DAQ-2024-008539

Department of
Environmental Quality
Kimberly D. Shelley
Executirc Direclor
DIVISION OF AIR QUALITY
Bryce C. Bird
Dit'ector
SPENCER J, COX
Governor
DEIDRE HENDERSON
Lieutenanl Goventor
J:une1.2,2024 DAQC-54s-24
SiteID 10253 (81)
Sent Via Certified Mail No. 70190700000208346962
Ken Secrest
UGC Midstream LTD, LLC
133 East 1000 North
Roosevelt UT 84066
Dear Mr. Secrest:
Re: Early Settlement Agreement - UGC Midstream LTD, LLC - Westwater Compressor Station
- Grand County, Utah
On March 28,2023, the Utah Division of Air Quality (DAQ) issued a Compliance Advisory to
UGC Midstream LTD, LLC Westwater Compressor Station as a result of an inspection
performed on February 15,2023. UGC Midstream LTD, LLC responded to the Compliance
Advisory on April 5,2023, and on April I1,2024. Based on the findings of the inspection and
responses to the Compliance Advisory, the DAQ determined that UGC Midstream LTD, LLC
was in violation of:
1. Condition tI.B.2.a.1 of the Approval Order DAQE-AN102530014-18:
The three (3) natural gas-fired compressor engines (Cat 3516 TALE) onsite did not have
subsequent compliance performance tests conducted every two years.
Section 19-2-115 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 of $1,767.
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. See the attached penalty worksheet for details.
195 North 1950 West. Salt Lake Ciry, UT
Mailing Address: P.O. Box 144820. Salt Lake City, UT 841144820
Telephone [phone] . Fax [phone]. T.D.D. [phone]
w.deq.ttah.gov
Printed on t00% recycled paper
DAQC-545-24
Page2
All parties we deal with, whether private, commercial, or governmental 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 on February 15,2023,
was addressed by UGC Midstream LTD, LLC. The required subsequent performance tests on the
three (3) natural gas-fired compressor engines (Cat 3516 TALE) were conducted on February
2l-22,2024, and the test results showed all three engines to be in compliance with their emission
limits during the time of testing.
If you are interested in settling this violation, we are authorized to offer settlement in accordance
with the DAQ Penalty Policy as follows:
l. UGC Midstream LTD, LLC agrees to pay a reduced civil penalty in the sum of $1,414.
Payment of a civil penalty precludes further civil enforcement for the above described
violation against the named source. UGC Midstream LTD, LLC agrees to pay $1,414 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 R307- I 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 Agreement 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 $1,414. 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:
http s : //deq.utah. gov/general/payment-portal.
DAQC-s4s-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
801-499-6095 or by email at [e-mail].
Sincerely,
4--d
Bryce C. Bird
Director
BCB:RO:rh
cc: Southeast Utah Health Department
DAQC-s4s-24
Page 4
Acceptance of Early Settlement Agreement
I have read the above Early Settlement Agreement and I agree to the terms and conditions
thereof.
Company Name: UGC Midstream LTD, LLC
Name:
Title:
Signature Date Telephone Number
DAQC-s4s-24
Page 5
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.
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.
Utah Division of Air Quality General Administrative Penalty Worksheet
Source:
UGC Midstream
LTD, LLC_
Westwater
Compressor
Station 1",*,,1
Site ID #:r02s3 I Violation Date(s): | 2/ts/202s
HPV:NA L "3:ilill- | ,,,
Condition
II.8.2.a.1 of AO
DAQE-
AN102530014-18
The three (3)
natural gas-fired
compressor
engines (Cat 3516
TALE) onsite did
not have
subsequent
compliance
performance
tests conducted
Up to
$2,000
per
day
$1,767
DAQC-s4s-24
Page 6
(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.
(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-burning regulations by private individuals
DAQC-s45-24
Page 7
(c) Open buming violations by private individuals.
R307-130-3.
Adjustments.
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 downward may be made or a delayed payment schedule may be used
based on a documented inability of the source to pay.
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
State of Utah
SPENCER J. COX
Oovernor
DEIDRE HENDERSON
Lieulenant Governor
Department of
Environmental Quality
Kimbcrly D. Shcltey
Execulive Director
DIVISION OF AIR QUALITY
Brycc C. Bird
Direchr
DAQ-2023-008254
DAQC-351-23
Site ID 102s3 (Bl)
March 28,2023
Sent Via Certified Mail No. 70112970000188366805
Ken Secrest
UGC Midstream LTD, LLC
133 East 1000 North
Roosevelt, Utah 84066-3508
Dear Mr. Secrest:
Re: Compliance Advisory - UGC Midstream LTD, LLC - Westwater Compressor Station -
Condition II.B.2.a.l of the Approval Order DAQE-AN102530014-18 dated April6, 2018 -
Grand County, Utah
On February 15,2023, a representative of the Utah Division of Air Quality (DAQ) conducted an
inspection of UGC Midstream LTD, LLC Westwater Compressor Station. The DAQ observed three
(3) Natural Gas-Fired Compressor Engiries (Cat 3516 TALE) onsite without subsequent compliance
performance test conducted every two years, which may be in violation of Condition II.B.2.a.l of the
Approval Order DAQE-AN I 025300 I 4- I 8 dated April 6, 20 I 8.
UGC Midstream LTD, LLC is required to comply with the above regulations. A written response to
this letter is required within ten (10) business days of receipt of this letter.
Additional details about the above observations and regulations are attached to this letter. Please
contact Kyle Greenberg at [e-mail] or 385-306-6533 if you have any questions about
this letter.
Sincerely,
.r,/,1- .tlu - '
Rik Ombach, Manager
Minor Source Oil and Gas Compliance Section
RO:KG:my
cc: Southeast Utah Health Department
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]
ww'.deq.utoh.gov
Prirled on l00P/o recycled Paper
DAQC-3s 1-23
Pagc 2
Potential Viol
On Fcbrr-rary 15,2023, an inspector from thc DAQ observed UGC Midstream LTD, LLC
Westrvater Compressor Station in Grand County, Utah.
At the tirne of the inspection thc DAQ documented the following potcntial violation of threc (3)
Natural Gas-Fircd Compressor Engines (Cat 3516 TALE) onsitc withor.rt subsequent compliance
pcrformance test conductcd evcry two ycars.
AO Conditions/Rules
Condition II.B.2.a.l of thc Approval Order DAQE-AN102530014-18:
A. Compliance test at least once evely trvo years. The Director may require testing at any time.
The purpose of a Compliance Advisory (CA) is to document observations rnade by the DAQ. You are
responsible fbr complying with the Utah Air Conservation Rules. There are possible administrative
and civil penalties for failing to do so. Section l9-2-l l5 of the Utah Code Annotated provides that
violators of the Utah Air Conservation Act and/or any order issued there under may be subject to a
civil penalty of up to $ I0,000 per day for each violation.
The rvritten response to this CA will bc considered in resolving the deficiencies documented in this
letter. It rnay include infbrmation demonstrating compliance with the regulations or a schedule to
bring your company back into compliance with the applicable regulations. The DAQ will review your
response and this CA may be revised as a result of that revierv. Failure to respond in writing within ten
(10) business days of receipt of this CA willbe considered in any subsequent enforcement action and
the assessment of penalties.
Possible DAQ actions to resolve a CA include: No Further Action Letter. Warning Letter, Early
Administrative Settlement with reduced civilpenalty, Settlement Agreement with civil penalty, or
Notice of Violation and Order to Comply.
This CA does not limit or preclude the DAQ from pursuing enforcement options concerning this
inspection. Also, this CA does not constitute a bar to enforcement action for conditions that the DAQ
did not observe or evaluate, or any other conditions found during future inspections.
A nleeting may be requested to discuss this CA. Please contact Kyle Greenberg at
[e-mail] or 385-306-6533 if you would like to request a meeting or if you have any
questions about this letter.
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DAOC-351-23
KEN SECREST
UGC MIDSTREAM LTD LLC
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DAQC-4|2-24
CAERS ID 102s3 (B4)
MEMORANDUM
TO: STACK TEST FILE - UGC MIDSTREAM, LTD, LLC - Westwater Compressor
Station - Grand County, Utah
THROUGH: Rik Ombach, Minor Source Oil and Gas Compliance Section Manager @
FROM: Kyle Greenberg, Environmental Scienti* #C-
DATE: May 1,2024
SUBJECT: Sources: Three (3) Caterpillar G3516 LE compressor engines; SN:
WPT00216, WPT002I5, and WPT00209
Contact: Ken Secrest: 970-675-4400
Location: Remote location in Grand County, UT
Test Contractor: Great Plains Analytical Services, Inc.
Permit/AO#: DAQE-AN102530014-18 dated April 6, 2018
Action Code: TR
Subiect: Review of Stack Test Report dated April llr2024
On April 11,2024, Utah Division of Air Quality (DAQ) received a test report for the above listed units.
Testing was performed February 2l-22,2024,to demonstrate compliance with the emission limits found
in Condition II.B.2 of Approval Order DAQE-ANI02530014-18 and 40 CFR Part 60 Subpart JJJJ. The
calculated test results are:
Source Test
Date
Test
Method
Pollutant Tester Results DAQ Results Limits
UnitA:
Cat G35l6LE;
SN: WPT002l6
Feb.2l,
2024
7E NO.
21.897 ppm
@ts%02
0.267 s.ftto-hr
21.896
ppm@15%02
0.799lb/hr
0.271slho-hr
76.6ppm@15%Oz
2.79lblhr
2.0 g/hp-hr
10 CO
0.578 ppm
@1s%02
0.004 eihp-hr
0.578 ppm@15%
02
0.0l3lb/hr
0.004 s/ho-hr
125.7 ppm@l1o/oOz
2.79lblhr
4.0 g/hp-hr
25p.VOC
15.215
ppm@15%02
0.177 elho-hr
15.027
ppm@r1%02
0.176 e/hp-hr
86 ppm@l1o/oOz
1.0 g/hp-hr
Unit B:
Cat G35l6LE;
SN: WPT002I5
Feb.22,
2024
7E NO*
42.011 ppm
@ts%02
0.618 p/ho-hr
42.007
ppm@15%02
1.310lb/hr
0.611 s/ho-hr
76.6ppm@15%Oz
2.79lblhr
2.0 g/hp-hr
l0 CO
0.1 l8 ppm
@rs%02
0.002 s/hp-hr
0.1l8 ppm@15%
02
0.002lb/hr
0.001 s/hp-hr
125.7 ppm@liYoOz
2.79lbhr
4.0 gihp-hr
25A VOC
8.774
ppm@15%02
0.124 ghp-hr
8.774ppm(@t5%
02
0.122 glhp-hr
86 ppm@I5% O:
1.0 g/hp-hr
Source Test
Date
Test
Method
Pollutant Tester Results DAQ Results Limits
Unit C:
Cat G35l6LE;
SN: WPT00209
Unit C:
Cat G35l6LE;
SN: WPT00209
Feb.22,
2024
Feb.22,
2024
7E NO*
31.708 ppm
@15%02
1.304 s,/hn-hr
31.706
ppm@15%02
0.849 lb/hr
0.378 e/hp-hr
76.6ppm@15%Oz
2.79 tblhr
2.0 g/hp-hr
t0 CO
0.647 @ts%02
0.016 g/hp-hr
0.647 ppm@15%
02
0.01I lb/hr
0.005 e/ho-hr
125.7 ppm@ll%oOz
2.79\b/hr
4.0 g/hp-hr
254 VOC
16.653
ppm@15%02
0.655 g/hp-hr
16.652
ppm@15%02
0.187 g/hp-hr
86 ppm@15% Oz
1.0 g/hp-hr
DEVIATIONS:
CONCLUSION:
RECOMMENDATION:
ATTACHMENTS:
None.
The stack test report appears to be acceptable.
It's recommended the emissions from the three (3) Caterpillar G3516 LE
compressor engines be considered to have been in compliance with the
emission limits of the Approval Order and 40 CFR Part 60 Subpart JJJJ.
There was a clerical error in the report for Unit C; the stack diameter is
14 inches, see attached email clariffing this. This test is in response to
Compliance Advisory @AQC-351-23), for not conducting subsequent
compliance tests at least once every two years.
DAQ Stack Test Review Excel Spreadsheets, UGC Midstream Test
Report.
UTAH GAS CORP
UGC Midstream, LTD, LLC
760 Horizon Drive, Suite 400
Grand Junction, CO 81506
Phone [phone]
April5,2023
SUBMITTED VIA EMAIL
Rik Ombach
Utah Department of Environment Quality
195 North 1950 West
Salt Lake city, UT 841144820
[e-mail]
RE: Compliance Advisory Source Response
DAQC-3s1-23
Condition II.8.2.a.1 of Approval Order DAQE-AN-I02530014-18
Westwater Compressor Station
Grand County, Utah
Dear Mr. Ombach:
UGC Midsheam LTD, LLC ("UGC") has received the Utah Division of Air Quality ("DAQ")
March 28,2023, Compliance Advisory alleging compliance issues at the Westwater Compressor station
("Westwater"). UGC's response to the alleged compliance issue is set forth below.
UGC's Compliance Historv and Purchase of Red Rock Assets
As an initial matter, UGC notes that it has an exceptional compliance history in Utah. UGC has been
operating oil and gas midstream and production facilities in Utah since 2019 and to the best of our
knowledge, this is the first Compliance Advisory DAQ has issued to UGC. UGC devotes substantial time
and resources to ensure it is operating its facilities in compliance with Utah laws and regulations and we
take pride in our stellar compliance record to date. UGC purchased Westwater from Red Rock Gathering
on December 2,2019. As discussed below, we believe the compliance issue identified in the Compliance
Advisory was primarily the result of a difficult period shortly after the acquisition where UGC had some
key personnel turnover and file migration. The global pandemic only made these transitions more
challenging. UGC believes we have identified the underlying issues and are in the process of implementing
updates to continue meeting our high compliance standards going forward.
UGC's Response to the Alleqed Compliance Issue
For your convenience, and to avoid confusion, the issue identified in the Compliance Advisory is
again set forth below verbatim. Quoted language from the Compliance Advisory is bolded and italicized to
distinguish it from UGC's response. This response is made in furtherance of the withdrawal, compromise
and/or settlement of the compliance issues identified in the Compliance Advisory, consistent with the
Division's applicable regulations and policy.
Division's Allesed Comnliance Issue: On February 15,2023, a representative of the (ltah Division of
Air Quality (DAQ conducted an inspection of UGC Midstresm LTD, LLC ll/estwater Compressor
Station. The DAQ observed three (3) Natural Gas-Fired Compressor Engines (Cat j516 TALE) onsite
Compliance Advisory Response
Westwater Compressor Station
April5,2023
Page2
without subsequent compliance performance test conducted every hryo yesrs, which may be in violution
of Condition 11.8.2.a.1 of the approval order DAQE-AN|02530014-18 dated April 16, 2018.
UGC's Response: As noted above, UGC took ownership of Westwater on December 2, 2019, from Red
Rock Gathering and was not provided any compliance records upon the transition. It is unknown when
previous performance tests were completed prior to UGC's ownership. UGC took great steps to ensure
compliance with the approval order, however, not long after taking ownership, the global pandemic hit
which made transitioning the facility into UGC's compliance program difficult. During this time, UGC also
underwent a file transition supervised by an individual that has since retired. UGC is unable to locate the
test reports or proof of report submittals. Currently, the three (3) Cat 3516 TALE engines are temporarily
offline but will be tested within 60 days of their return to service, although this will be dependent on weather
and testing company availability. Per the approval order, DAQ will be notified 30 days prior to the
performance test and the completed stack test will be submitted to the DAQ. The engines have been added
to the engine stack test schedule and will be tested every two (2) years after the completion of the test in
2023.
Conclusion
UGC appreciates the Division's time and attention to this matter and looks forward to providing
any additional information that may be needed to discuss this issue further. If you have any questions or
require additional information, please contact me at 435-828-1450 or [e-mail].
Sincerely,
T.a*
Ken Secrest
Regulatory Coordinator
cc: via email
K. Greenberg, DAQ
A. Mestas, UGC
R. Plummer, UGC
C. Forster, UGC
T. Weiner, Geosyntec
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KEN SECREST
UGC MIDSTREAM LTD, LLC
133E1000N ','T
RUOSEVELT UT 84066
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UGC MIDSTREAM LTD,LLC
133 E 1000 N
ROOSEVELT UT 84066