83_FR_10676 83 FR 10628 - Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Amendments

83 FR 10628 - Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources; Amendments

ENVIRONMENTAL PROTECTION AGENCY

Federal Register Volume 83, Issue 48 (March 12, 2018)

Page Range10628-10638
FR Document2018-04431

This action finalizes amendments of certain requirements that are contained within the final rule titled ``Oil and Natural Gas Sector: Emission Standards for New, Reconstructed, and Modified Sources,'' published in the Federal Register on June 3, 2016 (2016 Rule). The Environmental Protection Agency (EPA) is finalizing amendments of two narrow provisions of the requirements for the collection of fugitive emission components at well sites and compressor stations: Removes the requirement for completion of delayed repair during unscheduled or emergency vent blowdowns, and provides separate monitoring requirements for well sites located on the Alaskan North Slope.

Federal Register, Volume 83 Issue 48 (Monday, March 12, 2018)
[Federal Register Volume 83, Number 48 (Monday, March 12, 2018)]
[Rules and Regulations]
[Pages 10628-10638]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-04431]


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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 60

[EPA-HQ-OAR-2010-0505; FRL-9975-10-OAR]
RIN 2060-AT59


Oil and Natural Gas Sector: Emission Standards for New, 
Reconstructed, and Modified Sources; Amendments

AGENCY: Environmental Protection Agency (EPA).

ACTION: Final rule.

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SUMMARY: This action finalizes amendments of certain requirements that 
are contained within the final rule titled ``Oil and Natural Gas 
Sector: Emission Standards for New, Reconstructed, and Modified 
Sources,'' published in the Federal Register on June 3, 2016 (2016 
Rule). The Environmental Protection Agency (EPA) is finalizing 
amendments of two narrow provisions of the requirements for the 
collection of fugitive emission components at well sites and compressor 
stations: Removes the requirement for completion of delayed repair 
during unscheduled or emergency vent blowdowns, and provides separate 
monitoring requirements for well sites located on the Alaskan North 
Slope.

DATES: This final rule is effective on March 12, 2018.

ADDRESSES: The EPA has established a docket for this action under 
Docket ID No. EPA-HQ-OAR-2010-0505. All documents in the docket are 
listed on the https://www.regulations.gov website. Although listed in 
the index, some information is not publically available, e.g., 
confidential business information or other information whose disclosure 
is restricted by statute. Certain other material, such as copyrighted 
material, is not placed on the internet and will be publicly available 
only in hard copy form. Publicly available docket materials are 
available electronically through https://www.regulations.gov.

FOR FURTHER INFORMATION CONTACT: Mrs. Karen Marsh, Sector Policies and 
Programs Division (E143-05), Office of Air Quality Planning and 
Standards, Environmental Protection Agency, Research Triangle Park, 
North Carolina 27711; telephone number: (919) 541-1065; email address: 
[email protected].

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

I. General Information
    A. Does this action apply to me?
    B. Where can I get a copy of this document and other related 
information?
    C. Judicial Review
II. Background
III. Legal Authority
IV. Summary of Final Action
    A. Delayed Repairs
    B. Alaskan North Slope
V. Summary of Significant Comments and Responses
    A. The EPA's Legal Authority
    B. Delayed Repairs
    C. Alaskan North Slope
VI. Impacts of the Final Amendments
VII. Statutory and Executive Order Reviews
    A. Executive Order 12866: Regulatory Planning and Review and 
Executive

[[Page 10629]]

Order 13563: Improving Regulation and Regulatory Review
    B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs
    C. Paperwork Reduction Act (PRA)
    D. Regulatory Flexibility Act (RFA)
    E. Unfunded Mandates Reform Act (UMRA)
    F. Executive Order 13132: Federalism
    G. Executive Order 13175: Consultation and Coordination With 
Indian Tribal Governments
    H. Executive Order 13045: Protection of Children From 
Environmental Health Risks and Safety Risks
    I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use
    J. National Technology Transfer and Advancement Act (NTTAA)
    K. Executive Order 12898: Federal Actions To Address 
Environmental Justice in Minority Populations and Low-Income 
Populations
    L. Congressional Review Act (CRA)

I. General Information

A. Does this action apply to me?

    Categories and entities potentially affected by this action 
include:

                          Table 1--Industrial Source Categories Affected by This Action
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          Category            NAICS code \1\                    Examples of regulated entities
----------------------------------------------------------------------------------------------------------------
Industry....................          211111  Crude Petroleum and Natural Gas Extraction.
                                      211112  Natural Gas Liquid Extraction.
                                      221210  Natural Gas Distribution.
                                      486110  Pipeline Distribution of Crude Oil.
                                      486210  Pipeline Transportation of Natural Gas.
Federal government..........                  Not affected.
State/local/tribal                            Not affected.
 government.
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\1\ North American Industry Classification System.

    This table is not intended to be exhaustive, but rather provides a 
guide for readers regarding entities likely to be regulated by this 
action. This table lists the types of entities that the EPA is now 
aware could potentially be affected by this action. Other types of 
entities not listed in the table could also be regulated. To determine 
whether your entity is regulated by this action, you should carefully 
examine the applicability criteria found in the final rule. If you have 
questions regarding the applicability of this action to a particular 
entity, consult the person listed in the FOR FURTHER INFORMATION 
CONTACT section of this preamble, your delegated authority, or your EPA 
Regional representative listed in 40 CFR 60.4 (General Provisions).

B. 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 
the final action is available on the internet. Following signature by 
the Administrator, the EPA will post a copy of this final action at 
https://www.epa.gov/controlling-air-pollution-oil-and-natural-gas-industry. Additional information is also available at the same website.

C. Judicial Review

    Under section 307(b)(1) of the Clean Air Act (CAA), judicial review 
of this final rule is available only by filing a petition for review in 
the United States Court of Appeals for the District of Columbia Circuit 
by May 11, 2018. Moreover, under section 307(b)(2) of the CAA, the 
requirements established by this final rule may not be challenged 
separately in any civil or criminal proceedings brought by the EPA to 
enforce these requirements. Section 307(d)(7)(B) of the CAA further 
provides that ``[o]nly an objection to a rule or procedure which was 
raised with reasonable specificity during the period for public comment 
(including any public hearing) may be raised during judicial review.'' 
This section also provides a mechanism for the EPA to convene a 
proceeding for reconsideration, ``[i]f the person raising an objection 
can demonstrate to the EPA that it was impracticable to raise such 
objection within [the period for public comment] or if the grounds for 
such objection arose after the period for public comment, (but within 
the time specified for judicial review) and if such objection is of 
central relevance to the outcome of the rule.'' Any person seeking to 
make such a demonstration to us should submit a Petition for 
Reconsideration to the Office of the Administrator, U.S. EPA, Room 
3000, EPA WJC West Building, 1200 Pennsylvania Ave. NW, Washington, DC 
20460, with a copy to both the person(s) listed in the preceding FOR 
FURTHER INFORMATION CONTACT section, and the Associate General Counsel 
for the Air and Radiation Law Office, Office of General Counsel (Mail 
Code 2344A), U.S. EPA, 1200 Pennsylvania Ave. NW, Washington, DC 20460.

II. Background

    On June 3, 2016, the EPA published a final rule titled ``Oil and 
Natural Gas Sector: Emission Standards for New, Reconstructed, and 
Modified Sources; Final Rule,'' at 81 FR 35824 (``2016 Rule''). The 
2016 Rule established new source performance standards (NSPS) for 
greenhouse gas and volatile organic compound (VOC) emissions from the 
oil and natural gas sector. This rule addressed, among other things, 
fugitive emissions at well sites and compressor stations (``fugitive 
emissions requirements'') and emissions from pneumatic pumps. In 
addition, for a number of affected facilities (i.e., centrifugal 
compressors, reciprocating compressors, pneumatic pumps, and storage 
vessels), the rule required certification by a professional engineer of 
the closed vent system design and capacity, as well as any technical 
infeasibility determination relative to controlling pneumatic pumps at 
well sites. For further information on the 2016 Rule, see 81 FR 35824 
(June 3, 2016) and associated Docket ID No. EPA-HQ-OAR-2010-0505. A 
number of states and industry associations sought judicial review of 
the rule, and the litigation is currently being held in abeyance. In 
addition, the EPA received a number of petitions for administrative 
reconsideration of the rule and on April 18, 2017, convened a 
proceeding to reconsider certain aspects of the rule, including those 
related to the above three requirements.
    On June 16, 2017, the EPA proposed to stay the fugitive emissions 
requirements, the well site pneumatic pump requirements, and the 
requirements for certification of closed vent systems by a professional 
engineer for 2 years. The EPA proposed the stay of these requirements 
in order to provide the EPA with sufficient time to propose, take 
public comment on, and issue a final action on the issues under

[[Page 10630]]

reconsideration. See 82 FR 27645 (June 16, 2017). On November 8, 2017, 
the EPA issued a notice of data availability (NODA), in which the EPA 
offered additional information in further support of the proposed stay 
and solicited comments on a suggestion from stakeholders to allow 
additional time to phase in these requirements as opposed to a stay. 
See 82 FR 51788 (November 8, 2017). Additionally, the NODA solicited 
comment and information on several implementation challenges raised by 
stakeholders. In particular, the EPA broadly solicited comments on 
issues associated with the requirement to complete repairs on 
components on a delay of repair (hereinafter referred to as ``delayed 
repair'' for short in this notice) \1\ during emergency or unscheduled 
shutdowns or vent blowdowns and suggestions for addressing the issues. 
See 82 FR 51793.
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    \1\ See 40 CFR 60.5397a(h)(2) for delay of repair requirements.
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    EPA received a broad range of comments and information in response 
to the proposed stay and the NODA. Relevant to this action is 
information regarding two specific provisions of the fugitive emissions 
requirements that we have concluded present immediate compliance 
concerns: (1) The requirement that delayed repairs must be completed 
during unscheduled or emergency vent blowdowns that occur within the 2-
year repair timeframe and prior to other scheduled events, and (2) the 
monitoring survey requirements for well sites located on the Alaskan 
North Slope. See section IV of this preamble for a discussion of these 
concerns and these final amendments. The Agency is still examining 
comments related to all other issues raised in the proposal and NODA, 
including other issues related to delayed repair and the Alaskan North 
Slope, and is not taking final action with respect to these other 
matters in this final action.

III. Legal Authority

    The legal authority for this final action, which amends two narrow 
provisions of the fugitive emissions requirements in the 2016 Rule, is 
the same as that for the promulgation of the 2016 Rule. The EPA 
promulgated the 2016 Rule pursuant to section 111(b)(1)(B) of the CAA, 
which requires the EPA to issue ``standards of performance'' for new 
sources in the list of categories of stationary sources that cause or 
contribute significantly to air pollution which may reasonably be 
anticipated to endanger public health or welfare. See 81 FR 35828. CAA 
section 111(a)(1) defines ``a standard of performance'' as ``a standard 
for emissions of air pollutants which reflects 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 nonair quality health and environmental impact 
and energy requirement) the Administrator determines has been 
adequately demonstrated.'' This definition makes clear that the 
standard of performance must be based on controls that constitute ``the 
best system of emission reduction . . . adequately demonstrated.'' The 
standard that the EPA develops, based on the best system of emission 
reduction (BSER), is commonly a numerical emissions limit, expressed as 
a performance level (e.g., a rate-based standard). However, CAA section 
111(h)(1) authorizes the Administrator to promulgate a work practice 
standard or other requirements, which reflects the best technological 
system of continuous emission reduction, if it is not feasible to 
prescribe or enforce an emissions standard. The work practice standards 
for fugitive emissions from well sites and compressor stations were 
promulgated pursuant to CAA section 111(h)(1)(A). See 81 FR 35829.
    Agencies have inherent authority to reconsider past decisions and 
to revise, replace, or repeal a decision to the extent permitted by law 
and supported by a reasoned explanation. FCC v. Fox Television 
Stations, Inc., 556 U.S. 502, 515 (2009); Motor Vehicle Mfrs. Ass'n v. 
State Farm Mutual Auto. Ins. Co., 463 U.S. 29, 42 (1983) (``State 
Farm''). ``The power to decide in the first instance carries with it 
the power to reconsider.'' Trujillo v. Gen. Elec. Co., 621 F.2d 1084, 
1086 (10th Cir. 1980); see also, United Gas Improvement Co. v. Callery 
Properties, Inc., 382 U.S. 223, 229 (1965); Mazaleski v. Treusdell, 562 
F.2d 701, 720 (D.C. Cir. 1977). Accordingly, in this final rule, the 
EPA is using the same statutory authority in promulgating the 2016 Rule 
to amend two provisions of the fugitive emissions requirements in the 
2016 Rule. As explained below in section IV, with these two narrowly 
tailored amendments, the fugitive emissions requirements better reflect 
BSER for reducing fugitive emissions at well sites and compressor 
stations.

IV. Summary of Final Action

    The EPA is finalizing amendments to two fugitive emissions 
requirements: (1) The requirements for delayed repairs, and (2) the 
monitoring survey requirements for well sites located on the Alaskan 
North Slope.

A. Delayed Repairs

    In this action, the EPA is finalizing amendments to the 
requirements related to delayed repairs. Specifically, the final rule 
removes the requirement for completion of delayed repairs during 
unscheduled or emergency vent blowdowns. Owners and operators are still 
required to complete repairs during the next compressor station 
shutdown, well shutdown, well shut-in, after a planned vent blowdown, 
or within 2 years, whichever is earlier.
    The 2016 Rule requires replacement or repair of a component within 
30 days of detection of fugitive emissions, but allows delaying the 
replacement/repair under certain situations specified in the rule. 
Specifically, the rule requires that the delayed repair ``must be 
completed during the next compressor station shutdown, well shutdown, 
well shut-in, after an unscheduled, planned or emergency vent blowdown 
or within 2 years, whichever is earlier.'' See 40 CFR 60.5397a(h)(2). 
While the only unscheduled and emergency event specified in this 
regulation is with regard to vent blowdown, the EPA stated in the 
preamble to the 2016 Rule that ``if an unscheduled or emergency vent 
blowdown, compressor station shutdown, well shutdown, or well shut-in 
occurs during the delay of repair period, the fugitive emissions 
components would need to be fixed at that time.'' See 81 FR 35858, June 
3, 2016. This preamble language implied that delayed repairs were 
required if any of these events occurred, regardless of whether it was 
planned. As mentioned previously, the EPA discussed in the NODA 
stakeholder feedback that requiring repair or replacement of fugitive 
emissions components during unscheduled or emergency vent blowdowns 
could result in natural gas supply disruptions, safety concerns, and 
increased emissions. In response, the EPA solicited comments on 
shutdown, shut-in, and blowdown scenarios that could result in 
technical, safety, and/or environmental issues, as well as suggestions 
for addressing them. See 82 FR 51793, November 8, 2017. The EPA learned 
from the comments, through additional specific examples, that the 
requirement to complete delayed repairs during an unscheduled or 
emergency vent blowdown could lead to a number of unintended negative 
consequences. In particular, emissions from requiring delayed repairs 
during an unscheduled or emergency shutdown, shut-in, or vent blowdown 
could result in greater emissions than the leaks that are to be

[[Page 10631]]

repaired; as such, it could not possibly reflect BSER for addressing 
fugitive emissions at well sites and compressor stations.
    One commenter described configurations at well sites that can lead 
to an automatic emergency well shut-in and where the rule, if applied 
as suggested in the preamble, could have unintended consequences.\2\ 
Where well sites have a compressor that collects flash gas from a low 
pressure separator or a vapor recovery unit that collects flash gas 
from storage vessels, there are certain safety measures put in place in 
the event these compressors unexpectedly go offline. Depending on the 
remoteness of the well site, one safety measure available is to 
automatically shut in the well to prevent the release of gas from 
pressure relief valves. In these, and other similar emergency shut-in 
situations, the equipment is not depressurized so the well can be 
brought back into production as soon as possible. However, by requiring 
completion of the delayed repair during such shut-in events, equipment 
at this well site that have components placed on delayed repair would 
have to be depressurized and blown down, resulting in emissions that 
would not have occurred except for the delayed repair requirement and 
could be higher than the emissions from continuing to delay repair.
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    \2\ See Docket ID No. EPA-HQ-OAR-2010-0505-12446.
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    Similar scenarios were provided by the commenters for compressor 
stations, where changes in horsepower demand, upsets of the compressor 
unit or the station, lightning strikes, power loss, floods, unplanned 
maintenance or repairs of a pipeline, fire, third-party damage, or 
instrumentation outages can result in unplanned or emergency blowdowns 
of certain equipment at a compressor station.\3\ When the compressor 
station is not operating, gas will continue to enter gathering lines 
until upstream wells are routed to other compressor stations. This gas 
must be vented or flared to prevent overpressurization of the gathering 
lines. Repairs can require skilled labor crews and custom fabricated 
parts, both of which must be scheduled and ordered in advance.\4\ Given 
the unpredictability of these unplanned or emergency events, gas may 
need to be vented or flared for an extended period of time while the 
owner or operator organized completion of delayed repairs and before 
the compressor station is brought back online, thereby creating 
emissions that would not have occurred except for the delayed repair 
requirement and could be higher than the emissions from continuing to 
delay repair. For these reasons, not requiring repair during unplanned 
or emergency vent blowdowns would limit excess emissions from avoidable 
blowdowns.
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    \3\ See Docket ID No. EPA-HQ-OAR-2010-0505-12447.
    \4\ See Docket ID Nos. EPA-HQ-OAR-2010-0505-12421, EPA-HQ-OAR-
2010-0505-12424, EPA-HQ-OAR-2010-0505-12430, EPA-HQ-OAR-2010-0505-
12436, EPA-HQ-OAR-2010-0505-12446, EPA-HQ-OAR-2010-0505-12447, and 
EPA-HQ-OAR-2010-0505-12454.
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    In addition to emissions from avoidable blowdowns described above, 
several commenters raised concerns about extended gas service 
disruption.\5\ For example, many natural gas transmission pipelines are 
operating year-round at or near capacity, with little redundancy in the 
supply chain. Further, some regions do not have access to alternate gas 
supplies. As we have learned, the requirement for delayed repairs 
during unplanned or emergency blowdowns can result in the unintended 
consequence of forcing owners or operators to choose between meeting 
contractual commitments governed by the Federal Energy Regulatory 
Commission or complying with leak repair requirements.\6\ The 
disruption to service can also result in loss of home heating during 
the winter and the loss of natural gas supply to power plants during 
periods when electricity demands are higher. This is clearly an 
unintended and undesirable result and should, therefore, be avoided, as 
demonstrated by the leak repair requirement by the California Air 
Resource Board (CARB).\7\ We note that CARB's leak repair requirement, 
which CARB commented as being more stringent than the EPA's leak repair 
requirement in the 2016 Rule, does not require repair, if it would 
disrupt service.
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    \5\ See Docket ID Nos. EPA-HQ-OAR-2010-0505-12430, EPA-HQ-OAR-
2010-0505-12436, EPA-HQ-OAR-2010-0505-12446, EPA-HQ-OAR-2010-0505-
12447, and EPA-HQ-OAR-2010-0505-12454.
    \6\ See Docket ID No. EPA-HQ-OAR-2010-0505-12447.
    \7\ Greenhouse Gas Emission Standards for Crude Oil and Natural 
Gas Facilities, section 95669, California Code of Regulations, Title 
17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4, 
Subarticle 13. Effective date October 1, 2017. This regulation has a 
phase-in period from January 1, 2018 to December 31, 2019, where 
fugitive emissions are defined as a leak of 10,000 parts per million 
(ppm) or greater using EPA Method 21 on a quarterly monitoring 
frequency. After January 1, 2020, that leak definition decreases to 
1,000 ppm on the same monitoring frequency.
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    After examining the comments and supporting data on this issue, the 
EPA agrees with the commenters that delayed repairs should not be 
required during an unscheduled or emergency shutdown, shut-in, or vent 
blowdown due to the potential unintended consequences of further 
increasing the emissions, in addition to disruption of services. The 
EPA further concludes that this issue must be addressed immediately to 
avoid these unintended consequences. Because the proposed 2-year stay 
or proposed phase-in would offer only a temporary relief from this 
requirement, which the EPA has already concluded to be unacceptable, 
the EPA is not finalizing a stay or phase-in of this requirement. 
Instead, the EPA is taking final action to amend the delayed repair 
requirement to remove the terms ``unplanned'' and ``emergency'' from 
the list of events that would require completion of delayed repairs.

B. Alaskan North Slope

    We are finalizing amendments to the fugitive emission monitoring 
requirements for well sites located on the Alaskan North Slope.\8\ New 
well sites that startup production between September and March must 
conduct initial monitoring within 6 months of the startup of production 
\9\ or by June 30, whichever is later. Well sites that startup 
production between April and August must continue to meet the 60-day 
initial monitoring requirement in the 2016 Rule. Similarly, well sites 
that are modified between September and March must conduct initial 
monitoring within 6 months of the first day of production for each 
collection of fugitive emissions components or by June 30, whichever is 
later. Further, all well sites located on the Alaskan North Slope that 
are subject to the fugitive emissions requirements must conduct annual 
monitoring, instead of the semiannual monitoring required for other 
well sites. Subsequent annual monitoring must be conducted at least 9 
months apart, but no more than 12 months apart. The specific repair, 
recordkeeping, and reporting requirements remain unchanged from the 
2016 Rule, except as discussed in section IV.A of this preamble.
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    \8\ Alaskan North Slope is defined in 40 CFR 60.5430a as.
    \9\ Startup of production is defined in 40 CFR 60.5430a as.
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    Under the 2016 Rule, the initial monitoring survey of fugitive 
emissions components at a new well site must be conducted within 60 
days of startup of production at the new well site. For a collection of 
modified fugitive emissions components, the initial monitoring survey 
must be conducted within 60 days of production after the modification. 
The rule requires

[[Page 10632]]

semiannual monitoring thereafter. In response to our NODA soliciting 
additional comments and information on implementation challenges, the 
EPA received comments expressing immediate concerns with the timing for 
conducting fugitive emissions monitoring at well sites on the Alaskan 
North Slope. The commenters noted that these concerns were raised in 
comments on the proposed rule in 2015, in addition to petitions for 
reconsideration following promulgation of the 2016 Rule. The commenters 
cautioned that the monitoring technology specified in the 2016 Rule 
(i.e., optical gas imaging (OGI) and the instruments for EPA Method 21) 
cannot reliably detect methane emissions at well sites on the Alaskan 
North Slope for a significant portion of the year due to the lengthy 
period of extreme cold temperatures.\10\ According to manufacturer 
specifications, OGI cameras, which the EPA identified in the 2016 Rule 
as the BSER for monitoring fugitive emissions at well sites, are not 
designed to operate at temperatures below 
-4[emsp14][deg]F,\11\ and the monitoring instruments for EPA 
Method 21, which the 2016 Rule provides as an alternative to OGI, are 
not designed to operate below +14[emsp14][deg]F.\12\ One commenter 
provided data, and the EPA confirmed with its own analysis, that 
temperatures below 0 \0\F are a common occurrence, on the Alaskan North 
Slope between November and April.\13\ In light of the above, there is 
no assurance that the initial and semiannual monitoring that must occur 
during that period of time are technically feasible.
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    \10\ See Docket ID No. EPA-HQ-OAR-2010-0505-12434.
    \11\ See FLIR Systems, Inc. product specifications for GF300/320 
model OGI cameras at http://www.flir.com/ogi/display/?id=55671.
    \12\ See Thermo Fisher Scientific product specification for TVA-
2020 at https://assets.thermofisher.com/TFS-Assets/LSG/Specification-Sheets/EPM-TVA2020.pdf.
    \13\ See information on average hourly temperatures from January 
2010 to January 2018 at the weather station located at Deadhorse 
Alpine Airstrip, Alaska. Obtained from the National Oceanic and 
Atmospheric Administration (NOAA)'s National Centers for 
Environmental Information and summarized in Docket ID No. EPA-HQ-
OAR-2010-0505.
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    During the rulemaking for the 2016 Rule, in response to comments 
expressing concerns with cold temperatures in several regions, the EPA 
had attempted to address the issue by providing additional flexibility 
in the form of allowing consecutive semiannual events to take place 
every 4 to 6 months. However, as commenters on the NODA correctly 
observed, the EPA did not address the issue as it relates to initial 
monitoring at well sites on the Alaskan North Slope; further, even with 
the additional flexibility, semiannual monitoring at well sites located 
on the Alaskan North Slope could still be required at a time when the 
temperature is below the operating temperature of the monitoring 
instruments.
    In light of the technical feasibility issue discussed previously, 
the EPA concludes that the current fugitive emissions monitoring 
frequencies for well sites do not reflect the BSER for monitoring 
fugitive emissions components at well sites on the Alaskan North Slope, 
and that a different fugitive emissions monitoring schedule is 
warranted for well sites located on the Alaskan North Slope. 
Specifically, the EPA has amended the 2016 Rule to require that new or 
modified well sites that startup production between September and March 
conduct initial monitoring within 6 months of the startup of production 
or by June 30, whichever is later. We believe that the amendment would 
assure that initial monitoring take place when both OGI and EPA Method 
21 are operable.
    In addition, the EPA is amending the 2016 Rule to require annual 
(instead of semiannual) monitoring of fugitive emissions at well sites 
on the Alaskan North Slope. During the rulemaking for the 2016 Rule, 
the EPA had evaluated annual monitoring at well sites and concluded 
that semiannual monitoring reflected the BSER for detecting fugitive 
emissions at well sites. During the rulemaking for the 2016 Rule, we 
stated in response to a comment that there would be months during the 
semiannual monitoring periods when the OGI camera could work 
effectively.\14\ However, after reconsidering the information provided 
by commenters and confirmed by the EPA, we now conclude that monitoring 
may not be technically feasible on the Alaskan North Slope for close to 
6 consecutive months (November through April) due to the extreme cold 
temperatures that could render the monitoring instruments inoperable. 
Therefore, the EPA now concludes that annual monitoring more accurately 
reflects the BSER for monitoring fugitive emissions at well sites on 
the Alaskan North Slope because of the infeasibility of semiannual 
monitoring. The impracticability is demonstrated by the following 
example. If initial monitoring were conducted in August, the first 
semiannual monitoring would be required between December and February. 
Based on average temperatures during those months, it is unlikely that 
semiannual monitoring would be possible in this window. Further, in 
order for well sites on the Alaskan North Slope to conduct semiannual 
monitoring, the monitoring events would be limited to April/May and 
October/November, which creates additional difficulties with scheduling 
monitoring, repairs, and resurveys within the required periods.
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    \14\ See Chapter 4 of the EPA's Responses to Public Comments, 
page 4-273 located at Docket ID No. EPA-HQ-OAR-2010-0505-7632.
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    The EPA concludes that the Alaskan North Slope issue must be 
addressed immediately given that we are currently well into the cold 
weather months. Because both the proposed 2-year stay and the 
suggestion that we extend the phase-in period for the fugitive 
emissions requirements would offer only temporary relief from the 
initial and subsequent monitoring requirements at well sites, which the 
EPA has already concluded to be inappropriate for the reasons stated 
above, the EPA is not finalizing a stay or a longer phase-in of these 
requirements. Rather, the EPA is taking final action to amend the 2016 
Rule to provide a separate fugitive emissions monitoring schedule for 
well sites located on the Alaskan North Slope to accommodate its arctic 
climate.

V. Summary of Significant Comments and Responses

    The EPA received a large number of comments covering a wide range 
of topics in response to our June 16, 2017, proposal and November 8, 
2017, NODA. As discussed in sections II and IV of this preamble, the 
EPA is still in the process of reviewing many of these comments. As 
noted previously, however, in the course of this review, the EPA has 
identified two specific provisions of the fugitive emissions 
requirements in the 2016 Rule that pose significant and immediate 
compliance concerns, and EPA is taking final action here to make 
targeted amendments to the 2016 Rule to address these two concerns. The 
Agency is still evaluating comments related to other issues raised in 
the proposal and the NODA and is not taking final action with respect 
to those issues at this time. Accordingly, we are not responding to 
those comments at this time. This section summarizes the significant 
comments relevant to the amendments in this final action, and our 
response to those comments.

A. The EPA's Legal Authority

    The EPA received numerous comments on the legal authorities for its 
proposal to stay certain requirements of the 2016 Rule for 2 years and 
for the alternative suggestion of providing

[[Page 10633]]

longer phase-in periods for those requirements. Because this final rule 
does not involve staying or phasing in any requirement in the 2016 
Rule, comments specific to the proposed stay and phase-in are deemed 
outside of the scope of this final action. The EPA is, therefore, not 
responding to these comments and is not addressing whether such 
authority exists.
    This final rule amends two aspects of the fugitive emissions 
requirements in the 2016 Rule, which was promulgated pursuant to the 
EPA's authority to set NSPS standards pursuant to CAA section 111(b) 
according to the procedures under CAA section 307(d). Summarized below 
are significant comments on the EPA's authority under CAA sections 
111(b) and 307(d) to amend a previously promulgated NSPS.
    Comment: The EPA received general comments on the EPA's legal 
authority to amend the 2016 Rule under CAA section 111. One commenter 
stated that any revisions to the 2016 Rule must follow the substantive 
and procedural requirements found in CAA section 111 and 307(d).\15\ In 
order the meet these requirements and amend the NSPS, the commenter 
stated that the EPA must justify any revisions as being consistent with 
the statutory mandate, explain the basis for the revision (including 
supporting record), and follow the procedures established in CAA 
section 111(b)(1)(B), 42 U.S.C. 7411(b)(1)(B).
---------------------------------------------------------------------------

    \15\ See Docket ID No. EPA-HQ-OAR-2010-0505-12451.
---------------------------------------------------------------------------

    The commenters further described the statute's procedural 
requirements, such as a thorough review of specific factors, such as 
whether the standard reflects BSER, ``the cost of those standards, any 
resulting nonair quality health and environmental impacts, energy 
requirements, the amount of air pollution reduced by the standards, and 
how the standards may drive technological innovation.'' \16\ The 
commenter stated that a revision to the compliance date (as proposed) 
would require a factual analysis that demonstrated the new compliance 
date reflected in the emission reductions achievable through the BSER. 
Further, the commenter stated that standards must be promulgated that 
reflect ``improved design and operational advance'' that may not yet be 
realized by industry, ``so long as there is substantial evidence that 
such improvements are feasible and will produce the improved 
performance necessary to meet the standard.'' \17\
---------------------------------------------------------------------------

    \16\ See 80 FR 64510, 64538 (October 23, 2015) (quoting Sierra 
Club v. Costle, 657 F.2d 298, 326, 347 (D.C. Cir. 1981)). See also 
42 U.S.C. 7411(a)(1), (b)(1)(B), (h)(1).
    \17\ See Sierra Club v. Costle 657 F.2d at 364 and Portland 
Cement Ass'n v. EPA, 665 F.3d 177, 190 (D.C. Cir. 2011).
---------------------------------------------------------------------------

    The commenters further discussed the holding in the National 
Association of Home Builders case in 2012. ``The fact that the original 
[rule] was consistent with congressional intent is irrelevant as long 
as the amended rule is also `permissible under the statute.' '' \18\ In 
that case, the petitioners acknowledged that, although they believed 
the original rule was better, the amended rule was permissible. Oral 
Arg. Recording at 17:40-:43. As Fox made clear, that ``suffices'' as 
far as the court is concerned. Fox, 556 U.S. at 515. Further, as Fox 
noted, the Supreme Court has ``neither held nor implied that every 
agency action representing a policy change must be justified by reasons 
more substantial than those required to adopt a policy in first 
instance.'' Fox, 556 U.S. at 514 (citing Motor Vehicle Manufacturers 
Ass'n of the United States, Inc., et al., v. State Farm Mutual 
Automobile Insurance Co., et al., 463 U.S. 29, 42 (1983)). To the 
contrary, according to the commenters, the State Farm case affirmed 
that ``[a]n agency's view of what is in the public interest may change, 
either with or without a change in circumstances.'' State Farm, 463 
U.S. at 57 (quoting Greater Boston Television Corp. v. FCC, 444 F.2d 
841, 852 (D.C. Cir.1970)); see Am. Trucking Ass'ns v. Atchison, Topeka 
& Santa Fe Ry. Co., et al., 387 U.S. 397, 416 (1967) (declaring that an 
agency, ``in light of reconsideration of the relevant facts and its 
mandate, may alter its past interpretation and overturn past 
administrative rulings''). Nat'l Ass'n of Home Builders, 682 F.3d at 
1037.
---------------------------------------------------------------------------

    \18\ Nat'l Ass'n of Home Builders, et al., v. EPA, 682 F.3d 
1032, 1037 (citing Fox, 556 U.S. at 515).
---------------------------------------------------------------------------

    Response: The EPA agrees with the comment that it has authority to 
amend an NSPS when it demonstrates that such revision is consistent 
with the mandate of section 111(b) of the CAA and reasonably explain 
the basis for the revision based on the record before the Agency, as 
required by section 307(d) of the CAA. The EPA has done so in this 
final action and need not address at this time if this is the sole 
source of authority that the EPA may have to amend or stay an NSPS.
    A standard of performance promulgated under section 111(b) of the 
CAA must reflect the BSER for that emission source. In the 2016 Rule, 
the EPA conducted BSER analyses for reducing fugitive emissions at well 
sites and compressor stations, which resulted in the work practice 
standards promulgated in that rule. As explained below in this section 
and elsewhere in this notice, in the process of the current rulemaking, 
the EPA has identified two narrow provisions of the fugitive emissions 
requirements that pose immediate compliance concerns. The first issue 
concerns the potential that the current requirements for delayed 
repairs could result in an increase (instead of a reduction) of 
emissions and service disruption. The other issue concerns the 
technical feasibility of complying with the timeframe specified in the 
2016 Rule for monitoring fugitive emissions at well sites in the 
Alaskan North Slope due to its extreme cold temperature for a lengthy 
period of time, which could render the monitoring instrument 
inoperable. After examining the comments and information on these two 
specific concerns, we conclude that the BSER and the resulting fugitive 
emissions requirements in the 2016 Rule did not adequately address 
these two compliance concerns and that revision is warranted. The 
revision is based on comments, data, and other information submitted 
during the rulemaking process, as well as our own analyses, all of 
which can be found in Docket ID No. EPA-HQ-OAR-2010-0505. A more 
detailed discussion of our revised analyses and amendment can be found 
below in this section as well as in section IV of this preamble.

B. Delayed Repairs

    Comment: Twelve commenters provided information related to the 
requirements for delayed repairs in 40 CFR part 60, subpart OOOOa. Ten 
commenters \19\ supported a stay and/or suggested specific changes to 
the regulation to address repairs during unplanned and emergency vent 
blowdowns, while two commenters \20\ opposed any changes to the 
requirement for delayed repairs.
---------------------------------------------------------------------------

    \19\ See Docket ID No. EPA-HQ-OAR-2010-0505-12417, Docket ID No. 
EPA-HQ-OAR-2010-0505-12421, Docket ID No. EPA-HQ-OAR-2010-0505-
12422, Docket ID No. EPA-HQ-OAR-2010-0505-12424, Docket ID No. EPA-
HQ-OAR-2010-0505-12430, Docket ID No. EPA-HQ-OAR-2010-0505-12436, 
Docket ID No. EPA-HQ-OAR-2010-0505-12446, Docket ID No. EPA-HQ-OAR-
2010-0505-12447, Docket ID No. EPA-HQ-OAR-2010-0505-12454, and 
Docket ID No. EPA-HQ-OAR-2010-0505-12456.
    \20\ See Docket ID No. EPA-HQ-OAR-2010-0505-12444, Docket ID No. 
EPA-HQ-OAR-2010-0505-12451 (part 1 of comments), and Docket ID No. 
EPA-HQ-OAR-2010-0505-12452 (part 2 of comments).
---------------------------------------------------------------------------

    The commenters that supported changes reiterated comments contained 
in their petitions for reconsideration following the promulgation of 
the 2016

[[Page 10634]]

Rule. The commenters stated that by requiring repairs during unplanned 
or emergency events, the actual emissions could be higher than the 
emissions of the delayed repair for that component. For instance, 
requiring repairs during unplanned or emergency events may require 
venting of equipment that is not being repaired and that would not 
otherwise be vented during that shutdown, potentially resulting in 
emissions much larger than those of the leak itself. Further, the 
commenters asserted that prolonged shutdowns may be encountered while 
repairs are made, which would affect both upstream and downstream 
users. Specifically, these repairs could result in the need to vent or 
flare gas upstream at a production facility if the midstream compressor 
station has to remain offline. Further, gas supply could be limited for 
downstream users, causing critical issues with the provision of power 
or heat to end users reliance on natural gas.
    One commenter \21\ provided specific data regarding components 
monitored under the fugitive program in 40 CFR part 60, subpart OOOOa. 
The commenter references an evaluation performed on 22 of their 
compressor stations. This evaluation showed that 95-percent of all 
leaks (345 of 362 leaks) occurring at these stations between 2015 and 
2017 were repaired within 30 days, leaving only 5-percent to be placed 
on a delayed repair. When repair was delayed, most repairs were 
completed within 90 days of leak detection. Two commenters \22\ 
suggested specific edits to the regulation. Specifically, these edits 
remove reference to the requirement for repairs to be completed during 
unscheduled, planned, or emergency vent blowdowns and limits repairs at 
compressor stations to scheduled shutdowns for maintenance. Further, 
these commenters suggested additional language to require additional 
justification for delaying repairs beyond a shutdown, requiring 
Administrator approval on a case-by-case basis. Additional comments and 
information are discussed in section IV of this preamble.
---------------------------------------------------------------------------

    \21\ See Docket ID No. EPA-HQ-OAR-2010-0505-12430.
    \22\ See Docket ID No. EPA-HQ-OAR-2010-0505-12421 and Docket ID 
No. EPA-HQ-OAR-2010-0505-12447.
---------------------------------------------------------------------------

    In contrast, the two commenters that opposed changes to the delayed 
repair requirements cited a lack of information to support either a 
stay or compliance deadline extension. One commenter \23\ suggests that 
since the leaks for which repairs are delayed were found prior to any 
shutdown (whether planned or not), the company had time to make 
arrangements to obtain replacement parts; thus, allowing repair during 
that next shutdown event. Further, the commenter asserted that the EPA 
has provided no data to demonstrate why a stay is necessary for the 
entire fugitive program to accommodate such a small set of leaks given 
that the data the EPA does have suggests the majority of leaks are 
repaired at the time of the monitoring survey. Another commenter \24\ 
asserted that the requirement for delayed repairs is more accommodating 
than it needs to be when compared to the requirements found in 
California's rule. The commenter explained, ``California's regulation 
requires leaks to be repaired within 14 calendar days, except for leaks 
involving critical components, which must be repaired by the end of the 
next process shutdown or within 12 months, whichever is sooner.''
---------------------------------------------------------------------------

    \23\ See Docket ID No. EPA-HQ-OAR-2010-0505-12451 (part 1 of 
comments) and Docket ID No. EPA-HQ-OAR-2010-0505-12452 (part 2 of 
comments).
    \24\ See Docket ID No. EPA-HQ-OAR-2010-0505-12444.
---------------------------------------------------------------------------

    Response: The EPA is amending the requirements for delayed repair 
in this final action. Specifically, the EPA is removing the terms 
``unplanned'' and ``emergency,'' used in reference to vent blowdowns 
and added the term ``scheduled'' before the list of scenarios when 
delayed repair must be completed. As several commenters noted and as 
discussed in section IV.A of this preamble, completion of repair during 
an unscheduled or emergency event could require a blowdown of equipment 
that was not otherwise necessary in order to repair components on 
delayed repair. Due to the potential for increasing emissions, the 
current requirements for delayed repair do not reflect the BSER for 
addressing fugitive emissions at well sites and compressor stations. In 
addition, as discussed in section IV.A of this preamble, not requiring 
delayed repair during unscheduled vent blowdowns would avoid the 
potential of service disruption. As mentioned in section IV.A of this 
preamble, we note that under CARB's leak repair requirements,\25\ 
delayed repair is permitted if gas service is critical to public gas 
system operation; thereby, highlighting the importance of not 
disrupting gas service. According to the data received, only around 5-
percent of leaks are placed on delay for repair. Further, unscheduled 
or emergency vent blowdowns are but one of many scenarios where delayed 
repair must be completed. Owners or operators are still required to 
complete repairs on components during the next scheduled compressor 
station shutdown, well shutdown, well shut-in, after a planned vent 
blowdown, or within 2 years, whichever is earlier. Accordingly, the 
requirement for delayed repair, as amended, still requires that repairs 
occur as soon as possible while reducing the potential for unintended 
emissions releases and service disruptions.
---------------------------------------------------------------------------

    \25\ Greenhouse Gas Emission Standards for Crude Oil and Natural 
Gas Facilities, section 95669, California Code of Regulations, Title 
17, Division 3, Chapter 1, Subchapter 10 Climate Change, Article 4, 
Subarticle 13. Effective date October 1, 2017.
---------------------------------------------------------------------------

    As discussed earlier, this issue must be addressed immediately to 
avoid potentially increasing emissions and/or disrupting gas supply. 
The EPA acknowledges that there are other comments concerning other 
aspects of the requirements for delayed repair in the fugitive 
emissions requirements, and that the EPA continues to evaluate these 
comments. Should any of these comments warrant additional changes to 
the fugitive requirements, the EPA intends to address them separately.

C. Alaskan North Slope

    Comment: Three commenters \26\ provided comments related to 
compliance with the fugitive emissions monitoring requirements in 
extreme cold weather conditions. These comments related to the 
limitations of the monitoring technologies and worker safety concerns. 
The commenters stated that the EPA should exempt well sites and 
compressor stations located on the Alaskan North Slope from the 
fugitive emissions monitoring requirements. At a minimum, two 
commenters stated that the EPA should stay or extend the compliance 
deadline for initial monitoring at these well sites. Additionally, two 
commenters stated that extreme cold weather conditions can occur 
outside of the Alaskan North Slope and these commenters requested 
similar stays or extensions of the compliance deadlines for any 
location experiencing these conditions. The commenters reiterated 
comments submitted in the 2015 proposal and subsequent petitions for 
reconsideration. Specifically, the commenters stated the technological 
limitations and worker safety considerations in the Arctic

[[Page 10635]]

environment warrant an exemption from monitoring.
---------------------------------------------------------------------------

    \26\ See Docket ID No. EPA-HQ-OAR-2010-0505-12434, Docket ID No. 
EPA-HQ-OAR-2010-0505-12436, and Docket ID No. EPA-HQ-OAR-2010-0505-
12446.
---------------------------------------------------------------------------

    One commenter provided manufacturer specifications for three of the 
commonly used monitoring instruments (OGI camera, toxic vapor analyzer 
(TVA), and multi gas monitors).\27\ The commenter noted that the 
specifications indicate the lowest operating temperature for any of the 
instruments is -4[emsp14][deg]F.\28\ This commenter further 
provided average hourly temperature by month for the years 2012 through 
2014. This data indicated that average hourly temperatures on the 
Alaskan North Slope were below -4[emsp14][deg]F for 
approximately 5 months (December through April). Three commenters 
stated that while there is a waiver from quarterly monitoring at 
compressor stations when average temperatures are below 0 [deg]F for 2 
consecutive months, there is no similar waiver for semiannual 
monitoring well sites, nor a waiver from initial monitoring at either 
well sites or compressor stations. The commenters, therefore, stated 
the combination of average hourly temperatures on the Alaskan North 
Slope and the operating limitations of the monitoring instruments pose 
immediate compliance implications.
---------------------------------------------------------------------------

    \27\ See Docket ID No. EPA-HQ-OAR-2010-0505-12434.
    \28\ See FLIR Systems, Inc. Product specifications for GF300/320 
model OGI cameras at http://www.flir.com/ogi/display/?id=55671.
---------------------------------------------------------------------------

    Finally, two of the commenters stated that the EPA should exempt 
well sites and compressor stations located on the Alaskan North Slope 
from fugitive emissions monitoring similar to the exemptions from leak 
detection and repair at natural gas processing plants provided in NSPS 
OOOO and OOOOa.\29\ These commenters stated the reasons for applying an 
exemption to the natural gas processing plants are also valid for well 
sites and compressor stations.
---------------------------------------------------------------------------

    \29\ See Docket ID No. EPA-HQ-OAR-2010-0505-12434 and Docket ID 
No. EPA-HQ-OAR-2010-0505-12446.
---------------------------------------------------------------------------

    Response: The EPA agrees with the commenters that available 
monitoring technologies (OGI and, for EPA Method 21, TVA and multi gas 
meters) are not designed to operate below -4[emsp14] [deg]F 
or \+\14[emsp14] [deg]F, respectively.\30\ In addition to the 
information provided by the commenters, information from the NOAA 
demonstrate average temperatures on the Alaskan North Slope make it 
technically infeasible to perform monitoring during a nearly 6-month 
period.\31\ As we are already well within this period, the EPA must act 
immediately to avoid requiring fugitive emissions monitoring at well 
sites located on the Alaskan North Slope when the average temperature 
there is below the operating temperature of any of the available 
monitoring instruments. Therefore, the EPA is amending 40 CFR part 60, 
subpart OOOOa, to extend the initial monitoring deadline and allow 
annual fugitive emissions monitoring at well sites located on the 
Alaskan North Slope. The EPA is not amending 40 CFR part 60, subpart 
OOOOa, fugitive emissions monitoring requirements for compressor 
stations located on the Alaskan North Slope because the commenters have 
stated there are no compressor stations currently subject to 40 CFR 
part 60, subpart OOOOa; therefore, there is no immediate compliance 
concern to address for these requirements at this time.\32\
---------------------------------------------------------------------------

    \30\ See FLIR Systems, Inc. product specifications for GF300/320 
model OGI cameras at http://www.flir.com/ogi/display/?id=55671 and 
Thermo Fisher Scientific product specification for TVA-2020 at 
https://assets.thermofisher.com/TFS-Assets/LSG/Specification-Sheets/EPM-TVA2020.pdf.
    \31\ See information on average hourly temperatures from January 
2010 to January 2018 at the weather station located at Deadhorse 
Alpine Airstrip, Alaska. Obtained from NOAA's National Centers for 
Environmental Information and summarized in Docket ID No. EPA-HQ-
OAR-2010-0505.
    \32\ See ``Discussion of Comment Submitted on the NODA with 
ConocoPhillips Alaska, Inc.'' located at Docket ID No. EPA-HQ-OAR-
2010-0505.
---------------------------------------------------------------------------

    As the commenters noted, the issues with conducting fugitive 
emissions monitoring at well sites located on the Alaskan North Slope 
were raised in the comments on the proposed 40 CFR part 60, subpart 
OOOOa. In the EPA's responses to public comments on this issue, the EPA 
stated that specific flexibilities were added to the fugitive emissions 
monitoring program to avoid potential compliance concerns on the 
Alaskan North Slope. Specifically, the repair deadline was extended 
from 15 to 30 days, with an additional 30 days to complete the resurvey 
after repair; semiannual monitoring at well sites is allowed every 4 to 
6 months; when average temperatures are below 0 [deg]F for 2 
consecutive months, quarterly monitoring is waived at compressor 
stations, and Method 21 was added as an alternative method for leak 
detection and resurvey.\33\ As one commenter noted, the EPA recognized 
the challenges with monitoring instrument operation at low temperatures 
for compressor stations, but did not extend a similar waiver from 
monitoring for well sites.\34\ Further, it is not clear that the 
flexibilities identified above assure that monitoring would not be 
required when the temperature on the Alaskan North Slope is below the 
operating temperature of the monitoring instrument. The commenters 
reiterated this concern in the comments on the proposed stay and NODA.
---------------------------------------------------------------------------

    \33\ See ``EPA's Responses to Public Comments,'' Chapter 4, 
pages 4-267, 4-268, 4-273, and 4-276. https://www.regulations.gov/document?D=EPA-HQ-OAR-2010-0505-7632.
    \34\ See Docket ID No. EPA-HQ-OAR-2010-0505-12446.
---------------------------------------------------------------------------

    We revisited the issue and reviewed both the relevant record for 
the 2016 Rule as well as additional information received subsequent to 
the rulemaking. Based on this evaluation, we recognized that a separate 
initial monitoring requirement was necessary for well sites that 
startup production during the months when it may be technically 
infeasible to meet the 60-day initial monitoring requirement.
    For instance, we examined the scenario of a new well starting 
production in September. Under the current requirements, the initial 
monitoring survey would be required within 60 days of the startup of 
production. This would put the deadline in October or November, 
depending on when the well started producing in September.\35\ The EPA 
recognized from the data provided that these 2 months may have issues 
with the feasibility of completing monitoring due to changing weather 
conditions moving into winter. If we set a deadline for initial 
monitoring 6 months from startup of production, then monitoring would 
be required by March, when temperatures are still not warm enough for 
instrument operation. While the average temperatures may be 
sufficiently warm starting in the middle of spring, information 
discussed in the Response to Comments document raised concerns with 
melting snow, flooding, and transportation issues during this time.\36\ 
Additionally, we are concerned with potentially constraining affected 
sources' ability to schedule and acquire requisite personnel and 
equipment if we were to require all well sites that start production 
between September and March to conduct initial monitoring in April or 
May. These well sites would forever be locked into performing both 
initial and all subsequent monitoring at the same time each year. We do 
not believe that it is appropriate to place such constraint on the well 
site's ability to schedule monitoring events. Based on average 
temperatures, we are confident that monitoring can occur during the

[[Page 10636]]

summer months. Therefore, we have amended the 2016 Rule to require 
that, for each new or modified well site located on the Alaskan North 
Slope that starts production between September and March, the owner or 
operator has 6 months, or until June 30, whichever is later, to 
complete initial monitoring of the fugitive emissions components. The 
amendments, which provide both a time frame and specific date, would 
require monitoring as soon as feasible while avoiding the concerns 
described above. For each new or modified well site located on the 
Alaskan North Slope that starts production between September and March, 
the owner or operator has 6 months, or until June 30, whichever is 
later to complete initial monitoring of the fugitive emissions 
components.
---------------------------------------------------------------------------

    \35\ Similar issues are realized by well sites starting up 
between October and March, such as extreme low temperatures, 
concerns with snow melt and flooding, and logistical issues 
associated with schedule flexibility.
    \36\ See ``EPA's Responses to Public Comments,'' Chapter 4, page 
4-268. https://www.regulations.gov/document?D=EPA-HQ-OAR-2010-0505-7632.
---------------------------------------------------------------------------

    The EPA agrees with the commenters that there are immediate 
compliance concerns due to the operating limitations of monitoring 
instruments. Therefore, we are finalizing an amendment to the timeframe 
for the fugitive emission monitoring program for well sites located on 
the Alaskan North Slope. Specifically, owners or operators must meet 
the initial compliance deadline of 60 days from the startup of 
production, unless the well site starts production between September 
and March. Those well sites that startup production between September 
and March must complete initial monitoring within 6 months of startup 
of production or by June 30, whichever is later. Additionally, owners 
or operators must perform annual monitoring for fugitive emissions, 
following the initial monitoring survey at all affected well sites 
located on the Alaskan North Slope, regardless of the startup date. 
Subsequent monitoring surveys must occur at least every 12 months, with 
consecutive monitoring surveys conducted at least 9 months apart. The 
requirements for repair, recordkeeping, and reporting remain the same 
as those in the 2016 Rule. Recognizing there are several months in 
which temperatures are within the operating temperature range for the 
monitoring instruments, the EPA concludes owners or operators have 
enough flexibility to complete monitoring surveys in this timeframe. 
Any further amendments for the Alaskan North Slope will be addressed 
separately. This amendment only applies at well sites located on the 
Alaskan North Slope. All other well sites must continue to comply with 
the initial, semiannual, or quarterly monitoring requirements, as 
appropriate.
    With respect to comments on exempting facilities located on the 
Alaskan North Slope from fugitive monitoring requirements, changes to 
low temperature waivers, or any other concerns raised by the commenters 
related to cold weather, addressing them will likely require additional 
information and analysis. The EPA will continue evaluating these 
comments.

VI. Impacts of the Final Amendments

    Although there will be cost savings related to not requiring 
delayed repairs during unscheduled or emergency events, as well as 
forgone benefits related to the reductions of fugitive emissions that 
might have occurred following these repairs, the EPA does not have cost 
or economic data related to this provision because of the unplanned 
nature of these events. Therefore, we are unable to determine the cost 
savings or forgone benefits of amending the requirements for delayed 
repair requirement related to unscheduled or emergency events.
    In order to determine the impacts of the amendments to the fugitive 
emissions requirements for well sites located on the Alaskan North 
Slope, we used the same assumptions and methods used to estimate 
impacts of the 2016 Rule. Specifically, we used the number of affected 
sources located on the Alaskan North Slope, and the cost and emission 
reductions estimated for well sites at semiannual and annual fugitive 
monitoring frequencies that were assumed in the 2016 Rule. The cost 
savings and emission reductions estimated as a result of these 
amendments are presented in Tables 2 and 3, respectively. For more 
information on the assumptions used in this analysis, as well as the 
costs and emission reductions for fugitive emissions requirements at 
well sites, see the Background Technical Support Document for the Final 
New Source Performance Standards 40 CFR part 60, subpart OOOOa (TSD) 
located at Docket ID No. EPA-HQ-OAR-2010-0505-7631. Note that the costs 
in the TSD are in 2012 dollar years, and the cost savings presented 
here are in 2016 dollar years. The amended fugitive monitoring 
requirements for well sites located on the Alaskan North Slope will 
save approximately $24,000 per year in compliance costs, after 
accounting for forgone natural gas recovery. This amendment will also 
result in approximately 34 short tons of forgone methane emission 
reductions, or 772 tons of carbon dioxide equivalent (CO2E).

                       Table 2--Estimated Cost Savings of the Amended Fugitive Monitoring Requirements on the Alaskan North Slope
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                      Compliance cost savings              Total annualized cost savings   Total annualized cost savings
                                         ------------------------------------------------              (3%)                            (7%)
                                                              Annual          Forgone    ---------------------------------------------------------------
                                           Capital cost   operating cost      product       W/o product      W/Product      W/o product      W/Product
                                              savings         savings        recovery        recovery        recovery        recovery        recovery
--------------------------------------------------------------------------------------------------------------------------------------------------------
NG Well Pads............................          $1,300         $29,000          $6,700         $29,000         $22,000         $29,000         $22,000
Oil Well Pads...........................             110           2,400             210           2,400           2,200           2,400           2,200
                                         ---------------------------------------------------------------------------------------------------------------
    Total...............................           1,400          31,000           6,900          31,000          24,000          31,000          24,000
--------------------------------------------------------------------------------------------------------------------------------------------------------


                Table 3--Estimated Forgone Emission Reductions of the Amended Fugitive Monitoring Requirements on the Alaskan North Slope
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                            Forgone emission reductions                       Forgone
                                                             Affected    ----------------------------------------------------------------   natural gas
                                                           source count   Methane (short                                                   savings (Mcf
                                                                             tpy \1\)        VOC (tpy)       HAP (tpy)      CO2E (tpy)         \2\)
--------------------------------------------------------------------------------------------------------------------------------------------------------
NG Well Pads............................................              30              33               9               0             748           1,911

[[Page 10637]]

 
Oil Well Pads...........................................               3               1               0               0              24              61
                                                         -----------------------------------------------------------------------------------------------
    Total...............................................              33              34               9               0             772           1,972
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ tons per year.
\2\ thousand cubic feet.

VII. Statutory and Executive Order Reviews

    Additional information about these statutes and Executive Orders 
can be found at http://www2.epa.gov/laws-regulations/laws-and-executive-orders.

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

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

B. Executive Order 13771: Reducing Regulations and Controlling 
Regulatory Costs

    This action is considered an Executive Order 13771 deregulatory 
action. This final rule provides meaningful burden reduction by 
amending the requirement that components on a delayed repair must 
conduct repairs during unscheduled or emergency vent blowdowns, and 
adding flexibilities for the monitoring survey requirements for well 
sites located on the Alaskan North Slope.

C. Paperwork Reduction Act (PRA)

    This action does not impose any new information collection burden 
under the PRA. The information collection requirements in the final 40 
CFR part 60, subpart OOOOa have been submitted for approval to the OMB 
under the PRA. The Information Collection Request (ICR) document 
prepared by the EPA has been assigned EPA ICR 2523.01. This action does 
not result in changes to the submitted ICR for 40 CFR part 60, subpart 
OOOOa, so the information collection estimates of project cost and hour 
burdens have not been revised.

D. 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. This action finalizes amendments for two 
specific requirements in the 2016 Rule. This action will not increase 
the burden on small entities subject to this rule. The EPA prepared a 
final RFA analysis for the 2016 Rule, which is available as part of the 
Regulatory Impact Analysis in the docket at Docket ID No. EPA-HQ-OAR-
2010-0505-7630. We have, therefore, concluded that this action will 
have no net regulatory burden for all directly regulated small 
entities.

E. 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.

F. Executive Order 13132: Federalism

    This action does not have federalism implications. It will 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.

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

    This action does not have tribal implications, as specified in 
Executive Order 13175. It will not have substantial direct effects on 
tribal governments, on the relationship between the federal government 
and Indian tribes, or on the distribution of power and responsibilities 
between the federal government and Indian tribes, as specified in 
Executive Order 13175. Thus, Executive Order 13175 does not apply to 
this action.

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

    This action is not subject to Executive Order 13045 because it is 
not economically significant as defined in Executive Order 12866, and 
because the EPA does not believe the environmental health or safety 
risks addressed by this action present a disproportionate risk to 
children. This action finalizes amendments for two specific 
requirements in the 2016 Rule. Any impacts on children's health caused 
by the amendments in the rule will be limited, because the scope of the 
amendments is limited. The Agency, therefore, concludes it is more 
appropriate to determine the impact on children's health in the context 
of any substantive changes potentially proposed in the future as part 
of the reconsideration of the 2016 Rule (as granted on April 18, 2017).

I. Executive Order 13211: Actions Concerning Regulations That 
Significantly Affect Energy Supply, Distribution, or Use

    This action is not a ``significant energy action'' because it is 
not likely to have a significant adverse effect on the supply, 
distribution, or use of energy. The basis for this determination can be 
found in the 2016 Rule (81 FR 35894).

J. National Technology Transfer and Advancement Act (NTTAA)

    This rulemaking does not involve technical standards.

K. Executive Order 12898: Federal Actions To Address Environmental 
Justice in Minority Populations and Low-Income Populations

    This action finalizes amendments for two specific requirements in 
the 2016 Rule. Any impacts on minority populations and low-income 
populations caused by the amendments in the rule will be limited, 
because the scope of the amendments is limited. The

[[Page 10638]]

Agency, therefore, concludes it is more appropriate to determine the 
impact on minority populations and low-income populations in the 
context of any substantive changes potentially proposed in the future 
as part of the reconsideration of the 2016 Rule (as granted on April 
18, 2017).

L. Congressional Review Act (CRA)

    This action is subject to the CRA, and the EPA will submit a rule 
report to each House of the Congress and to the Comptroller General of 
the United States. This action is not a ``major rule'' as defined by 5 
U.S.C. 804(2).

List of Subjects in 40 CFR Part 60

    Environmental protection, Administrative practice and procedure, 
Air pollution control, Reporting and recordkeeping.

    Dated: February 23, 2018.
E. Scott Pruitt,
Administrator.

    For the reasons set out in the preamble, title 40, chapter I of the 
Code of Federal Regulations is amended as follows:

PART 60--STANDARDS OF PERFORMANCE FOR NEW STATIONARY SOURCES

0
1. The authority citation for part 60 continues to read as follows:

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

Subpart OOOOa--Standards of Performance for Crude Oil and Natural 
Gas Facilities for Which Construction, Modification or 
Reconstruction Commenced After September 18, 2015

0
2. Section 60.5397a is amended by revising paragraphs (f)(1), (g)(1) 
and (2), and (h)(2) to read as follows:


Sec.  60.5397a  What fugitive emissions GHG and VOC standards apply to 
the affected facility which is the collection of fugitive emissions 
components at a well site and the affected facility which is the 
collection of fugitive emissions components at a compressor station?

* * * * *
    (f) (1) You must conduct an initial monitoring survey within 60 
days of the startup of production, as defined in Sec.  60.5430a, for 
each collection of fugitive emissions components at a new well site or 
by June 3, 2017, whichever is later. For a modified collection of 
fugitive emissions components at a well site, the initial monitoring 
survey must be conducted within 60 days of the first day of production 
for each collection of fugitive emission components after the 
modification or by June 3, 2017, whichever is later. Notwithstanding 
the preceding deadlines, for each collection of fugitive emissions 
components at a well site located on the Alaskan North Slope, as 
defined in Sec.  60.5430a, that starts up production between September 
and March, you must conduct an initial monitoring survey within 6 
months of the startup of production for a new well site, within 6 
months of the first day of production after a modification of the 
collection of fugitive emission components, or by the following June 
30, whichever is later.
* * * * *
    (g) * * *
    (1) Except as provided herein, a monitoring survey of each 
collection of fugitive emissions components at a well site within a 
company-defined area must be conducted at least semiannually after the 
initial survey. Consecutive semiannual monitoring surveys must be 
conducted at least 4 months apart. A monitoring survey of each 
collection of fugitive emissions components at a well site located on 
the Alaskan North Slope must be conducted at least annually. 
Consecutive annual monitoring surveys must be conducted at least 9 
months apart.
    (2) A monitoring survey of the collection of fugitive emissions 
components at a compressor station within a company-defined area must 
be conducted at least quarterly after the initial survey. Consecutive 
quarterly monitoring surveys must be conducted at least 60 days apart.
* * * * *
    (h) * * *
    (2) If the repair or replacement is technically infeasible, would 
require a vent blowdown, a compressor station shutdown, a well shutdown 
or well shut-in, or would be unsafe to repair during operation of the 
unit, the repair or replacement must be completed during the next 
scheduled compressor station shutdown, well shutdown, well shut-in, 
after a planned vent blowdown or within 2 years, whichever is earlier.
* * * * *
[FR Doc. 2018-04431 Filed 3-9-18; 8:45 am]
 BILLING CODE 6560-50-P



                                             10628                    Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations

                                             report containing this action and other                         purposes of judicial review nor does it                PART 52—APPROVAL AND
                                             required information to the U.S. Senate,                        extend the time within which a petition                PROMULGATION OF
                                             the U.S. House of Representatives, and                          for judicial review may be filed, and                  IMPLEMENTATION PLANS
                                             the Comptroller General of the United                           shall not postpone the effectiveness of
                                             States prior to publication of the rule in                      such rule or action. This action adding                ■ 1. The authority citation for part 52
                                             the Federal Register. A major rule                              regulation 9VAC5–30–57 ‘‘Ozone (8-                     continues to read as follows:
                                             cannot take effect until 60 days after it                       hour 0.070 ppm)’’ to the Virginia SIP                      Authority: 42 U.S.C. 7401 et seq.
                                             is published in the Federal Register.                           may not be challenged later in
                                             This action is not a ‘‘major rule’’ as                          proceedings to enforce its requirements.               Subpart VV—Virginia
                                             defined by 5 U.S.C. 804(2).                                     (See section 307(b)(2).)
                                                                                                                                                                    ■ 2. In § 52.2420, the table in paragraph
                                             C. Petitions for Judicial Review                                List of Subjects in 40 CFR Part 52
                                                                                                                                                                    (c) is amended by adding the entry ‘‘5–
                                                Under section 307(b)(1) of the CAA,                            Environmental protection, Air                        30–57’’ in numerical order under the
                                             petitions for judicial review of this                           pollution control, Incorporation by                    heading ‘‘9 VAC 5, Chapter 30 Ambient
                                             action must be filed in the United States                       reference, Ozone.                                      Air Quality Standards [Part III]’’ to read
                                             Court of Appeals for the appropriate                              Dated: February 23, 2018.                            as follows:
                                             circuit by May 11, 2018. Filing a
                                                                                                             Cosmo Servidio,                                        § 52.2420    Identification of plan.
                                             petition for reconsideration by the
                                                                                                             Regional Administrator, Region III.                    *       *    *        *     *
                                             Administrator of this final rule does not
                                             affect the finality of this action for the                         40 CFR part 52 is amended as follows:                   (c) * * *

                                                                                                  EPA-APPROVED VIRGINIA REGULATIONS AND STATUTES
                                                                                                                                          State effective                                         Explanation
                                                              State citation                               Title/subject                                       EPA approval date
                                                                                                                                               date                                           [former SIP citation]


                                                          *                            *                       *                       *                       *                      *                     *

                                                                                                  9 VAC 5, Chapter 30          Ambient Air Quality Standards [Part III]


                                                     *                                *                      *                         *                       *                    *                       *
                                             5–30–57 .......................................   Ozone (8-hour, 0.070 ppm) .........           06/01/2016     03/12/2018 [Insert Federal
                                                                                                                                                              Register citation].

                                                          *                            *                       *                       *                       *                      *                     *



                                             *       *          *       *       *                            provisions of the requirements for the                 FOR FURTHER INFORMATION CONTACT:   Mrs.
                                             [FR Doc. 2018–04422 Filed 3–9–18; 8:45 am]                      collection of fugitive emission                        Karen Marsh, Sector Policies and
                                             BILLING CODE 6560–50–P                                          components at well sites and                           Programs Division (E143–05), Office of
                                                                                                             compressor stations: Removes the                       Air Quality Planning and Standards,
                                                                                                             requirement for completion of delayed                  Environmental Protection Agency,
                                             ENVIRONMENTAL PROTECTION                                        repair during unscheduled or                           Research Triangle Park, North Carolina
                                             AGENCY                                                          emergency vent blowdowns, and                          27711; telephone number: (919) 541–
                                                                                                             provides separate monitoring                           1065; email address: marsh.karen@
                                             40 CFR Part 60                                                                                                         epa.gov.
                                                                                                             requirements for well sites located on
                                             [EPA–HQ–OAR–2010–0505; FRL–9975–10–                             the Alaskan North Slope.
                                             OAR]                                                                                                                   SUPPLEMENTARY INFORMATION:
                                                                                                             DATES:This final rule is effective on                    Outline. The information presented in
                                             RIN 2060–AT59                                                   March 12, 2018.                                        this preamble is presented as follows:
                                             Oil and Natural Gas Sector: Emission                            ADDRESSES:   The EPA has established a                 I. General Information
                                             Standards for New, Reconstructed,                               docket for this action under Docket ID                    A. Does this action apply to me?
                                             and Modified Sources; Amendments                                No. EPA–HQ–OAR–2010–0505. All                             B. Where can I get a copy of this document
                                                                                                             documents in the docket are listed on                        and other related information?
                                             AGENCY:  Environmental Protection                                                                                         C. Judicial Review
                                             Agency (EPA).                                                   the https://www.regulations.gov                        II. Background
                                                                                                             website. Although listed in the index,                 III. Legal Authority
                                             ACTION: Final rule.
                                                                                                             some information is not publically                     IV. Summary of Final Action
                                             SUMMARY:    This action finalizes                               available, e.g., confidential business                    A. Delayed Repairs
                                             amendments of certain requirements                              information or other information whose                    B. Alaskan North Slope
                                             that are contained within the final rule                        disclosure is restricted by statute.                   V. Summary of Significant Comments and
                                                                                                             Certain other material, such as                              Responses
                                             titled ‘‘Oil and Natural Gas Sector:
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                                                                                                             copyrighted material, is not placed on                    A. The EPA’s Legal Authority
                                             Emission Standards for New,                                                                                               B. Delayed Repairs
                                             Reconstructed, and Modified Sources,’’                          the internet and will be publicly
                                                                                                                                                                       C. Alaskan North Slope
                                             published in the Federal Register on                            available only in hard copy form.                      VI. Impacts of the Final Amendments
                                             June 3, 2016 (2016 Rule). The                                   Publicly available docket materials are                VII. Statutory and Executive Order Reviews
                                             Environmental Protection Agency (EPA)                           available electronically through https://                 A. Executive Order 12866: Regulatory
                                             is finalizing amendments of two narrow                          www.regulations.gov.                                         Planning and Review and Executive



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                                                                       Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations                                                                10629

                                                  Order 13563: Improving Regulation and                                    G. Executive Order 13175: Consultation                      K. Executive Order 12898: Federal Actions
                                                  Regulatory Review                                                           and Coordination With Indian Tribal                        To Address Environmental Justice in
                                                B. Executive Order 13771: Reducing                                            Governments                                                Minority Populations and Low-Income
                                                  Regulations and Controlling Regulatory                                   H. Executive Order 13045: Protection of                       Populations
                                                  Costs                                                                       Children From Environmental Health                       L. Congressional Review Act (CRA)
                                                                                                                              Risks and Safety Risks
                                                C. Paperwork Reduction Act (PRA)
                                                                                                                           I. Executive Order 13211: Actions                         I. General Information
                                                D. Regulatory Flexibility Act (RFA)                                           Concerning Regulations That
                                                E. Unfunded Mandates Reform Act                                               Significantly Affect Energy Supply,                    A. Does this action apply to me?
                                                  (UMRA)                                                                      Distribution, or Use
                                                F. Executive Order 13132: Federalism                                       J. National Technology Transfer and                          Categories and entities potentially
                                                                                                                              Advancement Act (NTTAA)                                affected by this action include:

                                                                                          TABLE 1—INDUSTRIAL SOURCE CATEGORIES AFFECTED BY THIS ACTION
                                                                                           Category                                                        NAICS code 1                 Examples of regulated entities

                                             Industry ..................................................................................................          211111    Crude Petroleum and Natural Gas Extraction.
                                                                                                                                                                  211112    Natural Gas Liquid Extraction.
                                                                                                                                                                  221210    Natural Gas Distribution.
                                                                                                                                                                  486110    Pipeline Distribution of Crude Oil.
                                                                                                                                                                  486210    Pipeline Transportation of Natural Gas.
                                             Federal government ...............................................................................                             Not affected.
                                             State/local/tribal government .................................................................                                Not affected.
                                                1 North    American Industry Classification System.


                                                This table is not intended to be                                        this final rule may not be challenged                        Rule’’). The 2016 Rule established new
                                             exhaustive, but rather provides a guide                                    separately in any civil or criminal                          source performance standards (NSPS)
                                             for readers regarding entities likely to be                                proceedings brought by the EPA to                            for greenhouse gas and volatile organic
                                             regulated by this action. This table lists                                 enforce these requirements. Section                          compound (VOC) emissions from the oil
                                             the types of entities that the EPA is now                                  307(d)(7)(B) of the CAA further provides                     and natural gas sector. This rule
                                             aware could potentially be affected by                                     that ‘‘[o]nly an objection to a rule or                      addressed, among other things, fugitive
                                             this action. Other types of entities not                                   procedure which was raised with                              emissions at well sites and compressor
                                             listed in the table could also be                                          reasonable specificity during the period                     stations (‘‘fugitive emissions
                                             regulated. To determine whether your                                       for public comment (including any                            requirements’’) and emissions from
                                             entity is regulated by this action, you                                    public hearing) may be raised during                         pneumatic pumps. In addition, for a
                                             should carefully examine the                                               judicial review.’’ This section also                         number of affected facilities (i.e.,
                                             applicability criteria found in the final                                  provides a mechanism for the EPA to                          centrifugal compressors, reciprocating
                                             rule. If you have questions regarding the                                  convene a proceeding for                                     compressors, pneumatic pumps, and
                                             applicability of this action to a                                          reconsideration, ‘‘[i]f the person raising                   storage vessels), the rule required
                                             particular entity, consult the person                                      an objection can demonstrate to the EPA                      certification by a professional engineer
                                             listed in the FOR FURTHER INFORMATION                                      that it was impracticable to raise such                      of the closed vent system design and
                                             CONTACT section of this preamble, your                                     objection within [the period for public                      capacity, as well as any technical
                                             delegated authority, or your EPA                                           comment] or if the grounds for such                          infeasibility determination relative to
                                             Regional representative listed in 40 CFR                                   objection arose after the period for                         controlling pneumatic pumps at well
                                             60.4 (General Provisions).                                                 public comment, (but within the time                         sites. For further information on the
                                                                                                                        specified for judicial review) and if such                   2016 Rule, see 81 FR 35824 (June 3,
                                             B. Where can I get a copy of this                                          objection is of central relevance to the                     2016) and associated Docket ID No.
                                             document and other related                                                 outcome of the rule.’’ Any person                            EPA–HQ–OAR–2010–0505. A number
                                             information?                                                               seeking to make such a demonstration to                      of states and industry associations
                                               In addition to being available in the                                    us should submit a Petition for                              sought judicial review of the rule, and
                                             docket, an electronic copy of the final                                    Reconsideration to the Office of the                         the litigation is currently being held in
                                             action is available on the internet.                                       Administrator, U.S. EPA, Room 3000,                          abeyance. In addition, the EPA received
                                             Following signature by the                                                 EPA WJC West Building, 1200                                  a number of petitions for administrative
                                             Administrator, the EPA will post a copy                                    Pennsylvania Ave. NW, Washington, DC                         reconsideration of the rule and on April
                                             of this final action at https://                                           20460, with a copy to both the person(s)                     18, 2017, convened a proceeding to
                                             www.epa.gov/controlling-air-pollution-                                     listed in the preceding FOR FURTHER                          reconsider certain aspects of the rule,
                                             oil-and-natural-gas-industry. Additional                                   INFORMATION CONTACT section, and the                         including those related to the above
                                             information is also available at the same                                  Associate General Counsel for the Air                        three requirements.
                                             website.                                                                   and Radiation Law Office, Office of                             On June 16, 2017, the EPA proposed
                                                                                                                        General Counsel (Mail Code 2344A),                           to stay the fugitive emissions
                                             C. Judicial Review                                                                                                                      requirements, the well site pneumatic
                                                                                                                        U.S. EPA, 1200 Pennsylvania Ave. NW,
                                                Under section 307(b)(1) of the Clean                                    Washington, DC 20460.                                        pump requirements, and the
                                             Air Act (CAA), judicial review of this
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                                                                                                                                                                                     requirements for certification of closed
                                             final rule is available only by filing a                                   II. Background                                               vent systems by a professional engineer
                                             petition for review in the United States                                      On June 3, 2016, the EPA published                        for 2 years. The EPA proposed the stay
                                             Court of Appeals for the District of                                       a final rule titled ‘‘Oil and Natural Gas                    of these requirements in order to
                                             Columbia Circuit by May 11, 2018.                                          Sector: Emission Standards for New,                          provide the EPA with sufficient time to
                                             Moreover, under section 307(b)(2) of the                                   Reconstructed, and Modified Sources;                         propose, take public comment on, and
                                             CAA, the requirements established by                                       Final Rule,’’ at 81 FR 35824 (‘‘2016                         issue a final action on the issues under


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                                             10630              Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations

                                             reconsideration. See 82 FR 27645 (June                   performance’’ as ‘‘a standard for                     requirements for well sites located on
                                             16, 2017). On November 8, 2017, the                      emissions of air pollutants which                     the Alaskan North Slope.
                                             EPA issued a notice of data availability                 reflects the degree of emission
                                                                                                                                                            A. Delayed Repairs
                                             (NODA), in which the EPA offered                         limitation achievable through the
                                             additional information in further                        application of the best system of                        In this action, the EPA is finalizing
                                             support of the proposed stay and                         emission reduction which (taking into                 amendments to the requirements related
                                             solicited comments on a suggestion                       account the cost of achieving such                    to delayed repairs. Specifically, the final
                                             from stakeholders to allow additional                    reduction and any nonair quality health               rule removes the requirement for
                                             time to phase in these requirements as                   and environmental impact and energy                   completion of delayed repairs during
                                             opposed to a stay. See 82 FR 51788                       requirement) the Administrator                        unscheduled or emergency vent
                                             (November 8, 2017). Additionally, the                    determines has been adequately                        blowdowns. Owners and operators are
                                             NODA solicited comment and                               demonstrated.’’ This definition makes                 still required to complete repairs during
                                             information on several implementation                    clear that the standard of performance                the next compressor station shutdown,
                                             challenges raised by stakeholders. In                    must be based on controls that                        well shutdown, well shut-in, after a
                                             particular, the EPA broadly solicited                    constitute ‘‘the best system of emission              planned vent blowdown, or within 2
                                             comments on issues associated with the                   reduction . . . adequately                            years, whichever is earlier.
                                             requirement to complete repairs on                       demonstrated.’’ The standard that the                    The 2016 Rule requires replacement
                                             components on a delay of repair                          EPA develops, based on the best system                or repair of a component within 30 days
                                             (hereinafter referred to as ‘‘delayed                    of emission reduction (BSER), is                      of detection of fugitive emissions, but
                                             repair’’ for short in this notice) 1 during              commonly a numerical emissions limit,                 allows delaying the replacement/repair
                                             emergency or unscheduled shutdowns                       expressed as a performance level (e.g., a             under certain situations specified in the
                                             or vent blowdowns and suggestions for                                                                          rule. Specifically, the rule requires that
                                                                                                      rate-based standard). However, CAA
                                             addressing the issues. See 82 FR 51793.                                                                        the delayed repair ‘‘must be completed
                                                                                                      section 111(h)(1) authorizes the
                                                EPA received a broad range of                                                                               during the next compressor station
                                                                                                      Administrator to promulgate a work
                                             comments and information in response                                                                           shutdown, well shutdown, well shut-in,
                                                                                                      practice standard or other requirements,
                                             to the proposed stay and the NODA.                                                                             after an unscheduled, planned or
                                                                                                      which reflects the best technological
                                             Relevant to this action is information                                                                         emergency vent blowdown or within 2
                                                                                                      system of continuous emission
                                             regarding two specific provisions of the                                                                       years, whichever is earlier.’’ See 40 CFR
                                                                                                      reduction, if it is not feasible to
                                             fugitive emissions requirements that we                                                                        60.5397a(h)(2). While the only
                                                                                                      prescribe or enforce an emissions
                                             have concluded present immediate                                                                               unscheduled and emergency event
                                                                                                      standard. The work practice standards
                                             compliance concerns: (1) The                                                                                   specified in this regulation is with
                                                                                                      for fugitive emissions from well sites                regard to vent blowdown, the EPA
                                             requirement that delayed repairs must                    and compressor stations were
                                             be completed during unscheduled or                                                                             stated in the preamble to the 2016 Rule
                                                                                                      promulgated pursuant to CAA section                   that ‘‘if an unscheduled or emergency
                                             emergency vent blowdowns that occur                      111(h)(1)(A). See 81 FR 35829.
                                             within the 2-year repair timeframe and                                                                         vent blowdown, compressor station
                                                                                                        Agencies have inherent authority to                 shutdown, well shutdown, or well shut-
                                             prior to other scheduled events, and (2)
                                                                                                      reconsider past decisions and to revise,              in occurs during the delay of repair
                                             the monitoring survey requirements for
                                                                                                      replace, or repeal a decision to the                  period, the fugitive emissions
                                             well sites located on the Alaskan North
                                                                                                      extent permitted by law and supported                 components would need to be fixed at
                                             Slope. See section IV of this preamble
                                                                                                      by a reasoned explanation. FCC v. Fox                 that time.’’ See 81 FR 35858, June 3,
                                             for a discussion of these concerns and
                                                                                                      Television Stations, Inc., 556 U.S. 502,              2016. This preamble language implied
                                             these final amendments. The Agency is
                                                                                                      515 (2009); Motor Vehicle Mfrs. Ass’n v.              that delayed repairs were required if any
                                             still examining comments related to all
                                                                                                      State Farm Mutual Auto. Ins. Co., 463                 of these events occurred, regardless of
                                             other issues raised in the proposal and
                                                                                                      U.S. 29, 42 (1983) (‘‘State Farm’’). ‘‘The            whether it was planned. As mentioned
                                             NODA, including other issues related to
                                                                                                      power to decide in the first instance                 previously, the EPA discussed in the
                                             delayed repair and the Alaskan North
                                                                                                      carries with it the power to reconsider.’’            NODA stakeholder feedback that
                                             Slope, and is not taking final action
                                                                                                      Trujillo v. Gen. Elec. Co., 621 F.2d 1084,            requiring repair or replacement of
                                             with respect to these other matters in
                                                                                                      1086 (10th Cir. 1980); see also, United               fugitive emissions components during
                                             this final action.
                                                                                                      Gas Improvement Co. v. Callery                        unscheduled or emergency vent
                                             III. Legal Authority                                     Properties, Inc., 382 U.S. 223, 229                   blowdowns could result in natural gas
                                                The legal authority for this final                    (1965); Mazaleski v. Treusdell, 562 F.2d              supply disruptions, safety concerns, and
                                             action, which amends two narrow                          701, 720 (D.C. Cir. 1977). Accordingly,               increased emissions. In response, the
                                             provisions of the fugitive emissions                     in this final rule, the EPA is using the              EPA solicited comments on shutdown,
                                             requirements in the 2016 Rule, is the                    same statutory authority in                           shut-in, and blowdown scenarios that
                                             same as that for the promulgation of the                 promulgating the 2016 Rule to amend                   could result in technical, safety, and/or
                                             2016 Rule. The EPA promulgated the                       two provisions of the fugitive emissions              environmental issues, as well as
                                             2016 Rule pursuant to section                            requirements in the 2016 Rule. As                     suggestions for addressing them. See 82
                                             111(b)(1)(B) of the CAA, which requires                  explained below in section IV, with                   FR 51793, November 8, 2017. The EPA
                                             the EPA to issue ‘‘standards of                          these two narrowly tailored                           learned from the comments, through
                                             performance’’ for new sources in the list                amendments, the fugitive emissions                    additional specific examples, that the
                                             of categories of stationary sources that                 requirements better reflect BSER for                  requirement to complete delayed repairs
                                             cause or contribute significantly to air                 reducing fugitive emissions at well sites             during an unscheduled or emergency
                                                                                                      and compressor stations.                              vent blowdown could lead to a number
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                                             pollution which may reasonably be
                                             anticipated to endanger public health or                                                                       of unintended negative consequences.
                                                                                                      IV. Summary of Final Action
                                             welfare. See 81 FR 35828. CAA section                                                                          In particular, emissions from requiring
                                             111(a)(1) defines ‘‘a standard of                          The EPA is finalizing amendments to                 delayed repairs during an unscheduled
                                                                                                      two fugitive emissions requirements: (1)              or emergency shutdown, shut-in, or vent
                                               1 See 40 CFR 60.5397a(h)(2) for delay of repair        The requirements for delayed repairs,                 blowdown could result in greater
                                             requirements.                                            and (2) the monitoring survey                         emissions than the leaks that are to be


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                                                                Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations                                                    10631

                                             repaired; as such, it could not possibly                vented or flared for an extended period                 during an unscheduled or emergency
                                             reflect BSER for addressing fugitive                    of time while the owner or operator                     shutdown, shut-in, or vent blowdown
                                             emissions at well sites and compressor                  organized completion of delayed repairs                 due to the potential unintended
                                             stations.                                               and before the compressor station is                    consequences of further increasing the
                                                One commenter described                              brought back online, thereby creating                   emissions, in addition to disruption of
                                             configurations at well sites that can lead              emissions that would not have occurred                  services. The EPA further concludes
                                             to an automatic emergency well shut-in                  except for the delayed repair                           that this issue must be addressed
                                             and where the rule, if applied as                       requirement and could be higher than                    immediately to avoid these unintended
                                             suggested in the preamble, could have                   the emissions from continuing to delay                  consequences. Because the proposed 2-
                                             unintended consequences.2 Where well                    repair. For these reasons, not requiring                year stay or proposed phase-in would
                                             sites have a compressor that collects                   repair during unplanned or emergency                    offer only a temporary relief from this
                                             flash gas from a low pressure separator                 vent blowdowns would limit excess                       requirement, which the EPA has already
                                             or a vapor recovery unit that collects                  emissions from avoidable blowdowns.                     concluded to be unacceptable, the EPA
                                             flash gas from storage vessels, there are                  In addition to emissions from                        is not finalizing a stay or phase-in of
                                             certain safety measures put in place in                 avoidable blowdowns described above,                    this requirement. Instead, the EPA is
                                             the event these compressors                             several commenters raised concerns                      taking final action to amend the delayed
                                             unexpectedly go offline. Depending on                   about extended gas service disruption.5                 repair requirement to remove the terms
                                             the remoteness of the well site, one                    For example, many natural gas                           ‘‘unplanned’’ and ‘‘emergency’’ from the
                                             safety measure available is to                          transmission pipelines are operating                    list of events that would require
                                             automatically shut in the well to                       year-round at or near capacity, with                    completion of delayed repairs.
                                             prevent the release of gas from pressure                little redundancy in the supply chain.
                                             relief valves. In these, and other similar              Further, some regions do not have                       B. Alaskan North Slope
                                             emergency shut-in situations, the                       access to alternate gas supplies. As we                    We are finalizing amendments to the
                                             equipment is not depressurized so the                   have learned, the requirement for                       fugitive emission monitoring
                                             well can be brought back into                           delayed repairs during unplanned or                     requirements for well sites located on
                                             production as soon as possible.                         emergency blowdowns can result in the                   the Alaskan North Slope.8 New well
                                             However, by requiring completion of the                 unintended consequence of forcing                       sites that startup production between
                                             delayed repair during such shut-in                      owners or operators to choose between                   September and March must conduct
                                             events, equipment at this well site that                meeting contractual commitments                         initial monitoring within 6 months of
                                             have components placed on delayed                       governed by the Federal Energy                          the startup of production 9 or by June
                                             repair would have to be depressurized                   Regulatory Commission or complying                      30, whichever is later. Well sites that
                                             and blown down, resulting in emissions                  with leak repair requirements.6 The                     startup production between April and
                                             that would not have occurred except for                 disruption to service can also result in                August must continue to meet the 60-
                                             the delayed repair requirement and                      loss of home heating during the winter                  day initial monitoring requirement in
                                             could be higher than the emissions from                 and the loss of natural gas supply to                   the 2016 Rule. Similarly, well sites that
                                             continuing to delay repair.                             power plants during periods when                        are modified between September and
                                                Similar scenarios were provided by                   electricity demands are higher. This is                 March must conduct initial monitoring
                                             the commenters for compressor stations,                 clearly an unintended and undesirable                   within 6 months of the first day of
                                             where changes in horsepower demand,                     result and should, therefore, be avoided,               production for each collection of
                                             upsets of the compressor unit or the                    as demonstrated by the leak repair                      fugitive emissions components or by
                                             station, lightning strikes, power loss,                 requirement by the California Air                       June 30, whichever is later. Further, all
                                             floods, unplanned maintenance or                        Resource Board (CARB).7 We note that                    well sites located on the Alaskan North
                                             repairs of a pipeline, fire, third-party                CARB’s leak repair requirement, which                   Slope that are subject to the fugitive
                                             damage, or instrumentation outages can                  CARB commented as being more                            emissions requirements must conduct
                                             result in unplanned or emergency                        stringent than the EPA’s leak repair                    annual monitoring, instead of the
                                             blowdowns of certain equipment at a                     requirement in the 2016 Rule, does not                  semiannual monitoring required for
                                             compressor station.3 When the                           require repair, if it would disrupt                     other well sites. Subsequent annual
                                             compressor station is not operating, gas                service.                                                monitoring must be conducted at least
                                             will continue to enter gathering lines                     After examining the comments and                     9 months apart, but no more than 12
                                             until upstream wells are routed to other                supporting data on this issue, the EPA                  months apart. The specific repair,
                                             compressor stations. This gas must be                   agrees with the commenters that                         recordkeeping, and reporting
                                             vented or flared to prevent                             delayed repairs should not be required                  requirements remain unchanged from
                                             overpressurization of the gathering                                                                             the 2016 Rule, except as discussed in
                                                                                                        5 See Docket ID Nos. EPA–HQ–OAR–2010–0505–
                                             lines. Repairs can require skilled labor                                                                        section IV.A of this preamble.
                                                                                                     12430, EPA–HQ–OAR–2010–0505–12436, EPA–
                                             crews and custom fabricated parts, both                 HQ–OAR–2010–0505–12446, EPA–HQ–OAR–
                                                                                                                                                                Under the 2016 Rule, the initial
                                             of which must be scheduled and                          2010–0505–12447, and EPA–HQ–OAR–2010–0505–              monitoring survey of fugitive emissions
                                             ordered in advance.4 Given the                          12454.                                                  components at a new well site must be
                                             unpredictability of these unplanned or                     6 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                                                                                                                                             conducted within 60 days of startup of
                                                                                                     12447.                                                  production at the new well site. For a
                                             emergency events, gas may need to be                       7 Greenhouse Gas Emission Standards for Crude

                                                                                                     Oil and Natural Gas Facilities, section 95669,
                                                                                                                                                             collection of modified fugitive
                                               2 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                                                                                     California Code of Regulations, Title 17, Division 3,   emissions components, the initial
                                             12446.                                                  Chapter 1, Subchapter 10 Climate Change, Article        monitoring survey must be conducted
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                                               3 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                                                                                     4, Subarticle 13. Effective date October 1, 2017.       within 60 days of production after the
                                             12447.                                                  This regulation has a phase-in period from January
                                               4 See Docket ID Nos. EPA–HQ–OAR–2010–0505–            1, 2018 to December 31, 2019, where fugitive
                                                                                                                                                             modification. The rule requires
                                             12421, EPA–HQ–OAR–2010–0505–12424, EPA–                 emissions are defined as a leak of 10,000 parts per
                                                                                                                                                               8 Alaskan North Slope is defined in 40 CFR
                                             HQ–OAR–2010–0505–12430, EPA–HQ–OAR–                     million (ppm) or greater using EPA Method 21 on
                                             2010–0505–12436, EPA–HQ–OAR–2010–0505–                  a quarterly monitoring frequency. After January 1,      60.5430a as.
                                             12446, EPA–HQ–OAR–2010–0505–12447, and                  2020, that leak definition decreases to 1,000 ppm         9 Startup of production is defined in 40 CFR

                                             EPA–HQ–OAR–2010–0505–12454.                             on the same monitoring frequency.                       60.5430a as.



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                                             10632              Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations

                                             semiannual monitoring thereafter. In                    on the Alaskan North Slope; further,                  February. Based on average
                                             response to our NODA soliciting                         even with the additional flexibility,                 temperatures during those months, it is
                                             additional comments and information                     semiannual monitoring at well sites                   unlikely that semiannual monitoring
                                             on implementation challenges, the EPA                   located on the Alaskan North Slope                    would be possible in this window.
                                             received comments expressing                            could still be required at a time when                Further, in order for well sites on the
                                             immediate concerns with the timing for                  the temperature is below the operating                Alaskan North Slope to conduct
                                             conducting fugitive emissions                           temperature of the monitoring                         semiannual monitoring, the monitoring
                                             monitoring at well sites on the Alaskan                 instruments.                                          events would be limited to April/May
                                             North Slope. The commenters noted                          In light of the technical feasibility              and October/November, which creates
                                             that these concerns were raised in                      issue discussed previously, the EPA                   additional difficulties with scheduling
                                             comments on the proposed rule in 2015,                  concludes that the current fugitive                   monitoring, repairs, and resurveys
                                             in addition to petitions for                            emissions monitoring frequencies for                  within the required periods.
                                             reconsideration following promulgation                  well sites do not reflect the BSER for                   The EPA concludes that the Alaskan
                                             of the 2016 Rule. The commenters                        monitoring fugitive emissions                         North Slope issue must be addressed
                                             cautioned that the monitoring                           components at well sites on the Alaskan               immediately given that we are currently
                                             technology specified in the 2016 Rule                   North Slope, and that a different fugitive            well into the cold weather months.
                                             (i.e., optical gas imaging (OGI) and the                emissions monitoring schedule is                      Because both the proposed 2-year stay
                                             instruments for EPA Method 21) cannot                   warranted for well sites located on the               and the suggestion that we extend the
                                             reliably detect methane emissions at                    Alaskan North Slope. Specifically, the                phase-in period for the fugitive
                                             well sites on the Alaskan North Slope                   EPA has amended the 2016 Rule to                      emissions requirements would offer
                                             for a significant portion of the year due               require that new or modified well sites               only temporary relief from the initial
                                             to the lengthy period of extreme cold                   that startup production between                       and subsequent monitoring
                                             temperatures.10 According to                            September and March conduct initial                   requirements at well sites, which the
                                             manufacturer specifications, OGI                        monitoring within 6 months of the                     EPA has already concluded to be
                                             cameras, which the EPA identified in                    startup of production or by June 30,                  inappropriate for the reasons stated
                                             the 2016 Rule as the BSER for                           whichever is later. We believe that the               above, the EPA is not finalizing a stay
                                             monitoring fugitive emissions at well                   amendment would assure that initial                   or a longer phase-in of these
                                             sites, are not designed to operate at                   monitoring take place when both OGI                   requirements. Rather, the EPA is taking
                                             temperatures below ¥4 °F,11 and the                     and EPA Method 21 are operable.                       final action to amend the 2016 Rule to
                                             monitoring instruments for EPA Method                      In addition, the EPA is amending the               provide a separate fugitive emissions
                                             21, which the 2016 Rule provides as an                  2016 Rule to require annual (instead of               monitoring schedule for well sites
                                             alternative to OGI, are not designed to                 semiannual) monitoring of fugitive                    located on the Alaskan North Slope to
                                             operate below +14 °F.12 One commenter                   emissions at well sites on the Alaskan                accommodate its arctic climate.
                                             provided data, and the EPA confirmed                    North Slope. During the rulemaking for                V. Summary of Significant Comments
                                             with its own analysis, that temperatures                the 2016 Rule, the EPA had evaluated                  and Responses
                                             below 0 0F are a common occurrence,                     annual monitoring at well sites and
                                             on the Alaskan North Slope between                      concluded that semiannual monitoring                     The EPA received a large number of
                                             November and April.13 In light of the                   reflected the BSER for detecting fugitive             comments covering a wide range of
                                             above, there is no assurance that the                   emissions at well sites. During the                   topics in response to our June 16, 2017,
                                             initial and semiannual monitoring that                  rulemaking for the 2016 Rule, we stated               proposal and November 8, 2017, NODA.
                                             must occur during that period of time                   in response to a comment that there                   As discussed in sections II and IV of this
                                             are technically feasible.                               would be months during the semiannual                 preamble, the EPA is still in the process
                                                During the rulemaking for the 2016                   monitoring periods when the OGI                       of reviewing many of these comments.
                                             Rule, in response to comments                           camera could work effectively.14                      As noted previously, however, in the
                                             expressing concerns with cold                           However, after reconsidering the                      course of this review, the EPA has
                                             temperatures in several regions, the EPA                information provided by commenters                    identified two specific provisions of the
                                             had attempted to address the issue by                   and confirmed by the EPA, we now                      fugitive emissions requirements in the
                                             providing additional flexibility in the                 conclude that monitoring may not be                   2016 Rule that pose significant and
                                             form of allowing consecutive                            technically feasible on the Alaskan                   immediate compliance concerns, and
                                             semiannual events to take place every 4                 North Slope for close to 6 consecutive                EPA is taking final action here to make
                                             to 6 months. However, as commenters                     months (November through April) due                   targeted amendments to the 2016 Rule
                                             on the NODA correctly observed, the                     to the extreme cold temperatures that                 to address these two concerns. The
                                             EPA did not address the issue as it                     could render the monitoring                           Agency is still evaluating comments
                                             relates to initial monitoring at well sites             instruments inoperable. Therefore, the                related to other issues raised in the
                                                                                                     EPA now concludes that annual                         proposal and the NODA and is not
                                               10 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                                                                                     monitoring more accurately reflects the               taking final action with respect to those
                                             12434.                                                                                                        issues at this time. Accordingly, we are
                                               11 See FLIR Systems, Inc. product specifications      BSER for monitoring fugitive emissions
                                             for GF300/320 model OGI cameras at http://              at well sites on the Alaskan North Slope              not responding to those comments at
                                             www.flir.com/ogi/display/?id=55671.                     because of the infeasibility of                       this time. This section summarizes the
                                               12 See Thermo Fisher Scientific product
                                                                                                     semiannual monitoring. The                            significant comments relevant to the
                                             specification for TVA–2020 at https://                                                                        amendments in this final action, and
                                             assets.thermofisher.com/TFS-Assets/LSG/
                                                                                                     impracticability is demonstrated by the
                                             Specification-Sheets/EPM-TVA2020.pdf.                   following example. If initial monitoring              our response to those comments.
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                                               13 See information on average hourly                  were conducted in August, the first                   A. The EPA’s Legal Authority
                                             temperatures from January 2010 to January 2018 at       semiannual monitoring would be
                                             the weather station located at Deadhorse Alpine                                                                  The EPA received numerous
                                             Airstrip, Alaska. Obtained from the National
                                                                                                     required between December and
                                                                                                                                                           comments on the legal authorities for its
                                             Oceanic and Atmospheric Administration
                                             (NOAA)’s National Centers for Environmental               14 See Chapter 4 of the EPA’s Responses to Public   proposal to stay certain requirements of
                                             Information and summarized in Docket ID No.             Comments, page 4–273 located at Docket ID No.         the 2016 Rule for 2 years and for the
                                             EPA–HQ–OAR–2010–0505.                                   EPA–HQ–OAR–2010–0505–7632.                            alternative suggestion of providing


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                                                                 Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations                                            10633

                                             longer phase-in periods for those                       produce the improved performance                      and compressor stations, which resulted
                                             requirements. Because this final rule                   necessary to meet the standard.’’ 17                  in the work practice standards
                                             does not involve staying or phasing in                     The commenters further discussed the               promulgated in that rule. As explained
                                             any requirement in the 2016 Rule,                       holding in the National Association of                below in this section and elsewhere in
                                             comments specific to the proposed stay                  Home Builders case in 2012. ‘‘The fact                this notice, in the process of the current
                                             and phase-in are deemed outside of the                  that the original [rule] was consistent               rulemaking, the EPA has identified two
                                             scope of this final action. The EPA is,                 with congressional intent is irrelevant as            narrow provisions of the fugitive
                                             therefore, not responding to these                      long as the amended rule is also                      emissions requirements that pose
                                             comments and is not addressing                          ‘permissible under the statute.’ ’’ 18 In             immediate compliance concerns. The
                                             whether such authority exists.                          that case, the petitioners acknowledged               first issue concerns the potential that
                                                                                                     that, although they believed the original             the current requirements for delayed
                                                This final rule amends two aspects of
                                                                                                     rule was better, the amended rule was                 repairs could result in an increase
                                             the fugitive emissions requirements in
                                                                                                     permissible. Oral Arg. Recording at                   (instead of a reduction) of emissions and
                                             the 2016 Rule, which was promulgated
                                                                                                     17:40-:43. As Fox made clear, that                    service disruption. The other issue
                                             pursuant to the EPA’s authority to set
                                                                                                     ‘‘suffices’’ as far as the court is                   concerns the technical feasibility of
                                             NSPS standards pursuant to CAA
                                                                                                     concerned. Fox, 556 U.S. at 515.                      complying with the timeframe specified
                                             section 111(b) according to the
                                                                                                     Further, as Fox noted, the Supreme                    in the 2016 Rule for monitoring fugitive
                                             procedures under CAA section 307(d).
                                                                                                     Court has ‘‘neither held nor implied that             emissions at well sites in the Alaskan
                                             Summarized below are significant
                                                                                                     every agency action representing a                    North Slope due to its extreme cold
                                             comments on the EPA’s authority under                                                                         temperature for a lengthy period of time,
                                             CAA sections 111(b) and 307(d) to                       policy change must be justified by
                                                                                                     reasons more substantial than those                   which could render the monitoring
                                             amend a previously promulgated NSPS.                                                                          instrument inoperable. After examining
                                                                                                     required to adopt a policy in first
                                                Comment: The EPA received general                    instance.’’ Fox, 556 U.S. at 514 (citing              the comments and information on these
                                             comments on the EPA’s legal authority                   Motor Vehicle Manufacturers Ass’n of                  two specific concerns, we conclude that
                                             to amend the 2016 Rule under CAA                        the United States, Inc., et al., v. State             the BSER and the resulting fugitive
                                             section 111. One commenter stated that                  Farm Mutual Automobile Insurance Co.,                 emissions requirements in the 2016
                                             any revisions to the 2016 Rule must                     et al., 463 U.S. 29, 42 (1983)). To the               Rule did not adequately address these
                                             follow the substantive and procedural                   contrary, according to the commenters,                two compliance concerns and that
                                             requirements found in CAA section 111                   the State Farm case affirmed that ‘‘[a]n              revision is warranted. The revision is
                                             and 307(d).15 In order the meet these                   agency’s view of what is in the public                based on comments, data, and other
                                             requirements and amend the NSPS, the                    interest may change, either with or                   information submitted during the
                                             commenter stated that the EPA must                      without a change in circumstances.’’                  rulemaking process, as well as our own
                                             justify any revisions as being consistent               State Farm, 463 U.S. at 57 (quoting                   analyses, all of which can be found in
                                             with the statutory mandate, explain the                 Greater Boston Television Corp. v. FCC,               Docket ID No. EPA–HQ–OAR–2010–
                                             basis for the revision (including                       444 F.2d 841, 852 (D.C. Cir.1970)); see               0505. A more detailed discussion of our
                                             supporting record), and follow the                      Am. Trucking Ass’ns v. Atchison,                      revised analyses and amendment can be
                                             procedures established in CAA section                   Topeka & Santa Fe Ry. Co., et al., 387                found below in this section as well as
                                             111(b)(1)(B), 42 U.S.C. 7411(b)(1)(B).                  U.S. 397, 416 (1967) (declaring that an               in section IV of this preamble.
                                                The commenters further described the                 agency, ‘‘in light of reconsideration of              B. Delayed Repairs
                                             statute’s procedural requirements, such                 the relevant facts and its mandate, may                 Comment: Twelve commenters
                                             as a thorough review of specific factors,               alter its past interpretation and overturn            provided information related to the
                                             such as whether the standard reflects                   past administrative rulings’’). Nat’l                 requirements for delayed repairs in 40
                                             BSER, ‘‘the cost of those standards, any                Ass’n of Home Builders, 682 F.3d at                   CFR part 60, subpart OOOOa. Ten
                                             resulting nonair quality health and                     1037.                                                 commenters 19 supported a stay and/or
                                             environmental impacts, energy                              Response: The EPA agrees with the                  suggested specific changes to the
                                             requirements, the amount of air                         comment that it has authority to amend                regulation to address repairs during
                                             pollution reduced by the standards, and                 an NSPS when it demonstrates that such                unplanned and emergency vent
                                             how the standards may drive                             revision is consistent with the mandate               blowdowns, while two commenters 20
                                             technological innovation.’’ 16 The                      of section 111(b) of the CAA and                      opposed any changes to the requirement
                                             commenter stated that a revision to the                 reasonably explain the basis for the                  for delayed repairs.
                                             compliance date (as proposed) would                     revision based on the record before the                 The commenters that supported
                                             require a factual analysis that                         Agency, as required by section 307(d) of              changes reiterated comments contained
                                             demonstrated the new compliance date                    the CAA. The EPA has done so in this                  in their petitions for reconsideration
                                             reflected in the emission reductions                    final action and need not address at this             following the promulgation of the 2016
                                             achievable through the BSER. Further,                   time if this is the sole source of
                                             the commenter stated that standards                     authority that the EPA may have to                      19 See Docket ID No. EPA–HQ–OAR–2010–0505–

                                             must be promulgated that reflect                        amend or stay an NSPS.                                12417, Docket ID No. EPA–HQ–OAR–2010–0505–
                                             ‘‘improved design and operational                          A standard of performance                          12421, Docket ID No. EPA–HQ–OAR–2010–0505–
                                                                                                                                                           12422, Docket ID No. EPA–HQ–OAR–2010–0505–
                                             advance’’ that may not yet be realized                  promulgated under section 111(b) of the               12424, Docket ID No. EPA–HQ–OAR–2010–0505–
                                             by industry, ‘‘so long as there is                      CAA must reflect the BSER for that                    12430, Docket ID No. EPA–HQ–OAR–2010–0505–
                                             substantial evidence that such                          emission source. In the 2016 Rule, the                12436, Docket ID No. EPA–HQ–OAR–2010–0505–
                                             improvements are feasible and will                      EPA conducted BSER analyses for                       12446, Docket ID No. EPA–HQ–OAR–2010–0505–
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                                                                                                                                                           12447, Docket ID No. EPA–HQ–OAR–2010–0505–
                                                                                                     reducing fugitive emissions at well sites             12454, and Docket ID No. EPA–HQ–OAR–2010–
                                               15 See Docket ID No. EPA–HQ–OAR–2010–0505–                                                                  0505–12456.
                                             12451.                                                    17 See Sierra Club v. Costle 657 F.2d at 364 and      20 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                               16 See 80 FR 64510, 64538 (October 23, 2015)          Portland Cement Ass’n v. EPA, 665 F.3d 177, 190       12444, Docket ID No. EPA–HQ–OAR–2010–0505–
                                             (quoting Sierra Club v. Costle, 657 F.2d 298, 326,      (D.C. Cir. 2011).                                     12451 (part 1 of comments), and Docket ID No.
                                             347 (D.C. Cir. 1981)). See also 42 U.S.C. 7411(a)(1),     18 Nat’l Ass’n of Home Builders, et al., v. EPA,    EPA–HQ–OAR–2010–0505–12452 (part 2 of
                                             (b)(1)(B), (h)(1).                                      682 F.3d 1032, 1037 (citing Fox, 556 U.S. at 515).    comments).



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                                             10634              Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations

                                             Rule. The commenters stated that by                     suggests that since the leaks for which                 data received, only around 5-percent of
                                             requiring repairs during unplanned or                   repairs are delayed were found prior to                 leaks are placed on delay for repair.
                                             emergency events, the actual emissions                  any shutdown (whether planned or not),                  Further, unscheduled or emergency vent
                                             could be higher than the emissions of                   the company had time to make                            blowdowns are but one of many
                                             the delayed repair for that component.                  arrangements to obtain replacement                      scenarios where delayed repair must be
                                             For instance, requiring repairs during                  parts; thus, allowing repair during that                completed. Owners or operators are still
                                             unplanned or emergency events may                       next shutdown event. Further, the                       required to complete repairs on
                                             require venting of equipment that is not                commenter asserted that the EPA has                     components during the next scheduled
                                             being repaired and that would not                       provided no data to demonstrate why a                   compressor station shutdown, well
                                             otherwise be vented during that                         stay is necessary for the entire fugitive               shutdown, well shut-in, after a planned
                                             shutdown, potentially resulting in                      program to accommodate such a small                     vent blowdown, or within 2 years,
                                             emissions much larger than those of the                 set of leaks given that the data the EPA                whichever is earlier. Accordingly, the
                                             leak itself. Further, the commenters                    does have suggests the majority of leaks                requirement for delayed repair, as
                                             asserted that prolonged shutdowns may                   are repaired at the time of the                         amended, still requires that repairs
                                             be encountered while repairs are made,                  monitoring survey. Another                              occur as soon as possible while
                                             which would affect both upstream and                    commenter 24 asserted that the                          reducing the potential for unintended
                                             downstream users. Specifically, these                   requirement for delayed repairs is more                 emissions releases and service
                                             repairs could result in the need to vent                accommodating than it needs to be                       disruptions.
                                             or flare gas upstream at a production                   when compared to the requirements
                                                                                                     found in California’s rule. The                           As discussed earlier, this issue must
                                             facility if the midstream compressor                                                                            be addressed immediately to avoid
                                             station has to remain offline. Further,                 commenter explained, ‘‘California’s
                                                                                                     regulation requires leaks to be repaired                potentially increasing emissions and/or
                                             gas supply could be limited for                                                                                 disrupting gas supply. The EPA
                                             downstream users, causing critical                      within 14 calendar days, except for
                                                                                                     leaks involving critical components,                    acknowledges that there are other
                                             issues with the provision of power or                                                                           comments concerning other aspects of
                                             heat to end users reliance on natural                   which must be repaired by the end of
                                                                                                     the next process shutdown or within 12                  the requirements for delayed repair in
                                             gas.                                                                                                            the fugitive emissions requirements, and
                                                One commenter 21 provided specific                   months, whichever is sooner.’’
                                                                                                        Response: The EPA is amending the                    that the EPA continues to evaluate these
                                             data regarding components monitored                                                                             comments. Should any of these
                                                                                                     requirements for delayed repair in this
                                             under the fugitive program in 40 CFR                                                                            comments warrant additional changes to
                                                                                                     final action. Specifically, the EPA is
                                             part 60, subpart OOOOa. The                                                                                     the fugitive requirements, the EPA
                                                                                                     removing the terms ‘‘unplanned’’ and
                                             commenter references an evaluation                                                                              intends to address them separately.
                                                                                                     ‘‘emergency,’’ used in reference to vent
                                             performed on 22 of their compressor
                                                                                                     blowdowns and added the term                            C. Alaskan North Slope
                                             stations. This evaluation showed that
                                                                                                     ‘‘scheduled’’ before the list of scenarios
                                             95-percent of all leaks (345 of 362 leaks)
                                                                                                     when delayed repair must be                               Comment: Three commenters 26
                                             occurring at these stations between 2015
                                                                                                     completed. As several commenters                        provided comments related to
                                             and 2017 were repaired within 30 days,
                                                                                                     noted and as discussed in section IV.A                  compliance with the fugitive emissions
                                             leaving only 5-percent to be placed on
                                                                                                     of this preamble, completion of repair                  monitoring requirements in extreme
                                             a delayed repair. When repair was
                                                                                                     during an unscheduled or emergency                      cold weather conditions. These
                                             delayed, most repairs were completed
                                                                                                     event could require a blowdown of                       comments related to the limitations of
                                             within 90 days of leak detection. Two
                                                                                                     equipment that was not otherwise                        the monitoring technologies and worker
                                             commenters 22 suggested specific edits
                                                                                                     necessary in order to repair components                 safety concerns. The commenters stated
                                             to the regulation. Specifically, these
                                                                                                     on delayed repair. Due to the potential                 that the EPA should exempt well sites
                                             edits remove reference to the
                                                                                                     for increasing emissions, the current                   and compressor stations located on the
                                             requirement for repairs to be completed
                                                                                                     requirements for delayed repair do not                  Alaskan North Slope from the fugitive
                                             during unscheduled, planned, or
                                                                                                     reflect the BSER for addressing fugitive                emissions monitoring requirements. At
                                             emergency vent blowdowns and limits
                                                                                                     emissions at well sites and compressor                  a minimum, two commenters stated that
                                             repairs at compressor stations to
                                                                                                     stations. In addition, as discussed in                  the EPA should stay or extend the
                                             scheduled shutdowns for maintenance.
                                                                                                     section IV.A of this preamble, not                      compliance deadline for initial
                                             Further, these commenters suggested
                                                                                                     requiring delayed repair during                         monitoring at these well sites.
                                             additional language to require
                                                                                                     unscheduled vent blowdowns would                        Additionally, two commenters stated
                                             additional justification for delaying
                                                                                                     avoid the potential of service                          that extreme cold weather conditions
                                             repairs beyond a shutdown, requiring
                                                                                                     disruption. As mentioned in section                     can occur outside of the Alaskan North
                                             Administrator approval on a case-by-
                                                                                                     IV.A of this preamble, we note that                     Slope and these commenters requested
                                             case basis. Additional comments and
                                                                                                     under CARB’s leak repair                                similar stays or extensions of the
                                             information are discussed in section IV
                                                                                                     requirements,25 delayed repair is                       compliance deadlines for any location
                                             of this preamble.
                                                                                                     permitted if gas service is critical to                 experiencing these conditions. The
                                                In contrast, the two commenters that                 public gas system operation; thereby,                   commenters reiterated comments
                                             opposed changes to the delayed repair                   highlighting the importance of not                      submitted in the 2015 proposal and
                                             requirements cited a lack of information                disrupting gas service. According to the                subsequent petitions for
                                             to support either a stay or compliance                                                                          reconsideration. Specifically, the
                                             deadline extension. One commenter 23                    EPA–HQ–OAR–2010–0505–12452 (part 2 of                   commenters stated the technological
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                                                                                                     comments).                                              limitations and worker safety
                                               21 See Docket ID No. EPA–HQ–OAR–2010–0505–               24 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                             12430.                                                  12444.
                                                                                                                                                             considerations in the Arctic
                                               22 See Docket ID No. EPA–HQ–OAR–2010–0505–               25 Greenhouse Gas Emission Standards for Crude
                                             12421 and Docket ID No. EPA–HQ–OAR–2010–                Oil and Natural Gas Facilities, section 95669,            26 See Docket ID No. EPA–HQ–OAR–2010–0505–
                                             0505–12447.                                             California Code of Regulations, Title 17, Division 3,   12434, Docket ID No. EPA–HQ–OAR–2010–0505–
                                               23 See Docket ID No. EPA–HQ–OAR–2010–0505–            Chapter 1, Subchapter 10 Climate Change, Article        12436, and Docket ID No. EPA–HQ–OAR–2010–
                                             12451 (part 1 of comments) and Docket ID No.            4, Subarticle 13. Effective date October 1, 2017.       0505–12446.



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                                                                Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations                                                      10635

                                             environment warrant an exemption                        perform monitoring during a nearly 6-                 the flexibilities identified above assure
                                             from monitoring.                                        month period.31 As we are already well                that monitoring would not be required
                                                One commenter provided                               within this period, the EPA must act                  when the temperature on the Alaskan
                                             manufacturer specifications for three of                immediately to avoid requiring fugitive               North Slope is below the operating
                                             the commonly used monitoring                            emissions monitoring at well sites                    temperature of the monitoring
                                             instruments (OGI camera, toxic vapor                    located on the Alaskan North Slope                    instrument. The commenters reiterated
                                             analyzer (TVA), and multi gas                           when the average temperature there is                 this concern in the comments on the
                                             monitors).27 The commenter noted that                   below the operating temperature of any                proposed stay and NODA.
                                             the specifications indicate the lowest                  of the available monitoring instruments.                We revisited the issue and reviewed
                                             operating temperature for any of the                    Therefore, the EPA is amending 40 CFR                 both the relevant record for the 2016
                                             instruments is ¥4 °F.28 This commenter                  part 60, subpart OOOOa, to extend the                 Rule as well as additional information
                                             further provided average hourly                         initial monitoring deadline and allow                 received subsequent to the rulemaking.
                                             temperature by month for the years 2012                 annual fugitive emissions monitoring at               Based on this evaluation, we recognized
                                             through 2014. This data indicated that                  well sites located on the Alaskan North               that a separate initial monitoring
                                             average hourly temperatures on the                      Slope. The EPA is not amending 40 CFR                 requirement was necessary for well sites
                                             Alaskan North Slope were below ¥4 °F                    part 60, subpart OOOOa, fugitive                      that startup production during the
                                             for approximately 5 months (December                    emissions monitoring requirements for                 months when it may be technically
                                             through April). Three commenters                        compressor stations located on the                    infeasible to meet the 60-day initial
                                             stated that while there is a waiver from                Alaskan North Slope because the                       monitoring requirement.
                                             quarterly monitoring at compressor                      commenters have stated there are no                     For instance, we examined the
                                             stations when average temperatures are                  compressor stations currently subject to              scenario of a new well starting
                                             below 0 °F for 2 consecutive months,                    40 CFR part 60, subpart OOOOa;                        production in September. Under the
                                             there is no similar waiver for                          therefore, there is no immediate                      current requirements, the initial
                                             semiannual monitoring well sites, nor a                 compliance concern to address for these               monitoring survey would be required
                                             waiver from initial monitoring at either                requirements at this time.32                          within 60 days of the startup of
                                             well sites or compressor stations. The                     As the commenters noted, the issues                production. This would put the
                                             commenters, therefore, stated the                       with conducting fugitive emissions                    deadline in October or November,
                                             combination of average hourly                           monitoring at well sites located on the               depending on when the well started
                                             temperatures on the Alaskan North                       Alaskan North Slope were raised in the                producing in September.35 The EPA
                                             Slope and the operating limitations of                  comments on the proposed 40 CFR part                  recognized from the data provided that
                                             the monitoring instruments pose                         60, subpart OOOOa. In the EPA’s                       these 2 months may have issues with
                                             immediate compliance implications.                      responses to public comments on this                  the feasibility of completing monitoring
                                               Finally, two of the commenters stated                 issue, the EPA stated that specific                   due to changing weather conditions
                                             that the EPA should exempt well sites                   flexibilities were added to the fugitive              moving into winter. If we set a deadline
                                             and compressor stations located on the                  emissions monitoring program to avoid                 for initial monitoring 6 months from
                                             Alaskan North Slope from fugitive                       potential compliance concerns on the                  startup of production, then monitoring
                                             emissions monitoring similar to the                     Alaskan North Slope. Specifically, the                would be required by March, when
                                             exemptions from leak detection and                      repair deadline was extended from 15 to               temperatures are still not warm enough
                                             repair at natural gas processing plants                 30 days, with an additional 30 days to                for instrument operation. While the
                                             provided in NSPS OOOO and                               complete the resurvey after repair;                   average temperatures may be
                                             OOOOa.29 These commenters stated the                    semiannual monitoring at well sites is                sufficiently warm starting in the middle
                                             reasons for applying an exemption to                    allowed every 4 to 6 months; when                     of spring, information discussed in the
                                             the natural gas processing plants are                   average temperatures are below 0 °F for               Response to Comments document raised
                                             also valid for well sites and compressor                2 consecutive months, quarterly                       concerns with melting snow, flooding,
                                             stations.                                               monitoring is waived at compressor                    and transportation issues during this
                                                Response: The EPA agrees with the                    stations, and Method 21 was added as                  time.36 Additionally, we are concerned
                                             commenters that available monitoring                    an alternative method for leak detection              with potentially constraining affected
                                             technologies (OGI and, for EPA Method                   and resurvey.33 As one commenter                      sources’ ability to schedule and acquire
                                             21, TVA and multi gas meters) are not                                                                         requisite personnel and equipment if we
                                                                                                     noted, the EPA recognized the
                                             designed to operate below ¥4 °F or +14                                                                        were to require all well sites that start
                                                                                                     challenges with monitoring instrument
                                             °F, respectively.30 In addition to the                  operation at low temperatures for
                                                                                                                                                           production between September and
                                             information provided by the                             compressor stations, but did not extend
                                                                                                                                                           March to conduct initial monitoring in
                                             commenters, information from the                        a similar waiver from monitoring for
                                                                                                                                                           April or May. These well sites would
                                             NOAA demonstrate average                                well sites.34 Further, it is not clear that
                                                                                                                                                           forever be locked into performing both
                                             temperatures on the Alaskan North                                                                             initial and all subsequent monitoring at
                                             Slope make it technically infeasible to                   31 See information on average hourly                the same time each year. We do not
                                                                                                     temperatures from January 2010 to January 2018 at     believe that it is appropriate to place
                                               27 See Docket ID No. EPA–HQ–OAR–2010–0505–            the weather station located at Deadhorse Alpine       such constraint on the well site’s ability
                                             12434.                                                  Airstrip, Alaska. Obtained from NOAA’s National       to schedule monitoring events. Based on
                                               28 See FLIR Systems, Inc. Product specifications      Centers for Environmental Information and
                                             for GF300/320 model OGI cameras at http://              summarized in Docket ID No. EPA–HQ–OAR–               average temperatures, we are confident
                                             www.flir.com/ogi/display/?id=55671.                     2010–0505.                                            that monitoring can occur during the
                                               29 See Docket ID No. EPA–HQ–OAR–2010–0505–              32 See ‘‘Discussion of Comment Submitted on the
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                                             12434 and Docket ID No. EPA–HQ–OAR–2010–                NODA with ConocoPhillips Alaska, Inc.’’ located at       35 Similar issues are realized by well sites starting

                                             0505–12446.                                             Docket ID No. EPA–HQ–OAR–2010–0505.                   up between October and March, such as extreme
                                               30 See FLIR Systems, Inc. product specifications        33 See ‘‘EPA’s Responses to Public Comments,’’      low temperatures, concerns with snow melt and
                                             for GF300/320 model OGI cameras at http://              Chapter 4, pages 4–267, 4–268, 4–273, and 4–276.      flooding, and logistical issues associated with
                                             www.flir.com/ogi/display/?id=55671 and Thermo           https://www.regulations.gov/document?D=EPA-HQ-        schedule flexibility.
                                             Fisher Scientific product specification for TVA–        OAR-2010-0505-7632.                                      36 See ‘‘EPA’s Responses to Public Comments,’’

                                             2020 at https://assets.thermofisher.com/TFS-Assets/       34 See Docket ID No. EPA–HQ–OAR–2010–0505–          Chapter 4, page 4–268. https://www.regulations.
                                             LSG/Specification-Sheets/EPM-TVA2020.pdf.               12446.                                                gov/document?D=EPA-HQ-OAR-2010-0505-7632.



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                                             10636                  Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations

                                             summer months. Therefore, we have                              surveys must occur at least every 12                    the cost savings or forgone benefits of
                                             amended the 2016 Rule to require that,                         months, with consecutive monitoring                     amending the requirements for delayed
                                             for each new or modified well site                             surveys conducted at least 9 months                     repair requirement related to
                                             located on the Alaskan North Slope that                        apart. The requirements for repair,                     unscheduled or emergency events.
                                             starts production between September                            recordkeeping, and reporting remain the                   In order to determine the impacts of
                                             and March, the owner or operator has 6                         same as those in the 2016 Rule.                         the amendments to the fugitive
                                             months, or until June 30, whichever is                         Recognizing there are several months in                 emissions requirements for well sites
                                             later, to complete initial monitoring of                       which temperatures are within the                       located on the Alaskan North Slope, we
                                             the fugitive emissions components. The                         operating temperature range for the                     used the same assumptions and
                                             amendments, which provide both a time                          monitoring instruments, the EPA
                                                                                                                                                                    methods used to estimate impacts of the
                                             frame and specific date, would require                         concludes owners or operators have
                                                                                                                                                                    2016 Rule. Specifically, we used the
                                             monitoring as soon as feasible while                           enough flexibility to complete
                                                                                                                                                                    number of affected sources located on
                                             avoiding the concerns described above.                         monitoring surveys in this timeframe.
                                             For each new or modified well site                                                                                     the Alaskan North Slope, and the cost
                                                                                                            Any further amendments for the
                                             located on the Alaskan North Slope that                                                                                and emission reductions estimated for
                                                                                                            Alaskan North Slope will be addressed
                                             starts production between September                                                                                    well sites at semiannual and annual
                                                                                                            separately. This amendment only
                                             and March, the owner or operator has 6                                                                                 fugitive monitoring frequencies that
                                                                                                            applies at well sites located on the
                                             months, or until June 30, whichever is                                                                                 were assumed in the 2016 Rule. The
                                                                                                            Alaskan North Slope. All other well
                                             later to complete initial monitoring of                                                                                cost savings and emission reductions
                                                                                                            sites must continue to comply with the
                                             the fugitive emissions components.                                                                                     estimated as a result of these
                                                                                                            initial, semiannual, or quarterly
                                                The EPA agrees with the commenters                          monitoring requirements, as                             amendments are presented in Tables 2
                                             that there are immediate compliance                            appropriate.                                            and 3, respectively. For more
                                             concerns due to the operating                                     With respect to comments on                          information on the assumptions used in
                                             limitations of monitoring instruments.                         exempting facilities located on the                     this analysis, as well as the costs and
                                             Therefore, we are finalizing an                                Alaskan North Slope from fugitive                       emission reductions for fugitive
                                             amendment to the timeframe for the                             monitoring requirements, changes to                     emissions requirements at well sites, see
                                             fugitive emission monitoring program                           low temperature waivers, or any other                   the Background Technical Support
                                             for well sites located on the Alaskan                          concerns raised by the commenters                       Document for the Final New Source
                                             North Slope. Specifically, owners or                           related to cold weather, addressing them                Performance Standards 40 CFR part 60,
                                             operators must meet the initial                                will likely require additional                          subpart OOOOa (TSD) located at Docket
                                             compliance deadline of 60 days from                            information and analysis. The EPA will                  ID No. EPA–HQ–OAR–2010–0505–
                                             the startup of production, unless the                          continue evaluating these comments.                     7631. Note that the costs in the TSD are
                                             well site starts production between                                                                                    in 2012 dollar years, and the cost
                                             September and March. Those well sites                          VI. Impacts of the Final Amendments                     savings presented here are in 2016
                                             that startup production between                                  Although there will be cost savings                   dollar years. The amended fugitive
                                             September and March must complete                              related to not requiring delayed repairs                monitoring requirements for well sites
                                             initial monitoring within 6 months of                          during unscheduled or emergency                         located on the Alaskan North Slope will
                                             startup of production or by June 30,                           events, as well as forgone benefits                     save approximately $24,000 per year in
                                             whichever is later. Additionally, owners                       related to the reductions of fugitive                   compliance costs, after accounting for
                                             or operators must perform annual                               emissions that might have occurred                      forgone natural gas recovery. This
                                             monitoring for fugitive emissions,                             following these repairs, the EPA does                   amendment will also result in
                                             following the initial monitoring survey                        not have cost or economic data related                  approximately 34 short tons of forgone
                                             at all affected well sites located on the                      to this provision because of the                        methane emission reductions, or 772
                                             Alaskan North Slope, regardless of the                         unplanned nature of these events.                       tons of carbon dioxide equivalent
                                             startup date. Subsequent monitoring                            Therefore, we are unable to determine                   (CO2E).

                                              TABLE 2—ESTIMATED COST SAVINGS OF THE AMENDED FUGITIVE MONITORING REQUIREMENTS ON THE ALASKAN NORTH
                                                                                            SLOPE
                                                                                                Compliance cost savings                          Total annualized cost savings         Total annualized cost savings
                                                                                                                                                             (3%)                                  (7%)
                                                                                                          Annual                Forgone
                                                                                  Capital cost                                                        W/o
                                                                                                         operating               product                           W/Product           W/o product       W/Product
                                                                                   savings                                                          product
                                                                                                        cost savings            recovery                           recovery             recovery         recovery
                                                                                                                                                   recovery

                                             NG Well Pads ..............                  $1,300             $29,000                  $6,700            $29,000         $22,000              $29,000         $22,000
                                             Oil Well Pads ...............                   110               2,400                     210              2,400           2,200                2,400           2,200

                                                  Total ......................              1,400                 31,000               6,900              31,000         24,000               31,000           24,000


                                              TABLE 3—ESTIMATED FORGONE EMISSION REDUCTIONS OF THE AMENDED FUGITIVE MONITORING REQUIREMENTS ON THE
                                                                                     ALASKAN NORTH SLOPE
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                                                                                                                                                 Forgone emission reductions                              Forgone
                                                                                                          Affected                                                                                       natural gas
                                                                                                        source count             Methane               VOC            HAP                 CO2E            savings
                                                                                                                               (short tpy 1)           (tpy)          (tpy)               (tpy)            (Mcf 2)

                                             NG Well Pads ..........................................                 30                    33                  9                 0                748           1,911



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                                                                      Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations                                                      10637

                                              TABLE 3—ESTIMATED FORGONE EMISSION REDUCTIONS OF THE AMENDED FUGITIVE MONITORING REQUIREMENTS ON THE
                                                                                ALASKAN NORTH SLOPE—Continued
                                                                                                                                                         Forgone emission reductions                        Forgone
                                                                                                                 Affected                                                                                  natural gas
                                                                                                               source count            Methane               VOC            HAP              CO2E           savings
                                                                                                                                     (short tpy 1)           (tpy)          (tpy)            (tpy)           (Mcf 2)

                                             Oil Well Pads ...........................................                      3                        1               0                 0              24             61

                                                   Total ..................................................                33                    34                  9                 0             772          1,972
                                                1 tons per year.
                                                2 thousand cubic feet.




                                             VII. Statutory and Executive Order                                    impact on small entities. An Agency                    Thus, Executive Order 13175 does not
                                             Reviews                                                               may certify that a rule will not have a                apply to this action.
                                               Additional information about these                                  significant economic impact on a
                                                                                                                                                                          H. Executive Order 13045: Protection of
                                             statutes and Executive Orders can be                                  substantial number of small entities if
                                                                                                                                                                          Children From Environmental Health
                                             found at http://www2.epa.gov/laws-                                    the rule relieves regulatory burden, has
                                                                                                                                                                          Risks and Safety Risks
                                             regulations/laws-and-executive-orders.                                no net burden, or otherwise has a
                                                                                                                   positive economic effect on the small                    This action is not subject to Executive
                                             A. Executive Order 12866: Regulatory                                  entities subject to the rule. This action              Order 13045 because it is not
                                             Planning and Review and Executive                                     finalizes amendments for two specific                  economically significant as defined in
                                             Order 13563: Improving Regulation and                                 requirements in the 2016 Rule. This                    Executive Order 12866, and because the
                                             Regulatory Review                                                     action will not increase the burden on                 EPA does not believe the environmental
                                               This action is not a significant                                    small entities subject to this rule. The               health or safety risks addressed by this
                                             regulatory action and was, therefore, not                             EPA prepared a final RFA analysis for                  action present a disproportionate risk to
                                             submitted to the Office of Management                                 the 2016 Rule, which is available as part              children. This action finalizes
                                             and Budget (OMB) for review.                                          of the Regulatory Impact Analysis in the               amendments for two specific
                                                                                                                   docket at Docket ID No. EPA–HQ–OAR–                    requirements in the 2016 Rule. Any
                                             B. Executive Order 13771: Reducing                                                                                           impacts on children’s health caused by
                                                                                                                   2010–0505–7630. We have, therefore,
                                             Regulations and Controlling Regulatory                                                                                       the amendments in the rule will be
                                                                                                                   concluded that this action will have no
                                             Costs                                                                                                                        limited, because the scope of the
                                                                                                                   net regulatory burden for all directly
                                                This action is considered an                                       regulated small entities.                              amendments is limited. The Agency,
                                             Executive Order 13771 deregulatory                                                                                           therefore, concludes it is more
                                             action. This final rule provides                                      E. Unfunded Mandates Reform Act                        appropriate to determine the impact on
                                             meaningful burden reduction by                                        (UMRA)                                                 children’s health in the context of any
                                             amending the requirement that                                            This action does not contain any                    substantive changes potentially
                                             components on a delayed repair must                                   unfunded mandate as described in                       proposed in the future as part of the
                                             conduct repairs during unscheduled or                                 UMRA, 2 U.S.C. 1531–1538, and does                     reconsideration of the 2016 Rule (as
                                             emergency vent blowdowns, and adding                                  not significantly or uniquely affect small             granted on April 18, 2017).
                                             flexibilities for the monitoring survey                               governments. The action imposes no
                                             requirements for well sites located on                                                                                       I. Executive Order 13211: Actions
                                                                                                                   enforceable duty on any state, local, or               Concerning Regulations That
                                             the Alaskan North Slope.                                              tribal governments or the private sector.              Significantly Affect Energy Supply,
                                             C. Paperwork Reduction Act (PRA)                                      F. Executive Order 13132: Federalism                   Distribution, or Use
                                               This action does not impose any new                                                                                           This action is not a ‘‘significant
                                             information collection burden under the                                 This action does not have federalism                 energy action’’ because it is not likely to
                                             PRA. The information collection                                       implications. It will not have substantial             have a significant adverse effect on the
                                             requirements in the final 40 CFR part                                 direct effects on the states, on the                   supply, distribution, or use of energy.
                                             60, subpart OOOOa have been                                           relationship between the national                      The basis for this determination can be
                                             submitted for approval to the OMB                                     government and the states, or on the                   found in the 2016 Rule (81 FR 35894).
                                             under the PRA. The Information                                        distribution of power and
                                             Collection Request (ICR) document                                     responsibilities among the various                     J. National Technology Transfer and
                                             prepared by the EPA has been assigned                                 levels of government.                                  Advancement Act (NTTAA)
                                             EPA ICR 2523.01. This action does not                                 G. Executive Order 13175: Consultation                    This rulemaking does not involve
                                             result in changes to the submitted ICR                                and Coordination With Indian Tribal                    technical standards.
                                             for 40 CFR part 60, subpart OOOOa, so                                 Governments                                            K. Executive Order 12898: Federal
                                             the information collection estimates of
                                                                                                                     This action does not have tribal                     Actions To Address Environmental
                                             project cost and hour burdens have not
                                                                                                                   implications, as specified in Executive                Justice in Minority Populations and
                                             been revised.
                                                                                                                   Order 13175. It will not have substantial              Low-Income Populations
                                             D. Regulatory Flexibility Act (RFA)                                   direct effects on tribal governments, on                 This action finalizes amendments for
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                                                I certify that this action will not have                           the relationship between the federal                   two specific requirements in the 2016
                                             a significant economic impact on a                                    government and Indian tribes, or on the                Rule. Any impacts on minority
                                             substantial number of small entities                                  distribution of power and                              populations and low-income
                                             under the RFA. In making this                                         responsibilities between the federal                   populations caused by the amendments
                                             determination, the impact of concern is                               government and Indian tribes, as                       in the rule will be limited, because the
                                             any significant adverse economic                                      specified in Executive Order 13175.                    scope of the amendments is limited. The


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                                             10638              Federal Register / Vol. 83, No. 48 / Monday, March 12, 2018 / Rules and Regulations

                                             Agency, therefore, concludes it is more                 whichever is later. Notwithstanding the               DEPARTMENT OF HOMELAND
                                             appropriate to determine the impact on                  preceding deadlines, for each collection              SECURITY
                                             minority populations and low-income                     of fugitive emissions components at a
                                             populations in the context of any                       well site located on the Alaskan North                Federal Emergency Management
                                             substantive changes potentially                         Slope, as defined in § 60.5430a, that                 Agency
                                             proposed in the future as part of the                   starts up production between September
                                             reconsideration of the 2016 Rule (as                    and March, you must conduct an initial                44 CFR Part 64
                                             granted on April 18, 2017).                             monitoring survey within 6 months of                  [Docket ID FEMA–2018–0002; Internal
                                             L. Congressional Review Act (CRA)                       the startup of production for a new well              Agency Docket No. FEMA–8521]
                                                                                                     site, within 6 months of the first day of
                                               This action is subject to the CRA, and                                                                      Suspension of Community Eligibility
                                                                                                     production after a modification of the
                                             the EPA will submit a rule report to
                                             each House of the Congress and to the                   collection of fugitive emission                       AGENCY:  Federal Emergency
                                             Comptroller General of the United                       components, or by the following June                  Management Agency, DHS.
                                             States. This action is not a ‘‘major rule’’             30, whichever is later.                               ACTION: Final rule.
                                             as defined by 5 U.S.C. 804(2).                          *      *      *    *      *
                                                                                                                                                           SUMMARY:   This rule identifies
                                             List of Subjects in 40 CFR Part 60                         (g) * * *                                          communities where the sale of flood
                                               Environmental protection,                                (1) Except as provided herein, a                   insurance has been authorized under
                                             Administrative practice and procedure,                  monitoring survey of each collection of               the National Flood Insurance Program
                                             Air pollution control, Reporting and                    fugitive emissions components at a well               (NFIP) that are scheduled for
                                             recordkeeping.                                          site within a company-defined area                    suspension on the effective dates listed
                                                                                                     must be conducted at least                            within this rule because of
                                               Dated: February 23, 2018.                                                                                   noncompliance with the floodplain
                                                                                                     semiannually after the initial survey.
                                             E. Scott Pruitt,                                                                                              management requirements of the
                                                                                                     Consecutive semiannual monitoring
                                             Administrator.                                                                                                program. If the Federal Emergency
                                                                                                     surveys must be conducted at least 4
                                               For the reasons set out in the                        months apart. A monitoring survey of                  Management Agency (FEMA) receives
                                             preamble, title 40, chapter I of the Code                                                                     documentation that the community has
                                                                                                     each collection of fugitive emissions
                                             of Federal Regulations is amended as                                                                          adopted the required floodplain
                                                                                                     components at a well site located on the
                                             follows:                                                                                                      management measures prior to the
                                                                                                     Alaskan North Slope must be conducted                 effective suspension date given in this
                                                                                                     at least annually. Consecutive annual                 rule, the suspension will not occur and
                                             PART 60—STANDARDS OF
                                             PERFORMANCE FOR NEW                                     monitoring surveys must be conducted                  a notice of this will be provided by
                                             STATIONARY SOURCES                                      at least 9 months apart.                              publication in the Federal Register on a
                                                                                                        (2) A monitoring survey of the                     subsequent date.
                                             ■ 1. The authority citation for part 60                 collection of fugitive emissions                      DATES: The effective date of each
                                             continues to read as follows:                           components at a compressor station                    community’s scheduled suspension is
                                                 Authority: 42 U.S.C. 7401 et seq.                   within a company-defined area must be                 the third date (‘‘Susp.’’) listed in the
                                                                                                     conducted at least quarterly after the                third column of the tables in this
                                             Subpart OOOOa—Standards of                              initial survey. Consecutive quarterly                 rulemaking.
                                             Performance for Crude Oil and Natural                   monitoring surveys must be conducted                  ADDRESSES: Information identifying the
                                             Gas Facilities for Which Construction,                  at least 60 days apart.                               current participation status of a
                                             Modification or Reconstruction
                                                                                                     *      *      *    *      *                           community can be obtained from
                                             Commenced After September 18, 2015
                                                                                                                                                           FEMA’s Community Status Book
                                                                                                        (h) * * *
                                             ■ 2. Section 60.5397a is amended by                                                                           (CSB).The CSB is available at https://
                                                                                                        (2) If the repair or replacement is                www.fema.gov/national-flood-
                                             revising paragraphs (f)(1), (g)(1) and (2),
                                                                                                     technically infeasible, would require a               insurance-program-community-status-
                                             and (h)(2) to read as follows:
                                                                                                     vent blowdown, a compressor station                   book.
                                             § 60.5397a What fugitive emissions GHG                  shutdown, a well shutdown or well                     FOR FURTHER INFORMATION CONTACT: If
                                             and VOC standards apply to the affected                 shut-in, or would be unsafe to repair
                                             facility which is the collection of fugitive                                                                  you want to determine whether a
                                                                                                     during operation of the unit, the repair              particular community was suspended
                                             emissions components at a well site and
                                                                                                     or replacement must be completed                      on the suspension date or for further
                                             the affected facility which is the collection
                                             of fugitive emissions components at a                   during the next scheduled compressor                  information, contact Adrienne L.
                                             compressor station?                                     station shutdown, well shutdown, well                 Sheldon, PE, CFM, Federal Insurance
                                             *       *    *     *    *                               shut-in, after a planned vent blowdown                and Mitigation Administration, Federal
                                                (f) (1) You must conduct an initial                  or within 2 years, whichever is earlier.              Emergency Management Agency, 400 C
                                             monitoring survey within 60 days of the                 *      *      *    *      *                           Street SW, Washington, DC 20472, (202)
                                             startup of production, as defined in                    [FR Doc. 2018–04431 Filed 3–9–18; 8:45 am]            212–3966.
                                             § 60.5430a, for each collection of                      BILLING CODE 6560–50–P                                SUPPLEMENTARY INFORMATION: The NFIP
                                             fugitive emissions components at a new                                                                        enables property owners to purchase
                                             well site or by June 3, 2017, whichever                                                                       Federal flood insurance that is not
                                             is later. For a modified collection of                                                                        otherwise generally available from
daltland on DSKBBV9HB2PROD with RULES




                                             fugitive emissions components at a well                                                                       private insurers. In return, communities
                                             site, the initial monitoring survey must                                                                      agree to adopt and administer local
                                             be conducted within 60 days of the first                                                                      floodplain management measures aimed
                                             day of production for each collection of                                                                      at protecting lives and new construction
                                             fugitive emission components after the                                                                        from future flooding. Section 1315 of
                                             modification or by June 3, 2017,                                                                              the National Flood Insurance Act of


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Document Created: 2018-11-01 08:51:57
Document Modified: 2018-11-01 08:51:57
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
DatesThis final rule is effective on March 12, 2018.
ContactMrs. Karen Marsh, Sector Policies and Programs Division (E143-05), Office of Air Quality Planning and Standards, Environmental Protection Agency, Research Triangle Park,
FR Citation83 FR 10628 
RIN Number2060-AT59
CFR AssociatedEnvironmental Protection; Administrative Practice and Procedure; Air Pollution Control and Reporting and Recordkeeping

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