resources so               comprehensive set of control                          control and reduce emissions of volatile
                                                     that they can implement their own                       requirements for new and modified true                organic compounds, nitrogen oxides,
                                                     environmental programs as they                          minor source in the production segment                sulfur dioxide, particulate matter (PM,
                                                     determine in their own lands.                           of the oil and natural gas sector. In                 PM10, PM2.5), hydrogen sulfide, carbon
                                                        We believe that the FIP is directly                  addition, through this proposed FIP, we               monoxide and various sulfur
                                                     responsive to the first two issues in that,             seek to establish a mechanism that                    compounds from oil and natural gas
                                                     for attainment and related areas, we are                provides an effective and efficient                   production segment operations.
                                                     proposing a FIP to fulfill our CAA                      method for implementing a                               (b) Am I subject to §§ 49.101 through
                                                     responsibilities to protect air quality in              preconstruction permitting program for                49.105? You are subject to the
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                                                     Indian country in a manner that: (1)                    true minor sources in areas covered by                requirement if you meet the following
                                                     Does not create an uneven playing field                 the Federal Indian Country Minor NSR                  criteria:
                                                     with respect to federal requirements in                 rule that enables a streamlined process,                (1) Owners and operators of new true
                                                     adjacent states where oil and natural gas               which helps promote economic                          minor oil and natural gas sources or
                                                     sources face the same EPA                               development by minimizing delays in                   minor modifications at existing true
                                                     requirements; and (2) minimizes the                     new construction; and provides a                      minor oil and natural gas sources as
                                                     processing burden on oil and natural gas                process comparable to those programs                  determined pursuant to 40 CFR
                                                     sources. We will continue to provide                    operated outside of Indian county,                    49.153(a) that meet the criteria specified
                                                     outreach to tribal environmental                        which helps tribes compete for new oil                in paragraphs (b)(1)(i) through (b)(1)(v)


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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                        56573

                                                     of this section, shall comply with the                  include, but are not limited to: wells                that the applicant is currently carrying
                                                     requirements of §§ 49.104 and 49.105,                   and related casing head; tubing head                  out substantial governmental duties and
                                                     unless the owner or operator obtains a                  and ‘‘Christmas tree’’ piping; pumps;                 powers over a defined area;
                                                     site-specific permit as specified in                    compressors; heater treaters; separators;                (iii) A description of the laws of the
                                                     paragraph (b)(2) or (b)(3) of this                      storage vessels; pneumatic devices;                   tribe that provide adequate authority to
                                                     paragraph.                                              natural gas dehydrators; well drilling,               administer the Federal rules and
                                                        (i) The facility is an oil and natural               completion and workover processes and                 provisions for which delegation is
                                                     gas production facility as defined in                   portable non-self-propelled apparatuses               requested; and
                                                     § 49.102;                                               associated with those operations; and                    (iv) A demonstration that the tribal
                                                        (ii) The oil and natural gas production              low to medium pressure, smaller                       agency has the technical capability and
                                                     facility is located in Indian country as                diameter, gathering pipelines and                     adequate resources to administer the FIP
                                                     defined in § 49.102;                                    related components that collect and                   provisions for which the delegation is
                                                        (iii) The oil and natural gas                        transport the oil, natural gas and other              requested.
                                                     production facility is a new true minor                 materials and wastes from the wells or                   (c) How is the delegation of
                                                     source or minor modification of an                      well pads.                                            administrative authority accomplished?
                                                     existing true minor source as                              Oil and natural gas well means a                   (1) A Delegation of Authority Agreement
                                                     determined under § 49.153;                              single well that extracts subsurface                  will set forth the terms and conditions
                                                        (iv) The oil and natural gas                         reservoir fluids containing a mixture of              of the administrative delegation, will
                                                     production facility begins construction                 oil, natural gas, and water.                          specify the rule and provisions that the
                                                     or modification on or after October 3,                     Owner or operator means any person                 tribe shall be authorized to implement
                                                     2016; and                                               who owns, leases, operates, controls, or              on behalf of the EPA, and shall be
                                                        (v) The oil and natural gas production               supervises an oil and natural gas                     entered into by the Regional
                                                     facility is not located in a designated                 production facility.                                  Administrator and the tribe. The
                                                     nonattainment area.                                        Regional Administrator means the                   Agreement will become effective upon
                                                        (2) Owners and operators of facilities               Regional Administrator of an EPA                      the date that both the Regional
                                                     that meet the criteria specified in                     Region or an authorized representative                Administrator and the authorized
                                                     paragraphs (b)(1) of this section that                  of the Regional Administrator.                        representative of the tribe have signed
                                                     choose to obtain a site-specific permit as                                                                    the Agreement. Once the delegation
                                                     specified in 40 CFR 49.155 before                       § 49.103 Delegation of authority of                   becomes effective, the tribe will be
                                                     beginning construction are not required                 administration to Indian tribes.
                                                                                                                                                                   responsible, to the extent specified in
                                                     to comply with the requirements of                         (a) What is the purpose of this                    the Agreement, for assisting us with
                                                     §§ 49.101 to 49.105.                                    section? The purpose of this section is               administration of this FIP and shall act
                                                        (3) Owners and operators of facilities               to establish the process by which a                   as the Regional Administrator as that
                                                     that meet the criteria specified in                     Regional Administrator may delegate to                term is used in these regulations. Any
                                                     paragraph (b)(1) of this section that the               a federally-recognized tribe the                      Delegation of Authority Agreement will
                                                     Reviewing Authority requires to obtain                  authority to assist the EPA with                      clarify the circumstances in which the
                                                     a site-specific permit to ensure                        administration of this Federal                        term ‘‘Regional Administrator’’ found
                                                     protection of the NAAQS as specified in                 Implementation Plan (§§ 49.101–                       throughout this FIP is to refer only to
                                                     40 CFR 49.155 before beginning                          49.105). This section provides for                    the EPA Regional Administrator and
                                                     construction are not required to comply                 administrative delegation and does not                when it is intended instead to refer to
                                                     with §§ 49.101 to 49.105.                               affect the eligibility criteria under 40              the EPA Regional Administrator or a
                                                        (c) When must I comply with                          CFR 49.6 for treatment in the same                    federally-recognized tribe.
                                                     §§ 49.101 through 49.105? Compliance                    manner as a state or a tribe’s ability to                (2) A Delegation of Authority
                                                     with §§ 49.101 through 49.101 is                        obtain approval of a tribal                           Agreement may be modified, amended,
                                                     required on or after October 3, 2016.                   implementation plan under 40 CFR                      or revoked, in part or in whole, by the
                                                                                                             49.7.                                                 Regional Administrator after
                                                     § 49.102   Definitions.                                    (b) How does a tribe request                       consultation with a tribe.
                                                        As used in §§ 49.101 through 49.105,                 delegation? In order to be delegated                     (d) How will any Delegation of
                                                     all terms not defined herein shall have                 authority to assist us with                           Authority Agreement be publicized? The
                                                     the meaning given them in the Clean Air                 administration of this FIP, the                       Regional Administrator shall publish a
                                                     Act, in subpart A, and subpart OOOOa                    authorized representative of a federally-             notice in the Federal Register informing
                                                     of 40 CFR part 60, in the Prevention of                 recognized tribe must submit a request                the public of any Delegation of
                                                     Significant Deterioration regulations at                to a Regional                                         Authority Agreement with a tribe to
                                                     40 CFR 52.21, or in the Federal Minor                      Administrator that:                                assist us with administration of all or a
                                                     NSR Program in Indian Country at 40                        (1) Identifies the specific provisions             portion of this FIP and will identify
                                                     CFR 49.152. The following terms shall                   for which delegation is requested;                    such delegation in the Code of Federal
                                                     have the specific meanings given them:                     (2) Identifies the Indian Reservation              Regulations. The Regional
                                                        Oil and natural gas production                       or other areas of Indian country for                  Administrator shall also publish an
                                                     facility means a minor stationary source                which delegation is requested;                        announcement of the Delegation of
                                                     engaged in the extraction and                              (3) Includes a statement by the                    Authority Agreement in local
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                                                     production of oil and natural gas, as                   applicant’s legal counsel (or equivalent              newspapers.
                                                     well as the processing, transmission and                official) that includes the following
                                                     distribution of natural gas, including the              information:                                          § 49.104 Requirements regarding
                                                     wells and all related processes used in                    (i) A statement that the applicant is a            threatened or endangered species and
                                                     the extraction, production, recovery,                   tribe recognized by the Secretary of the              historic properties.
                                                     lifting, stabilization, and separation or               Interior;                                               (a) What are sources required to do to
                                                     treatment of oil and/or natural gas                        (ii) A descriptive statement that is               address threatened or endangered
                                                     (including condensate). Oil and natural                 consistent with the type of information               species and historic properties? An
                                                     gas production components may                           described in § 49.7(a)(2) demonstrating               owner/operator required to meet the


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                                                     56574                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     requirements contained in §§ 49.101                        (1) § 60.4200(a)(1)—Am I subject to                of the source is begun, except for the
                                                     through 49.105 to satisfy its obligation                this subpart? (applies to manufacturers);             following:
                                                     under § 49.151(c)(1)(iii)(B) shall meet                    (2) § 60.4200(b)—Not applicable to                    (1) § 60.112b(c)—Site-specific
                                                     paragraph (a)(1) or (2) of this section.                stationary spark ignition internal                    standard for Merck & Co., Inc.’s
                                                        (1) The owner/operator shall submit                  combustion engines being tested at an                 Stonewall Plant in Elkton, Virginia; and
                                                     to the EPA Regional Office (and to the                  engine test cell/stand;                                  (2) § 60.117b(a) and (b)—Delegation of
                                                     tribe where the source is located/                         (3) § 60.4200(c)—Am I subject to this              authority.
                                                     locating) documentation demonstrating                   subpart? (area sources and exemptions                    (e) For true minor sources that are
                                                     that prior Endangered Species Act (ESA)                 from Title V permits);                                subject to subpart OOOOa, Emission
                                                     and/or National Historic Preservation                      (4) § 60.4201—What emission                        Standards for New and Modified
                                                     Act (NHPA) compliance has been                          standards must I meet for non-                        Sources in the Oil and Natural Gas
                                                     completed by another federal agency in                  emergency engines if I am a stationary                Sector, for purposes of this FIP, sources
                                                     connection with the specific oil and                    compression ignition internal                         must comply with all of the provisions
                                                     natural gas activity operated under this                combustion engine manufacturer?;                      of the standard as written at the time
                                                     FIP. The owner/operator must be in                         (5) § 60.4202—What emission                        construction or reconstruction of the
                                                     compliance with all measures required                   standards must I meet for emergency                   source is begun, except for the
                                                     as part of that prior ESA and/or NHPA                   engines if I am a stationary compression              following:
                                                     process.                                                                                                         (1) § 60.5365a(f)(3)—Equipment
                                                                                                             ignition internal combustion engine
                                                        (2) The owner/operator shall submit                                                                        exemption at processing plant;
                                                                                                             manufacturer?;                                           (2) § 60.5365a(h)(4)—Existing sources
                                                     to the EPA Regional Office (and to the                     (6) § 60.4203—How long must my
                                                     tribe where the source is located/                                                                            constructed after August 23, 2011;
                                                                                                             engines meet the emission standards if                   (3) § 60.5370a(c)—Permit exemption;
                                                     locating) documentation demonstrating                   I am a manufacturer of stationary
                                                     that it has completed the screening                                                                              (4) § 60.5413a(a)(5)—Exemptions from
                                                                                                             compression ignition internal                         performance testing—hazardous waste
                                                     procedures specified for consideration
                                                                                                             combustion engines?;                                  incinerator;
                                                     of threatened and endangered species
                                                                                                                (7) § 60.4210—What are my                             (5) § 60.5420a(a)(2)(i)—Advance
                                                     and/or historic properties and receive
                                                                                                             compliance requirements if I am a                     notification requirements for well
                                                     written confirmation from the EPA
                                                                                                             stationary compression ignition internal              completions; and
                                                     stating that it has satisfactorily
                                                                                                             combustion engine manufacturer?; and                     (6) § 60.5420a(a)(2)(ii)—Advance
                                                     completed these procedures. The
                                                                                                                (8) § 60.4215—What requirements                    notification requirements of well
                                                     procedures document, ‘‘Procedures to
                                                                                                             must I meet for engines used in Guam,                 completions when subject to state
                                                     Address Threatened and Endangered
                                                                                                             American Samoa, or the Commonwealth                   regulation that requires advance
                                                     Species and Historic Properties for New
                                                                                                             of the Northern Mariana Islands?                      notification.
                                                     or Modified True Minor Oil and Natural
                                                                                                                (c) For true minor sources that are                   (f) For true minor sources that are
                                                     Gas Production Sources in Indian
                                                                                                             subject to 40 CFR part 60, subpart JJJJ—              subject to 40 CFR part 63, subpart HH—
                                                     Country Complying with the Oil and
                                                                                                             Standards of Performance for Stationary               National Emission Standards for
                                                     Natural Gas Minor Source Federal
                                                                                                             Spark Ignition Internal Combustion                    Hazardous Air Pollutants from Oil and
                                                     Implementation Plan,’’ August 13, 2015,
                                                                                                             Engines, for purposes of this FIP,                    Natural Gas Production Facilities, for
                                                     Version 1.0, is incorporated by reference
                                                                                                             sources must comply with all of the                   purposes of this FIP, sources must
                                                     into this section with the approval of
                                                                                                             applicable provisions of the standard as              comply with all of the applicable
                                                     the Director of the Federal Register
                                                                                                             written at the time construction or                   provisions of the standard as written at
                                                     under 5 U.S.C. 552(a) and 1 CFR part 51.
                                                                                                             reconstruction of the source is begun,                the time construction or reconstruction
                                                     To view or download the document, go
                                                                                                             except for the following:                             of the source is begun, except for the
                                                     to http://www.epa.gov/air/tribal/pdfs/
                                                                                                                (1) § 60.4230(b)—Not applicable to                 following:
                                                     procedures_for_esa_and_nhpa_for_ong_                                                                             (1) § 63.760(a)(2)—Facilities that
                                                     sources_8-13-15.pdf.                                    stationary spark ignition internal
                                                                                                             combustion engines being tested at an                 process, upgrade or store hydrocarbon
                                                     § 49.105   Requirements.                                engine test cell/stand;                               liquids;
                                                       (a) For true minor sources that are                      (2) § 60.4230(c)—Exemption for                        (2) § 63.760(b)(1)(ii)—Each storage
                                                     subject to 40 CFR part 63, subpart                      obtaining a Title V permit if owner or                vessel with the potential for flash
                                                     DDDDD (National Emission Standards                      operator of an area source subject to this            emissions;
                                                                                                             part;                                                    (3) § 63.760(b)(1)(iii)—Equipment
                                                     for Hazardous Air Pollutants for Major
                                                                                                                (3) § 60.4231 and § 60.4232—Emission               located at natural gas processing plants;
                                                     Sources: Industrial, Commercial, and
                                                                                                             standards for manufacturers;                             (4) § 63.760(g)—Recordkeeping for
                                                     Institutional Boilers and Process
                                                                                                                (4) § 60.4238 through § 60.4242—                   major sources that overlap with other
                                                     Heaters), for purposes of this FIP,
                                                                                                             Compliance Requirements for                           regulations for equipment leaks;
                                                     sources must comply with all of the                                                                              (5) § 63.764(c)(2)—(3)—Requirements
                                                     applicable provisions of the standard as                Manufacturers; and
                                                                                                                                                                   for compliance with standards for
                                                     written at the time construction or                        (5) § 60.4247—Mobile source
                                                                                                                                                                   storage vessels and equipment at natural
                                                     reconstruction of the source is begun.                  provisions that apply to manufacturers
                                                                                                                                                                   gas processing plants, respectively;
                                                       (b) For true minor sources that are                   of stationary spark ignition internal                    (6) § 63.766 Storage vessel standards;
                                                     subject to 40 CFR part 60, subpart IIII—                combustion engines or equipment                       and
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                                                     Standards of Performance for Stationary                 containing such engines.                                 (7) § 63.769 Equipment leak
                                                     Compression Ignition Internal                              (d) For true minor sources that are                standards.
                                                     Combustion Engines, for purposes of                     subject to 40 CFR part 60, subpart Kb—                ■ 3. Section 49.151 is amended by
                                                     this FIP, sources must comply with all                  Standards of Performance for Volatile                 revising paragraphs (b)(1), (c)(1)(iii)(A)
                                                     of the applicable provisions of the                     Organic Liquid Storage Vessels, for                   and (B), and (d)(1), (2) and (4) to read
                                                     standard as written at the time                         purposes of this FIP, sources must                    as follows:
                                                     construction or reconstruction of the                   comply with all of the applicable
                                                     source is begun, except for the                         provisions of the standard as written at              § 49.151     Program overview.
                                                     following:                                              the time construction or reconstruction               *        *    *     *    *


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                                                                           Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules                                          56575

                                                        (b) * * *                                            to §§ 49.154 and 49.155 before                           (a)* * *
                                                        (1) It satisfies the requirements of                 beginning construction. All proposed                     (1) * * *
                                                     section110(a)(2)(C) of the Act by                       new sources or modifications are also                    (i) * * *
                                                     establishing a preconstruction                          subject to the registration requirements                 (B) Step 2. Determine whether your
                                                     permitting program for all new and                      of § 49.160, except for sources that are              proposed source’s potential to emit for
                                                     modified minor sources (minor sources)                  subject to § 49.138.                                  the pollutant that you are evaluating,
                                                     and minor modifications at major                        *     *     *     *      *                            (including fugitive emissions, to the
                                                     sources located in Indian country and                     (d) * * *                                           extent they are quantifiable, only if the
                                                     by establishing a Federal                                 (1) If you begin construction of a new              source belongs to one of the source
                                                     Implementation Plan (§§ 49.101 to                       source or modification that is subject to             categories listed pursuant to section
                                                     49.105) for oil and natural gas                         this program after the applicable date                302(j) of the Act), is equal to or greater
                                                     production true minor sources located                   specified in paragraph (c) of this section            than the corresponding minor NSR
                                                     in Indian country.                                      without applying for and receiving a                  threshold in Table 1 of this section. If
                                                     *       *     *      *    *                             permit pursuant to this program or                    it is, you are subject to the
                                                        (c) * * *                                            complying with the Federal                            preconstruction requirements of this
                                                        (1) * * *                                            Implementation Plan at §§ 49.101 to                   program for that pollutant, except that
                                                        (iii) * * *                                          49.105 for oil and natural gas                        oil and natural gas production sources
                                                        (A) If you own or operate an existing                production, you will be subject to                    shall instead comply with the
                                                     true minor source in Indian country (as                 appropriate enforcement action.                       requirements of the Federal
                                                     defined in § 49.152(d)), you must                         (2) If you do not construct or operate              Implementation Plan at §§ 49.101 to
                                                     register your source with the Reviewing                 your source or modification in                        49.105, unless you opt-out of the
                                                     Authority in your area by March 1,                      accordance with the terms of your                     Federal Implementation Plan pursuant
                                                     2013. If your true minor source is not an               minor NSR permit or the Federal                       to § 49.101(b)(2) in which case you are
                                                     oil and natural gas source, as defined in               Implementation Plan for oil and natural               subject to the preconstruction
                                                     § 49.102, and you commence                              gas production at §§ 49.101 to 49.105,                requirements of this program for that
                                                     construction after August 30, 2011, and                 you will be subject to appropriate                    pollutant or are required by the EPA to
                                                     before September 2, 2014, you must also                 enforcement action.                                   obtain a minor source permit pursuant
                                                     register your source with the Reviewing                   (3) * * *                                           to § 49.101(b)(3). If not, go to Step 3
                                                     Authority in your area within 90 days                     (4) Issuance of a permit or compliance              (paragraph (a)(1)(ii)(C) of this section).
                                                                                                             with the Federal Implementation Plan                     (ii) * * *
                                                     after the source begins operation. If your                                                                       (B) Step 2. Determine whether the
                                                     true minor source is an oil and natural                 for oil and natural gas production at
                                                                                                                                                                   increase in allowable emissions from
                                                     gas source, as defined in § 49.102, and                 §§ 49.101 to 49.105 does not relieve you
                                                                                                                                                                   the proposed modification (calculated
                                                     you commence construction after                         of the responsibility to comply fully
                                                                                                                                                                   using the procedures of paragraph (b) of
                                                     August 30, 2011, and before October 3,                  with applicable provisions of any EPA-
                                                                                                                                                                   this section) would be equal to or
                                                     2016, you must register your source                     approved implementation plan or
                                                                                                                                                                   greater than the minor NSR threshold in
                                                     with the Reviewing Authority in your                    Federal Implementation Plan or any
                                                                                                                                                                   Table 1 of this section for the pollutant
                                                     area within 90 days after the source                    other requirements under applicable
                                                                                                                                                                   that you are evaluating. If it is, you are
                                                     begins operation. You are exempt from                   law.
                                                                                                                                                                   subject to the preconstruction
                                                     these registration requirements if your                 *     *     *     *      *                            requirements of this program for that
                                                     true minor source is subject to § 49.138.               ■ 4. Section 49.152 is amended by                     pollutant, except oil and natural gas
                                                        (B) If your true minor source is not an              revising the introductory text of                     production sources shall instead comply
                                                     oil and natural gas source, as defined in               paragraph (d) and adding paragraph (4)                with the requirements of the Federal
                                                     § 49.102, and you wish to begin                         to the definition of ‘‘Indian country’’ to            Implementation Plan at §§ 49.101 to
                                                     construction of a new true minor source                 read as follows:                                      49.105, unless you opt-out of the
                                                     or a minor modification at an existing                                                                        Federal Implementation Plan pursuant
                                                     true minor source on or after September                 § 49.152    Definitions.
                                                                                                                                                                   to § 49.101(b)(2) in which case you are
                                                     2, 2014, you must first obtain a permit                 *      *     *     *     *
                                                                                                                                                                   subject to the preconstruction
                                                     pursuant to §§ 49.154 and 49.155 (or a                     (d) * * *
                                                                                                                Indian country, as defined in 18                   requirements of this program for that
                                                     general permit/permit by rule pursuant                                                                        pollutant or are required by the EPA to
                                                     to § 49.156, if applicable). If your true               U.S.C. 1151, means the following as
                                                                                                             applied to this program:                              obtain a minor source permit pursuant
                                                     minor source is an oil and natural gas                                                                        to § 49.101(b)(3). If not, go to Step 3
                                                     source, as defined in § 49.102, and you                 *      *     *     *     *                            (paragraph (a)(1)(ii)(C) of this section).
                                                     wish to begin construction of a new true                   (4) For purposes of this rule,
                                                     minor source or a minor modification at                 references to Indian country include all              *       *    *    *      *
                                                                                                                                                                   ■ 6. Section 49.160 is amended by
                                                     an existing true minor source on or after               Indian reservation lands where no EPA-
                                                                                                                                                                   revising paragraphs (c)(1)(ii) and (iii),
                                                     October 3, 2016, you must either                        approved program is in place and all
                                                                                                                                                                   adding paragraph (c)(1)(iv) and revising
                                                     comply with the Federal                                 other areas of Indian country where no
                                                                                                                                                                   paragraph (c)(4) to read as follows:
                                                     Implementation Plan for oil and natural                 EPA-approved program is in place and
                                                     gas production sources located in Indian                over which an Indian tribe, or the EPA,               § 49.160 Registration program for minor
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                                                     country (§§ 49.101 to 49.105) from the                  has demonstrated that a tribe has                     sources in Indian country.
                                                     day you begin construction or opt out of                jurisdiction.                                         *      *     *     *   *
                                                     those requirements pursuant to                          *      *     *     *     *                              (c) * * *
                                                     § 49.101(b)(2) and obtain a minor source                ■ 5. Section 49.153 is amended by                       (1) * * *
                                                     permit pursuant to §§ 49.154 and 49.155                 revising paragraphs (a)(1)(i)(B) and                    (ii) If your true minor source is not an
                                                     before beginning construction.                          (a)(1)(ii)(B) to read as follows:                     oil and natural gas source, as defined in
                                                     Alternatively you may be required by                                                                          § 49.102, and you commence
                                                     the EPA, pursuant to § 49.101(b)(3), to                 § 49.153    Applicability.                            construction after August 30, 2011, and
                                                     obtain a minor source permit pursuant                   *      *      *      *       *                        before September 2, 2014, you must


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                                                     56576                 Federal Register / Vol. 80, No. 181 / Friday, September 18, 2015 / Proposed Rules

                                                     register your source with the Reviewing                 EPA, ‘‘Registration for New True Minor                to obtain any required permit, including
                                                     Authority within 90 days after the                      Oil and Natural Gas Sources and Minor                 a preconstruction permit, or to comply
                                                     source begins operation. If your new                    Modifications at Existing True Minor                  with the Federal Implementation Plan
                                                     true minor source or minor modification                 Oil and Natural Gas Sources’’ (available              for oil and natural gas production if
                                                     of an existing true minor source is an oil              at: http://www.epa.gov/air/tribal/                    your source or any physical or
                                                     and natural gas source, as defined in                   tribalnsr.html or from EPA Regional                   operational change at your source
                                                     § 49.102, and you commence                              Offices), and your permit application or              would be subject to any minor or major
                                                     construction after August 30, 2011, and                 registration for oil and natural gas                  NSR rule.
                                                     before October 3, 2016, you must                        production sources will be used to                    *     *     *      *    *
                                                     register your source with the Reviewing                 fulfill the registration requirements
                                                                                                                                                                   ■ 7. Section 49.167 is amended by
                                                     Authority within 90 days after the                      described in § 49.160(c)(2).
                                                                                                                (iv) Minor sources complying with                  revising the introductory text of
                                                     source begins operation.                                                                                      paragraph (d) and adding paragraph
                                                       (iii) If your true minor source is not                §§ 49.101 to 49.105 for oil and natural
                                                                                                             gas production, as defined in § 49.102,               (d)(4) to read as follows:
                                                     an oil and natural gas source, as defined
                                                     in § 49.102, and you commence                           must submit a registration form 30 days               § 49.167   Definitions.
                                                     construction or modification of your                    prior to beginning construction that                  *     *     *    *     *
                                                     source on or after September 2, 2014,                   contains the information in
                                                                                                                                                                     (d) Indian country, as defined in 18
                                                     and your source is subject to this rule,                § 49.160(c)(2). The form titled
                                                                                                                                                                   U.S.C. 1151, means the following as
                                                     you must report your source’s actual                    ‘‘Registration for New True Minor Oil
                                                                                                                                                                   applied to this program:
                                                     emissions (if available) as part of your                and Natural Gas Sources and Minor
                                                     permit application and your permit                      Modifications at Existing True Minor                  *     *     *    *     *
                                                     application information will be used to                 Oil and Natural Gas Sources’’ is                        (4) For purposes of this rule,
                                                     fulfill the registration requirements                   available at: http://www.epa.gov/air/                 references to Indian country include all
                                                     described in § 49.160(c)(2). If your true               tribal/tribalnsr.html or from EPA                     Indian reservation lands where no EPA-
                                                     minor source is an oil and natural gas                  Regional Offices. This form is submitted              approved program is in place and all
                                                     source, as defined in § 49.102, and you                 instead of the application form required              other areas of Indian country where no
                                                     commence construction or modification                   in § 49.160(c)(1)(iii).                               EPA-approved program is in place and
                                                     of your source on or after October 3,                   *      *     *     *     *                            over which an Indian tribe, or the EPA,
                                                     2016, you must report your source’s                        (4) Duty to obtain a permit or comply              has demonstrated that a tribe has
                                                     actual emissions (if available) as part of              with the Federal Implementation Plan                  jurisdiction.
                                                     your permit application or registration                 for oil and natural gas production                    *     *     *    *     *
                                                     of oil and natural gas production                       sources. Submitting a registration form               [FR Doc. 2015–21025 Filed 9–17–15; 8:45 am]
                                                     sources using a form provided by the                    does not relieve you of the requirement               BILLING CODE 6560–50–P
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Document Created: 2015-12-15 09:28:13
Document Modified: 2015-12-15 09:28:13
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionProposed Rules
ActionProposed rule.
DatesComments. Comments must be received on or before November 17, 2015.
ContactMr. 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
FR Citation80 FR 56553 
RIN Number2060-AS27
CFR AssociatedEnvironmental Protection; Administrative Practices and Procedures; Air Pollution Control; Incorporation by Reference; Indians; Indians-Law; Indians-Tribal Government; Intergovernmental Relations and Reporting and Recordkeeping Requirements

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