DAQ-2024-008231

State
SPENCER J. COX
Goventor
DEIDRE HENDERSON
Lieutenant Governor
Department of
Environmental Quality
Kimberly D. Shelley
Executive Direclor
DTVISION OF AIR QUALITY
Bryce C. Bird
Director
May 16,2024 DAQC-37r-24
Site ID: 100514 (B1)
Sent Via Certified Mail No. 70190700000208346856
Ryan Zillner
Ovintiv USA Inc.
370l7th Street, Suite 1700
Denver, CO 80202-5632
Dear Mr. Zlllner:
Re: Early Settlement Agreement - Ovintiv USA Inc. - Lamb l-16 4-1, Duchesne County
On February 23,2024,the Utah Division of Air Quality (DAQ) issued a Compliance Advisory to
Ovintiv USA Inc. as a result of an inspection performed on January 3I,2024. Ovintiv USA Inc.
responded to the Compliance Advisory on March 26,2024. Based on the findings of the
inspection and response to the Compliance Advisory, the DAQ determined that Ovintiv USA Inc.
was in violation of:
l. Utah Administrative Code (UAC) R307-501-4 - General Requirements:
Emissions were found coming from a stuck separator dump valve, a one-inch gas supply
line, additionally the combustor was out and not firing.
Section l9-2-l15 of the Utah Code provides that violations of the Utah Air Conservation Act (the
Act) and/or any order issued thereunder may be subject to a civil penalty of up to $10,000 per day
for each violation. Based upon our civil penalty policy, we calculated a preliminary civil penalty
for the above listed violation(s) of $3,500.
The monetary amount of the DAQ settlement offer specified below is derived from a
pre-established schedule of penalties, which takes into account, among other factors, the
magnitude and severity of the violation, economic benefit, cooperation of the source as well as the
prior history of violations.
195 North 1950 West. Salt Lake City, UT
Mailing Address: P.O. Box 144820. Salt Lake City, UT 841144820
Telephone [phone]. Fax [phone]. T.D.D. [phone]
w.deq.uttrh.gov
Printed on 100% recycled paper
DAQC-37r-24
Page2
All parties we deal with, whether private, commercial, or govemmental are treated similarly in the
settlement process. Early Settlement Agreements are based on the evaluation of the same factors
and criteria in all cases. The DAQ acknowledges that the violation(s) on January 31,2024,was
addressed by Ovintiv USA Inc. on the same day as the inspection.
If you are interested in settling this violation, we are authorized to offer settlement in accordance
with the DAQ Penalty Policy as follows:
1. Ovintiv USA Inc. agrees to pay a reduced civil penalty in the sum of $2,800. Payment of a
civil penalty precludes further civil enforcement for the above described violation against
the named source. Ovintiv USA Inc. agrees to pay $2,800 of the stipulated penalty within
twenty (20) business days from the date you receive this Early Settlement Agreement.
2. The DAQ retains its authority to take any enforcement actions based on any and all
violations not specifically described above.
3. In the event any further violations of the Act, the Utah Air Quality Rules, the source's AO,
or the Director's Orders occur, the DAQ may consider the violation described above in
assessing a penalty for the subsequent violations, in accordance with the provisions of
Utah Administrative Code (UAC) R307- 1 30.
4. Entering into this Early Settlement Agreement shall not constitute an admission of
violation of the Act, the Utah Air Quality Rules, or the source's AO nor shall it be inferred
to be such an admission in any administrative or judicial proceeding. The described
violation will constitute part of the company compliance history for any purpose for which
such history is relevant to the DAQ.
At the DAQ's option, you may request a portion of the calculated civil penalty gravity component
to be used to complete a Supplemental Environmental Project (SEP) or credited toward the Utah
Environmental Mitigation Fund to benefit present and future air quality within Utah. For more
information, please contact the DAQ representative listed below.
This Early Settlement Agreement constitutes an offer of settlement and is not a demand for
payment. The Early Settlement Agteement reflects a reduced penalty for early settlement of this
matter.
If the above terms are acceptable to you, please sign and return this Early Settlement Agreement
and a check in the sum of $2,800. Submit the signed Early Settlement Agreement and check made
payable to the DAQ at the letterhead address within twenty (20) business days of receipt of this
Early Settlement Agreement. Electronic payments are also available on our website at:
https ://deq.utah. gov/ge nerall payment-portal.
DAQC-371-24
Page 3
You may write or call to request a settlement conference with the DAQ representative listed
below. A conference must be scheduled within twenty (20) business days of your receipt of this
Early Settlement Agreement. If we do not receive a signed copy of this Early Settlement
Agreement and payment or other correspondence from you within twenty (20) business days of
your receipt, we will assume that you are not interested in resolving this matter as outlined above.
This Early Settlement Agreement is intended to quickly resolve the non-compliance issues listed
above and requires the immediate attention of your company. Failure to resolve this matter as
outlined above may result in this offer being revoked and/or having this matter referred to a
formal enforcement process, including filing a judicial case to collect penalties (up to $10,000 per
day for each violation) and compel compliance in the state district court.
If you have any additional questions regarding this matter, please contact Rik Ombach at
801-536-4164 or by email at [e-mail].
Sincerely,
,4.2>/
Bryce C. Bird
Director
BCB:RO:SF:rh
cc: TriCounty Health Department
DAQC-371-24
Page 4
Acceptauce of Early Settlement Agreement
I have read the above Early Settlement Agreement and I agree to the terms and conditions thereof.
CompanyName: Ovintiv USA Inc,
Name:
Title:
Signature Date Telephone Number
Utah Division of Air Quality General Administrative Penalty Worksheet
Source:Lamb l-16 4-l
Site ID #:100514
IIPV:
DAQC-371-24
Page 5
Utah Administrative Code (UAC)
R307-130-1. Scope.
This policy provides guidance to the director in negotiating with air pollution sources penalties for
consent agreements to resolve non-compliance situations. It is designed to be used to determine a
reasonable and appropriate penalty for the violations based on the nature and extent ofthe violations,
consideration of the economic benefit to the sources of non-compliance, and adjustments for specific
circumstances.
Class:B
Violation Date(s):u3u24
Days to
' Resolution:I
Citation Description of the
Violation Days Category Range Daily
Penaltv
Accumulated
Penaltv
Utah Administrative
Code (UAC) 307-501
Emissions found at
l" gas supply line,
separator dump
valve, and unlit
combustor.
I B $2,ooo-
$7,000 $3,500 $3,500
0
0
Total $3,500
200h
Discount $700
Total
Penaltv $2,800
DAQC-37r-24
Page 6
Utah Administrative Code (UAC)
R307-130-2. Categories.
Violations are grouped in four general categories based on the potential for harm and the nature and
extent ofthe violations. Penalty ranges for each category are listed.
(1) Category A. $7,000-10,000 per day.
Violations with high potential for impact on public health and the environment including:
(a) Violation of emission standards and limitations of NESHAP.
(b) Emissions contributing to nonattainment area or PSD increment exceedances.
(c) Emissions resulting in documented public health effects and/or environmental damage.
(2) Category B. $2,000-7,000 per day.
Violations of the Utah Air Conservation Act, applicable State and Federal
regulations, and orders to include:
(a) Significant levels of emissions resulting from violations of emission limitations or
other regulations which are not within Category A.
(b) Substantial non-compliance with monitoring requirements.
(c) Significant violations ofapproval orders, compliance orders, and
consent agreements not within Category A.
(d) Significant and/or knowing violations of "notice of intent" and other notification
requirements, including those of NESHAP.
(e) Violations of reporting requirements of NESHAP.
(3) Category C. Up to $2,000 per day.
Minor violations of the Utah Air Conservation Act, applicable State and Federal Regulations and orders
having no significant public health or environmental impact to include:
(a) Reporting violations
(b) Minor violations of monitoring requirements, orders and agreements
(c) Minor violations of emission limitations or other regulatory requirements.
DAQC-37t-24
Page 7
(4) Category D.Up to $299.00.
Violations of specific provisions of R307 which are considered minor to include:
(a) Violation of automobile emission standards and requirements
(b) Violation of wood-buming regulations by private individuals
(c) Open buming violations by private individuals.
Utah Administrative Code (UAC)
R307-f 30-3. Adj ustments.
The amount of the penalty within each category may be adjusted and/or suspended in part based upon the
following factors:
(l) Good faith efforts to comply or lack of good faith. Good faith takes into account the openness in
dealing with the violations, promptness in correction of problems, and the degree of cooperation with the
State to include accessibility to information and the amount of State effort necessary to bring the source
into compliance.
(2) Degree of willfulness and./or negligence. In assessing willfulness and./or negligence, factors to be
considered include how much control the violator had over and the foreseeability of the events
constituting the violation, whether the violator made or could have made reasonable efforts to prevent the
violation, and whether the violator knew of the legal requirements which were violated.
(3) History of compliance or non-compliance. History of non-compliance includes consideration of
previous violations and the resource costs to the State ofpast and current enforcement actions.
(4) Economic benefit of non-compliance. The amount of economic benefit to the source of non-
compliance would be added to any penalty amount determined under this policy.
(5) Inability to pay. An adjustment downrvard may be made or a delayed payment schedule may be used
based on a documented inability of the source to pay.
Utah Administrative Code (UAC)
R307-130-4. Options.
Consideration may be given to suspension of monetary penalties in trade-off for expenditures resulting in
additional controls and/or emissions reductions beyond those required to meet existing requirements.
Consideration may be given to an increased amount of suspended penalty as a deterrent to future
violations where
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RYAN ZILLNER
OVINTIV USA INC.
370 ITTH ST, STE 17OO
DENVER, CO 80202-5632