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HomeMy WebLinkAboutDAQ-2024-0048571 DAQC-CI126560001-24 Site ID 12656 (B1) MEMORANDUM TO: FILE – PRICE RIVER ENERGY, LLC – Gordon Creek Compressor Facility THROUGH: Rik Ombach, Minor Source Oil and Gas Compliance Section Manager FROM: Kyle Greenberg, Environmental Scientist DATE: January 11, 2024 SUBJECT: FULL COMPLIANCE EVALUATION, Minor, Carbon County INSPECTION DATE: July 24, 2023 SOURCE LOCATION: SE/4 Sec. 32 T13S R8E Price, UT 84501 DIRECTIONS: 12 miles west of Helper, UT. 2 miles south of Helper on 191, take Consumer Road west for 9 miles. Then turn left on Benches Road and take that southwest for 2 miles, site will be on the right-hand side. SOURCE CONTACTS: Thomas Muchard, Owner t.muchard@priceriverenergy.com 713-907-8257 OPERATING STATUS: Operating PROCESS DESCRIPTION: Price River extracts and processes natural gas in the Gordon Creek Field. The gas is sent to the compressor station, where the station processes natural gas as it travels along the gas pipeline. The facility removes condensation from the gas product and pressurizes the gas, allowing it to reach its final destination. APPLICABLE REGULATIONS: Approval Order (AO) DAQE-AN126560008-22, dated January 21, 2022; 40 CFR Part 60 Subpart JJJJ SOURCE EVALUATION: Name of Permittee: Permitted Location: Price River Energy, LLC - Gordon Creek Compressor Facility 950 Echo Lane, Suite 200 SE/4 Sec. 32 T13S R8E Houston, TX 77024 Price, UT 84501 SIC Code: 1311: (Crude Petroleum & Natural Gas) 2 Section I: GENERAL PROVISIONS I.1 All definitions, terms, abbreviations, and references used in this AO conform to those used in the UAC R307 and 40 CFR. Unless noted otherwise, references cited in these AO conditions refer to those rules. [R307-101] I.2 The limits set forth in this AO shall not be exceeded without prior approval. [R307-401] I.3 Modifications to the equipment or processes approved by this AO that could affect the emissions covered by this AO must be reviewed and approved. [R307-401-1] I.4 All records referenced in this AO or in other applicable rules, which are required to be kept by the owner/operator, shall be made available to the Director or Director's representative upon request, and the records shall include the two-year period prior to the date of the request. Unless otherwise specified in this AO or in other applicable state and federal rules, records shall be kept for a minimum of two (2) years. [R307-401-8] I.5 At all times, including periods of startup, shutdown, and malfunction, owners and operators shall, to the extent practicable, maintain and operate any equipment approved under this AO, including associated air pollution control equipment, in a manner consistent with good air pollution control practice for minimizing emissions. Determination of whether acceptable operating and maintenance procedures are being used will be based on information available to the Director which may include, but is not limited to, monitoring results, opacity observations, review of operating and maintenance procedures, and inspection of the source. All maintenance performed on equipment authorized by this AO shall be recorded. [R307-401-4] I.6 The owner/operator shall comply with UAC R307-107. General Requirements: Breakdowns. [R307-107] I.7 The owner/operator shall comply with UAC R307-150 Series. Emission Inventories. [R307-150] I.8 The owner/operator shall submit documentation of the status of the new 637 hp compressor engine to the Director within 18 months from the date of this AO. This AO may become invalid if construction is not commenced within 18 months from the date of this AO or if construction is discontinued for 18 months or more. To ensure proper credit when notifying the Director, send the documentation to the Director, attn.: NSR Section. [R307-401-18] Status: Out of Compliance with Condition I.5. The source has been unresponsive in scheduling a stack test for the engines on-site and is not operating in a manner consistent with good air pollution control maintenance. There have been no known breakdowns that have caused excess emissions. An emissions inventory has not been required to date. Section II: SPECIAL PROVISIONS II.A The approved installations shall consist of the following equipment: II.A.1 Gordon Creek Compressor Facility II.A.2 One (1) 637 hp Compressor Engine (New) Fuel: Natural Gas Type: 4 Stroke, Lean Burn Manufacturing Date: November 30, 2006 Control: Oxidation Catalyst Applicable MACT: Subpart ZZZZ 3 II.A.3 One (1) Generator Engine Fuel: Natural Gas Type: 4 Stroke, Lean Burn Rating: 350 kW Control: Selective Catalytic Reduction Applicable NSPS: Subpart JJJJ Applicable MACT: Subpart ZZZZ II.A.4 II.A.5 One (1) Backup Generator Engine Fuel: Diesel Size: 547 hp Applicable NSPS: Subpart IIII Applicable MACT: Subpart ZZZZ Two (2) Storage Tanks Capacity: 400 barrels (each) Contents: Condensate and waste water containing lube oil II.A.6 One (1) Produced Water Tank Capacity: 400 barrels II.A.7 One (1) Glycol Dehydration Unit Rated Capacity: 16 MMscf/day Status: The above listed equipment is accurate. The 637 hp Compressor’s Serial # is 6ZMO2826 and was rebuilt February 19, 2016. The 350 kW Generator’s Serial # is 5283700164 and has a manufacture date of June 2009. The Emergency Generator’s Serial # is 16501001332 and was manufactured November 2011. II.B Requirements and Limitations II.B.1 Site Wide Requirements II.B.1.a Unless otherwise specified in this AO, the owner/operator shall not allow visible emissions from any stationary point or fugitive emission source on site to exceed 10 percent opacity. [R307-401-8] II.B.1.a.1 Unless otherwise specified in this AO, opacity observations of emissions from stationary sources shall be conducted according to 40 CFR 60, Appendix A, Method 9. [R307-201-3] Status: In Compliance. No visible emissions were observed during the time of inspection. II.B.2 Compressor Engine Requirements II.B.2.a The owner/operator shall use only natural gas as fuel in the Compressor Engine. [R307-401-8] II.B.2.b The owner/operator shall install oxidation catalysts on the 637 HP compressor engine. All exhaust emissions from the compressor engine shall be routed through the oxidation catalysts prior to being released to the atmosphere. [R307-401-8] II.B.2.c The owner/operator shall not emit more than the following rates from the 637-hp Compressor Engine: Pollutant lb/hr NOx 2.81 CO 2.38 VOC 0.63. [R307-401-8] 4 II.B.2.c.1 Compliance Demonstration To demonstrate compliance with the emission limitations above, the owner/operator shall perform stack testing on the emissions unit according to the stack testing conditions contained in this AO. [R307-165-2, R307-401-8] II.B.2.c.2 Initial Test The owner/operator shall conduct an initial stack test on the emission unit within 180 days after startup of the emission unit. [R307-165-2] II.B.2.c.3 Test Frequency The owner/operator shall conduct a stack test on the emission unit within 5 years after the date of the most recent stack test of the emission unit. The Director may require the owner/operator to perform a stack test at any time. [R307-165-2, R307-401-8] Status: Out of Compliance. An initial Stack Test was not conducted on the compressor engine. A Compliance Advisory (DAQC-787-23) has been issued. II.B.3 Stack Testing Requirements II.B.3.a The owner/operator shall conduct any stack testing required by this AO according to the following conditions. [R307-401-8] II.B.3.a.1 Notification At least 30 days prior to conducting a stack test, the owner/operator shall submit a source test protocol to the Director. The source test protocol shall include the items contained in R307-165-3. If directed by the Director, the owner/operator shall attend a pretest conference. [R307-165-3, R307-401-8] II.B.3.a.2 Testing & Test Conditions The owner/operator shall conduct testing according to the approved source test protocol and according to the test conditions contained in R307-165-4. [R307-165-4, R307-401-8] II.B.3.a.3 Access The owner/operator shall provide Occupational Safety and Health Administration (OSHA)- or Mine Safety and Health Administration (MSHA)-approved access to the test location. [R307-401-8] II.B.3.a.4 Reporting No later than 60 days after completing a stack test, the owner/operator shall submit a written report of the results from the stack testing to the Director. The report shall include validated results and supporting information. [R307-165-5, R307-401-8] II.B.3.a.5 Possible Rejection of Test Results The Director may reject stack testing results if the test did not follow the approved source test protocol or for a reason specified in R307-165-6. [R307-165-6, R307-401-8] II.B.3.b Test Methods When performing stack testing, the owner/operator shall use the appropriate EPA-approved test methods as acceptable to the Director. Acceptable test methods for pollutants are listed below. [R307-401-8] II.B.3.b.1 Standard Conditions A. Temperature - 68 degrees Fahrenheit (293 K) B. Pressure - 29.92 in Hg (101.3 kPa) C. Averaging Time - As specified in the applicable test method [40 CFR 60 Subpart A, 40 CFR 63 Subpart A, R307-401-8] 5 II.B.3.b.2 NOx 40 CFR 60, Appendix A, Method 7; Method 7E; or other EPA-approved testing method as acceptable to the Director. [R307-401-8] II.B.3.b.3 VOC 40 CFR 60, Appendix A, Method 18; Method 25; Method 25A; 40 CFR 63, Appendix A, Method 320; or other EPA-approved testing method as acceptable to the Director. [R307-401-8] II.B.3.b.4 CO 40 CFR 60, Appendix A, Method 10 or other EPA-approved testing method as acceptable to the Director. [R307-401-8] Status: Unable to be determined. Initial and subsequent stack tests have not been submitted for the engines onsite. The condition’s status will be determined once stack tests have been submitted to the DAQ. II.B.4 Generator Engine Requirements II.B.4.a The owner/operator shall not operate the emergency engine on site for more than 100 hours per rolling 12-month period during non-emergency situations. There is no time limit on the use of the engines during emergencies. [R307-401-8] Status: In Compliance. The emergency generator has not exceeded 100 hours per rolling 12-months for the last 24 months. II.B.4.b To determine compliance with a rolling 12-month total, the owner/operator shall calculate a new 12-month total by the 20th day of each month using data from the previous 12 months. Records documenting the operation of the backup generator shall be kept in a log and shall include the following: a. The date the engine was used b. The duration of operation in hours c. The reason for emergency engine usage. [R307-401-8] Status: In Compliance. II.B.4.c The owner/operator shall use only natural gas as a fuel source in the 350 kW (II.A.3) Generator Engine. [R307-401-8] Status: In Compliance. II.B.4.d The owner/operator shall only use diesel fuel (e.g. fuel oil #1, #2, or diesel fuel oil additives) as fuel in the emergency generator (II.A.4). [R307-401-8] Status: In Compliance. II.B.4.e Visible emissions from the diesel-fired backup generator shall not exceed 20% opacity at any time. [R307-401-8] Status: Unable to be determined during the time of inspection. The diesel-fired backup generator was not operating during the time of inspection and has not operated in the past two years. II.B.4.f The owner/operator shall only combust diesel fuel that meets the definition of ultra-low sulfur diesel (ULSD), which has a sulfur content of 15 ppm or less. [R307-401-8] Status: In Compliance. 6 II.B.4.f.1 To demonstrate compliance with the ULSD fuel requirement, the owner/operator shall maintain records of diesel fuel purchase invoices or obtain certification of sulfur content from the diesel fuel supplier. The diesel fuel purchase invoices shall indicate that the diesel fuel meets the ULSD requirements. [R307-401-8] Status: In Compliance. II.B.5 Tank Requirements II.B.5.a The owner/operator shall not produce more than 5,333 barrels (1 barrel = 42 gallons) of condensate per rolling 12-month period. [R307-401-8] Status: In Compliance. The source provided data that zero barrels of condensate was produced in a rolling 12-month period. II.B.5.a.1 To determine compliance with a rolling 12-month total, the owner/operator shall calculate a new 12-month total by the 20th day of each month using data from the previous 12 months. Records of condensate production shall be kept for all periods when the plant is in operation. Condensate produced shall be determined by company and/or customer billing records. The records of condensate production shall be kept on a daily basis. [R307-401-8] Status: In Compliance. II.B.5.b The owner/operator shall keep the storage tank thief hatches closed and latched except during tank unloading or other maintenance activities. [R307-401-8] Status: Out of Compliance. The thief hatches were open during the time of inspection. The OGI camera did not detect any VOCs emitting from the open thief hatches. A Compliance Advisory (DAQC-787-23) has been issued. II.B.5.b.1 The owner/operator shall inspect the thief hatches at least once every six months to ensure the thief hatches are closed, latched, and the associated gaskets, if any, are in good working condition. Records of thief hatch inspections shall include the date of the inspection and the status of the thief hatches. [R307-401-8] Status: Out of Compliance. The thief hatches are not inspected every six months and records have not been kept. A Compliance Advisory (DAQC-787-23) has been issued. II.B.5.c The owner/operator shall load condensate into the tanker trucks by the use of submerged loading. [R307-401-8] Status: Unable to be determined during the time of inspection. According to Price River Energy the Gordon Creek Compressor Facility has not produced any condensate. Section III: APPLICABLE FEDERAL REQUIREMENTS In addition to the requirements of this AO, all applicable provisions of the following federal programs have been found to apply to this installation. This AO in no way releases the owner or operator from any liability for compliance with all other applicable federal, state, and local regulations including UAC R307. 40 CFR Part 60 Subpart JJJJ: Out of Compliance with section 60.4243(b)(2)(i). An initial stack test has not been conducted on the Waukesha H24GL generator engine SN:5283700164 within one year of the engine start up. A Compliance Advisory (DAQC-787-23) has been issued. 7 EMISSION INVENTORY: The emissions listed below are an estimate of the total potential emissions (PTE) from Price River Energy, LLC - Gordon Creek Compressor Facility on the Approval Order (AO) DAQE-AN126560008-22, dated January 21, 2022. PTE are supplied for supplemental purposes only. Criteria Pollutant PTE tons/yr CO2 Equivalent 7037.00 Carbon Monoxide 13.55 Nitrogen Oxides 23.37 Particulate Matter - PM10 0.06 Particulate Matter - PM2.5 0.06 Sulfur Dioxide 0.08 Volatile Organic Compounds 5.35 Hazardous Air Pollutant PTE lbs/yr Acetaldehyde (CAS #75070) 771 Acrolein (CAS #107028) 474 Formaldehyde (CAS #50000) 480 Generic HAPs (CAS #GHAPS) 184 Hexane (CAS #110543) 20 Methanol (CAS #67561) 230 PREVIOUS ENFORCEMENT ACTIONS: - Notice of Violation (DAQC-080-18) March 16, 2018 - Compliance Advisory (DAQC-787-23) August 1, 2023 - ESA (DAQC-1360-23) December 22, 2023 COMPLIANCE STATUS & RECOMMENDATIONS: In regards to Approval Order (AO) DAQE-AN126560008-22, dated January 21, 2022: Out of Compliance with conditions I.5, ll.B.2,c.2, II.B5.b, II.B5.b.1, and 40 CFR Part 60 Subpart JJJJ § 60.4243(b)(2)(i). A Compliance Advisory (DAQC-787-23) has been issued. HPV STATUS: Not Applicable. RECOMMENDATION FOR NEXT INSPECTION: Check for stack test results. NSR RECOMMENDATIONS: N/A ATTACHMENTS: N/A