DAQ-2024-005021

195 North 1950 West • Salt Lake City, UT
Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820
Telephone [phone] • Fax [phone] • T.D.D. [phone]
www.deq.utah.gov
Printed on 100% recycled paper
State of Utah

Department of
Environmental Quality

Kimberly D. Shelley
Executive Director

DIVISION OF AIR QUALITY
Bryce C. Bird
Director

SPENCER J. COX
Governor

DEIDRE HENDERSON
Lieutenant Governor
DAQC-092-24
Site ID 15803 (B1)

Kaylene Bridwell
Uinta Wax Operating, LLC
5128 Apache Plume Road
Fort Worth, TX 76107

Dear Ms. Bridwell:

Re: Compliance Advisory Response - Uinta Wax Operating LLC, 14-25D-37 BTR, Duchesne
County

The Utah Division of Air Quality (DAQ) received a response letter from Uinta Wax Operating LLC
(UWO) dated December 8, 2023, regarding a Compliance Advisory (DAQC-CA158030001-23) for
potential violations of the Utah Air Quality Rules. This information provides some clarification and is
addressed in the paragraphs below. Please respond within 15 days of receipt of this letter.

In Comment/Item #1: The rule DAQ is referencing is R307-510-5 as shown in the Compliance Advisory
and your response. The DAQ is not sure why Subparts OOOO and OOOOa are referenced and we do not
see any applicability of these Subparts to engines subject to this rule. Regardless, R307-510-5 applies only
to engines at sites “that began operations, installed new engines, or made modifications to existing engines
after January 1, 2016.”1 The DAQ would not expect records for an engine on the site that is not subject to
this regulatory requirement because of the applicability date of January 1, 2016. However, the well subject
to the Compliance Advisory was drilled in 2017 and falls under this regulation.

UWO explains that Crescent Point Energy owned the site at the time the rule was codified in 2018. DAQ
infers that UWO thinks Crescent Point Energy should have complied with the requirement at the time it
owned the facility. But this raises additional questions about the exact terms of sale from Crescent Point
Energy to UWO. Specifically, the responsibility to comply with environmental regulations and how
instances of existing non-compliance would be addressed. If UWO has not kept any recent records and has
not received any records from Crescent Point Energy, please explain how the company would comply with
this rule going forward.

In Comment/Item #2: The DAQ agrees that R307-511-5 does not explicitly require a statement that no
venting of associated gas occurred. However, for the inspector to determine whether the company
complies with this rule (and specifically with the recordkeeping requirement), it is necessary to know
whether there were venting incidents.

1 Utah Admin. Code r. R307-510-3(1).
" / 2 / 6 à Û Ù Û Ý
DAQC-092-24
Page 2

If no venting incidents occurred, the company did not have to keep records and did not violate R307-511-5
recordkeeping requirements. Please state how you are in compliance or out of compliance with the rule
and how you will comply with it going forward.

In Comment/Item #3: The applicable section in 40 CFR Subpart JJJJ is 40 CFR § 60.4244. Please
explain your compliance with this rule and give a complete evaluation of the engine for our review. If
some of the requirements are unfamiliar, we encourage UWO to discuss these requirements with the
inspector during future inspections. 40 CFR § 60.4244 has been effective and applicable for a number of
years and should be complied with in your ongoing operations and engine maintenance procedures.

In Comment/Items #4 and #5: The rule cited pertains to the owner or operator and record-keeping
requirements for the life of the engine. There are no provisions related to a change in ownership or
company record retention policies. If UWO has not performed its due diligence to come into compliance
with this rule, please explain how UWO intends to comply with this rule going forward. If UWO can
present a reasonable explanation or plan, the DAQ will consider closing out the potential violations in this
Compliance Advisory with a no further action notice.

For clarification, the DAQ issues Compliance Advisories when additional information or actions are
necessary to complete our inspection reports, and these are not considered formal notices of violations. As
stated in our Compliance Advisory letters, the document could lead to a No Further Action, Warning, or an
offer for an Early Settlement Agreement to quickly close out the Compliance Advisory based upon the
company’s response. As a last resort, the Compliance Advisory could be elevated to a formal Notice of
Violation which would then be handled with the involvement of legal counsel on both sides. The
Compliance Advisory process is intended to focus on the field-level expectations and understanding at the
sites. For this purpose, the field personnel can participate and know exactly what we look for and expect at
each site. The DAQ intends to keep the action of this Compliance Advisory as simple and efficient as
possible to quickly address the issues that negatively affect the air quality in the Uinta Basin. Good air
quality is an essential element affecting the quality of life of your employees, local citizens, as well as
meeting the requirements for continued good business opportunities in the Basin.

Thank you for your cooperation in responding to this matter. If you have any questions regarding this
letter, please contact me at [phone] or at [e-mail].

Sincerely,

Rik Ombach, Manager
Minor Source Oil and Gas Compliance Section

RO:jl

cc: Marina Thomas, Utah Attorney General’s Office