HomeMy WebLinkAboutDAQ-2024-0113001
DAQC-PBR156970001-24
Site ID 15697 (B1)
MEMORANDUM
TO: FILE – XCL ASSETCO, LLC – Butcher Butte Pad 32-4D-22
THROUGH: Rik Ombach, Minor Source Oil and Gas Compliance Section Manager
FROM: Stephen Foulger, Environmental Scientist
DATE: July 11, 2024
SUBJECT: OIL AND GAS PERMIT-BY-RULE EVALUATION
INSPECTION DATE: June 6, 2024
SOURCE LOCATION: Butcher Butte Pad 32-4D-22
Lat:40.259518, Long: -110.125067
Business Office:
600 North Shepherd Drive, Suite 390
Houston, TX 77007
SOURCE TYPE: Tank Battery
Duchesne County
API: 4301353352, 4301353353
SOURCE CONTACTS: Lauren Brown, Corporate Environmental Contact
Phone: 713-808-9406, Email: lauren@xclresources.com
OPERATING STATUS: Operating
PROCESS DESCRIPTION: Oil and gas products are brought to the surface. These products
go through a separator where the oil and any water products are
sent to storage tanks and the gas is used to power equipment on
site (pump jack engine, tank heater, separator, flare, combustor,
etc.) Any remaining gas is sent to a pipeline that feeds a local
gas plant. The oil and process water in the storage tanks is
loaded into tanker trucks and hauled off-site for processing and
disposal.
APPLICABLE REGULATIONS: Utah Administrative Code (UAC) R307-500 Series for the Oil
and Gas Industry, and UAC R307-201: Emission Standards:
General Emission Standards; and UAC R307-150: Emission
Inventories, and 40 CFR 60 Subpart JJJJ.
SOURCE EVALUATION: Site Type: PBR – Controlled
Controlled by flare
Site powered by Engine
The source registered: 200000 Estimated Oil BBL.
2
DOGM current 12 month rolling production is: 129,967.
Utah Statute R307-506 requires a source with throughput
greater than 8,000 BBLs to have controls.
REGISTERED EQUIPMENT: Engine - Engine - Natural Gas 4-Stroke Lean Burn Make -
Caterpillar Model - G3306TA Mfg Year - 2005 Horse Power -
203 Combustion - Natural Gas, Pneumatic, Tank
General Provisions
VOC emissions are minimized as reasonably practicable by equipment design, maintenance and
operation practices. [R307-501-4(1)]
Out of Compliance. VRU found incorrectly set up causing no emissions to be sent to the
combustor. This caused emissions to leak from the thief hatches on three produced water tanks
and 10 oil tanks. An additional produced water tank thief hatch was found leaking emissions on a
separate tank battery as well.
Air pollution control equipment is designed and installed appropriately, maintained and operated to
control emissions. [R307-501-4(2)]
Out of Compliance. VRU found incorrectly set up causing no emissions to be sent to the
combustor. This caused emissions to leak from the thief hatches on three produced water tanks
and 10 oil tanks. An additional produced water tank thief hatch was found leaking emissions on a
separate tank battery as well.
Vessel vent lines are sloped away from the flare inlet or to a separation vessel (scrubber). [R307-501-2]
In Compliance. Vessel vent lines found properly sloped at the time of inspection.
Flare inlet lines are equipped with a fire arrestor, pressure gauge, inlet pressure regulating valve and
other components according to the engineering design, the manufacturers specifications or good
practices for safety and emissions control. [R307-501-2]
In Compliance. Flare inlet found properly engineered at the time of inspection.
Flares
Any flare has an operational auto-igniter. [R307-503-4]
In Compliance. Flare found with operational auto-ignitor installed at the time of inspection.
Tank Truck Loading
Truck loading is done by bottom filling or submerged fill pipe [R307-504(1)]
In Compliance. Truck loading done by bottom or submerged filling at the time of inspection.
3
A vapor capture line is used during truck loading if subject to storage vessel emissions controls of
R307-506-4(2). Effective 7/1/2019 for sources existing before 1/1/2018, and upon construction for new
sources.[R307-504-4(2)]
In Compliance. Vapor capture lines found available for use at the time of inspection.
Oil and Gas Industry Registration Requirement
The source is registered with the DAQ. [R307-505-3(3)]
In Compliance. Source found properly registered at the time of inspection.
Registration has been updated within 30 days of a company name change, removal or addition of control
devices, or termination of operations. [R307-505-3(3)]
In Compliance. Source found properly registered at the time of inspection.
Storage Vessels
Thief hatches are kept closed and latched. [R307-506-4(1)]
In Compliance. Thief hatches found closed and latched at the time of inspection.
VOCs from storage vessels are recycled, recovered or controlled by a device that is compliant with
R307-508. Exempt if <8000 bbls crude oil per year, <2000 bbls condensate, or if uncontrolled emissions
are <4 tons VOC per year. [R307-506-4(2)(a)]
In Compliance. VOCs found properly routed at the time of inspection.
Upon modification, the well site was re-evaluated against the thresholds of R307-506-4(2).
[R307-506-4(6)]
In Compliance. Thresholds were revaluated and properly addressed before well modification.
Records for each of the following are kept for three years:
Storage vessel vent system inspections (openings, thief hatches, pressure relief devices,
bypasses, etc.), if required
Monthly crude oil throughput
Emission calculations, actuals and sampling data when used to justify an exemption to storage
vessel rules
Emergency storage vessel usage (dates used, emptied, and volumes), if not controlled
per R307-506-4(2). [R307-506-5]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
4
VOC Control Devices
Monthly AVO inspections are conducted on VOC control devices and associated equipment, and
corrective actions are taken within 15 days. [R307-508-3(3)]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
The following records are kept:
VOC control device efficiency, for life of the equipment
Manufacturer operating and maintenance instructions for VOC control devices, for life
of the equipment
AVO inspections of the VOC control device(s), associated equipment and any repairs, for 3 years.
[R307-508-4]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
Leak Detection and Repair
The source has an emissions monitoring plan. [R307-509-4(1)(a)]
In Compliance. Emissions monitoring plan found compliant at the time of inspection.
The monitoring plan addresses difficult-to-monitor and unsafe-to-monitor components.
[R307-509-4(1)(b)]
In Compliance. Emissions monitoring plan properly addresses difficult-to-monitor and unsafe-to-
monitor components.
If emissions control is required, monitoring surveys are conducted to observe each fugitive emissions
component for fugitive emissions. [R307-509-4(1)(c)]
In Compliance. Monitoring surveys were reviewed and found properly performed at the time of
inspection.
Initial monitoring surveys were within 60 days after startup for new sources. Subsequent surveys are
semi-annual for regular components, annual for difficult-to-monitor components, and as required by the
monitoring plan for unsafe-to-monitor components. [R307-509-4(1)(d)]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
Monitoring surveys are done with OGI equipment or by Method 21. [R307-509-4(1)(e)]
In Compliance. Monitoring is conducted using OGI equipment.
Fugitive leaks are repaired within 15 days unless infeasible, unsafe, etc., as stated in the rule, which
require repair within 24 months per the rule. [R307-509-4(1)(f)]
In Compliance. Fugitive leak repair records were reviewed and found to be compliant at the time
of inspection.
5
Resurvey of the repaired components is completed within 30 days. [R307-509-4(1)(g)]
In Compliance. Repair resurvey records were reviewed and found to be compliant at the time of
inspection.
The following records are kept:
The emissions monitoring plan, for life of the site
LDAR inspections, repairs and resurveys, for 3 years [R307-509-5]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
Natural Gas Engines
Engines subject to R307-510 (does not have an AO, began operations, installed or modified after
January 1, 2016) meet the following limits:
Maximum Engine hp Emission Standards in (g/hp-hr)
NOx CO VOC HC+NOx
>25 hp and < 100 hp - 4.85 - 2.83
>100 hp 1.0 2.0 0.7 -
[R307-510-4(1)]
In Compliance.
Affected engines are certified or have an initial performance test per 40 CFR 60.4244. [R307-510-4(2)]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
Affected engine exhaust vents are vertical and unrestricted.
Stacks are 8' or greater if the site horsepower rating is 151 to 305
Stacks are 10' or greater if the site horse power rating is 306 or greater. [R307-510-4(3)]
In Compliance.
Engine certifications or initial performance tests required are kept for the life of the engine at the source.
[R307-510-5]
In Compliance. These records were reviewed and found to be compliant at the time of inspection.
6
Associated Gas Flaring
Associated gas is routed to a process unit for combustion, a sales pipeline or an operating VOC control
device, except in an emergency.
An emergency release is unanticipated, temporary, infrequent, unavoidable, =24 hrs. and is not
due to operator negligence.
Low pressure gas from working loss, breathing loss and oil flashing is not
"associated gas." [R307-511-4(1)]
Out of Compliance. VRU found incorrectly set up causing no emissions to be sent to the
combustor. This caused emissions to leak from the thief hatches on three produced water tanks
and 10 oil tanks. An additional produced water tank thief hatch was found leaking emissions on a
separate tank battery as well.
The following records are kept:
The time and date of event
Volume of emissions
Any corrective action taken for 3 years.[R307-511-5(1)(a)(b)]
In Compliance. No events were reported.
Visible Emissions
Visible emissions, except for unavoidable irregularities that do not exceed three minutes, are within the
following opacity limits:
Installations constructed on or before 4/25/1971 40%
Installations constructed after 4/25/1971 20%
Gasoline engines 0%
Diesel engines manufactured after 1/1/1973 20%
Diesel engines manufactured before 1/1/1973 40%
Note: Required VOC control devices shall have no visible emissions per R307-508-3. [R307-201-3]
In Compliance. No visible emissions were observed at the time of inspection.
Emission Inventory:
An emissions inventory has been submitted within the past three years. [R307-150-9(1)]
In Compliance. Source has not been subject to an emissions inventory yet.
NSPS (Part 60) OOOOa: Standards of Performance for Crude Oil and Natural Gas Facilities for which
Construction, Modification or Reconstruction Commenced After September 18, 2015 [40 CFR 60
Subpart OOOOa]
In Compliance.
7
NSPS (Part 60) JJJJ: Standards of Performance for Stationary Spark Ignition Internal Combustion
Engines [40 CFR 60 Subpart JJJJ]
In Compliance.
PREVIOUS ENFORCEMENT
ACTIONS:
COMPLIANCE STATUS &
RECOMMENDATIONS: In regards to: Butcher Butte Pad 32-4D-22:
Out of Compliance - The source will be issued a Compliance
Advisory. The next inspector should make sure that the VRU is
operating correctly.
RECOMMENDATION FOR
NEXT INSPECTION: The source will be issued a Compliance Advisory. The next
inspector should make sure that the VRU is operating correctly.
Inspection frequency should be increased.
ATTACHMENTS: ESA, Compliance Advisory, Response to Compliance Advisory.
,(iilv:
ry5,4=i-ELgr,
State of Utah
SPENCER J. COX
Govenrcr
DEIDRE HENDERSON
Lieutenant Goventor
Department of
Environmental Quality
Kimberly D. Shelley
Executive Direclor
DTVISION OF AIR QUALITY
Bryce C. Bird
Director
luly 18,2024 DAQC-CA1s697000r-24
Site ID 15697 (Bl)
Sent Via Certified Mail No. 70190700000208347075
XCL AssetCo, LLC
600 North Shepherd Drive Suite 390
Houston, TX77007
Dear Ms. Brown,
Re: Compliance Advisory - XCL AssetCo, LLC - Butcher Butte Pad 32-4D-22, Duchesne County
On June 6,2024, a representative of the Utah Division of Air Quality (DAQ) conducted an inspection
of XCL AssetCo, LLC Butcher Butte Pad32-4D-22 remotely located with the latitude and longitude
of 40.259518, -l10.125067, Duchesne county.
The DAQ observed the following regulations of concern:
R307-501-4 - General Requirements
R307-511-4 - Associated Gas Flaring
These findings may be a violation of Utah Air Conservation Rules. XCL AssetCo,LLC Butcher Butte
Pad32-4D-22 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 included with this letter. Please
contact Stephen Foulger at 801-662-8650 or sfoulger@utah.gov if you have any additional questions.
Sincerely,
/; ., itu ' .- '
Rik Ombach
Minor Source Oil and Gas Compliance Section Manager
cc: Alan Humpherys, Manager, Minor Source NSR Section
TriCounty Health Department
195 North 1950 West. Salt Lake City, UT
Mailing Address: P.O. Box 144820 . Salt Lake City, UT 841144820
Telephone (801) 5364000. Fax (801) s364099 . T.D.D. (801) 903-3978
ww.deq.ilah.gov
Printcd on 100% recycled paper
DAQC-CAl s697000t-24
Page 2
Potential Violation(s)
On June 6,2024, Stephen Foulger, an inspector from the DAQ conducted an inspection at XCL
AssetCo, LLC Butcher Butte Pad32-4D-22 located remotely with the latitude and longitude:
40.259518, -l 10.125067, Duchesne county.
At the time of the inspection, the DAQ documented the following potential violation:
The purpose of a Compliance Advisory (CA) is to document observations made by the DAQ. You are
responsible for complying with the Utah Air Conservation Rules. There are possible administrative
and civil penalties for failing to do so. Section l9-2-ll5 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 $10,000 per day for each violation.
When considering if the deficiencies are resolved, the DAQ will consider the written response to this
CA. Responses may include information demonstrating compliance with the regulations or an
anticipated schedule from your company to be in compliance with the applicable regulations. Once
received, the DAQ will review your response and the CA may be revised as a result of that review.
Failure to respond in writing within ten (10) business days of receipt of this CA shall be considered in
the escalation of subsequent enforcement action and assessment of penalties.
Reouirement & Rule Comments & Observations
VOC emissions are minimized as reasonably practicable by
equipment design, maintenance and operation practices.
1R307-s01-4(l)l
Out of Compliance: VRU found
incorrectly setup causing no emissions to
be sent to the combustor. This caused
emissions to leak from the thief hatches
on three produced water tanks and 1() oil
tanks. An additional produced water tank
thief hatch was found leaking emissions
on a separate tank battery as well.
Air pollution control equipment is designed and installed
appropriately, maintained and operated to control emissions.
[R307-s0l-4(2)]
Out ot'Compllance: VRU tound
incorrectly setup causing no emissions to
be sent to the combustor. This caused
emissions to leak from the thief hatches
on three produced water tanks and 10 oil
tanks. An additional produced water tank
thief hatch was found leaking emissions
on a separate tank battery as well.
Associated gas is routed to a process unit for combustion, a
sales pipeline or an operating VOC control device, except in
an emergency.
An emergency release is unanticipated, temporary,
infrequent, unavoidable, :24 hrs. and is not due to operator
negligence.
Low pressure gasfromworking loss, breathing loss and oil
flashing is not "associated gas". [R307-5 I I -4( I )]
Out of Comphance: VRU tbund
incorrectly setup causing no emissions to
be sent to the combustor. This caused
emissions to leak from the thief hatches
on three produced water tanks and 10 oil
tanks. An additional produced water tank
thief hatch was found leaking emissions
on a separate tank battery as well.
DAQC-CAIs697ooo1-24
Page 3
Possible DAQ actions to resolve a CA include: No Further Action Letter, Warning Letter, Early
Administrative Settlement with reduced civil penalty, Settlement Agreement with civil penalty, or
Notice of Violation and Order to Comply.
This CA does not limit or preclude the DAQ from pursuing additional enforcement options.
Additionally, 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 meeting may be requested to discuss this CA. Please contact Stephen Foulger at 801-662-8650 or
sfoulger@utah.gov if you would like to request a meeting or if you have any questions.
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XCL Resources is committed to being a good neighbor by maintaining and operatfng our facilitfes in good
workmanlike manner, taking additfonal measures to locate and fix fugitfve emissions sooner, and
investfng in newer technology to enhance our leak detectfon and repair program.
Please see our response below for DAQC-CA-158300001-24, DAQC-CA101073001-24, DAQC-
CA15697001-24, AND DAQC-CA101704001-24, as it speaks to general items cited for each listed facility
as well as the individual pieces that are unique to each facility.
The Crozier 2-1A-32 pad was submitted with our 2020 emissions inventory. Attached are the provided
documents confirming submittal. Please note that due to historical naming conventfons when XCL
acquired the Butcher Butter 34-144H-22, Butcher Butte 35-44H-22, and Butcher Butter 35-54H-22,
(which were the only wells in productfon at the tfme of reportfng the 2020 Emissions inventory), the
cited Crozier 2-1A-32 facility was submitted under the name Butcher Butter 2-1A-32 (Source ID# 793).
XCL has updated the registratfon (Source ID# 15830) to reflect the current nomenclature and producing
wells on locatfon.
Regarding the fugitfve emissions cited under rules R307-501-4(1) and R307-501-4(2), at the Crozier 2-1A-
32, Shiner 30-3A-22, Butcher Butte 32-4D-22, and Brotherson 23-3A-23, XCL has provided vent header
assessments for each of these locatfons. The vent header assessments showcases that the facilitfes are
adequately designed and sized to achieve the established control efficiency rates and capable of
handling reasonably foreseeable fluctuatfons.
Taking the approved vent header assessments into account, the found fugitfve emissions for controlling
equipment on locatfon during the inspectfon can and should be attributed to normal wear and tear
under normal operatfng conditfons. Other than leaks on delay of repair associated with receiving
replacement parts, any of the identffied fugitfve emissions were fixed on locatfon at the tfme of
inspectfon.
XCL has increased staffing throughout our operatfons. XCL conducts monthly AVO’s and Quarterly OGI
inspectfons at all facilitfes, thus reducing our overall potentfal fugitfve emissions impact by more quickly
identffying fugitfve emissions from normal wear and tear, and then fixing the problem. Additfonally, XCL
has recently made significant investments in newer technologies in acquiring Enardo 665 High Flow thief
hatches, which will help alleviate additfonal future fugitfve emissions.
In response to the cited R307-506-4(2)(a) rule for the Shiner 30-3A-22, that locatfon is equipped with a
Steffes HP SAA-8, a Steffes LP SAA-4 flare, and a Platfnum VRU, that is controlling emissions associated
with the storage vessels on locatfon.
In response to the citatfons for the VRU located at the Butcher Butter 32-4D-22 locatfon, the VRU was
unintentfonally and incorrectly left in an inoperable state. The VRU was started up on locatfon during
the initfal inspectfon on June 6th, 2024.nvb
In response to the identffied VRU at the Brotherson 23-3A-23, the VRU unit was taken out of service and
the cooler replaced on June 25th, 2024.
Given the nature of the findings, vent header assessments, quick actfon to immediately make repairs on
fugitfve components, and investment already underway, XCL respectiully requests that the UDAQ
resolves these compliance advisories as “No Further Actfon”.
195 North 1950 West • Salt Lake City, UT Mailing Address: P.O. Box 144820 • Salt Lake City, UT 84114-4820 Telephone (801) 536-4000 • Fax (801)536-4099 • T.D.D. (801) 903-3978
www.deq.utah.gov Printed on 100% recycled paper
DAQC-xxx-24 Site ID: 15697 (B1)
August 20, 2024 Sent Via Certified Mail No.
Lauren Brown XCL AssetCo, LLC. 600 North Shepherd Drive Suite 390 Houston, Texas 77007-4580
Dear Lauren Brown: Re: Early Settlement Agreement – Butcher Butte Pad 32-4D-22, Duchesne County
On July 19, 2024, the Utah Division of Air Quality (DAQ) issued a Compliance Advisory to
XCL AssetCo, LLC. as a result of an inspection performed on June 6, 2024. XCL AssetCo, LLC. responded to the Compliance Advisory on August 8, 2024. Based on the findings of the inspection and response to the Compliance Advisory, the DAQ determined that XCL AssetCo, LLC. was in violation of:
1. R307-501-4 - General Requirements: VRU found incorrectly setup causing no emissions to be sent to the combustor. This caused emissions to leak from the thief hatches on three produced water tanks and 10 oil tanks. An
additional produced water tank thief hatch was found leaking emissions on a separate tank
battery. 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 $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. 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 violations found on June 6,
2024 was addressed by XCL AssetCo, LLC. on the same day as the inspection.
DAQC- Page 2
If you are interested in settling this violation, we are authorized to offer settlement in accordance with the DAQ Penalty Policy as follows:
1. XCL AssetCo, LLC. 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. XCL AssetCo, LLC. 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) R307-130.
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 $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/general/payment-portal.
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.
DAQC- Page 3
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 rombach@utah.gov.
Sincerely,
Bryce C. Bird Director BCB:RO:SF:
cc: TriCounty Health Department Acceptance of Early Settlement Agreement I have read the above Early Settlement Agreement and I agree to the terms and conditions
thereof. Company Name: XCL AssetCo, LLC.
Name: Title: _____________________________ _________________ ___________________________
Signature Date Telephone Number
DAQC- Page 4
Utah Division of Air Quality General Administrative Penalty Worksheet
Source: Butcher Butte Pad 32-4D-
22 Class: B
Site ID #: 15697 Violation Date(s): 6/6/24
HPV: Days to Resolution: 1
Citation Description of the
Violation Days Category Range Daily
Penalty
Accumulated
Penalty
R307-501-4
Emissions improperly routed. Emissions found at three produced water tank thief hatches and eleven oil tank thief hatches.
1 B $2,000-
$7,000 $3,500 $3,500
0
0
0
0
0
Total $3,500
20%
discount $700
Total
Penalty $2,800
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 of the violations, consideration of the economic benefit to the sources of non-compliance, and adjustments for specific circumstances.
Utah Administrative
Code (UAC) R307-
130-2. Categories.
DAQC- Page 5
Violations are grouped in four general categories based on the potential for harm and the nature and extent of
the 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 of approval 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.
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(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
(c) Open burning violations by private individuals.
Utah Administrative Code (UAC) 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:
(1) 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 of past 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. 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 appropriate.
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