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HomeMy WebLinkAboutDAQ-2024-005020 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 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-093-24 Site ID 101647 (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, 7-30-46 DLB, 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-CA1016470001-23) 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. The well subject to the Compliance Advisory was drilled before January 1, 2016, and would only fall under this regulation if there were modifications made after January 1, 2016. Please, provide information about any modifications made to the existing engines after January 1, 2016. Assuming the engine is subject to the rule, 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 was required to but has not kept any recent 1 Utah Admin. Code r. R307-510-3(1). - 0 - 4 F v A ? A C DAQC-093-24 Page 2 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 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 violation in this Compliance Advisory with a no further action notice. 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. 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 could 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 (801) 536-4079 or at rombach@utah.gov. Sincerely, Rik Ombach, Manager Minor Source Oil and Gas Compliance Section RO:jl cc: Marina Thomas, Utah Attorney General’s Office